Navidea Biopharmaceuticals Annual Report 2021

FY2021 Annual Report · Navidea Biopharmaceuticals

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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, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to to
Commission file number 001-35076

NAVIDEA BIOPHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

31-1080091
(I.R.S. Employer Identification No.)

4995 Bradenton Avenue, Suite 240, Dublin, Ohio
(Address of principal executive offices)

43017-3552
(Zip Code)

Registrant's telephone number,
including area code

(614) 793-7500

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class
Common Stock, par value $.001 per share

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

Trading Symbol(s)
NAVB

Name of Each Exchange on which Registered
NYSE American

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 Section 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 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.

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. ☐

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 shares of common stock held by non-affiliates of the registrant on June 30, 2021 was $35,956,327.

The number of shares of common stock outstanding on March 18, 2022 was 30,299,054.

DOCUMENTS INCORPORATED BY REFERENCE

None.

TABLE OF CONTENTS

PART I

Item 1

Business

Item 1A Risk Factors

Item 1B Unresolved Staff Comments

Item 2

Properties

Item 3

Legal Proceedings

Item 4 Mine Safety Disclosure

PART II

Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 6

Selected Financial Data

Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 7A Quantitative and Qualitative Disclosures About Market Risk

Item 8

Financial Statements and Supplementary Data

Item 9

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A Controls and Procedures

Item 9B Other Information

Item 9C Disclosures Regarding Foreign Jurisdictions that Prevent Inspections

PART III

Item 10 Directors, Executive Officers and Corporate Governance

Item 11 Executive Compensation

Item 12

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

Item 13 Certain Relationships and Related Transactions, and Director Independence

Item 14

Principal Accountant Fees and Services

PART IV

Item 15 Exhibits, Financial Statement Schedules

The Private Securities Litigation Reform Act of 1995 (the “PSLRA”) provides a safe harbor for forward-looking statements made by or on behalf of the Company.
Statements in this document which relate to other than strictly historical facts, such as statements about the Company’s plans and strategies, expectations for future
financial performance, new and existing products and technologies, anticipated clinical and regulatory pathways, the ability to obtain, and timing of, regulatory
approvals of the Company’s products, the timing and anticipated results of commercialization efforts, and anticipated markets for the Company’s products, are forward-
looking statements within the meaning of the PSLRA. The words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” “project,” and similar
expressions identify forward-looking statements that speak only as of the date hereof. Investors are cautioned that such statements involve risks and uncertainties that
could cause actual results to differ materially from historical or anticipated results due to many factors including, but not limited to, our history of operating losses and
uncertainty of future profitability, accumulated deficit, future capital needs, the outcome of any pending litigation, uncertainty of capital funding, dependence on royalties
and grant revenue, limited product line and distribution channels, competition, risks of development of new products, our ability to maintain effective control over
financial reporting, our ability to comply with NYSE American continued listing standards, the impact of the recent coronavirus pandemic, and other risks set forth below
under Item 1A, “Risk Factors.” The Company undertakes no obligation to publicly update or revise any forward-looking statements.

PART I

Item 1. Business

Development of the Business

Navidea Biopharmaceuticals, Inc. (“Navidea,” the “Company,” “our” or “we”), a Delaware corporation (NYSE American: NAVB), is a biopharmaceutical company focused
on the development and commercialization of precision immunodiagnostic agents and immunotherapeutics. Navidea is developing multiple precision-targeted products
based on our Manocept™ platform to enhance patient care by identifying the sites and pathways of undetected disease and enable better diagnostic accuracy, clinical
decision-making and targeted treatment.

Navidea’s Manocept platform is predicated on the ability to specifically target the CD206 mannose receptor expressed on activated macrophages. The Manocept platform
serves as the molecular backbone of Tc99m tilmanocept, the first product developed and commercialized by Navidea based on the platform. Other than Tc99m tilmanocept,
which the Company has a license to distribute outside of Canada, Mexico and the United States, none of the Company’s drug product candidates have been approved for
sale in any market.

Our business is focused on two primary types of drug products: (i) diagnostic substances, including Tc99m tilmanocept and other diagnostic applications of our Manocept
platform, and (ii) therapeutic development programs, including therapeutic applications of our Manocept platform. See Note 15 to the accompanying consolidated financial
statements for more information about our business segments.

History

We were originally incorporated in Ohio in 1983 and reincorporated in Delaware in 1988. From inception until January 2012, we operated under the name Neoprobe
Corporation. In January 2012, we changed our name to Navidea Biopharmaceuticals, Inc. in connection with both the sale of our medical device business and our strategic
repositioning as a precision medicines company focused on the development and commercialization of precision diagnostic and therapeutic pharmaceuticals. Since our
inception, the majority of our efforts and resources have been devoted to the research and clinical development of radiopharmaceutical technologies primarily related to the
intraoperative diagnosis and treatment of cancers.

Beginning in late 2011, the Company in-licensed two neuro-tracer product candidates, NAV4694 and NAV5001. The Company advanced the development of both product
candidates over the course of 2012 through 2014, moving both into Phase 3 clinical trials. However, in May 2014, the Navidea Board of Directors announced that the
Company would restructure its development efforts to focus on cost effective development of the Manocept platform and divest its neuro-tracer product candidates. In April
2015, the Company entered into an agreement with Alseres Pharmaceuticals, Inc. (“Alseres”) to terminate the NAV5001 sublicense agreement. In January 2021, the
Company executed an agreement with Alseres and LikeMinds, Inc. (“LikeMinds”), pursuant to which Alseres assigned its obligations under the previous sublicense and
termination agreements, including certain milestone and royalty payments, to LikeMinds. In April 2018, the Company executed an agreement to provide Meilleur
Technologies, Inc. (“Meilleur”) worldwide rights to conduct research using NAV4694, as well as an exclusive license for the development and commercialization of
NAV4694 in Australia, Canada, China, and Singapore. Meilleur also has an option to commercialize worldwide.

In December 2014, we announced the formation of a new business unit to further explore therapeutic applications for the Manocept platform, which was incorporated as
Macrophage Therapeutics, Inc. (“MT”) in January 2015 as a majority-owned subsidiary of Navidea. Navidea also granted MT an exclusive sublicense for certain therapeutic
applications of the Manocept technology. Effective March 1, 2019, Navidea terminated the sublicense to MT in accordance with its terms due to MT’s insolvency. Since
then, Navidea has continued the development of therapeutic products based on the Manocept platform.

Technology and Product Candidates

Our primary development efforts over the last several years were focused on diagnostic products, including Tc99m tilmanocept, which the Company has a license to
distribute outside of Canada, Mexico and the United States. Our more recent initiatives have been focused on diagnostic and therapeutic line extensions based on our
Manocept platform.

During the ongoing COVID-19 global pandemic, the Company’s primary concern is the safety of its employees, the employees of its clinical trial sites, and the patients
enrolled in its clinical trials. The Company is working hard to mitigate any safety risk along with any long-term impact on its clinical development programs. We do not
believe there has been a significant impact to the Company’s clinical development and regulatory timelines resulting from the ongoing COVID-19 global pandemic.
However, the COVID-19 outbreak delayed enrollment in our NAV3-32 clinical study in the United Kingdom due to national COVID-19-related shutdowns. In addition, the
regulatory approval process in India was delayed by the impact of COVID-19 in that country.

As brief overview of recent developments in the Company’s diagnostics area (additional details in following sections), Navidea has completed the Phase 2b clinical trial
(NAV3-31) evaluating imaging repeatability, reproducibility, and stability, as well as the capacity of Tc99m tilmanocept imaging to serve as an early predictor of treatment
efficacy of anti-tumor necrosis factor alpha (“TNFα”) therapy in patients with moderate to severe Rheumatoid Arthritis (“RA”). In addition, the Company has completed
enrollment into a Phase 2b clinical trial (NAV3-35) designed to accrue hand and wrist planar and single photon emission computed tomography/computed tomography
(“SPECT/CT”) images from healthy subjects (with SPECT/CT imaging also done on a small group of RA patients) so that Navidea can complete a normative database in
support of its RA imaging commercial product development. The Company’s recently launched pivotal Phase 3 trial for RA (NAV3-33) is the next step in the development
plan for indications in RA. The additional Phase 2b trial (NAV3-32) correlating Tc99m tilmanocept uptake in RA-involved joints with CD206 immunohistochemistry
findings from synovial biopsies is actively recruiting. In addition, the investigator-initiated Phase 2 cardiovascular (“CV”) study was completed at Massachusetts General
Hospital and a manuscript has been submitted by the investigators. Results of this study provided to date have paralleled data in our earlier published article, and these data
are supportive of Navidea’s hypothesis that tilmanocept can provide marked signal to background in a host of CV disease applications.

Manocept Platform - Diagnostics and Therapeutics Background

Navidea’s Manocept platform is predicated on the ability to specifically target the mannose receptor (CD206) expressed primarily on activated macrophages. This

flexible and versatile platform serves as a molecular backbone for purpose-built targeted imaging molecules that may significantly impact patient care by providing
enhanced diagnostic accuracy, clinical decision-making, and target-specific treatment. This CD206-targeted drug platform is applicable to a range of diagnostic modalities,
including SPECT, positron emission tomography (“PET”), gamma-scanning and intra-operative and/or optical-fluorescence detection, as well as delivery of therapeutic
compounds that target macrophages and their role in a variety of immune- and inflammation-involved diseases. The United States Food and Drug Administration (“FDA”)-
approved sentinel node/lymphatic mapping agent, Tc99m tilmanocept, is representative of the ability to successfully exploit this mechanism to develop powerful new
products and to expand this technology into additional diagnostic and therapeutic applications.

Activated macrophages play important roles in many disease states and are an emerging target in many diseases where diagnostic uncertainty exists. Impairment of
the macrophage-driven disease mechanisms is an area of increasing and proven focus in medicine. The number of people affected by all the inflammatory diseases combined
is estimated at more than 40 million in the United States and up to 700 million worldwide, making macrophage-mediated diseases an area of remarkable clinical importance.
There are many recognized disorders having macrophage involvement, including RA, atherosclerosis/vulnerable plaque, nonalcoholic steatohepatitis, inflammatory bowel
disease, systemic lupus erythematosus, cancer generally including Kaposi’s sarcoma (“KS”), leishmaniasis, and others that span general clinical areas in cancer immunology,
autoimmunity, infectious diseases, cardiology, central nervous system diseases, and inflammation. For the near term, we have selected target diseases that may, if
successfully developed, benefit from this technology.

The Company has developed processes for producing the first two therapeutic Manocept immuno-construct series, the Manocept doxorubicin (“MAN-DOX”)
series, which is designed to specifically target and kill or modify activated CD206+ macrophages by delivering doxorubicin, and the Manocept dexamethasone (“MAN-
DEX”) series, which is designed to inhibit the inflammatory activity of activated CD206+ macrophages by delivering a potent anti-inflammatory agent, dexamethasone. We
have contracted with independent facilities to improve chemical syntheses and to produce sufficient quantities of the MAN-DOX series and MAN-DEX series agents, along
with the concomitant analytical standards, to provide material for current and planned preclinical animal studies and future clinical trials. Evaluation of an advanced MAN-
DOX construct has been successfully evaluated in both human macrophage cell culture assays and in various syngeneic mouse models of cancer. Similar evaluations of an
advanced MAN-DEX construct are currently ongoing.

Manocept Platform – Immuno-Diagnostics Clinical Data

Rheumatoid Arthritis

Two Tc99m tilmanocept dose escalation studies in RA have been completed. The first study was completed and included 18 subjects (nine with active disease and nine
healthy subjects) dosed subcutaneously (“SC”) with 50 and 200 µg/2mCi Tc99m tilmanocept (ClinicalTrials.gov NCT02683421). The results of this study were presented at
five international meetings, including Biotechnology Innovation Organization, Society of Nuclear Medicine and Molecular Imaging (“SNMMI”), and The American College
of Rheumatology (“ACR”). In addition, based on completion of extensive preclinical dosing studies pursuant to our dialog with the FDA, we have completed a Phase 1/2
study involving intravenous (“IV”) dosing of 39 subjects with IV-administered Tc99m tilmanocept (ClinicalTrials.gov NCT02865434). In conjunction with this study, we
completed pharmacokinetic, pharmacodynamics and radiation dosimetry phases in human subjects as well. The majority of the costs of these studies were supported through
a Small Business Innovation Research (“SBIR”) grant (NIH/NIAMSD Grant 1 R44 AR067583-01A1). Results of the Phase 1/2 study were presented at the June 2018 and
June 2019 SNMMI meetings, the 2018 European League Against Rheumatism (“EULAR”) meeting and the 2018 ACR meeting. These studies have been combined and
submitted for peer review publication and full published results will follow.

The Phase 1/2 study enrolled subjects with active, moderate-to-severe RA, and healthy controls. Results from the completed trial demonstrated that Tc99m tilmanocept is
well-tolerated with no serious adverse events, adverse drug reactions, or drug-related adverse events observed. Additionally, static planar images revealed joint-specific
Tc99m tilmanocept localization in RA subjects to disease-involved joints of the shoulders, knees, hands, and feet, but no joint-specific localization in healthy control
subjects, revealing potentially significant immunodiagnostic information about CD206-expressing synovial macrophage involvement in RA. An optimal imaging time
window post-Tc99m tilmanocept IV administration, as well as optimal dosing, were also determined.

In April 2019, the Company received feedback from the FDA regarding the Company’s planned clinical studies to evaluate joint disease in patients with RA and monitor
patient response to therapy. The Company’s proposed RA studies were discussed with the FDA during an in-person meeting and through follow-up collaborative efforts. The
FDA communicated that the first study, a Phase 2b trial, was aligned with expectations for the studies and that they would continue to work with Navidea as the Company
progressed into the second Phase 2b trial correlating Tc99m tilmanocept uptake in RA-involved joints with CD206 immunohistochemistry findings from synovial biopsies
and into the planned Phase 3 clinical trial.

In May 2019, we began enrolling patients into the first Phase 2b study, (NAV3-31), entitled “Evaluation of the Precision and Sensitivity of Tilmanocept Uptake Value
(“TUV”) on Tc99m Tilmanocept Planar Imaging” (ClinicalTrials.gov MCT03938636). This study, since completed, provided confirmatory support necessary to initiate
Navidea’s Phase 3 study program. In October 2019, the Company performed its first interim analysis of this trial, covering subjects enrolling into Arms 1 and 2. The results
of this interim analysis were in line with the Company’s hypotheses that Tc99m tilmanocept can provide robust, stable imaging in healthy subjects as well as in patients with
active RA, and provide the fundamental information needed to keep moving forward into the Phase 3. A summary of these results was presented at the 2020 EULAR
meeting. In May 2020, the Company announced the results of its second interim analysis, covering Arm 3 of the trial. This Arm mirrored the upcoming Phase 3 in design
and provided information relevant for sample size calculation for the Phase 3 as well as support for the hypothesis that Tc99m tilmanocept imaging can provide an early
indicator of treatment efficacy of anti-TNFα therapeutics. These interim results were presented at the 2020 ACR meeting. In June 2020, the Company announced full
enrollment into this trial, with imaging events completed in each patient enrolled in Arm 3.

In February 2021, the Company submitted its formal briefing book to the FDA, containing detailed analysis and discussion of the Company’s then-ongoing Phase 2b study
(NAV3-31) and prior studies in RA as well as the design and statistical analysis plan for the proposed Phase 3 for FDA comment. Following the feedback received from the
FDA at the end of March 2021, the Company continued to work toward completing the analysis of the full NAV3-31 trial dataset and submitted the resultant briefing book
containing the results of this analysis in preparation for the standard End-of-Phase 2 Type B meeting, which took place on September 1, 2021. The Company had a
constructive meeting with the FDA and, based on the discussion in this meeting and follow-up communication, has made agreed-upon modifications to the trial design for
the Phase 3 study (NAV3-33). The Company submitted the modified protocol back to the FDA and initiated the study in December 2021. Following additional feedback
from the FDA, the Company made modifications to several of the objectives. Enrollment into the Phase 3 study has begun. The pivotal Phase 3 study program will determine
Tc99m tilmanocept’s capability to serve as an early predictor of treatment response to anti-TNFα therapy in patients with RA.

Cardiovascular Disease

In collaboration with researchers at Massachusetts General Hospital, Navidea has completed two investigator-initiated clinical studies evaluating Tc99m tilmanocept’s
ability to enable imaging of atherosclerotic plaques. Results of these studies provide strong preliminary evidence of the potential of Tc99m tilmanocept to accumulate
specifically in and enable imaging of non-calcified atherosclerotic plaques. Non-calcified atherosclerotic plaques include plaques with morphologies indicating a high risk of
rupture. Rupture of such plaques causes myocardial infarctions (heart attacks) and a significant portion of ischemic strokes. The studies compared aortic Tc99m tilmanocept
uptake imaged by SPECT/CT in clinically asymptomatic subjects with intermediate Framingham Risk Scores (“FRS”) who were infected with Human Immunodeficiency
Virus (“HIV”) as compared to healthy, uninfected, FRS and age-matched subjects. Tc99m tilmanocept SPECT/CT images were compared to aortic images of the same
subjects obtained by contrast enhanced coronary computed tomography angiography and/or [18F]NaF PET/CT.

A nine-subject study to evaluate diagnostic imaging of emerging atherosclerosis plaque with the Tc99m tilmanocept product dosed SC was performed (ClinicalTrials.gov
NCT02542371). The results of this study were presented at two major international meetings (Conference on Retroviruses and Opportunistic Infections and SNMMI, 2017)
and published in early release in the Journal of Infectious Diseases in January 2017 (published in the circulated version, Journal of Infectious Diseases (2017) 215 (8): 1264-
1269), confirming that the Tc99m tilmanocept product can both quantitatively and qualitatively target non-calcified plaque in the aortic arch of Acquired Immunodeficiency
Syndrome (“AIDS”) patients (supported by NIH/NHLBI Grant 1 R43 HL127846-01). This study was later expanded to include up to 31 participants, and has achieved full
enrollment, with a manuscript submitted.

A second Phase 1/2 investigator-initiated study in cooperation with Massachusetts General Hospital in subjects with HIV was initiated that expanded the original study in
both the scope of the drug administration as well as the diagnostic assessment of the subjects. This study enrolled both AIDS subjects and healthy controls in imaging non-
calcified plaque using IV and SC-administered Tc99m tilmanocept and will expand the initial investigation to the assessment of aortic plaque as well as carotid and coronary
arteries. Initial analysis suggested that the SC route of administration led to superior signal-to-background in areas of non-calcified plaque. These results are being further
assessed.

Navidea has also been awarded a $225,000 phase 1 Small Business Technology Transfer grant (1R41HL147640-01A1) entitled Gallium 68 Tilmanocept for PET Imaging of
Atherosclerosis Plaques. This grant supports a research collaboration between Navidea and Dr. Suzanne Lapi of the University of Alabama Birmingham evaluating a mouse
model of atherosclerosis. This work has as its aim the evaluation of [68]gallium tilmanocept and various next generation imaging agents for visualizing plaques. Activities
began in the fourth quarter of 2019. As of January 2022, all images have been acquired with efforts now focused on data analyses.

Kaposi’s Sarcoma

We initiated and completed a study of KS in 2015 (ClinicalTrials.gov NCT022201420) and received additional funding from the National Institutes of Health (“NIH”) in
2016 to continue diagnostic studies in this disease. The new support not only continues the imaging of the cutaneous form of this disease but expands this to imaging of
visceral disease via IV administration of Tc99m tilmanocept (NIH/NCI 1 R44 CA192859-01A1; ClinicalTrials.gov NCT03157167). This now-escalated study includes a
pathology/biopsy component as well as an imaging component to determine pathology concordance with image assessment. We received Institutional Review Board
approval of the clinical protocol and initiated a Phase 1/2 clinical study in KS in 2017. This trial has completed enrollment and imaging. Data and image analysis for this
study are ongoing.

Tuberculosis (“TB”)

In April 2019, the Company announced that Professor Mike Sathekge, MBChB, M. Med (Nuclear Medicine), PhD, Professor and Head of the Department of Nuclear
Medicine in the Faculty of Health Sciences at the University of Pretoria/Steve Biko Academic Hospital, planned to initiate a comparative study evaluating the use of
tilmanocept in patients with TB. The purpose of this ongoing study is to explore using 68Ga tilmanocept as an aid in TB patient management while contributing to the better
understanding of the biology of TB granulomas. CD206+ macrophages constitute one of the most abundant cell types in TB granulomas. Therefore, a molecular probe such
as 68Ga-labeled tilmanocept targeting mannose receptor CD206 expressed on macrophages holds great promise not only in understanding the biology of TB granulomas, but
may also support future development of a tilmanocept-like drug delivery vehicle for delivering therapeutic interventions to TB granulomas. Navidea has provided
tilmanocept for use in this study, and several subjects have been injected and imaged to date. Successful completion of this study could support an extended claim of 68Ga-
tilmanocept.

Biomarker Application and Qualification

In November 2017, the Company commenced the qualification of the biomarker CD206 with the FDA Biomarker Section of The Center for Drug Evaluation and Research
(“CDER”). As per FDA protocol, Navidea submitted a draft letter of intent (“LOI”) to CDER prior to the November 2017 meeting. According to the CDER directive, “the
Biomarker Qualification Program was established to support the CDER’s work with external stakeholders to develop biomarkers that aid in the drug development process.
Through the FDA’s Biomarker Qualification Program, an entity may request regulatory qualification of a biomarker for a particular context of use (“COU”) in drug
development.” Following the meeting with the FDA, and because of Navidea’s data sets and the general external publication database, Navidea, in conjunction with FDA, is
now reviewing the LOI with the FDA’s recommended consultants. Navidea has revised the LOI draft strategy in order to expedite the application process. In March 2018,
Navidea had a follow-up meeting with the FDA’s assigned strategist, during which the potential to further narrow the LOI elements was reviewed. Navidea is continuing the
process of finalizing the COU LOI and providing the background data sets for qualification review with the FDA/CDER. Additional meetings have taken place and the
pursuit of this qualification is ongoing.

Manocept Platform – In-Vitro and Pre-Clinical Immunotherapeutics Data

The Company has been developing Manocept platform drug delivery constructs that carry various payloads including doxorubicin and dexamethasone. Chemical synthesis
techniques have advanced considerably, resulting in more robust and reproducible synthesis protocols that provide products with chemical attributes indicative of enhanced
in vivo activity. The most advanced drug delivery construct carries a doxorubicin payload and is now in its third generation of chemical synthesis protocol design. This third-
generation doxorubicin carrying construct has been extensively evaluated in human macrophage cell culture assays and in three experiments using syngeneic mouse cancer
models. These experiments show that at treatment doses below what is required to kill macrophages, the doxorubicin-carrying constructs dramatically alters the
immunological behavior of macrophages, making them more proinflammatory. In one of the syngeneic mouse tumor experiments, the MAN-DOX construct significantly
synergized the activity of another anticancer therapy producing anti-tumor activity that was greater than either treatment alone. Results from this study were presented at the
New York Academy of Sciences Frontiers in Cancer Immunotherapy 2021 conference on May 14, 2021. Near-term experiments with the Manocept doxorubicin construct
include further studies in macrophage cell culture, additional syngeneic mouse tumor models, and a toxicity study in rats. Work involving a second generation Manocept
dexamethasone-carrying construct and efforts developing Manocept constructs with different payloads is ongoing. Three new Manocept constructs carrying payloads other
than doxorubicin or dexamethasone have progressed to evaluations in macrophage cell culture assays.

Kaposi’s Sarcoma

The novel MAN-DOX class constructs are designed to specifically deliver doxorubicin, a chemotoxin, which can kill KS tumor cells and their tumor-associated
macrophages, potentially altering the course of cancer. We received additional funding to continue therapeutic studies in this disease with the goal of completing an
investigational new drug (“IND”) submission for a Manocept construct (MAN-DOX class of compounds) consisting of tilmanocept linked to doxorubicin for the treatment
of KS. Efforts supported by this grant (NIH/NCI 1 R44 CA206788-01) are now complete. The results greatly advanced our knowhow for robustly and reproducibly
synthesizing MAN-DOX and related constructs carrying other payloads. The grant-supported efforts were presented at the New York Academy of Sciences Frontiers in
Cancer Immunotherapy 2021.

Other Immunotherapeutic Applications

The Company continues to evaluate emerging data in other disease states to define areas of focus, development pathways and partnering options to capitalize on the
Manocept platform, including ongoing studies in KS, RA and infectious diseases. The immuno-inflammatory process is remarkably complex and tightly regulated with
indicators that initiate, maintain and shut down the process. Macrophages are immune cells that play a critical role in the initiation, maintenance, and resolution of
inflammation. They are activated and deactivated in the inflammatory process. Because macrophages may promote dysregulation that accelerates or enhances disease
progression, diagnostic and therapeutic interventions that target macrophages may open new avenues for controlling inflammatory diseases. There can be no assurance that
further evaluation or development will be successful, that any Manocept platform product candidate will ultimately achieve regulatory approval, or if approved, the extent to
which it will achieve market acceptance.

Market Overview

Manocept Diagnostics and Macrophage Therapeutics Market Overview

Impairment of the macrophage-driven disease mechanism is an area of increasing focus in medicine. There are many recognized disorders having macrophage involvement,
including RA, atherosclerosis/vulnerable plaque, Crohn’s disease, TB, systemic lupus erythematosus, KS, and others that span clinical areas in oncology, autoimmunity,
infectious diseases, cardiology, and inflammation. The number of people affected by all the inflammatory diseases combined is estimated at more than 40 million in the
United States, making these macrophage-mediated diseases an area of significant clinical importance. The Arthritis Foundation estimates that RA alone affects over 1.5
million people in the United States and as much as 1% of the worldwide population. Based on the most recent U.S. Medicare/Medicaid data, total annual societal costs of
RA are estimated to be over $39 billion.

Tc99m Tilmanocept – Cancer Market Overview

Cancer is the second leading cause of death in the United States. The American Cancer Society (“ACS”) estimates that cancer will cause over 600,000 deaths in 2022 in the
United States alone. Additionally, the ACS estimates that over 1.9 million new cancer cases will be diagnosed in the United States during 2022. The National Cancer
Institute estimates that direct medical costs for cancer in the United States for 2015 were $183 billion, and are projected to increase to $246 billion by 2030. Cancer is also
the second leading cause of death in Europe. The World Health Organization reports more than 3.7 million new cases and 1.9 million deaths in Europe each year.

Tc99m tilmanocept is approved by the FDA for use in solid tumor cancers where lymphatic mapping is a component of surgical management and for guiding sentinel lymph
node biopsy in patients with clinically node negative breast cancer, head and neck cancer, melanoma or squamous cell carcinoma of the oral cavity. Tc99m tilmanocept has
also received European approval in imaging and intraoperative detection of sentinel lymph nodes in patients with melanoma, breast cancer or localized squamous cell
carcinoma of the oral cavity. If the potential of Tc99m tilmanocept as a radioactive tracing agent is ultimately realized, it may address not only the breast and melanoma
markets on a procedural basis, but also assist in the clinical evaluation and staging of solid tumor cancers and expanding lymph node mapping to other solid tumor cancers
such as prostate, gastric, colon, gynecologic, and non-small cell lung.

Marketing and Distribution

Following Navidea’s March 2017 sale to Cardinal Health 414, LLC (“Cardinal Health 414”) of all of its assets used in operating its business of developing, manufacturing
and commercializing the Company’s radioactive diagnostic agent marketed under the Lymphoseek® trademark in Canada, Mexico and the United States, the Supply and
Distribution Agreement between Cardinal Health 414 and Navidea was terminated and Cardinal Health 414 assumed responsibility for marketing Lymphoseek in those
territories.

Europe

Unlike in the United States, where institutions typically rely on radiopharmaceutical products that are compounded and delivered by specialized radiopharmacy distributors
such as Cardinal Health 414, institutions in Europe predominantly purchase non-radiolabeled material and compound the radioactive product on-site. With respect to Tc99m
tilmanocept commercialization in Europe, we initially chose a specialty pharmaceutical strategy that we believed would be supportive of premium product positioning and
reinforce Tc99m tilmanocept's clinical value proposition, as opposed to a commodity or a generics positioning approach. On March 5, 2015, Navidea entered into an
Exclusive License Agreement (as amended to date, the “License Agreement”) for the commercialization and distribution of a 50-microgram kit for radiopharmaceutical
preparation (tilmanocept) in the European Union (“EU”) with SpePharm AG (“SpePharm,” an affiliate of Norgine BV), a European specialist pharmaceutical company with
an extensive pan-European presence. Under the License Agreement, SpePharm had the exclusive right to develop, manufacture and commercialize the Company’s products
approved for radiolabeling with Tc99m and containing Lymphoseek (collectively, the “Products”) in several jurisdictions abroad, including the United Kingdom, France,
Germany, Australia and New Zealand (collectively, the “Licensed Territory”). In exchange for such rights, the Company was entitled to certain royalty payments. In
accordance with the License Agreement, Navidea transferred responsibility for regulatory maintenance of the Tc99m tilmanocept Marketing Authorization to SpePharm.
SpePharm was also responsible for production, distribution, pricing, reimbursement, sales, marketing, medical affairs, and regulatory activities.

On May 11, 2020 (the “Termination Date”), the Company entered into a Termination Agreement (the “Termination Agreement”) with SpePharm AG (“SpePharm”) and
Norgine BV (“Norgine”) which terminated that certain Exclusive License Agreement dated March 5, 2015 (as amended to date, the “License Agreement”). Under the
License Agreement, SpePharm had the exclusive right to develop, manufacture and commercialize the Company’s products approved for radiolabeling with Tc99m and
containing Lymphoseek® (collectively, the “Products”) in several jurisdictions abroad, including the United Kingdom, France, Germany, Australia and New Zealand
(collectively, the “Licensed Territory”). In exchange for such rights, the Company was entitled to certain royalty payments.

Pursuant to the Termination Agreement, the parties agreed that neither owed the other any payments due under the License Agreement as of the Termination Date and that,
among other things, SpePharm no longer has any right in, nor claim to, any intellectual property owned by the Company or its affiliates anywhere in the world. SpePharm
also agreed to perform certain wind-down activities (the “Wind-Down Activities”) during the six-month period following the Termination Date (the “Transition Period”),
which Transition Period was extended by ninety days. The Wind-Down Activities included, without limitation, SpePharm transferring to the Company or its designee(s) the
regulatory approvals controlled by SpePharm or its affiliates for the purpose of marketing, distributing and selling the Products in the Licensed Territory. SpePharm also
transferred to the Company certain tenders and other customer and sales contracts related to the Products. Subject to the terms of the Termination Agreement, Norgine, an
affiliate of SpePharm, agreed to guarantee SpePharm’s performance of its obligations under the Termination Agreement. Although the Transition Period has elapsed,
SpePharm continued to fulfill customer orders until the Company obtained the regulatory license required to distribute the product in Europe, which license was received
during the fourth quarter of 2021.

On June 9, 2020, Navidea established a new European entity, Navidea Biopharmaceuticals Europe Limited (“Navidea Europe”), to address international development and
commercialization needs for our technologies, including Tc99m tilmanocept. SpePharm has transferred the Tc99m tilmanocept Marketing Authorization to Navidea Europe,
along with the responsibility for production and commercialization of Tc99m tilmanocept in the Licensed Territory. Navidea Europe has established relationships and
executed agreements with third-party providers in order to fulfill such responsibilities. Navidea owns 100% of the outstanding shares of Navidea Europe.

China

In August 2014, Navidea entered into an exclusive agreement with Beijing Sinotau Medical Research Co., Ltd. (“Sinotau”), a pharmaceutical organization with a broad
China focus in oncology and other therapeutic areas, who will develop and commercialize Tc99m tilmanocept in China. In exchange, Navidea will earn revenue based on
unit sales to Sinotau, royalties based on Sinotau’s sales of Tc99m tilmanocept and milestone payments from Sinotau, including a $300,000 non-refundable upfront payment.
As part of the agreement, Sinotau is responsible for costs and conduct of clinical studies and regulatory applications to obtain Tc99m tilmanocept approval by the China
Food and Drug Administration (“CFDA”). Upon approval, Sinotau will be responsible for all Tc99m tilmanocept sales, marketing, market access and medical affairs
activities in China and excluding Hong Kong, Macau and Taiwan. Navidea and Sinotau will jointly support certain pre-market planning activities with a joint commitment
on clinical and market development programs pending CFDA approval.

India

In June 2017, Navidea entered into an exclusive license and distribution agreement with Sayre Therapeutics (“Sayre”) for the development and commercialization of Tc99m
tilmanocept in India. Sayre specializes in innovative treatments and medical devices commercialization in South Asia. Under the terms of the agreement, Navidea received a
$100,000 upfront payment and is eligible to receive milestone payments and double-digit royalties associated with the sale of Tc99m tilmanocept in India. Tc99m
tilmanocept has not yet received marketing approval in India.

Summary

Tc99m tilmanocept is in various stages of approval in other global markets and sales to this point in these markets, to the extent there were any, have not been material.
However, we believe that with international partnerships to complement our positions in the EU, China and India, we will help establish Tc99m tilmanocept as a global
leader in lymphatic mapping, as we are not aware of any other company that has a global geographic range. However, it is possible that Tc99m tilmanocept will never
achieve regulatory approval in any market outside the United States or EU, or if approved, that it may not achieve market acceptance in any market. We may also experience
difficulty in securing collaborative partners for other global markets or radiopharmaceutical products, or successfully negotiating acceptable terms for such arrangements.
See Item 1A - “Risk Factors.”

Manufacturing

We currently use and expect to continue to be dependent upon contract manufacturers to manufacture each of our product candidates. We maintain a quality control and
quality assurance program, including a set of standard operating procedures and specifications, with the goal that our products and product candidates are manufactured in
accordance with current good manufacturing practices (“cGMP”) and other applicable domestic and international regulations. We are investing in additional manufacturing
and supply chain resources, and have entered into development contracts with the established manufacturing companies Corden Pharma Switzerland, LLC for active
pharmaceutical ingredient production and ROTOP Pharmaka GmbH for drug product manufacturing. It is likely that we will continue to rely on third-party manufacturers
for our development and commercial products on a contract basis. We may not be successful in completing long-term agreements for the supply of Tc99m tilmanocept on
terms acceptable to the Company, or at all. See Item 1A - “Risk Factors.”

Competition

Competition in the pharmaceutical and biotechnology industries is intense. We face competition from a variety of companies focused on developing inflammatory, oncology
and CV disease diagnostic imaging agents and other diagnostic modalities. We compete with large pharmaceutical and other specialized biotechnology companies. We also
face competition from universities and other non-profit research organizations. any emerging medical product companies have corporate partnership arrangements with
large, established companies to support the research, development, and commercialization of products that may be competitive with our products. In addition, a number of
large established companies are developing proprietary technologies or have enhanced their capabilities by entering into arrangements with or acquiring companies with
technologies applicable to the detection or treatment of cancer and other diseases targeted by our product candidates. Smaller companies may also prove to be significant
competitors, particularly through collaborative arrangements with large pharmaceutical and established biotechnology companies. Many of these competitors have products
that have been approved or are in development and operate large, well-funded research and development (“R&D”) programs. Many of our existing or potential competitors
have substantially greater financial, R&D, regulatory, marketing, and production resources than we have. Other companies may develop and introduce products and
processes competitive with or superior to ours.

We expect to encounter significant competition for our pharmaceutical products. Companies that complete clinical trials, obtain required regulatory approvals and
commence commercial sales of their products before us may achieve a significant competitive advantage if their products work through a similar mechanism as our products
and if the approved indications are similar. A number of biotechnology and pharmaceutical companies are developing new products for the diagnosis and/or treatment of the
same diseases being targeted by us. In some instances, such products have already entered late-stage clinical trials or received FDA approval and may be marketed for some
period prior to the approval of our products.

We believe that our ability to compete successfully will be based on our ability to create and maintain scientifically advanced “best-in-class” technology, develop proprietary
products, attract and retain scientific personnel, obtain patent or other protection for our products, obtain required regulatory approvals and manufacture and successfully
market our products, either alone or through third parties. We expect that competition among products cleared for marketing will be based on, among other things, product
efficacy, safety, reliability, availability, price, and patent position. See Item 1A - “Risk Factors.”

Tc99m Tilmanocept Competition – Currently Approved Indications

Some surgeons who practice the lymphatic mapping procedure for which Tc99m tilmanocept is intended currently use other radiopharmaceuticals such as a sulfur colloid or
other colloidal compounds. In addition, some surgeons still use vital blue dyes to assist in the visual identification of the draining lymphatic tissue around a primary tumor.
In the EU and certain Pacific Rim markets, there are colloidal-based compounds with various levels of approved labeling for use in lymphatic mapping, although a number
of countries still employ products used “off-label.”

Rheumatoid Arthritis Competition

Currently, no single test is available to diagnose and monitor RA. Rather, a rheumatologist will make a diagnosis based on several procedures that may include a physical
exam, blood tests, and/or imaging tests, among others. The Arthritis Foundation states that the goals of RA treatment are to relieve symptoms, stop inflammation, prevent
joint and organ damage, improve physical function and well-being, and reduce long-term complications. Medications for the treatment of RA currently fall into two
categories: drugs that ease symptoms, such as nonsteroidal anti-inflammatory drugs, and drugs that slow disease activity. Drugs that slow disease activity include
corticosteroids, biologic disease-modifying antirheumatic drugs (“bDMARDs”) and Janus kinase inhibitors. Many of these drugs are produced and sold by large
pharmaceutical companies, including AbbVie, Amgen, Bristol Meyers Squibb, Johnson & Johnson, Merck, Pfizer and Roche, among others.

One of Navidea’s primary goals for its RA imaging product development program is to develop an imaging-based test that can predict patient-specific therapeutic responses
to bDMARDs, especially anti-TNFα antibody therapy, which is the most commonly prescribed type of therapy for RA within this drug class. While no tests predicting
therapeutic responses to bDMARDs have been approved by the FDA, Navidea is aware of other groups that are working to develop such tests, primarily blood-based
biomarker assays. One or more of these tests could be approved by the FDA in the future, making it possible for them to compete directly with Navidea’s imaging-based RA
test. Even without FDA approval, these tests could reduce the Company’s share of this market in the future.

Patents and Proprietary Rights

The patent position of biotechnology companies, including Navidea, generally is highly uncertain and may involve complex legal and factual questions. Potential
competitors may have filed applications, or may have been issued patents, or may obtain additional patents and proprietary rights relating to products or processes in the
same area of technology as that used by the Company. The scope and validity of these patents and applications, the extent to which we may be required to obtain licenses
thereunder or under other proprietary rights, and the cost and availability of licenses are uncertain. Our patent applications or those licensed to us may not result in additional
patents being issued, and our patents or those licensed to us may not afford protection against competitors with similar technology; these patents may be designed around by
others or others may obtain patents that we would need to license or design around.

We also rely upon unpatented trade secrets. Others may independently develop substantially equivalent proprietary information and techniques, or otherwise gain access to
our trade secrets, or disclose such technology, or we may not be able to meaningfully protect our rights to our unpatented trade secrets.

We require our employees, consultants, advisers, and suppliers to execute a confidentiality agreement upon the commencement of an employment, consulting or
manufacturing relationship with us. The agreement provides that all confidential information developed by or made known to the individual during the course of the
relationship will be kept confidential and not disclosed to third parties except in specified circumstances. In the case of employees, the agreements provide that all inventions
conceived by the individual will be the exclusive property of our company. However, these agreements may not provide meaningful protection for our trade secrets in the
event of an unauthorized use or disclosure of such information. We also employ a variety of security measures to preserve the confidentiality of our trade secrets and to limit
access by unauthorized persons. However, these measures may not be adequate to protect our trade secrets from unauthorized access or disclosure. See Item 1A - “Risk
Factors.”

Tilmanocept Intellectual Property

Tilmanocept is under license from the University of California, San Diego (“UCSD”) to Navidea for the exclusive world-wide rights in all diagnostic and therapeutic uses of
tilmanocept, except for the use of Tc99m tilmanocept in lymphatic mapping in Canada, Mexico and the United States, which rights have been licensed directly to Cardinal
Health 414 by UCSD. Navidea maintains license rights to Tc99m tilmanocept in the rest of the world, as well as a license to the intellectual property underlying the
Manocept platform.

Tc99m tilmanocept and related compositions, including the Manocept backbone composition and methods of use, are the subject of multiple patent families including
issued patents and patent applications in the United States and certain major foreign markets.

The first composition of matter patent covering tilmanocept was issued to UCSD in the United States in June 2002 and would have expired in May 2020. However, Navidea
was granted a five-year patent term extension under the Hatch Waxman Act due to time lost in regulatory review. The claims of the composition of matter patent covering
tilmanocept issued in the majority of major-market European countries in 2004 and would have expired in 2020. However, the Company has obtained supplemental
protection certificates, extending the patent terms to 2025. The composition of matter patent issued in Japan expired in 2020.

Patent applications have been filed by Navidea in the U.S. and certain major foreign markets related to manufacturing processes for tilmanocept, the first of which was
issued in the U.S. in 2013. These patents and/or applications will expire between 2029 and 2034. Further patent applications have been filed by Navidea alone or with The
Ohio State Innovation Foundation related to CD206 expressing cell-related disorders and diseases. These patents and/or applications are expected to expire between 2034
and 2041.

Government Regulation

The research, development, testing, manufacture, labeling, promotion, advertising, distribution and marketing, among other things, of our products are extensively regulated
by governmental authorities in the United States and other countries. In the United States, the FDA regulates drugs under the Federal Food, Drug, and Cosmetic Act, Public
Health Service Act, and their implementing regulations. Failure to comply with applicable U.S. requirements may subject us to administrative or judicial sanctions, such as
FDA refusal to approve pending new drug applications or supplemental applications, warning letters, product recalls, product seizures, total or partial suspension of
production or distribution, injunctions and/or criminal prosecution. We also may be subject to regulation under the Occupational Safety and Health Act, the Atomic Energy
Act, the Toxic Substances Control Act, the Export Control Act and other present and future laws of general application as well as those specifically related to
radiopharmaceuticals.

Most aspects of our business are subject to some degree of government regulation in the countries in which we conduct our operations. As a developer, manufacturer and
marketer of medical products, we are subject to extensive regulation by, among other governmental entities, the FDA and the corresponding state, local and foreign
regulatory bodies in jurisdictions in which our products are intended to be sold. These regulations govern the introduction of new products, the observance of certain
standards with respect to the manufacture, quality, safety, efficacy and labeling of such products, the maintenance of certain records, the tracking of such products,
performance surveillance and other matters.

