Overview

Impact of COVID-19

Our product development pipeline is as follows:

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Additionally, we are developing several preclinical programs, most of which havewell-defined mechanisms of action, including SLS-004, licensed from DukeUniversity, and SLS-007, licensed from The Regents of the University ofCalifornia, for the potential treatment of Parkinson's Disease ("PD").

Strategy and Ongoing Programs

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? advancing SLS-002 in ASIB in MDD and post-traumatic stress disorder;

? advancing SLS-004 in PD;

? advancing SLS-005 in ALS, SCA, HD and Sanfilippo Syndrome;

? advancing new formulations of SLS-005 in neurological diseases; and

? acquiring synergistic assets in the CNS therapy space through licensing and

partnerships.

Operating expense for the years ended December 31, 2022 and 2021 was as follows(in thousands, except percentages):

Research and Development Expenses

General and Administrative Expenses

Other Income and Expense

369

(3,247)

2,387

(149)

Interest Expense

Interest expense was $14,000 and $1.6 million for the years ended December 31,2022 and 2021, respectively. The decrease was due to our repayment of theDecember 2020 convertible notes during 2021.

Change in Fair Value of Derivative Liability

Change in Fair Value of Convertible Notes

Net Loss on Extinguishment of Debt

Gain on Forgiveness of Debt

Gain on forgiveness of debt was $0 and $149,000 for the years ended December 31,2022 and 2021, respectively. This gain was due to the forgiveness of ouroutstanding PPP loan, which we received in June 2021.

Change in Fair Value of Warrant Liability

Liquidity, Capital Resources and Financial Condition

We expect to use the net proceeds from the above transactions primarily forgeneral corporate purposes, which may include financing our normal businessoperations, developing new or existing product candidates, and funding capitalexpenditures, acquisitions and investments.

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Our future liquidity and capital funding requirements will depend on numerousfactors, including:

? our ability to raise additional funds to finance our operations;

? our ability to maintain compliance with the listing requirements of The Nasdaq

Capital Market;

? the outcome, costs and timing of any clinical trial results for our current or

future product candidates;

? potential litigation expenses;

? the emergence and effect of competing or complementary products or product

property portfolio, including the amount and timing of any payments we may be

? required to make, or that we may receive, in connection with the licensing,

filing, prosecution, defense and enforcement of any patents or other

intellectual property rights;

? our ability to retain our current employees and the need and ability to hire

additional management and scientific and medical personnel;

? the terms and timing of any collaborative, licensing or other arrangements that

we have or may establish;

? the trading price of our common stock; and

? our ability to increase the number of authorized shares outstanding to

facilitate future financing events.

Cash Flow Summary

(48,995)

Net cash (used in) provided by financing activities (1,597) 112,067Net (decrease) increase in cash

No cash was used in investing activities during the years ended December 31,2022 or 2021.

Cash provided by financing activities of $112.1 million in the year endedDecember 31, 2021 was primarily due to the proceeds from our May 2021 andJanuary 2021 public offerings, as well as proceeds from the issuance and sale ofthe 2021 Note and the 2021 Closing Shares.

Contractual Obligations

Recent Accounting Pronouncements

See Note 1 to our consolidated financial statements for a discussion of recentaccounting pronouncements and their effect, if any, on us.

Critical Accounting Estimates and Policies

We believe that the following critical accounting policies and estimates have ahigher degree of inherent uncertainty and require our most significantjudgments:

Accrual of Research and Development Expenses

Valuation of Warrant Liability

Valuation of Convertible Notes

Edgar Online, source Glimpses

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SEELOS THERAPEUTICS, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K) - Marketscreener.com