ADMA Biologics, Inc.

2022

ANNUAL REPORT

WWW.ADMABIOLOGICS.COM

WWWW.ADMABIOLOGICS.COM

Because Patients
are Counting on Us

To Our Valued Stockholders: 

ADMA's strong performance in 2022 is a testament to the successful execution of its multi-year strategy, which highlights the 
Company's potential for the future. The year was transformational for ADMA, as evidenced by its impressive year-over-year revenue 
growth of 90%, positioning it as the fastest growing provider of Immunoglobulin (IG) in the U.S. market. The Company also made 
significant strides towards achieving its goal of establishing plasma supply self-sufficiency, with eight FDA-licensed collection centers 
and two more centers operational and collecting plasma pending FDA licensure anticipated during 2023.

ADMA's exclusive focus on targeting the immune deficient patient segment was crucial in its continued commercial success. During
2022, the Company treated a record number of patients and gained significant market share in the IG market, validating its mission 
to commercialize novel products for immunodeficient patients at risk for infections. ADMA's name has become synonymous with 
trust and confidence among physicians, providers, and patients, reflecting its devotion to an underserved population.

With the investment phase of ADMA's business cycle concluding, we believe the foundation is now solidly established, and the 
Company has gained conviction in its ultimate revenue and profitability potential. In 2023, ADMA aims to sustain top-tier revenue 
growth, achieve first-time EBITDA profitability, and solidify the pathway to an ultimate margin profile at the upper bound of its 
plasma peer group. This year is expected to be an inflection point for ADMA, building on the established momentum to deliver on 
its strategic and financial objectives.

The ADMA Biologics team is grateful for the continued support of its stockholders and acknowledges that its accomplishments and 
success are the direct result of the commitment, passion, and diligence of its employees. The collaboration among the staff, 
reinforced through the guidance of leadership and advisors, embodies corporate values that prioritize human connections in all 
engagements. The transformation of ADMA's vision into the reality of assuming complete end-to-end control of operations is a 
result of the team's work and unwavering collaboration. The Company recognizes and thanks its staff for rising to the challenge 
every day to meet its pledge to patients, the medical community, prescribers, advocacy groups, and stockholders.

On behalf of the entire ADMA Biologics team, I thank you, our stockholders, for your continued support which allows us to meet the 
unmet needs for the patients that are counting on us! 

Sincerely, 

Adam S. Grossman
Founder, President and Chief Executive Officer

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

□ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to

Commission File Number: 001-36728

ADMA BIOLOGICS, INC.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction of
Incorporation or Organization)

465 State Route 17, Ramsey, New Jersey
(Address of Principal Executive Offices)

56-2590442
(I.R.S. Employer
Identification No.)

07446
(Zip Code)

Registrant’s telephone number, including area code: (201) 478-5552
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Common stock, par value $0.0001 per share

Trading Symbol
ADMA

Name of each exchange on which registered
Nasdaq Global Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes □ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes □ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No □
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files). Yes ☒ No □
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting
company’’ and ‘‘emerging growth company’’ in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer
Non-accelerated Filer

□
☒

Accelerated Filer
Smaller Reporting Company
Emerging Growth Company

□
☒
□

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act □
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of
its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report. Yes □ No ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. □
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes □ No ☒
The aggregate market value of the registrant’s common stock held by non-affiliates was $372,622,681 as of June 30, 2022 (the last
business day of the registrant’s most recently completed second fiscal quarter), based on a total of 188,193,273 shares of common stock
held by non-affiliates and a closing price of $1.98 as reported on the Nasdaq Global Market on June 30, 2022.
As of March 17, 2023, there were 222,155,625 shares of the issuer’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE
Portions of the ADMA Biologics, Inc. definitive proxy statement to be filed pursuant to Regulation 14A within 120 days after the end of
the fiscal year are incorporated by reference into Part III of this Annual Report on Form 10-K and certain documents are incorporated by
reference into Part IV.

ADMA BIOLOGICS, INC.

PART I
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.

PART II
Item 5.

Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Item 9C.

PART III
Item 10.
Item 11.
Item 12.

Item 13.
Item 14.

PART IV
Item 15.
Item 16.

Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unresolved Staff Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mine Safety Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management’s Discussion and Analysis of Financial Condition and Results of Operations . . .
Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . . .
Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . . . . . . . . . . . . . . . . . . . . .

Directors, Executive Officers and Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Executive Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certain Relationships and Related Transactions, and Director Independence . . . . . . . . . . . . . . .
Principal Accounting Fees and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exhibits, Financial Statement Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form 10-K Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Special Note Regarding Forward-Looking Statements

Some of the information in this Annual Report on Form 10-K contains ‘‘forward-looking statements’’ within
the meaning of Section 27A of the Securities Act of 1933, as amended (the ‘‘Securities Act’’) and Section 21E of
the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), and such forward-looking statements
involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements about
our plans, objectives, representations and contentions that are not historical facts and typically are identified by
use of terms such as ‘‘may,’’ ‘‘should,’’ ‘‘could,’’ ‘‘would,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ ‘‘believe,’’
‘‘estimate,’’ ‘‘predict,’’ ‘‘potential,’’ ‘‘project,’’ ‘‘continue,’’ or the negative thereof, or other variations or
comparable terminology, although some forward-looking statements are expressed differently. The
forward-looking statements included herein represent management’s current judgment and expectations, but our
actual results, events and performance could differ materially from those in the forward-looking statements.
These statements include statements about:

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our ability to manufacture BIVIGAM and ASCENIV on a commercial scale and further commercialize
these products as a result of their approval by the U.S. Food and Drug Administration (the ‘‘FDA’’) in
2019;

our plans to develop, manufacture, market, launch and expand our commercial infrastructure and
commercialize our current and future products and the success of such efforts;

the safety, efficacy and expected timing of and our ability to obtain and maintain regulatory approvals
for our current products and product candidates, and the labeling or nature of any such approvals;

the achievement of or expected timing, progress and results of clinical development, clinical trials and
potential regulatory approvals for our product candidates;

our dependence upon our third-party customers and vendors and their compliance with applicable
regulatory requirements;

our belief that we have addressed the delays experienced with final drug product current Good
Manufacturing Practices (‘‘cGMP’’) release testing by our third-party vendors by adding additional
release testing laboratories to our FDA-approved consortium listed in our drug approval documents;

our ability to obtain adequate quantities of FDA-approved plasma with proper specifications;

our plans to increase our supplies of source plasma, which include plasma collection center expansion,
our ability to obtain and maintain regulatory compliance and receive FDA approvals of new plasma
collection centers and reliance on third-party supply agreements as well as any extensions to such
agreements;

the potential indications for our products and product candidates;

potential investigational new product applications;

the acceptability of any of our products, including BIVIGAM, ASCENIV and Nabi-HB, for any
purpose, including FDA-approved indications, by physicians, patients or payers;

our plans to evaluate the clinical and regulatory paths to grow the ASCENIV franchise through
expanded FDA-approved uses;

Federal, state and local regulatory and business review processes and timing by such governmental and
regulatory agencies of our business and regulatory submissions;

concurrence by the FDA with our conclusions concerning our products and product candidates;

the comparability of results of our hyperimmune and immune globulin (‘‘IG’’) products to other
comparably run hyperimmune and immune globulin clinical trials;

the potential for ASCENIV and BIVIGAM to provide meaningful clinical improvement for patients
living with Primary Immune Deficiency Disease, Primary Humoral Immunodeficiency Disease or
Inborn Errors of Immunity (‘‘PIDD’’, ‘‘PI’’ or ‘‘IEI’’) or other immune deficiencies or any other
condition for which the products may be prescribed or evaluated;

1

•

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our ability to market and promote Nabi-HB in a highly competitive environment with increasing
competition from other antiviral therapies and to generate meaningful revenues from this product;

our intellectual property position and the defense thereof, including our expectations regarding the
scope of patent protection with respect to ASCENIV or other future pipeline product candidates;

our manufacturing capabilities, third-party contractor capabilities and vertical integration strategy;

our plans related to the expansion and efficiencies of our manufacturing capacity, yield improvements,
supply-chain robustness, in-house fill-finish capabilities, distribution and other collaborative agreements
and the success of such endeavors;

our estimates regarding revenues, expenses, capital requirements, timing to profitability and positive
cash flows and the need for and availability of additional financing;

possible or likely reimbursement levels for our currently marketed products;

estimates regarding market size, projected growth and sales of our existing products as well as our
expectations of market acceptance of ASCENIV and BIVIGAM;

effects of the coronavirus COVID-19 pandemic and other potential pandemics on our business,
financial condition, liquidity and results of operations, and our ability to continue operations in the
same manner as previously conducted prior to the macroeconomic effects of the COVID-19 pandemic
and other potential pandemics; and

future domestic and global economic conditions, including, but not limited to, supply chain constraints,
inflationary pressures or performance.

In addition to the foregoing, you should also consider carefully the statements under the section entitled
‘‘Risk Factors’’ and other sections of this Annual Report on Form 10-K, which address additional factors that
could cause our actual results to differ from those set forth in the forward-looking statements. We undertake no
obligation to release publicly any updates or revisions to any forward-looking statements contained herein to
reflect any change in our expectations or any changes in events, conditions or circumstances on which any such
statement is based, except as required by law.

This Annual Report on Form 10-K includes our trademarks, trade names and service marks, such as
‘‘BIVIGAM®,’’ ‘‘ASCENIVTM’’ and ‘‘Nabi-HB®,’’ which are protected under applicable intellectual property
laws and are the property of ADMA Biologics, Inc., or its subsidiaries. Solely for convenience, trademarks, trade
names and service marks referred to in this Annual Report may appear without the ® or ™ symbols, but the
absence of such references are not intended to indicate, in any way, that we will not assert, to the fullest extent
under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and
service marks. We do not intend our use or display of other parties’ trademarks, trade names or service marks to
imply, and such use or display should not be construed to imply, a relationship with, or endorsement or
sponsorship of us by, these other parties.

2

PART I

Item 1.

Business

Unless the context otherwise requires, references in this Business section to ‘‘ADMA,’’ ‘‘ADMA Biologics,’’

the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to ADMA Biologics, Inc., a Delaware corporation, as well as its
wholly-owned and indirectly-owned subsidiaries, ADMA Plasma Biologics, Inc., a Delaware corporation, ADMA
BioCenters Georgia Inc., a Delaware corporation (‘‘ADMA BioCenters’’) and ADMA BioManufacturing, LLC, a
Delaware limited liability company (‘‘ADMA BioManufacturing’’).

Overview

We are an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and

developing specialty plasma-derived biologics for the treatment of immunodeficient patients at risk for infection
and others at risk for certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for
medical reasons.

We currently have three products with U.S. Food and Drug Administration (the ‘‘FDA’’) approval, all of

which are currently marketed and commercially available: (i) BIVIGAM (Immune Globulin Intravenous,
Human), an Intravenous Immune Globulin (‘‘IVIG’’) product indicated for the treatment of Primary Humoral
Immunodeficiency (‘‘PI’’), also known as Primary Immunodeficiency Disease (‘‘PIDD’’), and for which we
received FDA approval on May 9, 2019 and commenced commercial sales in August 2019; (ii) ASCENIV
(Immune Globulin Intravenous, Human – slra 10% Liquid), an IVIG product indicated for the treatment of PI in
adults and adolescents, for which we received FDA approval on April 1, 2019 and commenced first commercial
sales in October 2019; and (iii) Nabi-HB (Hepatitis B Immune Globulin, Human), which is indicated for the
treatment of acute exposure to blood containing HBsAg and other listed exposures to Hepatitis B. We seek to
develop a pipeline of plasma-derived therapeutics, including a product based on our most recently approved
patent application under U.S. Patent No. 10,259,865 related to methods of treatment and prevention of
S. pneumonia infection for an immunoglobulin manufactured to contain standardized antibodies to numerous
serotypes of S. pneumoniae. Our products and product candidates are intended to be used by physician specialists
focused on caring for immune-compromised patients with or at risk for certain infectious diseases.

We manufacture these products at our FDA-licensed, plasma fractionation and purification facility located in

Boca Raton, Florida with a peak annual processing capability of up to 600,000 liters (the ‘‘Boca Facility’’).
Based on current production yields, our ongoing supply chain enhancements and capacity expansion initiatives,
we believe this facility has the potential to produce sufficient quantities of our immune globulin (‘‘IG’’) products
representing annual revenues of $210 million or more in 2023, more than $250 million in annual revenue in
2024 and potentially in excess of $300 million of annual revenue thereafter, as well as achieving profitability
during the first quarter of 2024. At these revenue levels, ADMA forecasts achieving consolidated gross margins
in the range of 40-50% and net income margins in the range of 20-30%. These assumptions translate to potential
annual gross profit and net income in the range of $100-150 million and $50-100 million, respectively, during
the 2024-2025 time period and beyond.

Through our ADMA BioCenters subsidiary, we currently operate ten source plasma collection facilities in
the U.S. This business unit, which we refer to as our Plasma Collection Centers business segment, provides us
with a portion of our blood plasma for the manufacture of our products, and also allows us to sell certain
quantities of source and hyperimmune plasma to third-party customers for further manufacturing. With respect to
our operational plasma collection centers, eight plasma collection centers currently hold FDA licenses, with the
remaining plasma collection centers anticipated to receive FDA approvals throughout 2023. In addition, three of
our FDA-approved plasma collection centers also have approvals from the Korean Ministry of Food and Drug
Safety (‘‘MFDS’’), as well as FDA approval to operate a Hepatitis B immunization program. After giving effect
to the supply chain robustness initiatives undertaken in 2021 and 2022 as it pertains to our plasma collection
network expansion, we remain on track to achieve our goal of having 10 FDA-licensed plasma collection centers
by the end of 2023. A typical plasma collection center, such as those operated by ADMA BioCenters, can collect
approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices

3

depending upon the type of plasma, quantity of purchase and market conditions at the time of sale. Plasma
collected from ADMA BioCenters’ facilities that is not used to manufacture our products is sold to third-party
customers in the U.S. and in other locations outside the U.S. where we are approved under supply agreements or
in the open ‘‘spot’’ market.

We sell plasma-derived intermediate fractions to certain customers, which are generated as part of our
FDA-approved manufacturing process for IG and IVIG products. In January 2020, we announced our entry into a
five-year manufacturing and supply agreement to produce and sell these intermediate by-products, which are used
as the starting raw material to produce other plasma-derived biologics. In addition, from time to time we provide
contract manufacturing services for certain third-party clients. We also provide laboratory contracting services to
certain customers and anticipate providing contract filling, labeling and packing services utilizing our
FDA-approved in-house fill-finish capabilities.

Our Products

BIVIGAM

BIVIGAM is a plasma-derived IVIG that contains a broad range of antibodies similar to those found in
normal human plasma. These antibodies are directed against bacteria and viruses, and help to protect PI patients
against serious infections. BIVIGAM is a purified, sterile, ready-to-use preparation of concentrated human
Immunoglobulin G antibodies indicated for the treatment of PI, a group of genetic disorders. This includes, but is
not limited to, the humoral immune defect in common variable immunodeficiency, X-linked
agammaglobulinemia, congenital agammaglobulinemia, Wiskott-Aldrich syndrome and severe combined
immunodeficiency. These PIs are a group of genetic disorders. Based on recent estimates, these disorders are no
longer considered to be very rare, with as many as one in every 1,200 people in the United States having some
form of PI.

On May 9, 2019, the FDA approved the Prior Approval Supplement (the ‘‘PAS’’) for the use of our IVIG

manufacturing process (known as fractionation), thereby enabling us to re-launch and commercialize this product
in the U.S. We resumed production of BIVIGAM during the fourth quarter of 2017 and commercial production is
ongoing, using our FDA-approved IVIG manufacturing process under U.S. Department of Health and Human
Services (‘‘HHS’’) License No. 2019. The commercial re-launch and first commercial sales for this product
commenced in August of 2019.

On April 28, 2021, we announced that the FDA granted approval for our expanded plasma pool production
scale process, allowing for a 4,400-liter plasma pool for the manufacture of our BIVIGAM IVIG product. This
increased IVIG plasma pool scale, which allows us to produce BIVIGAM at an expanded capacity utilizing the
same equipment, release testing assays and labor force, has had a favorable impact on our gross margins,
manufacturing efficiencies and operating results since the beginning of the third quarter of 2021.

ASCENIV

ASCENIV is a plasma-derived IVIG that contains naturally occurring polyclonal antibodies, which are

proteins that are used by the body’s immune system to neutralize microbes, such as bacteria and viruses, and
prevent against infection and disease. We manufacture ASCENIV under HHS License No. 2019 using a process
known as fractionation. The Centers for Medicare and Medicaid Services (‘‘CMS’’) has issued a permanent,
product-specific-J-code for ASCENIV. Under the Healthcare Common Procedure Coding System (‘‘HCPCS’’),
the J-code (J1554) became effective April 1, 2021. As part of our proprietary manufacturing process for
ASCENIV, we leverage our unique, patented plasma donor screening methodology and tailored plasma pooling
design, which blends normal source plasma and plasma from donors tested to have high levels of neutralizing
antibody titers to respiratory syncytial virus (‘‘RSV’’) using our proprietary microneutralization testing assay. We
are able to identify the high titer or ‘‘hyperimmune’’ plasma that meets our internal and required specifications
for ASCENIV with our patented testing methods and assay. This type of high titer plasma is typically found in
less than 10% of the total donor collection samples we test.

ASCENIV is approved for the treatment of PIDD or PI, a class of inherited genetic disorders that causes a

deficient or absent immune system in adults and adolescents (12 to 17 years of age). Our pivotal Phase 3 clinical
trial in 59 PIDD patients met the primary endpoint of no Serious Bacterial Infections (‘‘SBI’’) reported during
12 months of treatment. Secondary efficacy endpoints further demonstrated the benefits of ASCENIV in the low

4

incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare and unscheduled medical
visits and hospitalizations. We believe this clinical data together with the FDA approval for the treatment of
PIDD better positions ADMA to further evaluate ASCENIV in immune-compromised patients infected with or
at-risk for RSV infection or potentially other respiratory viral pathogens. Due to the COVID-19 pandemic, our
plans have been delayed. In the future however, we may elect to work with the FDA and the immunology and
infectious disease community to potentially design an appropriate clinical trial to evaluate the use of ASCENIV
in this patient population. Commercial sales of ASCENIV commenced in October of 2019 and the product is
currently available to U.S.-based healthcare professionals for prescription and use in U.S.-based patients.

Nabi-HB

Nabi-HB is a hyperimmune globulin that is rich in antibodies to the Hepatitis B virus. Nabi-HB is a purified

human polyclonal antibody product collected from plasma donors who have been previously vaccinated with a
Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing HBsAg,
prenatal exposure of infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive persons and
household exposure to persons with acute Hepatitis B virus infection in specific, listed settings. Hepatitis B is a
potentially life-threatening liver infection caused by the Hepatitis B virus. It is a major global health problem. It
can cause chronic infection and places people at high risk of death from cirrhosis and liver cancer. Nabi-HB has
a well-documented record of long-term safety and effectiveness since its initial market introduction. The FDA
approved Nabi-HB on March 24, 1999. Production of Nabi-HB at the Boca Facility has continued under our
leadership since the third quarter of 2017. In early 2018, we received authorization from the FDA for the release
of our first commercial batch of Nabi-HB for commercial distribution in the U.S. and we continue to
manufacture Nabi-HB under HHS License No. 2019.

Evaluation of ASCENIV in PIDD Patients

PIDD or PI, also known as Inborn Errors of Immunity, are genetic disorders that causes a deficient or

absent immune system, is caused by hereditary or genetic defects and can affect anyone regardless of age or
gender. PIDD patients are more vulnerable to infections and more likely to suffer complications from these
infections. IVIG is a plasma-derived product that is used to prevent serious infections in patients with PIDD. It is
comprised of polyclonal antibodies, which are proteins produced by B-cells that are used by the body’s immune
system to neutralize foreign objects such as bacteria and viruses. It is estimated that there are about
250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. As
reported in industry journals, the U.S. sales of immune and hyperimmune globulin products for all its uses were
reported to be approximately $9.6 billion in 2021 and are expected to exceed $17 billion by 2027 based upon an
anticipated compounded annual growth rate of approximately 9%.

ASCENIV, formerly known as RI-002, contains polyclonal antibodies against various infectious agents, such

as streptococcus pneumoniae, H. influenza type B, CMV, measles and tetanus, including standardized antibodies
against RSV. RSV is a common respiratory virus that often presents during the winter months. Nearly all
children will have been infected with RSV by three years of age; however, the immune systems of most healthy
children prevent significant morbidity and mortality. Conversely, in patients who are immune-compromised, such
as those with PIDD or who have undergone a hematopoietic stem cell or solid organ transplant and may be on
immunosuppressive drugs or chemotherapy, RSV infection can be associated with significant morbidity and
mortality. Immune-compromised patients historically have a 5% to 15% rate of RSV infection, and, if left
untreated, lower respiratory tract RSV infections in immune-compromised patients can result in a mortality rate
of up to 40% of infected patients. In hematopoietic stem cell transplant (‘‘HSCT’’) patients, a subset of the
immune-compromised patient population with approximately 25,000 transplants being performed annually in the
U.S., it is estimated that about 25% of patients treated with the current standard of care (aerosolized Ribavirin)
will progress to Lower Respiratory Tract Infection (‘‘LRTI’’) while 41% of patients untreated with the current
standard of care will progress to LRTI.

The RI-002 pivotal Phase III clinical trial was conducted as a single arm study in which patients were
treated approximately once per month for a period of 12 months plus 90 days for follow up. Fifty-nine patients
were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of SBI to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic (‘‘PK’’) data
collection points including antibody titers for certain agents, including RSV antibody levels at various time points
after infusion.

5

RI-002 demonstrated positive results in the Phase III study in patients with PIDD, meeting its primary
endpoint of no SBIs reported. RI-002 was administered in a total of 793 infusions with zero serious adverse
events to 59 patients in nine treatment centers throughout the U.S. These results, included in our Biologics
License Application (‘‘BLA’’), exceed the requirement specified by FDA guidance of ≤ 1 serious infection per
patient-year.

On February 22, 2015, at the 2015 American Academy of Allergy, Asthma & Immunology Annual Meeting,

scientific investigators reported on the secondary outcomes that included: a total of 93 days, or 1.66 days per
patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and Immune Globulin (‘‘IgG’’) trough levels above those required by the
FDA for IVIG products. Additionally, there was a marked increase in all of the measured specific anti-pathogen
antibodies in PK subjects (n=31). The mean of maximum fold increases in specific antibody levels after infusion
of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV), which were statistically significant
fold increases from the pathogen’s specific measured baselines. The safety profile of ASCENIV is comparable to
that of other immunoglobulins.

Evaluation of ASCENIV in RSV-Infected Patients

RSV is a common virus that ordinarily leads to mild, cold-like symptoms in healthy adults and children. In
high-risk groups, such as the PIDD population and other immune-compromised populations, RSV can lead to a
more serious infection and may even cause death. The polyclonal antibodies that are present in ASCENIV are
expected to prevent infections in immune-compromised patients.

In October 2019, we announced the successful treatment of ASCENIV in two children suffering with RSV

through our compassionate use program. The two immunocompromised children admitted to the Mayo Clinic
each were diagnosed with T-cell lymphoblastic lymphoma. Both patients were undergoing delayed intensification
chemotherapy and each were diagnosed with RSV Lower Respiratory Tract Infection (‘‘LRTI’’). Both children
were treated with ASCENIV under an emergency FDA Investigational New Drug protocol.

We previously conducted a randomized, double-blind, placebo-controlled Phase II clinical trial to evaluate
RI-001, RI-002’s predecessor product candidate, in immune-compromised, RSV-infected patients. This trial was
conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial
demonstrated a statistically significant improvement in the change from baseline RSV titers to day 18 in the high
dose and low dose treatment groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The
mean fold increase for high dose was 9.24 (95% CI 4.07, 21.02) and the observed mean fold increase for low
dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated patients was 1.42 (95% CI 0.64,
3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced greater than
a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no
serious drug-related adverse events reported during the trial.

From April 2009 through February 2011, RI-001 was also administered to 15 compassionate use patients
where physicians requested access to the product for treating their patients with documented lower respiratory
tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum
samples were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in
RSV antibody titers from baseline. Serum samples were not obtained from two patients that received
Palivizumab. All 11 surviving patients received RI-001 within an average of 4.4 days after the onset of the
diagnosis of RSV. The drug was well-tolerated in all 15 patients and there were no reports of serious adverse
events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience and data
obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various
conferences over the past several years.

Based on these results, we may elect to evaluate ASCENIV for the treatment of RSV or other respiratory

viral pathogens in immunocompromised patients or other appropriate patient populations. Due to the COVID-19
pandemic, our plans to commence such evaluation have been delayed.

Plasma Collection Operations

ADMA BioCenters has a total of ten source plasma U.S. based collection facilities, all of which are actively

operating and collecting plasma. Currently, eight of our plasma collection facilities have an FDA license (of
which three facilities have also received approvals from MFDS and FDA approval to implement a Hepatitis B

6

immunization program), with two remaining centers expected to receive FDA approval during 2023. Source
plasma that is collected from our FDA-licensed facilities provides us with a portion of our blood plasma for the
manufacture of our products. After giving effect to our supply chain robustness initiatives made in 2021 and
2022 as it pertains to our plasma collection network expansion, we remain on track to achieve our stated goal of
having ten plasma collection centers FDA-licensed by the end of 2023. A typical plasma collection center, such
as those operated by ADMA BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma
annually, which may be sold for different prices depending upon the type of plasma, quantity of purchase, and
market conditions at the time of sale. Plasma collected from ADMA BioCenters’ facilities that is not used to
manufacture our products or product candidates are sold to third-party customers in the U.S. and other
international locations where we are approved under supply agreements or in the open ‘‘spot’’ market.

Acquisition Transaction with Biotest Pharmaceuticals Corporation

On June 6, 2017, we completed the acquisition of certain assets (the ‘‘Biotest Assets’’) of the Therapy
Business Unit (‘‘BTBU’’) of BPC Plasma, Inc. (formerly Biotest Pharmaceuticals Corporation (‘‘BPC’’), together
with Biotest AG, ‘‘Biotest’’), which included two FDA-licensed products, Nabi-HB and BIVIGAM, and the Boca
Facility (the ‘‘Biotest Transaction’’). BTBU had previously been our third-party contract manufacturer.
Immediately following the acquisition, the Biotest Assets were contributed into ADMA BioManufacturing.

Upon the completion of the Biotest Transaction, we gained control over the regulatory, quality, general
operations and drug substance manufacturing process at the Boca Facility. In April 2018, we completed an FDA
inspection and as a result of the inspection, our Boca Facility’s regulatory compliance status improved from
Official Action Indicated (‘‘OAI’’) to Voluntary Action Indicated (‘‘VAI’’), allowing us to submit regulatory
applications to the FDA for review. During the second quarter of 2019, we received FDA approval of the
respective submissions for both ASCENIV and BIVIGAM, and the transfer of the BIVIGAM and Nabi-HB
licenses from BPC to us was completed on July 2, 2019.

Our Strategy

Our goal is to be a leader in manufacturing, marketing and developing specialized, targeted, plasma-derived

therapeutics that are intended to extend and enhance the lives of individuals who are naturally or medically
immune-compromised. The key elements of our strategy for achieving this goal are as follows:

•

•

•

Continue to expand the commercial production of our IG products, as well as the commercial
presence, penetration and sales of BIVIGAM and ASCENIV for the treatment of patients with PI.
Subject to the continuing restrictions surrounding COVID-19, we continue to enhance our recruiting
initiatives and expand our existing specialty commercial sales force and commercial-facing organization
to market BIVIGAM and ASCENIV to appropriate sites of care including home healthcare infusion
facilities, hospitals, physician offices/clinics and other specialty treatment and infusion center
organizations. We also anticipate staffing our Company with additional personnel for patient support,
medical affairs, quality assurance, quality control, inventory management, regulatory affairs, scientific
affairs and third-party reimbursement. We currently use and may continue to partner with a network of
national distributors to fulfill orders for BIVIGAM and ASCENIV. We have implemented and continue
to implement virtual customer engagement programs to adapt to restrictions in place due to COVID-19,
as well as continue with our in-person presence with customers and healthcare professionals and attend
appropriate trade-related and scientific medical conferences as COVID-19 restrictions ease in various
geographic regions of the country.

Increase marketing efforts around Nabi-HB. Subject to the restrictions surrounding COVID-19, we
plan to increase our marketing efforts and attend relevant virtual or in-person medical conferences
during 2022, raising awareness of the risks associated with Hepatitis B and the benefits and efficacy of
Nabi-HB in its indicated populations. We have published and may continue to publish scientific data
supporting the use of Nabi-HB in at-risk and appropriate patient populations.

Expand ASCENIV’s FDA-approved uses. Having received approval by the FDA for ASCENIV as a
treatment for PIDD, we may elect to evaluate the clinical and regulatory paths to grow the ASCENIV
franchise through expanded FDA-approved uses. We believe that there may be patient populations
beyond PIDD that could potentially derive clinical benefit from ASCENIV, some of which may
potentially be eligible for orphan status. We plan to leverage our previously conducted randomized,

7

•

•

•

•

•

double-blind, placebo-controlled Phase II clinical trial evaluating RI-001, RI-002’s predecessor product
candidate, in immune-compromised, RSV-infected patients to explore ASCENIV for the treatment of
RSV or other potential respiratory viral pathogens, as well as in other patient populations we may
believe are appropriate.

Improve the Boca Facility’s and ADMA BioCenters’ operating efficiencies, yields and gross
margins. During 2023, we plan to continue to execute on the capacity optimization efforts we put in
place during 2021 to increase the Boca Facility’s manufacturing capacity throughput, while seeking
additional operating efficiencies and gross margin improvements. We also plan to strengthen our supply
chain capabilities to potentially unlock efficiencies, improve production yields and provide more control
and visibility for timing of commercial product releases for all of our FDA-approved commercial
products. During 2021, we received FDA approvals for our 4,400L expanded IVIG production scale, as
well as our in-house fill-finish and related operations production line using our aseptic filling machine.
In 2023, ADMA commenced manufacturing ASCENIV at the 4,400 Liter production scale for the
first time in corporate history. We expect that this expansion should meaningfully improve the product’s
margin profile and increase plant production capacity as fewer batches will be needed to support
revenue goals. The Company’s successful experience in ramping up BIVIGAM to this production scale
over the last two years lends confidence to its ability to leverage these same processes for ASCENIV.
We believe these benefits could be realized as early as the second half of 2023.

Label expansion. The ongoing post-marketing clinical studies may provide label expansion
opportunities for both BIVIGAM and ASCENIV to include pediatric-aged PI patients as well as
additional publications supporting product safety.

Expand and develop our pipeline with additional specialty plasma and/or hyperimmune
immunoglobulin products. Our core competency is in the development, manufacturing, testing and
commercialization of plasma-derived therapeutics. We believe there are a number of under-addressed
medical conditions for which plasma-derived therapeutics may be beneficial. Utilizing our intellectual
property patents, which include our proprietary testing assay and other standardization methods and
technologies, we have identified potential new product candidates that we may advance into preclinical
activities.

Develop and expand our plasma collection center network. We plan on expanding our plasma
collection network with the goal of having 10 FDA-licensed plasma collection facilities operating in the
U.S. by the end of 2023 as we seek to achieve plasma supply self-sufficiency over the next few years
and prepare for production ramp-up and growth to capitalize on the global growing IVIG and source
plasma markets, including obtaining FDA licenses for each new plasma collection center and regulatory
approval in additional jurisdictions.

Secure new supply contracts for potential contract manufacturing organization (‘‘CMO’’)
opportunities. We are exploring new potential CMO, contract testing and business development
opportunities, which include fill-finish capabilities, with our multi-faceted revenue generation platform,
while continuing to fulfill our newly secured, long-term CMO supply agreement to produce and sell
plasma-derived intermediate fractions.

Primary Immunodeficiency Disease

PIDD is a class of hereditary disorders characterized by defects in the immune system, due to either a lack

of necessary antibodies or a failure of these antibodies to function properly. According to the World Health
Organization, there are over 150 different presentations of PIDD. As patients suffering from PIDD lack a
properly functioning immune system, they typically receive monthly, outpatient infusions of IVIG therapy.
Without this exogenous antibody immune support, these patients would be susceptible to a wide variety of
infectious diseases. PIDD has an estimated prevalence of 1:1,200 in the U.S., or approximately 250,000 people.
Industry reports indicate the U.S. market for IG in 2021 was $9.6 billion and is expected to exceed $17 billion
by 2027 based upon a compounded annual growth rate of 9%.

As most patients with PIDD present with infections, the differential diagnosis and initial investigations for
an underlying immune defect are typically guided by the clinical presentation. In subjects with PIDD, individual
infections are not necessarily more severe than those that occur in a normal host. Rather, the clinical features

8

suggestive of an immune defect may be the recurring and/or chronic nature of infections with common pathogens
that may result in end organ damage, such as bronchiectasis. In addition, subjects with PIDD will often respond
poorly to standard antimicrobial therapy or they may have repeated infections with the same pathogen. The
virulence of the infecting organism should also be considered, and a subject’s immune competence should be
questioned when invasive infections are caused by low virulence or opportunistic pathogens. For example,
infection with the opportunistic pathogens Pneumocystis jiroveci (previously Pneumocystis carinii) or atypical
mycobacteria should prompt an investigation for underlying immunodeficiency. Typical clinical presentations for
subjects with PIDD are:

•

•

•

•

•

antibody deficiency and recurrent bacterial infections;

T-lymphocyte deficiency and opportunistic infections;

other lymphocyte defects causing opportunistic infections;

neutrophil defects causing immunodeficiency; and

complement deficiencies.

PIDD can present at any age from birth to adulthood, posing a considerable challenge for the practicing
physician to know when and how to evaluate a subject for a possible immune defect. Subjects with marked
antibody deficiencies are generally dependent on IVIG therapy for survival. Benefits of adequate IVIG therapy in
subjects not able to produce antibodies normally include a reduction in the severity and frequency of infections,
prevention of chronic lung disease and prevention of enteroviral meningoencephalitis. Several immune globulin
products have already been approved by the FDA.

Plasma - Background, Composition and Manufacturing

Human blood contains a number of components including:

•

Red blood cells – Used to carry oxygen from the lungs to the body;
• White blood cells – Used by the immune system to fight infection;
•

Platelets – Used for blood clotting; and

•

Plasma – Used to carry the aforementioned components throughout the body and provide support in
clotting and immunity.

Plasma is the most abundant blood component, representing approximately 55% of total blood volume.
Plasma, which is 90% water, is rich in proteins used by the human body for blood clotting and fighting infection.
These proteins account for approximately 7% of plasma’s volume. As plasma contains these valuable proteins,
plasma collection and the manufacturing of human plasma-derived therapeutics provide therapeutic benefits for
ill patients.

In order to produce plasma-derived therapeutics that can be administered to ill patients, raw material plasma
must be collected from human donors and then manufactured into specialized products. Plasma is collected from
healthy donors at FDA-licensed plasma donation centers. To ensure safety of the collected plasma, all plasma
donations are tested using FDA-approved methods of Nucleic Acid Testing for various infectious diseases, such
as HIV or HCV.

Plasma is collected using a process known as ‘‘plasmapheresis.’’ During plasmapheresis, a donor’s blood is

drawn into a specialized medical device that separates the plasma component through centrifugation, and then
returns the other blood components back into the donor’s bloodstream. Plasmapheresis is performed utilizing an
FDA-approved, automated device with a sterile, self-contained collection kit. The plasma that is collected is
known as ‘‘normal source plasma.’’ There are over 1,000 plasma donation centers in the U.S. As noted in a
variety of plasma industry trade reports and related conferences, approximately 43 million liters of source plasma
were collected in the U.S. in 2021. In the U.S., a donor may donate plasma a maximum of two times during any
seven-day period, with at least two days in between donations. Plasma donation centers in the U.S. typically pay
donors $50 to $150 per donation and some donors with rare or high antibody levels can be paid more.

In order to isolate the desired therapeutic elements in normal source plasma, it must initially go through the
fractionation process. The process of fractionation was invented in the 1940’s by E.J. Cohn and is referred to as

9

the Cohn method or cold ethanol fractionation. First, the source plasma undergoes a process called pooling, in
which the individual plasma donations are combined into a pooling tank. Second, the Cohn fractionation method,
which is a combination of time, temperature, pH, alcohol concentration and centrifugation, is used to separate the
desired plasma protein components, or ‘‘fractions.’’ After fractionation, the separated proteins are then
re-suspended and are treated with a solvent detergent treatment process for viral inactivation. Next, other forms
of filtration, such as nanofiltration, are performed as an additional viral removal and viral reduction step. Finally,
with the various components separated and purified, the bulk product is formulated and filled into final, finished
vials. During these various steps of manufacturing, each lot is reviewed and tested for potency and purity prior to
being approved for release. The biologics manufacturing process is time consuming and complex. The time for
collection, manufacturing and release of a batch of IG is estimated at seven to 12 months, which is not unique to
just ADMA as other fractionators report similar production timelines.

The proteins in human plasma fall into four categories: albumin (60% of protein volume), immune globulins

(15% of protein volume), coagulation factors (1% of protein volume), and other proteins (24% of protein
volume) such as alpha-1 proteinase inhibitor, C1 esterase inhibitor, fibrin sealants and fibrinogen. Many of the
other proteins in plasma have yet to be developed into commercial therapies. In the U.S., not only are the plasma
collection centers subject to FDA licensure, but each plasma protein product that is derived and fractionated from
plasma must undergo an approval process with FDA’s Center for Biologics Evaluation and Research (‘‘CBER’’).

Immune Globulins

In June 2008, the FDA published the FDA Guidance for Industry outlining the regulatory pathway for the

approval of IVIG for the treatment of PIDD (Guidance for Industry: Safety, Efficacy, and Pharmacokinetic
Studies to Support Marketing of Immune Globulin Intravenous (Human) as Replacement Therapy for Primary
Humoral Immunodeficiency).

Immune globulins can be administered in three ways: intramuscularly, intravenously or subcutaneously.

IVIG principally contains antibodies and, as such, provides passive immunization for individuals who are
immune-deficient or who have been exposed to various infectious agents. IVIG is used therapeutically in a
variety of immunological diseases/deficiencies, such as PIDD, idiopathic thrombocytopenic purpura,
Guillain-Barré syndrome, Kawasaki disease, bone marrow transplant, and chronic inflammatory demyelinating
polyneuropathy. We are aware that other companies are also evaluating IVIG in a clinical trial for the treatment
of Alzheimer’s disease. Additionally, IVIG is also used as therapy in a variety of other diseases that do not
involve primary or secondary immune deficiencies, such as multiple sclerosis, skin disease, and asthma. These
latter uses are referred to as ‘‘off-label’’ or evidence-based uses because the FDA has not approved their use in
these indications and promotion of such uses is not permitted by FDA unless a BLA or BLA supplement with
additional data is approved. Among the various IVIG products, there are only 14 labeled indications approved by
the FDA. However, medical literature identifies at least 150 evidence-based uses for IVIG, of which
approximately 60 are currently included on lists of reimbursable uses by Medicare and other healthcare plans.
This provides opportunities for new product development and submissions to potentially expand the label for our
existing products.

There are two types of immune globulins; standard and hyperimmune. The difference between standard
immune globulins and hyperimmune globulins is that the latter are manufactured using plasma obtained from
donors who have elevated amounts (high-titers) of specific antibodies. These high-titer products can be used to
treat and prevent diseases that present those specific antigens that are reactive with the high-titer antibodies.
Hyperimmune products currently available include Hepatitis B, tetanus, rabies, CMV and RhoD immune
globulins.

As reported in industry journals, the U.S. sales of immune and hyperimmune globulin products for all its

uses were reported to be approximately $9.6 billion in 2021 and are expected to exceed $17 billion in 2027
based upon an anticipated compounded annual growth rate of approximately 9%. IVIG products are used to treat
primary immune deficiencies, certain autoimmune diseases, and other illnesses for immune-compromised patients
and certain neuropathy indications. New research and data, secondary immune deficiencies, additional labeled
indications, an aging population and emerging countries with new markets are all adding to the worldwide
demand and growth of IVIG utilization.

10

Manufacturing and Supply of Our Products

In order to produce plasma-derived therapeutics that can be administered to patients, raw material plasma is

collected from healthy donors at plasma collection facilities licensed by the FDA. When stored under proper
conditions, this plasma may have a shelf-life of up to 10 years. Source plasma is collected at any one of over
1,000 FDA-licensed donation centers located throughout the U.S., using a process known as automated
plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular
components in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is
tested and must be negative for antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg
and Hepatitis C virus (‘‘HCV’’), using FDA-approved serological test procedures.

After receipt of the source plasma, the frozen plasma is thawed and pooled and goes through the

fractionation process. This process is referred to as the Cohn method or cold ethanol method of fractionation.
During cold ethanol fractionation, classes of proteins are precipitated and removed by centrifugation or filtration.
The fractionation process includes the following steps; precipitation and absorption, depth filtration,
centrifugation and chromatography. Because of the human origin of the raw material and the thousands of
donations required in the fractionation process, a significant risk associated with plasma products is the
transmission of blood-borne infectious pathogens. These purification processes have the potential to reduce the
viral load. The manufacturing process also utilizes a multistep viral removal/inactivation system, which further
increases the safety of the products. The following manufacturing processes have been validated for their
capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment and nanofiltration. We incorporate these processes into the manufacturing process, which ensures that
our products comply with the requirements of the FDA and are safe and efficacious.

Once our drug-substance is produced in the Boca Facility, the product is further processed by certain third-
party fill-finish providers or through our own in-house fill finish process which was approved by the FDA in the
second half of 2021, as well as through labeling, packaging and Drug Supply Chain Security Act (‘‘DSCSA’’)
serialization requirements. The end-to-end production cycle can take approximately seven to 12 months for a
batch of FDA released drug product. Since 2020, we have successfully implemented several manufacturing and
supply chain enhancements, including the purchase and installation of a new aseptic filling machine and the
manufacturing of four conformance batches of BIVIGAM at an increased scale. These initiatives are designed to
reduce operating costs, improve margins and provide for faster production cycle turnaround time, ultimately
providing increased control and independence from third-party vendors and contractors.

ADMA BioCenters has a total of ten source plasma collection facilities in its network. We anticipate all ten

collection facilities will be FDA-approved by the end of 2023 and should allow the Company to be essentially
self-sufficient for its raw material source plasma supply to produce its commercial IG product portfolio. Eight of
our operational ADMA BioCenters plasma collection facilities are currently licensed by the FDA and three
facilities have approvals from the South Korean MFDS and the FDA for the collection and sale of Hepatitis B
hyperimmune plasma obtained from immunized donors. At the present time, the Company does not plan to build
additional plasma collection facilities beyond the existing 10, but continues to have third-party supply contracts
in place to augment our vertically integrated plasma collections.

Pursuant to the terms of a plasma purchase agreement with BPC, dated as of November 17, 2011 (the

‘‘2011 Plasma Purchase Agreement’’), we have agreed to purchase from BPC an annual minimum volume of
source plasma containing antibodies to RSV to be used in the manufacture of ASCENIV. We must purchase a
to-be-determined and agreed upon annual minimum volume from BPC but may also collect high-titer RSV
plasma from up to five wholly-owned ADMA plasma collection facilities. During 2015, we amended the 2011
Plasma Purchase Agreement with BPC to allow us the ability to collect our raw material RSV high-titer plasma
from other third-party collection organizations, thus allowing us to expand our reach for raw material supply for
ASCENIV. Unless terminated earlier, the 2011 Plasma Purchase Agreement expires in June 2027, after which it
may be renewed for two additional five-year periods if agreed to by the parties. On December 10, 2018, BPC
assigned its rights and obligations under the 2011 Plasma Purchase Agreement to Grifols Worldwide Operations
Limited (‘‘Grifols’’) as its successor-in-interest, effective January 1, 2019.

On June 6, 2017, we entered into a Plasma Supply Agreement with BPC pursuant to which BPC supplies,
on an exclusive basis subject to certain exceptions, to ADMA BioManufacturing an annual minimum volume of
hyperimmune plasma that contain antibodies to the hepatitis B virus for the manufacture of Nabi-HB. The
Plasma Supply Agreement has a 10-year term. On July 19, 2018, we entered into an amendment to the Plasma

11

Supply Agreement with BPC to provide, among other things, that in the event BPC elects not to supply in excess
of ADMA BioManufacturing’s specified amount of Hepatitis B plasma and ADMA BioManufacturing is unable
to secure Hepatitis B plasma from a third party at a price which is within a low double digit percentage of the
price which ADMA BioManufacturing pays to BPC, then BPC shall reimburse ADMA BioManufacturing for the
difference in price ADMA BioManufacturing incurs. On December 10, 2018, BPC assigned its rights and
obligations under the Plasma Supply Agreement to Grifols, effective January 1, 2019.

On June 6, 2017, we entered into a Plasma Purchase Agreement with BPC (the ‘‘2017 Plasma Purchase
Agreement’’), pursuant to which ADMA BioManufacturing purchases normal source plasma from BPC at agreed
upon annual quantities and prices. The 2017 Plasma Purchase Agreement had an initial term of five years after
which the 2017 Plasma Purchase Agreement could be renewed for two additional terms of two years each upon
the mutual written consent of the parties. On December 10, 2018, BPC assigned its rights and obligations under
the Plasma Purchase Agreement to Grifols, effective January 1, 2019. Effective as of May 12, 2021, the
Company and Grifols amended the foregoing 2017 Plasma Purchase Agreement whereby, among other things, the
term of the agreement was extended through December 31, 2022, while certain historical provisions were
deleted. The 2017 Plasma Purchase Agreement expired on December 31, 2022 and was not renewed. In order to
maintain a reliable supply of raw material plasma thereafter, we have executed additional agreements with
multiple third-party suppliers of NSP and we continue to increase our plasma collection capabilities at our
ADMA BioCenters Plasma Collection Centers business segment.

Sales and Commercialization of Our Products

Currently, BIVIGAM, ASCENIV and Nabi-HB are sold primarily through independent distributors, drug
wholesalers acting as sales agents, specialty pharmacies servicing both acute and ambulatory infusion centers and
the home health infusion setting and other alternate site providers. In the U.S., independent distributors or
third-party drug wholesalers ship our products through their distribution centers. These centers are generally
stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods include
frequent contact by sales and customer service representatives, automated communications via various electronic
purchasing systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication
presence and advertising.

We market and sell our products through our specialty sales force, distribution relationships and other
customary industry methods. We focus our efforts specifically on the easily identifiable treatment centers which
specialize in the care and management of immune compromised individuals. We estimate that there are
approximately 500 leading specialty programs in the U.S. which have significant patient populations for PIDD,
suitable for treatment with ASCENIV. Our management and Board have substantial prior direct marketing, sales
and distribution experience with plasma-derived drugs, specialty immune globulins and other biological products.
As is customary in the plasma products industry, we may also use a network of national distribution
organizations that have specialty divisions that focus on plasma products to fulfill orders for ASCENIV.

