SIGA Technologies, Inc.

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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, 2024
Or
☐
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from ________ to ___________
Commission File No. 0-23047
SIGA Technologies, Inc.
(Exact name of registrant as specified in its charter)
Delaware
13-3864870
(State or other jurisdiction of
(IRS Employer Identification. No.)
incorporation or organization)
 
 
31 East 62nd Street
10065
New York, NY
(zip code)
(Address of principal executive offices)
 
Registrant’s telephone number, including area code: (212) 672-9100
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
common stock, $.0001 par value
SIGA
The Nasdaq Global Market
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒.
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes ☒ No ☐.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 ☐ Accelerated filer ☒ Non-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. ☒
 

Table of Contents
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by
any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒.
The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant, based upon the closing sale price of the
common stock on June 30, 2024 as reported on The Nasdaq Global Market was approximately $351,132,884.
As of February 14, 2025, the registrant had outstanding 71,436,927 shares of common stock.
DOCUMENTS INCORPORATED BY REFERENCE
 
The following document is incorporated herein by reference:
Document
Parts Into Which Incorporated
Proxy Statement for the Company’s 2025 Annual
Part III
Meeting of Stockholders
 
 

Table of Contents
SIGA TECHNOLOGIES, INC.
FORM 10-K
 
Table of Contents
 
Page No.
PART I
 
 
Item 1.
Business
2
Item 1A.
Risk Factors
16
Item 1B.
Unresolved Staff Comments
28
Item 1C.
Cybersecurity
28
Item 2.
Properties
28
Item 3.
Legal Proceedings
28
Item 4.
Mine Safety Disclosures
28
 
 
PART II
 
 
Item 5.
Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
29
Item 6.
[Reserved]
31
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
32
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
40
Item 8.
Financial Statements and Supplementary Data
41
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
66
Item 9A.
Controls and Procedures
66
Item 9B.
Other Information
67
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
67
 
 
PART III
 
 
Item 10.
Directors, Executive Officers and Corporate Governance
68
Item 11.
Executive Compensation
68
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
68
Item 13.
Certain Relationships and Related Transactions, and Director Independence
68
Item 14.
Principal Accounting Fees and Services
68
 
 
PART IV
 
 
Item 15.
Exhibits, Financial Statement Schedules
69
Item 16.
Form 10-K Summary
73
 
 
SIGNATURES
 
74
 

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Part I
Forward-Looking Statements
Certain statements in this Annual Report on Form 10-K, including certain statements contained in “Business” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations,” constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements
relating to the progress of SIGA’s development programs and timelines for bringing products to market, delivering products to domestic and international
customers, and the enforceability of our procurement contracts, such as  the 19C BARDA Contract (the "BARDA Contract"), with the U.S. Biomedical
Advanced Research and Development Authority ("BARDA"). The words “may,” “continue,” “estimate,” “intend,” “plan,” “will,” “believe,” “project,”
“expect,” “seek,” “anticipate,” “could,” “should,” “target,” “goal,” “potential” and similar expressions may identify forward-looking statements, but the
absence of these words does not necessarily mean that a statement is not forward-looking. Such forward-looking statements are subject to various known and
unknown risks and uncertainties, and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future
performance. SIGA’s actual results could differ materially from those anticipated by such forward-looking statements due to a number of factors, some of
which are beyond SIGA’s control, including, but not limited to, (i) the risk that BARDA elects, in its sole discretion as permitted under the BARDA Contract,
not to exercise all, or any, of the remaining unexercised options under those contracts, (ii) the risk that SIGA may not complete performance under the BARDA
Contract on schedule or in accordance with contractual terms, (iii) the risk that the BARDA Contract or U.S. Department of Defense contracts are modified or
canceled at the request or requirement of, or SIGA is not able to enter into new contracts to supply TPOXX® to, the U.S. Government, (iv) the risk that the
nascent international biodefense market does not develop to a degree that allows SIGA to continue to successfully market TPOXX® internationally, (v) the risk
that potential products, including potential alternative uses or formulations of TPOXX® that appear promising to SIGA or its collaborators, cannot be shown to
be efficacious or safe in subsequent pre-clinical or clinical trials, (vi) the risk that target timing for deliveries of product to customers, and the recognition of
related revenues, are delayed or adversely impacted by the actions, or inaction, of contract manufacturing organizations, or other vendors, within the supply
chain, or due to coordination activities between the customer and supply chain vendors, (vii) the risk that SIGA or its collaborators will not obtain appropriate
or necessary governmental approvals to market these or other potential products or uses, (viii) the risk that SIGA may not be able to secure or enforce sufficient
legal rights in its products, including intellectual property protection, (ix) the risk that any challenge to SIGA’s patent and other property rights, if adversely
determined, could affect SIGA’s business and, even if determined favorably, could be costly, (x) the risk that regulatory requirements applicable to SIGA’s
products may result in the need for further or additional testing or documentation that will delay or prevent SIGA from seeking or obtaining needed approvals
to market these products, (xi) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA’s efforts to develop or market its
products, (xii) the risk that changes in domestic or foreign economic and market conditions may affect SIGA’s ability to advance its research or may affect its
products adversely, (xiii) the effect of federal, state, and foreign regulation, including drug regulation and international trade regulation, on SIGA’s
businesses,  (xiv)  the risk of disruptions to  SIGA’s supply chain for the manufacture of TPOXX®, causing delays in SIGA’s research and development
activities, causing delays or the re-allocation of funding in connection with SIGA’s government contracts, or diverting the attention of government staff
overseeing SIGA’s government contracts, (xv) risks associated with actions or uncertainties  surrounding the debt ceiling or the changes in the U.S.
administration, and (xvi) the risk that the U.S. or foreign governments' responses (including inaction) to national or global economic conditions or infectious
diseases, are ineffective and may adversely affect SIGA’s business, as well as the risks and uncertainties included in Item 1A “Risk Factors” of this Form 10-K.
All such forward-looking statements are current only as of the date on which such statements were made. SIGA does not undertake any obligation to update
publicly any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of
unanticipated events. The information contained on any website referenced in this Form 10-K is not incorporated by reference into this filing.
Item 1. Business
Overview
SIGA Technologies, Inc. is referred to throughout this report as “SIGA,” “the Company,” “we” or “us.”
 
We are a commercial-stage pharmaceutical company. The Company sells its lead product, TPOXX®  (“oral TPOXX®,”  also known as
"tecovirimat,"  "Tecovirimat SIGA,"  or "TEPOXX (tecovirimat)" in certain international markets),  to the U.S. Government and international governments
(including government affiliated entities). In certain international markets, the Company may sell TPOXX® through a distributor. Additionally, the Company
sells the intravenous formulation of TPOXX® ("IV TPOXX®") to the U.S. Government.
 
TPOXX® is an antiviral drug for the treatment of human smallpox disease caused by variola virus. On July 13, 2018, the United States Food & Drug
Administration (“FDA”) approved the oral formulation of TPOXX® for the treatment of smallpox. The Company has been delivering oral TPOXX® to the
U.S. Strategic National Stockpile ("Strategic Stockpile") since 2013.
 
On May 18, 2022 the FDA approved IV TPOXX® for the treatment of smallpox. 
 
In addition to being approved by the FDA, oral TPOXX® (tecovirimat) has received regulatory approval from  the  European Medicines
Agency  ("EMA"),  Health Canada, the Medicines and  Healthcare Products Regulatory Agency ("MHRA") of the United Kingdom, and most recently, in
December 2024, the Japanese Pharmaceuticals and Medical Devices Agency ("PMDA"). The EMA, MHRA and PMDA approved oral TPOXX® for the
treatment of smallpox, monkeypox ("mpox"), cowpox, and vaccinia complications following vaccination against smallpox. Health Canada approved TPOXX®
for the treatment of smallpox.
 
With respect to the regulatory approvals by the EMA, PMDA, MHRA and Health Canada, oral tecovirimat represents the same formulation approved
by the FDA in July 2018 under the brand name TPOXX®.
 

In connection with a potential FDA label expansion of oral TPOXX® for an indication covering smallpox post-exposure prophylaxis (“PEP”), the
Company has completed an immunogenicity trial and an expanded safety trial. The timing of a potential submission of a supplemental New Drug Application
to the FDA (“Supplemental NDA”) for a smallpox PEP indication for oral TPOXX® will be based on the results of ongoing sample analyses from the
immunogenicity trial; the Company is currently targeting a Supplemental NDA submission in the next twelve months.
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Procurement Contracts with the U.S. Government
19C BARDA Contract
On September 10, 2018, the Company entered into a contract with the U.S. Biomedical Advanced Research and Development Authority ("BARDA")
pursuant to which SIGA agreed to deliver up to 1,488,000 courses of oral TPOXX® to the Strategic Stockpile, and to manufacture and deliver to the Strategic
Stockpile, or store as vendor-managed inventory, up to 212,000 courses of IV TPOXX®. In October 2023, the contract was modified so that a course of IV
TPOXX® was redefined within the contract from being 14 vials to being 28 vials; as such, the 19C BARDA Contract currently specifies 106,000 courses of IV
TPOXX® (for the same payment amount as originally specified). In addition to the delivery of TPOXX® courses, the contract includes funding from BARDA
for a range of activities, including: advanced development of IV TPOXX®, post-marketing activities for oral and IV TPOXX®, development for a pediatric
formulation, and procurement activities. As of December 31, 2024, the contract with BARDA (as amended, modified, or supplemented from time to time, the
"19C BARDA Contract") contemplates up to approximately $602.5 million of payments, of which approximately $51.7 million of payments are included
within the base period of performance, approximately $519.6 million of payments are related to exercised options and up to approximately $31.2 million of
payments are currently specified as unexercised options. BARDA may choose in its sole discretion when, or whether, to exercise any of the unexercised
options. The period of performance for options is up to ten years from the date of entry into the 19C BARDA Contract and such options could be exercised at
any time during the contract term.
The base period of performance specifies potential payments of approximately $51.7 million for the following activities: payments of approximately
$11.1 million for the delivery of approximately 35,700 courses of oral TPOXX® to the Strategic Stockpile; payments of $8.0 million for the manufacture of
10,000 courses (as currently defined within the contract as being 28 vials) of final drug product of IV TPOXX® ("IV FDP"), of which $3.2 million of payments
are related to the manufacture of bulk drug substance ("IV BDS") to be used in the manufacture of IV FDP; payments of approximately $32.0 million to fund
reimbursed activities; and payments of approximately $0.6 million for supportive procurement activities. As of December 31, 2024,  the Company
had received $11.1 million for the delivery of approximately 35,700 courses of oral TPOXX® to the Strategic Stockpile, $3.2 million for the manufacture of IV
BDS, $4.8 million for the delivery of IV FDP to the Strategic Stockpile, and $25.3 million for other base period activities. IV BDS has been used for the
manufacture of courses of IV FDP. 
 
The options that have been exercised as of December 31, 2024, provide for payments up to approximately $519.6 million. As of December 31, 2024,
there are exercised options for the following activities: payments up to $450.2 million for the manufacture and delivery of up to 1.5 million courses of oral
TPOXX®; payments up to $51.2 million for the manufacture of courses of IV FDP, of which $20.5 million of payments relate to the manufacture of IV BDS to
be used in the manufacture of IV FDP; payments of up to approximately $3.6 million to fund post-marketing activities for IV TPOXX®; and payments of up to
$14.6 million for funding of post-marketing activities for oral TPOXX®. As of December 31, 2024, a cumulative total of $396.9 million of oral TPOXX® has
been delivered to the Strategic Stockpile and accepted, of which approximately $15 million was delivered in the first quarter of 2024, approximately $8 million
was delivered in the third quarter of 2024, and approximately $51 million was delivered in the fourth quarter of 2024; a cumulative total of $25.4 million of IV
FDP has been delivered to the Strategic Stockpile and accepted, of which approximately $17 million of revenue (including recognition of deferred revenue)
was recorded in the second quarter of 2024 and approximately $8 million of revenue (including recognition of deferred revenue) was recorded in the fourth
quarter of 2024; $10.3 million has been received for the manufacture of IV BDS (such amount is recorded as deferred revenue); and the Company has been
cumulatively reimbursed $9.4 million in connection with post-marketing activities for oral and IV TPOXX®. 
Unexercised options specify potential payments up to approximately $31.2 million in total (if all such options are exercised), of which approximately
$5.6 million relates to supportive activities that we currently do not expect to be required. The remaining unexercised options specify payments of up to $25.6
million for the manufacture of courses of IV FDP, of which up to $10.2 million of payments would be paid upon the manufacture of IV BDS to be used in the
manufacture of IV FDP.
The options related to IV TPOXX® are divided into two primary manufacturing steps. There are options related to the manufacture of bulk drug
substance (“IV BDS Options”), and there are corresponding options (for the same number of IV courses) for the manufacture of final drug product (“IV FDP
Options”). BARDA may choose to exercise any, all, or none of these options in its sole discretion. The 19C BARDA Contract includes: three separate IV BDS
Options, each providing for the bulk drug substance equivalent of 32,000 courses (as currently defined within the contract) of IV TPOXX®; and three separate
IV FDP Options, each providing for 32,000 courses of final drug product of IV TPOXX®. BARDA has the sole discretion as to whether to simultaneously
exercise IV BDS Options and IV FDP Options, or whether to exercise options at different points in time (or alternatively, to only exercise the IV BDS Option
but not the IV FDP Option). To date, BARDA has exercised two of the three IV BDS options and two of the three IV FDP options. If BARDA decides only to
exercise the remaining IV BDS Option, then the Company would receive payments up to $10.2 million; alternatively, if BARDA decides to exercise the
remaining IV BDS Option and IV FDP Option, then the Company would receive payments up to $25.6 million. BARDA may also decide not to exercise either
remaining option. For each set of options relating to a specific group of courses (for instance, the IV BDS and IV FDP options that reference the same
32,000 courses), BARDA has the option to independently purchase IV BDS or IV FDP. The Company estimates that sales of the IV formulation under this
contract (under current terms), assuming the remaining IV FDP Option was exercised, would have a gross margin (sales less cost of sales, as a percentage of
sales) that is less than 40%.  
 
U.S. Department of Defense Procurement Contracts
In 2024, the Company had sales of approximately $10 million with the U.S. Department of Defense ("DoD"). Sales consist mostly of delivery of oral
TPOXX®, with a minor amount of IV TPOXX® delivered.
In 2023, the Company had sales of approximately $11 million with the DoD. Sales consist of delivery of oral TPOXX®. 
Over the past three years, the Company has received three procurement contracts from the DoD, including a $9 million contract in August 2024,
which has been fulfilled. 

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International Sales Activity
 
In the year ended December 31, 2024, the Company had international sales of $23.0 million consisting of deliveries of oral TPOXX® to 13 countries.
For international sales in the first and second quarters, Meridian Medical Technologies ("Meridian") was the counterparty to contracts under which the sales
were made (see discussion and definition below regarding International Promotion Agreement). For international sales in the third and fourth quarters, the
Company was the counterparty to the contracts under which the sales were made.  
 
In the year ended December 31, 2023, the Company had international sales of $21.3  million consisting of deliveries of oral  TPOXX® to
seven countries.
 
International Promotion Agreement
Under the terms of the current International Promotion Agreement, which was amended on March 27, 2024, and effective June 1, 2024, and further
amended on August 30, 2024, the Company has primary responsibility for the advertising, promotion and sale of oral TPOXX® in all geographic regions.
Meridian has limited, non-exclusive rights to advertise, promote, offer for sale and sell oral TPOXX® in the European Economic Area, Australia, Japan,
Switzerland, the United Kingdom and the Association of Southeast Asian Nations and its member states (collectively, the “Current Territory”). Meridian also
performs non-promotional activities under specified contracts with third parties entered into prior to June 1, 2024, that provide for the sale of oral TPOXX® in
the Current Territory. The International Promotion Agreement entitles Meridian to receive a fee equal to a high single digit percentage of collected proceeds
(whether collected by Meridian or the Company), net of certain expenses, of sales of oral TPOXX® in the Current Territory in the field of use specified in the
International Promotion Agreement. The International Promotion Agreement has a fixed term that expires on May 31, 2026, with no automatic renewal.
Under the terms of the original International Promotion Agreement ("Pre-amendment International Promotion Agreement"), which had an initial term
that expired on May 31, 2024, Meridian had been granted exclusive rights to market, advertise, promote, offer for sale, or sell oral TPOXX® in a field of use
specified in the International Promotion Agreement in all geographic regions except for the United States  (the “Territory”), and Meridian agreed not to
commercialize any competing product, as defined in the Pre-amendment International Promotion Agreement, in the specified field of use in the Territory.
Under the Pre-amendment International Promotion Agreement, as well as the current International Promotion Agreement, SIGA has always retained ownership,
intellectual property, distribution and supply rights and regulatory responsibilities in connection with TPOXX®, and, in the United States market,  also
retained  sales and marketing rights with respect to oral TPOXX®. SIGA’s consent is required prior to  the entry by Meridian into any sales arrangement
pursuant to the International Promotion Agreement.
Sales to international customers pursuant to the Pre-amendment International Promotion Agreement were invoiced and collected by Meridian, and
such collections were  remitted, less Meridian's fees, to the Company under a quarterly process specified in the Pre-amendment International Promotion
Agreement; and Meridian was entitled to a specified percentage of the collected proceeds of sales of oral TPOXX®, net of certain expenses, for calendar years
in which customer collected amounts net of such expenses were less than or equal to a specified threshold, and to a higher specified percentage of such
collected net proceeds for calendar years in which such net collected amounts exceeded the specified threshold. Subsequent to June 1, 2024, only specified
procurement contracts for the Current Territory entered into prior to June 1, 2024, continue to involve Meridian invoicing and collecting proceeds, and
retaining a fee pursuant to the International Promotion Agreement. 
 
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Mpox
In connection with the 2022 response to a global mpox outbreak, a series of observational and randomized, placebo-controlled clinical trials were
initiated to assess the safety and efficacy of TPOXX® in participants with mpox. The purpose of these randomized clinical trials is to seek to collect data on the
potential benefits of using TPOXX® as an antiviral treatment for active mpox disease. As of December 31, 2024, two of the randomized, placebo-controlled
clinical trials reported preliminary topline results: a randomized, placebo-controlled clinical trial in the Democratic Republic of the Congo ("DRC") known as
PALM 007 (Tecovirimat for Treatment of Monkeypox Virus - NCT05559099), which is funded and sponsored by the National Institutes of Health's (NIH)
National Institute of Allergy and Infectious Diseases (NIAID); and the Study of Tecovirimat for Human Mpox Virus (STOMP) clinical trial (NCT05534984),
which is a randomized, placebo-controlled, double-blind study sponsored and funded by NIAID to evaluate the safety and efficacy of tecovirimat for the
treatment of people with laboratory-confirmed or presumptive mpox disease that included enrollees from Argentina, Brazil, Japan, Mexico, Peru, Thailand, and
the United States. The PALM 007 study did not meet its primary endpoint of a statistically significant improvement in time to lesion resolution within 28 days
post-randomization for patients in the DRC with mpox who received TPOXX® compared to patients who received placebo. Some improvement versus placebo
was observed in patients receiving TPOXX® whose symptoms began seven days or fewer before randomization and patients with severe or grave disease,
defined by the World Health Organization (WHO) as having 100 or more skin lesions, however the significance of these data have not been established. An
interim analysis of data from the STOMP study showed that TPOXX® did not demonstrate efficacy in time to skin and mucosal lesion resolution compared to
placebo in patients with mild to moderate clade II mpox. Based on this result and additional analyses, the study Data Safety and Monitoring Board (DSMB)
recommended to stop enrolling patients in the randomized arms of the study. NIAID accepted this recommendation and subsequently decided to take a similar
action in the open label arm of this study, which included severe and at-risk of developing severe disease patients. Data analysis is not yet complete for primary
endpoint subgroups and detailed secondary and exploratory endpoints. In both studies, TPOXX® exhibited a safety profile comparable to placebo. These safety
results are consistent with prior studies and further support the strong safety profile that has been observed with tecovirimat over the past 15 years.
Three randomized clinical trials, UNITY (Switzerland, Brazil, Argentina), Platinum-CAN (Canada), and EPOXI (EU), are enrolling mpox
patients. Given the STOMP and PALM007 results and the design similarities across these mpox trials, the Company believes the ongoing trials are likely to
yield similar results.
Research Agreements and Grants
In July 2019, the Company was awarded a multi-year research contract ultimately valued at approximately $27 million from the DoD to support work
in pursuit of a potential label expansion for oral TPOXX® that would include post-exposure prophylaxis ("PEP") of smallpox (such work known as the "PEP
Label Expansion Program" and the contract referred to as the "PEP Label Expansion R&D Contract"). As of December 31, 2023, the Company invoiced the
full amount of available funding.  
 
Contracts and grants include, among other things, options that may or may not be exercised at the U.S. Government’s discretion. Moreover, contracts
and grants contain customary terms and conditions including the U.S. Government’s right to terminate or restructure a contract or grant for convenience at any
time. As such, the Company may not be eligible to receive all available funds.
 
Manufacturing
SIGA does not have a manufacturing infrastructure and does not intend to develop one for the manufacture of TPOXX®. SIGA relies on and uses
third parties known as Contract Manufacturing Organizations (“CMOs”) to procure commercial raw materials and supplies, and to manufacture TPOXX®.
SIGA's CMOs apply methods and controls in facilities that are used for manufacturing, processing, packaging, testing, analyzing and holding pharmaceuticals
which conform to current good manufacturing practices (“cGMP”), the standard set by the FDA for manufacture and storage of pharmaceuticals intended for
human use.
Oral TPOXX®:
For the manufacture of oral TPOXX®, the Company uses the following CMOs: W.R. Grace and Company (“Grace”), which acquired the assets of
Albemarle's Fine Chemistry Services Business in 2021; Microsize, formerly known as Powdersize, LLC and renamed following a change of  control
transaction; Catalent Pharma Solutions LLC (“Catalent”); and Packaging Coordinators, LLC ("PCI"). 
SIGA has had manufacturing agreements with Grace and a predecessor owner (Albemarle) since 2011.  Pursuant to the current agreement with Grace,
which was put in place in 2018 when Albemarle was the owner of the operations that provide services to SIGA, Grace manufactures, tests and supplies active
pharmaceutical ingredient (“API”) for use in TPOXX®. The agreement provides that, during the term of the current agreement, SIGA was required to purchase
100% of its internal and external API requirements for TPOXX® from Grace until the later of (i) September 30, 2021 and (ii) such time as SIGA has purchased
12 metric tons of API from Grace under the agreement. As of December 31, 2024, SIGA has purchased more than 12 metric tons of API; as such, SIGA will
purchase at least 70% of its internal and external API requirements for TPOXX® from Grace until the end of the term of the agreement (as described below),
unless the Company receives an offer to purchase API at a price that Grace is unable to match, in which event SIGA will purchase at least 30% of its internal
and external API requirements for TPOXX® from Grace until the Company has fulfilled its delivery obligations under the 19C BARDA Contract. There is no
minimum amount of kilograms of API that must be used or acquired by SIGA. Pricing for API is at a fixed price per kilogram, subject to adjustment for
increases in raw material costs and/or general manufacturing costs. On September 30, 2024, the contract term automatically renewed for a one-year term. 
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Microsize micronizes and tests API for use in oral TPOXX®. The Company’s agreement with Microsize's predecessor was amended on January 11,
2019. The amended term ends on the tenth anniversary of the amendment date.
Catalent granulates, encapsulates, and tests oral TPOXX®. In addition, Catalent provides services related to commercial stability testing of drug
product and preparation for tabulated stability and trend analysis for each time point. The Company’s agreement with Catalent had an initial term that ended on
June 28, 2021. Thereafter, this agreement became  subject to automatic  three year renewals. As such, until June 28, 2027, SIGA will purchase all of its
requirements for bulk product for oral TPOXX® under the 19C BARDA Contract from Catalent.
 
PCI provides packaging services in connection with oral TPOXX®. Additionally, PCI has contracted with the Company to provide packaging services
in connection with the intravenous formulation of TPOXX®. The Company’s agreement with PCI had an initial term that ended on March 1, 2022. Since
March 2022, this agreement has automatically renewed for successive one-year periods.
Intravenous (IV) formulation of TPOXX®:
For the manufacture of IV TPOXX® under the BARDA Contract, the Company has agreed to use the following CMOs: Roquette America, Inc.
(“Roquette”); Patheon Manufacturing Services LLC (“Patheon”); and PCI.
Roquette provides an excipient used in the manufacturing of IV TPOXX®. The Company's agreement with Roquette has no minimum amount of
manufacturing services that must be used. The Company’s agreement with Roquette had an initial term that ended on December 31, 2023. Thereafter, this
agreement automatically renews on a year-by-year basis unless either party provides four months’ notice of its desire to terminate the agreement prior to the
expiration of the term. The Company did not provide notice nor receive notice of termination. As such, the agreement automatically extended on December 31,
2024 to December 31, 2025.
Patheon manufactures, tests and packages IV TPOXX®. SIGA agreed that Patheon will be entitled to manufacture at least 80% of IV TPOXX®
offered for sale by SIGA during the first three years of the agreement, provided Patheon adheres to reasonable manufacturing standards. Thereafter, the
manufacturing percentage will be as mutually agreed upon by the parties. The Company’s agreement with Patheon has an initial term that ends on the later of:
December 31, 2022 or, such date as all government contracts related to IV TPOXX® are terminated. As such, since the Company continues to have active
government contracts related to IV TPOXX®, the contract term continues. At the end of the above mentioned contract term, this agreement automatically
renews for two-year increments unless either party provides twelve months’ notice of its desire to terminate the agreement prior to the expiration of the term.
As noted above, PCI provides packaging services for IV TPOXX®. Grace provides the API used in manufacturing of the intravenous formulation.
Corporate Responsibility and Sustainability
SIGA focuses on the health security market and seeks to advance global health through its development and commercial activities, which include (i)
delivering medical countermeasures to governments and/or non-governmental organizations ("NGOs") so that governments and/or NGOs can cost-effectively
stockpile treatments for potential public health emergencies and (ii) donating therapies to NGOs to treat patients with serious infectious diseases in developing
countries or those who are being treated on a compassionate basis and/or within clinical trials.
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Market for Medical Countermeasures for Biological Threats
The market for medical countermeasures reflects continued awareness of the risks and threats of biological outbreaks, including such outbreaks related
to global terror and biowarfare activity. The U.S. Government is the largest source of development and procurement funding for academic institutions and
biopharmaceutical companies conducting medical countermeasure research or developing vaccines, anti-infectives and immunotherapies directed at potential
agents of bioterror or biowarfare. For the U.S. Government's fiscal year ended September 30, 2024, the budget for annual spending by the U.S. Department of
Health and Human Services ("HHS") for activities related to advanced development and procurement of medical countermeasures for biodefense-related
biological threats to civilian populations was more than $2.5 billion.
 
We believe that potential markets for the sale of medical countermeasures include:
•
The U.S. Government, including both public health and defense agencies;
•
foreign governments, including both public health and defense agencies;
•
NGOs and multinational companies;
•
healthcare providers, including hospitals and clinics; and
•
state and local governments, which may be interested in procuring these products to protect, among others, emergency responders, such as police,
fire and emergency medical personnel.
 
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General
With respect to U.S. Government contracts, we receive cash payments on a monthly basis, as services are performed or goods are purchased. Amounts
under contracts, including grant agreements, are not guaranteed because those contracts can be canceled at any time for reasons such as non-performance or
convenience of the U.S. Government and, if canceled, we will not receive funds for additional work under the contracts. With respect to international
government contracts, we receive cash payments based on the terms of the contract or, for certain contracts entered into by Meridian prior to June 1, 2024, the
terms contained within the International Promotion Agreement with Meridian, under which Meridian collects payments from foreign governments.
Competition
The biotechnology and pharmaceutical industries are characterized by rapidly evolving technology and intense competition. Our current and potential
competitors include many major pharmaceutical companies, many of which have significant financial, technical and marketing resources. Biotechnology and
other pharmaceutical competitors in the medical countermeasure sector include, but are not limited to, Emergent BioSolutions Inc. and Bavarian Nordic A/S.
Academic institutions, governmental agencies and other public and private research organizations are also conducting research activities and seeking patent
protection and may commercialize products on their own or through joint ventures.
TPOXX® faces significant competition for government funding for both development and procurement of medical countermeasures for biological,
chemical, radiological and nuclear threats, diagnostic testing systems, and other emergency preparedness countermeasures.
Our commercial opportunities could be reduced or eliminated if our competitors develop and commercialize products that are safer, more effective,
have fewer side effects, are more convenient or are less expensive than products that we may develop. In addition, we may not be able to compete effectively if
our product candidates do not satisfy governmental procurement requirements, particularly requirements of the U.S. Government with respect to medical
countermeasure products.
Human Capital Resources 
As of February 14, 2025, we had 46 full-time employees. None of our employees are covered by a collective bargaining agreement, and we consider
our employee relations to be satisfactory.  Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and
integrating our existing and new employees, advisors and consultants with the overall goal of having an employee base that embraces teamwork and shares a
focus for using each person’s individual skills, experience and expertise in order to develop and maximize the value of corporate assets, and achieve long-term
revenue and earnings growth.
Intellectual Property and Proprietary Rights
An important element of SIGA’s business development activities involves the Company's ability to obtain and maintain patent and other intellectual
property protection in the U.S. and the rest of the world for its proprietary technologies, drug targets, and potential products and to preserve its trade secrets.
Because of the substantial length of time and expense associated with bringing potential products through the development and regulatory clearance processes
to reach the marketplace, the pharmaceutical industry places considerable importance on obtaining patent and trade secret protection. The patent positions of
pharmaceutical and biotechnology companies can be highly uncertain and involve complex legal and factual questions. No consistent policy regarding the
breadth of claims allowed in biotechnology patents across various jurisdictions has emerged to date. Accordingly, SIGA cannot predict the type and extent of
claims that will be allowed in pending patent applications.
SIGA also relies upon trade secret protection for its confidential and proprietary information. No assurance can be given that other companies will not
independently develop substantially equivalent proprietary information and techniques or otherwise gain access to SIGA’s trade secrets or that SIGA can
meaningfully protect its trade secrets.
SIGA exclusively owns its key patent portfolios, which relate to its leading drug product, TPOXX® (also known as ST-246, tecovirimat). As of
February 1, 2025, the TPOXX® patent portfolio has seven patent families consisting of 25 U.S. utility patents, 97 issued foreign patents, one U.S. utility patent
application, and 14 foreign patent applications.
The principal and material issued patents covering TPOXX® are described in the table below.
Patent Number
Country
Protection Conferred
Issue Date
Expiration Date
US 7737168
United States
Method of treating orthopoxvirus infection with ST-246
June 15, 2010
September 4, 2031
US 8039504
United States
Pharmaceutical compositions and unit dosage forms containing ST-246
October 18, 2011
July 23, 2027
US 9233097
United States
Liquid Pharmaceutical formulations containing ST-246
January 12, 2016
August 2, 2031
US 9339466
United States
Certain polymorph of ST-246, method of preparation of the polymorph and
pharmaceutical compositions containing the polymorph
May 17, 2016
March 23, 2031
US 9546137
United States
Methods of preparing ST-246
January 17, 2017
August 14, 2033
US 9744154
United States
Polymorphic forms of ST-246 and methods of preparation
August 29, 2017
March 23, 2031
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Table of Contents
US 9862683
United States
Methods of preparing Tecovirimat
January 9, 2018
August 14, 2033
US 9670158
United States
Amorphous Tecovirimat preparation
June 6, 2017
July 11, 2034
US 9889119
United States
Amorphous Tecovirimat preparation
February 13, 2018
July 11, 2034
US 9907859
United States
ST-246 liquid formulations and methods
March 6, 2018
August 2, 2031
US 10029985
United States
Methods of preparing Tecovirimat
July 24, 2018
August 14, 2033
US 10045963
United States
Amorphous Tecovirimat preparation
August 14, 2018
July 11, 2034
US 10045964
United States
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
August 14, 2018
March 23, 2031
US 10124071
United States
ST-246 liquid formulations and methods
November 13, 2018 August 2, 2031
US 10155723
United States
Methods of preparing Tecovirimat
December 18, 2018 August 14, 2033
US 10406137
United States
Certain polymorphs of ST-246 and pharmaceutical compositions containing
the polymorphs
September 10, 2019 March 23, 2031
US 10406103
United States
Rehydration of micronized Tecovirimat monohydrate
September 10, 2019 November 14, 2034
US 10576165
United States
Liquid Pharmaceutical formulations containing ST-246
March 3, 2020
August 2, 2031
US 10864282
United States
Methods of preparing liquid formulations containing ST-246
December 15, 2020 August 2, 2031
US 10662155
United States
Methods of preparing Tecovirimat
May 26, 2020
August 14, 2033
US 10716759
United States
Rehydration of micronized Tecovirimat monohydrate
July 21, 2020
November 14, 2034
US 10933050
United States
Certain polymorphs of ST-246 and pharmaceutical compositions containing
the polymorphs
March 2, 2021
March 23, 2031
US 11433051
United States
ST-246 suspension formulations
September 6, 2022 November 27, 2039
US 11779566
United States
ST-246 suspension formulations
October 10, 2023
February 15, 2037
US 11890270
United States
Methods of treating orthopoxvirus using a certain polymorph
February 6, 2024
March 23, 2031
SG 184201
Singapore
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
June 22, 2015
March 23, 2031
SG 10201506031U Singapore
ST-246 liquid formulations and methods
June 11, 2021
August 2, 2031
RU 2578606
Russian Federation Certain polymorphs of ST-246, method of preparation of the polymorphs
and their use in treating orthopoxvirus
March 27, 2016
March 23, 2031
OA 16109
OAPI ^/Africa
Certain polymorphs of ST-246, method of preparation of the polymorphs
and their use in treating orthopoxvirus
October 31, 2013
March 23, 2031
NZ 602578
New Zealand
Certain polymorphs of ST-246, method of preparation of the polymorphs
and their use in treating orthopoxvirus
December 2, 2014
March 23, 2031
MX 326231
Mexico
Pharmaceutical compositions containing ST-246 and one or more additional
ingredients and dosage unit forms containing ST-246
December 11, 2014 April 23, 2027
MX 348481
Mexico
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
June 15, 2017
April 23, 2027
MX 347795
Mexico
ST-246 liquid formulations and methods
May 15, 2017
August 2, 2031
MX 361428
Mexico
Polymorphic forms of ST-246 and methods of preparation
December 6, 2018
March 23, 2031
MX 363189
Mexico
Use of pharmaceutical compositions containing ST-246
March 14, 2019
April 23, 2027
MX 368106
Mexico
ST-246 liquid formulations and methods
September 19, 2019 August 2, 2031
KR 101868117
Korea
ST-246 liquid formulations and methods
June 8, 2018
August 2, 2031
JP 5898196
Japan
Liquid Pharmaceutical formulations containing ST-246
March 11, 2016
August 2, 2031
JP 6018041
Japan
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
October 7, 2016
March 23, 2031
JP 6188802
Japan
Methods of preparing Tecovirimat
August 10, 2017
August 14, 2033
JP 6444460
Japan
Methods of preparing Tecovirimat
December 7, 2018
August 14, 2033
JP 6564514
Japan
Methods of preparing Tecovirimat
August 2, 2019
August 14, 2033
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Table of Contents
JP 6594303
Japan
Rehydration of micronized Tecovirimat monohydrate
October 4, 2019
November 14, 2034
JP 6843616
Japan
Amorphous Tecovirimat preparation
February 29, 2021
July 11, 2034
JP 7074677
Japan
ST-246 suspension formulations
May 24, 2022
February 15, 2037
JP 7297858
Japan
ST-246 suspension formulations
June 16, 2023
February 15, 2037
BR 112012023743-
8
Brazil
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
February 18, 2020
March 23, 2031
BR 112013002646-
4
Brazil
Liquid Pharmaceutical formulations containing ST-246
January 4, 2022
August 2, 2031
CN 2011800245893 China
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
August 26, 2015
March 23, 2031
CN 2013800429237 China
Methods of preparing Tecovirimat
June 20, 2017
August 14, 2033
CN 2017103075357 China
Methods of preparing Tecovirimat
March 6, 2020
August 14, 2033
CN 2014800653387 China
Rehydration of micronized Tecovirimat monohydrate
February 7, 2020
November 14, 2034
CN 202010101449 China
Methods of preparing Tecovirimat
June 20, 2023
August 14, 2033
CA 2685153
Canada
Pharmaceutical compositions containing ST-246 and one or more additional
ingredients and dosage unit forms containing ST-246
December 16, 2014 April 23, 2027
CA 2866037
Canada
Chemicals, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
May 16, 2017
April 23, 2027
CA 2807528
Canada
Liquid Pharmaceutical formulations containing ST-246
September 25, 2018 August 2, 2031
CA 2966466
Canada
Use of ST-246 to treat orthopoxvirus infections
August 25, 2020
April 23, 2027
CA 2882506
Canada
Methods of preparing Tecovirimat
October 20, 2020
August 14, 2033
CA 2793533
Canada
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
February 26, 2019
March 23, 2031
CA 2917199
Canada
Amorphous Tecovirimat preparation
August 31, 2021
July 11, 2034
CA 2930461
Canada
Rehydration of micronized Tecovirimat monohydrate
August 16, 2022
November 14, 2034
CA 3090294
Canada
Methods of preparing Tecovirimat
January 24, 2023
August 14, 2033
CA 3128535
Canada
Amorphous Tecovirimat preparation
October 15, 2024
July 11, 2034
AU 2011232551
Australia
Certain polymorphs of ST-246, method of preparation of the polymorphs
and their use in treating orthopoxvirus
February 26, 2015
March 23, 2031
AU 2011285871
Australia
Liquid Pharmaceutical formulations containing ST-246
August 6, 2015
August 2, 2031
AU 2013302764
Australia
Methods of preparing Tecovirimat
April 5, 2018
August 14, 2033
AU 2014290333
Australia
Amorphous Tecovirimat preparation
February 21, 2019
July 11, 2034
AU 2014353235
Australia
Rehydration of micronized Tecovirimat monohydrate
August 22, 2019
November 14, 2034
AU 2018201499
Australia
Methods of preparing Tecovirimat
May 21, 2020
August 14, 2033
AU 2019208252
Australia
Rehydration of micronized Tecovirimat monohydrate
July 2, 2020
November 14, 2034
AU 20172211295
Australia
ST-246 suspension formulations
May 2, 2022
February 15, 2037
AU 2020202894
Australia
Methods of preparing Tecovirimat
July 7, 2022
August 14, 2033
AU 2022202841
Australia
Methods of preparing Tecovirimat
February 1, 2024
August 14, 2033
AU 2022218556
Australia
ST-246 suspension formulations
November 28, 2024 February 15, 2037
AP 3221
ARIPO*/Africa
Certain polymorphs of ST-246, method of preparation of the polymorphs
and their use in treating orthopoxvirus
April 3, 2015
March 23, 2031
ZA 2012/07141
South Africa
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
June 29, 2016
March 23, 2031
ZA 2013/00930
South Africa
Liquid Pharmaceutical formulations containing ST-246
November 25, 2015 August 2, 2031
IL 201736
Israel
Pharmaceutical compositions containing ST-246 and one or more additional
ingredients and dosage unit forms containing ST-246
October 1, 2016
April 23, 2027
IL 236944
Israel
Methods of preparing Tecovirimat
February 1, 2017
August 14, 2033
IL 242665
Israel
Methods of preparing intermediate in the preparation of Tecovirimat
February 1, 2020
April 23, 2027
IL 224430
Israel
Liquid Pharmaceutical formulations containing ST-246
December 27, 2019 August 2, 2031
IL 242666
Israel
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
December 1, 2018
April 23, 2027
IL 221991
Israel
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
October 1, 2019
March 23, 2031
IL 269370
Israel
Compositions and methods for treatment and prevention of orthopoxvirus
infections and associated diseases
December 1, 2020
April 23, 2027
IL 242331
Israel
Amorphous Tecovirimat preparation
March 1, 2021
July 11, 2034
IL 244731
Israel
Rehydration of micronized Tecovirimat monohydrate
September 1, 2021 November 14, 2034
IL 282098
Israel
Rehydration of micronized Tecovirimat monohydrate
April 3, 2023
November 14, 2034
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Table of Contents
IL 260229
Israel
ST-246 suspension formulations
May 2, 2023
February 15, 2037
BE 1638938
Belgium
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
April 12, 2017
June 18, 2029
BE 2549871
Belgium
Polymorphic forms of ST-246
August 22, 2018
March 23, 2031
BE 2600715
Belgium
Liquid Pharmaceutical formulations containing ST-246
December 11, 2019 August 2, 2031
CH 2549871
Switzerland
Polymorphic forms of ST-246
August 22, 2018
March 23, 2031
CH 2600715
Switzerland
Liquid Pharmaceutical formulations containing ST-246
December 11, 2019 August 2, 2031
DE 2549871
Germany
Polymorphic forms of ST-246
August 22, 2018
March 23, 2036
DE 2887938
Germany
Methods of preparing Tecovirimat
January 10, 2018
August 14, 2033
DE 2600715
Germany
Liquid Pharmaceutical formulations containing ST-246
December 11, 2019 August 2, 2031
DE 3321253
Germany
Methods of preparing Tecovirimat
February 12, 2020
August 14, 2033
DE 3021836
Germany
Amorphous Tecovirimat preparation
August 27, 2020
July 11, 2034
DE 3043793
Germany
Rehydration of micronized Tecovirimat monohydrate
January 6, 2021
November 14, 2034
DE 3763702
Germany
Amorphous Tecovirimat preparation
December 13, 2023 July 11, 2034
DK 2549871
Denmark
Polymorphic forms of ST-246
August 22, 2018
March 23, 2031
DK 2600715
Denmark
Liquid Pharmaceutical formulations containing ST-246
December 11, 2019 August 2, 2031
ES 1638938
Spain
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
April 12, 2017
June 18, 2029
FR 2887938
France
Methods of preparing Tecovirimat
January 10, 2018
August 14, 2033
FR 2549871
France
Polymorphic forms of ST-246
August 22, 2018
March 22, 2036
FR 2600715
France
Liquid Pharmaceutical formulations containing ST-246
December 11, 2019 August 2, 2031
FR 3321253
France
Methods of preparing Tecovirimat
February 12, 2020
August 14, 2033
FR 3021836
France
Amorphous Tecovirimat preparation
August 27, 2020
July 11, 2034
FR 3043793
France
Rehydration of micronized Tecovirimat monohydrate
January 6, 2021
November 14, 2034
FR 3763702
France
Amorphous Tecovirimat preparation
December 13, 2023 July 11, 2034
GB 2887938
United Kingdom
Methods of preparing Tecovirimat
January 10, 2018
August 14, 2033
GB 2549871
United Kingdom
Polymorphic forms of ST-246
August 22, 2018
March 22, 2036
GB 2600715
United Kingdom
Liquid Pharmaceutical formulations containing ST-246
December 11, 2019 August 2, 2031
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Table of Contents
GB 3321253
United Kingdom
Methods of preparing Tecovirimat
February 12, 2020
August 14, 2033
 
