8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 6, 2024

PhaseBio Pharmaceuticals, Inc.

(Exact name of registrant as specified in its Charter)

Delaware	001-38697	03-0375697
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3500 S. Dupont Highway

Dover, Delaware 19901

(Address including zip code of principal executive offices)

(610) 981-6500

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, par value $0.001 per share	PHASQ	*

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☒

* On November 3, 2022, the issuer’s common stock was suspended from trading on The Nasdaq Stock Market LLC (“Nasdaq”). Effective November 4, 2022, trades in the issuer’s common stock began being quoted on the OTC Pink Marketplace under the symbol “PHASQ.” On December 21, 2022, Nasdaq filed a Form 25 to delist the issuer’s common stock and to remove it from registration under Section 12(b) of the Securities Exchange Act of 1934, as amended.

Item 1.01 Entry into a Material Definitive Agreement.

As previously reported, on October 23, 2022, PhaseBio Pharmaceuticals, Inc. (the “Company”) filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”), thereby commencing a Chapter 11 case (the “Chapter 11 Case”) for the Company (Case No. 22-10995).

Plan Support and Settlement Agreement

On August 1, 2023, the Bankruptcy Court entered an order that, among other things, conditionally approved the Company’s Combined Disclosure Statement and Chapter 11 Plan (the “Combined Disclosure Statement & Plan”) for solicitation purposes only and authorized the Company to solicit acceptances on the Combined Disclosure Statement & Plan. On September 8, 2023, SFJ Pharma X, Inc. (f/k/a SFJ Pharmaceuticals X, Ltd.) (“SFJ”) filed a motion seeking to have allowed as an administrative expense claim (the “Motion to Allow”) BioVectra Inc.’s alleged administrative claim in the amount of $15,428,944.03 that SFJ asserted was transferred to SFJ on March 31, 2023, and SFJ also filed an objection (the “Objection”) to the Combined Disclosure Statement & Plan and caused BioVectra Inc. to cast a ballot rejecting the Combined Disclosure Statement & Plan. On September 12, 2023, the Company adjourned the hearing on confirmation of the Combined Disclosure Statement & Plan to a date to be determined.

On March 6, 2024, the Company and SFJ executed and entered into a Plan Support and Settlement Agreement (the “Settlement Agreement”) to resolve the Motion to Allow, the Objection, and related matters. Pursuant to the Settlement Agreement, among other things: (i) the Company stipulates to an allowed administrative expense claim in favor of SFJ in the amount of $2,500,000 (the “Administrative Claim”), subject to a credit of up to $250,000 for fees and expenses (the “Expense Credit”) incurred by the Company in connection with any resolicitation of the Combined Disclosure Statement & Plan, as amended, and to stipulate to the allowance of certain additional general unsecured claims assigned to SFJ which, together with the BioVectra Inc. general unsecured claim, are in the aggregate amount of $27.8 million (the “Unsecured Claims”); (ii) the Company agrees to file an amended Combined Disclosure Statement & Plan incorporating the Settlement Agreement, including provisions for a required sale process of the rights to receive royalties for sales of bentracimab (the “Bentracimab Royalties”), which Bentracimab Royalties SFJ previously provided the Company, with such required sale process to be completed by the liquidation trustee to be appointed under the Combined Disclosure Statement & Plan within six months of approval of a Biologics License Application for bentracimab, and further providing that if the Bentracimab Royalty sells for less than the Administrative Claim amount (as may be reduced by the Expense Credit), then the Bentracimab Royalty will be transferred to SFJ in full satisfaction of the Administrative Claim; and (iii) SFJ shall, within two business days of the entry of an order of the Bankruptcy Court approving a motion under Bankruptcy Rule 9019 seeking Bankruptcy Court approval of the Settlement Agreement, withdraw the Objection and Motion to Allow, and support confirmation of the Combined Disclosure Statement & Plan, as amended.

Other than the Company’s obligation to seek approval from the Bankruptcy Court of the Settlement Agreement, and SFJ’s obligation to file with the Bankruptcy Court required notices of the Unsecured Claims, the parties’ obligations under the Settlement Agreement are subject to the Bankruptcy Court’s approval of the Settlement Agreement and the occurrence of the effective date of the Combined Disclosure Statement & Plan, as amended.

The full text of the Settlement Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

Item 8.01 Other Events.

On December 20, 2023, the Company filed its monthly operating report with the Bankruptcy Court for the month ending November 30, 2023 (the “November 2023 Monthly Operating Report”). The November 2023 Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

On January 25, 2024, the Company filed its monthly operating report with the Bankruptcy Court for the month ending December 31, 2023 (the “December 2023 Monthly Operating Report”). The December 2023 Monthly Operating Report is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

On February 23, 2024, the Company filed its monthly operating report with the Bankruptcy Court for the month ending January 31, 2024 (the “January 2024 Monthly Operating Report”). The January 2024 Monthly Operating Report is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

Cautionary Note Regarding Trading in the Company’s Securities

The Company cautions that trading in the Company’s securities during the pendency of the Chapter 11 Case is highly speculative and poses substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders of the Company’s securities in the Chapter 11 Case. Accordingly, the Company urges extreme caution with respect to existing and future investments in its securities.

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K may contain forward-looking statements, including statements regarding the Chapter 11 Case and the Company’s ability to continue operating in the ordinary course while the Chapter 11 Case is pending, within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “potential,” “projects,” “target,” “will,” “would” and “future” or similar expressions are intended to identify forward-looking statements. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to (i) potential adverse effects of the Chapter 11 Case on the Company’s liquidity and results of operations; (ii) the Company’s ability to obtain timely approval by the Bankruptcy Court of the motions filed in the Chapter 11 Case; (iii) the effects of the Chapter 11 Case on the Company and on the interests of various constituents, including holders of the Company’s common stock; (iv) the Bankruptcy Court’s rulings in the Chapter 11 Case and the outcome of the Chapter 11 Case generally; (v) the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Case; (vi) risks associated with third party motions in the Chapter 11 Case; (vii) increased administrative and legal costs related to the Chapter 11 process; (viii) exposure to potential litigation and inherent risks involved in a bankruptcy process; (ix) risks arising from the delisting of the Company’s common stock from The Nasdaq Stock Market LLC; and (x) other risks and uncertainties, including those described in the section entitled “Risk Factors” in the Company’s most recent annual or quarterly report filed with the Securities and Exchange Commission and in other filings the Company makes with the Securities and Exchange Commission from time to time. The forward-looking statements herein do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update the information contained in this Current Report on Form 8-K to reflect new events or circumstances, except as required by law.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
10.1	Plan Support and Settlement Agreement, dated as of March 5, 2024, by and between PhaseBio Pharmaceuticals, Inc. and SFJ Pharmaceuticals X, Inc. (f/k/a SFJ Pharmaceuticals X, Ltd.).
99.1	Monthly Operating Report, for the month ending November 30, 2023, filed with the United States Bankruptcy Court for the District of Delaware.
99.2	Monthly Operating Report, for the month ending December 31, 2023, filed with the United States Bankruptcy Court for the District of Delaware.
99.3	Monthly Operating Report, for the month ending January 31, 2024, filed with the United States Bankruptcy Court for the District of Delaware.
104	Cover page interactive data file (formatted as Inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PhaseBio Pharmaceuticals, Inc.
Dated: March 12, 2024	By:	/s/ Jonathan P. Mow
		Jonathan P. Mow
		Chief Executive Officer

EX-10.1

Exhibit 10.1

Execution Version

PLAN SUPPORT AND SETTLEMENT AGREEMENT

This PLAN SUPPORT AND SETTLEMENT AGREEMENT (together with the schedules attached hereto, as each may be amended, restated, supplemented, or otherwise modified from time to time in accordance with the terms hereof, this “Agreement”), dated as of March 6, 2024, is entered into by and between: (i) PhaseBio Pharmaceuticals, Inc. (“PhaseBio” or the “Debtor”) and (ii) SFJ Pharma X, Inc. (k/k/a SFJ Pharmaceuticals X, Ltd. (“SFJ”). The Debtor and SFJ are each referred to herein as a “Party,” and collectively, the “Parties.”