Subject to restrictions surrounding the COVID-19 pandemic, efforts to generate increased market awareness

for Nabi-HB include attending and presenting scientific information at medical conferences, as well as
sponsoring medical education symposiums. We have also hired a specialty sales force consisting of account
managers, medical science liaisons and other customary scientific, medical and detail representatives to market
BIVIGAM and ASCENIV to hospitals, physician offices/clinics, and other specialty treatment organizations as
applicable. In addition, we have expanded staffing efforts with additional personnel for patient support, medical
affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. We may also use a network of national and regional
distributors to assist with order fulfillment for BIVIGAM and ASCENIV for use by healthcare professionals and
hospitals.

Pursuant to our Manufacturing, Supply and License Agreement effective as of January 21, 2017, we granted
Biotest an exclusive license to market and sell ASCENIV in Europe and in selected countries in North Africa and
the Middle East (the ‘‘Territory’’), to have access to our testing services for testing of BPC’s plasma samples
using our proprietary RSV assay, and to reference (but not access) our proprietary information for the purpose of
Biotest seeking regulatory approval for ASCENIV in the Territory. As consideration for the license, Biotest
provided us with certain in-kind services and also compensated us with cash payments upon the completion of
certain milestones. Biotest is also obligated to pay us an adjustable royalty based on a percentage of revenues
from the sale of ASCENIV in the Territory for 20 years from the date of first commercial sale.

12

Major Customers

For the year ended December 31, 2022, two customers, BioCARE, Inc. (‘‘BioCare’’) and Priority Healthcare

Distribution, Inc. (‘‘Curascript’’), represented an aggregate of 74% of our consolidated revenues.

Competition

The plasma products industry is highly competitive. We face, and will continue to face, intense competition

from both U.S.-based and foreign producers of plasma products, some of which have lower cost structures,
greater access to capital, greater resources for research and development, and sophisticated marketing capabilities.

These competitors may include but are not limited to: CSL Behring, Grifols Biologicals, Takeda,
Octapharma, Kedrion and BPL. There are four producers of plasma-derived products in the U.S. consisting
of: CSL Behring, Grifols, Takeda and ADMA Biologics. In addition to competition from other large worldwide
plasma products providers, we face competition in local areas from smaller entities. In Europe, where the
industry is highly regulated and healthcare systems vary from country to country, local companies may have
greater knowledge of local healthcare systems, more established infrastructures and existing regulatory approvals
or a better understanding of the local regulatory process, allowing them to market their products more quickly.
Moreover, plasma therapy generally faces competition from non-plasma products and other courses of treatments.
For example, recombinant Factor VIII products compete with plasma-derived products in the treatment of
Hemophilia A.

New technologies are being developed by biotech and pharmaceutical companies which may impact
physician prescription and patient usage of IVIG. One such recently approved FDA therapy is an anti-FcRn
inhibitor (neonatal Fc receptor, IgG receptor) which is a protein in humans responsible for maintaining IgG
levels. This recently FDA approved anti-FcRn is for the treatment of generalized Myasthenia Gravis that may
impact a subset of overall general IVIG usage. Other such FcRn potential targeted indications in development
that may disrupt general IVIG usage may include but are not limited to: Chronic Inflammatory Demyelinating
Polyradiculoneuropathy (‘‘CIDP’’), a rare type of autoimmune disorder, Immune Thrombocytopenic Purpura
(‘‘ITP’’), a blood disorder characterized by a decrease in the number of platelets in the blood and Pemphigus
Vulgaris (‘‘PV’’), a rare type of autoimmune disorder.

Intellectual Property

We rely on a combination of patents, patent applications, copyrights and trademarks, as well as contracts,

such as confidentiality, material data transfer, license and invention assignment agreements, to protect our
intellectual property rights. We also rely upon trade secret laws to protect unpatented know-how and advancing
technological innovation.

We have intellectual property (patents, know-how, etc.) related to our immunotherapeutic compositions,

manufacturing processes, immunotherapeutic treatment, and related methods and formulations.

Patents related to our immune globulin product ASCENIV include U.S. Patent No. 9,107,906, which covers

compositions comprising pooled plasma, as well as immunoglobulin prepared therefrom, that contains a
standardized, elevated titer of RSV neutralizing antibodies and elevated levels of antibodies specific for one or
more other respiratory pathogens, as well as methods of making and using the compositions. U.S. Patent
Nos. 9,714,283, 9,815,886, 9,969,793, 10,683,343 and 11,339,206 encompassing immunotherapeutic compositions
and immunotherapeutic methods proprietary to us, also relate to ASCENIV. Corresponding foreign patents and
patent applications also pertain to this technology.

We also hold intellectual property, including patents and patent applications, related to immunotherapeutic
compositions and immunotherapeutic methods for the treatment and prevention of S. pneumonia infection. U.S.
Patent Nos. 10,259,865 and 11,084,870 pertain to various aspects of this technology. Additional U.S. and
numerous corresponding foreign patent applications also relate to this technology.

We continue to prepare, file, and prosecute patent applications to provide broad and strong protection of our

proprietary rights, including applications focused on existing and future products.

We rely on a combination of patents, trademarks, trade secrets and nondisclosure and non-competition
agreements to protect our proprietary intellectual property and will continue to do so. We also seek to enhance
and ensure our competitive position through a variety of means, including our unique and proprietary plasma

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donor selection criteria, our proprietary formulation methodology for plasma pooling and the proprietary
reagents, controls, testing standards, standard operating procedures and methods we use in our anti-RSV
microneutralization assay. While we intend to defend against threats to our intellectual property, litigation can be
costly and there can be no assurance that our patents will be enforced or that our trade secret policies and
practices or other agreements will adequately protect our intellectual property. We seek to preserve the integrity
and confidentiality of our data and trade secrets by maintaining physical security of our premises and physical
and electronic security of our information technology systems. These processes, systems, and/or security
measures may be breached, and we may not have adequate remedies as a result of any such breaches.
Third parties may also own or could obtain patents that may require us to negotiate licenses to conduct our
business, and there can be no assurance that the required licenses would be available on reasonable terms or at
all.

In addition, our trade secrets may otherwise become known or be independently discovered by competitors.
We also seek to protect our proprietary technology and processes, in part, by confidentiality agreements with our
employees, consultants, scientific advisors and contractors. Although we rely, in part, on confidentiality,
nondisclosure and non-competition agreements with employees, consultants and other parties with access to our
proprietary information to protect our trade secrets, proprietary technology, processes and other proprietary rights,
there can be no assurance that these agreements or any other security measures related to such trade secrets,
proprietary technology, processes and proprietary rights will be adequate, will not be breached, that we will have
adequate remedies for any breach, that others will not independently develop substantially equivalent proprietary
information or that third parties will not otherwise gain access to our trade secrets or proprietary knowledge. To
the extent that our consultants, contractors or collaborators use intellectual property owned by others in their
work for us, disputes may arise as to the rights in related or resulting know-how and inventions.

We currently hold multiple trademarks, including but not limited to ASCENIV, BIVIGAM and Nabi-HB. We

have spent considerable resources registering these trademarks and building brand awareness and equity of the
ADMA Biologics trade name, which has been used in commerce since 2006. We expect to maintain and defend
our various trademarks to the fullest extent possible.

Government Regulation and Product Approval

The FDA and comparable regulatory agencies in state and local jurisdictions and in foreign countries impose
substantial requirements upon, among other things, the testing (preclinical and clinical), quality control, research,
development, approval and post-approval monitoring and reporting, manufacturing, labeling, storage,
recordkeeping, advertising, promotion, import, export, marketing sales and distribution of our products and
product candidates. If we do not comply with applicable requirements, we may be fined, the government may
refuse to approve our marketing applications or allow us to manufacture or market our products, we may be
criminally prosecuted and we may be excluded from participation in government healthcare programs. These
requirements are continually evolving. By example, in light of the COVID-19 pandemic, the FDA has issued a
number of guidance documents to assist companies navigating pre-commercialization, commercialization,
manufacturing and development concerns raised by COVID-19 and with respect to products intended for
COVID-19. We and our manufacturers may also be subject to regulations under other federal, state and local
laws.

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U.S. Government Regulation

Our current and anticipated future product candidates are considered ‘‘biologics’’ under the FDA regulatory
framework. The FDA’s regulatory authority for the approval of biologics resides in the Public Health Service Act
(the ‘‘PHS Act’’). However, biologics are also subject to regulation under the Federal Food, Drug and Cosmetic
Act (the ‘‘FDCA’’) because most biological products also meet the FDCA’s definition of ‘‘drugs.’’ Most
pharmaceuticals or ‘‘conventional drugs’’ consist of pure chemical substances and their structures are known.
Most biologics, however, are complex mixtures that are not easily identified or characterized. Biological products
differ from conventional drugs in that they tend to be heat-sensitive and susceptible to microbial contamination.
This requires sterile processes to be applied from initial manufacturing steps. In the U.S., the FDA regulates
biologic products under the FDCA, the PHS Act and related federal regulations under Title 21 of the Code of
Federal Regulations (‘‘CFR’’). Biologics are also regulated under other federal, state, and local statutes and
regulations by other regulatory authorities. The process required by the FDA before our product candidates may
be marketed in the U.S. generally involves the following (although the FDA is given wide discretion to impose
different or more stringent requirements on a case-by-case basis):

•

•

•

•

completion of extensive preclinical laboratory tests, preclinical, nonclinical and formulation studies
performed in accordance with the FDA’s Good Laboratory Practice (‘‘GLP’’) regulations and other
applicable laws and regulations;

submission to the FDA of an Investigational New Drug (‘‘IND’’) application which must become
effective before clinical trials may begin;

obtaining approval by an Institutional Review Board (‘‘IRB’’) at each clinical site before a clinical trial
may be initiated at that site;

performance of adequate and well-controlled clinical trials meeting FDA requirements, commonly
referred to as Good Clinical Practices (‘‘GCP’’), and other additional requirements for the protection of
human research subjects and to establish the safety and efficacy of the product candidate for each
proposed indication;

• manufacturing (through an FDA-approved facility) of product in accordance with the FDA’s current

Good Manufacturing Practices (‘‘cGMP’’) to be used in the clinical trials and providing manufacturing
information needed in regulatory filings;

•

•

•

•

submission of a BLA to the FDA for marketing approval that includes substantial evidence of safety,
purity and potency from results of clinical trials; the results of preclinical testing; detailed information
about the Chemistry, Manufacturing, and Controls (‘‘CMC’’) and proposed labeling and packaging for
the product candidate;

satisfactory completion of an FDA pre-approval inspection of the manufacturing facilities at which the
product candidate is produced, and potentially other involved facilities as well, to assess compliance
with cGMP regulations and other applicable regulations;

satisfactory completion of potential FDA inspections of the preclinical study and clinical trial sites that
generate the data in support of the BLA and;

FDA review and approval of a BLA prior to any commercial marketing, sale or shipment of the
product, including agreement on post-marketing commitments.

The testing, review and approval process requires substantial time, effort and financial resources, and we
cannot be certain that any approvals for our product candidates will be granted on a timely basis, if at all. We
may encounter difficulties or unanticipated costs in our efforts to secure necessary governmental approvals,
which could delay or preclude us from marketing our product candidates. In addition, the FDA may limit the
indications for use or place other conditions on any approvals that could restrict the commercial application of
the products.

Pre-Clinical Studies

Prior to commencing the first clinical trial at a United States investigational site, we must submit
manufacturing and analytical data, pre-clinical or nonclinical data from studies conducted in accordance with
GLPs, and clinical trial plans, among other information, to the FDA as part of an IND application. Subject to

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certain exceptions, an IND becomes effective 30 days after receipt by the FDA, unless the FDA, within the
30-day time period, issues a clinical hold to delay a proposed clinical investigation due to concerns or questions
about the product or the conduct of the clinical trial, including concerns that human research subjects will be
exposed to unreasonable health risks. In such a case, the IND sponsor and the FDA must resolve any outstanding
concerns before the clinical trial can begin. Clinical holds also may be imposed by the FDA at any time before
or during trials due to safety concerns or non-compliance.

Our submission of an IND, or those of our collaboration partners, may not result in the FDA allowance to

commence a clinical trial. A separate submission to an existing IND must also be made for each successive
clinical trial conducted during product development. The FDA must also approve certain changes to an existing
IND, such as certain manufacturing changes. Further, an independent Institutional Review Board (‘‘IRB’’) duly
constituted to meet FDA requirements for each medical center proposing to conduct the clinical trial must review
and approve the plan for any clinical trial before it commences at that center and it must monitor the safety of
the study and study subjects until completed. Special clinical trial ethical considerations also must be taken into
account if a study involves children. The FDA, the IRB or the sponsor may suspend a clinical trial at any time
on various grounds, including a finding that the subjects or patients are being exposed to an unacceptable health
risk. Clinical testing also must satisfy extensive GCP requirements and regulations for informed consent and
must be conducted with product meeting cGMPs.

Clinical Trials

For purposes of BLA submission and approval, clinical trials are typically conducted in the following
three sequential phases, which may overlap (although additional or different trials may be required by the FDA
as well):

•

•

•

Phase I clinical trials are initially conducted in a limited population to test the product candidate for
safety, dose tolerance, absorption, metabolism, distribution and excretion in healthy humans or, on
occasion, in patients, such as cancer patients.

Phase II clinical trials are generally conducted in a larger but limited patient population to identify
possible adverse effects and safety risks, to determine the efficacy of the product candidate for specific
targeted indications and to determine tolerance and optimal dosage. Multiple Phase II clinical trials may
be conducted by the sponsor to obtain information prior to beginning larger and more expensive Phase
III clinical trials.

Phase III trials are conducted to establish the overall risk/benefit profile of the product. Certain Phase
III clinical trials are referred to as pivotal trials. Phase III clinical trials aim to provide substantial
evidence of reproducibility of clinical efficacy and safety results for approval and to further test for
safety in an expanded and diverse patient population at multiple, geographically dispersed clinical trial
sites.

In addition, under the Pediatric Research Equity Act of 2003, a BLA or supplement for a new active
ingredient, new indication, new dosage form, new dosing regimen, or new route of administration must contain
data that is adequate to assess the safety and effectiveness of the drug for the claimed indications in all relevant
pediatric subpopulations, and to support dosing and administration for each pediatric subpopulation for which the
product is safe and effective, unless the applicant has obtained a waiver or deferral. In 2012, the Food and Drug
Administration Safety and Innovation Act amended the FDCA to require that a sponsor who is planning to
submit such an application submit an initial Pediatric Study Plan (‘‘PSP’’) within 60 days of an end-of-Phase II
meeting or as may be agreed between the sponsor and the FDA. The FDA may, on its own initiative or at the
request of the applicant, grant deferrals for submission of data or full or partial waivers. The FDA and the
sponsor must reach agreement on the PSP. More recently, Congress also passed legislation that will require that
sponsors submit to FDA a diversity action plan for Phase III or other pivotal studies, unless such requirement is
waived by FDA.

In some cases, the FDA may condition continued approval of a BLA on the sponsor’s agreement to conduct

additional clinical trials, or other commitments. Such post-approval studies are typically referred to as Phase IV
studies, which are used to gain additional experience from the treatment of patients in the intended therapeutic
indication, particularly for long-term safety follow-up.

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During all phases of clinical development, regulatory agencies require extensive monitoring and auditing of
all clinical activities, clinical data and clinical trial investigators. Annual progress reports detailing the results of
the clinical trials must be submitted to the FDA. Written IND safety reports must be promptly submitted to the
FDA and the investigators for: serious and unexpected adverse events; any findings from other studies, tests in
laboratory animals or in vitro testing and other sources that suggest a significant risk for human subjects; or any
clinically important increase in the rate of a serious suspected adverse reaction over that listed in the protocol or
investigator brochure. The sponsor must submit an IND safety report within 15 calendar days after the sponsor
determines that the information qualifies for reporting. The sponsor also must notify the FDA of any unexpected
fatal or life-threatening suspected adverse reaction within seven calendar days after the sponsor’s initial receipt of
the information. Phase I, Phase II and Phase III clinical trials might not be completed successfully within any
specified period, if at all. The FDA or the sponsor may suspend a clinical trial at any time on various grounds,
including a finding that the research subjects or patients are being exposed to an unacceptable health risk.
Similarly, an IRB can suspend or terminate approval of a clinical trial at its institution if the clinical trial is not
being conducted in accordance with the IRB’s requirements or if the biological product has been associated with
unexpected serious harm to patients.

In limited circumstances, the FDA also permits the administration of investigational biological products to
patients under its expanded access regulatory authorities. Under the FDA’s expanded access authority, provided
certain qualifying criteria are met, patients who are not able to participate in a clinical trial may be eligible for
accessing investigational products, including through individual compassionate or emergency use in concert with
their requesting physician.

Concurrent with clinical trials, companies usually complete additional preclinical studies, animal studies,
develop additional information about the physical characteristics of the biological product candidate and finalize
a process for manufacturing the product in commercial quantities in accordance with cGMP requirements. To
help reduce the risk of the introduction of adventitious agents with use of biological products, the PHS Act
emphasizes the importance of manufacturing controls for products whose attributes cannot be precisely defined.
The manufacturing process must be capable of consistently producing quality batches of the product candidate
and, among other things, the sponsor must develop methods for testing the identity, strength, quality, potency and
purity of the final biological product. Additionally, appropriate packaging must be selected and tested, and
stability studies must be conducted to demonstrate that the biological product candidate does not undergo
unacceptable deterioration over its shelf life.

Biologics License Applications

The results of product candidate development, preclinical and nonclinical testing and clinical trials, together
with, among other things, detailed information on the manufacture and composition of the product and proposed
labeling, and the payment of a user fee, are submitted to the FDA as part of a BLA. Under the Prescription Drug
User Fee Act (‘‘PDUFA’’), the fees payable to the FDA for reviewing an original BLA, as well as annual
program fees for approved products can be substantial, subject to certain limited deferrals, waivers and
reductions that may be available.

Following submission, the FDA has 60 days to review all BLAs to determine if they are substantially
complete before it accepts them for filing. The FDA may refuse to file a BLA that it deems incomplete or not
reviewable at the time of submission, in which case the BLA will have to be updated and resubmitted. The FDA
may also request additional information to be submitted in a very short time frame before accepting a BLA for
filing.

If the FDA accepts the application for filing, the FDA reviews the BLA to determine, among other things,

whether the proposed product is safe, pure, and potent for its intended use, and whether the product is being
manufactured in compliance with cGMP. During its review of a BLA, the FDA may refer the application for
novel product candidates or products that present difficult questions to an advisory committee of experts for their
review, evaluation and recommendation as to whether the application should be approved, which information is
taken into consideration along with the FDA’s own review findings. The FDA’s PDUFA review goal is to review
90% of priority BLAs within six months of filing and 90% of standard applications within 10 months of filing,
but the FDA can and frequently does extend this review timeline to consider certain later-submitted information
or information intended to clarify or supplement an initial submission. The FDA may not complete its review or
approve a BLA within these established goal review times.

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Before approving a marketing application, the FDA typically will inspect the facility or facilities where the
product is manufactured, referred to as a Pre-Approval Inspection, as well as one or more clinical trial sites. The
FDA will not approve a product candidate unless cGMP compliance is satisfactory.

After the FDA conducts its in-depth review of the application and after the inspection of the manufacturing

facilities and clinical trial sites, the FDA issues either an approval letter or a Complete Response Letter (‘‘CRL’’).
A CRL generally outlines the deficiencies in the submission and may also require additional clinical or other
data, including one or more additional pivotal Phase III clinical trials. Even if such requested data are submitted,
the FDA may ultimately decide that the BLA does not satisfy the criteria for approval and issue a denial of the
BLA. Data from clinical trials are not always conclusive and the FDA may interpret data differently than we do.
If the FDA’s evaluations of the BLA and the clinical and manufacturing procedures and facilities are favorable,
the FDA may issue an approval letter. If the evaluations are not favorable the FDA will issue a CRL, which may
contain the conditions that must be met in order to secure final approval of the BLA. If a CRL is issued, a
company has up to twelve months to resubmit or withdraw the BLA, unless the FDA allows for an extension as
requested by a sponsor. If a CRL is issued, resubmissions for original applications and supplements of different
types are subject to varying agency review procedures and review timing goals. For example, upon the
resubmission of an original BLA application or efficacy supplement, CBER will classify the resubmission as
either Class 1 (triggering a two-month review goal for the FDA) or Class 2 (triggering a six-month review goal
for the FDA) depending on the circumstances. CBER also includes specific goals for review of manufacturing
and labeling supplements, though in practice, FDA reviews may take longer than the stated goals.

If and when the items identified in a CRL have been resolved to the FDA’s satisfaction, the FDA will issue

an approval letter, authorizing commercial marketing of the product for certain indications. The FDA may
withdraw product approval if ongoing regulatory requirements are not met or if safety problems occur after the
product reaches the market. In addition, the FDA may require testing, including Phase IV post-approval clinical
trials, and surveillance programs to monitor the effect of approved products that have been commercialized, and
the FDA has the power to prevent or limit further marketing of a product based on the results of these
post-marketing programs.

Even if the FDA approves a product, it may limit the approved indications or populations for use of the
product, require that contraindications, warnings, or precautions be included in the product labeling, including a
boxed warning, require testing and surveillance programs to monitor the product after commercialization, or
impose other conditions, including distribution restrictions or other risk management mechanisms under a Risk
Evaluation and Mitigation Strategy (‘‘REMS’’). If the FDA concludes a REMS is needed, the sponsor of the
BLA must submit a proposed REMS; the FDA will not approve the BLA without a REMS, if required. A REMS
could include medication guides, physician communication plans or elements to assure safe use, such as
restricted distribution methods, patient registries and other risk minimization tools. Any of these limitations on
approval or marketing can materially affect the potential market and profitability of the product. The FDA may
also not approve label statements that are necessary for successful commercialization and marketing. Products
may be marketed only for the FDA-approved indications and in accordance with the FDA-approved label. The
FDA does not allow drugs to be promoted for ‘‘off-label’’ uses – that is, uses that are not described in the
product’s approved labeling and that differ from those that were approved by the FDA. Furthermore, the FDA
generally limits approved uses to those studied in clinical trials. If there are any modifications to the product,
including changes in indications, other labeling changes, or manufacturing processes or facilities, we may be
required to submit and obtain FDA approval of a new BLA or BLA supplement, which may require us to
develop additional data or conduct additional preclinical studies and clinical trials, and/or require additional
manufacturing data.

Satisfaction of the FDA regulations and approval requirements or similar requirements of foreign regulatory

agencies typically takes many years, and the actual time required may vary substantially based upon the type,
complexity and novelty of the product or disease. Typically, if a product candidate is intended to treat a chronic
disease, as was the case with ASCENIV, safety and efficacy data must be gathered over an extended period of
time. Government regulation may delay or prevent marketing of product candidates for a considerable period of
time and impose costly procedures upon our activities. The FDA or any other regulatory agency may not grant
approvals for any changes on a timely basis, or at all. Even if a product candidate receives regulatory approval,
the approval may be significantly limited to specific disease states, patient populations and dosages. Further, even
after regulatory approval is obtained, later discovery of previously unknown problems with a product may result

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in restrictions on the product or even complete withdrawal of the product from the market. Delays in obtaining,
or failures to obtain, regulatory approvals for any of our product candidates would harm our business. In
addition, we cannot predict what adverse governmental regulations may arise from future U.S. or foreign
governmental action.

Post-Approval Regulatory Requirements

After regulatory approval is obtained, biological drug products are subject to extensive and continuing
regulation by the FDA, and the FDA may impose a number of post-approval requirements as a condition of
approval of an application. For example, as a condition of approval of a BLA, the FDA may require
post-marketing testing and surveillance to monitor the product’s safety or efficacy. In addition, holders of an
approved BLA are required to keep extensive records (including certain electronic records and signature
requirements), submit annual reports, report certain adverse reactions and production problems to the FDA,
provide updated safety and efficacy information, and comply with requirements concerning advertising and
promotional labeling for their products. After approval, most changes to the approved product, such as adding
new indications or other labeling claims, are subject to prior FDA review and approval. There also are annual
user fee requirements for any marketed products, as well as new application fees for supplemental applications
with clinical data. BLA holders must comply with other regulatory requirements, including submitting annual
reports, reporting information about adverse drug experiences, and maintaining certain records. The FDA may
withdraw a product approval if compliance with regulatory requirements is not maintained or if problems occur
after the product reaches the market. Later discovery of previously unknown problems with a product, including
adverse events of unanticipated severity or frequency, problems with manufacturing processes or failure to
comply with regulatory requirements, may result in restrictions on the product or even complete withdrawal of
the product from the market. Failure to comply with the statutory and regulatory requirements can subject a
manufacturer to possible legal or regulatory action, such as refusal to approve pending applications, license
suspension or revocation, withdrawal of approval of a BLA, imposition of a clinical hold or termination of
clinical trials, warning letters, untitled letters, suspension of manufacturing, sales or use, product seizures or
recalls, import restrictions, injunctive action or possible fines and other penalties. We cannot be certain that we or
our present or future third-party manufacturers or suppliers will be able to comply with the cGMP regulations
and other ongoing FDA regulatory requirements.

Manufacturers must continue to comply with cGMP requirements, which are extensive and require
considerable time, resources and ongoing investment to ensure compliance. In addition, changes to the
manufacturing process generally require prior FDA approval before being implemented. Other types of changes
to the approved product, such as adding new indications and additional labeling claims, are also subject to
further FDA review and approval. Certain manufacturing deviations and unexpected manufacturing events must
be investigated, corrected, and reported to FDA.

Manufacturers and certain other entities involved in the manufacturing and distribution of approved products

are required to register their establishments with the FDA and certain state agencies, list the manufactured
products to the FDA, and are subject to periodic unannounced inspections or remote regulatory assessments by
the FDA and certain state agencies for compliance with cGMP and other laws. The cGMP requirements apply to
all stages of the manufacturing process, including the production, processing, sterilization, packaging, labeling,
storage and shipment of the product. Manufacturers must establish validated systems to ensure that products meet
specifications and regulatory standards and test each product batch or lot prior to its release. The information that
must be submitted to FDA regarding manufactured products was expanded through the Coronavirus Aid, Relief,
and Economic Security (‘‘CARES’’) Act to include the volume of drugs produced during the prior year. For
biologics products subject to lot release, for each product lot the applicant must submit materials related to that
lot to the FDA prior to that lot being released for distribution.

Changes to the manufacturing process are strictly regulated and often require prior FDA approval before
being implemented. FDA regulations also require investigation and correction of any deviations from cGMP and
impose reporting and documentation requirements upon the sponsor and any third-party manufacturers that the
sponsor may decide to use. Accordingly, manufacturers must continue to expend time, money, and effort towards
production and quality control to maintain cGMP compliance.

The commercial distribution of prescription drugs (including biological drug products) is subject to the
DSCSA, which regulates the distribution of the products at the federal level and sets certain standards for federal

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or state registration and compliance of entities in the supply chain (manufacturers and repackagers, wholesale
distributors, third-party logistics providers, and dispensers). The DSCSA preempts previously enacted state
pedigree laws and the pedigree requirements of the Prescription Drug Marketing Act (‘‘PDMA’’). Trading
partners within the drug supply chain must now ensure certain product tracing requirements are met and are
required to exchange certain transaction-related information in an electronic, and, as of November 2023, an
interoperable form. Further, the DSCSA limits the distribution of prescription pharmaceutical products and
imposes requirements to ensure overall accountability and security in the drug supply chain, including
requirements related to the detection and investigation of suspect and illegitimate products. The distribution of
product samples continues to be regulated under the PDMA.

FDA post-approval requirements are continually evolving. For example, in March 2020, the U.S. Congress

passed the CARES Act, which includes various provisions regarding FDA drug shortage and manufacturing
volume reporting requirements, as well as provisions regarding supply chain security, such as risk management
plan requirements, and the promotion of supply chain redundancy and domestic manufacturing. As part of the
CARES Act implementation, the FDA issued a guidance on the reporting of the volume of drugs produced,
which reporting will require additional administrative efforts by drug manufacturers. Executive orders have also
been issued to encourage domestic manufacturing.

Advertising and Promotion

The FDA closely regulates the post-approval marketing and promotion of products, including standards and
regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored scientific and educational
activities and promotional activities involving the Internet. A product cannot be promoted before it is approved.
After approval, product promotion can include only those claims related to safety and effectiveness that are
consistent with the labeling approved by the FDA. Healthcare providers are permitted to prescribe drugs for
‘‘off-label’’ uses - that is uses not approved by the FDA and not described in the product’s labeling because the
FDA does not regulate the practice of medicine. However, FDA regulations impose restrictions on manufacturers’
communications regarding off-label uses. Broadly speaking, a manufacturer may not promote a drug for off-label
use, but under certain conditions may engage in non-promotional, balanced, scientific communication regarding
off-label use. Failure to comply with applicable FDA requirements and restrictions in this area may subject a
company to adverse publicity and enforcement action by the FDA, the Department of Justice, or the Office of
Inspector General of the Department of Health and Human Services, as well as state authorities. This could
subject a company to a range of penalties that could have a significant commercial impact, including civil
penalties, criminal fines and agreements that materially restrict the manner in which a company promotes or
distributes a drug.

From time to time, legislation is drafted, introduced and passed in Congress that could significantly change
the statutory provisions governing the approval, manufacturing and marketing of products regulated by the FDA.
In addition to new legislation, FDA and other agency regulations, guidance, and policies are often revised or
reinterpreted in ways that may significantly affect our business. It is impossible to predict whether further
legislative or FDA regulation or other regulatory policy changes will be enacted or implemented and what the
impact of such changes, if any, may be. It is possible that certain prior regulatory requirements may be
postponed or frozen.

Regulation of ADMA BioCenters

With some limited exceptions, all blood and blood product collection and manufacturing centers which
engage in interstate commerce must be licensed by and registered with the FDA. In order to achieve licensure,
the organization must submit a BLA and obtain BLA approval prior to distribution of any product. The approval
of the BLA requires passage of an FDA inspection. ADMA BioCenters has completed these requirements and
holds an FDA license for eight plasma collection facilities for source plasma. In order to maintain an FDA
license, under FDA guidance each such facility operated by ADMA BioCenters will be inspected within the
first year of operations and then at least every two years and must meet certain regulatory requirements. ADMA
BioCenters is also required to submit annual reports to the FDA, as well as reports of fatalities related to blood
and blood component collection or transfusion. Establishments must also comply with FDA’s regulatory standards
which include a variety of requirements related to, among other areas, cGMPs, deviation investigation and
reporting, donor screening and product testing, as well as product labeling. Facilities must further ensure that all
tests and equipment that are used are appropriate for their intended use, which may include FDA clearance
and/or approval of the applicable test or equipment.

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Blood plasma collection and manufacturing centers are also subject to the Clinical Laboratory Improvement

Amendments, state licensure and compliance with industry standards such as the International Quality Plasma
Program. Compliance with state and industry standards is verified by means of routine inspection. State
requirements may differ significantly from federal requirements, which may complicate compliance efforts. We
believe that our existing ADMA BioCenters facilities are currently in compliance with state and industry
standards. Delays in obtaining, or failures to maintain, regulatory approvals for any facilities operated by ADMA
BioCenters would harm our business. In addition, we cannot predict what adverse federal and state regulations
and industry standards may arise in the future.

Foreign Regulation

In addition to regulations in the U.S., if we choose to pursue clinical development and commercialization in

the European Union, we will be subject to a variety of foreign regulations governing clinical trials and
commercial sales and distribution of any future product. Whether or not we obtain FDA approval for a product,
we must obtain approval by the comparable regulatory authorities of foreign countries before we can commence
clinical trials or marketing of the product in those countries. The approval process varies from country to
country, and the time may be longer or shorter than that required for FDA approval. The requirements governing
the conduct of clinical trials, product licensing, pricing and reimbursement vary greatly from country to country.

Under European Union regulatory systems, marketing authorizations may be submitted either under a
centralized, decentralized or national or mutual recognition procedure. The centralized procedure provides for the
grant of a single marketing authorization that is valid for all European Union member states. The decentralized
procedure provides for approval by one or more ‘‘concerned’’ member states based on an assessment of an
application performed by one member state, known as the ‘‘reference’’ member state. Under the decentralized
approval procedure, an applicant submits an application, or dossier, and related materials to the reference member
state and concerned member states. The reference member state prepares a draft assessment report and drafts of
the related materials within 120 days after receipt of a valid application. Within 90 days of receiving the
reference member state’s assessment report, each concerned member state must decide whether to approve the
assessment report and related materials. If a member state does not recognize the marketing authorization, the
disputed points are eventually referred to the European Commission, whose decision is binding on all member
states. In addition to the centralized procedure and the decentralized procedure, it may also be possible to obtain
a marketing authorization for one single member state through a national procedure. The mutual recognition
procedure provides for mutual recognition of national approval decisions. Under this procedure, the holder of a
national marketing authorization may submit an application to the remaining member states. Within 90 days of
receiving the applications and assessment report, each member state must decide whether to recognize approval,
refuse it or request additional information.

Pharmaceutical Pricing and Reimbursement of Our Products

All sales in the U.S. of BIVIGAM, ASCENIV and Nabi-HB depend in part upon the availability of
reimbursement from third-party payers. Third-party payers include government health programs, managed care
providers, private health insurers and other organizations. BIVIGAM and Nabi-HB are reimbursed or purchased
under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health
Service program, and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a
joint state and federal government health plan that provides covered outpatient prescription drugs for low-income
individuals. Under Medicaid, drug manufacturers pay rebates to the states based on utilization data provided by
the states. CMS has issued a permanent, product-specific-J-code for ASCENIV. Under the HCPCS, the
J-code (J1554) became effective April 1, 2021.

Significant uncertainties exist as to the coverage and reimbursement status of our current products as well as

any products for which we may obtain regulatory approval. In the U.S., sales of BIVIGAM, ASCENIV and
Nabi-HB, as well as any products for which we may receive regulatory approval for commercial sale will depend
in part on the availability of coverage and reimbursement from third-party payers. Third-party payers include
government authorities, managed care providers, private health insurers and other organizations. No uniform
policy of coverage and reimbursement for drug products exists. Accordingly, decisions regarding the extent of
coverage and amount of reimbursement to be provided for any of our products will be made on a payor-by-payor
basis. As a result, the coverage determination process is often a time-consuming and costly process that will
require us to provide scientific and clinical support for the use of our products to each payor separately, with no

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assurance that coverage and adequate reimbursement will be obtained. The process for determining whether a
payer will provide coverage for a drug product may be separate from the process for setting the reimbursement
rate that the payer will pay for the drug product. Third-party payers may limit coverage to specific drug products
on an approved list, or formulary, which might not include all of the FDA-approved drugs for a particular
indication. Moreover, a payer’s decision to provide coverage for a drug product does not imply that an adequate
reimbursement rate will be approved. Adequate third-party reimbursement may not be available to enable us to
maintain price levels sufficient to realize an appropriate return on our investment in product development.

Third-party payers are increasingly challenging the price and examining the medical necessity and
cost-effectiveness of medical products and services, in addition to their safety and efficacy. In order to obtain
coverage and reimbursement for our current products and any product that might be approved for sale, we may
need to conduct expensive pharmacoeconomic studies in order to demonstrate the medical necessity and
cost-effectiveness of any products, in addition to the costs required to obtain regulatory approvals. Our current
products may not be considered medically necessary or cost-effective. If third-party payers do not consider a
product to be cost-effective compared to other available therapies, they may not cover the product after approval
as a benefit under their plans or, if they do, the level of payment may not be sufficient to allow a company to
sell its products at a profit.

The U.S. government and state legislatures have shown significant interest in implementing cost
containment programs to limit the growth of government-paid healthcare costs, including price controls,
limitations on coverage, increased rebates, restrictions on reimbursement and requirements for substitution of
generic products for branded prescription drugs. For example, the Patient Protection and Affordable Care Act
(‘‘ACA’’) and the companion Healthcare and Education Reconciliation Act (which together are referred to as the
‘‘Healthcare Reform Law’’) contains provisions that may reduce the profitability of drug products, including, for
example, increased rebates for drugs reimbursed by Medicaid programs, extension of Medicaid rebates to
Medicaid managed care plans, mandatory discounts for certain Medicare Part D beneficiaries and annual fees
based on pharmaceutical companies’ share of sales to federal healthcare programs. We have addressed additional
reforms related to government pricing programs that could be relevant to our products below. These and any
additional healthcare reform measures could further constrain our business or limit the amounts that federal and
state governments will pay for healthcare products and services, which could result in additional pricing
pressures. Adoption of government controls and measures, and tightening of restrictive policies in jurisdictions
with existing controls and measures, could limit payments for pharmaceuticals.

The marketability of our current products and any products for which we receive regulatory approval for

commercial sale may suffer if the government and third-party payers fail to provide adequate coverage and
reimbursement. In addition, the emphasis on cost containment measures in the U.S. has increased and we expect
will continue to increase the pressure on pharmaceutical pricing. Coverage policies and third-party reimbursement
rates may change at any time. Even if favorable coverage and reimbursement status is attained for one or more
products for which we receive regulatory approval, less favorable coverage policies and reimbursement rates may
be implemented in the future.

Government Price Reporting

Manufacturers participate in, and have certain price reporting obligations under, the Medicaid Drug Rebate

Program, state Medicaid supplemental rebate program(s), and other governmental pricing programs. For calendar
quarters beginning January 1, 2022, manufacturers will be required to report the average sales price for certain
drugs under the Medicare program regardless of whether the manufacturer participates in the Medicaid Drug
Rebate Program. Previously, this reporting obligation extended only to manufacturers participating in the
Medicaid Drug Rebate Program. Under this Program, manufacturers are required to pay a rebate to each state
Medicaid program for covered outpatient drugs that are dispensed to Medicaid beneficiaries and paid for by a
state Medicaid program as a condition of having federal funds being made available for their drugs under
Medicaid and Part B of the Medicare program.

Medicaid is a joint federal and state program that is administered by the states for low-income and disabled
beneficiaries. Medicaid rebates are based on pricing data reported by manufacturers on a monthly and quarterly
basis to the CMS, the federal agency that administers the Medicaid and Medicare programs. These data include
the average manufacturer price and, in the case of innovator products, the best price for each drug, which, in
general, represents the lowest price available from the manufacturer to any entity in the U.S. in any pricing

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structure, calculated to include all sales and associated rebates, discounts, and other price concessions. The
amount of the rebate is adjusted upward if the average manufacturer price increases more than inflation
(measured by reference to the Consumer Price Index - Urban). Currently, the rebate is capped at 100 percent of
the average manufacturer price, but, effective January 1, 2024, this cap on the rebate will be removed, and our
rebate liability could increase accordingly.

If a manufacturer becomes aware that its reporting for a prior quarter was incorrect or has changed as a
result of recalculating the pricing data, the manufacturer is obligated to resubmit the corrected data for up to
three years after those data originally were due, which revisions could affect rebate liability for prior quarters.
The federal Patient Protection and ACA made significant changes to the Medicaid Drug Rebate Program, and
CMS issued a final regulation, which became effective on April 1, 2016, to implement the changes to the
Medicaid Drug Rebate Program under the ACA. On December 21, 2020, CMS issued a final rule that modified
the Medicaid Drug Rebate Program regulations to permit reporting multiple best price figures with regard to
value-based purchasing arrangements (beginning in 2022); provided definitions for ‘‘line extension,’’ ‘‘new
formulation,’’ and related terms with the practical effect of expanding the scope of drugs considered to be line
extensions (beginning in 2022); and revised best price and average manufacturer price exclusions of
manufacturer-sponsored patient benefit programs, particularly regarding potential inapplicability of such
exclusions in the context of pharmacy benefit manager ‘‘accumulator’’ programs (beginning in 2023).

Medicare is a federal program that is administered by the federal government that covers individuals age 65

and over or that are disabled as well as those with certain health conditions. Medicare Part B generally covers
drugs that must be administered by physicians or other health care practitioners, among others. Medicare Part B
generally pays for such drugs under a payment methodology based on the average sales price of the drugs.
Manufacturers are required to report average sales price information to CMS on a quarterly basis. The
manufacturer-submitted information is used by CMS to calculate Medicare payment rates.

Congress could enact additional changes that affect our overall rebate liability and the information
manufacturers report to the government as part of price reporting calculations. For example, Congress is
considering a Medicare Part B inflation rebate, under which manufacturers would owe additional rebates if the
average sales price of a drug were to increase faster than the pace of inflation.

Civil monetary penalties can be applied if a manufacturer is (1) found to have knowingly submitted any
false pricing or other information to the government, (2) found to have made a misrepresentation in the reporting
of our average sales price, or (3) fails to submit the required data on a timely basis. Such conduct also could be
grounds for CMS to terminate a Medicaid Drug Rebate Program agreement, in which case federal payments may
not be available under Medicaid or Medicare Part B for the manufacturer’s covered outpatient drugs.

Federal law requires that any company that participates in the Medicaid Drug Rebate Program also

participate in the Public Health Service’s 340B drug pricing program (the ‘‘340B program’’) in order for federal
funds to be available for the manufacturer’s drugs under Medicaid and Medicare Part B. The 340B program,
which is administered by the Health Resources and Services Administration (‘‘HRSA’’), requires participating
manufacturers to agree to charge statutorily defined covered entities no more than the 340B ‘‘ceiling price’’ for
the manufacturer’s covered outpatient drugs. Covered entities include hospitals that serve a disproportionate share
of financially needy patients, community health clinics, and other entities that receive certain types of grants
under the Public Health Service Act. The ACA expanded the list of covered entities to include certain
free-standing cancer hospitals, critical access hospitals, rural referral centers, and sole community hospitals, but
exempts ‘‘orphan drugs’’ from the ceiling price requirements for these covered entities. The 340B ceiling price is
calculated using a statutory formula, which is based on the average manufacturer price and Medicaid rebate
amount for the covered outpatient drug as calculated under the Medicaid Drug Rebate Program. In general,
products subject to Medicaid price reporting and rebate liability are also subject to the 340B ceiling price
calculation and discount requirement.

HRSA issued a final regulation regarding the calculation of the 340B ceiling price and the imposition of
civil monetary penalties on manufacturers that knowingly and intentionally overcharge covered entities, which
became effective on January 1, 2019. It is currently unclear how HRSA will apply its enforcement authority
under this regulation. Any charge by HRSA that a manufacturer has violated the requirements of the regulation
could result in civil monetary penalties. Moreover, under a final regulation effective January 13, 2021, HRSA
established a new administrative dispute resolution (‘‘ADR’’) process for claims by covered entities that a

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manufacturer has engaged in overcharging, and by manufacturers that a covered entity violated the prohibitions
against diversion or duplicate discounts. Such claims are to be resolved through an ADR panel of government
officials rendering a decision that can be appealed to a federal court. An ADR proceeding could subject a
manufacturer to onerous procedural requirements and could result in additional liability. HRSA also implemented
a price reporting system under which manufacturers are required to report 340B ceiling prices on a quarterly
basis to HRSA, which then publishes those prices to 340B covered entities. In addition, legislation could be
passed, that would further expand the 340B program to additional covered entities, or participating manufacturers
could be required to agree to provide 340B discounted pricing on drugs used in an inpatient setting.

In order to be eligible to have their products paid for with federal funds under the Medicaid and Medicare

Part B programs and purchased by certain federal agencies (U.S. Department of Veterans Affairs (‘‘VA’’),
Department of Defense (‘‘DoD’’), Coast Guard, and Public Health Service (‘‘PHS’’)) and grantees, manufacturers
must participate in the VA Federal Supply Schedule (‘‘FSS’’) pricing program. Prices for innovator drugs
purchased by the VA, DoD, Coast Guard, and PHS are subject to a cap (known as the ‘‘Federal Ceiling Price’’)
equal to 76% of the annual non-federal average manufacturer price (‘‘non-FAMP’’) minus, if applicable, an
additional discount. The additional discount applies if non-FAMP increases more than inflation (measured by
reference to the Consumer Price Index – Urban (‘‘CPIU’’)). In addition, in the second and subsequent year, the
price also is capped at prior year FSS contract plus CPIU. Manufacturers must also participate in the Tricare
Retail Pharmacy Program, under which they pay quarterly rebates to DoD for prescriptions of innovator drugs
dispensed to Tricare beneficiaries through Tricare Retail network pharmacies. The governing statute provides for
civil monetary penalties for failure to provide information timely or for knowing submission of false information
to the government.

Medicare Part D generally provides coverage to enrolled Medicare patients for self-administered drugs

(i.e., drugs that are not administered by a physician). Medicare Part D is administered by private prescription
drug plans approved by the U.S. government and subject to detailed program rules and government oversight.
Each drug plan establishes its own Medicare Part D formulary for prescription drug coverage and pricing, which
the drug plan may modify from time to time. The prescription drug plans negotiate pricing with manufacturers
and pharmacies and may condition formulary placement on the availability of manufacturer rebates. In addition,
manufacturers are required to provide to CMS a 70% discount on brand name prescription drugs utilized by
Medicare Part D beneficiaries when those beneficiaries are in the coverage gap phase of the Part D benefit
design. Civil monetary penalties can be applied if a manufacturer fails to provide these discounts in the amount
of 125 percent of the discount that was due. Congress could enact legislation that sunsets this discount program
and replaces it with a new manufacturer discount program. Congress further could enact a Medicare Part D
inflation rebate, under which manufacturers would owe additional rebates if the average manufacturer price of a
drug were to increase faster than the pace of inflation.

Congress also could enact a drug price negotiation program under which the prices for certain high
Medicare spend single source drugs would be capped by reference to the non-FAMP. This or any other
legislative change could impact the market conditions for our products. We further expect continued scrutiny on
government price reporting from Congress, federal agencies, and other bodies.

Group health plans, health insurance issuers, health maintenance organizations, other healthcare payors, and
pharmacy benefit managers in the United States are adopting more aggressive utilization management techniques
and are increasingly requiring significant discounts and rebates from manufacturers as a condition to including
products on formulary with favorable coverage and cost-sharing. These payors may not cover or adequately
reimburse for use of our products or may do so at levels that disadvantage them relative to competitive products.
Outside the United States, within the EU, our products are paid for by a variety of payors, with governments
being the primary source of payment. Government health authorities in the EU determine or influence
reimbursement of products and set prices or otherwise regulate pricing. Negotiating prices with governmental
authorities can delay commercialization of our products. Governments may use a variety of cost-containment
measures to control the cost of products, including price cuts, mandatory rebates, value-based pricing and
reference pricing (i.e., referencing prices in other countries or prices of competitive products and using those
reference prices to set a price). Budgetary pressures in many EU countries are continuing to cause governments
to consider or implement various cost-containment measures, such as price freezes, increased price cuts and
rebates and expanded generic substitution and patient cost-sharing. Recently, several states also have enacted or
are considering legislation intended to make drug prices more transparent and deter significant price increases

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that impose reporting requirements on biopharmaceutical companies. These laws may affect our future sales,
marketing, and other promotional activities by imposing administrative and compliance burdens. Such laws also
typically impose significant civil monetary penalties for each instance of reporting noncompliance that can
quickly aggregate into the millions of dollars.

U.S. Healthcare Reform

The containment of healthcare costs has become a priority of federal and state governments, and the prices
of drugs have been a focus in this effort. Changes in government legislation or regulation and changes in private
third-party payors’ policies toward reimbursement for our products, if successfully developed and approved, may
reduce reimbursement of our products’ costs to physicians, pharmacies, patients and distributors. The U.S.
government, state legislatures and foreign governments have shown significant interest in implementing
cost-containment programs, including price controls, payment of rebates, restrictions on reimbursement and
requirements for substitution of generic products. Adoption of price controls and cost-containment measures, and
adoption of more restrictive policies in jurisdictions with existing controls and measures, could limit our net
revenue and results for products, if any, we commercialize in the future.