GB 3021836
United Kingdom
Amorphous Tecovirimat preparation
August 27, 2020
July 11, 2034
 
GB 3043793
United Kingdom
Rehydration of micronized Tecovirimat monohydrate
January 6, 2021
November 14, 2034  
GB 3763702
United Kingdom
Amorphous Tecovirimat preparation
December 13, 2023 July 11, 2034
 
HK 1179824
Hong Kong
Certain polymorphs of ST-246, method of preparation of the polymorphs
and pharmaceutical compositions containing the polymorphs
June 21, 2019
March 23, 2031
 
HK 1184639
Hong Kong
Liquid Pharmaceutical formulations containing ST-246
November 12, 2021 October 28, 2033
 
IT
502017000078377
Italy
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
April 12, 2017
June 18, 2029
 
NL 1638938
Netherlands
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
April 12, 2017
June 17, 2029
 
SE 1638938
Sweden
Compounds, compositions and methods for treatment and prevention of
orthopoxvirus infections and associated diseases
April 12, 2017
June 18, 2029
 
*African Regional Intellectual Property Organization ("ARIPO") designated contracting states are as follows: Botswana, Gambia, Ghana, Kenya,
Lesotho, Liberia, Malawi, Mozambique, Namibia, Sierra Leone, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.
 
^Organisation Africaine de la Propriété Intellectuelle ("OAPI") designated contracting states are as follows: Benin, Burkina Faso, Cameroon, the
Central African Republic, Chad, DRC, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Mauritania, the Niger, Senegal, and Togo.
 
In addition to the patents listed in the above chart, the principal and material patent applications covering TPOXX® include patent filings in multiple
jurisdictions, including the United States, Europe, Asia, and other commercially significant markets. We hold 15 patent applications currently pending with
respect to various compositions of TPOXX®, methods of manufacturing, and methods of treatment. Expiration dates for pending patent applications, if
granted, will fall between 2031 and 2037.
FDA regulations require that patented drugs be sold under brand names that comply with various regulations. SIGA must develop and make efforts to
protect these brand names for each of its products in order to avoid product piracy and to secure exclusive rights to these brand names. SIGA may expend
substantial funds in developing and securing rights to adequate brand names for our products. SIGA currently has proprietary trademark rights in SIGA®,
TPOXX® and other brands used by us in the United States and certain foreign countries, but we may have to develop additional trademark rights in order to
comply with regulatory requirements. SIGA may need to pursue different names and trademarks outside of the U.S. in light of native language and other
jurisdictional considerations. SIGA considers securing adequate trademark rights to be important to its business.
Government Regulation
Regulatory Approval Process
Regulation by governmental authorities in the United States and other countries is a significant factor in the manufacture and marketing of any
biopharmaceutical product that we may develop. The nature and the extent to which such regulations  apply to us  vary depending on the nature of each
product. In particular, human therapeutic products are subject to rigorous pre-clinical and clinical testing and other approval procedures by the FDA and similar
health authorities in foreign countries. Various federal statutes and regulations also govern or regulate the manufacturing, safety, labeling, storage,
recordkeeping and marketing of such products. The process of obtaining these approvals and the subsequent compliance with appropriate federal and foreign
statutes and regulations are complex and require expertise and the expenditure of substantial resources.
In order to test clinically, and to manufacture and market products for diagnostic or therapeutic use, a company must comply with mandatory
procedures and safety standards established by the FDA and comparable agencies in foreign countries. Before beginning human clinical testing of a potential
new drug in the United States, a company must file an Investigational New Drug ("IND") application and receive clearance from the FDA. An IND application
is a summary of the pre-clinical studies that were conducted to characterize the drug, including toxicity and safety studies, information on the drug’s
composition and the manufacturing and quality control procedures used to produce the drug, as well as a discussion of the human clinical studies that are being
proposed to evaluate the safety and efficacy of the product.
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The pre-marketing clinical program required for approval by the FDA for a new drug typically involves a time-consuming and costly three-phase
process. In Phase I, trials are conducted with a small number of healthy subjects to determine the early safety profile, the pattern of drug distribution,
metabolism and elimination. In Phase II, trials are conducted with small groups of patients afflicted with a target disease in order to determine preliminary
efficacy, optimal dosages and expanded evidence of safety. In Phase III, large scale, multi-center comparative trials, which may include both controlled and
uncontrolled studies, are conducted with patients afflicted with a target disease in order to provide enough data for statistical proof of efficacy and safety
required by the FDA and other authorities. Additional trials may be required to evaluate how a new drug interacts with other drugs as well as if the drug has any
impact on cardio-vascular or other potential risks.
The FDA closely monitors the progress of each of the three phases of clinical testing and may, in its discretion, reevaluate, alter, suspend or terminate
the testing based on the data that have been accumulated to that point and its assessment of the risk/benefit ratio to the patients involved in the testing.
Estimates of the total time typically required for carrying out such clinical testing vary between two and 10 years. Upon completion of such clinical testing, a
company typically submits an NDA to the FDA that summarizes the results and observations of the drug during the clinical testing. Based on its review of the
NDA, the FDA will decide whether to approve the drug and whether to impose any marketing restrictions or require additional post-approval clinical studies.
This review process can be quite lengthy, and approval for the production and marketing of a new pharmaceutical product can require a number of years and
substantial funding. There can be no assurance that any approval will be granted on a timely basis, if at all. In some circumstances, a new formulation of an
approved product may be reviewed through a supplemental NDA process which relies in part on the prior approval of the initial formulation.
The FDA amended its regulations, effective June 30, 2002, to include the “Animal Rule” in circumstances that would permit the typical clinical testing
regime to approve certain new drug and biological products used to reduce or prevent the toxicity of chemical, biological, radiological, or nuclear agents not
otherwise naturally present for use in humans based on evidence of safety in healthy subjects and evidence of effectiveness derived only from appropriate
animal studies and any additional supporting data. The FDA has indicated that approval for therapeutic use of TPOXX® for smallpox was determined under
the “Animal Rule.”
Once a  product is approved for sale, FDA regulations govern the manufacturing and marketing activities, and a post-marketing testing and
surveillance program may be required to monitor a product’s usage and effects. Product approvals may be withdrawn if compliance with regulatory standards is
not maintained. Many other countries in which products developed by us may be marketed impose similar regulatory processes.
FDA regulations also make available an alternative regulatory mechanism that may lead to use of the product under limited circumstances. The
Emergency Use Authorization (“EUA”) authority allows the FDA Commissioner to strengthen the public health protections against biological, chemical,
radiological and nuclear agents that may be used to attack the American people or the U.S. armed forces. Under this authority, the FDA Commissioner may
allow medical countermeasures to be used in an emergency to diagnose, treat or prevent serious or life-threatening diseases or conditions caused by such agents
when appropriate findings are made concerning the nature of the emergency, the availability of adequate and approved alternatives, and the quality of available
data concerning the drug candidate under consideration for emergency use.
 
In addition to regulations in the United States, we are subject to a variety of foreign regulations governing clinical trials and commercial sales and
distribution of our products. Whether or not we obtain FDA approval for a product, we must obtain approval by the comparable regulatory authorities of
foreign countries or economic areas, such as the European Union (“EU”) and the United Kingdom (UK), before we may commence clinical trials or market
products in those countries or areas. The approval process and requirements governing the conduct of clinical trials, product authorization, pricing and
reimbursement vary greatly from place to place, and the time may be longer or shorter than that required for FDA approval. 
 
Under EU regulatory systems, a company may submit marketing authorization applications either under a centralized or decentralized procedure. The
centralized procedure is compulsory for medicinal products produced by biotechnology or those medicinal products containing new active substances for
specific indications such as the treatment of AIDS, cancer, neurodegenerative disorders, diabetes, viral diseases and designated orphan medicines, and optional
for other medicines which are highly innovative. Under the centralized procedure, a marketing application is submitted to the European Medicines Agency
(EMA) where it will be evaluated by the Committee for Medicinal Products for Human Use and a favorable opinion typically results in the grant by the
European Commission of a single marketing authorization that is valid for all EU Member States within 67 days of receipt of the opinion. The initial marketing
authorization is valid for five years, but once renewed is usually valid for an unlimited period. The decentralized procedure provides for approval by one or
more “concerned” member states based on an assessment of an application performed by one member state, known as the “reference” member state. Under the
decentralized approval procedure, an applicant submits an application, or dossier, and related materials to the reference member state and concerned member
states. The reference member state prepares a draft assessment and drafts of the related materials within 120 days after receipt of a valid application. Within 90
days of receiving the reference member state’s assessment report, each concerned member state must decide whether to approve the assessment report and
related materials. If a member state does not recognize the marketing authorization, the disputed points are eventually referred to the European Commission,
whose decision is binding on all member states.  On January 10, 2022, the EMA approved SIGA’s Marketing Authorisation Application (MAA) for oral
tecovirimat, the same formulation that was approved by the FDA in July 2018 under the brand name TPOXX®. The EMA approval includes labeling for oral
tecovirimat indicating its use for the treatment of smallpox, mpox, cowpox, and vaccinia complications following vaccination against smallpox. The MAA was
filed under the centralized application process, which, upon approval, enables sales, including procurement for stockpiling, of oral tecovirimat in all EU
Member States, as well as Norway, Iceland, and Liechtenstein.
The United Kingdom left the European Union on January 31, 2020 (commonly referred to as “Brexit”), with a transitional period that expired on
December 31, 2020. The United Kingdom and the European Union entered into a trade agreement known as the Trade and Cooperation Agreement, which went
into effect on January 1, 2021. On July 8, 2022, the United Kingdom’s Medicines and Healthcare products Regulatory Agency (“MHRA”) approved oral
tecovirimat for the treatment of smallpox, mpox, cowpox, and vaccinia complications following vaccination against smallpox in adults and children with a
body weight of at least 13kg. Since the regulatory framework in the United Kingdom covering the quality, safety and efficacy of pharmaceutical products,
clinical trials, marketing authorization, commercial sales and distribution of medicinal products is derived from EU Directives and Regulations, Brexit could
materially impact the future regulatory regime which applies to products and the approval of other product candidates in the United Kingdom.
 
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Legislation and Regulation Related to Bioterrorism Counteragents and Pandemic Preparedness
Because our drug candidates are intended for the treatment of diseases that may result from acts of bioterrorism or biowarfare or for pandemic
preparedness, they may be subject to the specific legislation and regulation described below and elsewhere in this Annual Report on Form 10-K.
Project BioShield
Project BioShield and related 2006 federal legislation provide procedures for biodefense-related procurement and awarding of research grants, making
it easier for HHS to commit funds to countermeasure projects. Project BioShield provides alternative procedures under the Federal Acquisition Regulation, the
general rubric for acquisition of goods and services by the U.S. Government, for procuring property or services used in performing, administering or supporting
biomedical countermeasure research and development. In addition, if the Secretary of HHS deems that there is a pressing need, Project BioShield authorizes
the Secretary of HHS to use an expedited award process, rather than the normal peer review process, for grants, contracts and cooperative agreements related to
biomedical countermeasure research and development activity.
Under Project BioShield, the Secretary of HHS, with the concurrence of the Secretary of the U.S. Department of Homeland Security and upon the
approval of the President, can contract to purchase unapproved countermeasures for the Strategic Stockpile in specified circumstances. The U.S. Congress is
notified of a recommendation for a Strategic Stockpile purchase after Presidential approval. Project BioShield specifies that a company supplying the
countermeasure to the Strategic Stockpile is paid on delivery of a substantial portion of the countermeasure. To be eligible for purchase under these provisions,
the Secretary of HHS must determine that there are sufficient and satisfactory clinical results or research data, including data, if available, from pre-clinical and
clinical trials, to support a reasonable conclusion that the countermeasure will qualify for approval or licensing within eight years. Project BioShield also
allows the Secretary of HHS to authorize the emergency use of medical products that have not yet been approved by the FDA. To exercise this authority, the
Secretary of HHS must conclude that:
•
the agent for which the countermeasure is designed can cause serious or life-threatening disease;
 
 
•
the product may reasonably be believed to be effective in detecting, diagnosing, treating or preventing the disease;
 
 
•
the known and potential benefits of the product outweigh its known and potential risks; and
 
 
•
there is no adequate alternative to a product that is approved and available.
 
Although this provision permits the Secretary of HHS to circumvent FDA approval (entirely, or in part) for procurement and use, its use in this manner
would likely be limited to rare circumstances. 
Public Readiness and Emergency Preparedness Act
The Public Readiness and Emergency Preparedness Act (the "PREP Act") provides immunity for manufacturers from claims under state or federal law
for “loss” arising out of the administration or use of a “covered countermeasure” in the United States. However, injured persons may still bring a suit for
“willful misconduct” against the manufacturer under some circumstances. “Covered countermeasures” include security countermeasures and “qualified
pandemic or epidemic products,” including products intended to diagnose or treat pandemic or epidemic disease, as well as treatments intended to address
conditions caused by such products. For these immunities to apply, the Secretary of HHS must issue a declaration in cases of public health emergency or
“credible risk” of a future public health emergency. Since 2007, the Secretary of HHS has issued twelve declarations under the PREP Act to protect from
liability countermeasures that are necessary to prepare the nation for potential pandemics or epidemics, including a declaration on October 10, 2008 that
provides immunity from tort liability as it relates to smallpox. The PREP Act Declaration for smallpox countermeasures was amended by the Secretary of HHS
in 2022 to emphasize that it covers mpox virus, add qualified persons to administer vaccines and therapeutics to address the current public health emergency
caused by the 2022 outbreak of mpox cases and the risk of future public health threats arising from orthopoxviruses, and to extend protection from December
31, 2022 to December 31, 2032.
Foreign Regulation
As noted above, in addition to regulations in the United States, we might be subject to a variety of foreign regulations governing clinical trials and
commercial sales and distribution of our drug candidates. Regardless of any FDA approval of a product, we may have to obtain approval of that product by the
comparable regulatory authorities of foreign countries before we can commence clinical trials or marketing of the product in those countries. The actual time
required to obtain clearance to market a product in a particular foreign jurisdiction varies substantially, based upon the type, complexity and novelty of the
pharmaceutical drug candidate, the specific requirements of that jurisdiction, and in some countries whether the FDA has previously approved the drug for
marketing. The requirements governing the conduct of clinical trials, marketing authorization, pricing and reimbursement vary from country to country. Certain
foreign jurisdictions, including the European Union and Canada, have adopted certain biodefense-specific regulations akin to those available in the United
States such as a procedure similar to the “Animal Rule” promulgated by the FDA for review and potential approval of biodefense products.
Regulations Regarding Government Contracting
The status of an organization as a government contractor in the United States and elsewhere means that the organization is also subject to various
statutes and regulations, including the Federal Acquisition Regulation, which governs the procurement of goods and services by agencies of the United States.
These governing statutes and regulations can impose stricter penalties than those normally applicable to commercial contracts, such as criminal and civil
damages liability and suspension and debarment from future government contracting. In addition, pursuant to various statutes and regulations, government
contracts can be subject to unilateral termination or modification by the government for convenience in the United States and elsewhere, detailed auditing
requirements, statutorily controlled pricing, sourcing and subcontracting restrictions and statutorily mandated processes for adjudicating contract disputes.

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Availability of Reports and Other Information
Our internet address is www.siga.com. Our investor relations website is located at https://investor.siga.com. We make available free of charge on our
investor relations website under “Financials” our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy and
information statements, our directors’ and officers’ Section 16 reports and any amendments to those reports as soon as reasonably practicable after filing or
furnishing such materials to the SEC. They are also available for free on the SEC’s website at www.sec.gov.
We use our investor relations website as a means of disclosing material non-public information and for complying with our disclosure obligations
under Regulation FD. Investors should monitor such website, in addition to following our press releases, SEC filings and public conference calls and webcasts.
Information relating to our corporate governance is also included on our investor relations website, including copies of our Code of Ethics and Business
Conduct, Corporate Governance Guidelines, and the charters of the committees of our Board of Directors. The information in or accessible through the SEC
and our website are not incorporated into, and are not considered part of, this filing.
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Item 1A. Risk Factors
This report contains forward-looking statements and other prospective information relating to future events. These forward-looking statements and other
information are subject to risks and uncertainties that could cause our actual results to differ materially from our historical results or currently anticipated
results, including the following:
Risks Related to Our Dependence on Government Contracts
Government contracts require ongoing funding decisions by governments. A substantial percentage of our potential future revenues are expected to come
from government contracts. The majority of potential revenue under the 19C BARDA Contract, the Company's largest procurement contract, is tied to
options all but one of which have been exercised and the remaining option may or may not be exercised at the sole discretion of BARDA. Our inability to
obtain a new procurement contract to supply TPOXX® to the U.S. Government could cause our business, financial condition, results of operations and
prospects to suffer materially.
Government-funded contracts often consist of standalone procurement orders or a base period of performance followed by options for the
performance of certain future activities. The value of goods and services subject to options may constitute the majority of the total value of the underlying
contract, as in the case of the 19C BARDA Contract as well as any new contract to continue supplying TPOXX® to the U.S. Government.
The funding of government programs, which fund BARDA’s purchases under the 19C BARDA Contract and are expected to fund any new contract to
supply TPOXX® to the U.S. Government, is subject to Congressional appropriations, generally made on a fiscal year basis even though a program may
continue for several years. Our government customers are subject to political considerations and budgetary constraints, which result in uncertainties as to
continued funding of their ongoing programs, including SIGA’s contracts.
 
As of December 31, 2024, all but one of the options to which most of the contract value of the 19C BARDA Contract is tied have been exercised. The
one remaining option may or may not be exercised in the sole discretion of BARDA. There is no guarantee that the remaining option will be exercised, or if it
is exercised, when such exercise will occur. In addition, there is no guarantee that we will be able to enter into a new contract to supply TPOXX® to the U.S.
Government, or if we do, whether the potential revenues under such contract will be favorable. If the remaining option under the 19C BARDA Contract is not
exercised, or we are unable to enter into a new contract to supply TPOXX® to the U.S. Government on favorable terms, if at all, including because levels of
government expenditures and authorizations for biodefense decrease or shift to other programs, changes in the U.S. administration, or for any other reason, our
business, financial condition, results of operations and prospects may suffer materially.
Government procurement contracts are mostly set at fixed prices determined at inception of the contract based on estimates of the time, resources and
expenses required to perform these contracts. If our estimates are not accurate, we may not be able to earn an adequate return or may incur a loss under
these arrangements.
Remaining unexercised options under current government procurement contracts, including the 19C BARDA Contract, are predominately fixed-price.
We expect that our future contracts with the U.S. Government and foreign governments for TPOXX®, as well as contracts for other biodefense product
candidates, would also be predominantly fixed-price arrangements with potential moderate annual increases. Under a fixed-price contract, we are required to
deliver our products at a fixed price determined at the inception of the contract regardless of the actual costs we incur, and to absorb any costs incurred in
satisfaction of our obligations. Our failure to secure financial terms, including price, generally consistent with our prior agreements, anticipate significant
technical problems, estimate costs accurately or control costs during performance of a fixed-price contract could reduce the profitability of such contract, or if
severe, cause a loss, which could in turn negatively affect our operating results.
We expect a substantial percentage of our future operating revenues to come from contracts with the U.S. Government for the provision and maintenance
of the stockpile of TPOXX® built under the 19C BARDA Contract. If the U.S. Government does not enter into such a contract, our long-term business,
financial condition and operating results could be materially harmed.
The success of our business and our operating results for the foreseeable future will be substantially dependent on the U.S. Government’s commitment
to maintaining or expanding its stockpile of TPOXX®. Failure to secure and perform additional U.S. Government contracts after the 19C BARDA Contract to
substantially maintain or expand the U.S. Government stockpile of TPOXX® could have a material adverse effect on our long-term business, financial
condition, results of operations and prospects. Additionally, the 19C BARDA Contract does not necessarily increase the likelihood that we will secure future
comparable contracts with the U.S. Government.
Laws and regulations affecting government contracts and grants might make it more costly and difficult for us to successfully conduct our business.
Our business with the U.S. Government, international governments, and any future business with state and local governmental agencies is subject to
specific procurement regulations and a variety of other legal and compliance obligations. These laws and rules include those related to procurement integrity,
rates and pricing of services and goods to be reimbursed by the U.S. Government, export control, government security regulations, employment practices,
protection of the environment, accuracy of records and the recording and reporting of costs, and foreign corrupt practices.   Among the most significant
government contracting regulations that affect our business are:
•
the Federal Acquisition Regulation and other agency-specific regulations supplemental to the Federal Acquisition Regulation, which comprehensively
regulate the procurement, formation, administration and performance of U.S. Government contracts;  
 
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•
the business ethics and public integrity obligations that  govern conflicts of interest and the hiring of former government employees, restrict the
granting of gratuities and funding of lobbying activities and incorporate other requirements such as the Anti-Kickback Act and the Foreign Corrupt
Practices Act ("FCPA"); and
 
•
export and import control laws and regulations, including laws, regulations and executive orders restricting the use and dissemination of information
classified for national security purposes and the exportation of certain products and technical data.
 
Compliance with these obligations increases our performance and compliance costs. Failure to comply with these regulations and requirements could
lead to suspension or debarment, for cause, from government contracting or subcontracting for a period of time and could result in significant civil or criminal
penalties. The termination of a government contract as a result of our failure to satisfy any of these obligations would have a material negative impact on our
operations and harm our reputation and ability to procure other government contracts or grants in the future.
Unfavorable provisions in government contracts and grants, some of which may be customary, may harm our future business, financial condition and
potential operating results.
Government contracts and grants customarily contain provisions that give the government substantial rights and remedies, many of which are not
typically found in commercial contracts, including (but not limited to) provisions that allow the government to:
•
terminate existing contracts or grants, in whole or in part, for any reason or no reason;
•
unilaterally reduce or modify grants, contracts or subcontracts, including through the use of equitable price adjustments;
 
•
cancel multi-year contracts or grants and related orders if funds for performance for any subsequent year become unavailable;
 
•
decline to exercise an option to renew, or to exercise the maximum amount specified in, a contract or grant;
 
•
claim rights to products or assets, including intellectual property, developed under a contract or grant;
 
•
take actions that result in a longer development timeline or higher costs than expected;
 
•
suspend or debar a contractor from doing business with the government or a specific government agency due to regulatory or compliance failures;
 
•
pursue criminal or civil remedies under the False Claims Act and the False Statements Accountability Act; and
 
•
control or prohibit the export of products.
 
Generally, government contracts, including the 19C BARDA Contract, contain provisions permitting unilateral termination or modification, in whole
or in part, at the government’s convenience. Under general principles of government contracting law, if the government terminates a contract or grant for
convenience, the terminated company may recover only its incurred or committed costs, settlement expenses and profit on work completed prior to the
termination. If the government terminates a contract or grant for default, the defaulting company is entitled to recover costs incurred and associated profits on
accepted items only and may be liable for excess costs incurred by the government in procuring undelivered items from another source. Our government
contracts and grants could be terminated under these circumstances.
A U.S. Government shutdown could negatively impact our business and liquidity.
Each year, the U.S. Congress must pass all spending bills in the federal budget. If any such spending bill is not timely passed, a government shutdown
may close many federally run operations, and halt work for federal employees unless they are considered essential or such work is separately funded by a
continuing resolution or by industry. If a government shutdown were to occur, we could experience a delay in contract funding decisions by the government.
Additionally, we could be materially harmed by any prolonged government shutdown.
 
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Our business could be adversely affected by a negative audit by the U.S. Government.
U.S. Government agencies, such as the Defense Contract Audit Agency (the “DCAA”), routinely audit and investigate government contractors. These
agencies review a contractor’s performance under its contracts and grants, cost structure, and compliance with applicable laws, regulations and standards.
The DCAA also reviews the adequacy of, and a contractor’s compliance with, its internal control systems and policies, including the contractor’s
purchasing, property, estimating, compensation and management information systems. Any cost found to be improperly allocated to a specific contract will not
be reimbursed, and such costs already reimbursed must be refunded. If an audit uncovers improper or illegal activities, a contractor may be subject to civil and
criminal penalties and administrative sanctions, including termination of contracts, forfeiture of profits, suspension of payments, fines and suspension,
debarment or prohibition from doing business with the U.S. Government.  Such actions would also negatively affect our reputation.
 
Risks Related to Regulatory Approvals
If we are not able to obtain regulatory approvals for certain additional indications of TPOXX® from the FDA, we may not be able to realize the full
benefits of any U.S. Government contracts or may not be able to commercialize such indications other than through existing sales to the U.S. Government,
and our ability to generate future revenue could be materially impaired.
The development and full commercialization of additional indications for TPOXX® in the U.S., such as use for smallpox post-exposure prophylaxis
("PEP") or treatment of mpox, including the testing, manufacture, safety, efficacy, recordkeeping, labeling, storage, approval, advertising, promotion, sale and
distribution, are subject to comprehensive regulation by the FDA and other regulatory agencies in the United States and by comparable authorities in other
countries and jurisdictions. We could fail to achieve FDA or other regulatory approval of certain indications of TPOXX®, or there could be delays in such
approval of TPOXX®, or the approved labeling for such indications of TPOXX® may differ from expectations. For example, in connection with a potential
FDA label expansion of oral TPOXX® for an indication covering PEP, we completed an immunogenicity trial in 2023 and originally targeted a supplemental
NDA submission in 2024.  Because samples from that trial are being reanalyzed by the U.S. Centers for Disease Control and Prevention, the Company is now
targeting a supplemental NDA submission in the next twelve months.  In addition, in 2024, data reported from two randomized, placebo-controlled clinical
trials studying TPOXX® as a potential treatment for mpox, showed that TPOXX® did not demonstrate improved time to full lesion resolution compared to
placebo, the primary endpoint in each trial. 
 
Failure to obtain regulatory approval of certain indications for TPOXX® may prevent us from commercializing TPOXX® in the United States for the
mpox indication or may prevent us from getting procurement orders from the U.S. Government for the post-exposure prophylaxis indication and may impact
other regulatory authorities' future review of other indications of  TPOXX®, which in turn, could adversely impact  potential sales of TPOXX® in other
countries, and such delays or required alterations to regulatory applications could also have a material adverse effect on our future revenue opportunities.
Failure to obtain regulatory approval for new formulations of TPOXX® in the U.S. would prevent us from commercializing TPOXX® in other than the
oral and intravenous formulations for smallpox treatment.
We have received FDA approval for the oral and intravenous formulations of TPOXX® in the U.S. for the treatment of smallpox, not the liquid
suspension/pediatric formulation or any other formulation. Because pharmaceutical manufacturers are only permitted to commercialize formulations that have
received FDA approval (or in other jurisdictions according to their applicable regulatory and legal frameworks), any regulatory or legal setbacks as described
above could have an adverse impact on the Company’s ability to sell TPOXX® in other formulations.
Failure to obtain future regulatory approval in additional international jurisdictions could prevent us from marketing our products in certain jurisdictions
abroad.
To market our products in certain additional foreign jurisdictions, we may need to obtain separate regulatory approvals and comply with numerous and
varying regulatory requirements. The approval procedure varies among countries and can involve additional testing and differing manufacturing or labeling
requirements. Complying with such requirements may take substantial time prior to approval and delay commercial activities in those jurisdictions.
The foreign regulatory approval process may include all of the risks associated with obtaining FDA approval for expanded indications or new
formulations of TPOXX®. We may not obtain additional foreign regulatory approvals on a timely basis, if at all. Regulatory approval by the FDA, which we
obtained for oral and IV TPOXX®, or by a foreign regulatory authority such as Health Canada, the European Medicines Agency, the Japanese Pharmaceuticals
and Medical Devices Agency, and the Medicines and Healthcare Products Regulatory Agency, which we obtained for oral TPOXX®, does not ensure approval
by additional regulatory authorities in other foreign countries or jurisdictions or by the FDA for additional indications or new formulations. In addition, failure
to obtain approval in one jurisdiction may impact our ability to obtain approvals elsewhere. We may not be able to file for or receive necessary regulatory
approvals to commercialize our products in new markets, in which case, our addressable market may be reduced and our ability to realize the full potential of
our products and product candidates may be harmed and our business, financial condition, results of operations and prospects may be adversely affected.
Risks Related to Commercial and International Activities
Changing political or social factors and opposition, such as protests and potential related litigation, may delay or impair our ability to market TPOXX®
and any other biodefense product candidates and may require us to spend time and money to address these issues.
Products developed to treat diseases caused by or to combat the threat of bioterrorism or biowarfare are subject to changing political and social
environments. The political and social responses to bioterrorism and biowarfare have been unpredictable and much debated. Changes in political leadership,
such as the recent change in the U.S. Presidential administration, as well as changes in the perception of the risk that military personnel or civilians could be
exposed to biological agents as weapons of bioterrorism or biowarfare may delay or cause resistance to bringing investigational products to market or limit
pricing or purchases of approved products, any of which could materially harm our business.