WHEREAS, on August 1, 2023, the Bankruptcy Court entered an order [Docket No. 712] that, among other things, conditionally approved the Debtor’s Combined Disclosure Statement and Chapter 11 Plan [Docket No. 712] (the “Combined Disclosure Statement & Plan”)¹ for solicitation purposes only, authorized the Debtor to solicit acceptances on the Combined Disclosure Statement & Plan, and set a hearing to consider final approval and confirmation of the Disclosure Statement & Plan (the “Confirmation Hearing”);

WHEREAS, on August 4, 2023, SFJ filed a notice of transfer and assignment of BioVectra, Inc.’s pre-petition claim no. 159 in the amount of $15,360,276.00 to SFJ (“BioVectra General Unsecured Claim”);

WHEREAS, on September 8, 2023, SFJ filed a motion to allow BioVectra Inc.’s alleged administrative expense claim [Docket No. 778] (“Motion to Allow”), asserting that a claim in the amount of $15,428,944.03 was transferred to SFJ on March 31, 2023;

WHEREAS, on September 8, 2023, SFJ also filed an objection [Docket No. 779] (“Objection”) to the Combined Disclosure Statement & Plan on feasibility grounds and caused BioVectra Inc. to cast a ballot prior to the Voting Deadline rejecting the Combined Disclosure Statement & Plan;

WHEREAS, on September 12, 2023, PhaseBio filed a notice adjourning the Confirmation Hearing from September 19, 2023, to a date to be determined [Docket No. 787];

WHEREAS, on November 22, 2023, PhaseBio filed an objection to the Motion to Allow under seal [Docket No. 871], which PhaseBio withdrew without prejudice to facilitate further negotiations between the Parties [Docket No. 881];

WHEREAS, prior to and following the filing of the Motion to Allow, PhaseBio engaged in informal discovery with SFJ regarding the issues raised by the Motion to Allow, including the asserted transfer of certain alleged claims of BioVectra, Inc. to SFJ;

¹  All capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Combined Disclosure Statement & Plan.

WHEREAS, the Parties have engaged in good faith and arms’-length negotiations to resolve the Objection, Motion to Allow, and related issues.

WHEREAS, during the course of such negotiations, SFJ informed PhaseBio that it was an assignee of certain additional general unsecured claims of other creditors, as reflected in Schedule A attached hereto;

NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, covenant and agree as follows, provided that other than Sections 1 and 11 hereinbelow, which shall be effective upon execution of this Agreement, the remainder of this Agreement shall be subject to the (i) entry of an order of the Bankruptcy Court approving the 9019 Motion (defined below) and this Agreement and (ii) subsequent occurrence of the Effective Date under the Combined Disclosure Statement & Plan as amended to implement the terms of this Agreement:

1. As soon as reasonably practicable following execution of this Agreement, PhaseBio shall prepare and file a motion under Bankruptcy Rule 9019 (the “9019 Motion”) seeking Bankruptcy Court approval of this Agreement.

2. PhaseBio stipulates to an allowed administrative expense claim in favor of SFJ in the amount of $2,500,000 (the “Administrative Claim”), the treatment of which is set forth below, and agrees to file an amended Combined Disclosure Statement & Plan incorporating this Agreement.

3. If PhaseBio (i) does not resolicit acceptances of the Combined Disclosure Statement & Plan as amended or (ii) otherwise believes such motion(s) would be beneficial, then PhaseBio shall prepare drafts of any motion(s) and associated pleadings as necessary for use by SFJ, BioVectra, Frontage Laboratories, Inc., and Frontage Laboratories (Shanghai) Co. Ltd., to file and seek entry of an order pursuant to Bankruptcy Rule 3018 changing their respective votes on the Combined Disclosure Statement & Plan to accept the Disclosure Statement & Plan (including in its amended form and in accordance with this Agreement).

4. If PhaseBio resolicits acceptances of the Combined Disclosure Statement & Plan as amended, SFJ will vote directly to accept the Combined Disclosure Statement & Plan as amended with respect to the BioVectra General Unsecured Claim, and the general unsecured claims of Frontage Laboratories, Inc. and Frontage Laboratories (Shanghai) Co. Ltd., and elect not to opt out of the third-party releases under the Combined Disclosure Statement & Plan, to reflect the terms of this Agreement. If PhaseBio resolicits acceptances of the Combined Disclosure Statement & Plan as amended, SFJ will use reasonable efforts to cause the holders of claims listed on Schedule A hereto to vote to accept the Combined Disclosure Statement & Plan as amended or, if procedurally required, SFJ will vote directly to accept the Combined Disclosure Statement & Plan as amended with respect to such claims and elect not to opt out of the third-party releases under the Combined Disclosure Statement & Plan. For the avoidance of doubt, SFJ’s obligations under this provision (the “Voting Provision”) will be a condition precedent to the effectiveness of this Agreement.

5. If PhaseBio resolicits acceptances of the Combined Disclosure Statement & Plan as amended, PhaseBio will be entitled to a credit against the amount of the Administrative Claim of up to $250,000 (the “Expense Credit”) for any and all fees and expenses incurred by PhaseBio and its estate in connection with the actual resolicitation of such Combined Disclosure Statement & Plan as amended. PhaseBio shall provide detail to SFJ supporting the Expense Credit.

6. As part of and a condition precedent to the effectiveness of this Agreement, SFJ shall, within two (2) business days of the entry of an order of the Bankruptcy Court approving the 9019 Motion, (i) withdraw the Objection and Motion to Allow, and (ii) support confirmation of the Combined Disclosure Statement & Plan as amended, including, without limitation, satisfying its obligations under the Voting Provision; provided, however, that other than complying with its obligations under the Voting Provision, the Debtor shall not require SFJ to appear at any Confirmation Hearing on the Combined Disclosure Statement & Plan as amended or to file any pleading in support of confirmation of the Combined Disclosure Statement & Plan as amended.

7. Following confirmation of the Combined Disclosure Statement & Plan as amended and the occurrence of the Effective Date, the Liquidation Trustee will run a sale process to sell the Bentracimab Royalties (the “Required Sale Process”) that will commence no later than 30 days following their full or accelerated approval by the FDA of a Biologics License Application for bentracimab (“BLA Approval”), with any closing to occur no later than six (6) months after BLA Approval.

8. SFJ will provide specified information (the “Specified Information”), detailed in Schedule B hereto, to the Liquidation Trustee to be made available to potential bidders under non-disclosure agreements between such bidders and the Liquidation Trustee.

9. If the Required Sale Process results in the Liquidation Trustee’s sale of the Bentracimab Royalties for at least an amount sufficient to pay the Administrative Claim in full following any reduction of such claim on account of the Expense Credit (the “Minimum Sale Price”), then the Administrative Claim, as reduced by the amount of any Expense Credit, will be paid first in full from the proceeds of such Bentracimab Royalties sale, with PhaseBio or the Liquidation Trust, as applicable, retaining all such Bentracimab Royalties sale proceeds in excess of the Minimum Sale Price.

10. If the Required Sale Process results in the Liquidation Trustee being unable to sell the Bentracimab Royalties for at least the Minimum Sale Price, then the Liquidation Trustee will transfer to SFJ all of PhaseBio’s and the Liquidation Trust’s rights, as applicable, to the Bentracimab Royalties as payment in full of the Administrative Claim.

11. As the assignee of claims asserted and filed by the claimants listed on Schedule A hereto, on or before February 16, 2024, SFJ will file all required notices of transfer of claims pursuant to Bankruptcy Rule 3001. The completion of the transfer of the claims listed on Schedule A hereto to SFJ pursuant to Bankruptcy Rule 3001 shall be a condition precedent to the effectiveness of this Agreement.

12. SFJ agrees to assert only the general unsecured portion of the claims listed on Schedule A hereto and waives any claim for administrative or other priority with respect to these claims. As part of this Agreement, and upon the completion of the transfer as stated above, the general unsecured claims of claimants listed on Schedule A hereto shall be allowed in the amounts set forth therein.

13. Other than the Administrative Claim, the BioVectra General Unsecured Claim and claims set forth on Schedule A hereto, SFJ shall not assert any other claims, including administrative, priority, or general unsecured claims, against PhaseBio, its estate, its assets, Liquidation Trust, or the Liquidating Trust Assets, including any claims that SFJ may have purchased or may in the future purchase from any creditors or claimants.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their respective duly authorized representatives as of the date first set forth above.

PHASEBIO PHARMACEUTICALS, INC.:
By:	/s/ Jonathan Mow
Name: Jonathan Mow
Title: CEO
SFJ PHARMA X, INC.:
By:	/s/ Robert DeBenedetto
Name: Robert DeBenedetto
Title: Executive Char of the Board of Directors

SCHEDULE A

(Schedule of General Unsecured Claims Assigned to SFJ)

Original Creditor	General Unsecured Claim Amount
PPD Development, LP	$	132,859.25
Frontage Laboratories, Inc.	$	560,022.60
Frontage Laboratories (Shanghai) Co. Ltd.	$	320,716.00
BioVectra Inc.	$	26,363,850.00
Berkshire Sterile Manufacturing, LLC	$	422,857.92
Total General Unsecured Claims:	$	27,800,305.77

SCHEDULE B

(Specified Information)

• All Quarterly Reports that were required to be provided to PhaseBio by SFJ following the January 13, 2023 Closing of the Program Transfer Agreement, and that have not yet been provided.

• Information reasonably requested by the Liquidation Trustee to permit potential purchasers of the Royalty to evaluate a forecast for commercial sales of bentracimab to the extent such information is readily available, at no cost to SFJ.