Failure to comply with applicable federal, state, local or foreign laws or regulations could subject us to enforcement action, including product seizures, recalls, withdrawal of
marketing clearances, and civil and criminal penalties, any one or more of which could have a material adverse effect on our business. We believe that we are in substantial
compliance with such governmental regulations. However, federal, state, local and foreign laws and regulations regarding the manufacture and sale of radiopharmaceuticals
are subject to future changes. Such changes may have a material adverse effect on our company.

For some products, and in some countries, government regulation is significant and, in general, there is a trend toward more stringent regulation. In recent years, the FDA
and certain foreign regulatory bodies have pursued a more rigorous enforcement program to ensure that regulated businesses like ours comply with applicable laws and
regulations. We devote significant time, effort and expense addressing the extensive governmental regulatory requirements applicable to our business. To date, we have not
received a noncompliance notification or warning letter from the FDA or any other regulatory bodies of alleged deficiencies in our compliance with the relevant
requirements, nor have we recalled or issued safety alerts on any of our products. However, a warning letter, recall or safety alert, if it occurred, could have a material
adverse effect on our company. See Item 1A - “Risk Factors.”

The FDA review processes could delay our Company's introduction of new products in the United States in the future. In addition, many foreign countries have adopted
more stringent regulatory requirements that also have added to the delays and uncertainties associated with the development and release of new products, as well as the
clinical and regulatory costs of supporting such releases. It is possible that delays in receipt of, or failure to receive, any necessary clearance for our new product offerings
could have a material adverse effect on our business, financial condition or results of operations. See Item 1A - “Risk Factors.”

The U.S. Drug Approval Process

None of our drugs may be marketed in the United States until such drug has received FDA approval. The steps required before a drug may be marketed in the United States
include:

●

preclinical laboratory tests, animal studies and formulation studies;

submission to the FDA of an IND application for human clinical testing, which must become effective before human clinical trials may begin;

adequate and well-controlled human clinical trials to establish the safety and efficacy of the investigational product for each indication;

submission to the FDA of a New Drug Application (“NDA”);

satisfactory completion of FDA inspections of the manufacturing and clinical facilities at which the drug is produced, tested, and/or distributed to assess compliance
with cGMPs and current good clinical practices (“cGCP”) standards; and

●

FDA review and approval of the NDA.

Preclinical tests include laboratory evaluation of product chemistry, toxicity and formulation, as well as animal studies. The conduct of the preclinical tests and formulation
of the compounds for testing must comply with federal regulations and requirements. The results of the preclinical tests, together with manufacturing information and
analytical data, are submitted to the FDA as part of an IND, which must become effective before human clinical trials may begin. An IND will automatically become
effective 30 days after receipt by the FDA unless, before that time, the FDA raises concerns or questions about issues such as the conduct of the trials as outlined in the IND.
In such a case, the IND sponsor and the FDA must resolve any outstanding FDA concerns or questions before clinical trials can proceed. We cannot be sure that submission
of an IND will result in the FDA allowing clinical trials to begin.

Clinical trials involve the administration of the investigational product to human subjects under the supervision of qualified investigators. Clinical trials are conducted under
protocols detailing the objectives of the study, the parameters to be used in monitoring safety, and the effectiveness criteria to be evaluated. Each protocol must be submitted
to the FDA as part of the IND.

Clinical trials typically are conducted in three sequential phases, but the phases may overlap or be combined. The study protocol and informed consent information for study
subjects in clinical trials must also be approved by an institutional review board at each institution where the trials will be conducted. Study subjects must sign an informed
consent form before participating in a clinical trial. Phase 1 usually involves the initial introduction of the investigational product into people to evaluate its short-term
safety, dosage tolerance, metabolism, pharmacokinetics and pharmacologic actions, and, if possible, to gain an early indication of its effectiveness. Phase 2 usually involves
trials in a limited subject population to (i) evaluate dosage tolerance and appropriate dosage, (ii) identify possible adverse effects and safety risks, and (iii) evaluate
preliminarily the efficacy of the product candidate for specific indications. Phase 3 trials usually further evaluate clinical efficacy and further test its safety by using the
product candidate in its final form in an expanded subject population. There can be no assurance that Phase 1, Phase 2 or Phase 3 testing will be completed successfully
within any specified period of time, if at all. Furthermore, we or the FDA may suspend clinical trials at any time on various grounds, including a finding that the subjects or
patients are being exposed to an unacceptable health risk.

The FDA and the IND sponsor may agree in writing on the design and size of clinical studies intended to form the primary basis of an effectiveness claim in an NDA
application. This process is known as a Special Protocol Assessment (“SPA”). These agreements may not be changed after the clinical studies begin, except in limited
circumstances. The existence of a SPA, however, does not assure approval of a product candidate.

Assuming successful completion of the required clinical testing, the results of the preclinical studies and of the clinical studies, together with other detailed information,
including information on the manufacturing quality and composition of the investigational product, are submitted to the FDA in the form of an NDA requesting approval to
market the product for one or more indications. The testing and approval process requires substantial time, effort and financial resources. Submission of an NDA requires
payment of a substantial review user fee to the FDA. Before approving an NDA, the FDA usually will inspect the facility or the facilities where the product is manufactured,
tested and distributed and will not approve the product unless cGMP compliance is satisfactory. If the FDA evaluates the NDA and the manufacturing facilities as
acceptable, the FDA may issue an approval letter or a complete response letter. A complete response letter outlines conditions that must be met in order to secure final
approval of the NDA. When and if those conditions have been met to the FDA’s satisfaction, the FDA will issue an approval letter. The approval letter authorizes
commercial marketing of the drug for specific indications. As a condition of approval, the FDA may require post-marketing testing and surveillance to monitor the product’s
safety or efficacy, or impose other post-approval commitment conditions.

The FDA has various programs, including fast track, priority review and accelerated approval, which are intended to expedite or simplify the process of reviewing drugs
and/or provide for approval on the basis of surrogate endpoints. Generally, drugs that may be eligible for one or more of these programs are those for serious or life
threatening conditions, those with the potential to address unmet medical needs and those that provide meaningful benefit over existing treatments. Our drug candidates may
not qualify for any of these programs, or, if a drug candidate does qualify, the review time may not be reduced or the product may not be approved.

After approval, certain changes to the approved product, such as adding new indications, making certain manufacturing changes or making certain additional labeling
claims, are subject to further FDA review and approval. Obtaining approval for a new indication generally requires that additional clinical studies be conducted.

U.S. Post-Approval Requirements

Holders of an approved NDA are required to: (i) conduct pharmacovigilance and report certain adverse reactions to the FDA, (ii) comply with certain requirements
concerning advertising and promotional labeling for their products, and (iii) continue to have quality control and manufacturing procedures conform to cGMP. The FDA
periodically inspects the sponsor’s records related to safety reporting and/or manufacturing and distribution facilities; this latter effort includes assessment of compliance
with cGMP. Accordingly, manufacturers must continue to expend time, money and effort in the area of production, quality control and distribution to maintain cGMP
compliance. We use and will continue to use third-party manufacturers to produce our products in clinical and commercial quantities, and future FDA inspections may
identify compliance issues at our facilities or at the facilities of our contract manufacturers that may disrupt production or distribution, or require substantial resources to
correct.

Marketing of prescription drugs is also subject to significant regulation through federal and state agencies tasked with consumer protection and prevention of medical fraud,
waste and abuse. We must comply with restrictions on off-label use promotion, anti-kickback, ongoing clinical trial registration, and limitations on gifts and payments to
physicians.

Non-U.S. Regulation

Before our products can be marketed outside of the United States, they are subject to regulatory approval similar to that required in the United States, although the
requirements governing the conduct of clinical trials, including additional clinical trials that may be required, product licensing, pricing and reimbursement vary widely from
country to country. No action can be taken to market any product in a country until an appropriate application has been approved by the regulatory authorities in that
country. The current approval process varies from country to country, and the time spent in gaining approval varies from that required for FDA approval. In certain
countries, the sales price of a product must also be approved. The pricing review period often begins after market approval is granted. Even if a product is approved by a
regulatory authority, satisfactory prices may not be approved for such product.

In Europe, marketing authorizations may be submitted at a centralized, a decentralized or national level. The centralized procedure is mandatory for the approval of
biotechnology products and provides for the grant of a single marketing authorization that is valid in all EU member states. A mutual recognition procedure is available at
the request of the applicant for all medicinal products that are not subject to the centralized procedure.

The European Commission granted marketing authorization for Tc99m tilmanocept in the EU in November 2014, and a reduced-mass vial developed for the EU market was
approved in September 2016.

While we are unable to predict the extent to which our business may be affected by future regulatory developments, we believe that our substantial experience dealing with
governmental regulatory requirements and restrictions on our operations throughout the world, and our development of new and improved products, should enable us to
compete effectively within this environment.

Regulation Specific to Radiopharmaceuticals

Our radiolabeled targeting agents and biologic products, if developed, would require a regulatory license to market from the FDA and from comparable agencies in foreign
countries. The process of obtaining regulatory licenses and approvals is costly and time consuming, and we have encountered significant impediments and delays related to
our previously proposed biologic products.

The process of completing pre-clinical and clinical testing, manufacturing validation and submission of a marketing application to the appropriate regulatory bodies usually
takes a number of years and requires the expenditure of substantial resources, and any approval may not granted on a timely basis, if at all. Additionally, the length of time it
takes for the various regulatory bodies to evaluate an application for marketing approval varies considerably, as does the amount of preclinical and clinical data required to
demonstrate the safety and efficacy of a specific product. The regulatory bodies may require additional clinical studies that may take several years to perform. The length of
the review period may vary widely depending upon the nature and indications of the proposed product and whether the regulatory body has any further questions or requests
any additional data. Also, the regulatory bodies require post-marketing reporting and surveillance programs (pharmacovigilance) to monitor the side effects of the products.
Our potential drug or biologic products may not be approved by the regulatory bodies or may not be approved on a timely or accelerated basis, or any approvals received
may subsequently be revoked or modified.

The Nuclear Regulatory Commission (“NRC”) oversees medical uses of nuclear material through licensing, inspection, and enforcement programs. The NRC issues medical
use licenses to medical facilities and authorized physician users, develops guidance and regulations for use by licensees, and maintains a committee of medical experts to
obtain advice about the use of byproduct materials in medicine. The NRC (or the responsible Agreement State) also regulates the manufacture and distribution of these
products. The FDA oversees the good practices in the manufacturing of radiopharmaceuticals, medical devices, and radiation-producing x-ray machines and accelerators.
The states regulate the practices of medicine and pharmacy and administer programs associated with radiation-producing x-ray machines and accelerators. We may not be
able to obtain all necessary licenses and permits and we may not be able to comply with all applicable laws. The failure to obtain such licenses and permits or to comply with
applicable laws would have a materially adverse effect on our business, financial condition, and results of operations.

Corporate Information

Our executive offices are located at 4995 Bradenton Avenue, Suite 240, Dublin, OH 43017. Our telephone number is (614) 793-7500. “Navidea” and the Navidea logo are
trademarks of Navidea Biopharmaceuticals, Inc. or its subsidiaries in the United States and/or other countries. Other trademarks or service marks appearing in this report
may be trademarks or service marks of other owners.

Available Information

The address for our website is www.navidea.com. We make available free of charge on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and other filings pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
amendments to such filings, as soon as reasonably practicable after each is electronically filed with, or furnished to, the Securities Exchange Commission (“SEC”). We do
not charge for access to and viewing of these reports. Information in the investor section and on our website is not part of this Annual Report on Form 10-K or any of our
other securities filings unless specifically incorporated herein by reference.

You may also review our electronically filed reports and other information that we file with the SEC on the SEC’s website at www.sec.gov. All statements made in any of
our securities filings, including all forward-looking statements or information, are made as of the date of the document in which the statement is included, and we do not
assume or undertake any obligation to update any of those statements or documents unless we are required to do so by law.

Financial Statements

Our consolidated financial statements and the related notes, including revenues, income (loss), total assets and other financial measures are set forth at pages F-1 through F-
32 of this Annual Report on Form 10-K.

Human Capital Resources

As of March 18, 2022, we had 11 full-time and 4 part-time employees. None of our employees are represented by a collective bargaining agreement, we have not
experienced any work stoppages, and we believe that our relationship with our employees is good.

We recognize that attracting, motivating and retaining talent is vital to our continued success. We aim to create an equitable, inclusive and empowering environment in
which our employees can grow and advance their careers, with the overall goal of developing, expanding and retaining our workforce to support our current pipeline and
future business goals. We value innovation, passion, data-driven decision making, persistence and honesty, and are building a diverse environment where our employees and
consultants can thrive and be inspired to make exceptional contributions.

Our current management team, board of directors, and scientific advisors have significant experience in development and marketing of pharmaceutical product candidates
from early stage discovery to clinical trials, regulatory approval and commercialization.

Our human capital resources objectives include identifying, recruiting, retaining, and incentivizing our existing and new employees. We maintain an equity incentive plan,
the principal purposes of which are to attract, retain and reward personnel through the granting of stock-based compensation awards, in order to increase stockholder value
and the success of our company by motivating such individuals to perform to the best of their abilities and achieve our objectives. To facilitate talent attraction and retention,
we strive to make our company a safe and rewarding workplace, with opportunities for our employees to grow and develop in their careers, supported by competitive
compensation, benefits and health and wellness programs, and by programs that build connections between our employees.

In addition, as a result of the COVID-19 pandemic, we have taken steps to protect the health and safety of our employees in line with directives from state and the applicable
local governments, as well as guidance from the Centers for Disease Control.

Item 1A. Risk Factors

An investment in our Common Stock, par value $0.001 per share (“Common Stock”) is highly speculative, involves a high degree of risk, and should be made only by
investors who can afford a complete loss. You should carefully consider the following risk factors, together with the other information in this Annual Report on Form 10-K,
including our financial statements and the related notes, before you decide to buy our Common Stock. If any of the following risks actually occur, our business, financial
condition, or results of operations could be materially adversely affected, the trading of our Common Stock could decline, and you may lose all or part of your investment
therein.

Summary of Risk Factors

Our business is subject to numerous risks and uncertainties, discussed in more detail in the following section. These risks include, among others, the following key risks:

Risks Related to Our Business, Financial Position and Capital Requirements

●

If Cardinal Health 414, Sayre Therapeutics or Sinotau do not achieve commercial success with Tc99m tilmanocept, we may be unable to generate significant revenue
from these relationships.

● We may have difficulty raising additional capital, which could deprive us of necessary resources to pursue our business plans.

●

There may be future sales or other dilution of our equity, which may adversely affect the market price of shares of our Common Stock.

The Company has experienced recurring net losses and has used significant cash to fund its operations, and we expect to continue to incur substantial operating
losses and may be unable to obtain additional financing, and we may not be able to continue as a going concern.

Risks Related to Clinical Development, Regulatory Approval and Commercialization

●

If we do not successfully develop any additional product candidates into marketable products, we may be unable to generate significant revenue or become
profitable.

● We may never obtain regulatory approval to manufacture or market our unapproved drug candidates and our approval to market our products or anticipated

commercial launch may be delayed as a result of the regulatory review process.

●

Even if our drug candidates are successful in clinical trials, we may not be able to successfully commercialize them.

● We may be unable to establish or contract for the pharmaceutical manufacturing capabilities necessary to develop and commercialize our potential products.

Risks Related to Our Intellectual Property

●

If any of our license agreements for intellectual property underlying our Manocept platform or any other products or potential products are terminated, we may lose
the right to develop or market that product.

● We may not have sufficient legal protection against infringement or loss of our intellectual property, and we may lose rights or protection related to our intellectual

property if diligence requirements are not met, or at the expiry of underlying patents.

● We and our collaborators may not be able to protect our intellectual property rights throughout the world.

● We may become involved in disputes with licensors or potential future collaborators over intellectual property ownership, and publications by our research

collaborators and scientific advisors could impair our ability to obtain patent protection or protect our proprietary information, which, in either case, could have a
significant effect on our business.

Risks Related to Our Business, Financial Position and Capital Requirements

We may have difficulty raising additional capital, which could deprive us of necessary resources to pursue our business plans.

We expect to devote significant capital resources to fund R&D and to maintain existing and secure new manufacturing resources. In order to support the initiatives
envisioned in our business plan, we will likely need to raise additional funds through the sale of assets, public or private secured or unsecured debt or equity financing,
collaborative relationships or other arrangements. Our ability to raise additional financing depends on many factors beyond our control, including the state of capital
markets, the market price of our Common Stock and the development or prospects for development of competitive technology by others. Sufficient additional financing may
not be available to us or may be available only on terms that would result in further dilution to the current owners of our Common Stock.

Our future expenditures on our programs are subject to many uncertainties, including whether our product candidates will be developed or commercialized with a partner or
independently. Our future capital requirements will depend on, and could increase significantly as a result of, many factors, including:

●

the final outcome of the Capital Royalty Partners II, L.P. (“CRG”) litigation and other litigation, including the outcome of any litigation involving Dr. Michael
Goldberg;

the costs of seeking regulatory approval for our product candidates, including any nonclinical testing or bioequivalence or clinical studies, process development,
scale-up and other manufacturing and stability activities, or other work required to achieve such approval, as well as the timing of such activities and approval;

the extent to which we invest in new technologies, product candidates, products or businesses;

the scope, prioritization and number of development and/or commercialization programs we pursue and the rate of progress and costs with respect to such programs;

the costs related to developing, acquiring and/or contracting for sales, marketing and distribution capabilities and regulatory compliance capabilities, if we
commercialize any of our product candidates for which we obtain regulatory approval without a partner;

the timing and terms of any collaborative, licensing and other strategic arrangements that we may establish;

the extent to which we may need to expand our workforce to pursue our business plan, and the costs involved in recruiting, training, compensating and
incentivizing new employees;

the effect of competing technological and market developments; and

the cost involved in establishing, enforcing or defending patent claims and other intellectual property rights.

Our ability to raise additional capital may also be adversely impacted by potential worsening global economic conditions and the recent disruptions to, and volatility in,
financial markets in the United States and worldwide resulting from the ongoing COVID-19 pandemic and Ukraine conflict. In addition, on February 14, 2022, we filed a
registration statement with the Securities and Exchange Commission to register the sale of up to $35 million of Company Common Stock pursuant to a rights offering to the
Company’s stockholders, the terms and timing of which have not yet been determined by the Company. Further, there is no assurance that such rights offering will occur on
any terms. If we are unsuccessful in raising additional capital, or the terms of raising such capital are unacceptable, we may have to modify our business plan and/or
significantly curtail our planned development activities, acquisition of new product candidates and other operations.

There may be future sales or other dilution of our equity, which may adversely affect the market price of shares of our Common Stock.

Our existing warrants or other securities convertible into or exchangeable for our Common Stock, or securities we may issue in the future, may contain adjustment
provisions that could increase the number of shares issuable upon exercise, conversion or exchange, as the case may be, and decrease the exercise, conversion or exchange
price. The market price of our shares of Common Stock could decline as a result of sales of a large number of shares of our Common Stock or other securities in the market,
the triggering of any such adjustment provisions or the perception that such sales could occur in the future.

Shares of Common Stock are equity securities and are subordinate to our existing and future indebtedness and preferred stock.

Shares of our Common Stock are common equity interests. This means that our Common Stock ranks junior to our Series D Preferred Stock and Series E Preferred Stock, to
our indebtedness and to all creditor claims and other non-equity claims against us and our assets available to satisfy claims on us, including claims in a bankruptcy or similar
proceeding. Our future indebtedness and preferred stock may restrict payments of dividends on our Common Stock.

Additionally, unlike indebtedness, where principal and interest customarily are payable on specified due dates, in the case of our Common Stock, (i) dividends are payable
only when and if declared by our Board of Directors or a duly authorized committee of our Board of Directors, and (ii) as a corporation, we are restricted to making dividend
payments and redemption payments out of legally available assets. We have never paid a dividend on our Common Stock and have no current intention to pay dividends in
the future. Furthermore, our Common Stock places no restrictions on our business or operations or on our ability to incur indebtedness or engage in any transactions, subject
only to the voting rights available to shareholders generally.

The Company has experienced recurring net losses and has used significant cash to fund its operations, and we expect to continue to incur substantial operating losses and
may be unable to obtain additional financing, and we may not be able to continue as a going concern.

Our ability to continue as a going concern is dependent on a combination of several factors, including, our ability to raise capital by issuing debt or equity securities to
investors, license or sell our product candidates to other pharmaceutical companies, and generate revenues from successfully developed products. If we are not able to
continue our business as a going concern, we may be forced to liquidate our assets for an amount less than the value at which those assets are carried on our financial
statements, and it is likely that investors will lose part or all of their investment.

The Company is currently engaged in litigation with Dr. Goldberg and CRG. In addition, the Company has experienced recurring net losses and has used significant cash to
fund its operations. The Company has considerable discretion over the extent of development project expenditures and has the ability to curtail the related cash flows as
needed. The Company also has funds remaining under outstanding grant awards, and continues working to establish new sources of funding, including collaborations,
potential equity investments, and additional grant funding that can augment the balance sheet. However, the extent to which COVID-19 impacts our business will depend on
future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the
actions to contain or treat its impact, among others. A significant outbreak of COVID-19 or other infectious diseases could result in a widespread health crisis that could
adversely affect the economies and financial markets worldwide, resulting in an economic downturn that could impact our business, financial condition and results of
operations, including our ability to obtain additional funding, if needed. Based on our current working capital and our projected cash burn, management believes that there
is substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the filing of this Annual Report on Form 10-K. No adjustments
have been made to the accompanying consolidated financial statements of the Company as a result of this uncertainty.

If Cardinal Health 414, Sayre Therapeutics or Sinotau do not achieve commercial success with Tc99m tilmanocept, we may be unable to generate significant revenue from
these relationships.

In March 2017, Navidea completed the sale to Cardinal Health 414 of all of its assets used in operating its business of developing, manufacturing and commercializing the
Company’s radioactive diagnostic agent marketed under the Lymphoseek trademark in Canada, Mexico and the United States. Upon closing of the sale, the Supply and
Distribution Agreement between Cardinal Health 414 and the Company was terminated and Cardinal Health 414 assumed responsibility for marketing Lymphoseek in those
territories. Under the terms of the sale, Navidea is entitled to receive milestone payments (which, if paid, will be treated as additional purchase price) from Cardinal Health
414 based on net sales derived from Lymphoseek, subject, in each case, to Cardinal Health 414’s right to off-set.

Under the terms of our August 2014 agreement with Sinotau, as amended, Navidea is entitled to receive royalties and milestone payments based on Sinotau’s sales of Tc99m
tilmanocept. Upon approval by the CFDA, Sinotau will be responsible for all Tc99m tilmanocept sales, marketing, market access and medical affairs activities in China,
excluding Hong Kong, Macau and Taiwan. Tc99m tilmanocept has not yet received marketing approval in China, which may be delayed due to the coronavirus outbreak in
China.

Under the terms of our June 2017 agreement with Sayre, Navidea is eligible to receive milestone payments and royalties associated with the sale of Tc99m tilmanocept in
India. Tc99m tilmanocept has not yet received marketing approval in India.

Cardinal Health 414, Sayre or Sinotau may never achieve commercial success in North America, India, China, or any other global market, they may never realize sales at
levels necessary for us to achieve sales-based earnout, royalty or milestone payments.

Risks Related to Clinical Development, Regulatory Approval and Commercialization

If we do not successfully develop any additional product candidates into marketable products, we may be unable to generate significant revenue or become profitable.

Additional diagnostic and therapeutic applications of the Manocept platform, including diagnosis of RA and CV disease and solid tumor cancers, among others, are in
various stages of pre-clinical and clinical development. Regulatory approval of additional Manocept-based product candidates may not be successful, or if successful, may
not result in significant sales. Additional clinical testing for products based on our Manocept platform or other product candidates may not be successful and, even if they
are, we may not be successful in developing any of them into a commercial product which will provide sufficient revenue to make us profitable.

Many companies in the pharmaceutical industry suffer significant setbacks in advanced clinical trials even after reporting promising results in earlier trials. Even if our
Manocept trials are viewed as successful, we may not get regulatory approval for marketing of any Manocept product candidate. Our Manocept product candidates will be
successful only if:

●

they are developed to a stage that will enable us to commercialize them or sell related marketing rights;

● we are able to commercialize them in clinical development or sell the marketing rights to third parties; and

●

upon being developed, they are approved by the regulatory authorities.

We are dependent on the achievement of a number of these goals in order to generate future revenues. The failure to generate revenues from our Manocept-based product
candidates may preclude us from continuing our R&D of these and other product candidates.

We may never obtain regulatory approval to manufacture or market our unapproved drug candidates and our approval to market our products or anticipated commercial
launch may be delayed as a result of the regulatory review process.

Obtaining regulatory approval to market drugs to diagnose or treat diseases is expensive, difficult and risky. Preclinical and clinical data, as well as information related to the
chemistry, manufacturing and control (“CMC”) processes of drug production, can be interpreted in different ways that could delay, limit or preclude regulatory approval.
Negative or inconclusive results, adverse medical events during a clinical trial, or issues related to CMC processes could also delay, limit or prevent regulatory approval.
Even if we receive regulatory clearance to market a particular product candidate, the approval could be conditioned on us conducting additional costly post-approval studies
or could limit the indicated uses included in our labeling.

Clinical trials for our product candidates will be lengthy and expensive, and their outcome is uncertain.

Before obtaining regulatory approval for the commercial sale of any product candidates, we must demonstrate through preclinical testing and clinical trials that our product
candidates are safe and effective for use in humans. Conducting clinical trials is a time consuming, expensive and uncertain process and may take years to complete.

We expect to sponsor efforts to explore the Manocept platform, whether in potential diagnostic or therapeutic uses. We continually assess our clinical trial plans and may,
from time to time, initiate additional clinical trials to support our overall strategic development objectives. Historically, the results from preclinical testing and early clinical
trials often do not predict the results obtained in later clinical trials. Frequently, drugs that have shown promising results in preclinical or early clinical trials subsequently fail
to establish sufficient safety and efficacy data necessary to obtain regulatory approval. At any time during the clinical trials, we, the participating institutions, the FDA, the
European Medicines Agency (“EMA”) or other regulatory authorities might delay or halt any clinical trials for our product candidates for various reasons, including:

●

ineffectiveness of the product candidate;

discovery of unacceptable toxicities or side effects;

development of disease resistance or other physiological factors;

changes in local regulations as part of a response to the COVID-19 coronavirus or other infectious disease outbreak, which may require us to change the ways in
which our clinical trials are conducted, and which may result in unexpected costs, or to discontinue the clinical trials altogether;

delays or difficulties in enrolling patients in our clinical trials, including as a result of impacts associated with the COVID-19 pandemic; or

other reasons that are internal to the businesses of our potential collaborative partners, which reasons they may not share with us.

While we have achieved some level of success in our clinical trials for Tc99m tilmanocept as indicated by the FDA and EMA approvals, the results of current and future
trials for other product candidates that we may develop or acquire, are subject to review and interpretation by various regulatory bodies during the regulatory review process
and may ultimately fail to demonstrate the safety or effectiveness of our product candidates to the extent necessary to obtain regulatory approval, or that commercialization
of our product candidates is worthwhile. Any failure or substantial delay in successfully completing clinical trials and obtaining regulatory approval for our product
candidates could materially harm our business.

We extensively outsource our clinical trial activities and usually perform only a small portion of the start-up activities in-house. We rely on independent third-party contract
research organizations (“CROs”) to perform most of our clinical studies, including document preparation, site identification, screening and preparation, pre-study visits,
training, post-study audits and statistical analysis. Many important aspects of the services performed for us by the CROs are out of our direct control. If there is any dispute
or disruption in our relationship with our CROs, our clinical trials may be delayed. Moreover, in our regulatory submissions, we rely on the quality and validity of the
clinical work performed by third-party CROs. If any of our CROs’ processes, methodologies or results were determined to be invalid or inadequate, our own clinical data
and results and related regulatory approvals could be adversely impacted.

Even if our drug candidates are successful in clinical trials, we may not be able to successfully commercialize them.

We have dedicated and will continue to dedicate substantially all of our resources to the R&D of our Manocept technology and related compounds. There are many
difficulties and uncertainties inherent in pharmaceutical R&D and the introduction of new products. A high rate of failure is inherent in new drug discovery and
development. The process to bring a drug from the discovery phase to regulatory approval can take 12 to 15 years or longer and cost more than $1 billion. Failure can occur
at any point in the process, including late in the process after substantial investment. As a result, most research programs will not generate financial returns. New product
candidates that appear promising in development may fail to reach the market or may have only limited commercial success. Delays and uncertainties in the regulatory
approval processes in the United States and in other countries can result in delays in product launches and lost market opportunities. Consequently, it is very difficult to
predict which products will ultimately be approved. Due to the risks and uncertainties involved in the R&D process, we cannot reliably estimate the nature, timing,
completion dates, and costs of the efforts necessary to complete the development of our R&D projects, nor can we reliably estimate the future potential revenue that will be
generated from a successful R&D project.

Prior to commercialization, each product candidate requires significant research, development and preclinical testing and extensive clinical investigation before submission
of any regulatory application for marketing approval. The development of radiopharmaceutical technologies and compounds, including those we are currently developing, is
unpredictable and subject to numerous risks. Potential products that appear to be promising at early stages of development may not reach the market for a number of reasons
including that they may:

●

be found ineffective or cause harmful side effects during preclinical testing or clinical trials;

fail to receive necessary regulatory approvals;

be difficult to manufacture on a scale necessary for commercialization;

be uneconomical to produce;

fail to achieve market acceptance; or

be precluded from commercialization by proprietary rights of third parties.

The occurrence of any of these events could adversely affect the commercialization of our product candidates. Products, if introduced, may not be successfully marketed
and/or may not achieve customer acceptance. If we fail to commercialize products or if our future products do not achieve significant market acceptance, we will not likely
generate significant revenues or become profitable.

If we fail to establish and maintain collaborations or if our partners do not perform, we may be unable to develop and commercialize our product candidates.

We have entered into collaborative arrangements with third parties to develop and/or commercialize product candidates and are currently seeking additional collaborations.
Such collaborations might be necessary in order for us to fund our R&D activities and third-party manufacturing arrangements, seek and obtain regulatory approvals and
successfully commercialize our existing and future product candidates. If we fail to enter into collaborative arrangements or fail to maintain our existing collaborative
arrangements, the number of product candidates from which we could receive future revenues would decline.

Our dependence on collaborative arrangements with third parties will subject us to a number of risks that could harm our ability to develop and commercialize products
including that:

●

collaborative arrangements may not be on terms favorable to us;

disagreements with partners or regulatory compliance issues may result in delays in the development and marketing of products, termination of our collaboration
agreements or time consuming and expensive legal action;

● we cannot control the amount and timing of resources partners devote to product candidates or their prioritization of product candidates and partners may not

allocate sufficient funds or resources to the development, promotion or marketing of our products, or may not perform their obligations as expected;

●

partners may choose to develop, independently or with other companies, alternative products or treatments, including products or treatments which compete with
ours;

agreements with partners may expire or be terminated without renewal, or partners may breach collaboration agreements with us;

business combinations or significant changes in a partner’s business strategy might adversely affect that partner's willingness or ability to complete its obligations to
us; and

●

the terms and conditions of the relevant agreements may no longer be suitable.

The occurrence of any of these events could adversely affect the development or commercialization of our products.

Our pharmaceutical products will remain subject to ongoing regulatory review following the receipt of marketing approval. If we fail to comply with continuing regulations,
we could lose these approvals and the sale of our products could be suspended.

Approved products may later cause adverse effects that limit or prevent their widespread use, force us to withdraw it from the market or impede or delay our ability to obtain
regulatory approvals in additional countries. In addition, any contract manufacturer we use in the process of producing a product and its facilities will continue to be subject
to FDA review and periodic inspections to ensure adherence to applicable regulations. After receiving marketing clearance, the manufacturing, labeling, packaging, adverse
event reporting, storage, advertising, promotion and record-keeping related to the product will remain subject to extensive regulatory requirements. We may be slow to
adapt, or we may never adapt, to changes in existing regulatory requirements or adoption of new regulatory requirements.

If we fail to comply with the regulatory requirements of the FDA and other applicable U.S. and foreign regulatory authorities or previously unknown problems with our
products, manufacturers or manufacturing processes are discovered, we could be subject to administrative or judicially imposed sanctions, including:

●

restrictions on the products, manufacturers or manufacturing processes;

● warning letters;

●

civil or criminal penalties;

fines;

injunctions;

product seizures or detentions;

import bans;

voluntary or mandatory product recalls and publicity requirements;

suspension or withdrawal of regulatory approvals;

total or partial suspension of production; and

refusal to approve pending applications for marketing approval of new drugs or supplements to approved applications.

If users of our products are unable to obtain adequate reimbursement from third-party payors, or if new restrictive legislation is adopted, market acceptance of our products
may be limited and we may not achieve anticipated revenues.

Our ability to commercialize our products will depend in part on the extent to which appropriate reimbursement levels for the cost of our products and related treatment are
obtained by governmental authorities, private health insurers and other organizations such as health maintenance organizations (“HMOs”). Generally, in Europe and other
countries outside the United States, the government-sponsored healthcare system is the primary payor of patients’ healthcare costs. Third-party payors are increasingly
challenging the prices charged for medical care. Also, the trend toward managed health care in the United States and the concurrent growth of organizations such as HMOs
which could control or significantly influence the purchase of health care services and products, as well as legislative proposals to further reform health care or reduce
government insurance programs, may all result in lower prices for our products if approved for commercialization. The cost containment measures that health care payors
and providers are instituting and the effect of any health care reform could materially harm our ability to sell our products at a profit.

We may be unable to establish or contract for the pharmaceutical manufacturing capabilities necessary to develop and commercialize our potential products.

We are in the process of establishing third-party manufacturing capabilities for our compounds under development. We intend to rely on third-party contract manufacturers
to produce sufficiently large quantities of drug materials that are and will be needed for clinical trials and commercialization of our potential products. Third-party
manufacturers may not be able to meet our needs with respect to timing, quantity or quality of materials. If we are unable to contract for a sufficient supply of needed
materials on acceptable terms, or if we should encounter delays or difficulties in our relationships with manufacturers, clinical trials for our product candidates may be
delayed, thereby delaying the submission of product candidates for regulatory approval and the market introduction and subsequent commercialization of our potential
products, and for approved products, any such delays, interruptions or other difficulties may render us unable to supply sufficient quantities to meet demand. Any such
delays or interruptions may lower our revenues and potential profitability.

We and any third-party manufacturers that we may use must continually adhere to cGMPs and regulations enforced by the FDA through its facilities inspection program
and/or foreign regulatory authorities where our products will be tested and/or marketed. If our facilities or the facilities of third-party manufacturers cannot pass a pre-
approval plant inspection, the FDA and/or foreign regulatory authorities will not grant approval to market our product candidates. In complying with these regulations and
foreign regulatory requirements, we and any of our third-party manufacturers will be obligated to expend time, money and effort on production, record-keeping and quality
control to assure that our potential products meet applicable specifications and other requirements. The FDA and other regulatory authorities may take action against a
contract manufacturer who violates cGMPs.

Our product supply and related patient access could be negatively impacted by, among other things: (i) product seizures or recalls or forced closings of manufacturing
plants; (ii) disruption in supply chain continuity including from natural or man-made disasters at a critical supplier, as well as our failure or the failure of any of our suppliers
to comply with cGMPs and other applicable regulations or quality assurance guidelines that could lead to manufacturing shutdowns, product shortages or delays in product
manufacturing; (iii) manufacturing, quality assurance/quality control, supply problems or governmental approval delays; (iv) the failure of a sole source or single source
supplier to provide us with the necessary raw materials, supplies or finished goods within a reasonable timeframe; (v) the failure of a third-party manufacturer to supply us
with bulk active or finished product on time; and (vi) other manufacturing or distribution issues, including limits to manufacturing capacity due to regulatory requirements,
and changes in the types of products produced, physical limitations or other business interruptions.

We may not be successful in securing and/or maintaining the necessary manufacturing, supply and/or radiolabeling capabilities for our product candidates in clinical
development.

We may not be able to secure and/or maintain agreements or other purchasing arrangements with our subcontractors on terms acceptable to us, or that our subcontractors will
be able to meet our production requirements on a timely basis, at the required levels of performance and quality, including compliance with FDA cGMP requirements. In the
event that any of our subcontractors are unable or unwilling to meet our production requirements, we may not be able to establish an alternate source of supply without
significant interruption in product supply or without significant adverse impact to product availability or cost. Any significant supply interruption or yield problems that we
or our subcontractors experience would have a material adverse effect on our ability to manufacture our products and, therefore, a material adverse effect on our business,
financial condition, and results of operations until a new source of supply is qualified. Any interruption in manufacturing across the supply chain, whether by natural
disasters, global disease outbreaks such as COVID-19 or otherwise, could significantly and adversely affect our operations, and delay our R&D programs.

Risks Related to Our Intellectual Property

We have licensed intellectual property, including patents and patent applications relating to the underlying intellectual property for our Manocept platform, upon which all of
our current product candidates are based. We may also enter into other license agreements or acquire other product candidates. The potential success of our product
development programs depend on our ability to maintain rights under these licenses, including our ability to achieve development or commercialization milestones contained
in the licenses. Under certain circumstances, the licensors have the power to terminate their agreements with us if we fail to meet our obligations under these licenses. We
may not be able to meet our obligations under these licenses. If we default under any license agreement, we may lose our right to market and sell any products based on the
licensed technology.

We may not have sufficient legal protection against infringement or loss of our intellectual property, and we may lose rights or protection related to our intellectual
property if diligence requirements are not met, or at the expiry of underlying patents.

Our success depends, in part, on our ability to secure and maintain patent protection for our products and product candidates, to preserve our trade secrets, and to operate
without infringing on the proprietary rights of third parties. While we seek to protect our proprietary positions by filing U.S. and foreign patent applications for our important
inventions and improvements, domestic and foreign patent offices may not issue these patents. Third parties may challenge, invalidate, or circumvent our patents or patent
applications in the future. Competitors, many of which have significantly more resources than we have and have made substantial investments in competing technologies,
may apply for and obtain patents that will prevent, limit, or interfere with our ability to make, use, or sell our products either in the United States or abroad.

Numerous U.S. and foreign issued patents and pending patent applications, which are owned by third parties, exist in the fields in which we are or may be developing
products. As the biotechnology and pharmaceutical industry expands and more patents are issued, the risk increases that we will be subject to claims that our products or
product candidates, or their use, infringe the rights of others. In the United States, most patent applications are secret for a period of 18 months after filing, and in foreign
countries, patent applications are secret for varying periods of time after filing. Publications of discoveries tend to significantly lag the actual discoveries and the filing of
related patent applications. Third parties may have already filed applications for patents for products or processes that will make our products obsolete, limit our patents,
invalidate our patent applications or create a risk of infringement claims.

Under U.S. patent law, we are currently subject to a “first to file” system of patent approval, as opposed to the former “first to invent” system. As a consequence, delays in
filing patent applications for new product candidates or discoveries could result in the loss of patentability if there is an intervening patent application with similar claims
filed by a third party, even if we or our collaborators were the first to invent.

We or our suppliers may be exposed to, or threatened with, future litigation by third parties having patent or other intellectual property rights alleging that our products,
product candidates and/or technologies infringe their intellectual property rights or that the process of manufacturing our products or any of their respective component
materials, or the component materials themselves, or the use of our products, product candidates or technologies, infringe their intellectual property rights. If one of these
patents was found to cover our products, product candidates, technologies or their uses, or any of the underlying manufacturing processes or components, we could be
required to pay damages and could be unable to commercialize our products or use our technologies or methods unless we are able to obtain a license to the patent or
intellectual property right. A license may not be available to us in a timely manner or on acceptable terms, if at all. In addition, during litigation, a patent holder could obtain
a preliminary injunction or other equitable remedy that could prohibit us from making, using or selling our products, technologies or methods.

Our currently held and licensed patents expire over the next three to fifteen years. Expiration of the patents underlying our technology, in the absence of extensions or other
trade secret or intellectual property protection, may have a material and adverse effect on us.

In addition, it may be necessary for us to enforce patents under which we have rights, or to determine the scope, validity and unenforceability of other parties’ proprietary
rights, which may affect our rights. There can be no assurance that our patents would be held valid by a court or administrative body or that an alleged infringer would be
found to be infringing. The uncertainty resulting from the mere institution and continuation of any patent related litigation or interference proceeding could have a material
and adverse effect on us.

We typically require our employees, consultants, advisers and suppliers to execute confidentiality and assignment of invention agreements in connection with their
employment, consulting, advisory, or supply relationships with us. They may breach these agreements and we may not obtain an adequate remedy for breach. Further, third
parties may gain unauthorized access to our trade secrets or independently develop or acquire the same or equivalent information.

We and our collaborators may not be able to protect our intellectual property rights throughout the world.

Filing, prosecuting and defending patents on all of our product candidates and products, when and if we have any, in every jurisdiction would be prohibitively expensive.
Competitors may use our technologies in jurisdictions where we or our licensors have not obtained patent protection to develop their own products. These products may
compete with our products, when and if we have any, and may not be covered by any of our or our licensors' patent claims or other intellectual property rights.

The laws of some foreign countries do not protect intellectual property rights to the same extent as the laws of the United States, and many companies have encountered
significant problems in protecting and defending such rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not
favor the enforcement of patents and other intellectual property protection, particularly those relating to biotechnology and/or pharmaceuticals, which could make it difficult
for us to stop the infringement of our patents. Proceedings to enforce our patent rights in foreign jurisdictions could result in substantial cost and divert our efforts and
attention from other aspects of our business.

The intellectual property protection for our product candidates depends on third parties.

With respect to Manocept and NAV4694, we have licensed certain issued patents and pending patent applications covering the respective technologies underlying these
product candidates and their commercialization and use and we have licensed certain issued patents and pending patent applications directed to product compositions and
chemical modifications used in product candidates for commercialization, and the use and the manufacturing thereof.

The patents and pending patent applications underlying our licenses do not cover all potential product candidates, modifications and uses. In the case of patents and patent
applications licensed from UCSD, we did not have any control over the filing of the patents and patent applications before the effective date of the Manocept licenses, and
had limited control over the filing and prosecution of these patents and patent applications after the effective date of such licenses. In the case of patents and patent
applications licensed from AstraZeneca, we have limited control over the filing, prosecution or enforcement of these patents or patent applications. We cannot be certain that
such prosecution efforts have been or will be conducted in compliance with applicable laws and regulations or will result in valid and enforceable patents. We also cannot be
assured that our licensors or their respective licensing partners will agree to enforce any such patent rights at our request or devote sufficient efforts to attain a desirable
result. Any failure by our licensors or any of their respective licensing partners to properly protect the intellectual property rights relating to our product candidates could
have a material adverse effect on our financial condition and results of operation.

We may become involved in disputes with licensors or potential future collaborators over intellectual property ownership, and publications by our research collaborators
and scientific advisors could impair our ability to obtain patent protection or protect our proprietary information, which, in either case, could have a significant effect on
our business.