 
Lawsuits, protests or other negative publicity may adversely affect the degree of market acceptance of, and thereby limit the demand for, TPOXX®
and any biodefense product candidates. In such event, our ability to market and sell such products may be hindered, the commercial success of TPOXX® and
other products we develop may be harmed and we may need to expend time, attention and resources addressing such legal or publicity issues, thereby reducing
our revenues and having a material adverse impact on us.
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Our ability to grow our business partly depends on our ability to achieve recurring sales of TPOXX® to customers other than the U.S. Government, which
may expose us to risks associated with conducting business in international markets.
An element of our business strategy is to sell TPOXX® internationally to foreign governments on a recurring basis. These non-U.S. Government
customers include foreign governments, as well as state and local governments, non-governmental organizations focused on global health like the World Health
Organization, health care institutions like hospitals (domestic and foreign) and certain large business organizations interested in protecting their employees
against global threats and protecting first responders in cases of emergencies.
If we fail to obtain recurring sales of TPOXX® to customers other than the U.S. Government, our business and opportunities for growth could be
limited.
 
In addition, the expansion of our international presence may increase certain risks, which include:
 
•
foreign governments imposing withholding or other taxes on remittances and other payments to us or the amount of any such taxes may increase;
 
•
potential difficulties enforcing agreements, making product deliveries, satisfying product and process requirements of non-U.S. jurisdictions,
collecting receivables and protecting our intellectual property and other assets;
 
•
regional safety and security considerations;
 
•
increased costs and risks relating to exportation, shipping and transportation of the Company’s products, including the impact of any trade disputes or
other trade barriers, such as the imposition of new or increased tariffs; and
•
increased management and infrastructure costs.
See the risk factor below titled “The Company is subject to complex and changing laws and regulations worldwide, which exposes the Company to
potential liability, increased cost, and other adverse effects on the Company’s business” for more discussion of this risk. We cannot predict the ultimate impact
such events might have on the Company’s business, financial condition and results of operations.
We recently reacquired international promotional rights and we may be unable successfully to expand our internal international sales and marketing
capabilities or enter into agreements with third parties outside of the U.S..  
 
Pursuant to the International Promotion Agreement described under “Business,” we previously granted a third party, Meridian Medical Technologies
("Meridian") exclusive rights to market, advertise, promote, offer for sale, or sell oral TPOXX® in all geographic regions except for the United States (the
“Territory”). In June 2024, we reacquired international promotional rights from Meridian. Our ability to maintain existing international customer relationships
and contracts as well as generate future international relationships and contracts will depend on our ability to identify, hire and train qualified personnel. At
present, we are at the early stages of building out an international marketing organization. 
For contracts with international customers that were originated by Meridian in prior years and remain active, the Company is reliant on Meridian to
collect payments from such customers, and to remit the Company’s share of such payment to the Company.
Under the terms of the Amended International Promotion Agreement, Meridian remains responsible for collecting payments from customers under
certain legacy contracts and remitting such payments to us on a quarterly basis. As a result, we rely on Meridian’s ability to collect and remit payment to us in a
timely manner. Meridian could fail to perform such obligations adequately, cease operations abruptly or become insolvent, or our relationships with Meridian
may otherwise change adversely. Any of the foregoing could adversely impact our business, financial condition and operating results as a result.
 
If we are unable to expand our internal sales and marketing capabilities or enter into agreements with third parties with expertise in sales and marketing,
we may be unable to expand our sales of TPOXX® or other product candidates in the U.S., including to U.S. customers other than the U.S. Government.
In the United States, we currently employ a small, targeted group to support development and business activities related to TPOXX®. We plan to
continue our current approach for sales to the U.S. Government of any other biodefense product candidates that we may successfully develop. This approach
may prove insufficient to adequately support our development and business activities in the United States.
 
In order to expand our sales of TPOXX® or other product candidates in the U.S., including to U.S. customers other than the U.S. Government, we
may need to enhance our own sales and marketing capabilities, and/or enter into collaborations with third parties able to perform these services or outsource
these functions to third parties.  There is no assurance that we will be able to do so successfully, and even if we are able to do so that it will have a significant
impact on our growth or profitability.
Although TPOXX® is currently stockpiled by certain governments and not sold commercially, in the future we may be required to perform additional
clinical trials or change the labeling of TPOXX® if we or others identify side effects after a product is on the market, which could harm future sales of
such product.
If we or others identify side effects of any approved product, or if manufacturing problems occur:
•
regulatory approval may be withdrawn;
•
reformulation of our products, additional clinical trials or other testing or changes in labeling of our products may be required;

•
changes to or re-approvals of manufacturing facilities used by SIGA may be required;
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•
sales of the affected products may drop significantly;
•
our reputation in the marketplace may suffer; and
•
lawsuits, including class action suits, may be brought against us.
Any of the above occurrences could harm or prevent future sales of the affected product or could increase the costs and expenses of commercializing
and marketing these products, which could adversely affect our business, financial condition and results of operations.
If we sell TPOXX® to non-government customers and are able to charge such customers higher prices than we charge to the U.S. Government, healthcare
reform and controls on healthcare spending in the U.S. may nonetheless limit the prices we charge for our products and the amounts that we can sell.
There have been a number of legislative and regulatory proposals in the United States to change the health care system in ways that could affect our
pricing of TPOXX® to non-government customers. One significant example of recent legislative action is the Inflation Reduction Act of 2022 (the “IRA”),
which was signed into law on August 16, 2022. The IRA, as written, among other changes, gives HHS the ability and authority to directly negotiate with
manufacturers the price that Medicare will pay for certain high-priced drugs. The IRA also requires manufacturers of certain Part B and Part D drugs to issue to
HHS rebates based on certain calculations and triggers (i.e., when drug prices increase and outpace the rate of inflation). Implementation of the IRA's drug
price negotiation provisions began in 2023, and is expected to continue over the next several years. Multiple pharmaceutical manufacturers have challenged the
law in court, largely on constitutional grounds. These suits will continue through 2025 and the ultimate effects of such legal challenges are unclear. In addition,
there are uncertainties as to the extent to which the IRA and similar frameworks will be implemented under the new U.S. administration. At this time, we
continue to evaluate the effect of the IRA on our business operations and financial condition and results as the full impact of the IRA remains uncertain. In
addition, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the
“Healthcare Reform Act”), substantially changed the way healthcare is financed by both governmental and private insurers and had a substantial effect on the
pharmaceutical industry. The Healthcare Reform Act contains a number of provisions, including those governing enrollment in federal healthcare programs like
Medicare, reimbursement changes and rules protecting against fraud and abuse, that affect existing healthcare programs. If we are able to charge higher prices
to non-government customers than we charge to the U.S. Government, healthcare reform and controls on healthcare spending in the U.S. may nonetheless limit
the price we charge for our products and the amounts that we can sell. For example, some of our revenue may be derived from governmental healthcare
programs, including Medicare. Furthermore, beginning in 2011, the Healthcare Reform Act imposed a non-deductible excise tax on pharmaceutical
manufacturers or importers who sell “branded prescription drugs,” which includes innovator drugs and biologics (excluding orphan drugs or generics) to U.S.
Government programs. The Healthcare Reform Act and other healthcare reform measures that may be adopted in the future could have an adverse effect on our
industry generally, as well as potential future sales and profitability of our current or future products. Additionally, the new U.S. administration may propose or
mandate policy changes that create additional uncertainty for our business.
 
The Company is subject to complex and changing laws and regulations worldwide, which exposes the Company to potential liability, increased cost, and
other adverse effects on the Company’s business.
Some laws and regulations governing our business, including the U.S. Foreign Corrupt Practices Act (FCPA) and many other global anti-corruption
laws, may hold us liable for the actions of our employees as well as those of our third-party partners.  Although the Company has implemented policies and
procedures designed to ensure compliance with applicable laws and regulations, there can be no assurance the Company’s employees, contractors, third parties
or agents will not violate such laws and regulations or the Company’s policies and procedures.
Failure to comply with such laws and regulations could adversely affect the Company’s business, reputation, financial condition, or ability to procure
government contracts.   Indeed, violations of the FCPA can result in significant civil and criminal penalties that can be levied on the Company and its
executives. Indictment alone under the FCPA can lead to suspension of the right to do business with the U.S. Government until the pending claims are resolved
and conviction under the FCPA can result in long-term disqualification as a government contractor.  The SEC may also suspend or bar issuers from trading
securities on U.S. stock exchanges for violations of the FCPA.
 
We have incurred in the past, and could incur net losses in the future, including if the remaining option is not exercised under the 19C BARDA Contract
or we fail to enter into a new procurement contract with the U.S. Government.
While we believe our current cash position is strong, our ability to continue to fund future operations will be substantially impacted by remaining cash
flows from the 19C BARDA Contract or any new procurement contract with the U.S. Government. If BARDA fails to exercise the remaining option under the
19C BARDA Contract or we fail to enter into a new U.S. Government procurement contract or cash flows from such procurement contract are significantly
delayed or significantly different from expectations, or if operating expenses or other expenses meaningfully exceed our expectations or cannot be adjusted
accordingly, then our business, financial condition, results of operations and prospects could be materially adversely affected.
 
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Risks Related to Manufacturing, Storage and Our Dependence on Third Parties
If third parties on whom we rely for manufacturing and raw materials of TPOXX®, and managing our inventory, do not perform as contractually required
or as we expect, we may not be able to successfully satisfy our obligations under any contracts, including the 19C BARDA Contract and any future U.S.
Government procurement contract, and our business would suffer.
We currently rely on third-party manufacturers and service providers to provide raw materials and manufacture, package, test and ship TPOXX®.
Under the 19C BARDA Contract, we are responsible for the performance of these third-party contractors, and our contracts with these third parties give us
certain supervisory and quality control rights, but we do not exercise day-to-day control over their activities.
If a third-party provider fails to comply with applicable laws and regulations, fails to meet expected deadlines, fails to conduct trials in accordance
with regulatory requirements or our stated protocols, experiences shortages or delays, or otherwise does not carry out its contractual duties to us, or encounters
physical damage or natural disaster or disruptions at its facilities, our ability to meet our obligations under any contract including the 19C BARDA Contract or
any future U.S. Government procurement contract, or to develop, obtain approval of and commercialization of other indications of TPOXX® or other drug
candidates, could be significantly impaired or delayed. We do not currently have the internal capacity to perform these important functions, and we may not be
able to maintain commercial arrangements for these services on reasonable terms.
If third parties on whom we rely for packaging and delivery of our products, are unable to meet the target timing for deliveries to our customers, product
revenue recognition may be delayed and our business could suffer.
Additionally, we rely on third-party providers for storing, packaging and delivering certain of our products, including a portion of the stockpile of IV
TPOXX® purchased by government under the 19C BARDA Contract that we manage, thereby entrusting such vendor or vendors with the care and handling of
a substantial portion of IV TPOXX® inventory. Relying on third parties for storage, packaging and delivery of our products exposes us to risks, including
reduced control over timing for delivery and quality assurance. If these third parties experience delays, capacity constraints, quality control problems or other
disruptions to their operations, including due to supply chain shortages, natural disasters, health emergencies, pandemics, epidemics, civil unrest, labor
disputes, cyber events, trade disputes or other trade barriers, international conflicts or global hostilities, our ability to ship products to our customers could be
impaired and we may fail to meet our requirements for timely delivery. Failure to meet our scheduled product deliveries to our customers could cause the loss
of sales, delayed revenue recognition or an increase in our costs, which could adversely affect our business, financial condition and results of operations.
If third parties do not manufacture our drug candidates or products in sufficient quantities and at an acceptable cost or in compliance with regulatory or
contractual requirements and specifications, the fulfillment of contractual requirements under the 19C BARDA Contract, or any other procurement
contract, or the development of our drug candidates could be delayed, prevented or impaired.
If our contract manufacturers are unable to generate enough materials to meet commercial obligations or satisfy clinical needs, the success of drug
products may be jeopardized. Our current and anticipated future dependence upon others for the manufacture of our drug candidates may adversely affect our
ability to develop drug candidates and perform on commercial contracts on a timely and competitive basis. If our third-party manufacturers’ production
processes malfunction or contaminate our drug supplies during manufacturing, we may incur significant inventory loss that may not be covered by our
contractual provisions or insurance policies.
We currently rely on third parties to demonstrate regulatory compliance, for regulatory and science support and for quality assurance with respect to
the drug candidates manufactured for us. We intend to continue to rely on these third parties for these purposes with respect to production of commercial
supplies of drugs that we successfully develop. Manufacturers are subject to ongoing, periodic, unannounced inspection by the FDA and corresponding state
and foreign agencies or their designees to ensure strict compliance with applicable laws and regulations.
We cannot be certain that our present or future manufacturers will be able to comply with these regulations and other FDA regulatory requirements or
similar regulatory requirements outside the U.S. Our government contracts and grants call for compliance with all applicable legal and regulatory requirements,
however, we do not control third-party manufacturers and their methods for ensuring adherence to regulatory and legal standards. If we or these third parties
fail to comply with applicable regulations, sanctions could be imposed on us which could significantly delay and adversely affect supplies of our drug
candidates.
Problems related to large-scale commercial manufacturing could cause an increase in costs or shortages of products or a delay in product launches.
Manufacturing API and finished drug products, especially in large quantities, is complex. Our products require several manufacturing steps at multiple
facilities and involve complex techniques to assure quality and sufficient quantity. Our products must be made consistently and in compliance with a clearly
defined manufacturing process. Accordingly, it is essential to be able to validate and control the manufacturing process to assure that it is reproducible. Slight
deviations anywhere in the manufacturing process, including obtaining materials, filling, labeling, packaging, storage, shipping, quality control and testing,
some of which all pharmaceutical companies, including SIGA, experience from time to time, may result in lot failures, delay in the release of lots, product
recalls or spoilage. Success rates can vary dramatically at different stages of the manufacturing process, which can lower yields and increase costs. We may
experience deviations in the manufacturing process that may take significant time and resources to resolve and, if unresolved, may affect manufacturing output
and/or cause us to fail to satisfy contractual commitments, lead to delays in our clinical trials or result in litigation or regulatory action. Such actions would
hinder our ability to meet contractual obligations and could cause material adverse consequences for our business.
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Risks Related to Product Development
Growth of our business may be impacted significantly by our success in completing development and commercialization of drug candidates, new
formulations or additional indications for TPOXX®. If we are unable to commercialize new drug candidates, new formulations, or additional indications,
or experience significant delays in doing so, our business may be materially harmed.
We have invested a substantial amount of our efforts and financial resources in the development of our drug candidates. Our ability to generate near-
term cash flows is primarily dependent on the success of our smallpox antiviral drug TPOXX®, which has been approved by the FDA in oral and intravenous
forms and by select international regulatory agencies in the oral form. The commercial success of our current and future drug candidates, new formulations or
additional indications for TPOXX®, will depend on many factors, including:
•
successful development, formulation and cGMP scale-up of drug manufacturing that meets FDA requirements;
 
•
successful development of animal models;
 
•
successful completion of non-clinical development, including studies in approved animal models;
 
•
our ability to pay the expense of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights;
 
•
successful completion of clinical trials;
 
•
receipt of marketing approvals, including the impact of marketing restrictions or required post-approval clinical studies, from the FDA for liquid
suspension/pediatric formulations of TPOXX® and similar foreign regulatory authorities;
 
•
establishing arrangements on reasonable terms with suppliers and contract manufacturers;
 
•
manufacturing stable commercial supplies of drug candidates, including availability of raw materials;
 
•
launching commercial sales of the product or new indication/formulation, whether alone or in collaboration with others; and
 
•
acceptance of the product or new indication/formulation by potential government customers, public health experts, physicians, patients, healthcare
payers and others in the medical community.
We may rely on FDA regulations known as the “Animal Rule” to obtain approval for most of our biodefense drug candidates. The Animal Rule
permits the use of animal efficacy studies together with human clinical safety trials to support an application for marketing approval. These regulations are
relied upon only occasionally. It is possible that results from these animal efficacy studies may not be predictive of the actual efficacy of our drug candidates in
humans. If we are not successful in completing the development and commercialization of our drug candidates, whether due to our efforts or due to concerns
raised by our governmental regulators or customers, our business could be materially adversely affected.
 
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We may not be able to fully commercialize the liquid suspension/pediatric formulation of TPOXX®, or other additional indications for TPOXX®, if our
clinical trials do not demonstrate adequate safety or our animal studies do not demonstrate adequate efficacy.
Before obtaining regulatory approval for the sale of our drug candidates, extensive development is required. The development of a smallpox treatment
candidate requires clinical trials to demonstrate safety and animal studies to demonstrate efficacy. Clinical trials and animal studies, and related work, are
resource-intensive, difficult to design and implement, can take many years to complete and are uncertain as to outcome. Success in pre-clinical testing and
early clinical trials does not ensure that later clinical trials or animal efficacy studies will be successful, and interim results of a clinical trial or animal efficacy
study do not necessarily predict final results.
A failure of one or more of our clinical trials or animal efficacy studies can occur at any stage of development. We may experience numerous
unforeseen events during, or as a result of, pre-clinical testing and the clinical trial or animal efficacy study process that could delay or prevent our ability to
receive regulatory approval or commercialize our drug candidates, including:
•
regulators or institutional review boards may not authorize us to commence a clinical trial or conduct a clinical trial at a prospective trial site;
 
•
we may decide, or regulators may require us, to conduct additional pre-clinical testing or clinical trials, or we may abandon projects that we expect to
be promising, if our pre-clinical tests, clinical trials or animal efficacy studies produce negative or inconclusive results;
 
•
we might have to suspend or terminate our clinical trials if the participants are being exposed to unacceptable health risks;
 
•
regulators or institutional review boards may require that we hold, suspend or terminate clinical development for various reasons, including
noncompliance with regulatory requirements;
 
•
the resources required to manage and oversee our clinical trials could escalate and become cost prohibitive;
 
•
our governmental regulators may impose requirements on clinical trials, pre-clinical trials or animal efficacy studies that we cannot meet or that may
prohibit or limit our ability to perform or complete the necessary testing in order to obtain regulatory approval;
 
•
any regulatory approval we ultimately obtain may be limited or subject to restrictions or post-approval commitments that render the product not
commercially viable;
 
•
we may not be successful in recruiting a sufficient number of qualifying subjects for our clinical trials; 
 
•
the effects of our drug candidates may not be the desired effects or may include undesirable side effects or the drug candidates may have other
unexpected characteristics; or
 
•
the required resources, regulations, or challenges associated with animal studies may increase and make our studies more difficult.
 
Liquid Suspension/Pediatric TPOXX® formulations are currently in product development and there can be no assurance of successful development or
ultimate commercialization.
The fact that the FDA has approved the oral and IV formulations of TPOXX® does not guarantee that our approach to drug development will be
effective or will result in the successful commercialization  of the liquid suspension/pediatric formulation of TPOXX®, any new indication such as post-
exposure prophylaxis, of TPOXX® or any other drug. We cannot predict with certainty whether any other drug candidate or expanded indication resulting from
our research and development efforts will be approved by the FDA.
All of our potential drug candidates are prone to the risks of failure inherent in pharmaceutical product development, including the possibility that our
drug candidates will not or cannot:
•
be shown to be safe, non-toxic and effective;
 
•
otherwise meet applicable regulatory standards;
 
•
receive the necessary regulatory approvals;
 
•
develop into commercially viable drugs;
 
•
be manufactured or produced economically and on a large scale;
 
•
be successfully marketed;
 
•
be paid for by governmental procurers or be reimbursed by governmental or private insurers; or
 
•
achieve customer acceptance.
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In addition, third parties may seek to preclude us from marketing our drugs through enforcement of their proprietary or intellectual property rights that we are
not aware of, or third parties may succeed in marketing equivalent or superior drug products that do not infringe our intellectual property. Our failure to
develop safe, commercially viable future drug candidates or obtain approval for expanded indications and formulations of TPOXX® could have a material
adverse effect on our ability to grow our business, and impair our financial condition and operations.
Risks Related to Our Intellectual Property
Our ability to compete may decrease if we do not adequately protect our intellectual property rights.
Our commercial success will depend in part on our ability to obtain and maintain regulatory exclusivity, patent and other intellectual property
protection for our proprietary technologies, drug targets and potential products and to preserve our trade secrets and trademark rights. Because of the
substantial length of time and expense associated with bringing potential products through the development and regulatory clearance processes to reach the
marketplace, the pharmaceutical industry places considerable importance on obtaining regulatory, patent and trade secret protection. The patent positions of
pharmaceutical and biotechnology companies can be highly uncertain and involve complex legal and factual questions. No consistent policy regarding the
breadth of claims allowed in biotechnology patents worldwide has emerged to date. Accordingly, we cannot definitively predict the type and breadth of claims
allowed in patents covering our products.
SIGA exclusively owns its key patent portfolios, which relate to its leading drug product, TPOXX® (also known as ST-246, tecovirimat). As of
February 1, 2025, the TPOXX® patent portfolio has seven patent families consisting of 25 U.S. utility patents, 97 issued foreign patents, one U.S. utility patent
application, and 14 foreign patent applications. With FDA regulatory approval of oral TPOXX® in July 2018, we were awarded seven years of regulatory
exclusivity by the U.S. Patent and Trademark Office based on orphan drug designation for the product. Such protection is separate from, and in addition to, our
patent and other intellectual property rights and provides for exclusivity to July 2025.
We also rely on trade secrets, know-how, continuing technological innovation and licensing opportunities. In an effort to maintain the confidentiality
and ownership of trade secrets and proprietary information, we require our employees, consultants and some collaborators to execute confidentiality and
invention assignment agreements upon commencement of a relationship with us. These agreements may not provide meaningful protection for our trade
secrets, confidential information or inventions in the event of unauthorized use or disclosure of such information, and adequate remedies may not exist in the
event of such unauthorized use or disclosure.
 
If our technologies are alleged or found to infringe the patents or proprietary rights of others, we may be sued, we may have to pay damages or be barred
from pursuing a technology, or we may have to license those rights from and pay royalties to others on unfavorable terms. If we are sued, even if we
prevail, such litigation may be costly.
Our commercial success will depend significantly on our ability to operate without infringing the patents or proprietary rights of third parties. Our
technologies, or the technologies of third parties on which we may depend, may infringe the patents or proprietary rights of others. If there is an adverse
outcome in any dispute concerning rights to these technologies, then we could be subject to significant liability, required to license disputed rights from or to
other parties and/or required to cease using a technology necessary to carry out our research, development and commercialization activities. We do not
currently license any patent rights from third parties relative to TPOXX®.
 
If our patents are challenged and found to be invalid or unenforceable, the value of our products could be harmed, and we could be subject to
competition earlier than we anticipated.
The costs to establish or defend against claims of infringement or interference with patents or other proprietary rights can be expensive, distracting
and time-consuming, even if the outcome is favorable. An outcome of any patent or proprietary rights administrative proceeding or litigation that is unfavorable
to us may cause us to incur significant costs, and have a material adverse effect on us. Additionally, we may not prevail in any such action and such litigation
often takes years to resolve creating business uncertainty if we are not able to resolve it quickly.
 
Furthermore, like many biopharmaceutical companies, we may from time to time hire scientific personnel formerly employed by other companies
involved in one or more areas similar to the activities conducted by us. It is possible that we and/or these individuals may be subject to allegations of trade
secret misappropriation or other similar claims as a result of their prior affiliations.
 
Risks Related to Our Common Stock
Concentration of ownership of our capital stock could delay or prevent a change of control.
Our directors, executive officers and beneficial owners of more than 5% of our common stock ("principal stockholders") beneficially own a significant
percentage of our common stock. As a result, these stockholders, if acting together, have the ability to influence the outcome of corporate actions requiring
stockholder approval. Additionally, this concentration of ownership may have the effect of delaying or preventing a change of control of SIGA. As of February
14, 2025, directors, executive officers and principal stockholders (excluding institutional and retail investors) beneficially owned approximately 35% of our
outstanding common stock. In addition to owning common stock of the Company, directors and certain executive officers have the right to acquire additional
stock through the exercise or conversion of certain securities.
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A future issuance of preferred stock may adversely affect the rights of the holders of our common stock.
Our certificate of incorporation allows our Board of Directors (the "Board") to issue up to 20,000,000 shares of preferred stock and to fix the voting
powers, designations, preferences, rights and qualifications, limitations or restrictions of these shares without any further vote or action by the stockholders.
The rights of the holders of common stock will be subject to, and could be adversely affected by, the rights of the holders of any preferred stock that we may
issue in the future. The issuance of preferred stock could have the effect of making it more difficult for a third party to acquire a majority of our outstanding
voting stock, thereby delaying, deferring or preventing a change of control.
General Risk Factors
Global infectious disease outbreaks, such as the COVID-19 pandemic, or climate-related matters could negatively impact the global economy on a broad
scale and our business in particular.
 
The COVID-19 pandemic caused significant societal and economic disruption. The direct and indirect impacts of the pandemic were significant and
broad-based, including supply chain disruptions and labor shortages that started during the pandemic and continue to represent business and financial risks.  As
such, the Company is continually coordinating with service providers and vendors, in particular third party contract manufacturing organizations that constitute
our supply chain, with respect to risks and mitigating actions.
While  the Company has not identified or been notified by government customers of impediments to the continued full performance of their
government contracts, future global infectious disease outbreaks or climate-related matters could have material adverse impact on the financial condition of the
Company and its long-term operating performance.
 
Future acquisitions, strategic investments, partnerships or alliances could be difficult to identify and integrate, divert the attention of management, disrupt
our business, dilute stockholder value, materially change the risk profile of the Company and/or  adversely affect our operating results and financial
condition.
 
We may in the future seek to acquire or invest in businesses, products or technologies that we believe could complement or expand our services,
enhance our technical capabilities or otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the attention of management and
cause us to incur various expenses in identifying, investigating and pursuing businesses. In addition, we may not be able to find and identify desirable
acquisition targets or be successful in entering into an agreement with any particular target or consummating any such agreement. Even if we do consummate
an acquisition, in connection therewith we may be required to issue equity (thereby diluting our current stockholders) or debt, we may not be able to integrate
successfully the acquired personnel, operations and technologies, or effectively manage the combined business following the acquisition, or the acquired
business could otherwise fail to meet our expectations, which, in each case, could have a material adverse effect on our business projections, financial
condition, results of operations and prospects.
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The health security markets in which we compete and will compete are highly competitive.
 
The health security industry is characterized by rapid and significant technological change. Our success will depend on our ability to develop and
apply our technologies in the design and development of our product candidates, to establish and maintain a market for our product candidates, and maintain
and grow our market for TPOXX®. In addition, there are many companies, both public and private, including major pharmaceutical and chemical companies,
specialized biotechnology firms, universities and other research institutions engaged in developing pharmaceutical, health security and biotechnology products.
Many of these companies have substantially greater financial, technical, research and development resources, and human resources than us. Competitors may
develop products or other technologies that are more effective than TPOXX® or than any products being developed by us, or may obtain FDA approval for
products more rapidly than us. Following product approval and commercial launch, such as for TPOXX®, we still must compete in the manufacturing and
marketing of such products, areas in which it is very difficult to succeed and in which we are partially dependent on third parties. Many potential competitors
have manufacturing facilities and substantial marketing capabilities that may enable such companies to market competing products through existing channels
of distribution which could provide a substantial advantage.
 
Product liability lawsuits could cause us to incur liabilities, which could be substantial, and require us to limit commercialization of any products that we
may develop.
Like all pharmaceutical companies, we face an inherent business risk related to the sale of TPOXX® and any other products that we successfully
develop and the testing of our product candidates in clinical trials. TPOXX® is currently identified as a covered countermeasure under the PREP Act
declaration issued in October 2008, as amended, which provides us with substantial immunity with respect to the manufacture, administration or use of
TPOXX®. Under the 19C BARDA Contract, the U.S. Government should indemnify us against claims by third parties for death, personal injury and other
damages related to TPOXX®, including reasonable litigation and settlement costs, to the extent that the claim or loss results from specified risks not covered
by insurance or caused by our grossly negligent or criminal behavior. There is no assurance that any future U.S. Government contracts will include a
comparable indemnification provision. In addition, the collection process under the PREP Act can be lengthy and complicated, and there is no guarantee that
we would be able to recover these indemnifiable amounts from the U.S. Government.
 
If we cannot successfully defend ourselves against future claims that our product or product candidates caused injuries and we are not entitled to or
able to obtain indemnity by the U.S. Government with respect to such claims, or if the U.S. Government does not honor its indemnification obligations, we
may incur liabilities, which could be substantial. Regardless of merit or eventual outcome, product liability claims may result in decreased demand for any
product candidate or product that we may develop; withdrawal of a product from the market; costs and management time and focus to defend the related
litigation; substantial monetary awards to trial participants or patients; loss of revenue; harm to our reputation; the inability to commercialize any products that
we may develop. Additionally, a successful product liability claim or series of claims brought against us could cause our stock price to fall, could decrease our
financial resources and materially exhaust our existing insurance or limit our ability to obtain insurance going forward, all of which would materially adversely
affect our business and financial position.
 
We currently have product liability insurance with coverage we believe is adequate to protect against potential product liability claims.  Product
liability insurance is difficult to obtain and increasingly expensive. Should we face claims, we may not be able to maintain insurance coverage at a reasonable
cost and we may not be able to maintain or obtain insurance coverage that will be adequate to satisfy any liability that may arise.
Our activities may involve hazardous materials, use of which may subject us to environmental regulatory liabilities.
 
Our biopharmaceutical research and development sometimes may involve the use of hazardous and radioactive materials and generation of biological
waste. We are subject to federal, state and local laws and regulations governing the use, manufacture, storage, handling and disposal of these materials and
certain waste products, and may have to incur significant costs to comply with current or future environmental laws and regulations. Although we believe that
our CMOs’ safety procedures for handling and disposing of these materials comply with legally prescribed standards, the risk of accidental contamination or
injury from these materials cannot be completely eliminated. In the event of an accident, we could be held liable for damages, and this liability could exceed
our resources. We use through third parties, for example, small amounts of radioactive isotopes commonly used in pharmaceutical research, which are stored,
used and disposed of in accordance with Nuclear Regulatory Commission regulations. Our general liability policy provides coverage up to annual aggregate
limits of $2 million and coverage of $1 million per occurrence.
 
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The loss of key personnel or our ability to recruit or retain qualified personnel could adversely affect our results of operations.
 
We rely upon the ability, expertise, judgment, discretion, integrity and good faith of our senior management team, including our Chief Executive
Officer, Chief Scientific Officer, Chief Financial Officer, and other key employees. Our success is dependent upon our personnel and our ability to recruit,
retain and train high quality employees. We must continue to recruit, retain and motivate management and other employees sufficient to maintain our current
business and support our projected growth. The loss of services of any members of our key management team could have a material adverse effect on our
business.
 
Our business and operations would suffer in the event of a significant computer system failure, cyber-attack or deficiency in our cyber-security.
 
Despite the implementation of security measures, our internal computer systems, and those of third parties on which we rely, we are vulnerable to
damage from computer viruses, malware, natural disasters, terrorism, war, telecommunication and electrical failures, cyber-attacks or cyber-intrusions over the
Internet, phishing attacks, persons inside our organization or persons with access to systems inside our organization. The risk of a security breach or disruption,
particularly through cyber-attacks or cyber-intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the
number, intensity and sophistication of attempted attacks and intrusions from around the world have increased and been targeted at pharmaceutical companies
in particular. Also, increasing use of artificial intelligence may increase the risk of cyber attacks. If such an event were to occur and cause interruptions in our
operations, it could result in a material disruption of our drug development programs. For example, the loss of clinical trial data from completed or ongoing or
planned clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data.
 
Also, our processing of sensitive information may subject us to data privacy and security obligations, and confidential patient and other personal or
sensitive information may be compromised in a cyber-attack or cyber-intrusion. In the United States, federal, state, and local governments have enacted
numerous data privacy and security laws, including data breach notification laws, personal data privacy laws, consumer protection laws and other similar laws
(e.g., wiretapping laws). For example, the Health Insurance Portability and Accountability Act of 1996 imposes specific requirements relating to the privacy,
security and transmission of individually identifiable health information. If we or the third parties on which we rely fail, or are perceived to have failed, to
address or comply with data privacy and security obligations, we could face significant consequences. These consequences may include, but are not limited to,
government enforcement actions, litigation, additional reporting requirements and/or oversight, bans on processing personal data, orders to destroy or not use
personal data and imprisonment of Company officials.
 
To the extent that any disruption or security breach was to result in a loss of or damage to our data or applications, or inappropriate disclosure of
confidential or proprietary information, we could incur material legal claims and liability, damage to our reputation, and the further development of our drug
candidates could be delayed.
We may need additional funding, which may not be available to us, and which may force us to delay, reduce or limit proposed acquisitions or strategic
investments or any of our non-government funded product development programs or commercial efforts.
 
Although we believe our current cash position is strong, we may require additional financing and, while we have raised funds through credit facilities
and the issuance of new equity or the exercise of options or warrants in the past, there is no guarantee that we will continue to be successful in raising such
funds should we need to seek to do so. If we are unable to raise additional funds, we could be forced to discontinue, cease or limit certain strategic transactions
or operations and equity investors could experience significant or total losses of their investments. Our cash flows may fall short of our projections or be
delayed, or our expenses may increase, including as a result of inflation or interest rate increases, which could result in our capital being consumed
significantly faster than anticipated. If we are able to obtain additional financing through the sale of equity or convertible debt securities, such sales may
contain terms, such as liquidation and other preferences that are not favorable to us or our stockholders. If we raise additional funds through collaboration and
licensing arrangements with third parties, it may be necessary to relinquish valuable rights to our technologies or product candidates or grant licenses on terms
that may not be favorable to us. Debt financing arrangements, if available, may require us to pledge certain assets or enter into covenants that could restrict our
business activities or our ability to incur further indebtedness and may be at interest rates and contain other terms that are not favorable to our stockholders.
 
The cash and cash equivalents that we use to meet our cash needs, including working capital and operating expenses, are held in deposit or investment
accounts at four financial institutions. If one or multiple financial institutions fail, our deposit or investment accounts could be adversely affected due to
the loss of or delay in obtaining access to all or a portion of our uninsured funds.
The cash and cash equivalents that we use to meet our cash needs, including working capital and operating expenses, are held in deposit or investment
accounts at four financial institutions. The balance held in these accounts regularly exceeds the Federal Deposit Insurance Corporation (“FDIC”), standard
deposit insurance limit or similar government guarantee schemes, or in the case of investment accounts, is not insured. If one or multiple financial institutions
in which we hold such funds fails or is subject to significant adverse conditions in the financial or credit markets, we could be subject to a risk of loss of all or a
portion of such uninsured funds or be subject to a delay in accessing all or a portion of such uninsured funds. Any such loss or lack of access to these funds
could adversely impact our short-term liquidity and ability to meet our operating expense obligations.
 
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Item 1B. Unresolved Staff Comments
None.
 