EX-99.1

Exhibit 99.1

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UNITED STATES BANKRUPTCY COURT

      DISTRICT OF DELAWARE

                     

In Re. PHASEBIO PHARMACEUTICALS, INC	§	Case No. 22-10995
	§
	§
Debtor(s)	§
		☐ Jointly Administered

Monthly Operating Report Chapter 11

Reporting Period Ended: 11/30/2023		Petition Date: 10/23/2022
Months Pending: 13		Industry Classification:  2 8 3 4

Reporting Method:	Accrual Basis ☐	Cash Basis ☒
Debtor’s Full-Time Employees (current):		0
Debtor’s Full-Time Employees (as of date of order for relief):		49

Supporting Documentation (check all that are attached):

(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)

☒ Statement of cash receipts and disbursements

☒ Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit

☒ Statement of operations (profit or loss statement)

☐ Accounts receivable aging

☐ Postpetition liabilities aging

☐ Statement of capital assets

☐ Schedule of payments to professionals

☒ Schedule of payments to insiders

☒ All bank statements and bank reconciliations for the reporting period

☐ Description of the assets sold or transferred and the terms of the sale or transfer

/s/ James F. McCauley	James F. McCauley
Signature of Responsible Party	Printed Name of Responsible Party
12/20/2023	Richards, Layton & Finger, P.A.
Date	920 N. King Street
	Wilmington, DE 19801 Address

STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies.

UST Form 11-MOR (12/01/2021) 1

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

Part 1: Cash Receipts and Disbursements		Current Month		Cumulative
a.	Cash balance beginning of month	$	3,332,059
b.	Total receipts (net of transfers between accounts)	$	743	$	28,217,350
c.	Total disbursements (net of transfers between accounts)	$	786,393	$	26,260,076
d.	Cash balance end of month (a+b-c)	$	2,546,409
e.	Disbursements made by third party for the benefit of the estate	$	0	$	16,343,728
f.	Total disbursements for quarterly fee calculation (c+e)	$	786,393	$	42,603,804
Part 2: Asset and Liability Status (Not generally applicable to Individual Debtors. See Instructions.)		Current Month
a.	Accounts receivable (total net of allowance)	$	0
b.	Accounts receivable over 90 days outstanding (net of allowance)	$	0
c.	Inventory (Book ☐ Market ☐ Other ☒ (attach explanation))	$	0
d	Total current assets	$	4,318,237
e.	Total assets	$	4,318,237
f.	Postpetition payables (excluding taxes)	$	276,562
g.	Postpetition payables past due (excluding taxes)	$	0
h.	Postpetition taxes payable	$	0
i.	Postpetition taxes past due	$	0
j.	Total postpetition debt (f+h)	$	276,562
k.	Prepetition secured debt	$	0
1.	Prepetition priority debt	$	0
m.	Prepetition unsecured debt	$	176,602,290
n.	Total liabilities (debt) (j+k+l+m)	$	176,878,852
o.	Ending equity/net worth (e-n)	$	-172,560,615
Part 3: Assets Sold or Transferred		Current Month		Cumulative
a.	Total cash sales price for assets sold/transferred outside the ordinary course of business	$	0	$	36,644,483
b.	Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business	$	0	$	0
c.	Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b)	$	0	$	36,644,483
Part 4: Income Statement (Statement of Operations) (Not generally applicable to Individual Debtors. See Instructions.)		Current Month		Cumulative
a.	Gross income/sales (net of returns and allowances)	$	0
b.	Cost of goods sold (inclusive of depreciation, if applicable)	$	0
c.	Gross profit (a-b)	$	0
d.	Selling expenses	$	0
e.	General and administrative expenses	$	75,983
f.	Other expenses	$	0
g.	Depreciation and/or amortization (not included in 4b)	$	0
h.	Interest	$	0
i.	Taxes (local, state, and federal)	$	0
j.	Reorganization items	$	710,410
k.	Profit (loss)	$	-785,650	$	-16,459,106

UST Form 11-MOR (12/01/2021) 2

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

Part 5: Professional Fees and Expenses
				Approved Current Month		Approved Cumulative		Paid Current Month		Paid Cumulative
a.	Debtor’s professional fees & expenses (bankruptcy) Aggregate Total				$373,941		$11,765,421		$687,979		$11,765,421
	Itemized Breakdown by Firm
		Firm Name	Role
	i	Richards, Layton & Finger, P.A.	Local Counsel		$  150,341		$ 1,974,339		$  407,636		$ 1,974,339
	ii	Cooley LLP	Lead Counsel		$  114,197		$ 5,699,349		$  114,197		$ 5,699,349
	iii	SierraConstellation Partners, LLC	Financial Professional		$   17,216		$   978,967		$   17,216		$   978,967
	iv	Miller Buckfire, LLC	Financial Professional		$        0		$ 2,500,000		$        0		$ 2,500,000
	V	Omni Management Group, Inc.	Other		$   11,123		$    22,511		$   11,123		$    22,511
	vi	KPMG LLP	Other		$   81,065		$   590,256		$  137,807		$   590,256
	vii
	viii
	ix
	X
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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

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				Approved Current Month	Approved Cumulative	Paid Current Month	Paid Cumulative
b.	Debtor’s professional fees & expenses (nonbankruptcy) Aggregate Total			$   0
	Itemized Breakdown by Firm
		Firm Name	Role
	i		Other	$   0
	ii
	iii
	iv
	v
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	viii
	ix
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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

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UST Form 11-MOR (12/01/2021) 7

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

	xcix
	c
c.	All professional fees and expenses (debtor & committees)	$452,102	$14,174,788	$814,538	$14,174,788

Part 6: Postpetition Taxes	Current Month		Cumulative
a.   Postpetition income taxes accrued (local, state, and federal)	$	0	$	0
b.  Postpetition income taxes paid (local, state, and federal)	$	0	$	0
c.   Postpetition employer payroll taxes accrued	$	0	$	0
d.  Postpetition employer payroll taxes paid	$	0	$	235,546
e.   Postpetition property taxes paid	$	0	$	0
f.   Postpetition other taxes accrued (local, state, and federal)	$	0	$	-52,159
g.  Postpetition other taxes paid (local, state, and federal)	$	0	$	21,619

Part 7: Questionnaire - During this reporting period:
a.   Were any payments made on prepetition debt? (if yes, see Instructions)	Yes ☐	No ☒
b.  Were any payments made outside the ordinary course of business without court approval? (if yes, see Instructions)	Yes ☐	No ☒
c.   Were any payments made to or on behalf of insiders?	Yes ☒	No ☐
d.  Are you current on postpetition tax return filings?	Yes ☒	No ☐
e.   Are you current on postpetition estimated tax payments?	Yes ☒	No ☐
f.   Were all trust fund taxes remitted on a current basis?	Yes ☒	No ☐
g.  Was there any postpetition borrowing, other than trade credit? (if yes, see Instructions)	Yes ☐	No ☒
h.  Were all payments made to or on behalf of professionals approved by the court?	Yes ☒	No ☐	N/A ☐
i.   Do you have: Worker’s compensation insurance?	Yes ☐	No ☒
If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions	)
Casualty/property insurance?	Yes ☐	No ☒
If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions	)
General liability insurance?	Yes ☐	No ☒
If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions	)
j.   Has a plan of reorganization been filed with the court?	Yes ☒	No ☐
k.  Has a disclosure statement been filed with the court?	Yes ☒	No ☐
1.  Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930?	Yes ☒	No ☐

UST Form 11-MOR (12/01/2021) 8

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

Part 8: Individual Chapter 11 Debtors (Only)
a.   Gross income (receipts) from salary and wages	$	0
b.  Gross income (receipts) from self-employment	$	0
c.   Gross income from all other sources	$	0
d.  Total income in the reporting period (a+b+c)	$	0
e.   Payroll deductions	$	0
f.   Self-employment related expenses	$	0
g.  Living expenses	$	0
h.  All other expenses	$	0
i.   Total expenses in the reporting period (e+f+g+h)	$	0
j.   Difference between total income and total expenses (d-i)	$	0
k.  List the total amount of all postpetition debts that are past due	$	0

1.  Are you required to pay any Domestic Support Obligations as defined by ll U.S.C § 101(14A)?	Yes ☐	No ☒
m.   If yes, have you made all Domestic Support Obligation payments?	Yes ☐	No ☐	N/A ☒

Privacy Act Statement

28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor’s progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee’s or examiner’s duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee’s systems of records notice, UST-001, “Bankruptcy Case Files and Associated Records.” See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).

I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.