The pricing and reimbursement environment for our products may change in the future and become more

challenging due to state and federal healthcare reform measures. The American Recovery and Reinvestment Act
of 2009, or ARRA, for example, allocated new federal funding to compare the effectiveness of different
treatments for the same condition. The plan for the research was published in 2012 by the Department of Health
and Human Services, the Agency for Healthcare Research and Quality and the National Institutes for Health, and
periodic reports on the status of the research and related expenditures are made to Congress. Although ARRA
does not mandate the use of the results of comparative effectiveness studies for reimbursement purposes, it is not
clear what effect, if any, the research will have on the sales of any products for which we receive marketing
approval or on the reimbursement policies of public and private payors. It is possible that comparative
effectiveness research demonstrating benefits in a competitor’s product could adversely affect the sales of any
product for which we receive marketing approval. For example, if third-party payors find our products not to be
cost-effective compared to other available therapies, they may not cover our products after approval as a benefit
under their plans or, if they do, the level of payment may not be sufficient to allow us to sell our products on a
profitable basis.

The ACA is a sweeping measure intended to expand healthcare coverage within the U.S., primarily through
the imposition of health insurance mandates on employers and individuals, the provision of subsidies to eligible
individuals enrolled in plans offered on the health insurance exchanges, and the expansion of the Medicaid
program. This law has substantially changed the way healthcare is financed by both governmental and private
insurers and has significantly impacted the pharmaceutical industry. Changes that may affect our business include
those governing enrollment in federal healthcare programs, reimbursement changes, benefits for patients within a
coverage gap in the Medicare Part D prescription drug program (commonly known as the ‘‘donut hole’’), rules
regarding prescription drug benefits under the health insurance exchanges, changes to the Medicaid Drug Rebate
Program, expansion of the Public Health Service Act’s 340B drug pricing program, or 340B program, and fraud
and abuse enforcement. These changes have impacted previously existing government healthcare programs and
have resulted in the development of new programs, including Medicare payment for performance initiatives and
improvements to the Medicare physician quality reporting system and feedback program.

One of the goals of ACA was to expand coverage for the uninsured while at the same time containing

overall healthcare costs. With regard to pharmaceutical products, among other things, the ACA increased
minimum rebates a manufacturer must pay under the Medicaid Drug Rebate Program and extended
manufacturers’ Medicaid rebate liability to drugs dispensed to individuals who are enrolled in Medicaid managed
care organizations. The ACA also requires manufacturers of drugs, devices, biologics, and medical supplies for
which payment is available under Medicare, Medicaid or the Children’s Health Insurance Program (with certain
exceptions) to report annually to CMS information related to certain direct or indirect payments and other
transfers of value to U.S.-licensed physicians, physician assistants, nurse practitioners, clinical nurse specialists,
certified nurse anesthetists and certified nurse-midwives and to U.S. teaching hospitals, as well as ownership and
investment interests held in the company by physicians and their immediate family members. Failure to submit

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required information may result in civil monetary penalties of $1,000 to $10,000 for each payment or ownership
interest that is not timely, accurately, or completely reported (annual maximum of $150,000), and $10,000 to
$100,000 for each knowing failure to report (annual maximum of $1 million) (for an aggregate annual maximum
of $1,150,000).

Some states have elected not to expand their Medicaid programs by raising the income limit to 133% of the
federal poverty level, as is permitted under the ACA. For each state that does not choose to expand its Medicaid
program, there may be fewer insured patients overall, which could impact sales of our products that are approved
and that we successfully commercialize, and our business and financial condition. Where Medicaid patients
receive insurance coverage under any of the new options made available through the ACA, the possibility exists
that manufacturers may be required to pay Medicaid rebates on drugs used under these circumstances, a decision
that could impact manufacturer revenues.

Certain provisions of the ACA have been subject to judicial challenges as well as efforts to modify them or

to alter their interpretation or implementation. For example, Congress eliminated, starting January 1, 2019, the
tax penalty for not complying with the ACA’s individual mandate to carry health insurance. Further, the
Bipartisan Budget Act of 2018, among other things, amended the Medicare statute to reduce the coverage gap in
most Medicare drugs plans, commonly known as the ‘‘donut hole,’’ by raising the required manufacturer
point-of-sale discount from 50% to 70% off the negotiated price effective as of January 1, 2019. Additional
legislative changes, regulatory changes, and judicial challenges related to the ACA remain possible, but the
nature and extent of such potential changes or challenges are uncertain at this time. It is unclear how the ACA
and its implementation, as well as efforts to modify or invalidate the ACA, or portions thereof, or its
implementation, will affect our business, financial condition and results of operations. It is possible that the ACA,
as currently enacted or as it may be amended in the future, and other healthcare reform measures that may be
adopted in the future could have a material adverse effect on our industry generally and on our ability to
maintain or increase sales of our products or product candidates for which we receive regulatory approval or to
successfully commercialize our products and product candidates.

Other legislative changes related to reimbursement have been adopted in the U.S. since the ACA was
enacted. For example, on August 2, 2011, the Budget Control Act of 2011, among other things, created the Joint
Select Committee on Deficit Reduction to recommend to Congress proposals for spending reductions. The Joint
Select Committee did not achieve a targeted deficit reduction, which triggered the legislation’s automatic
reductions. In concert with subsequent legislation, this has resulted in aggregate reductions to Medicare payments
to providers of, on average, 2% per fiscal year through 2031 (with the exception of a temporary suspension from
May 1, 2020 through March 31, 2022, due to the COVID-19 pandemic). The law provides for 1% Medicare
sequestration in the second quarter of 2022 and allows the full 2% sequestration thereafter until 2031. As long as
these cuts remain in effect, they could adversely impact payment for any products we may commercialize in the
future. We expect that additional federal healthcare reform measures will be adopted in the future, any of which
could limit the amounts that federal and state governments will pay for healthcare products and services, and in
turn could significantly reduce the projected value of certain development projects and reduce our profitability.

Additional legislative changes, regulatory changes, or guidance could be adopted, which may impact the

marketing approvals and reimbursement for our product candidates. For example, there has been increasing
legislative, regulatory, and enforcement interest in the United States with respect to drug pricing practices. There
have been several Congressional inquiries and proposed and enacted federal and state legislation and regulatory
initiatives designed to, among other things, bring more transparency to product pricing, evaluate the relationship
between pricing and manufacturer patient assistance and support programs, potentially permit government
negotiation of Medicare pricing with manufacturers relative to certain international prices paid, and reform
government healthcare program reimbursement methodologies for drug products. If healthcare policies or reforms
intended to curb healthcare costs are adopted or if we experience negative publicity with respect to pricing of our
products or the pricing of pharmaceutical drugs generally, the prices that we charge for any approved products
may be limited, our commercial opportunity may be limited and/or our revenues from sales of our products may
be negatively impacted.

It is possible that the ACA, as currently enacted or may be amended in the future, as well as other
healthcare reform measures that may be adopted in the future, may result in additional reductions in Medicare
and other healthcare funding, more rigorous coverage criteria and new payment methodologies and in additional
downward pressure on coverage and payment and the price that we receive for any approved product. Any

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reduction in reimbursement from Medicare or other government programs may result in a similar reduction in
payments from private payors. The implementation of cost containment measures or other healthcare reforms
may prevent us from being able to generate revenue, attain profitability or commercialize our products. We
cannot be sure whether additional legislative changes will be enacted in the United States or outside of the
United States, or whether regulatory changes, guidance or interpretations will be changed, or what the impact of
such changes on the marketing approvals of our product candidates, if any, may be.

Anti-Fraud and Abuse Laws

We are also subject to numerous fraud and abuse laws and regulations globally. In the U.S., there are a
variety of federal and state laws restricting certain marketing practices in the pharmaceutical industry pertaining
to healthcare fraud and abuse, including anti-kickback laws and false claims laws. Our sales, marketing, patient
support and medical activities may be subject to scrutiny under these laws. The U.S. federal healthcare program
Anti-Kickback Statute prohibits, among other things, knowingly and willfully offering, paying, soliciting or
receiving anything of value (‘‘remuneration’’) to induce (or in return for) the referral of business, including the
purchase, recommendation or prescription of a particular drug reimbursable under Medicare, Medicaid or other
federally financed healthcare programs. The statute has been interpreted to apply to arrangements between
pharmaceutical companies on one hand and patients, prescribers, purchasers and formulary managers on the
other. The Beneficiary Inducement Civil Monetary Penalties Law imposes similar restrictions on interactions
between pharmaceutical manufacturers and federal healthcare program beneficiaries. Although there are a number
of statutory exemptions and regulatory safe harbors protecting certain common manufacturer business
arrangements and activities from prosecution and administrative sanction, the exceptions and safe harbors are
drawn narrowly and are subject to regulatory revision or changes in interpretation by the U.S. Department of
Justice (‘‘DOJ’’), and the Office of Inspector General of the U.S. Department of Health and Human Services
(‘‘OIG’’). Recent regulations eliminate the discount safe harbor protection for manufacturer rebates paid directly,
or indirectly through a Pharmacy Benefit Manager (‘‘PBM’’) to Medicare Part D or Medicare Advantage plans,
effective January 1, 2026. Previously proposed legislation, however, would permanently prohibit implementation
of the rule beginning in 2026. Practices or arrangements that involve remuneration may be subject to scrutiny if
they do not qualify for an exception or safe harbor. Failure to meet all the requirements of a particular applicable
statutory exception or regulatory safe harbor does not make the conduct per se illegal under the Anti-Kickback
Statute. Instead, the legality of the arrangement will be evaluated on a case-by-case basis based on a cumulative
review of all its facts and circumstances.

Several courts have interpreted the statute’s intent requirement to mean that if any one purpose of an

arrangement involving remuneration is to induce or reward referrals of federal healthcare program business,
including purchases of products paid by federal healthcare programs, the statute has been violated. Violations of
the federal Anti-Kickback Statute may be established without providing specific intent to violate the statute, and
may be punishable by civil, criminal, and administrative fines and penalties, damages, imprisonment, and/or
exclusion from participation in federal healthcare programs.

The federal civil False Claims Act (‘‘FCA’’) prohibits, among other things, any person from knowingly

presenting, or causing to be presented, a false or fraudulent claim for payment of federal funds, or knowingly
making, or causing to be made, a false statement to get a false claim paid, or knowingly and improperly
avoiding, decreasing or concealing an obligation to pay money to the federal government. A claim includes ‘‘any
request or demand’’ for money or property presented to the U.S. government. The FCA has been used to assert
liability on the basis of improper referrals, improperly reported government pricing metrics such as Best Price or
Average Manufacturer Price, improper use of Medicare provider or supplier numbers when detailing a provider
of services, improper promotion of off-label uses not expressly approved by the FDA in a product’s label, and
allegations as to misrepresentations with respect to products, contractual requirements, and services rendered. In
addition, private payers have been filing follow-on lawsuits alleging fraudulent misrepresentation, although
establishing liability and damages in these cases is more difficult than under the FCA. Intent to deceive is not
required to establish liability under the FCA. Rather, a claim may be false for deliberate ignorance of the truth or
falsity of the information provided or for acts in reckless disregard of the truth or falsity of that information. A
claim resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim. The
False Claims Act also permits a private individual acting as a ‘‘whistleblower’’ to bring actions on behalf of
themselves and the federal government alleging violations of the statute and to share in any monetary recovery.
Violations of the False Claims Act may result in significant financial penalties (including mandatory penalties on

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a per claim or statement basis), treble damages and exclusion from participation in federal health care programs.
For these reasons, since 2004, False Claims Act lawsuits against pharmaceutical companies have increased
significantly in volume and breadth, leading to several substantial civil and criminal settlements, as much as
$3.0 billion, regarding certain sales practices and promoting off label uses.

For these reasons, since 2004, False Claims Act lawsuits against pharmaceutical companies have increased

significantly in volume and breadth, leading to several substantial civil and criminal settlements, as much as
$3.0 billion, regarding certain sales practices and promoting off label uses.

The government may further prosecute conduct constituting a false claim under the criminal False Claims
Act. The criminal False Claims Act prohibits the making or presenting of a claim to the government knowing
such claim to be false, fictitious, or fraudulent and, unlike the FCA, requires proof of intent to submit a false
claim.

Pharmaceutical companies are subject to other federal false claim and statements laws, some of which
extend to non-government health benefit programs. For example, the healthcare fraud provisions under the Health
Insurance Portability and Accountability Act of 1996 and its implementing regulations, or HIPAA, impose
criminal liability for, among other things, knowingly and willfully executing, or attempting to execute, a scheme
to defraud any health care benefit program, including private third party payors, or falsifying or covering up a
material fact or making any materially false or fraudulent statement in connection with the delivery of or
payment for health care benefits, items or services. Violations of HIPAA fraud provisions may result in criminal,
civil and administrative fines, penalties and damages, including exclusion from participation in federal healthcare
programs.

The majority of states have adopted analogous laws and regulations, including state anti-kickback and false

claims laws, that may apply to our business practices, including but not limited to, research, distribution, sales
and marketing arrangements and claims involving healthcare items or services reimbursed by any third-party
payer, including private insurers. Other states have adopted laws and regulations that, among other things, require
pharmaceutical companies to comply with the pharmaceutical industry’s voluntary compliance guidelines with
respect to interactions with healthcare professionals and the relevant compliance program guidance promulgated
by the U.S. federal government that otherwise restrict payments that may be made to healthcare professionals
and other potential referral sources, and that require drug manufacturers to file reports related to pricing and
marketing information, which requires tracking price increases and gifts and other remuneration and items of
value provided to healthcare professionals and entities. In addition, some jurisdictions have laws requiring
pharmaceutical sales representatives to be registered or licensed, and still others impose limits on co-pay
assistance that pharmaceutical companies can offer to patients.

The Physician Payment Sunshine Act requires tracking of certain payments and transfers of value to
U.S.-licensed physicians, physician assistants, nurse practitioners, clinical nurse specialists, certified nurse
anesthetists and certified nurse-midwives and to U.S. teaching hospitals, and ownership interests held by
physicians and their families, and reporting to the federal government and public disclosure by the federal
government of this data.

Data Protection and Privacy

Throughout the clinical trial process, we may obtain the private health information of our trial subjects.

There are a number of state, federal and international laws protecting the privacy and security of health
information and personal data. The Healthcare Information Portability and Accountability Act of 1996
(‘‘HIPAA’’) imposes privacy, security, breach reporting obligations, and mandatory contractual terms on covered
entity health care providers, health plans, and health care clearinghouses, as well as their ‘‘business associates’’
– certain persons or covered entities that create, receive, maintain, or transmit protected health information in
connection with providing a specified service or performing a function on behalf of a covered entity. We could
potentially be subject to civil and criminal penalties if we, our affiliates, or our agents knowingly use or disclose
protected health information maintained by a HIPAA-covered entity in a manner that is not authorized or
permitted by HIPAA.

Even when HIPAA does not apply, according to the Federal Trade Commission (‘‘FTC’’), failing to take

appropriate steps to keep consumers’ personal information secure, or failing to provide a level of security
commensurate to promises made to individual about the security of their personal information (such as in a

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privacy notice) may constitute unfair or deceptive acts or practices in violation of Section 5(a) of the Federal
Trade Commission Act (‘‘FTC Act’’). The FTC expects a company’s data security measures to be reasonable and
appropriate in light of the sensitivity and volume of consumer information it holds, the size and complexity of its
business, and the cost of available tools to improve security and reduce vulnerabilities. Individually identifiable
health information is considered sensitive data that merits stronger safeguards. The FTC’s guidance for
appropriately securing consumers’ personal information is similar to, but less prescriptive than, what is required
by the HIPAA Security Rule. Enforcement by the FTC under the FTC Act can result in civil penalties or
enforcement actions.

Most states have laws requiring notification of affected individuals and state regulators (breach notification

laws) in the event of a breach of personal information, which is a broader class of information than the health
information protected by HIPAA. Some state laws impose significant data security requirements, such as
encryption, to ensure ongoing protection of personal information. Additionally, in California, the California
Consumer Privacy Act (‘‘CCPA’’) establishes certain requirements for data use and sharing transparency and
creates new data privacy rights for California residents. The CCPA and its implementing regulations have already
been amended multiple times since their enactment. In November 2020, California voters approved the California
Privacy Rights Act (‘‘CPRA’’) ballot initiative, which introduced significant amendments to the CCPA and
established and funded a dedicated California privacy regulator, the California Privacy Protection Agency
(‘‘CPPA’’). The amendments introduced by the CPRA go into effect on January 1, 2023, and new implementing
regulations are expected to be introduced by the CPPA. Failure to comply with the CCPA may result in, among
other things, significant civil penalties and injunctive relief, or statutory or actual damages. In addition,
California residents have the right to bring a private right of action in connection with certain types of security
incidents. These claims may result in significant liability and damages. Virginia, Colorado, Connecticut and Utah
have also enacted privacy laws that become effective in 2023 and are similar in many respects to the CCPA.

Activities outside of the U.S. implicate local and national data protection standards, impose additional
compliance requirements and generate additional risks of enforcement for non-compliance. The European Union’s
General Data Protection Regulation (‘‘GDPR’’), which imposes fines of up to EUR 20 million or 4% of the
annual global revenue of a noncompliant company, whichever is greater, and other data protection, privacy and
similar national, state/provincial and local laws may also restrict the access, use and disclosure of patient health
information abroad. We may be required to expend significant capital and other resources to ensure ongoing
compliance with applicable privacy and data security laws, to protect against security breaches and hackers, or to
alleviate problems caused by such breaches. Compliance with these laws is difficult, constantly evolving, time
consuming, and requires a flexible privacy framework and substantial resources. Compliance efforts will likely be
an increasing and substantial cost in the future.

Environmental, Social and Governance (‘‘ESG’’)

Our Corporate Code of Ethics ensures employee adherence to strive to conserve resources and reduce water

consumption and emissions through recycling and other energy conservation measures. Employees are
responsible for promptly reporting any known or suspected violations of environmental laws or any events that
may result in a discharge or emissions of hazardous materials. We manufacture, market and develop specialty
plasma-derived products for the prevention and treatment of infectious diseases in the immune compromised and
other patients at risk for infection, and, as such, we consider our environmental impact to be low. These activities
do not include either industrial production or distribution, and therefore do not use raw materials. Therefore,
there are no significant releases into the environment or greenhouse gas emissions from our manufacturing
emissions. Further, our activities do not produce any particular noise nuisance for staff or neighboring tenants or
residents as well as wildlife surrounding our facilities and offices. Annual electricity and water consumption are
monitored and factored into our sustainable resource practices.

Waste Management Policy

Our waste management’s mission is to identify and mitigate risks and hazards with the aim of achieving
zero incidents, zero injuries, and zero spills or environmental harm. We are dedicated to the safe handling and
management of all non-hazardous and hazardous materials, and all employees are responsible for appropriate
waste management.

We are dedicated to high environmental standards and expect all employees to be familiar with and comply

with the contents of this policy. We are committed to providing a safe and healthy work environment. We

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comply with all applicable laws, regulations, and requirements associated with our environmental obligations and
impact. We are committed to the continual improvement of all environmental impacts associated with our
operations. We are committed to the prevention of pollution in all aspects of our business activities, as well as a
sustainable approach to the development and provision of our products and services.

Social

We actively sponsor and participate in industry-related charitable events on a local and national level and
encourage our employees to actively participate and volunteer their time and participation. We actively support
and fund initiatives designed to improve the communities in which we operate and our employees and
stakeholders reside.

Governance

We pursue fair employment practices in every aspect of our business. We strive to ensure and are extremely

proud that our board of directors and employee base is diverse and consists of individuals of varying gender,
origin, sexual orientation and backgrounds with various and relevant career experience, relevant technical skills,
education, industry knowledge and experience and possess local or community ties.

Employees

As of December 31, 2022, we had a total of 617 employees, all of whom are full-time. Over the course of

the next year, we anticipate hiring additional full-time employees devoted to compliance, production, quality
assurance, quality control, plasma collection and processing, sales and marketing, medical and scientific affairs,
general and administrative, as well as hiring additional staff as part of the build-out of our plasma collection
centers as appropriate. We use Clinical Research Organizations (‘‘CROs’’), third parties and consultants to
perform our post-marketing commitment clinical studies and other process and/or analytical development projects
to augment our in-house capabilities and staff.

Corporate Information

ADMA Biologics, Inc. was founded on June 24, 2004 as a New Jersey corporation and re-incorporated in
Delaware on July 16, 2007. We operate through our wholly-owned subsidiaries ADMA Plasma Biologics, ADMA
BioManufacturing and ADMA BioCenters. ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of BTBU. ADMA BioCenters is the Company’s source plasma collection business which operates
in the U.S. Each operational ADMA plasma collection center, once approved, will have a license with the FDA
and may obtain additional certifications from other regulatory agencies.

We maintain our headquarters at 465 State Route 17, Ramsey, NJ 07446. Our telephone number is (201)

478-5552. Our Florida campus is located at 5800 Park of Commerce Boulevard, Northwest, Boca Raton,
FL 33487. The Florida telephone number is (561) 989-5800. We maintain a website at www.admabiologics.com;
however, the information on, or that can be accessed through, our website is not part of this Annual Report on
Form 10-K. This Annual Report and all of our filings under the Exchange Act, including copies of Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to
those reports, are available free of charge through our website on the date we file those materials with, or furnish
them to, the U.S. Securities and Exchange Commission (the ‘‘SEC’’). Such filings are also available to the public
on the SEC’s website at www.sec.gov.

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Item 1A. Risk Factors

Summary of Risk Factors

Below is a summary of the principal factors that make an investment in our common stock speculative or

risky. This summary does not address all of the risks that we face. Additional discussion of the risks summarized
in this risk factor summary, and other risks that we face, can be found below under the heading ‘‘Risk Factors’’
and should be carefully considered, together with other information in this Form 10-K and our other filings with
the SEC, before making an investment decision regarding our common stock.

• We have a history of losses and we may, in the future, need to raise additional capital to operate our

business, which may not be available on favorable terms, if at all.
• We are currently not profitable and may never become profitable.
•

The COVID-19 pandemic or other pandemics and efforts to reduce their spread has significantly
affected worldwide economic conditions and could have a material adverse impact on our business,
liquidity, financial condition and results of operations, as well as a change to the overall market size
and potential for our products.

• We contract with third parties for the filling, packaging, testing and labeling of the drug substance we

manufacture. This reliance on third parties carries the risk that the services upon which we rely may
not be performed in a timely manner or according to our specifications, which could delay the
availability of our finished drug product and could adversely affect our commercialization efforts and
our revenues.

•

•

•

•

The estimates of market opportunity and forecasts of market and revenue growth included in our filings
may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted
growth, our business could fail to grow at similar rates, if at all.

Both of our business segments and our facilities are subject to periodic inspections by the FDA, which,
depending on the outcome of such inspections, could result in certain FDA actions, including the
issuance of observations, notices, citations or warning letters.

Business interruptions could adversely affect our business.

Although we have received approval from the FDA to market ASCENIV as a treatment for PIDD, our
ability to market or seek approval for ASCENIV for alternative indications could be limited and FDA
could require clinical trials beyond what we may deem to be reasonable. Unless additional clinical
trials are successfully conducted and the FDA approves a BLA or other required submission for review,
we may not be authorized to market ASCENIV for any other indication.

• With the approval to market ASCENIV, BIVIGAM and Nabi-HB, there can be no assurance that we

will be successful in further developing and expanding commercial operations or balancing our research
and development activities with our commercialization activities.

• We depend on third-party researchers, developers and vendors to develop, manufacture, supply

materials for or test our products and product candidates, and such parties are outside of our control.

• We may be unable to successfully expand our manufacturing processes to fulfill demand for our

products or increase our production capabilities through the addition of new equipment, including if we
do not obtain requisite approval from the FDA.

•

•

•

Our products, and any additional products for which we may obtain marketing approval in the future,
could be subject to post-marketing restrictions or withdrawal from the market and we could be subject
to substantial penalties if we fail to comply with regulatory requirements or if we experience
unanticipated problems with our products following approval.

Historically, a few customers have accounted for a significant amount of our total revenue and accounts
receivable and the loss of any of these customers could have a material adverse effect on our business,
results of operations and financial condition.

Issues with product quality and compliance could have a material adverse effect upon our business,
subject us to regulatory actions and cause a loss of customer confidence in us or our products.

31

•

•

•

•

•

•

•

If physicians, payers and patients do not accept and use our current products or our future product
candidates, our ability to generate revenue from these products will be materially impaired.

Our long-term success may depend on our ability to supplement our existing product portfolio through
new product development or the in-license or acquisition of other new products, product candidates and
label expansion of existing products, and if our business development efforts are not successful, our
ability to achieve profitability may be adversely impacted.

Our ADMA BioCenters operations collect information from donors in the U.S. that subjects us to
consumer and health privacy laws, which could create enforcement and litigation exposure if we fail to
meet their requirements.

Our senior credit facility with Hayfin Services LLP (‘‘Hayfin’’) is subject to acceleration in specified
circumstances, which may result in Hayfin taking possession and disposing of any collateral.

If we are unable to protect our patents, trade secrets or other proprietary rights, if our patents are
challenged or if our provisional patent applications do not get approved, our competitiveness and
business prospects may be materially damaged.

Cyberattacks and other security breaches could compromise our proprietary and confidential
information, which could harm our business and reputation.

Our ability to continue to produce safe and effective products depends on the safety of our plasma
supply, testing by third parties and the timing of receiving the testing results, and manufacturing
processes against transmittable diseases.

• We could become supply-constrained and our financial performance would suffer if we cannot obtain
adequate quantities of FDA-approved source plasma with proper specifications or other necessary raw
materials.

•

The market price of our common stock may be volatile and may fluctuate in a way that is
disproportionate to our operating performance.

Risk Factors

Described below are various risks and uncertainties that may affect our business. These risks and

uncertainties are not the only ones we face. You should recognize that other significant risks and uncertainties
may arise in the future, which we cannot foresee at this time. Also, the risks that we now foresee might affect us
to a greater or different degree than expected. Certain risks and uncertainties, including ones that we currently
deem immaterial or that are similar to those faced by other companies in our industry or business in general,
may also affect our business. If any of the risks described below actually occur, our business, financial condition
or results of operations could be materially and adversely affected. You should carefully consider the following
risk factors and the section entitled ‘‘Special Note Regarding Forward-Looking Statements’’ before you decide to
invest in our securities.

Risks Relating to our Business

To date, we have a history of losses and have historically needed to raise, and in the future may be required to
raise, additional capital to operate our business.

Our long-term liquidity depends upon our ability to grow our commercial programs, expand our commercial

operations at the Boca Facility, improve our supply-chain capabilities, improve production yields, continue to
build out our commercial infrastructure and meet our ongoing obligations. In addition, our end-to-end production
cycle from procurement of raw materials to commercial release of finished product can take between seven and
12 months or potentially longer, requiring substantial investments in raw material plasma and other
manufacturing materials.

We currently anticipate, based upon our projected revenue and expenditures, that our current cash, cash
equivalents and accounts receivable, will be sufficient to fund our operations, as currently conducted, through the
end of the first quarter of 2024, at which time we believe we will begin to generate positive cash flow from
operations. This time frame may change based upon how quickly we are able to execute on our
commercialization efforts and operational initiatives and whether or not the assumptions underlying our projected

32

revenues and expenses are correct. We anticipate that we will not be able to generate a sufficient amount of
product revenue to achieve profitability until the beginning of 2024. If we are unable to generate sufficient
positive cash flow in the first quarter of 2024 and cannot raise additional capital if needed, we may have to
delay, curtail or eliminate our commercialization efforts as well as product development activities. Even if we are
able to raise additional capital, such equity or debt financings may only be available on unattractive terms,
resulting in significant dilution of stockholders’ interests and, in such event, the value and potential future market
price of our common stock may decline. In addition, if we raise additional funds through license arrangements or
through the disposition of any of our assets, it may be necessary to relinquish potentially valuable rights to our
product candidates or assets or grant licenses on terms that are not favorable to us.

We also continue to evaluate a variety of strategic alternatives through our ongoing engagement with
Morgan Stanley. The exploration of value-creating opportunities remains a top corporate priority for ADMA.

Historically, the major source of our cash has been from proceeds from various public offerings of our

common stock and the issuance of debt securities. The actual amount of additional cash that we may need, if
any, is subject to many factors. There can be no assurances that additional financing will be available if needed
or that management will be able to obtain financing on terms acceptable to us or that we will become profitable
and generate positive operating cash flow.

We are currently not profitable and may never become profitable.

We have a history of losses and expect to incur substantial losses and negative operating cash flows in fiscal
2023, and we may never achieve or maintain profitability. For the years ended December 31, 2022 and 2021, we
incurred net losses of $65.9 million and $71.6 million, respectively. From our inception in 2004 through
December 31, 2022, we have incurred an accumulated deficit of $478.0 million. We expect that we will not be
able to generate a sufficient amount of product revenue to achieve profitability until the beginning of 2024 and if
we are unable to achieve positive cash flow we may need to continue to finance our operations through
additional equity or debt financings or corporate collaboration and licensing agreements. We also expect to
continue to incur significant operating and capital expenditures and anticipate that as our business continues to
grow our operating expenses will increase accordingly as we:

•

•

•

•

•

expand commercialization and marketing efforts;

implement additional internal systems, controls and infrastructure;

hire additional personnel;

expand and build out our plasma center network; and

expand production capacity at the Boca Facility.

As a result, we will need to generate significant revenues in order to achieve and maintain profitability. We

may not be able to generate these revenues or achieve profitability in the future.

The COVID-19 pandemic and efforts to reduce its spread has significantly affected worldwide economic
conditions, caused supply chain disruptions and could have a material adverse impact on our business,
liquidity, financial condition and results of operations.

The COVID-19 pandemic, including the Delta, Omicron and BA.2 variants and other resistant, mutating and
emerging strains of the coronavirus, has the potential to adversely impact several aspects of each of our business
segments, our commercial manufacturing operations and plasma collection facilities, including but not limited to
potential disruptions to our supply-chain operations, including procurement of raw materials and packaging
materials, a portion of which are sourced internationally, and the testing of finished drug product that is required
prior to its availability for commercial sale. Such testing has historically been performed by contract laboratories
outside the United States. While we do not believe that the COVID-19 pandemic has significantly affected
operations and immunoglobulin production at our Boca Facility or our ADMA BioCenters plasma collection
operations at this time, we may experience adverse effects in the future from the COVID-19 pandemic or future
pandemics. For example, our employees becoming ill, the imposition of additional mandatory remote working
environments and federal, state and local responses to the pandemic could materially affect the efficiency and
pace of our operations and manufacturing at our Boca Facility. Employee or donor illness, if not properly
managed, could also impact the availability of and quality of our products. Further, in certain instances and

33

geographic regions, we may experience decreased customer engagement (for example, as a result of a temporary
shutdown of a customer’s facilities or the continuation of no in-person meetings) could impact our results of
operations. In addition, travel and other restrictions that were implemented in the United States or could be
implemented in the future could impact our commercial efforts with respect to any of our products, including
BIVIGAM and ASCENIV, as trade shows, industry and medical conferences and other events we had been
planning to utilize and exhibit and attend with our staff to increase awareness of our products by physicians and
payers were subject to limitations, rescheduling, virtual attendance or outright cancellation in response to the
pandemic. Also, due to a combination of previous state and local ‘‘shelter-in-place’’ orders, as well as
government stimulus packages, amongst other initiatives, we were experiencing, and may experience in the
future, lower than expected donor collections at our FDA-licensed plasma collection centers. We are also subject
to delays in shipments of source plasma from our contracted third-party suppliers, as well as delays in deliveries
for personal protective equipment, reagents and other non-plasma raw materials and supplies used in the
manufacture, testing and distribution of our products. We also experienced supply chain delays as a result of
significant resources being diverted towards the rapid development and distribution of COVID-19 vaccines,
which could result in our need to carry more inventory than we have in the past, which would put an additional
strain on our cash resources. After the COVID-19 global pandemic has settled, we may continue to experience
adverse impacts to our business as a result of evolving macroeconomic factors, including general economic
uncertainty, unemployment rates, high inflation, recessionary pressures and any actual economic recession that
has occurred or may occur in the future.

In the future we may continue to experience pandemic-related challenges with respect to obtaining and

manufacturing a sufficient amount of supplies, raw materials, and finished product to meet our need for
commercial and clinical product supply. If we or any of our suppliers or manufacturers are adversely impacted
by pandemics or the restrictions resulting from outbreaks, if they or we cannot obtain the necessary supplies, or
if third parties need to prioritize other products or customers over us, including under the Defense Production
Act, we may experience future delays or disruptions in our supply chain, which could have a material and
adverse impact on our business. Moreover, we, our suppliers, and any third-party manufacturers may also need to
implement measures and changes, or deviate from typical requirements, because of pandemics that may
otherwise adversely impact our supply chains or the quality of the resulting products or supplies. Depending on
the change, we may need to obtain FDA pre-approval or otherwise provide the FDA with a notification of the
change.

To the extent that we or our partners are conducting clinical trials, pandemics could cause delays or

disruptions in these or future development programs. By example, the pandemic may result in slower enrollment,
the need to suspend enrollment into studies, patient withdrawals, postponement of planned clinical or preclinical
studies, redirection of site resources from studies, study modification, suspension, or termination, the introduction
of remote study procedures and modified informed consent procedures, study site changes, direct delivery of
investigational products to patient homes requiring state licensing, study deviations or noncompliance, and
changes or delays in site monitoring. The foregoing could require that we consult with relevant review and ethics
committees, IRBs, and the FDA. The foregoing could also impact the integrity of study data. The effects of
pandemics may also increase the need for clinical trial patient monitoring and regulatory reporting of adverse
effects. Pandemics could further impact our ability to interact with the FDA or other regulatory authorities and
may result in delays in the conduct of inspections or review of pending applications or submissions. No
assurances can be provided as to the timing for completion of any regulatory submissions or applications or other
circumstances unknown to us presently or that are out of our direct control. Due to the potential impact of the
COVID-19 outbreak on clinical trials, drug development, and manufacturing, the FDA issued a number of
guidances specifically concerning COVID-19, including guidance with respect to blood and blood components.
The FDA’s guidance is continually evolving.

The COVID-19 pandemic resulted in and future pandemics may also result in changes in laws and
regulations. By example, in March 2020, the U.S. Congress passed the CARES Act, which includes various
provisions regarding FDA drug shortage reporting requirements, as well as provisions regarding supply chain
security, such as risk management plan requirements, and the promotion of supply chain redundancy and
domestic manufacturing. The CARES Act further included reporting requirements related to the volume of
products produced over the course of the year. FDA issued guidance regarding this requirement. This and any

34

future changes in law may require that we change our internal processes and procedures to ensure continued
compliance. Additionally, the previous guidelines that were issued by public health authorities or any new or
changing recommendations or guidelines may still impact the demand for or usage as well as the prescriptions of
our IVIG products.

The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. We do not yet

know the full extent of potential delays or impacts on our business, operations, or financial condition, or on
healthcare systems or the global economy as a whole. Although the COVID-19 pandemic has not adversely
affected our capital and financial resources to date, the pandemic’s effects could have a material impact on our
ability to access the capital markets as needed and on our operations and business, including those of the third
parties on which we rely. Because we are unable to determine the ultimate severity or duration of the pandemic
or its effects on, among other things, the global, national or local economies, the capital and credit markets, our
workforce, our customers or our suppliers, at this time we are unable to predict whether COVID-19 will have a
material adverse impact on our business, financial condition, liquidity and results of operations.

We contract with third parties for a portion of the filling, packaging, testing and labeling of the drug
substance we manufacture. This reliance on third parties carries the risk that the services upon which we rely
may not be performed in a timely manner or according to our specifications, which could delay the
availability of our finished drug product and could adversely affect our commercialization efforts and our
revenues.

Third-party fill/finish providers may not perform as agreed or in accordance with FDA requirements. Any
significant problem that our fill/finish providers experience could delay or interrupt our supply of finished drug
product until the service provider cures the problem or until we locate, negotiate for, validate and receive FDA
approval for an alternative provider (when necessary), if one is available. Failure to obtain the needed fill/finish
services meeting the necessary quality standards or at all could have a material and adverse effect on our
products, business, financial condition and results from operations.

Although we are utilizing our FDA-approved fill/finish suite that we built at the Boca Facility for a portion

of our finished drug product, we also intend to continue to utilize third parties to supplement our fill/finish
process for final drug product. Any failure by us, our contract fill/finishers, or other third parties involved in the
process for producing our products or product candidates to comply with the applicable manufacturing, including
manufacturing quality requirements, could place us and them at risk of regulatory enforcement actions, recalls
and other adverse consequences, could adversely impact our products, and could adversely impact patients
receiving our products, which may negatively impact our business and our ability to produce and supply products
to meet commercial and clinical needs.

Our anticipated reliance on a limited number of third-party manufacturers exposes us to the following risks:

•

•

•

•

•

•

•

we may be unable to identify contract fill/finishers on acceptable terms or at all because the number of
potential service providers is limited and the FDA must inspect and qualify any contract manufacturers
for current cGMP compliance as part of our marketing application;

a new fill/finisher would have to be educated in, or develop substantially equivalent processes for, the
production of our products and product candidates;

the COVID-19 pandemic could adversely affect our contracted fill/finishers’ operations, supply chain or
workforce;

our contracted fill/finishers’ resources and level of expertise with plasma-derived biologics may be
limited, and therefore they may require a significant amount of support from us in order to implement
and maintain the infrastructure and processes required to deliver our finished drug product;

our third-party fill/finishers might be unable to timely provide finished drug product in sufficient
quantity to meet our commercial needs;

contract manufacturers may not be able to execute our inspection procedures and required tests
appropriately;

contract manufacturers are subject to ongoing periodic unannounced inspection by the FDA and
corresponding state agencies to ensure strict compliance with cGMP and other government regulations,
and we do not have control over third-party providers’ compliance with these regulations;

35

•

•

•

contract manufacturers may fail to comply with applicable regulatory requirements, placing them and
us at risk of regulatory enforcement actions, recalls and other adverse consequences, which may
negatively impact our business and their ability to supply products to meet our development, clinical
and commercial needs;

our third-party fill/finishers could breach or terminate their agreements with us; and

our contract fill/finishers may have unacceptable or inconsistent drug product quality success rates and
yields, and we have no direct control over our contract fill/finishers’ ability to maintain adequate
quality control, quality assurance and qualified personnel.

Each of these risks could delay or prevent the completion of our finished drug product and the release of
finished drug product by us or the FDA, which could result in higher costs or adversely impact our revenues.
These risks could also result in the delay in obtaining clinical supplies, which would delay our development
programs. In addition, our contract fill/finishers and our other third-party vendors may source their materials and
supplies globally and are therefore subject to supply disruptions in the event of fire, weather related events such
as hurricanes, wind and rain, international conflicts, trade and sanction requirements and limits, other acts of God
or force majeure events or global health occurrences and emergencies, including the COVID-19 pandemic.

The estimates of market opportunity and forecasts of market and revenue growth included in our filings may
prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our
business could fail to grow at similar rates, if at all.

Market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on
assumptions and estimates that may not prove to be accurate, including as a result of changing circumstances
during the ongoing COVID-19 pandemic. In particular, the size and growth of the overall U.S. IVIG and source
plasma markets are subject to significant variables that can be difficult to measure, estimate or quantify. Our
business depends on, among other things, successful commercialization of our existing products, market
acceptance of such products and ensuring that our products are safe and effective. Further, there can be no
assurance that we will be able to generate the revenue that we believe our products and plasma collection
facilities are capable of generating. As a result, we may not be able to accurately forecast or predict revenue. For
these reasons, the estimates and forecasts in our filings relating to revenue generation and growth may prove to
be inaccurate. Even if the markets in which we compete meet our size estimates and forecasted growth, our
business could fail to grow at similar rates, if at all.

Both of our business segments and our facilities, as well as our suppliers and contractors, are subject to
periodic inspections by the FDA, which, depending on the outcome of such inspections, could result in certain
FDA actions, including the issuance of observations, notices, citations or warning letters.

We and our suppliers and contractors may be unable to comply with our specifications, cGMP requirements
and with other FDA, state, and foreign regulatory requirements for commercial and clinical supply. The FDA is
authorized to perform inspections and remote regulatory assessments of our and our suppliers’ facilities,
including the Boca Facility. The FDA also may inspect and approve our and our third-parties’ facilities before
they may be used for commercial production. At the end of such an inspection, the FDA could issue a Form 483
Notice of Inspectional Observations, which could cause the FDA to not approve the use of the facility and cause
us to modify certain activities identified during the inspection. Following such inspections, the FDA may issue an
untitled letter as an initial correspondence that cites violations that do not meet the threshold of regulatory
significance of a warning letter. FDA guidelines also provide for the issuance of warning letters for violations of
‘‘regulatory significance’’ for which the failure to adequately and promptly achieve correction may be expected
to result in an enforcement action. FDA also may issue warning letters and untitled letters in connection with
events or circumstances unrelated to an FDA inspection. Depending on the seriousness of any findings, we or our
suppliers may be subject to additional significant enforcement actions which could have a material impact on our
business.

In the event of any FDA enforcement actions, we and our third-party contractors would need to implement

remedial actions which may be time-intensive or costly. We may not be able to timely resolve concerns raised by
the FDA as a result of an inspection or without expending significant resources. We are unable to control the
timing of FDA inspections, communications and actions, and will be required to respond to the FDA and make
certain submissions within certain timeframes. We also do not know whether or not the FDA will change its

36

requirements, guidance or expectations. If the FDA determines that we have not remediated the issues identified
in a warning letter or any other inspection issues and deficiencies, any failure of ours to address or provide
requested documentation of corrections for these issues could disrupt our business operations and the timing of
our commercialization efforts and could have a material adverse effect on our financial condition and operating
results.

If we fail to comply with environmental, health and safety laws and regulations, we could become subject to
fines or penalties or incur costs that could have a material adverse effect on the success of our business.

We are subject to numerous environmental, health and safety laws and regulations, including those
governing laboratory procedures and the handling, use, storage, treatment and disposal of hazardous materials
and wastes. Our commercial manufacturing and any research and development activities involve the use of
biological and hazardous materials and produce hazardous waste products. We generally contract with third
parties for the disposal of these materials and wastes. We cannot eliminate the risk of contamination or injury
from these materials, which could cause an interruption to our commercialization efforts, research and
development efforts and business operations, environmental damage resulting in costly clean-up and liabilities
under applicable laws and regulations governing the use, storage, handling and disposal of these materials and
specified waste products. Although we believe that the safety procedures utilized internally and by our third-party
manufacturers and service providers for handling and disposing of these materials generally comply with the
standards prescribed by these laws and regulations, we cannot guarantee that this is the case or eliminate the risk
of accidental contamination or injury from these materials. In such an event, we may be held liable for any
resulting damages and such liability could exceed our resources and state or federal or other applicable
authorities may curtail our use of certain materials and/or interrupt our business operations. Furthermore,
environmental laws and regulations are complex, change frequently and have tended to become more stringent.
We cannot predict the impact of such changes and cannot be certain of our future compliance. In addition, we
may incur substantial costs in order to comply with current or future environmental, health and safety laws and
regulations. These current or future laws and regulations may impair our commercial manufacturing, research and
development, or production efforts. Failure to comply with these laws and regulations also may result in
substantial fines, penalties, or other sanctions.

Business interruptions could adversely affect our business.

Our operations, including our headquarters located in Ramsey, NJ, the Boca Facility and our plasma
collection facilities, are vulnerable to interruption by fire, weather related events such as hurricanes, wind and
rain, other acts of God or force majeure events, electric power loss, telecommunications failure, equipment
failure, cyberattacks on our operations and information technology systems and breakdown, human error,
employee issues, global health occurrences such as the COVID-19 pandemic, war, geopolitical conditions and
emergencies, product liability claims and events beyond our control. While we maintain several insurance
policies with reputable carriers that provide partial coverage for a variety of these risks, including replacing or
rebuilding a part of our facilities, these policies are subject to the insurance carriers’ final determination of
compensation to us and we may not have adequate coverage if we need to rebuild or replace our inventory,
infrastructure, business income or our entire facility. In addition, our disaster recovery plans for our facilities may
not be adequate and we do not have an alternative manufacturing facility or contractual arrangements with other
manufacturers in the event of a casualty to or destruction of any of our facilities. If we are required to rebuild or
relocate any of our facilities, a substantial investment in improvements and equipment would be necessary. We
carry only a limited amount of business interruption insurance, which may not sufficiently compensate us for
losses that may occur. As a result, any significant business interruption could adversely affect our business and
results of operations.

If we are unsuccessful in obtaining regulatory approval for any of our product candidates or if any of our
product candidates do not provide positive results, we may be required to delay or abandon development of
such product, which would have a material adverse impact on our business.

Product candidates require extensive clinical data analysis and regulatory review and may require additional

testing. Clinical trials and data analysis can be very expensive, time-consuming and difficult to design and
implement. The conduct of preclinical studies and clinical trials is subject to numerous risks and results of the
studies and trials are highly uncertain. Human clinical trials are very expensive and difficult to design and

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implement, in part because they are subject to rigorous regulatory requirements. The clinical trial process is also
time-consuming. Furthermore, delays or setbacks can occur at any stage of the process, and we could encounter
problems that cause us to abandon our product development programs and related INDs or BLAs, or to repeat
clinical trials. The evolving COVID-19 pandemic may directly or indirectly affect the pace of enrollment in
clinical trials as patients may be restricted in traveling to and accessing healthcare facilities and physicians’
offices. Additionally, such healthcare facilities and offices have their limited resources directed towards treating
patients with COVID-19 symptoms. The commencement and completion of clinical trials or ultimate product
approval for any current or future development product candidate may be delayed by several factors, including:

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unforeseen safety issues;

determination of dosing issues;

lack of safety or effectiveness during clinical trials;

slower than expected rates of patient recruitment;

inability to monitor patients adequately during or after treatment; and

inability or unwillingness of medical investigators to follow our clinical protocols.

We cannot be certain as to what type and how many clinical trials the FDA, or equivalent foreign regulatory

agencies, will require us to conduct before we may successfully gain approval to market any of our product
candidates that still require FDA approval. Prior to approving a new drug or biologic, the FDA generally requires
that the effectiveness of the product candidate (which is not typically fully investigated until Phase III) be
demonstrated in two adequate and well-controlled clinical trials. However, if the FDA or an equivalent foreign
regulatory authority determines that our Phase III clinical trial results do not demonstrate a statistically
significant, clinically meaningful benefit with an acceptable safety profile, or if a relevant regulator requires us to
conduct additional Phase III clinical trials in order to gain approval, we will incur significant additional
development costs and commercialization of these products would be prevented or delayed and our business
could be adversely affected.