Item 1C. Cybersecurity
Risk Management and Strategy
We regularly assess risks from cybersecurity threats; monitor our information systems for potential vulnerabilities; and test those systems pursuant to
our information technology policies, processes, and practices, which are integrated into our overall risk management program. To protect our information
systems from cybersecurity threats, we use various security tools that are designed to help identify, escalate, investigate, resolve, and recover from security
incidents in a timely manner. The Company’s Chief Information Officer is responsible for developing and implementing our information security program and
reporting on cybersecurity matters to the Board. Our Chief Information Officer has over a decade of experience leading cybersecurity oversight, and others on
our IT security team have cybersecurity experience and certifications. We view cybersecurity as a shared responsibility, and we periodically perform
simulations and tabletop exercises at a management level and engage external resources and advisors as needed. All employees are required to complete
cybersecurity trainings each month through online trainings and simulations.
We collaborate with third parties to assess the effectiveness of our cybersecurity prevention and response systems and processes. These include
cybersecurity assessors, consultants, and other external cybersecurity experts to assist in the identification, verification, and validation of cybersecurity risks, as
well as to support associated mitigation plans when necessary. We have also developed a third-party cybersecurity risk management process to conduct due
diligence on external entities, including those that perform cybersecurity services.
To date, risks from cybersecurity threats, including those resulting from any previous cybersecurity incidents, have not materially affected our Company,
including our business strategy, results of operations, or financial condition. We do not believe that cybersecurity threats resulting from any previous
cybersecurity incidents of which we are aware are reasonably likely to materially affect our Company. For more information about the cybersecurity risks we
face, see the risk factor entitled “Our business and operations would suffer in the event of a significant computer system failure, cyber-attack or deficiency in
our cyber-security” in Item 1A. Risk Factors.
Governance
The full Board receives updates periodically or as needed during the year from the Company’s Chief Information Officer and actively participates in
discussions with management and amongst themselves regarding cybersecurity risks. Updates delivered to the full Board typically include discussion of
management’s actions to identify and detect threats, as well as planned actions in the event of a response or recovery situation. These updates also typically
include a review of any recent enhancements to the Company’s defenses and management’s progress on its cybersecurity, as well as reports on key
performance indicators, test results and related remediation, and recent threats and how the Company is managing those threats.
 
Item 2. Properties
Our offices are located in New York, NY, and Corvallis, Oregon. In May 2017, we entered into a new 10-year lease with a related party to let 3,200
square feet in New York, NY to serve as our corporate headquarters. For more information about the lease, see Note 13. Related Party Transactions, to the
consolidated financial statements.
In Corvallis, we lease approximately 10,276 square feet. Until its expiration on December 31, 2017, this facility was leased under an amended lease
agreement signed in January 2007, and most recently changed through an addendum in April 2015. On November 3, 2017 we entered into a new lease for the
same space which was scheduled to expire in December 2019. In the second quarter of 2019, we exercised the first renewal option which was scheduled to
expire in December 2021. In the second quarter of 2021, we exercised the second renewal option, which extended the lease expiration date to December 31,
2024. In the second quarter of 2024, we entered into an additional addendum, which extended the lease expiration date to December 31, 2026. 
Item 3. Legal Proceedings
From time to time, we may be involved in a variety of claims, suits, investigations and proceedings arising from the ordinary course of our business,
collections claims, breach of contract claims, labor and employment claims, tax and other matters. Although such claims, suits, investigations and proceedings
are inherently uncertain and their results cannot be predicted with certainty, we believe that the resolution of such current pending matters, if any, will not have
a material adverse effect on our business, consolidated financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an
adverse impact on us because of legal costs, diversion of management resources and other factors.
 
Item 4. Mine Safety Disclosures
Not applicable.
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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The Company's common stock trades on The Nasdaq Global Market under the symbol "SIGA."
There were 34 holders of record as of February 14, 2025. We believe that the number of beneficial owners of our common stock is substantially
greater than the number of record holders, because a large portion of common stock is held in broker “street names.”
 
On March 12, 2024, the Board declared a special dividend of $0.60 per share on the common stock of the Company. The special dividend was paid on
April 11,  2024 to shareholders of record at the close of business on March 26, 2024. Any future payments of dividends on our common stock will be
determined by our Board and will depend on our business conditions, financial results and other factors our Board deems relevant.
 
The Company did not repurchase any equity securities during the fourth quarter ended December 31, 2024.
 
There were no unregistered sales of equity securities during the fiscal year ended December 31, 2024 that have not been previously disclosed in a
quarterly report on Form 10-Q or a current report on Form 8-K.
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Performance Graph
The following line graph compares the cumulative total stockholder return through December 31, 2024, assuming reinvestment of dividends, by an
investor who invested $100 on December 31, 2019 in each of (i) our common stock; (ii) the Nasdaq Composite; and (iii) the Nasdaq Biotech Composite.
 
2019
   
2020
   
2021
   
2022
   
2023
   
2024
 
SIGA Technologies, Inc.
  $
100    $
152    $
158    $
164    $
135    $
159 
NASDAQ Composite Index
  $
100    $
144    $
174    $
117    $
167    $
215 
NASDAQ Biotech Composite Index
  $
100    $
126    $
125    $
111    $
115    $
114 
Securities Authorized for Issuance Under Equity Compensation Plans
The information required by this item concerning securities authorized for issuance under equity compensation plans is set forth in Item 12, “Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”
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Item 6. [Reserved]
Not applicable.
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
The following discussion should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this report.
Refer to Part II, Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (filed with the SEC on March 12, 2024) for additional
discussion of our financial condition and results of operations for the year ended December 31, 2023,  as well as our financial condition and results of
operations for the year ended December 31, 2023 compared to the year ended December 31, 2022. In addition to historical information, the following
discussion and other parts of this Annual Report contain forward-looking information that involves risks and uncertainties.
Overview
SIGA Technologies, Inc. (“SIGA” or the “Company”) is a  commercial-stage pharmaceutical company. The Company sells its lead product,
TPOXX® (“oral TPOXX®,” also known as "tecovirimat," "Tecovirimat SIGA," or "TEPOXX (tecovirimat)" in certain international markets), to the U.S.
Government and international governments (including government affiliated entities). In certain international markets, the Company may sell TPOXX®
through a distributor. Additionally, the Company sells the intravenous formulation of TPOXX® ("IV TPOXX®") to the U.S. Government.
TPOXX® is an antiviral drug for the treatment of human smallpox disease caused by variola virus. On July 13, 2018, the United States Food & Drug
Administration (“FDA”) approved oral TPOXX® for the treatment of smallpox. The Company has been delivering oral TPOXX® to the U.S. Strategic
National Stockpile ("Strategic Stockpile") since 2013.
On May 18, 2022 the FDA approved IV TPOXX® for the treatment of smallpox. 
 
In addition to being approved by the FDA, oral TPOXX® (tecovirimat) has received regulatory approval from  the  European Medicines
Agency  ("EMA"),  Health Canada, the Medicines and  Healthcare Products Regulatory Agency ("MHRA") of the United Kingdom, and most recently, in
December 2024, the Japanese Pharmaceuticals and Medical Devices Agency ("PMDA"). The EMA, MHRA and PMDA approved oral TPOXX® for the
treatment of smallpox, monkeypox ("mpox"), cowpox, and vaccinia complications following vaccination against smallpox. Health Canada approved TPOXX®
for the treatment of smallpox.
With respect to the regulatory approvals by the EMA, PMDA, MHRA and Health Canada, oral tecovirimat represents the same formulation approved
by the FDA in July 2018 under the brand name TPOXX®.
 
In connection with a potential FDA label expansion of oral TPOXX® for an indication covering smallpox post-exposure prophylaxis (“PEP”), the
Company has completed an immunogenicity trial and an expanded safety trial. The timing of a potential submission of a supplemental New Drug Application
to the FDA (“Supplemental NDA”) for a smallpox PEP indication for oral TPOXX® will be based on the results of ongoing sample analyses from the
immunogenicity trial; the Company is currently targeting a Supplemental NDA submission in the next twelve months.
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Procurement Contracts with the U.S. Government
19C BARDA Contract
 
On September 10, 2018, the Company entered into a contract with the U.S. Biomedical Advanced Research and Development Authority ("BARDA")
pursuant to which SIGA agreed to deliver up to 1,488,000 courses of oral TPOXX® to the Strategic Stockpile, and to manufacture and deliver to the Strategic
Stockpile, or store as vendor-managed inventory, up to 212,000 courses of IV TPOXX®. In October 2023, the contract was modified so that a course of IV
TPOXX® was redefined within the contract from being 14 vials to being 28 vials; as such, the 19C BARDA Contract currently specifies 106,000 courses of IV
TPOXX® (for the same payment amount as originally specified). In addition to the delivery of TPOXX® courses, the contract includes funding from BARDA
for a range of activities, including: advanced development of IV TPOXX®, post-marketing activities for oral and IV TPOXX®, development for a pediatric
formulation, and procurement activities. As of December 31, 2024, the contract with BARDA (as amended, modified, or supplemented from time to time, the
"19C BARDA Contract") contemplates up to approximately $602.5 million of payments, of which approximately $51.7 million of payments are included
within the base period of performance, approximately $519.6 million of payments are related to exercised options and up to approximately $31.2 million of
payments are currently specified as unexercised options. BARDA may choose in its sole discretion when, or whether, to exercise any of the unexercised
options. The period of performance for options is up to ten years from the date of entry into the 19C BARDA Contract and such options could be exercised at
any time during the contract term.
 
The base period of performance specifies potential payments of approximately $51.7 million for the following activities: payments of approximately
$11.1 million for the delivery of approximately 35,700 courses of oral TPOXX® to the Strategic Stockpile; payments of $8.0 million for the manufacture of
10,000 courses (as currently defined within the contract as being 28 vials) of final drug product of IV TPOXX® ("IV FDP"), of which $3.2 million of payments
are related to the manufacture of bulk drug substance ("IV BDS") to be used in the manufacture of IV FDP; payments of approximately $32.0 million to fund
reimbursed activities; and payments of approximately $0.6 million for supportive procurement activities. As of December 31, 2024, the Company had received
$11.1 million for the delivery of approximately 35,700 courses of oral TPOXX® to the Strategic Stockpile, $3.2 million for the manufacture of IV BDS,
$4.8 million for the delivery of IV FDP to the Strategic Stockpile and $25.3 million for other base period activities. IV BDS has been used for the manufacture
of courses of IV FDP. The $3.2 million received for the completed manufacture of IV BDS had been recorded as deferred revenue as of December 31, 2021,
but with the delivery of IV FDP to the Strategic Stockpile during 2022, $2.9 million was recognized as revenue. The remaining $0.3 million of deferred
revenue was recognized in the second quarter of 2024 as the IV FDP containing such IV BDS was delivered to and accepted by the Strategic Stockpile.
The options that have been exercised as of December 31, 2024, provide for payments up to approximately $519.6 million. As of December 31, 2024,
there are exercised options for the following activities: payments up to $450.2 million for the manufacture and delivery of up to 1.5 million courses of oral
TPOXX®; payments up to $51.2 million for the manufacture of courses of IV FDP, of which $20.5 million of payments relate to the manufacture of IV BDS to
be used in the manufacture of IV FDP; payments of up to approximately $3.6 million to fund post-marketing activities for IV TPOXX®; and payments of up to
$14.6 million for funding of post-marketing activities for oral TPOXX®. As of December 31, 2024, a cumulative total of $396.9 million of oral TPOXX® has
been delivered to the Strategic Stockpile and accepted, of which approximately $15 million was delivered in the first quarter of 2024, approximately $8 million
was delivered in the third quarter of 2024, and approximately $51 million was delivered in the fourth quarter of 2024; a cumulative total of $25.4 million of IV
FDP has been delivered to the Strategic Stockpile and accepted, of which approximately $17 million of revenue (including recognition of deferred revenue)
was recorded in the second quarter of 2024 and approximately $8 million of revenue (including recognition of deferred revenue) was recorded in the fourth
quarter of 2024; $10.3 million has been received for the manufacture of IV BDS (such amount is recorded as deferred revenue); and the Company has been
cumulatively reimbursed $9.4 million in connection with post-marketing activities for oral and IV TPOXX®. 
Unexercised options specify potential payments up to approximately $31.2 million in total (if all such options are exercised), of which approximately
$5.6 million relates to supportive activities that we currently do not expect to be required. The remaining unexercised options specify payments of up to $25.6
million for the manufacture of courses of IV FDP, of which up to $10.2 million of payments would be paid upon the manufacture of IV BDS to be used in the
manufacture of IV FDP.
 
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The options related to IV TPOXX® are divided into two primary manufacturing steps. There are options related to the manufacture of bulk drug
substance (“IV BDS Options”), and there are corresponding options (for the same number of IV courses) for the manufacture of final drug product (“IV FDP
Options”). BARDA may choose to exercise any, all, or none of these options in its sole discretion. The 19C BARDA Contract includes: three separate IV BDS
Options, each providing for the bulk drug substance equivalent of 32,000 courses (as currently defined within the contract) of IV TPOXX®; and three separate
IV FDP Options, each providing for 32,000 courses of final drug product of IV TPOXX®. BARDA has the sole discretion as to whether to simultaneously
exercise IV BDS Options and IV FDP Options, or whether to exercise options at different points in time (or alternatively, to only exercise the IV BDS Option
but not the IV FDP Option). To date, BARDA has exercised two of the three IV BDS options and two of the three IV FDP options. If BARDA decides only to
exercise the remaining IV BDS Option, then the Company would receive payments up to $10.2 million; alternatively, if BARDA decides to exercise the
remaining IV BDS Option and IV FDP Option, then the Company would receive payments up to $25.6 million. BARDA may also decide not to exercise either
remaining option. For each set of options relating to a specific group of courses (for instance, the IV BDS and IV FDP options that reference the same
32,000 courses), BARDA has the option to independently purchase IV BDS or IV FDP. The Company estimates that sales of the IV formulation under this
contract (under current terms), assuming the remaining IV FDP Option was exercised, would have a gross margin (sales less cost of sales, as a percentage of
sales) that is less than 40%.     
 
U.S. Department of Defense Procurement Contracts
In 2024, the Company had sales of approximately $10 million with the U.S. Department of Defense ("DoD"). Sales consist mostly of delivery of oral
TPOXX®, with a minor amount of IV TPOXX® delivered.
In 2023, the Company had sales of approximately $11 million with the DoD. Sales consist of delivery of oral TPOXX®. 
Over the past three years, the Company has received three procurement contracts from the DoD, including a $9 million contract in August 2024,
which has been fulfilled. 
International Sales Activity
 
In the year ended December 31, 2024, the Company had international sales of $23.0 million consisting of deliveries of oral TPOXX® to 13 countries.
For international sales in the first and second quarters, Meridian Medical Technologies ("Meridian") was the counterparty to contracts under which the sales
were made (see discussion and definition below regarding International Promotion Agreement). For international sales in the third and fourth quarters, the
Company was the counterparty to the contracts under which the sales were made.  
 
In the year ended December 31, 2023, the Company had international sales of $21.3  million consisting of deliveries of oral  TPOXX® to
seven countries.
 
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International Promotion Agreement
Under the terms of the current International Promotion Agreement, which was amended on March 27, 2024, and effective June 1, 2024, and further
amended on August 30, 2024, the Company has primary responsibility for the advertising, promotion and sale of oral TPOXX® in all geographic regions.
Meridian has limited, non-exclusive rights to advertise, promote, offer for sale and sell oral TPOXX® in the European Economic Area, Australia, Japan,
Switzerland, the United Kingdom and the Association of Southeast Asian Nations and its member states (collectively, the “Current Territory”). Meridian also
performs non-promotional activities under specified contracts with third parties entered into prior to June 1, 2024, that provide for the sale of oral TPOXX® in
the Current Territory. The International Promotion Agreement entitles Meridian to receive a fee equal to a high single digit percentage of collected proceeds
(whether collected by Meridian or the Company), net of certain expenses, of sales of oral TPOXX® in the Current Territory in the field of use specified in the
International Promotion Agreement. The International Promotion Agreement has a fixed term that expires on May 31, 2026, with no automatic renewal.
Under the terms of the original International Promotion Agreement ("Pre-amendment International Promotion Agreement"), which had an initial term
that expired on May 31, 2024, Meridian had been granted exclusive rights to market, advertise, promote, offer for sale, or sell oral TPOXX® in a field of use
specified in the International Promotion Agreement in all geographic regions except for the United States  (the “Territory”), and Meridian  agreed not to
commercialize any competing product, as defined in the Pre-amendment International Promotion Agreement, in the specified field of use in the Territory.
Under the Pre-amendment International Promotion Agreement, as well as the current International Promotion Agreement, SIGA has always retained ownership,
intellectual property, distribution and supply rights and regulatory responsibilities in connection with TPOXX®, and, in the United States market, also
retained  sales and marketing rights with respect to oral TPOXX®. SIGA’s consent is required prior to the entry by Meridian into any sales arrangement
pursuant to the International Promotion Agreement.
 
Sales to international customers pursuant to the Pre-amendment International Promotion Agreement were invoiced and collected by Meridian, and
such collections were remitted, less Meridian's fees, to the Company under a quarterly process specified in the Pre-amendment International Promotion
Agreement; and Meridian was entitled to a specified percentage of the collected proceeds of sales of oral TPOXX®, net of certain expenses, for calendar years
in which customer collected amounts net of such expenses were less than or equal to a specified threshold, and to a higher specified percentage of such
collected net proceeds for calendar years in which such net collected amounts exceeded the specified threshold. Subsequent to June 1, 2024, only specified
procurement contracts for the Current Territory entered into prior to June 1, 2024, continue to involve Meridian invoicing and collecting proceeds, and
retaining a fee pursuant to the International Promotion Agreement. 
 
Mpox
 
In connection with the 2022 response to a global mpox outbreak, a series of observational and randomized, placebo-controlled clinical trials were
initiated to assess the safety and efficacy of TPOXX® in participants with mpox. The purpose of these randomized clinical trials is to seek to collect data on the
potential benefits of using TPOXX® as an antiviral treatment for active mpox disease. As of December 31, 2024, two of the randomized, placebo-controlled
clinical trials reported preliminary topline results: a randomized, placebo-controlled clinical trial in the Democratic Republic of the Congo ("DRC") known as
PALM 007 (Tecovirimat for Treatment of Monkeypox Virus - NCT05559099), which is funded and sponsored by the National Institutes of Health's (NIH)
National Institute of Allergy and Infectious Diseases (NIAID); and the Study of Tecovirimat for Human Mpox Virus (STOMP) clinical trial (NCT05534984),
which is a randomized, placebo-controlled, double-blind study sponsored and funded by NIAID to evaluate the safety and efficacy of tecovirimat for the
treatment of people with laboratory-confirmed or presumptive mpox disease that included enrollees from Argentina, Brazil, Japan, Mexico, Peru, Thailand, and
the United States. The PALM 007 study did not meet its primary endpoint of a statistically significant improvement in time to lesion resolution within 28 days
post-randomization for patients in the DRC with mpox who received TPOXX® compared to patients who received placebo. Some improvement versus placebo
was observed in patients receiving TPOXX® whose symptoms began seven days or fewer before randomization and patients with severe or grave disease,
defined by the World Health Organization (WHO) as having 100 or more skin lesions, however the significance of these data have not been established. An
interim analysis of data from the STOMP study showed that TPOXX® did not demonstrate efficacy in time to skin and mucosal lesion resolution compared to
placebo in patients with mild to moderate clade II mpox. Based on this result and additional analyses, the study Data Safety and Monitoring Board (DSMB)
recommended to stop enrolling patients in the randomized arms of the study. NIAID accepted this recommendation and subsequently decided to take a similar
action in the open label arm of this study, which included severe and at-risk of developing severe disease patients. Data analysis is not yet complete for primary
endpoint subgroups and detailed secondary and exploratory endpoints. In both studies, TPOXX® exhibited a safety profile comparable to placebo. These safety
results are consistent with prior studies and further support the strong safety profile that has been observed with tecovirimat over the past 15 years.
 
Three randomized clinical trials, UNITY (Switzerland, Brazil, Argentina), Platinum-CAN (Canada), and EPOXI (EU), are enrolling mpox
patients. Given the STOMP and PALM007 results and the design similarities across these mpox trials, the Company believes these ongoing trials are likely to
yield similar results.
 
Research Agreements and Grants
In July 2019, the Company was awarded a multi-year research contract ultimately valued at approximately $27 million from the DoD to support work
in pursuit of a potential label expansion for oral TPOXX® that would include post-exposure prophylaxis ("PEP") of smallpox (such work known as the "PEP
Label Expansion Program" and the contract referred to as the "PEP Label Expansion R&D Contract"). As of December 31, 2023, the Company invoiced the
full amount of available funding, and as a result, there is no remaining revenue to be recognized in the future under the PEP Label Expansion R&D Contract.
Revenue from the performance obligation under the PEP Label Expansion R&D Contract was recognized over time using an input method using costs incurred
to date relative to total estimated costs at completion.
Contracts and grants include, among other things, options that may or may not be exercised at the U.S. Government’s discretion. Moreover, contracts
and grants contain customary terms and conditions including the U.S. Government’s right to terminate or restructure a contract or grant for convenience at any
time. As such, the Company may not be eligible to receive all available funds.
 
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Critical Accounting Estimate
The methods, estimates and judgments we use in applying our accounting policies have a significant impact on the results we report in our
consolidated financial statements, which we discuss under the heading “Results of Operations” following this section of our Management’s Discussion and
Analysis of Financial Condition and Results of Operations. Some of our accounting policies require us to make difficult and subjective judgments, often as a
result of the need to make estimates of matters that are inherently uncertain. Our most critical accounting estimate is revenue recognition over time.
Revenue Recognition
We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The unit of account in ASC 606 is
a performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the
performance obligation is satisfied. Our performance obligations are satisfied over time as work progresses or at a point in time. Revenue connected with
performance obligations related to product delivery and supportive services are recognized at a point in time. Revenue connected with performance obligations
related to research and development are recognized over time.
Due to the nature of the work required to be performed on many of our performance obligations for which revenue is recognized over time, the
estimation of total revenue and costs to satisfy the obligations may be complex, subject to many variables and requires significant judgment. The consideration
associated with these types of performance obligations is considered variable. We estimate variable consideration as the most likely amount to which we expect
to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will
not occur and when any uncertainty associated with variable consideration is resolved. Our estimates of variable consideration and determination of whether to
include estimated amounts in the transaction price are based largely on an assessment of our historical and anticipated performance, external factors, trends and
all other information (historical, current and forecasted) that is reasonably available to us.
Contracts are often modified to account for additional services to be performed. We consider contract modifications to exist when the modification
either creates new enforceable rights and obligations, or changes existing enforceable rights and obligations. If the effect of a contract modification on the
transaction price changes our measure of progress for the performance obligation to which it relates, the impact will be recognized in the period of modification
as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.
We have a process in which management reviews the progress and execution of our performance obligations. As part of this process, management
reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule,
identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about
the ability and cost to achieve the schedule, technical requirements and other contract requirements. Management must make assumptions and estimates
regarding labor productivity, the complexity of the work to be performed, customer behavior and execution by our subcontractors, among other variables.
Based on this analysis, any quarterly adjustments to revenues, research and development expenses and cost of sales and supportive services are
recognized as necessary in the period they become known. Changes in estimates of revenues, research and development expenses and cost of sales and
supportive services are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on
current and prior periods based on a performance obligation’s percentage of completion. A significant change in one or more of these estimates could affect the
profitability of one or more of our performance obligations.
Recently Issued Accounting Pronouncements 
For discussion regarding the impact of accounting standards that were recently issued but are not yet effective, on our consolidated financial
statements, see Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements.     
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Results of Operations for the Years ended December 31, 2024 and 2023
Revenues from product sales and supportive services for the years ended December 31, 2024 and 2023 were $133.3 million and $130.7 million,
respectively. Such revenues for the year ended December 31, 2024 include $73.9 million of oral TPOXX® sales and $26.2 million of IV TPOXX® sales to the
U.S. Government under the 19C BARDA Contract; $23.0 million related to international sales of oral TPOXX®; and approximately $10.1 million of oral
TPOXX® sales to the DoD. Such revenues for the year ended December 31, 2023 include $97.9 million of oral TPOXX® sales to the U.S. Government under
the 19C BARDA Contract; $21.3 million related to international sales of oral TPOXX®; and approximately $10.7 million of oral TPOXX® sales to the DoD.
 
Revenues from research and development activities for the years ended December 31, 2024 and 2023, were  $5.4 million and  $9.2 million,
respectively. The revenues for the year ended December 31, 2024, were mostly earned in connection with performance of research and development activities
under the 19C BARDA Contract. The revenue for the year ended December 31, 2023, were mostly earned in connection with performance of research and
development activities under the PEP Label Expansion R&D Contract and the 19C BARDA Contract. The decrease of $3.8 million of revenue is related to the
completion of billable activities under the PEP Label Expansion R&D Contract in 2023.
Cost of sales and supportive services for the years ended December 31, 2024 and 2023 were $31.3 million and $17.8 million, respectively. Such costs
in 2024  were primarily associated with the manufacture and delivery of oral TPOXX® courses to the U.S. Government, DoD and various international
customers as well as  the manufacture and delivery of IV TPOXX® courses to the U.S. Government. Such costs in 2023  were  associated with  the
manufacturing and delivery of oral TPOXX® to the U.S. Government as well as various international countries. The difference in costs between years is
primarily due to the inclusion of IV TPOXX® in 2024 sales; manufacturing costs for IV TPOXX® are significantly higher than manufacturing costs for oral
TPOXX®.
Selling, general and administrative expenses for the years ended December 31, 2024 and 2023 were $25.1 million and $22.0 million, respectively. The
increase of $3.1 million reflects higher compensation expense, including stock-based compensation, associated with the hiring of multiple executive officers in
2024.
Research and development expenses were  $12.3 million for the year ended December 31, 2024, a decrease of approximately $4.1  million from
the $16.4 million incurred during the year ended December 31, 2023. The decrease is primarily attributable to lower direct vendor-related expenses incurred in
connection with a decrease in activities under the PEP Label Expansion R&D Contract, partially offset by an increase in compensation expense in connection
with new hires. 
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Other income, net for the years ended December 31, 2024 and 2023 was $6.1 million and $4.2 million, respectively. The increase relates to interest
income earned on cash and cash equivalents as the average cash balance during the year ended December 31, 2024 was higher than in 2023. Additionally, the
average investment return rates in the year ended December 31, 2024 were higher than those in 2023.
 
For the year ended December 31, 2024, we recognized a tax provision of $16.9 million on pre-tax income of $76.1 million. Our effective tax rate for
the year ended December 31, 2024 was 22.2% and differs from the statutory rate of 21% primarily as a result of non-deductible executive compensation under
IRC Section 162(m), shortfalls on stock-based compensation, and state and local taxes.
For the year ended December 31, 2023, we recognized a tax provision of $19.7 million on pre-tax income of $87.8 million. Our effective tax rate for
the year ended December 31, 2023 was 22.5% and differs from the statutory rate of 21% primarily as a result of non-deductible executive compensation under
IRC Section 162(m), and state and local taxes.
Liquidity and Capital Resources
As of December 31, 2024, we had $155.4 million in cash and cash equivalents, compared with $150.1 million at December 31, 2023. We believe that
our liquidity and capital resources will be sufficient to meet our anticipated requirements for at least the next twelve months from the issuance of these financial
statements.
 
Operating Activities
We prepare our consolidated statement of cash flows using the indirect method. Under this method, we reconcile net income to cash flows from
operating activities by adjusting net income for those items that impact net income but may not result in actual cash receipts or payments during the period.
These reconciling items include but are not limited to stock-based compensation, deferred income taxes and changes in the fair value of our warrant liability;
gains and losses from various transactions and changes in the consolidated balance sheet for working capital from the beginning to the end of the period.
Net cash provided by operations for the years ended December 31, 2024 and 2023 was $48.8 million and $94.8 million, respectively.  For the year
ended December 31, 2024, net cash increase from operations is due to the receipt of approximately $122.5 million from sales of oral and IV TPOXX® to the
U.S. Government and international customers, of which approximately $102 million relates to 2024 sales and the remainder to collection of accounts receivable
on the December 31, 2023 balance sheet, partially offset by the payment of approximately $30 million of income taxes as well as the use of cash for customary
operating activities. For the year ended December 31, 2023, the receipt of substantially all of the $45 million of accounts receivable as of December 31, 2022,
the receipt of approximately $111 million of 2023 product sales of oral TPOXX®, as well as approximately $10 million received in connection with IV BDS
deferred revenue was partially offset by the use of cash to proactively build inventory, and for operating activities.
 
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On December 31, 2024 and 2023, our accounts receivable balance was approximately $21.2 million (which includes approximately $0.5 million of
unbilled receivables) and $21.1 million, respectively. Our accounts receivable balance as of December 31, 2024 primarily reflects sales of oral TPOXX® to
various international countries and the DoD, of which approximately $20.1 million was received by the Company through the end of February 2025. The
remaining amounts of the receivable balance are expected to be collected during the first or second quarter of 2025. Our accounts receivable balance as
of December 31, 2023 primarily reflected sales of oral TPOXX® to the U.S. Government under the 19C BARDA Contract as well as various international
countries, of which approximately $11.2 million was received by the Company through the end of February 2024. The remaining amounts of the receivable
balance were collected during the second quarter of 2024.
Investing Activities
We used $42,450 and $21,686 for capital expenditures for the years ended December 31, 2024 and 2023, respectively.
Financing Activities
Cash used in financing activities for the years ended December 31, 2024 and 2023 was $43.5 million and $43.4 million, respectively. For the year
ended December 31, 2024, we paid a special dividend of approximately $42.7 million as well as approximately $0.8 million associated with the payment of tax
obligations for employee common stock tendered. For the year ended December 31, 2023, we paid a special dividend of approximately $32.1 million. In
addition, we purchased approximately 1.7 million shares of common stock for approximately $11.0 million. 
 
Future Cash Requirements
As of December 31, 2024, we have outstanding purchase orders associated with manufacturing obligations in the aggregate amount of approximately
$2.4 million.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Our investment portfolio includes cash and cash equivalents. Our main investment objective is the preservation of investment capital. We believe that
our investment policy is conservative, both in the duration of our investments and the credit quality of the investments we hold. We do not utilize derivative
financial instruments, derivative commodity instruments or other market risk sensitive instruments, positions or transactions to manage exposure to interest rate
changes. As such, we believe that the securities we hold are subject to market risk, changes in the financial standing of the issuer of such securities and our
interest income is sensitive to changes in the general level of U.S. interest rates. 
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Item 8. Financial Statements and Supplementary Data
Index to the Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
42
 
Consolidated Balance Sheets
44
 
Consolidated Statements of Operations and Comprehensive Income
45
 
Consolidated Statements of Changes in Stockholders’ Equity
46
 
Consolidated Statements of Cash Flows
47
 
Notes to Consolidated Financial Statements
48
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Report of Independent Registered Public Accounting Firm 
 
 
To the Board of Directors and Stockholders of SIGA Technologies, Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of SIGA Technologies, Inc. and its subsidiaries (the "Company") as of December 31, 2024 and
2023, and the related consolidated statements of operations and comprehensive income, of changes in stockholders’ equity and of cash flows for each of the
three years in the period ended December 31, 2024, including the related notes (collectively referred to as the "consolidated financial statements"). We also
have audited the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
 
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of
December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in
conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework
(2013) issued by the COSO.
Basis for Opinions
 
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and
for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial
Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's
internal control over financial reporting 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 consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal
control over financial reporting was maintained in all material respects.
 
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control
over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other
procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s 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. A company’s internal control over
financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
Critical Audit Matters
 
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated
or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements
and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matter or on the accounts or disclosures to which it relates.
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Revenue Recognition
 
As described in Note 2 to the consolidated financial statements, the Company’s revenue was $138.7 million for the year ended December 31, 2024. The
Company’s performance obligations are satisfied at a point in time or over time as work progresses. As disclosed by management, revenue connected with
performance obligations related to product delivery and supportive services are recognized at a point in time. The Company’s revenue related to current
research and development performance obligations is recognized over time, because the customer simultaneously receives and consumes the benefits provided
by the services as the Company performs these services. Management recognizes revenue related to these services based on the progress toward complete
satisfaction of the performance obligation and measures this progress under an input method, which is based on the Company’s cost incurred relative to total
estimated costs.
 
The principal consideration for our determination that performing procedures relating to revenue recognition is a critical audit matter is a high degree of auditor
effort in performing procedures related to the Company’s revenue recognition.
 