/s/ Lawrence R. Perkins	Lawrence R. Perkins
Signature of Responsible Party	Printed Name of Responsible Party
Chief Restructuring Officer	12/20/2023
Title	Date

UST Form 11-MOR (12/01/2021) 9

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UST Form 11-MOR (12/01/2021) 10

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

UST Form 11-MOR (12/01/2021) 11

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

UST Form 11-MOR (12/01/2021) 12

Case 22-10995-LSS        Doc 906-1        Filed 12/20/23        Page 1 of 7

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

	)
In re:	)	Chapter 11
	)
PHASEBIO PHARMACEUTICALS, INC.	)	Case No. 22-10995 (LSS)
	)
Debtor.1	)
	)
	)

GLOBAL NOTES AND STATEMENT OF LIMITATIONS,

METHODOLOGY AND DISCLAIMERS REGARDING

NOVEMBER 30, 2023 MONTHLY OPERATING REPORT

The debtor and debtor in possession (the “Debtor”) in the above-captioned chapter 11 case (the “Chapter 11 Case”) has prepared and filed the attached November 30, 2023 Monthly Operating Report (the “MOR”) in the United States Bankruptcy Court for the District of Delaware (the “Court”). The Debtor has prepared the MOR with the assistance of its advisors and professionals solely for the purpose of complying with the reporting requirements applicable in the Chapter 11 Case and is in a format consistent with the instructions provided by the Office of the United States Trustee for the District of Delaware. The financial information contained herein is unaudited, limited in scope, and is not prepared in accordance with accounting principles generally accepted in the United States of America nor in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder.

In preparing the MOR, the Debtor relied on financial data available from the limited books and records available to it at the time of such preparation, as well as certain filings from the docket in the Chapter 11 Case. Although the Debtor made commercially reasonable efforts to ensure the accuracy and completeness of the MOR, inadvertent errors or omissions may exist.² For the avoidance of doubt, the Debtor hereby reserves its right to amend and supplement the MOR as may be necessary or appropriate.

Each signatory to the MOR has necessarily relied upon the efforts, statements, advice, and representations of personnel of the Debtor and its advisors and professionals. Each signatory has not (and could not have) personally verified the accuracy of each such statement, representation, and answer contained in the MOR.

¹ The last four digits of the Debtor’s federal tax identification numbers is 5697. The Debtor’s principal office is located at 3500 S. Dupont Hwy, Dover, Delaware 19901.

² The Debtor, and its agents, advisors, attorneys, and other professionals, as applicable, do not guarantee or warrant the accuracy or completeness of the data that is provided in the MOR.

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Part 1: Cash Receipts and Disbursements. The MOR presents the Debtor’s receipts and disbursements for the period from November 1, 2023 through November 30, 2023.

Part 2: Asset and Liability Status. The amounts identified in Part 2 of the MOR are derived from the Debtor’s unaudited and estimated accrual-based Balance Sheet as of November 30, 2023. Postpetition payables includes accounts payable. Please refer to the notes above for information about presentation and limitations that may exist in the MOR.

Part 3: Assets Sold or Transferred. No such transactions or activities during the period from November 1, 2023 through November 30, 2023.

Part 4: Income Statement (Statement of Operations). This MOR presents the Debtor’s best estimate of its cash-basis Statements of Operations for the period from November 1, 2023 through November 30, 2023. Please refer to the notes above for information about presentation and limitations that may exist in the MOR.

Part 5: Professional Fees and Expenses. The Debtor made approved payments to certain restructuring professionals during the period from November 1, 2023 through November 30, 2023.

Part 6: Postpetition Taxes. The Debtor collects, withholds, and incurs withholding, income, and property taxes, as well as other business and regulatory fees and assessments (collectively, the “Taxes and Fees”). The Debtor remits the Taxes and Fees to various federal, state, and local governments (collectively, the “Authorities”). The Debtor pays the Taxes and Fees to the Authorities on a periodic basis, remitting them monthly, semi-monthly, quarterly, semi-annually, or annually depending on the nature and incurrence of a particular Tax or Fee. On November 15, 2022, the Court entered an order [Docket No. 139] authorizing, but not directing, the Debtor to, among other things, pay Taxes and Fees that arise or accrue in the ordinary course of business on a postpetition basis consistent with prepetition practices. The Debtor believes that it is current with respect to any outstanding, postpetition amounts due.

Exhibit E: Balance Sheet. This MOR presents the Debtor’s best estimates of its accrual-based Balance Sheet at November 30, 2023. Accrued Clinical and MFG, and Other include Debtor Professional Fees incurred but unpaid as of November 30, 2023. Please refer to the notes above for information and limitations that may exist in the MOR.

2

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Statement of Cash Receipts and Disbursements Summary

Reporting Period: November 1 to November 30, 2023

(amounts in $)

	PhaseBio Pharmaceuticals, Inc.
Cash Beginning of Month	$	3,332,059.39
Receipts
Collections of Accounts Receivable		—
DIP Loan Proceeds		—
Inter-Company Cash Transfers		—
Cash Collateral Proceeds		—
Sale of Assets		—
Employee Benefit Refunds		—
Other		742.78
Total Receipts		742.78
Disbursements
Payroll & Taxes		—
Employee Benefits		—
Rent		—
Insurance		—
Essential Vendors		—
Other Operating Disbursements		42,175.25
Interest & Fees		—
Other		33,807.46
Professional Fees		697,217.94
U.S. Trustee Quarterly Fees		13,192.15
Court Costs		—
Total Disbursements		786,392.80
Net Cash Flow (Receipts Less Disbursements)		(785,650.02	)
Cash - End of Month	$	2,546,409.37

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Statement of Operations

Reporting Period: November 1 to November 30, 2023

(amounts in $)

Cash-Basis	PhaseBio Pharmaceuticals, Inc.
Gross Sales	$	—
Cost of goods sold		—
Gross profit		—
Selling expenses		—
General and administrative expenses		75,982.71
Other expenses		—
Depreciation and/or amortization (not included in 4b)		—
Interest & Fees		—
Taxes (local, state, and federal)		—
Reorganization items		710,410.09
Miscellaneous (Income) / Expense		(742.78	)
Profit (loss)	$	(785,650.02	)

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Balance Sheet

Reporting Period: November 1 to November 30, 2023

(amounts in $)

	PhaseBio Pharmaceuticals, Inc.
Cash	$	2,540,521
Prepaids		1,777,716
Fixed Assets		—
Right of Use Asset - Operating		—
Deposits		—
Total Assets		4,318,237
Accounts Payable		37,677,085
Payroll Liabilities		—
Current Portion of JMB Loan		—
Current Portion of Deferred Sublicense Revenue		—
Accrued Clinical and MFG, and Other		4,363,899
Accrued Interest		—
Short Term Operating Lease Liability		—
Long Term Portion of JMB Debt		—
Long Term Operating Lease Liability		—
Long Term Portion of Deferred Sublicense Revenue		—
Development Derivative		—
Total Liabilities		42,040,984
Common Stock		50,175
APIC - Common Stock		303,195,368
Treasury Stock		(24,178	)
Retained Earnings		(475,199,845	)
Net Income		134,255,733
Total Equity		(37,722,747	)
Total Liabilities and Equity		4,318,237

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Schedule of Payments to Insiders

Reporting Period: November 1 to November 30, 2023

The Debtor hereby submits this attestation regarding payments to insiders during November 2023.

All payments made to insiders were on account of ordinary course salaries and authorized travel and expense reimbursements in the post petition period and/or in accordance with interim and final orders authorizing the Debtor to pay, among other things, prepetition wages, salaries, employee benefits, and other compensation (Docket Nos. 48 & 141).

No non-cash transfers were made during this reporting period.

/s/ Lawrence Perkins	December 20, 2023
Signature of Authorized Individual	Date
Lawrence Perkins	Chief Restructuring Officer
Printed Name of Authorized Individual	Title of Authorized Individual

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

All bank statements and bank reconciliations for the reporting period

Reporting Period: November 1 to November 30, 2023

The Debtor hereby submits this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, bank reconciliations and journal entries during October 2023.

The Debtor’s standard practice is to ensure that bank reconciliations are completed before closing the books each reporting period. I attest that each of the Debtors’ bank accounts has been reconciled in accordance with their standard practices.

/s/ Lawrence Perkins	December 20, 2023
Signature of Authorized Individual	Date
Lawrence Perkins	Chief Restructuring Officer
Printed Name of Authorized Individual	Title of Authorized Individual

EX-99.2

Exhibit 99.2

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UNITED STATES BANKRUPTCY COURT

      DISTRICT OF DELAWARE

                   

	In Re. PHASEBIO PHARMACEUTICALS, INC	§		Case No. 22-10995
		§
		§
	Debtor(s)	§
				☐ Jointly Administered

Monthly Operating Report Chapter 11

Reporting Period Ended: 12/31/2023		Petition Date: 10/23/2022
Months Pending: 14		Industry Classification:	2	8	3	4
Reporting Method:	Accrual Basis ☐	Cash Basis ☒
Debtor’s Full-Time Employees (current):		0
Debtor’s Full-Time Employees (as of date of order for relief):		49

Supporting Documentation (check all that are attached):

(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)

☒ Statement of cash receipts and disbursements

☒ Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit

☒ Statement of operations (profit or loss statement)

☐ Accounts receivable aging

☐ Postpetition liabilities aging

☐ Statement of capital assets

☐ Schedule of payments to professionals

☒ Schedule of payments to insiders .