Inventions discovered under research, material transfer or other such collaborative agreements may become jointly owned by us and the other party to such agreements in
some cases and the exclusive property of either party in other cases. Under some circumstances, it may be difficult to determine who owns a particular invention, or whether
it is jointly owned, and disputes could arise regarding ownership of those inventions. These disputes could be costly and time consuming and an unfavorable outcome could
have a significant adverse effect on our business if we were not able to protect our license rights to these inventions. In addition, our research collaborators and scientific
advisors generally have contractual rights to publish our data and other proprietary information, subject to our prior review. Publications by our research collaborators and
scientific advisors containing such information, either with our permission or in contravention of the terms of their agreements with us, may impair our ability to obtain
patent protection or protect our proprietary information, which could significantly harm our business.

General Risks

A pandemic, epidemic or outbreak of an infectious disease may adversely affect our business.

If a pandemic, epidemic or outbreak of an infectious disease occurs in the United States or worldwide, our development and commercialization efforts may be adversely
affected. In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China. In January 2020, the World Health Organization declared this
outbreak a “Public Health Emergency of International Concern,” and the U.S. Department of Health and Human Services declared a public health emergency to aid the U.S.
healthcare community in responding to COVID-19. The spread of COVID-19 has impacted the global economy and our operations, including the interruption of our clinical
trial activities in Europe and regulatory approval process in India. For example, the COVID-19 outbreak delayed enrollment in our NAV3-32 clinical study in the United
Kingdom due to national COVID-19-related shutdowns in early 2021. Our clinical trial activities may be further delayed due to prioritization of hospital resources toward the
outbreak, and some patients may be unwilling to enroll in our trials or be unable to comply with clinical trial protocols if quarantines impede patient movement or interrupt
healthcare services, which would delay our ability to conduct clinical trials or release clinical trial results, and could delay our ability to obtain regulatory approval and
commercialize our product candidates. The spread of an infectious disease, including COVID-19, may also result in the inability of our suppliers to deliver clinical drug
supplies on a timely basis or at all. In addition, hospitals may reduce staffing and reduce or postpone certain treatments in response to the spread of an infectious
disease. Such events may result in a period of business disruption, and in reduced operations, or doctors and medical providers may be unwilling to participate in our clinical
trials, any of which could materially affect our business, financial condition and results of operations. The extent to which the global COVID-19 pandemic impacts our
business will depend on future developments, which are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of
COVID-19 and the actions to contain or treat its impact, among others. Any significant infectious disease outbreak, including the COVID-19 pandemic, could result in a
widespread health crisis that could adversely affect the economies and financial markets worldwide, resulting in an economic downturn that could impact our business,
financial condition and results of operations, including our ability to obtain additional funding, if needed. The Company has enhanced its business continuity plans to include
measures to protect our employees in the event of infection in our corporate offices, or in response to potential mandatory quarantines.

We may lose out to larger or better-established competitors.

The biotech and pharmaceutical industries are intensely competitive. Many of our competitors have significantly greater financial, technical, manufacturing, marketing and
distribution resources as well as greater experience in the industry than we have. The particular medical conditions our product lines address can also be addressed by other
medical procedures or drugs. Many of these alternatives are widely accepted by physicians and have a long history of use.

To remain competitive, we must continue to launch new products and technologies. To accomplish this, we commit substantial efforts, funds, and other resources to R&D. A
high rate of failure is inherent in the R&D of new products and technologies. We must make ongoing substantial expenditures without any assurance that our efforts will be
commercially successful. Failure can occur at any point in the process, including after significant funds have been invested. Promising new product candidates may fail to
reach the market or may only have limited commercial success because of efficacy or safety concerns, failure to achieve positive clinical outcomes, inability to obtain
necessary regulatory approvals, limited scope of approved uses, excessive costs to manufacture, the failure to establish or maintain intellectual property rights, or
infringement of the intellectual property rights of others. Even if we successfully develop new products or enhancements or new generations of our existing products, they
may be quickly rendered obsolete by changing customer preferences, changing industry standards, or competitors' innovations. Innovations may not be accepted quickly in
the marketplace because of, among other things, entrenched patterns of clinical practice or uncertainty over third-party reimbursement. We cannot state with certainty when
or whether any of our products under development will be launched, whether we will be able to develop, license, or otherwise acquire compounds or products, or whether
any products will be commercially successful. Failure to launch successful new products or new indications for existing products may cause our products to become
obsolete, causing our revenues and operating results to suffer.

Physicians may use our competitors’ products and/or our products may not be competitive with other technologies. Tc99m tilmanocept is expected to continue to compete
against sulfur colloid in the United States and other colloidal agents in the EU and other global markets. If our competitors are successful in establishing and maintaining
market share for their products, our future earnout and royalty receipts may not occur at the rate we anticipate. In addition, our potential competitors may establish
cooperative relationships with larger companies to gain access to greater R&D or marketing resources. Competition may result in price reductions, reduced gross margins
and loss of market share.

We may be exposed to business risk, including product liability claims for any product candidates and products that we are able to commercialize.

The testing, manufacturing, marketing and use of any commercial products that we develop, as well as product candidates in development, involve substantial risk of
product liability claims. These claims may be made directly by consumers, healthcare providers, pharmaceutical companies or others. In recent years, coverage and
availability of cost-effective product liability insurance has decreased, so we may be unable to maintain sufficient coverage for product liabilities that may arise. In addition,
the cost to defend lawsuits or pay damages for product liability claims may exceed our coverage. If we are unable to maintain adequate coverage or if claims exceed our
coverage, our financial condition and our ability to clinically test our product candidates and market our products will be adversely impacted. In addition, negative publicity
associated with any claims, regardless of their merit, may decrease the future demand for our products and impair our financial condition.

The administration of drugs in humans, whether in clinical studies or commercially, carries the inherent risk of product liability claims whether or not the drugs are actually
the cause of an injury. Our products or product candidates may cause, or may appear to have caused, injury or dangerous drug interactions, and we may not learn about or
understand those effects until the product or product candidate has been administered to patients for a prolonged period of time. We may be subject from time to time to
lawsuits based on product liability and related claims, and we cannot predict the eventual outcome of any future litigation. We may not be successful in defending ourselves
in the litigation and, as a result, our business could be materially harmed. These lawsuits may result in large judgments or settlements against us, any of which could have a
negative effect on our financial condition and business if in excess of our insurance coverage. Additionally, lawsuits can be expensive to defend, whether or not they have
merit, and the defense of these actions may divert the attention of our management and other resources that would otherwise be engaged in managing our business.

As a result of a number of factors, product liability insurance has become less available while the cost has increased significantly. We currently carry product liability
insurance that our management believes is appropriate given the risks that we face. We will continually assess the cost and availability of insurance; however, there can be
no guarantee that insurance coverage will be obtained or, if obtained, will be sufficient to fully cover product liabilities that may arise. If we are held liable for a claim
against which we are not insured or for damages exceeding the limits of our insurance coverage, whether arising out of product liability matters, cybersecurity matters, or
from some other matter, that claim could have a material adverse effect on our results of operations.

Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we collect and store sensitive data, including intellectual property, our proprietary business information and that of our suppliers and
business partners, and personally identifiable information of employees and clinical trial subjects, in our data centers and on our networks. The secure maintenance and
transmission of this information is critical to our operations and business strategy. Despite our security measures, our information technology and infrastructure may be
vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information
stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability
under laws that protect the privacy of personal information, and regulatory penalties, disrupt our operations, and damage our reputation, which could adversely affect our
business, revenues and competitive position.

Failure to comply with domestic and international privacy and security laws can result in the imposition of significant civil and criminal penalties. The costs of compliance
with these laws, including protecting electronically stored information from cyber-attacks, and potential liability associated with failure to do so could adversely affect our
business, financial condition and results of operations. We are subject to various domestic and international privacy and security regulations, including but not limited to The
Health Insurance Portability and Accountability Act of 1996 (“HIPAA”). HIPAA mandates, among other things, the adoption of uniform standards for the electronic
exchange of information in common healthcare transactions, as well as standards relating to the privacy and security of individually identifiable health information, which
require the adoption of administrative, physical and technical safeguards to protect such information. In addition, many states have enacted comparable laws addressing the
privacy and security of health information, some of which are more stringent than HIPAA.

A security breach or privacy violation that leads to disclosure of consumer information (including personally identifiable information or protected health information) could
harm our reputation, compel us to comply with disparate state and foreign breach notification laws and otherwise subject us to liability under laws that protect personal data,
resulting in increased costs or loss of revenue.

Despite our efforts to protect against cyber-attacks and security breaches, hackers and other cyber criminals are using increasingly sophisticated and constantly evolving
techniques, and we may need to expend substantial additional resources to continue to protect against potential security breaches or to address problems caused by such
attacks or any breach of our safeguards. In addition, a data security breach could distract management or other key personnel from performing their primary operational
duties.

The interpretation and application of consumer and data protection laws in the United States, Europe and elsewhere are often uncertain, contradictory and in flux. Among
other things, foreign privacy laws impose significant obligations on U.S. companies to protect the personal information of foreign citizens. It is possible that these laws may
be interpreted and applied in a manner that is inconsistent with our data practices, which could have a material adverse effect on our business. Complying with these various
laws could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business.

We carry cyber risk insurance, which may limit our exposure to liability resulting from a security breach or other disruption in our information systems; however, we cannot
assure you that such insurance policy will cover all liabilities that may result from security breaches or other disruption in our information systems.

We are subject to domestic and foreign anticorruption laws, the violation of which could expose us to liability, and cause our business and reputation to suffer.

We are subject to the U.S. Foreign Corrupt Practices Act and similar anti-corruption laws in other jurisdictions. These laws generally prohibit companies and their
intermediaries from engaging in bribery or making other prohibited payments to government officials for the purpose of obtaining or retaining business, and some have
record keeping requirements. The failure to comply with these laws could result in substantial criminal and/or monetary penalties. We operate in jurisdictions that have
experienced corruption, bribery, pay-offs and other similar practices from time-to-time and, in certain circumstances, such practices may be local custom. We have
implemented internal control policies and procedures that mandate compliance with these anti-corruption laws. However, we cannot be certain that these policies and
procedures will protect us against liability. If our employees or other agents engage in such conduct, we might be held responsible and we could suffer severe criminal or
civil penalties and other consequences that could have a material adverse effect on our business, financial position, results of operations and/or cash flow, and the market
value of our Common Stock could decline.

Our international operations expose us to economic, legal, regulatory and currency risks.

Our operations extend to countries outside the United States, and are subject to the risks inherent in conducting business globally and under the laws, regulations, and
customs of various jurisdictions. These risks include: (i) failure to comply with a variety of national and local laws of countries in which we do business, including
restrictions on the import and export of certain intermediates, drugs, and technologies, (ii) failure to comply with a variety of U.S. laws including the Iran Threat Reduction
and Syria Human Rights Act of 2012; and rules relating to the use of certain “conflict minerals” under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, (iii) changes in laws, regulations, and practices affecting the pharmaceutical industry and the health care system, including but not limited to imports, exports,
manufacturing, quality, cost, pricing, reimbursement, approval, inspection, and delivery of health care, (iv) fluctuations in exchange rates for transactions conducted in
currencies other than the functional currency, (v) adverse changes in the economies in which we or our partners and suppliers operate as a result of a slowdown in overall
growth, a change in government or economic policies, or financial, political, or social change or instability in such countries that affects the markets in which we operate,
particularly emerging markets, (vi) differing local product preferences and product requirements, (vii) changes in employment laws, wage increases, or rising inflation in the
countries in which we or our partners and suppliers operate, (viii) supply disruptions, and increases in energy and transportation costs, (ix) natural disasters, including
droughts, floods, and earthquakes in the countries in which we operate, (x) local disturbances, terrorist attacks, riots, social disruption, or regional hostilities in the countries
in which we or our partners and suppliers operate and (xi) government uncertainty, including as a result of new or changed laws and regulations. We also face the risk that
some of our competitors have more experience with operations in such countries or with international operations generally and may be able to manage unexpected crises
more easily. Furthermore, whether due to language, cultural or other differences, public and other statements that we make may be misinterpreted, misconstrued, or taken
out of context in different jurisdictions. Moreover, the internal political stability of, or the relationship between, any country or countries where we conduct business
operations may deteriorate. Changes in a country’s political stability or the state of relations between any such countries are difficult to predict and could adversely affect our
operations, profitability and/or adversely impact our ability to do business there. The occurrence of any of the above risks could have a material adverse effect on our
business, financial position, results of operations and/or cash flow, and could cause the market value of our Common Stock to decline.

Our failure to maintain continued compliance with the listing requirements of the NYSE American exchange could result in the delisting of our Common Stock.

Our Common Stock has been listed on the NYSE American exchange since February 2011. The rules of NYSE American provide that shares be delisted from trading in the
event the financial condition and/or operating results of the Company appear to be unsatisfactory, the extent of public distribution or the aggregate market value of the
Common Stock has become so reduced as to make further dealings on the NYSE American inadvisable, the Company has sold or otherwise disposed of its principal
operating assets, or has ceased to be an operating company, or the Company has failed to comply with its listing agreements with the NYSE American. For example, the
NYSE American may consider suspending trading in, or removing the listing of, securities of an issuer that has stockholders’ equity of less than (i) $2.0 million if such
issuer has sustained losses from continuing operations and/or net losses in two of its three most recent fiscal years, (ii) $4.0 million if such issuer has sustained losses from
continuing operations and/or net losses in three of its four most recent fiscal years, and (iii) $6.0 million if such issuer has sustained losses from continuing operations and/or
net losses in its five most recent fiscal years. As of December 31, 2021 and 2020, Navidea had stockholders’ equity of approximately $625,000 and $2.0 million,
respectively.

On January 28, 2022, we received a deficiency letter from the NYSE American LLC stating that Navidea was not in compliance with a certain NYSE American continued
listing standard relating to stockholders’ equity. Specifically, the deficiency letter stated that we are not in compliance with Section 1003(a)(iii) of the NYSE American
Company Guide, which requires an issuer to have stockholders’ equity of $6.0 million or more if it has reported losses from continuing operations and/or net losses in its
five most recent fiscal years. The deficiency letter noted that we had stockholders’ equity of $4.1 million as of September 30, 2021, and reported net losses from continuing
operations in our five most recent fiscal years ended December 31, 2020.

We submitted a plan to the NYSE American on February 28, 2022 advising of actions we have taken or will take to regain compliance with the continued listing standards
by July 28, 2023. If our plan is not accepted, or if we do not make progress consistent with the plan, or if we otherwise fail to regain compliance by the deadline, the NYSE
American may commence delisting procedures. There is no assurance that we will meet the continued listing standard.

Our common stock will continue to be listed on the NYSE American while we attempt to regain compliance with the listing standard noted, subject to our compliance with
other continued listing requirements. Our common stock will continue to trade under the symbol “NAVB,” but will have an added designation of “.BC” to indicate that we
are not in compliance with the NYSE American’s listing standards. The NYSE American notification does not affect our business operations or our SEC reporting
requirements and does not conflict with or cause an event of default under any of our material agreements.

The delisting of our common stock from the NYSE American likely would reduce the trading volume and liquidity in our common stock and may lead to decreases in the
trading price of our common stock. The delisting of our common stock may also materially impair our stockholders’ ability to buy and sell shares of our common stock. In
addition, the delisting of our common stock could significantly impair our ability to raise capital.

The price of our Common Stock has been, and may continue to be, highly volatile, and the value of your investment could decline significantly.

Our Common Stock traded as low as $0.72 per share and as high as $2.65 per share during the 12-month period ended February 28, 2022.

The following factors, some of which are beyond our control, may have a significant impact on the market price of our common stock:

●

the impact of the global COVID-19 pandemic on our business, financial condition or prospects, including a decline in the volume of procedures using our product,
potential delays and disruptions to global supply chains, manufacturing activities, logistics, operations, employees and contractors, the business activities of our
suppliers, distributors, customers and other business partners, as well as the effects on worldwide economies, financial markets, social institutions, labor markets
and healthcare systems;

our history of operating losses and uncertainty of future profitability;

our ability to successfully complete research and further development of our drug candidates;

the timing, cost and uncertainty of obtaining regulatory approvals of our drug candidates, including delays and additional costs related to the ongoing COVID-19
pandemic;

our ability to successfully commercialize our drug candidates, including delays or disruptions related to the ongoing COVID-19 pandemic;

our ability to raise capital sufficient to fund our development programs, including unavailability of funds or delays in receiving funds as a result of the ongoing
COVID-19 pandemic;

delays in receipt of anticipated proceeds from our capital funding transactions and other receivables;

our dependence on royalties and grant revenue;

our limited product line and distribution channels;

advances in technologies and development of new competitive products;

our ability to maintain effective control over financial reporting;

the outcome of any pending litigation; and

our ability to comply with NYSE American continued listing standards.

These factors may materially and adversely affect the market price of our common stock, which could result in substantial losses by our investors.

In addition, the stock market has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of
companies like ours. Broad market and industry factors may negatively affect the market price of our common stock, regardless of our actual operating performance.
Further, a systemic decline in the financial markets and related factors beyond our control may cause our share price to decline rapidly and unexpectedly. Price volatility of
our common stock might be worse if the trading volume of our ordinary shares is low.

An investor’s ability to trade our Common Stock may be limited by trading volume.

During the 12-month period beginning on March 1, 2021 and ending on February 28, 2022, the average daily trading volume for our Common Stock on the NYSE American
was approximately 117,000 shares. However, this trading volume may not be consistently maintained in the future. If the trading volume for our Common Stock decreases,
there could be a relatively limited market for our Common Stock and the share price of our Common Stock would be more likely to be affected by broad market
fluctuations, general market conditions, fluctuations in our operating results, changes in the market’s perception of our business and announcements made by us, our
competitors or parties with whom we have business relationships. There may also be fewer institutional investors willing to hold or acquire our Common Stock. Such a lack
of liquidity in our Common Stock may make it difficult for us to issue additional securities for financing or other purposes or to otherwise arrange for any financing that we
may need in the future.

The market price of our Common Stock may be adversely affected by market conditions affecting the stock markets in general, including price and trading fluctuations on the
NYSE American exchange.

The market price of our Common Stock may be adversely affected by market conditions affecting the stock markets in general, including price and trading fluctuations on
the NYSE American. These conditions may result in (i) volatility in the level of, and fluctuations in, the market prices of stocks generally and, in turn, our shares of
Common Stock, and (ii) sales of substantial amounts of our Common Stock in the market, in each case that could be unrelated or disproportionate to changes in our
operating performance.

Because we do not expect to pay dividends on our Common Stock in the foreseeable future, stockholders will only benefit from owning Common Stock if it appreciates.

We have paid no cash dividends on any of our Common Stock to date, and we currently intend to retain our future earnings, if any, to fund the development and growth of
our business. As a result, with respect to our Common Stock, we do not expect to pay any cash dividends in the foreseeable future, and payment of cash dividends, if any,
will also depend on our financial condition, results of operations, capital requirements and other factors and will be at the discretion of our Board of Directors. Furthermore,
we are subject to various laws and regulations that may restrict our ability to pay dividends and we may not pay dividends on our Common Stock without the consent of a
majority of the holders of the outstanding Series E Preferred Stock. We may also in the future become subject to contractual restrictions on, or prohibitions against, the
payment of dividends. Due to our intent to retain any future earnings rather than pay cash dividends on our Common Stock and applicable laws, regulations and contractual
obligations that may restrict our ability to pay dividends on our Common Stock, the success of your investment in our Common Stock will likely depend entirely upon any
future appreciation and there is no guarantee that our Common Stock will appreciate in value.

Our future ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.

We have incurred substantial losses during our history, and we may never achieve profitability. To the extent that we continue to generate taxable losses, unused losses will
carry forward to offset a portion of future taxable income, if any, subject to expiration of such carryforwards in the case of carryforwards generated prior to 2018.
Additionally, we continue to generate business tax credits, including research and development tax credits, which generally may be carried forward to offset a portion of
future taxable income, if any, subject to expiration of such credit carryforwards. Under Sections 382 and 383 of the Internal Revenue Code, if a corporation undergoes an
“ownership change,” generally defined as a greater than 50 percentage point change (by value) in its equity ownership over a three-year period, the corporation’s ability to
use its pre-change net operating loss carryforwards (“NOLs”), and other pre-change tax attributes (such as research and development tax credits) to offset its post-change
income or taxes may be limited. The Company completed a Section 382 analysis through December 31, 2021 and believes that a Section 382 ownership change has not
occurred. However, we may experience additional ownership changes in the future as a result of subsequent shifts in our stock ownership, some of which are outside of our
control. As a result, if we earn net taxable income, our ability to use our pre-change NOLs or other pre-change tax attributes to offset U.S. federal taxable income may be
subject to limitations, which could potentially result in increased future tax liability to us. Additionally, for taxable years beginning after December 31, 2017, the
deductibility of such U.S. federal net operating losses is limited to 80% of our taxable income in any future taxable year. There is a risk that due to changes under the Tax
Cuts and Jobs Act, regulatory changes, or other unforeseen reasons, our existing NOLs or business tax credits could expire or otherwise be unavailable to offset future
income tax liabilities. At the state level, there may also be periods during which the use of NOLs or business tax credits is suspended or otherwise limited, which could
accelerate or permanently increase state taxes owed. For these reasons, we may not be able to realize a tax benefit from the use of our NOLs or tax credits, even if we attain
profitability.

We may have difficulty attracting and retaining qualified personnel and our business may suffer if we do not.

Our business has experienced a number of successes and faced several challenges in recent years that have resulted in several significant changes in our strategy and business
plan, including the shifting of resources to support our current development initiatives. Our management will need to remain flexible to support our business model over the
next few years. However, losing members of the Navidea team could have an adverse effect on our operations. Our success depends on our ability to attract and retain
technical and management personnel with expertise and experience in the pharmaceutical industry, and the acquisition of additional product candidates may require us to
acquire additional highly qualified personnel. The competition for qualified personnel in the biotechnology industry is intense and we may not be successful in hiring or
retaining the requisite personnel. If we are unable to attract and retain qualified technical and management personnel, we will suffer diminished chances of future success.

Actual and anticipated changes to the regulations of the healthcare system and U.S. tax laws may have a negative impact on the cost of healthcare coverage and
reimbursement of healthcare services and products.

The FDA and comparable agencies in other jurisdictions directly regulate many critical activities of life science, technology, and healthcare industries, including the conduct
of preclinical and clinical studies, product manufacturing, advertising and promotion, product distribution, adverse event reporting, and product risk management. In both
domestic and foreign markets, sales of products depend in part on the availability and amount of reimbursement by third-party payors, including governments and private
health plans. Governments may regulate coverage, reimbursement, and pricing of products to control cost or affect utilization of products. Private health plans may also seek
to manage cost and utilization by implementing coverage and reimbursement limitations. Substantial uncertainty exists regarding the reimbursement by third-party payors of
newly approved healthcare products. The U.S. and foreign governments regularly consider reform measures that affect healthcare coverage and costs. Such reforms may
include changes to the coverage and reimbursement of healthcare services and products. In particular, there have been recent judicial and Congressional challenges to the
Patient Protection and Affordable Care Act (“PPACA”), which could have an impact on coverage and reimbursement for healthcare services covered by plans authorized by
the PPACA, and we expect there will be additional challenges and amendments to the PPACA in the future.

In addition, various other healthcare reform proposals have emerged at the federal and state level. The recent changes to U.S. tax laws could also negatively impact the
PPACA. We cannot predict what healthcare initiatives or tax law changes, if any, will be implemented at the federal or state level, however, government and other regulatory
oversight and future regulatory and government interference with the healthcare systems could adversely impact our business.

We may not be able to maintain compliance with our internal controls and procedures.

We regularly review and update our internal controls, disclosure controls and procedures, and corporate governance policies. In addition, we are required under the Sarbanes
Oxley Act of 2002 to report annually on our internal control over financial reporting. Any system of internal controls, however well designed and operated, is based in part
on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met. Any failure or circumvention of the controls and
procedures or failure to comply with regulation concerning control and procedures could have a material effect on our business, results of operation and financial condition.
Any of these events could result in an adverse reaction in the financial marketplace due to a loss of investor confidence in the reliability of our financial statements, which
ultimately could negatively affect the market price of our shares, increase the volatility of our stock price and adversely affect our ability to raise additional funding. The
effect of these events could also make it more difficult for us to attract and retain qualified persons to serve on our Board of Directors and our Board committees and as
executive officers.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

We currently lease approximately 5,000 square feet of office space at 4995 Bradenton Avenue, Dublin, Ohio, as our principal offices, at a monthly base rent of
approximately $3,000. The current lease term expires in June 2023. We believe this facility is in good condition.

We also currently lease approximately 25,000 square feet of office space at 5600 Blazer Parkway, Dublin, Ohio, formerly our principal offices, at a monthly base rent of
approximately $27,000 during 2020. The current lease term expires in October 2022 with an option to extend for an additional five years. The Company does not intend to
renew this lease. We also sublease the space on Blazer Parkway to a tenant for approximately $39,000 per month, which expires in October 2022.

Item 3. Legal Proceedings

See Note 12 to the accompanying consolidated financial statements.

Item 4. Mine Safety Disclosure

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our Common Stock trades on the NYSE American exchange under the trading symbol “NAVB.” As of March 18, 2022, we had 381 holders of Common Stock of record.
There were no repurchases of our Common Stock during the year ended December 31, 2021.

Stock Performance Graph

The following graph compares the cumulative total return on a $100 investment in each of the Common Stock of the Company, the Russell 3000, and the NASDAQ
Biotechnology Index for the period from December 31, 2016 through December 31, 2021. This graph assumes an investment in the Company’s Common Stock and the
indices of $100 on December 31, 2016 and that any dividends were reinvested.

COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN*

Among Navidea Biopharmaceuticals, the Russell 3000 Index, and the NASDAQ Biotechnology Index

* $100 invested on 12/31/2016 in stock or index, including reinvestment of dividends.

Navidea Biopharmaceuticals
Russell 3000
NASDAQ Biotechnology

Dividend Policy

Cumulative Total Return as of December 31,

2016

2017

2018

2019

2020

2021

100.00
100.00
100.00

56.25 $
118.85
121.06

15.63 $
110.54
109.77

9.84 $
142.09
136.56

16.80 $
168.04
171.64

7.81
209.36
170.55

We did not declare or pay any dividends and we do not currently intend to pay dividends in the foreseeable future. We currently expect to retain future earnings, if any, for
the foreseeable future, to finance the growth and development of our business.

Item 6. [Reserved]

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read together with our Consolidated Financial Statements and the Notes related to those statements, as well as the other financial
information included in this Form 10-K. Some of our discussion is forward-looking and involves risks and uncertainties. For information regarding risk factors that could
have a material adverse effect on our business and future results, refer to Item 1A of this Form 10-K, “Risk Factors.”

The Company

Navidea Biopharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of precision immunodiagnostic agents and
immunotherapeutics. Navidea is developing multiple precision-targeted products based on our Manocept platform to enhance patient care by identifying the sites and
pathways of undetected disease and enable better diagnostic accuracy, clinical decision-making and targeted treatment.

We manage our business based on two primary types of drug products: (i) diagnostic substances, including Tc99m tilmanocept and other diagnostic applications of our
Manocept platform, and (ii) therapeutic applications of our Manocept platform. See Note 15 to the consolidated financial statements for more information about our business
segments.

In the near term, the Company intends to continue to develop our additional imaging product candidates into advanced clinical testing, as well as working to extend the
regulatory approvals for use of the Tc99m tilmanocept product. We will also be evaluating potential funding and other resources required for continued development,
regulatory approval and commercialization of any Manocept platform product candidates that we identify for further development, and potential options for advancing
development.

Outlook

Our operating expenses in recent years have been focused primarily on support of both diagnostic and therapeutic applications of our Manocept platform, and Tc99m
tilmanocept. We incurred approximately $5.1 million and $4.9 million in total on R&D activities during the years ended December 31, 2021 and 2020, respectively. Of the
total amounts we spent on R&D during those periods, excluding costs related to our internal R&D headcount and our general and administrative staff which we do not
currently allocate among the various development programs that we have underway, we incurred out-of-pocket charges by program as follows:

Development Program (a)
Manocept Platform – Diagnostics (b)
Manocept Platform – Therapeutics
Tc99m Tilmanocept (b)

2021

2020

2,620,057 $
653,733
136,941

3,008,463
337,278
57,456

(a) Certain development program expenditures were offset by grant reimbursement revenues totaling $88,000 and $696,000 during the years ended December 31, 2021

and 2020, respectively.

(b) Certain 2020 amounts have been reclassified from Tc99m Tilmanocept to Manocept Platform – Diagnostics to conform to the 2021 presentation.

We expect to continue the advancement of our efforts with our Manocept platform during 2022. We currently expect our total research and development expenses, including
both out-of-pocket charges as well as internal headcount and support costs, to be higher in 2022 than in 2021. However, the ongoing global COVID-19 pandemic has
impacted the global economy and may impact our operations, including the potential interruption of our clinical trial activities and our supply chain. For example, the
COVID-19 outbreak delayed enrollment in our NAV3-32 clinical study in the United Kingdom due to national COVID-19-related shutdowns. In addition, the regulatory
approval process in India was delayed by the impact of COVID-19 in that country. The COVID-19 pandemic may delay enrollment in our future clinical trials due to
prioritization of hospital resources toward the outbreak, and some patients may be unwilling to enroll in our future trials or be unable to comply with clinical trial protocols if
quarantines impede patient movement or interrupt healthcare services, which would delay our ability to conduct clinical trials or release clinical trial results. The spread of an
infectious disease, including COVID-19, may also result in the inability of our suppliers to deliver clinical drug supplies on a timely basis or at all. In addition, hospitals may
reduce staffing and reduce or postpone certain treatments in response to the spread of an infectious disease. Such events may result in a period of business disruption, and in
reduced operations, or doctors and medical providers may be unwilling to participate in our clinical trials, any of which could materially affect our business, financial
condition and results of operations.

The extent to which the ongoing global COVID-19 pandemic impacts our business will depend on future developments, which are highly uncertain and cannot be predicted,
including new information that may emerge concerning the severity and spread of COVID-19, the actions taken by federal, state and local governmental authorities, both
domestic and foreign, as well as private parties, to contain or treat its impact, and other events outside of our control. The COVID-19 pandemic has adversely affected
economies and financial markets worldwide, resulting in an economic downturn that could impact our business, financial condition and results of operations, including our
ability to obtain additional funding, if needed.

Tc99m tilmanocept is approved by the EMA for use in imaging and intraoperative detection of sentinel lymph nodes draining a primary tumor in adult patients with breast
cancer, melanoma, or localized squamous cell carcinoma of the oral cavity in the EU. We anticipate that we will incur costs to support our product, regulatory,
manufacturing and commercial activities related to the sale of Tc99m tilmanocept in the EU, as well as related to the potential marketing registration and sale of Tc99m
tilmanocept in markets other than the EU. There can be no assurance that Tc99m tilmanocept will achieve regulatory approval in any market other than the EU, or if
approved in those markets, that it will achieve market acceptance in the EU or any other market. See Item 1A - “Risk Factors.”

We continue to evaluate existing and emerging data on the potential use of Manocept-related agents in the diagnosis, disease-staging and treatment of disorders in which
macrophages are involved, such as RA, KS, NASH and other disease states, to define areas of focus, development pathways and partnering options to capitalize on the
Manocept platform. We will also be evaluating potential funding and other resources required for continued development, regulatory approval and commercialization of any
Manocept platform product candidates that we identify for further development, and potential options for advancing development. There can be no assurance of obtaining
funding or other resources on terms acceptable to us, if at all, that further evaluation or development will be successful, that any Manocept platform product candidate will
ultimately achieve regulatory approval, or if approved, the extent to which it will achieve market acceptance. See Item 1A - “Risk Factors.”

Results of Operations

Our pharmaceutical products and product candidates are not yet generating significant commercial revenue, therefore the discussion of our revenue focuses on the grant and
other revenue and our operating variances focus on our product development programs and the supporting general and administrative expenses.

Years Ended December 31, 2021 and 2020

Royalty Revenue. During 2020, we recognized royalty revenue of $8,000 related to our license agreement with SpePharm in Europe. No royalty revenue was recorded during
2021. The decrease in royalty revenue was due to termination of our license agreement with SpePharm in May 2020.

License Revenue. During 2021 and 2020, we recognized license revenue of $46,000 and $111,000, respectively, related to net transitional sales from SpePharm in Europe.
The decrease in license revenue was due to the cessation of active marketing of Tc99m tilmanocept in Europe following the termination of our license agreement with
SpePharm in May 2020.

Grant and Other Revenue. During 2021, we recognized $486,000 of grant and other revenue compared to $796,000 in 2020. Grant revenue of $88,000 and $696,000 during
2021 and 2020, respectively, was primarily related to SBIR grants from the NIH supporting Manocept development. Other revenue during 2021 included $298,000 from
LikeMinds for the partial recovery of debts previously written off in 2015 and $100,000 from Cardinal Health 414 for reimbursement of certain research and development
costs. Other revenue for 2020 included $100,000 from Alseres for the partial recovery of debts previously written off in 2015.

Research and Development Expenses. R&D expenses increased $212,000, or 4%, to $5.1 million during 2021 from $4.9 million during 2020. The increase was primarily
due to increased regulatory consulting expenses of $101,000, increased employee compensation including incentive-based awards of $82,000, increased travel costs of
$30,000, increased recruiting fees of $28,000 and increased general office expenses of $19,000. These increases were coupled with net increases in drug project expenses
related to (i) increased therapeutics development costs of $316,000, including increased preclinical and clinical development costs; and (ii) increased Tc99m tilmanocept
development costs of $79,000, primarily European regulatory consulting expenses; offset by (iii) decreased Manocept diagnostic development costs of $388,000 including
decreased license fees and manufacturing-related activities offset by increased clinical trial costs.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased $755,000, or 11%, to $7.5 million during 2021 from $6.7 million
during 2020. The net increase was primarily due to separation expenses of $969,000 related to the resignation of our former Chief Executive Officer, increased consulting
services of $413,000 related to European distribution of Tc99m tilmanocept, increased director fees of $189,000 related to additional board members and increased board
compensation rates, increased insurance costs of $176,000, losses on the abandonment of certain intellectual property of $93,000, recruiting fees of $75,000 related to our
search for a new Chief Executive Officer, increased travel expenses of $52,000 and increased general office expenses of $34,000 primarily related to technology upgrades,
offset by decreased legal and professional services of $580,000, and decreased employee compensation including incentive-based awards of $471,000, decreased investor
relations costs of $133,000, decreased EMA and other annual registration fees of $30,000, decreased facilities costs of $27,000 and decreased franchise taxes of $13,000.

Other Income (Expense). Other income, net, was $346,000 during 2021 compared to other expense, net, of $11,000 during 2020. During 2021, we recognized a gain on
extinguishment of debt of $366,000 resulting from forgiveness of our PPP loan. During 2021 and 2020, we recognized interest income of $3,000 and $18,000, respectively.
During 2021 and 2020, we recorded interest expense of $9,000 and $7,000, respectively.

Liquidity and Capital Resources

Cash balances increased to $4.2 million as of December 31, 2021 from $2.7 million as of December 31, 2020. The net increase was primarily due to net proceeds from
issuance of preferred stock of $12.6 million, offset by cash used to fund our operations of $10.2 million, payments on notes payable of $492,000 and patent and trademark
costs of $304,000.

Operating Activities. Cash used in operations was $10.2 million during 2021 compared to $8.2 million cash used in operations during 2020.

Stock subscriptions and other receivables decreased $2.9 million to $93,000 as of December 31, 2021 from $3.0 million as of December 31, 2020, primarily due to
decreased preferred stock subscriptions of $2.9 million and decreased amounts receivable for transitional sales revenue from SpePharm of $58,000, offset by increased
amounts receivable from related parties for reimbursement of legal fees of $90,000.

Inventory decreased $19,000 to $151,000 as of December 31, 2021 from $170,000 as of December 31, 2020, primarily due to materials allocated to manufacturing process
development of $28,000 offset by increased finished goods inventory of $13,000 due to finished goods cost adjustments.

Prepaid expenses and other current assets increased $207,000 to $908,000 as of December 31, 2021 from $701,000 as of December 31, 2020. The increase was primarily
due to a net increase in prepaid insurance of $160,000, an upfront contract payment of $56,000 related to a clinical study and an upfront contract payment of $23,000 related
to manufacturing process development, offset by the return of a retainer for legal services of $30,000.

Accounts payable increased $260,000 to $1.4 million as of December 31, 2021 from $1.2 million as of December 31, 2020, primarily driven by net increased payables due
for Manocept development costs, manufacturing-related activities, therapeutics development costs and investor relations costs, offset by net decreased payables due for
Navidea Europe costs and legal and professional services. Accrued liabilities and other current liabilities increased $636,000 to $3.1 million as of December 31, 2021 from
$2.5 million as of December 31, 2020. Increased accruals related to the separation of our former Chief Executive Officer, Manocept development costs, employee benefits
and Navidea Europe were offset by decreased accruals for incentive-based compensation and legal and professional services. Our payable and accrual balances will continue
to fluctuate, with planned increases in development activity related to the Manocept platform offset by decreased legal fees as we continue to work to resolve our legal
disputes.

Investing Activities. Investing activities used $329,000 during 2021 compared to $413,000 used during 2020. Patent and trademark costs used $304,000 and purchases of
property and equipment used $25,000 during 2021. Patent and trademark costs used $278,000 and purchases of property and equipment used $136,000 during 2020.

Financing Activities. Financing activities provided $12.1 million during 2021 compared to $10.2 million provided during 2020. The $12.1 million provided by financing
activities in 2021 consisted primarily of proceeds from issuance of preferred stock of $12.7 million, offset by principal payments on financed insurance premiums of
$492,000, payment of preferred stock issuance costs of $70,000 and payment of tax withholdings related to stock-based compensation of $17,000. The $10.2 million
provided by financing activities during 2020 consisted primarily of proceeds from the issuance of preferred stock of $6.0 million, proceeds from the issuance of Common
Stock of $4.4 million, and proceeds from notes payable of $366,000, offset by principal payments on financed insurance premiums of $369,000, payment of Common Stock
issuance costs of $150,000 and payment of preferred stock issuance costs of $55,000.

Paycheck Protection Program Loan

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020. Among the provisions contained in the CARES Act was the
creation of the Payroll Protection Program (“PPP”) that provides for Small Business Administration (“SBA”) Section 7(a) loans for qualified small businesses. PPP loan
proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves; rent;
utilities; and interest on certain other outstanding debt. On May 18, 2020, Fifth Third Bank (the “Lender”) funded a PPP loan to the Company in the amount of
$366,000 (the “PPP Loan”). In accordance with the loan forgiveness requirements of the CARES Act, the Company used the proceeds from the PPP Loan primarily for
payroll costs, rent and utilities. On February 23, 2021, the Lender notified the Company that the entire PPP Loan amount of $366,000 had been forgiven. See Notes 2 and 10
to the accompanying consolidated financial statements.

Registered Offering

On February 14, 2020, we executed an agreement with an investor to purchase approximately 1.6 million shares of our Common Stock at a price of $0.85 per share for
aggregate gross proceeds to Navidea of $1.4 million. The offering was made pursuant to our shelf registration statement on Form S‑3 (Registration No. 333-222092), which
was declared effective by the SEC on December 27, 2017, including the prospectus contained therein, as well as a prospectus supplement filed with the SEC on February 18,
2020. See Notes 2 and 13 to the accompanying consolidated financial statements.

Private Placements

On February 13, 2020, we executed a stock purchase agreement with John K. Scott, Jr. to purchase approximately 2.4 million shares of Common Stock for aggregate gross
proceeds of approximately $2.0 million. A registration statement on Form S-3 (Registration No. 333-248404) covering the resale of the shares of Common Stock issued to
Mr. Scott was declared effective by the SEC on September 16, 2020. See Notes 2 and 13 to the accompanying consolidated financial statements.

On August 30, 2020, the Company entered into a Common Stock Purchase Agreement with the Investors named therein, pursuant to which the Investors agreed to purchase
from the Company up to $25.0 million in shares of the Company’s Common Stock. To date, we have received only $25,000 of the $5.0 million that was owed under the
Common Stock Purchase Agreement. We are continuing to evaluate our rights and remedies under that agreement. Effective December 14, 2021, Navidea terminated the
Common Stock Purchase Agreement. See Notes 2 and 13 to the accompanying consolidated financial statements.

Series C Preferred Stock

On May 6, 2020, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent with Keystone Capital Partners, LLC (“Keystone”) pursuant to
which the Company agreed to issue to Keystone 420,000 shares of newly-designated Series C Redeemable Convertible Preferred Stock (the “Series C Preferred Stock”) for
an aggregate purchase price of $4.2 million. All $4.2 million were received and the related Series C Preferred Stock was issued during the second and third quarters of 2020.
The 420,000 shares of Series C Preferred Stock were subsequently converted into 1,425,076 shares of Common Stock. See Notes 2 and 14 to the accompanying consolidated
financial statements.

Series D Preferred Stock

On August 31, 2020, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent (the “Series D Preferred Stock Purchase Agreement”) with
Keystone pursuant to which the Company agreed to issue to Keystone 150,000 shares of newly-designated Series D Redeemable Convertible Preferred Stock (the “Series D
Preferred Stock”) for an aggregate purchase price of $15.0 million. Pursuant to the Series D Preferred Stock Purchase Agreement, Keystone agreed to purchase Series D
Preferred Stock in amounts to be determined by Keystone in one or more closings before the end of the nine-month period following the date when the Company’s
prospectus supplement to its existing registration statement on Form S-3 was filed with the SEC. Through July 7, 2021, Keystone purchased 72,500 shares of Series D
Preferred Stock pursuant to the Series D Preferred Stock Purchase Agreement for an aggregate purchase price of $7.25 million, leaving a remaining balance of 77,500 shares
of Series D Preferred Stock. On July 8, 2021 (the “Amendment Effective Date”), the Company entered into an Amendment to Stock Purchase Agreement and Letter of
Investment Intent (the “Series D Amendment”) with Keystone pursuant to which Keystone purchased 22,077 shares of Series D Preferred Stock for an aggregate purchase
price of approximately $2.2 million. After purchasing the 22,077 shares, Keystone has no further right or obligation to purchase shares of Series D Preferred Stock.
Including the purchases pursuant to the Series D Amendment, Keystone’s purchases of Series D Preferred Stock pursuant to the Series D Purchase Agreement during the
year ended December 31, 2021 totaled 76,827 shares of Series D Preferred Stock for an aggregate purchase price of approximately $7.7 million. The Series D Preferred
Stock is convertible into a maximum of 5,147,000 shares of Common Stock. See Notes 2 and 13 to the accompanying consolidated financial statements.