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated
financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the
recording of revenue at the transaction price once the performance obligations are satisfied. These procedures also included, among others (i) testing the
completeness, accuracy and occurrence of product sales and supportive services revenue recognized for a sample of revenue transactions by obtaining and
inspecting source documents, such as contracts, invoices, shipping and delivery documents and subsequent cash receipts; (ii) for research and development
revenue, testing management’s process for determining the estimated costs to completely satisfy each performance obligation for a sample of contracts by (a)
comparing the underlying cost estimates to approved contracts or modifications; (b) comparing the underlying transaction price to original contracts or
modifications; and (c) testing actual costs incurred and their eligibility for billing under the respective contracts; and (iii) confirming a sample of outstanding
customer invoice balances as of December 31, 2024.
/s/ PricewaterhouseCoopers LLP
Florham Park, New Jersey
March 11, 2025
We have served as the Company’s auditor since 1997.
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SIGA TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
As of
  December 31, 2024    December 31, 2023 
ASSETS
     
       
 
Current assets
     
       
 
Cash and cash equivalents
  $
155,400,262    $
150,145,844 
Accounts receivable
   
21,166,129     
21,130,951 
Inventory
   
49,563,880     
64,218,337 
Prepaid expenses and other current assets
   
4,914,613     
3,496,028 
Total current assets
   
231,044,884     
238,991,160 
     
       
 
Property, plant and equipment, net
   
1,298,423     
1,331,708 
Deferred tax asset, net
   
10,854,702     
11,048,118 
Goodwill
   
898,334     
898,334 
Other assets
   
240,683     
2,083,535 
Total assets
  $
244,337,026    $
254,352,855 
LIABILITIES AND STOCKHOLDERS' EQUITY
     
       
 
Current liabilities
     
       
 
Accounts payable
  $
1,340,337    $
1,456,316 
Accrued expenses and other current liabilities
   
5,640,110     
10,181,810 
Deferred IV TPOXX® revenue
   
10,330,800     
20,788,720 
Income tax payable
   
8,020,366     
21,690,899 
Total current liabilities
   
25,331,613     
54,117,745 
Other liabilities
   
3,200,650     
3,376,203 
Total liabilities
   
28,532,263     
57,493,948 
Commitments and contingencies (Note 12)
      
        
 
Stockholders' equity
     
       
 
Common stock ($.0001 par value, 600,000,000 shares authorized, 71,404,669 and 71,091,616 issued and
outstanding at December 31, 2024 and December 31, 2023, respectively)
   
7,140     
7,109 
Additional paid-in capital
   
238,635,635     
235,795,420 
Accumulated deficit
   
(22,838,012)    
(38,943,622)
Total stockholders' equity
   
215,804,763     
196,858,907 
Total liabilities and stockholders' equity
  $
244,337,026    $
254,352,855 
The accompanying notes are an integral part of these financial statements.
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SIGA TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the Years Ended December 31
 
2024
   
2023
   
2022
 
Revenues
     
       
       
 
Product sales and supportive services
  $
133,330,181    $
130,668,209    $
86,661,583 
Research and development
   
5,389,169     
9,249,011     
24,114,027 
Total revenues
   
138,719,350     
139,917,220     
110,775,610 
     
       
       
 
Operating expenses
     
       
       
 
Cost of sales and supportive services
   
31,289,229     
17,825,090     
10,432,561 
Selling, general and administrative
   
25,136,050     
22,043,023     
35,117,241 
Research and development
   
12,310,797     
16,427,942     
22,525,642 
Total operating expenses
   
68,736,076     
56,296,055     
68,075,444 
Operating income
   
69,983,274     
83,621,165     
42,700,166 
Gain from change in fair value of warrant liability
   
—     
—     
400,663 
Other income, net
   
6,087,116     
4,155,508     
1,031,903 
Income before income taxes
   
76,070,390     
87,776,673     
44,132,732 
Provision for income taxes
   
(16,856,174)    
(19,707,847)    
(10,227,926)
Net and comprehensive income
  $
59,214,216    $
68,068,826    $
33,904,806 
Basic earnings per share
  $
0.83    $
0.95    $
0.46 
Diluted earnings per share
  $
0.82    $
0.95    $
0.46 
Weighted average shares outstanding: basic
   
71,253,172     
71,362,209     
72,929,550 
Weighted average shares outstanding: diluted
   
71,905,712     
71,679,270     
73,546,501 
The accompanying notes are an integral part of these financial statements.
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SIGA TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
For the Years Ended December 31, 2024, 2023 and 2022
   
 
     
 
     
 
     
 
   
Accumulated      
 
 
   
 
     
 
   
Additional      
 
   
Other
   
Total
 
 
Common Stock
   
Paid-In
    Accumulated    Comprehensive    Stockholders’ 
 
Shares
   
Amount
   
Capital
   
Deficit
    Income (Loss)    
Equity
 
Balances, December 31, 2021
   
73,543,602    $
7,354    $ 226,070,308    $ (51,763,255)   $
—    $ 174,314,407 
Net income
   
—     
—     
—     
33,904,806     
—     
33,904,806 
Repurchase of common stock
   
(1,823,738)    
(182)    
—      (13,006,149)    
—     
(13,006,331)
Issuance of common stock upon vesting of RSUs
   
132,396     
13     
(13)    
—     
—     
— 
Issuance of common stock upon exercise of
warrants
   
824,903     
83     
6,120,695     
—     
—     
6,120,778 
Payment of common stock tendered for employee
stock-based compensation tax obligations
   
(1,973)    
—     
(12,533)    
—     
—     
(12,533)
Cash dividend ($0.45 per share)
   
—     
—     
—      (32,940,395)    
—     
(32,940,395)
Stock-based compensation
   
—     
—     
1,779,310     
—     
—     
1,779,310 
Balances, December 31, 2022
   
72,675,190    $
7,268    $ 233,957,767    $ (63,804,993)   $
—    $ 170,160,042 
Net income
   
—     
—     
—     
68,068,826     
—     
68,068,826 
Issuance of common stock upon exercise of stock
options
   
8,672     
—     
—     
—     
—     
— 
Repurchase of common stock (including excise tax)    
(1,736,822)    
(174)    
—      (11,072,337)    
—     
(11,072,511)
Issuance of common stock upon vesting of RSUs
   
144,576     
15     
(15)    
—     
—     
— 
Payment of common stock tendered for employee
stock-based compensation tax obligations
   
—     
—     
(214,794)    
—     
—     
(214,794)
Cash dividend ($0.45 per share)
   
—     
—     
—      (32,135,118)    
—     
(32,135,118)
Stock-based compensation
   
—     
—     
2,052,462     
—     
—     
2,052,462 
Balances, December 31, 2023
   
71,091,616    $
7,109    $ 235,795,420    $ (38,943,622)   $
—    $ 196,858,907 
Net income
   
—     
—     
—     
59,214,216     
—     
59,214,216 
Issuance of common stock
   
49,940     
5     
(5)    
—     
—     
— 
Payment of common stock tendered for employee
stock-based compensation tax obligations
   
(106,029)    
(11)    
(799,884)    
—     
—     
(799,895)
Issuance of common stock upon vesting of RSUs
   
369,142     
37     
(37)    
—     
—     
— 
Cash dividend ($0.60 per share)
   
—     
—     
—      (43,108,606)    
—     
(43,108,606)
Stock-based compensation
   
—     
—     
3,640,141     
—     
—     
3,640,141 
Balances, December 31, 2024
   
71,404,669    $
7,140    $ 238,635,635    $ (22,838,012)   $
—    $ 215,804,763 
The accompanying notes are an integral part of these financial statements.
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SIGA TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31
 
2024
   
2023
   
2022
 
Cash flows from operating activities:
     
       
       
 
Net income
  $
59,214,216    $
68,068,826    $
33,904,806 
Adjustments to reconcile net income to net cash provided by operating activities:
     
       
       
 
Depreciation and other amortization
   
538,421     
538,293     
517,643 
Gain on change in fair value of warrant liability
   
—     
—     
(400,663)
Stock-based compensation
   
3,640,141     
2,052,462     
1,779,310 
Write down of inventory, net
   
327,373     
579,239     
201,472 
Deferred income taxes provision (benefit)
   
193,416     
(4,797,733)    
(3,827,778)
Deferred IV TPOXX® revenue
   
(10,457,920)    
10,240,000     
7,348,720 
Changes in assets and liabilities:
     
       
       
 
Accounts receivable
   
(35,178)    
24,276,009     
38,243,490 
Inventory
   
15,342,653     
(25,524,485)    
(19,964,183)
Prepaid expenses and other assets
   
(591,303)    
(3,011,346)    
171,811 
Accounts payable, accrued expenses and other liabilities
   
(5,739,479)    
1,996,838     
1,533,804 
Income tax payable
   
(13,670,533)    
20,381,228     
(17,897,370)
Net cash provided by operating activities
   
48,761,807     
94,799,331     
41,611,062 
Cash flows from investing activities:
     
       
       
 
Capital expenditures
   
(42,450)    
(21,686)    
— 
Cash used in investing activities
   
(42,450)    
(21,686)    
— 
Cash flows from financing activities:
     
       
       
 
Payment of employee tax obligations for common stock tendered
   
(799,895)    
(214,794)    
(12,533)
Repurchase of common stock
   
—     
(11,072,511)    
(13,006,331)
Payment of dividend
   
(42,665,044)    
(32,135,118)    
(32,940,395)
Cash used in financing activities
   
(43,464,939)    
(43,422,423)    
(45,959,259)
Net increase/(decrease) in cash and cash equivalents
   
5,254,418     
51,355,222     
(4,348,197)
Cash and cash equivalents at the beginning of period
   
150,145,844     
98,790,622     
103,138,819 
Cash and cash equivalents at end of period
  $
155,400,262    $
150,145,844    $
98,790,622 
     
       
       
 
Supplemental disclosure of cash flows information:
     
       
       
 
Non-cash lease right-of-use asset and associated liability
  $
462,686    $
—    $
— 
Conversion of warrant to common stock
  $
—    $
—    $
6,120,778 
Issuance of common stock
  $
417,000    $
—    $
— 
Issuance of common stock upon cashless exercise
  $
—    $
87,540    $
— 
Cash income taxes paid, net
  $
30,357,747    $
3,500,873    $
31,372,881 
The accompanying notes are an integral part of these financial statements
47

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SIGA TECHNOLOGIES, INC.
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Basis of Presentation
Description of Business
SIGA Technologies, Inc. (“SIGA” or the “Company”) is a commercial-stage pharmaceutical company. The Company sells its lead product, TPOXX® (“oral
TPOXX®,” also known as "tecovirimat," "Tecovirimat SIGA," or "TEPOXX (tecovirimat)" in certain international markets), to the U.S. Government and
international governments (including government affiliated entities). In certain international markets, the Company may sell TPOXX® through a distributor.
Additionally, the Company sells the intravenous formulation of TPOXX® ("IV TPOXX®") to the U.S. Government.
TPOXX® is an  antiviral drug for the treatment of human smallpox disease caused by variola virus. On July 13, 2018, the United States Food & Drug
Administration (“FDA”) approved the oral formulation of TPOXX® for the treatment of smallpox. The Company has been delivering oral TPOXX® to the
U.S. Strategic National Stockpile ("Strategic Stockpile") since 2013.
On May 18, 2022 the FDA approved IV TPOXX® for the treatment of smallpox. 
 
In addition to being approved by the FDA, oral TPOXX® (tecovirimat) has received regulatory approval from  the  European Medicines
Agency  ("EMA"),  Health Canada, the Medicines and  Healthcare Products Regulatory Agency ("MHRA") of the United Kingdom, and most recently, in
December 2024, the Japanese Pharmaceuticals and Medical Devices Agency ("PMDA"). The EMA, MHRA and PMDA approved oral TPOXX® for the
treatment of smallpox, monkeypox ("mpox"), cowpox, and vaccinia complications following vaccination against smallpox. Health Canada approved TPOXX®
for the treatment of smallpox.
With respect to the regulatory approvals by the EMA, PMDA, MHRA and Health Canada, oral tecovirimat represents the same formulation approved by the
FDA in  July 2018 under the brand name TPOXX®.
2. Summary of Significant Accounting Policies
Use of Estimates
Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements and revenues and expenses during the periods reported. The most significant estimates are the variables used in
the calculation of reported amounts of revenue recognized over time. Estimates and assumptions are reviewed periodically and the effects of revisions are
reflected in the financial statements in the period they are determined to be necessary. Actual results could differ from these estimates.
Basis of Presentation and Consolidation
The accompanying consolidated financial statements include the accounts of SIGA Technologies, Inc. and its wholly owned subsidiaries. All inter-company
accounts and transactions have been eliminated in consolidation. The consolidated financial statements and related disclosures are presented in accordance with
generally accepted accounting principles in the United States of America (“US GAAP”) and reflect the consolidated financial position, results of operations and
cash flows for all periods presented.
Reclassifications
Certain reclassifications have been made to prior year amounts to conform to the current year's presentation.
Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.
Concentration of Credit Risk
The Company has cash in bank accounts that exceeds the Federal Deposit Insurance Corporation insured limits. The Company has not experienced any losses
on its cash accounts and no allowance has been provided for potential credit losses because management believes the potential for losses is remote.
Collection of certain receivables from international government sales are coordinated through the International Promotion Agreement with Meridian Medical
Technologies ("Meridian") (see Note 3), under which Meridian invoices and collects payments from international customers and remits such collections, less
Meridian's fees, to the Company under a quarterly process specified in the International Promotion Agreement. 
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Accounts Receivable
Accounts receivable are recorded net of provisions for doubtful accounts. At December 31, 2024 and 2023, 45% and 53%, respectively, of accounts receivable
represent receivables from the U.S. Government. At December 31, 2024, most of the remaining balance in accounts receivable represent receivables from
international sales, which include sales to two European governments and a government in the Asia Pacific region. An allowance for doubtful accounts is based
on specific analysis of the receivables. At December 31, 2024 and 2023, the Company had no allowance for doubtful accounts.
Inventory
Inventory is stated at the lower of cost or net realizable value. The cost is determined using the first-in, first-out (FIFO) method. The Company capitalizes
inventory costs associated with the Company’s products when, based on management’s judgment, future commercialization is considered probable and the
future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory is evaluated for impairment
periodically to identify inventory that may expire prior to expected sale or has a cost basis in excess of its net realizable value. If certain batches or units of
product do not meet quality specifications or become obsolete due to expiration, the Company records a charge to write down such unmarketable inventory to
its net realizable value.
Property, Plant and Equipment
Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation and amortization are provided on a straight-line method over the
estimated useful lives of the various asset classes. The estimated useful lives are as follows: five years for laboratory equipment; three years for computer
equipment; and seven years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the
lease term. Maintenance, repairs and minor replacements are charged to expense as incurred.
Warrant Liability
The Company accounted for warrants in accordance with the authoritative guidance which requires that free-standing derivative financial instruments with
certain cash settlement features be classified as assets or liabilities at the time of the transaction, and recorded at their fair value. Fair value was estimated using
model-derived valuations. Any changes in the fair value of the derivative instruments were reported in earnings or loss as long as the derivative contracts were
classified as assets or liabilities. During 2022, the warrant was fully exercised and therefore there were no remaining underlying shares as of December 31,
2022.
The following table presents changes in the liability-classified warrant:
 
Fair Value of liability-
classified warrant
 
Warrant liability at December 31, 2021
  $
6,521,441 
Decrease in fair value of warrant liability
   
(400,663)
Exercise of warrants
   
(6,120,778)
Warrant liability at December 31, 2022
  $
— 
Revenue Recognition
The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”).
Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of
account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance
obligation is satisfied. As of December 31, 2024, the Company's active performance obligations, for the contracts outlined in Note 3, consist of the following:
four performance obligations relate to research and development services; and four relate to manufacture and delivery of product.
Contract modifications may occur during the course of performance of our contracts. Contracts are often modified to account for changes in contract
specifications or requirements. In most instances, contract modifications are for services that are not distinct, and, therefore, are accounted for as part of the
existing contract.
The Company’s performance obligations are satisfied over time as work progresses or at a point in time. A portion of the Company’s revenue is derived from
long-term contracts that span multiple years. All of the Company’s revenue related to current research and development performance obligations is recognized
over time, because the customer simultaneously receives and consumes the benefits provided by the services as the Company performs these services. The
Company recognizes revenue related to these services based on the progress toward complete satisfaction of the performance obligation and measures this
progress under an input method, which is based on the Company’s cost incurred relative to total estimated costs. Under this method, progress is measured
based on the cost of resources consumed (i.e., cost of third-party services performed, cost of direct labor hours incurred, and cost of materials consumed)
compared to the total estimated costs to completely satisfy the performance obligation. Incurred costs represent work performed, which corresponds with, and
thereby best depicts, the transfer of control to the customer. The incurred and estimated costs used in the measure of progress include third-party services
performed, direct labor hours, and material consumed. The Company accounts for shipping and handling activities as fulfillment costs rather than as an
additional promised service.
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Contract Estimates. Accounting for long-term contracts and grants involves the use of various techniques to estimate total contract revenue and
costs.
Contract estimates are based on various assumptions to project the outcome of future events that often span multiple years. These assumptions include: labor
productivity; the complexity of the work to be performed; external factors such as customer behavior and potential regulatory outcomes; and the performance
of subcontractors, among other variables.
The nature of the work required to be performed on many of the Company’s performance obligations and the estimation of total revenue and cost at completion
may be complex, subject to many variables and require significant judgment. The consideration associated with research and development services is variable
as the total amount of services to be performed has not been finalized. The Company estimates variable consideration as the most likely amount to which it
expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative
revenue recognized will not occur and when any uncertainty associated with variable consideration is resolved. The Company’s estimates of variable
consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our historical and
anticipated performance, external factors, trends and all other information (historical, current and forecasted) that is reasonably available to us.
A significant change in one or more of these estimates could affect the profitability of the Company’s contracts. As such, the Company reviews and updates its
contract-related estimates regularly. The Company recognizes adjustments in estimated revenues, research and development expenses and cost of sales and
supportive services under the cumulative catch-up method. Under this method, the impact of the adjustment on revenues, research and development expenses
and cost of sales and supportive services recorded to date on a contract is recognized in the period the adjustment is identified.
Contract Balances. The timing of revenue recognition, billings and cash collections may result in billed accounts receivable, unbilled receivables
(contract assets) and customer advances and deposits (contract liabilities) in the consolidated balance sheets. Generally, amounts are billed as work progresses
in accordance with agreed-upon contractual terms either at periodic intervals (monthly) or upon achievement of contractual milestones; as of December 31,
2024, the accounts receivable balance in the balance sheet includes approximately $0.5 million of unbilled receivables. Under typical payment terms of fixed
price arrangements, the customer pays the Company either performance-based payments or progress payments. For the Company’s cost-type arrangements, the
customer generally pays the Company for its actual costs incurred, as well as its allocated overhead and G&A costs. Such payments occur within a short period
of time from billing. When the Company receives consideration, or such consideration is unconditionally due, prior to transferring goods or services to the
customer under the terms of a sales contract, the Company records deferred revenue, which represents a contract liability. During the year ended December 31,
2024, the Company recognized revenue of $10.8 million that was included in deferred revenue at the beginning of the period.
Remaining Performance Obligations. Remaining performance obligations represent the transaction price for which work has not been performed
and excludes unexercised contract options. As of December 31, 2024, the aggregate amount of transaction price allocated to remaining performance obligations
was $92.8 million. With respect to current obligations related to the manufacture and delivery of product, the Company expects such obligations to be mostly
recognized as revenues within the next 12 months. With respect to the performance obligations related to research and development services, the Company
expects such obligations to be recognized as revenue within the next three years as the specific timing for satisfying performance obligations is subjective and
at times outside the Company's control.
Leases
The Company accounts for leases in accordance with ASC 842, Leases (“ASC 842”).
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The Company determines if an arrangement is a lease at inception. Leases with an initial term less than one year are not recorded on the balance sheet and the
lease costs are recorded as an expense on a straight-line basis over the lease term. Operating leases with terms greater than one year result in a lease liability
recorded in other liabilities with a corresponding right-of-use ("ROU") asset recorded in property, plant and equipment.
Operating lease liabilities are recognized at the commencement date based on the present value of future minimum lease payments over the lease term. ROU
assets are recognized based on the corresponding lease liabilities adjusted for qualifying initial direct costs, prepaid or accrued lease payments and unamortized
lease incentives. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease. Lease terms may include
options to extend or terminate the lease which are incorporated into the Company's measurement when it is reasonably certain that the Company will exercise
the option.
Research and Development
Research and development expenses include costs directly and indirectly attributable to the conduct of research and development programs, and performance
pursuant to certain customer contracts, including employee related costs, materials, supplies, depreciation and maintenance of equipment, the cost of services
provided by outside contractors, including services related to the Company’s clinical trials and facility costs, such as rent, utilities, and general support services.
All costs associated with research and development are expensed as incurred. Costs related to the acquisition of technology rights, for which development work
is still in process, and that have no alternative future uses, are expensed as incurred.
Goodwill
The Company evaluates goodwill for impairment at least annually or as circumstances warrant. The impairment review process compares the fair value of the
reporting unit in which goodwill resides to its carrying value. The Company operates as one business and one reporting unit. Therefore, the goodwill
impairment analysis is performed on the basis of the Company as a whole, using the market capitalization of the Company as an estimate of its fair value.
Share-based Compensation
Stock-based compensation expense for all share-based payment awards made to employees and directors is determined on the grant date; for option awards,
fair value was estimated using the Black-Scholes model. These compensation costs are recognized net of an estimated forfeiture rate over the requisite service
periods of the awards. Forfeitures are estimated on the date of the respective grant and revised if actual or expected forfeiture activity differs from original
estimates.
The fair value of restricted stock unit ("RSU") awards is determined by the value of our common stock and is recognized based on the portion of the requisite
service period satisfied as of each valuation date. The fair valuation of the cash-settled awards changes based on changes in our common stock price. The
portion of cash-settled RSUs that is recognized based on service period is reflected in accrued expenses and other current liabilities in our consolidated balance
sheet. Increases (or decreases) in accrued expenses result in adjustments to earnings for the associated valuation updates.
The fair value of performance based restricted stock unit (“PSU”) awards are based on targets of our stock price. The Company uses a Monte Carlo simulation
through a third party on the date of grant to estimate the fair value of the PSUs that are based on market conditions, or market-based PSUs. The compensation
expense for PSUs is recognized using an accelerated amortization model.
Income Taxes
The Company recognizes income taxes utilizing the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are
recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities at enacted tax rates expected to be in
effect for the years in which the differences are expected to reverse. A valuation allowance is established if it is more likely than not that some or the entire
deferred tax asset will not be realized. The recognition of a valuation allowance for deferred taxes requires management to make estimates and judgments about
the Company’s future profitability which are inherently uncertain. The Company may recognize tax benefits from an uncertain tax position only if it is more
likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits
recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of
being realized upon ultimate settlement. The Company re-evaluates uncertain tax positions and considers factors, including, but not limited to, changes in tax
law, the measurement of tax positions taken or expected to be taken on tax returns, and changes in circumstances related to a tax position. The Company
recognizes interest and penalties related to income tax matters in income tax expense. 
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Repurchase of shares
When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction
from equity. The excess of the purchase price above par value of repurchased shares that are retired is presented as an increase to accumulated deficit (or a
reduction of retained earnings, if any).
Earnings (Loss) per Share
Basic earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted
earnings per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, assuming
potentially dilutive common shares from option exercises, RSUs, warrants and other incentives had been issued and any proceeds received in respect thereof
were used to repurchase common stock at the average market price during the period. The assumed proceeds used to repurchase common stock is the sum of
the amount to be paid to the Company upon exercise of options and warrants and the amount of compensation cost attributed to future services not yet
recognized.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities approximates fair
value due to the relatively short maturity of these instruments. 
The measurement of fair value requires the use of techniques based on observable and unobservable inputs. Observable inputs reflect market data obtained
from independent sources, while unobservable inputs reflect our market assumptions. The inputs create the following fair value hierarchy:
•
Level 1 – Quoted prices for identical instruments in active markets.
 
•
Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and
model-derived valuations where inputs are observable or where significant value drivers are observable.
 
•
Level 3 – Instruments where significant value drivers are unobservable to third parties.
There were no transfers between levels of the fair value hierarchy during 2024 or 2023. As of December 31, 2024 and  December 31, 2023, the Company had
approximately $53.5 million and $95.1 million, respectively, of cash equivalents classified as Level 1 financial instruments. There were no Level 2 or Level 3
financial instruments as of  December 31, 2024 or  December 31, 2023. 
For the years ended December 31, 2024, 2023 and 2022, interest income of $6.1 million, $4.2 million and $1.0 million, respectively, was included in Other
income, net on the Consolidated Statements of Operations and Comprehensive Income.
Loss Contingencies
The Company is subject to certain contingencies arising in the ordinary course of business. The Company records accruals for these contingencies to the extent
that a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the
range, that amount is accrued. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in
the range is accrued. The Company expenses legal costs associated with loss contingencies as incurred. We record anticipated recoveries under existing
insurance contracts when recovery is assured.
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Segment Information
The Company is managed and operated as one business. The entire business is managed by a single management team that reports to the Chief Executive
Officer, who is the Chief Operating Decision Maker ("CODM"). Refer to Note 11 for further information on the Company's reportable segment.
Recent Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the
components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for fiscal years beginning after
December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. These requirements are not expected to have an impact on
our consolidated financial statements, but will impact our income tax disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-
40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to
the consolidated financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for
interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.
3. Procurement Contracts and Research Agreements
19C BARDA Contract
On September 10, 2018, the Company entered into a contract with the U.S. Biomedical Advanced Research and Development Authority ("BARDA") pursuant
to which SIGA agreed to deliver up to 1,488,000 courses of oral TPOXX® to the Strategic Stockpile, and to manufacture and deliver to the Strategic Stockpile,
or store as vendor-managed inventory, up to 212,000 courses of IV TPOXX®. In October 2023, the contract was modified so that a course of IV TPOXX® was
redefined within the contract from being 14 vials to being 28 vials; as such, the 19C BARDA Contract currently specifies 106,000 courses of IV TPOXX® (for
the same payment amount as originally specified). In addition to the delivery of TPOXX® courses, the contract includes funding from BARDA for a range of
activities, including: advanced development of IV TPOXX®, post-marketing activities for oral and IV TPOXX®, development for a pediatric formulation, and
procurement activities. As of December 31, 2024, the contract with BARDA (as amended, modified, or supplemented from time to time, the "19C BARDA
Contract") contemplates up to approximately $602.5 million of payments, of which approximately $51.7 million of payments are included within the base
period of performance, approximately $519.6 million of payments are related to exercised options, and up to approximately $31.2 million of payments are
currently specified as unexercised options. BARDA may choose in its sole discretion when, or whether, to exercise any of the unexercised options. The period
of performance for options is up to ten years from the date of entry into the 19C BARDA Contract and such options could be exercised at any time during the
contract term.
The base period of performance specifies potential payments of approximately $51.7 million for the following activities: payments of approximately $11.1
million for the delivery of approximately  35,700 courses of oral TPOXX® to the Strategic Stockpile; payments of $8.0 million for the manufacture
of 10,000 courses (as currently defined within the contract as being 28 vials) of final drug product of IV TPOXX® ("IV FDP"), of which $3.2 million of
payments are related to the manufacture of bulk drug substance ("IV BDS") to be used in the manufacture of IV FDP; payments of approximately $32.0 million
to fund reimbursed activities; and payments of approximately $0.6 million for supportive procurement activities. As of December 31, 2024, the Company
had received $11.1 million for the delivery of approximately 35,700 courses of oral TPOXX® to the Strategic Stockpile, $3.2 million for the manufacture of IV
BDS, $4.8 million for the delivery of IV FDP to the Strategic Stockpile and $25.3 million for other base period activities. IV BDS has been used for the
manufacture of courses of IV FDP. The $3.2 million received for the completed manufacture of IV BDS had been recorded as deferred revenue as of December
31, 2021, but with the delivery of IV FDP to the Strategic Stockpile during 2022, $2.9 million was recognized as revenue. The remaining $0.3 million of
deferred revenue was recognized in the second quarter of 2024 as the IV FDP containing such IV BDS was delivered to and accepted by the Strategic
Stockpile.
The options that have been exercised as of December 31, 2024, provide for payments up to approximately $519.6 million. As of December 31, 2024, there are
exercised options for the following activities: payments up to $450.2 million for the manufacture and delivery of up to 1.5 million courses of oral TPOXX®;
payments up to $51.2 million for the manufacture of courses of IV FDP, of which $20.5 million of payments relate to the manufacture of IV BDS to be used in
the manufacture of IV FDP; payments of up to approximately $3.6 million to fund post-marketing activities for IV TPOXX®; and payments of up to $14.6
million for funding of post-marketing activities for oral TPOXX®. As of December 31, 2024, a cumulative total of $396.9 million of oral TPOXX® has been
delivered to the Strategic Stockpile and accepted, of which approximately $15 million was delivered in the first quarter of 2024, approximately $8 million was
delivered in the third quarter of 2024, and approximately $51 million was delivered in the fourth quarter of 2024; a cumulative total of $25.4 million of IV FDP
has been delivered to the Strategic Stockpile and accepted, of which approximately $17 million of revenue (including recognition of deferred revenue) was
recorded in the second quarter of 2024 and approximately $8 million of revenue (including recognition of deferred revenue) was recorded in the fourth quarter
of 2024; $10.3  million has been received for the manufacture of IV BDS (such amount is recorded as deferred revenue); and the Company has been
cumulatively reimbursed $9.4 million in connection with post-marketing activities for oral and IV TPOXX®.
Unexercised options specify potential payments up to approximately $31.2 million in total (if all such options are exercised), of which approximately $5.6
million relates to supportive activities that we currently do not expect to be required. The remaining unexercised options specify payments of up to $25.6
million for the manufacture of courses of IV FDP, of which up to $10.2 million of payments would be paid upon the manufacture of IV BDS to be used in the
manufacture of IV FDP.
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The options related to IV TPOXX® are divided into two primary manufacturing steps. There are options related to the manufacture of bulk drug substance
(“IV BDS Options”), and there are corresponding options (for the same number of IV courses) for the manufacture of final drug product (“IV FDP Options”).
BARDA may choose to exercise any, all, or none of these options in its sole discretion. The 19C BARDA Contract includes: three separate IV BDS Options,
each providing for the bulk drug substance equivalent of 32,000 courses (as currently defined within the contract) of IV TPOXX®; and three separate IV FDP
Options, each providing for 32,000 courses of final drug product of IV TPOXX®. BARDA has the sole discretion as to whether to simultaneously exercise IV
BDS Options and IV FDP Options, or whether to exercise options at different points in time (or alternatively, to only exercise the IV BDS Option but not the
IV FDP Option). To date, BARDA has exercised two of the three IV BDS options and two of the three IV FDP options. If BARDA decides only to exercise the
remaining IV BDS Option, then the Company would receive payments up to $10.2 million; alternatively, if BARDA decides to exercise the remaining IV BDS
Option and IV FDP Option, then the Company would receive payments up to $25.6 million. BARDA may also decide not to exercise either remaining option.
For each set of options relating to a specific group of courses (for instance, the IV BDS and IV FDP options that reference the same 32,000 courses), BARDA
has the option to independently purchase IV BDS or IV FDP.
Revenues in connection with the 19C BARDA Contract are recognized either over time or at a point in time. Performance obligations related to product
delivery generate revenue at a point in time. Revenue from other performance obligations under the 19C BARDA Contract are recognized over time using an
input method using costs incurred to date relative to total estimated costs at completion. For the years ended December 31, 2024 and 2023, the Company
recognized revenues of $5.4 million and $3.0 million, respectively, on an over time basis. In contrast, revenue recognized for product delivery and therefore at
a point in time for the years ended December 31, 2024 and 2023, was $100.1 million and $97.9 million, respectively. 
U.S. Department of Defense Procurement Contracts
In 2024, the Company had sales of approximately $10 million with the U.S. Department of Defense ("DoD").  Sales consist mostly of delivery of oral
TPOXX®, with a minor amount of IV TPOXX® delivered.
In 2023, the Company had sales of approximately $11 million with the DoD. Sales consist of delivery of oral TPOXX®. 
Over the past three years, the Company has received three procurement contracts from the DoD, including a $9 million contract in August 2024, which has
been fulfilled. 
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International Sales Activity
In the year ended December 31, 2024, the Company had international sales of $23.0 million consisting of deliveries of oral TPOXX® to 13 countries. For
international sales in the first and second quarters, Meridian was the counterparty to contracts under which the sales were made (see discussion and definition
below regarding International Promotion Agreement). For international sales in the third and fourth quarters, the Company was the counterparty to
the contracts under which the sales were made.
In the year ended December 31, 2023, the Company delivered, and received acceptance for, approximately $21.3 million of oral TPOXX® to five European
countries, one Middle Eastern country, and one Asia Pacific country. Meridian was the counterparty to international contracts under which these sales were
made (see discussion and definition below regarding International Promotion Agreement).
Revenue in connection with international procurement contracts for the delivery of product are recognized at a point in time on a gross basis, as the Company
acts as the principal in the transaction. During the year ended December 31, 2024, the Company recognized $23.0  million  of sales in connection with
international contracts. During the year ended  December 31, 2023, the Company recognized $21.3 million of sales in connection with international contracts. 
International Promotion Agreement
Under the terms of the current International Promotion Agreement, which was amended on March 27, 2024, and effective June 1, 2024, and further amended
on August 30, 2024, the Company has primary responsibility for the advertising, promotion and sale of oral TPOXX® in all geographic regions. Meridian has
limited, non-exclusive rights to advertise, promote, offer for sale and sell oral TPOXX® in the European Economic Area, Australia, Japan, Switzerland, the
United Kingdom and the Association of Southeast Asian Nations and its member states (collectively, the “Current Territory”). Meridian also performs non-
promotional activities under specified contracts with third parties entered into prior to June 1, 2024, that provide for the sale of oral TPOXX® in the Current
Territory. The International Promotion Agreement entitles Meridian to receive a fee equal to a high single digit percentage of collected proceeds (whether
collected by Meridian or the Company), net of certain expenses, of sales of oral TPOXX® in the Current Territory in the field of use specified in the
International Promotion Agreement. The International Promotion Agreement has a fixed term that expires on May 31, 2026, with no automatic renewal.
Under the terms of the original International Promotion Agreement ("Pre-amendment International Promotion Agreement"), which had an initial term that
expired on May 31, 2024, Meridian had been granted exclusive rights to market, advertise, promote, offer for sale, or sell oral TPOXX® in a field of use
specified in the International Promotion Agreement in all geographic regions except for the United States (the “Territory”), and Meridian agreed not to
commercialize any competing product, as defined in the Pre-amendment International Promotion Agreement, in the specified field of use in the Territory.
Under the Pre-amendment International Promotion Agreement, as well as the current International Promotion Agreement, SIGA has always retained ownership,
intellectual property, distribution and supply rights and regulatory responsibilities in connection with TPOXX®, and, in the United States market, also
retained  sales and marketing rights with respect to oral TPOXX®. SIGA’s consent is  required prior to the entry by Meridian into any sales arrangement
pursuant to the International Promotion Agreement.
Sales to international customers pursuant to the Pre-amendment  International Promotion Agreement were invoiced and collected by Meridian, and such
collections were remitted, less Meridian's fees, to the Company under a quarterly process specified in the Pre-amendment International Promotion Agreement;
and Meridian was entitled to a specified percentage of the collected proceeds of sales of oral TPOXX®, net of certain expenses, for calendar years in which
customer collected amounts net of such expenses were less than or equal to a specified threshold, and to a higher specified percentage of such collected net
proceeds for calendar years in which such net collected amounts exceeded the specified threshold. Subsequent to June 1, 2024, only specified procurement
contracts for the Current Territory entered into prior to June 1, 2024, continue to involve Meridian invoicing and collecting proceeds, and retaining a fee
pursuant to the International Promotion Agreement. 
Research Agreements and Grants
In July 2019, the Company was awarded a multi-year research contract ultimately valued at approximately $27 million from the DoD to support work in
pursuit of a potential label expansion for oral TPOXX® that would include post-exposure prophylaxis ("PEP") of smallpox (such work known as the "PEP
Label Expansion Program" and the contract referred to as the "PEP Label Expansion R&D Contract"). As of December 31, 2023, the Company invoiced the
full amount of available funding, and as a result, there is no remaining revenue to be recognized in the future under the PEP Label Expansion R&D Contract.
Revenue from the performance obligation under the PEP Label Expansion R&D Contract was recognized over time using an input method using costs incurred
to date relative to total estimated costs at completion. For the year ended December 31, 2023, the Company, under the PEP Label Expansion R&D Contract,
recognized revenue of $6.4 million on an over time basis.
Contracts and grants include, among other things, options that may or may not be exercised at the U.S. Government’s discretion. Moreover, contracts and
grants contain customary terms and conditions including the U.S. Government’s right to terminate or restructure a contract or grant for convenience at any
time. As such, the Company may not be eligible to receive all available funds.
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4. Inventory
Inventory consisted of the following:
 
As of
 
  December 31, 2024    December 31, 2023 
Raw materials
  $
134,535    $
8,061,800 
Work in-process
   
40,417,411     
53,649,859 
Finished goods
   
9,011,934     
2,506,678 
Inventory
  $
49,563,880    $
64,218,337 
5. Property, Plant and Equipment
Property, plant and equipment consisted of the following:
 
As of
 
  December 31, 2024    December 31, 2023 
Leasehold improvements
  $
2,420,028    $
2,420,028 
Computer equipment
   
450,511     
468,937 
Furniture and fixtures
   
347,045     
347,045 
Operating lease right-of-use asset
   
4,141,333     
3,678,647 
   
7,358,917     
6,914,657 
Less-accumulated depreciation
   
(6,060,494)    
(5,582,949)
Property, plant and equipment, net
  $
1,298,423    $
1,331,708 
Depreciation and amortization expense on property, plant, and equipment was $0.5 million for each of the years ended December 31, 2024, 2023, and 2022. 
6. Accrued Expenses
Accrued expenses and other current liabilities consisted of the following:
 
As of
 
  December 31, 2024    December 31, 2023 
Other
  $
2,429,897    $
2,087,379 
Professional fees
   
1,473,956     
445,653 
Lease liability, current portion
   
546,820     
564,009 
Research and development vendor costs
   
446,412     
418,681 
Compensation
   
637,750     
3,365,103 
Inventory
   
105,275     
3,300,985 
Accrued expenses and other current liabilities
  $
5,640,110    $
10,181,810 
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7. Per Share Data
The Company computes, presents and discloses earnings per share in accordance with the authoritative guidance which specifies the computation, presentation
and disclosure requirements for earnings per share of entities with publicly held common stock or potential common stock. The objective of basic EPS is to
measure the performance of an entity over the reporting period by dividing income (loss) by the weighted average shares outstanding. The objective of diluted
EPS is consistent with that of basic EPS, except that it also gives effect to all potentially dilutive common shares outstanding during the period.
The following is a reconciliation of the basic and diluted earnings (loss) per share computation:
 
 
Year Ended December 31,
 
 
 