☒ All bank statements and bank reconciliations for the reporting period

☐ Description of the assets sold or transferred and the terms of the sale or transfer

/s/ James F. McCauley	James F. McCauley
Signature of Responsible Party	Printed Name of Responsible Party
01/25/2024
Date	Richards, Layton & Finger, P.A. One Rodney Square, 920 N. King Street Wilmington, DE 19801
	Address

STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies.

UST Form 11-MOR (12/01/2021) 1

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

Part 1: Cash Receipts and Disbursements		Current Month		Cumulative
a.	Cash balance beginning of month	$	2,546,409
b.	Total receipts (net of transfers between accounts)	$	0	$	28,217,350
c.	Total disbursements (net of transfers between accounts)	$	506,624	$	26,766,700
d.	Cash balance end of month (a+b-c)	$	2,039,785
e.	Disbursements made by third party for the benefit of the estate	$	0	$	16,343,728
f.	Total disbursements for quarterly fee calculation (c+e)	$	506,624	$	43,110,428
Part 2: Asset and Liability Status (Not generally applicable to Individual Debtors. See Instructions.)		Current Month
a.	Accounts receivable (total net of allowance)	$	0
b.	Accounts receivable over 90 days outstanding (net of allowance)	$	0
c.	Inventory ( Book ☐ Market ☐ Other ☒ (attach explanation))	$	0
d	Total current assets	$	3,737,324
e.	Total assets	$	3,737,324
f.	Postpetition payables (excluding taxes)	$	296,526
g.	Postpetition payables past due (excluding taxes)	$	0
h.	Postpetition taxes payable	$	0
i.	Postpetition taxes past due	$	0
j.	Total postpetition debt (f+h)	$	296,526
k.	Prepetition secured debt	$	0
l.	Prepetition priority debt	$	0
m.	Prepetition unsecured debt	$	176,602,290
n.	Total liabilities (debt) (j+k+l+m)	$	176,898,816
o.	Ending equity/net worth (e-n)	$	-173,161,491
Part 3: Assets Sold or Transferred		Current Month		Cumulative
a.	Total cash sales price for assets sold/transferred outside the ordinary course of business	$	0	$	36,644,483
b.	Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business	$	0	$	0
c.	Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b)	$	0	$	36,644,483
Part 4: Income Statement (Statement of Operations) (Not generally applicable to Individual Debtors. See Instructions.)		Current Month		Cumulative
a.	Gross income/sales (net of returns and allowances)	$	0
b.	Cost of goods sold (inclusive of depreciation, if applicable)	$	0
c.	Gross profit (a-b)	$	0
d.	Selling expenses	$	0
e.	General and administrative expenses	$	21,126
f.	Other expenses	$	0
g.	Depreciation and/or amortization (not included in 4b)	$	0
h.	Interest	$	0
i.	Taxes (local, state, and federal)	$	0
j.	Reorganization items	$	485,498
k.	Profit (loss)	$	-506,624	$	-16,965,730

UST Form 11-MOR (12/01/2021) 2

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

Part 5: Professional Fees and Expenses
				Approved Current Month		Approved Cumulative		Paid Current Month		Paid Cumulative
a.	Debtor’s professional fees & expenses (bankruptcy) Aggregate Total				$459,707		$12,225,129		$459,291		$12,224,712
	Itemized Breakdown by Firm
		Firm Name	Role
	i	Richards, Layton & Finger, P.A.	Local Counsel		$73,530		$2,047,868		$73,530		$2,047,868
	ii	Cooley LLP	Lead Counsel		$342,457		$6,041,805		$342,457		$6,041,805
	iii	SierraConstellation Partners, LLC	Financial Professional		$16,187		$995,154		$16,187		$995,154
	iv	Miller Buckfire, LLC	Financial Professional		$0		$2,500,000		$0		$2,500,000
	v	Omni Management Group, Inc.	Other		$7,712		$30,222		$7,295		$29,806
	vi	KPMG LLP	Other		$19,823		$610,079		$19,823		$610,079
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UST Form 11-MOR (12/01/2021) 3

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UST Form 11-MOR (12/01/2021) 4

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				Approved Current Month		Approved Cumulative	Paid Current Month	Paid Cumulative
b.	Debtor’s professional fees & expenses (nonbankruptcy) Aggregate Total				$0
	Itemized Breakdown by Firm
		Firm Name	Role
	i		Other		$0
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UST Form 11-MOR (12/01/2021) 5

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UST Form 11-MOR (12/01/2021) 6

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	lxxvi
	lxxvii
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	lxxix
	lxxx
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	lxxxii
	lxxxiii
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UST Form 11-MOR (12/01/2021) 7

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

	xcix
	c
c.	All professional fees and expenses (debtor & committees)	$501,685	$14,676,889	$501,685	$14,676,474

Part 6: Postpetition Taxes		Current Month	Cumulative
a.	Postpetition income taxes accrued (local, state, and federal)	$0	$0
b.	Postpetition income taxes paid (local, state, and federal)	$0	$0
c.	Postpetition employer payroll taxes accrued	$0	$0
d.	Postpetition employer payroll taxes paid	$0	$235,546
e.	Postpetition property taxes paid	$0	$0
f.	Postpetition other taxes accrued (local, state, and federal)	$0	$-52,159
g.	Postpetition other taxes paid (local, state, and federal)	$0	$21,619

Part 7: Questionnaire - During this reporting period:
a.	Were any payments made on prepetition debt? (if yes, see Instructions)		Yes ☐	No ☒
b.	Were any payments made outside the ordinary course of business without court approval? (if yes, see Instructions)		Yes ☐	No ☒
c.	Were any payments made to or on behalf of insiders?		Yes ☒	No ☐
d.	Are you current on postpetition tax return filings?		Yes ☒	No ☐
e.	Are you current on postpetition estimated tax payments?		Yes ☒	No ☐
f.	Were all trust fund taxes remitted on a current basis?		Yes ☒	No ☐
g.	Was there any postpetition borrowing, other than trade credit? (if yes, see Instructions)		Yes ☐	No ☒
h.	Were all payments made to or on behalf of professionals approved by the court?		Yes ☒	No ☐	N/A ☐
i.	Do you have:	Worker’s compensation insurance?	Yes ☐	No ☒
		If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions)
		Casualty/property insurance?	Yes ☐	No ☒
		If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions)
		General liability insurance?	Yes ☐	No ☒
		If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions)
j.	Has a plan of reorganization been filed with the court?		Yes ☒	No ☐
k.	Has a disclosure statement been filed with the court?		Yes ☒	No ☐
l.	Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930?		Yes ☒	No ☐

UST Form 11-MOR (12/01/2021) 8

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

Part 8: Individual Chapter 11 Debtors (Only)
a.	Gross income (receipts) from salary and wages	$	0
b.	Gross income (receipts) from self-employment	$	0
c.	Gross income from all other sources	$	0
d.	Total income in the reporting period (a+b+c)	$	0
e.	Payroll deductions	$	0
f.	Self-employment related expenses	$	0
g.	Living expenses	$	0
h.	All other expenses	$	0
i.	Total expenses in the reporting period (e+f+g+h)	$	0
j.	Difference between total income and total expenses (d-i)	$	0
k.	List the total amount of all postpetition debts that are past due	$	0

l.	Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)?	Yes ☐	No ☒
m.	If yes, have you made all Domestic Support Obligation payments?	Yes ☐	No ☐	N/A ☒

Privacy Act Statement

28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor’s progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee’s or examiner’s duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee’s systems of records notice, UST-001, “Bankruptcy Case Files and Associated Records.” See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).

I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.

/s/ Lawrence R. Perkins	Lawrence R. Perkins
Signature of Responsible Party	Printed Name of Responsible Party
Chief Restructuring Officer	01/25/2024
Title	Date

UST Form 11-MOR (12/01/2021) 9

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

UST Form 11-MOR (12/01/2021) 10

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

UST Form 11-MOR (12/01/2021) 11

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Debtor’s Name PHASEBIO PHARMACEUTICALS, INC Case No. 22-10995

UST Form 11-MOR (12/01/2021) 12

Case 22-10995-LSS        Doc 934-1        Filed 01/25/24        Page 1 of 7

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

	)
In re:	)	Chapter 11
	)
PHASEBIO PHARMACEUTICALS, INC.	)	Case No. 22-10995 (LSS)
	)
Debtor.1	)
	)
	)

GLOBAL NOTES AND STATEMENT OF LIMITATIONS,

METHODOLOGY AND DISCLAIMERS REGARDING

DECEMBER 31, 2023 MONTHLY OPERATING REPORT

The debtor and debtor in possession (the “Debtor”) in the above-captioned chapter 11 case (the “Chapter 11 Case”) has prepared and filed the attached December 31, 2023 Monthly Operating Report (the “MOR”) in the United States Bankruptcy Court for the District of Delaware (the “Court”). The Debtor has prepared the MOR with the assistance of its advisors and professionals solely for the purpose of complying with the reporting requirements applicable in the Chapter 11 Case and is in a format consistent with the instructions provided by the Office of the United States Trustee for the District of Delaware. The financial information contained herein is unaudited, limited in scope, and is not prepared in accordance with accounting principles generally accepted in the United States of America nor in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder.