Series E Preferred Stock

On March 2, 2021, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent with an existing accredited investor, John K. Scott, Jr., pursuant
to which the Company issued to Mr. Scott in a private placement transaction 50,000 shares of newly-designated Series E Redeemable Convertible Preferred Stock (the
“Series E Preferred Stock”) for an aggregate purchase price of $5.0 million. On January 31, 2022, pursuant to the Certificate of Designations of the Series E Redeemable
Convertible Preferred Stock dated March 2, 2021, the holder of the Series E Preferred Stock, John K. Scott, Jr., notified the Company that he was exercising his option to
extend the Conversion Deadline (as defined therein) for an additional period of six months. The Series E Preferred Stock is convertible into a maximum of 2,173,913 shares
of Common Stock. See Notes 2 and 13 to the accompanying consolidated financial statements.

Jubilant Memorandum of Understanding

On August 9, 2020, the Company entered into a binding memorandum of understanding (“MOU”) with Jubilant Draximage Inc., dba Jubilant Radiopharma,
Radiopharmaceuticals Division (“Jubilant”). The MOU outlines the terms and framework for a potential Exclusive License and Distribution Agreement (“ELDA”) for
Navidea’s Tc99m-Tilmanocept Rheumatoid Arthritis diagnostic application in the United States, Canada, Mexico, and Latin America. In connection with the MOU, the
Company entered into a Stock Purchase Agreement with Jubilant, pursuant to which Jubilant purchased $1.0 million in shares of the Company’s Common Stock in exchange
for exclusivity of negotiations while due diligence efforts are completed.

The execution of the ELDA is subject to certain conditions, including negotiation of a definitive agreement in mutually acceptable form and Jubilant’s completion of its due
diligence. See Notes 2 and 13 to the accompanying consolidated financial statements.

Material Commitments

Latkin Separation Agreement. On November 23, 2021, Jed A. Latkin signed a Separation Agreement and General Release (the “Separation Agreement”) in connection with
his resignation from his positions as Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, and as a director, on October 24, 2021 (the “Separation
Date”). Pursuant to the Separation Agreement, among other things, the Company agreed to the continued payment of Mr. Latkin’s base salary of $490,000, less all relevant
taxes and other withholdings, on the following basis: (i) for 12 months, 100% of his base salary, minus an aggregate $24,000 deducted monthly pro rata for reimbursement
of Mr. Latkin’s attorney fees which were paid by the Company, and (ii) for 10 months following the expiration of the first 12-month period, 50% of his base salary. As of
December 31, 2021, there were approximately $633,000 of payments remaining under the Separation Agreement.

Financed Insurance Premiums. In November 2021, the Company prepaid $566,000 of insurance premiums through the issuance of a note payable to IPFS Corporation with
an interest rate of 4.36%. The note is payable in five monthly installments of approximately $114,000, with the final payment due in April 2022. As of December 31, 2021,
there were approximately $458,000 of payments remaining on the note.

Clinical Research Agreements. We have agreements in place with multiple clinical trial sites for conduct of our clinical studies, as well as with several contract research
organizations for clinical trial-related services such as image and data management, monitoring, and statistical services. As of December 31, 2021, there were approximately
$496,000 of payments currently due related to clinical research agreements.

UCSD License Agreements. Under our license agreements with UCSD, we have exclusive world-wide rights to all diagnostic and therapeutic uses of tilmanocept, other than
Tc99m tilmanocept used in lymphatic mapping in the United States, Canada and Mexico which rights are licensed to Cardinal Health. The UCSD license agreements include
obligations for payments related to license fees, milestones, and royalties. As of December 31, 2021, the Company has accrued approximately $1.6 million of payments
related to the UCSD license agreements for which we have not yet been invoiced.

CRG Litigation

See Notes 2 and 12 to the accompanying condensed consolidated financial statements.

Platinum Litigation

See Notes 2 and 12 to the accompanying consolidated financial statements.

Goldberg Agreement and Litigation

See Notes 2 and 12 to the accompanying consolidated financial statements.

Summary

Our future liquidity and capital requirements will depend on a number of factors, including the ability of our distribution partners to achieve market acceptance of our
products, our ability to complete the development and commercialization of new products, our ability to obtain milestone or development funds from potential development
and distribution partners, regulatory actions by the FDA and international regulatory bodies, the ability to procure required financial resources, the outcome of any pending
litigation, and intellectual property protection.

We plan to focus our resources during 2022 on development of products based on the Manocept platform. Although management believes that it will be able to achieve this
objective, it is subject to a number of variables beyond our control, including the nature and timing of any partnering opportunities, the ability to modify contractual
commitments made in connection with these programs, and the timing and expense associated with suspension or alteration of clinical trials, and consequently we may need
to seek additional financing in order to support our planned development programs.

We will continue to evaluate our timelines, strategic needs, and balance sheet requirements. If we attempt to raise additional capital through debt, royalty, equity or
otherwise, we may not be successful in doing so on terms acceptable to the Company, if at all. Although on February 14, 2022 we filed a registration statement with the
Securities and Exchange Commission to register the sale of up to $35 million of Company Common Stock pursuant to a rights offering, the terms and timing of such rights
offering have not yet been determined by the Company and there is no assurance that such rights offering will occur Further, we may not be able to gain access and/or be
able to secure new sources of funding, identify new development opportunities, successfully obtain regulatory approval for and commercialize new products, achieve
significant product revenues from our products, or achieve or sustain profitability in the future.

The Company is currently engaged in litigation with Dr. Goldberg and CRG. While the Company believes that the ultimate resolution of these matters will not have a
material impact on the Company's financial statements, the outcome of litigation is inherently uncertain and the final resolution of these matters may result in expense to the
Company in excess of management's expectations.

In addition, the Company has experienced recurring net losses and has used significant cash to fund its operations. The COVID-19 pandemic may negatively impact the
Company’s operations, including possible effects on its financial condition, ability to access the capital markets on attractive terms or at all, liquidity, operations, suppliers,
industry, and workforce. We do not believe there has been a significant impact to the Company’s clinical development and regulatory timelines resulting from the ongoing
COVID-19 global pandemic. However, the COVID-19 outbreak delayed enrollment in our NAV3-32 clinical study in the United Kingdom due to national COVID-19-
related shutdowns. In addition, the regulatory approval process in India has been delayed by the impact of COVID-19 in that country. The COVID-19 pandemic has
adversely affected economies and financial markets worldwide, resulting in an economic downturn that could impact our business, financial condition and results of
operations, including our ability to obtain additional funding, if needed. The Company will continue to evaluate the impact that the COVID-19 pandemic could have on the
operations, financial position, and the results of operations and cash flows during fiscal year 2022 and beyond.

The Company has experienced recurring net losses and has used significant cash to fund its operations. The Company has considerable discretion over the extent of
development project expenditures and has the ability to curtail the related cash flows as needed. The Company also has funds remaining under outstanding grant awards, and
continues working to establish new sources of funding, including collaborations, potential equity investments, and additional grant funding that can augment the balance
sheet. However, based on our current working capital and our projected cash burn, management believes that there is substantial doubt about the Company’s ability to
continue as a going concern for a period of one year from the filing of this Annual Report on Form 10-K. No adjustments have been made to the accompanying condensed
consolidated financial statements as a result of this uncertainty. See Note 2 to the accompanying consolidated financial statements and Item 1A – “Risk Factors.”

As of December 31, 2021, we had no off-balance sheet arrangements.

Recent Accounting Standards

See Notes 1(m) and 1(o) to the accompanying consolidated financial statements.

Critical Accounting Policies

Revenue Recognition. We currently generate revenue from a grant to support a product development initiative. We generally recognize grant revenue when expenses
reimbursable under the grant have been paid and payments under the grant become contractually due.

We also earn revenues related to our licensing and distribution agreements. The consideration we are eligible to receive under our licensing and distribution agreements
typically includes upfront payments, reimbursement for research and development costs, milestone payments, and royalties. Each licensing and distribution agreement is
unique and requires separate assessment in accordance with current accounting standards.

Research and Development. R&D expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include salaries, benefits,
and stock-based compensation, as well as travel, supplies, and other costs to support our R&D staff. External contracted services include clinical trial activities, chemistry,
manufacturing and control-related activities, and regulatory costs. R&D expenses are charged to operations as incurred. We review and accrue R&D expenses based on
services performed and rely upon estimates of those costs applicable to the stage of completion of each project.

Series C, Series D and Series E Convertible Preferred Stock. The Company evaluated the provisions of the Series C, Series D and Series E Preferred Stock under
Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity, ASC 815, Derivatives and Hedging, ASC 470, Debt, and Accounting Series
Release (“ASR”) 268, Presentation in Financial Statements of “Redeemable Preferred Stocks.” Based on this evaluation, the Company determined that the Series C, Series
D and Series E Preferred Stock are not mandatorily redeemable financial instruments and any obligation to issue a variable number of shares of Common Stock is not
unconditional. Accordingly, the Series C, Series D and Series E Preferred Stock should be classified as equity. Neither the embedded conversion option nor the embedded
call option meet the criteria to be separated from the Series C, Series D or Series E Preferred stock and thus these features should not be bifurcated and accounted for as
derivatives. Additionally, the Series C and Series D Preferred Stock contain a beneficial conversion feature (“BCF”). Prior to the January 1, 2021 adoption of Accounting
Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, the BCF resulted in an increase to additional
paid-in capital and a discount on the Series C and Series D Preferred Stock. The discounts on the Series C and Series D Preferred Stock were considered to be fully
amortized at the date of issuance because the Series C and Series D Preferred Stock are immediately convertible, resulting in a deemed dividend at the date of issuance for
the amount of the BCF. Following adoption of ASU 2020-06, no BCF is recorded in the consolidated financial statements. Finally, the Company determined that the
conversion features of the Series C Preferred Stock could result in the Company being required to redeem a portion of the shares converted, thus the Series C Preferred
Stock should be classified in mezzanine equity. Conversely, the Company determined that the Series D and Series E Preferred Stock do not contain conversion features that
could result in the Company being required to redeem a portion of the shares converted, thus the Series D and Series E Preferred Stock should not be classified in mezzanine
equity.

Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. We base these estimates and assumptions upon historical experience and existing, known circumstances. Actual results could differ from those
estimates.

Critical Estimates

Stock-Based Compensation. Stock-based payments to employees and directors, including grants of stock options and restricted stock, are recognized in the statements of
operations based on their estimated fair values on the date of grant, subject to an estimated forfeiture rate. The fair value of each option award with time-based vesting
provisions is estimated on the date of grant using the Black-Scholes option pricing model to value such stock-based payments and the portion that is ultimately expected to
vest is recognized as compensation expense over either (1) the requisite service period or (2) the estimated performance period. The determination of fair value using the
Black-Scholes option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock
price volatility, risk-free interest rate, expected dividends and projected employee stock option behaviors. The fair value of each option award with market-based vesting
provisions is estimated on the date of grant using a Monte Carlo simulation to value such stock-based payments and the portion that is ultimately expected to vest is
recognized as compensation expense over either (1) the requisite service period or (2) the estimated performance period. The determination of fair value using a Monte Carlo
simulation is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free
interest rate, expected dividends and projected employee stock option behaviors.

We estimate the expected term based on the contractual term of the awards and employees' exercise and expected post-vesting termination behavior. Restricted stock awards
are valued based on the closing stock price on the date of grant and amortized ratably over the estimated life of the award.

Since stock-based compensation is recognized only for those awards that are ultimately expected to vest, we have applied an estimated forfeiture rate to unvested awards for
the purpose of calculating compensation cost. These estimates will be revised, if necessary, in future periods if actual forfeitures differ from estimates. Changes in forfeiture
estimates impact compensation cost in the period in which the change in estimate occurs.

Contingent Liabilities. We are subject to legal proceedings and claims that arise in the normal course of business. In accordance with ASC Topic 450, Contingencies, we
accrue for contingent liabilities when management determines it is probable that a liability has been incurred and the amount can be reasonably estimated. This
determination requires significant judgment by management. As of the date of the filing of this Annual Report on Form 10-K, we are engaged in separate matters of ongoing
litigation with Capital Royalty Partners II, L.P. and our former President and Chief Executive Officer, Dr. Michael Goldberg.

In assessing whether we should accrue a liability in our financial statements as a result of the lawsuits, we considered various factors, including the legal and factual
circumstances of the cases, the trial records and post-trial rulings of the applicable courts and appellate courts, the current status of the proceedings, applicable law and the
views of legal counsel. We have concluded that a loss from these cases is not probable and reasonably estimable and, therefore, a liability has not been recorded with respect
to these cases as of December 31, 2021. While we believe that the ultimate resolution of these matters will not have a material impact on our financial statements, the
outcome of litigation is inherently uncertain and the final resolution of these matters may result in expense to us in excess of management's expectations.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Not applicable to smaller reporting companies.

Item 8. Financial Statements and Supplementary Data

Our consolidated financial statements, and the related notes, together with the report of Marcum LLP dated March 28, 2022, are set forth at pages F-1 through F-32 attached
hereto and incorporated herein by reference.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed,
summarized, and reported within the specified time periods. As a part of these controls, our management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act.

Under the supervision and with the participation of our management, including our Executive Leadership Committee which consists of our Chief Medical Officer, Vice
President of Operations and Vice President of Finance and Administration, we evaluated the effectiveness of the design and operation of our disclosure controls and
procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of December 31, 2021, and concluded that our disclosure controls and procedures were effective as of
the end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit 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 us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our
management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Our management understands that our disclosure controls and procedures do not guarantee that all errors and all improper conduct will be prevented. A control system, no
matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, a design of a control
system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of improper conduct, if any, have been detected. These
inherent limitations include the realities that judgments and decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more persons, or by management override of the control. Further,
the design of any system of controls is also based in part upon assumptions about the likelihood of future events, and there can be no assurance that any design will succeed
in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance
with the policies or procedures may deteriorate. Because of the inherent limitations of a cost-effective control system, misstatements due to error or fraud may occur and
may not be detected.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control system was designed to provide
reasonable assurance to management and the Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control
systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.

Our internal control over financial reporting is a process designed 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, and includes those policies and procedures that:

●

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

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 the company are being made only in accordance with authorization of management and directors of the Company; and

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.

Under the supervision and with the participation of our management, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of
December 31, 2021 based upon the criteria set forth in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the
Treadway Commission (“COSO”). Based on our assessment we concluded that, as of December 31, 2021, our internal control over financial reporting was effective based
on those criteria.

Changes in Internal Control Over Financial Reporting

During the year ended December 31, 2021, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.

Item 9B. Other Information

None.

Item 9C. Disclosures Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Directors

Set forth below are the names and committee assignments of the persons who constitute our Board of Directors.

Name
Amit Bhalla
Alexander L. Cappello
John K. Scott, Jr.
Malcolm G. Witter

Director Qualifications

Age
47
66
67
68

Committee(s)
Audit
Audit; Compensation, Nominating and Governance
Compensation, Nominating and Governance
Audit (Chair); Compensation, Nominating and Governance (Chair)

The Board of Directors believes that individuals who serve on the Board should have demonstrated notable or significant achievements in their respective field; should
possess the requisite intelligence, education and experience to make a significant contribution to the Board and bring a range of skills, diverse perspectives and backgrounds
to its deliberations; and should have the highest ethical standards, a strong sense of professionalism and intense dedication to serving the interests of our stockholders. The
following are qualifications, experience and skills for Board members which are important to our business and its future:

● General Management. Directors who have served in senior leadership positions bring experience and perspective in analyzing, shaping, and overseeing the

execution of important operational and policy issues at a senior level. These directors’ insights and guidance, and their ability to assess and respond to situations
encountered in serving on our Board of Directors, are enhanced by their leadership experience developed at businesses or organizations that operated on a global
scale, faced significant competition, or involved other evolving business models.

●

Industry Knowledge. Because we are a pharmaceutical development company, education or experience in our industry, including medicine, pharmaceutical
development, marketing, distribution, or the regulatory environment, is important because such experience assists our directors in understanding and advising our
Company.

Business Development/Strategic Planning. Directors who have a background in strategic planning, business development, strategic alliances, mergers and
acquisitions, and teamwork and process improvement provide insight into developing and implementing strategies for growing our business.

Finance/Accounting/Control. Knowledge of capital markets, capital structure, financial control, audit, reporting, financial planning, and forecasting are important
qualities of our directors because such qualities assist in understanding, advising, and overseeing our Company’s capital structure, financing and investing
activities, financial reporting, and internal control of such activities.

Board Experience/Governance. Directors who have served on other public company boards can offer advice and insights with regard to the dynamics and operation
of a board of directors, the relations of a board to the chief executive officer and other management personnel, the importance of particular agenda and oversight
matters, and oversight of a changing mix of strategic, operational, and compliance-related matters.

Biographical Information

Set forth below is current biographical information about our directors, including the qualifications, experience and skills that make them suitable for service as a director.
Each listed director’s respective experience and qualifications described below led the Compensation, Nominating and Governance (“CNG”) Committee of our Board of
Directors to conclude that such director is qualified to serve as a member of our Board of Directors.

Directors whose terms continue until the 2022 Annual Meeting:

Amit Bhalla has served as a director of Navidea since May 2021. Mr. Bhalla has served as the Chief Financial Officer of Infinity BiologiX, LLC since November 2020.
From 2015 to 2020, he served as Senior Healthcare Analyst for Lord, Abbett & Co as well as Investment Council Member for Lord, Abbett’s Healthcare Fund. Prior to that,
Mr. Bhalla served in various roles including Vice President-Global Strategy & Development for Becton, Dickinson and Company, Director-Equity Research-Life Science
Tools/Medical Technology for Citi, Vice President-Equity Research-Emerging Medical Technology and Analyst-Equity Research-Specialty Pharmaceuticals for Morgan
Stanley, and Associate-Technical Operations/Research & Development for Johnson & Johnson’s Ortho-McNeil Pharmaceutical. Mr. Bhalla received his B.S. in biology
from Cornell University and his M.B.A. from Tepper School of Business at Carnegie Mellon University.

Alexander L. Cappello has served as a director of Navidea since July 2021. Mr. Cappello has led several public and private companies over the past 48 years, including
Cappello Global, LLC, a global investment bank, whose principals have transacted business in over 55 countries. He is also a director of The Cheesecake Factory
Incorporated (Nasdaq), lead director of Virco Manufacturing Corporation (Nasdaq), lead director of The Agnew Companies and Caldera Medical Corp. Mr. Cappello is a
director of RAND Corporation’s Center for Middle East Public Policy, the Center for Global Risk and Security, and the RAND-Russia Forum. Mr. Cappello is a former
Chairman of Intelligent Energy, PLC (LSE), Inter-Tel (Nasdaq), and Geothermal Resources Intl. (AMEX), and a former director of Nano Financial Holdings and California
Republic Bank. He is also a former advisor to the board of Gusmer Enterprises and former trustee of University of Southern California, and trustee and chairman of the
investment committee of City of Hope. Mr. Cappello received a B.S. in management and finance from the Marshall School of Business at the University of Southern
California.

Director whose term continues until the 2023 Annual Meeting:

John K. Scott, Jr. has served as a director of Navidea since July 2021. Mr. Scott has served as the owner and manager of PCS, Inc. since 1997, where he is responsible for
directing the acquisition, financing, sales and operations for land entitlement and development for privately owned condominium, apartment, hotel, single family and retail
projects in California, Colorado and Texas. He has also served as the general partner of NJD, Ltd., a Texas limited partnership, since 1997 and as the managing member of
Merging Interests, Inc. since 1980. Mr. Scott also has extensive experience in conducting due diligence, feasibility studies, financial analysis, cost estimates and transaction
negotiations for the purchase, lease, development, marketing and sale of projects and properties. Mr. Scott earned a B.S. in agricultural economics with an emphasis on
construction management and real estate from the University of Wisconsin.

Director whose term continues until the 2024 Annual Meeting:

Malcolm G. Witter has served as a director of Navidea since December 2020. Mr. Witter has over 40 years of operational and investment leadership experience, serving as
investment banker, Chief Financial Officer, and advisor to many companies and private organizations. From 2016 to 2021, he served as the Corporate Development
Regional Manager for USI Insurance Services (“USI”) where he was responsible for acquiring independent insurance agencies. From 2010 to 2016, Mr. Witter was Business
Development Manager for Kibble & Prentice, Inc., a USI company. Prior to USI, Mr. Witter held roles at multiple financial institutions including Kibble & Prentice
Financial, Compass Capital Fund Management, Bear, Stearns & Co., and Dean Witter Reynolds. Mr. Witter is a director of the Dean Witter Foundation and an Advisor to
American Research Capital. Mr. Witter received his M.B.A. from the Stanford Graduate School of Business.

Information About our Executive Officers

The following individuals are executive officers of Navidea and serve in the positions indicated below:

Name
Michael S. Rosol, Ph.D.
Michel Mikhail, Ph.D.
Erika L. Eves

Age
53
67
52

Position
Chief Medical Officer
Chief Regulatory Officer
Vice President, Finance and Administration

Michael S. Rosol, Ph.D., has served as Chief Medical Officer of Navidea since December 2018. Prior to joining Navidea, Dr. Rosol served as Associate Director in the
Clinical and Translational Imaging Group at Novartis Institutes for BioMedical Research from November 2016 to December 2018. Before that, he held positions as Senior
Director of Business Development at Elucid Bioimaging, Inc. where he drove adoption of its Computer-Aided Phenotyping applications from May 2016 to November 2016,
and as Chief Scientific Officer of MediLumine, Inc. from October 2015 to May 2016. Prior to those roles, he was the Head of the Translational Imaging Group at Novartis
Pharmaceuticals Group from October 2012 to March 2015. His training and experience lie in the fields of biophysics, physiology, and biological/medical imaging, and his
work has focused on cardiovascular imaging, preclinical and clinical imaging instrumentation and applications, animal models of human disease, pathophysiology,
biomarkers, and imaging in toxicological and clinical trials. He has also served as faculty in Radiology and Director of two academic research imaging facilities. Dr. Rosol
holds a Ph.D. from Boston University School of Medicine.

Michel Mikhail, Ph.D. has served as Chief Regulatory Officer of Navidea since October 2021. Dr. Mikhail has more than 30 years of experience in the pharmaceutical
industry and a track record of achievement in R&D and international regulatory affairs at large multinational research-based pharmaceutical companies. Prior to joining
Navidea, Dr. Mikhail worked in global regulatory consulting for various pharmaceutical and biotech companies from January 2016 through September 2021. Before acting
as a consultant, Dr. Mikhail served in senior regulatory executive roles at BioNTech AG, Fresenius Kabi, Ranbaxy Europe Ltd. (now SunPharma), Pharmacia & Upjohn
(now Pfizer), Knoll AG (now Abbvie), SmithKline Beecham (now GlaxoSmithKline), and Boehringer Ingelheim. Dr. Mikhail is a global expert in Regulatory Affairs
dealing with the U.S. Food and Drug Administration (“US-FDA”), the European Medicines Agency (“EU-EMA”) as well as national agencies in Europe, Japan’s
Pharmaceuticals and Medical Devices Agency, China’s National Medical Products Administration, among other regulatory agencies worldwide. Dr. Mikhail holds a Ph.D.
from the University of Paris and a D.V.M. from the University of Hannover.

Erika L. Eves has served as Vice President, Finance and Administration of Navidea since November 2020. Ms. Eves has served the Company in several roles of increasing
responsibility beginning in March 1992, including Accounting Clerk, Staff Accountant, Senior Accountant, Controller and Director of Finance and Administration. In
addition to directing the financial operations of the Company, she is responsible for internal and external financial reporting including all SEC filings, maintaining a system
of internal controls, and managing banking and vendor relationships. Ms. Eves earned a B.S.B.A. in Accounting from The Ohio State University and is a Certified Public
Accountant.

Delinquent Section 16 Filings

Section 16(a) of the Exchange Act requires our officers and directors, and greater than 10% stockholders, to file reports of ownership and changes in ownership of our
securities with the SEC. Copies of the reports are required by SEC regulation to be furnished to us. Based on our review of these reports and written representations from
reporting persons, we believe that all reporting persons complied with all filing requirements during the fiscal year ended December 31, 2021, except for: (i) former
directors Claudine Bruck, Ph.D., Thomas F. Farb, S. Kathryn Rouan, Ph.D. and Agnieszka Winkler, who each had one late Form 4 filing related to stock issued in partial
payment of director fees, (ii) Messrs. Cappello, Scott and Witter, who each had one late Form 4 filing related to stock issued in partial payment of director fees, (iii) Mr.
Bhalla, who had two late Form 4 filings related to stock issued in partial payment of director fees, (iv) Dr. Mikhail, who had one late Form 4 filing related to a stock option
award and (v) Mr. Farb and Ms. Winkler, who each had one late Form 3 filing due to delays in obtaining SEC filer codes.

Code of Business Conduct and Ethics

We have adopted a code of business conduct and ethics that applies to our directors, officers and all employees. The code of business conduct and ethics is posted on our
website at www.navidea.com. The code of business conduct and ethics may also be obtained free of charge by writing to Navidea Biopharmaceuticals, Inc., Attn: Chief
Financial Officer, 4995 Bradenton Avenue, Suite 240, Dublin, Ohio 43017.

Corporate Governance

Our Board of Directors is responsible for establishing broad corporate policies and reviewing our overall performance rather than day-to-day operations. The primary
responsibility of our Board is to oversee the management of Navidea and, in doing so, serve the best interests of the Company and our stockholders. Our Board selects,
evaluates and provides for the succession of executive officers and, subject to stockholder election, directors. It reviews and approves corporate objectives and strategies, and
evaluates significant policies and proposed major commitments of corporate resources. Our Board also participates in decisions that have a potential major economic impact
on the Company. Management keeps our directors informed of Company activity through regular communication, including written reports and presentations at Board and
committee meetings.

Board of Directors Meetings

Our Board of Directors held a total of 29 meetings in the fiscal year ended December 31, 2021, and each of the directors attended at least 75 percent of the aggregate number
of meetings of the Board of Directors and committees (if any) on which he or she served. It is our policy that all directors attend the Annual Meeting of Stockholders.
However, conflicts and unforeseen events may prevent the attendance of a director, or directors. Due to the public health impact of the ongoing COVID-19 pandemic, the
2021 Annual Meeting of Stockholders was held as a virtual meeting. All then-current members of our Board of Directors attended the 2021 Annual Meeting of Stockholders
either in person or via webcast.

The Board of Directors maintains the following committees to assist it in its oversight responsibilities. The current membership of each committee is indicated in the list of
directors set forth under “Board of Directors” above.

Audit Committee

The Audit Committee of the Board of Directors selects our independent registered public accounting firm with whom the Audit Committee reviews the scope of audit and
non-audit assignments and related fees, the accounting principles that we use in financial reporting, and the adequacy of our internal control procedures. The current
members of our Audit Committee are Malcolm G. Witter (Chair), Amit Bhalla and Alexander L. Cappello, each of whom is “independent” under Section 803A of the NYSE
American Company Guide, and each of whom meets the requirements of an “audit committee financial expert” as set forth in Section 407(d)(5) of Regulation S-K
promulgated by the SEC. The Audit Committee held four meetings in the fiscal year ended December 31, 2021. The Board of Directors adopted a written Amended and
Restated Audit Committee Charter on April 30, 2004. A copy of the Amended and Restated Audit Committee Charter is posted on the Company’s website at
www.navidea.com.

Compensation, Nominating and Governance Committee

The CNG Committee of the Board of Directors discharges the Board’s responsibilities relating to the compensation of the Company's directors, executive officers and
associates, identifies and recommends to the Board of Directors nominees for election to the Board, and assists the Board in the implementation of sound corporate
governance principles and practices. With respect to its compensation functions, the CNG Committee evaluates and approves executive officer compensation and reviews
and makes recommendations to the Board with respect to director compensation, including incentive or equity-based compensation plans; reviews and evaluates any
discussion and analysis of executive officer and director compensation included in the Company’s annual report or proxy statement, and prepares and approves any report on
executive officer and director compensation for inclusion in the Company’s annual report or proxy statement required by applicable rules and regulations; and monitors and
evaluates, at the Committee’s discretion, matters relating to the compensation and benefits structure of the Company and such other domestic and foreign subsidiaries or
affiliates, as it deems appropriate. The members of our CNG Committee are Malcolm G. Witter (Chair), Alexander L. Cappello and John K. Scott, Jr. The CNG Committee
held 11 meetings in the fiscal year ended December 31, 2021. The Board of Directors adopted a written Compensation, Nominating and Governance Committee Charter on
February 26, 2009. A copy of the Compensation, Nominating and Governance Committee Charter is posted on the Company’s website at www.navidea.com.

Board Oversight Committee

The Board Oversight Committee of the Board of Directors provides support and guidance to the Company’s Executive Leadership Committee. In November 2021, following
the resignation of the Company’s former Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, Jed. A. Latkin, our Board of Directors established an
Executive Leadership Committee to lead the Company on an interim basis while its next CEO is identified. The Executive Leadership Committee includes Michael S.
Rosol, Ph.D., our Chief Medical Officer, Erika L. Eves, our Vice President of Finance and Administration and Jeffrey G. Smith, our Vice President of Operations. The
current members of the Board Oversight Committee are Alexander L. Cappello and John K. Scott, Jr.

Item 11. Executive Compensation

Compensation Discussion and Analysis

Overview of Compensation Program. The CNG Committee of the Board of Directors is responsible for establishing and implementing our compensation policies applicable
to senior executives and monitoring our compensation practices. The CNG Committee seeks to maintain compensation plans that are fair, reasonable and competitive. The
CNG Committee is responsible for reviewing and approving senior executive compensation, awards under our cash bonus plan, and awards under our equity-based
compensation plans.

Philosophy and Goals of Executive Compensation Plans. The CNG Committee’s philosophy for executive compensation is to:

●

Pay for performance: The CNG Committee believes that our executives should be compensated based upon their ability to achieve specific operational and strategic
results. Therefore, our compensation plans are designed to provide rewards for the individual’s contribution to our performance.

Pay commensurate with other companies categorized as value creators: The CNG Committee has set a goal that the Company should move toward compensation
levels for senior executives that are, at a minimum, at the 40th to 60th percentile for similar executives in the workforce while taking into account current market
conditions and Company performance. This allows us to attract, hire, reward and retain senior executives who formulate and execute our strategic plans and drive
exceptional results.

To assess whether our programs are competitive, the CNG Committee reviews compensation information of peer companies, national data and trends in executive
compensation to help determine the appropriateness of our plans and compensation levels. These reviews, and the CNG Committee’s commitment to pay for performance,
become the basis for the CNG Committee’s decisions on compensation plans and individual executive compensation payments.

The CNG Committee has approved a variety of programs that work together to provide a combination of basic compensation and strong incentives. While it is important for
us to provide certain base level salaries and benefits to remain competitive, the CNG Committee’s objective is to provide compensation plans with incentive opportunities
that motivate and reward executives for consistently achieving superior results. he CNG Committee designs our compensation plans to:

● Reward executives based upon overall company performance, their individual contributions and creation of stockholder value;

●

Encourage executives to make a long-term commitment to our Company; and

● Align executive incentive plans with the long-term interests of stockholders.

The CNG Committee reviews senior executive compensation levels at least annually. During the review process, the CNG Committee addresses the following questions:

● Do any existing compensation plans need to be adjusted to reflect changes in competitive practices, different market circumstances or changes to our strategic

initiatives?

●

Should any existing compensation plans be eliminated or new plans be added to the executive compensation programs?

● What are the compensation-related objectives for our compensation plans for the upcoming fiscal year?

● Based upon individual performance, what compensation modifications should be made to provide incentives for senior executives to perform at superior levels?

In addressing these questions, the CNG Committee considers input from management, outside compensation experts and published surveys of compensation levels and
practices.

The CNG Committee does not believe that our compensation policies and practices for our employees give rise to risks that are reasonably likely to have a material adverse
effect on the Company. Our incentive-based compensation goals are generally tied to product development goals (e.g., clinical trial progress or regulatory milestones) or
Company financial goals (e.g., budgeted expense targets or business partnerships). The CNG Committee believes that the existence of these performance incentives creates
a strong motivation for Company employees to contribute towards the achievement of strong, sustainable performance, and believes that the Company has a strong set of
internal controls that minimize the risk that financial performance can be misstated in order to achieve incentive compensation payouts.

In addition to the aforementioned considerations, the CNG Committee also takes into account the outcome of stockholder advisory (“say-on-pay”) votes on the
compensation of our Chief Executive Officer and our next two highest-paid executive officers (the “Named Executive Officers”). At the Annual Meeting of Stockholders
held on September 14, 2021, approximately 79% of our stockholders who cast a ballot voted in favor of the resolution relating to the compensation of our Named Executive
Officers. The CNG Committee believes this vote affirmed our stockholders’ support of the Company’s executive compensation program. The CNG Committee will continue
to consider the results of future say-on-pay votes when making future compensation decisions for the executive officers. The Company currently holds an advisory vote to
approve the compensation of the Company’s Named Executive Officers every two years. The two-year frequency of advisory “say-on-pay” votes will continue until the next
required vote on the frequency of advisory votes on executive compensation at the Company’s Annual Meeting of Stockholders to be held in 2023.

Scope of Authority of the CNG Committee. The Board of Directors has authorized the CNG Committee to establish the compensation programs for all executive officers and
to provide oversight for compliance with our compensation philosophy. Annually, the CNG Committee recommends the compensation for our executive officers, including
objectives and awards under incentive plans. The Chief Executive Officer provides input for the CNG Committee regarding the performance and appropriate compensation
of the other officers. The CNG Committee gives considerable weight to the Chief Executive Officer’s evaluation of the other officers because of his or her direct knowledge
of each officer’s performance and contributions. The CNG Committee also makes recommendations to the Board of Directors on appropriate compensation for the non-
employee directors. In addition to overseeing the compensation of executive officers, the CNG Committee recommends or approves awards under short-term cash incentive
and long-term equity-based compensation plans for all other employees. For more information on the CNG Committee’s role, see the CNG Committee’s charter, which can
be found on our website at www.navidea.com.

Independent Compensation Expertise. The CNG Committee is authorized to periodically retain independent experts to assist in evaluating executive compensation plans and
in setting executive compensation levels. These experts provide information on trends and best practices so the CNG Committee can formulate ongoing plans for executive
compensation. The CNG Committee retained Board Advisory, LLC (“Board Advisory”) as its independent consultant to assist in the determination of the reasonableness and
competitiveness of the compensation levels of its Named Executive Officers and Board of Directors for fiscal 2021. No conflict of interest exists that would prevent Board
Advisory from serving as independent consultant to the CNG Committee.

For fiscal 2021, Board Advisory performed a benchmark compensation review of our key executive positions, including our Chief Executive Officer, Chief Operating
Officer, and Chief Financial Officer, Chief Medical Officer, Chief Business Officer, and our Board of Directors. Board Advisory utilized published survey and proxy
reported data from compensation peers, with market data aged to January 1, 2021, by an annualized rate of 3.0%, the expected pay increase in 2021 for executives in the life
sciences industry.

In evaluating appropriate executive compensation, it is common practice to set targets at a point within the competitive marketplace. The CNG Committee sets its
competitive compensation levels based upon its compensation philosophy. Following completion of the Board Advisory study for 2021, the CNG Committee noted that the
total cash compensation of our Chief Executive Officer, Chief Operating Officer and Chief Financial Officer was between the 50th and 75th percentile for an established peer
group of companies. The CNG Committee also noted that the total cash compensation of our Chief Medical Officer was below the 25th percentile, and the total cash
compensation of our Chief Business Officer was between the 25th and 50th percentile for these positions.

Peer Group Companies. As part of their review, Board Advisory surveyed the compensation levels at specific competitive benchmark companies. With input from
management, Board Advisory chose the peer companies because they are developmental life sciences companies and are similar to Navidea in revenue, invested capital,
market capitalization, and employees. The selected peer group companies have invested capital of less than four times that of Navidea, or approximately $375 million, and
have comparable key executive positions. While the specific plans for these companies may or may not be used, it is helpful to review their compensation data to provide
benchmarks for the overall compensation levels that will be used to attract, hire, retain and motivate our executives.

As competitors and similarly situated companies that compete for the same executive talent, the CNG Committee determined that the following peer group companies most
closely matched the responsibilities and requirements of our executives:

Actinium Pharmaceuticals, Inc.
Adaptimmune Therapeutics
Advaxis
aTyr Pharma Inc.
Avid Bioservices, Inc.
Bellicum Pharmaceuticals, Inc.
Calithera Biosciences, Inc.
CEL-SCI
Checkpoint Therapeutics, Inc.
ChemoCentryx
Cidara Therapeutics, Inc.
ContraFect Corporation
Corvus Pharmaceuticals

Curis
CytoDyn Inc.
CytomX Therapeutics, Inc.
Fate Therapeutics
Fortress Biotech
Genocea Biosciences, Inc.
GeoVax Labs, Inc.
Idera Pharmaceuticals
Inovio Pharmaceuticals
Lineage Cell Therapeutics, Inc.
Lumos Pharma, Inc.
Marker Therapeutics, Inc.

NanoViricides
Neoleukin Therapeutics, Inc.
Northwest Biotherapeutics, Inc.
OncoSec Medical Incorporated
PDL Biopharma
Phio Pharmaceuticals Corp.
Prothena
Regulus Therapeutics, Inc.
Selecta Biosciences, Inc.
Sorrento Therapeutics, Inc.
T2 Biosystems, Inc.
Ziopharm Oncology

Board Advisory used the publicly available compensation information for these companies to analyze our competitive position in the industry. Base salaries and short-term
and long-term incentive plans of the executives of these companies were reviewed to provide background and perspective in analyzing the compensation levels for our
executives.

Specific Elements of Executive Compensation

Base Salary. Base salaries for senior executives are set using the CNG Committee’s philosophy that compensation should be competitive and based upon performance.
Executives should expect that their base salaries, coupled with a cash bonus award, would provide them the opportunity to be compensated at or above the competitive
market at the 40th to 60th percentile.

Based on competitive reviews of similar positions, industry salary trends, overall company results and individual performance, salary increases may be approved from time
to time. The CNG Committee reviews and approves base salaries of all executive officers. In setting specific base salaries for fiscal 2021, the CNG Committee considered
published proxy data for similar positions at peer group companies.

The following table shows the changes in base salaries for the Named Executive Officers that were approved for fiscal 2021 compared to the approved salaries for fiscal
2020:

Named Executive Officer
Michael S. Rosol, Ph.D. (b)
Michel Mikhail, Ph.D. (c)
Erika L. Eves
Jed A. Latkin (d)
Joel H. Kaufman (e)

Fiscal 2021
Base Salary(a)

Fiscal 2020
Base Salary(a)

Change

240,000 $
225,000
156,200
—
—

225,000
—
156,200
490,000
230,000

6.7%
—%
—%
—%
—%

(a) The amount shown for fiscal 2021 and 2020 is the approved annual salary of the Named Executive Officer in effect at the end of each year. The actual amount paid

to the Named Executive Officer during fiscal 2021 and 2020 is shown under “Salary” in the Summary Compensation table below.

(b) Dr. Rosol received an increase in base salary effective March 1, 2021.
(c) Dr. Mikhail commenced employment with the Company effective October 1, 2021.
(d) Mr. Latkin separated from the Company effective October 24, 2021.
(e) Mr. Kaufman separated from the Company effective May 7, 2021.

The following table shows the base salaries for the Named Executive Officers that were approved for fiscal 2022 compared to the approved salaries for fiscal 2021:

Named Executive Officer
Michael S. Rosol, Ph.D.
Michel Mikhail, Ph.D.
Erika L. Eves

Fiscal 2022
Base Salary

Fiscal 2021
Base Salary

Change

240,000 $
225,000
156,200

240,000
225,000
156,200

—%
—%
—%

Short-Term Incentive Compensation. Our executive officers, along with our other employees, are eligible to participate in our annual cash bonus program, which has four
primary objectives:

● Attract, retain and motivate top-quality executives who can add significant value to the Company;

● Create an incentive compensation opportunity that is an integral part of the employee’s total compensation program;

● Reward participants’ contributions to the achievement of our business results; and

●

Provide an incentive for individuals to achieve corporate objectives that are tied to our strategic goals.

The cash bonus compensation plan provides each participant with an opportunity to receive an annual cash bonus based on our Company’s performance during the fiscal
year. Cash bonus targets for senior executives are determined as a percentage of base salary, based in part on published proxy data for similar positions at peer group
companies. The following are the key provisions of the cash bonus compensation plan for our Named Executive Officers:

●

The plan is administered by the CNG Committee, which has the power and authority to establish, adjust, pay or decline to pay the cash bonus for each participant,
including the power and authority to increase or decrease the cash bonus otherwise payable to a participant. However, the Committee does not have the power to
increase, or make adjustments that would have the effect of increasing, the cash bonus otherwise payable to any executive officer.

●

The CNG Committee is responsible for specifying the terms and conditions for earning cash bonuses, including establishing specific performance objectives.

● As soon as reasonably practicable after the end of each fiscal year, the CNG Committee determines whether and to what extent each specified business performance

objective has been achieved and the amount of the cash bonus to be paid to each participant.

For fiscal 2021, the cash bonus for each executive officer was a function of the designated target bonus amount and certain business performance objectives, weighted as a
percentage of the total target amount. The business performance objectives established for fiscal 2021 were as follows:

● Achievement of various clinical development goals, subject to a maximum 50% reduction of bonus if not achieved, including:

o Advance commercialization programs in diagnostic and therapeutic indications;

o Achieve specified milestones in clinical trials for RA imaging indications;

o Advance dose-optimization feasibility study in atherosclerosis;

Complete work on Ga[68] in atherosclerotic plaque grant; and

o Achieve specified milestones in pre-clinical therapeutic activities.

● Achievement of various business development goals, subject to a maximum 35% reduction of bonus if not achieved, including:

Finalize terms of an RA commercialization partnership agreement with an established pharma company;

o Qualify a new drug substance manufacturer;

Select and initiate qualification of a new drug product manufacturer;

Establish a partnership or distribution network for Lymphoseek in the EU; and

o Obtain regulatory approval for Lymphoseek in India.

● Achievement of various financial management goals, subject to a maximum 10% reduction of bonus if not achieved, including:

o Maintain compliance with NYSE American listing standards;

o Maintain a clean audit with no going concern language; and

o Adhere to the 2021 corporate budget to within 5% of budgeted operating expenses.

● Achievement of various intellectual property goals, subject to a maximum 5% reduction of bonus if not achieved, including:

File one specified provisional patent.