In addition, the FDA or an IRB may not permit us to commence a clinical trial, may require amendments to

our clinical trial protocols, or may suspend our clinical trials at any time if it appears that we are exposing
participants to unacceptable health risks or if the FDA or IRB finds deficiencies in our IND submissions or the
conduct of these trials. Regulatory authorities may also not accept data from clinical trials if the trials are not
conducted in accordance with the applicable regulatory requirements. Failure to comply with the applicable
regulatory requirements may also result in enforcement actions. Therefore, we cannot provide any assurance or
predict with certainty the schedule for future clinical trials. In the event we do not ultimately receive regulatory
approval for our product candidates, we may be required to terminate development of such product candidates. If
we fail to obtain regulatory approval to market and sell our product candidates, or if approval is delayed, we will
be unable to generate revenue from the sale of these products, our potential for generating positive cash flow will
be diminished and the capital necessary to fund our operations will increase.

If the results of our clinical trials do not support our product candidate claims, completing the development of
such product candidate may be significantly delayed or we may be forced to abandon development of such
product candidate altogether.

We cannot be certain that the clinical trial results of our product candidates will support our product
candidates’ claims. Success in preclinical testing and early clinical trials does not ensure that later clinical trials
will be successful, and we cannot be sure that the results of later clinical trials will replicate the results of prior
clinical trials and preclinical testing.

The clinical trial process may fail to demonstrate that our product candidates are safe for humans and

effective for indicated uses. This failure would cause us to abandon a product candidate and may delay
development of other product candidates. Any delay in, or termination of, our clinical trials will delay our ability
to commercialize our product candidates and generate product revenues.

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Other issues that may impact our clinical trials and that could delay or prevent our ability to receive

marketing approval or commercialize our product candidates, include:

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Delays in reaching, or failure to reach, agreement on acceptable clinical trial contracts or clinical trial
protocols with prospective trial sites and our CROs;

Regulators requiring us to perform additional or unanticipated clinical trials to obtain approval or
becoming subject to additional post-marketing testing, surveillance, or REMS requirements to maintain
regulatory approval;

Failure by our third-party contractors to comply with regulatory requirements or the clinical trial
protocol, or meet their contractual obligations to us in a timely manner, or at all, or our being required
to engage in additional clinical trial site monitoring;

The cost of clinical trials of our product candidates being greater than we anticipate or our having
insufficient funds for a clinical trial or to pay the substantial user fees required by FDA upon the filing
of a marketing application;

Insufficient supply or inadequate quality of our product candidates or other materials necessary to
conduct clinical trials;

Inability to achieve sufficient study enrollment, subjects dropping out or withdrawing from our studies,
delays in adding new investigators or clinical trial sites or a withdrawal of clinical trial sites;

Flaws in our clinical trial design that are not discoverable until the clinical trial has progressed;

Disagreement by the FDA or comparable foreign regulatory authorities with our intended indications or
study design, including endpoints, or our interpretation of data from preclinical studies and clinical
trials, finding that a product candidate’s benefits do not outweigh its safety risks or requiring that we
conduct additional development or study work;

The need to make changes to our product candidates that require additional testing or that cause our
product candidates to perform differently than expected;

Global trade policies that may impact our ability to obtain raw materials and/or finished product for
commercialization;

FDA or comparable regulatory authorities taking longer than we anticipate to make decisions on our
products or product candidates; and

Potential inability to demonstrate that a product or product candidate provides an advantage over
current standards of care or current or future competitive therapies in development.

In addition, our clinical trials involve a relatively small patient population. Because of the small sample size,

the results of these clinical trials may not be indicative of future results. In addition, certain portions of our
clinical trials and product testing for our product candidates may be performed outside of the U.S., and therefore,
may not be performed in accordance with standards normally required by the FDA and other regulatory agencies.

If we do not obtain and maintain the necessary U.S. or international regulatory approvals to commercialize a
product candidate, we will not be able to sell that product candidate, which would make it difficult for us to
recover the costs of researching and developing such product candidate.

If we are not able to generate revenue from our products and product candidates, our sources of revenue

may continue to be from a product mix consisting only of plasma collection and sales revenues, revenues
generated from sales of our FDA-approved commercial products, revenues generated from new contract
manufacturing arrangements with third parties and revenues generated from the sales of manufacturing
intermediates. We cannot assure you that we will receive the approvals necessary to commercialize any product
candidate we may acquire or develop in the future. In order to obtain FDA approval of any product candidate
requiring FDA approval, our clinical development must demonstrate that the product candidate is safe for humans
and effective for its intended use, and we must successfully complete an FDA BLA review. Obtaining FDA
approval of a product candidate generally requires significant research and testing, referred to as preclinical
studies, as well as human tests, referred to as clinical trials. Satisfaction of the FDA’s regulatory requirements
typically takes many years, depends upon the type, complexity and novelty of the product candidate and requires

39

substantial resources for research, development and testing. We cannot predict whether our research and clinical
approaches will result in products that the FDA considers safe for humans and effective for indicated uses. The
FDA has substantial discretion in the product approval process and may require us to conduct additional
preclinical and clinical testing or to perform post-marketing studies or may require additional CMC or other data
and information, and the development and provision of this data and information may be time-consuming and
expensive. The approval process may also be delayed by changes in government regulation, future legislation or
administrative action or changes in FDA policy that occur prior to or during our regulatory review. Delays in
obtaining regulatory approvals may:

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delay commercialization of, and our ability to derive revenues from, our product candidates;

impose costly procedures on us; and

diminish any competitive advantages that we may otherwise enjoy.

Even if we comply with all FDA requests, the FDA may ultimately reject our product candidate’s BLA. In
addition, the FDA could determine that we must test additional subjects and/or require that we conduct further
studies with more subjects. We may never obtain regulatory approval for any future potential product candidate
or label expansion activity. Failure to obtain FDA approval of any of our product candidates will severely
undermine our business by leaving us without the ability to generate additional accretive revenues. There is no
guarantee that we will ever be able to develop or acquire other product candidates. In foreign jurisdictions, we
must receive approval from the appropriate regulatory authorities before we can commercialize any products or
product candidates outside the U.S. Foreign regulatory approval processes generally include all of the risks and
uncertainties associated with the FDA review, inspection and approval procedures described above. We cannot
assure you that we will receive the approvals necessary to commercialize any product candidate for sale outside
the U.S.

Although we have received approval from the FDA to market ASCENIV as a treatment for PIDD, our ability
to market or seek approval for ASCENIV for alternative indications could be limited, unless additional clinical
trials are conducted successfully and the FDA approves a BLA or other required submission for review.

The FDA and other governmental authorities strictly regulate and monitor marketing, labeling and the

advertising and promotion of prescription drugs. These regulations include standards and restrictions for
direct-to-consumer advertising, industry-sponsored scientific and educational activities, promotional activities
involving the Internet and off-label promotion. The FDA does not allow drugs to be promoted for ‘‘off-label’’
uses — that is, uses that are not described in the product’s labeling and that differ from those that were approved
by the FDA. The FDA limits approved uses to those studied by a company in its clinical trials. In addition to the
FDA approval required for new formulations, any new indication for an approved product also requires FDA
approval. Although we have received approval from the FDA to market ASCENIV as a treatment for PIDD, we
cannot be sure whether we will be able to obtain FDA approval for any desired future indications for ASCENIV.

While physicians in the U.S. may choose, and are generally permitted, to prescribe drugs for uses that are

not described in the product’s labeling, and for uses that differ from those tested in clinical studies and approved
by the regulatory authorities, our ability to promote our products is narrowly limited to those indications that are
specifically approved by the FDA. ‘‘Off-label’’ uses are common across medical specialties and may constitute
an appropriate treatment for some patients in varied circumstances. Regulatory authorities in the U.S. generally
do not regulate the behavior of physicians in their choice of treatments. Regulatory authorities do, however,
restrict communications by pharmaceutical companies on the subject of off-label use. If the FDA determines that
our promotional activities fail to comply with the FDA’s regulations or guidelines, we may be subject to
warnings from, or enforcement action by, these authorities. In addition, our failure to follow FDA rules and
guidelines related to promotion and advertising may cause the FDA to issue warning letters or untitled letters,
bring an enforcement action against us, suspend or withdraw an approved product from the market, require a
recall, require payment of civil fines or could result in disgorgement of money, operating restrictions, injunctions
or criminal prosecution, among other consequences, any of which could harm our reputation and our business.

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With the approval of ASCENIV, there can be no assurance that we will be successful in further developing
and expanding commercial operations or balancing our research and development activities with our
commercialization activities.

Since receiving FDA approval for ASCENIV, we have been commercializing this product while also

continuing our research and development activities. There can be no assurance that we will be able to
successfully manage the balance of our research and development operations with our commercialization
activities. Potential investors and stockholders should be aware of the problems, delays, expenses and difficulties
frequently encountered by companies balancing development of product candidates, which can include problems
such as unanticipated issues related to clinical trials and receipt of approvals from the FDA and foreign
regulatory bodies, with commercialization efforts, which can include problems related to managing manufacturing
and supply, including supply chain constraints , reimbursement, marketing challenges, development of a
comprehensive compliance program, and other related and additional costs. For example, the raw material plasma
we collect and procure to manufacture ASCENIV using our patented proprietary microneutralization assay is
comprised of plasma collected from donors which contains high titer antibodies to RSV. This high titer plasma
which meets our internal specifications for the manufacture of ASCENIV that we are able to identify with our
patented testing assay amounts to less than 10% of the total donor collection samples we test. As a result, we
may experience an insufficient supply of this plasma.

Our product candidates will require significant additional research and clinical trials, and we will need to

overcome significant regulatory burdens prior to commercialization in the U.S. and other countries. In addition,
we may be required to spend significant funds on building out our commercial operations. There can be no
assurance that after the expenditure of substantial funds and efforts, we will successfully develop and
commercialize any of our product candidates, generate any significant revenues or ever achieve and maintain a
substantial level of sales of our products.

We depend on third-party researchers, developers and vendors to develop, manufacture or test products and
product candidates, as well as for other pre-and-post approval services, and such parties are, to some extent,
outside of our control.

We depend on independent investigators and collaborators, such as universities and medical institutions,

contract laboratories, CROs, contract manufacturers, contract fill/finishers and consultants to conduct our
preclinical activities, clinical trials, CMC testing and other activities under agreements with us. These
collaborators are not our employees and we cannot control the amount or timing of resources that they devote to
our programs. These third parties may not assign as great a priority to our programs or pursue them as diligently
as we would if we were undertaking such programs ourselves. If outside collaborators fail to devote sufficient
time and resources to our product-development programs, or if their performance is substandard or does not
comply with the applicable regulatory standards, our trials may be repeated, extended, delayed, or terminated, the
approval of our FDA application(s), if any, and our introduction of new products, if any, will be delayed. We or
they may also be subject to regulatory enforcement actions and we may not be able to meet commercial demand.
These collaborators may also have relationships with other commercial entities, some of whom may compete
with us. If our collaborators assist our competitors at our expense, our competitive position would be harmed.
Additionally, any change in the regulatory compliance status of any of our vendors may impede our ability to
receive and maintain approval for our product candidates.

We may be unable to successfully expand our manufacturing processes to fulfill demand for our products or
increase our production capabilities through the addition of new equipment, including if we do not obtain
requisite approval from the FDA.

We currently anticipate expanding the manufacturing capacity of our Boca Facility by approximately 50% or

more. We also anticipate expanding our production capabilities through the addition of our fill-finish machine at
our Boca Facility. Following the expansion of any of our manufacturing processes or the addition of new
equipment, such as our fill-finish machine, we will need to validate the expanded facility and equipment, make
the necessary submissions to FDA, obtain any FDA required approvals and have it inspected by the FDA. Given
the significant delays that may result during the validation process, we may experience a significant supply
shortage of our products or our production capabilities may be limited until completion of and validation of our
facility expansion and new manufacturing equipment.

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Our products, and any additional products for which we may obtain marketing approval in the future, could
be subject to post-marketing restrictions or withdrawal from the market and we could be subject to substantial
penalties if we fail to comply with regulatory requirements or if we experience unanticipated problems with
our products following approval.

Our products, and any additional products for which we may obtain marketing approval in the future, could

be subject to post-marketing restrictions, new FDA guidance, or other regulatory actions, such as withdrawal
from the market. Such products, as well as the manufacturing processes, post-marketing studies and measures,
labeling and advertising and promotional activities for such products, among other things, are subject to ongoing
regulatory compliance requirements, and oversight, review, and inspection by the FDA and other regulatory
authorities. These requirements include submissions of safety and other post-marketing information and reports,
registration and listing requirements, adherence with labeling and promotional requirements and restrictions,
requirements related to manufacturing, quality control, quality assurance and corresponding maintenance of
records and documents, requirements regarding safeguarding the drug supply chain as well as the distribution of
samples to physicians and recordkeeping. For example, the FDA’s approval of our PAS to allow for the
commercial relaunch of BIVIGAM, as well as the FDA’s approval of our BLA for ASCENIV, require us to
conduct specified post-marketing studies related to our manufacturing controls and processes and submit
specified post-marketing reports to the FDA. If, during the post-marketing period (after marketing approval)
previously unknown adverse events, discovery that the product is less effective than previously thought, or other
potential concerns regarding our products or their manufacturing processes emerge, or we are observed in any
way to fail to comply with the numerous regulatory requirements to which we are subject, those circumstances
may yield various results, including:

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restrictions on such products or manufacturing processes;

restrictions on the labeling or marketing of a product;

restrictions on product distribution or use;

clinical holds or termination of clinical trials;

requirements to conduct further post-marketing studies or clinical trials, implement risk mitigation
strategies, or to issue corrective information;

warning letters or untitled letters;

withdrawal of the products from the market;

refusal to approve pending applications or supplements to approved applications that we submit;

recall of products;

restrictions on coverage by third-party payers;

fines, restitution or disgorgement of profits or revenues;

suspension or withdrawal of marketing approvals;

refusal to permit the import or export of products;

FDA debarment, suspension and debarment from government programs, refusal of orders under existing
government contracts, exclusion from participation in federal healthcare programs, consent decrees,
deferred or non-prosecution agreements or corporate integrity agreements;

product seizure or detention; or

injunctions or the imposition of civil penalties or criminal fines.

Historically, a few customers have accounted for a significant amount of our total revenue and accounts
receivable and the loss of any of these customers could have a material adverse effect on our business, results
of operations and financial condition.

For the year ended December 31, 2022, two customers BioCare and Curascript, represented an aggregate of

74% of our consolidated revenues. For the year ended December 31, 2021, four customers, BioCare, Reliance
Life Sciences Pvt Limited (‘‘Reliance’’), Curascript and AmerisourceBergen Corporation, represented an
aggregate of 81% of our consolidated revenues.

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As of December 31, 2022, two customers, BioCare and Healix Infusion Therapy, LLC, represented an

aggregate of 92% of our consolidated accounts receivable. As of December 31, 2021, three customers,
Curascript, BioCare and Reliance, represented a total of 94% of our consolidated accounts receivable.

The loss of any key customers or a material change in the revenue generated by any of these customers
could have a material adverse effect on our business, results of operations and financial condition. Moreover, we
anticipate deriving increased revenue from some of these customers over the next few years. Factors that could
influence our relationships with our customers include, among other things:

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our ability to sell our products at competitive prices;

our ability to maintain features and quality standards for our products sufficient to meet the
expectations of our customers;

our ability to produce and deliver a sufficient quantity of our products in a timely manner to meet our
customers’ requirements; and

the impact of the ongoing COVID-19 pandemic and government responses thereto on our customers
and their businesses, operations and financial condition.

Additionally, an adverse change in the financial condition of any of our key customers could negatively

affect revenue derived from such customer, which in turn could have a material adverse effect on our business
and results of operations.

Issues with product quality and compliance could have a material adverse effect upon our business, subject us
to regulatory actions and cause a loss of customer confidence in us or our products.

Our success depends upon the quality of our products. Quality management plays an essential role in
meeting customer requirements, preventing defects, improving our products and services and assuring the safety
and efficacy of our products. Our future success depends on our ability to maintain and continuously improve
our quality management program. A quality or safety issue may result in failure to obtain product approval,
adverse inspection reports, warning letters, product recalls or seizures, monetary sanctions, injunctions to halt
manufacture and distribution of products, civil or criminal sanctions, costly litigation, patient injury, refusal of a
government to grant approvals and licenses, restrictions on operations or withdrawal of existing approvals and
licenses. An inability to address a quality or safety issue by us or by a third-party vendor in an effective and
timely manner may also cause negative publicity or a loss of customer confidence in us or our current or future
products, which may result in the loss of sales and difficulty in successfully commercializing our current
products and launching new products.

In addition, as a manufacturer of biological products, we are subject to the risks inherent in biological
production, which could include normal course losses and failures inherent in the manufacturing process. As our
biologics production levels increase, there may be normal course inventory losses or write-downs as we ensure
product quality and compliance with cGMP, FDA, state and local regulations, or due to testing results not
meeting specifications. As a result, our operating results are subject to potentially significant variability from one
reporting period to the next should such normal course losses occur in any given period. However, because our
products and product candidates are plasma-based products, not only are we subject to FDA’s drug and biologic
cGMP requirements, but we are also subject to special requirements for the collection, testing, handling, storage,
and use of blood products. This adds an extra level of compliance and complexity to our operations, which we
may not be able to successfully meet. Failure to meet any regulatory quality standards could have an adverse
impact on our business.

If physicians, payers and patients do not accept and use our current products or our future product
candidates, our ability to generate revenue from these products will be materially impaired.

Even if the FDA approves a product made by us, physicians, payers and patients may not accept and use it.

Acceptance and use of our products depends on a number of factors including, but not limited to:

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perceptions by members of the healthcare community, including physicians, about the safety and
effectiveness of our products;

cost-effectiveness of our products relative to competing products;

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availability of reimbursement for our products from government or other healthcare payers; and

the effectiveness of marketing and distribution efforts by us and our licensees and distributors, if any.

The failure of our current or future products to find market acceptance would harm our business and could

require us to seek additional financing or make such financing difficult to obtain on favorable terms, if at all.

Our long-term success may depend on our ability to supplement our existing product portfolio through new
product development or the in-license or acquisition of other new products, product candidates and label
expansion of existing products, and if our business development efforts are not successful, our ability to
achieve profitability may be adversely impacted.

Our current product development portfolio consists primarily of label expansion activities for Nabi-HB,

BIVIGAM and ASCENIV, as well as expanding our IP estate with patents issued for S. Pneumoniae
hyperimmune IG. We have initiated small scale preclinical activities to potentially expand our current portfolio
through new product development efforts or to in-license or acquire additional products and product candidates.
If we are not successful in developing or acquiring additional products and product candidates, we will have to
depend on our ability to successfully commercialize ASCENIV, as well as our ability to generate revenue from
Nabi-HB, BIVIGAM, contract manufacturing, intermediate fractions and plasma attributable to the operations of
ADMA BioCenters, to support our operations.

Our ADMA BioCenters operations collect information from donors in the U.S. that subjects us to consumer
and health privacy laws, which could create enforcement and litigation exposure if we fail to meet their
requirements.

Consumer privacy is highly protected by federal and state law. The Health Insurance Portability and
Accountability Act of 1996 (‘‘HIPAA’’), as amended by the Health Information Technology for Economic and
Clinical Health Act of 2009 (‘‘HITECH’’), and their respective implementing regulations, impose, among other
things, obligations, including mandatory contractual terms, with respect to safeguarding the privacy, security and
transmission of protected health information (‘‘PHI’’) held by covered entities and business associates. A
‘‘covered entity’’ is the primary type of HIPAA-regulated entity. Health plans/insurers, healthcare providers
engaging in standard transactions (i.e., insurance/health plan claims and encounters, payment and remittance
advice, claims status, eligibility, enrollment/disenrollment, referrals and authorizations, coordination of benefits
and premium payments), and healthcare clearinghouses (i.e., switches that convert data between standard and
non-standard data sets) are covered entities. A ‘‘business associate’’ provides services to covered entities (directly
or as subcontractors to other business associates) involving arranging, creating, receiving, maintaining, or
transmitting PHI on a covered entity’s behalf. In order to legally provide access to PHI to service providers,
covered entities and business associates must enter into a ‘‘business associate agreement’’ (‘‘BAA’’) with the
service provider that receives PHI on behalf of the entity.

While we are not a covered entity or business associate subject to HIPAA, even when HIPAA does not

apply, according to the U.S. Federal Trade Commission (the ‘‘FTC’’), failing to take appropriate steps to keep
consumers’ personal information secure constitutes unfair acts or practices in or affecting commerce may violate
Section 5(a) of the Federal Trade Commission Act, 15 U.S.C § 45(a). The FTC expects a company’s data
security measures to be reasonable and appropriate in light of the sensitivity and volume of consumer
information it holds, the size and complexity of its business, and the cost of available tools to improve security
and reduce vulnerabilities. Medical data is considered sensitive data that merits stronger safeguards. The FTC’s
guidance for appropriately securing consumers’ personal information is similar to, but prescriptive than, what is
required by the HIPAA Security Rule. In addition, states impose a variety of laws protecting consumer
information, with certain sensitive information such as HIV/Sexually Transmitted Disease status subject to
heightened standards. In addition, federal and state privacy, data security, and breach notification laws, rules and
regulations, and other laws apply to the collection, use and security of personal information, including social
security number, driver’s license numbers, government identifiers, credit card and financial account numbers.
Some state privacy and security laws apply more broadly than HIPAA and associated regulations. For example,
the California Consumer Privacy Act (‘‘CCPA’’) was amended by the California Privacy Rights Act, effective
January 1, 2023. The CCPA, among other things, imposes data privacy obligations for covered companies and
provides new privacy rights to California residents, including the right to opt out of certain disclosures of their
information. The CCPA also creates a private right of action with statutory damages for certain data breaches,
thereby potentially increasing risks associated with a data breach. It remains unclear what, if any, modifications

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will be made to this legislation through implementing regulations or how it will be interpreted and enforced. We
could be subject to enforcement action and litigation exposure if we fail to adhere to these data privacy and
security laws. Virginia, Colorado, Connecticut and Utah have also enacted privacy laws that become effective in
2023 and are similar in many respects to the CCPA.

The Hayfin Credit Facility is subject to acceleration in specified circumstances, which may result in Hayfin
taking possession and disposing of any collateral.

On March 23, 2022 (the ‘‘Hayfin Closing Date’’), we entered into the Hayfin Credit Agreement with Hayfin

(see ‘‘Liquidity and Capital Resources’’). The Hayfin Credit Agreement provides for a senior secured term loan
facility in the principal amount of up to $175.0 million (the ‘‘Hayfin Credit Facility’’), composed of (i) a term
loan made on the Hayfin Closing Date in the principal amount of $150.0 million (the ‘‘Hayfin Closing Date
Loan’’), (ii) a delayed draw term loan in the principal amount of $25.0 million (the ‘‘Hayfin Delayed Draw
Loan’’ and, together with the Hayfin Closing Date Loan, the ‘‘Hayfin Loans’’). The obligation of the lenders to
make the Hayfin Delayed Draw Loan expires on June 30, 2023 is subject to the satisfaction of certain conditions,
including but not limited to, our meeting certain 12-month revenue targets as set forth in the Hayfin Credit
Agreement. The Hayfin Credit Facility has a maturity date of March 23, 2027 (the ‘‘Hayfin Maturity Date’’). The
Hayfin Loans are secured by substantially all of our assets, including our intellectual property. Events of Default
include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of
representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material
contracts and events constituting a change of control. In addition to an increase in the rate of interest on the
Hayfin Loans of 3% per annum, the occurrence of an Event of Default could result in, among other things, the
termination of commitments under the Hayfin Credit Facility, the declaration that all outstanding Loans are
immediately due and payable in whole or in part, and Hayfin taking immediate possession of, and selling, any
collateral securing the Hayfin Loans.

Developments by competitors may render our products or technologies obsolete or non-competitive.

The biotechnology and pharmaceutical industries are intensely competitive and subject to rapid and
significant technological change. Our current products and any future product we may develop will have to
compete with other marketed therapies. In addition, other companies may pursue the development of
pharmaceuticals that target the same diseases and conditions that we are targeting. We face competition from
pharmaceutical and biotechnology companies in the U.S. and abroad. In addition, companies pursuing different
but related fields represent substantial competition. Many of these organizations competing with us have
substantially greater financial resources, larger research and development staffs and facilities, longer product
development history in obtaining regulatory approvals and greater manufacturing and marketing capabilities than
we do. These organizations also compete with us to attract qualified personnel and parties for acquisitions, joint
ventures or other collaborations.

If we are unable to protect our patents, trade secrets or other proprietary rights, if our patents are challenged
or if our provisional patent applications do not get approved, our competitiveness and business prospects may
be materially damaged.

As we move forward in clinical development, we continue to discover novel technologies related to our
products and we may draft patent applications directed to these technologies. We rely on a combination of patent
rights, trade secrets and nondisclosure and non-competition agreements to protect our proprietary intellectual
property, and we will continue to do so. There can be no assurance that our patents, trade secret policies and
practices or other agreements will adequately protect our intellectual property. Our issued patents may be
challenged, found to be over-broad or otherwise invalidated in subsequent proceedings before courts, the U.S.
Patent and Trademark Office or foreign patent offices. Even if enforceable, we cannot provide any assurances
that they will provide significant protection from competition. The processes, systems, and/or security measures
we use to preserve the integrity and confidentiality of our data and trade secrets may be breached, and we may
not have adequate remedies as a result of any such breaches. In addition, our trade secrets may otherwise
become known or be independently discovered by competitors. There can be no assurance that the
confidentiality, nondisclosure and non-competition agreements with employees, consultants and other parties with
access to our proprietary information to protect our trade secrets, proprietary technology, processes and other
proprietary rights, or any other security measures relating to such trade secrets, proprietary technology, processes

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and proprietary rights, will be adequate, will not be breached, that we will have adequate remedies for any
breach, that others will not independently develop substantially equivalent proprietary information or that third
parties will not otherwise gain access to our trade secrets or proprietary knowledge. To the extent that our
consultants, contractors or collaborators use intellectual property owned by others in their work for us, disputes
may arise as to the rights in related or resulting know-how and inventions.

We could lose market exclusivity of a product earlier than expected.

In the pharmaceutical and biotechnology industries, the majority of an innovative product’s commercial
value is realized during its market exclusivity period. In the U.S. and in some other countries, when market
exclusivity expires and generic or biosimilar versions are approved and marketed or when biosimilars are
introduced (even if only for a competing product), there are usually very substantial and rapid declines in a
product’s revenues.

Market exclusivity for our products is based upon patent rights and certain regulatory forms of exclusivity.
The scope of our patent rights may vary from country to country and may also be dependent on the availability
of meaningful legal remedies in a country. The failure to obtain patent and other intellectual property rights, or
limitations on the use or loss of such rights, could be material to us. In some countries, basic patent protections
for our products may not exist because certain countries did not historically offer the right to obtain specific
types of patents and/or we (or our licensors) did not file in those markets. In addition, the patent environment
can be unpredictable and the validity and enforceability of patents cannot be predicted with certainty. Absent
relevant patent protection for a product, once the data exclusivity period expires, generic versions can be
approved and marketed.

Patent rights covering our products may become subject to patent litigation. In some cases, manufacturers
may seek regulatory approval by submitting their own clinical trial data to obtain marketing approval or choose
to launch a generic product ‘‘at risk’’ before the expiration of our patent rights/or before the final resolution of
related patent litigation. Enforcement of claims in patent litigation can be very costly, time-consuming and no
assurance can be given that we will prevail. In addition, any such litigation may divert our management’s
attention from our core business and reduce the resources available for our clinical development, manufacturing
and marketing activities, and consequently have a material and adverse effect on our business and prospects,
regardless of the outcome. There is no assurance that ASCENIV, or any other of our products for which we are
issued a patent, will enjoy market exclusivity for the full time period of the respective patent.

Third parties could obtain patents that may require us to negotiate licenses to conduct our business, and there
can be no assurance that the required licenses would be available on reasonable terms or at all.

We may not be able to operate our business without infringing third-party patents. Numerous U.S. and

foreign patents and pending patent applications owned by third parties exist in fields that relate to the
development and commercialization of IG. In addition, many companies have employed intellectual property
litigation as a way to gain a competitive advantage. It is possible that infringement claims may occur as the
number of products and competitors in our market increases. In addition, to the extent that we gain greater
visibility and market exposure as a public company, we face a greater risk of being the subject of intellectual
property infringement claims. We cannot be certain that the conduct of our business does not and will not
infringe intellectual property or other proprietary rights of others in the U.S. and in foreign jurisdictions. If our
products, methods, processes and other technologies are found to infringe third-party patent rights, we could be
prohibited from manufacturing and commercializing the infringing technology, process or product unless we
obtain a license under the applicable third-party patent and pay royalties or are able to design around such patent.
We may be unable to obtain a license on terms acceptable to us, or at all, and we may not be able to redesign
our products or processes to avoid infringement. Even if we are able to redesign our products or processes to
avoid an infringement claim, our efforts to design around the patent could require significant time, effort and
expense and ultimately may lead to an inferior or more costly product and/or process. Any claim of infringement
by a third party, even those without merit, could cause us to incur substantial costs defending against the claim
and could distract our management from our business. Furthermore, if any such claim is successful, a court could
order us to pay substantial damages, including compensatory damages for any infringement, plus prejudgment
interest and could, in certain circumstances, treble the compensatory damages and award attorney fees. These
damages could be substantial and could harm our reputation, business, financial condition and operating results.
A court also could enter orders that temporarily, preliminarily or permanently prohibit us, our licensees, if any, or

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our customers from making, using, selling, offering to sell or importing one or more of our products or
practicing our proprietary technologies or processes, or could enter an order mandating that we undertake certain
remedial activities. Any of these events could seriously harm our business, operating results and financial
condition.

If we are unable to successfully manage our growth, our business may be harmed.

Our success will depend on the expansion of our commercial and manufacturing activities, supply of plasma

and overall operations and the effective management of our growth, which will place a significant strain on our
management and on our administrative, operational and financial resources. To manage this growth, we must
expand our facilities, augment our operational, financial and management systems and hire and train additional
qualified personnel. Our ability to accomplish each of these objectives may be negatively impacted as a
consequence of the COVID-19 pandemic. If we are unable to manage our growth effectively, our business could
be harmed.

The loss of one or more key members of our management team could adversely affect our business.

Our performance is substantially dependent on the continued service and performance of our management

team, who have extensive experience and specialized expertise in our business. In particular, the loss of
Adam S. Grossman, our President and Chief Executive Officer, could adversely affect our business and operating
results. We do not have ‘‘key person’’ life insurance policies for any members of our management team. We have
employment agreements with each of our executive officers; however, the existence of an employment agreement
does not guarantee retention of members of our management team and we may not be able to retain those
individuals for the duration of or beyond the end of their respective terms. The loss of services of key personnel,
or the inability to attract and retain additional qualified personnel, could result in delays in development or
approval of our product candidates and diversion of management resources.

Cyberattacks and other security breaches could compromise our proprietary and confidential information,
which could harm our business and reputation.

In the ordinary course of our business, we generate, collect and store proprietary information, including
intellectual property and business information. The secure storage, maintenance, and transmission of and access
to this information is important to our operations and reputation. Computer hackers may attempt to penetrate our
computer systems and, if successful, misappropriate our proprietary and confidential information including
e-mails and other electronic communications. Further, while many of our employees and certain suppliers with
whom we do business operate in a remote working environment during the COVID-19 pandemic, the risk of
cybersecurity attacks and data breaches, particularly through phishing attempts, may be increased as we and
third parties with whom we interact leverage our IT infrastructure in unanticipated ways during the ongoing
COVID-19 pandemic. In addition, an employee, contractor, or other third party with whom we do business may
attempt to obtain such information and may purposefully or inadvertently cause a breach involving such
information. While we have certain safeguards in place to reduce the risk of and detect cyberattacks, including a
Company-wide cybersecurity policy, our information technology networks and infrastructure may be vulnerable
to unpermitted access by hackers or other breaches, or employee error or malfeasance. Any such compromise of
our data security and access to, or public disclosure or loss of, confidential business or proprietary information
could disrupt our operations, damage our reputation, provide our competitors with valuable information and
subject us to additional costs which could adversely affect our business.

If we are unable to hire and retain a substantial number of qualified personnel, our ability to sustain and
grow our business may be harmed.

Our success depends in part on our ability to attract, motivate, and retain a sufficient number of qualified
employees across various areas of our operations, such as research and development, manufacturing operations,
and sales, who understand and appreciate our strategy and culture and are able to contribute to our mission. We
will need to hire additional qualified personnel with expertise in commercialization, sales, marketing, medical
affairs, reimbursement, government regulation, formulation, quality control, manufacturing, finance, general and
operational management and plasma collections. In particular, over the next 12-24 months, we expect to hire
several new employees devoted to our plasma collection centers, commercialization, sales, marketing, medical
and scientific affairs, regulatory affairs, quality control, finance and general and operational management.

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Qualified individuals of the requisite caliber and number needed to fill these positions may be in short supply in
some areas. We compete for qualified individuals with numerous biopharmaceutical companies, universities and
other research institutions. Competition for such individuals is intense, and we cannot assure you that our search
for such personnel will be successful, particularly if the COVID-19 pandemic causes significant changes in the
competitive market for such personnel, including but not limited to overall increases in the cost of labor or travel
restrictions related to COVID-19, prevent us from being able to hire qualified personnel. If we are unable to hire
and retain personnel capable of consistently performing at a high level, our business and operations could be
materially adversely affected. Additionally, any material increases in existing employee turnover rates or
increases in labor costs could have a material adverse effect on our business, financial condition or operating
results.

We currently collect human blood plasma at our ADMA BioCenters facilities, and if we cannot maintain FDA
approval for these facilities or obtain FDA approval for additional facilities that we construct or acquire rights
to, we may be adversely affected and may not be able to sell or use this human blood plasma for future
commercial purposes.

We intend to maintain FDA approval of our current and future ADMA BioCenters collection facilities for
the collection of human blood plasma and we may seek other governmental and regulatory approvals for these
facilities. Collection facilities are subject to FDA and potentially other governmental and regulatory inspections
and extensive regulation, including compliance with current cGMP and blood standards and FDA and other
governmental approvals, as applicable. Failure to comply with applicable governmental regulations or to receive
applicable approvals for our current or future facilities may result in enforcement actions, such as adverse
inspection reports, warning or untitled letters, product recalls or seizures, monetary sanctions, injunctions to halt
manufacture and distribution of products, civil or criminal sanctions, costly litigation, refusal of regulatory
authority approvals and licenses, restrictions on operations or withdrawal of existing approvals and licenses, any
of which may significantly delay or suspend our operations for these locations, potentially having a material
adverse effect on our ability to manufacture our products or offer for sale plasma collected at the affected sites.
Failure to comply with applicable governmental regulations may also impact the ultimate quality and compliance
of our finished biologic products, which may have a material adverse effect on our business.

We manufacture our current marketed products, pipeline products, and products for third parties in our
manufacturing and testing facilities, and if we or our vendors cannot maintain appropriate FDA status for
these facilities, we may be adversely affected, and may not be able to sell, manufacture or commercialize these
products.

There are no assurances we will be able to maintain compliance with all FDA or other regulations.

Moreover, to the extent that we use third-party vendors to fulfill our regulatory or contractual requirements, these
third-party vendors may perform activities for themselves or other clients and we may not be privy to all
regulatory findings or issues discovered by the FDA or other regulatory agencies. Such findings, which are out of
our control, may adversely affect our ability to continue to work with these vendors, or our ability to release
commercial drug product or perform necessary testing or other actions for us or our clients, which may be
required in order to remain FDA compliant or to commercialize our products. If we are not able to maintain
manufacturing compliance at our facilities or our vendors’ facilities for our products and product candidates, we
may not be able to successfully develop and commercialize our products and product candidates and we may
face potential contractual or regulatory actions, which would have an adverse impact on our business.

We may incur substantial liabilities and may be required to limit commercialization of our products in
response to product liability lawsuits.

The testing and marketing of medical products entail an inherent risk of product liability. If we cannot
successfully defend ourselves against product liability claims, we may incur substantial liabilities or be required
to limit commercialization of our products. Product liability claims may also result in recalls and/or regulatory
enforcement actions. Even successful defense, however, could impair our results of operations. Our inability to
obtain and maintain sufficient product liability insurance at an acceptable cost to protect against potential product
liability claims could prevent or inhibit the commercialization of pharmaceutical products we develop, either
alone or with collaborators.

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Many of our business practices are subject to scrutiny by federal and state regulatory authorities, as well as to
lawsuits brought by private citizens under federal and state laws. Failure to comply with applicable law or an
adverse decision in lawsuits may result in adverse consequences to us.

The laws governing our conduct in the U.S. are enforceable on the federal, state and local levels by
criminal, civil and administrative sanctions. Violations of laws such as the Federal Food, Drug, and Cosmetic
Act, the Social Security Act (including the Anti-Kickback Statute), the Public Health Service Act, the civil and
criminal federal False Claims Act, the civil monetary penalty statute, requirements regarding the reporting and
repayment of overpayments, other fraud and abuse laws and any regulations promulgated under the authority of
the preceding, may result in significant criminal and/or civil sanctions, including jail sentences, fines or exclusion
from federal and state programs, pursuant to enforcement actions by DOJ, Medicare, Medicaid, OIG and other
regulatory authorities. Similarly, the violation of applicable laws, rules and regulations of states, including the
State of Florida, with respect to the manufacture and marketing of our products and product candidates may
result in significant criminal and/or civil sanctions, including jail sentences, fines or exclusion from applicable
state programs. There can be no assurance that our activities will not come under the scrutiny of federal and/or
state regulators and other government authorities or that our practices will not be found to violate applicable
laws, rules and regulations or prompt lawsuits by private citizen ‘‘relators’’ under federal or state false claims
laws.

For example, under the Anti-Kickback Statute and similar state laws and regulations, the offer or payment of
anything of value to induce or reward patient referrals, or in return for purchasing, leasing, ordering or arranging
for or recommending the purchase, lease, or ordering of any item or service reimbursable in whole or in part by
a federal healthcare program is prohibited. This places constraints on the marketing and promotion of products
and on common business arrangements, such as discounted terms and volume incentives for customers in a
position to recommend or choose products for patients, such as physicians and hospitals, and these practices can
result in substantial legal penalties, including, among others, exclusion from participation in the Medicare and
Medicaid programs. Arrangements with referral sources such as purchasers, group purchasing organizations,
healthcare organizations, physicians and pharmacists must be structured with care to comply with applicable
requirements. Legislators and regulators may seek to further restrict the scope of financial relationships that are
considered appropriate. For example, HHS recently promulgated a regulation that is effective in two phases.
First, the regulation excludes from the definition of ‘‘remuneration’’ limited categories of (a) PBM rebates or
other reductions in price to a plan sponsor under Medicare Part D or a Medicaid Managed Care Organization
plan reflected in point-of sale reductions in price and (b) PBM service fees. Second, effective January 1, 2023,
the regulation expressly provides that rebates to plan sponsors under Medicare Part D either directly to the plan
sponsor under Medicare Part D, or indirectly through a pharmacy benefit manager, will not be protected under
the Anti-Kickback Statute discounts safe harbor. Recent legislation delayed implementation of this portion of the
rule until January 1, 2026, and previously proposed legislation would permanently prohibit implementation of the
rule beginning in 2026.

Also, certain business practices, such as payments of consulting fees to healthcare professionals, sponsorship

of educational or research grants, charitable donations, interactions with healthcare professionals who prescribe
products for uses not approved by the FDA and financial support for continuing medical education programs,
must be conducted within narrowly prescribed and controlled limits to avoid any possibility of wrongfully
influencing healthcare professionals to prescribe or purchase particular products or as a reward for past
prescribing. Under the Patient Protection and Affordable Care Act (‘‘ACA’’) and the companion Health Care and
Education Reconciliation Act, which together are referred to as the ‘‘Healthcare Reform Law,’’ payments and
transfers of value by pharmaceutical manufacturers of drugs, devices, biologics and medical supplies for which
payment is available under Medicare, Medicaid or the Children’s Health Insurance Program (with certain
exceptions) to or at the request of covered recipients, such as, but limited to, U.S.-licensed physicians, physician
assistants, nurse practitioners, clinical nurse specialists and certified registered nurse anesthetists and U.S.
teaching hospitals, must be tracked and reported to CMS, and are publicly disclosed. Such ‘‘applicable
manufacturers’’ are also required to report certain ownership interests held by physicians and their immediate
family members. A number of states have similar laws in place. Additional and stricter prohibitions could be
implemented by federal and state authorities. Where such practices have been found to be improper incentives to

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use such products, government investigations and sanctions against manufacturers have resulted in substantial
fines, penalties and damages. Many manufacturers have been required to enter into consent decrees or orders that
prescribe allowable corporate conduct and/or Corporate Integrity Agreements that impose ongoing compliance
requirements on a manufacturer.

Failure to satisfy requirements under the Federal Food, Drug, and Cosmetic Act can also result in penalties,

as well as requirements to enter into consent decrees or orders that prescribe allowable corporate conduct. In
addition, while regulatory authorities generally do not regulate physicians’ discretion in their choice of treatments
for their patients, they do restrict communications by manufacturers on unapproved uses of approved products or
on the potential safety and efficacy of unapproved products in development. Companies in the U.S., Canada and
the European Union cannot promote approved products for other indications that are not specifically approved by
the competent regulatory authorities such as the FDA in the U.S., nor can companies promote unapproved
products. In limited circumstances, companies may disseminate to physicians information regarding unapproved
uses of approved products or results of studies involving investigational products. If such activities fail to comply
with applicable regulations and guidelines of the various regulatory authorities, we may be subject to warnings
from, or enforcement action by, these authorities. Furthermore, if such activities are prohibited, it may harm
demand for our products. Promotion of unapproved drugs or devices or unapproved indications for a drug or
device is a violation of the Federal Food, Drug, and Cosmetic Act and subjects us to civil and criminal sanctions.
Furthermore, sanctions under the federal False Claims Act have been brought against companies accused of
promoting off-label uses of drugs, because such promotion induces unapproved the use and subsequent claims for
reimbursement under Medicare and other federal programs. Similar actions for off-label promotion have been
initiated by several states for Medicaid fraud. The Healthcare Reform Law significantly strengthened provisions
of the federal False Claims Act, the federal Anti-Kickback Statute that applies to government healthcare
programs, and other healthcare fraud provisions, leading to the possibility of greatly increased lawsuits by
whistleblowers for perceived violations. Violations or allegations of violations of the foregoing restrictions could
materially and adversely affect our business.

We are required to report detailed pricing information, net of included discounts, rebates and other
concessions, to CMS for the purpose of calculating national reimbursement levels, certain federal prices and
certain federal and state rebate obligations. Inaccurate or incomplete reporting of pricing information could result
in criminal and/or civil liability under the federal False Claims Act, the federal Anti-Kickback Statute and various
other laws, rules and regulations.

We have established systems for collecting and reporting this data accurately to CMS and have instituted a

compliance program to assure that the information collected is complete in all respects. If we report pricing
information that is not accurate to the federal government, we could be subject to fines and other sanctions that
could adversely affect our business. If we choose to pursue clinical development and commercialization in the
European Union or otherwise market and sell our products outside of the U.S., we must obtain and maintain
regulatory approvals and comply with regulatory requirements in such jurisdictions. The approval procedures
vary among countries in complexity and timing. We may not obtain approvals from regulatory authorities outside
the U.S. on a timely basis, if at all, which would preclude us from commercializing products in those markets.

In addition, some countries, particularly the countries of the European Union, regulate the pricing of

prescription pharmaceuticals. In these countries, pricing discussions with governmental authorities can take
considerable time after the receipt of marketing approval for a product. To obtain reimbursement or pricing
approval in some countries, we may be required to conduct a clinical trial that compares the cost-effectiveness of
our product candidate to other available therapies. Such trials may be time-consuming and expensive and may
not show an advantage in efficacy for our products. If reimbursement of our products is unavailable or limited in
scope or amount, or if pricing is set at unsatisfactory levels, in either the U.S. or the European Union, we could
be adversely affected.

Also, under the U.S. Foreign Corrupt Practices Act, the U.S. has increasingly focused on regulating the
conduct by U.S. businesses occurring outside of the U.S., generally prohibiting remuneration to foreign officials
for the purpose of obtaining or retaining business. To enhance compliance with applicable healthcare laws, and
mitigate potential liability in the event of noncompliance, regulatory authorities such as the HHS Office of
Inspector General (the ‘‘OIG’’) have recommended the adoption and implementation of a comprehensive
healthcare compliance program that generally contains the elements of an effective compliance and ethics
program described in Section 8B2.1 of the U.S. Sentencing Commission Guidelines Manual. Increasing numbers

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of U.S.-based pharmaceutical companies have such programs. We will need to adopt healthcare compliance and
ethics programs that would incorporate the OIG’s recommendations and voluntary industry guidelines and train
our employees. Such a program may be expensive and may not provide assurance that we will avoid compliance
issues.

We are also required to comply with the applicable laws, rules, regulations and permit requirements of the

various states and localities in which our business operates, including the State of Florida where our
manufacturing facility is located. These regulations and permit requirements are not always in concert with
applicable federal laws, rules and regulations regulating our business. Although compliant with applicable federal
requirements, we may be required to comply with additional state and local laws, rules, regulations and permits.
Failure to appropriately comply with such state and local requirements could result in temporary or long-term
cessation of our manufacturing operations, as well as fines and other sanctions. Any such penalties may have a
material adverse effect on our business and results of operations.

We are subject to extensive and rigorous governmental regulation, including the requirement of FDA and
other federal, state and local business regulatory approvals before our products and product candidates may
be lawfully marketed, and our ability to obtain regulatory approval of our products and product candidates
from the FDA in a timely manner, access the public markets and obtain necessary capital in order to properly
capitalize and continue our operations may be hindered by inadequate funding for the FDA, the SEC and
other state and local government agencies.

Both before and after the approval of our products, our products, operations, facilities, suppliers and CROs

are subject to extensive regulation by federal, state and local governmental authorities in the U.S. and other
countries, with regulations differing from country to country. In the U.S., the FDA regulates, among other things,
the pre-clinical and nonclinical testing, clinical trials, manufacturing, safety, efficacy, potency, labeling, storage,
record keeping, quality systems, advertising, promotion, sale and distribution of therapeutic products. Failure to
comply with applicable requirements could result in, among other things, one or more of the following actions:
notices of violation, untitled letters, warning letters, CRLs, fines and other monetary penalties, unanticipated
expenditures, delays in approval or refusal to approve a product or product candidate, product recall or seizure,
interruption of manufacturing or clinical trials, operating restrictions, injunctions and criminal prosecution. Our
products and product candidates cannot be lawfully marketed in the U.S. without FDA and other federal, state
and local business regulatory approvals. Any failure to receive the marketing approvals necessary to
commercialize our products or product candidates could harm our business.

Additionally, the ability of the FDA and other federal, state and local business regulatory agencies to review

and approve products and product candidates can be affected by a variety of factors, including government
budget and funding levels, ability to hire and retain key personnel and to accept the payment of user fees, as
well as statutory, regulatory, and policy changes. Average review times at the FDA and other federal, state and
local business regulatory agencies have fluctuated in recent years as a result. In addition, government funding of
the SEC and other government agencies on which our operations may rely, including those that fund research
and development activities, is subject to the political process, which is inherently fluid and unpredictable.
Disruptions at the FDA and other agencies may also slow the time necessary for products and product candidate
submissions to be reviewed and/or approved by necessary government agencies, which would adversely affect
our business. For example, over the last several years, including in December 2018 and January 2019, the U.S.
government has shut down several times and certain regulatory agencies, such as the FDA and the SEC, have
had to furlough critical employees and stop critical activities. If a prolonged government shutdown reoccurs, it
could significantly impact the ability of the FDA to timely review and process our regulatory submissions and
other reporting requirements which could have a material adverse effect on our business. Further, future
government shutdowns could impact our ability to access the public markets and obtain necessary capital in
order to properly capitalize and continue our operations.