In preparing the MOR, the Debtor relied on financial data available from the limited books and records available to it at the time of such preparation, as well as certain filings from the docket in the Chapter 11 Case. Although the Debtor made commercially reasonable efforts to ensure the accuracy and completeness of the MOR, inadvertent errors or omissions may exist.² For the avoidance of doubt, the Debtor hereby reserves its right to amend and supplement the MOR as may be necessary or appropriate.

Each signatory to the MOR has necessarily relied upon the efforts, statements, advice, and representations of personnel of the Debtor and its advisors and professionals. Each signatory has not (and could not have) personally verified the accuracy of each such statement, representation, and answer contained in the MOR.

¹  The last four digits of the Debtor’s federal tax identification numbers is 5697. The Debtor’s principal office is located at 3500 S. Dupont Hwy, Dover, Delaware 19901.

²  The Debtor, and its agents, advisors, attorneys, and other professionals, as applicable, do not guarantee or warrant the accuracy or completeness of the data that is provided in the MOR.

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Part 1: Cash Receipts and Disbursements. The MOR presents the Debtor’s receipts and disbursements for the period from December 1, 2023 through December 31, 2023.

Part 2: Asset and Liability Status. The amounts identified in Part 2 of the MOR are derived from the Debtor’s unaudited and estimated accrual-based Balance Sheet as of December 30, 2023. Postpetition payables includes accounts payable. Please refer to the notes above for information about presentation and limitations that may exist in the MOR.

Part 3: Assets Sold or Transferred. No such transactions or activities during the period from December 1, 2023 through December 31, 2023.

Part 4: Income Statement (Statement of Operations). This MOR presents the Debtor’s best estimate of its cash-basis Statements of Operations for the period from December 1, 2023 through December 31, 2023. Please refer to the notes above for information about presentation and limitations that may exist in the MOR.

Part 5: Professional Fees and Expenses. The Debtor made approved payments to certain restructuring professionals during the period from December 1, 2023 through December 31, 2023.

Part 6: Postpetition Taxes. The Debtor collects, withholds, and incurs withholding, income, and property taxes, as well as other business and regulatory fees and assessments (collectively, the “Taxes and Fees”). The Debtor remits the Taxes and Fees to various federal, state, and local governments (collectively, the “Authorities”). The Debtor pays the Taxes and Fees to the Authorities on a periodic basis, remitting them monthly, semi-monthly, quarterly, semi-annually, or annually depending on the nature and incurrence of a particular Tax or Fee. On November 15, 2022, the Court entered an order [Docket No. 139] authorizing, but not directing, the Debtor to, among other things, pay Taxes and Fees that arise or accrue in the ordinary course of business on a postpetition basis consistent with prepetition practices. The Debtor believes that it is current with respect to any outstanding, postpetition amounts due.

Part 7: Question h. On December 29, 2023, the Debtor made a payment to Richards, Layton and Finger P.A. (“RL&F”) in the full amount of the holdback requested in RL&F’s Fourth Interim Fee Application [Docket No. 855]. This payment inadvertently failed to account for the voluntary reduction in expenses RL&F agreed to in connection with the entry of the order approving such application [Docket No. 898]. Upon learning of the overpayment, RL&F promptly returned the amount of the voluntary reduction. Accordingly, the Debtor has not included the payment of the voluntary reduction as a disbursement in this MOR.

Exhibit E: Balance Sheet. This MOR presents the Debtor’s best estimates of its accrual-based Balance Sheet at December 31, 2023. Accrued Clinical and MFG, and Other include Debtor Professional Fees incurred but unpaid as of December 31, 2023. Please refer to the notes above for information and limitations that may exist in the MOR.

2

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Statement of Cash Receipts and Disbursements Summary

Reporting Period: December 1 to December 31, 2023

(amounts in $)

	PhaseBio Pharmaceuticals, Inc.
Cash Beginning of Month	$	2,546,409.37
Receipts
Collections of Accounts Receivable		—
DIP Loan Proceeds		—
Inter-Company Cash Transfers		—
Cash Collateral Proceeds		—
Sale of Assets		—
Employee Benefit Refunds		—
Other		0.21
Total Receipts		0.21
Disbursements
Payroll & Taxes		—
Employee Benefits		—
Rent		—
Insurance		—
Essential Vendors		—
Other Operating Disbursements		17,755.26
Interest & Fees		—
Other		3,370.59
Professional Fees		485,498.28
U.S. Trustee Quarterly Fees		—
Court Costs		—
Total Disbursements		506,624.13
Net Cash Flow (Receipts Less Disbursements)		(506,623.92	)
Cash - End of Month	$	2,039,785.45

Case 22-10995-LSS        Doc 934-1        Filed 01/25/24        Page 4 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Statement of Operations

Reporting Period: December 1 to December 31, 2023

(amounts in $)

Cash-Basis

	PhaseBio Pharmaceuticals, Inc.
Gross Sales	$	—
Cost of goods sold		—
Gross profit		—
Selling expenses		—
General and administrative expenses		21,125.85
Other expenses		—
Depreciation and/or amortization (not included in 4b)		—
Interest & Fees		—
Taxes (local, state, and federal)		—
Reorganization items		485,498.28
Miscellaneous (Income) / Expense		(0.21	)
Profit (loss)	$	(506,623.92	)

Case 22-10995-LSS        Doc 934-1        Filed 01/25/24        Page 5 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Balance Sheet

Reporting Period: December 1 to December 31, 2023

(amounts in $)

	PhaseBio Pharmaceuticals, Inc.
Cash	$	1,995,060
Prepaids		1,742,265
Fixed Assets		—
Right of Use Asset - Operating		—
Deposits		—
Total Assets		3,737,324
Accounts Payable		37,677,908
Payroll Liabilities		—
Current Portion of JMB Loan		—
Current Portion of Deferred Sublicense Revenue		—
Accrued Clinical and MFG, and Other		4,183,790
Accrued Interest		—
Short Term Operating Lease Liability		—
Long Term Portion of JMB Debt		—
Long Term Operating Lease Liability		—
Long Term Portion of Deferred Sublicense Revenue		—
Development Derivative		—
Total Liabilities		41,861,698
Common Stock		50,175
APIC - Common Stock		303,195,368
Treasury Stock		(24,178	)
Retained Earnings		(475,199,845	)
Net Income		133,854,106
Total Equity		(38,124,374	)
Total Liabilities and Equity		3,737,324

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Schedule of Payments to Insiders

Reporting Period: December 1 to December 31, 2023

The Debtor hereby submits this attestation regarding payments to insiders during December 2023.

All payments made to insiders were on account of ordinary course salaries and authorized travel and expense reimbursements in the post petition period and/or in accordance with interim and final orders authorizing the Debtor to pay, among other things, prepetition wages, salaries, employee benefits, and other compensation (Docket Nos. 48 & 141).

No non-cash transfers were made during this reporting period.

/s/ Lawrence Perkins	January 25, 2024
Signature of Authorized Individual	Date
Lawrence Perkins	Chief Restructuring Officer
Printed Name of Authorized Individual	Title of Authorized Individual

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In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

All bank statements and bank reconciliations for the reporting period

Reporting Period: December 1 to December 31, 2023

The Debtor hereby submits this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, bank reconciliations and journal entries during December 2023.

The Debtor’s standard practice is to ensure that bank reconciliations are completed before closing the books each reporting period. I attest that each of the Debtors’ bank accounts has been reconciled in accordance with their standard practices.

/s/ Lawrence Perkins	January 25, 2024
Signature of Authorized Individual	Date
Lawrence Perkins	Chief Restructuring Officer
Printed Name of Authorized Individual	Title of Authorized Individual

EX-99.3

Exhibit 99.3

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UNITED STATES BANKRUPTCY COURT

      DISTRICT OF DELAWARE

In Re. PHASEBIO PHARMACEUTICALS, INC		§	Case No. 22-10995
		§
		§
	Debtor(s)	§
			☐ Jointly Administered

Monthly Operating Report Chapter 11

Reporting Period Ended: 01/31/2024		Petition Date: 10/23/2022
Months Pending: 16		Industry Classification: 2 8 3 4

Reporting Method:	Accrual Basis ☐	Cash Basis ☒
Debtor’s Full-Time Employees (current):		0
Debtor’s Full-Time Employees (as of date of order for relief):		49

Supporting Documentation (check all that are attached):

(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)

☒ Statement of cash receipts and disbursements

☒ Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit

☒ Statement of operations (profit or loss statement)

☐ Accounts receivable aging

☐ Postpetition liabilities aging

☐ Statement of capital assets

☐ Schedule of payments to professionals

☒ Schedule of payments to insiders

☒ All bank statements and bank reconciliations for the reporting period

☐ Description of the assets sold or transferred and the terms of the sale or transfer

/s/ James F. McCauley		James F. McCauley
Signature of Responsible Party		Printed Name of Responsible Party
02/23/2024		Richards, Layton & Finger, P.A. One Rodney Square, 920 N. King Street
Date
		Wilmington, DE 19801
		Address

STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies.