For fiscal 2021, the Board of Directors determined the cash bonus targets for Named Executive Officers as follows:

Named Executive Officer
Michael S. Rosol, Ph.D.
Michel Mikhail, Ph.D.
Erika L. Eves
Jed A. Latkin
Joel H. Kaufman

Target Cash Bonus
(% of Salary)

Target Cash Bonus
($ Amount) (a)

35.0% $
35.0%
25.0%
75.0%
35.0%

84,000
78,750
39,050
367,500
80,500

(a) Cash bonus awards related to fiscal 2021 were pro-rated based on the weighted average amount of base salary and time served during 2021. Dr. Rosol received an

increase in his base salary effective March 1, 2021, and Dr. Mikhail commenced employment with the Company effective October 1, 2021.

On January 5, 2022, the Board of Directors determined the amounts to be awarded as 2021 bonuses to all employees, including the Named Executive Officers. The Board of
Directors recognized the achievement of approximately 76% of 2021 bonus goals and thus awarded bonuses at 76% of target amounts for all employees, including the
Named Executive Officers, to be paid in cash 50% immediately and 50% following successful fundraising. Employees who separated from the Company during 2021,
including Mr. Latkin and Mr. Kaufman, did not receive a cash bonus award related to fiscal 2021.

Long-Term Incentive Compensation. All Company employees are eligible to receive equity awards in the form of stock options or restricted stock. Equity instruments
awarded under the Company’s equity-based compensation plan are based on the following criteria:

● Analysis of competitive information for comparable positions;

●

Evaluation of the value added to the Company by hiring or retaining specific employees; and

Each employee’s long-term potential contributions to our Company.

Although equity awards may be made at any time as determined by the CNG Committee, they are generally made to all full-time employees once per year, or on the
recipient’s hire date in the case of new-hire grants.

Equity-based compensation is an effective method to align the interests of stockholders and management and focus management’s attention on long-term results. When
awarding equity-based compensation the CNG Committee considers the impact the participant can have on our overall performance, strategic direction, financial results and
stockholder value. Therefore, equity awards are primarily based upon the participant’s position in the organization, competitive necessity and individual performance. Stock
option awards have vesting schedules over several years to promote long-term performance and retention of the recipient, and restricted stock awards may include specific
performance criteria for vesting or vest over a specified period of time.

In February 2021, the Company awarded options to purchase 25,000, 12,500, 100,000 and 25,000 shares of Common Stock to Dr. Rosol, Ms. Eves, Mr. Latkin and Mr.
Kaufman, respectively, as part of their annual compensation packages. The options have an exercise price of $2.56 per share, and vest as to one-third of the options on each
of the first three anniversaries of the date of grant. The options will expire on the tenth anniversary of the date of grant.

In November 2021, the Company awarded options to purchase 75,000 shares of Common Stock to Dr. Mikhail in connection with his employment as Chief Regulatory
Officer. The options have an exercise price of $1.37 per share, and vest as to one-third of the options on each of the first three anniversaries of the date of grant. The options
will expire on the tenth anniversary of the date of grant.

In December 2021, the Company awarded options to purchase 100,000 shares of Common Stock to Dr. Rosol. The options have an exercise price of $1.08 per share, and
vest quarterly over four years beginning on April 1, 2022. The options will expire on the tenth anniversary of the date of grant.

Other Benefits and Perquisites. The Named Executive Officers are generally eligible to participate in other benefit plans on the same terms as other employees. These plans
include medical, dental, vision, disability and life insurance benefits, and our 401(k) retirement savings plan (the “401(k) Plan”).

Our paid time off (“PTO”) policy allows employees to carry up to 40 hours of unused PTO time forward to the next fiscal year. Any unused PTO time in excess of the
amount eligible for rollover is generally forfeited.

We pay group life insurance premiums on behalf of all employees, including the Named Executive Officers. The benefit provides life insurance coverage at two times the
employee’s annual salary plus $10,000, up to a maximum of $400,000.

We also pay group long-term disability insurance premiums on behalf of all employees, including the Named Executive Officers. The benefit provides long-term disability
insurance coverage at 60% of the employee’s annual salary, up to a maximum of $10,000 per month, beginning 180 days after the date of disability and continuing through
age 65.

401(k) Retirement Plan. All employees are given an opportunity to participate in our 401(k) Plan following a new-hire waiting period. Under the 401(k) Plan, participants
may have pre-tax amounts, or post-tax amounts under a Roth option, withheld from their pay and provides for a discretionary employer matching contribution (currently, a
100% match up to 6% of salary in the form of our Common Stock). Participants may invest their contributions in various fund options, but are prohibited from investing
their contributions in our Common Stock. Participants are immediately vested in both their contributions and Company matching contributions. The 401(k) Plan qualifies
under section 401 of the Internal Revenue Code, which provides that employee and company contributions and income earned on contributions are not taxable to the
employee until withdrawn from the Plan, and that we may deduct our contributions when made.

Employment Agreement and Separation Agreement with Mr. Latkin

Effective July 27, 2020 through October 24, 2021, Mr. Latkin was employed under an employment agreement that provided for an annual base salary of $490,000. For the
fiscal year ending December 31, 2021, the CNG Committee determined that the maximum bonus payment to Mr. Latkin would be $367,500. No bonus was paid to Mr.
Latkin due to his resignation prior to payment of bonuses in 2022.

On November 23, 2021, Mr. Latkin signed a Separation Agreement and General Release (the “Separation Agreement”) in connection with his resignation from his position
as Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, and as a director, on October 24, 2021 (the “Separation Date”). Pursuant to the Separation
Agreement, among other things, the Company agreed to provide Mr. Latkin with certain separation benefits, commencing on the “Effective Date,” defined as the eighth day
after Mr. Latkin signs, without revoking, the Separation Agreement. These separation benefits include continued payment of Mr. Latkin’s base salary of $490,000, less all
relevant taxes and other withholdings, on the following basis: (i) for 12 months, 100% of his base salary, minus an aggregate $24,000 deducted monthly pro rata for
reimbursement of Mr. Latkin’s attorney fees which were paid by the Company, and (ii) for 10 months following the expiration of the first 12-month period, 50% of his base
salary. On the Effective Date, each of Mr. Latkin’s unvested stock options vested, and all of his vested stock options (covering 69,918 shares) and previously unvested
options (covering 333,332 shares) may be exercised by Mr. Latkin on or before the earlier of the fifth anniversary of the Separation Date and the original expiration date. On
the Effective Date, each of Mr. Latkin’s 33,333 outstanding unvested restricted stock units became fully vested, and all of such restricted stock units were settled within
thirty days after the Separation Date, less applicable withholding in shares of common stock. The Company also agreed to reimburse Mr. Latkin for expenses incurred
pursuant to Company policy. For purposes of assistance provided in certain litigation matters, the Company agreed to pay Mr. Latkin $250 per hour, subject to certain
limitations. Mr. Latkin will also be entitled to receive, subject to his timely execution and non-revocation of the Separation Agreement, a payment equal to up to one percent
of total capital raised during the twenty-two months following the Separation Date through one of two investment banking firms introduced to the Company by Mr. Latkin,
less relevant taxes and withholdings and subject to certain payment terms. In addition, Mr. Latkin and the Company generally released each other from any and all claims
each may have against the other.

Report of Compensation, Nominating and Governance Committee

The CNG Committee is responsible for establishing, reviewing and approving the Company’s compensation philosophy and policies, reviewing and making
recommendations to the Board regarding forms of compensation provided to the Company’s directors and officers, reviewing and determining cash and equity awards for the
Company’s officers and other employees, and administering the Company’s equity incentive plans.

In this context, the CNG Committee has reviewed and discussed with management the Compensation Discussion and Analysis included in this annual report on Form 10-K.
In reliance on the review and discussions referred to above, the CNG Committee recommended to the Board, and the Board has approved, that the Compensation Discussion
and Analysis be included in this annual report on Form 10-K for filing with the SEC.

The Compensation, Nominating
and Governance Committee

Malcolm G. Witter (Chair)
Alexander L. Cappello
John K. Scott, Jr.

Compensation, Nominating and Governance Committee Interlocks and Insider Participation

None of the members of our CNG Committee during the past year was an officer or employee of the Company. None of our executive officers currently serves, or in the past
year served, as a member of a compensation committee (or other committee serving an equivalent function) or director of any entity that has one or more executive officers
serving on our CNG Committee or our Board of Directors.

No director who served on the CNG Committee during 2021 had any relationships requiring disclosure by the Company under the SEC’s rules requiring disclosure of
certain relationships and related-party transactions. None of the Company’s executive officers served as a director or a member of a compensation committee (or other
committee serving an equivalent function) of any other entity, the executive officers of which served as a director of the Company or member of the CNG Committee during
2021.

Summary Compensation

The following table sets forth certain information concerning the annual and long-term compensation of our Named Executive Officers for the last two fiscal years. The
compensation of our former Chief Executive Officer and former Chief Business Officer are also included.

Summary Compensation Table for Fiscal 2021

Named Executive Officer
Michael S. Rosol, Ph.D. (d)
Chief Medical Officer
(Principal Executive Officer)

Michel Mikhail, Ph.D. (e)
Chief Regulatory Officer

Erika L. Eves (f)
Vice President,
Finance & Administration

Jed A. Latkin (g)
Former Chief Executive Officer,
Chief Operating Officer
and Chief Financial Officer

Joel H. Kaufman (h)
Former Chief Business Officer

Year
2021
2020

2021
2020

Salary

263,526 $
223,333

56,250 $
—

171,072 $
147,325

(a)
Stock
Awards

(a)
Option
Awards

(b)
Non-Equity
Incentive Plan
Compensation

Compensation

— $
—

133,037 $
19,118

63,057 $
54,710

Total
Compensation
469,351
302,570

9,731 $
5,409

— $
—

81,580 $
—

23,481 $
4,588

15,053 $
—

29,614 $
21,042

167 $
—

12,563 $
5,273

153,050
—

236,730
178,228

2021
2020

408,333 $
481,511

— $
163,450

187,849 $
321,615

— $
252,775

750,908 $
5,700

1,347,090
1,225,051

2021
2020

81,458 $
226,042

— $
—

46,962 $
39,600

— $
55,381

18,845 $
7,324

147,265
328,347

(a) Amount represents the aggregate grant date fair value in the year granted in accordance with FASB ASC Topic 718. Assumptions made in the valuation of these

awards are disclosed in Note 1(e) of the Notes to the Consolidated Financial Statements in this Form 10-K.

(b) Amount represents the total non-equity incentive plan amounts which have been approved by the Board of Directors as of the date of this filing, and are disclosed

for the year in which they were earned (i.e., the year to which the service relates).

(c) Amount represents additional compensation as disclosed in the All Other Compensation Table below.
(d) Dr. Rosol’s salary for the fiscal year ended December 31, 2021 includes an additional $26,026 for his service on the Executive Leadership Committee following

Mr. Latkin’s separation from the Company.

(e) Dr. Mikhail commenced employment with the Company effective October 1, 2021.
(f) Ms. Eves’s salary for the fiscal year ended December 31, 2021 includes an additional $14,872 for her service on the Executive Leadership Committee following

Mr. Latkin’s separation from the Company.

(g) Mr. Latkin separated from the Company effective October 24, 2021.
(h) Mr. Kaufman separated from the Company effective May 7, 2021.

All Other Compensation

The following table describes each component of the amounts shown in the “All Other Compensation” column in the Summary Compensation Table above.

All Other Compensation Table for Fiscal 2021

Named Executive Officer
Michael S. Rosol, Ph.D.
Chief Medical Officer
(Principal Executive Officer)

Michel Mikhail, Ph.D. (d)
Chief Regulatory Officer

Erika L. Eves
Vice President,
Finance & Administration

Jed A. Latkin (e)
Former Chief Executive Officer,
Chief Operating Officer and
Chief Financial Officer

Joel H. Kaufman (f)
Former Chief Business Officer

Severance

(a)
Unused Paid
Time Off

(b)
Employer
Matching
Contribution
to 401(k) Plan

— $
—

8,731 $
4,409

— $
—

11,563 $
3,315

Total
All Other
Compensation
9,731
5,409

1,000 $
1,000

167 $
—

1,000 $
1,958

167
—

12,563
5,273

694,167 $
—

39,341 $
—

17,400 $
5,700

— $
—

750,908
5,700

Year
2021
2020

2021
2020

— $
—

11,795 $
—

6,300 $
5,324

750 $
2,000

18,845
7,324

(a) Amount represents payment for unused Paid Time Off as of the Named Executive Officer’s date of separation from the Company.
(b) Amount represents the value of the common stock accrued for contribution to the Named Executive Officer’s account in our 401(k) Plan as calculated on a

quarterly basis.

(c) Amount represents employer contributions to the Named Executive Officer’s Health Savings Account.
(d) Dr. Mikhail commenced employment with the Company effective October 1, 2021.
(e) Mr. Latkin separated from the Company effective October 24, 2021. Amount includes all amounts paid or accrued, including payment of Mr. Latkin’s attorney

fees. Amount excludes the value of any accelerated vesting of his stock options and restricted stock units. Additional information regarding Mr. Latkin’s severance
benefits is disclosed under “Employment Agreement and Separation Agreement with Mr. Latkin.”

(f) Mr. Kaufman separated from the Company effective May 7, 2021.

Tax Consequences

The Tax Cuts and Jobs Act, which was enacted on December 22, 2017, included a number of significant changes to Section 162(m) of the Internal Revenue Code, such as
the repeal of the qualified performance-based compensation exemption and the expansion of the definition of “covered employees” (for example, by including the chief
financial officer and certain former Named Executive Officers as covered employees). As a result of these changes, except as otherwise provided in the transition relief
provisions of the Tax Cuts and Jobs Act, compensation paid to any of our covered employees generally will not be deductible in 2021 or future years, to the extent that it
exceeds $1 million.

Grants of Plan-Based Awards

The following table sets forth certain information about plan-based awards that we made to the Named Executive Officers during fiscal 2021. For information about the
plans under which these awards were granted, see the discussion under “Short-Term Incentive Compensation” and “Long-Term Incentive Compensation” in the
“Compensation Discussion and Analysis” section above.

Grants of Plan-Based Awards Table for Fiscal 2021

Estimated Future
Payouts Under
Non-Equity Incentive
Plan Awards

Estimated Future
Payouts Under
Equity Incentive
Plan Awards

Grant
Date

Threshold Maximum Threshold Maximum

Named Executive Officer
Michael S. Rosol, Ph.D.

N/A $
2/15/2021
12/27/2021

— $
—
—

84,000
—
—

Michel Mikhail, Ph.D.

N/A
11/15/2021

— $
—

78,750
—

Erika L. Eves

Jed A. Latkin (d)

Joel H. Kaufman (e)

N/A $
2/15/2021

— $
—

39,050
—

— $
—

367,500
—

— $
—

80,500
—

—
—
—

—
—

—
—
—

—
—

All Other
Stock
Awards:
Number
of Shares

All Other
Option
Awards:
Number of
Securities
Underlying

Grant
Date
Fair Value
of Stock
and

Option

Exercise
Price of
Option

of Stock Options
—
—
—

— $
25,000
100,000

Awards

— $
2.56
1.08

— (a)
46,962 (b)
86,074 (c)

—
—

— $
75,000

— $
1.37

— (a)
81,579 (b)

— $
12,500

— $
2.56

— (a)
23,481 (b)

— $
100,000

— $
2.56

— (a)
187,849 (b)

— $
25,000

— $
2.56

— (a)
46,962 (b)

(a) The threshold amount reflects the possibility that no cash bonus awards will be payable. The maximum amount reflects the cash bonus awards payable if the Board
of Directors, in its discretion, awards the maximum cash bonus. The cash bonuses awarded related to fiscal 2021 were pro-rated based on the weighted average
amount of base salary and time served during 2021.

(b) These stock options vest as to one-third of the options on each of the first three anniversaries of the date of grant, and expire on the tenth anniversary of the date of

grant.

(c) These stock options vest quarterly over four years beginning on April 1, 2022, and expire on the tenth anniversary of the date of grant.
(d) Mr. Latkin separated from the Company effective October 24, 2021. In accordance with the terms of Mr. Latkin’s separation agreement, all of Mr. Latkin’s
unvested stock options vested on December 1, 2021 and will expire on the earlier of the expiration of the original ten-year term or October 24, 2026.
(e) Mr. Kaufman separated from the Company effective May 7, 2021. All of Mr. Kaufman’s unvested stock options were forfeited on the date of separation.

Outstanding Equity Awards

The following table presents certain information concerning outstanding equity awards held by the Named Executive Officers as of December 31, 2021.

Outstanding Equity Awards Table at Fiscal 2021 Year-End

Option Awards

Stock Awards

Number of Securities
Underlying Unexercised
Options (#)

Exercisable Unexercisable

6,250
8,333
—
—

— $
16,667
25,000
100,000

Option
Exercise
Price

Option
Expiration
Date
1/2/2029
7.60
1.06
2/6/2030
2.56 2/15/2031
1.08 12/27/2031

Note
(j)
(m)
(p)
(s)

—

75,000 $

1.37 11/15/2031

(r)

Market
Value of
Shares of
Stock
that
Have
Not
Vested

Number of
Shares of
Stock that
Have Not
Vested

Equity Incentive
Plan Awards

Number of
Unearned
Shares

Market
Value
of Unearned
Shares

Note

Named Executive
Officer
Michael S. Rosol,
Ph.D.

Michel Mikhail,
Ph.D.

Erika L. Eves

Jed A. Latkin

500
625
625
625
1,000
1,200
1,600
2,000
—

2,250
1,000
16,667
16,667
16,666
16,667
16,667
16,666
100,000
100,000
100,000

— $
—
—
—
—
—
800
4,000
12,500

— $
—
—
—
—
—
—
—
—
—
—

— $

65.60 2/17/2022
61.60 2/15/2023
35.40 1/28/2024
33.00 3/26/2025
10.20 4/25/2027
7.20 2/20/2028
2/7/2029
3.00
1.06
2/6/2030
2.56 2/15/2031

30.00 4/20/2026
20.00 10/14/2026
13.00 10/26/2026
15.00 10/26/2026
20.00 10/26/2026
3.00 10/26/2026
6.00 10/26/2026
10.00 10/26/2026
1.06 10/26/2026
4.70 10/26/2026
2.56 10/26/2026

—

(a)
(b)
(c)
(d)
(g)
(i)
(k)
(m)
(p)

(e)
(f)
(h)
(h)
(h)
(l)
(l)
(l)
(n)
(o)
(q)

Joel H. Kaufman

—

(a) Options were granted February 17, 2012 and vested as to one-fourth on each of the first four anniversaries of the date of grant.
(b) Options were granted February 15, 2013 and vested as to one-fourth on each of the first four anniversaries of the date of grant.
(c) Options were granted January 28, 2014 and vested as to one-fourth on each of the first four anniversaries of the date of grant.
(d) Options were granted March 26, 2015 and vested as to one-third on each of the first three anniversaries of the date of grant.
(e) Options were granted April 20, 2016 and vested as to one-sixth on the 20th day of each of the first six months following the date of grant.
(f) Options were granted October 14, 2016 and vested as to one-half on the 20th day of each of the first two months following the date of grant.
(g) Options were granted April 25, 2017 and vested as to one-third on each of the first three anniversaries of the date of grant.
(h) Options were granted May 4, 2017 and vested on December 1, 2021 in accordance with Mr. Latkin’s separation agreement.
(i) Options were granted February 20, 2018 and vested as to one-third on each of the first three anniversaries of the date of grant.
(j) Options were granted January 2, 2019 and vested as to one-third on January 2, 2019, July 2, 2019 and January 2, 2020.
(k) Options were granted February 7, 2019 and vest as to one-third on each of the first three anniversaries of the date of grant.
(l) Options were granted February 7, 2019 and vested on December 1, 2021 in accordance with Mr. Latkin’s separation agreement.
(m) Options were granted February 6, 2020 and vest as to one-third on each of the first three anniversaries of the date of grant.
(n) Options were granted February 6, 2020 and vested as to one-third on the first anniversary of the date of grant and two-thirds on December 1, 2021, in accordance

with Mr. Latkin’s separation agreement.

(o) Options were granted August 14, 2020 and vested as to one-third on July 1, 2021 and two-thirds on December 1, 2021, in accordance with Mr. Latkin’s separation

agreement.

(p) Options were granted February 15, 2021 and vest as to one-third on each of the first three anniversaries of the date of grant.
(q) Options were granted February 15, 2021 and vested on December 1, 2021 in accordance with Mr. Latkin’s separation agreement.
(r) Options were granted November 15, 2021 and vest as to one-third on each of the first three anniversaries of the date of grant.
(s) Options were granted December 27, 2021 and vest quarterly over four years beginning April 1, 2022.

Options Exercised and Stock Vested

The following table presents, with respect to the Named Executive Officers, certain information about option exercises and restricted stock vested during fiscal 2021.

Options Exercised and Stock Vested Table for Fiscal 2021

Named Executive Officer
Michael S. Rosol, Ph.D.
Michel Mikhail, Ph.D.
Erika L. Eves
Jed. A. Latkin
Joel H. Kaufman

Option Awards

Stock Awards

Number of
Shares
Acquired
on Exercise

Value
Realized on
Exercise

Number of
Shares
Acquired
on Vesting

Value
Realized
on
Vesting

—
—
—
—
2,000

—
—
—
—
1,140

— $
—
—
50,000
—

—
—
—

70,950

—

Note

(a)

(a) On July 1, 2021, 16,667 shares of Mr. Latkin’s restricted stock vested in accordance with the terms of the restricted stock award agreement. An additional 33,333

shares of restricted stock vested on December 1, 2021 in accordance with the terms of Mr. Latkin’s separation agreement. Of the shares that vested on December 1,
2021, 14,115 shares were withheld to satisfy Mr. Latkin’s related tax obligation. The value realized on vesting was calculated by multiplying the number shares that
vested by the closing stock price on each of the vesting dates.

Compensation of Non-Employee Directors

From January 1, 2021 through November 15, 2021, each non-employee director received an annual retainer of $50,000. The Chair of the Company’s Board of Directors
received an additional annual retainer of $30,000. Audit and CNG Committee members received an annual retainer of $2,500 for each committee on which they served. The
Chair of the Audit Committee received an additional annual retainer of $7,500, and the Chair of the CNG Committee received an additional annual retainer of $5,000 for
their services in those capacities. Of the retainers earned from April 1, 2021 through November 15, 2021, 50% were paid in cash and 50% were paid in shares of common
stock of the Company, based on the closing market price of the stock at the end of each quarter. Each non-employee director also received 2,500 shares of restricted stock
and 2,500 options to purchase stock at $2.28 per share during 2021 as a part of the Company’s annual stock incentive grants, in accordance with the provisions of the
Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan. The restricted stock and stock options granted will vest on the first anniversary of the date of grant. We also
reimbursed non-employee directors for travel expenses for meetings attended during 2021.

In October 2021, the Board of Directors retained the services of a compensation consultant, F.W. Cook, to evaluate the compensation of the non-employee directors. Based
on the recommendation of F.W. Cook, our Board of Directors has adopted a non-employee director compensation policy, beginning November 16, 2021. Under the policy,
our non-employee directors are eligible to receive the following cash compensation for their services:

●
●
●
●
●
●
●
●

an annual retainer of $42,500 for each Board member;
an additional annual retainer of $50,000 for the Chair of the Board;
an additional annual retainer of $35,000 for the Vice Chair of the Board;
an annual retainer of $10,000 for each Audit Committee member;
an additional annual retainer of $10,000 for the Chair of the Audit Committee;
an annual retainer $7,500 for each CNG Committee member;
an additional annual retainer of $7,500 for the Chair of the CNG Committee; and
an additional annual retainer of $100,000 for each member of the Board Oversight Committee.

In addition, each non-employee director also received an annual retainer of 30,000 shares of unrestricted common stock, which are payable in equal monthly issuances over
12 months, as well as 30,000 shares of restricted stock that will vest as to one-third on each of the first three anniversaries of the date of grant. The policy also provides for
the reimbursement of our non-employee directors for reasonable and documented travel expenses to attend meetings of our Board of Directors and committees of our Board
of Directors.

The aggregate number of equity awards outstanding as December 31, 2021 for each Director is set forth in the footnotes to the beneficial ownership table provided in the
section entitled “Principal Stockholders.” Directors who are also officers or employees of Navidea do not receive any compensation for their services as directors.

The following table sets forth information concerning the compensation of our non-employee directors for the fiscal year ended December 31, 2021.

Name
Amit Bhalla (g)
Claudine Bruck, Ph.D. (h)
Alexander L. Cappello (i)
Adam D. Cutler (j)
Thomas F. Farb (k)
Y. Michael Rice (l)
S. Kathryn Rouan, Ph.D. (m)
John K. Scott, Jr. (n)
Agnieszka Winkler (o)
Malcolm G. Witter

Fees
Earned or
Paid in
Cash (a)

Option Awards
(b),(c)

Stock
Awards
(d),(e),(f)

All Other
Compensation

22,063 $
29,228
44,657
31,250
17,775
42,500
32,390
32,918
6,801
41,490

3,089 $
4,259
—
4,259
—
4,259
4,259
—
—
4,259

64,706 $
20,461
57,123
5,698
4,920
5,698
24,963
48,509
5,160
68,625

Total
Compensation
89,858
53,948
101,780
41,207
22,695
52,457
61,612
81,427
11,961
114,374

— $
—
—
—
—
—
—
—
—
—

(a) Amount represents fees earned during the fiscal year ended December 31, 2021 (i.e., the year to which the service relates). Through the third quarter of 2021,

quarterly retainers were paid during the quarter following the quarter in which they were earned. Beginning in the fourth quarter of 2021, monthly retainers are paid
during the month in which they are earned. Beginning November 16, 2021, Messrs. Bhalla, Scott and Witter elected to defer receipt of fees payable in cash until at
least July 1, 2022. The value of the deferred cash payments is included in this amount.

(b) Amount represents the aggregate grant date fair value in accordance with FASB ASC Topic 718. Assumptions made in the valuation of these awards are disclosed

in Note 1(e) of the Notes to the Consolidated Financial Statements in this Form 10-K.

(c) During the year ended December 31, 2021, non-employee directors were awarded an aggregate of 12,500 options to purchase common stock which vest as to

100% of the shares on the first anniversary of the date of grant. As of December 31, 2021, the current non-employee directors, Messrs. Bhalla and Witter, each held
2,500 options to purchase shares of common stock.

(d) Amount represents the aggregate grant date fair value in accordance with FASB ASC Topic 718 and includes the value of stock issued or to be issued for fees

earned during the fiscal year ended December 31, 2021 (i.e., the year to which the service relates). Beginning November 16, 2021, Messrs. Bhalla, Scott and Witter
elected to defer receipt of fees payable in common stock until at least July 1, 2022. The value of the deferred stock payments is included in this amount.
(e) During the year ended December 31, 2021, non-employee directors were issued an aggregate of 105,000 shares of restricted stock, 15,000 of which vest as to

100% of the shares on the first anniversary of the date of grant, and 90,000 of which vest as to one-third on each of the first three anniversaries of the date of grant.
Mr. Scott elected to defer receipt of an additional 30,000 shares of restricted stock until further notice. As of December 31, 2021, the current non-employee
directors held an aggregate of 95,000 shares of unvested restricted stock, with Messrs. Bhalla and Witter each holding 32,500 shares, and Mr. Cappello holding
30,000 shares of unvested restricted stock.

(f) During the year ended December 31, 2021, non-employee directors were issued an aggregate of 53,819 shares of unrestricted common stock in partial payment of
their fees. A total of 19,242 shares of unrestricted common stock earned during the year ended December 31, 2021 were deferred until at least July 1, 2022.

(g) Mr. Bhalla joined the Board of Directors effective May 4, 2021.
(h) Dr. Bruck retired from the Board of Directors effective September 14, 2021.
(i) Mr. Cappello joined the Board of Directors effective July 8, 2021.
(j) Mr. Cutler retired from the Board of Directors effective May 4, 2021.
(k) Mr. Farb joined the Board of Directors effective October 7, 2021 and resigned effective December 5, 2021.
(l) Mr. Rice retired from the Board of Directors effective May 4, 2021.
(m) Dr. Rouan retired from the Board of Directors effective September 14, 2021.
(n) Mr. Scott joined the Board of Directors effective July 8, 2021.
(o) Ms. Winkler joined the Board of Directors effective October 7, 2021 and resigned effective December 5, 2021.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Equity Compensation Plan Information

The following table sets forth additional information as of December 31, 2021, concerning shares of our Common Stock that may be issued upon the exercise of options
and other rights under our existing equity compensation plans and arrangements, divided between plans approved by our stockholders and plans or arrangements not
submitted to our stockholders for approval. The information includes the number of shares covered by, and the weighted average exercise price of, outstanding options and
other rights and the number of shares remaining available for future grants excluding the shares to be issued upon exercise of outstanding options, warrants, and other rights.

Plan Category
Equity compensation plans approved by security holders (a)
Equity compensation plans not approved by security holders
Total

(1)
Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options, Warrants
and Rights

(2)
Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights

(3)
Number of
Securities
Remaining Available
for Issuance Under
Equity
Compensation Plans
(Excluding
Securities Reflected
in Column (1))

919,790 $
—
919,790 $

5.67
—
5.67

422,440
—
422,440

(a) Our stockholders ratified the 2014 Stock Incentive Plan (the “2014 Plan”) at the 2014 Annual Meeting of Stockholders held on July 17, 2014 and amended the 2014
Plan at the 2018 and 2020 Annual Meetings of Stockholders held on August 16, 2018 and September 10, 2020, respectively. The total number of shares available
for awards under the 2014 Plan shall not exceed 1,750,000 shares, plus any shares subject to outstanding awards granted under prior plans and that expire or
terminate for any reason. Although awards are still outstanding under the Fourth Amended and Restated 2002 Stock Incentive Plan (the “2002 Plan”), the 2002 Plan
has expired and no new grants may be made from it. The total number of securities to be issued upon exercise of outstanding options includes 893,000 shares
underlying options granted under the 2014 Plan and 26,790 shares underlying options granted under the 2002 Plan.

Security Ownership of Principal Stockholders, Directors, Nominees and Executive Officers and Related Stockholder Matters

The following table sets forth, as of February 28, 2022, certain information with respect to the beneficial ownership of shares of our Common Stock by: (i) each person
known to us to be the beneficial owner of more than 5% of our outstanding shares of Common Stock, (ii) each director or nominee for director of our Company, (iii) each of
the Named Executive Officers (see “Executive Compensation – Summary Compensation Table”), and (iv) our directors and executive officers as a group. Except as
indicated in the footnotes to this table, the persons named in the table have sole voting and investment power with respect to all shares of our common stock shown as
beneficially owned by them, subject to community property laws, where applicable. Percentage ownership is based on 30,301,554 shares of our common stock outstanding
as of February 28, 2022. Shares underlying options or other rights to acquire our common stock that are exercisable within 60 days of February 28, 2022 are considered
outstanding for the purpose of computing the percentage ownership of the person holding such options or other rights, but are not deemed outstanding for computing the
percentage ownership of any other persons. The address of all directors and executive officers is c/o Navidea Biopharmaceuticals, Inc., 4995 Bradenton Avenue, Suite 240,
Dublin, OH 43017.

Beneficial Owner
Amit Bhalla
Alexander L. Cappello
Erika L. Eves
Michel Mikhail, Ph.D.
Michael S. Rosol, Ph.D.
John K. Scott, Jr.
Malcolm G. Witter
All directors and Named Executive Officers as a group (7 persons)

Number of Shares
Beneficially Owned

Percent
of Class

18,068
16,477
25,037
—
58,891
10,242,447
116,388
10,477,308

(a)
(b)
(c)
(d)
(e)
(f)
(g)

*
*
*
*
*
31.5%
*
32.2%

(*) Less than one percent.
(a) This amount includes 11,373 shares that Mr. Bhalla has the right to receive within 60 days but has elected to defer, but does not include 32,500 shares of unvested

restricted stock and 2,500 shares issuable upon exercise of options which are not exercisable within 60 days.

(b) This amount does not include 30,000 shares of unvested restricted stock.
(c) This amount includes 14,642 shares issuable upon exercise of options which are exercisable within 60 days and 6,766 shares in Ms. Eves’s account in the 401(k)

Plan, but does not include 10,333 shares issuable upon exercise of options which are not exercisable within 60 days.
(d) This amount does not include 75,000 shares issuable upon exercise of options which are not exercisable within 60 days.
(e) This amount includes 37,500 shares issuable upon exercise of options which are exercisable within 60 days and 6,816 shares in Dr. Rosol’s account in the 401(k)

Plan, but does not include 118,750 shares issuable upon exercise of options which are not exercisable within 60 days.

(f) This amount includes 2,173,913 shares issuable upon conversion of Series E Convertible Preferred Stock, 2,639 shares owned by Mr. Scott’s spouse, 7,500 shares

owned by Mr. Scott’s children and 11,233 shares that Mr. Scott has the right to receive within 60 days but has elected to defer.

(g) This amount includes 2,500 shares issuable upon exercise of options with are exercisable within 60 days and 11,636 shares that Mr. Witter has the right to receive

within 60 days but has elected to defer, but does not include 30,000 shares of unvested restricted stock.

All of our employees and directors, or any of their designees, are prohibited from (i) purchasing financial instruments (including prepaid variable forward contracts, equity
swaps, collars, and exchange funds), or (ii) otherwise engaging in transactions (including “short sales” and arrangements involving a non-recourse pledge of securities), that
hedge or offset, or are designed to hedge or offset, any decrease in the market value of shares of our common stock granted to such employee or director, or any of their
designees, as part of their compensation, or held (directly or indirectly) by such employee or director, or any of their designees.

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

Certain Relationships and Related Transactions

We adhere to our Code of Business Conduct and Ethics, which states that no director, officer or employee of Navidea should have any personal interest that is incompatible
with the loyalty and responsibility owed to our Company. We adopted a written policy regarding related party transactions in December 2015. When considering whether to
enter into or ratify a related party transaction, the Audit Committee considers a variety of factors including, but not limited to, the nature and type of the proposed
transaction, the potential value of the proposed transaction, the impact on the actual or perceived independence of the related party and the potential value to the Company of
entering into such a transaction. All proposed transactions with a potential value of greater than $120,000 must be approved or ratified by the Audit Committee.

SEC disclosure rules regarding transactions with related persons require the Company to provide information about transactions with directors and executive officers as
related persons, even though they may not have been related persons at the time the Company entered into the transactions described below.

Dr. Goldberg and Platinum

Dr. Michael Goldberg, our former President and Chief Executive Officer, previously managed a portfolio of funds for Platinum-Montaur Life Sciences LLC (“Platinum-
Montaur”), an affiliate of Platinum Management (NY) LLC, Platinum Partners Value Arbitrage Fund L.P. (“PPVA”), Platinum Partners Capital Opportunity Fund
(“PPCO”), Platinum Partners Liquid Opportunity Master Fund L.P., Platinum Liquid Opportunity Management (NY) LLC, and Montsant Partners LLC (collectively,
“Platinum”), from May 2007 until December 2013.

In March 2017, the Company repaid to PPCO an aggregate of approximately $7.7 million in full satisfaction of the Company’s liabilities, obligations and indebtedness under
the Platinum Loan Agreement between the Company and Platinum-Montaur, which were transferred by Platinum-Montaur to PPCO (the “Platinum Debt”). Subsequently,
competing claims were made by Dr. Goldberg and by PPVA to the unpaid portion of the Platinum Debt. Platinum commenced litigation against the Company in November
2017. Platinum and the Company settled their dispute and Platinum’s lawsuit was dismissed in February 2022.

Goldberg Agreement and Litigation

In August 2018, Dr. Goldberg resigned from his positions as an executive officer and a director of Navidea. In connection with Dr. Goldberg’s resignation, Navidea and Dr.
Goldberg entered into an Agreement (the “Goldberg Agreement”) which set forth the terms of the separation from service. Among other things, the Goldberg Agreement
provided that Dr. Goldberg would be entitled to 1,175,000 shares of our Common Stock, representing in part payment of accrued bonuses and payment of the balance of the
Platinum debt. A portion of the 1,175,000 shares to be issued to Dr. Goldberg would be held in escrow for up to 18 months in order to reimburse Navidea in the event that
Navidea is obligated to pay any portion of the Platinum debt to a party other than Dr. Goldberg. Further, the Goldberg Agreement provided that the Company’s subsidiary,
Macrophage Therapeutics, Inc. (“MT”), would redeem all of Dr. Goldberg’s preferred stock and issue to Dr. Goldberg super voting common stock equal to 5% of the
outstanding shares of MT. In November 2018, the Company issued 925,000 shares of our Common Stock to Dr. Goldberg, 250,000 of which were placed in escrow in
accordance with the Goldberg Agreement.

On February 11, 2019, Dr. Goldberg represented to the MT Board that he had, without MT Board or shareholder approval, created a subsidiary of MT, transferred all of the
assets of MT into the subsidiary, and then issued himself stock in the subsidiary. On February 19, 2019, Navidea notified MT that it was terminating the sublicense in
accordance with its terms, effective March 1, 2019, due to MT’s insolvency. On February 20, 2019, the MT Board removed Dr. Goldberg as President and Chief Executive
Officer of MT and from any other office of MT to which he may have been appointed or in which he was serving. Dr. Goldberg remains a member of the MT Board,
together with John K. Scott, Jr. and Dr. Michael S. Rosol. Mr. Scott is also the Vice Chair of the Board of Directors of Navidea. On or about February 17, 2022, the Joint
Official Liquidators and Foreign Representatives of PPVA executed the necessary paperwork to transfer its preferred stock in MT to Navidea.

New York Litigation Involving Dr. Goldberg

On February 20, 2019, Navidea filed a complaint against Dr. Goldberg in the United States District Court, Southern District of New York, alleging breach of the Goldberg
Agreement, as well as a breach of the covenant of good faith and fair dealing and to obtain a declaratory judgment that Navidea’s performance under the Goldberg
Agreement is excused and that Navidea is entitled to terminate the Goldberg Agreement as a result of Dr. Goldberg’s actions. On April 26, 2019, Navidea filed an amended
complaint against Dr. Goldberg which added a claim for breach of fiduciary duty seeking damages related to certain actions Dr. Goldberg took while CEO of Navidea. On
June 13, 2019, Dr. Goldberg answered the amended complaint and asserted counterclaims against Navidea and third-party claims against MT for breach of the Goldberg
Agreement, wrongful termination, injunctive relief, and quantum meruit.

On December 26, 2019, the District Court ruled on several motions related to Navidea and MT and Dr. Goldberg that substantially limited the claims that Dr. Goldberg can
pursue against Navidea and MT. Specifically, the District Court found that certain portions of Dr. Goldberg’s counterclaims against Navidea and third-party claims against
MT failed to state a claim upon which relief can be granted. Additionally, the District Court ruled that actions taken by Navidea and MT, including reconstituting the MT
board of directors, replacing Dr. Goldberg with Mr. Latkin as Chief Executive Officer of MT, terminating the sublicense between Navidea and MT, terminating certain
research projects, and allowing MT intellectual property to revert back to Navidea, were not breaches of the Goldberg Agreement.

The District Court also rejected Dr. Goldberg’s claim for wrongful termination as Chief Executive Officer of MT. In addition, the District Court found that Dr. Goldberg
lacked standing to seek injunctive relief to force the removal of Dr. Claudine Bruck and Michael Rice from MT’s Board of Directors, to invalidate all actions taken by the
MT Board on or after November 29, 2018 (the date upon which Dr. Bruck and Mr. Rice were appointed by Navidea to the Board of MT), or to reinstate the terminated
sublicense between Navidea and MT.

In addition, the District Court found Navidea’s breach of fiduciary duty claim against Dr. Goldberg for conduct occurring more than three years prior to the filing of the
complaint to be time-barred and that Dr. Goldberg is entitled to an advancement of attorneys’ fees solely with respect to that claim. To avoid further litigation expenses, the
Company agreed to indemnify Dr. Goldberg solely with respect to the breach of fiduciary duty claim.

On January 31, 2020, Goldberg filed a motion for leave to amend his complaint to add back in claims for breach of contract, breach of the implied covenant of good faith and
fair dealing, quantum meruit and injunctive relief. On April 1, 2020, the District Court denied Dr. Goldberg’s motion for leave to amend in its entirety.

On January 27, 2020, Dr. Goldberg filed a motion seeking additional advancement from Navidea for fees in connection with the New York Action and the Delaware Action.
Navidea opposed the motion and the District Court referred the matters to a Magistrate Judge. On July 9, 2020, the Magistrate Judge issued her Report and Recommendation
which recommended that: (1) the District Court decline to exercise jurisdiction over Dr. Goldberg’s motion as it pertained to expenses and fees incurred in defense of the
Delaware Action; (2) the District Court decline to award any fees to Dr. Goldberg for the breach of fiduciary duty without additional motion practice on the issue; (3) the
District Court find that Dr. Goldberg is entitled to advancement of his expenses and fees reasonably incurred in the defense of the remainder of the New York action subject
to Dr. Goldberg’s posting of an undertaking; and (4) establish a protocol by which Dr. Goldberg could establish the amounts due for advancement.

On August 24, 2020, in connection with Dr. Goldberg’s motion for advancement, the District Court adopted the Magistrate Judge’s report and recommendation and found
that while Dr. Goldberg was not being granted advancement of fees and expenses incurred in connection with either the Delaware Action or the assertion of third-party
claims against MT, the Court ruled that Dr. Goldberg was entitled to advancement for the defense of the remaining claims asserted against him by Navidea in the New York
action. The Court adopted a protocol by which additional motion practice will occur to determine the appropriate amount of fees to be advanced. Once that decision is made
by the Magistrate Judge, subject to review by the District Court, Navidea will need to advance those fees to Dr. Goldberg conditioned upon Dr. Goldberg agreeing to pay
those fees back to Navidea if it is determined that he is not entitled to indemnification.

On May 27, 2021, the District Court ordered that: (1) Dr. Goldberg be awarded $14,955 for indemnification for his attorneys’ fees for his defense of the breach of fiduciary
duty claim; (2) Dr. Goldberg be advanced $1,237.50 for his attorneys’ fees subject to repayment; (3) Navidea should not be required to indemnify or advance any of the
costs sought by Dr. Goldberg; (4) Dr. Goldberg is not entitled to advancement for the prosecution of his counterclaims and third-party claims; (5) Dr. Goldberg’s motion to
hold Navidea in contempt be denied; and (6) Navidea should not be required to advance any additional fees or costs unless Dr. Goldberg presents his time records and costs
in compliance with the District Court’s orders. The Company has made the payments ordered by the District Court.

On August 6, 2021, the Company moved for reconsideration of its obligations to advance fees in light of the Delaware Court’s decision dated June 23, 2021 (described
below). On October 14, 2021, the Magistrate Judge recommended that Navidea’s motion for reconsideration be denied. On March 7, 2022, the District Court adopted the
Report and Recommendation in part and permitted Dr. Goldberg to seek advancement for his fees incurred in defense of his claims since September 1, 2020. Dr. Goldberg’s
application is due on or before April 8, 2022.