2024
   
2023
   
2022
 
Net income for basic earnings per share
  $
59,214,216    $
68,068,826    $
33,904,806 
Less: Change in fair value of warrants
   
—     
—     
400,663 
Net income, adjusted for change in fair value of warrants for diluted
earnings per share
  $
59,214,216    $
68,068,826    $
33,504,143 
Weighted-average shares
   
71,253,172     
71,362,209     
72,929,550 
Effect of potential common shares
   
652,540     
317,061     
616,951 
Weighted-average shares: diluted
   
71,905,712     
71,679,270     
73,546,501 
Earnings per share: basic
  $
0.83    $
0.95    $
0.46 
Earnings per share: diluted
  $
0.82    $
0.95    $
0.46 
For the years ended December 31, 2024, December 31, 2023 and December 31, 2022, weighted-average diluted shares include the dilutive effect of in-the-
money options and stock-settled RSUs. For the year ended  December 31, 2022, the diluted earnings per share calculation also reflects the effect of the exercise
or assumed exercise of outstanding warrants and any corresponding elimination of the impact included in operating results from the change in fair value of the
warrants. The dilutive effect of warrants, stock-settled RSUs and options is calculated based on the average share price for each fiscal period using the treasury
stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the average amount of compensation cost for
future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award
becomes deductible, are collectively assumed to be used to repurchase shares. Cash-settled RSUs were presumed to be cash-settled and therefore excluded
from the diluted earnings per share calculations for the years ended December 31, 2024, 2023 and 2022 because the net effect of their inclusion, including the
elimination of the impact in the operating results of the change in fair value of these RSUs, would have been anti-dilutive. For the years ended December 31,
2024, 2023 and 2022, the weighted average number of shares under the cash-settled RSUs excluded from the calculation of diluted earnings per share was
48,642, 32,660, and 17,388, respectively. 
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8. Stockholders’ Equity
On December 31, 2024, the Company’s authorized share capital consisted of 620,000,000 shares, of which 600,000,000 are designated common shares and
20,000,000 are designated preferred shares. The Company’s Board of Directors is authorized to issue preferred shares in series with rights, privileges and
qualifications of each series determined by the Board. As of December 31, 2024 and 2023, no preferred shares were outstanding or issued.
On August 2, 2021, the Company's Board of Directors authorized a share repurchase program ("Repurchase Authorization") under which the Company could
repurchase up to $50 million of the Company's common stock through December 31, 2023. The Company started repurchasing shares under this program in the
fourth quarter of 2021. Repurchases under the Repurchase Authorization were made from time to time at the Company's discretion. The timing and actual
number of shares repurchased depended on a variety of factors, including: timing of procurement orders under government contracts; alternative opportunities
for strategic uses of cash; the stock price of the Company’s common stock; market conditions; alternative capital management uses of cash; and other corporate
liquidity requirements and priorities. On December 31, 2023, the Repurchase Authorization expired. As a result, during the year ended  December 31, 2024, the
Company did not repurchase any shares. During the year ended December 31, 2023, the Company repurchased approximately 1.7 million shares of common
stock under the Repurchase Authorization for approximately $11.0 million. In addition, during the year ended December 31, 2023, the Company recorded
approximately $0.1 million of excise tax associated with the repurchase of common stock. 
On March 12, 2024, the Board of Directors declared a special dividend of $0.60 per share on the common stock of the Company, which resulted in an overall
dividend  payment of approximately $43  million. The special dividend was paid on April  11, 2024  to shareholders of record at the close of business on
March 26, 2024.
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9. Stock Compensation Plans
The Company’s 2010 Stock Incentive Plan (the “2010 Plan”) was initially adopted in May 2010. The 2010 Plan provided for the issuance of stock options,
restricted stock and unrestricted stock with respect to an aggregate of 2,000,000 shares of the Company’s common stock to employees, consultants and outside
directors of the Company. On May 17, 2011, the 2010 Plan was amended to provide for the issuance of RSUs and on February 2, 2012, the 2010 Plan was
amended to provide for the issuance of stock-settled stock appreciation rights ("SSARs"). Effective April 25, 2012 and May 23, 2017, the 2010 Plan was
amended to increase the maximum number of shares of common stock available for issuance to an aggregate of 4,500,000 shares and 8,500,000 shares,
respectively. The vesting period for awards granted under the 2010 Plan  is determined by the Compensation Committee of the Board of Directors. The
Compensation Committee also determines the expiration date of each equity award; however, stock options  may not be exercisable more than ten years after
the date of grant as the maximum term of equity awards issued under the 2010 Plan is ten years.
For the years ended December 31, 2024, 2023 and 2022, the Company recorded stock-based compensation expense, including stock options and RSUs, of
approximately $3.6 million, $2.1 million and $1.8 million, respectively.
Stock Options
Stock option awards provide holders the right to purchase shares of Common Stock at prices determined by the Compensation Committee, at the time of grant,
and must have an exercise price equal to or in excess of the fair market value of the Company’s common stock at the date of grant.
The fair value of options granted is estimated at the date of grant. Expected volatility has been estimated using the historical volatility of the Company's
common stock using historical periods equivalent to the options’ expected lives. The expected dividend yield assumption reflects that the Company does not
have a recurring dividend program. The risk-free interest rate assumption is based upon observed interest rates for securities with maturities approximating the
options’ expected lives. The expected life was estimated based on historical experience and expectation of employee exercise behavior in the future giving
consideration to the contractual terms of the award.
The fair value of stock options issued under our stock plan have been estimated with the following assumptions:
  Year Ended December 31,
2024
Weighted Average Expected Life (in Years)
 
10
Risk-free Interest Rate
 
4.1% - 4.2%
Volatility
 
75.3% - 75.8%
Dividend Yield
 
0%
A summary of the Company’s stock option activity is as follows:
   
 
   
Weighted
   
Weighted
     
 
 
   
 
   
Average
   
Average
   
Aggregate
 
 
Number of
   
Exercise
   
Remaining
Life
   
Intrinsic
 
 
Options
   
Price
   
(in years)
   
Value
 
Outstanding at January 1, 2024 (1)
   
208,584    $
6.08     
      
  
Granted
   
449,722     
5.52     
      
  
Exercised
   
—     
—       
       
 
Canceled/Expired
   
(29,049)    
7.99     
      
  
Outstanding at December 31, 2024
   
629,257    $
5.59     
8.43    $
556,565 
Vested and Expected to Vest at December 31, 2024
   
629,257    $
5.59     
8.43    $
556,565 
Exercisable at December 31, 2024
   
182,824    $
5.83     
6.76    $
101,202 
(1) Balances as of January 1, 2024 differ from those as of December 31, 2023 presented in the Company's 2023 Form 10-K due to the special dividend paid
during 2024. In connection with the dividend, the number of options and the weighted average exercise price were adjusted pursuant to the terms of the
Company's 2010 Plan.
As of December 31, 2024, the remaining unrecognized stock-based compensation cost related to stock options expected to be recognized is $1.4 million. The
total fair value of stock options which vested during the years ended December 31, 2024 and 2023 was approximately $24,964 and $123,000, respectively.
There were no stock options exercised during the years ended December 31, 2024 and December 31, 2022. The stock options exercised during the year ended
December 31, 2023 had an intrinsic value of less than $0.1 million. The intrinsic value represents the amount by which the market price of the underlying stock
exceeds the exercise price of an option.
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Restricted Stock Units
RSUs (including PSUs) awarded to employees vest on schedules of between one year and three years, and RSUs awarded to directors of the Company vest
over a one-year period. A summary of the Company’s RSU activity is as follows:
   
 
   
Weighted
 
   
 
   
Average
 
 
Number of
   
Grant-Date
 
 
RSUs
   
Fair Value
 
Outstanding at January 1, 2024 (1)
   
486,325    $
8.56 
Granted (2)
   
558,729     
5.51 
Vested and released
   
(428,454)    
5.99 
Canceled/Expired
   
(27,100)    
6.40 
Outstanding at December 31, 2024 (2)
   
589,500    $
5.86 
(1) includes 59,312 awards which were settled in cash.
(2) includes 40,075 awards which were expected to be settled in cash.
As of December 31, 2024, $1.7 million of total remaining unrecognized stock-based compensation cost related to RSUs is expected to be recognized over the
weighted-average remaining requisite service period of 1.4 years. The weighted average fair value at the date of grant for restricted stock awards granted during
the years ended December 31, 2024, 2023 and 2022 was $5.51, $6.14 and $9.40 per share, respectively. Based on the grant date, the total fair value of restricted
stock and restricted stock units vested and released during the years ended December 31, 2024, 2023 and 2022 was approximately $2.6 million, $1.9 million
and $1.2 million, respectively.
10. Income Taxes
The Company's provision (benefit) for income taxes comprises the following:
 
For the year ended December 31,
 
 
2024
   
2023
   
2022
 
Current:
     
       
       
 
Federal
  $
16,526,685    $
23,698,658    $
13,154,619 
State and local
   
131,813     
792,477     
897,285 
Foreign
   
4,260     
14,445     
3,800 
Total current provision
   
16,662,758     
24,505,580     
14,055,704 
Deferred:
     
       
       
 
Federal
   
294,028     
(4,711,556)    
(3,818,283)
State and local
   
(100,612)    
(86,177)    
(9,495)
Foreign
   
—     
—     
— 
Total deferred provision (benefit)
   
193,416     
(4,797,733)    
(3,827,778)
Total provision
  $
16,856,174    $
19,707,847    $
10,227,926 
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The Company’s deferred tax assets and liabilities comprise the following:
 
As of December 31,
 
 
2024
   
2023
 
Deferred income tax assets:
     
       
 
State net operating losses
  $
1,166,400    $
1,194,814 
Inventory
   
400,783     
777,146 
Reserves and accruals
   
85,716     
666,772 
Amortization of intangible assets
   
—     
7,852 
Share-based compensation
   
539,738     
506,451 
Fixed Assets
   
28,213     
34,546 
Deferred revenue
   
2,232,060     
2,256,099 
Capitalized R&D
   
7,028,480     
6,198,455 
Lease liability
   
294,503     
319,074 
Other
   
500,726     
514,150 
Deferred income tax assets
   
12,276,619     
12,475,359 
Less: valuation allowance
   
(921,456)    
(943,903)
Deferred income tax assets, net of valuation allowance
  $
11,355,163    $
11,531,456 
Deferred income tax liabilities:
     
       
 
Amortization of goodwill
   
(194,093)    
(192,130)
Property, plant and equipment
   
—     
— 
Other
   
(306,368)    
(291,208)
Deferred income tax asset, net
  $
10,854,702    $
11,048,118 
The recognition of a valuation allowance for deferred taxes requires management to make estimates and judgments about the Company’s future profitability
which is inherently uncertain. The Company assesses all available positive and negative evidence to determine if its existing deferred tax assets are realizable
on a more-likely-than-not basis. In making such assessment, the Company considered the reversal of existing taxable temporary differences, projected future
taxable income, tax planning strategies and recent financial operating results. The ultimate realization of a deferred tax asset is ultimately dependent on the
Company's generation of sufficient taxable income within the available net operating loss carryback and/or carryforward periods to utilize the deductible
temporary differences. As of December 31, 2024, the Company maintains a full valuation on its state and local net operating losses which the Company
determined were not realizable on a more-likely-than-not basis. The Company's valuation allowance decreased by approximately $22,000 during the year
ended December 31, 2024.
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The benefit for income taxes differs from the expected amount calculated by applying the Company's statutory rate to the income or loss before benefit for
income taxes as follows:
 
 
As of December 31,
 
 
2024
 
 
2023
   
2022
 
Statutory federal income tax rate
   
21.0%    
21.0%   
21.0%
State and local taxes
   
0.2%    
0.1%   
1.6%
Change in fair value of common stock warrant
   
— 
   
—     
(0.2)%
Section 162(m) limitation
   
1.5%    
0.4%   
0.7%
Other
   
(0.5)%   
1.0%   
0.1%
Effective tax rate
   
22.2%    
22.5%   
23.2%
For the years ended December 31, 2024, 2023 and 2022, the Company’s effective tax rate differs from the statutory rate of 21% primarily as a result of certain
permanent differences including non-deductible executive compensation under IRC Section 162(m), stock-based compensation related items, state and local
taxes, and other items. 
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:
 
For the year ended December 31,
 
 
2024
   
2023
   
2022
 
Balance at beginning of year
  $
5,081,610    $
5,103,548    $
5,602,587 
Tax positions related to the current and prior years:
   
      
      
  
Additions
   
51,227     
—     
— 
Reductions
   
—     
(17,096)    
(68,792)
Settlements
   
—     
—     
— 
Lapses in applicable statutes of limitation
   
(440,208)    
(4,842)    
(430,247)
Balance at the end of the year
  $
4,692,629    $
5,081,610    $
5,103,548 
Included in the balance of unrecognized tax benefits as of December 31, 2024, are potential benefits of $4.7 million that, if recognized, would affect the
effective tax rate. The total amount accrued for interest and penalties as of   December 31, 2024 and   December 31, 2023, was  $315,000 and $214,000,
respectively. For the years ended  December 31, 2024 and  December 31, 2023, the Company recorded an income tax expense of $101,000 and $142,000,
respectively, related to the accrual of interest and penalties. There are no uncertain tax positions for which it is reasonably possible that the total amounts of
unrecognized benefits will significantly increase or decrease within twelve months from December 31, 2024.
The Company files federal income tax returns and income tax returns in various state and local tax jurisdictions. The federal tax years open to examination are
2021 to 2024. The Company's state and local tax years that are open to tax examination are generally 2020 to 2024.
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11. Segment and Geographic Information
The Company operates in one single operating and reportable segment, which includes all activities related to the sale of the Company’s Oral and IV TPOXX®
as well as research and development services. The Company derives revenue primarily from sales to the U.S. Government as well as international governments
(including government affiliated entities) and manages the business activities on a consolidated basis. The segment derives revenues from customers through
the delivery of product and fulfillment of research and development services.
The CODM assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the income statement as
consolidated net income. Consolidated net income is also a measure that is considered in monitoring budget versus actual results.
The CODM does not review assets in evaluating the results of the segment, and therefore, such information is not presented.
The following table provides the operating result of the Company's segment:
 
For the years ended December 31,
 
 
2024
   
2023
   
2022
 
Revenue
     
       
       
 
Product sales and supportive services
  $
133,330,181    $
130,668,209    $
86,661,583 
Research and development
   
5,389,169     
9,249,011     
24,114,027 
Total revenues
   
138,719,350     
139,917,220     
110,775,610 
Less:
     
       
       
 
Cost of sales and supportive services
   
31,289,229     
17,825,090     
10,432,561 
Employee expenses
   
14,189,116     
13,058,095     
11,772,293 
R&D vendor expenses
   
2,097,398     
6,748,453     
14,543,572 
Professional fee expenses
   
3,837,929     
4,820,843     
3,090,985 
International promotion fees
   
3,098,402     
3,938,867     
17,632,664 
Other segment items (1)
   
14,254,475     
9,922,345     
10,212,445 
Interest income
   
(6,117,589)    
(4,173,146)    
(1,041,642)
Income tax expense
   
16,856,174     
19,707,847     
10,227,926 
Net income
  $
59,214,216    $
68,068,826    $
33,904,806 
(1) Other segment items include insurance, regulatory and consultant expenses, as well as various general corporate costs.
Revenues by geographic region were as follows:
 
For the year ended December 31,
 
 
2024
   
2023
   
2022
 
United States
  $
115,743,994    $
118,650,253    $
39,803,888 
     
       
       
 
International
     
       
       
 
Asia-Pacific
   
13,857,043     
966,633     
14,853,233 
Canada
   
737,677     
—     
38,875,657 
Europe, Middle East and Africa (EMEA)
   
8,380,636     
20,300,334     
16,270,033 
Other
   
—     
—     
972,799 
Total International
   
22,975,356     
21,266,967     
70,971,722 
     
       
       
 
Total revenues
  $
138,719,350    $
139,917,220    $
110,775,610 
 
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12. Commitments and Contingencies
Operating lease commitments
The Company leases its Corvallis, Oregon, office space under an operating lease which was signed on November 3, 2017 and commenced on January 1, 2018.
The initial term of this lease was to expire on December 31, 2019, after which the Company had two successive renewal options; one for two years and the
other for three years. In the second quarter of 2019, the Company exercised the first renewal option, which extended the lease expiration date to December 31,
2021. In the second quarter of 2021, the Company exercised the second renewal option, which extended the lease expiration date to December 31, 2024. In the
second quarter of 2024, the Company entered into an additional addendum, which extended the lease expiration date to December 31, 2026. In connection with
this additional addendum, the Company recorded an increase to operating lease right-of-use assets and operating lease liabilities of approximately $0.5 million
in the second quarter of 2024. The Company had a lease for the same location prior to this lease. On May 26, 2017 the Company and MacAndrews &
Forbes Incorporated ("M&F") entered into a ten-year office lease agreement (the “New HQ Lease”), pursuant to which the Company agreed to lease 3,200
square feet at 31 East 62nd Street, New York, New York. The Company is utilizing premises leased under the New HQ Lease as its corporate headquarters. The
Company has no leases that qualify as finance leases.
Operating lease costs totaled $0.6 million for each of the years ended December 31, 2024 and 2023. Cash paid for amounts included in the measurement of
lease liabilities from operating cash flows was $0.7 million for each the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, the
weighted-average remaining lease term of the Company’s operating leases was 2.23 years while the weighted-average discount rate was 9.95%.
The following is a maturity analysis of the Company's lease liabilities as of December 31, 2024:
2025
  $
626,440 
2026
   
686,190 
2027
   
165,916 
Total undiscounted cash flows under operating leases
   
1,478,546 
Less: Imputed interest
   
(115,477)
Present value of lease liabilities
  $
1,363,069 
As of December 31, 2024, approximately $0.8 million of the lease liability is included in Other liabilities on the consolidated balance sheet with the current
portion included in accrued expenses.
Legal Proceedings
From time to time, we may be involved in a variety of claims, suits, investigations and proceedings arising from the ordinary course of our business, collections
claims, breach of contract claims, labor and employment claims, tax and other matters. Although such claims, suits, investigations and proceedings are
inherently uncertain and their results cannot be predicted with certainty, we believe that the resolution of such current pending matters, if any, will not have a
material adverse effect on our business, consolidated financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an
adverse impact on us because of legal costs, diversion of management resources and other factors.
Purchase Commitments
In the course of our business, the Company regularly enters into agreements with third party organizations to provide contract manufacturing services and
research and development services. Under these agreements, the Company issues purchase orders which obligate the Company to pay a specified price when
agreed-upon services are performed. Commitments under the purchase orders do not exceed our planned commercial and research and development needs. As
of December 31, 2024, the Company has approximately $2.4 million of purchase commitments associated with manufacturing obligations.
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13. Related Party Transactions
Board of Directors
Effective June 13, 2023, an individual was elected to the Company's Board of Directors who was already providing and continued to provide consulting
services to the Company. Under a consulting agreement, the director received a monthly fee of $20,000 in 2023 and 2024. During the year ended December 31,
2024, the Company incurred $240,000 under this agreement. The Company had no outstanding payables or accrued expenses related to the services performed
by this vendor as of December 31, 2024. Effective September 26, 2024, the consulting agreement was amended; the amendment specifies that the director
would receive a payment of between $120,000 and $240,000 in the event that the Company receives a request for proposal ("RFP") or request for information
("RFI") from the Administration of Strategic Preparedness and Response within the U.S. Government before July 1, 2025.  Because the Company did not
receive an RFI or an RFP before January 1, 2025, the maximum payment now available is $180,000. In addition, pursuant to the amendment the director is
entitled to receive the monthly fee through March 31, 2026, unless the director resigns as a consultant, or the Company terminates the director for cause. On
March 6, 2025, the director resigned from the Company’s Board of Directors, See Item 9B (Other Information).
Real Estate Leases
On May 26, 2017, the Company and M&F Incorporated entered into the New HQ Lease, pursuant to which the Company agreed to lease 3,200 square feet at
31 East 62nd Street, New York, New York. The Company is utilizing premises leased under the New HQ Lease as its corporate headquarters. The Company's
rental obligations consisted of a fixed rent of $25,333 per month in the first sixty-three months of the term, subject to a rent abatement for the first six months
of the term. From the first day of the sixty-fourth month of the term through the expiration or earlier termination of the lease, the Company's rental obligations
consist of a fixed rent of $29,333 per month. In addition to the fixed rent, the Company will pay a facility fee in consideration of the landlord making available
certain ancillary services, commencing on the first anniversary of entry into the lease. The facility fee was $3,333 per month for the second year of the term and
increases by five percent each year thereafter, to $4,925 per month in the final year of the term. During the year ended December 31, 2024, the Company paid
$0.4 million for rent and ancillary services associated with this lease. The Company had no outstanding payables or accrued expenses related to this lease as of
December 31, 2024 and 2023.
 
65

      
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure
controls and procedures as of December 31, 2024 in accordance with the framework on Internal Control-Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). The term “disclosure controls and procedures” is defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act. Management recognizes that any disclosure controls and procedures no matter how well designed and operated, can
only provide reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.
Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were
effective as of December 31, 2024 at a reasonable level of assurance.
 
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting during the quarter ended December 31, 2024 that materially affected, or
are reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-
15(f) or Rule 15d-15(f) of the Exchange Act. 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.
Our internal control over financial reporting includes those policies and procedures that:
•
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the Company’s assets;
 
•
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of
management and the 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.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024 using the
framework in Internal Control-Integrated Framework (2013) issued by the COSO. Based on this evaluation using the COSO criteria, management concluded
that the Company’s internal control over financial reporting was effective as of December 31, 2024.
 
Attestation Report of the Independent Registered Public Accounting Firm
 
The effectiveness of our internal control over financial reporting as of December 31, 2024 has been audited by PricewaterhouseCoopers LLP, our
independent registered public accounting firm, as stated in their attestation report, which is included in Item 8, “Financial Statements and Supplementary
Data,” of this Annual Report on Form 10-K.
 
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Item 9B. Other Information
On March 6, 2025, SIGA Technologies, Inc. (the “Company”) was informed of the voluntary resignation by Evan Knisely from the Company’s board
of directors (the “Board”) effective immediately. Mr. Knisely, who has served on the Board since June 2023, resigned to devote more time to his private
business endeavors including continuing and expanding his consulting role with SIGA, a function in which he has served since October of 2020.  His
resignation is not related to any disagreement with the Company on any matter relating to the registrant’s operations, policies or practices.
 
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
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Table of Contents
PART III
With the exception of the information incorporated by reference from our Proxy Statement for our 2025 Annual Meeting of Stockholders ("2025  Proxy
Statement") in Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K, our 2025 Proxy Statement is not to be deemed filed as a part of this
Form 10-K.
Item 10. Directors, Executive Officers, and Corporate Governance
The information required by Item 10 will be included in the Proxy Statement for our 2025 Annual Meeting of Stockholders ("2025 Proxy Statement")
under the headings “Proposal 1: Election of Directors,” “Board of   Directors,” “Executive Officers,” “Code of Ethics,” “Insider Trading Policy” and, if
applicable, “Delinquent Section 16(a) Reports,” or in an amendment to this Annual Report on Form 10-K and is incorporated herein by reference.
Item 11. Executive Compensation
The information required by Item 11 will be included in the 2025 Proxy Statement under the headings “Compensation Discussion and Analysis,”
“Director Compensation,” “Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report” or in an amendment to this
Annual Report on Form 10-K and is incorporated herein by reference. Information contained in the 2025 Proxy Statement or an amendment to this Annual
Report on Form 10-K under the caption “Compensation Committee Report” is furnished and not deemed filed with the SEC.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information required by this Item 12 concerning security ownership of certain beneficial owners and management is incorporated by reference to
the section titled "Security Ownership of Certain Beneficial Owners and Management" in our 2025 Proxy Statement.
Equity Compensation Plan Information
The following table sets forth certain compensation plan information with respect to compensation plans as of December 31, 2024:
Plan Category
 
Number of Securities to be
Issued Upon Exercise of
Outstanding Options, and
Restricted Stock Units (1)    
Weighted-average
Exercise Price of
Outstanding Options, and
Restricted Stock Units
   
Number of Securities
Available for Future
Issuance under Equity
Compensation Plans (2)  
Equity compensation plans approved by security holders
   
1,218,757    $
5.95     
2,488,016 
Equity compensation plans not approved by security holders
   
—     
—     
— 
Total
   
1,218,757    $
5.95     
2,488,016 
(1)
Consists of the 1996 Incentive and Non-Qualified Stock Option Plan and the 2010 Stock Incentive Plan.
(2)
Consists of the 2010 Stock Incentive Plan.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item 13 will be included in the 2025 Proxy Statement under the headings "Transactions with Related Persons" and
"Board of Directors – Director Independence" or in an amendment to this Annual Report on Form 10-K and is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services
The information required by this Item 14 is incorporated by reference to the section titled "Fees Billed by PricewaterhouseCoopers, LLP" in our 2025
Proxy Statement.
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PART IV
Item 15. Exhibits and Financial Statement Schedules
(a) (1) and (2). Financial Statements.
See Index to Financial Statements under Item 8 in Part II hereof where these documents are listed. All schedules for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been
omitted.
(a) (3). Exhibits.
The following is a list of exhibits:
Exhibit
No.
Description
3(a)
Amended and Restated Certificate of Incorporation of SIGA Technologies, Inc. (incorporated by reference to the Current
Report on Form 8-K of the Company filed on June 16, 2022).
 
 
 
3(b)
Amended and Restated By-laws of SIGA Technologies, Inc. (incorporated by reference to the Current Report on Form 8-K of
the Company filed on December 13, 2024).
 
 
 
4(a)
Form of Common Stock Certificate (incorporated by reference to the Form SB-2 Registration Statement of the Company
dated March 10, 1997 (No. 333-23037)).
 
 
 
4(b)
Description of the Registrant's Securities Registered pursuant to Section 12 of the Securities Exchange Act of 1934
(incorporated by reference to the Annual Report on Form 10-K of the Company filed on March 5, 2020).
 
 
 
10(a)
Securities Purchase Agreement, dated as of August 13, 2003, between the Company and MacAndrews & Forbes Holdings
Inc. (incorporated by reference to the Current Report on Form 8-K of the Company filed on August 18, 2003).
 
 
 
10(b)
Director Compensation Program, effective April 8, 2021 (incorporated by reference to the Definitive Proxy Statement on
Form DEF 14A of the Company filed on April 27, 2021).*
 
10(c)
Amended and Restated Employment Agreement, dated April 12, 2016, between SIGA Technologies, Inc. and Daniel J.
Luckshire (incorporated by reference to the Current Report on Form 8-K of the Company filed on April 14, 2016).*
 
10(d)
Amended and Restated Employment Agreement, dated April 12, 2016, between SIGA Technologies, Inc. and Dennis E.
Hruby (incorporated by reference to the Current Report on Form 8-K of the Company filed on April 14, 2016).*
 
10(e)
Office Lease, dated as of May 26, 2017, by and between SIGA Technologies, Inc. and MacAndrews & Forbes Incorporated
(portions of this exhibit have been omitted and separately filed with the Securities and Exchange Commission with a request
for confidential treatment) (incorporated by reference to the Current Report on Form 8-K of the Company filed on May 30,
2017).
 
 
 
10(f)
Commercial Lease Agreement for Corvallis, Oregon dated November 3, 2017 (incorporated by reference to the Quarterly
Report on Form 10-Q of the Company filed on November 7, 2017).
 
10(g)
Addendum, dated August 10, 2018, to Second Amended and Restated Employment Agreement, dated April 12, 2016, between
SIGA Technologies, Inc. and Dennis E. Hruby (incorporated by reference to the Current Report on Form 8-K of the Company
filed on August 10, 2018).*
 
 
 
10(h)
Contract, dated as of September 10, 2018, between SIGA Technologies, Inc. and the Biomedical Advanced Research and
Development Authority of the United States Department of Health and Human Services (portions of this exhibit have been
omitted and separately filed with the Securities and Exchange Commission with a request for confidential treatment)
(incorporated by reference to the Current Report on Form 8-K of the Company filed on September 11, 2018).
 
 
 
10(i)
Amendment of Solicitation/Modification of Contract 0018, dated September 28, 2018 to Agreement, dated June 1, 2011,
between the Biomedical Advanced Research and Development Authority of the United States Department of Health and
Human Services and SIGA (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
November 6, 2018).
 
 
 
10(j)
Commercial Manufacturing Agreement, dated October 1, 2018, by and between Albemarle Corporation and SIGA (portions of
this exhibit have been omitted and separately filed with the Securities and Exchange Commission with a request for
confidential treatment) (incorporated by reference to the Annual Report on Form 10-K of the Company filed on March 6,
2019).
 

 
 
10(k)
Amendment of Solicitation/Modification of Contract 0001, dated February 21, 2019, to Agreement, dated September 10,
2018, between the Biomedical Advanced Research and Development Authority of the United States Department of Health and
Human Services and SIGA (incorporated by reference to the Annual Report on Form 10-K of the Company filed on March 6,
2019).
 
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10(l)
Amendment of Solicitation/Modification of Contract 0002, dated May 17, 2019, to Agreement, dated September 10, 2018 by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Current Report on Form 8-K of the Company filed on May 20, 2019).
 
 
 
10(m)
Amendment of Solicitation/Modification of Contract 0019, dated May 22, 2019, to Agreement, dated June 1, 2011 by and
between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of Health
and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K)
(incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on August 6, 2019).
 
 
 
10(n)
Promotion Agreement, dated May 31, 2019, by and between SIGA Technologies, Inc. and Meridian Medical Technologies,
Inc. (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K) (incorporated by
reference to the Current Report on Form 8-K of the Company filed on June 3, 2019).
 
 
 
10(o)
Amendment of Solicitation/Modification of Contract 0003, dated September 9, 2019, to Agreement, dated September 10,
2018 by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States
Department of Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of
Regulation S-K) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on November 5,
2019).
 
 
 
10(p)
Amendment of Solicitation/Modification of Contract 0020, dated November 19, 2019, to Agreement, dated June 1, 2011 by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Annual Report on Form 10-K of the Company filed on March 5, 2020).
 
 
 
10(q)
Amendment of Solicitation/Modification of Contract 0004, dated February 4, 2020, to Agreement, dated September 10, 2018
by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on May 6, 2020).
 
 
 
10(r)
Amendment of Solicitation/Modification of Contract 0005, dated April 29, 2020, to Agreement, dated September 10, 2018 by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on August 6, 2020).
 
 
 
10(s)
Amendment of Solicitation/Modification of Contract 00021, dated July 2, 2020, to Agreement, dated June 1, 2011 by and
between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of Health
and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K)
(incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on November 5, 2020).
 
 
 
10(t)
Amendment of Solicitation/Modification of Contract 0007, dated September 8, 2021, to Agreement, dated September 10,
2018, by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States
Department of Health and Human Services (incorporated by reference to the Quarterly Report on Form 10-Q of the Company
filed on November 4, 2021).
 
 
 
10(u)
Amendment of Solicitation/Modification of Contract 00006, dated April 29, 2021, to Agreement, dated September 10, 2018,
by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Annual Report on Form 10-K of the Company filed on March 3, 2022).
 
 
 
10(v)
Amendment of Solicitation/Modification of Contract 00008, dated December 9, 2021, to Agreement, dated September 10,
2018, by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States
Department of Health and Human Services (incorporated by reference to the Annual Report on Form 10-K of the Company
filed on March 3, 2022).
 
 
 
10(w)
Amendment of Solicitation/Modification of Contract 00022, dated November 8, 2021, to Agreement, dated June 1, 2011, by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (incorporated by reference to the Annual Report on Form 10-K of the Company filed on March 3,
2022).
 
 
 
10(x)
Amendment of Solicitation/Modification of Contract 000023, dated February 15, 2022, to Agreement, dated June 1, 2011, by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on May 5, 2022).
 
 
 
Amendment of Solicitation/Modification of Contract 00009, dated January 27, 2022, to Agreement, dated September 10,
2018, by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States

10(y)
Department of Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of
Regulation S-K) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on November 3,
2022).
 
 
 
10(z)
Amendment of Solicitation/Modification of Contract 00010, dated March 29, 2022, to Agreement, dated September 10, 2018,
by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services  (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
November 3, 2022).
 
 
 
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10(aa)
Amendment of Solicitation/Modification of Contract 000011, dated July 26, 2022, to Agreement, dated September 10, 2018,
by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services  (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
November 3, 2022).
 
 
 
10(bb)
Amendment of Solicitation/Modification of Contract 000012, dated August 5, 2022, to Agreement, dated September 10, 2018,
by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (certain portions of this exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-
K) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on November 3, 2022).
 
 
 
10(cc)
Proposal for the Amendment of the Employment Agreement with Dennis E. Hruby (portions of this exhibit have been omitted
pursuant to Item 601(b)(2)(ii) or 601(b)(10)(iv) of Regulation S-K, as applicable) (incorporated by reference to the Quarterly
Report on Form 10-Q of the Company filed on August 8, 2023).* 
 
 
 
10(dd)
Amendment of Solicitation/Modification of Contract 00013, dated July 27, 2023, to Agreement, dated September 10, 2018, by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)(10)(iv) of
Regulation S-K, as applicable) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
August 8, 2023).
 
 
 
10(ee)
Amendment of Solicitation/Modification of Contract 000024, dated September 21, 2023, to Agreement, dated June 1, 2011,
by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
November 7, 2023). 
 
 
 
10(ff)
Employment Agreement, dated January 19, 2024, between SIGA Technologies, Inc. and Diem Nguyen (incorporated by
reference to Exhibit 10.1 to the Current Report on Form 8-K of the Company filed January 22, 2024).*
 
 
 
10gg)
Amendment of Solicitation/Modification of Contract 00014, dated October 18, 2023, to Agreement, dated September 10,
2018, by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States
Department of Health and Human Services (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)
(10)(iv) of Regulation S-K, as applicable) (incorporated by reference to the Annual Report on Form 10-K of the Company
filed on March 12, 2024).
 
 
 
10(hh)
Amendment of Solicitation/Modification of Contract 00015, dated February 9, 2024, to Agreement, dated September 10,
2018, by and between SIGA and the Biomedical Advanced Research and Development Authority of the United States
Department of Health and Human Services (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)
(10)(iv) of Regulation S-K, as applicable) (incorporated by reference to the Annual Report on Form 10-K of the Company
filed on March 12, 2024).
 
 
 
10(ii)
Employment Agreement, dated February 26, 2024, between SIGA Technologies, Inc. and Larry Miller (incorporated by
reference to the Quarterly Report on Form 10-Q of the Company filed on May 7, 2024).*
 
 
 
10(jj)
Amendment No. 1 to Promotion Agreement, dated September 10, 2020, between SIGA Technologies, Inc. and Meridian
Medical Technologies, Inc. (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on May 7,
2024).
 
 
 
10(kk)
Letter Amendment to Promotion Agreement, dated February 28, 2024, between SIGA Technologies, Inc. and Meridian
Medical Technologies, LLC  (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on May
7, 2024).
 
 
 
10(ll)
Letter Amendment to Promotion Agreement, dated March 26, 2024, between SIGA Technologies, Inc. and Meridian Medical
Technologies, LLC (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on May 7, 2024).  
 
 
10(mm)
Amendment No. 2 to Promotion Agreement, dated March 27, 2024, between SIGA Technologies, Inc. and Meridian Medical
Technologies, LLC (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)(10)(iv) of Regulation
S-K, as applicable) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on May 7, 2024).  
 
 
10(nn)
SIGA Technologies, Inc. 2010 Stock Incentive Plan (amended and restated effective May 23, 2017).
 