UST Form 11-MOR (12/01/2021) 1

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

Part 1: Cash Receipts and Disbursements		Current Month		Cumulative
a.	Cash balance beginning of month	$	2,039,785
b.	Total receipts (net of transfers between accounts)	$	6,734	$	28,224,084
c.	Total disbursements (net of transfers between accounts)	$	395,460	$	27,162,160
d.	Cash balance end of month (a+b-c)	$	1,651,059
e.	Disbursements made by third party for the benefit of the estate	$	0	$	16,343,728
f.	Total disbursements for quarterly fee calculation (c+e)	$	395,460	$	43,505,888
Part 2: Asset and Liability Status (Not generally applicable to Individual Debtors. See Instructions.)		Current Month
a.	Accounts receivable (total net of allowance)	$	0
b.	Accounts receivable over 90 days outstanding (net of allowance)	$	0
c.	Inventory (Book ☐  Market ☐ Other ☒ (attach explanation))	$	0
d	Total current assets	$	3,349,920
e.	Total assets	$	3,349,920
f.	Postpetition payables (excluding taxes)	$	279,871
g.	Postpetition payables past due (excluding taxes)	$	0
h.	Postpetition taxes payable	$	0
i.	Postpetition taxes past due	$	0
j.	Total postpetition debt (f+h)	$	279,871
k.	Prepetition secured debt	$	0
l.	Prepetition priority debt	$	0
m.	Prepetition unsecured debt	$	176,602,290
n.	Total liabilities (debt) (j+k+l+m)	$	176,882,161
o.	Ending equity/net worth (e-n)	$	-173,532,241
Part 3: Assets Sold or Transferred		Current Month		Cumulative
a.	Total cash sales price for assets sold/transferred outside the ordinary course of business	$	0	$	36,644,483
b.	Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business	$	0	$	0
c.	Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b)	$	0	$	36,644,483
Part 4: Income Statement (Statement of Operations) (Not generally applicable to Individual Debtors. See Instructions.)		Current Month		Cumulative
a.	Gross income/sales (net of returns and allowances)	$	0
b.	Cost of goods sold (inclusive of depreciation, if applicable)	$	0
c.	Gross profit (a-b)	$	0
d.	Selling expenses	$	0
e.	General and administrative expenses	$	37,910
f.	Other expenses	$	0
g.	Depreciation and/or amortization (not included in 4b)	$	0
h.	Interest	$	0
i.	Taxes (local, state, and federal)	$	0
j.	Reorganization items	$	357,550
k.	Profit (loss)	$	-388,726	$	-17,354,456

UST Form 11-MOR (12/01/2021) 2

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

Part 5: Professional Fees and Expenses
				Approved Current Month		Approved Cumulative		Paid Current Month		Paid Cumulative
a.	Debtor’s professional fees & expenses (bankruptcy)  Aggregate Total				$319,513		$12,545,058		$319,513		$12,544,225
	Itemized Breakdown by Firm
		Firm Name	Role
	i	Richards, Layton & Finger, P.A.	Local Counsel		$67,567		$2,115,435		$67,567		$2,115,435
	ii	Cooley LLP	Lead Counsel		$218,419		$6,260,225		$218,419		$6,260,225
	iii	SierraConstellation Partners, LLC	Financial Professional		$9,131		$1,004,284		$9,131		$1,004,284
	iv	Miller Buckfire, LLC	Financial Professional		$0		$2,500,000		$0		$2,500,000
	v	Omni Management Group, Inc.	Other		$0		$30,639		$0		$29,806
	vi	KPMG LLP	Other		$24,396		$634,475		$24,396		$634,475
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UST Form 11-MOR (12/01/2021) 3

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

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UST Form 11-MOR (12/01/2021) 4

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

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				Approved Current Month		Approved Cumulative	Paid Current Month	Paid Cumulative
b.	Debtor’s professional fees & expenses (nonbankruptcy) Aggregate Total				$0				$0
	Itemized Breakdown by Firm
		Firm Name	Role
	i		Other		$0				$0
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UST Form 11-MOR (12/01/2021) 5

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

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UST Form 11-MOR (12/01/2021) 6

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

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	lxxix
	lxxx
	lxxxi
	lxxxii
	lxxxii
	lxxxiv
	lxxxv
	lxxxvi
	lxxxvi
	lxxxvi
	lxxxix
	xc
	xci
	xcii
	xciii
	xciv
	xcv
	xcvi
	xcvii
	xcviii
	xcix
	c
c.	All professional fees and expenses (debtor & committees)	$332,602	$15,009,491	$366,680	$15,009,075

UST Form 11-MOR (12/01/2021) 7

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

Part 6: Postpetition Taxes	Current Month		Cumulative
a.   Postpetition income taxes accrued (local, state, and federal)	$	0	$	0
b.  Postpetition income taxes paid (local, state, and federal)	$	0	$	0
c.   Postpetition employer payroll taxes accrued	$	0	$	0
d.  Postpetition employer payroll taxes paid	$	0	$	235,546
e.   Postpetition property taxes paid	$	0	$	0
f.   Postpetition other taxes accrued (local, state, and federal)	$	0	$	-52,159
g.  Postpetition other taxes paid (local, state, and federal)	$	0	$	21,619

Part 7: Questionnaire - During this reporting period:
a.   Were any payments made on prepetition debt? (if yes, see Instructions)	Yes ☐	No ☒
b.  Were any payments made outside the ordinary course of business without court approval? (if yes, see Instructions)	Yes ☐	No ☒
c.   Were any payments made to or on behalf of insiders?	Yes ☒	No ☐
d.  Are you current on postpetition tax return filings?	Yes ☒	No ☐
e.   Are you current on postpetition estimated tax payments?	Yes ☒	No ☐
f.   Were all trust fund taxes remitted on a current basis?	Yes ☒	No ☐
g.  Was there any postpetition borrowing, other than trade credit? (if yes, see Instructions)	Yes ☐	No ☒
h.  Were all payments made to or on behalf of professionals approved by the court?	Yes ☒	No ☐	N/A ☐
i.   Do you have: Worker’s compensation insurance?	Yes ☐	No ☒
If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions	)
Casualty/property insurance?	Yes ☐	No ☒
If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions	)
General liability insurance?	Yes ☐	No ☒
If yes, are your premiums current?	Yes ☐	No ☐	N/A ☒	(if no, see Instructions	)
j.   Has a plan of reorganization been filed with the court?	Yes ☒	No ☐
k.  Has a disclosure statement been filed with the court?	Yes ☒	No ☐
l.   Are you current with quarterly U.S. Trustee fees as set forth under 28 U.S.C. § 1930?	Yes ☒	No ☐

UST Form 11-MOR (12/01/2021) 8

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

Part 8: Individual Chapter 11 Debtors (Only)
a.	Gross income (receipts) from salary and wages				$	0
b.	Gross income (receipts) from self-employment				$	0
c.	Gross income from all other sources				$	0
d.	Total income in the reporting period (a+b+c)				$	0
e.	Payroll deductions				$	0
f.	Self-employment related expenses				$	0
g.	Living expenses				$	0
h.	All other expenses				$	0
i.	Total expenses in the reporting period (e+f+g+h)				$	0
j.	Difference between total income and total expenses (d-i)				$	0
k.	List the total amount of all postpetition debts that are past due				$	0
l.	Are you required to pay any Domestic Support Obligations as defined by 11 U.S.C § 101(14A)?	Yes ☐	No ☒
m.	If yes, have you made all Domestic Support Obligation payments?	Yes ☐	No ☐	N/A ☒

Privacy Act Statement

28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor’s progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee’s or examiner’s duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee’s systems of records notice, UST-001, “Bankruptcy Case Files and Associated Records.” See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).

I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.

/s/ Lawrence R. Perkins	Lawrence R. Perkins
Signature of Responsible Party	Printed Name of Responsible Party
Chief Restructuring Officer	02/23/2024
Title	Date

UST Form 11-MOR (12/01/2021) 9

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

UST Form 11-MOR (12/01/2021) 10

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

UST Form 11-MOR (12/01/2021) 11

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Debtor's Name PHASEBIO PHARMACEUTICALS, INC    Case No. 22-10995

UST Form 11-MOR (12/01/2021) 12

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 1 of 7

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

	)	Chapter 11
In re:	)
	)
PHASEBIO PHARMACEUTICALS, INC.	)
	)
Debor.1	)	Case No. 22-10995 (LSS)
	)
	)

GLOBAL NOTES AND STATEMENT OF LIMITATIONS,

METHODOLOGY AND DISCLAIMERS REGARDING

JANUARY 31, 2024 MONTHLY OPERATING REPORT

The debtor and debtor in possession (the “Debtor”) in the above-captioned chapter 11 case (the “Chapter 11 Case”) has prepared and filed the attached January 31, 2024 Monthly Operating Report (the “MOR”) in the United States Bankruptcy Court for the District of Delaware (the “Court”). The Debtor has prepared the MOR with the assistance of its advisors and professionals solely for the purpose of complying with the reporting requirements applicable in the Chapter 11 Case and is in a format consistent with the instructions provided by the Office of the United States Trustee for the District of Delaware. The financial information contained herein is unaudited, limited in scope, and is not prepared in accordance with accounting principles generally accepted in the United States of America nor in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder.