The manufacturing processes for plasma-based biologics are complex and involve biological intermediates that
are susceptible to contamination and impurities.

Plasma is a raw material that is susceptible to damage and contamination and may contain human
pathogens, any of which would render the plasma unsuitable as raw material for further manufacturing. For
instance, improper storage of plasma, by us or third-party suppliers, may require us to destroy some of our raw
material. If unsuitable plasma is not identified and discarded prior to the release of the plasma to the

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manufacturing process, it may be necessary to discard intermediate or finished product made from that plasma or
to recall any finished product released to the market, resulting in a charge to cost of product revenue. The
manufacture of our plasma products is an extremely complex process of fractionation, purification, testing, filling
and finishing. Our products can become non-releasable or otherwise fail to meet our stringent specifications or
regulatory agencies’ specifications through a failure in one or more of these process steps. We may detect
instances in which an unreleased product was produced without adherence to our manufacturing procedures or
plasma used in our production process was not collected or stored in a compliant manner consistent with our
cGMP or other regulations. Such an event of noncompliance would likely result in our determination that the
implicated products should not be released or maybe replaced or withdrawn from the market and therefore
should be destroyed. Once manufactured, our plasma-derived products must be handled carefully and kept at
appropriate temperatures. Our failure, or the failure of third parties that supply, test, ship or distribute our
products or product components to properly care for our products, may require that those products be destroyed.
Even if handled properly, biologics may form or contain particulates or have other issues or problems after
storage which may require products to be destroyed or recalled. While we expect to write off small amounts of
work-in-process inventory in the ordinary course of business due to the complex nature of plasma, our processes
and our products, unanticipated events may lead to write-offs and other costs materially in excess of our
expectations and the reserves we have established for these purposes. Such write-offs or losses and other costs
could cause material fluctuations in our results of operations. Product or component quality issues may also
result in regulatory enforcement actions, liability, corrective actions and recalls, among other actions, as
described elsewhere in this annual report.

Furthermore, contamination of our products could cause investors, consumers, or other third parties with
whom we conduct business to lose confidence in the reliability of our manufacturing procedures, which could
adversely affect our revenues. In addition, faulty or contaminated products that are unknowingly distributed could
result in patient harm, threaten the reputation of our products and expose us to product liability damages and
claims from companies for whom we do contract manufacturing.

Our ability to continue to produce safe and effective products depends on the safety of our plasma supply,
testing by third parties and the timing of receiving the testing results, and manufacturing processes against
transmittable diseases.

Despite overlapping safeguards, including the screening of donors and other steps to remove or inactivate

viruses and other infectious disease-causing agents, the risk of transmissible disease through blood plasma
products cannot be entirely eliminated. For example, since plasma-derived therapeutics involves the use and
purification of human plasma, there has been concern raised about the risk of transmitting HIV, prions, West Nile
virus, H1N1 virus or ‘‘swine flu’’ and other blood-borne pathogens through plasma-derived products. There are
also concerns about the future transmission of H5N1 virus, or ‘‘bird flu.’’ In the 1980s, thousands of
hemophiliacs worldwide were infected with HIV through the use of contaminated Factor VIII. Other producers of
Factor VIII, though not us, were defendants in numerous lawsuits resulting from these infections. New infectious
diseases emerge in the human population from time to time. If a new infectious disease has a period during
which time the causative agent is present in the bloodstream but symptoms are not present, it is possible that
plasma donations could be contaminated by that infectious agent. Typically, early in an outbreak of a new
disease, tests for the causative agent do not exist. During this early phase, we must rely on screening of donors
for behavioral risk factors or physical symptoms to reduce the risk of plasma contamination. Screening methods
are generally less sensitive and specific than a direct test as a means of identifying potentially contaminated
plasma units. During the early phase of an outbreak of a new infectious disease, our ability to manufacture safe
products would depend on the manufacturing process’ capacity to inactivate or remove the infectious agent. To
the extent our manufacturing processes are inadequate to inactivate or remove an infectious agent, our ability to
manufacture and distribute our products would be impaired. If a new infectious disease were to emerge in the
human population or if there were a reemergence of an infectious disease, the regulatory and public health
authorities could impose precautions to limit the transmission of the disease that would impair our ability to
procure plasma, manufacture our products or both. Such precautionary measures could be taken before there is
conclusive medical or scientific evidence that a disease poses a risk for plasma-derived products. In recent years,
new testing and viral inactivation methods have been developed that more effectively detect and inactivate
infectious viruses in collected plasma. There can be no assurance, however, that such new testing and
inactivation methods will adequately screen for, and inactivate, infectious agents in the plasma used in the
production of our products.

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We could become supply-constrained and our financial performance would suffer if we cannot obtain
adequate quantities of FDA-approved source plasma with proper specifications or other necessary raw
materials.

In order for plasma to be used in the manufacturing of our products, the individual centers at which the
plasma is collected must generally be licensed by the FDA and approved by the regulatory authorities of any
country in which we may wish to commercialize our products. When we open a new plasma center, and on an
ongoing basis after licensure, it must be inspected by the FDA for compliance with cGMP and other regulatory
requirements. Therefore, even if we are able to construct new plasma collection centers to complement our
current plasma collection facilities, an unsatisfactory inspection could prevent a new center from being licensed
or risk the suspension or revocation of an existing license, among other enforcement actions. We do not and will
not have adequate plasma to manufacture our products. Therefore, we are reliant on the purchase of plasma from
third parties and the collection of plasma from our FDA-approved plasma collection centers to manufacture our
products. We can give no assurances that appropriate plasma will be available to us on commercially reasonable
terms, or at all, to manufacture our products. Further, the COVID-19 pandemic resulted in significant constraints
in raw material supply across various different industries, including the supply of plasma. It is possible that in
the future, pandemics and government responses thereto will have an adverse effect on our ability to source
plasma from donors in quantity and quality sufficient for our manufacturing processes. In order to maintain a
plasma center’s license, its operations must continue to conform to cGMP and other regulatory requirements. In
the event that we determine that plasma was not collected in compliance with cGMP and other applicable
regulatory requirements, we may be unable to use and may ultimately destroy plasma collected from that center,
which would be recorded as a charge to cost of product revenue. Additionally, if non-compliance in the plasma
collection process is identified after the impacted plasma has been pooled with compliant plasma from other
sources, entire plasma pools, in-process intermediate materials and final products could be impacted.
Consequently, we could experience significant inventory impairment provisions and write-offs which could
adversely affect our business and financial results. We plan to increase our supplies of plasma for use in the
manufacturing processes through increased purchases of plasma from third-party suppliers as well as collections
from our existing ADMA BioCenters plasma collection facilities. This strategy is dependent upon our ability to
maintain a cGMP compliant environment at our plasma collection facilities and to expand production and attract
donors to our facilities. There is no assurance that the FDA will inspect and license any of our current or future
unlicensed plasma collection facilities in a timely manner consistent with our production plans. If we misjudge
the readiness of a center for an FDA inspection, we may lose credibility with the FDA and cause the FDA to
more closely examine all of our operations. Such additional scrutiny could materially hamper our operations and
our ability to increase plasma collections. Our ability to expand production and increase our plasma collection
facilities to more efficient production levels may be affected by changes in the economic environment and
population in selected regions where ADMA BioCenters operates its current or future plasma facilities, by the
entry of competitive plasma centers into regions where ADMA BioCenters operates such centers, by misjudging
the demographic potential of individual regions where ADMA BioCenters expects to expand production and
attract new donors, by unexpected facility related challenges, or by unexpected management challenges at
selected plasma facilities held by us from time to time.

Additionally, our supply contract with Grifols for the purchase of normal source plasma (‘‘NSP’’) expired on

December 31, 2022. There can be no assurances that we will be able to obtain an adequate supply of NSP from
other third-party suppliers or be able to collect NSP in the same quantities, or at all, through our ADMA
BioCenters plasma collection facilities at a cost that is not higher than the price we paid to Grifols for NSP. If
our costs to obtain NSP through collections at our ADMA BioCenters plasma collection facilities or from other
third-party suppliers are higher than what we paid to Grifols under our supply contract, our liquidity and results
of operations could be adversely impacted.

Our ability to commercialize our products, alone or with collaborators, will depend in part upon the extent to
which reimbursement will be available from governmental agencies, health administration authorities, private
health maintenance organizations and health insurers and other healthcare payers, and also depends upon the
approval, timing and representations by the FDA or other governmental authorities for our product
candidates.

Our ability to generate product revenues will be diminished if our products sell for inadequate prices or

patients are unable to obtain adequate levels of insurance coverage. Significant uncertainty exists as to the
reimbursement status of newly approved healthcare products, as well as to the timing, language, specifications

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and other details pertaining to the approval of such products. Healthcare payers, including Medicare, are
challenging the prices charged for medical products and services. Government and other healthcare payers
increasingly attempt to contain healthcare costs by limiting both coverage and the level of reimbursement for
products. Even if one of our product candidates is approved by the FDA, insurance coverage may not be
available, and reimbursement levels may be inadequate, to cover such product. If government and other
healthcare payers do not provide adequate coverage and reimbursement levels for one of our products, once
approved, market acceptance of such product could be reduced. Prices in many countries, including many in
Europe, are subject to local regulation and certain pharmaceutical products, such as plasma-derived products, are
subject to price controls in several of the world’s principal markets, including many countries within the
European Union. In the U.S., where pricing levels for our products are substantially established by third-party
payers, including Medicare, if payers reduce the amount of reimbursement for a product, it may cause groups or
individuals dispensing the product to discontinue administration of the product, to administer lower doses, to
substitute lower cost products or to seek additional price-related concessions. These actions could have a negative
effect on our financial results, particularly in cases where our products command a premium price in the
marketplace, or where changes in reimbursement induce a shift in the site of treatment. The existence of direct
and indirect price controls and pressures over our products could materially adversely affect our financial
prospects and performance.

The biosimilar pathway established as part of healthcare reform may make it easier for competitors to market
biosimilar products.

The Healthcare Reform Law introduced an abbreviated licensure pathway for biological products that are

demonstrated to be biosimilar to an FDA-licensed biological product. A biological product may be demonstrated
to be ‘‘biosimilar’’ if data shows that, among other things, the product is ‘‘highly similar’’ to an already-approved
biological product, known as a reference product, and has no clinically meaningful differences in terms of safety
and effectiveness from the reference product. The law provides that a biosimilar application may be submitted as
soon as four years after the reference product is first licensed, and that the FDA may not make approval of an
application effective until 12 years after the reference product was first licensed. Since the enactment of the law,
the FDA has issued several guidance documents to assist sponsors of biosimilar products in preparing their
approval applications. Moreover, in an effort to increase competition in the biologic product marketplace,
Congress, the executive branch, and the FDA have taken certain legislative and regulatory steps. For example, in
2020 the FDA finalized a guidance to facilitate biologic product importation. The 2020 Further Consolidated
Appropriations Act included provisions requiring that sponsors of approved biologic products provide samples of
the approved products to persons developing biosimilar products within specified timeframes, in sufficient
quantities, and on commercially reasonable market-based terms. The FDA approved the first biosimilar product in
2015 and has since approved a number of biosimilars. As a result of the biosimilar pathway in the U.S., we
expect in the future to face greater competition from biosimilar products, including a possible increase in patent
challenges.

The implementation of the Healthcare Reform Law in the U.S. may adversely affect our business.

Through the March 2010 adoption of the Healthcare Reform Law in the U.S., substantial changes are being
made to the current system for paying for healthcare in the U.S., including programs to extend medical benefits
to millions of individuals who currently lack insurance coverage. This reform establishes significant cost-saving
measures with respect to several government healthcare programs, including Medicaid and Medicare Parts B and
D, that may cover the cost of our future products, and these efforts could have a material adverse impact on our
future financial prospects and performance. For example, in order for a manufacturer’s products to be reimbursed
by federal funding under Medicaid, the manufacturer must enter into a Medicaid rebate agreement with the
Secretary of HHS and pay certain rebates to the states based on utilization data provided by each state to the
manufacturer and to CMS and pricing data provided by the manufacturer to the federal government. The states
share these savings with the federal government, and sometimes implement their own additional supplemental
rebate programs. Under the Medicaid drug rebate program, the rebate amount for most branded drug products
was previously equal to a minimum of 15.1% of the Average Manufacturer Price (‘‘AMP’’) or the AMP less Best
Price, whichever is greater, plus the inflation penalty if applicable. Effective January 1, 2010, the Healthcare
Reform Law generally increased the size of the Medicaid rebates paid by manufacturers for single source and
innovator multiple source (brand name) drug products from a minimum of 15.1% to a minimum of 23.1% of
AMP, subject to certain exceptions, plus the inflation penalty if applicable. For non-innovator multiple source

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(generic) products, the rebate percentage was increased from a minimum of 11.0% to a minimum of 13.0% of
AMP, and the Bipartisan Budget Act of 2015 established a new inflation penalty for these drugs. In 2010, the
Healthcare Reform Law also newly extended the Medicaid drug rebate obligation to prescription drugs covered
by Medicaid managed care organizations. These increases in required rebates may adversely affect our future
financial prospects and performance. In order for a pharmaceutical product to receive federal reimbursement
under the Medicare Part B and Medicaid programs or to be sold directly to U.S. government agencies, the
manufacturer must extend discounts to entities eligible to participate in the 340B drug pricing program. The
required 340B discount on a given product is calculated based on the AMP and Medicaid rebate amounts
reported by the manufacturer. As the 340B drug pricing is determined based on AMP and Medicaid rebate data,
the revisions to the Medicaid rebate formula and AMP definition described above could cause the required 340B
discount to increase, and recent regulations have established a civil monetary penalty for failure to refund these
overcharges.

Effective in 2011, the Healthcare Reform Law imposed an annual, nondeductible fee on any entity that
manufactures or imports certain branded prescription drugs and biologic agents, apportioned among these entities
according to their market share in certain government healthcare programs. These fees may adversely affect our
future financial prospects and performance.

The Healthcare Reform Law also created new rebate obligations for our products under Medicare Part D, a
partial, voluntary prescription drug benefit created by the U.S. federal government primarily for persons 65 years
old and over. The Part D drug program is administered through private insurers that contract with CMS.
Beginning in 2011, the Healthcare Reform Law generally requires that in order for a drug manufacturer’s
products to be reimbursed under Medicare Part D, the manufacturer must enter into a Medicare Coverage Gap
Discount Program agreement with the Secretary of HHS, and reimburse each Medicare Part D plan sponsor an
amount now equal to 70% savings for the manufacturer’s brand name drugs and biologics which the Part D plan
sponsor has provided to its Medicare Part D beneficiaries who are in the ‘‘donut hole’’ (or a gap in Medicare
Part D coverage for beneficiaries who have expended certain amounts for drugs). The Part D plan sponsor is
responsible for calculating and providing the discount directly to its beneficiaries and for reporting these amounts
paid to CMS’s contractor, which notifies drug manufacturers of the rebate amounts it must pay to each Part D
plan sponsor. The rebate requirement could adversely affect our future financial performance, particularly if
contracts with Part D plans cannot be favorably renegotiated or the Part D plan sponsors fail to accurately
calculate payments due in a manner that overstates our rebate obligation. Regarding access to our products, the
Healthcare Reform Law established and provided significant funding for a Patient-Centered Outcomes Research
Institute to coordinate and fund Comparative Effectiveness Research (‘‘CER’’). While the stated intent of CER is
to develop information to guide providers to the most efficacious therapies, outcomes of CER could influence the
reimbursement or coverage for therapies that are determined to be less cost-effective than others. Should any of
our products be determined to be less cost effective than alternative therapies, the levels of reimbursement for
these products, or the willingness to reimburse at all, could be impacted, which could materially impact our
future financial prospects and results.

There have been repeated legal challenges and attempts by Congress to repeal or change the Healthcare

Reform Law and the possibility of future challenges or legislative changes contribute to the uncertainty of the
ongoing implementation and impact of the law and also underscores the potential for additional reform going
forward. We cannot assure that the law, as currently enacted or as amended in the future, will not adversely
affect our business and financial results and we cannot predict how future federal or state legislative or
administrative changes relating to healthcare reform will affect our business. Certain provisions of enacted or
proposed legislative changes may negatively impact coverage and reimbursement of, or rebates paid by
manufacturers for, healthcare items and services. We will continue to evaluate the effect that the Healthcare
Reform Law and any potential changes may have on our business.

Corporate responsibility, specifically related to Environmental, Social and Governance (‘‘ESG’’) matters, may
impose additional costs and expose us to new risks.

Public ESG and sustainability reporting is becoming more broadly expected by investors, stockholders and
other third parties. Certain organizations that provide corporate governance and other corporate risk information
to investors and stockholders have developed, and others may in the future develop, scores and ratings to
evaluate companies and investment funds based upon ESG or ‘‘sustainability’’ metrics. Many investment funds
focus on positive ESG business practices and sustainability scores when making investments and may consider a

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company’s ESG or sustainability scores as a reputational or other factor in making an investment decision. In
addition, investors, particularly institutional investors, use these scores to benchmark companies against their
peers and if a company is perceived as lagging, these investors may engage with such company to improve ESG
disclosure or performance and may also make voting decisions, or take other actions, to hold these companies
and their boards of directors accountable. Board diversity is an ESG topic that is, in particular, receiving
heightened attention by investors, stockholders, lawmakers and listing exchanges. Certain states have passed laws
requiring companies to meet certain gender and ethnic diversity requirements on their boards of directors. We
may face reputational damage in the event our corporate responsibility initiatives or objectives, including with
respect to board diversity, do not meet the standards set by our investors, stockholders, lawmakers, listing
exchanges or other constituencies, or if we are unable to achieve an acceptable ESG or sustainability rating from
third-party rating services. A low ESG or sustainability rating by a third-party rating service could also result in
the exclusion of our common stock from consideration by certain investors who may elect to invest with our
competition instead. Ongoing focus on corporate responsibility matters by investors and other parties as described
above may impose additional costs or expose us to new risks.

Risks Relating to our Finances, Capital Requirements and Other Financial Matters

We may require additional funding and may be unable to raise capital when needed, which would adversely
affect our operations and could force us to delay, curtail or eliminate some of our commercialization efforts or
one or more of our research and development programs.

Our operations have consumed substantial amounts of cash since inception. For the years ended

December 31, 2022 and 2021, we had negative cash flows from operations of approximately $59.5 million and
$112.4 million, respectively. We expect to continue to spend substantial amounts for collecting plasma at our
plasma collection centers, plasma center expansion, maintaining our plasma centers, procurement of raw material
plasma and other raw materials necessary to scale up our manufacturing operations, commercial product launches
and capacity expansion at the Boca Facility. In addition, our end-to-end production cycle from collecting and
procuring raw material source plasma to commercial release of finished product can take between seven and
12 months or potentially longer, requiring substantial investments in raw material plasma and other
manufacturing materials. We expect that we will not be able to generate a sufficient amount of product revenue
to achieve profitability until the beginning of 2024 and if we do not achieve positive cash flow by the beginning
of 2024 we may need to continue to finance our operations through additional equity or debt financings or
corporate collaboration and licensing agreements. We currently anticipate, based upon our projected revenue and
expenditures, that our current cash, cash equivalents and accounts receivable will be sufficient to fund our
operations, as currently conducted, through the end of the first quarter of 2024, at which time we believe we will
begin to generate positive cash flow from operations. This time frame may change based upon how quickly we
are able to execute on our commercialization efforts and operational initiatives and whether or not the
assumptions underlying our projected revenues and expenses are correct. If we are unable to generate sufficient
revenue to achieve positive cash flow by the beginning of 2024, we may need to raise additional capital and if
such capital is not available due to widespread liquidity constraints or significant market instability that could
result from the COVID-19 pandemic, we will have to delay, curtail or eliminate our commercialization efforts or
our product development activities.

We may not have cash available to us in amounts sufficient to enable us to make interest or principal
payments on our indebtedness when due.

The Hayfin Credit Facility provides for a senior secured term loan facility in an aggregate principal amount
of up to $175.0 million, of which $150.0 million has been drawn down and is currently outstanding. Borrowings
under the Hayfin Credit Facility bear interest at a rate per annum equal to 9.5% plus the greater of (i) one or
three-month SOFR as we elect and (ii) 1.25%, as more fully described in ‘‘Liquidity and Capital Resources’’;
provided, however, that upon, and during the continuance of, an Event of Default, the interest rate will
automatically increase by an additional 300 basis points. We are currently required to make monthly payments of
interest during the term of the Hayfin Credit Facility of approximately $1.5 million, with all principal and unpaid
interest due at maturity. In addition, our monthly interest rate obligation is subject to rising interest rates. The
Hayfin Credit Facility has a maturity date of March 23, 2027, subject to acceleration pursuant to the Hayfin
Credit Agreement, including upon an Event of Default. All of our obligations under the Hayfin Credit Facility
are secured by a first-priority lien and security interest in substantially all of our and our subsidiaries’ tangible
and intangible assets, including intellectual property, and all of the equity interests in our subsidiaries.

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Our current cash, cash equivalents and accounts receivable may not be sufficient to repay all of our current

outstanding debt obligations as they mature. If we are unable to achieve sufficient positive cash flow to repay
our outstanding debt obligations as they mature, we will need to obtain additional financing in the amounts
necessary to repay our outstanding debt obligations when due. If we are unable to achieve positive cash flow
sufficient to repay our outstanding debt obligations when they mature, our creditors would be able to accelerate
all of the amounts due and, in the case of the Hayfin Credit Facility, seek to enforce their security interests,
which could lead to our creditors taking immediate possession of and selling substantially all of our assets with
no return provided to our stockholders.

Raising additional funds by issuing securities or through licensing or lending arrangements may cause
dilution to our existing stockholders, restrict our operations or require us to relinquish proprietary rights.

To the extent that we raise additional capital by issuing equity securities, the share ownership of existing
stockholders will be diluted. Any future debt financing may involve covenants that, among other restrictions,
limit our ability to incur liens or additional debt, pay dividends, redeem or repurchase our common stock, make
certain investments or engage in certain merger, consolidation or asset sale transactions. In addition, if we raise
additional funds through licensing arrangements or the disposition of any of our assets, it may be necessary to
relinquish potentially valuable rights to our product candidates or grant licenses on terms that are not favorable
to us.

Our cash and cash equivalents could be adversely affected if the financial institutions in which we hold our
cash and cash equivalents fail.

We regularly maintain cash balances at third-party financial institutions in excess of the Federal Deposit
Insurance Corporation insurance limit. While we monitor the cash balances in our operating accounts on a daily
basis and adjust the balances as appropriate, these balances could be impacted, and there could be a material
adverse effect on our business, if one or more of the financial institutions with which we deposit cash fails or is
subject to other adverse conditions in the financial or credit markets. To date, we have experienced no loss or
lack of access to our invested cash or cash equivalents; however, we can provide no assurance that access to our
invested cash and cash equivalents will not be impacted by adverse conditions in the financial and credit
markets.

If we fail to maintain proper and effective internal control over financial reporting in the future, our ability to
produce accurate and timely financial statements could be impaired, which could harm our operating results,
investors’ views of us and, as a result, the value of our common stock.

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 (the ‘‘Sarbanes-Oxley Act’’) and related rules,

our management is required to report on the effectiveness of our internal control over financial reporting. The
rules governing the standards that must be met for management to assess our internal control over financial
reporting are complex and require significant documentation, testing and possible remediation. To comply with
the requirements of being a reporting company under the Exchange Act, we have been required to upgrade, and
may need to implement further upgrades, to our financial, information and operating systems, implement
additional financial and management controls, reporting systems and procedures and hire additional accounting
and finance staff.

Consequently, we have incurred increased costs related to our compliance with Section 404 of the
Sarbanes-Oxley Act and will continue to do so. Our Audit Committee has retained the services of BDO, a
Sarbanes-Oxley advisor, to assist with our internal control over financial reporting and information technology
relating to Section 404. Moreover, if we are not able to comply with the requirements of Section 404 applicable
to us in a timely manner, or if we or our independent registered public accounting firm identifies deficiencies in
our internal control over financial reporting that are deemed to be material weaknesses, the market price of our
common stock could decline and we could be subject to sanctions or investigations by the SEC or other
regulatory authorities, which would require additional financial and management resources.

Our ability to use our net operating loss carryforwards (‘‘NOLs’’) may be limited.

We have incurred substantial losses during our history. As of December 31, 2022, we had federal and state

NOLs of $334.5 million and $211.7 million, respectively. Federal and State NOLs of approximately
$55.2 million and $91.8 million, respectively, will begin to expire at various dates beginning in 2027, if not

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limited by triggering events prior to such time. Under the provisions of the Internal Revenue Code of 1986, as
amended (the ‘‘Code’’), changes in our ownership, in certain circumstances, will limit the amount of federal
NOLs that can be utilized annually in the future to offset taxable income. In particular, Section 382 of the Code
imposes limitations on a company’s ability to use NOLs upon certain changes in such ownership. If we are
limited in our ability to use our NOLs in future years in which we have taxable income, we will pay more taxes
than if we were able to fully utilize our NOLs. The Biotest Transaction on June 6, 2017 resulted in a change in
ownership of ADMA under Section 382 and, as a result, we were required to write off $57.6 million of federal
NOLs. On October 25, 2021, we completed a public offering of our common stock whereby we issued
57,500,000 shares of our common stock resulting in another change of ownership for ADMA under section 382
of the Code, resulting in an additional write-off of $3.0 million of federal NOLs, $28.1 million of state NOLs
and $1.0 million of research and development credits. We may experience ownership changes in the future as a
result of subsequent changes in our stock ownership that we cannot predict or control that could result in further
limitations being placed on our ability to utilize our federal NOLs.

Risks Associated with our Common Stock

The market price of our common stock may be volatile and may fluctuate in a way that is disproportionate to
our operating performance.

Our stock price may experience substantial volatility as a result of a number of factors, including:

•

•

•

•

•

•

•

•

•

•

•

•

•

sales or potential sales of substantial amounts of our common stock;

uncertainties in the equity markets related to the effects of the COVID-19 pandemic;

delay or failure in initiating or completing preclinical or clinical trials or unsatisfactory results of these
trials;

delay in a decision by federal, state or local business regulatory authority;

the timing of acceptance, third-party reimbursement and sales of BIVIGAM and ASCENIV;

announcements about us or about our competitors, including clinical trial results, regulatory approvals
or new product introductions;

developments concerning our licensors or third-party vendors;

litigation and other developments relating to our patents or other proprietary rights or those of our
competitors;

conditions in the pharmaceutical or biotechnology industries;

governmental regulation and legislation;

overall market volatility;

variations in our anticipated or actual operating results; and

change in securities analysts’ estimates of our performance, or our failure to meet analysts’
expectations.

Many of these factors are beyond our control. The stock markets in general, and the market for pharmaceutical
and biotechnology companies in particular, have historically experienced extreme price and volume fluctuations.
These fluctuations often have been unrelated or disproportionate to the operating performance of these
companies. These broad market and industry factors could reduce the market price of our common stock,
regardless of our actual operating performance.

Sales of a substantial number of shares of our common stock, or the perception that such sales may occur,
may adversely affect the market price of our common stock.

As of March 17, 2023, most of our 222,155,625 outstanding shares of common stock, as well as a

substantial number of shares of our common stock underlying outstanding warrants, were available for sale in the
public market, subject to certain restrictions with respect to sales of our common stock by our affiliates, either
pursuant to Rule 144 under the Securities Act, or under effective registration statements. Sales of a substantial

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number of shares of our common stock, or the perception that such sales may occur, could cause the market
price of our common stock to decline or adversely affect demand for our common stock.

Our affiliates control a substantial amount of our shares of common stock. Provisions in our Second
Amended and Restated Certificate of Incorporation (the ‘‘Certificate of Incorporation’’), our Amended and
Restated Bylaws (the ‘‘Bylaws’’) and Delaware law might discourage, delay or prevent a change in control of
our Company or changes in our management and, therefore, depress the trading price of our common stock.

As of December 31, 2022, BlackRock Inc., Perceptive Advisors, LLC, State Street Corp., Vanguard Group
Inc., NWQ Investment Management Co. LLC and Caligan LP and our directors and executive officers and their
affiliates owned approximately 36% of the outstanding shares of our common stock. Provisions of our Certificate
of Incorporation, our Bylaws and Delaware law may have the effect of deterring unsolicited takeovers or
delaying or preventing a change in control of our Company or changes in our management, including
transactions in which our stockholders might otherwise receive a premium for their shares over then current
market prices. In addition, these provisions may limit the ability of stockholders to approve transactions that they
may deem to be in their best interests. These provisions include:

•

•

•

the inability of stockholders to call special meetings;

classification of our Board and limitation on filling of vacancies could make it more difficult for a
third party to acquire, or discourage a third party from seeking to acquire, control of our Company; and

authorization of the issuance of ‘‘blank check’’ preferred stock, with such designation rights and
preferences as may be determined from time to time by the Board, without any need for action by
stockholders.

In addition, Section 203 of the Delaware General Corporation Law prohibits a publicly-held Delaware
corporation from engaging in a business combination with an interested stockholder, generally a person which
together with its affiliates owns, or within the last three years, has owned 15% of our voting stock, for a period
of three years after the date of the transaction in which the person became an interested stockholder, unless the
business combination is approved in a prescribed manner. The existence of the foregoing provisions and
anti-takeover measures could limit the price that investors might be willing to pay in the future for shares of our
common stock. They could also deter potential acquirers of our company, thereby reducing the likelihood that
you could receive a premium for your common stock in an acquisition. In addition, as a result of the
concentration of ownership of our shares of common stock, our stockholders may, from time to time, observe
instances where there may be less liquidity in the public markets for our securities.

We have never paid and do not intend to pay cash dividends in the foreseeable future. As a result, capital
appreciation, if any, will be your sole source of gain.

We have never paid cash dividends on any of our capital stock and we currently intend to retain future
earnings, if any, to fund the development and growth of our business. In addition, the terms of existing and
future debt agreements may preclude us from paying dividends. For example, the Hayfin Credit Agreement
prohibits us from paying dividends. As a result, capital appreciation, if any, of our common stock will be your
sole source of gain for the foreseeable future.

If we fail to adhere to the strict listing requirements of the Nasdaq Global Market (‘‘Nasdaq’’), we may be
subject to delisting. As a result, our stock price may decline and our common stock may be delisted. If our
stock were no longer listed on Nasdaq, the liquidity of our securities likely would be impaired.

Our Common Stock currently trades on the Nasdaq Global Market under the symbol ‘‘ADMA.’’ If we fail

to adhere to Nasdaq’s strict listing criteria, including with respect to stock price, market capitalization and
stockholders’ equity, our stock may be delisted. This could potentially impair the liquidity of our securities not
only in the number of shares that could be bought and sold at a given price, which may be depressed by the
relative illiquidity, but also through delays in the timing of transactions and the potential reduction in media
coverage. As a result, an investor might find it more difficult to dispose of our common stock. We believe that
current and prospective investors would view an investment in our common stock more favorably if it continues
to be listed on Nasdaq. Any failure at any time to meet the Nasdaq continued listing requirements could have an
adverse impact on the value and trading activity of our common stock. Although we currently satisfy the listing
criteria for Nasdaq, if our stock price declines dramatically, we could be at risk of failing to meet the Nasdaq
continued listing criteria.

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Penny stock regulations may affect your ability to sell our common stock.

Because the price of our common stock currently trades below $5.00 per share, our common stock is subject

to Rule 15g-9 under the Exchange Act, which imposes additional sales practice requirements on broker-dealers
which sell these securities to persons other than established customers and accredited investors. Under these
rules, broker-dealers who recommend penny stocks to persons other than established customers and ‘‘accredited
investors’’ must make a special written suitability determination for the purchaser and receive the purchaser’s
written agreement to a transaction prior to sale, which includes an acknowledgement that the purchaser’s
financial situation, investment experience and investment objectives forming the basis for the broker-dealer’s
suitability determination are accurately stated in such written agreement. Unless an exception is available, the
regulations require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule
explaining the penny stock market and the associated risks. The additional burdens imposed upon broker-dealers
by these requirements could discourage broker-dealers from effecting transactions in our common stock and may
make it more difficult for holders of our common stock to sell shares to third parties or to otherwise dispose of
them.

Our Board may, without stockholder approval, issue and fix the terms of shares of preferred stock and issue
additional shares of common stock adversely affecting the rights of holders of our common stock.

Our Certificate of Incorporation authorizes the issuance of up to 10,000,000 shares of ‘‘blank check’’
preferred stock, with such designation rights and preferences as may be determined from time to time by the
Board. Currently, our Certificate of Incorporation authorizes the issuance of up to 300,000,000 shares of common
stock. As of December 31, 2022, there were 29,177,763 shares remaining available for issuance, after giving
effect to 24,648,346 shares of our common stock that were subject to outstanding stock options, RSUs and
warrants as of December 31, 2022 that may be issued by us without stockholder approval, as well as an
additional 24,356,961 shares reserved for the future issuance of awards under our equity compensation plans.

Item 1B. Unresolved Staff Comments

Not Applicable.

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Item 2.

Properties

The table below describes our principal facilities as of December 31, 2022:

Location

Principal Business Activity

Ramsey, NJ . . . . . . . . . . . . . . . . . . .
Boca Raton, FL . . . . . . . . . . . . . . . . Manufacturing and Administration
Boca Raton, FL . . . . . . . . . . . . . . . .

Laboratory and Administration

Corporate Headquarters

Approximate
Square Feet

Owned or expiration
date of lease

4,200
84,462
44,495

December 31, 2026 *
Owned
Owned

*

Pursuant to a shared services agreement, as amended, with Areth, LLC (‘‘Areth’’) for office, warehouse space and related services
pursuant to which the Company pays Areth monthly lease payments in the amount of $10,000. Areth is a company controlled by
Dr. Jerrold B. Grossman, our Vice Chairman of the Board of Directors, and Adam S. Grossman, our President and Chief Executive
Officer.

We also have ten plasma collection centers in leased facilities mainly in the southeastern part of the
U.S., which require lease payments through the respective lease terms that expire at various dates through 2033
(see Note 12 to the consolidated financial statements appearing elsewhere in this report).

We believe that our leased and owned properties are adequate to meet our current and future needs.

Item 3.

Legal Proceedings

We are and may become subject to certain legal proceedings and claims arising in connection with the
normal course of our business. Neither the Company nor any of its subsidiaries are a party to any material
pending legal proceedings, other than ordinary routine litigation incidental to our business.

Item 4.

Mine Safety Disclosures

Not applicable.

61

PART II

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities

Market Information

Our Common Stock had been listed on the Nasdaq Capital Market (‘‘Nasdaq’’) under the symbol ‘‘ADMA’’

since November 10, 2014. Since October 22, 2019, our Common Stock has been listed on the Nasdaq Global
Market.

Holders

As of December 31, 2022, there were 8 record holders of our Common Stock, based upon information
received from our transfer agent. However, this number does not include beneficial owners whose shares were
held of record by nominees or broker dealers. As of February 1, 2023, we estimate that there are more than
30,000 beneficial owners of our Common Stock.

Dividend Policy

We have never paid any cash dividends on our capital stock. We anticipate that we will retain earnings, if
any, to support operations and to finance the growth and development of our business. In addition, the terms of
our Credit Agreement with Hayfin precludes us from paying cash dividends without their consent. Therefore, we
do not expect to pay any cash dividends for the foreseeable future.

Stock Performance Graph

Not applicable.

Sale of Unregistered Securities

During the year ended December 31, 2022, we had no sales of unregistered securities that have not been

previously disclosed in a Current Report on Form 8-K or Quarterly Report on Form 10-Q.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

We did not repurchase any of our securities during the three months ended December 31, 2022.

Item 6.

Reserved

62

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction

with the consolidated financial statements and notes thereto included elsewhere in this Annual Report on
Form 10-K. The various sections of this discussion contain a number of forward-looking statements, all of which
are based on our current expectations and could be materially affected by the uncertainties and risk factors
described throughout this Annual Report. See ‘‘Special Note Regarding Forward-Looking Statements.’’ Our
actual results may differ materially.

OVERVIEW

Our Business

ADMA Biologics, Inc. (the ‘‘Company,’’ ‘‘ADMA,’’ ‘‘we,’’ ‘‘us’’ or ‘‘our’’) is an end-to-end commercial

biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived
biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain
infectious diseases. Our targeted patient populations include immune-compromised individuals who suffer from
an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons.

Through our ADMA BioManufacturing business segment, we currently have three products with U.S. Food
and Drug Administration (the ‘‘FDA’’) approval, all of which are currently marketed and commercially available:
(i) BIVIGAM (Immune Globulin Intravenous, Human), an Intravenous Immune Globulin (‘‘IVIG’’) product
indicated for the treatment of Primary Humoral Immunodeficiency (‘‘PI’’), also known as Primary
Immunodeficiency Disease (‘‘PIDD’’) or Inborn Errors of Immunity, and for which we received FDA approval
on May 9, 2019 and commenced commercial sales in August 2019; (ii) ASCENIV (Immune Globulin
Intravenous, Human – slra 10% Liquid), an IVIG product indicated for the treatment of PI, for which we
received FDA approval on April 1, 2019 and commenced first commercial sales in October 2019; and
(iii) Nabi-HB (Hepatitis B Immune Globulin, Human), which is indicated for the treatment of acute exposure to
blood containing HBsAg and other listed exposures to Hepatitis B. We seek to develop a pipeline of
plasma-derived therapeutics, including a product based on our most recently approved patent application under
U.S. Patent No. 10,259,865 related to methods of treatment and prevention of S. pneumonia infection for an
immunoglobulin manufactured to contain standardized antibodies to numerous serotypes of S. pneumoniae. Our
products and product candidates are intended to be used by physician specialists focused on caring for
immune-compromised patients with or at risk for certain infectious diseases.

We manufacture these products at our FDA-licensed, plasma fractionation and purification facility located in

Boca Raton, Florida with a peak annual processing capability of up to 600,000 liters (the ‘‘Boca Facility’’).
Based on current production yields, our ongoing supply chain enhancements and capacity expansion initiatives,
we believe this facility has the potential to produce sufficient quantities of our immune globulin (‘‘IG’’) products
representing annual revenues of $210 million or more in 2023, more than $250 million in annual revenue in
2024 and potentially in excess of $300 million of annual revenue thereafter, as well as achieving profitability
during the first quarter of 2024. At these revenue levels, we forecast achieving consolidated gross margins in the
range of 40-50% and net income margins in the range of 20-30%. These assumptions translate to potential
annual gross profit and net income in the range of $100-150 million and $50-100 million, respectively, during
the 2024-2025 time period and beyond.

Through our ADMA BioCenters subsidiary, we currently operate ten source plasma collection facilities in
the U.S. This business unit, which we refer to as our Plasma Collection Centers business segment, provides us
with a portion of our blood plasma for the manufacture of our products, and also allows us to sell certain
quantities of source plasma to third-party customers for further manufacturing. With respect to our operational
plasma collection centers, eight plasma collection centers currently hold FDA licenses, with the remaining plasma
collection centers anticipated to receive FDA approvals throughout 2023. In addition, three of our FDA-approved
plasma collection centers also have approvals from the Korean Ministry of Food and Drug Safety (‘‘MFDS’’), as
well as FDA approval to operate a Hepatitis B immunization program. After giving effect to the supply chain
robustness initiatives undertaken in 2021 and 2022 as it pertains to our plasma collection network expansion, we
remain on track to achieve our goal of having 10 FDA-licensed plasma collection centers by the end of 2023. A
typical plasma collection center, such as those operated by ADMA BioCenters, can collect approximately
30,000 to 50,000 liters of source and hyperimmune plasma annually, which may be sold for different prices

63

depending upon the type of plasma, quantity of purchase and market conditions at the time of sale. Plasma
collected from ADMA BioCenters’ facilities that is not used to manufacture our products is sold to third-party
customers in the U.S. and in other locations outside the U.S. where we are approved under supply agreements or
in the open ‘‘spot’’ market.

We sell plasma-derived intermediate fractions to certain customers, which are generated as part of our
FDA-approved manufacturing process for IG and IVIG products. In January 2020, we announced our entry into a
five-year manufacturing and supply agreement to produce and sell these intermediate by-products, which are used
as the starting raw material to produce other plasma-derived biologics. In addition, from time to time we provide
contract manufacturing services for certain third-party clients. We also provide laboratory contracting services to
certain customers and anticipate providing contract filling, labeling and packing services utilizing our
FDA-approved in-house fill-finish capabilities.

On June 6, 2017, we completed the acquisition of certain assets (the ‘‘Biotest Assets’’) of the Therapy

Business Unit (‘‘BTBU’’) of Biotest Pharmaceuticals Corporation (‘‘BPC’’ and, together with Biotest AG,
‘‘Biotest’’), which included two FDA-licensed products, Nabi-HB and BIVIGAM, and the Boca Facility (the
‘‘Biotest Transaction’’).

Our Products

BIVIGAM

BIVIGAM is a plasma-derived IVIG that contains a broad range of antibodies similar to those found in
normal human plasma. These antibodies are directed against bacteria and viruses and help to protect PI patients
against serious infections. BIVIGAM is a purified, sterile, ready-to-use preparation of concentrated human
Immunoglobulin G antibodies indicated for the treatment of PI, a group of genetic disorders. This includes, but is
not limited to, the humoral immune defect in common variable immunodeficiency, X-linked
agammaglobulinemia, congenital agammaglobulinemia, Wiskott-Aldrich syndrome and severe combined
immunodeficiency. These PIs are a group of genetic disorders. Based on recent estimates, these disorders are no
longer considered to be very rare, with as many as one in every 1,200 people in the United States having some
form of PI.

On May 9, 2019, the FDA approved the Prior Approval Supplement (the ‘‘PAS’’) for the use of our IVIG

manufacturing process, thereby enabling us to commence commercial sales of this product in the U.S. We
resumed production of BIVIGAM during the fourth quarter of 2017 and commercial production is ongoing, using
our FDA-approved IVIG manufacturing process under U.S. Department of Health and Human Services (‘‘HHS’’)
License No. 2019. The commercial re-launch and first commercial sales for this product commenced in August
of 2019.

On April 28, 2021, we announced that the FDA granted approval for our expanded plasma pool production
scale process, allowing for a 4,400-liter plasma pool for the manufacture of our BIVIGAM IVIG product. This
increased IVIG plasma pool scale, which allows us to produce BIVIGAM at an expanded capacity utilizing the
same equipment, release testing assays and labor force, has had a favorable impact on our gross margins,
manufacturing efficiencies and operating results since the beginning of the third quarter of 2021.

ASCENIV

ASCENIV is a plasma-derived IVIG that contains naturally occurring polyclonal antibodies, which are

proteins that are used by the body’s immune system to neutralize microbes, such as bacteria and viruses, and
prevent against infection and disease. We manufacture ASCENIV under HHS License No. 2019 using a process
known as fractionation. The Centers for Medicare and Medicaid Services (‘‘CMS’’) has issued a permanent,
product-specific-J-code for ASCENIV. Under the Healthcare Common Procedure Coding System (‘‘HCPCS’’),
the J-code (J1554) became effective April 1, 2021. As part of our proprietary manufacturing process for
ASCENIV, we leverage our unique, patented plasma donor screening methodology and tailored plasma pooling
design, which blends normal source plasma and plasma from donors tested to have high levels of neutralizing
antibody titers to respiratory syncytial virus (‘‘RSV’’) using our proprietary microneutralization testing assay. We
are able to identify the high titer or ‘‘hyperimmune’’ plasma that meets our internal and required specifications
for ASCENIV with our patented testing methods and assay. This type of high titer plasma is typically found in
less than 10% of the total donor collection samples we test.

64

ASCENIV is approved for the treatment of Primary Immune Deficiency Disorder (‘‘PIDD’’), a class of
inherited genetic disorders that causes a deficient or absent immune system in adults and adolescents (12 to
17 years of age). Our pivotal Phase III clinical trial in 59 PIDD patients met the primary endpoint of no Serious
Bacterial Infections (‘‘SBI’’) reported during 12 months of treatment. Secondary efficacy endpoints further
demonstrated the benefits of ASCENIV in the low incidence of infection, therapeutic antibiotic use, days missed
from work/school/daycare and unscheduled medical visits and hospitalizations. We believe this clinical data
together with the FDA approval for the treatment of PIDD better positions ADMA to potentially further evaluate
ASCENIV in immune-compromised patients infected with or at-risk for RSV infection or potentially other
respiratory viral pathogens at an appropriate time. Due to the COVID-19 pandemic, our plans have been delayed.
In the future however, we may work with the FDA and the immunology and infectious disease community to
design an appropriate clinical trial to evaluate the use of ASCENIV in this patient population. Commercial sales
of ASCENIV commenced in October of 2019 and our commercial and medical education efforts are focused on
the labeled indication of patients with PIDD. ASCENIV’s prescriber and patient base continued to expand during
the fourth quarter of 2022, which drove record utilization and pull-through for the product. These elevated
demand trends have sustained into 2023, and ADMA currently expects the product’s rapid growth will continue
throughout 2023 and beyond.

Nabi-HB

Nabi-HB is a hyperimmune globulin that is rich in antibodies to the Hepatitis B virus. Nabi-HB is a purified

human polyclonal antibody product collected from plasma donors who have been previously vaccinated with a
Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing HBsAg,
prenatal exposure of infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive persons and
household exposure to persons with acute Hepatitis B virus infection in specific, listed settings. Hepatitis B is a
potentially life-threatening liver infection caused by the Hepatitis B virus. It is a major global health problem. It
can cause chronic infection and places people at high risk of death from cirrhosis and liver cancer. Nabi-HB has
a well-documented record of long-term safety and effectiveness since its initial market introduction. The FDA
approved Nabi-HB on March 24, 1999. Production of Nabi-HB at the Boca Facility has continued under our
leadership since the third quarter of 2017. In early 2018, we received authorization from the FDA for the release
of our first commercial batch of Nabi-HB for commercial distribution in the U.S. and we continue to
manufacture Nabi-HB under HHS License No. 2019.

IMPACT OF THE COVID-19 CRISIS

We continue to monitor the ongoing developments related to the COVID-19 pandemic, including the

emergence of the Delta, Omicron and BA.2 variants and other resistant strains of the coronavirus, and its impacts
to our commercial and manufacturing operations and plasma collection facilities, including collections of source
plasma, procurement of raw materials and packaging materials, a portion of which are sourced internationally,
and the testing of finished drug product that is required prior to its availability for commercial sale. A substantial
portion of such testing has historically been performed by contract laboratories outside the United States.