Fact discovery and expert discovery in the New York Action have been completed. The Company has moved to disqualify Dr. Goldberg’s damages expert and briefing in
the District Court on that issue will be concluded on April 1, 2022.

Delaware Litigation Involving Dr. Goldberg

On February 20, 2019, MT initiated a suit against Dr. Goldberg in the Court of Chancery of the State of Delaware (the “Delaware Court”), alleging, among other things,
breach of fiduciary duty as a director and officer of MT and conversion, and to obtain a declaratory judgment that the transactions Dr. Goldberg caused MT to effect are
void. On June 12, 2019, the Delaware Court found that Dr. Goldberg’s actions were not authorized in compliance with the Delaware General Corporate Law. Specifically,
the Delaware Court found that Dr. Goldberg’s creation of a new subsidiary of MT and the purported assignment by Dr. Goldberg of MT’s intellectual property to that
subsidiary were void. The Delaware Court’s ruling follows the order on May 23, 2019 in the case, in which it found Dr. Goldberg in contempt of its prior order holding Dr.
Goldberg responsible for the payment of MT’s fees and costs to cure the damages caused by Dr. Goldberg’s contempt.

On June 23, 2021, the Delaware Court ruled in favor of MT and against Dr. Goldberg, finding that Dr. Goldberg breached his fiduciary duties to MT. Specifically, the
Delaware Court ruled: “Dr. Goldberg attempted to take for himself that which belonged to [MT]. In doing so, he breached his duty of loyalty to [MT] stockholders. [MT]
was absolutely justified in bringing this action to remedy (in this case undo) the harm caused by Dr. Goldberg’s misconduct.” The Delaware Court disagreed with MT’s
arguments regarding damages and, other than awarding nominal damages, declined to award additional relief beyond that which it had previously granted. With respect to
MT’s claim for conversion, the Delaware Court found that the claim was not supported because “Dr. Goldberg confirmed that he currently does not own or possess any
intellectual property related to either Navidea or [MT]” and that “any IP Dr. Goldberg created while at Navidea or any of its subsidiaries was and remains the property of
Navidea and its subsidiaries.” In addition, the Delaware Court denied Dr. Goldberg’s motion to hold MT’s directors and CEO in contempt, denied Dr. Goldberg’s motion to
dismiss the lawsuit against him, and granted MT’s motion to dismiss Dr. Goldberg’s petition to remove MT’s board members. On December 9, 2021, Dr. Goldberg was
ordered to reimburse MT in the amount of $66,796.33 and has paid that amount to MT. Neither party has appealed the Delaware Court’s decision and the Delaware Court’s
decisions are now final.

See Note 12 to the accompanying consolidated financial statements.

Mr. Latkin and Platinum

Jed A. Latkin, our former Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, was an independent consultant that served as a portfolio manager
from 2011 through 2015 for two entities, namely Precious Capital and West Ventures, each of which were during that time owned and controlled, respectively, by PPVA and
PPCO. Mr. Latkin was party to a consulting agreement with each of Precious Capital and West Ventures pursuant to which, as of April 2015, an aggregate of approximately
$13 million was owed to him, which amount was never paid and Mr. Latkin has no information as to the current value. Mr. Latkin’s consulting agreements were terminated
upon his ceasing to be an independent consultant in April 2015 with such entities. During his consultancy, Mr. Latkin was granted a .5% ownership interest in each of
Precious Capital and West Ventures, however, to his knowledge he no longer owns such interests. In addition, PPVA owes Mr. Latkin $350,000 for unpaid consulting fees
earned and expenses accrued in 2015 in respect of multiple consulting roles with them. Except as set forth above, Mr. Latkin has no other past or present affiliations with
Platinum.

Macrophage Therapeutics, Inc. and Platinum

In March 2015, MT, our previously wholly-owned subsidiary, entered into a Securities Purchase Agreement to sell up to 50 shares of its Series A Convertible Preferred
Stock (“MT Preferred Stock”) and warrants to purchase up to 1,500 common shares of MT (“MT Common Stock”) to Platinum and Dr. Goldberg (collectively, the “MT
Investors”) for a purchase price of $50,000 per unit. A unit consisted of one share of MT Preferred Stock and 30 warrants to purchase MT Common Stock. Under the
agreement, 40% of the MT Preferred Stock and warrants are committed to be purchased by Dr. Goldberg, and the balance by Platinum. The full 50 shares of MT Preferred
Stock and warrants to be sold under the agreement are convertible into, and exercisable for, MT Common Stock representing an aggregate 1% interest on a fully converted
and exercised basis. Navidea owns the remainder of the MT Common Stock. On March 11, 2015, definitive agreements with the MT Investors were signed for the sale of the
first tranche of 10 shares of MT Preferred Stock and warrants to purchase 300 shares of MT Common Stock to the MT Investors, with gross proceeds to MT of $500,000.
Platinum has since transferred its interests in MT to Navidea.

Director Independence

Our Board of Directors has adopted the definition of “independence” as described under the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley) Section 301, Rule 10A-3 under
the Exchange Act and Section 803A of the NYSE American Company Guide. Our Board of Directors has determined that Messrs. Bhalla, Cappello, Scott and Witter meet
the independence requirements.

Item 14. Principal Accountant Fees and Services

Audit Fees. The aggregate fees billed and expected to be billed for professional services rendered by Marcum LLP, primarily related to the audit of the Company’s annual
consolidated financial statements for the 2021 fiscal year, the reviews of the financial statements included in the Company’s Quarterly Reports on Form 10-Q for the 2021
fiscal year, and review of other SEC filings, were $298,650 (including direct engagement expenses).

The aggregate fees billed for professional services rendered by Marcum LLP, primarily related to the audit of the Company’s annual consolidated financial statements for
the 2020 fiscal year, the reviews of the financial statements included in the Company’s Quarterly Reports on Form 10-Q for the 2020 fiscal year, and review of other SEC
filings, were $294,251 (including direct engagement expenses).

Audit-Related Fees. No fees were billed by Marcum LLP for audit-related services for the 2021 or 2020 fiscal years.

Tax Fees. No fees were billed by Marcum LLP for tax-related services for the 2021 or 2020 fiscal years.

All Other Fees. No fees were billed by Marcum LLP for services other than the audit, audit-related and tax services for the 2021 or 2020 fiscal years.

Pre-Approval Policy. The Audit Committee is required to pre-approve all auditing services and permitted non-audit services (including the fees and terms thereof) to be
performed for the Company by its independent auditor or other registered public accounting firm, subject to the de minimis exceptions for permitted non-audit services
described in Section 10A(i)(1)(B) of the Exchange Act that are approved by the Audit Committee prior to completion of the audit. The Audit Committee, through the
function of the Chairman, has given general pre-approval for 100% of specified audit, audit-related, tax and other services.

PART IV

Item 15. Exhibits, Financial Statement Schedules

The following documents are filed as part of this report:

(1) The following Financial Statements are included in this Annual Report on Form 10-K on the pages indicated below:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2021 and 2020

Consolidated Statements of Operations for the years ended December 31, 2021 and 2020

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2021 and 2020

Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020

Notes to the Consolidated Financial Statements

F-2

F-4

F-6

F-7

F-8

F-9

(2) Financial statement schedules have been omitted because either they are not required or are not applicable or because the information required to be set forth therein is

not material.

(3) Exhibits:

Exhibit
Number

Exhibit Description

3.1

3.2

3.3

3.4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

10.1

Amended and Restated Certificate of Incorporation of Navidea Biopharmaceuticals, Inc., as corrected February 18, 1994, and amended June 27, 1994,
July 25, 1995, June 3, 1996, March 17, 1999, May 9, 2000, June 13, 2003, July 29, 2004, June 22, 2005, November 20, 2006, December 26, 2007, April
30, 2009, July 27, 2009, August 2, 2010, January 5, 2012, June 26, 2013 and August 18, 2016) (incorporated by reference to Exhibit 3.1 to the
Company’s Annual Report on Form 10-K filed March 31, 2017).

Certificate of Amendment to Amended and Restated Certificate of Incorporation of Navidea Biopharmaceuticals, Inc. (incorporated by reference to
Exhibit 3.1 to the Company’s Current Report on Form 8-K filed April 26, 2019).

Amended and Restated By-Laws dated July 21, 1993, as amended July 18, 1995, May 30, 1996, July 26, 2007, and November 7, 2013 (incorporated by
reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed November 12, 2013).

Amendment to Amended and Restated By-Laws, dated April 2, 2021 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form
8-K filed April 5, 2021).

Certificate of Designations, Voting Powers, Preferences, Limitations, Restrictions, and Relative Rights of Series C Redeemable Convertible Preferred
Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed May 12, 2020).

Certificate of Elimination (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed September 2, 2020).

Certificate of Designations, Voting Powers, Preferences, Limitations, Restrictions, and Relative Rights of Series D Redeemable Convertible Preferred
Stock (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed September 2, 2020).

Certificate of Designations, Voting Powers, Preferences, Limitations, Restrictions, and Relative Rights of Series E Redeemable Convertible Preferred
Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed March 4, 2021).

Amended and Restated Certificate of Designations, Voting Powers, Preferences, Limitations, Restrictions, and Relative Rights of Series B Cumulative
Convertible Preferred Stock (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed June 26, 2013).

Form of Common Stock Certificate (incorporated by reference to Exhibit 4.3 to the Company’s Registration Statement on Form S-3 filed December 31,
2019).

Description of Securities (incorporated by reference to Exhibit 4.3 to the Company’s Annual Report on Form 10-K filed March 18, 2020).

Registration Rights Agreement, dated December 6, 2019, among Navidea Biopharmaceuticals, Inc. and the stockholders named therein (incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 11, 2019).

Form of Underwriter Warrants (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed June 17, 2019).

Registration Rights Agreement, dated February 13, 2020, by and between Navidea Biopharmaceuticals, Inc. and John K. Scott, Jr. (incorporated by
reference to Exhibit 4.5 to the Company’s Registration Statement on Form S-3 filed August 25, 2020).

Form of Indenture (incorporated by reference to Exhibit 4.6 to the Company’s Registration Statement on Form S-3 filed February 8, 2021).

Registration Rights Agreement, dated March 2, 2021, by and between Navidea Biopharmaceuticals, Inc. and John K. Scott, Jr. (incorporated by reference
to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 4, 2021).

License Agreement, dated December 9, 2011, between AstraZeneca AB and the Company (portions of this Exhibit have been omitted pursuant to a
request for confidential treatment and have been filed separately with the U.S. Securities and Exchange Commission) (incorporated by reference to
Exhibit 10.1 to the Company’s Current Report on Form 8-K/A filed April 11, 2012).

Exhibit
Number
10.2

10.3

10.4

10.5

10.6

10.7

10.8

10.9

10.10

10.11

10.12

10.13

10.14

10.15

Exhibit Description
Series HH Warrant to purchase Common Stock of Navidea Biopharmaceuticals, Inc. issued to GE Capital Equity Investments, Inc., dated June 25, 2013
(incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K/A filed June 28, 2013).

Series HH Warrant to purchase Common Stock of Navidea Biopharmaceuticals, Inc. issued to MidCap Financial SBIC, LP, dated June 25, 2013
(incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K/A filed June 28, 2013).

Office Lease, dated August 29, 2013, by and between Navidea Biopharmaceuticals, Inc. and BRE/COH OH LLC (portions of this Exhibit have been
omitted pursuant to a request for confidential treatment and have been filed separately with the U.S. Securities and Exchange Commission) (incorporated
by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 5, 2013).

License Agreement, dated July 14, 2014, between the Company and the Regents of the University of California (portions of this Exhibit have been
omitted pursuant to a request for confidential treatment and have been filed separately with the U.S. Securities and Exchange Commission) (incorporated
by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed August 11, 2014).

Form of Stock Option Agreement under the Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the
Company’s Quarterly Report on Form 10-Q filed November 10, 2014).

Form of Restricted Stock Award and Agreement under the Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan (incorporated by reference to
Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed November 10, 2014).

Securities Exchange Agreement dated as of March 11, 2015 among Macrophage Therapeutics, Inc., Platinum-Montaur Life Sciences, LLC and Michael
Goldberg, M.D. (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed May 11, 2015).

Term Loan Agreement, dated as of May 8, 2015, by and among Navidea Biopharmaceuticals, Inc., as borrower, Macrophage Therapeutics, Inc. as
guarantor, and Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P. and Parallel Investment Opportunities Partners II
L.P., as lenders (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K/A filed October 9, 2015).

Security Agreement, dated as of May 15, 2015 among Navidea Biopharmaceuticals, Inc., as borrower, Macrophage Therapeutics, Inc. as guarantor, and
Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P. and Parallel Investment Opportunities Partners II L.P., as lenders,
and Capital Royalty Partners II L.P., as control agent (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May
15, 2015).

Form of Series LL Warrant issued to Montsant Partners LLC and Platinum Partners Value Arbitrage Fund, L.P. (incorporated by reference to Exhibit 10.2
to the Company’s Current Report on Form 8-K filed August 26, 2015).

Amendment 1 to Term Loan Agreement by and among Navidea Biopharmaceuticals, Inc., as borrower, and Capital Royalty Partners II L.P., Capital
Royalty Partners II – Parallel Fund “A” L.P. and Parallel Investment Opportunities Partners II L.P., as lenders, dated as of December 23, 2015
(incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 11, 2016).

Form of Director Agreement (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 10, 2016).

Asset Purchase Agreement, dated November 23, 2016, between Navidea Biopharmaceuticals, Inc. and Cardinal Health 414, LLC (incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 30, 2016).

Global Settlement Agreement dated March 3, 2017, by and among Navidea Biopharmaceuticals, Inc., Cardinal Health 414, LLC, Macrophage
Therapeutics, Inc., Capital Royalty Partners II L.P., Capital Royalty Partners II (Cayman), L.P., Capital Royalty Partners II – Parallel Fund “A” L.P.,
Parallel Investment Opportunities Partners II L.P. and Capital Royalty Partners II – Parallel Fund “B” (Cayman) L.P. (incorporated by reference to
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 9, 2017).

Exhibit
Number
10.16

10.17

10.18

10.19

10.20

10.21

10.22

10.23

10.24

10.25

10.26

10.27

10.28

10.29

10.30

10.31

10.32

Exhibit Description

License-Back Agreement, dated March 3, 2017, between Navidea Biopharmaceuticals, Inc. and Cardinal Health 414, LLC (incorporated by reference to
Exhibit 10.3 to the Company’s Current Report on Form 8-K filed March 9, 2017).

Series NN Warrant, dated March 3, 2017, issued to Cardinal Health 414, LLC (incorporated by reference to Exhibit 10.4 to the Company’s Current
Report on Form 8-K filed March 9, 2017).

Series NN Warrant, dated March 3, 2017, issued to The Regents of the University of California (San Diego) (incorporated by reference to Exhibit 10.5 to
the Company’s Current Report on Form 8-K filed March 9, 2017).

Amended and Restated License Agreement, dated March 3, 2017, between Navidea Biopharmaceuticals, Inc. and The Regents of the University of
California (San Diego) (portions of this Exhibit have been omitted pursuant to a request for confidential treatment and have been filed separately with the
Securities and Exchange Commission) (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed March 9, 2017).

Amendment to Asset Purchase Agreement dated April 2, 2018, between Navidea Biopharmaceuticals, Inc. and Cardinal Health 414, LLC (incorporated
by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 9, 2018).

Agreement dated August 14, 2018, by and among Navidea Biopharmaceuticals, Inc., Macrophage Therapeutics, Inc. and Michael M. Goldberg, M.D.
(incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed November 9, 2018).

Employment Agreement, effective October 1, 2018, by and between Navidea Biopharmaceuticals, Inc. and Jed A. Latkin (incorporated by reference to
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 5, 2018).

Form of Series OO Underwriter’s Common Stock Purchase Warrant issued to the underwriter’s designees on June 18, 2019 (incorporated by reference to
Exhibit 4.1 to the Company’s Current Report on Form 8-K filed June 17, 2019).

Termination Agreement, effective May 11, 2020, among Navidea Biopharmaceuticals, Inc., SpePharm AG, and Norgine BV (incorporated by reference
to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May 12, 2020).

Employment Agreement, effective July 27, 2020, by and between Navidea Biopharmaceuticals, Inc. and Jed A. Latkin (incorporated by reference to
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 31, 2020).

Amended and Restated Equity Commitment Letter, dated August 14, 2020, by and between Navidea Biopharmaceuticals, Inc. and Mastiff Group, LLC
(incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed August 14, 2020).

Stock Purchase Agreement and Letter of Investment Intent, dated August 31, 2020, by and between Navidea Biopharmaceuticals, Inc. and Keystone
Capital Partners, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 2, 2020).

Stock Purchase Agreement, dated August 30, 2020, among Navidea Biopharmaceuticals, Inc., Mastiff Group, LLC and John K. Scott, Jr. (incorporated
by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed September 2, 2020).

Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan (as amended and restated on August 16, 2018 and September 10, 2020) (incorporated by
reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-8 filed November 13, 2020).

Stock Purchase Agreement and Letter of Investment Intent, dated March 2, 2021, by and between Navidea Biopharmaceuticals, Inc. and John K. Scott, Jr.
(incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 4, 2021).

Amendment to Stock Purchase Agreement and Letter of Investment Intent, dated July 8, 2021, by and between Navidea Biopharmaceuticals, Inc. and
Keystone Capital Partners LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed July 13, 2021).

Separation Agreement and General Release, dated November 23, 2021, by and between Navidea Biopharmaceuticals, Inc. and Jed A. Latkin
(incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 26, 2021).

Exhibit
Number
21.1

23.1

24.1

31.1

31.2

32.1

32.2

Exhibit Description
Subsidiaries of the registrant.*

Consent of Marcum LLP.*

Power of Attorney.*

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**

Certification of Chief Executive Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section
1350.**

Certification of Chief Financial Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section
1350.**

101.INS

Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because it is XBRL) (1)

101.SCH

Inline XBRL Taxonomy Extension Schema Document (1)

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document (1)

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document (1)

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document (1)

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document (1)

104

Cover page Interactive Data File (formatted as Inline XBRL and combined in Exhibit 101.1)

Management contract or compensatory plan or arrangement.
*
Filed herewith.
** Furnished herewith.
(1) These interactive data files shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities

Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

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.

Dated: March 28, 2022

SIGNATURES

NAVIDEA BIOPHARMACEUTICALS, INC.
(the Company)

By:/s/ Michael S. Rosol
Michael S. Rosol, Ph.D.
Chief Medical Officer

(Principal Executive Officer)

By:/s/ Erika L. Eves
Erika L. Eves

Vice President, Finance and Administration
(Principal Financial and Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.

Signature

/s/ Michael S. Rosol
Michael S. Rosol, Ph.D.

/s/ Erika L. Eves
Erika L. Eves

/s/ Alexander L. Cappello*
Alexander L. Cappello

/s/ John K. Scott, Jr.*
John K. Scott, Jr.

/s/ Amit Bhalla*
Amit Bhalla

/s/ Malcolm G. Witter*
Malcolm G. Witter

*By:

/s/ Michael S. Rosol
Michael S. Rosol, Ph.D., Attorney-in-fact

Title

Chief Medical Officer
(Principal Executive Officer)

Date

March 28, 2022

Vice President, Finance & Administration
(Principal Financial Officer and Principal Accounting Officer)

March 28, 2022

Chairman of the Board of Directors

March 28, 2022

Vice Chairman of the Board of Directors

March 28, 2022

Director

March 28, 2022

NAVIDEA BIOPHARMACEUTICALS, INC.

FORM 10-K ANNUAL REPORT

As of December 31, 2021 and 2020
and for Each of the
Two Years in the Period Ended
December 31, 2021

FINANCIAL STATEMENTS

NAVIDEA BIOPHARMACEUTICALS, INC. and SUBSIDIARIES

Index to Consolidated Financial Statements

Consolidated Financial Statements of Navidea Biopharmaceuticals, Inc.

Report of Independent Registered Public Accounting Firm (PCAOB ID 688)

Consolidated Balance Sheets as of December 31, 2021 and 2020

Consolidated Statements of Operations for the years ended December 31, 2021 and 2020

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2021 and 2020

Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020

Notes to the Consolidated Financial Statements

F-1

F-2

F-4

F-6

F-7

F-8

F-9

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors of
Navidea Biopharmaceuticals, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Navidea Biopharmaceuticals, Inc. (the “Company”) as of December 31, 2021 and 2020, the related
consolidated statements of operations, stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2021, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company
as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2021, in conformity with
accounting principles generally accepted in the United States of America.

Explanatory Paragraph – Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 2,
the Company has minimal working capital, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2.
The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 audits to obtain reasonable assurance about
whether the 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 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 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 financial statements.
We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the 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 financial statements and (2) involved our especially challenging,
subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we
are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Equity Award Modifications – Refer to Note 16 to the consolidated financial statements

The Company entered into a Separation Agreement and General Release (“Separation Agreement”) with Mr. Jed Latkin, the former Chief Executive, Chief Financial, Chief
Operation Officer and director on November 23, 2021. Pursuant to the Separation Agreement, among other things, the Company agreed to provide Mr. Latkin with certain
separation benefits, commencing on the “Effective Date,” defined as the eighth day after Mr. Latkin signs, without revoking, the Separation Agreement. Pursuant to the
terms of the Separation Agreement, on the effective date each of Mr. Latkin’s unvested stock options vested, and all of his vested stock options and previously unvested
options may be exercised by Mr. Latkin on or before the earlier of the fifth anniversary of the Separation Date and the original expiration date. On the Effective Date, each of
Mr. Latkin’s outstanding unvested restricted stock units became fully vested, and all of such restricted stock units were settled within thirty days after the Separation Date,
less applicable withholding in shares of common stock. The modifications to the outstanding equity awards required significant judgement by management related to the
assessment of the accounting treatment for the modifications and also the fair value assessments of the equity modification prior to modification and subsequent to
modification.

The Company considered various factors, including the fair value of the equity awards immediately prior to modification and immediately after modification and relevant
interpretation of the authoritative guidance to determine the incremental fair value incurred relating to the modification.

F-2

We identified these equity award modifications as a critical audit matter because evaluating the authoritative guidance and estimating the incremental expense involved
significant judgement by management related to the fair values immediately prior and following the modification. This required a high degree of auditor judgment and an
increased extent of effort when performing audit procedures to evaluate the Company’s interpretation of the authoritative guidance and assessing the inputs utilized by
management to assess the fair value of the equity awards.

How the Critical Audit Matter was Addressed in the Audit

Our audit procedures related to the equity award modifications include the following, among others:

● We obtained the executed Separation Agreement between the Company and Mr. Jed Latkin and reviewed the terms and conditions agreed upon.

● We obtained the accounting memorandum from management outlining the analysis performed by management over the equity award modifications related to the

Separation Agreement.

● We obtained management’s assessment and calculation of the equity award modifications and independently tested the inputs and assumptions utilized in the fair
value calculation of the equity awards immediately before the modifications and the fair value calculation of the equity awards as of the date of modifications.

● We recalculated the incremental fair value related to the modifications and compared that to the Company’s analysis.

/s/ Marcum LLP

We have served as the Company’s auditor since 2016.

Hartford, CT

March 28, 2022

F-3

Navidea Biopharmaceuticals, Inc. and Subsidiaries
Consolidated Balance Sheets

ASSETS
Current assets:

Cash and cash equivalents
Stock subscriptions and other receivables
Inventory
Prepaid expenses and other
Total current assets

Property and equipment

Less accumulated depreciation and amortization

Property and equipment, net

Right-of-use lease assets

Less accumulated amortization

Right-of-use lease assets, net
License agreements, patents and trademarks

Less accumulated amortization

License agreements, patents and trademarks, net

Other assets

Total assets

December 31,
2021

December 31,
2020

4,230,865 $
92,992
151,155
908,273
5,383,285
866,306
745,816
120,490
448,940
320,725
128,215
953,424
167,773
785,651
227,192
6,644,833 $

2,670,495
2,987,319
169,798
700,716
6,528,328
845,379
713,217
132,162
458,280
208,185
250,095
747,863
127,622
620,241
227,192
7,758,018

(continued)

F-4

Navidea Biopharmaceuticals, Inc. and Subsidiaries
Consolidated Balance Sheets (continued)

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:

Accounts payable
Accrued liabilities and other
Notes payable
Lease liabilities, current

Total current liabilities
Lease liabilities, net of current portion
Deferred revenue

Total liabilities

Commitments and contingencies (See Note 12)
Stockholders’ equity:

Preferred stock; $.001 par value; 5,000,000 shares authorized; no shares issued or outstanding as of December 31,

2021 and 2020

Series D preferred stock; $.001 par value, 150,000 shares authorized; 22,077 and 0 shares issued and outstanding as

of December 31, 2021 and 2020, respectively

Series D preferred stock subscribed; $.001 par value, 0 and 103,000 shares subscribed as of December 31, 2021 and

2020, respectively

Series D preferred stock subscriptions receivable
Series E preferred stock; $.001 par value, 50,000 shares authorized; 50,000 and 0 shares outstanding as of December

31, 2021 and 2020, respectively

Common stock; $.001 par value; 300,000,000 shares authorized; 30,279,922 and 27,149,691 shares issued and

outstanding as of December 31, 2021 and 2020, respectively

Common stock subscribed; $.001 par value, 0 and 995,000 shares subscribed as of December 31, 2021 and 2020,

respectively

Common stock subscriptions receivable
Additional paid-in capital
Accumulated deficit

Total Navidea stockholders' (deficit) equity

Noncontrolling interest

Total stockholders’ equity

Total liabilities and stockholders’ equity

See accompanying notes to consolidated financial statements.

F-5

December 31,
2021

December 31,
2020

1,421,317 $
3,149,340
453,427
275,718
5,299,802
20,288
700,000
6,020,090

—

—
—

1,161,717
2,512,994
745,443
294,951
4,715,105
296,006
700,000
5,711,111

—

132
(10,300,000)

—

221,277

218,146

—
—
370,459,705
(370,787,610)
(106,556)
731,299
624,743
6,644,833 $

995
(4,975,000)
375,428,014
(359,056,683)
1,315,604
731,303
2,046,907
7,758,018

Navidea Biopharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Operations

Revenue:

Royalty revenue
License revenue
Grant and other revenue

Total revenue

Cost of revenue
Gross profit
Operating expenses:

Research and development
Selling, general and administrative

Total operating expenses

Loss from operations
Other income (expense):

Interest (expense) income, net
Gain on extinguishment of debt
Other, net

Total other income (expense), net

Net loss before income taxes
Provision for income taxes
Net loss
Loss attributable to noncontrolling interest
Deemed dividend on Series C and Series D Preferred Stock beneficial conversion feature
Net loss attributable to common stockholders

Loss attributable to common stockholders per common share (basic and diluted)
Weighted average shares outstanding

See accompanying notes to consolidated financial statements.

F-6

Years Ended December 31,
2020
2021

— $
45,615
485,898
531,513
—
531,513

5,141,910
7,450,015
12,591,925
(12,060,412)

(6,361)
366,000
(14,115)
345,524
(11,714,888)
(16,043)
(11,730,931)
4
—
(11,730,927) $

7,995
110,730
796,288
915,013
1,048
913,965

4,930,187
6,694,959
11,625,146
(10,711,181)

11,344
—
(21,854)
(10,510)
(10,721,691)
—
(10,721,691)
—
(663,889)
(11,385,580)

(0.40) $
29,343,542

(0.48)
23,896,001

Navidea Biopharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity

Preferred Stock

Preferred Stock
Subscribed

Amount

Preferred
Stock
Subscriptions
Receivable

Common Stock Issued

Common Stock
Subscribed

Amount

Common
Stock
Subscriptions
Receivable

Additional

Paid-In
Capital

Accumulated
Deficit

Non-
controlling
Interest

Total

19,234,960

$ 210,232

902,162

902

$ 345,847,676

$ (347,671,102) $

731,303

(880,989)

420,000

(420,000)

17,750

-
-

420

(420)

-
-

Balance, January 1,
2020
Issued stock in
payment of services
Issued stock in
payment of
employee bonuses
Issued stock pursuant
to private
placements, net of
issuance costs
Issued stock pursuant
to registered direct
offerings, net of
issuance costs
Issued restricted
stock
Issued stock to
401(k) plan
Issued stock upon
exercise of warrants
Issued Series C
Preferred Stock, net
of issuance costs
Deemed dividend on
Series C Preferred
Stock
Issued stock upon
conversion of Series
C Preferred Stock
Issued stock in
payment of Series C
Preferred Stock fees
Issued stock pursuant
to Jubilant MOU
Issued Series D
Preferred Stock, net
of issuance costs
Deemed dividend on
Series D Preferred
Stock
Issued stock upon
conversion of Series
D Preferred Stock
Stock subscribed in
connection with
Series D Preferred
Stock
Stock subscribed in
connection with
private placement
Stock compensation
expense

Net loss

Balance, December
31, 2020
Issued restricted
stock
Issued stock to
401(k) plan
Issued Series D
Preferred Stock
Issued stock upon
conversion of Series
D Preferred Stock

Series D Preferred
Stock subscribed
Issued Series E
Preferred Stock, net
of issuance costs
Issued stock upon
stock option exercise
Issued stock in lieu
of cash for payment
of director fees
Cancelled stock to
pay employee tax
obligations
Common stock
subscribed
Stock compensation
expense
Net loss
Balance, December
31, 2021

23,810

94,159

3,280,691

3,281

(902,162)

(902)

1,647,059

1,647

60,000

32,651

300,595

300

1,425,076

1,425

14,205

209,205

209

827,280

827

-
-

70,177

171,428

(320)

1,248,353

39,801

(300)

4,162,758

466,667

(466,667)

(1,005)

(14)

999,791

132,089

197,223

(197,223)

(809)

14,849,851

(10,721,691)

-
-

70,201

171,522

2,059

1,250,000

39,834

4,163,178

1,000,000

132,107

4,549,983

2,040,121

230,522
(10,721,691)

-
-

995,000

995

(4,975,000)

7,014,126

-
-

230,522
-

132,250

132

(10,300,000)

27,149,691

218,146

995,000

995

(4,975,000)

375,428,014

(359,056,683)

731,303

2,046,907

105,000

106

30,018

76,827

(76,827)

(76)

2,550,000

(54,750)

(55)

2,951,509

2,951

(55,423)

(56)

7,750,000

50,000

-
-

72,077

-
-

4,000

53,819

(14,115)

(14)

-
-

30,279,922

$ 221,277

76,816

(2,896)

(5,542,245)

4,929,988

4,236

85,881

(17,346)

(995,000)

(995)

4,975,000

(4,974,005)

-
-

471,262
-

(11,730,927)

106

76,846

2,550,001

2,207,699

4,930,038

4,240

85,935

(17,360)

-
(4)

471,262
(11,730,931)

$ 370,459,705

$ (370,787,610) $

731,299

624,743

See accompanying notes to consolidated financial statements.

F-7

(17,750)

(18)

132,250

132

(10,300,000)

Navidea Biopharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

Cash flows from operating activities:

Net loss
Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization of property and equipment
Amortization of license agreements, patents and trademarks
Non-cash lease expense
Loss on disposal and abandonment of patents and equipment
Stock compensation expense
Gain on extinguishment of debt
Value of stock issued to 401(k) plan for employer matching contributions
Value of stock issued in lieu of cash in payment of director fees
Value of stock issued in payment of employee bonuses
Value of stock issued in payment for services

Changes in operating assets and liabilities:

Receivables
Inventory
Prepaid expenses and other assets
Accounts payable
Accrued and other liabilities
Lease liabilities
Deferred revenue

Net cash used in operating activities

Cash flows from investing activities:

Payments for purchases of equipment
Proceeds from sales of equipment
Patent and trademark costs

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from issuance of preferred stock, including collection of stock subscriptions receivable
Payment of preferred stock issuance costs
Proceeds from issuance of common stock
Payment of tax withholdings related to stock-based compensation
Payment of common stock issuance costs
Proceeds from note payable
Principal payments on notes payable

Net cash provided by financing activities

Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

See accompanying notes to consolidated financial statements.

F-8

Years Ended December 31,
2020
2021

(11,730,931) $

(10,721,691)

36,803
40,151
121,880
98,733
471,262
(366,000)
76,846
85,935
—
—

(30,675)
18,643
358,203
259,600
622,738
(294,951)
13,608
(10,218,155)

(25,218)
—
(304,206)
(329,424)

12,682,700
(69,962)
4,346
(17,360)
—
—
(491,775)
12,107,949
1,560,370
2,670,495
4,230,865 $

33,929
36,464
120,186
5,654
230,521
—
39,834
—
171,522
70,201

839,020
(169,798)
1,019,230
49,648
348,410
(260,532)
13,609
(8,173,793)

(135,881)
1,042
(277,989)
(412,828)

5,975,000
(55,050)
4,442,560
—
(150,000)
366,000
(368,553)
10,209,957
1,623,336
1,047,159
2,670,495

Notes to the Consolidated Financial Statements

1. Organization and Summary of Significant Accounting Policies

a. Organization and Nature of Operations: Navidea Biopharmaceuticals, Inc. (“Navidea,” the “Company,” or “we”), a Delaware Corporation (NYSE American:
NAVB), is a biopharmaceutical company focused on the development and commercialization of precision immunodiagnostic agents and immunotherapeutics.
Navidea is developing multiple precision-targeted products based on our Manocept™ platform to enhance patient care by identifying the sites and pathways of
undetected disease and enable better diagnostic accuracy, clinical decision-making and targeted treatment.

Navidea’s Manocept platform is predicated on the ability to specifically target the CD206 mannose receptor expressed on activated macrophages. The Manocept
platform serves as the molecular backbone of Tc99m tilmanocept, the first product developed and commercialized by Navidea based on the platform. Other than
Tc99m tilmanocept, which the Company has a license to distribute outside of Canada, Mexico and the United States, none of the Company’s drug product
candidates have been approved for sale in any market.

In July 2011, we established a British business unit, Navidea Biopharmaceuticals Limited (“Navidea UK”), to address European and international development and
commercialization needs for our technologies, including Tc99m tilmanocept. Navidea owns 100% of the outstanding shares of Navidea UK.

In January 2015, Macrophage Therapeutics, Inc. (“MT”) was formed specifically to explore immuno-therapeutic applications for the Manocept platform. Navidea
owns 99.9% of the outstanding shares of MT.

In June 2020, in anticipation of the United Kingdom’s separation from the European Union (“Brexit”), we established an Irish entity, Navidea Biopharmaceuticals
Europe Limited (“Navidea Europe”). Following Brexit, Navidea Europe allows us to continue to develop and commercialize our technologies within the European
Union (“EU”) as well as internationally. Navidea owns 100% of the outstanding shares of Navidea Europe.

b. Principles of Consolidation: Our consolidated financial statements include the accounts of Navidea and our wholly-owned subsidiaries, Navidea Europe and

Navidea UK, as well as those of our majority-owned subsidiary, MT. All significant inter-company accounts were eliminated in consolidation.

c. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.

d. Revenue Recognition: We currently generate revenue from a grant to support one of our product development initiatives. We generally recognize grant revenue

when expenses reimbursable under the grant have been paid and payments under the grant become contractually due.

We also earn revenues related to our licensing and distribution agreements. The consideration we are eligible to receive under our licensing and distribution

agreements typically includes upfront payments, reimbursement for research and development (“R&D”) costs, milestone payments, and royalties. Each licensing
and distribution agreement is unique and requires separate assessment in accordance with current accounting standards. See Note 3.

Stock-Based Compensation: As of December 31, 2021, we had instruments outstanding under two stock-based compensation plans; the Fourth Amended and
Restated 2002 Stock Incentive Plan (the “2002 Plan”) and the Amended and Restated 2014 Stock Incentive Plan (the “2014 Plan”). Currently, under the 2014 Plan,
we may grant incentive stock options, nonqualified stock options, and restricted stock awards to full-time employees and directors, and nonqualified stock options
and restricted stock awards may be granted to our consultants and agents. Total shares authorized under the 2014 Plan is 1,750,000 shares. Although instruments
are still outstanding under the 2002 Plan, the 2002 Plan has expired and no new grants may be made from it. Under both plans, the exercise price of each option is
greater than or equal to the closing market price of our Common Stock on the date of the grant.

Stock options granted under the 2002 Plan and the 2014 Plan generally vest on an annual basis over one to four years. Outstanding stock options under the plans, if
not exercised, generally expire ten years from their date of grant or up to 90 days following the date of an optionee’s separation from employment with the
Company. We issue new shares of our Common Stock upon exercise of stock options.

Stock-based payments to employees and directors, including grants of stock options and restricted stock, are recognized in the statements of operations based on
their estimated fair values on the date of grant, subject to an estimated forfeiture rate. The fair value of each option award with time-based vesting provisions is
estimated on the date of grant using the Black-Scholes option pricing model. The determination of fair value using the Black-Scholes option pricing model is
affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free
interest rate, expected dividends and projected employee stock option behaviors. The fair value of each option award with market-based vesting provisions is
estimated on the date of grant using a Monte Carlo simulation. The determination of fair value using a Monte Carlo simulation is affected by our stock price as well
as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and
projected employee stock option behaviors.

F- 9

Expected volatilities are based on the Company’s historical volatility, which management believes represents the most accurate basis for estimating expected future
volatility under the current circumstances. Navidea uses historical data to estimate forfeiture rates. The expected term of stock options granted is based on the
vesting period and the contractual life of the options. The risk-free rate is based on the U.S. Treasury yield in effect at the time of the grant. The assumptions used to
calculate the fair value of stock option awards granted during the years ended December 31, 2021 and 2020 are noted in the following table.

Expected volatility
Weighted-average volatility
Expected forfeiture rate
Expected term (in years)
Risk-free rate
Expected dividends

2021

2020

90% - 102%

86% - 102%

95%

92%

5.2% - 9.0% 7.0% - 10.5%

5.5 - 6.2

5.5 - 6.0

0.6% - 1.4% 0.4% - 1.5%

—

The portion of the fair value of stock-based awards that is ultimately expected to vest is recognized as compensation expense over either (1) the requisite service
period or (2) the estimated performance period. Restricted stock awards are valued based on the closing stock price on the date of grant and amortized ratably over
the estimated life of the award. Restricted stock may vest based on the passage of time, or upon occurrence of a specific event or achievement of goals as defined in
the grant agreements. In such cases, we record compensation expense related to grants of restricted stock based on management’s estimates of the probable dates of
the vesting events. Stock-based awards that do not vest because the requisite service period is not met prior to termination result in reversal of previously
recognized compensation cost. See Note 4.

f. Research and Development Costs: R&D expenses include both internal R&D activities and external contracted services. Internal R&D activity expenses include
salaries, benefits, and stock-based compensation, as well as travel, supplies, and other costs to support our R&D staff. External contracted services include clinical
trial activities, manufacturing and control-related activities, and regulatory costs. R&D expenses are charged to operations as incurred. We review and accrue R&D
expenses based on services performed and rely upon estimates of those costs applicable to the stage of completion of each project.

g. Stock Subscriptions and Other Receivables: Stock subscriptions and other receivables are recorded net of an allowance for doubtful accounts. We estimate an

allowance for doubtful accounts based on a review and assessment of specific accounts and other receivables and write off accounts against the allowance account
when deemed uncollectible. See Note 6.

Inventory: All components of inventory are valued at the lower of cost (first-in, first-out) or net realizable value. We adjust inventory to net realizable value when
the net realizable value is lower than the carrying cost of the inventory. Net realizable value is determined based on estimated sales activity and margins. We
estimate a reserve for obsolete inventory based on management’s judgment of probable future commercial use, which is based on an analysis of current inventory
levels, estimated future sales and production rates, and estimated shelf lives. See Note 7.

Intangible Assets: Intangible assets consist primarily of license agreements, and patent and trademark costs. Intangible assets are stated at cost, less accumulated
amortization. License agreements and patent costs are amortized using the straight-line method over the estimated useful lives of the license agreements and patents
of approximately 5 to 15 years. Patent application costs are deferred pending the outcome of patent applications. Costs associated with unsuccessful patent
applications and abandoned intellectual property are expensed when determined to have no recoverable value. We evaluate the potential alternative uses of all
intangible assets, as well as the recoverability of the carrying values of intangible assets, on a recurring basis. During 2021 and 2020, we capitalized patent and
trademark costs of $304,000 and $278,000, respectively. During 2021 and 2020, we abandoned patents with previously-capitalized patent costs of $99,000 and
$9,000, respectively.

j. Leases: All of our leases are operating leases and are included in right-of-use lease assets, current lease liabilities and noncurrent lease liabilities on our

consolidated balance sheets. These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the
lease term using the Company’s incremental borrowing rates or implicit rates, when readily determinable. The discount rates used for each lease were based
principally on the Platinum debt, which was secured and outstanding for most of 2018. We used a “build-up” method where the approach was to estimate the
risk/credit spread priced into the debt rate and then adjust that for the remaining term of each lease. Additionally, some market research was completed on the
Company’s peer group as identified for purposes of compensation analysis. Short-term operating leases which have an initial term of 12 months or less are not
recorded on the consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense is included
in selling, general and administrative expenses on our consolidated statements of operations. See Note 11.

F- 10

k. Contingent Liabilities: We are subject to legal proceedings and claims that arise in the normal course of business. In accordance with ASC Topic 450,

Contingencies, we accrue for contingent liabilities when management determines it is probable that a liability has been incurred and the amount can be reasonably
estimated. This determination requires significant judgment by management. As of the date of the filing of this Annual Report on Form 10-K, we are engaged in
separate matters of ongoing litigation with Capital Royalty Partners II, L.P. and our former President and Chief Executive Officer, Dr. Michael Goldberg.