In preparing the MOR, the Debtor relied on financial data available from the limited books and records available to it at the time of such preparation, as well as certain filings from the docket in the Chapter 11 Case. Although the Debtor made commercially reasonable efforts to ensure the accuracy and completeness of the MOR, inadvertent errors or omissions may exist.² For the avoidance of doubt, the Debtor hereby reserves its right to amend and supplement the MOR as may be necessary or appropriate.

Each signatory to the MOR has necessarily relied upon the efforts, statements, advice, and representations of personnel of the Debtor and its advisors and professionals. Each signatory has not (and could not have) personally verified the accuracy of each such statement, representation, and answer contained in the MOR.

¹  The last four digits of the Debtor’s federal tax identification numbers is 5697. The Debtor’s principal office is located at 3500 S. Dupont Hwy, Dover, Delaware 19901.

²  The Debtor, and its agents, advisors, attorneys, and other professionals, as applicable, do not guarantee or warrant the accuracy or completeness of the data that is provided in the MOR.

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 2 of 7

Part 1: Cash Receipts and Disbursements. The MOR presents the Debtor’s receipts and disbursements for the period from January 1, 2024 through January 31, 2024.

Part 2: Asset and Liability Status. The amounts identified in Part 2 of the MOR are derived from the Debtor’s unaudited and estimated accrual-based Balance Sheet as of January 31, 2024. Postpetition payables includes accounts payable. Please refer to the notes above for information about presentation and limitations that may exist in the MOR.

Part 3: Assets Sold or Transferred. No such transactions or activities during the period from January 1, 2024 through January 31, 2024.

Part 4: Income Statement (Statement of Operations). This MOR presents the Debtor’s best estimate of its cash-basis Statements of Operations for the period from January 1, 2024 through January 31, 2024. Please refer to the notes above for information about presentation and limitations that may exist in the MOR.

Part 5: Professional Fees and Expenses. The Debtor made approved payments to certain restructuring professionals during the period from January 1, 2024 through January 31, 2024.

• MWE Payments: The total amount listed in the Paid Current Month column of item 5(c) of the monthly operating report filed for the period ending December 2023 [Docket No. 934] inadvertently included a payment for McDermott Will & Emery LLP (“MWE”) in the amount of $34,078.42 that was not actually made until January 31, 2024. Such payment is included in the Paid Current Month column of item 5(c) of this MOR. Because such payment was not made in December 2023, the duplicate payment is only included once in the amount listed in the Paid Cumulative column of item 5(c) of this MOR.

Part 6: Postpetition Taxes. The Debtor collects, withholds, and incurs withholding, income, and property taxes, as well as other business and regulatory fees and assessments (collectively, the “Taxes and Fees”). The Debtor remits the Taxes and Fees to various federal, state, and local governments (collectively, the “Authorities”). The Debtor pays the Taxes and Fees to the Authorities on a periodic basis, remitting them monthly, semi-monthly, quarterly, semi-annually, or annually depending on the nature and incurrence of a particular Tax or Fee. On November 15, 2022, the Court entered an order [Docket No. 139] authorizing, but not directing, the Debtor to, among other things, pay Taxes and Fees that arise or accrue in the ordinary course of business on a postpetition basis consistent with prepetition practices. The Debtor believes that it is current with respect to any outstanding, postpetition amounts due.

Exhibit E: Balance Sheet. This MOR presents the Debtor’s best estimates of its accrual-based Balance Sheet at January 31, 2024. Accrued Clinical and MFG, and Other include Debtor Professional Fees incurred but unpaid as of January 31, 2024. Please refer to the notes above for information and limitations that may exist in the MOR.

2

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 3 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Statement of Cash Receipts and Disbursements Summary

Reporting Period: January 1 to January 31, 2024

(amounts in $)

	PhaseBio
	Pharmaceuticals, Inc.
Cash Beginning of Month	$	2,039,785.45
Receipts
Collections of Accounts Receivable		—
DIP Loan Proceeds		—
Inter-Company Cash Transfers		—
Cash Collateral Proceeds		—
Sale of Assets		—
Employee Benefit Refunds		—
Other		6,734.07
Total Receipts		6,734.07
Disbursements
Payroll & Taxes		—
Employee Benefits		—
Rent		—
Insurance		—
Essential Vendors		—
Other Operating Disbursements		37,910.34
Interest & Fees		—
Other		—
Professional Fees		357,549.77
U.S. Trustee Quarterly Fees		—
Court Costs		—
Total Disbursements		395,460.11
Net Cash Flow (Receipts Less Disbursements)		(388,726.04	)
Cash - End of Month	$	1,651,059.41

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 4 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Statement of Operations

Reporting Period: January 1 to January 31, 2024

(amounts in $)

Cash-Basis
	PhaseBio
	Pharmaceuticals, Inc.
Gross Sales	$	—
Cost of goods sold		—
Gross profit		—
Selling expenses		—
General and administrative expenses		37,910.34
Other expenses		—
Depreciation and/or amortization (not included in 4b)		—
Interest & Fees		—
Taxes (local, state, and federal)		—
Reorganization items		357,549.77
Miscellaneous (Income) / Expense		(6,734.07	)
Profit (loss)	$	(388,726.04	)

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 5 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995 Balance Sheet

Reporting Period: January 1 to January 31, 2024

(amounts in $)

	PhaseBio
	Pharmaceuticals, Inc.
Cash	$	1,645,171
Prepaids		1,704,748
Fixed Assets		—
Right of Use Asset - Operating		—
Deposits		—
Total Assets		3,349,920
Accounts Payable		37,688,290
Payroll Liabilities		—
Current Portion of JMB Loan		—
Current Portion of Deferred Sublicense Revenue		—
Accrued Clinical and MFG, and Other		3,837,117
Accrued Interest		—
Short Term Operating Lease Liability		—
Long Term Portion of JMB Debt		—
Long Term Operating Lease Liability		—
Long Term Portion of Deferred Sublicense Revenue		—
Development Derivative		—
Total Liabilities		41,525,407
Common Stock		50,175
APIC - Common Stock		303,195,368
Treasury Stock		(24,178	)
Retained Earnings		(341,345,739	)
Net Income		(51,114	)
Total Equity		(38,175,488	)
Total Liabilities and Equity		3,349,920

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 6 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

Schedule of Payments to Insiders

Reporting Period: January 1 to January 31, 2024

The Debtor hereby submits this attestation regarding payments to insiders during January 2024.

All payments made to insiders were on account of ordinary course salaries and authorized travel and expense reimbursements in the post petition period and/or in accordance with interim and final orders authorizing the Debtor to pay, among other things, prepetition wages, salaries, employee benefits, and other compensation (Docket Nos. 48 & 141).

No non-cash transfers were made during this reporting period.

/s/ Lawrence Perkins	February 21, 2023
Signature of Authorized Individual	Date
Lawrence Perkins	Chief Restructuring Officer
Printed Name of Authorized Individual	Title of Authorized Individual

Case 22-10995-LSS        Doc 979-1        Filed 02/23/24        Page 7 of 7

In re: PhaseBio Pharmaceuticals, Inc.

Case No. 22-10995

All bank statements and bank reconciliations for the reporting period

Reporting Period: January 1 to January 31, 2024

The Debtor hereby submits this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, bank reconciliations and journal entries during January 2024.

The Debtor’s standard practice is to ensure that bank reconciliations are completed before closing the books each reporting period. I attest that each of the Debtors’ bank accounts has been reconciled in accordance with their standard practices.

/s/ Lawrence Perkins	February 21, 2023
Signature of Authorized Individual	Date
Lawrence Perkins	Chief Restructuring Officer
Printed Name of Authorized Individual	Title of Authorized Individual

XML

Document and Entity Information	Mar. 06, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Mar. 06, 2024
Entity Registrant Name	PhaseBio Pharmaceuticals, Inc.
Entity Incorporation State Country Code	DE
Entity File Number	001-38697
Entity Tax Identification Number	03-0375697
Entity Address Address Line 1	3500 S. Dupont Highway
Entity Address City Or Town	Dover
Entity Address State Or Province	DE
Entity Address Postal Zip Code	19901
City Area Code	610
Local Phone Number	981-6500
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, par value $0.001 per share
Trading Symbol	PHASQ
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Security Exchange Name	NONE
Amendment Flag	false
Entity Central Index Key	0001169245