X0306 4 2020-09-22 0001053691 Diffusion Pharmaceuticals Inc. DFFN 0001828068 ELDER WILLIAM ROBERT 1317 CARLTON AVENUE, SUITE 200 CHARLOTTESVILLE VA 22902 1 GC & Secretary Stock Option (Right to Buy) 0.82 2020-09-22 4 A 0 70000 0 A 2030-09-22 Common Stock 70000 70000 D In connection with the Reporting Person's new employment with the Issuer, the Compensation Committee of the Issuer's Board of Directors approved the grant of non-qualified stock options to the Reporting Person. The grant was made as an inducement material to the Reporting Person's acceptance of employment with the Issuer, in accordance with NASDAQ Listing Rule 5635(c)(4). The shares underlying the options will vest in 36 equal (or as nearly equal as possible) monthly installments on the last calendar day of each month over a 36-month period beginning October 31, 2020. /s/ William R. Elder 2020-10-14