Due to a combination of previously mandated state and local ‘‘shelter-in-place’’ orders, as well as
government stimulus packages, persisting social distancing measures and varying roll-outs of vaccinations by
state, we experienced lower than normal donor collections at our FDA approved plasma collection centers during
2021. We are also subject to delays in shipments of source plasma from our contracted third-party suppliers, as
well as delays in deliveries for personal protective equipment, reagents and other non-plasma raw materials and
supplies used in the manufacture and distribution of our products. In addition, we are subject to supply chain
delays as a result of certain of our suppliers diverting significant resources towards the rapid development and
distribution of COVID-19 vaccines and, as a result, we have elected to carry more raw materials inventory than
we have in the past. The COVID-19 pandemic previously impacted, to a certain degree, our customer
engagement initiatives, whereby ADMA’s sales and medical affairs field personnel faced difficulties
communicating directly with physicians and other healthcare professionals, as well as the cancellation or
postponement of a number of key scientific and medical meetings, further limiting our ability to communicate
with potential customers.

The pandemic could also impact our ability to interact with the FDA or other regulatory authorities and may

result in delays in the conduct of inspections or review of pending applications or submissions. Although we
received FDA approvals for four of our plasma collection centers during the year ended December 31, 2022,

65

received several FDA approvals and two FDA inspections of the Boca Facility were completed during the year
ended December 31, 2021, no assurances can be provided as to the timing for completion of any future
regulatory submissions or applications that may be impacted by restrictions related to COVID-19.

During the years ended December 31, 2022 and 2021, our revenue attributable to international customers

was approximately 5% and 13%, respectively, of our total revenues. As we seek to grow this aspect of our
business, we may also be subject to the impacts of the COVID-19 pandemic in locations outside the United
States.

Notwithstanding the foregoing, the COVID-19 pandemic to date has not had a material impact on our

financial condition or results of operations, and we do not believe that our production operations at the Boca
Facility, our contract fill/finishers or our plasma collection facilities have been significantly impacted by the
COVID-19 pandemic. As a result, we do not anticipate and have not experienced any material impairments with
respect to any of our long-lived assets, including our property and equipment, goodwill or intangible assets.

Although the COVID-19 pandemic has not, to date, materially adversely impacted our capital and financial
resources, because we are unable to determine the ultimate severity or duration of the pandemic or its long-term
effects on, among other things, the global, national or local economies, the capital and credit markets or our
workforce, customers or suppliers, at this time we are unable to predict whether COVID-19, or any known or
future variant or government order, will have a material adverse impact on our business, financial condition,
liquidity and results of operations. After the COVID-19 global pandemic has settled, we may continue to
experience adverse impacts to our business as a result of evolving macroeconomic factors, including general
economic uncertainty, unemployment rates, inflationary pressures and any actual economic recession that has
occurred or may occur in the future.

Critical Accounting Policies and Estimates

RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is based on

our consolidated financial statements, which have been prepared in accordance with Accounting Principles
Generally Accepted in the United States of America (‘‘U.S. GAAP’’). The preparation of these consolidated
financial statements requires us to make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses. On an ongoing basis, we evaluate these estimates and assumptions, including
those described below. We base our estimates on our historical experience and on various other assumptions that
we believe to be reasonable under the circumstances. These estimates and assumptions form the basis for making
judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results and experiences may differ materially from these estimates. Significant estimates include rebates
and certain other deductions from gross revenues, the realizable value of accounts receivable, valuation of
inventory, impairment of long-lived assets, assumptions used in projecting future liquidity and capital
requirements, assumptions used in the fair value of awards granted under our equity incentive plans and warrants
issued in connection with the issuance of notes payable and the valuation allowance for our deferred tax assets.

Some of the estimates and assumptions we have to make under U.S. GAAP require difficult, subjective
and/or complex judgments about matters that are inherently uncertain and, as a result, actual results could differ
from those estimates. Due to the estimation processes involved, the following summary of accounting estimates
and their application are considered to be critical to understanding our business operations, financial condition
and results of operations. For a description of our significant accounting policies, see Note 2 to the Consolidated
Financial Statements included elsewhere in this Annual Report on Form 10-K. Estimates and assumptions used in
projecting future liquidity and capital requirements are described in Note 1 to the Consolidated Financial
Statements.

Revenues

Our gross product revenues are subject to a variety of deductions, which are estimated and recorded in the

same period that the revenues are recognized. These deductions primarily consist of rebates, distribution fees,
chargebacks and sales allowances. These deductions represent estimates of the related obligations, some of which
are contractual in nature and do not require extensive judgment to be exercised by management, while other
estimates require complex or subjective matters of knowledge and judgment when estimating the impact of these
revenue deductions on net revenues for a reporting period.

66

Historically, adjustments to these estimates to reflect actual results or updated expectations, have not been

material to our overall business. However, two of our primary immunoglobulin products, ASCENIV and
BIVIGAM, were only approved for commercial sale by the FDA in 2019, and as such our historical experience
with rebates with respect to these products is limited. If any of our ratios, factors, assessments, experiences or
judgments are not indicative or accurate estimates of our future experience, our results could be materially
affected. Estimates that are most at risk for material adjustment are those associated with U.S. Medicaid rebates
because of the extensive time delay between the recording of the accrual and its ultimate settlement, an interval
that can generally take up to several years or more. While our results of operations to date have not required any
material adjustment due to this risk, the delay between when this obligation is initially recorded and ultimately
settled could potentially materially impact our revenues and our results of operations in the future.

Stock-Based Compensation and Valuation of Warrants

All equity-based payments, including grants of stock options and restricted stock units (‘‘RSUs’’), are
recognized at their estimated fair value at the date of grant, and compensation expense is recognized on a
straight-line basis over the grantee’s requisite vesting period. For the purpose of valuing stock options granted to
our employees, directors and officers, we use the Black-Scholes option pricing model. The Black-Scholes option
pricing model was developed for use in estimating the fair value of publicly traded options, which have no
vesting restrictions and are fully transferable. The Company’s employee stock options have characteristics
significantly different from those of traded options, and changes in the underlying Black-Scholes assumptions can
materially affect the fair value estimate. To determine the risk-free interest rate, we utilize the U.S. Treasury
yield curve in effect at the time of the grant with a term consistent with the expected term of our awards. The
expected term of the options granted is in accordance with SEC Staff Accounting Bulletins 107 and 110 and is
based on the average between vesting terms and contractual terms. The expected dividend yield reflects our
current and expected future policy for dividends on our Common Stock. The expected stock price volatility for
our stock options was calculated by examining the historical volatility of our Common Stock since our Common
Stock became publicly traded in the fourth quarter of 2013. We will continue to analyze the expected stock price
volatility and expected term assumptions and will adjust our Black-Scholes option pricing assumptions as
appropriate. Any changes in the foregoing Black-Scholes assumptions, or an election by us to utilize an
alternative method for valuing stock options granted to employees, directors and officers, could potentially
impact our stock-based compensation expense and our results of operations.

We also use the Black-Scholes option pricing model for the purpose of estimating the fair value of warrants

we issue from time to time in connection with the issuance of notes payable. Changes in our Black-Scholes
assumptions, or an election by us to utilize an alternative method for valuing warrants issued to our lenders,
could impact our interest expense and results of operations.

Impairment of Long-Lived Assets

We assess the recoverability of our long-lived assets, which include property and equipment and

definite-lived intangible assets, whenever significant events or changes in circumstances indicate impairment may
have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with the
asset are compared to its carrying amount to determine whether the asset’s carrying value is recoverable. Any
resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value
and a charge to operating results. For the years ended December 31, 2022 and 2021, we determined that there
was no impairment of our long-lived assets. Examples of events or circumstances that may be indicative of
impairment that would require the use of significant judgment by management include:

•

•

•

•

A significant adverse change in legal factors or in the business climate that could affect the value of the
asset.

Significant and continued cash flow losses.

A significant adverse change in the extent or manner in which an asset is used, such as a restriction
imposed by the FDA or other regulatory authorities that could affect our ability to manufacture our
products using a particular asset.

An expectation of losses or reduced profits associated with an asset. This could result, for example,
from the introduction of a competitor’s product that impacts projected revenue growth, or a change in
the acceptance of a product by patients, physicians and payers that results in an inability to sustain
projected product revenues.

67

Goodwill is not amortized but is assessed for impairment on an annual basis or more frequently if

impairment indicators exist. The testing of goodwill for impairment requires us to determine whether or not the
fair value of the reporting unit associated with the goodwill is less than its carrying amount, including goodwill
and other intangible assets. An impairment charge is recorded to the extent the reporting unit’s carrying value
exceeds its fair value, with the impairment loss recognized not to exceed the total amount of goodwill allocated
to that reporting unit. In order to determine the fair value of the reporting unit, we utilize the fair value of the
Company as a whole, as determined by its market capitalization. Determination of the fair value and carrying
value of each reporting unit, relative to the fair value of the Company, requires management to employ certain
estimates, assumptions and judgment, which we believe are reasonable. However, any changes to these estimates
and assumptions could impact our determination of whether or not our goodwill is impaired. We did not
recognize any impairment charges related to goodwill for the years ended December 31, 2022 and 2021.

Deferred Tax Assets

We have historically maintained a full valuation allowance against all of our net deferred tax assets, and as

a result have recorded no income tax benefit in the accompanying consolidated financial statements. This
valuation allowance reflects our assessment of whether it is more likely than not that we will generate sufficient
taxable income in the future to be able to utilize our deferred tax assets. In determining whether a valuation
allowance is warranted, we evaluate factors such as prior earnings history, expected future earnings, carryback
and carryforward periods and tax strategies. We consider all positive and negative evidence to estimate if
sufficient future taxable income will be generated to realize our deferred tax assets. We consider cumulative
losses in recent years to be a significant type of negative evidence, and based on our history of losses, at this
time we have not included future projected taxable income as a source of income to recognize our deferred tax
assets.

Year Ended December 31, 2022 Compared to December 31, 2021

The following table presents a summary of the changes in our results of operations for the year ended

December 31, 2022 compared to the year ended December 31, 2021:

Year Ended December 31,

2022

2021

Increase
(Decrease)

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $154,079,692 $ 80,942,625 $73,137,067
39,045,194
Cost of product revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

118,814,535

79,769,341

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plasma center operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . . . .

35,265,157
3,613,764
17,843,096
715,353
52,458,024

1,173,284
3,646,060
12,288,723
715,353
42,896,889

34,091,873
(32,296)
5,554,373
—
9,561,135

Loss from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(39,365,080)
(19,279,373)
(6,669,941)
(589,556)

(58,373,741) 19,008,661
(6,222,539)
(13,056,834)
— (6,669,941)
(372,513)

(217,043)

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (65,903,950) $(71,647,618) $ 5,743,668

Revenues

We recorded total revenues of $154.1 million during the year ended December 31, 2022, as compared to
$80.9 million during the year ended December 31, 2021, an increase of $73.1 million, or approximately 90%.
The increase is mainly due to increased sales of our immunoglobulin products and intermediate fractions
generated by our Boca Facility manufacturing operations in 2022 totaling $69.2 million as we conclude our
third full year of commercial sales of BIVIGAM and ASCENIV. We attribute this increase in revenue to the
continued expansion of our customer base in 2022 and to increasing physician, payer and patient acceptance of
both BIVIGAM and ASCENIV. We also experienced a $4.0 million increase in plasma revenues generated by
our Plasma Collection Centers business segment due to increased sales of plasma through spot market
opportunities beyond our long-term supply agreement.

68

Cost of Product Revenue and Gross Profit

Cost of product revenue was $118.8 million for the year ended December 31, 2022, as compared to
$79.8 million for the year ended December 31, 2021. This increase of $39.0 million is primarily attributable to
volume-related increases in product revenue costs related to the sale of our immunoglobulin products of
$30.4 million and increased product revenue costs related to our ADMA BioCenters business segment in the
amount of $4.3 million. In addition, we also experienced an increase in other manufacturing expenses of
approximately $4.4 million in fiscal 2022 as compared to fiscal 2021, which is indicative of certain inflationary
pressures being experienced by our industry for labor, materials, freight, fuel surcharges and third-party services.

Our gross profit of $35.3 million for the year ended December 31, 2022 represents an improvement over the

same period of a year ago of $34.1 million and is mainly due to the higher sales volume, the improved margins
we are experiencing with BIVIGAM at the larger plasma pool production scale, and to the increased relative
contribution of ASCENIV to our total revenues. As a result, we achieved a gross margin of 22.9% for the year
ended December 31, 2022, as compared to a gross margin of 1.4% for the year ended December 31, 2021.

Subsequent to the FDA approvals for BIVIGAM and ASCENIV received in 2019 through December 31,

2022, substantially all of the normal source plasma (‘‘NSP’’) used in our Boca Facility IG production was
sourced under a supply agreement we had in place with Grifols Worldwide Operations Limited, the
successor-in-interest to BPC (‘‘Grifols’’). This agreement expired on December 31, 2022 and was not renewed.
Although we have executed additional agreements with other third-party suppliers of NSP, we anticipate that a
substantial portion of the NSP used in IG production in 2023 and beyond will be sourced from our ADMA
BioCenters plasma collection facilities. As a number of these facilities are still in their initial stages of operation,
we expect that the cost of collecting NSP at many of these facilities will exceed the price per liter of NSP we
were paying to Grifols and other third-party suppliers. As a result, we expect the production costs for our
immune globulin products to increase in the near term, which could adversely impact our cost of product revenue
and gross margins, without giving effect to other supply chain initiatives completed and anticipated
manufacturing efficiencies expected in the future.

Research and Development Expenses

Research and development expenses (‘‘R&D’’) of $3.6 million for the year ended December 31, 2022 was

essentially unchanged from the year ended December 31, 2021, as the lower compensation costs (including
stock-based compensation) in 2022 resulting from the 2021 resignation of our former Chief Medical and Chief
Scientific Officer was offset by increased expenses associated with post-marketing commitment clinical studies
for ASCENIV and BIVIGAM (see Note 10 to the Consolidated Financial Statements).

Plasma Center Operating Expenses

Plasma center operating expenses increased by $5.6 million to $17.8 million for the year ended
December 31, 2022, as compared to $12.3 million for the year ended December 31, 2021. Plasma center
operating expenses consist of certain general and administrative plasma center costs, initial opening, marketing
and start-up costs, rent expense, maintenance, utilities, compensation and benefits for center and administrative
staff, advertising and promotion expenses and computer software fees related to donor collections. The majority
of our plasma collection centers have been in a development or start-up stage in fiscal 2022 and 2021.

During fiscal 2022, we opened three new plasma collection facilities, and an additional facility opened in

March of 2023. In addition, for those plasma collection centers that were in construction or development but not
yet operational, we still needed to incur staffing, training, travel and other costs during the build-out period so
that these facilities can be operational on the day they open. The increase in plasma center operating expenses in
2022 is mainly attributable to increases in donor fees, some of which are specialty programs and promotions by
the newly opened centers, of $10.7 million, employee compensation costs of $5.8 million, softgoods and supplies
of $3.8 million, depreciation expense of $1.1 million, rent expense of $0.5 million, plasma testing expenses of
$2.8 million, travel expense of $0.2 million, software maintenance expense of $0.4 million, janitorial and utilities
expense of $0.5 million, professional services of $0.4 million, postage and freight of $0.3 million and advertising
expenses of $0.3 million. These amounts were partially offset by a substantial increase in plasma collections
which resulted in a reduction in our plasma center operating expenses by approximately $21.4 million.

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Selling, General and Administrative Expenses

Selling, general and administrative expenses (‘‘SG&A’’) were $52.5 million for the year ended

December 31, 2022, an increase of $9.6 million from the year ended December 31, 2021. As we continued to
support the increase in the size and scope of our Boca Facility manufacturing and commercial operations in
2022, we experienced increases in employee compensation and related expenses, including travel, relocation and
recruiting, of $4.6 million, $1.8 million of which is stock-based compensation. We also experienced increases in
insurance expense of $1.4 million and utilities of $0.5 million in 2022, as well as an increase in data services
and market intelligence fees in the amount of $1.5 million in support of the commercialization efforts for
BIVIGAM and ASCENIV. In addition, we incurred professional fees in connection with the Morgan Stanley
strategic alternatives process in the amount of $1.4 million, with no comparable amount in 2021.

Amortization of Intangibles

Amortization expense for intangible assets acquired in the Biotest Transaction was $0.7 million for the years

ended December 31, 2022 and 2021.

Loss from Operations

Our operating loss was $39.4 million for the year ended December 31, 2022, as compared to $58.4 million

for the year ended December 31, 2021. The decrease in operating loss was mainly due to the improved gross
profit for the year ended December 31, 2022 of $34.1 million, partially offset by the increases in plasma center
operating expenses and SG&A.

Interest Expense

Interest expense was $19.3 million for the year ended December 31, 2022, as compared to $13.1 million for
the year ended December 31, 2021. The increase reflects the additional indebtedness and increase in amortization
of debt discount resulting from the refinancing of our senior credit facility on March 23, 2022 (see ‘‘Liquidity
and Capital Resources’’). The refinancing transaction resulted in additional indebtedness at closing in the
approximate amount of $51.8 million, and our debt principal increased by an additional $3.0 million subsequent
to closing as our new senior credit facility allows us to pay ‘‘in kind’’ a portion of our monthly interest
obligation in the form of additional indebtedness to the lender. We expect to continue to pay a portion of our
monthly interest obligation ‘‘in kind’’ during 2023. As a result, and given the expected continued rise in global
interest rates, we expect our principal debt balance and the associated interest expense to increase over the course
of fiscal 2023 as compared to previous years.

Loss on Extinguishment of Debt

In connection with the refinancing of our senior credit facility on March 23, 2022, we incurred a loss on the
extinguishment of debt in the amount of $6.7 million as a result of the redemption premium we paid to retire our
previously existing credit facility in the amount of $2.0 million, and the write-off of unamortized debt discount
of $4.7 million related to that facility (see Note 7 to the Consolidated Financial Statements).

Net Loss

Our net loss was $65.9 million for the year ended December 31, 2022, as compared to $71.6 million for the

year ended December 31, 2021. The decrease in net loss of $5.7 million was mainly due to the decrease in
operating loss, largely offset by the higher interest expense and loss on extinguishment of debt in 2022.

70

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2022, we had working capital of $231.1 million, primarily consisting of $163.3 million of
inventory, cash and cash equivalents of $86.5 million and accounts receivable of $15.5 million, partially offset by
current liabilities of $39.3 million, as compared to working capital at December 31, 2021 of $178.4 million,
primarily consisting of $124.7 million of inventory, cash and cash equivalents of $51.1 million and accounts
receivable of $28.6 million, partially offset by $30.4 million of current liabilities. We have incurred an
accumulated deficit of $478.0 million since inception and had negative cash flows from operations of
$59.5 million and $112.4 million for the years ended December 31, 2022 and 2021, respectively. We have funded
our operations over the past few years primarily from the sale of our equity and debt securities. Our material
cash requirements are primarily comprised of:

•

•

•

•

•

The procurement of raw material plasma and other raw materials necessary to maintain and scale up
our manufacturing operations;

Employee compensation and benefits;

Capital expenditures to complete the buildout for and maintain our plasma collection facilities and for
equipment upgrades and capacity expansion at the Boca Facility;

Plasma donor fees and plasma center supplies;

Interest on our debt;

• Marketing programs and continued commercialization efforts;
•

Boca Facility maintenance, repairs and supplies; and

•

Conducting required post-marketing clinical trials for our FDA-approved products.

In addition, our end-to-end production cycle time from procurement of raw materials to commercial release of
finished product can take between seven and 12 months or potentially longer, requiring substantial inventories of
raw material plasma and other manufacturing materials and single use disposables.

We expect that we will not be able to generate a sufficient amount of product revenue to achieve

profitability until the beginning of 2024. We currently anticipate, based upon our projected revenue and
expenditures, that our current cash, cash equivalents and accounts receivable will be sufficient to fund our
operations, as currently conducted, through the end of the first quarter of 2024, at which time we believe we will
begin to generate positive cash flow from operations. This time frame may change based on several factors,
including the success of our commercial efforts with respect to the sale of our products and the acceptability of
our immune globulin products by physicians, patients or payers, and whether or not the assumptions underlying
our projected revenues and expenses are correct. If we are unable to achieve positive cash flow by the beginning
of 2024, we may need to raise additional capital and if such capital is not available due to widespread liquidity
constraints or significant market instability that could result from the COVID-19 pandemic, inflationary pressures
or other factors beyond our control, we may have to delay, curtail or eliminate some of our commercialization
efforts or product development activities. If we are unable to generate sufficient revenue to achieve positive cash
flow by the beginning of 2024 and need to raise additional capital, we may decide to do so through public or
private equity offerings or debt financings, or we may enter into a corporate collaboration or licensing
arrangement. The sale of additional or equity debt securities, if convertible, could result in dilution to our
stockholders and, in such event, the value and potential future market price of our common stock may decline.

ADMA continues to evaluate a variety of strategic alternatives through its ongoing engagement with Morgan

Stanley. The exploration of value-creating opportunities remains a top corporate priority for ADMA.

On March 23, 2022, (the ‘‘Hayfin Closing Date’’) we and all of our subsidiaries entered into a Credit and

Guaranty Agreement (the ‘‘Hayfin Credit Agreement’’) with Hayfin Services LLP (‘‘Hayfin’’). The Hayfin Credit
Agreement, as amended, provides for a senior secured term loan facility in a principal amount of up to
$175.0 million (the ‘‘Hayfin Credit Facility’’), composed of (i) a term loan made on the Hayfin Closing Date in
the principal amount of $150.0 million (the ‘‘Hayfin Closing Date Loan’’), and (ii) a delayed draw term loan in
the principal amount of $25.0 million (the ‘‘Hayfin Delayed Draw Loan’’ and, together with the Hayfin Closing
Date Loan, the ‘‘Hayfin Loans’’). Pursuant to an amendment to the Hayfin Credit Agreement dated March 22,
2023, the obligation of the lenders to make the Hayfin Delayed Draw Loan expires on June 30, 2023. The

71

obligation of the lenders to make the Hayfin Delayed Draw Loan is subject to the satisfaction of certain
conditions, including, but not limited to, our meeting certain 12-month revenue targets as set forth in the Hayfin
Credit Agreement which have been met. The Hayfin Credit Facility has a maturity date of March 23, 2027 (the
‘‘Hayfin Maturity Date’’), subject to acceleration pursuant to the Hayfin Credit Agreement, including upon an
Event of Default (as defined in the Hayfin Credit Agreement).

On the Hayfin Closing Date, we used $100.0 million of the Hayfin Closing Date Loan to terminate and pay

in full all of the outstanding obligations under our previous senior credit facility with Perceptive (see Note 7 to
the Consolidated Financial Statements). We also used $2.0 million of the Hayfin Closing Date Loan proceeds to
pay a redemption premium to Perceptive and used approximately $1.0 million of the Hayfin Closing Date Loan
proceeds to pay certain fees and expenses incurred in connection with this transaction. In addition, a $1.8 million
upfront fee payable to Hayfin was paid ‘‘in kind’’ and was added to the outstanding principal balance in
accordance with the terms of the Hayfin Credit Agreement. The remainder of the proceeds received or to be
received from the Hayfin Loans will be used for working capital and other general corporate purposes.

Borrowings under the Hayfin Credit Agreement currently bear interest at the adjusted Term Secured
Overnight Financing Rate (‘‘SOFR’’) for either a one-month or three-month tenor, as elected by us, and subject
to a floor of 1.25%, plus an applicable margin of 9.5% (the ‘‘Applicable Margin’’); provided, however, that
upon, and during the continuance of, an Event of Default, the Applicable Margin shall increase by an additional
3% per annum. We will also pay ‘‘in kind’’ a portion of the interest on the Hayfin Loans for each monthly or
quarterly interest period in an amount equal to 2.5% per annum. Such interest paid ‘‘in kind’’ will reduce our
quarterly cash interest obligation by approximately $1.0 million and will be added to the principal amount of the
outstanding debt under the Hayfin Credit Facility. As a result, our outstanding debt principal on the Hayfin Loans
will increase each month as long as we elect to continue to pay a portion of our interest obligation ‘‘in kind.’’ On
the Hayfin Closing Date and as of December 31, 2022, the stated interest rate on the Hayfin Loans interest rate
was 10.75% and approximately 13.9%, respectively. Based on the interest rate in effect as of the date of this
report, on the last day of each calendar month or quarter during the term of the Hayfin Credit Facility, we are
required to pay accrued interest to Hayfin of approximately $1.6 million per month or approximately
$4.7 million per quarter, after giving effect to the ‘‘in kind’’ interest of 2.5% per annum, but without giving
effect to the Hayfin Delayed Draw Loan, which we have yet to draw upon.

Our interest obligations under the Hayfin credit agreement are subject to variable interest rates based on the

Term SOFR in effect at the beginning of each monthly interest period. With the global rise in interest rates, we
expect our interest rate and our monthly cash interest obligation to be higher in fiscal 2023 as compared to
previous years. For example, our stated interest rate, which was 10.75% for the month of June 2022, increased to
approximately 12.06% for the month of September and was approximately 14.16% for the month of
February 2023.

On the Hayfin Maturity Date, we will pay Hayfin the entire outstanding principal amount underlying the
Hayfin Loans and any accrued and unpaid interest thereon, as well as an exit fee of 1.0% of the outstanding
principal amount being paid. Prior to the Hayfin Maturity Date, there are no scheduled principal payments on the
Hayfin Loans. We may prepay outstanding principal on the Hayfin Loans at any time and from time to time
upon five business days’ prior written notice, subject to the payment to Hayfin of, (A) any accrued but unpaid
interest on the prepaid principal amount plus (B) a prepayment fee in the amount equal to (i) 7.0% of the prepaid
principal amount, if prepaid on or prior to the first anniversary of the Hayfin Closing Date, (ii) 3.0% of the
prepaid principal amount, if prepaid after the first anniversary of the Hayfin Closing Date and on or prior to the
second anniversary of the Hayfin Closing Date, or (iii) 1.0% of the prepaid principal amount, if prepaid after the
second anniversary of the Hayfin Closing Date and on or prior to the third anniversary of the Hayfin Closing
Date. In addition, for any prepayments of principal, we are required to pay the 1.0% exit fee for the amount of
principal being paid.

All of our obligations under the Hayfin Credit Agreement are secured by a first-priority lien and security

interest in substantially all of our tangible and intangible assets, including intellectual property and all of the
equity interests in our subsidiaries. The Hayfin Credit Agreement contains certain representations and warranties,
affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The
negative covenants restrict or limit our ability and the ability of our subsidiaries to, among other things and
subject to certain exceptions contained in the Hayfin Credit Agreement, incur new indebtedness; create liens on
assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to our or

72

our subsidiaries’ business activities; make certain Investments or Restricted Payments (each as defined in the
Hayfin Credit Agreement); change our fiscal year; pay dividends; repay other certain indebtedness; engage in
certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of
restricting our ability to make loan repayments under the Hayfin Credit Agreement. In addition, we are required
(i) at all times prior to the Maturity Date to maintain a minimum cash balance of $6.0 million; and (ii) as of the
last day of each fiscal quarter, report IVIG product and related revenues for the trailing 12-month period that
exceed the amounts set forth in the Hayfin Credit Agreement, which range from $75.0 million for the fiscal
quarter ending June 30, 2022 to $250.0 million for the fiscal quarter ending December 31, 2026 and each fiscal
quarter thereafter. As of December 31, 2022, we were in compliance with all of the financial covenants contained
in the Hayfin Credit Agreement.

On December 9, 2022, we completed an underwritten public offering whereby we issued 24,125,873 shares
of our common stock. Net proceeds after underwriting discounts and expenses associated with the offering were
approximately $64.6 million and are being used to accelerate commercialization and production activities,
complete plasma center buildouts and obtain FDA approvals, to conclude post-FDA marketing approval research
and development projects, and for working capital, capital expenditures and general corporate purposes.

On October 25, 2021, we completed an underwritten public offering whereby we issued 57.5 million shares

of our common stock and received gross proceeds of $57.5 million. Net proceeds, after underwriting discounts
and expenses associated with the offering, were approximately $53.8 million, and were used to advance the
commercial sales of our FDA approved products through the procurement of raw materials for the manufacturing
of BIVIGAM and ASCENIV, to expand our plasma collection facility network, to scale up the manufacturing
capacity of the Boca Facility and make continuous improvements in order to adhere to cGMP compliance, to
explore business development opportunities and for general corporate purposes and other capital expenditures.

On September 3, 2021, we entered into a distribution agreement with Raymond James & Associates, Inc., as

agent (‘‘Agent’’), pursuant to which we may offer and sell, from time to time, at our option, through or to the
Agent, up to an aggregate of $50 million of shares of our common stock (the ‘‘Distribution Agreement’’). We
currently intend to use any net proceeds from the sale of our common stock under the Distribution Agreement
for general corporate purposes, including procurement of source plasma and other raw materials, supply chain
initiatives and production expenditures, funding expansion of plasma collection centers, working capital, capital
expenditures, expansion and resources for commercialization activities, and other potential research and
development and business opportunities. During the year ended December 31, 2021, we issued 5,540,831 shares
of our common stock under the Distribution Agreement and received net proceeds of $6.9 million. We did not
issue any shares under this agreement during the year ended December 31, 2022, and we currently have
approximately $42.8 million of shares available to sell under the Distribution Agreement.

Cash Flows

The following table sets forth a summary of our cash flows for the periods indicated:

Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (59,508,257) $(112,368,982)
(13,511,258)
Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
121,048,206
Net cash provided by financing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13,911,171)
108,851,852

Net change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents - beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . . .

35,432,424
51,089,118

(4,832,034)
55,921,152

Cash and cash equivalents - end of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,521,542 $ 51,089,118

Year Ended December 31,
2022

2021

73

Net Cash Used in Operating Activities

Cash used in operations for the year ended December 31, 2022 was $59.5 million, a decrease of

$52.9 million from the same period of a year ago, mainly due to the improvement in our operating results after
giving effect to non-cash items, driven by higher revenues and gross margins, and reductions in accounts
receivable related to the timing of shipments and collections from customers. The following table illustrates the
primary components of our cash flows from operations:

Year Ended December 31,
2022

2021

Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-cash expenses, gains and losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in prepaid expenses and other current assets. . . . . . . . . . . . . . . . . . . . . . . .
Changes in accounts payable and accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$(65,903,950) $ (71,647,618)
10,959,055
(15,339,567)
(43,188,489)
(1,292,779)
9,697,041
(1,556,625)

24,680,958
13,071,809
(38,555,957)
(755,900)
8,334,553
(379,770)

Cash used in operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$(59,508,257) $(112,368,982)

Net Cash Used in Investing Activities

Net cash used in investing activities for the year ended December 31, 2022 was $13.9 million, which
consisted of $8.7 million for the construction and buildout of several new plasma collection facilities and
$5.2 million for equipment purchases and upgrades to the Boca Facility. Net cash used in investing activities for
the year ended December 31, 2021 was $13.5 million, which consisted of $8.6 million for the construction and
buildout of new plasma collection facilities and $4.9 million of capital expenditures at the Boca Facility, which
included equipment purchases and continued implementation of our in-house fill/finish capabilities. While we do
not have any firm commitments for material capital expenditures in 2023, we expect our total capital
expenditures will be between $8.0 million and $12.0 million for fiscal 2023.

Net Cash Provided by Financing Activities

Net cash provided by financing activities for the year ended December 31, 2022 was $108.9 million, as we
received approximately $47.0 in net proceeds from the refinancing of our senior credit facility in March of 2022
and $64.6 million in net proceeds from the December 9, 2022 public offering of our common stock. Cash
provided by financing activities during the year ended December 31, 2021 was $121.0 million, which is mainly
comprised of the net proceeds of $67.3 million from the sale of our common stock through several sale
agreements and $53.8 million from the October 2021 underwritten public offering.

Effect of Inflation

Inflation impacted a number of facets of our business during the years ended December 31, 2022 and 2021
at each of our business segments. We experienced price increases for, among other items, certain raw materials,
consumable supplies, services for repairs and maintenance of our facilities, utilities, shipping and freight charges,
fuel surcharges and labor costs. We expect this trend to continue at least into 2023 or longer, which could have a
significant impact on our future results of operations. In addition, some of our plasma purchase agreements
provide for annual price increases that are tied to various consumer price indices, which have resulted in higher
than historical percentage price increases and has resulted in and is expected to continue to result in higher
source plasma and other raw material and supplies costs in fiscal 2023.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 8.

Financial Statements and Supplementary Data

Our financial statements required to be filed pursuant to this Item 8 appear in a separate section of this

Annual Report on Form 10-K, beginning on page F-1.

74

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2022. The term
‘‘disclosure controls and procedures,’’ as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act,
means controls and other procedures of a company that are designed to ensure that information required to be
disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to ensure that information required to be
disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and
communicated to the company’s management, including its principal executive and principal financial officers, as
appropriate to allow timely decisions regarding required disclosure. Management recognizes that any set of
controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of
achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit
relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and
procedures as of December 31, 2022, our Chief Executive Officer and Chief Financial Officer concluded that, as
of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Management’s Annual Report on Internal Control Over Financial Reporting

The Management of ADMA Biologics, Inc. (the ‘‘Company’’) is responsible for establishing and

maintaining adequate internal control over financial reporting for the Company. Internal control over financial
reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act, as amended, as a
process designed by, or under the supervision of, the Company’s principal executive and principal financial
officers and effected by the Company’s board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with accounting principles generally accepted in the United States of America
(‘‘U.S. GAAP’’) and includes those policies and procedures that: (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with U.S. GAAP, and that receipts and expenditures of our company are being made
only in accordance with authorizations of management and directors of the Company; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of
the Company’s assets that could have a material effect on the financial statements.

Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements prepared for external purposes in accordance
with U.S. GAAP. Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer,

assessed the effectiveness of its internal control over financial reporting as of December 31, 2022. In making this
assessment, management used the criteria set forth in the Internal Control-Integrated Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway Commission. Based on its assessment, management
concluded that the Company’s internal control over financial reporting was effective as of December 31, 2022
based on those criteria.

As a Smaller Reporting Company, the Company is not required to include in this Annual Report on Form
10-K a report on the effectiveness of its internal control over financial reporting by the Company’s independent
registered public accounting firm.

75

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting during the quarter ended

December 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control
over financial reporting.

Item 9B. Other Information

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.

76

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Information required to be disclosed by this Item with respect to our executive officers is incorporated into

this Annual Report on Form 10-K by reference from the section entitled ‘‘Executive Officers and Director and
Officer Compensation: Executive Officers’’ contained in our definitive proxy statement for our 2023 annual
meeting of stockholders, which we intend to file within 120 days of the end of our fiscal year ended
December 31, 2022.

Information required to be disclosed by this Item about our Board of Directors (the ‘‘Board’’) is
incorporated into this Annual Report on Form 10-K by reference from the section entitled ‘‘Proposal
No. 1: Election of Directors’’ contained in our definitive proxy statement for our 2023 annual meeting of
stockholders, which we intend to file within 120 days of the end of our fiscal year ended December 31, 2022.

To the extent necessary, information required to be disclosed by this Item about the Section 16(a)
compliance of our directors and executive officers is incorporated into this Annual Report on Form 10-K, as
applicable, by reference from the section entitled ‘‘Delinquent Section 16(a) Reports’’ contained in our definitive
proxy statement for our 2023 annual meeting of stockholders, which we intend to file within 120 days of the end
of our fiscal year ended December 31, 2022.

Information required to be disclosed by this Item about our Board, the Audit Committee of our Board, our

audit committee financial expert, our Code of Ethics and Business Conduct Standards, and other corporate
governance matters is incorporated into this Annual Report on Form 10-K by reference from the section entitled
‘‘Corporate Governance’’ contained in our definitive proxy statement for our 2023 annual meeting of
stockholders, which we intend to file within 120 days of the end of our fiscal year ended December 31, 2022.

The text of our Code of Ethics and Business Conduct Standards, which applies to our directors and
employees (including our principal executive officer, principal financial officer, principal accounting officer or
controller and persons performing similar functions), is posted in the ‘‘Corporate Governance’’ section of the
Investors section of our website, www.admabiologics.com. A copy of the Code of Ethics and Business Conduct
Standards can be obtained free of charge on our website. We intend to disclose on our website any amendments
to, or waivers from, our Code of Ethics and Business Conduct Standards that are required to be disclosed
pursuant to the rules of the SEC and The Nasdaq Stock Market.

The information presented on our website is not a part of this Annual Report on Form 10-K and the

reference to our website is intended to be an inactive textual reference only.

Item 11.

Executive Compensation

Information required to be disclosed by this Item is incorporated into this Annual Report on Form 10-K by

reference from the section entitled ‘‘Executive Officers and Director and Officer Compensation’’ contained in our
definitive proxy statement for our 2023 annual meeting of stockholders, which we intend to file within 120 days
of the end of our fiscal year ended December 31, 2022.

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters

Information required to be disclosed by this Item is incorporated into this Annual Report on Form 10-K by

reference from the sections entitled ‘‘Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters’’ contained in our definitive proxy statement for our 2023 annual meeting of
stockholders, which we intend to file within 120 days of the end of our fiscal year ended December 31, 2022.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required to be disclosed by this Item is incorporated in this Annual Report on Form 10-K

by reference from the section entitled ‘‘Certain Relationships and Related Transactions, and Director
Independence’’ contained in our definitive proxy statement for our 2023 annual meeting of stockholders, which
we intend to file within 120 days of the end of our fiscal year ended December 31, 2022.

77

Item 14.

Principal Accounting Fees and Services

The information required to be disclosed by this Item is incorporated into this Annual Report on Form 10-K

by reference from the section entitled ‘‘Audit and Other Fees’’ contained in our definitive proxy statement for
our 2023 annual meeting of stockholders, which we intend to file within 120 days of the end of our fiscal year
ended December 31, 2022.

78

PART IV

Item 15.

Exhibits, Financial Statement Schedules

Financial Statement Schedules

(a) The following documents are filed as part of this Annual Report on Form 10-K:

(1) Consolidated Financial Statements.

Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Balance Sheets as of December 31, 2022 and 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Operations for the years ended December 31, 2022 and 2021 . . . . . . . . . . .
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2022

and 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 . . . . . . . . . .
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Financial Statement Schedules.

Required information is included in the footnotes to the financial statements.

Page

F-2
F-4
F-5

F-6
F-7
F-8

(3)

Index to Exhibits.

Exhibit No. Description

INDEX TO EXHIBITS

2.1

3.1

3.1.1

3.2

3.3

4.1

4.2

4.3

4.4

4.5

Master Purchase and Sale Agreement, dated as of January 21, 2017, by and among Biotest
Pharmaceuticals Corporation, ADMA BioManufacturing, LLC, ADMA Biologics, Inc., Biotest AG
and Biotest US Corporation (incorporated herein by reference to Exhibit 2.1 to the Company’s
Current Report on Form 8-K, filed with the SEC on January 23, 2017).
Second Amended and Restated Certificate of Incorporation of the Company (incorporated herein by
reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on
August 23, 2019).
Certificate of Amendment of the Second Amended and Restated Certificate of Incorporation of
ADMA Biologics, Inc., dated as of May 27, 2021 (incorporated by reference to Exhibit 3.1 to the
Company’s Current Report on Form 8-K filed on May 28, 2021).
Amended and Restated Bylaws (incorporated herein by reference to Exhibit 3.1 to the Company’s
Current Report on Form 8-K, filed with the SEC on October 7, 2016).
Certificate of Designation of Series A Junior Participating Preferred Stock of ADMA Biologics, Inc.
(incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with
the SEC on December 21, 2021).
Specimen Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to Amendment
No. 1 to the Company’s Current Report on Form 8-K/A, filed with the SEC on March 29, 2012).
Warrant Agreement, dated December 21, 2012, issued by the Company to Hercules Technology
Growth Capital, Inc. (incorporated herein by reference to Exhibit 4.3 to the Company’s Registration
Statement on Form S-1, filed with the SEC on February 11, 2013).
Form of Warrant Agreement, dated May 13, 2016, issued by the Company to Oxford Finance LLC
(incorporated herein by reference to Exhibit 4.6 to the Company’s Quarterly Report on Form 10-Q,
filed with the SEC on May 13, 2016).
Warrant to Purchase Stock, dated October 10, 2017, issued by the Company to Marathon Healthcare
Finance Fund, L.P. (incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report
on Form 8-K, filed with the SEC on October 11, 2017).
Warrant to Purchase Stock, dated February 11, 2019, issued by the Company to Perceptive Credit
Holdings II, LP (incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on
Form 8-K, filed with the SEC on February 12, 2019).

79

Exhibit No. Description

4.6

4.7

4.8

4.9

4.10

4.11

4.12

10.1†

10.2†

10.3†

10.3.1†

10.4†

10.4.1†

10.5+

10.5.1+

10.5.2

Warrant to Purchase Stock, dated May 3, 2019, issued by the Company to Perceptive Credit Holdings
II, LP (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed
with the SEC on May 3, 2019).
Warrant to Purchase Stock, dated December 8, 2020, issued by the Company to Perceptive Credit
Holdings II, LP (incorporated by reference to Exhibit 4.7 to the Company’s Annual Report on
Form 10-K for the year ended December 31, 2020, filed with the SEC on March 24, 2021).
Note, dated February 11, 2019, issued by the Company to Perceptive Credit Holdings II, LP
(incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed
with the SEC on February 12, 2019).
Note, dated May 3, 2019, issued by the Company to Perceptive Credit Holdings II, LP (incorporated
herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed with the SEC
on May 3, 2019).
Note, dated December 8, 2020, issued by the Company to Perceptive Credit Holdings II, L.P.
(incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with
the SEC on December 9, 2020).
Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934
(incorporated by reference to Exhibit 4.11 to the Company’s Annual Report on Form 10-K, filed with
the SEC on March 24, 2022).
Form of Warrant to Purchase Stock, in the form issued by the Company to various entities affiliated
with Hayfin Services LLP, dated as of March 23, 2022 (incorporated by reference to Exhibit 4.13 to
the Company’s Annual Report on Form 10-K, filed with the SEC on March 24, 2022).
2007 Employee Stock Option Plan, as amended by Amendment No. 3 (incorporated herein by
reference to Exhibit A to the Information Statement on Schedule 14C, filed with the SEC on
October 29, 2012).
Amended and Restated ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation Plan
(incorporated herein by reference to Exhibit 10.1 to the Company’s Registration Statement on
Form S-8, filed with the SEC on August 18, 2017).
Amended and Restated Employment Agreement, dated January 29, 2019, by and between ADMA
Biologics, Inc. and Adam Grossman (incorporated herein by reference to Exhibit 10.1 to the
Company’s Current Report on Form 8-K, filed with the SEC on January 29, 2019).
Amendment to Employment Agreement, dated as of September 29, 2021, by and between ADMA
Biologics, Inc. and Adam Grossman (incorporated by reference to Exhibit 10.2 to the Company’s
Current Report on Form 8-K, filed with the SEC on October 1, 2021).
Amended and Restated Employment Agreement, dated January 29, 2019, by and between ADMA
Biologics, Inc. and Brian Lenz (incorporated herein by reference to Exhibit 10.3 to the Company’s
Current Report on Form 8-K, filed with the SEC on January 29, 2019).
Amendment to Employment Agreement, dated as of September 29, 2021, by and between ADMA
Biologics, Inc. and Brian Lenz (incorporated by reference to Exhibit 10.3 to the Company’s Current
Report on Form 8-K, filed with the SEC on October 1, 2021).
Plasma Purchase Agreement, dated as of November 17, 2011, by and between Biotest
Pharmaceuticals Corporation and ADMA Biologics, Inc., as amended by First Amendment to Plasma
Purchase Agreement, dated as of December 1, 2011, by and between Biotest Pharmaceuticals
Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.9 to
Amendment No. 3 to the Company’s Current Report on Form 8-K/A, filed with the SEC on June 22,
2012).
Second Amendment to Plasma Purchase Agreement, dated as of December 18, 2015, by and between
Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to
Exhibit 10.3.1 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 23,
2016).
Third Amendment to Plasma Purchase Agreement, dated as of April 8, 2016, by and between Biotest
Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to
Exhibit 10.3.2 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on May 13,
2016).

80

Exhibit No. Description

10.5.3

10.5.4+

10.6+

10.6.1+

10.7+

10.7.1+

10.8

10.9

10.10

10.11

10.12

10.13

10.14

10.15+

10.15.1

Fourth Amendment to Plasma Purchase Agreement, dated as of June 6, 2017, by and between Biotest
Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to
Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 11,
2017).
Fifth Amendment to Plasma Purchase Agreement, dated as of January 1, 2019, by and between
Grifols Worldwide Operations Limited (as successor-in-interest to Biotest Pharmaceuticals
Corporation) and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.1 to the
Company’s Current Report on Form 8-K, filed with the SEC on January 2, 2019).
Plasma Supply Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC
and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.5 to the
Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
Amendment #1 to the Plasma Supply Agreement, dated as of July 19, 2018, by and between Biotest
Pharmaceuticals Corporation and ADMA BioManufacturing, LLC (incorporated herein by reference to
Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 10,
2018).
Plasma Purchase Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing,
LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.6 to the
Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
Amendment to Plasma Purchase Agreement, dated as of July 19, 2018, by and between Biotest
Pharmaceuticals Corporation and ADMA BioManufacturing, LLC (incorporated herein by reference to
Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 10,
2018).
Amended and Restated Agreement for Services, effective as of January 1, 2016, as amended, by and
between ADMA Biologics, LLC and Areth LLC (incorporated herein by reference to Exhibit 10.18 to
the Company’s Quarterly Report on Form 10-Q, filed with the SEC on August 12, 2016).
Lease, effective as of February 17, 2017, by and between Home Center Properties, LLC and ADMA
BioCenters Georgia Inc. (incorporated herein by reference to Exhibit 10.22 to the Company’s Annual
Report on Form 10-K, filed with the SEC on February 24, 2017).
Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.12 to the
Company’s Current Report on Form 8-K, filed with the SEC on February 13, 2012).
Credit Agreement and Guaranty, dated as of February 11, 2019, by and among the Company, ADMA
Plasma Biologics, Inc., ADMA BioCenters Georgia Inc., ADMA BioManufacturing, LLC, and
Perceptive Credit Holdings II, LP. (incorporated herein by reference to Exhibit 10.1 to the Company’s
Current Report on Form 8-K, filed with the SEC on February 12, 2019).
Amendment No. 1 to Credit Agreement and Guaranty, dated as of May 3, 2019, by and among the
Company, ADMA Plasma Biologics, Inc., ADMA BioCenters Georgia Inc., ADMA
BioManufacturing, LLC and Perceptive Credit Holdings II, LP (incorporated by reference to
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 3, 2019).
Amendment No. 2 to the Credit Agreement and Guaranty, dated December 8, 2020, by and among
the Company, ADMA Plasma Biologics, Inc., ADMA BioCenters Georgia Inc., ADMA
BioManufacturing, LLC and Perceptive Credit Holdings II, LP. (incorporated by reference to
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on December 9, 2020).
Security Agreement, dated as of February 11, 2019, by and among the Company, ADMA Plasma
Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC, and Perceptive
Credit Holdings II, LP. (incorporated herein by reference to Exhibit 10.2 to the Company’s Current
Report on Form 8-K, filed with the SEC on February 12, 2019).
License Agreement, effective as of December 31, 2012, by and between ADMA Biologics, Inc. and
Biotest AG (incorporated herein by reference to Exhibit 10.21 to the Company’s Registration
Statement on Form S-1, filed with the SEC on February 11, 2013).
First Amendment to License Agreement, dated as of June 6, 2017, by and between the Company and
Biotest AG (incorporated herein by reference to Exhibit 10.8 to the Company’s Quarterly Report on
Form 10-Q, filed with the SEC on August 11, 2017).

81

Exhibit No. Description

10.16+

Manufacturing Agreement, dated as of September 30, 2011, by and between ADMA
BioManufacturing, LLC (as successor-in-interest to Biotest Pharmaceuticals Corporation) and Sanofi
Pasteur S.A. (incorporated herein by reference to Exhibit 10.24 to the Company’s Annual Report on
Form 10-K, filed with the SEC on March 29, 2018).

10.16.1+ Amendment #2 to the Manufacturing Agreement, effective as of August 1, 2016, by and between

ADMA BioManufacturing, LLC (as successor-in-interest to Biotest Pharmaceuticals Corporation) and
Sanofi Pasteur S.A. (incorporated herein by reference to Exhibit 10.24.1 to the Company’s Annual
Report on Form 10-K, filed with the SEC on March 29, 2018).

10.16.2+ Amendment #3 to the Manufacturing Agreement, effective as of December 21, 2017, by and between

10.17

ADMA BioManufacturing, LLC and Sanofi Pasteur S.A. (incorporated herein by reference to
Exhibit 10.24.2 to the Company’s Annual Report on Form 10-K, filed with the SEC on March 29,
2018).
Stockholders Agreement, dated as of June 6, 2017, by and between the Company and Biotest
Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.2 to the Company’s
Current Report on Form 8-K, filed with the SEC on June 12, 2017).
Transition Services Agreement, dated as of January 1, 2019, by and between the Company and
Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.22 to the
Company’s Annual Report on Form 10-K, filed with the SEC on March 13, 2019).
10.19++ Amendment #1 to Transition Services Agreement, dated as of August 29, 2019, by and between

10.18+

10.21

10.20

10.22

ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated by reference
from Exhibit 10.1 to Current Report on Form 8-K, filed on September 5, 2019).
Amendment 3 to the Amended and Restated Agreement for Services, effective as of November 7,
2019, by and between ADMA Biologics, LLC and Areth LLC (incorporated herein by reference to the
Exhibit 10.27 to the Company’s Annual Report on Form 10-K filed March 12, 2020).
Amendment 4 to the Amended and Restated Agreement For Services Between ADMA
BioManufacturing, LLC and Areth LLC (incorporated by reference to Exhibit 10.1 to the Company’s
Quarterly Report on Form 10-Q filed on November 9, 2022).
Distribution Agreement, dated September 3, 2021, by and between ADMA Biologics, Inc. and
Raymond James & Associates, Inc. (incorporated by reference to Exhibit 1.1 to the Company’s
Current Report on Form 8-K filed on September 3, 2021).
Form of Retention Bonus Agreement (incorporated by reference to Exhibit 10.1 to the Company’s
Current Report on Form 8-K filed on October 1, 2021).
Separation Agreement and Release, dated August 6, 2021, by and between ADMA Biologics, Inc. and
James Mond (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on
Form 8-K filed on August 11, 2021).
Credit Agreement and Guaranty, dated as of March 23, 2022, by and among the Company, Hayfin
Services LLP and the lenders party thereto (incorporated by reference to Exhibit 10.24 to the
Company’s Annual Report on Form 10-K, filed with the SEC on March 24, 2022).
10.25.1* Amendment No. 1 to Credit Agreement and Guaranty, dated March 23, 2023 by and among the

10.25

10.23

10.24

10.26

10.27†

21.1*
23.1*
31.1*

31.2*

Company, Hayfin Services LLP and the lenders party thereto.
Security Agreement, dated as of March 23, 2022, by and among the Company, certain subsidiaries of
the Company and Hayfin Services LLP (incorporated by reference to Exhibit 10.25 to the Company’s
Annual Report on Form 10-K, filed with the SEC on March 24, 2022).
ADMA Biologics, Inc. 2022 Equity Compensation Plan (incorporated herein by reference to Exhibit
10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on June 21, 2022)
Subsidiaries of the Company.
Consent of CohnReznick LLP.
Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a), as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a), as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

82

Exhibit No. Description

Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
The following materials from ADMA Biologics, Inc. Form 10-K for the year ended December 31,
2022, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets
at December 31, 2022 and December 31, 2021, (ii) Consolidated Statements of Operations for the
years ended December 31, 2022 and 2021, (iii) Consolidated Statements of Changes in Stockholders’
Equity for the years ended December 31, 2022 and 2021, (iv) Consolidated Statements of Cash Flows
for the years ended December 31, 2022 and 2021; and (v) Notes to Consolidated Financial
Statements.
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Confidential treatment has been granted with respect as to certain portions of this exhibit. Such portions have been redacted and
submitted separately to the SEC.

Portions of this exhibit and the schedules thereto have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K.

Filed herewith.

Furnished herewith.

Management compensatory plan, contract or arrangement.

32.1**

32.2**

101*

104

+

++

*

**

†

Item 16.

Form 10-K Summary

None.

83

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant

has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

ADMA Biologics, Inc.

Date: March 23, 2023

By:

/s/ Adam S. Grossman

Name: Adam S. Grossman
Title:

President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, report has been signed below by the

following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature

Title

/s/ Adam S. Grossman

Adam S. Grossman

President and Chief Executive Officer
(Principal Executive Officer) and Director

Date

March 23, 2023

March 23, 2023

/s/ Brian Lenz

Brian Lenz

/s/ Steven A. Elms

Steven A. Elms

Executive Vice President and Chief Financial
Officer (Principal Financial Officer and Principal
Accounting Officer)

Chairman of the Board of Directors

March 23, 2023

/s/ Dr. Jerrold B. Grossman

Vice Chairman of the Board of Directors

March 23, 2023

Dr. Jerrold B. Grossman

/s/ Martha J. Demski

Martha J. Demski

/s/ Bryant E. Fong

Bryant E. Fong

Director

Director

/s/ Lawrence P. Guiheen

Director

Lawrence P. Guiheen

/s/ Young T. Kwon

Young T. Kwon

Director

March 23, 2023

March 23, 2023

March 23, 2023

March 23, 2023

84

ADMA BIOLOGICS, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm (PCAOB ID )596. . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Balance Sheets as of December 31, 2022 and 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Operations for the years ended December 31, 2022 and 2021 . . . . . . . . . . . . .
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2022

and 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021 . . . . . . . . . . . .
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

F-2
F-4
F-5

F-6
F-7
F-8

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of ADMA Biologics, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of ADMA Biologics, Inc. and subsidiaries

(the ‘‘Company’’) as of December 31, 2022 and 2021; the related consolidated statements of operations, changes
in stockholders’ equity, and cash flows for the years then ended; and, the related notes (collectively referred to as
the ‘‘consolidated financial statements’’). In our opinion, the consolidated financial statements present fairly, in
all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of
its operations and its cash flows for the years then ended in conformity with accounting principles generally
accepted in the United States of America.
Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility

is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States) (‘‘PCAOB’’) and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are
free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are
required to obtain an understanding of internal control over financial reporting, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated
financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the
consolidated financial statements that were communicated or required to be communicated to the audit committee
and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements, and
(2) involved especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we
are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit
matters or on the accounts or disclosures to which they relate.
Inventory

Description of the matter

As of December 31, 2022, the Company’s inventory totaled $163,280,047. As described in the notes to the

consolidated financial statements, the valuation of inventory involves significant estimates relating to the
capitalization of labor and overhead costs to the work in process and finished goods inventories as well as lower
of cost or net realizable value considerations. Given the significance of the inventory value, the importance of
inventory to the Company’s operations, the various components and the multiple locations and the complexity of
the computations, auditing the inventory was challenging and involved a relatively high degree of auditor
judgement and subjectivity, extensive testing, and the involvement of more senior members of the engagement
team to design the appropriate responsive audit procedures and to supervise, execute and review the test results.
How we addressed the matter in our audit

We obtained an understanding of and tested the Company’s process to estimate labor and overhead in the

inventory to devise our responsive audit approach. We performed substantive test procedures relating to the

F-2

inventory valuation, which included verifying significant components of the valuation to supporting records,
assessing the application of direct labor costs included in the valuation and assessing the appropriateness of the
components of the indirect overhead pools as well as the application of such pool to the valuation. We verified
the completeness and accuracy of the data used in management’s valuation and the mathematical accuracy of the
direct labor and overhead applications. To assess management’s assertion that inventory is carried at the lower of
cost or net realizable value, we tested subsequent sales transactions and net sales proceeds.

Sales Rebate Liabilities

Description of the matter

As disclosed in Note 2 to the consolidated financial statements, revenue from the sale of the Company’s

products is recorded net of estimated rebates, price protection arrangements and customer incentives, including
prompt pay discounts, wholesaler chargebacks and other wholesaler fees. Estimated rebates are also attributable
to government programs that mandate various reductions from list price, which are reflected as liabilities and
settled through cash payments.

Auditing the sales rebate liabilities related to U.S. Medicaid, Medicare Part D, and managed care is complex
because of the subjectivity of certain assumptions and judgments required to develop estimates. These significant
assumptions and judgments include consideration of legal interpretations of applicable laws and regulations,
historical claims experience, payer channel mix, current contract prices, unbilled claims and claims submission
time lags. Additionally, auditing this matter is challenging given the Company’s limited history in selling certain
of its products.

How we addressed the matter in our audit

We obtained an understanding of the Company’s process to estimate rebate liabilities to devise our

responsive audit approach. We performed substantive test procedures related to the rebate accruals, which
included testing the significant assumptions and mathematical accuracy. We tested the completeness and accuracy
of the data used in the estimates and developed expectations of the key inputs using independent sources. To
address the completeness of the reserves, we also assessed the historical accuracy of management’s estimates by
comparing actual activity to previous estimates and performing analytical procedures. Finally, we considered
subsequent events and any new information after the financial statement date that would require an adjustment to
the accruals.

Liquidity Analysis

Description of the matter

The Company asserts that the cash on hand and certain other sources of funding as described in Note 1 to
the consolidated financial statements provide sufficient liquidity to satisfy obligations for at least one year from
the date of issuance of these consolidated financial statements. We concluded that liquidity considerations
involved in the Company’s ability to continue as a going concern are complex and therefore a critical audit
matter as such are complex. Finally, there is a high degree of subjectivity in the estimates prepared by
management and in our selection of appropriate audit procedures, resulting in this to be a challenging audit area.

How we addressed the matter in our audit

We obtained an understanding the Company’s process to prepare cash flow projections to devise our
responsive audit approach. We obtained and audited management’s projections, considering their completeness
with respect to cash obligations. Through cumulative audit knowledge, we applied judgement in obtaining
evidence to support the projections and scrutinized the sources and probability of realization of the projected
funds. We compared the data provided to sensitivity adjusted projections, made inquiries of management and
applied our industry knowledge. Finally, we considered management’s overall ability to put forth reasonable
projections based on the performance of retrospective audit procedures on historic cash flow projections and
based on the results of audit procedures applied to other estimates.

/s/ CohnReznick LLP

We have served as the Company’s auditor since 2008.

Parsippany, New Jersey

March 23, 2023

F-3

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2022 and 2021

December 31,
2022

December 31,
2021

ASSETS
Current assets:

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . .

Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Right to use assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 86,521,542
15,505,048
163,280,047
5,095,146

270,401,783
58,261,481
1,013,415
3,529,509
10,485,447
4,770,246

$ 51,089,118
28,576,857
124,724,091
4,339,245

208,729,311
50,935,074
1,728,768
3,529,509
7,262,658
4,067,404

TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 348,461,881

$ 276,252,724

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other current liabilities . . . . . . . . . . . . . . . . . . . . . . .
Current portion of deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 13,229,390
24,989,349
142,834
905,369

$ 12,429,409
17,214,988
142,834
591,084

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior notes payable, net of discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred revenue, net of current portion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
End of term fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lease obligations, net of current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39,266,942
142,833,063
1,833,031
1,500,000
10,704,176
350,454

196,487,666

30,378,315
94,866,239
1,975,865
—
7,462,388
397,351

135,080,158

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Preferred Stock, $0.0001 par value, 10,000,000 shares authorized, no shares
issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common Stock - voting, $0.0001 par value, 300,000,000 shares authorized,
221,816,930 and 195,813,817 shares issued and outstanding . . . . . . . . . . .
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

—

22,182
629,968,704
(478,016,671)

19,581
553,265,706
(412,112,721)

TOTAL STOCKHOLDERS’ EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

151,974,215

141,172,566

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY . . . . . . . . . . .

$ 348,461,881

$ 276,252,724

The accompanying notes are an integral part of these consolidated financial statements.

F-4

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31, 2022 and 2021

Years Ended December 31,
2021
2022

REVENUES:

Product revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
License revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of product revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$153,936,858
142,834

154,079,692
118,814,535

35,265,157

$ 80,799,791
142,834

80,942,625
79,769,341

1,173,284

OPERATING EXPENSES:

Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plasma center operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3,613,764
17,843,096
715,353
52,458,024

74,630,237

3,646,060
12,288,723
715,353
42,896,889

59,547,025

LOSS FROM OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(39,365,080)

(58,373,741)

OTHER INCOME (EXPENSE):

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on extinguishment of debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44,833
(19,279,373)
(6,669,941)
(634,389)

34,532
(13,056,834)
—
(251,575)

Other expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(26,538,870)

(13,273,877)

NET LOSS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (65,903,950)

$ (71,647,618)

BASIC AND DILUTED LOSS PER COMMON SHARE . . . . . . . . . . . . .

$

(0.33)

$

(0.51)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic and Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

197,874,895

139,578,538

The accompanying notes are an integral part of these consolidated financial statements.

F-5

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Years Ended December 31, 2022 and 2021

Common Stock

Shares

Amount

Additional
Paid-in
Capital

Accumulated
Deficit

Total
Stockholders’
Equity

Balance at December 31, 2020 . . . . . . . . 104,902,888 $10,490 $428,704,039 $(340,465,103) $ 88,249,426
Stock-based compensation . . . . . . . . . . . .
3,488,253
Issuance of common stock, net of

3,488,253

—

—

—

offering expenses . . . . . . . . . . . . . . . . .
Vesting of Restricted Stock Units, net of
shares withheld for taxes and retired . .
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . .

90,846,029

9,085

121,135,018

— 121,144,103

64,900
—

6
—

(61,604)

—
— (71,647,618)

(61,598)
(71,647,618)

Balance at December 31, 2021 . . . . . . . . 195,813,817
Stock-based compensation . . . . . . . . . . . .
—
Warrants issued in connection with note
payable . . . . . . . . . . . . . . . . . . . . . . . . .
Vesting of Restricted Stock Units, net of
shares withheld for taxes . . . . . . . . . . .
Stock options exercised . . . . . . . . . . . . . .
Issuance of common stock, net of

1,808,561
68,679

—

19,581
—

553,265,706
5,214,531

(412,112,721)
—

141,172,566
5,214,531

—

9,569,604

181
7

(2,899,021)
175,008

—

—
—

9,569,604

(2,898,840)
175,015

offering expenses . . . . . . . . . . . . . . . . .
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . .

24,125,873
—

2,413
—

64,642,876

— (65,903,950)

— 64,645,289
(65,903,950)

Balance at December 31, 2022 . . . . . . . . 221,816,930 $22,182 $629,968,704 $(478,016,671) $151,974,215

The accompanying notes are an integral part of these consolidated financial statements.

F-6

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31, 2022 and 2021

Years Ended December 31,

2022

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (65,903,950) $ (71,647,618)
Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on disposal of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest paid in kind. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock-based compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of debt discount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of license revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,113,369
426,536
2,997,746
5,214,531
2,401,669
6,669,941
(142,834)

5,495,502
220,761
—
3,488,253
1,897,373
—
(142,834)

Changes in operating assets and liabilities:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits and other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current and non-current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13,071,809
(38,555,957)
(755,900)
122,468
799,981
7,534,572
(502,238)

(15,339,567)
(43,188,489)
(1,292,779)
(1,775,205)
1,355,700
8,341,341
218,580

Net cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(59,508,257)

(112,368,982)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13,911,171)

(13,511,258)

Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13,911,171)

(13,511,258)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of common stock, net of offering expenses . . . . . . . .
Payment of debt refinancing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from issuance of note payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes paid on vested Restricted Stock Units . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments on finance lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from the exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment of deferred financing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(100,000,000)
64,645,289
(2,000,000)
151,750,000
(2,898,840)
(36,684)
175,015
(2,782,928)

—
121,144,103
—
—
(61,598)
(34,299)
—
—

Net cash provided by financing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

108,851,852

121,048,206

Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents - beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . .

35,432,424
51,089,118

(4,832,034)
55,921,152

Cash and cash equivalents - end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,521,542 $ 51,089,118

The accompanying notes are an integral part of these consolidated financial statements.

F-7

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

1. ORGANIZATION AND BUSINESS

ADMA Biologics, Inc. (‘‘ADMA’’ or the ‘‘Company’’) is an end-to-end commercial biopharmaceutical
company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics for the
treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. The
Company’s targeted patient populations include immune-compromised individuals who suffer from an underlying
immune deficiency disorder or who may be immune-suppressed for medical reasons.

ADMA operates through its wholly-owned subsidiaries ADMA BioManufacturing, LLC (‘‘ADMA

BioManufacturing’’) and ADMA BioCenters Georgia Inc. (‘‘ADMA BioCenters’’). ADMA BioManufacturing was
formed in January 2017 to facilitate the acquisition of the Biotest Therapy Business Unit (‘‘BTBU’’) from BPC
Plasma, Inc. (formerly Biotest Pharmaceuticals Corporation) (‘‘BPC’’ and, together with Biotest AG, ‘‘Biotest’’)
on June 6, 2017. The acquisition included certain assets (the ‘‘Biotest Assets’’) of BTBU, which included the
U.S. Food and Drug Administration (‘‘FDA’’)-licensed BIVIGAM and Nabi-HB immunoglobulin products, and
an FDA-licensed plasma fractionation manufacturing facility located in Boca Raton, FL (the ‘‘Boca Facility’’)
(the ‘‘Biotest Transaction’’). BTBU had previously been the Company’s third-party contract manufacturer.
ADMA BioCenters is the Company’s source plasma collection business with ten plasma collection facilities
located throughout the U.S., eight of which hold an approved license with the FDA.

The Company has three FDA-approved products, all of which are currently marketed and commercially
available: (i) BIVIGAM (Immune Globulin Intravenous, Human), an Intravenous Immune Globulin (‘‘IVIG’’)
product indicated for the treatment of Primary Humoral Immunodeficiency (‘‘PI’’), also known as Primary
Immunodeficiency Disease (‘‘PIDD’’) or Inborn Errors of Immunity, and for which the Company received FDA
approval on May 9, 2019 and commenced commercial sales in August 2019; (ii) ASCENIV (Immune Globulin
Intravenous, Human – slra 10% Liquid), an IVIG product indicated for the treatment of PI, for which the
Company received FDA approval on April 1, 2019 and commenced first commercial sales in October 2019; and
(iii) Nabi-HB (Hepatitis B Immune Globulin, Human), which is indicated for the treatment of acute exposure to
blood containing Hepatitis B surface antigen (‘‘HBsAg’’) and other listed exposures to Hepatitis B. In addition to
its commercially available immunoglobulin products, the Company provides contract manufacturing and
laboratory services for certain clients and generates revenues from the sale of intermediate by-products that result
from the immunoglobulin production process. The Company seeks to develop a pipeline of plasma-derived
therapeutics, and its products and product candidates are intended to be used by physician specialists focused on
caring for immune-compromised patients with or at risk for certain infectious diseases.

As of December 31, 2022, the Company had working capital of $231.1 million, including $86.5 million of

cash and cash equivalents. Based upon the Company’s current projected revenue and expenditures, including
capital expenditures and continued implementation of the Company’s commercialization and expansion activities,
the Company’s management currently believes that its cash, cash equivalents, projected revenue and accounts
receivable will be sufficient to fund ADMA’s operations, as currently conducted, through the end of the
first quarter of 2024, at which time the Company believes it will begin to generate positive cash flow from
operations. These estimates may change based upon several factors, including the success of the Company’s
commercial sales of its products, whether or not the assumptions underlying the Company’s projected revenues
and expenses are correct and the acceptability of ADMA’s immune globulin products by physicians, patients or
payers. There can be no assurance that the Company’s approved products will be commercially viable, or that
plant capacity expansion, plasma center buildouts or other capital improvements will be successfully completed
or that any product developed in the future will be approved. The Company is subject to risks common to
companies in the biotechnology and pharmaceutical manufacturing industries including, but not limited to,
dependence on collaborative arrangements, development by the Company or its competitors of new technological
innovations, dependence on key personnel, inflationary pressures, supply chain constraints, protection of
proprietary technology, and compliance with FDA and other governmental regulations and approval requirements.

The Company continues to evaluate a variety of strategic alternatives through its ongoing engagement with

Morgan Stanley. The exploration of value-creating opportunities remains a top corporate priority for ADMA.

F-8

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

On December 9, 2022, the Company issued 24,125,873 shares of its common stock through an underwritten

public offering and received net proceeds of $64.6 million, and on March 23, 2022 the Company received
approximately $47.0 million in net proceeds from the refinancing of its senior credit facility (see Note 7).

2. SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation and basis of presentation

The accompanying consolidated financial statements include the accounts of ADMA and its wholly-owned
subsidiaries, and have been prepared in conformity with accounting principles generally accepted in the United
States of America (‘‘U.S. GAAP’’) and in accordance with Article 8 of Regulation S-X of the Securities and
Exchange Commission (the ‘‘SEC’’). All intercompany balances have been eliminated in consolidation. Any
reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting
Standards Codification (‘‘ASC’’) and Accounting Standards Updates (‘‘ASU’’) of the Financial Accounting
Standards Board (the ‘‘FASB’’). During the years ended December 31, 2022 and 2021, comprehensive loss was
equal to the net loss amounts presented for the respective periods in the accompanying consolidated statements
of operations.

Use of estimates

The preparation of financial statements requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Significant estimates include rebates and chargebacks deducted from
gross revenues, the realizable value of accounts receivable, valuation of inventory, assumptions used in projecting
future liquidity and capital requirements, assumptions used in the fair value of awards granted under the
Company’s equity incentive plans and warrants issued in connection with the issuance of notes payable and the
valuation allowance for the Company’s deferred tax assets.

Cash and cash equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to

be cash equivalents.

The Company regularly maintains cash and cash equivalents at third-party financial institutions in excess of

the Federal Deposit Insurance Corporation insurance limit. Although the Company monitors the daily cash
balances in its operating accounts and adjusts the balances as appropriate, these balances could be impacted, and
there could be a material adverse effect on the Company’s business, if one or more of the financial institutions
with which the Company has deposits fails or is subject to other adverse conditions in the financial or credit
markets. To date, the Company has not experienced a loss or lack of access to its deposited cash or cash
equivalents; however, the Company cannot provide assurance that access to its cash and cash equivalents will not
be impacted by adverse conditions in the financial and credit markets in the future.

Accounts receivable

Accounts receivable is reported at realizable value, net of allowances for contractual credits and doubtful
accounts in the amount of $0.1 million and $0.2 million at December 31, 2022 and 2021, respectively, which are
recognized in the period the related revenue is recorded. The Company extends credit to its customers based
upon an evaluation of each customer’s financial condition and credit history. Evaluations of the financial
condition and associated credit risk of customers are performed on an ongoing basis. Based on these evaluations,
the Company has concluded that its credit risk is minimal (see Note 16).

Inventories

Raw materials inventory consists of various materials purchased from suppliers, including normal source

plasma, used in the production of the Company’s products. Work-in-process and finished goods inventories
(see Note 3) reflect the cost of raw materials as well as costs for direct and indirect labor, primarily salaries,

F-9

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

wages and benefits for applicable employees, as well as an allocation of overhead costs related to the
Boca Facility including utilities, property taxes, general repairs and maintenance, consumable supplies and
depreciation. The allocation of Boca Facility overhead to inventory is generally based upon the estimated square
footage of the Boca Facility that is used in the production of the Company’s products relative to the total square
footage of the facility.

Inventories, including plasma intended for resale and plasma intended for internal use in the Company’s
manufacturing, commercialization or research and development activities, are carried at the lower of cost or net
realizable value determined by the first-in, first-out method. For both the Company’s immune globulin products
and plasma intended for resale and internal use, net realizable value is generally determined based upon the
consideration the Company expects to receive when the inventory is sold, less costs to deliver the inventory to
the recipient. The estimates for net realizable value of inventory are based on contractual terms or upon historical
experience and certain other assumptions, and the Company believes that such assumptions are reasonable.
Inventory is periodically reviewed to ensure that its carrying value does not exceed its net realizable value, and
adjustments are recorded to write down such inventory, with a corresponding charge to cost of product revenue,
when the carrying value or historical cost exceeds its estimated net realizable value. In addition, costs associated
with the production of conformance or engineering lots that would not qualify as immediately available for
commercial sale are charged to cost of product revenue and not capitalized into inventory.

Property and equipment

Assets comprising property and equipment (see Note 4) are stated at cost less accumulated depreciation.

Depreciation is calculated using the straight-line method over the asset’s estimated useful life. Land is not
depreciated. The buildings have been assigned a useful life of 30 years. Property and equipment other than land
and buildings have useful lives ranging from 3 to 15 years. Leasehold improvements are amortized over the
lesser of the lease term or their estimated useful lives.

Goodwill

Goodwill represents the excess of purchase price over the fair value of net assets acquired by the Company.
Goodwill at December 31, 2022 and 2021 was $3.5 million, all of which is attributable to the Company’s ADMA
BioManufacturing business segment. There were no changes to the carrying amount of goodwill during the years
ended December 31, 2022 and 2021.

Goodwill is not amortized but is assessed for impairment on an annual basis or more frequently if
impairment indicators exist. The Company has the option to perform a qualitative assessment of goodwill to
determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying
amount, including goodwill and other intangible assets. If the Company concludes that this is the case, then it
must perform a goodwill impairment test by comparing the fair value of the reporting unit to its carrying value.
An impairment charge is recorded to the extent the reporting unit’s carrying value exceeds its fair value, not to
exceed the total amount of goodwill allocated to that reporting unit. The Company performs its annual goodwill
impairment test as of October 1 of each year. The Company’s annual goodwill impairment tests as of October 1,
2022 and 2021 did not result in any impairment charges related to goodwill for the years ended December 31,
2022 and 2021.

Impairment of long-lived assets

The Company assesses the recoverability of its long-lived assets, which include property and equipment and

finite-lived intangible assets, whenever significant events or changes in circumstances indicate impairment may
have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with the
asset are compared to its carrying amount to determine whether the asset’s carrying value is recoverable. Any
resulting impairment is recorded as a reduction in the carrying value of the related asset in excess of fair value
and a charge to operating results. For the years ended December 31, 2022 and 2021, the Company determined
that there was no impairment of its long-lived assets.

F-10

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Revenue recognition

Revenues for the years ended December 31, 2022 and 2021 are comprised of (i) revenues from the sale of
the Company’s immunoglobulin products, BIVIGAM, ASCENIV and Nabi-HB, (ii) product revenues from the
sale of human plasma collected by the Company’s Plasma Collection Centers business segment, (iii) contract
manufacturing and laboratory services revenue, (iv) revenues from the sale of intermediate by-products; and
(v) license and other revenues primarily attributable to the out-licensing of ASCENIV to Biotest in 2012 to
market and sell this product in Europe and selected countries in North Africa and the Middle East. Biotest has
provided the Company with certain services and financial payments in accordance with the related Biotest license
agreement and is obligated to pay the Company certain amounts in the future if certain milestones are achieved.
Deferred revenue is amortized into income over the term of the Biotest license, representing a period of
approximately 22 years.

Product revenue is recognized when the customer is deemed to have control over the product. Control is

determined based on when the product is shipped or delivered and title passes to the customer. Revenue is
recorded in an amount that reflects the consideration the Company expects to receive in exchange. Revenue from
the sale of the Company’s immunoglobulin products is recognized when the product reaches the customer’s
destination, and is recorded net of estimated rebates, price protection arrangements and customer incentives,
including prompt pay discounts, wholesaler chargebacks and other wholesaler fees. These estimates are based on
contractual arrangements, historical experience and certain other assumptions, and the Company believes that
such estimates are reasonable. For revenues associated with contract manufacturing and the sale of intermediates,
control transfers to the customer and the performance obligation is satisfied when the customer takes possession
of the product from the Boca Facility or from a third-party warehouse that is utilized by the Company.

Product revenues from the sale of human plasma collected at the Company’s plasma collection centers are
recognized at the time control of the product has been transferred to the customer, which generally occurs at the
time of shipment. Product revenues are recognized at the time of delivery if the Company retains control of the
product during shipment.

Cost of product revenue

Cost of product revenue includes costs associated with the manufacture of the Company’s FDA approved

products and intermediates and for the collection of human source plasma, as well as expenses related to
conformance batch production, process development and scientific and technical operations when these
operations are attributable to marketed products. When the activities of these operations are attributable to new
products in development, the expenses are classified as research and development expenses.

Research and development expenses

Research and development expenses consist of clinical research organization costs, costs related to clinical

trials, post-marketing commitment studies for BIVIGAM and ASCENIV, wages, benefits and stock-based
compensation for employees directly related to research and development activities. All research and
development costs are expensed as incurred.

Plasma center operating expenses

Plasma center operating expenses consist of certain general and administrative plasma center costs, initial

opening, marketing and start-up costs, rent expense, maintenance, utilities, compensation and benefits for center
and administrative staff, advertising and promotion expenses and computer software fees related to donor
collections.

Advertising and marketing expenses

Advertising and marketing expense includes cost for promotional materials and trade show expenses for the
marketing of the Company’s products and services and expenses incurred for attracting donors to the Company’s
plasma collection centers. All advertising and marketing expenses are expensed as incurred. Advertising and
marketing expenses were $2.2 million and $1.4 million for the years ended December 31, 2022 and 2021,
respectively.

F-11

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Stock-based compensation

The Company follows recognized accounting guidance which requires all equity-based payments, including
grants of stock options, to be recognized in the statement of operations as compensation expense based on their
fair values at the date of grant. Compensation expense related to awards to employees and directors with
service-based vesting conditions is recognized on a straight-line basis over the associated vesting period of the
award based on the grant date fair value of the award. Stock options granted under the Company’s equity
incentive plans generally have a four-year vesting period and a term of 10 years. For milestone-based equity
awards (see Note 8) the Company periodically assesses the probability of vesting for each milestone-based award
and adjusts compensation expense based on its probability assessment. Pursuant to ASU No. 2016-09,
Improvements to Employee Share-Based Payment Accounting (Topic 718), the Company has elected not to
establish a forfeiture rate, as stock-based compensation expense related to forfeitures of unvested equity awards
is fully reversed at the time of forfeiture.

Income taxes

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the consolidated financial statements or its tax returns. Under this method,
deferred tax assets and liabilities are recognized for the temporary differences between the tax bases of assets and
liabilities and their respective financial reporting amounts at enacted tax rates in effect for the years in which the
temporary differences are expected to reverse. The Company records a valuation allowance on its deferred tax
assets if it is more likely than not that the Company will not generate sufficient taxable income to utilize its
deferred tax assets (see Note 11). The Company is subject to income tax examinations by major taxing
authorities for all tax years since 2018 and for previous periods as it relates to the Company’s net operating loss
carryforwards.

Loss Per Share

Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted

average number of shares of common stock outstanding during the period. Diluted loss per share is calculated by
dividing net loss attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by
the weighted average number of shares of common stock and dilutive common stock outstanding during the
period. Potentially dilutive common stock includes the shares of common stock issuable upon the exercise of
outstanding stock options and warrants (using the treasury stock method). Potentially dilutive common stock in
the diluted net loss per share computation is excluded to the extent that it would be anti-dilutive. No potentially
dilutive securities are included in the computation of any diluted per share amounts as the Company reported a
net loss for all periods presented. For the years ended December 31, 2022 and 2021, the following securities
were excluded from the calculation of diluted loss per common share because of their anti-dilutive effects:

Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restricted Stock Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8,256,211
2,866,987
13,525,148

7,862,722
4,485,133
4,528,160

24,648,346

16,876,015

For the Years Ended December 31,

2022

2021

Fair value of financial instruments

The carrying amounts of certain of the Company’s financial instruments, including cash and cash

equivalents, accounts receivable and accounts payable are shown at cost, which approximates fair value due to
the short-term nature of these instruments. The debt outstanding under the Company’s senior notes payable
(see Note 7) approximates fair value due to the variable interest rate on this debt.

F-12

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Recent Accounting Pronouncements

There were no new accounting pronouncements adopted during the years ended December 31, 2022 and

2021 that had a significant impact on the Company’s consolidated financial statements.

3.

INVENTORIES

The following table provides the components of inventories:

December 31,
2022

December 31,
2021

Raw materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work-in-process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 48,644,527
56,170,853
58,464,667
$163,280,047

$ 36,755,720
58,968,535
28,999,836
$124,724,091

Raw materials includes plasma and other materials expected to be used in the production of BIVIGAM,
ASCENIV and Nabi-HB. These materials will be consumed in the production of goods expected to be available
for sale or otherwise have alternative uses that provide a probable future benefit. All other activities and
materials associated with the production of inventories used in research and development activities are expensed
as incurred.

Work-in-process inventory primarily consists of bulk drug substance and unlabeled filled vials of the

Company’s immunoglobulin products.

Finished goods inventory is comprised of immunoglobulin product inventory and related intermediates that
are available for commercial sale, as well as plasma collected at the Company’s plasma collection centers which
is expected to be sold to third-party customers.

4. PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2022 and 2021 is summarized as follows:

Manufacturing and laboratory equipment. . . . . . . . . . . . . . . . . . . . . . . . . . .
Office equipment and computer software . . . . . . . . . . . . . . . . . . . . . . . . . .
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leasehold improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings and building improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . .

December 31,
2022

$ 18,767,807
5,318,669
5,109,898
6,726,995
17,930,905
4,339,441
19,544,307
77,738,022
(19,476,541)
$ 58,261,481

December 31,
2021

$ 16,702,991
4,082,462
3,389,140
5,496,222
11,129,639
4,339,441
19,067,032
64,206,927
(13,271,853)
$ 50,935,074

The Company recorded depreciation expense on property and equipment of $6.4 million and $4.8 million

for the years ended December 31, 2022 and 2021, respectively.

F-13

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

5.

INTANGIBLE ASSETS

Intangible assets at December 31, 2022 and 2021 consist of the following:

Trademark and other intangible

December 31, 2022
Accumulated
Amortization

Cost

Net

Cost

December 31, 2021
Accumulated
Amortization

Net

Rights to intermediates . . . . . . . . . .

rights related to Nabi-HB . . . . . . $4,100,046 $3,270,276 $ 829,770 $4,100,046 $2,684,554 $1,415,492
313,276
723,776
$5,007,467 $3,994,052 $1,013,415 $5,007,467 $3,278,699 $1,728,768

183,645

594,145

907,421

907,421

Under the previous contract manufacturing agreement between ADMA and BPC, intermediate by-products

derived from the manufacture of ASCENIV were property of Biotest. As a result of the Biotest Transaction,
ADMA obtained the right to these intermediate products, which are being amortized over a period of
seven years. The intangible rights to Nabi-HB are also being amortized over a period of seven years.

Amortization expense related to the Company’s intangible assets for the years ended December 31, 2022

and 2021 was $0.7 million. Estimated aggregate future aggregate amortization expense is expected to be as
follows:

2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

715,352
298,063

6. ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other current liabilities at December 31, 2022 and 2021 are as follows:

Accrued rebates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued distribution fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued incentives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued payroll and other compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total accrued expenses and other current liabilities. . . . . . . . . . . . . . . . . . . . . . . .

December 31,
2022

$11,436,484
3,166,896
4,193,919
309,867
4,086,379
1,795,804
$24,989,349

December 31,
2021

$ 5,040,200
4,739,651
4,066,109
1,189,970
1,197,337
981,721
$17,214,988

7. NOTES PAYABLE

Senior Notes Payable

A summary of outstanding senior notes payable is as follows:

Notes payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less:

December 31,
2022

December 31,
2021

$154,747,746

$100,000,000

Debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Senior notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11,914,683)
$142,833,063

(5,133,761)
$ 94,866,239

On March 23, 2022 (the ‘‘Hayfin Closing Date’’), the Company and all of its subsidiaries entered into a
Credit and Guaranty Agreement (the ‘‘Hayfin Credit Agreement’’) with Hayfin Services LLP (‘‘Hayfin’’). The
Hayfin Credit Agreement provides for a senior secured term loan facility in a principal amount of up to
$175.0 million (the ‘‘Hayfin Credit Facility’’), composed of (i) a term loan made on the Hayfin Closing Date in

F-14

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

the principal amount of $ 150.0 million (the ‘‘Hayfin Closing Date Loan’’), and (ii) a delayed draw term loan in
the principal amount of $25.0 million (the ‘‘Hayfin Delayed Draw Loan’’ and, together with the Hayfin Closing
Date Loan, the ‘‘Hayfin Loans’’). The obligation of the lenders to make the Hayfin Delayed Draw Loan was to
expire on March 22, 2023 (see Note 17) and is subject to the satisfaction of certain conditions, including, but not
limited to, the Company’s meeting certain 12-month revenue targets as set forth in the Hayfin Credit Agreement,
which the Company has met. The Hayfin Credit Facility has a maturity date of March 23, 2027 (the ‘‘Hayfin
Maturity Date’’), subject to acceleration pursuant to the Hayfin Credit Agreement, including upon an Event of
Default (as defined in the Hayfin Credit Agreement).

On the Hayfin Closing Date, the Company used $100.0 million of the Hayfin Closing Date Loan to

terminate and pay in full all of the outstanding obligations under the Company’s previously existing credit
facility (the ‘‘Perceptive Credit Facility’’) with Perceptive Credit Holdings II, LP (‘‘Perceptive’’). The Company
also used $2.0 million of the Hayfin Closing Date Loan proceeds to pay a redemption premium to Perceptive and
used approximately $1.0 million of the Hayfin Closing Date Loan proceeds to pay certain fees and expenses
incurred in connection with this transaction. In addition, a $1.8 million upfront fee payable to Hayfin was paid
‘‘in kind’’ and was added to the outstanding principal balance in accordance with the terms of the Hayfin Credit
Agreement. In connection with the retirement of the Perceptive Credit Facility and all of the obligations
thereunder, the Company recorded a loss on extinguishment of debt in the amount of $6.7 million, consisting of
the write-off of unamortized discount related to the Perceptive indebtedness and the redemption premium paid to
Perceptive.

Borrowings under the Hayfin Credit Agreement bear interest, at the Company’s election, at either (a) a base

rate (equal to the highest of (i) the rate of interest per annum last quoted by The Wall Street Journal as the
‘‘Prime Rate’’ in the United States, (ii) the federal funds rate in effect on such day plus 0.50% and (iii) adjusted
Term Secured Overnight Financing Rate (‘‘SOFR’’) for a one-month tenor in effect on such day plus 1.00%),
plus an applicable margin of 8.5%, or (b) adjusted Term SOFR for either a one-month or three-month tenor, as
elected by the Company, and subject to a floor of 1.25%, plus an applicable margin of 9.5% (the ‘‘Applicable
Margin’’); provided, however, that upon, and during the continuance of, an Event of Default, the Applicable
Margin shall increase by an additional 3% per annum. On the last day of each calendar month or quarter during
the term of the Hayfin Credit Facility, the Company will pay accrued interest to Hayfin. The rate of interest in
effect as of the Hayfin Closing Date and as of December 31, 2022 was 10.75% and approximately 13.9%,
respectively. The Company is also permitted to pay ‘‘in kind’’ a portion of the interest on the Hayfin Loans for
each monthly or quarterly interest period in an amount equal to 2.5% per annum, which is added to the principal
amount of the outstanding debt under the Hayfin Credit Facility. From the Hayfin Closing Date through
December 31, 2022, approximately $3.0 million of interest was paid in kind and added to the balance of the
outstanding Hayfin Loans.

On the Hayfin Maturity Date, the Company will pay Hayfin the entire outstanding principal amount
underlying the Hayfin Loans and any accrued and unpaid interest thereon, as well as an exit fee of 1.0% of the
outstanding principal amount being paid. This exit fee is recorded separately as a non-current liability on the
accompanying consolidated balance sheet as of December 31, 2022. Prior to the Hayfin Maturity Date, there are
no scheduled principal payments on the Hayfin Loans. The Company may prepay outstanding principal on the
Hayfin Loans at any time and from time to time upon five business days’ prior written notice, subject to the
payment to Hayfin of, (A) any accrued but unpaid interest on the prepaid principal amount plus (B) an early
prepayment fee in the amount equal to (i) 7.0% of the prepaid principal amount, if prepaid on or prior to the
first anniversary of the Hayfin Closing Date, (ii) 3.0% of the prepaid principal amount, if prepaid after the
first anniversary of the Hayfin Closing Date and on or prior to the second anniversary of the Hayfin Closing
Date, or (iii) 1.0% of the prepaid principal amount, if prepaid after the second anniversary of the Hayfin Closing
Date and on or prior to the third anniversary of the Hayfin Closing Date. In addition, for any prepayments of
principal or payment of principal on the Hayfin Maturity Date, the Company is also required to pay the exit fee.

All of the Company’s obligations under the Hayfin Credit Agreement are secured by a first-priority lien and

security interest in substantially all of the Company’s tangible and intangible assets, including intellectual
property, and all of the equity interests in the Company’s subsidiaries. The Hayfin Credit Agreement contains

F-15

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

certain representations and warranties, affirmative covenants, negative covenants and conditions that are
customarily required for similar financings. The negative covenants restrict or limit the ability of the Company
and its subsidiaries to, among other things and subject to certain exceptions contained in the Hayfin Credit
Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes,
such as mergers or acquisitions, or changes to the Company’s or its subsidiaries’ business activities; make certain
Investments or Restricted Payments (each as defined in the Hayfin Credit Agreement); change its fiscal year; pay
dividends; repay certain other indebtedness; engage in certain affiliate transactions; or enter into, amend or
terminate any other agreements that have the impact of restricting the Company’s ability to make loan
repayments under the Hayfin Credit Agreement. In addition, the Company is required (i) at all times prior to the
Maturity Date to maintain a minimum cash balance of $6.0 million; and (ii) as of the last day of each fiscal
quarter, report IVIG product and related revenues for the trailing 12-month period that exceed the amounts set
forth in the Hayfin Credit Agreement, which range from $75.0 million for the fiscal quarter ended June 30, 2022
to $250.0 million for the fiscal quarter ended December 31, 2026. As of December 31, 2022, the Company was
in compliance with all of the covenants contained in the Hayfin Credit Agreement.

As consideration for the Hayfin Credit Agreement, the Company issued to various entities affiliated with
Hayfin, on the Hayfin Closing Date, warrants to purchase an aggregate of 9,103,047 shares of the Company’s
common stock (the ‘‘Hayfin Warrants’’). The Hayfin Warrants have an exercise price equal to $1.6478 per share,
which is equal to the trailing 30-day Volume Weighted-average Price of the Company’s common stock on the
business day immediately prior to the Hayfin Closing Date. The Hayfin Warrants were valued by the Company at
approximately $9.6 million as of the Hayfin Closing Date and have an expiration date of March 23, 2029.

As a result of the upfront fee and exit fee paid or payable to Hayfin, the expenses incurred by the Company

in connection with this transaction and the value of the Hayfin Warrants, the Company recognized an aggregate
discount on the Hayfin Loans in the amount of $13.9 million. The Company records debt discount as a reduction
to the face amount of the debt, and the debt discount is amortized as interest expense over the life of the debt
using the interest method. Based on the fair value of the Hayfin Warrants and the aggregate amount of fees and
expenses associated with obtaining the Hayfin Credit Facility, the effective interest rate on the Hayfin Loans as
of the Hayfin Closing Date and as of December 31, 2022 was approximately 13.0% and 16.1%, respectively.

8. STOCKHOLDERS’ EQUITY

Preferred Stock

The Company is currently authorized to issue up to 10 million shares of preferred stock, $0.0001 par value

per share. There were no shares of preferred stock outstanding at December 31, 2022 and 2021.

Common Stock

As of December 31, 2022 and 2021, the Company was authorized to issue 300,000,000 shares of its
common stock, $0.0001 par value per share, and 221,816,930 and 195,813,817 shares of common stock were
outstanding as of December 31, 2022 and 2021, respectively. On May 27, 2021, the Company amended its
Second Amended and Restated Certificate of Incorporation to increase the number of shares of common stock
that the Company is authorized to issue from 150,000,000 to 300,000,000. After giving effect to shares reserved
for the issuance of warrants and for awards issued under the Company’s equity incentive plans,
29,177,763 shares of common stock were available for issuance as of December 31, 2022.

On December 9, 2022, the Company completed an underwritten public offering whereby the Company
issued 24,125,873 shares of its common stock. Net proceeds after underwriting discounts and expenses associated
with the offering were approximately $64.6 million and are being used to accelerate commercialization and
production activities, complete plasma center buildouts and obtain FDA approvals, to conclude post-FDA
marketing approval research and development projects, and for working capital, capital expenditures and general
corporate purposes.

During the year ended December 31, 2022, outstanding stock options aggregating to 68,679 shares of

common stock were exercised, and the Company received net proceeds from the exercises of approximately
$0.2 million.

F-16

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

On October 25, 2021, the Company completed an underwritten public offering whereby the Company issued

57.5 million shares of common stock and received gross proceeds of $57.5 million. Net proceeds after
underwriting discounts and expenses associated with the offering were approximately $53.8 million, and were
used to advance the commercial sales of the Company’s FDA approved products through the procurement of raw
materials for the manufacturing of BIVIGAM and ASCENIV, to expand the Company’s plasma collection facility
network, to scale up the manufacturing capacity of the Boca Facility and make continuous improvements in order
to adhere to cGMP compliance, to explore business development opportunities and for general corporate
purposes and other capital expenditures.

On September 3, 2021, the Company entered into a distribution agreement with Raymond James &
Associates, Inc., as agent (‘‘Agent’’), pursuant to which the Company may offer and sell, from time to time, at
its option, through or to the Agent, up to an aggregate of $50 million of shares of the Company’s common stock
(the ‘‘Distribution Agreement’’). The Company currently intends to use any net proceeds from the sale of its
common stock under the Distribution Agreement for general corporate purposes, including procurement of source
plasma and other raw materials, supply chain initiatives and production expenditures, funding expansion of
plasma centers, working capital, capital expenditures, expansion and resources for commercialization activities,
and other potential research and development and business opportunities. The Company currently has
approximately $42.8 million of shares available to sell under the Distribution Agreement. There were no sales
under the Distribution Agreement during the year ended December 31, 2022. During the year ended
December 31, 2021, the Company issued 5,540,831 shares of its common stock under the Distribution
Agreement and received net proceeds of $6.9 million.

On August 5, 2020, the Company entered into an open market sale agreement (as amended from time to

time, the ‘‘Sale Agreement’’) with Jefferies LLC (‘‘Jefferies’’), pursuant to which the Company could offer and
sell, from time to time, at its option, through or to Jefferies, up to an aggregate of $50 million of shares of the
Company’s common stock. On November 5, 2020 and February 3, 2021, the Company and Jefferies amended the
Sale Agreement to provide for increases in the aggregate offering amount under the Sale Agreement such that the
Company could sell shares having an aggregate offering price of up to $105.4 million under the Sale Agreement,
as amended. The Sale Agreement was terminated on August 31, 2021. For the year ended December 31, 2021,
the Company issued and sold 27,805,198 shares of common stock under the 2020 Sale Agreement and received
net proceeds of $60.4 million.

Warrants

On March 23, 2022, the Company issued the Hayfin Warrants, whereby affiliates of Hayfin may purchase

an aggregate of 9,103,047 shares of common stock at an exercise price $1.6478 per share (see Note 7). The
Hayfin Warrants was valued at $9.6 million, using the Black-Scholes option pricing model assuming an expected
term of 7 years, a volatility of 68.1%, a dividend yield of 0% and a risk-free interest rate of 2.36%.

During the year ended December 31, 2022, warrants to purchase 31,750 shares of common stock that had

been issued to a former noteholder of the Company expired. At December 31, 2022 and 2021, the Company had
outstanding warrants to purchase an aggregate of 13,525,148 and 4,528,160 shares, respectively, of common
stock, with a weighted average exercise price of $1.99 and $2.82 per share, respectively, and expiration dates
ranging between May 2023 and December 2030.

Equity Incentive Plans

From time to time the Company granted stock options or other equity-based awards under the Company’s

Amended and Restated 2014 Omnibus Incentive Compensation Plan (the ‘‘2014 Plan’’).

The 2014 Plan, as amended, was approved by the Company’s Board of Directors (the ‘‘Board’’) on
March 15, 2017 and by the Company’s stockholders on May 25, 2017. The maximum number of shares that
were reserved for grant under the 2014 Plan was: (a) 2,334,940 shares; plus (b) an annual increase as of the
first day of the Company’s fiscal year, beginning in 2018 and occurring each year thereafter through 2022, equal
to 4% of the outstanding shares of common stock as of the end of the Company’s immediately preceding fiscal

F-17

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

year, or any lesser number of shares determined by the Board; provided, however, that no more than an
aggregate of 10 million shares of common stock may be issued pursuant to incentive stock options intended to
qualify under Section 422 of the Internal Revenue Code. As of December 31, 2021, an aggregate of
69,090 shares were available for issuance under the 2014 Plan. In accordance with the foregoing, on January 1,
2022 the aggregate number of shares available for issuance increased to 7,901,643.

During the years ended December 31, 2022 and 2021, the Company granted options to purchase an

aggregate of 1,194,032 and 1,895,550 shares of common stock, respectively, to its directors and employees under
the 2014 Plan. The fair value of stock options granted was determined on the date of grant using the
Black-Scholes model. The Black-Scholes option pricing model was developed for use in estimating the fair value
of publicly traded options, which have no vesting restrictions and are fully transferable. The Company’s
employee stock options have characteristics significantly different from those of traded options, and changes in
the underlying Black-Scholes assumptions can materially affect the fair value estimate. To determine the risk-free
interest rate, the Company utilized the U.S. Treasury yield curve in effect at the time of the grant with a term
consistent with the term of the awards granted by the Company. The expected term of the options granted is in
accordance with Staff Accounting Bulletins 107 and 110, which is based on the average between vesting terms
and contractual terms. The expected dividend yield reflects the Company’s current and expected future policy for
dividends on the Company’s common stock. For the years ended December 31, 2022 and 2021, the expected
stock price volatility for the Company’s stock options was calculated by examining the historical volatility of the
Company’s common stock since the stock became publicly traded in the fourth quarter of 2013.

The grant date fair values of stock options awarded during the years ended December 31, 2022 and 2021

were determined using the Black-Scholes option pricing model with the following assumptions:

Years Ended

December 31,
2022

December 31,
2021

Expected term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5-6.3 years
Volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68%
0.0

1.72-1.73%

5.5-6.3 years

68-70%
0.0

0.80-1.27%

On June 21, 2022, the Company’s stockholders approved the ADMA Biologics, Inc. 2022 Compensation
Plan (the ‘‘2022 Equity Plan’’). Approval of the 2022 Equity Plan resulted in approximately 18 million additional
shares of the Company’s common stock being reserved for future awards. The 2022 Equity Plan provides for the
Board or a Committee of the Board (the ‘‘Committee’’) to grant awards to optionees and to determine the
exercise price, vesting term, expiration date and all other terms and conditions of the awards, including
acceleration of the vesting of an award at any time. Any options granted under the 2022 Equity Plan are intended
to be Incentive Stock Options (‘‘ISOs’’), unless specified by the Committee to be Non-Qualified Options
(‘‘NQOs’’) as defined by the Internal Revenue Code. ISOs and NQOs may be granted to employees, consultants
or Board members at an option price not less than the fair market value of the common stock subject to the
stock option agreement. The following table summarizes information about stock options outstanding as of
December 31, 2022 and 2021:

Options outstanding, vested and expected to vest at December 31, 2020 . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares

6,922,931
(529,202)
(426,557)
1,895,550
—

Options outstanding, vested and expected to vest at December 31, 2021 . . . . . . . .

7,862,722

Weighted
Average
Exercise Price

$4.40
$2.89
$4.91
$2.14
$ —

$3.93

F-18

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares

(31,540)
(700,324)
1,194,032
(68,679)

Options outstanding, vested and expected to vest at December 31, 2022 . . . . . . . .

8,256,211

Weighted
Average
Exercise Price

$2.37
$6.86
$1.67
$2.55

$3.37

Options exercisable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,213,959

$3.80

As of December 31, 2022, the Company had $2.3 million of unrecognized compensation expense related to

stock options granted under the Company’s equity incentive plans, which is expected to be recognized over a
weighted-average period of 2.2 years. The weighted average remaining contractual term of stock options
outstanding and expected to vest at December 31, 2022 is 6.1 years. The weighted average remaining contractual
term of stock options exercisable at December 31, 2022 is 5.3 years. The following table summarizes additional
information regarding outstanding and exercisable options under the stock option plans at December 31, 2022:

Range of
Exercise Prices

$1.10 - $1.67
$1.73 - $2.60
$2.62 - $3.93
$3.98 - $5.97
$6.02 - $9.03
$9.37 - $10.80

Stock Options Outstanding

Stock Options Exercisable

Weighted
Average
Remaining
Contractual
Life (Years)

Weighted
Average
Exercise
Price

Aggregate
Intrinsic
Value

Options
Outstanding

Weighted
Average
Remaining
Contractual
Life (Years)

Weighted
Average
Exercise
Price

Aggregate
Intrinsic
Value

9.1
8.0
5.0
4.7
1.5
1.9

6.1

406,160
$ 1.61 $3,452,237
2,491,181
$ 2.35
943,200
1,696,824 3,852,447
$ 3.46
— 456,857
$ 5.03
— 307,795
$ 8.05
— 247,500
$10.28

$ 3.37 $7,640,242 6,213,959

9.0
8.0
4.8
4.6
1.5
1.9

5.3

$ 1.52 $ 959,663
1,430,931
$ 2.36
1,495,461
$ 3.49
—
$ 5.06
—
$ 8.05
—
$10.28

$ 3.80 $3,886,055

Options
Outstanding

1,523,824
1,623,353
4,083,311
470,428
307,795
247,500

8,256,211

During the years ended December 31, 2022 and 2021, the Company granted Restricted Stock Units (‘‘RSUs’’)
representing an aggregate of 1,174,266 and 4,384,744 shares, respectively, to certain management employees of the
Company and during 2022, to members of the Board. Except for the RSUs granted under the Company’s retention
incentive program discussed below, the RSUs generally vest annually over a period of four years for employees and
semi-annually over a period of one year for directors. The RSUs granted during the year ended December 31, 2021
include 3,832,500 shares granted under a retention incentive program implemented by the Company for its executive
management and certain employees (see Note 10), whereby the Company issued an aggregate of 2,685,000 time-based
RSUs and 1,147,500 milestone-based RSUs. Fifty percent of the time-based RSUs granted under the retention
incentive program vested on December 31, 2022, with the remainder vesting in quarterly installments through
December 31, 2024. The milestone-based RSUs vested upon achievement of the applicable milestone, and all of the
milestone-based RSUs vested during the year ended December 31, 2022. The milestones required to be achieved in
order for the milestone-based RSUs to vest were determined by the Board and were consistent with the 2022 operating
plan approved by the Board.

During the years ended December 31, 2022 and 2021, 2,727,412 and 92,750 shares, respectively, vested in

connection with grants of RSUs. With respect to the RSUs vested during the year ended December 31,
2022,918,851 shares valued at approximately $2.9 million were withheld by the Company to cover employees’
tax liabilities. For the RSUs vested during the year ended December 31, 2021, 27,850 shares valued at

F-19

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

approximately $62,000 were withheld by the Company to cover employees’ tax liabilities. These shares have
been retired by the Company or were otherwise no longer outstanding as of December 31, 2022. A summary of
the Company’s unvested RSU activity and related information is as follows:

Balance at December 31, 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balance at December 31, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares

326,000
4,384,744
(92,750)
(132,861)

4,485,133
1,174,266
(2,727,412)
(65,000)

Balance at December 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,866,987

Weighted
Average Grant
Date Fair Value

$2.81
$1.30
$2.82
$2.51

$1.34
$1.74
$1.25
$1.40

$1.59

As of December 31, 2022, the Company had $3.8 million of unrecognized compensation expense related to
unvested RSUs granted under the Company’s equity incentive plans, which is expected to be recognized over a
weighted-average period of 2.4 years.

Total stock-based compensation expense for all awards granted under the Company’s equity incentive plans

for the years ended December 31, 2022 and 2021 was as follows:

Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plasma center operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of product revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

19,476
81,668
4,716,219
397,168

$ 153,924
60,257
2,958,008
316,064

Total stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$5,214,531

$3,488,253

2022

2021

9. RELATED PARTY TRANSACTIONS

The Company leases an office building and equipment from Areth, LLC (‘‘Areth’’) pursuant to an

agreement for services effective as of January 1, 2016, as amended from time to time, and pays monthly rent on
this facility in the amount of $10,000. On October 18, 2022, the Company amended the agreement to extend its
term to December 31, 2026, with automatic successive one-year renewals thereafter. Either party may terminate
the agreement by providing the other party with one year’s prior written notice. Rent expense for the years ended
December 31, 2022 and 2021 amounted to $0.1 million. Areth is a company controlled by
Dr. Jerrold B. Grossman, the Vice Chairman of the Board, and Adam S. Grossman, the Company’s President and
Chief Executive Officer. The Company also reimburses Areth for office, warehousing and building related
(common area) expenses, equipment and certain other operational expenses, which were not material to the
consolidated financial statements for the years ended December 31, 2022 and 2021.

During the years ended December 31, 2022 and 2021, the Company purchased certain specialized medical

equipment and services related to the Company’s plasma collection centers, as well as personal protective
equipment, from GenesisBPS and its affiliates (‘‘Genesis’’) in the amount of $0.2 million. Genesis is owned by
Dr. Grossman and Adam Grossman.

See Note 7 for a discussion of the Company’s prior credit facility and related transactions with Perceptive, a

holder of more than 5% of the Company’s common stock.

During the year ended December 31, 2021, in connection with the resignation of Dr. James Mond, the
Company’s former Chief Scientific and Medical Officer, the Company recognized an expense and corresponding

F-20

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

liability in the amount of $0.8 million for payments to be made under a separation and transition agreement with
Dr. Mond. These payments were made in scheduled installments over a period of 10 months.

In connection with the 2022 public offering of the Company’s common stock (see Note 8) on December 9,
2022: (i) Mr. Grossman purchased 14,983 shares of common stock directly and 14,982 shares of common stock
indirectly through an entity he controls, and (ii) Brian Lenz, the Company’s Executive Vice President and Chief
Financial Officer, purchased 6,993 shares of common stock, all at the public offering price of $2.86 per share.

In connection with the 2021 public offering of the Company’s common stock (see Note 8) on October 25,

2021: (i) Mr. Grossman purchased 100,000 shares of common stock directly and 250,000 shares of common
stock indirectly through an entity he controls, (ii) Dr. Grossman purchased 100,000 shares of common stock,
(iii) Dr. Young Kwon, a member of the Board, purchased 100,000 shares of common stock, and (iv) Brian Lenz,
the Company’s Executive Vice President and Chief Financial Officer, purchased 30,000 shares of common stock,
all at the public offering price of $1.00 per share.

10. COMMITMENTS AND CONTINGENCIES

General Legal Matters

From time to time the Company is or may become subject to certain legal proceedings and claims arising in

connection with the normal course of its business. Management does not expect that the outcome of any such
claims or actions will have a material effect on the Company’s liquidity, results of operations or financial
condition.

COVID-19 Pandemic

The Company continues to monitor the ongoing developments related to the COVID-19 pandemic, including

the emergence of the Delta, Omicron and BA.2 variants and other resistant strains of the coronavirus, and its
impacts to the Company’s commercial and manufacturing operations and plasma collection facilities, including
collections of source plasma, procurement of raw materials and packaging materials, a portion of which are
sourced internationally, and the testing of finished drug product that is required prior to its availability for
commercial sale. A substantial portion of such testing has historically been performed by contract laboratories
outside the United States.

Due to a combination of previously mandated state and local ‘‘shelter-in-place’’ orders, as well as
government stimulus packages, persisting social distancing measures and varying roll-outs of vaccinations by
state, the Company experienced lower than normal donor collections at its FDA approved plasma collection
centers during 2021. The Company was also subject to delays in shipments of source plasma from its contracted
third-party suppliers, as well as delays in deliveries for personal protective equipment, reagents and other
non-plasma raw materials and supplies used in the manufacture and distribution of its products. In addition, the
Company is subject to supply chain delays as a result of certain of its suppliers diverting significant resources
towards the rapid development and distribution of COVID-19 vaccines and, as a result, the Company has elected
to carry more raw materials inventory than it has in the past. The COVID-19 pandemic previously impacted, to a
certain degree, the Company’s customer engagement initiatives, whereby ADMA’s sales and medical affairs field
personnel faced difficulties communicating directly with physicians and other healthcare professionals, as well as
the cancellation or postponement of a number of key scientific and medical meetings, further limiting the
Company’s ability to communicate with potential customers.

The pandemic could also impact the Company’s ability to interact with the FDA or other regulatory

authorities and may result in delays in the conduct of inspections or review of pending applications or
submissions. Although the Company received FDA approvals for four of its plasma collection centers during the
year ended December 31, 2022 and received several FDA approvals and two FDA inspections of the Boca
Facility were completed during the year ended December 31, 2021, no assurances can be provided as to the
timing for completion of any future regulatory submissions or applications that may be impacted by restrictions
related to COVID-19.

F-21

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

During the years ended December 31, 2022 and 2021, revenue attributable to international customers was
approximately 5% and 13%, respectively, of the Company’s total revenues. As the Company seeks to grow this
aspect of its business, it may also be subject to the impacts of the COVID-19 pandemic in locations outside the
United States.

Notwithstanding the foregoing, the COVID-19 pandemic to date has not had a material impact on the
Company’s financial condition or results of operations, and the Company does not believe that its production
operations at the Boca Facility, the Company’s contract fill/finishers or its plasma collection facilities have been
significantly impacted by the COVID-19 pandemic. As a result, the Company does not anticipate and has not
experienced any material impairments with respect to any of its long-lived assets, including the Company’s
property and equipment, goodwill or intangible assets.

Although the COVID-19 pandemic has not, to date, materially adversely impacted the Company’s capital

and financial resources, because the Company is unable to determine the ultimate severity or duration of the
COVID-19 pandemic or other pandemics or their long-term effects on, among other things, the global, national
or local economies, the capital and credit markets or the Company’s workforce, customers or our suppliers, at
this time the Company is unable to predict whether COVID-19 or other pandemics will have a material adverse
impact on the Company’s business, financial condition, liquidity or results of operations.

Vendor Commitments

Pursuant to the terms of a plasma purchase agreement with BPC dated as of November 17, 2011 (the ‘‘2011

Plasma Purchase Agreement’’), the Company agreed to purchase from BPC an annual minimum volume of
source plasma containing antibodies to RSV to be used in the manufacture of ASCENIV. The Company must
purchase a to-be-determined and agreed upon annual minimum volume from BPC, but may also collect high-titer
RSV plasma from up to five wholly-owned ADMA plasma collection facilities. During 2015, the Company and
BPC amended the 2011 Plasma Purchase Agreement to allow the Company the ability to collect its raw material
RSV high-titer plasma from other third-party collection organizations, thus allowing the Company to expand its
reach for raw material supply as it executes its commercialization plans for ASCENIV. As part of the closing of
the Biotest Transaction, the parties amended the 2011 Plasma Purchase Agreement to extend the initial term
through the ten-year anniversary of the closing date of the Biotest Transaction. Unless terminated earlier, the
2011 Plasma Purchase Agreement expires in June 2027, after which it may be renewed for two additional
five-year periods if agreed to by the parties. On December 10, 2018, BPC assigned its rights and obligations
under the 2011 Plasma Purchase Agreement to Grifols Worldwide Operations Limited (‘‘Grifols’’) as its
successor-in-interest, effective January 1, 2019. On January 1, 2019, Grifols and the Company entered into an
additional amendment to the 2011 Plasma Purchase Agreement for the purchase of source plasma containing
antibodies to RSV from Grifols. Pursuant to this amendment, until January 1, 2022, the Company could purchase
RSV plasma from Grifols from the two plasma collection centers that were transferred to BPC on January 1,
2019 at a price equal to cost plus five percent (5%) (without any additional increase due to inflation). Effective
January 1, 2022, RSV plasma purchased from these two plasma collection centers are subject to the pricing terms
in effect for RSV plasma purchased from other plasma collection centers owned by Grifols.

On June 6, 2017, the Company and BPC entered into a Plasma Supply Agreement pursuant to which BPC
supplies, on an exclusive basis subject to certain exceptions, to ADMA BioManufacturing an annual minimum
volume of hyperimmune plasma that contain antibodies to the Hepatitis B virus for the manufacture of Nabi-HB.
The Plasma Supply Agreement has a 10-year term. On July 19, 2018, the Company and BPC entered into an
amendment to the Plasma Supply Agreement to provide, among other things, that in the event BPC elects not to
supply in excess of ADMA BioManufacturing’s specified amount of Hepatitis B plasma and ADMA
BioManufacturing is unable to secure Hepatitis B plasma from a third party at a price that is within a low
double- digit percentage of the price that ADMA BioManufacturing pays to BPC, then BPC shall reimburse
ADMA BioManufacturing for the difference in price ADMA BioManufacturing incurs. On December 10, 2018,
BPC assigned its rights and obligations under the Plasma Supply Agreement to Grifols, effective January 1,
2019.

F-22

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

On June 6, 2017, the Company and BPC entered into a Plasma Purchase Agreement (the ‘‘2017 Plasma
Purchase Agreement’’), pursuant to which ADMA BioManufacturing purchases normal source plasma (‘‘NSP’’)
from BPC at agreed upon annual quantities and prices. The 2017 Plasma Purchase Agreement has an initial term
of five years after which the 2017 Plasma Purchase Agreement may be renewed for additional two terms of
two years each upon the mutual written consent of the parties. On July 19, 2018, the Company and BPC entered
into an amendment to the 2017 Plasma Purchase Agreement to, among other things, provide agreed upon
amounts of normal source plasma to be supplied by BPC to ADMA BioManufacturing in calendar year 2019 at a
specified price per liter, provided that ADMA BioManufacturing delivers a valid purchase order to BPC.
Additionally, pursuant to the amendment to the 2017 Plasma Purchase Agreement, BPC agreed that, for calendar
years 2020 and 2021, it shall supply no less than a high double-digit percentage of ADMA BioManufacturing’s
requested NSP amounts, provided that such requested NSP amounts are within an agreed range, at a price per
liter to be mutually determined. Furthermore, pursuant to the amendment to the 2017 Plasma Purchase
Agreement, in the event BPC fails to supply ADMA BioManufacturing with at least a high double-digit
percentage of ADMA BioManufacturing’s requested NSP amounts, BPC shall promptly reimburse ADMA
BioManufacturing the difference in price ADMA BioManufacturing incurs due to BPC’s election not to supply
NSP to ADMA BioManufacturing in such amounts as requested. On December 10, 2018, BPC assigned its rights
and obligations under the Plasma Purchase Agreement to Grifols, effective January 1, 2019.

Effective as of May 12, 2021, the Company and Grifols amended the foregoing 2017 Plasma Purchase
Agreement whereby, among other things, the term of the agreement was extended through December 31, 2022,
while certain historical provisions were deleted. The 2017 Plasma Purchase Agreement expired on December 31,
2022 and was not renewed. In order to maintain a reliable supply of raw material plasma thereafter, the
Company has executed additional agreements with multiple third-party suppliers of NSP. The Company has also
increased its number of planned plasma collection center buildouts such that the Company expects to have
ten FDA-approved plasma collection centers in operation by the end of 2023, while also continuing to increase
its plasma collection capabilities at its ADMA BioCenters plasma collection centers business segment.

Post-Marketing Commitments

In connection with the FDA approval of the BLA for BIVIGAM on December 19, 2012, Biotest committed

to perform two additional post-marketing studies, a pediatric study to evaluate the efficacy and safety of
BIVIGAM in children and adolescents, and a post-authorization safety study to further assess the potential risk of
hypotension and hepatic and renal impairment in BIVIGAM-treated patients with primary humoral
immunodeficiency. The Pediatric study for BIVIGAM has been completed, and the safety study is still pending
completion. ADMA has assumed the remaining obligations, and the costs of the studies will be expensed as
incurred as research and development expenses. For the years ended December 31, 2022 and 2021, the Company
incurred expenses related to these studies of $2.2 million and $1.7 million, respectively. The Company currently
expects to incur expenses of approximately $2.0 million to complete these studies, with both studies anticipated
to be completed by June of 2023.

In connection with the FDA approval of ASCENIV on April 1, 2019, the Company is required to perform a
pediatric study to evaluate the safety and efficacy of ASCENIV in children and adolescents. For the years ended
December 31, 2022 and 2021, the Company incurred expenses related to this study in the amount of $0.5 million
and $0.6 million, respectively. The Company expects to incur expenses of approximately $1.5 million to
complete this study, which is required to be completed by June of 2023.

Employment Contracts

The Company has entered into employment agreements with Mr. Grossman and Mr. Lenz.

Other Commitments

On September 28, 2021, following the approval of the Board upon recommendation of the Compensation

Committee of the Board, and in consultation with an independent compensation consultant, the Company
implemented a retention incentive program, consisting of cash payments and awards of RSUs (see Note 8), to the

F-23

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Company’s management, including Mr. Grossman and Mr. Lenz, and to certain other employees. The purpose of
the retention program was to promote and ensure business continuity and provide an incentive to the Company’s
executive management and certain other employees considering the operational challenges presented by the
ongoing COVID-19 pandemic and the competitive work environment in which the Company operates as an FDA
regulated manufacturer of specialized biologic therapies. The retention awards were granted considering the
nationwide labor shortages and the increased employee turnover rates that the Company, its pharmaceutical peers
and other companies outside of the Company’s industry have reported experiencing.

The cash portion of the retention program consisted of two tranches. The first tranche was paid to
employees on September 30, 2021 in the amount of $1.3 million, and the second tranche aggregating to
approximately $1.3 million was paid on June 15, 2022. Based on the terms of the retention agreements the
Company entered into with each applicable executive and employee, approximately $0.8 million of each tranche
was recognized over the retention service period, which began on October 1, 2021 and ended on December 31,
2022, with the remainder having been recognized as expense when paid.

In the normal course of business, the Company enters into contracts that contain a variety of

indemnifications with its employees, licensors, suppliers and service providers. Further, the Company indemnifies
its directors and officers who are, or were, serving at the Company’s request in such capacities. The Company’s
maximum exposure under these arrangements is unknown as of December 31, 2022. The Company does not
anticipate recognizing any significant losses relating to these arrangements.

11.

INCOME TAXES

A reconciliation of income taxes at the U.S. federal statutory rate to the benefit for income taxes is as

follows:

Year Ended December 31,

2022

2021

Benefit at U.S. federal statutory rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
State taxes - deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increase in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in federal net operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
162(m) disallowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$(13,839,830) $(15,045,999)
(251,839)
14,618,762
(239,585)
623,679
63,515
231,467

(1,773,349)
15,117,100
(211,343)
—
862,027
(154,605)

Benefit for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

— $

—

A summary of the Company’s deferred tax assets is as follows:

Year Ended December 31,

2022

2021

Federal and state net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal and state research credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense limitation carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 81,526,316
407,280
12,194,369
881,782
479,510
1,236,128

$ 73,036,983
31,333
6,013,040
977,046
519,819
1,030,064

Total gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: valuation allowance for deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . .

96,725,385
(96,725,385)

81,608,285
(81,608,285)

Net deferred tax assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

— $

—

As of December 31, 2022, the Company had federal and state (post-apportioned basis) net operating losses

(‘‘NOLs’’) of $334.5 million and $211.7 million, respectively, as well as federal research and development tax

F-24

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

credit carryforwards of approximately $0.4 million. Approximately $55.2 million and $91.8 million of the
foregoing federal and state NOLs, respectively, will expire at various dates from 2027 through 2042, if not
limited by triggering events prior to such time. Under the provisions of the Internal Revenue Code, changes in
ownership of the Company, in certain circumstances, would limit the amount of federal NOLs that can be
utilized annually in the future to offset taxable income. In particular, Section 382 of the Internal Revenue Code
(‘‘Section 382’’) imposes limitations on an entity’s ability to use NOLs upon certain changes in ownership. If the
Company is limited in its ability to use its NOLs in future years in which it has taxable income, then the
Company will pay more taxes than if it were otherwise able to fully utilize its NOLs. The Company may
experience ownership changes in the future as a result of subsequent shifts in ownership of the Company’s
capital stock that the Company cannot predict or control that could result in further limitations being placed on
the Company’s ability to utilize its federal NOLs. As of December 31, 2022, the Company performed a
preliminary analysis of limitations imposed by Section 382 and determined that no ownership changes occurred
in the current year which would cause additional limitations on the use of the NOLs.

As of December 31, 2021, the Company performed an analysis of limitations imposed by Section 382 and

as a result the Company wrote off the deferred tax assets related to $3.0 million of federal NOLs, $1.0 million of
federal research and development tax credits and $28.1 million of state NOLs which were limited by historical
ownership changes. As a result, there was a $3.9 million reduction to the Company’s net deferred tax assets,
which was offset by a corresponding $3.9 million reduction in the Company’s valuation allowance, resulting in
no net impact to the Company’s provision for income taxes for the year ended December 31, 2021.

A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When

determining the amount of net deferred tax assets that are more likely than not to be realized, the Company
assesses all available positive and negative evidence. This evidence includes, but is not limited to, prior earnings
history, expected future earnings, carry-back and carry-forward periods and the feasibility of ongoing tax
strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. The weight given
to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified.
As such, it is generally difficult for positive evidence regarding projected future taxable income, exclusive of
reversing taxable temporary differences, to outweigh objective negative evidence of recent financial reporting
losses. Based on these criteria and the relative weighting of both the positive and negative evidence available,
management continues to maintain a full valuation allowance against its net deferred tax assets.

In accordance with U.S. GAAP, the Company is required to determine whether a tax position of the
Company is more likely than not to be sustained upon examination by the applicable taxing authority, including
resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax
benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of
being realized upon ultimate settlement. Derecognition of a tax benefit previously recognized could result in the
Company recording a tax liability that would reduce net assets. The amount of the liability for which an
exposure exists is measured as the largest amount of benefit determined on a cumulative probability basis that
the Company believes is more likely than not to be realized upon ultimate settlement of the position.
Components of the liability are classified as either a current or a long-term liability in the accompanying
consolidated balance sheets based on when the Company expects each of the items to be settled. The Company
does not have any unrecognized tax benefits as of December 31, 2022 and 2021 and does not anticipate a
significant change in unrecognized tax benefits during the next 12 months.

12. LEASE OBLIGATIONS

The Company leases certain properties and equipment for its ADMA BioCenters and ADMA

BioManufacturing subsidiaries, which leases provide the right to use the underlying assets and require lease
payments through the respective lease terms which expire at various dates through 2033. The Company’s lease
agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of

12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with
assets representing the right to use the underlying asset for the lease term and lease liabilities representing the

F-25

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

obligation to make lease payments arising from the lease. Right-to-use assets and lease liabilities are recognized
at the lease commencement date based on the present value of lease payments over the lease term and include
options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of
the lease payments is determined using the Company’s incremental borrowing rate as of the lease commencement
date. For the lease liabilities recognized during the years ended December 31, 2022 and 2021, the Company used
discount rates of 13% to 14% to determine the present value of its lease obligations. The Company’s operating
lease expense is recognized on a straight-line basis over the lease term and is reflected in Plasma center
operating expenses and Selling, general and administrative expenses in the accompanying consolidated statements
of operations. Aggregate lease expense for the Company’s operating leases for the years ended December 31,
2022 and 2021 was $2.1 million and $1.4 million, respectively. Aggregate cash paid on these leases for the years
ended December 31, 2022 and 2021 was $1.8 million and $1.4 million, respectively.

During the year ended December 31, 2022, the Company recognized additional right-to-use assets and
corresponding lease liabilities aggregating to approximately $4.0 million in connection with two new property
leases where the Company has opened additional plasma collection facilities, a property lease for the storage of
raw materials inventory and a property lease for the building that the Company utilizes as its corporate
headquarters (see Note 9). During the year ended December 31, 2021, the Company recognized additional
right-to-use assets and corresponding lease liabilities of $3.6 million in connection with four new property leases
where the Company has opened additional plasma collection facilities. Including a finance lease the Company
entered into in June 2018, the Company has aggregate lease liabilities of $11.6 million and $8.1 million as of
December 31, 2022 and 2021, respectively, which are comprised primarily of the leases for the Company’s
plasma collection centers. The Company’s operating leases have a weighted average remaining term of 8.4 years.
Scheduled payments under the Company’s lease obligations are as follows:

Year ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,367,057
2,343,314
2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,366,432
2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,116,036
2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,040,690
2027. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,238,571
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: imputed interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19,472,100
(7,862,555)
(905,369)

Balance at December 31, 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,704,176

One of the Company’s operating leases, pertaining to the administrative offices for its Plasma Collection
Centers business segment, is scheduled to expire in November of 2023. The current monthly payment for this
lease is approximately $10,000. The Company intends to renew the lease for an additional five years in
accordance with the terms of the lease, however no renewal agreement has been finalized.

13. SEGMENTS

The Company is engaged in manufacturing, marketing and developing specialty plasma-derived biologics.

The Company’s ADMA BioManufacturing segment reflects the Company’s immune globulin manufacturing and
development operations in Florida, acquired on June 6, 2017. The Plasma Collection Centers segment consists of
ten plasma collection facilities as of December 31, 2022, nine of which were operational and collecting plasma,
and seven of which hold an approved license with the FDA (and of which three facilities have received
approvals from the Korean Ministry of Food and Drug Safety as well as FDA approval to implement a Hepatitis
B immunization program). The Corporate segment includes general and administrative overhead expenses. The
Company defines its segments as those business units whose operating results are regularly reviewed by the chief
operating decision maker (‘‘CODM’’) to analyze performance and allocate resources. The Company’s CODM is
its President and Chief Executive Officer. Summarized financial information concerning reportable segments is
shown in the following tables:

F-26

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

Year Ended December 31, 2022

ADMA
BioManufacturing

Plasma Collection
Centers

Corporate

Consolidated

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of product revenue . . . . . . . . . . . . . . . . . . . . .
Income (loss) from operations . . . . . . . . . . . . . . . .
Interest and other expense, net . . . . . . . . . . . . . . . .
Loss on extinguishment of debt . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization expense . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$144,069,543
108,881,938
879,387
(504,787)
—
374,600
5,246,860
4,708,879
238,159,534

$ 9,867,315
9,932,597
(17,908,378)
(3,266)
—
(17,911,644)
8,664,311
2,403,572
37,070,535

$

(22,336,089)
(19,360,876)
(6,669,941)
(48,366,906)

142,834 $154,079,692
— 118,814,535
(39,365,080)
(19,868,929)
(6,669,941)
(65,903,950)
— 13,911,171
7,113,369
348,461,881

918
73,231,812

Year Ended December 31, 2021

ADMA
BioManufacturing

Plasma Collection
Centers

Corporate

Consolidated

Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of product revenue . . . . . . . . . . . . . . . . . . . . .
Loss from operations . . . . . . . . . . . . . . . . . . . . . . .
Interest and other expense, net . . . . . . . . . . . . . . . .
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization expense . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 74,935,528
74,124,999
(29,293,309)
(218,053)
(29,511,362)
4,876,983
4,217,771
208,391,019

$ 5,864,263
5,644,342
(12,056,364)
(5,660)
(12,062,024)
8,634,275
1,272,397
24,681,691

$

(17,024,068)
(13,050,164)
(30,074,232)

142,834 $ 80,942,625
— 79,769,341
(58,373,741)
(13,273,877)
(71,647,618)
— 13,511,258
5,495,502
276,252,724

5,334
43,180,014

14. OTHER EMPLOYEE BENEFITS

The Company sponsors a 401(k) savings plan. Under the plan, employees may make contributions which
are eligible for a Company discretionary percentage contribution as defined in the plan and determined by the
Board of Directors. The Company recognized $1.3 million and $1.1 million of related compensation expense for
the years ended December 31, 2022 and 2021, respectively.

15. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Supplemental cash flow information for the years ended December 31, 2022 and 2021 is as follows:

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$13,879,958

$11,159,461

Noncash Financing and Investing Activities:

Equipment acquired reflected in accounts payable and accrued liabilities . . . . . .

$ 1,494,916

$ 1,352,627

Right-to-use assets in exchange for lease obligations . . . . . . . . . . . . . . . . . . . . . .

$ 4,048,099

$ 3,554,473

Warrants issued in connection with notes payable . . . . . . . . . . . . . . . . . . . . . . . . .

$ 9,569,604

$

—

2022

2021

16. CONCENTRATIONS

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash

and cash equivalents and accounts receivable. At December 31, 2022, two customers accounted for
approximately 92% of the Company’s consolidated accounts receivable. At December 31, 2021, three customers
accounted for approximately 94% of the Company’s consolidated accounts receivable.

F-27

ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021

For the year ended December 31, 2022, two customers accounted for approximately 74% of the Company’s
consolidated revenues. For the year ended December 31, 2021, four customers accounted for approximately 81%
of the Company’s consolidated revenues.

During the years ended December 31, 2022 and 2021, plasma purchases from Grifols totaled approximately

$47.7 million and $42.0 million, respectively, or approximately 65% and 69%, respectively, of the Company’s
total inventory purchases.

Net revenues according to geographic area, based on the location of where the product is shipped, is as

follows:

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$146,426,617
7,653,075

$70,625,848
10,316,777

Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$154,079,692

$80,942,625

Year Ended December 31,
2021

2022

17. SUBSEQUENT EVENTS

On March 22, 2023, the Company and Hayfin entered into an amendment to the Hayfin Credit Agreement
whereby the lenders’ obligation to make the Hayfin Delayed Draw Loan (see Note 7) was extended to June 30,
2023.

F-28

EXHIBIT 21.1

Jurisdiction of incorporation:

Delaware

ADMA BioCenters Georgia Inc.

Name under which business conducted:

ADMA BioCenters Georgia Inc.

Jurisdiction of incorporation:

Delaware

ADMA Plasma Biologics, Inc.

Name under which business conducted:

ADMA Plasma Biologics, Inc.

Jurisdiction of incorporation:

Delaware

ADMA BioManufacturing, LLC

Name under which business conducted:

ADMA BioManufacturing, LLC

Exhibit 23.1

Consent of Independent Registered
Public Accounting Firm

We consent to the incorporation by reference in the registration statements on Form S-8 (File

Nos.333-266291, 333-263345, 333-254770, 333-237658, 333-229921, 333-224492, 333-220058, 333-204590 and
333-193635) and Form S-3 (File Nos. 333-256643, 333-234107 and 333-225048) of ADMA Biologics, Inc. and
subsidiaries (the ‘‘Company’’) of our report, dated March 23, 2023, on our audits of the Company’s consolidated
financial statements as of December 31, 2022 and 2021 and for the years then ended, included in this Annual
Report on Form 10-K of ADMA Biologics, Inc. and subsidiaries for the year ended December 31, 2022.

/s/ CohnReznick LLP

Parsippany, New Jersey

March 23, 2023

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Adam S. Grossman, certify that:

Exhibit 31.1

1.

I have reviewed this Annual Report on Form 10-K of ADMA Biologics, Inc. for the year ended
December 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this

report, fairly present in all material respects the financial condition, results of operations and cash flows
of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over

financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of
the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that

occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in
the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control

over financial reporting which are reasonably likely to adversely affect the registrant’s ability to
record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a

significant role in the registrant’s internal control over financial reporting.

March 23, 2023

/s/ Adam S. Grossman

Name: Adam S. Grossman
Title:

President and Chief Executive Officer
(Principal Executive Officer)

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian Lenz, certify that:

Exhibit 31.2

1.

I have reviewed this Annual Report on Form 10-K of ADMA Biologics, Inc. for the year ended
December 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this

report, fairly present in all material respects the financial condition, results of operations and cash flows
of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over

financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of
the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that

occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in
the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant’s auditors and the audit committee of the
registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control

over financial reporting which are reasonably likely to adversely affect the registrant’s ability to
record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a

significant role in the registrant’s internal control over financial reporting.

March 23, 2023

/s/ Brian Lenz

Name: Brian Lenz
Title:

Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of ADMA Biologics, Inc., a Delaware corporation (the ‘‘Company’’),

on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on
the date hereof (the ‘‘Report’’), I, Adam S. Grossman, President and Chief Executive Officer of the Company,
hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange

Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition

and results of operations of the Company.

March 23, 2023

/s/ Adam S. Grossman

Name: Adam S. Grossman
Title:

President and Chief Executive Officer
(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of ADMA Biologics, Inc., a Delaware corporation (the ‘‘Company’’),

on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on
the date hereof (the ‘‘Report’’), I, Brian Lenz, Chief Financial Officer of the Company, hereby certify, pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my
knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange

Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition

and results of operations of the Company.

March 23, 2023

/s/ Brian Lenz

Name: Brian Lenz
Title:

Executive Vice President and Chief Financial Officer
(Principal Financial Officer)

CORPORATE INFORMATION

BOARD OF DIRECTORS
Steven A. Elms, Chairman of the Board
Managing Partner, Aisling Capital

Dr. Jerrold B. Grossman, Founder and Vice 
Chairman of the Board
Founder and President, GenesisBPS
Founder and CEO, Technomed, Inc.

Adam S. Grossman, Founder, Director

Martha J. Demski, Director
Former SVP, CFO Ajinomoto Althea

Bryant E. Fong, Director
Founding Managing Director and General 
Partner, Biomark Capital Fund

Lawrence P. Guiheen, Director
Former General Manager Global Hemophilia 
Franchise, and Past President of Global 
BioPharmaceuticals for Baxter Healthcare’s 
BioScience Division

Young T., Kwon, Ph.D., Director
CEO, Alchemab Therapeutics

MANAGEMENT TEAM
Adam S. Grossman
Founder, President and CEO

Brian Lenz, CPA
Executive Vice President, CFO and General 
Manager, ADMA BioCenters

CODE OF ETHICS
ADMA Biologics, Inc. has adopted a 
corporate Code of Ethics and Business 
Conduct that applies to all of its directors, 
officers and employees. ADMA requires that 
all of its directors, officers and employees 
certify compliance with the Code of Ethics 
and Business Conduct on an annual basis.
A copy of the Code of Ethics and Business 
Conduct is accessible through the 
“Investors-Governance-Documents” section 
of the ADMA Biologics, Inc. website at 
www.admabiologics.com.

LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
502 Carnegie Center
Princeton, NJ 08540
Phone: (609) 919-6600

CORPORATE HEADQUARTERS
465 Route 17 South
Ramsey, NJ 07446
Phone: (201) 478-5552
Fax: (201) 478-5553
Email: info@admabio.com
www.admabiologics.com

FLORIDA CAMPUS
5800 & 5900 Park of Commerce Blvd NW
Boca Raton, FL 33487
Phone: (561) 989-5799
Fax: (561) 989-5890

COMMON STOCK TRADING
The Company’s common stock trades on the 
Nasdaq Global Market under the symbol "ADMA".

ANNUAL MEETING OF STOCKHOLDERS
The Company’s Annual Meeting of Stockholders 
will be held virtually at 10 a.m. ET on June 6, 2023
via webcast through the link: 
www.virtualshareholdermeeting.com/ADMA2023

INVESTOR RELATIONS
For additional information, please contact our 
Investor Relations Department at (201) 478-5552 
or via email at: IR@admabio.com.

INDEPENDENT AUDITORS
CohnReznick LLP
14 Sylvan Way, 3rd Floor
Parsippany, NJ 07054
Phone:  (973) 228-3500

TRANSFER AGENT
Continental Stock Transfer & Trust Company 
1 State Street, 30th Floor
New York, NY 10004 
Phone: (800) 509-5586
www.continentalstock.com

OUR VALUES

Our superior commitment to patients is anchored to our core values:

HUMAN
We make human connection a priority in our 
products, our patients, and our people.

DYNAMIC
We are relentless in transforming 
groundbreaking science into 
meaningful action.

COURAGEOUS
We take on the challenges others won't by embracing 
rare diseases and the underserved populations.

TENACIOUS
We are tireless in our pursuit of perfection 
because people’s lives are in our hands.

Company Profile
ADMA Biologics is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-
derived biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. ADMA currently 
manufactures and markets three United States Food and Drug Administration (FDA)-approved plasma-derived biologics for the treatment of immune 
deficiencies and the prevention of certain infectious diseases: BIVIGAM® (immune globulin intravenous, human) for the treatment of primary humoral 
immunodeficiency (PI); ASCENIV™ (immune globulin intravenous, human – slra 10% liquid) for the treatment of PI; and NABI-HB® (hepatitis B immune 
globulin, human) to provide enhanced immunity against the hepatitis B virus. ADMA manufactures its immune globulin products at its FDA-licensed 
plasma fractionation and purification facility located in Boca Raton, Florida. Through its ADMA BioCenters subsidiary, ADMA also operates as an FDA-
approved source plasma collector in the U.S., which provides a portion of its blood plasma for the manufacture of its products. ADMA’s mission is to 
manufacture, market and develop specialty plasma-derived, human immune globulins targeted to niche patient populations for the treatment and 
prevention of certain infectious diseases and management of immune compromised patient populations who suffer from an underlying immune 
deficiency, or who may be immune compromised for other medical reasons. ADMA has received U.S. Patents: 9,107,906, 9,714,283, 9,815,886, 
9,969,793 and 10,259,865 and European Patent No. 3375789, among others, related to certain aspects of its products and product candidates. For more 
information, please visit www.admabiologics.com. 

Cautionary Statement Regarding Forward-Looking Information
Some of the information included herein contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as 
amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and such forward-looking 
statements involve risks and uncertainties. These forward-looking statements include, but are not limited to, statements about our plans, objectives, 
representations and contentions that are not historical facts and typically are identified by use of terms such as “may,” “should,” “could,” “would,” 
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project,” “continue,” or the negative thereof, or other variations or comparable 
terminology, although some forward-looking statements are expressed differently. The forward-looking statements included herein represent 
management’s current judgment and expectations, but our actual results, events and performance could differ materially from those in the forward-
looking statements. These statements include statements about: our ability to manufacture BIVIGAM and ASCENIV on a commercial scale and further 
commercialize these products as a result of their approval by the U.S. Food and Drug Administration (the “FDA”) in 2019; our plans to develop, 
manufacture, market, launch and expand our commercial infrastructure and commercialize our current and future products and the success of such 
efforts; the safety, efficacy and expected timing of and our ability to obtain and maintain regulatory approvals for our current products and product 
candidates, and the labeling or nature of any such approvals; the achievement of or expected timing, progress and results of clinical development, 
clinical trials and potential regulatory approvals for our product candidates; our dependence upon our third-party customers and vendors and their 
compliance with applicable regulatory requirements; our belief that we have addressed the delays experienced with final drug product current Good 
Manufacturing Practices (“cGMP”) release testing by our third-party vendors by adding additional release testing laboratories to our FDA-approved 
consortium listed in our drug approval documents; our ability to obtain adequate quantities of FDA-approved plasma with proper specifications; our plans 
to increase our supplies of source plasma, which include plasma collection center expansion, our ability to obtain and maintain regulatory compliance 
and receive FDA approvals of new plasma collection centers and reliance on third-party supply agreements as well as any extensions to such 
agreements, and our ability to achieve source plasma self-sufficiency, and the associated timing in connection therewith; the potential indications for our 
products and product candidates; potential investigational new product applications; the acceptability of any of our products, including BIVIGAM, 
ASCENIV and Nabi-HB, for any purpose, including FDA-approved indications, by physicians, patients or payers; our plans to evaluate the clinical and 
regulatory paths to grow the ASCENIV franchise through expanded FDA-approved uses; Federal, state and local regulatory and business review 
processes and timing by such governmental and regulatory agencies of our business and regulatory submissions; concurrence by the FDA with our 
conclusions concerning our products and product candidates; the comparability of results of our hyperimmune and immune globulin (“IG”) products to 
other comparably run hyperimmune and IG clinical trials; the potential for ASCENIV and BIVIGAM to provide meaningful clinical improvement for 
patients living with Primary Immune Deficiency Disease or Inborn Errors of Immunity or Primary Humoral Immunodeficiency Disease (“PIDD”, “PI” or 
“IEI”) or other immune deficiencies or any other condition for which the products may be prescribed or evaluated; our ability to market and promote Nabi-
HB in a highly competitive environment with increasing competition from other antiviral therapies and to generate meaningful revenues from this product; 
our intellectual property position and the defense thereof, including our expectations regarding the scope of patent protection with respect to ASCENIV 
or other future pipeline product candidates; our manufacturing capabilities, third-party contractor capabilities and vertical integration strategy; our plans 
related to the expansion and efficiencies of our manufacturing capacity, yield improvements, supply-chain robustness, in-house fill-finish capabilities, 
distribution and other collaborative agreements and the success of such endeavors; our estimates regarding revenues, expenses, margin profile, capital 
requirements, timing to profitability and positive cash flows and the need for and availability of additional financing; possible or likely reimbursement 
levels for our currently marketed products; estimates regarding market size, projected growth and sales of our existing products as well as our 
expectations of market acceptance of ASCENIV and BIVIGAM; effects of the coronavirus COVID-19  pandemic and other potential pandemics on our 
business, financial condition, liquidity and results of operations, and our ability to continue operations in the same manner as previously conducted prior 
to the macroeconomic effects of the COVID-19 pandemic and other potential pandemics; and future domestic and global economic conditions, including, 
but not limited to, supply chain constraints and inflationary pressures or performance. In addition to the foregoing, you should also consider carefully the 
statements under the section entitled “Risk Factors” and other sections of this report which address additional factors that could cause our actual results 
to differ from those set forth in the forward-looking statements.  We undertake no obligation to release publicly any updates or revisions to any forward-
looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such 
statement is based, except as required by law.

Corporate Headquarters
465 Route 17 South Ramsey, NJ 07446
(201) 478-5552
www.admabiologics.com

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