 
 
10(oo)
Form of Stock Option Grant Agreement under the SIGA Technologies, Inc. 2010 Stock Incentive Plan (amended and restated
effective May 23, 2017) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on August 1,
2024).*
 
 
 
10(pp)
Form of Restricted Stock Unit Grant Agreement under the SIGA Technologies, Inc. 2010 Stock Incentive Plan (amended and
restated effective May 23, 2017) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
August 1, 2024).*
 

 
 
10(qq)
Form of Performance Stock Unit Grant Agreement under the SIGA Technologies, Inc. 2010 Stock Incentive Plan (amended
and restated effective May 23, 2017) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed
on August 1, 2024).*
 
 
 
10(rr)
Form of Non-Employee Directors Restricted Stock Unit Grant Agreement under the SIGA Technologies, Inc. 2010 Stock
Incentive Plan (amended and restated effective May 23, 2017) (incorporated by reference to the Quarterly Report on Form 10-
Q of the Company filed on August 1, 2024).*
 
 
 
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Table of Contents
 
 
10(ss)
Form of Indemnification Agreement for Directors and Officers (incorporated by reference to the Quarterly Report on Form
10-Q of the Company filed on August 1, 2024).
 
 
 
10(tt)
Amendment of Solicitation/Modification of Contract 00016, dated July 18, 2024, to Agreement, dated September 10, 2018, by
and between SIGA and the Biomedical Advanced Research and Development Authority of the United States Department of
Health and Human Services (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)(10)(iv) of
Regulation S-K, as applicable) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
August 1, 2024).
 
 
 
10(uu)
Amendment to Amended and Restated Employment Agreement between SIGA Technologies, Inc. and Daniel J. Luckshire,
dated as of October 1, 2024 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Company
filed on October 4, 2024).*
 
 
 
10(vv)
Second Amendment to Third Amended and Restated Employment Agreement between SIGA Technologies, Inc. and Dennis E.
Hruby, dated as of October 1, 2024 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K of the
Company filed on October 4, 2024).*
 
 
 
10(ww)
Consulting Agreement, dated October 19, 2020, between SIGA Technologies, Inc. and Tides Group, LLC  (portions of this
exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)(10)(iv) of Regulation S-K, as applicable) (incorporated by
reference to the Quarterly Report on Form 10-Q of the Company filed on November 7, 2024).
 
 
 
10(xx)
Amendment #1, dated September 1, 2022, to the Consulting Agreement, dated October 19, 2020, between SIGA
Technologies, Inc. and Tides Group, LLC (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)
(10)(iv) of Regulation S-K, as applicable) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company
filed on November 7, 2024).
 
 
 
10(yy)
Statement of Work #1, dated October 19, 2020, between SIGA Technologies, Inc. and Tides Group, LLC (incorporated by
reference to the Quarterly Report on Form 10-Q of the Company filed on November 7, 2024).
 
 
 
10(zz)
Amendment #1, dated September 26, 2024, to Statement of Work #1, dated October 19, 2020, between SIGA Technologies,
Inc. and Tides Group, LLC (portions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) or 601(b)(10)(iv) of
Regulation S-K, as applicable) (incorporated by reference to the Quarterly Report on Form 10-Q of the Company filed on
November 7, 2024).
 
 
 
10(aaa)
Amendment, dated August 30, 2024, to Promotion Agreement, dated May 31, 2019, by and between SIGA Technologies, Inc.
and Meridian Medical Technologies, Inc. (incorporated by reference to the Quarterly Report on Form 10-Q of the Company
filed on November 7, 2024).
 
 
 
19.1
SIGA Technologies, Inc. Insider Trading Policy
 
 
 
23.1
Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm.
 
 
 
31.1
Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002-Chief Executive Officer.
 
 
 
31.2
Certification pursuant to Rules 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002-Chief Financial Officer.
 
 
 
32.1
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002-
Chief Executive Officer.
 
 
 
32.2
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002-
Chief Financial Officer.
 
 
 
97.1
SIGA Technologies, Inc. Clawback Policy (incorporated by reference to Exhibit 97.1 to the Annual Report on Form 10-K of
the Company filed March 12, 2024).
 
101.INS
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags
are embedded within the Inline XBRL document)
 
 
 
101.SCH
Inline Taxonomy Extension Schema Document
 
 
 
101.CAL
Inline Taxonomy Extension Calculation Linkbase Document
 
 
 
101.DEF
Inline Taxonomy Extension Definition Linkbase Document
 
 
 
101.LAB
Inline Taxonomy Extension Labels Linkbase Document
 

 
 
101.PRE
Inline Taxonomy Extension Presentation Linkbase Document
 
 
 
104
Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)
 
* management contract, compensatory plan or arrangement.
72

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Item 16. Form 10-K Summary
None.
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SIGNATURES
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.
 
SIGA TECHNOLOGIES, INC.
 
(Registrant)
 
 
Date:
March 11, 2025
By:
/s/ Diem Nguyen, Ph.D.
 
 
Diem Nguyen, Ph.D.
 
 
Chief Executive 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
  Title of Capacities
  Date
/s/ Diem Nguyen, Ph.D.
 
  March 11, 2025
Diem Nguyen, Ph.D.
  Chief Executive Officer and Director
   
  (Principal Executive Officer)
   
/s/ Daniel J. Luckshire
 
   
Daniel J. Luckshire
  Executive Vice President and
  March 11, 2025
  Chief Financial Officer
   
  (Principal Financial Officer and
   
  Principal Accounting Officer)
   
   
   
/s/ Jaymie Durnan
   
   
Jaymie Durnan
  Director
  March 11, 2025
   
   
/s/ Harold E. Ford, Jr.
   
   
Harold E. Ford, Jr.
  Director
  March 11, 2025
   
   
/s/ Joseph Marshall
   
   
Joseph Marshall
  Director
  March 11, 2025
   
   
/s/ Gary J. Nabel
   
   
Gary J. Nabel
  Director
  March 11, 2025
   
   
/s/ Julian Nemirovsky
   
   
Julian Nemirovsky
  Director
  March 11, 2025
   
   
/s/ Holly L. Phillips
   
   
Holly L. Phillips
  Director
  March 11, 2025
74

Exhibit 10(nn)
SIGA TECHNOLOGIES, INC.
2010 STOCK INCENTIVE PLAN
(as amended and restated, effective May 23, 2017)
ARTICLE I
    General
1.1    Purpose
The purpose of the SIGA Technologies, Inc. 2010 Stock Incentive Plan (the “Plan”) is to establish a flexible vehicle through which SIGA
Technologies, Inc., a Delaware corporation (the “Company”), may offer equity-based compensation incentives to eligible personnel of the Company and its
subsidiaries in order to attract, motivate, reward and retain such personnel and to further align the interests of such personnel with those of the stockholders of
the Company.
1.2    Administration
(a)    Administration by Committee; Constitution of Committee. The Plan shall be administered by the Compensation Committee of the
Board of Directors of the Company (the “Board”) or such other committee or subcommittee as the Board may designate (the “Committee”). The members of
the Committee shall be appointed by, and serve at the pleasure of, the Board. If the Committee does not exist, or for any other reason determined by the Board,
the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.
(b)    Committee’s Authority. The Committee shall have the authority to (i) exercise all of the powers granted to it under the Plan, (ii)
construe, interpret and implement the Plan and any award certificates issued under the Plan, (iii) prescribe, amend and rescind rules and regulations relating to
the Plan, including rules governing its own operations, (iv) make all determinations necessary or advisable in administering the Plan, (v) correct any defect,
supply any omission and reconcile any inconsistency in the Plan, and (vi) amend the Plan to reflect changes in applicable law.
(c)    Committee Action; Delegation. Actions of the Committee shall be taken by the vote of a majority of its members. Except as otherwise
required by applicable law, any action may be taken by a written instrument signed by a majority of the Committee members, and action so taken shall be fully
as effective as if it had been taken by a vote at a meeting. Notwithstanding the foregoing or any other provision of the Plan, the Committee (or the Board acting
instead of the Committee), may delegate to one or more officers of the Company the authority to designate the individuals (other than such officer(s)), among
those eligible to receive awards pursuant to the terms of the Plan, who will receive rights or options under the Plan and the size of each such grant, to the fullest
extent permitted by applicable law.
(d)    The determination of the Committee on all matters relating to the Plan or any award under the Plan shall be final, binding and
conclusive.
(e)    Limit on Committee Members’ Liability. No member of the Committee shall be liable for any action or determination made in good
faith with respect to the Plan or any award thereunder.
1.3    Persons Eligible for Awards
The persons eligible to receive awards under the Plan are those officers, directors (whether or not they are employed by the Company), and salaried
employees of, and consultants to, the Company and any direct or indirect subsidiaries (collectively, “key persons”) as the Committee in its absolute discretion
shall select.
1.4    Types of Awards Under Plan
Awards may be made under the Plan in the form of (a) incentive stock options, (b) non-qualified stock options, (c) stock appreciation rights, (d)
restricted stock, (e) restricted stock units and (f) unrestricted stock, all as more fully set forth in Article II. The term “award” means any of the foregoing. No
incentive stock option may be granted to a person who is not an employee of the Company or one of its subsidiary corporations on the date of grant.
1.5    Shares Available for Awards; Adjustments to Awards
(a)    Aggregate Number Available; Certificate Legends. The Plan, as originally adopted, authorized the issuance of up to 2,000,000 shares of
common stock of the Company, par value $0.0001 per share (“Common Stock”), which was increased by 2,500,000 shares to an aggregate of 4,500,000 shares
as of April 25, 2012, and was additionally increased by 4,000,000 shares to an aggregate of 8,500,000 shares, effective as of May 23, 2017. The number of
shares authorized for issuance under the Plan is subject to adjustment as provided under Section 1.5(d)(i) below.
(b)    Individual Limits. Except as provided in this Section 1.5(b), no provision of this Plan shall be deemed to limit the number or value of
shares otherwise available for awards under the Plan with respect to which the Committee may make awards to any one eligible person. Subject to adjustment
as provided in Section 1.5(d)(i) hereof, the total number of shares of Common Stock with respect to which awards may be granted to any one employee of the
Company or a subsidiary during any one calendar year shall not exceed 1,000,000 shares. Stock options and stock appreciation rights granted and subsequently
canceled or deemed to be canceled in a calendar year shall count against this limit even after their cancellation.
(c)    Certain Shares to Become Available Again. The following shares of Common Stock shall again become available for awards under the
Plan: (i) any shares that are subject to an award under the Plan and that remain unissued upon the cancellation or termination of such award for any reason
whatsoever, (ii) any shares subject to awards that are settled in cash, (iii) any shares subject to an award that are withheld or surrendered in order to pay the
exercise or purchase price under an award or to satisfy the tax withholding obligations associated with the exercise, vesting or settlement of an award and (iv)
any shares of restricted stock forfeited pursuant to the terms of the Plan or the award, provided that any dividends paid on such shares are also forfeited. With

respect to stock appreciation rights, only the shares that actually are issued in settlement of a stock appreciation right shall be counted against the limits of
Sections 1.5(a) and (b).
(d)    Adjustments to Available Shares and Existing Awards Upon Changes in Common Stock or Certain Other Events. Upon certain changes
in Common Stock or other corporate events, the number of shares of Common Stock available for issuance with respect to awards that may be granted under
the Plan, and that are the subject of existing awards, shall be adjusted or shall be adjustable, as follows:
(i)    Shares Available for Grants. In the event of any change in the number of shares of Common Stock outstanding by reason of any
stock dividend or split, reverse stock split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate
change, the maximum number of shares of Common Stock with respect to which the Committee may grant awards under Section 1.5(a)
above and the annual individual limit under Section 1.5(b) above, shall be appropriately adjusted by the Committee. In the event of any
change in the number of shares of Common Stock outstanding by reason of any other event or transaction, the Committee may, but need not,
make such adjustments in the maximum number and class of shares of Common Stock with respect to which the Committee may grant
awards under Section 1.5(a) above and the annual individual limit under Section 1.5(b) above, in each case as the Committee may deem
appropriate.
(ii)    Outstanding Restricted Stock and Restricted Stock Units. Unless the Committee in its absolute discretion otherwise
determines, any securities or other property (including dividends paid in cash) received by a grantee with respect to a share of restricted
stock, which has not yet vested, as a result of any dividend, stock split, reverse stock split, recapitalization, merger, consolidation,
combination, exchange of shares or otherwise, will not vest until such share of restricted stock vests, and shall be promptly deposited with the
Company. The Committee shall adjust outstanding grants of shares of restricted stock units to reflect any corporate event as the Committee
may deem appropriate to prevent the enlargement or dilution of rights of grantees.
(iii)    Outstanding Options and Stock Appreciation Rights – Increase or Decrease in Issued Shares Without Consideration. Subject
to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of
Common Stock resulting from a subdivision or consolidation of shares of Common Stock or the payment of a stock dividend (but only on the
shares of Common Stock), or any other increase or decrease in the number of such shares effected without receipt of consideration by the
Company, the Committee shall proportionally adjust the number of shares of Common Stock subject to each outstanding option and stock
appreciation right and the exercise price-per-share of Common Stock of each such option and stock appreciation right, to the extent necessary
to prevent the enlargement or dilution of rights with respect to such options and stock appreciation rights.
(iv)    Outstanding Options, Stock Appreciation Rights and Restricted Stock Units – Certain Mergers. Subject to any required action
by the shareholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except
a merger or consolidation as a result of which the holders of shares of Common Stock receive securities of another corporation), each option,
stock appreciation right and restricted stock unit outstanding on the date of such merger or consolidation shall pertain to and apply to the
securities which a holder of the number of shares of Common Stock subject to such option, stock appreciation right and restricted stock unit
would have received in such merger or consolidation.
(v)    Outstanding Options, Stock Appreciation Rights and Restricted Stock Units – Certain Other Transactions. In the event of (1) a
dissolution or liquidation of the Company, (2) a merger or consolidation involving the Company in which the Company is not the surviving
corporation or (3) a merger or consolidation involving the Company in which the Company is the surviving corporation but the holders of
shares of Common Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its absolute
discretion, either:
(A)    cancel, effective immediately prior to such event, each option, stock appreciation right and restricted stock unit
outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to
the grantee (1) to whom such option or stock appreciation right was granted an amount in cash, for each share of Common Stock
subject to such option or stock appreciation right, equal to the excess of (x) the value, as determined by the Committee in its
absolute discretion, of the property (including cash) received by the holder of a share of Common Stock as a result of such event
over (y) the exercise price of such option or stock appreciation right and (2) to whom such restricted stock unit was granted, for each
share of Common Stock subject to such award, the value, as determined by the Committee in its sole discretion, of the property
(including cash) received by the holder of a share of Common Stock as a result of such event;
(B)    (1) cause all options and stock appreciation rights, whether or not otherwise exercisable, to be fully exercisable on a
date at least 10 days prior to the completion of such event, and to expire as of the completion of such event and (2) cancel, effective
immediately prior to the completion of such event, each restricted stock unit outstanding immediately prior to such event (whether
or not then vested), and, in full consideration of such cancellation, pay to the grantee to whom such restricted stock unit was granted,
for each share of Common Stock subject to such award, the value, as determined by the Committee in its sole discretion, of the
property (including cash) received by the holder of a share of Common Stock as a result of such event; or
(C)    if the acquiring or successor entity is publicly traded on a major securities exchange, provide for the exchange of each
option, stock appreciation right and restricted stock unit outstanding immediately prior to such event (whether or not then
exercisable) for an option, stock appreciation right or restricted stock unit with respect to, as appropriate, the number of shares of
stock in such acquiring or successor entity which a holder of the number of shares of Common Stock subject to such award would
have received and, incident thereto, make an equitable adjustment as determined by the Committee in its absolute discretion in the
exercise price of the option or stock appreciation right or the number of shares or amount of property subject to the option, stock
appreciation right or restricted stock unit or, if appropriate, provide for a cash payment to the grantee to whom such option, stock
appreciation right or restricted stock unit was granted in partial consideration for the exchange of the option, stock appreciation right
or restricted stock unit.

(vi)    Outstanding Options, Stock Appreciation Rights and Restricted Stock Units – Other Changes. In the event of any change in
the capitalization of the Company or a corporate change other than those specifically referred to in Section 1.5(d)(iii), (iv) or (v) above, the
Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to options, stock appreciation
rights and restricted stock units outstanding on the date on which such change occurs and in the per-share exercise price of each such option
or stock appreciation right as the Committee may consider appropriate to prevent dilution or enlargement of rights. In addition, if and to the
extent the Committee determines it is appropriate, the Committee may elect to cancel each option, stock appreciation right and restricted
stock unit outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay
to the grantee to whom such option, stock appreciation right and restricted stock unit was granted an amount in cash, (1) for each share of
Common Stock subject to such option or stock appreciation right, equal to the excess of (x) the Fair Market Value of Common Stock on the
date of such cancellation over (y) the exercise price of such award and (2) for each share of Common Stock subject to such restricted stock
unit, equal to the Fair Market Value of a share of Common Stock on the date of such cancellation.
(vii)    No Other Rights. Except as expressly provided in the Plan, no grantee shall have any rights by reason of any subdivision or
consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any
class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as expressly provided in the
Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to an award or the exercise
price of any option or stock appreciation right.
1.6    Definitions of Certain Terms
(a)    The term “Cause” shall have the meaning set forth in any employment agreement between the Participant and the Company in effect as
of the date the event giving rise to cause occurred. In the absence of such an employment agreement provision, “Cause” shall mean: (i) the Participant's
conviction of any crime (whether or not involving the Company) constituting a felony in the jurisdiction involved; (ii) conduct of the Participant related to the
Participant's employment for which either criminal or civil penalties against the Participant or the Company may be sought; (iii) material violation of the
Company's policies, including, without limitation, those relating to sexual harassment, the disclosure or misuse of confidential information, or those set forth in
Company manuals or statements of policy; (iv) serious neglect or misconduct in the performance of the Participant's duties for the Company or willful or
repeated failure or refusal to perform such duties; or (v) any material violation by the Participant of the terms of any agreement between the Participant and the
Company, including, without limitation, any employment or non-competition agreement. Any rights the Company may have hereunder in respect of the events
giving rise to Cause shall be in addition to the rights the Company may have under any other agreement with a Participant or at law or in equity. Any
determination of whether a Participant's employment is (or is deemed to have been) terminated for Cause shall be made by the Committee in its sole discretion,
which determination shall be final and binding on all parties. If, subsequent to a Participant's termination of employment (whether voluntary or involuntary)
without Cause, it is discovered that the Participant's employment could have been terminated for Cause, such Participant's employment shall be deemed to have
been terminated for Cause. A Participant's termination of employment for Cause shall be effective as of the date of the occurrence of the event giving rise to
Cause, regardless of when the determination of Cause is made.
(b)    The term “employment” shall be deemed to mean an employee’s employment with, or a consultant’s provision of services to, the
Company or any Company subsidiary and each Board member’s service as a Board member.
(c)    The “Fair Market Value” of a share of Common Stock on any day shall be the last sale price on such date on the Nasdaq Stock Market,
or, if no reported sales take place on the applicable date, the average of the high bid and low asked price of Common Stock on such date or, if no such quotation
is made on such date, on the next preceding day on which there were quotations, provided that such quotations shall have been made within the ten (10)
business days preceding the applicable date, and if there is no such quotation, the Fair Market Value shall be determined in good faith by the Committee in a
manner consistently applied.
(d)    The term “incentive stock option” means an option that is intended to qualify for special federal income tax treatment pursuant to
Sections 421 and 422 of the Code as now constituted or subsequently amended, or pursuant to a successor provision of the Code, and which is so designated in
the applicable award certificate. Any option that is not specifically designated as an incentive stock option shall under no circumstances be considered an
incentive stock option. Any option that is not an incentive stock option is referred to herein as a “non-qualified stock option”.
(e)    In relation to the Company, the term “subsidiary corporation” shall be defined in accordance with Sections 424(f) of the Code.
(f)    A grantee shall be deemed to have “terminated employment” on (i) the date the grantee ceases to be employed by, or to provide
consulting services for, the Company or any Company subsidiary, or any corporation (or any of its subsidiaries) which assumes the grantee’s award in a
transaction to which Section 424(a) of the Code applies; or (ii) the date the grantee ceases to be a Board member, provided, however, that in the case of a
grantee (x) who is, at the time of reference, both an employee or consultant and a Board member, or (y) who ceases to be engaged as an employee, consultant
or Board member and immediately is engaged in another of such relationships with the Company or any Company subsidiary, the grantee shall be deemed to
have a “termination of employment” upon the later of the dates determined pursuant to clauses (i) and (ii) of this Section 1.6(f). For purposes of clause (i) of
this Section 1.6(f), a grantee who continues his or her employment or consulting relationship with a Company subsidiary subsequent to its sale by the Company
shall have a termination of employment upon the date of such sale. The Committee may in its absolute discretion determine whether any leave of absence
constitutes a termination of employment for purposes of the Plan and the impact, if any, of any such leave of absence on awards theretofore made under the
Plan.
ARTICLE II
    Awards Under the Plan
2.1    Certificates Evidencing Awards
Each award granted under the Plan shall be evidenced by a written certificate (“award certificate”) which shall contain such provisions as the
Committee may in its absolute discretion deem necessary or desirable. By accepting an award pursuant to the Plan, a grantee thereby agrees that the award

shall be subject to all of the terms and provisions of the Plan and the applicable award certificate.
2.2    Terms of Stock Options and Stock Appreciation Rights
(a)    Stock Option Grants. The Committee may grant incentive stock options and non-qualified stock options (collectively, “options”) to
purchase shares of Common Stock from the Company, to such key persons, and in such amounts and subject to such vesting and forfeiture provisions and other
terms and conditions, as the Committee shall determine in its absolute discretion, subject to the provisions of the Plan.
(b)    Stock Appreciation Right Grants; Types of Stock Appreciation Rights. The Committee may grant stock appreciation rights to such key
persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Committee shall determine in its sole
discretion, subject to the provisions of the Plan. The terms of a stock appreciation right may provide that it shall be automatically exercised for a cash payment
upon the happening of a specified event that is outside the control of the grantee and that it shall not be otherwise exercisable. Stock appreciation rights may be
granted in connection with all or any part of, or independently of, any option granted under the Plan. A stock appreciation right granted in connection with an
option may be granted at or after the time of grant of such option.
(c)    Nature of Stock Appreciation Rights. The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and
the applicable award certificate, to receive from the Company an amount equal to (i) the excess of the Fair Market Value of a share of Common Stock on the
date of exercise of the stock appreciation right over the stock appreciation right exercise price, which shall be an amount, not be less than the Fair Market Value
of a share of Common Stock on the date of grant, determined by the Committee and set forth in the award certificate (or over the option exercise price if the
stock appreciation right is granted in connection with an option), multiplied by (ii) the number of shares with respect to which the stock appreciation right is
exercised. Upon the exercise of a stock appreciation right granted in connection with an option, the number of shares subject to the option shall be reduced by
the number of shares with respect to which the stock appreciation right is exercised. Payment upon exercise of a stock appreciation right shall be in cash or in
shares of Common Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or both, all as the Administrator shall
determine in its sole discretion. Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares
subject to the stock appreciation right shall be reduced by the number of shares with respect to which the option is exercised.
(d)    Option Exercise Price. Each award certificate with respect to an option shall set forth the amount (the “option exercise price”) payable
by the grantee to the Company upon exercise of the option evidenced thereby. The option exercise price per share shall be determined by the Committee in its
absolute discretion; provided, however, that the option exercise price shall be at least 100% of the Fair Market Value of a share of Common Stock on the date
the option is granted, and provided further that in no event shall the option exercise price be less than the par value of a share of Common Stock.
(e)    Exercise Period. The exercise of an option or stock appreciation right shall be subject to the following:
(i)    Ten-Year Limit. No stock option or stock appreciation right shall be exercisable more than 10 years after the date of grant.
(ii)    Vesting. The Committee shall determine and set forth in the applicable award certificate the date or dates on which such option
or stock appreciation right shall become vested, which may be based on continued employment and/or the achievement of specified
performance goals.
(iii)    Beginning of Exercise Period. An option or stock appreciation right will be exercisable when it vests, and may be exercised in
whole or in part.
(iv)    End of Exercise Period. Unless the applicable award certificate otherwise provides, once an installment becomes exercisable,
it shall remain exercisable until the earlier of (A) the tenth anniversary of the date of grant of the award or (B) the expiration, cancellation or
termination of the award.
(v)    Termination of Employment – Generally. Except as otherwise provided below in this Section 2.2(c), or in the applicable award
certificate, upon a Participant’s termination of employment, the following shall apply:
(A)    Generally. If a Participant’s employment terminates for any reason other than death, disability or cause, then: (x) all
options and stock appreciation rights not yet exercisable as of the date of such termination shall expire on the date of such
termination and (y) all options and stock appreciation rights that are exercisable as of the date of such termination shall remain
exercisable for the 90-day period following such termination of employment.
(B)    Death or Disability. If a Participant’s employment terminates due to the Participant’s death or disability, then: (x) all
options and stock appreciation rights not yet exercisable as of the date of such termination shall expire on the date of such
termination and (y) all options and stock appreciation rights that are exercisable as of the date of such termination shall remain
exercisable until the first anniversary of the Participant’s termination of employment.
(C)    Cause. If a Participant’s employment is terminated for cause, all options and stock appreciation rights not theretofore
exercised shall terminate upon the commencement of business on the date of the Participant’s termination of employment.
(D)    Restrictions on Exercise Following Death. Any exercise of an option or stock appreciation right following a grantee’s
death shall be made only by the grantee’s executor or administrator or other duly appointed representative reasonably acceptable to
the Committee, unless the grantee’s will specifically disposes of such option or stock appreciation right, in which case such exercise
shall be made only by the recipient of such specific disposition. If a grantee’s personal representative or the recipient of a specific
disposition under the grantee’s will shall be entitled to exercise any option or stock appreciation right pursuant to the preceding
sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable award
certificate which would have applied to the grantee.

(vi)    Special Rules for Incentive Stock Options. No option that remains exercisable for more than three months following a
grantee’s termination of employment for any reason other than death (including death within three months after the termination of
employment or within one year after a termination due to disability) or disability, or for more than one year following a grantee’s termination
of employment as the result of disability, may be treated as an incentive stock option.
(f)    Incentive Stock Options: $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined as of the time the option
is granted) of the stock with respect to which incentive stock options are first exercisable by any employee during any calendar year shall exceed $100,000, or
such higher amount as may be permitted from time to time under Section 422 of the Code, such options shall be treated as non-qualified stock options.
(g)    Incentive Stock Options: 10% Owners. Notwithstanding the foregoing provisions of this Section 2.2, an incentive stock option may not
be granted under the Plan to an individual who, at the time the option is granted, owns stock possessing more than 10% of the total combined voting power of
all classes of stock of his or her employer or of its parent or subsidiary (as such ownership may be determined for purposes of Section 422(b)(6) of the Code)
unless (i) at the time such incentive stock option is granted the option exercise price is at least 110% of the Fair Market Value of the shares subject thereto and
(ii) the incentive stock option by its terms is not exercisable after the expiration of 5 years from the date it is granted.
2.3    Exercise of Options and Stock Appreciation Rights
Subject to the other provisions of this Article II, each option and stock appreciation right granted under the Plan shall be exercisable as follows:
(a)    Notice of Exercise. An option shall be exercised by the filing of a written notice with the Company or the Company’s designated
exchange agent (the “exchange agent”), on such form and in such manner as the Committee shall in its absolute discretion prescribe.
(b)    Payment of Option Exercise Price. Any written notice of exercise of an option shall be accompanied by payment for the shares being
purchased. Such payment shall be made: (i) by certified or official bank check (or the equivalent thereof acceptable to the Company or its exchange agent) for
the full option exercise price; or (ii) with the consent of the Committee, by delivery of shares of Common Stock owned by the grantee (whether acquired by
option exercise or otherwise, provided that if such shares were acquired pursuant to the exercise of a stock option, they were acquired at least six months prior
to the option exercise date or such other period as the Committee may from time to time determine) having a Fair Market Value (determined as of the exercise
date) equal to all or part of the option exercise price and a certified or official bank check (or the equivalent thereof acceptable to the Company or its exchange
agent) for any remaining portion of the full option exercise price; (iii) by means of a brokered cashless exercise; or (iv) at the discretion of the Committee and
to the extent permitted by law, by such other provision, consistent with the terms of the Plan, as the Committee may from time to time prescribe.
(c)    Delivery of Certificates Upon Exercise. Promptly after receiving payment of the full option exercise price, or after receiving notice of
the exercise of a stock appreciation right, the Company or its exchange agent shall deliver to the grantee or to such other person as may then have the right to
exercise the award, certificate or certificates for the shares of Common Stock for which the award has been exercised or shall establish an account evidencing
ownership of such shares in uncertificated form. If the method of payment employed upon option exercise so requires, and if applicable law permits, a grantee
may direct the Company, or its exchange agent, as the case may be, to deliver the stock certificate(s) to the grantee’s stockbroker.
(d)    No Shareholder Rights. No grantee of an option or stock appreciation right (or other person having the right to exercise such award)
shall have any of the rights of a shareholder of the Company with respect to shares subject to such award until the issuance of a stock certificate to such person
for such shares or the establishment of such account. Except as otherwise provided in Section 1.5(d) above, no adjustment shall be made for dividends,
distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date
such stock certificate is issued or such account is established.
2.4    Compensation in Lieu of Exercise of an Option
Upon written application of the grantee of an option, the Committee in its absolute discretion may determine to substitute, for the exercise of such
option, compensation to the grantee not in excess of the difference between the option exercise price and the Fair Market Value of the shares covered by such
written application on the date of such application. Such compensation shall be in shares of Common Stock, and the payment thereof may be subject to
conditions, all as the Committee shall determine in its absolute discretion. In the event compensation is substituted pursuant to this Section 2.4 for the exercise,
in whole or in part, of an option, the number of shares subject to the option shall be reduced by the number of shares for which such compensation is
substituted.
2.5    Transferability of Options and Stock Appreciation Rights
Except as otherwise provided in an applicable award certificate evidencing an option or stock appreciation right, during the lifetime of a grantee, each
option or stock appreciation right granted to a grantee shall be exercisable only by the grantee and no option or stock appreciation right shall be assignable or
transferable otherwise than by will or by the laws of descent and distribution. Any attempt to transfer any option or stock appreciation right other than as
permitted herein shall be void and immediately cancelled, and no such option or stock appreciation right shall in any manner be liable for or subject to the
debts, contracts, liabilities or torts of any person who shall be entitled to such option or stock appreciation right, nor shall any option or stock appreciation right
be subject to attachment or legal process for or against such person. The Committee may, in any applicable award certificate evidencing an option (other than
an incentive stock option to the extent inconsistent with the requirements of Section 422 of the Code applicable to incentive stock options) or stock
appreciation right, permit a grantee to transfer all or some of the options or stock appreciation rights to (A) the grantee’s spouse, children or grandchildren
(“immediate family members”), (B) a trust or trusts for the exclusive benefit of such immediate family members, or (C) other parties approved by the
Committee in its absolute discretion. Following any such transfer, any transferred options and stock appreciation rights shall continue to be subject to the same
terms and conditions as were applicable immediately prior to the transfer, and the transferee shall be subject to all obligations under the Plan as if such person
were the grantee.
2.6    Grant of Restricted Stock
(a)    Restricted Stock Grants. The Committee may grant restricted shares of Common Stock to such key persons, in such amounts and

subject to such vesting and forfeiture provisions and other terms and conditions as the Committee shall determine in its absolute discretion, subject to the
provisions of the Plan. Restricted stock awards may be made independently of or in connection with any other award under the Plan. A grantee of a restricted
stock award shall have no rights with respect to such award unless such grantee accepts the award within such period as the Committee shall specify by
accepting delivery of an award certificate in such form as the Committee shall determine and, in the event the restricted shares are newly issued by the
Company, makes payment to the Company or its exchange agent in an amount at least equal to the par value of the shares as required by the Committee and in
accordance with the applicable Delaware law.
(b)    Issuance of Stock Certificate(s). Promptly after a grantee accepts a restricted stock award, the Company or its exchange agent shall
issue to the grantee a stock certificate or stock certificates for the shares of Common Stock covered by the award or shall establish an account evidencing
ownership of the stock in uncertificated form. Upon the issuance of such stock certificate(s) or establishment of such account, the grantee shall have the rights
of a shareholder with respect to the restricted stock, subject to: (i) the nontransferability restrictions and forfeiture provision described in Sections 2.6(d) and
2.6(e) below; (ii) in the Committee’s absolute discretion, a requirement that any dividends paid on such shares shall be held in escrow until all restrictions on
such shares have lapsed; and (iii) any other restrictions and conditions contained in the applicable award certificate.
(c)    Custody of Stock Certificate(s). Unless the Committee shall otherwise determine, any stock certificates issued evidencing shares of
restricted stock shall remain in the possession of the Company until such shares are free of any restrictions specified in the applicable award certificate. The
Committee may direct that such stock certificate(s) bear a legend setting forth the applicable restrictions on transferability and that any such account include
electronic coding indicating such restrictions.
(d)    Nontransferability. Shares of restricted stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of
except as otherwise specifically provided in the Plan or the applicable award certificate. The Committee at the time of grant shall specify the date or dates
(which may depend upon or be related to a period of continued employment with the Company, the attainment of performance goals or other conditions or a
combination of such conditions) on which the nontransferability of the restricted stock shall lapse.
(e)    Forfeiture Upon Termination of Employment. Except as may otherwise be provided by the Committee in a award certificate or
otherwise, a grantee’s termination of employment for any reason (including death) shall cause the immediate forfeiture of all shares of restricted stock that have
not yet vested as of the date of such termination of employment. Unless the Committee determines otherwise, all dividends paid on such shares also shall be
forfeited, whether by termination of any escrow arrangement under which such dividends are held, by the grantee’s repayment of dividends received directly,
or otherwise.
2.7    Grant of Unrestricted Stock
The Committee may grant (or sell at a purchase price at least equal to par value) shares of Common Stock free of restrictions under the Plan, to such
key persons and in such amounts as the Committee shall determine in its absolute discretion. Shares may be thus granted or sold in respect of past services or
other valid consideration.
2.8    Grant of Restricted Stock Units
(a)    Restricted Stock Unit Grants. The Committee may grant restricted stock units to such key persons, in such amounts, and subject to such
terms and conditions as the Committee shall determine in its sole discretion, subject to the provisions of the Plan. Restricted stock units may be awarded
independently of or in connection with any other award under the Plan. A grantee of a restricted stock unit shall have no rights with respect to such award
unless such grantee accepts the award within such period as the Committee shall specify by accepting delivery of a Grant Certificate in such form as the
Committee shall determine. A grant of a restricted stock unit entitles the grantee to receive a share of Common Stock or, in the sole discretion of the
Committee, the value of a share, on a date specified in the award certificate.  If no date is specified, the grantee shall receive such share or value on the date
that the restricted stock unit vests.
(b)    Vesting/Nontransferability.  The Committee shall specify at the time of grant the date or dates (which may depend upon or be related to
a period of continued employment with the Company, the achievement of performance goals or other conditions or a combination of such conditions) on which
the restricted stock units shall vest.  Restricted stock units may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as
otherwise specifically provided in the applicable award certificate.
(c)    Consequence of Termination of Employment. Except as may otherwise be provided by the Committee in a award certificate or
otherwise, a grantee’s termination of employment for any reason (including death) shall cause the immediate forfeiture of all restricted stock units that have not
yet vested prior to, and do not vest on account of, such termination of employment.
(d)    Shareholder Rights.  The grantee of a restricted stock unit will have the rights of a shareholder only as to shares for which a stock
certificate has been issued pursuant to the award and not with respect to any other shares subject to the award.
2.9    Right of Recapture
(a)         If at any time after the date on which a grantee has been granted or become vested in an award pursuant to the achievement of
performance goals, the Committee determines that the earlier determination as to the achievement of the performance goals was based on incorrect data and
that in fact the performance goals had not been achieved or had been achieved to a lesser extent than originally determined, then (i) any award or portion of an
award granted based on such incorrect determination shall be forfeited, (ii) any award or portion of an award that became vested based on such incorrect
determination shall be deemed to be not vested, and (iii) any amounts paid to the grantee based on such incorrect determination shall be paid by the grantee to
the Company upon notice from the Company.
(b)         All awards under the Plan shall be subject to any clawback policies adopted by the Company.
ARTICLE III