In assessing whether we should accrue a liability in our financial statements as a result of the lawsuits, we considered various factors, including the legal and
factual circumstances of the cases, the trial records and post-trial rulings of the applicable courts and appellate courts, the current status of the proceedings,
applicable law and the views of legal counsel. We have concluded that a loss from these cases is not probable and reasonably estimable and, therefore, a liability
has not been recorded with respect to these cases as of December 31, 2021. While we believe that the ultimate resolution of these matters will not have a material
impact on our financial statements, the outcome of litigation is inherently uncertain and the final resolution of these matters may result in expense to us in excess of
management's expectations. See Note 12.

l. Convertible Preferred Stock: The Company evaluated the provisions of the Series C, Series D and Series E Convertible Preferred Stock under Accounting

Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity, ASC 815, Derivatives and Hedging, ASC 470, Debt, and Accounting Series Release
(“ASR”) 268, Presentation in Financial Statements of “Redeemable Preferred Stocks.” Based on this evaluation, the Company determined that neither the Series C,
Series D nor Series E Preferred Stock is a mandatorily redeemable financial instrument and any obligation to issue a variable number of shares of Common Stock
is not unconditional. Accordingly, the Series C, Series D and Series E Preferred Stock should be classified as equity. Neither the embedded conversion option nor
the embedded call option meet the criteria to be separated from the Series C, Series D or Series E Preferred stock and thus these features should not be bifurcated
and accounted for as derivatives. Additionally, the Series C and Series D Preferred Stock contain a beneficial conversion feature (“BCF”). Prior to the adoption of
Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, effective January 1, 2021,
the BCF resulted in an increase to additional paid-in capital and a discount on the Series C and Series D Preferred Stock. The discounts on the Series C and Series D
Preferred Stock were considered to be fully amortized at the date of issuance because the Series C and Series D Preferred Stock are immediately convertible,
resulting in a deemed dividend at the date of issuance for the amount of the BCF. Following adoption of ASU 2020-06, no BCF is recorded in the consolidated
financial statements. Finally, the Company determined that the Series D and Series E Preferred Stock does not contain conversion features that could result in the
Company being required to redeem a portion of the shares converted, thus the Series D and Series E Preferred Stock should not be classified in mezzanine equity.
See Note 13.

m. Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax

consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and
operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date. Due to the uncertainty surrounding the realization of the deferred tax assets in future tax returns, all of the
deferred tax assets have been fully offset by a valuation allowance as of December 31, 2021 and 2020.

Current accounting standards include guidance on the accounting for uncertainty in income taxes recognized in the financial statements. Such standards also
prescribe a recognition threshold and measurement model for the financial statement recognition of a tax position taken, or expected to be taken, and provides
guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company believes that the ultimate
deductibility of all tax positions is highly certain, although there is uncertainty about the timing of such deductibility. As a result, no liability for uncertain tax
positions was recorded as of December 31, 2021 or 2020 and we do not expect any significant changes in the next twelve months. Should we need to accrue interest
or penalties on uncertain tax positions, we would recognize the interest as interest expense and the penalties as a selling, general and administrative expense. As of
December 31, 2021, tax years 2018-2021 remained subject to examination by federal and state tax authorities. See Note 14.

F- 11

n. Recently Adopted Accounting Standards: In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, Fair Value

Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 is intended to improve
the effectiveness of disclosure requirements on fair value measurements in Topic 820. ASU 2018-13 modifies certain disclosure requirements and is effective for
annual and interim reporting periods beginning after December 15, 2019. The adoption of ASU 2018-13 did not have any impact on our consolidated financial
statements or our fair value disclosures.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to
improve consistent application and simplify the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and
clarifies and amends existing guidance. ASU 2019-12 is effective for annual and interim reporting periods beginning after December 12, 2020, with early adoption
permitted. The adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 was issued to
reduce the complexity associated with accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 reduces the number of
accounting models for convertible debt instruments and convertible preferred stock and improves the disclosures for convertible instruments and related earnings-
per-share (“EPS”) guidance. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity and improves and
amends the related EPS guidance. ASU 2020-06 is effective for public business entities except smaller reporting companies for annual and interim reporting
periods beginning after December 15, 2021, and for annual and interim reporting periods beginning after December 15, 2023 for all other entities. Early adoption is
permitted, but the guidance must be adopted as of the beginning of a fiscal year. We adopted ASU 2020-06 effective January 1, 2021 using the modified
retrospective method. Prior to the adoption of ASU 2020-06, the BCF contained in the Series C and Series C Preferred Stock resulted in an increase to additional
paid-in capital and a discount on the Series C and Series D Preferred Stock. The discounts on the Series C and Series D Preferred Stock were considered to be fully
amortized at the date of issuance because the Series C and Series D Preferred Stock are immediately convertible, resulting in a deemed dividend at the date of
issuance for the amount of the BCF. Following adoption of ASU 2020-06, no BCF is recorded in the consolidated financial statements. The adoption of ASU
2020-06 did not result in a cumulative effect adjustment to retained earnings.

o. Recently Issued Accounting Standards: In May 2021, the FASB Issued ASU No. 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of
Freestanding Equity-Classified Written Call Options. ASU 2021-04 was issued to clarify and reduce diversity in an issuer’s accounting for modifications or
exchange of freestanding equity-classified written call options (for example, warrants) that remain equity-classified after modification or exchange. ASU 2021-04
requires that an entity treat a modification or exchange of a freestanding equity-classified written call option that remains equity-classified after modification or
exchange be treated as an exchange of the original instrument for a new instrument. ASU 2021-04 also clarifies how an entity should measure and recognize the
effect of a modification or exchange of a freestanding equity-classified written call option that remains equity-classified after modification or exchange. ASU
2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and should be
implemented prospectively to modifications or exchanges occurring on or after the effective date of the amendments. Early adoption is permitted, including in an
interim period. We do not expect the adoption of ASU 2021-04 to have a material impact on our consolidated financial statements.

In November 2021, the FASB issued ASU No. 2021-10, Disclosures by Business Entities about Government Assistance. ASU 2021-10 was issued to increase the
transparency of government assistance. ASU 2021-10 requires that entities make certain annual disclosures about transactions with a government that are accounted
for by applying a grant or contribution accounting model by analogy. The required disclosures include: (1) information about the nature of the transactions and the
related accounting policy used to account for the transactions; (2) the line items on the balance sheet and income statement that are affected by the transactions, and
the amounts applicable to each financial statement line item; and (3) significant terms and conditions of the transactions, including commitments and contingencies.
The amendments in ASU 2021-10 are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15,
2021. Early application of the amendments is permitted. An entity should apply the amendments in ASU 2021-10 either (1) prospectively to all transactions within
the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of
initial application or (2) retrospectively to those transactions. We do not expect the adoption of ASU 2021-10 to have an impact on our consolidated financial
statements, however we do expect to make the additional disclosures required by the update.

F- 12

2. Liquidity

The Company has been engaged in litigation with Platinum-Montaur Life Sciences LLC (“Platinum-Montaur”), an affiliate of Platinum Management (NY) LLC,
Platinum Partners Value Arbitrage Fund L.P., Platinum Partners Capital Opportunity Fund, Platinum Partners Liquid Opportunity Master Fund L.P., Platinum Liquid
Opportunity Management (NY) LLC, and Montsant Partners LLC (collectively, “Platinum”). See Note 12.

In addition, the Company is engaged in ongoing litigation with our former President and Chief Executive Officer, Dr. Goldberg. See Note 12.

The Company has also been engaged in ongoing litigation with Capital Royalty Partners II L.P. (“CRG”). See Note 12.

In February 2020, the Company executed agreements with two existing investors to purchase approximately 4.0 million shares of the Company’s Common Stock for
aggregate gross proceeds to Navidea of approximately $3.4 million. The entire $3.4 million was received during the first three quarters of 2020. See Note 13.

On May 6, 2020, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent with Keystone Capital Partners, LLC (“Keystone”) pursuant to
which the Company agreed to issue to Keystone 420,000 shares of newly-designated Series C Redeemable Convertible Preferred Stock (the “Series C Preferred Stock”)
for an aggregate purchase price of $4.2 million. The entire $4.2 million was received and the related Series C Preferred Stock was issued during the second and third
quarters of 2020. The Series C Preferred Stock was guaranteed by a portion of the proceeds of the CRG Judgment. See Note 13.

On August 9, 2020, the Company entered into a binding memorandum of understanding (“MOU”) with Jubilant Draximage Inc., dba Jubilant Radiopharma,
Radiopharmaceuticals Division (“Jubilant”). The MOU outlines the terms and framework for a potential Exclusive License and Distribution Agreement (“ELDA”) for
Navidea’s Tc99m-Tilmanocept Rheumatoid Arthritis diagnostic application in the United States, Canada, Mexico, and Latin America. In connection with the MOU, the
Company entered into a Stock Purchase Agreement with Jubilant (the “Jubilant Stock Purchase Agreement”), pursuant to which Jubilant purchased $1.0 million in shares
of the Company’s common stock (the “Transaction Shares”) in exchange for exclusivity of negotiations while due diligence efforts are completed. The investment was
priced “at market,” which was the closing price of Navidea’s common stock on the NYSE American on the trading day immediately preceding the investment.

The execution of the ELDA is subject to certain conditions, including negotiation of a definitive agreement in mutually acceptable form and Jubilant’s completion of its
due diligence. See Note 13.

On August 30, 2020, the Company entered into a Stock Purchase Agreement (the “Common Stock Purchase Agreement”) with each of the investors named therein (the
“Investors”), pursuant to which the Investors agreed to purchase from the Company, up to $25.0 million in shares of the Company’s common stock, par value $0.001 per
share (“Common Stock”). We received only $25,000 of the $5.0 million that was owed under the Common Stock Purchase Agreement. During the second quarter of 2021,
the Company determined that it was unlikely that the remaining $4.975 million would ever be collected. Accordingly, the common stock subscription receivable was
reversed from the consolidated balance sheet during the second quarter of 2021. On December 14, 2021, the Company terminated the Common Stock Purchase
Agreement. See Note 13.

On August 31, 2020, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent (the “Series D Preferred Stock Purchase Agreement”) with
Keystone pursuant to which the Company agreed to issue to Keystone 150,000 shares of newly-designated Series D Redeemable Convertible Preferred Stock (the “Series
D Preferred Stock”) for an aggregate purchase price of $15.0 million. Pursuant to the Series D Preferred Stock Purchase Agreement, Keystone agreed to purchase Series
D Preferred Stock in amounts to be determined by Keystone in one or more closings before the end of the nine-month period following the date when the Company’s
prospectus supplement to its existing registration statement on Form S-3 was filed with the SEC. Through July 7, 2021, Keystone purchased 72,500 shares of Series D
Preferred Stock pursuant to the Series D Preferred Stock Purchase Agreement for an aggregate purchase price of $7.25 million, leaving a remaining balance of 77,500
shares of Series D Preferred Stock. On July 8, 2021 (the “Amendment Effective Date”), the Company entered into an Amendment to Stock Purchase Agreement and
Letter of Investment Intent (the “Series D Amendment”) with Keystone pursuant to which Keystone purchased 22,077 shares of Series D Preferred Stock for an aggregate
purchase price of approximately $2.2 million. After purchasing the 22,077 shares, Keystone has no further right or obligation to purchase shares of Series D Preferred
Stock. Including the purchases pursuant to the Series D Amendment, Keystone’s purchases of Series D Preferred Stock pursuant to the Series D Purchase Agreement
during the year ended December 31, 2021 totaled 76,827 shares of Series D Preferred Stock for an aggregate purchase price of approximately $7.7 million. The Series D
Preferred Stock is convertible into a maximum of 5,147,000 shares of Common Stock. As of the date of filing of this Annual Report on Form 10-K, the 22,077
outstanding shares of Series D Preferred Stock have not been converted. See Note 13.

F- 13

On March 2, 2021, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent (the “Series E Preferred Stock Purchase Agreement”) with an
existing accredited investor, John K. Scott, Jr. pursuant to which the Company issued to Mr. Scott in a private placement transaction 50,000 shares of newly-designated
Series E Redeemable Convertible Preferred Stock (the “Series E Preferred Stock”) for an aggregate purchase price of $5.0 million. The Series E Preferred Stock is
convertible into a maximum of 2,173,913 shares of Common Stock. As of the date of filing of this Annual Report on Form 10-K, none of the Series E Preferred Stock has
been converted. See Note 13.

Navidea has used the net proceeds from these transactions to fund its R&D programs, including continued advancement of its two Phase 2b and Phase 3 clinical trials of
Tc99m tilmanocept in patients with rheumatoid arthritis, and for general working capital purposes and other operating expenses.

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020. Among the provisions contained in the CARES Act was
the creation of the Paycheck Protection Program (“PPP”) that provides for Small Business Administration (“SBA”) Section 7(a) loans for qualified small businesses. PPP
loan proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leaves;
rent; utilities; and interest on certain other outstanding debt. On May 18, 2020, Fifth Third Bank (the “Lender”) funded a loan to the Company in the amount of $366,000
under the SBA’s PPP (the “PPP Loan”). In accordance with the loan forgiveness requirements of the CARES Act, the Company used the proceeds from the PPP Loan
primarily for payroll costs, rent and utilities. On February 23, 2021, the Lender notified the Company that the entire PPP Loan amount of $366,000 was forgiven. See
Note 10.

We do not believe there has been a significant impact to the Company’s clinical development and regulatory timelines resulting from the ongoing COVID-19 global
pandemic. However, the COVID-19 outbreak delayed enrollment in our NAV3-32 clinical study in the United Kingdom due to national COVID-19-related shutdowns. In
addition, the regulatory approval process in India was delayed by the impact of COVID-19 in that country.

The Company has experienced recurring net losses and has used significant cash to fund its operations. The Company has considerable discretion over the extent of
development project expenditures and has the ability to curtail the related cash flows as needed. The Company also has funds remaining under outstanding grant awards,
and continues working to establish new sources of funding, including collaborations, potential equity investments, and additional grant funding that can augment the
balance sheet. However, based on our current working capital and our projected cash burn, management believes that there is substantial doubt about the Company’s
ability to continue as a going concern for a period of one year from the filing of this Annual Report on Form 10-K.

3. Revenue from Contracts with Customers

Navidea is focused on the development and commercialization of precision immunodiagnostic agents and immunotherapeutics. We manage our business based on two
primary types of drug products: (i) diagnostic substances, including Tc99m tilmanocept and other diagnostic applications of our Manocept platform, and (ii) therapeutic
development programs, including all therapeutic applications of our Manocept platform Tc99m tilmanocept, which the Company has a license to distribute outside of
Canada, Mexico and the United States, is the only one of the Company’s drug product candidates that has been approved for sale in any market. The Company has license
and distribution agreements in place in India and China, however Tc99 tilmanocept has only been approved for sale in Europe and Australia. On May 11, 2020, the
Company terminated its license and distribution agreement in Europe and Australia.

The Company also has an agreement in place to provide Meilleur Technologies, Inc. (“Meilleur”), a wholly-owned subsidiary of Cerveau Technologies, Inc. (“Cerveau”),
worldwide rights to conduct research using NAV4694, as well as an exclusive license for the development and commercialization of NAV4694 in Australia, Canada,
China, and Singapore. Meilleur also has an option to commercialize worldwide.

Currently, the Company recognizes revenue from up-front license fees and pre-market milestones after the cash has been received from its customers and the performance
obligations have been met. Payments for sales-based royalties and milestones are generally received after the related revenue has been recognized and invoiced. Normal
payment terms generally range from 15 to 90 days following milestone achievement or royalty invoice, in accordance with each contract.

Up-front and milestone payments received related to our license and distribution agreements in India and China are deferred until Tc99m tilmanocept has been approved
by the regulatory authorities in each of those countries. It is not possible to determine with any degree of certainty whether or when regulatory approval for this product
will be achieved in India or China, if at all. In addition, since sales of Tc99m tilmanocept have not yet begun in India or China, there is no basis for estimating whether, to
what degree, or the rate at which the product will be accepted and utilized in these markets. Therefore, it is not possible to determine with any degree of certainty the
expected sales in future periods in those countries. As such, the Company intends to recognize revenue from up-front and milestone payments on a straight-line basis
beginning at the time of regulatory approval in each country through the end of the initial term of each agreement. The initial term of each agreement is eight years in
India and ten years in China.

F- 14

The transaction price of a contract is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a
customer. Transaction prices do not include amounts collected on behalf of third parties (e.g., sales taxes). To determine the transaction price of a contract, the Company
considers the terms of the contract. For the purpose of determining transaction prices, the Company assumes that the goods or services will be transferred to the customer
as promised in accordance with existing contracts and that the contracts will not be cancelled, renewed, or modified.

When estimating a contract’s transaction price, the Company considers all the information (historical, current, and forecasted) that is reasonably available to it and
identifies possible consideration amounts. Most of the Company’s contracts with customers include both fixed and variable components of the transaction price. Under
those contracts, some or all of the consideration for satisfied performance obligations is contingent on events over which the Company has no direct influence. For
example, regulatory approval or product sales volume milestones are contingent upon the achievement of those milestones by the distributor. Additionally, the prices
charged to end users of Tc99m tilmanocept, upon which royalty payments are based in India and China, are set by the distributor in each of those countries.

The milestone payments have a binary outcome (that is, the Company will either receive all or none of each milestone payment) and can be estimated using the most-
likely-amount method. Taking into account the constraint on variable consideration, the Company has assessed the likelihood of achieving the non-sales-based milestone
payments in our current contracts and has determined that it is probable the milestones will be achieved and the Company will receive the consideration. Accordingly, it is
probable that including those payments in the transaction price will not result in a significant revenue reversal when the contingency is resolved. Therefore, the amount of
the non-sales-based milestone payments is included in the transaction price.

Royalties are estimated based on the expected value method because they are based on a variable amount of sales representing a range of possible outcomes. However,
when taking into account the constraint on variable consideration, the estimate of future royalties included in the transaction price is generally $0. This conclusion is
based on the fact that Tc99m tilmanocept is early in the commercial launch process in Europe and Australia, and sales have not yet begun in India or China, therefore
there is currently no basis for estimating whether, to what degree, or the rate at which the product will be accepted and utilized in these markets. Similarly, we currently
have no basis for estimating whether sales-based milestones will ever be achieved. Accordingly, the Company recognizes revenue from royalties when the related sales
occur and from sales-based milestones when they are achieved.

The sublicense of NAV4694 to Meilleur provides for payments to Navidea including up-front payments, milestones, an option for worldwide commercial rights, royalties
on net sales, and reimbursement for product development assistance during the initial transition period. In accordance with Accounting Standards Codification No. 606,
Revenue from Contracts with Customers (“ASC 606”), the upfront payments were recognized upon contract inception, and reimbursement for product development
assistance will be recognized on a monthly basis. Should some or all of the variable consideration from milestones, the option and royalties meet the requirements of the
revenue recognition standard to be included in the transaction price, those amounts will be recognized as revenue in future periods.

Up-front fees, milestones and royalties are generally non-refundable. Therefore, the Company does not estimate expected refunds nor do we adjust revenue downward.
The Company will evaluate and update the estimated transaction prices of its contracts with customers at the end of each reporting period.

During the years ended December 31, 2021 and 2020, the Company recognized revenue from contracts with customers of approximately $46,000 and $119,000,
respectively. During the years ended December 31, 2021 and 2020, the Company did not recognize any related impairment losses, nor did the Company recognize any
revenue from performance obligations associated with long-term contracts that were satisfied (or partially satisfied) in previous periods.

F- 15

The following table disaggregates the Company’s revenue from contracts with customers for the years ended December 31, 2021 and 2020.

Royalty revenue:

Tc99m tilmanocept - Europe

License revenue:

Tc99m tilmanocept - Europe

Years Ended
December 31,

2021

2020

— $

7,995

45,615 $

110,730

The following economic factors affect the nature, amount, timing and uncertainty of the Company’s revenue and cash flows as indicated:

Geographical Location of Customers: Drug pricing models vary among different markets, which in turn may affect the royalty rates and milestones we are able to
negotiate with our distributors in those markets. Royalty rates and milestone payments vary by contract but may be based in part on the potential market size in each
territory. In the case of Tc99m tilmanocept, royalty rates for Europe were lower than rates in India but higher than in China.

Status of Regulatory Approval: The majority of revenue from contracts with customers will generally be recognized after the product is approved for sale in each
market. Each Tc99m tilmanocept customer operates in its own distinct regulatory environment, and the laws and pathways to drug product approval vary by market.
Tc99m tilmanocept has been approved for sale in Europe, thus the Company recognized royalties from sales in Europe. Tc99m tilmanocept has not yet been
approved for sale in India or China, and may never achieve approval in those markets. The regulatory pathways and timelines in those markets will impact whether
and when the Company recognizes the related royalties and milestones. Similarly, NAV4694 has not yet been approved for sale in any market, thus the timing of any
revenue related to that product will be dependent on the regulatory pathways and timelines in each market in which Meilleur seeks regulatory approval.

Through December 31, 2021, the Company has not capitalized any contract-related costs as contract assets.

The following table summarizes the changes in contract liabilities, the current portion of which is included in accrued liabilities and other in the consolidated balance
sheets, during the years ended December 31, 2021 and 2020.

Total deferred revenue, beginning of period
Revenue deferred related to sublicense
Refund of deferred revenue related to sublicense
Revenue recognized from satisfaction of performance obligations
Total deferred revenue, end of period

Year Ended December 31,

2021

2020

700,000 $
—
—
—
700,000 $

700,000
160,000
(160,000)
—
700,000

The Company had license revenue receivable of approximately $1,000 and $59,000 outstanding as of December 31, 2021 and 2020, respectively.

In addition to revenue from contracts from customers, we also generate revenue from National Institutes of Health (“NIH”) grants to support various product development
initiatives. The revenue recognition standard applies to revenue from contracts with customers. A customer is defined as a party that has contracted with an entity to obtain
goods or services that are an output of the entity’s ongoing major or central operations in exchange for consideration. The Company’s ongoing major or central operations
consist of the development and commercialization of precision immunodiagnostic agents and immunotherapeutics. The NIH and its various institutes are responsible for
biomedical and public health research and provide major biomedical research funding to non-NIH research facilities and entities such as Navidea. While the Company
will directly benefit from any knowledge gained from the project, there is also a public health benefit provided, which justifies the use of public funds in the form of the
grants. Based on the nature of the Company’s operations and the terms of the grant awards, Navidea does not have a vendor-customer relationship with the NIH and the
grant awards are outside the scope of the revenue recognition standard. Accordingly, the revenue recognition standard need not be applied to the NIH grants. During the
years ended December 31, 2021 and 2020, the Company recognized grant revenue of $88,000 and $696,000, respectively.

F- 16

Pursuant to the Termination Agreement, the parties agreed that neither owed the other any payments due under the License Agreement as of the Termination Date and
that, among other things, SpePharm no longer has any right in, nor claim to, any intellectual property owned by the Company or its affiliates anywhere in the world.
SpePharm also agreed to perform certain wind-down activities (the “Wind-Down Activities”) during the six-month period following the Termination Date (the “Transition
Period”), which Transition Period was extended by ninety days. The Wind-Down Activities included, without limitation, SpePharm transferring to the Company or its
designee(s) the regulatory approvals controlled by SpePharm or its affiliates for the purpose of marketing, distributing and selling the Products in the Licensed Territory.
SpePharm also transferred to the Company certain tenders and other customer and sales contracts related to the Products. Subject to the terms of the Termination
Agreement, Norgine, an affiliate of SpePharm, agreed to guarantee SpePharm’s performance of its obligations under the Termination Agreement. Although the Transition
Period has elapsed, SpePharm continued to fulfill customer orders until the Company obtained the regulatory license required to distribute the product in Europe, which
license was received in the fourth quarter of 2021.

4. Stock-Based Compensation

For the years ended December 31, 2021 and 2020, our total stock-based compensation expense, which includes reversals of expense and incremental expense for certain
modified, forfeited or cancelled awards, was approximately $471,000 and $231,000, respectively. We have not recorded any income tax benefit related to stock-based
compensation for the years ended December 31, 2021 and 2020.

On November 23, 2021, our former Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, Jed A. Latkin, signed a Separation Agreement and
General Release (the “Separation Agreement”) in connection with his resignation from those positions and as a director on October 24, 2021 (the “Separation Date”).
Pursuant to the Separation Agreement, among other things, the Company agreed to provide Mr. Latkin with certain separation benefits, commencing on the “Effective
Date,” defined as the eighth day after Mr. Latkin signed, without revoking, the Separation Agreement. On the Effective Date, each of Mr. Latkin’s unvested stock options
vested, and all of his vested stock options (covering 69,918 shares) and previously unvested options (covering 333,332 shares) may be exercised by Mr. Latkin on or
before the earlier of the fifth anniversary of the Separation Date and the original expiration date. On the Effective Date, each of Mr. Latkin’s 33,333 outstanding unvested
restricted stock units became fully vested, and all of such restricted stock units were settled within thirty days after the Separation Date, less applicable withholding in
shares of common stock. As a result of these equity award modifications, the Company reversed prior expense of $503,000 and recognized incremental expense of
$243,000 during the fourth quarter of 2021.

A summary of the status of our stock options as of December 31, 2021, and changes during the year then ended, is presented below.

Outstanding, January 1, 2021
Granted
Exercised
Canceled and forfeited
Expired
Outstanding, December 31, 2021
Exercisable, December 31, 2021

Year Ended December 31, 2021
Weighted
Average
Remaining
Contractual
Life (in years)

Weighted
Average
Exercise
Price

Aggregate
Intrinsic
Value

8.81
1.94
1.06
4.70
61.75
5.67
8.40

6.5
4.6

$
$

—
—

Number of
Options

549,970 $
459,500
(4,000)
(83,590)
(2,090)
919,790 $
549,024 $

The weighted average grant-date fair value of options granted in 2021 and 2020 was $1.46 and $1.36, respectively. During 2021, 4,000 stock options with an aggregate
intrinsic value of $2,500 were exercised in exchange for issuance of 4,000 shares of our Common Stock, resulting in gross proceeds of $4,240. No stock options were
exercised during 2020. The aggregate fair value of stock options vested during 2021 and 2020 was $122,000 and $0, respectively.

A summary of the status of our unvested restricted stock as of December 31, 2021, and changes during the year then ended, is presented below.

Unvested, January 1, 2021
Granted
Vested
Unvested, December 31, 2021

F- 17

Year Ended
December 31, 2021

Number of
Shares

60,000 $
105,000
(70,000)
95,000 $

Weighted
Average
Grant-Date
Fair Value

2.90
1.48
2.81
1.40

During 2021 and 2020, 70,000 and 15,000 shares, respectively, of restricted stock vested with aggregate vesting date fair values of $113,000 and $17,000, respectively.
During 2021 and 2020, 20,000 and 15,000 shares of restricted stock held by non-employee directors with aggregate fair values of $43,000 and $17,000, respectively,
vested as scheduled according to the terms of the restricted stock agreements.

As of December 31, 2021, there was approximately $320,000 of total unrecognized compensation cost related to stock option and restricted stock awards, which we
expect to recognize over remaining weighted average vesting terms of 1.8 years.

5. Loss Per Share

Basic loss per share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares. Diluted loss per share
reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by
the Company include convertible preferred stock, options and warrants.

Diluted loss per common share for the years ended December 31, 2021 and 2020 excludes the effects of 1,892,114 and 1,541,844 common share equivalents, respectively,
since such inclusion would be anti-dilutive. The excluded shares consist of common shares issuable upon exercise of outstanding stock options and warrants.

The Company’s unvested stock awards contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating
securities”). Therefore, the unvested stock awards are required to be included in the number of shares outstanding for both basic and diluted earnings per share
calculations. However, due to our loss from continuing operations, 95,000 and 60,000 shares of unvested restricted stock for the years ended December 31, 2021 and
2020, respectively, were excluded in determining basic and diluted loss per share because such inclusion would be anti-dilutive.

6. Stock Subscriptions and Other Receivables and Concentrations of Credit Risk

Stock subscriptions and other receivables as of December 31, 2021 and 2020 consist of the following:

Related parties
Stock subscriptions
License revenue
Grant revenue
Other

Total stock subscriptions and other receivables

2021

2020

86,796 $
—
1,021
919
4,256
92,992 $

—
2,925,000
58,754
1,117
2,448
2,987,319

As of December 31, 2021 and 2020, approximately 0% and 98%, respectively, of net stock subscriptions and other receivables were due from investors. As of December
31, 2021 and 2020, there was no allowance for doubtful accounts. We do not believe we are exposed to significant credit risk related to the receivables due from related
parties based on receipt of a majority of these amounts prior to the filing of this Annual Report on Form 10-K. We believe that we have adequately addressed credit risks
in estimating the allowance for doubtful accounts.

Inventory

The components of net inventory as of December 31, 2021 and 2020 are presented in the following table.

Materials
Finished goods

Total inventory

December 31,
2021

December 31,
2020

50,000 $
101,155
151,155 $

77,750
92,048
169,798

During 2021 and 2020, we utilized $28,000 and $11,000, respectively, of materials inventory for process development purposes. Also during 2021 and 2020, we allocated
$0 and $39,000, respectively, of finished goods inventory for use in clinical trials. These transactions were recorded in research and development expense in the
consolidated statement of operations.

F- 18

8. Property and Equipment

The major classes of property and equipment are presented in the following table.

Purchased software
Production machinery and equipment
Other machinery and equipment, primarily computers and research equipment
Leasehold improvements*
Furniture and fixtures

Total property and equipment

Useful Life
(years)
3
5
3 – 5

Term of Lease

2021

2020

320,435 $
214,356
304,492
23,511
3,512
866,306 $

320,435
214,356
297,315
12,448
825
845,379

* We amortize leasehold improvements over the term of the lease, which in all cases is shorter than the estimated useful life of the asset.

During 2021 and 2020, we recorded $36,803 and $33,929, respectively, of depreciation and amortization related to property and equipment.

9. Accounts Payable, Accrued Liabilities and Other

Accounts payable as of December 31, 2021 and 2020 includes an aggregate of $57,000 and $66,000 respectively, due to related parties for director fees. Accrued
liabilities and other as of December 31, 2021 and 2020 includes an aggregate of $1.2 million and $755,000, respectively, due to related parties for accrued separation
costs, bonuses and benefits. During the second quarter of 2021, the Company began paying director fees in both cash and stock. As a result, the cash portion of director
fees due are included in accounts payable and the stock portion are included in accrued liabilities and other in the consolidated balance sheet as of December 31, 2021.
During the fourth quarter of 2021, certain directors elected to defer receipt of both cash and stock for director fees until at least July 1, 2022.

Accrued liabilities and other as of December 31, 2021 and 2020 are presented in the following table.

Contracted services
Compensation
Other

Total accrued liabilities and other

10. Notes Payable

First Insurance Funding

2021

2020

1,913,756 $
1,194,719
40,865
3,149,340 $

1,725,866
755,494
31,634
2,512,994

In November 2019, we prepaid $349,000 of insurance premiums through the issuance of a note payable to First Insurance Funding (“FIF”) with an interest rate of 5.0%.
The note was payable in eight monthly installments of $44,000, with the final payment made in July 2020.

Interest expense related to the FIF note payable totaled $5,000 during the year ended December 31, 2020.

IPFS Corporation

In November 2020, we prepaid $442,000 of insurance premiums through the issuance of a note payable to IPFS Corporation (“IPFS”) with an interest rate of 3.5%. The
note was payable in seven monthly installments of $64,000, with the final payment made in June 2021. In November 2021, we prepaid $566,000 of insurance premiums
through the issuance of a note payable to IPFS with an interest rate of 4.36%. The note is payable in five monthly installments of $114,000, with the final payment due in
April 2022.

Interest expense related to the IPFS notes payable totaled $6,000 and $1,000 during the years ended December 31, 2021 and 2020, respectively. The balance of the IPFS
notes was approximately $453,000 and $379,000 as of December 31, 2021 and 2020, respectively, and was included in notes payable, current in the consolidated balance
sheets.

F- 19

Paycheck Protection Program

The CARES Act was enacted on March 27, 2020. Among the provisions contained in the CARES Act was the creation of the PPP that provides for SBA Section 7(a)
loans for qualified small businesses. PPP Loan proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group
health care benefits, and paid leaves; rent; utilities; and interest on certain other outstanding debt. On May 18, 2020, the Lender funded the PPP Loan in the amount of
$366,000. In accordance with the loan forgiveness requirements of the CARES Act, the Company used the proceeds from the PPP Loan primarily for payroll costs, rent
and utilities. On February 23, 2021, the Lender notified the Company that the entire PPP Loan amount of $366,000 had been forgiven. The forgiveness was recorded as a
gain on extinguishment of debt on the consolidated statement of operations. See Note 2.

Summary

During the years ended December 31, 2021 and 2020, we recorded interest expense of $6,000 in both periods related to our notes payable. Annual principal maturities of
our notes payable are $453,000 in 2022.

11. Leases

In addition, we currently lease approximately 25,000 square feet of office space at 5600 Blazer Parkway, Dublin, Ohio, formerly our principal offices, at a monthly base
rent of approximately $27,000 during 2021. The current lease term expires in October 2022 with an option to extend for an additional five years. The Company does not
intend to renew this lease. In June 2017, the Company executed a sublease arrangement for the Blazer space, providing for monthly sublease payments to Navidea of
approximately $39,000 through October 2022.

We currently lease office equipment at a monthly payment of approximately $100, expiring in October 2024. We also leased a vehicle at a monthly payment of
approximately $300, which expired in September 2021.

Total operating lease expense was $172,000 and $198,000 for the years ended December 31, 2021 and 2020, respectively. Operating lease expense was recorded in selling,
general and administrative expenses on our consolidated statements of operations.

F- 20

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2021.

Maturity of Lease Liabilities
2022
2023
2024

Total undiscounted operating lease payments
Less imputed interest

Present value of operating lease liabilities

Balance Sheet Classification
Current lease liabilities
Noncurrent lease liabilities

Total operating lease liabilities

Other Information
Weighted-average remaining lease term for operating leases (years)
Weighted-average discount rate for operating leases

Operating
Lease
Payments

291,111
19,699
1,355
312,165
16,159
296,006

275,718
20,288
296,006

0.9
10.96%

Cash paid for amounts included in the present value of operating lease liabilities was $344,000 and $339,000 during the years ended December 31, 2021 and 2020,
respectively, and is included in operating cash flows.

12. Commitments and Contingencies

We are subject to legal proceedings and claims that arise in the ordinary course of business. In accordance with ASC Topic 450, Contingencies, we make a provision for a
liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The amount of ultimate liability, if any, with
respect to these actions is unknown.

CRG Litigation

The Company has been engaged in ongoing litigation with CRG, in its capacity as a lender and as control agent for other affiliated lenders party to the CRG Loan
Agreement (collectively, the “CRG Lenders”), in the District Court of Harris County, Texas (the “Texas Court”) relating to CRG’s claims of default under the terms the
CRG Loan Agreement. Following a trial in December 2017, the Texas Court ruled that the Company’s total obligation to CRG was in excess of $66.0 million, limited to
$66.0 million under the Global Settlement Agreement (“GSA”) dated March 3, 2017. The Texas Court acknowledged only the $59.0 million payment made in March
2017, concluding that the Company owed CRG another $7.0 million, however the Texas Court did not expressly take the Company’s June 2016 payment of $4.1 million
into account and awarded, as part of the $66.0 million, amounts that had already been paid as part of the $4.1 million. The Company believes that this $4.1 million should
be credited against the $7.0 million and has appealed the Texas Court’s judgment. The Court of Appeals dismissed the Company’s appeal without reaching the merits due
to a contractual waiver of appeal.

On April 9, 2018, CRG drew approximately $7.1 million on the Cardinal Health 414, LLC (“Cardinal Health 414”) letter of credit. These were funds to which Navidea
would otherwise have been entitled. This was in addition to the $4.1 million and the $59.0 million that Navidea had previously paid to CRG.

The Company has also been engaged in ongoing litigation with CRG in the Court of Common Pleas of Franklin County, Ohio (the “Ohio Court”) related to Navidea’s
claims that the CRG Lenders fraudulently induced Navidea to enter into a settlement agreement and breached the terms of the same through certain actions taken by the
CRG Lenders in connection with the GSA, pursuant to which Navidea agreed to pay up to $66.0 million to the CRG Lenders, as well as through actions and
misrepresentations by CRG after the GSA was executed. The claims in that suit were for breach of contract, conversion and unjust enrichment against the CRG Lenders
for their collection of more than $66.0 million, the maximum permitted under the GSA, and their double recovery of amounts paid as part of the $4.1 million paid in June
2016 and recovered again as part of the $66.0 million. CRG’s double recovery and recovery of more than $66.0 million are due to CRG drawing the entire $7.1 million on
the Cardinal Health 414 letter of credit. The CRG Lenders sought a Writ of Prohibition in the Ohio Supreme Court to prevent this case from moving forward, which was
denied, and proceedings resumed in front of the Ohio Court. Following an unsuccessful mediation on May 7, 2019, Navidea moved for summary judgment on June 28,
2019. On November 27, 2019, the Ohio Court found that when CRG collected more than $66.0 million, they took an excess recovery and breached the GSA. The Ohio
Court awarded approximately $4.3 million to Navidea, plus statutory interest from April 9, 2018, the date CRG drew on the Cardinal Health 414 letter of credit. The Ohio
Court also found that there was no unjust enrichment or conversion by CRG since this was a matter of contract and only contract damages were appropriate. The decision
was a final appealable order and terminated the case before the Ohio Court. On December 5, 2019, CRG filed a notice of appeal with Ohio’s 10th District Court of
Appeals regarding the judgment in favor of Navidea. The briefing of the appeal concluded on March 27, 2020, and oral argument on the appeal was held on September
23, 2020. On March 16, 2021, Ohio’s 10th District Court of Appeals issued a decision which reversed the Ohio Court’s November 27, 2019 ruling that CRG breached the
GSA and its award of $4.3 million plus statutory interest to Navidea. The Ohio Court of Appeals held that the Ohio Court did not have jurisdiction to adjudicate
Navidea’s claims and therefore did not rule on the factual merits of Navidea’s claims regarding CRG’s recovery in excess of the contractually agreed maximum amount.
The Ohio Supreme Court declined to hear the case so the Ohio litigation has concluded.

F- 21

In April 2018, CRG asserted claims against Navidea and MT for alleged breaches of the GSA and the CRG Loan Agreement entered into by Navidea arising from the
Navidea’s challenge to CRG’s drawing down on letters of credit in the full amount of $7.1 million which Navidea claims resulted in an overpayment of approximately
$4.2 million under the CRG Loan Agreement. CRG also seeks declaratory judgment relief that essentially mirrors their claims for affirmative relief, i.e., that the
Company breached the GSA and indemnification provision of the CRG Loan Agreement, and that CRG did not breach the GSA.

On November 21, 2021, the Texas Court entered an interlocutory judgment declaring that CRG did not breach the GSA, but that Navidea did breach the GSA and the
indemnification provision of the CRG Loan Agreement. In the interlocutory order, the Texas Court awarded as damages reasonable attorneys' fees in an amount, if any, to
be determined at trial. The case is set for a bench trial on May 17, 2022. CRG has made a claim of approximately $2.8 million in attorneys' fees they contend they are
entitled to in connection with the alleged breaches of the agreements. Navidea contends CRG have received payments in excess of the amounts owed under the CRG Loan
Agreement and are not entitled to an award of attorney’s fees. Discovery is ongoing and a motion to amend the interlocutory partial summary judgment is pending. The
amount of ultimate liability, if any, with respect to this action is unknown. See Note 2.

Platinum Litigation

In November 2017, Platinum-Montaur commenced an action against the Company in the Supreme Court of the State of New York, County of New York (the “New York
Supreme Court”), seeking damages of approximately $1.9 million purportedly due as of March 3, 2017, plus interest accruing thereafter. The claims asserted were for
breach of contract and unjust enrichment in connection with funds received by the Company under the Platinum Loan Agreement. The action was subsequently removed
to the United States District Court for the Southern District of New York. On October 31, 2018, the District Court granted judgment for Navidea and dismissed all claims
in the case. The District Court stated that Platinum-Montaur had no standing to assert any contractual interest in funds that might be due under the Platinum Loan
Agreement. The District Court also disagreed with Platinum-Montaur’s claim of unjust enrichment on similar grounds and found that Platinum-Montaur lacked any
sufficient personal stake to maintain claims against Navidea. The claims against Navidea were dismissed without prejudice on the grounds of lack of standing to pursue
the claims asserted.

On November 30, 2018, Platinum-Montaur filed a notice of appeal with the United States Court of Appeals for the Second Circuit (the “Second Circuit”) claiming that the
District Court erred in dismissing Platinum-Montaur’s claims for breach of contract and unjust enrichment. On January 22, 2019, Platinum-Montaur filed its brief in the
Second Circuit, asking the Second Circuit to reverse the District Court and remand the case to the District Court for further proceedings. The Second Circuit held oral
argument in this matter on September 5, 2019. On November 25, 2019, the Second Circuit issued a decision which remanded the case to the District Court for further
consideration of whether the District Court had jurisdiction over the case following removal from the New York Supreme Court. The Second Circuit did not address the
merits of Platinum-Montaur’s allegations against Navidea. By agreement of the parties, the case was remanded from the District Court to the New York Supreme Court.
Navidea filed a Motion to Dismiss on June 4, 2020, and on September 2, 2020, the New York Supreme Court granted the Motion to Dismiss. Platinum-Montaur filed a
Notice of Appeal of the New York Supreme Court’s decision on September 23, 2020 and the appeal was docketed with the Appellate Department-First Division.
Platinum-Montaur perfected an appeal of the judgment in favor of the Company on or about June 28, 2021. In February 2022, Platinum and the Company settled their
dispute and Platinum’s lawsuit was dismissed. See Note 2.

Goldberg Agreement and Litigation

In August 2018, Dr. Goldberg resigned from his positions as an executive officer and a director of Navidea. In connection with Dr. Goldberg’s resignation, Navidea and
Dr. Goldberg entered into an Agreement (the “Goldberg Agreement”) which set forth the terms of the separation from service. Among other things, the Goldberg
Agreement provided that Dr. Goldberg would be entitled to 1,175,000 shares of our Common Stock, representing in part payment of accrued bonuses and payment of the
balance of the Platinum debt. A portion of the 1,175,000 shares to be issued to Dr. Goldberg would be held in escrow for up to 18 months in order to reimburse Navidea
in the event that Navidea is obligated to pay any portion of the Platinum debt to a party other than Dr. Goldberg. Further, the Goldberg Agreement provided that the
Company’s subsidiary, MT, would redeem all of Dr. Goldberg’s preferred stock and issue to Dr. Goldberg super voting common stock equal to 5% of the outstanding
shares of MT. In November 2018, the Company issued 925,000 shares of our Common Stock to Dr. Goldberg, 250,000 of which were placed in escrow in accordance
with the Goldberg Agreement.

F- 22

On February 11, 2019, Dr. Goldberg represented to the MT Board that he had, without MT Board or shareholder approval, created a subsidiary of MT, transferred all of
the assets of MT into the subsidiary, and then issued himself stock in the subsidiary. On February 19, 2019, Navidea notified MT that it was terminating the sublicense in
accordance with its terms, effective March 1, 2019, due to MT’s insolvency. On February 20, 2019, the MT Board removed Dr. Goldberg as President and Chief
Executive Officer of MT and from any other office of MT to which he may have been appointed or in which he was serving. Dr. Goldberg remains a member of the MT
Board, together with John K. Scott, Jr. and Dr. Michael S. Rosol. Mr. Scott is also the Vice Chair of the Board of Directors of Navidea. On or about February 17, 2022,
the Joint Official Liquidators and Foreign Representatives of PPVA executed the necessary paperwork to transfer its preferred stock in MT to Navidea.