    Miscellaneous
3.1    Amendment of the Plan; Modification of Awards
(a)    Amendment of the Plan. The Board may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever,
except that no such amendment shall materially impair any rights or materially increase any obligations under any award theretofore made under the Plan
without the consent of the grantee (or, upon the grantee’s death, the person having the right to exercise the award). For purposes of this Section 3.1, any action
of the Board or the Committee that in any way alters or affects the tax treatment of any award or that in the absolute discretion of the Board is necessary to
prevent an award from being subject to tax under Section 409A of the Code shall not be considered to materially impair any rights of any grantee. The Board
shall determine, in its absolute discretion, whether to submit any amendment of the Plan to stockholders for approval; in making such determination it is
expected that the Board will take into account the prerequisites for favorable tax treatment to the Company and grantees of awards made under the Plan, and
such other considerations as the Board deems relevant.
(b)    Modification of Awards. The Committee may cancel any award under the Plan. The Committee also may amend any outstanding award
certificate, including, without limitation, by amendment which would: (i) accelerate the time or times at which the award becomes unrestricted or vested or
may be exercised; (ii) waive or amend any goals, restrictions or conditions set forth in the award certificate; or (iii) waive or amend any applicable provision of
the Plan or award certificate with respect to the termination of the award upon termination of employment, provided however, that no such amendment may
lower the exercise price of an outstanding option or stock appreciation right. However, any such cancellation or amendment (other than an amendment pursuant
to Section 1.5(d)) above that materially impairs the rights or materially increases the obligations of a grantee under an outstanding award shall be made only
with the consent of the grantee (or, upon the grantee’s death, the person having the right to exercise the award).
3.2    Consent Requirement
(a)    No Plan Action without Required Consent. If the Committee shall at any time determine that any Consent (as defined in Section 3.2(b)
below) is necessary or desirable as a condition of, or in connection with, the granting of any award under the Plan, the issuance or purchase of shares or
exercise of other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a “Plan action”), then such
Plan action shall not be taken or permitted, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the
Committee.
(b)    Consent Defined. The term “Consent” as used herein with respect to any Plan action means (i) any and all listings, registrations or
qualifications in respect thereof upon any securities exchange or under any federal, state or local law, rule or regulation, (ii) any and all written agreements and
representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Committee shall deem necessary or
desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing,
qualification or registration be made and (iii) any and all consents, clearances and approvals in respect of a Plan action by any governmental or other regulatory
bodies.
(c)    Representations, Legend. The Committee may require as a condition to the receipt of shares of Common Stock pursuant to an award
under the Plan that the grantee or any other person receiving shares pursuant to the award represent that such person is not acquiring the shares with a view to
distribution thereof and to make such other securities law related representations as the Committee shall request. In addition to any legend required by the Plan,
any certificate representing Common Stock acquired in respect of an award may bear such legends as the Company deems advisable to assure compliance with
all applicable laws and regulations.
3.3    Nonassignability
(a)    General. Except as expressly provided herein or by the terms of an award certificate: (a) no award or right granted to any person under
the Plan or under any award certificate shall be assignable or transferable other than by will or by the laws of descent and distribution; and (b) all rights granted
under the Plan or any award certificate shall be exercisable during the life of the grantee only by the grantee or the grantee’s legal representative.
(b)    Payment to Minors, Etc. Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable of receipt
thereof shall be deemed paid when paid to such person's guardian or to the party providing or reasonably appearing to provide for the care of such person, and
such payment shall fully discharge the Committee, the Board, the Company, its affiliates and their employees, agents and representatives with respect thereto.
3.4    Requirement of Notification of Election Under Section 83(b) of the Code
If any grantee shall, in connection with the acquisition of shares of Common Stock under the Plan, make the election permitted under Section 83(b) of
the Code (i.e., an election to include in gross income in the year of transfer the amounts specified in Section 83(b)), such grantee shall notify the Company of
such election within 10 days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to
regulations issued under the authority of Code Section 83(b).
3.5    Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code
Each grantee of an incentive stock option shall notify the Company of any disposition of shares of Common Stock issued pursuant to the exercise of
such option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions), within 10 days of such disposition.
3.6    Withholding Taxes
(a)    With Respect to Cash Payments. Whenever cash is to be paid pursuant to an award under the Plan, the Company shall be entitled to
deduct therefrom an amount sufficient in its opinion to satisfy all federal, state and other governmental tax withholding requirements related to such payment.
(b)    With Respect to Delivery of Common Stock. Whenever shares of Common Stock are to be delivered pursuant to an award under the

Plan, the Company shall be entitled to require as a condition of delivery that the grantee remit to the Company an amount sufficient in the opinion of the
Company to satisfy all federal, state and other governmental tax withholding requirements related thereto. In lieu of such a cash remittance by the Participant,
the Committee may elect to withhold from delivery shares having a value equal to the amount of tax to be withheld. Such shares shall be valued at their Fair
Market Value as of the date on which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash. Such a withholding
election may be made with respect to all or any portion of the shares to be delivered pursuant to an award.
3.7    Section 162(m)
(a)    Qualified Performance-Based Compensation. The Committee may cause awards granted to individuals that it anticipates might be
“162(m) covered employees” (as defined below), or to any other grantee, to be “qualified performance-based compensation” within the meaning of Code
Section 162(m), by subjecting the granting and/or vesting of the award to the attainment of one or more pre-established objective performance goals during a
performance period, as set forth below.
(i)    Covered Employees. A “162(m) covered employee” is a “covered employee” within the meaning of Section 162(m)(3) of the
Code. Currently, that includes any individual who, as of the last day of the Company’s taxable year for which the compensation related to an
award would be deductible (without regard to Section 162(m)), is (A) the chief executive officer of the Company (or is acting in such
capacity) or (B) one of the three highest compensated officers of the Company other than the chief executive officer and the chief financial
officer. Whether an individual is a 162(m) covered employee shall be determined in accordance with applicable regulations under Section
162(m) of the Code.
(ii)    Performance Goals. Prior to the ninety-first (91st) day of the applicable performance period or during such other period as may
be permitted under Section 162(m) of the Code, the Committee shall establish one or more objective performance goals with respect to such
performance period. Such performance goals may be based on one or more of cash balance; stock price or shareholder return; shareholders’
equity, or a related derivation; proceeds or revenues from a government contract; annual or cumulative operating income, or a related
derivation; new government contracts; completion of a material transaction; key regulatory milestones; key commercial or operational
milestones; and key performance milestones within a government contract. Each such performance goal may (1) be expressed with respect to
the Company as a whole or with respect to one or more divisions or business units, (2) be expressed on a pre-tax or after-tax basis, (3) be
expressed on an absolute and/or relative basis, (4) employ comparisons with past performance of the Company (including one or more
divisions) and/or (5) employ comparisons with the current or past performance of other companies.
To the extent applicable, the measures used in performance goals set under the Plan shall be determined in accordance with generally
accepted accounting principles (“GAAP”) and in a manner consistent with the methods used in the Company’s regular reports on Forms 10-K
and 10-Q, provided, however, unless otherwise determined by the Committee consistent with the requirements of Section 162(m)(4)(C) and
the regulations thereunder, that such determination shall be without regard to any items of gain, loss or expense for a fiscal year that are
related to special, unusual or non-recurring items, events or circumstances affecting the Company or the financial statements of the
Company; the disposal of a business or discontinued operations; the operations of any business acquired by Company during the fiscal year;
and changes in accounting principles or to changes in applicable law or regulations.
(iii)    Performance Period. The Committee in its sole discretion shall determine the length of each performance period.
(b)    Nonqualified Deferred Compensation. Notwithstanding any other provision hereunder, if and to the extent that the Committee
determines the Company’s federal tax deduction in respect of an award may be limited as a result of Section 162(m) of the Code, the Committee may take the
following actions:
(i)    With respect to options or stock appreciation rights, the Committee may delay the exercise or payment, as the case may be, in
respect of such options or stock appreciation rights until a date that is within 30 days after the date that compensation paid to the grantee no
longer is subject to the deduction limitation under Section 162(m) of the Code. In the event that a grantee exercises an option or stock
appreciation right at a time when the grantee is a 162(m) covered employee, and the Committee determines to delay the exercise or payment,
as the case may be, in respect of such award, the Committee shall credit cash or, in the case of an amount payable in Common Stock, the Fair
Market Value of the Common Stock, payable to the grantee to a book account. The grantee shall have no rights in respect of such book
account and the amount credited thereto shall not be transferable by the grantee other than by will or laws of descent and distribution. The
Committee may credit additional amounts to such book account as it may determine in its sole discretion. Any such book account shall
represent only an unfunded, unsecured promise by the Company to pay the amount credited thereto to the grantee in the future.
(ii)    With respect to restricted stock, restricted stock units or unrestricted stock, the Committee may require the grantee to surrender
to the Committee any award certificates with respect to such awards, in order to cancel the awards of such restricted stock, restricted stock
units and/or unrestricted. In exchange for such cancellation, the Committee shall credit to a book account a cash amount equal to the Fair
Market Value of the shares of Common Stock subject to such awards. The amount credited to the book account shall be paid to the grantee
within 30 days after the date that compensation paid to the grantee no longer is subject to the deduction limitation under Section 162(m) of
the Code. The grantee shall have no rights in respect of such book account and the amount credited thereto shall not be transferable by the
grantee other than by will or laws of descent and distribution. The Committee may credit additional amounts to such book account as it may
determine in its sole discretion. Any such book account shall represent only an unfunded, unsecured promise by the Company to pay the
amount credited thereto to the grantee in the future.
3.8    Employment Provisions
(a)    Right of Discharge Reserved. Nothing in the Plan or in any award certificate shall confer upon any grantee the right to continue
employment with the Company or any affiliated entity or affect any right which the Company or any affiliated entity may have to terminate such employment.
(b)    Confidentiality. The acceptance of an award by a grantee shall be deemed to be a covenant by the grantee that he or she will not disclose

to anyone outside the Company or its affiliates, or use in any manner other than in the furtherance of the Company's or its affiliate's business, without written
authorization from the Company, any confidential information or proprietary information relating to the business of the Company or its affiliates that is
acquired by a grantee prior to the grantee's termination of employment.
3.9    Nature of Payments
(a)    Consideration for Services Performed. Any and all grants of awards and issuances of shares of Common Stock under the Plan shall be in
consideration of services performed for the Company by the grantee.
(b)    Not Taken into Account for Benefits. All such grants and issuances shall constitute a special incentive payment to the grantee and shall
not be taken into account in computing the amount of salary or compensation of the grantee for the purpose of determining any benefits under any pension,
retirement, profit-sharing, bonus, life insurance or other benefit plan of the Company or under any agreement between the Company and the grantee, unless
such plan or agreement specifically otherwise provides.
3.10    Non-Uniform Determinations
The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or who are
eligible to receive, awards under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee
shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective award certificates, as to
(a) the persons to receive awards under the Plan, (b) the terms and provisions of awards under the Plan, and (c) the treatment of leaves of absence pursuant to
Section 1.6(f) above.
3.11    Severability of Provisions
If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and
this Plan shall be construed and enforced as if such provisions had not been included.
3.12    Other Payments or Awards
Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company from making any award or payment to any person under
any other plan, arrangement or understanding, whether now existing or hereafter in effect.
3.13    Headings
Any Article, Section or other subdivision headings contained herein are for the purpose of convenience only and are not intended to expand, limit or
otherwise define the contents of such subdivisions.
3.14    Effective Date and Term of Plan
(a)    Adoption; Shareholder Approval. The Plan was adopted by the Board on May 13, 2010 and approved by the Company’s shareholders on
May 13, 2010. The Plan was amended and restated by the Board on February 2, 2012. The Plan subsequently was amended by the Board on April 25, 2012 and
approved by the Company’s shareholders on May 23, 2012, to increase the number of shares that may be issued pursuant to grants under the Plan. The Plan
was again amended and restated by the Board on May 23, 2017. All awards under the Plan with respect to shares added to the Plan pursuant to the May 2017
amendment and restatement, prior to such shareholder approval are subject in their entirety to such approval. If such approval is not obtained prior to the first
anniversary of the date of adoption of the amendment to the Plan, the amendment and restatement of the Plan and all awards thereunder shall terminate on that
date.
(b)    Termination of Plan. Unless sooner terminated by the Board or pursuant to paragraph (a) above, the provisions of the Plan respecting
the grant of any award pursuant to which shares of Common Stock will be granted shall terminate (i) with respect to the initial 2,000,000 shares authorized for
issuance under the Plan, on May 13, 2020, the tenth anniversary of the date of the Plan’s adoption by the Board (ii) with respect to the additional 2,500,000
shares authorized under the Plan in 2012, on April 25, 2022, and (iii) with respect to the additional 4,000,000 shares authorized under the Plan in 2017, on the
tenth anniversary of the date of the Board’s adoption of the amendment and restatement of the Plan authorizing the issuance of such shares. All awards made
under the Plan prior to the termination of the Plan shall remain in effect until such awards have been satisfied or terminated in accordance with the terms and
provisions of the Plan and the applicable award certificates.
3.15    Restriction on Issuance of Stock Pursuant to Awards
The Company shall not permit any shares of Common Stock to be issued pursuant to awards granted under the Plan unless such shares of Common
Stock are fully paid and non-assessable, within the meaning of applicable law.
3.16    Governing Law
Except to the extent preempted by any applicable federal law, the Plan will be construed and administered in accordance with the laws of the State of
Delaware, without giving effect to principles of conflict of laws.

Exhibit 19.1
SIGA Technologies, Inc.
Insider Trading Compliance Policy and Procedures
(as of June 11, 2024)
Federal and state laws prohibit trading in the securities of a company while in possession of material nonpublic information and in breach of a duty of
trust or confidence. These laws also prohibit anyone who is aware of material nonpublic information from providing this information to others who may trade.
Violating such laws can undermine investor trust, harm the reputation and integrity of SIGA Technologies, Inc. (the “Company”), and result in dismissal from
the Company or even serious criminal and civil charges against the individual and the Company. The Company reserves the right to take whatever disciplinary
or other measure(s) it determines in its sole discretion to be appropriate in a particular situation, including disclosure of wrongdoing to governmental
authorities.
The Company’s Board of Directors (the “Board”) has adopted this Policy in order to ensure compliance with the law and to avoid even the appearance
of improper conduct by anyone associated with the Company.
A.
Persons Covered and Administration of Policy
This Insider Trading Compliance Policy and Procedures (this “Policy”) applies to all officers, directors and employees of the Company. For purposes
of this Policy, “officers” refer to those individuals who meet the definition of “officer” under Section 16 of the Securities Exchange Act of 1934 (as amended,
the “Exchange Act”). Individuals subject to this Policy are responsible for ensuring that members of their household comply with this Policy. This Policy also
applies to any entities controlled by individuals subject to the Policy, including any corporations, limited liability companies, partnerships or trusts, and
transactions by these entities should be treated for the purposes of this Policy as if they were for the individual’s own account. The Company may determine
that this Policy applies to additional persons with access to material nonpublic information, such as contractors or consultants. Officers, directors and
employees, together with any other person designated as being subject to this Policy by the General Counsel or his or her designee or such other officer
appointed by the Company (the “Compliance Officer”), are referred to collectively as “Covered Persons.” It is also the policy of the Company that the
Company will not engage in transactions in securities of the Company while aware of material nonpublic information relating to the Company or its securities.
Questions regarding the Policy should be directed to the Compliance Officer, who is responsible for the administration of this Policy.
B.
Policy Statement
No Covered Person shall purchase or sell any type of security while in possession of material nonpublic information relating to the security or the
issuer of such security in breach of a duty of trust or confidence, whether the issuer of such security is the Company or any other company. In addition, if a
Covered Person is in possession of material nonpublic information about other publicly traded companies, such as suppliers, customers, competitors or
potential acquisition targets, the Covered Person may not trade in such other companies’ securities until the information becomes public or is no longer
material. Further, no Covered Person shall purchase or sell any security of any other company, including another company in the Company’s industry, while in
possession of material nonpublic information if such information is obtained in the course of the Covered Person’s employment or service with the Company.
In addition, Covered Persons shall not directly or indirectly communicate material nonpublic information to anyone outside the Company (except in
accordance with the Company’s policies regarding confidential information) or to anyone within the Company other than on a “need-to-know” basis. Finally,
additional obligations apply to purchases and sales of the Company’s securities by officers and directors. Those additional obligations are included on
Addendum 1 to this Policy.
“Securities” includes stocks, bonds, notes, debentures, options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights, warrants
and other convertible securities, as well as derivative instruments.
“Purchase” and “sale” are defined broadly under the federal securities law. “Purchase” includes not only the actual purchase of a security, but also any
contract to purchase or otherwise acquire a security. “Sale” includes not only the actual sale of a security, but also any contract to sell or otherwise dispose of a
security. These definitions extend to a broad range of transactions, including conventional cash-for-stock transactions, conversions, the exercise of stock
options, transfers, gifts, and acquisitions and exercises of warrants or puts, calls, pledging and margin loans, or other derivative securities.
The laws and regulations concerning insider trading are complex, and Covered Persons are encouraged to seek guidance from the Compliance Officer
prior to considering a transaction in Company securities.
C.
Blackout Periods
No officer, director, or employee shall purchase or sell any security of the Company during the period beginning on the first day after any fiscal
quarter of the Company and ending upon the completion of the first full trading day after the public release of earnings data for such fiscal quarter, or during
any other trading suspension period declared by the Company.
In addition, from time to time, the Compliance Officer and Chief Financial Officer may recommend that directors, officers, employees or others
suspend trading in Company securities because of developments that have not yet been disclosed to the public. Subject to the exceptions noted below, all of
those individuals affected should not trade in the Company’s securities while the suspension is in effect and should not disclose to others that the Company has
suspended trading.
Exceptions to prohibitions on trading during the foregoing periods (such periods, “blackout periods”) may be approved by the Compliance Officer.
In addition, these trading prohibitions do not apply to:

●
exercises of stock options or the surrender of shares to the Company in payment of the exercise price; vesting of restricted stock or RSUs,
including when the Company elects to withhold shares of stock to satisfy tax withholding requirements upon the release of any restricted stock or
RSU or other equity awards; in each case in a manner permitted by the applicable equity award agreement and that does not involve a market sale
of the Company’s securities (the “cashless exercise” of a Company stock option or other equity award through a broker does involve a market sale
of the Company’s securities, and therefore would not qualify under this exception);
●
bona fide gifts of the Company’s securities, unless the individual making the gift knows, or is reckless in not knowing, the recipient intends to sell
the securities while the donor is in possession of material nonpublic information about the Company;
●
purchases or sales of the Company’s securities mandated under an employee benefit plan maintained by the Company which authorizes the sale of
only such securities as are necessary to satisfy tax withholding obligations arising exclusively from the vesting of a compensatory award or made
pursuant to a plan adopted to comply with the Exchange Act Rule 10b5-1 (“Rule 10b5-1”); or
D.
Preclearance of Trades by Directors, Officers and Employees
All transactions in the Company’s securities by directors, officers, or employees of the Company (each, a “Preclearance Person”) must be precleared
by the Compliance Officer or, for transactions by the Compliance Officer, the Chief Financial Officer. Preclearance should not be understood to represent legal
advice by the company that a proposed transaction complies with the law.
A request for preclearance must be in writing, should be made at least two (2) business days in advance of the proposed transaction, and should
include the identity of the Preclearance Person, a description of the proposed transaction, the proposed date of the transaction, and the number of shares or
other securities involved. In addition, the Preclearance Person must execute a certification that he or she is not aware of material nonpublic information about
the Company. The Compliance Officer, or the Chief Financial Officer for transactions by the Compliance Officer, shall have sole discretion to decide whether
to clear any contemplated transaction. All trades that are precleared must be effected within two (2) business days of receipt of the preclearance. A precleared
trade (or any portion of a precleared trade) that has not been effected during the two (2) business day period must be submitted for preclearance determination
again prior to execution. Notwithstanding receipt of preclearance, if the Preclearance Person becomes aware of material nonpublic information or becomes
subject to a blackout period before the transaction is effected, the transaction may not be completed. Transactions under a previously established Rule 10b5-1
Trading Plan that has been preapproved in accordance with this Policy are not subject to further preclearance.
None of the Company, the Compliance Officer, or the Company’s other employees will have any liability for any delay in reviewing, or refusal of, a
request for preclearance.
1.
Material Nonpublic Information
Information is considered “material” if there is a substantial likelihood that a reasonable investor would consider it important in making a decision to
buy, sell, or hold a security, or if the information is likely to have a significant effect on the market price of the security. Material information can be positive or
negative and can relate to virtually any aspect of a company’s business or to any type of security, debt, or equity. Also, information that something is likely to
happen in the future—or even just that it may happen—could be deemed material.
Examples of material information may include (but are not limited to) information about:
●
corporate earnings or earnings forecasts;
●
possible mergers, acquisitions, tender offers, or dispositions;
●
major new products or product developments;
●
new contracts with any entity, including the United States government or any foreign government, negotiations with respect to such contracts, or
material changes to (or termination or cancellation of) existing contracts;
●
results of clinical trials or preclinical studies;
●
communications sent to or received from the U.S. Food and Drug Administration or foreign regulatory authorities;
●
important business developments, such as the status of regulatory submissions;
●
management or control changes;
●
financing developments including pending public or private sales or offerings of debt or equity securities;
●
stock dividends or the repurchase of securities;
●
defaults on borrowings;
●
raw material shortages;
●
bankruptcies;
●
cybersecurity or data security incidents; and

●
significant litigation, government investigation, or regulatory actions.
If you have any doubt as to the materiality of information known to you, you should consult the Compliance Officer. In addition to the restrictions set
forth in this Policy, all non-public information, whether or not material, is subject to the Company’s Confidentiality of Information Policy.
Information is “nonpublic” if it is not available to the general public. In order for information to be considered “public,” it must be widely
disseminated in a manner that makes it generally available to investors in a Regulation FD-compliant method, such as through a press release, a filing with the
U.S. Securities and Exchange Commission (the “SEC”) or a Regulation FD-compliant conference call. The Compliance Officer shall have sole discretion to
decide whether information is public for purposes of this Policy.
The circulation of rumors, even if accurate and reported in the media, does not constitute public dissemination. In addition, even after a public
announcement, a reasonable period of time may need to lapse in order for the market to react to the information. Generally, the passage of one to two full
trading days following release of the information to the public, is a reasonable waiting period before such information is deemed to be public.
E.
Post-Termination Transactions
This Policy continues to apply to transactions in Company securities even after a person’s service with the Company is terminated. If a person is in
possession of material nonpublic information when his or her service terminates, that individual may not trade in Company securities until that information has
become public or is no longer material. Questions or concerns on whether any continuing nonpublic information remains material should be directed to the
Compliance Officer. Although the pre-clearance procedures specified in Section D above will cease to apply upon termination of service, individuals subject to
a quarterly blackout period at the time of termination of service may not trade in Company securities until after the end of the blackout period.
F.
Prohibited Transactions
The Company has determined that there is a heightened legal risk and the appearance of improper or inappropriate conduct if persons subject to this
Policy engage in certain types of transactions. Therefore, Covered Persons shall comply with the following policies with respect to certain transactions in the
Company’s securities.
1.
Short Sales
Short sales of the Company’s securities are prohibited by this Policy. Short sales of the Company’s securities, or sales of shares that the insider does
not own at the time of sale, or sales of shares against which the insider does not deliver the shares within 20 days after the sale, evidence an expectation on the
part of the seller that the securities will decline in value, and, therefore, signal to the market that the seller has no confidence in the Company or its short-term
prospects. In addition, Section 16(c) of the Exchange Act prohibits Section 16 reporting persons (i.e., directors, officers, and the Company’s 10% stockholders)
from making short sales of the Company’s equity securities.
2.
Options
Transactions in puts, calls, or other derivative securities involving the Company’s equity securities, on an exchange, on an over-the-counter market, or
in any other organized market, are prohibited by this Policy. A transaction in options is, in effect, a bet on the short-term movement of the Company’s stock
and, therefore, creates the appearance that a Covered Person is trading based on material nonpublic information. Transactions in options, whether traded on an
exchange, on an over-the-counter market, or any other organized market, also may focus a Covered Person’s attention on short-term performance at the
expense of the Company’s long-term objectives.
3.
Hedging Transactions
Hedging transactions involving the Company’s securities, such as prepaid variable forward contracts, equity swaps, collars and exchange funds, or
other transactions that hedge or offset, or are designed to hedge or offset, any decrease in the market value of the Company’s equity securities, are prohibited by
this Policy. Such transactions allow the Covered Person to continue to own the covered securities, but without the full risks and rewards of ownership. When
that occurs, the Covered Person may no longer have the same objectives as the Company’s other stockholders.
4.
Margin Accounts and Pledging
Individuals are prohibited from pledging Company securities as collateral for a loan, purchasing Company securities on margin (i.e., borrowing money
to purchase the securities), or placing Company securities in a margin account. This prohibition does not apply to cashless exercises of stock options under the
Company’s equity plans, nor to situations where the Covered Person clearly demonstrates their financial capacity to repay the loan without resorting to the
pledged securities, subject to pre-clearance in advance by the Compliance Officer.
G.
Rule 10b5-1 Trading Plans
1.
Requirements
The trading restrictions set forth in this Policy, other than those transactions described under “Prohibited Transactions,” do not apply to transactions
under a previously established contract, plan or instruction to trade in the Company’s securities entered into in accordance with Rule 10b5-1 (a “Trading Plan”)
that:
●
has been submitted to and preapproved by the Compliance Officer (and in the case of the Company, by the Board or a committee of the Board);
●
includes a “Cooling Off Period” for

o
Section 16 reporting persons that extends to the later of 90 days after adoption or modification of a Trading Plan or two business
days after filing the Form 10-K or Form 10-Q covering the fiscal quarter in which the Trading Plan was adopted, up to a maximum
of 120 days; and
o
employees and any other persons, other than the Company, that extends 30 days after adoption or modification of a Trading Plan;
●
for Section 16 reporting persons, includes a representation in the Trading Plan that the Section 16 reporting person is (1) not aware of any material
nonpublic information about the Company or its securities; and (2) adopting the Trading Plan in good faith and not as part of a plan or scheme to
evade Rule 10b-5;  
●
has been entered into in good faith at a time when the individual was not in possession of material nonpublic information about the Company
and not otherwise in a blackout period, and the person who entered into the Trading Plan has acted in good faith with respect to the Trading
Plan;
●
either (1) specifies the amounts, prices, and dates of all transactions under the Trading Plan; or (2) provides a written formula, algorithm, or
computer program for determining the amount, price, and date of the transactions, and (3) prohibits the individual from exercising any subsequent
influence over the transactions; and
●
complies with all other applicable requirements of Rule 10b5-1.
The Compliance Officer may impose such other conditions on the implementation and operation of the Trading Plan as the Compliance Officer deems
necessary or advisable. Individuals may not adopt more than one Trading Plan at a time except under the limited circumstances permitted by Rule 10b5-1
(including Trading Plans which authorize an agent to sell only such securities as are necessary to satisfy tax withholding obligations arising exclusively from
the vesting of a compensatory award) and subject to preapproval by the Compliance Officer.
An individual may only modify a Trading Plan outside of a blackout period and, in any event, when the individual does not possess material nonpublic
information. Modifications to and terminations of a Trading Plan are subject to preapproval by the Compliance Officer and modifications of a Trading Plan that
change the amount, price, or timing of the purchase or sale of the securities underlying a Trading Plan will trigger a new Cooling-Off Period.
The Company reserves the right to publicly disclose, announce, or respond to inquiries from the media regarding the adoption, modification, or
termination of a Trading Plan and non-Rule 10b5-1 trading arrangements, or the execution of transactions made under a Trading Plan. The Company also
reserves the right from time to time to suspend, discontinue, or otherwise prohibit transactions under a Trading Plan if the Compliance Officer or the Board of
Directors, in its discretion, determines that such suspension, discontinuation, or other prohibition is in the best interests of the Company.
Compliance of a Trading Plan with the terms of Rule 10b5-1 and the execution of transactions pursuant to the Trading Plan are the sole responsibility
of the person initiating the Trading Plan, and none of the Company, the Compliance Officer, or the Company’s other employees assumes any liability for any
delay in reviewing and/or refusing to approve a Trading Plan submitted for approval, nor the legality or consequences relating to a person entering into,
informing the Company of, or trading under, a Trading Plan.
2.         Outside Trades.
Adoption of a Rule 10b5-1 Plan does not preclude trading outside of the plan that otherwise is in accordance with the Insider Trading Policy.
However, directors and employees should be cognizant of the fact that the Rule 10b5-1 affirmative defense will not apply to such trades outside a Rule 10b5-1
Plan. In addition, under Rule 10b5-1, the director or employee may not have further influence over whether, when or how the trades under the plan are made
once the plan is put in place, and therefore their trading outside of the plan must not have direct or indirect influence on the trading instructions under the plan.
In other words, securities subject to the plan (e.g., shares underlying unexercised stock options) should not be purchased or sold outside the plan.
H. Interpretation, Amendment, and Implementation of this Policy
The Compliance Officer shall have the authority to interpret and update this Policy and all related policies and procedures. In particular, such
interpretations and updates of this Policy, as authorized by the Compliance Officer, may include amendments to or departures from the terms of this Policy to
the extent consistent with the general purpose of this Policy and applicable securities laws.
Actions taken by the Company, the Compliance Officer, or any other Company personnel do not constitute legal advice, nor do they insulate you from
the consequences of noncompliance with this Policy or with securities laws.
Certification of Compliance
All directors, officers, employees and others subject to this Policy will be required periodically  to certify their compliance with the terms and
provisions of this Policy.
 
 
 

 
Addendum 1
Additional Obligations for Officers and Directors
1.
REPORTING AND FORM FILING REQUIREMENTS
Under Section 16(a) of the Exchange Act, directors and officers of the Company, as well as beneficial owners of more than 10% of the outstanding shares of
any class of voting Company equity securities registered under Section 12 of the Exchange Act, must file forms with the U.S. Securities and Exchange
Commission (the “SEC”) disclosing their direct and indirect pecuniary interest in most transactions involving the Company’s equity securities. In this context,
“equity securities” of the Company include shares of the classes of equity securities created under the Company’s governing documents, such as common
stock, as well as any securities (regardless of whether issued by the Company) that are exchangeable for or convertible into, or that derive their value from, an
equity security of the Company. These other securities are known as “derivative securities,” and include options, restricted share units, warrants, convertible
securities and stock appreciation rights.
A.
Forms 3, 4 and 5
The Compliance Officer will assist directors and officers in preparing and filing the following Section 16 reports but each individual director and
officer is responsible for the timing and contents of his or her reports:
●
Form 3, Initial Beneficial Ownership Statement.  A person who becomes a director or officer of the Company must file a Form 3 within 10
calendar days of becoming a director or officer, even if such person does not own any Company equity securities at the time. The Form 3 must
disclose such person’s position and ownership of any Company equity securities as of immediately prior to assuming office.
●
Form 4, Changes of Beneficial Ownership Statement. As long as a person remains a director or officer, and for up to six months after a person
no longer holds such a position with the Company, a Form 4 must be filed with the SEC before 10:00 p.m., Eastern, on the second business day
following any transaction by that person, whether directly or indirectly, in Company equity securities. There are exceptions to this requirement for
acquisitions from gifts (but not dispositions by gifts).
●
Form 5, Annual Beneficial Ownership Statement.  A Form 5 must be filed with the SEC by any individual who served as a director or officer of
the Company during any part of the Company’s fiscal year to report:
‒
all reportable transactions in Company equity securities that were specifically eligible for deferred reporting on Form 5;
‒
all transactions that should have been reported during the last fiscal year but were not; and
‒
with respect to an individual’s first Form 5, all transactions which should have been reported but were not for the last two fiscal years.
A Form 5 need not be filed if all transactions otherwise reportable have been previously reported. If required, Form 5 must be filed within 45 days after the
end of the Company’s fiscal year, e.g., February 14 for calendar-year companies, or the first business day thereafter. Common types of transactions reportable
on Form 5 include acquisitions from gifts (but not dispositions by gifts) and certain acquisitions of less than $10,000 in any six-month period, either of which
may be reported on a voluntary basis on any Form 4 filed before the Form 5 is due.
B.
Indirect Ownership by Related Insiders
The reports described above must also reflect any indirect ownership by directors and officers, including all holdings and transactions by Related Insiders.
This includes changes in ownership by immediate family members living in the director’s officer’s household and any other person or entity over whom the
individual exercises influence or control over his, her or its securities trading decisions. For this purpose, “immediate family” includes a spouse, children,
stepchildren, grandchildren, parents, grandparents, stepparents and siblings, including in-laws and adoptive relationships.
C.
Rule 144
Officers and Directors must also ensure their compliance with Rule 144 under the Securities Act of 1933, as amended, with respect to sales of any
Company securities, which may include filing a Form 144 with the SEC.
Any questions concerning whether a particular transaction will necessitate filing of one of these forms, or how or when they should be completed
should be asked of the Compliance Officer, or, if you prefer, your individual legal counsel. The Company must disclose in its Annual Report on Form 10-
K and in its Proxy Statement any delinquent filings of Forms 3, 4 or 5 by directors and officers, and must post on its website, by the end of the business day
after filing with the SEC, any Forms 3, 4 and 5 relating to the Company’s securities.

Exhibit 23.1
 
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-218507, 333-183101, and 333-167329) of SIGA
Technologies, Inc. of our report dated March 11, 2025 relating to the financial statements and the effectiveness of internal control over financial reporting,
which appears in this Form 10-K.
/s/ PricewaterhouseCoopers LLP
Florham Park, New Jersey
March 11, 2025

Exhibit 31.1
 
Certification by Chief Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
 
I, Diem Nguyen, Ph.D., certify that:
 
1.
I have reviewed this Annual Report on Form 10-K of SIGA Technologies, 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.
 
Date: March 11, 2025
/s/ Diem Nguyen, Ph.D.
Diem Nguyen, Ph.D.
Chief Executive Officer
 
 
 
 

Exhibit 31.2
 
Certification by Chief Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
 
I, Daniel J. Luckshire, certify that:
 
1.
I have reviewed this Annual Report on Form 10-K of SIGA Technologies, 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.
 
Date: March 11, 2025
/s/ Daniel J. Luckshire
Daniel J. Luckshire
Executive Vice President and
Chief Financial Officer
 
 
 
 

Exhibit 32.1
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of SIGA Technologies, Inc. (the “Company”) on Form 10-K for the period ended December 31, 2024 as filed with
the Securities and Exchange Commission on the date hereof (the “Report”), I, Diem Nguyen, Ph. D., Chief Executive Officer of the Company, certify, pursuant
to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
 
(1)
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Diem Nguyen, Ph.D.
Diem Nguyen, Ph.D.
Chief Executive Officer
March 11, 2025
 
 
 

Exhibit 32.2 
 
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of SIGA Technologies, Inc. (the “Company”) on Form 10-K for the period ended December 31, 2024 as filed
with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel J. Luckshire, Executive Vice President and Chief Financial Officer
of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my
knowledge:
 
(1)
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Daniel J. Luckshire
Daniel J. Luckshire
Executive Vice President and Chief Financial Officer
March 11, 2025