New York Litigation Involving Dr. Goldberg

On February 20, 2019, Navidea filed a complaint against Dr. Goldberg in the United States District Court, Southern District of New York, alleging breach of the Goldberg
Agreement, as well as a breach of the covenant of good faith and fair dealing and to obtain a declaratory judgment that Navidea’s performance under the Goldberg
Agreement is excused and that Navidea is entitled to terminate the Goldberg Agreement as a result of Dr. Goldberg’s actions. On April 26, 2019, Navidea filed an
amended complaint against Dr. Goldberg which added a claim for breach of fiduciary duty seeking damages related to certain actions Dr. Goldberg took while CEO of
Navidea. On June 13, 2019, Dr. Goldberg answered the amended complaint and asserted counterclaims against Navidea and third-party claims against MT for breach of
the Goldberg Agreement, wrongful termination, injunctive relief, and quantum meruit.

On December 26, 2019, the District Court ruled on several motions related to Navidea and MT and Dr. Goldberg that substantially limited the claims that Dr. Goldberg
can pursue against Navidea and MT. Specifically, the District Court found that certain portions of Dr. Goldberg’s counterclaims against Navidea and third-party claims
against MT failed to state a claim upon which relief can be granted. Additionally, the District Court ruled that actions taken by Navidea and MT, including reconstituting
the MT board of directors, replacing Dr. Goldberg with Mr. Latkin as Chief Executive Officer of MT, terminating the sublicense between Navidea and MT, terminating
certain research projects, and allowing MT intellectual property to revert back to Navidea, were not breaches of the Goldberg Agreement.

In addition, the District Court found Navidea’s breach of fiduciary duty claim against Dr. Goldberg for conduct occurring more than three years prior to the filing of the
complaint to be time-barred and that Dr. Goldberg is entitled to an advancement of attorneys’ fees solely with respect to that claim. To avoid further litigation expenses,
the Company agreed to indemnify Dr. Goldberg solely with respect to the breach of fiduciary duty claim.

On January 31, 2020, Goldberg filed a motion for leave to amend his complaint to add back in claims for breach of contract, breach of the implied covenant of good faith
and fair dealing, quantum meruit and injunctive relief. On April 1, 2020, the District Court denied Dr. Goldberg’s motion for leave to amend in its entirety.

On January 27, 2020, Dr. Goldberg filed a motion seeking additional advancement from Navidea for fees in connection with the New York Action and the Delaware
Action. Navidea opposed the motion and the District Court referred the matters to a Magistrate Judge. On July 9, 2020, the Magistrate Judge issued her Report and
Recommendation which recommended that: (1) the District Court decline to exercise jurisdiction over Dr. Goldberg’s motion as it pertained to expenses and fees incurred
in defense of the Delaware Action; (2) the District Court decline to award any fees to Dr. Goldberg for the breach of fiduciary duty without additional motion practice on
the issue; (3) the District Court find that Dr. Goldberg is entitled to advancement of his expenses and fees reasonably incurred in the defense of the remainder of the New
York action subject to Dr. Goldberg’s posting of an undertaking; and (4) establish a protocol by which Dr. Goldberg could establish the amounts due for advancement.

On August 24, 2020, in connection with Dr. Goldberg’s motion for advancement, the District Court adopted the Magistrate Judge’s report and recommendation and found
that while Dr. Goldberg was not being granted advancement of fees and expenses incurred in connection with either the Delaware Action or the assertion of third-party
claims against MT, the Court ruled that Dr. Goldberg was entitled to advancement for the defense of the remaining claims asserted against him by Navidea in the New
York action. The Court adopted a protocol by which additional motion practice will occur to determine the appropriate amount of fees to be advanced. Once that decision
is made by the Magistrate Judge, subject to review by the District Court, Navidea will need to advance those fees to Dr. Goldberg conditioned upon Dr. Goldberg agreeing
to pay those fees back to Navidea if it is determined that he is not entitled to indemnification.

F- 23

On May 27, 2021, the District Court ordered that: (1) Dr. Goldberg be awarded $14,955 for indemnification for his attorneys’ fees for his defense of the breach of
fiduciary duty claim; (2) Dr. Goldberg be advanced $1,237.50 for his attorneys’ fees subject to repayment; (3) Navidea should not be required to indemnify or advance
any of the costs sought by Dr. Goldberg; (4) Dr. Goldberg is not entitled to advancement for the prosecution of his counterclaims and third-party claims; (5) Dr.
Goldberg’s motion to hold Navidea in contempt be denied; and (6) Navidea should not be required to advance any additional fees or costs unless Dr. Goldberg presents
his time records and costs in compliance with the District Court’s orders. The Company has made the payments ordered by the District Court.

On August 6, 2021, the Company moved for reconsideration of its obligations to advance fees in light of the Delaware Court’s decision dated June 23, 2021 (described
below). On October 14, 2021, the Magistrate Judge recommended that Navidea’s motion for reconsideration be denied. On March 7, 2022, the District Court adopted the
Report and Recommendation in part and permitted Dr. Goldberg to seek advancement for his fees incurred in defense of his claims since September 1, 2020. Dr.
Goldberg’s application is due on or before April 8, 2022.

Delaware Litigation Involving Dr. Goldberg

On February 20, 2019, MT initiated a suit against Dr. Goldberg in the Court of Chancery of the State of Delaware (the “Delaware Court”), alleging, among other things,
breach of fiduciary duty as a director and officer of MT and conversion, and to obtain a declaratory judgment that the transactions Dr. Goldberg caused MT to effect are
void. On June 12, 2019, the Delaware Court found that Dr. Goldberg’s actions were not authorized in compliance with the Delaware General Corporate Law. Specifically,
the Delaware Court found that Dr. Goldberg’s creation of a new subsidiary of MT and the purported assignment by Dr. Goldberg of MT’s intellectual property to that
subsidiary were void. The Delaware Court’s ruling follows the order on May 23, 2019 in the case, in which it found Dr. Goldberg in contempt of its prior order holding
Dr. Goldberg responsible for the payment of MT’s fees and costs to cure the damages caused by Dr. Goldberg’s contempt.

On June 23, 2021, the Delaware Court ruled in favor of MT and against Dr. Goldberg, finding that Dr. Goldberg breached his fiduciary duties to MT. Specifically, the
Delaware Court ruled: “Dr. Goldberg attempted to take for himself that which belonged to [MT]. In doing so, he breached his duty of loyalty to [MT] stockholders. [MT]
was absolutely justified in bringing this action to remedy (in this case undo) the harm caused by Dr. Goldberg’s misconduct.” The Delaware Court disagreed with MT’s
arguments regarding damages and, other than awarding nominal damages, declined to award additional relief beyond that which it had previously granted. With respect to
MT’s claim for conversion, the Delaware Court found that the claim was not supported because “Dr. Goldberg confirmed that he currently does not own or possess any
intellectual property related to either Navidea or [MT]” and that “any IP Dr. Goldberg created while at Navidea or any of its subsidiaries was and remains the property of
Navidea and its subsidiaries.” In addition, the Delaware Court denied Dr. Goldberg’s motion to hold MT’s directors and CEO in contempt, denied Dr. Goldberg’s motion
to dismiss the lawsuit against him, and granted MT’s motion to dismiss Dr. Goldberg’s petition to remove MT’s board members. On December 9, 2021, Dr. Goldberg was
ordered to reimburse MT in the amount of $66,796.33 and has paid that amount to MT. Neither party has appealed the Delaware Court’s decision and the Delaware
Court’s decisions are now final. See Note 2.

NYSE American Continued Listing Standards

On January 28, 2022, the Company received a deficiency letter from the NYSE American LLC stating that Navidea was not in compliance with a certain NYSE American
continued listing standard relating to stockholders’ equity. Specifically, the deficiency letter stated that we are not in compliance with Section 1003(a)(iii) of the NYSE
American Company Guide, which requires an issuer to have stockholders’ equity of $6.0 million or more if it has reported losses from continuing operations and/or net
losses in its five most recent fiscal years. The deficiency letter noted that we had stockholders’ equity of $4.1 million as of September 30, 2021, and reported net losses
from continuing operations in our five most recent fiscal years ended December 31, 2020.

F- 24

We submitted a plan to the NYSE American on February 28, 2022 advising of actions we have taken and will take to regain compliance with the continued listing
standards by July 28, 2023. If our plan is not accepted, or if we do not make progress consistent with the plan, or if we otherwise fail to regain compliance by the
deadline, the NYSE American may commence delisting procedures. There is no assurance that we will meet continued listing standard.

13. Equity Instruments

a. Preferred Stock and Common Stock: In December 2019, the Company executed a Stock Purchase Agreement with the investors named therein. Pursuant to the
Stock Purchase Agreement, the investors agreed to purchase approximately 2.1 million shares of the Company’s Common Stock in a private placement for
aggregate gross proceeds to the Company of approximately $1.9 million. Of this amount, approximately $1.1 million was received during 2019 and the remaining
$812,000 of proceeds were received and the related Common Stock was issued in January 2020.

In February 2020, the Company executed agreements with two existing investors to purchase approximately 4.0 million shares of the Company’s Common Stock
for aggregate gross proceeds to Navidea of approximately $3.4 million. The entire $3.4 million was received and the related 4,020,588 shares of Common Stock
were issued during 2020.

On May 6, 2020, the Company entered into a Stock Purchase Agreement and Letter of Investment Intent with Keystone pursuant to which the Company agreed to
issue to Keystone 420,000 shares of newly-designated Series C Preferred Stock for an aggregate purchase price of $4.2 million. Pursuant to the Stock Purchase
Agreement, Keystone agreed to purchase shares of Series C Preferred Stock in amounts to be determined by Keystone in one or more closings on or before
November 6, 2020, provided that all of the Series C Preferred Stock must be purchased by such date. Holders of the Series C Preferred Stock had the option to
convert some or all of the Series C Preferred Stock into shares of the Company’s Common Stock at a 10% discount to market (the “Series C Conversion Shares”),
provided that the Company could not issue such Series C Conversion Shares in excess of 19.99% of the number of shares of Common Stock outstanding as of the
date of the investment (the “Series C Exchange Cap”) without shareholder approval, which the Company was not required to seek. The entire $4.2 million was
received and the related 420,000 shares of Series C Preferred Stock were issued during 2020. In accordance with current accounting guidance, the Company
recorded a deemed dividend of approximately $467,000 related to the BCF of the 420,000 shares of Series C Preferred Stock that were issued during the year ended
December 31, 2020. These 420,000 shares were subsequently converted into 1,425,076 shares of Common Stock during 2020.

On August 9, 2020, Company entered into a binding MOU with Jubilant. The MOU outlines the terms and framework for a potential Exclusive License and
Distribution Agreement for Navidea’s Tc99m-Tilmanocept Rheumatoid Arthritis diagnostic application in the United States, Canada, Mexico, and Latin America.
In connection with the MOU, the Company entered into a Stock Purchase Agreement with Jubilant, pursuant to which Jubilant purchased 209,205 shares of
Common Stock for gross proceeds of $1.0 million in exchange for exclusivity of negotiations while due diligence efforts are completed. The investment was priced
“at market,” which was the closing price of Navidea’s Common Stock on the NYSE American on the trading day immediately preceding the investment. See Note
2.

On August 30, 2020, the Company entered into a Common Stock Purchase Agreement with each of the Investors named therein, pursuant to which the Investors
agreed to purchase from the Company, up to $25.0 million in shares of the Company’s Common Stock. The initial closing of the sale and purchase of the Common
Stock (the “Initial Closing”) was required to occur within forty-five (45) business days after the date on which the NYSE American approved the Company’s listing
application for the Common Stock. The Investors agreed to purchase an aggregate of 1,000,000 shares of Common Stock at the Initial Closing, at a purchase price
of $5.00 per share. Subsequent closings of the sale and purchase of the Common Stock (each a “Subsequent Closing”) were to occur from time to time after the
Initial Closing on such dates and times as agreed upon by the Company and the Investors, but in any event no later than ninety (90) business days after the Initial
Closing; provided that the closing price of the Common Stock on the NYSE American exchange shall have closed at or above $5.00 for five consecutive trading
days. The Investors were to purchase the Common Stock at such Subsequent Closing at a price per share equal to market value within the meaning of Section 713 of
the NYSE American Company Guide; provided that in no event would the Investors be obligated to purchase Common Stock at a Subsequent Closing at a price
greater than $5.75 per share. The Company had the right to terminate the Common Stock Purchase Agreement upon written notice to the Investors if (a) the Initial
Closing had not occurred within ninety (90) days of the date of the agreement or (b) if the Investors have not purchased an aggregate of $25.0 million in Common
Stock as of the date that was ninety (90) business days after the Initial Closing. Notwithstanding the foregoing, no Investor was obligated to purchase any Common
Stock if such shares proposed to be purchased, when aggregated with all other shares of Common Stock then owned beneficially by such Investor and its affiliates,
would have resulted in the beneficial ownership by such Investor and its affiliates of more than 4.99% of the then issued and outstanding shares of Common Stock.
One of the Company’s existing investors, John K. Scott, Jr., was a party to the Common Stock Purchase Agreement and agreed to purchase $25,000 of Common
Stock, which amount was received and the related 5,000 shares of Common Stock were issued during 2020. In accordance with current accounting guidance, the
remaining $4.975 million of stock subscriptions receivable was included in common stock subscriptions receivable on the consolidated balance sheet as of
December 31, 2020. During the second quarter of 2021, the Company determined that it was unlikely that the remaining $4.975 million would ever be collected.
Accordingly, the common stock subscription receivable was reversed from the consolidated balance sheet during the second quarter of 2021. On December 14,
2021, the Company terminated the Common Stock Purchase Agreement. See Note 2.

F- 25

On August 31, 2020, the Company entered into the Series D Preferred Stock Purchase Agreement with Keystone pursuant to which the Company agreed to issue to
Keystone 150,000 shares of newly-designated Series D Preferred Stock for an aggregate purchase price of $15.0 million. Pursuant to the Series D Preferred Stock
Purchase Agreement, Keystone agreed to purchase Series D Preferred Stock in amounts to be determined by Keystone in one or more closings during the nine-
month period following the date on which the prospectus supplement to register the underlying Common Stock was filed with the SEC, provided that all of the
Series D Preferred Stock must be purchased by such date. Holders of the Series D Preferred Stock have the option to convert some or all of the Series D Preferred
Stock into shares of the Company’s Common Stock at a 10% discount to market (the “Series D Conversion Shares”), provided that the Company may not issue
such Series D Conversion Shares in excess of 19.99% of the number of shares of Company common stock outstanding as of the date of the investment without
shareholder approval, which the Company is not required to seek. The Series D Preferred Stock is convertible into a maximum of 5,147,000 shares of Common
Stock.

In the event of the liquidation or dissolution of the Company, after payment of the debts and other liabilities of the Company, the holders of Series D Preferred
Stock then outstanding shall be entitled to receive, out of the assets of the Company and before any payment may be made to the holders of Common Stock or any
other junior stock, an amount per share of Series D Preferred Stock calculated by taking the total amount available for distribution to holders of all outstanding
Common Stock before deduction of any preference payments for the Series D Preferred Stock, divided by the total of (x) all of the then outstanding shares of
Common Stock plus (y) all of the shares of Common Stock into which the outstanding shares of Series D Preferred Stock can be converted, and then (z)
multiplying the sum so obtained by the number of shares of Common Stock into which such share of Series D Preferred Stock could then be converted.

Of the $15.0 million, approximately $1.8 million was received and the related 17,750 shares of Series D Preferred Stock were issued during 2020. The Company
recorded a deemed dividend of approximately $197,000 related to the BCF of the 17,750 shares of Series D Preferred Stock that were issued during 2020. These
17,750 shares were subsequently converted into 827,280 shares of Common Stock during 2020. An additional $2.9 million was received and the related 29,250
shares of Series D Preferred Stock were issued during the period beginning on January 1, 2021 and ending on March 26, 2021, the date of filing of the 2020 Annual
Report on Form 10-K. These 29,250 shares of Series D Preferred Stock were subsequently converted into 1,375,089 shares of Common Stock during the period
beginning on January 1, 2021 and ending on March 26, 2021. In accordance with current accounting guidance, $2.9 million of stock subscriptions receivable was
included in stock subscriptions and other receivables, and approximately $10.3 million was included in preferred stock subscriptions receivable in the consolidated
balance sheet as of December 31, 2020.

Through July 7, 2021, Keystone purchased 72,500 shares of Series D Preferred Stock pursuant to the Series D Preferred Stock Purchase Agreement for an
aggregate purchase price of $7.25 million, which were subsequently converted into 3,778,789 shares of Common Stock through December 31, 2021. Of those
amounts, 17,750 shares of Series D Preferred Stock were purchased and converted into 827,280 shares of Common Stock in 2020, and 54,750 shares of Series D
Preferred Stock were purchased and converted into 2,951,509 shares of Common Stock in 2021. On July 8, 2021, the Company entered into the Series D
Amendment with Keystone pursuant to which Keystone purchased 22,077 shares of Series D Preferred Stock for an aggregate purchase price of approximately $2.2
million. After purchasing the 22,077 shares, Keystone has no further right or obligation to purchase shares of Series D Preferred Stock. Accordingly, the Series D
Preferred Stock subscription receivable was reduced to $0 on the condensed consolidated balance sheet as of December 31, 2021. Including the purchases pursuant
to the Series D Amendment, Keystone’s purchases of Series D Preferred Stock pursuant to the Series D Purchase Agreement during the year ended December 31,
2021 totaled 76,827 shares of Series D Preferred Stock for an aggregate purchase price of approximately $7.7 million. The Series D Amendment also contains a
customary mutual release provision. As of December 31, 2021, 22,077 shares of Series D Preferred Stock remain outstanding. See Note 2.

On March 2, 2021, the Company entered into a Series E Preferred Stock Purchase Agreement with an existing accredited investor, John K. Scott, Jr. pursuant to
which the Company issued to Mr. Scott in a private placement transaction 50,000 shares of Series E Preferred Stock for an aggregate purchase price of $5.0 million.

Under the Series E Preferred Stock Purchase Agreement, Mr. Scott was granted a right of first offer with respect to future issuances of Company securities (the
“Right of First Offer”); provided, however, that in no event shall Mr. Scott have such right if the acquisition of any of such securities would result in Mr. Scott
beneficially holding more than 33.33% of the Company’s outstanding Common Stock on an as-converted basis, as determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules thereunder (the “Share Cap”). In the event that Mr. Scott does not exercise the
Right of First Offer, the Company will then be entitled to offer and sell the new securities to any third party at a price not less than, and upon terms no more
favorable to the offeree than, those offered to Mr. Scott (a “Third Party Offering”). Pursuant to the Series E Preferred Stock Purchase Agreement, Mr. Scott also has
the option to purchase up to 33.33% of the new securities offered in a Third-Party Offering at the same price and upon the terms available to the other purchaser(s)
(the “Preemptive Right”); provided, however, that in no event may Mr. Scott acquire new Company securities in a Third-Party Offering to the extent the acquisition
thereof would violate the Share Cap. The Right of First Offer and the Preemptive Right expired on December 31, 2021.

F- 26

In connection with the private placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”), pursuant to which,
among other things, the Company prepared and filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1 to register for
resale the maximum number of Series E Conversion Shares (as defined below) issuable upon conversion of the Series E Preferred Stock. In the event that both (i)
the number of shares of Common Stock beneficially held by Mr. Scott falls below 20% of the outstanding Common Stock on an as-converted basis, as determined
in accordance with Section 13(d) of the Exchange Act and the rules thereunder, and (ii) Mr. Scott is an affiliate (as that term is defined under Rule 144) at the time
of the Reload Request (as defined below), the Company, upon written request from Mr. Scott (the “Reload Request”), will be required prepare and file with the
SEC one, and only one, additional registration statement covering the resale of those shares of Common Stock owned by Mr. Scott as of the date of the Reload
Request that, as of such time, are not registered for resale under the Securities Act of 1933, as amended (the “Securities Act”). The securities issued in the offering
have not been registered under the Securities Act, and until so registered the securities may not be offered or sold absent registration or availability of an applicable
exemption from registration.

Except with respect to transactions which may adversely affect any right, preference, privilege or voting power of the Series E Preferred Stock, the Series E
Preferred Stock has no voting rights. Whenever the Company’s Board of Directors declares a dividend on Common Stock, each record holder of a share of Series E
Preferred Stock on the record date set by the Board of Directors will be entitled to receive an amount equal to such dividend declared on one share of Common
Stock multiplied by the number of shares of Common Stock (the “Series E Conversion Shares”) into which such share of Series E Preferred Stock could be
converted on the record date, without regard to any conversion limitations in the Series E Preferred Certificate of Designation of Preferences, Rights and Limitations
(the “Series E Preferred Certificate”). Holders of the Series E Preferred Stock may convert some or all of the Series E Preferred Stock into Series E Conversion
Shares at a fixed price of $2.30 per Series E Conversion Share, provided that the aggregate number of Series E Conversion Shares issued pursuant to the Series E
Preferred Certificate cannot exceed the Share Cap without shareholder approval, which the Company is not required to seek. The Company has the right to redeem
any outstanding shares of Series E Preferred Stock at a price of $110 per share at any time on or prior to the one-year anniversary of the issuance date, payable in
cash. See Note 2.

Navidea has used the net proceeds from these transactions to fund its R&D programs, including continued advancement of its two Phase 2b and Phase 3 clinical
trials of Tc99m tilmanocept in patients with rheumatoid arthritis, and for general working capital purposes and other operating expenses. See Note 2.

During the years ended December 31, 2021 and 2020, we issued 30,018 and 32,651 shares of Common Stock as matching
contributions to our 401(k) Plan which were valued at $76,846 and $39,834, respectively.

During the year ended December 31, 2020, we issued 94,159 shares of our Common Stock valued at $172,000 to our full-time employees as partial payment in lieu
of cash for their 2019 bonuses. No such stock bonus payments were made during the year ended December 31, 2021.

b. Stock Warrants: As of December 31, 2021, there are 972,324 outstanding warrants to purchase Common Stock. The warrants are exercisable at prices ranging

from $0.20 to $49.80 per share with a weighted average exercise price per share of $17.97. The warrants have remaining outstanding terms ranging from 0.2 to 13.6
years.

The following table summarizes information about our outstanding warrants as of December 31, 2021.

Series HH
Series LL
Series NN
Series OO

Total warrants

* Weighted average exercise price.

Exercise
Price

Number of
Warrants

49.80
0.20
30.00
0.9375
17.97*

15,060
218,264
550,000
189,000
972,324

Expiration Date
6/25/2023
8/20/2035
3/3/2022
6/13/2024

In addition, 300 warrants to purchase MT Common Stock at $2,000 per share expired in March 2020.

c. Common Stock Reserved: As of December 31, 2021, we have reserved 1,892,114 shares of authorized Common Stock for the exercise of all outstanding stock
options and warrants, 1,368,211 shares for the issuance of Common Stock upon conversion of Series D Preferred Stock, 2,173,913 shares for the issuance of
Common Stock upon conversion of Series E Preferred Stock and 49,242 shares to be issued to certain directors who elected to defer receipt of both cash stock for
director fees until at least July 1, 2022. An additional 250,000 shares of Common Stock have been reserved for issuance to Dr. Goldberg related to the Goldberg
Agreement. See Note 11.

F- 27

14. Income Taxes

As of December 31, 2021 and 2020, our deferred tax assets (“DTAs”) were approximately $48.5 million and $45.8 million, respectively. The components of our deferred
tax assets are summarized in the following table.

Deferred tax assets:

Net operating loss carryforwards
R&D credit carryforwards
Stock compensation
Intangibles
Disallowed interest expense
Temporary differences

Deferred tax assets before valuation allowance
Valuation allowance
Net deferred tax assets

As of December 31,

2021

2020

36,793,074 $
9,501,299
481,098
567,213
851,247
305,974
48,499,905
(48,499,905)
— $

34,365,098
9,301,709
419,654
616,926
852,338
267,312
45,823,037
(45,823,037)
—

Current accounting standards require a valuation allowance against DTAs if, based on the weight of available evidence, it is more likely than not that some or all of the
DTAs may not be realized. Due to the uncertainty surrounding the realization of these DTAs in future tax returns, all of the DTAs have been fully offset by a valuation
allowance as of December 31, 2021 and 2020.

In assessing the realizability of DTAs, management considers whether it is more likely than not that some portion or all of the DTAs will not be realized. The ultimate
realization of DTAs is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management
considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods) and projected future taxable income in
making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the DTAs are deductible,
management believes it is more likely than not that the Company will not realize the benefits of these deductible differences or tax carryforwards as of December 31,
2021.

The Tax Cuts and Jobs Act (the “Tax Act”) was signed into law on December 22, 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%,
effective January 1, 2018. Consequently, we recorded a decrease related to DTAs of $26.4 million with a corresponding net adjustment to a valuation allowance of $26.4
million for the year ended December 31, 2018. The Tax Act repealed the AMT for corporations, and permited any existing AMT credit carryforwards to be used to reduce
the regular tax obligation in 2018, 2019 and 2020. Companies may continue using AMT credits to offset any regular income tax liability in years 2018 through 2020, with
50% of remaining AMT credits refunded in each of the 2018, 2019 and 2020 tax years, and all remaining credits refunded in tax year 2021. This results in full realization
of an existing AMT credit carryforward irrespective of future taxable income. The CARES Act was signed into law on March 27, 2020 and allowed an acceleration of the
full remaining AMT credit carryforward as a refund in the current year. Accordingly, the Company filed for and received the refund of all $621,000 of AMT credit
carryforwards, plus interest, in June 2020.

As of December 31, 2021 and 2020, we had U.S. net operating loss carryforwards of approximately $164.1 million and $153.3 million, respectively. Of those amounts,
$14.9 million relates to stock-based compensation tax deductions in excess of book compensation expense (“APIC NOLs”) as of December 31, 2021, that will be credited
to additional paid-in capital when such deductions reduce taxes payable as determined on a "with-and-without" basis. Accordingly, these APIC NOLs will reduce federal
taxes payable if realized in future periods, but NOLs related to such benefits are not included in the table above. As of December 31, 2017, we adopted ASU 2016-09 and
thereby eliminated all APIC NOLs with a full offset to a valuation allowance.

As of December 31, 2021 and 2020, we also had state net operating loss carryforwards of approximately $20.1 million. The state net operating loss carryforwards will
begin expiring in 2032.

As of December 31, 2021 and 2020, we had U.S. R&D credit carryforwards of approximately $9.1 million and $8.9 million, respectively.

There were no expirations of U.S. NOL carryforwards during 2021 or 2020. U.S. R&D credit carryforwards of $0 and $72,000 expired during 2021 and 2020,
respectively.

F- 28

The details of our U.S. net operating loss and federal R&D credit carryforward amounts and expiration dates are summarized in the following table.

Generated
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Total carryforwards

Expiration
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
N/A
N/A
N/A
N/A

As of December 31, 2021

U.S. Net
Operating
Loss
Carryforwards

U.S. R&D
Credit
Carryforwards

— $
—
—
—
—
—
—
—
—
—
—
18,898,490
37,450,522
34,088,874
25,073,846
15,581,209
—
—
11,245,808
11,018,478
10,746,123
164,103,350 $

39,128
5,350
2,905
22,861
218,332
365,541
342,898
531,539
596,843
1,094,449
1,950,744
468,008
681,772
816,116
492,732
262,257
387,892
197,547
213,065
222,842
238,717
9,112,411

Under Sections 382 and 383 of the Internal Revenue Code (“IRC”) of 1986, as amended, the utilization of U.S. net operating loss and R&D tax credit carryforwards may
be limited under the change in stock ownership rules of the IRC. The Company completed a Section 382 analysis through December 31, 2021 and believes that a Section
382 ownership change has not occurred.

Reconciliations between the statutory federal income tax rate and our effective tax rate for continuing operations are presented in the following table.

Benefit at statutory rate
Adjustments to valuation allowance
Adjustments to R&D credit carryforwards
Permanent items and other
Provision (benefit) per financial statements

15. Segments

2021

2020

Amount

(2,460,126)
2,676,868
(199,589)
(1,110)
16,043

(21.0)% $
22.9%
(1.7)%
(0.1)%
$

(2,390,972)
2,521,625
(151,129)
20,476
—

(21.0)%
22.1%
(1.3)%
0.2%

We report information about our operating segments using the “management approach” in accordance with current accounting standards. This information is based on the
way management organizes and reports the segments within the enterprise for making operating decisions and assessing performance. Our reportable segments are
identified based on differences in products, services and markets served. There were no inter-segment sales. We manage our business based on two primary types of drug
products: (i) diagnostic substances, including Tc99m tilmanocept and other diagnostic applications of our Manocept platform, and (ii) therapeutic development programs,
including therapeutic applications of our Manocept platform.

F- 29

The information in the following tables is derived directly from each reportable segment’s financial reporting.

Year Ended December 31, 2021
Royalty revenue
License revenue
Grant and other revenue
Total revenue

Research and development expenses, excluding depreciation and amortization
Selling, general and administrative expenses, excluding depreciation and amortization

(1)

Depreciation and amortization (2)
Loss from operations (3)
Other income (4)
Provision for income taxes
Net loss
Total assets, net of depreciation and amortization:

United States
International
Capital expenditures

Year Ended December 31, 2020
Royalty revenue
License revenue
Grant and other revenue
Total revenue

Cost of revenue
Research and development expenses
Selling, general and administrative expenses, excluding depreciation and amortization

(1)

Depreciation and amortization (2)
Loss from operations (3)
Other expense (4)
Net loss
Total assets, net of depreciation and amortization:

United States
International
Capital expenditures

Diagnostics
$

Therapeutics

Corporate

Total

— $
45,615
485,898
531,513
4,488,177

—
24,162
(3,980,826)
—
(5,452)
(3,986,278)

— $
—
—
—
653,733

4,438
—
(658,171)
—
(901)
(659,072)

— $
—
—
—
—

—
45,615
485,898
531,513
5,141,910

7,368,623
52,792
(7,421,415)
345,524
(9,690)
(7,085,581)

7,373,061
76,954
(12,060,412)
345,524
(16,043)
(11,730,931)

107,931 $
210,281
—

— $
—
—

6,326,031 $
590
25,218

6,433,962
210,871
25,218

Diagnostics
$

Therapeutics

Corporate

Total

7,995 $
110,730
482,221
600,946
1,048
4,593,459

299,959
10,068
(4,303,588)
—
(4,303,588)

— $
—
314,067
314,067
—
336,728

800
—
(23,461)
—
(23,461)

— $
—
—
—
—
—

7,995
110,730
796,288
915,013
1,048
4,930,187

6,323,807
60,325
(6,384,132)
(10,510)
(6,394,642)

6,624,566
70,393
(10,711,181)
(10,510)
(10,721,691)

139,121 $
202,791
120,810

— $
—
—

7,416,106 $
—
15,071

7,555,227
202,791
135,881

(1) General and administrative expenses, excluding depreciation and amortization, represent costs that relate to the general administration of the Company and as such

are not currently allocated to our individual reportable segments, other than those expenses directly incurred by Navidea Europe, Navidea UK and MT.

(2) Depreciation and amortization are reflected in selling, general and administrative expenses ($76,954 and $70,393 for the years ended December 31, 2021 and 2020,

respectively).

(3) Loss from operations does not reflect the allocation of certain selling, general and administrative expenses, excluding depreciation and amortization, to our

individual reportable segments, other than those expenses directly incurred by Navidea Europe, Navidea UK and MT.

(4) Amounts consist primarily of gain on extinguishment of debt, interest income and interest expense, which are not currently allocated to our individual reportable

segments.

16. Material Agreements

a) Research and Development Agreements: In January 2002, we completed a license agreement with the University of California, San Diego (“UCSD”) for the

exclusive world-wide rights to Tc99m tilmanocept for use in lymphatic mapping. The license agreement was effective until the later of the expiration date of the
longest-lived underlying patent. In July 2014, we amended the license agreement to extend the agreement until the third anniversary of the expiration date of the
longest-lived underlying patent. Under the terms of the license agreement, UCSD granted us the exclusive rights to make, use, sell, offer for sale and import
licensed products as defined in the agreement and to practice the defined licensed methods during the term of the agreement. We could also sublicense the patent
rights, subject to certain sublicense terms as defined in the agreement. In consideration for the license rights, we agreed to pay UCSD a license issue fee of $25,000
and license maintenance fees of $25,000 per year. We also agreed to make payments to UCSD upon successfully reaching certain clinical, regulatory and
cumulative sales milestones, and a royalty on net sales of licensed products subject to a $25,000 minimum annual royalty. In addition, we agreed to reimburse
UCSD for all patent-related costs and to meet certain diligence targets.

F- 30

In connection with the sale of the rights to sell Tc99m tilmanocept in the United States, Canada and Mexico to Cardinal Health 414, the Company amended and
restated its Tc99m tilmanocept license agreement with UCSD pursuant to which UCSD granted a license to the Company to exploit certain intellectual property
rights owned by UCSD and, separately, Cardinal Health 414 entered into a license agreement with UCSD pursuant to which UCSD granted a license to Cardinal
Health 414 to exploit certain intellectual property rights owned by UCSD for Cardinal Health 414 to sell Tc99m tilmanocept in the United States, Canada and
Mexico. Total costs related to the UCSD license agreement for net sales and royalties of Tc99m tilmanocept outside the United States, Canada and Mexico were
$4,000 and $1,000 in 2021 and 2020, respectively, and were recorded as a reduction in license revenue and in cost of revenue, respectively. Total costs related to the
UCSD license agreement for annual maintenance fees, milestones and patent-related costs were $21,000 and $34,000 in 2021 and 2020, respectively, and were
recorded in R&D expenses.

In July 2014, the Company executed an expanded license agreement for the exclusive world-wide rights to all diagnostic and therapeutic uses of tilmanocept (other
than Tc99m tilmanocept used in lymphatic mapping). The license agreement is effective until the third anniversary of the expiration date of the longest-lived
underlying patent. Under the terms of the license agreement, UCSD has granted us the exclusive rights to make, use, sell, offer for sale and import licensed
products as defined in the agreement and to practice the defined licensed methods during the term of the agreement. We may also sublicense the patent rights,
subject to certain sublicense terms as defined in the agreement. As consideration for the license rights, we agreed to pay UCSD a license issue fee of $25,000 and
license maintenance fees of $25,000 per year. We also agreed to make payments to UCSD upon successfully reaching certain clinical, regulatory and cumulative
sales milestones, and a royalty on net sales of licensed products subject to a $25,000 minimum annual royalty. In addition, we agreed to reimburse UCSD for all
patent-related costs and to meet certain diligence targets. Total costs related to the UCSD license agreement for tilmanocept were $25,000 and $275,000 in 2021
and 2020, respectively, and were recorded in R&D expenses.

b) Separation Agreement: Effective July 27, 2020 through October 24, 2021, Mr. Latkin was employed under an employment agreement that provided for an annual
base salary of $490,000. On November 23, 2021, Mr. Latkin signed a Separation Agreement and General Release (the “Separation Agreement”) in connection with
his resignation from his positions as Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, and as a director, on October 24, 2021 (the
“Separation Date”). Pursuant to the Separation Agreement, among other things, the Company agreed to provide Mr. Latkin with certain separation benefits,
commencing on the “Effective Date,” defined as the eighth day after Mr. Latkin signs, without revoking, the Separation Agreement. These separation benefits
include continued payment of Mr. Latkin’s base salary of $490,000, less all relevant taxes and other withholdings, on the following basis: (i) for 12 months, 100%
of his base salary, minus an aggregate $24,000 deducted monthly pro rata for reimbursement of Mr. Latkin’s attorney fees which were paid by the Company, and
(ii) for 10 months following the expiration of the first 12-month period, 50% of his base salary. On the Effective Date, each of Mr. Latkin’s unvested stock options
vested, and all of his vested stock options (covering 69,918 shares) and previously unvested options (covering 333,332 shares) may be exercised by Mr. Latkin on or
before the earlier of the fifth anniversary of the Separation Date and the original expiration date. On the Effective Date, each of Mr. Latkin’s 33,333 outstanding
unvested restricted stock units became fully vested, and all of such restricted stock units were settled within thirty days after the Separation Date, less applicable
withholding in shares of common stock. The Company also agreed to reimburse Mr. Latkin for expenses incurred pursuant to Company policy. For purposes of
assistance provided in certain litigation matters, the Company agreed to pay Mr. Latkin $250 per hour, subject to certain limitations. Mr. Latkin will also be entitled
to receive, subject to his timely execution and non-revocation of the Separation Agreement, a payment equal to up to one percent of total capital raised during the
twenty-two months following the Separation Date through one of two investment banking firms introduced to the Company by Mr. Latkin, less relevant taxes and
withholdings and subject to certain payment terms. In addition, Mr. Latkin and the Company generally released each other from any and all claims each may have
against the other.

17. Employee Benefit Plan

We maintain an employee benefit plan under Section 401(k) of the IRC (the “401(k) Plan”). The 401(k) Plan allows employees to make contributions and we may, but are
not obligated to, match a portion of the employee’s contribution with our Common Stock, up to a defined maximum. We also pay certain expenses related to maintaining
the 401(k) Plan. Beginning January 1, 2021, the Company’s Board of Directors increased the Company match rate from 40% of employee contributions to the 401(k)
Plan up to 5% of the employee’s salary, to 100% of employee contributions to the 401(k) Plan up to 6% of the employee’s salary. We recorded expenses related to the
401(k) Plan of $148,000 and $49,000 during 2021 and 2020, respectively

F- 31

18. Supplemental Disclosure for Statements of Cash Flows

We paid interest aggregating $9,000 and $6,000 in 2021 and 2020, respectively. In February 2020, the Company amended its existing office lease and recognized a right-
of-use lease asset in exchange for a lease liability of $100,432. During 2020, we issued 94,159 shares of our common stock valued at $172,000 to our employees as partial
payment in lieu of cash for their 2019 bonuses. During 2021 and 2020, we issued 30,018 and 32,651 shares of Common Stock, respectively, as matching contributions to
our 401(k) Plan which were valued at $76,846 and $39,834, respectively. In November 2021, we prepaid $566,000 of insurance premiums through the issuance of a note
payable to IPFS with an interest rate of 4.36%. In November 2020, we prepaid $442,000 of insurance premiums through the issuance of a note payable to IPFS with an
interest rate of 3.5%. During 2020, 411,000 Series OO warrants to purchase the Company’s common stock were exercised on a cashless basis in exchange for issuance of
300,595 shares of Navidea Common Stock. During 2020, the Company recorded a deemed dividend of approximately $467,000 related to the BCF on 420,000 shares of
Series C Preferred Stock, and 420,000 shares of Series C Preferred Stock were converted into 1,425,076 shares of Common Stock. Also during 2020, the Company
recorded a deemed dividend of approximately $197,000 related to the BCF on 17,750 shares of Series D Preferred Stock, and 17,750 shares of Series D Preferred Stock
were converted into 827,280 shares of Common Stock.

19. Subsequent Events

The Company has evaluated events and transactions subsequent to December 31, 2021 and through the date these consolidated financial statements were included in this
Annual Report on Form 10-K and filed with the SEC.

Subsidiaries of Navidea Biopharmaceuticals, Inc.

Subsidiaries
Navidea Biopharmaceuticals Europe Limited
Navidea Biopharmaceuticals Limited
Macrophage Therapeutics, Inc.

Jurisdiction of Incorporation
Ireland
United Kingdom
Delaware, United States

Percentage Owned by Registrant
100%
100%
99.9%

Exhibit 21.1

Exhibit 23.1

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM’S CONSENT

We consent to the incorporation by reference in the Registration Statement of Navidea Biopharmaceuticals, Inc. on Form S-3 (File Nos. 333-235762, 333-248404, and 333-
252847), Form S-1 (File Nos. 333-256093 and 333-262691) and Form S-8 (File Nos. 333-250078, 333-238329, 333-228960, 333-217814, 333-130636, 333-158323, and
333-198716) of our report dated March 28, 2022, which includes an explanatory paragraph as to the Company’s ability to continue as a going concern, with respect to our
audits of the consolidated financial statements of Navidea Biopharmaceuticals, Inc. as of December 31, 2021 and 2020 and for the years then ended, which report is
included in this Annual Report on Form 10-K of Navidea Biopharmaceuticals, Inc. for the year ended December 31, 2021.

/s/ Marcum LLP

Hartford, Connecticut
March 28, 2022

POWER OF ATTORNEY

Exhibit 24.1

Each of the undersigned officers and directors of Navidea Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), does hereby constitute and appoint Michael
S. Rosol, Ph.D. as his or her agent and lawful attorney-in-fact, in his or her name and on his or her behalf, and in any and all capacities stated below:

●

To sign and file with the United States Securities and Exchange Commission the Annual Report of the Company on Form 10-K (the “Annual Report”) for the fiscal
year ended December 31, 2021, and any amendments or supplements to such Annual Report; and

To execute and deliver any instruments, certificates or other documents which they shall deem necessary or proper in connection with the filing of such Annual
Report, and generally to act for and in the name of the undersigned with respect to such filing as fully as could the undersigned if then personally present and acting.

Each agent named above is hereby empowered to determine in his discretion the times when, the purposes for, and the names in which, any power conferred upon him herein
shall be exercised and the terms and conditions of any instrument, certificate or document which may be executed by him pursuant to this instrument.

This Power of Attorney shall not be affected by the disability of any of the undersigned or the lapse of time.

The validity, terms and enforcement of this Power of Attorney shall be governed by those laws of the State of Ohio that apply to instruments negotiated, executed, delivered
and performed solely within the State of Ohio.

This Power of Attorney may be executed in any number of counterparts, each of which shall have the same effect as if it were the original instrument and all of which shall
constitute one and the same instrument.

IN WITNESS WHEREOF, the undersigned have executed this Power of Attorney effective as of March 28, 2022.

Signature

/s/ Michael S. Rosol
Michael S. Rosol, Ph.D.

/s/ Erika L. Eves
Erika L. Eves

/s/ Alexander L. Cappello
Alexander L. Cappello

/s/ John K. Scott, Jr.
John K. Scott, Jr.

/s/ Amit Bhalla
Amit Bhalla

/s/ Malcolm G. Witter
Malcolm G. Witter

Title

Chief Medical Officer
(Principal Executive Officerz0

Vice President, Finance & Administration
(Principal Financial Officer and Principal Accounting Officer)

Chairman of the Board of Directors

Vice Chairman of the Board of Directors

Director

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael S. Rosol, certify that:

1. I have reviewed this annual report on Form 10-K of Navidea Biopharmaceuticals, Inc.;

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 28, 2022

/s/ Michael S. Rosol
Michael S. Rosol, Ph.D.
Chief Medical Officer
(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Erika L. Eves, certify that: