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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on October 11, 2017</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333- </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</B></P>

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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</B></FONT></P>

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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>ADMA
Biologics, Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; font-size: 10pt; text-align: center"><B>Delaware</B></TD>
    <TD STYLE="width: 30%; font-size: 10pt; text-align: center"><B>8731</B></TD>
    <TD STYLE="width: 30%; font-size: 10pt; text-align: center"><B>56-2590442</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">of incorporation or</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">organization)</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Primary Standard Industrial</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Classification Code Number)</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(IRS Employer&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification Number)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>465 State Route 17</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ramsey, New Jersey 07446</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(201) 478-5552 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone
number,<BR>
including area code, of registrant&rsquo;s principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Adam S. Grossman </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>President and Chief Executive Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA Biologics, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>465 State Route 17</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ramsey, New Jersey 07446</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(201) 478-5552</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name, address, including zip code, and
telephone number,<BR>
including area code, of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Copies to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>David C. Schwartz, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DLA Piper LLP (US)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">51 John F. Kennedy Parkway, Suite
120</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Short Hills, New Jersey 07078&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">(973) 520-2550</P></TD>
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Ivan Blumenthal, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo P.C.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">666 Third Avenue</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">New York, New York 10017</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(212) 935-3000</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Approximate date of commencement of proposed
sale to the public: As soon as practicable after this Registration Statement becomes effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act
registration Statement number of the earlier effective registration statement for the same offering. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting
company,&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 71%; font-size: 10pt; text-align: justify">Large accelerated filer &#9744;</TD>
    <TD STYLE="width: 29%; font-size: 10pt; text-align: justify">Accelerated filer &#9744;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">Non-accelerated filer &#9744;<FONT STYLE="font-family: Wingdings">&nbsp;</FONT>(Do not check if a smaller
reporting company)</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">Smaller reporting company &#9746;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">Emerging growth company &#9746;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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 7(a)(2)(B) of the Securities Act. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="2" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 70%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 52%; font-size: 10pt; text-align: center; border-left: Black 2pt solid; border-top: Black 2pt solid; border-bottom: Black 1pt solid"><B>Title of each class of</B><BR>
<B>securities to be registered</B><SUP>(1)</SUP></TD>
    <TD STYLE="width: 27%; border-top: Black 2pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Proposed </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>maximum </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>aggregate</B><BR>
<B>offering price<SUP>(2)</SUP></B></P></TD>
    <TD STYLE="width: 21%; font-size: 10pt; text-align: center; border-right: Black 2pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; border-top: Black 2pt solid"><B>Amount of</B><BR>
<B>registration fee</B></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: center; border-left: Black 2pt solid; border-bottom: Black 2pt solid">Common Stock, $0.0001 par value per share </TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; border-bottom: Black 2pt solid; border-left: Black 1pt solid">$28,750,000</TD>
    <TD STYLE="vertical-align: bottom; font-size: 10pt; text-align: center; border-right: Black 2pt solid; border-bottom: Black 2pt solid; border-left: Black 1pt solid">$3,580</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Rule 416 under the Securities Act of 1933 (the &ldquo;Securities Act&rdquo;), this registration statement shall be deemed to
cover the additional securities (i) to be offered or issued in connection with any provision of any securities purported to be
registered hereby to be offered pursuant to terms which provide for a change in the amount of securities being offered or issued
to prevent dilution resulting from stock splits, stock dividends, or similar transactions and (ii) of the same class as the securities
covered by this registration statement issued or issuable prior to completion of the distribution of the securities covered by
this registration statement as a result of a split of, or a stock dividend on, the registered securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated
solely for the purpose of calculating the amount of the registration fee in accordance with Rule 457(o) under the Securities Act.
Includes the offering price of any additional securities that the underwriters have the option to purchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<TABLE CELLPADDING="3" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 100%; color: Red; border: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red">The
information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale
is not permitted.</P>

</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red"><B>PRELIMINARY PROSPECTUS</B><BR>
<B><I>Subject to completion, dated October <FONT STYLE="font-family: Symbol">11</FONT>, 2017</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red"><IMG SRC="logo.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares of Common
Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are offering an aggregate amount of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our common stock. The offering price per share is $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is listed on the Nasdaq
Capital Market under the symbol &ldquo;ADMA.&rdquo; On October 6, 2017, the closing sale price of our common stock on the Nasdaq
Capital Market was $3.19 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>We are an &ldquo;emerging growth company&rdquo;
under applicable federal securities laws and are subject to reduced public company reporting requirements. Investing in our common
stock involves risks, including those set forth in the &ldquo;Risk Factors&rdquo; section of this prospectus beginning on page
9, as well as those set forth in any prospectus supplement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The offering price to the public will be
determined by negotiation between us and the Underwriters, but will be fixed prior to pricing of the offering and may be at a discount
to the current market price. Please see the &ldquo;Underwriting&rdquo; section for more information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 71%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 14%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Per
Share</B></P></TD>
    <TD STYLE="width: 15%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Total</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">Public Offering Price</TD>
    <TD STYLE="font-size: 10pt">$&#9;</TD>
    <TD STYLE="font-size: 10pt">$&#9;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">Underwriting Discounts and Commissions</TD>
    <TD STYLE="font-size: 10pt">$&#9;</TD>
    <TD STYLE="font-size: 10pt">$&#9;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">Proceeds to Us (Before Expenses)(1)</TD>
    <TD STYLE="font-size: 10pt">$&#9;</TD>
    <TD STYLE="font-size: 10pt">$&#9;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) In addition to the underwriting discounts and commissions,
we agreed to pay or reimburse the Underwriters to cover certain out-of-pocket expenses of the Underwriters in connection with this
offering. Please see the &ldquo;Underwriting&rdquo; section for more information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Biotest AG and Biotest Pharmaceuticals
Corporation have contractually committed to purchase up to an aggregate amount of $12.5 million of shares of common stock in this
offering, on a pro-rata basis, at the public offering price. In addition, certain of our other existing stockholders have also
indicated an interest in purchasing shares of common stock in this offering at the public offering price. Not all of these indications
of interests are binding agreements or commitments to purchase, and thus certain parties may elect not to purchase shares of common
stock in this offering. Raymond James &amp; Associates, Inc. will receive an underwriting discount and commission of 4.0% on the
sale of shares of common stock to these existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The delivery of the shares is
expected to be made on or about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2017. We have granted the Underwriters an
option for a period of 30 days to purchase up to a total of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Sole book-running manager</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 17"><B>RAYMOND JAMES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP></SUP></FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>



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    <TD STYLE="width: 90%; text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Prospectus Summary</TD>
    <TD STYLE="width: 10%; text-align: right; padding-top: 0in; padding-bottom: 6pt">1</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Risk Factors</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">9</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Special Note Regarding Forward-Looking Statements</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">29</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Use of Proceeds</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">31</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Dilution</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">32</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Business</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">33</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Market Price of and Dividends on Common Stock and Related Stockholder Matters</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">50</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">51</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Directors, Executive Officers and Corporate Governance</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">65</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Executive Compensation</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">69</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Security Ownership of Certain Beneficial Owners and Management</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">74</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Certain Relationships and Related Transactions, and Director Independence</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">76</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Description of Securities</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">77</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Underwriting</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">81</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Legal Matters</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">87</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Experts</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">87</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Where You Can Find More Information</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">87</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Incorporation of Certain Information by Reference</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">88</TD></TR>
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    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Financial Statements</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">89</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless otherwise indicated, information contained in this prospectus
concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity
and market share, is based on information from our own management estimates and research, as well as from industry and general
publications and research, surveys and studies conducted by third parties. Management estimates are derived from publicly available
information, our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable.
In addition, assumptions and estimates of our and our industry&rsquo;s future performance are necessarily subject to a high degree
of uncertainty and risk due to a variety of factors, including those described in &ldquo;Risk Factors.&rdquo; These and other factors
could cause our future performance to differ materially from our assumptions and estimates. See &ldquo;Special Note Regarding Forward-Looking
Statements.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No dealer, salesperson or other person is authorized to give
any information or to represent anything not contained in this prospectus.&nbsp; You must not rely on any unauthorized information
or representations.&nbsp; This prospectus and any free writing prospectus do not constitute an offer to sell, or a solicitation
of an offer to purchase, any securities other than the registered securities to which they relate, nor do this prospectus and any
free writing prospectus constitute an offer to sell, or a solicitation of an offer to purchase, the securities offered by this
prospectus in any jurisdiction to or from any person whom or from whom it is unlawful to make such offer or solicitation of an
offer in such jurisdiction.&nbsp; The information contained in this prospectus or in any applicable free writing prospectus is
current only as of its date.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus includes our trademarks, trade names and service
marks, such as &ldquo;Nabi-HB&reg;&rdquo; and &ldquo;Bivigam&reg;&rdquo; which are protected under applicable intellectual property
laws and are the property of ADMA Biologics, Inc., or its subsidiaries. Solely for convenience, trademarks, trade names and service
marks referred to in this prospectus may appear without the &reg;, &trade; or SM symbols, but such references are not intended
to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable
licensor to these trademarks, trade names and service marks. We do not intend our use or display of other parties' trademarks,
trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement
or sponsorship of us by, these other parties.</P>

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    <TD STYLE="width: 96%">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Prospectus
Summary</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>This summary highlights selected information
contained elsewhere in this prospectus. This summary does not contain all the information that you should consider before investing
in our common stock. You should carefully read the entire prospectus, including &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; and the Financial Statements, before making an
investment decision. Unless the context otherwise requires, references in this prospectus to &ldquo;we,&rdquo; &ldquo;us,&rdquo;
&ldquo;our,&rdquo; the &ldquo;Company,&rdquo; &ldquo;ADMA Biologics&rdquo; and &ldquo;ADMA&rdquo; refer to ADMA Biologics, Inc.,
a Delaware corporation, and its subsidiaries.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA Biologics, Inc. is a vertically integrated commercial biopharmaceutical
and specialty immunoglobulin company that manufactures, markets and develops specialty plasma-derived biologics for the treatment
of immune deficiencies and prevention of certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. We currently
have two marketed products: Nabi-HB, indicated for the treatment of acute exposure to blood containing Hepatitis B surface antigen
(&ldquo;HBsAg&rdquo;); and Bivigam, indicated for the treatment of primary humoral immunodeficiency. We are also developing a pipeline
of plasma-derived therapeutics, including our lead pipeline product candidate, RI-002 for the treatment of Primary Immune Deficiency
Disease (&ldquo;PIDD&rdquo;). Our products and product candidates are intended to be used by physician specialists focused on caring
for immune-compromised patients with or at risk for certain infectious diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, we completed the acquisition of certain assets
(the &ldquo;Biotest Assets&rdquo;) of the Therapy Business Unit (&ldquo;BTBU&rdquo;) of Biotest Pharmaceuticals Corporation (&ldquo;BPC&rdquo;
and, together with its parent corporation Biotest AG, &ldquo;Biotest&rdquo;), which includes two United States Food and Drug Administration
(the &ldquo;FDA&rdquo;) licensed products, Nabi-HB (Hepatitis B Immune Globulin, Human) and Bivigam (Immune Globulin Intravenous,
Human) and a plasma fractionation facility located in Boca Raton, Florida (the &ldquo;Boca Facility&rdquo;) (the &ldquo;Biotest
Transaction&rdquo;). Nabi-HB and Bivigam are manufactured at the Boca Facility, an FDA-licensed facility certified by the German
Health Authority (the &ldquo;GHA&rdquo;). In addition to the manufacture and sale of Nabi-HB and Bivigam, we also provide contract
manufacturing for certain historical clients, including the sale of intermediate by-products. Immediately following the acquisition,
the Biotest Assets were contributed into our wholly-owned subsidiary, ADMA BioManufacturing, LLC (&ldquo;ADMA BioManufacturing&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Concurrent with the closing of the acquisition of the Biotest
Assets, we received $12.5 million in cash consideration in addition to a $15.0 million subordinated note from Biotest at 6% interest
payable to BPC with a maturity of five years, and Biotest committed to participate in any future equity offering or private placement
undertaken by us in an amount equal to up to $12.5 million on a pro-rata basis, which will be invested as part of this offering.
At the closing of the Biotest Transaction, we delivered to BPC an aggregate equity interest equal to 50%, less one share, of our
issued and outstanding capital stock comprised of 25%, or 4,295,580 shares, of our voting common stock, $0.0001 par value per share
(&ldquo;Common Stock&rdquo;), and 8,591,160 shares in the form of our non-voting common stock, $0.0001 par value per share (&ldquo;Non-Voting
Common Stock&rdquo;) (calculated as of immediately following the closing and on a post-closing issuance basis) (the &ldquo;Biotest
Equity Interest&rdquo;). The Non-Voting Common Stock is convertible into our Common Stock upon the occurrence of certain specified
events.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our Biologics License Application (the &ldquo;BLA&rdquo;)
with the FDA and initiate collections for this facility by the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Marketed Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Nabi-HB</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nabi-HB&nbsp;is a hyperimmune globulin that is rich in antibodies
to the Hepatitis B virus. Nabi-HB is a purified human polyclonal antibody product collected from plasma donors who have been previously
vaccinated with a Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing HBsAg, prenatal
exposure to infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive persons and household exposure to persons
with acute Hepatitis B virus infection. Hepatitis B is a potentially life-threatening liver infection caused by the Hepatitis B
virus. It is a major global health problem. It can cause chronic infection and puts people at high risk of death from cirrhosis
and liver cancer. Nabi-HB&nbsp;has a well-documented record of long-term safety and effectiveness since its initial market introduction.
FDA approval for Nabi-HB was received on March 24, 1999. Biotest acquired Nabi-HB from Nabi Biopharmaceuticals in 2007.</P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 96%">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Bivigam</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Bivigam is an intravenous immune globulin indicated for the
treatment of primary humoral immunodeficiency. This includes, but is not limited to, agammaglobulinemia, common variable immunodeficiency,
Wiskott-Aldrich syndrome and severe combined immunodeficiency. These primary immunodeficiencies (&ldquo;PIs&rdquo;) are a group
of genetic disorders. Initially thought to be very rare, it is now believed that as many as one in every 1,200-2,000 people has
some form of PI. Bivigam contains a broad range of antibodies similar to those found in normal human plasma. These antibodies are
directed against bacteria and viruses, and help to protect PI patients against serious infections. Bivigam is a purified, sterile,
ready-to-use preparation of concentrated Immunoglobulin G (&ldquo;IgG&rdquo;) antibodies. Antibodies are proteins in the human
immune system that work to defend against disease. FDA approval for Bivigam was received on December 19, 2012, and sales commenced
in the first quarter of 2013. In December 2016, BPC temporarily suspended the commercial production of Bivigam in order to focus
on the completion of planned improvements to the manufacturing process.&nbsp;Although we expect to resume production in the fourth
quarter of 2017, Bivigam is not expected to be available for sale throughout the remainder of 2017 and FDA clearance for relaunch
is expected to occur by mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Lead Pipeline Product Candidate &ndash; RI-002</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are currently developing our lead pipeline product candidate,
RI-002, for the treatment of PIDD and have completed a pivotal Phase III clinical trial, which met the primary endpoint of no Serious
Bacterial Infections (&ldquo;SBIs&rdquo;) reported. Secondary efficacy endpoints further demonstrated the benefits of RI-002 in
the low incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare, and unscheduled medical visits
and hospitalizations. RI-002 is derived from human plasma blended from normal donors and from donors tested to have high levels
of neutralizing titers to Respiratory Syncytial Virus (&ldquo;RSV&rdquo;). RI-002 is manufactured using a process called fractionation,
which purifies human IgG from this blended plasma pool resulting in a final Intravenous Immune Globulin (&ldquo;IVIG&rdquo;) product
enriched with naturally occurring polyclonal anti-pathogen antibodies (e.g., streptococcus pneumonia, H. influenza type B, Cytomegalovirus
(&ldquo;CMV&rdquo;), measles, tetanus, etc.). We use our proprietary RSV microneutralization assay to test for standardized levels
of neutralizing antibodies to RSV in the final drug product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment
of PIDD. In July 2016, the FDA issued a Complete Response Letter (the &ldquo;CRL&rdquo;). The CRL reaffirmed the issues set forth
in a November 2014 warning letter (the &ldquo;Warning Letter&rdquo;) that had been issued by the FDA to Biotest related to certain
issues identified at the Boca Facility, but did not cite any concerns with the clinical safety or efficacy data for RI-002 submitted
in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA approval of RI-002. The FDA identified
in the CRL, among other things, certain outstanding inspection issues and deficiencies related to Chemistry, Manufacturing and
Controls (&ldquo;CMC&rdquo;) and Good Manufacturing Practices (&ldquo;GMP&rdquo;) at the Boca Facility and at certain of our third-party
vendors, and requested documentation of corrections for a number of these issues. The FDA indicated in the CRL that it cannot grant
final approval of our BLA until, among other things, these deficiencies are resolved. Following the completion of the Biotest Transaction,
we now have control over the regulatory, quality, general operations and drug substance manufacturing process at the Boca Facility,
and our highest priority is to remediate the outstanding compliance issues that were identified at the Boca Facility in the Warning
Letter, and we plan to be inspection-ready for the FDA by the end of 2017. We are currently working with a consulting firm consisting
of quality management systems and biologics production subject matter experts in preparation for a re-inspection by the FDA in
order to downgrade the FDA inspection classification relative to the Warning Letter compliance issues as indicated in the CRL.
Following downgrading of the FDA inspection classification, we anticipate that we will be in a position to refile our BLA for RI-002
in mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Evaluation of RI-002 in PIDD Patients</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PIDD, a genetic disorder that causes a deficient or absent immune
system, is caused by hereditary or genetic defects and can affect anyone regardless of age or gender. PIDD patients are more vulnerable
to infections and more likely to suffer complications from these infections. IVIG is a plasma derived product that is used to prevent
serious infections in patients with PIDD. It is comprised of polyclonal antibodies, which are proteins produced by B-cells that
are used by the body&rsquo;s immune system to neutralize foreign objects such as bacteria and viruses. It is estimated that there
are about 250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. In the U.S.,
sales of immune globulin products for all its uses were reported to be approximately $4.8 billion in 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The RI-002 pivotal Phase III clinical trial was conducted as
a single arm study in which patients were treated approximately once per month for a period of 12 months plus 90 days for follow
up. Fifty-nine patients were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of serious infections to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic, or PK, data collection points including
antibody titers for certain agents, including RSV antibody levels at various time points after infusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RI-002 demonstrated positive results in the Phase III study
in patients with PIDD, meeting its primary endpoint of no Serious Bacterial Infections (&ldquo;SBI&rdquo;) reported. RI-002 was
administered in a total of 793 infusions with zero serious adverse events to 59 patients in nine treatment centers throughout the
U.S. These results, included in our BLA, more than meet the requirement specified by FDA guidance of &le; 1 SBI per patient-year.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD STYLE="width: 96%">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February 22, 2015, at the 2015 American Academy of Allergy,
Asthma &amp; Immunology Annual Meeting, scientific investigators reported on the secondary outcomes that included: a total of 93
days, or 1.66 days per patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and IgG trough levels above those required by the FDA for IVIG products. Additionally, there
was a marked increase in all of the measured specific anti-pathogen antibodies in PK subjects (n=31). The mean of maximum fold
increases in specific antibody levels after infusion of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV),
which were statistically significant fold increases from the pathogen's specific measured baselines. The safety profile of RI-002
is comparable to that of other immunoglobulins.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Rationale for the Potential Evaluation of RI-002 in RSV
Infected Patients</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RSV is a common virus that ordinarily leads to mild, cold-like
symptoms in healthy adults and children. In high-risk groups, such as the PIDD population and the other immune-compromised populations,
RSV can lead to a more serious infection and may even cause death. The polyclonal antibodies which are present in RI-002 are expected
to prevent infections in immune-compromised patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We previously conducted a randomized, double-blind, placebo-controlled
Phase II clinical trial to evaluate RI-001, RI-002&rsquo;s predecessor product candidate, in immune-compromised, RSV-infected patients.
This trial was conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial demonstrated
a statistically significant improvement in the change from baseline RSV titers to day 18 in the high dose and low dose treatment
groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The mean fold increase for high dose was 9.24 (95% CI
4.07, 21.02) and the observed mean fold increase for low dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated
patients was 1.42 (95% CI 0.64, 3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced
greater than a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no serious drug-related
adverse events reported during the trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From April 2009 through February 2011, RI-001 was also administered
to 15 compassionate use patients where physicians requested access to the product for treating their patients with documented lower
respiratory tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum samples
were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in RSV antibody titers from
baseline. Serum samples were not obtained from two patients that received Palivizumab. All 11 surviving patients received RI-001
within an average of 4.4 days after the onset of the diagnosis of RSV. The drug was well-tolerated in all 15 patients and there
were no reports of serious adverse events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience
and data obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various conferences
the past several years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Based on these results, we intend to evaluate RI-002 for the
treatment of RSV patients following FDA approval, if received, for treatment of PIDD.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Manufacturing and
Supply of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">In order to produce plasma-derived
immunoglobulin products, raw material plasma is collected from human donors and then manufactured into specialized products. Historically,
plasma for our products and product candidates has been collected from healthy donors at FDA-licensed plasma donation centers.
Source plasma is collected at any one of over 400 FDA-licensed donation centers located throughout the U.S., using a process called
automated plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular components
in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is tested and must be negative for
antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg and Hepatitis C virus (&ldquo;HCV&rdquo;), using FDA-licensed
serological test procedures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">After receipt of the source
plasma, the frozen plasma is thawed and pooled and goes through a process called &ldquo;fractionation.&rdquo; This process is referred
to as the Cohn method or cold ethanol method of fractionation. During cold ethanol fractionation, classes of proteins are precipitated
and removed by centrifugation or filtration. The fractionation process includes the following steps; precipitation and absorption,
depth filtration, centrifugation and chromatography. Because of the human origin of the raw material and the thousands of donations
required in the fractionation process, the major risk associated to plasma products is the transmission of blood-borne infectious
pathogens. These purification processes have the potential to reduce the viral load. The manufacturing process also utilizes a
multistep viral removal/inactivation system, which further increases the safety of the products. The following manufacturing processes
have been validated for their capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment, and nanofiltration. Incorporation of these processes in the manufacturing process ensures that the Company&rsquo;s products
comply with the requirements of the FDA and are safe and efficacious.</FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Sales and Commercialization
of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Historically, Nabi-HB
has been sold through independent distributors, drug wholesalers acting as sales agents, specialty pharmacies and other alternate
site providers. In the U.S., third-party drug wholesalers ship a significant portion of Nabi-HB through their distribution centers.
These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods
include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing
systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While we are working towards remediating the Warning Letter
and other CMC and GMP inspection deficiencies and eventually refiling our BLA resubmission for RI-002, we expect to continue our
commercialization efforts for our approved products and plan to bolster these initiatives by hiring a small, specialty sales force
to market Nabi-HB, Bivigam upon its relaunch and, upon approval by the FDA, RI-002 to hospitals, physician offices/clinics, and
other specialty treatment organizations. We also anticipate staffing our company with additional personnel for patient support,
medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. If and when we receive FDA approval, we may also use a network of national
distributors to assist with order fulfillment for RI-002 for use by healthcare professionals and hospitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Pharmaceutical Pricing
and Reimbursement of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">All sales of Nabi-HB and
Bivigam in the U.S. depend in part upon the availability of reimbursement from third-party payers. Third-party payers include government
health programs, managed care providers, private health insurers and other organizations. Nabi-HB and Bivigam are reimbursed or
purchased under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health Service program
and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a joint state and federal government
health plan that provides covered outpatient prescription drugs for low-income individuals. Under Medicaid, drug manufacturers
pay rebates to the states based on utilization data provided by the states.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Plasma Collection Facilities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our wholly-owned subsidiary, ADMA Bio Centers Georgia, Inc.
(&ldquo;ADMA BioCenters&rdquo;), operates FDA-licensed, GHA, and Korean Ministry of Food and Drug Safety (&ldquo;KMFDS&rdquo;) certified
source plasma collection facilities located in the U.S., which provide us with a portion of our blood plasma for the manufacture
of our products and product candidates. A typical plasma collection center, such as those operated by ADMA BioCenters, can collect
approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices depending upon the type
of plasma, quantity of purchase, and market conditions at the time of sale. Plasma collected from ADMA BioCenters' facilities that
is not used to manufacture our products or product candidates is sold to third-party customers in the U.S., and other locations
where we are approved globally under supply agreements or in the open &quot;spot&quot; market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Leadership</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The founders of ADMA have, combined, greater than 60 years of
experience marketing and distributing blood plasma products and devices. With our executive team, members of the Board and our
commercial team, we collectively possess over 200 years of deep medical, technical, development and commercial experience in the
biologics and pharmaceutical industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Strategy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our goal is to be a leader in developing, manufacturing and
commercializing specialized, targeted, plasma-derived therapeutics that are intended to extend and enhance the lives of individuals
who are naturally or medically immune-compromised. The key elements of our strategy for achieving this goal are as follows:</P>

</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 5%; text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="width: 91%"><B><I>Remediate the outstanding compliance deficiencies identified by the FDA in the CRL and Warning
    Letter at the Boca Facility</I></B>. Following the completion of the Biotest Transaction, we now have control over the regulatory,
    quality, general operations and drug substance manufacturing process at the Boca Facility. Our highest priority is to remediate
    the outstanding compliance issues that were identified by the FDA at the Boca Facility while owned and operated by Biotest.
    We have engaged a leading consulting firm with extensive experience in remediating compliance and inspection issues related
    to quality management systems that manages a robust team of subject matter experts in plasma derived products and biologic
    drugs to assist us in addressing all identified CMC and current Good Manufacturing Practices (&ldquo;cGMP&rdquo;) issues and
    deficiencies. We expect to be inspection-ready by the end of 2017 and subsequently expect to have the FDA inspection classification
    relative to the Warning Letter downgraded after the next inspection by the FDA.</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%; border: Black 1pt solid">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 91%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Increase
marketing efforts around Nabi-HB and relaunch Bivigam. </I></B>We plan to increase our marketing efforts and attend relevant medical
conferences throughout the remainder of 2017 and 2018, raising awareness of the risks associated with Hepatitis B and the benefits
and efficacy of Nabi-HB. Similarly, we plan to relaunch Bivigam following the submission and review by the FDA of a Prior Approval
Supplement (&ldquo;PAS&rdquo;), which will detail our optimized Bivigam manufacturing process.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0; text-indent: 0pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Obtain
FDA approval of RI-002 as a treatment for PIDD</I></B>. In the third quarter of 2015, the FDA accepted for review our BLA for
RI-002 for the treatment of PIDD. In July 2016, the FDA issued the CRL. The CRL did not cite any concerns with the clinical safety
or efficacy data for RI-002 submitted in our BLA, nor did the FDA request any additional clinical studies be completed prior to
FDA approval of RI-002. In connection with our remediation efforts at the Boca Facility, we anticipate that we will be in a position
to refile our BLA for RI-002 in mid-2018.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Commercialize
RI-002 as a treatment for PIDD</I></B>. We plan to enhance our recruiting initiatives and expand our existing specialty commercial
sales force to market RI-002 to hospitals, physician offices/clinics, and other specialty treatment and infusion center organizations.
We also anticipate staffing our company with additional personnel for patient support, medical affairs, quality assurance, regulatory
affairs, scientific affairs, third-party reimbursement, inventory and logistics, human resources, and financial and operational
management. We may also use a network of national distributors to fulfill orders for RI-002.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Expand
RI-002&rsquo;s FDA-approved uses</I></B>. If RI-002 is approved by the FDA as a treatment for PIDD, we plan to evaluate the clinical
and regulatory paths to grow the RI-002 franchise through expanded FDA-approved uses. We believe that there may be patient populations
beyond PIDD that would derive clinical benefit from RI-002, some of which may be eligible for orphan status. We plan to leverage
our previously conducted randomized, double-blind, placebo-controlled Phase II clinical trial evaluating RI-001, RI-002&rsquo;s
predecessor product candidate, in immune-compromised, RSV-infected patients to explore RI-002 for the treatment of RSV.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Expand
our pipeline with additional plasma-derived therapeutics</I></B>. Our core competency is in the development, manufacturing, testing
and commercialization of plasma-derived therapeutics. We believe there are a number of under-addressed medical conditions for
which plasma-derived therapeutics may be beneficial. Utilizing our intellectual property patents, which include our proprietary
testing assay and other standardization methods and technologies, we have identified potential new product candidates that we
may advance into preclinical activities in the near term.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B><I>Develop
and expand ADMA BioCenters</I></B>. In order to maintain partial control of our raw material supply as well as generate revenues
through additional sources, we operate ADMA BioCenters, a subsidiary that manages plasma collection facilities in the U.S. These
facilities hold FDA licenses, along with GHA and KMFDS certifications. Under the FDA licenses, ADMA BioCenters may collect normal
source plasma and high-titer RSV plasma, with a portion of the plasma being sold to third-party buyers. We also plan to grow through
the creation and licensing of additional ADMA BioCenters facilities in various regions of the U.S., including the recent construction
of our third facility for which we expect to file our BLA with the FDA by the end of 2017. Additional ADMA BioCenters may allow
us to cost-effectively secure additional plasma for our product manufacturing, and potentially increase revenues through the collection
and sale of normal source plasma and other hyperimmune plasma to third parties.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Risk Factors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Investing in our Common Stock involves a significant degree of risk. See &ldquo;Risk Factors&rdquo; beginning on page 9 of this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Common Stock. These risks include among others:</P>

</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
date, we have generated limited product revenues, we have a history of losses and will need to raise additional capital to operate
our business, which may not be available on favorable terms, if at all.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%; border: Black 1pt solid">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 91%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Failure
to timely and effectively remediate the outstanding Warning Letter and other inspection issues and deficiencies at the Boca Facility
will have a material adverse effect on our business.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may not realize the strategic and financial benefits currently anticipated from the Biotest Transaction.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may not be successful in integrating the BTBU into our business.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">By
completing the Biotest Transaction, we agreed to transfer assets that have historically generated substantially all of our revenue.</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Historically,
a single customer has accounted for a significant amount of our total revenue and, together with a second customer, represented
90% of our total revenue for the six months ended June 30, 2017, and, therefore, the loss of such single customer could have a
material adverse effect from this division on our business, results of operations and financial condition.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
credit agreement with Marathon Healthcare Finance Fund is subject to acceleration in specified circumstances which may result
in Marathon taking possession and disposing of any collateral.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Business
interruptions could adversely affect our business.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">The
new biosimilar pathway established as part of the healthcare reform may make it easier for competitors to market biosimilar products.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Corporate Information</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ADMA Biologics, Inc. was founded on June
24, 2004 as a New Jersey corporation and re-incorporated in Delaware on July 16, 2007. We operate through our wholly-owned subsidiaries
ADMA Plasma Biologics, ADMA BioManufacturing and ADMA BioCenters. ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of BTBU. ADMA BioCenters is the Company&rsquo;s source plasma collection business which operates in the U.S. Each
operational ADMA BioCenter, once approved, will have a license with the FDA and may obtain additional certifications from other
regulatory agencies such as the GHA and the KMFDS. ADMA BioCenters supplies ADMA with a portion of its raw material plasma for
the manufacture of its products and product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We maintain our headquarters at 465
State Route 17, Ramsey, New Jersey 07446. Our telephone number is (201) 478-5552. Our Florida campus is located at 5800 Park
of Commerce Boulevard, Northwest, Boca Raton, Florida 33487. The Florida telephone number is (561) 989-5800. Our company
maintains its website at www.admabiologics.com. Information contained in, or accessible through any of our websites, does not
constitute a part of this prospectus or any accompanying prospectus supplement or related free writing prospectus.&nbsp;</P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P> <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P> <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P> <P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%; border: Black 1pt solid">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 30%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 59%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center"><FONT STYLE="text-transform: uppercase"><B>The
Offering</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: left"><I>The summary below describes some of the terms of the Offering. For a more complete
    description of our Common Stock, see &ldquo;Description of Securities.&rdquo;</I></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Issuer</B></TD>
    <TD>&nbsp;</TD>
    <TD>ADMA Biologics, Inc.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Common Stock offered</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our Common Stock (the &ldquo;Offering&rdquo;).</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Price per share</B></TD>
    <TD>&nbsp;</TD>
    <TD>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Over-allotment option</B></TD>
    <TD>&nbsp;</TD>
    <TD>We have granted the Underwriters a 30-day option to purchase up to an additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our Common Stock.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Common stock outstanding before the Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>As of October 11, 2017,&nbsp;&nbsp;there were 17,202,244 shares of our voting common stock, par value $0.0001 per share (&ldquo;Common Stock&rdquo;) outstanding, and 8,591,160 shares of our non-voting common stock, par value $0.0001 per share (&ldquo;Non-Voting Common Stock&rdquo;), outstanding.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Common stock outstanding after the Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of our common stock (including Common Stock and Non-Voting Common Stock) will be outstanding after the Offering.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Use of proceeds</B></TD>
    <TD>&nbsp;</TD>
    <TD>We expect to use the proceeds received from the Offering for (i) the purchase of raw material inventory and the ramp-up
    of our manufacturing capabilities, (ii) continued remediation of the issues identified in the CRL and the Warning Letter,
    (iii) capital expenditures for the Boca Facility, (iv) product launch and medical education campaigns, (v) the build-out of
    our third ADMA BioCenters plasma collection facility, (vi) research and development activities for our plasma collection
    programs and specialty plasma products, and (vii) working capital needs and general corporate purposes.&nbsp;&nbsp;The
    proceeds received from the Offering are also expected to enable us, by June 30, 2018, to: (a) successfully complete our
    internal quality management system overhaul, (b) obtain approval, through a PAS from the FDA, for an optimized manufacturing
    process for Bivigam, (c) downgrade the FDA inspection classification relative to the Warning Letter, (d) obtain marketing
    clearance for the relaunch of Bivigam, and (e) refile our BLA for RI-002. See the section entitled &ldquo;Use of
    Proceeds&rdquo; for additional information.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Risk factors</B></TD>
    <TD>&nbsp;</TD>
    <TD>See &ldquo;Risk Factors&rdquo; beginning on page 9 of this prospectus for a discussion of factors you should consider carefully when making an investment decision.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Nasdaq Capital Market symbol</B></TD>
    <TD>&nbsp;</TD>
    <TD>&ldquo;ADMA.&rdquo;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Biotest AG and BPC have contractually committed
to purchase up to an aggregate amount of $12.5 million of shares of Common Stock in this Offering, on a pro-rata basis, at the
public offering price. In addition, certain of our other existing stockholders have also indicated an interest in purchasing shares
of Common Stock in this Offering at the public offering price. Not all of these indications of interests are binding agreements
or commitments to purchase, and thus certain parties may elect not to purchase shares of Common Stock in this Offering. Raymond
James &amp; Associates, Inc. will receive an underwriting discount and commission of 4.0% on the sale of shares of Common Stock
to these existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The number of shares of our Common Stock and Non-Voting Common
Stock to be outstanding after this Offering is based upon 17,202,244 shares of our Common Stock outstanding and 8,591,160 shares
of our Non-Voting Common Stock outstanding, in each case as of September 30, 2017, and does not include:&nbsp;</P>



</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD COLSPAN="3"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3,282,792
shares of our Common Stock issuable upon the exercise of outstanding options to purchase shares of our Common Stock as of September
30, 2017, with a weighted-average exercise price of $5.59 per share;</FONT></P></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%; border: Black 1pt solid">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 91%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0pt; text-indent: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">647,896
shares of our Common Stock reserved for future issuance under our equity compensation plans, consisting of (i) 20,439 shares of
Common Stock reserved for future issuance under the Amended and Restated ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation
Plan, and (ii) 627,457 shares of Common Stock reserved for future issuance under the 2007 Employee Stock Option Plan, as of September
30, 2017; and</FONT></P>
</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">188,859
shares of our Common Stock issuable upon the exercise of outstanding warrants to purchase shares of our Common Stock as of September
30, 2017, with a weighted-average exercise price of $7.76
per share.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Unless otherwise indicated, all numbers in this prospectus,
including information related to the number of shares of Common Stock outstanding immediately after completion of the Offering,
assume the underwriters do not exercise their option to purchase additional shares of our Common Stock.</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Risk
Factors</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Described below are various risks and uncertainties
that may affect our business. These risks and uncertainties are not the only ones we face. You should recognize that other
significant risks and uncertainties may arise in the future, which we cannot foresee at this time. Also, the risks that we
now foresee might affect us to a greater or different degree than expected. Certain risks and uncertainties, including ones
that we currently deem immaterial or that are similar to those faced by other companies in our industry or business in
general, may also affect our business. If any of the risks described below actually occur, our business, financial condition
or results of operations could be materially and adversely affected. You should carefully consider the following risk factors
and the section entitled &ldquo;Special Note Regarding Forward-Looking Statements&rdquo; before you decide to invest in our
securities.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Relating to our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>To date, we have generated limited product revenues, have
a history of losses and will need to raise additional capital to operate our business, which may not be available on favorable
terms, if at all.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To date, we have generated nearly all of our revenues from the
sale of plasma by our plasma collections facilities. Following completion of the Biotest Transaction, we began generating revenues
from our sale of Nabi-HB. Unless and until we receive approval from the FDA and other regulatory authorities for our RI-002 product
candidate and other products and product candidates in our pipeline, we do not expect to sell and generate revenue from the commercialization
of RI-002 and other products and product candidates in our pipeline, and we will be required to raise additional funds through
the sale of our equity and/or debt securities in order to establish a commercial salesforce, develop our commercial infrastructure
and recognize any significant revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our long-term liquidity will depend upon our ability to raise
additional capital, fund our research and development and commercial programs, establish and build out a commercial sales force
and commercial infrastructure and meet our ongoing obligations. If we are unable to successfully raise additional capital by the
end of the first quarter of 2018, we will likely not have sufficient cash flow and liquidity to fund our business operations as
we currently operate, forcing us to potentially curtail our activities and significantly reduce or cease operations. Even if we
are able to raise additional capital, such financings may only be available on unattractive terms, resulting in significant dilution
of stockholders' interests and, in such event, the value and potential future market price of our Common Stock may decline. In
addition, if we raise additional funds through license arrangements or through the disposition of any of our assets, it may be
necessary to relinquish potentially valuable rights to our product candidates or assets or grant licenses on terms that are not
favorable to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Based upon our projected revenue and expenditures for 2017 and
2018, including regulatory and consulting fees for the remediation of the Warning Letter and ongoing discussions with the FDA,
continuing implementation of our commercialization and expansion activities and certain other assumptions, we currently believe
that our cash, cash equivalents, projected revenue and accounts receivable, along with the proceeds from this Offering, which includes
the equity commitment from Biotest, will be sufficient to fund our operations, as currently conducted, into the second half of
2018. In order to have sufficient cash to fund our operations thereafter and to continue as a going concern, we will need to raise
additional equity or debt financing during the second half of 2018. This timeframe may change based upon how quickly we are able
to execute on our quality management systems&rsquo; remediation plans for the ADMA BioManufacturing operations, commercial manufacturing
ramp-up activities and the various financing options we are exploring. These estimates may change based upon whether or when the
FDA approves RI-002 or if any of our other assumptions change. We currently do not have arrangements to obtain additional financing.
Any such financing could be difficult to obtain or only available on unattractive terms and could result in significant dilution
to stockholders. Failure to secure necessary financing in a timely manner and on favorable terms could have a material adverse
effect on our business plan and financial performance and could delay, discontinue or prevent product development, clinical trial
or commercialization activities, or the approval of any of our potential products. In addition, we could be forced to reduce or
forgo sales and marketing efforts and forgo attractive business opportunities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Failure to timely and effectively remediate the outstanding
Warning Letter and other inspection issues and deficiencies at the Boca Facility will have a material adverse effect on our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In response to our BLA submission in 2015, in July 2016 the FDA issued the CRL. The CRL did
not specify or request the need for any addition clinical trials or data; however, the CRL reaffirmed the issues set forth in the
Warning Letter issued to Biotest relating to inspection issues identified at the Boca Facility. The FDA identified in the CRL,
among other things, certain outstanding inspection issues and deficiencies related to CMC and GMP at the Boca Facility and at certain
of our third-party vendors, and requested documentation of corrections for a number of these issues. The FDA indicated in the CRL
that it cannot grant final approval of our BLA until, among other things, these deficiencies are resolved. Following the completion
of the Biotest Transaction, we now have control over the regulatory, quality, general operations and drug substance manufacturing
process at the Boca Facility, and our highest priority is to remediate the outstanding compliance issues at the Boca Facility in
the Warning Letter. We have engaged a leading consulting firm with extensive experience in remediating compliance and inspection
issues related to quality management systems that manages a robust team of subject matter experts in plasma derived products and
biologic drugs to assist us in addressing all identified CMC and cGMP issues and deficiencies. We expect to be inspection-ready
by the end of 2017 and subsequently expect to have the FDA inspection classification relative to the Warning Letter downgraded
after the next inspection by the FDA. However, there can be no assurances that our efforts to remediate the Warning Letter and
other inspection issues and deficiencies at the Boca Facility will be effective or whether the FDA will accept these efforts. Failure
to timely remediate such Warning Letter and other inspection issues and deficiencies and/or receive approval from the FDA, as well
as passing an FDA inspection within this timeline, if at all, will have a material adverse effect on our business, prospects, financial
condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are currently not profitable and may never become profitable.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have a history of losses and expect to incur substantial
losses and negative operating cash flow for the foreseeable future, and we may never achieve or maintain profitability. For the
six months ended June 30, 2017 and 2016, we incurred net losses of $15.6 million and $10.6 million, respectively, and from our
inception in 2004 through June 30, 2017, we have incurred an accumulated deficit of $122.5 million. Even if we succeed in developing
and commercializing one or more of our product candidates, we expect to incur substantial losses for the foreseeable future and
may never become profitable. We also expect to continue to incur significant operating and capital expenditures and anticipate
that our operating expenses will increase substantially in the foreseeable future as we:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">remediate the outstanding compliance deficiencies
identified by the FDA in the CRL and Warning Letter at the Boca Facility;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">seek regulatory approval(s);</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">initiate commercialization and marketing efforts;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">implement additional internal systems, controls and
infrastructure;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">hire additional personnel;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expand and build out our plasma center network; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">integrate the Biotest Assets into our business.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also expect to experience negative cash flows for the foreseeable
future as we fund our operating losses and capital expenditures. As a result, we will need to generate significant revenues in
order to achieve and maintain profitability. We may not be able to generate these revenues or achieve profitability in the future.
Our failure to achieve or maintain profitability could negatively impact the value of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Although our financial statements have been prepared on
a going concern basis, we must raise additional capital during the second half of 2018 to fund our operations in order to continue
as a going concern.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CohnReznick LLP, our independent registered public accounting
firm, has included an explanatory paragraph in their opinion that accompanies our audited consolidated financial statements as
of and for the year ended December 31, 2016, indicating that our current liquidity position raises substantial doubt about our
ability to continue as a going concern. If we are unable to improve our liquidity position we may not be able to continue as a
going concern.&nbsp; If we are unable to continue as a going concern, we may have to liquidate our assets and may receive less
than the value at which those assets are carried on our financial statements. We may also be forced to make reductions in spending,
including delaying or curtailing our clinical development, trials or commercialization efforts, or seek to extend payment terms
with our vendors and creditors. Our ability to raise or borrow the capital needed to improve our financial condition may be hindered
by a variety of factors, including market conditions and the availability of such financing on acceptable terms, if at all. If
we are unable to obtain sufficient funding, our business, prospects, financial condition and results of operations will be materially
and adversely affected and we may be unable to continue as a going concern. The accompanying consolidated financial statements
do not include any adjustments that might result if we are unable to continue as a going concern and, therefore, be required to
realize our assets and discharge our liabilities other than in the normal course of business which could cause our security holders
to suffer the loss of all or a substantial portion of their investment in our company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We anticipate that our principal sources of liquidity, along
with the proceeds from this Offering, which includes the equity commitment from Biotest, will only be sufficient to fund our activities,
as currently conducted, into the second half of 2018. In order to have sufficient cash to fund our operations thereafter and to
continue as a going concern, we will need to raise additional equity or debt financing during the second half of 2018. This time
frame may change based upon how quickly we are able to execute on our quality management systems&rsquo; remediation plans for the
ADMA BioManufacturing operations, commercial manufacturing ramp-up activities and the various financing options we are exploring.
In order to have sufficient cash to fund our operations thereafter, we will need to raise additional equity or debt capital, and
we cannot provide any assurance that we will be successful in doing so. If our assumptions underlying our estimated expenses prove
to be wrong, we may have to raise additional capital sooner than the end of the first half of 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have a limited operating history upon which to base
an investment decision.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have not demonstrated an ability to perform the functions
necessary for the successful commercialization of RI-002. The successful development and commercialization of any product candidate
will require us or our collaborators to perform a variety of functions, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">undertaking product development and clinical trials;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">participating in regulatory approval processes;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">formulating and manufacturing products; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">conducting sales and marketing activities once product
approval is received.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our operations thus far provide a limited basis for you to assess
our ability to commercialize our product candidates and the advisability of investing in our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Business interruptions could adversely affect our business</I>.</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA BioCenters operates FDA-licensed, GLA and KMFDS certified
source plasma collection facilities located in the U.S., which provide us with a portion of our blood plasma for the manufacture
of our products and product candidates. Plasma collected from ADMA BioCenters' facilities that is not used to manufacture our products
and product candidates is sold to third-party customers in the U.S., and other locations where we are approved globally under supply
agreements or in the open &quot;spot&quot; market. Furthermore, we are progressing with the construction of our third plasma collection
facility, and we expect to file our BLA with the FDA and initiate collections for this facility by the end of 2017. Nabi-HB and
Bivigam are manufactured at the Boca Facility, an FDA-licensed facility certified by the GHA. A portion of our revenues are dependent
upon the continued operation of these facilities. Our operations are vulnerable to interruption by fire, weather related events
such as: hurricanes, wind and rain, electric power loss, telecommunications failure, and other acts of God, equipment failure and
breakdown, human error, employee issues and events beyond our control. We do not have detailed disaster recovery plans for our
facilities and we do not have a backup manufacturing facility, other than our other facilities, or contractual arrangements with
any other manufacturers in the event of a casualty to or destruction of any facility or if any facility ceases to be available
to us for any other reason. If we are required to rebuild or relocate any of our facilities, a substantial investment in improvements
and equipment would be necessary. We carry only a limited amount of business interruption insurance, which may not sufficiently
compensate us for losses that may occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our lead pipeline product candidate, RI-002, requires
extensive clinical data analysis and regulatory review and may require additional testing. Clinical trials and data analysis can
be very expensive, time-consuming and difficult to design and implement. If we are unsuccessful in obtaining regulatory approval
for RI-002, or any of our product candidates do not provide positive results, we may be required to delay or abandon development
of such product, which would have a material adverse impact on our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Continuing product development requires additional and extensive
clinical testing. Human clinical trials are very expensive and difficult to design and implement, in part because they are subject
to rigorous regulatory requirements. The clinical trial process is also time-consuming. While we have met the primary endpoint
for our pivotal Phase III trial for RI-002, we cannot provide any assurance or certainty regarding when we might receive regulatory
approval for our BLA for RI-002. Furthermore, failure can occur at any stage of the process, and we could encounter problems that
cause us to abandon our BLA or repeat clinical trials. The commencement and completion of clinical trials for any current or future
development product candidate may be delayed by several factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">unforeseen safety issues;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">determination of dosing issues;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">lack of effectiveness during clinical trials;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">slower than expected rates of patient recruitment;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">inability to monitor patients adequately during or
after treatment; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">inability or unwillingness of medical investigators
to follow our clinical protocols.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the FDA or an independent institutional review
board may suspend our clinical trials at any time if it appears that we are exposing participants to unacceptable health risks
or if the FDA finds deficiencies in our Investigational New Drug (&ldquo;IND&rdquo;) submissions or the conduct of these trials.
Therefore, we cannot provide any assurance or predict with certainty the schedule for future clinical trials. In the event we do
not ultimately receive regulatory approval for RI-002, we may be required to terminate development of our only product candidate.
Unless we acquire or develop other product candidates that are saleable, our business will be limited to plasma collection and
sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the results of our clinical trials do not support our
product candidate claims, completing the development of such product candidate may be significantly delayed or we may be forced
to abandon development of such product candidate altogether.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Even though our clinical trials for RI-002 have been completed
as planned, we cannot be certain that their results will support our product candidate claims. Success in preclinical testing and
early clinical trials does not ensure that later clinical trials will be successful, and we cannot be sure that the results of
later clinical trials will replicate the results of prior clinical trials and preclinical testing. The clinical trial process may
fail to demonstrate that our product candidates are safe for humans and effective for indicated uses. This failure would cause
us to abandon a product candidate and may delay development of other product candidates. Any delay in, or termination of, our clinical
trials will delay our ability to commercialize our product candidates and generate product revenues. In addition, our clinical
trials involve a relatively small patient population. Because of the small sample size, the results of these clinical trials may
not be indicative of future results. In addition, certain portions of the clinical trial and product testing for RI-002 were performed
outside of the U.S., and therefore, may not have been performed in accordance with standards normally required by the FDA and other
regulatory agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we do not obtain the necessary U.S. or worldwide regulatory
approvals to commercialize RI-002, we will not be able to sell RI-002.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we cannot obtain regulatory approval for RI-002, we will
not be able to generate revenue from this product candidate. As a result, our sources of revenue may continue to be from a product
mix consisting only of plasma collection and sales revenues, revenues generated from sales of our commercial products, revenues
generated from ongoing contract manufacturing for third parties and revenues generated from the sales of manufacturing intermediates.
We cannot assure you that we will receive the approvals necessary to commercialize RI-002 or any other product candidate we may
acquire or develop in the future. In order to obtain FDA approval of RI-002 or any other product candidate requiring FDA approval,
our clinical development must demonstrate that the product candidate is safe for humans and effective for its intended use, and
we must successfully complete an FDA BLA review. Obtaining FDA approval of any other product candidate generally requires significant
research and testing, referred to as preclinical studies, as well as human tests, referred to as clinical trials. Satisfaction
of the FDA's regulatory requirements typically takes many years, depends upon the type, complexity and novelty of the product candidate
and requires substantial resources for research, development and testing. We cannot predict whether our research and clinical approaches
will result in products that the FDA considers safe for humans and effective for indicated uses. The FDA has substantial discretion
in the product approval process and may require us to conduct additional preclinical and clinical testing or to perform post-marketing
studies. The approval process may also be delayed by changes in government regulation, future legislation or administrative action
or changes in FDA policy that occur prior to or during our regulatory review. Delays in obtaining regulatory approvals may:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">delay commercialization of, and our ability to derive
product revenues from, our product candidate;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">impose costly procedures on us; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diminish any competitive advantages that we may otherwise
enjoy.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Even if we comply with all FDA requests, the FDA may ultimately
reject our BLA. In addition, the FDA could determine that we must test additional subjects and/or require that we conduct further
studies with more subjects.&nbsp;We may never obtain regulatory approval for RI-002, or any other future potential product candidate
or label expansion activity. Failure to obtain FDA approval of any of our product candidates will severely undermine our business
by leaving us without the ability to generate additional accretive revenues. There is no guarantee that we will ever be able to
develop or acquire other product candidates. In foreign jurisdictions, we must receive approval from the appropriate regulatory
authorities before we can commercialize any products or product candidates outside the U.S. Foreign regulatory approval processes
generally include all of the risks associated with the FDA approval procedures described above. We cannot assure you that we will
receive the approvals necessary to commercialize any product candidate for sale outside the U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Even if we receive approval from the&nbsp;FDA to market
RI-002, our ability to market RI-002 for alternative applications could be limited.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The FDA strictly regulates marketing, labeling, advertising
and promotion of prescription drugs. These regulations include standards and restrictions for direct-to-consumer advertising, industry-sponsored
scientific and educational activities, promotional activities involving the Internet and off-label promotion. The FDA generally
does not allow drugs to be promoted for &ldquo;off-label&rdquo; uses&thinsp;&mdash;&thinsp;that is, uses that are not described
in the product&rsquo;s labeling and that differ from those that were approved by the FDA. Generally, the FDA limits approved uses
to those studied by a company in its clinical trials. In addition to the FDA approval required for new formulations, any new indication
for an approved product also requires FDA approval. We have sought approval from the FDA to market RI-002 for the treatment of
PIDD and, even if approved, we cannot be sure whether we will be able to obtain FDA approval for any desired future indications
for RI-002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While physicians in the U.S. may choose, and are generally permitted,
to prescribe drugs for uses that are not described in the product&rsquo;s labeling, and for uses that differ from those tested
in clinical studies and approved by the regulatory authorities, our ability to promote our products is narrowly limited to those
indications that are specifically approved by the FDA. &ldquo;Off-label&rdquo; uses are common across medical specialties and may
constitute an appropriate treatment for some patients in varied circumstances. Regulatory authorities in the U.S. generally do
not regulate the behavior of physicians in their choice of treatments. Regulatory authorities do, however, restrict communications
by pharmaceutical companies on the subject of off-label use. Although recent court decisions suggest that certain off-label communications
(e.g., truthful and non-misleading speech) may be protected under the First Amendment, the scope of any such protection is unclear,
and there are still significant risks in this area as it is unclear how these court decisions will impact the FDA&rsquo;s enforcement
practices, and there is likely to be substantial disagreement and difference of opinion regarding whether any particular statement
is truthful and not misleading. Moreover, while we intend to promote our products consistent with what we believe to be the approved
indication for our drugs, the FDA may disagree. If the FDA determines that our promotional activities fail to comply with the FDA&rsquo;s
regulations or guidelines, we may be subject to warnings from, or enforcement action by, these authorities. In addition, our failure
to follow FDA rules and guidelines relating to promotion and advertising may cause the FDA to issue warning letters or untitled
letters, bring an enforcement action against us, suspend or withdraw an approved product from the market, require a recall or institute
fines or civil fines, or could result in disgorgement of money, operating restrictions, injunctions or criminal prosecution, any
of which could harm our reputation and our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We depend on third-party researchers, developers and vendors
to develop RI-002, and such parties are, to some extent, outside of our control.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We depend on independent investigators and collaborators, such
as universities and medical institutions, contract laboratories, clinical research organizations, contract manufacturers and consultants
to conduct our preclinical, clinical trials, CMC testing and other activities under agreements with us. These collaborators are
not our employees and we cannot control the amount or timing of resources that they devote to our programs. These investigators
may not assign as great a priority to our programs or pursue them as diligently as we would if we were undertaking such programs
ourselves. If outside collaborators fail to devote sufficient time and resources to our product-development programs, or if their
performance is substandard, the approval of our FDA application(s), if any, and our introduction of new products, if any, will
be delayed. These collaborators may also have relationships with other commercial entities, some of whom may compete with us. If
our collaborators assist our competitors at our expense, our competitive position would be harmed. Additionally, any change in
the regulatory compliance status of any of our vendors may impede our ability to receive approval for our product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Historically a single customer has accounted for a significant
amount of our total revenue and, together with a second customer, represented 90% of our total revenue for the six months ended
June 30, 2017, and, therefore, the loss of such single customer could have a material adverse effect from this division on our
business, results of operations and financial condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Historically, a significant amount of our total revenue is attributable
to a single customer, BPC. For the six months ended June 30, 2017, two of our customers, SK and BPC, represented 90% of our total
revenue, with BPC representing 75% of our total revenue and SK representing 15% of our total revenue. Although we expect this concentration
to decrease over the remainder of the year as additional sales of Nabi-HB, revenues from our contract manufacturing services and
sale of intermediate by-products are reflected in our consolidated financial statements, these two customers are still expected
to account for a significant portion of our total revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our relationships with BPC and SK are arm's length commercial
relationships. The loss of either or both of BPC and SK as a customer or a material change in the revenue generated by either or
both of BPC and SK could have a material adverse effect on our business, results of operations and financial condition. Factors
that could influence our relationships with our customers include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to sell our products at competitive prices;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain features and quality standards
for our products sufficient to meet the expectations of our customers; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to produce and deliver a sufficient quantity
of our products in a timely manner to meet our customers&rsquo; requirements.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, an adverse change in the financial condition of
either or both of BPC and SK could have a material adverse effect on our business and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Issues with product quality could have a material adverse
effect upon our business, subject us to regulatory actions and cause a loss of customer confidence in us or our products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our success depends upon the quality of our products. Quality
management plays an essential role in meeting customer requirements, preventing defects, improving our products and services and
assuring the safety and efficacy of our products. Our future success depends on our ability to maintain and continuously improve
our quality management program. A quality or safety issue may result in adverse inspection reports, warning letters, product recalls
or seizures, monetary sanctions, injunctions to halt manufacture and distribution of products, civil or criminal sanctions, costly
litigation, refusal of a government to grant approvals and licenses, restrictions on operations or withdrawal of existing approvals
and licenses. An inability to address a quality or safety issue by us or by a third-party vendor in an effective and timely manner
may also cause negative publicity, a loss of customer confidence in us or our current or future products, which may result in the
loss of sales and difficulty in successfully commercializing our current products and launching new products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If physicians and patients do not accept and use our current
products or our future product candidates, our ability to generate revenue from these products will be materially impaired.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Even if the FDA approves a product made by ADMA Biologics, physicians
and patients may not accept and use it. Acceptance and use of our products will depend on a number of factors including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">perceptions by members of the healthcare community,
including physicians, about the safety and effectiveness of our products;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cost-effectiveness of our products relative to competing
products;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">availability of reimbursement for our products from
government or other healthcare payers; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the effectiveness of marketing and distribution efforts
by us and our licensees and distributors, if any.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The failure of our current and future products to find market
acceptance would harm our business and could require us to seek additional financing or make such financing difficult to obtain
on favorable terms, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Industry and other market data used in this prospectus
and our other materials, including those undertaken by us or our engaged consultants, may not prove to be representative of current
and future market conditions or future results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus and our other materials include statistical
and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third
parties and surveys and studies we commissioned regarding the market potential for our current products as well as RI-002. Although
we believe that such information has been obtained from sources believed to be reliable, neither the sources of such data, nor
we, can guarantee the accuracy or completeness of such information. While we believe these industry publications and third-party
research, surveys and studies are reliable, we have not independently verified such data. With respect to the information from
third-party consultants, the results of this data represent the independent consultants&rsquo; own methodologies, assumptions,
research, analysis, projections, estimates, composition of respondent pool, presentation of data and adjustments, each of which
may ultimately prove to be incorrect, and cause actual results and market viability to differ materially from those presented in
such report. Readers should not place undue reliance on this information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our long-term success may depend on our ability to supplement
our existing product portfolio through new product development or the in-license or acquisition of other new products and product
candidates, and if our business development efforts are not successful, our ability to achieve profitability may be adversely impacted.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our current product development portfolio consists primarily
of RI-002 and label expansion activities for Nabi-HB and Bivigam. We have initiated small scale preclinical activities to potentially
expand our current portfolio through new product development efforts or to in-license or acquire additional products and product
candidates. If we are not successful in developing or acquiring additional products and product candidates, we will have to depend
on our ability to raise capital for, and the successful development and commercialization of, RI-002, as well as the revenue we
may generate from the sale of Nabi-HB, Bivigam, contract manufacturing, and intermediates and plasma attributable to the operations
of ADMA BioCenters, to support our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not realize the strategic and financial benefits
currently anticipated from the Biotest Transaction.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may not realize all of the strategic and financial benefits
currently anticipated from the Biotest Transaction. For example, we may not realize the anticipated benefits of acquiring control
of all aspects of RI-002 drug manufacturing, regulatory affairs and business operations. In addition, we may not be able to resolve
the outstanding issues at the Boca Facility that resulted in the Warning Letter. As part of the remediation of the Warning Letter,
in December 2016, BTBU temporarily suspended the production of Bivigam in order to focus on the completion of planned improvements
to the manufacturing process, and it is uncertain when production of Bivigam will resume. As a result, it was communicated to customers
that Bivigam will not be available for sale or distribution at least through the end of 2017. If we are unable to address the underlying
concerns at the Boca Facility that resulted in the Warning Letter and the CRL in July 2016 that identified deficiencies and inspection
issues related to certain of our third-party contract manufacturers, including BPC, and provide requested documentation of corrections
for a number of these issues, we will not be able to resume the manufacturing of Bivigam or reapply for FDA approval to market
and sell RI-002, which could have a material adverse effect on us. Failure to resolve any outstanding issues or any administrative
actions taken or changes made by the FDA toward our contract manufacturers, vendors or us could impact our ability to receive approval
for RI-002, including the timing thereof, disrupt our business operations and the timing of our commercialization efforts and may
have a material adverse effect on our financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, on December 20, 2016, BTBU received notice from
one of its contract fillers stating that the manufacturing services agreement with such contract filler had expired and will need
to be renegotiated prior to April 1, 2017 to avoid any interruption in the services provided under the agreement. The services
provided under this agreement relate to the filling and packaging of Nabi-HB and Bivigam. This vendor is the only provider of this
service currently approved by the FDA to fill and package these products. In the event that we or BTBU are required to negotiate
a new agreement, the terms of such new agreement may not be as favorable to us as the current agreement and there can be no assurances
that a new agreement will be reached, which, in each case, could have a material adverse effect on our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Through the Biotest Transaction, we assumed a contract manufacturing
agreement related to the fractionation of plasma provided by one of our third-party customers that includes certain minimum production
requirements. If we are unable to meet our contractual obligations under this agreement, we may be liable for the payment of liquidated
damages. If we are unable to resolve these issues, such failure could have a material adverse effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is also uncertainty as to whether the combined business
will be able to operate at a profitable level in the future given the relatively small size of the Biotest Assets and the competitive
environment in which it operates. Furthermore, there is no assurance and no definitive timeline as to when or if the Warning Letter
will be resolved by the FDA, or when the FDA will inspect our operations. These factors could have a material adverse effect on
us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may not be successful in integrating the Biotest Assets
into our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Biotest Transaction involves the integration of two businesses
that previously have operated independently with principal offices in two distinct locations. We are expending significant management
attention and resources to integrate the two companies following completion of the Biotest Transaction. The failure to integrate
successfully and to manage successfully the challenges presented by the integration process may result in the combined company&rsquo;s
failure to achieve some or all of the anticipated benefits of the Biotest Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Potential difficulties that may be encountered in the integration
process include, but are not limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">using our cash and other assets efficiently to develop the business
on a post-Biotest Transaction basis; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">appropriately managing the liabilities of our Company on a post-Biotest
Transaction basis; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">potential unknown or currently unquantifiable liabilities associated
with the Biotest Transaction and the operations of our Company on a post-Biotest Transaction basis; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">potential unknown and unforeseen expenses, delays or regulatory conditions
associated with the Biotest Transaction; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">performance shortfalls in one or both of the businesses as a result
of the diversion of the applicable management&rsquo;s attention caused by completing the Biotest Transaction and integrating the
business. </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Delays in the integration process could adversely affect the
combined company&rsquo;s business, financial results, financial condition and stock price following the Biotest Transaction. Even
if the combined company were able to integrate the business operations successfully, there can be no assurance that this integration
will result in the realization of the full benefits of synergies, innovation and operational efficiencies that may be possible
from this integration or that these benefits will be achieved within a reasonable period of time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>By completing the Biotest Transaction, we agreed to transfer
assets that have historically generated substantially all of our revenue.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer to BPC ownership of the two plasma collection facilities in the U.S. and certain related assets and
liabilities. These plasma collection facilities to be transferred have historically been the source of substantially all of our
revenue. Although we are currently constructing a new plasma collection facility, we cannot guarantee we will generate similar
revenues as historically reported from the plasma collection facilities we will transfer to BPC on January 1, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Biotest Transaction exposes us to liabilities, a release
of claims and competition that could have a material adverse effect on our business, financial condition, results of operations
and stock price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the consideration for the Biotest Transaction, we
agreed to assume certain liabilities of BPC related to BTBU. Because we agreed to assume liabilities related to the Biotest Assets,
we are exposed to liabilities that are not within our control and we cannot predict the extent to which these liabilities may arise
in the future. Any liabilities that may arise could have a material adverse effect on our business, financial condition, results
of operations and stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Master Purchase and Sale Agreement, dated as of January
21, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the &ldquo;Purchase Agreement&rdquo;), with
BPC, and for certain limited purposes set forth in the Purchase Agreement, Biotest AG, BPC&rsquo;s parent corporation, and Biotest
US Corporation, a Delaware corporation and subsidiary of Biotest AG (together with Biotest AG, the &ldquo;Biotest Guarantors&rdquo;),
contains indemnification undertakings by the parties thereto for certain losses, including, among other things, indemnification
for any losses arising from breaches of its representations, warranties, covenants and agreements in the Purchase Agreement. In
addition, we have agreed to indemnify BPC for any assumed liability, and BPC has agreed to indemnify us for any excluded asset
or excluded liability. The parties' representations and warranties (other than fundamental representations and warranties) survive
for 15 months following the closing of the Biotest Transaction, fundamental representations survive indefinitely, tax representations
survive until the date that is 30 days following the applicable statute of limitations, covenants to be performed on or prior to
the closing of the Biotest Transaction survive for 15 months following the closing of the Biotest Transaction, and post-closing
covenants survive in accordance with their terms or if no term is specified, indefinitely. Each party&rsquo;s indemnification obligations
with respect to (a) its representations and warranties (other than its fundamental representations) are subject to a $25,000 mini-basket
and $750,000 true deductible and (b) its representations, warranties and pre-closing covenants are subject to a $25,000,000 cap.
Significant indemnification claims by BPC or its affiliates or a breach by BPC or its affiliates of any indemnity obligations owed
to us under the Purchase Agreement could have a material adverse effect on our business, financial condition, results of operations
and stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the consideration for the Biotest Transaction, the
parties also agreed to a mutual release, pursuant to which the parties agreed not to bring any suit, action or claim for any breach
or default under the existing manufacturing and supply agreement or master services agreement prior to the closing of the Biotest
Transaction. This release remains effective from and after the closing of the Biotest Transaction. Without this release, we would
have otherwise been permitted to bring a claim against BPC related to the Warning Letter that could have possibly entitled us to
remedies in the event that we are unable to resolve the Warning Letter. The inability to seek these remedies could have a material
adverse effect on our business, financial condition, results of operations and stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, while the Purchase Agreement contains certain non-compete
clauses, such clauses do not prohibit either the Biotest Guarantors or their other affiliates from directly or indirectly (other
than through BPC) competing with BTBU after the closing of the Biotest Transaction. Such competition could result in the loss of
existing or new customers, price reductions, reduced operating margins and loss of market share, which could have a material adverse
effect on our business, financial condition, results of operations and stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If our due diligence investigation for the Biotest Transaction
was inadequate and/or the representations, warranties and indemnification given to us by BPC was inadequate, then it could result
in a material adverse effect on our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Even though we believe that we conducted a reasonable and customary
due diligence investigation of BTBU and we received market representations, warranties and indemnities from Biotest and BPC, we
cannot be sure that our due diligence investigation uncovered all material or non-material issues that may be present, or if we
did not receive access or the ability to diligence certain information, as well as appropriate representations and or warranties,
or that it would be possible to uncover all material issues through customary due diligence, or that issues outside of our control
will not later arise or that all material issues which are or could be discovered are not otherwise covered by the representations
and warranties of Biotest and BPC and therefore indemnifiable. If we failed to identify any important issues, or if it were not
possible to uncover all material issues or if we did not receive representations and warranties and indemnification concerning
any or all material or non-material issues, it could result in a material adverse effect on our business, financial condition,
results of operations and stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our credit agreement (the &ldquo;Credit Agreement&rdquo;)
with Marathon Healthcare Finance Fund, L.P. (&ldquo;Marathon&rdquo;) is subject to acceleration in specified circumstances, which
may result in Marathon taking possession and disposing of any collateral.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October 10, 2017, we entered into the Credit Agreement with
Marathon which provides for a senior secured term loan facility in an aggregate amount of up to $40.0 million (collectively, the
&ldquo;Credit Facility&rdquo;), comprised of (i) a term loan in the principal amount of $30.0 million (the &ldquo;Tranche One
Loan&rdquo;), (ii) an additional term loan to be made in the maximum principal amount not to exceed $10.0 million (the &ldquo;Tranche
Two Loan;&rdquo; and, together with the Tranche One Loan, the &ldquo;Loans&rdquo;), which Tranche Two Loan availability is subject
to the satisfaction of certain conditions. We used approximately $17.0 million of the Tranche One Loan to retire and pay in full
our existing credit facility with Oxford Finance LLC (&ldquo;Oxford&rdquo;) and the obligations thereunder in accordance with
the terms of the Loan and Security Agreement with Oxford, dated as of June 19, 2015, by and among Oxford, the other lenders party
thereto, us, ADMA Plasma Biologics and ADMA BioCenters, as amended on May 13, 2016 (the &ldquo;LSA&rdquo;). The Loans each have
a maturity date of April 10, 2022 (the &ldquo;Maturity Date&rdquo;), subject to acceleration pursuant to the Credit Agreement,
including upon an Event of Default (as defined in the Credit Agreement). Borrowings under the Credit Agreement bear interest at
a rate per annum equal to LIBOR plus 9.50% with a 1% LIBOR floor; provided, however, that in the event that we achieve sales of
not less than $61.7 million for the 2018 calendar year and the Tranche Two Loan has been funded, then the borrowings under the
Credit Agreement will bear interest at a rate of LIBOR plus 7.75% with a 1% LIBOR floor. During an Event of Default under the
Credit Agreement, the outstanding amount of indebtedness under the Credit Agreement will bear interest at a rate per annum equal
to the interest rate then applicable to the borrowings under the Credit Agreement plus 5% per annum. The Loans are secured by
substantially all of our assets, including our intellectual property. Events of Default include, among others, non-payment of
principal, interest, or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency
events, material judgments, cross-defaults to material contracts and events constituting a change of control. The occurrence of
an Event of Default could result in, among other things, the termination of commitments under the Credit Facility, the declaration
that all outstanding Loans are immediately due and payable in whole or in part, and Marathon taking immediate possession of, and
selling, any collateral securing the Loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Developments by competitors may render our products or
technologies obsolete or non-competitive.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The biotechnology and pharmaceutical industries are intensely
competitive and subject to rapid and significant technological change. Our current products, RI-002 (if we obtain regulatory approval)
and any future product we may develop will have to compete with other marketed therapies. In addition, other companies may pursue
the development of pharmaceuticals that target the same diseases and conditions that we are targeting. We face competition from
pharmaceutical and biotechnology companies in the U.S. and abroad. In addition, companies pursuing different but related fields
represent substantial competition. Many of these organizations competing with us have substantially greater financial resources,
larger research and development staffs and facilities, longer product development history in obtaining regulatory approvals and
greater manufacturing and marketing capabilities than we do. These organizations also compete with us to attract qualified personnel
and parties for acquisitions, joint ventures or other collaborations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we are unable to protect our patents, trade secrets
or other proprietary rights, if our patents are challenged or if our provisional patent applications do not get approved, our competitiveness
and business prospects may be materially damaged.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As we move forward in clinical development we are also uncovering
novel aspects of our product and are drafting patents to cover our inventions.&nbsp;&nbsp;We rely on a combination of patent rights,
trade secrets and nondisclosure and non-competition agreements to protect our proprietary intellectual property, and we will continue
to do so. There can be no assurance that our patent, trade secret policies and practices or other agreements will adequately protect
our intellectual property. Our issued patents may be challenged, found to be over-broad or otherwise invalidated in subsequent
proceedings before courts or the USPTO. Even if enforceable, we cannot provide any assurances that they will provide significant
protection from competition. The processes, systems, and/or security measures we use to preserve the integrity and confidentiality
of our data and trade secrets may be breached, and we may not have adequate remedies as a result of any such breaches. In addition,
our trade secrets may otherwise become known or be independently discovered by competitors. There can be no assurance that the
confidentiality, nondisclosure and non-competition agreements with employees, consultants and other parties with access to our
proprietary information to protect our trade secrets, proprietary technology, processes and other proprietary rights, or any other
security measures relating to such trade secrets, proprietary technology, processes and proprietary rights, will be adequate, will
not be breached, that we will have adequate remedies for any breach, that others will not independently develop substantially equivalent
proprietary information or that third parties will not otherwise gain access to our trade secrets or proprietary knowledge. To
the extent that our consultants, contractors or collaborators use intellectual property owned by others in their work for us, disputes
may arise as to the rights in related or resulting know-how and inventions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We could lose market exclusivity of a product earlier
than expected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the pharmaceutical and biotechnology industries, the majority
of an innovative product&rsquo;s commercial value is realized during its market exclusivity period. In the U.S. and in some other
countries, when market exclusivity expires and generic versions are approved and marketed or when biosimilars are introduced (even
if only for a competing product), there are usually very substantial and rapid declines in a product&rsquo;s revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Market exclusivity for our products is based upon patent rights
and certain regulatory forms of exclusivity. The scope of our patent rights may vary from country to country and may also be dependent
on the availability of meaningful legal remedies in a country. The failure to obtain patent and other intellectual property rights,
or limitations on the use or loss of such rights, could be material to us. In some countries, basic patent protections for our
products may not exist because certain countries did not historically offer the right to obtain specific types of patents and/or
we (or our licensors) did not file in those markets. In addition, the patent environment can be unpredictable and the validity
and enforceability of patents cannot be predicted with certainty. Absent relevant patent protection for a product, once the data
exclusivity period expires, generic versions can be approved and marketed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Patent rights covering RI-002 may become subject to patent litigation.
In some cases, manufacturers may seek regulatory approval by submitting their own clinical trial data to obtain marketing approval
or choose to launch a generic product &ldquo;at risk&rdquo; before the expiration of our patent rights/or before the final resolution
of related patent litigation. Enforcement of claims in patent litigation can be very costly and&nbsp;no assurance can be given
that we will prevail.&nbsp;There is no assurance that RI-002, or any other of our products for which we are issued a patent, will
enjoy market exclusivity for the full time period of the respective patent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Third parties could obtain patents that may require us
to negotiate licenses to conduct our business, and there can be no assurance that the required licenses would be available on reasonable
terms or at all.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We may not be able to operate our business without infringing
third-party patents. Numerous U.S. and foreign patents and pending patent applications owned by third parties exist in fields that
relate to the development and commercialization of immune globulins. In addition, many companies have employed intellectual property
litigation as a way to gain a competitive advantage. It is possible that infringement claims may occur as the number of products
and competitors in our market increases. In addition, to the extent that we gain greater visibility and market exposure as a public
company, we face a greater risk of being the subject of intellectual property infringement claims. We cannot be certain that the
conduct of our business does not and will not infringe intellectual property or other proprietary rights of others in the U.S.
and in foreign jurisdictions. If our products, methods, processes and other technologies are found to infringe third-party patent
rights, we could be prohibited from manufacturing and commercializing the infringing technology, process or product unless we obtain
a license under the applicable third-party patent and pay royalties or are able to design around such patent. We may be unable
to obtain a license on terms acceptable to us, or at all, and we may not be able to redesign our products or processes to avoid
infringement. Even if we are able to redesign our products or processes to avoid an infringement claim, our efforts to design around
the patent could require significant time, effort and expense and ultimately may lead to an inferior or more costly product and/or
process. Any claim of infringement by a third party, even those without merit, could cause us to incur substantial costs defending
against the claim and could distract our management from our business. Furthermore, if any such claim is successful, a court could
order us to pay substantial damages, including compensatory damages for any infringement, plus prejudgment interest and could,
in certain circumstances, treble the compensatory damages and award attorney fees. These damages could be substantial and could
harm our reputation, business, financial condition and operating results. A court also could enter orders that temporarily, preliminarily
or permanently prohibit us, our licensees, if any, and our customers from making, using, selling, offering to sell or importing
one or more of our products or practicing our proprietary technologies or processes, or could enter an order mandating that we
undertake certain remedial activities. Any of these events could seriously harm our business, operating results and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Continued instability in the credit and financial markets
may negatively impact our business, results of operations and financial condition.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Financial markets in the U.S., Canada, Europe and Asia continue
to experience disruption, including, among other things, significant volatility in security prices, declining valuations of certain
investments, as well as severely diminished liquidity and credit availability. Business activity across a wide range of industries
and regions continues to be greatly reduced and local governments and many businesses are still suffering from the lack of consumer
spending and the lack of liquidity in the credit markets. As a clinical-stage biotechnology company, we rely on third parties for
several important aspects of our business, including contract manufacturing of drug product, plasma collection supplies, transportation
and storage of plasma, and conduct of our clinical trials. These third parties may be unable to satisfy their commitments to us
due to tightening of global credit from time to time, which would adversely affect our business. The continued instability in the
credit and financial market conditions may also negatively impact our ability to access capital and credit markets and our ability
to manage our cash balance. While we are unable to predict the continued duration and severity of the adverse conditions in the
U.S. and other countries, any of the circumstances mentioned above could adversely affect our business, financial condition, operating
results and cash flow or cash position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we are unable to successfully manage our growth, our
business may be harmed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our success will depend on the expansion of our commercial and
manufacturing activities, supply of plasma and overall operations and the effective management of our growth, which will place
a significant strain on our management and on our administrative, operational and financial resources. To manage this growth, we
must expand our facilities, augment our operational, financial and management systems and hire and train additional qualified personnel.
If we are unable to manage our growth effectively, our business could be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The loss of one or more key members of our management
team could adversely affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our performance is substantially dependent on the continued
service and performance of our management team, who have extensive experience and specialized expertise in our business. In particular,
the loss of Adam S. Grossman, our President and Chief Executive Officer, could adversely affect our business and operating results.
We do not have &quot;key person&quot; life insurance policies for any members of our management team. We have employment agreements
with each of our executive officers; however, the existence of an employment agreement does not guarantee retention of members
of our management team and we may not be able to retain those individuals for the duration of or beyond the end of their respective
terms. The loss of services of key personnel, or the inability to attract and retain additional qualified personnel, could result
in delays in development or approval of our product candidates and diversion of management resources. Notwithstanding the foregoing,
in the event Mr. Grossman is terminated for cause or resigns other than for good reason, then the standstill provisions contained
in the Stockholders Agreement, dated as of June 6, 2017, by and between the Company and BPC, which prohibits BPC and its affiliates
collectively from, among other things, acquiring more than (i) 50%, less one share, of the Company&rsquo;s issued and outstanding
shares of capital stock on an as-converted basis, or (ii) 30% of the issued and outstanding shares of Common Stock, will terminate
and be of no further force and effect. Such event could result in Biotest acquiring additional shares of our Common Stock or taking
other actions with the goal of acquiring additional shares of our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we are unable to hire additional qualified personnel,
our ability to grow our business may be harmed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will need to hire additional qualified personnel with expertise
in commercialization, sales, marketing, medical affairs, reimbursement, government regulation, formulation and manufacturing and
finance and accounting. In particular, over the next 12-24 months, we expect to hire several new employees devoted to commercialization,
sales, marketing, medical and scientific affairs, regulatory affairs, quality control, financial, general and operational management.
We compete for qualified individuals with numerous biopharmaceutical companies, universities and other research institutions. Competition
for such individuals is intense, and we cannot assure you that our search for such personnel will be successful. Attracting and
retaining qualified personnel will be critical to our success and any failure to do so successfully may have a material adverse
effect on us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We currently collect human blood plasma at our ADMA BioCenters
facilities, and if we cannot maintain FDA approval for these facilities we may be adversely affected and may not be able to sell
or use this human blood plasma for future commercial purposes.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We intend to maintain FDA and other governmental and regulatory
approvals of our ADMA BioCenters collection facilities for the collection of human blood plasma. These facilities are subject to
FDA and other governmental and regulatory inspections and extensive regulation, including compliance with current cGMP, FDA and
other government approvals. Failure to comply with applicable governmental regulations or to receive applicable approvals for our
future facilities, including our third facility, may result in enforcement actions, such as adverse inspection reports, warning
letters, product recalls or seizures, monetary sanctions, injunctions to halt manufacture and distribution of products, civil or
criminal sanctions, costly litigation, refusal of regulatory authority approvals and licenses, restrictions on operations or withdrawal
of existing approvals and licenses, any of which may significantly delay or suspend our operations for these locations, potentially
having a materially adverse effect on our ability to manufacture our products or offer for sale plasma collected at the affected
site(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We currently manufacture our current marketed products,
pipeline products, and products for third parties in our manufacturing and testing facilities, and if we cannot maintain appropriate
FDA status for these facilities, we may be adversely affected, and may not be able to sell, manufacture or commercialize these
products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We currently operate under an FDA warning letter, due to operations
identified by the FDA in prior FDA inspections while under Biotest operational control. We have engaged a leading consulting firm
with extensive experience in remediating compliance and inspection issues related to quality management systems and which manages
a robust team of subject matter experts in plasma derived products and biologic drugs to assist us in addressing all identified
CMC and cGMP issues and deficiencies. We expect to be inspection-ready by the end of 2017 and subsequently expect to have the FDA
inspection classification relative to the Warning Letter downgraded after the next inspection by the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we do not receive FDA approval for additional plasma
collection centers, one of which is currently under construction, before January 1, 2019, then we may be required to seek a waiver
and extension from Biotest for the contractually required transfer of two of our facilities. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are currently constructing our third plasma center and plan
to leverage our existing plasma center license in order to seek approval for this new facility with the FDA. If we do not receive
FDA approval for this third plasma center on or before January 1, 2019, then we will be required to seek a waiver and extension
from Biotest for our contractual obligation to transfer the two facilities under the Master Purchase Agreement. However, there
can be no assurances that Biotest will waive or extend its rights with respect to such transfer. In the event Biotest refuses to
waive and extend such right, we will be obligated to transfer the two facilities under the Master Purchase Agreement and risk delay
or refusal to issue our future license for the new plasma center by the FDA. Any such delay or refusal to issue the license by
the FDA could have a material adverse effect on our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may incur substantial liabilities and may be required
to limit commercialization of our products in response to product liability lawsuits.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The testing and marketing of medical products entail an inherent
risk of product liability. If we cannot successfully defend ourselves against product liability claims, we may incur substantial
liabilities or be required to limit commercialization of our products. Our inability to obtain sufficient product liability insurance
at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of pharmaceutical
products we develop, alone or with collaborators.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Many of our business practices are subject to scrutiny
by regulatory authorities, as well as to lawsuits brought by private citizens under federal and state laws. Failure to comply with
applicable law or an adverse decision in lawsuits may result in adverse consequences to us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The laws governing our conduct in the U.S. are enforceable by
criminal, civil and administrative penalties. Violations of laws such as the Federal Food, Drug, and Cosmetic Act, the Social Security
Act (including the Anti-Kickback Law), the Public Health Service Act and the Federal False Claims Act, and any regulations promulgated
under the authority of the preceding, may result in jail sentences, fines or exclusion from federal and state programs, as may
be determined by Medicare, Medicaid and the Department of Health and Human Services and other regulatory authorities as well as
by the courts. There can be no assurance that our activities will not come under the scrutiny of regulators and other government
authorities or that our practices will not be found to violate applicable laws, rules and regulations or prompt lawsuits by private
citizen &quot;relators&quot; under federal or state false claims laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For example, under the Anti-Kickback Law and similar state laws
and regulations, the offer or payment of anything of value for patient referrals, or in return for purchasing, leasing, ordering
or arranging for or recommending the purchase, lease, or ordering of any time or service reimbursable in whole or in part by a
federal health care program is prohibited.&nbsp;&nbsp;This places constraints on the marketing and promotion of products and on
common business arrangements, such as discounted terms and volume incentives for customers in a position to recommend or choose
products for patients, such as physicians and hospitals, and these practices can result in substantial legal penalties, including,
among others, exclusion from the Medicare and Medicaid programs. Arrangements with referral sources such as purchasers, group purchasing
organizations, physicians and pharmacists must be structured with care to comply with applicable requirements. Also, certain business
practices, such as payments of consulting fees to healthcare providers, sponsorship of educational or research grants, charitable
donations, interactions with healthcare providers that prescribe products for uses not&nbsp;approved by the FDA and financial support
for continuing medical education programs, must be conducted within narrowly prescribed and controlled limits to avoid any possibility
of wrongfully influencing healthcare providers to prescribe or purchase particular products or as a reward for past prescribing.
Under the Patient Protection and Affordable Care Act and the companion Health Care and Education Reconciliation Act, which together
are referred to as the &ldquo;Healthcare Reform Law&rdquo;, such payments by pharmaceutical manufacturers to U.S. healthcare practitioners
and academic medical centers must be publicly disclosed. A number of states have similar laws in place. Additional and stricter
prohibitions could be implemented by federal and state authorities. Where such practices have been found to be improper incentives
to use such products, government investigations and assessments of penalties against manufacturers have resulted in substantial
damages and fines. Many manufacturers have been required to enter into consent decrees or orders that prescribe allowable corporate
conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Failure to satisfy requirements under the Federal Food, Drug,
and Cosmetic Act can also result in penalties, as well as requirements to enter into consent decrees or orders that prescribe allowable
corporate conduct. In addition, while regulatory authorities generally do not regulate physicians' discretion in their choice of
treatments for their patients, they do restrict communications by manufacturers on unapproved uses of approved products or on the
potential safety and efficacy of unapproved products in development. Companies in the U.S., Canada and the European Union cannot
promote approved products for other indications that are not specifically approved by the competent regulatory authorities (e.g.,
FDA in the U.S.), nor can companies promote unapproved products. In limited circumstances, companies may disseminate to physicians
information regarding unapproved uses of approved products or results of studies involving investigational products. If such activities
fail to comply with applicable regulations and guidelines of the various regulatory authorities, we may be subject to warnings
from, or enforcement action by, these authorities. Furthermore, if such activities are prohibited, it may harm demand for our products.
Promotion of unapproved drugs or devices or unapproved indications for a drug or device is a violation of the Federal Food, Drug,
and Cosmetic Act and subjects us to civil and criminal sanctions. Furthermore, sanctions under the Federal False Claims Act have
recently been brought against companies accused of promoting off-label uses of drugs, because such promotion induces the use and
subsequent claims for reimbursement under Medicare and other federal programs. Similar actions for off-label promotion have been
initiated by several states for Medicaid fraud. The Healthcare Reform Law significantly strengthened provisions of the Federal
False Claims Act, the Anti-Kickback Law that applies to Medicare and Medicaid, and other health care fraud provisions, leading
to the possibility of greatly increased qui tam suits by relators for perceived violations. Violations or allegations of violations
of the foregoing restrictions could materially and adversely affect our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are required to report detailed pricing information, net
of included discounts, rebates and other concessions, to the Centers for Medicare &amp; Medicaid Services, or CMS, for the purpose
of calculating national reimbursement levels, certain federal prices and certain federal and state rebate obligations. Inaccurate
or incomplete reporting of pricing information could result in liability under the False Claims Act, the federal Anti-Kickback
Law and various other laws, rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will need to establish systems for collecting and reporting
this data accurately to CMS and institute a compliance program to assure that the information collected is complete in all respects.
If we report pricing information that is not accurate to the federal government, we could be subject to fines and other sanctions
that could adversely affect our business. If we choose to pursue clinical development and commercialization in the European Union
or otherwise market and sell our products outside of the U.S., we must obtain and maintain regulatory approvals and comply with
regulatory requirements in such jurisdictions. The approval procedures vary among countries in complexity and timing. We may not
obtain approvals from regulatory authorities outside the U.S. on a timely basis, if at all, which would preclude us from commercializing
products in those markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, some countries, particularly the countries of the
European Union, regulate the pricing of prescription pharmaceuticals. In these countries, pricing discussions with governmental
authorities can take considerable time after the receipt of marketing approval for a product. To obtain reimbursement or pricing
approval in some countries, we may be required to conduct a clinical trial that compares the cost-effectiveness of their product
candidate to other available therapies. Such trials may be time-consuming and expensive, and may not show an advantage in efficacy
for our products. If reimbursement of our products is unavailable or limited in scope or amount, or if pricing is set at unsatisfactory
levels, in either the U.S. or the European Union, we could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Also, under the U.S. Foreign Corrupt Practices Act, the U.S.
has increasingly focused on regulating the conduct by U.S. businesses occurring outside of the U.S., generally prohibiting remuneration
to foreign officials for the purpose of obtaining or retaining business. To enhance compliance with applicable health care laws,
and mitigate potential liability in the event of noncompliance, regulatory authorities, such as the U.S. Health and Human Services
Department Office of Inspector General (the &ldquo;OIG&rdquo;) have recommended the adoption and implementation of a comprehensive
health care compliance program that generally contains the elements of an effective compliance and ethics program described in
Section 8B2.1 of the U.S. Sentencing Commission Guidelines Manual. Increasing numbers of U.S.-based pharmaceutical companies have
such programs. In the future, we may need to adopt healthcare compliance and ethics programs that would incorporate the OIG's recommendations,
and train our applicable employees in such compliance. Such a program may be expensive and may not assure that we will avoid compliance
issues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The manufacturing processes for plasma based biologics
are complex and involve biological intermediates that are susceptible to contamination.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Plasma is a raw material that is susceptible to damage and contamination
and may contain human pathogens, any of which would render the plasma unsuitable as raw material for further manufacturing. For
instance, improper storage of plasma, by us or third-party suppliers, may require us to destroy some of our raw material. If unsuitable
plasma is not identified and discarded prior to the release of the plasma to the manufacturing process, it may be necessary to
discard intermediate or finished product made from that plasma or to recall any finished product released to the market, resulting
in a charge to cost of product revenue. The manufacture of our plasma products is an extremely complex process of fractionation,
purification, filling and finishing. Our products can become non-releasable or otherwise fail to meet our stringent specifications
or regulatory agencies' specifications through a failure in one or more of these process steps. We may detect instances in which
an unreleased product was produced without adherence to our manufacturing procedures or plasma used in our production process was
not collected or stored in a compliant manner consistent with our cGMP or other regulations. Such an event of noncompliance would
likely result in our determination that the implicated products should not be released or maybe replaced or withdrawn from the
market and therefore should be destroyed. Once manufactured, our plasma-derived products must be handled carefully and kept at
appropriate temperatures. Our failure, or the failure of third parties that supply, ship or distribute our products, to properly
care for our products may require that those products be destroyed. Even if handled properly, biologics may form or contain particulates
or have other issues or problems after storage which may require products to be destroyed or recalled. While we expect to write
off small amounts of work-in-progress in the ordinary course of business due to the complex nature of plasma, our processes and
our products, unanticipated events may lead to write-offs and other costs materially in excess of our expectations and the reserves
we have established for these purposes. Such write-offs and other costs could cause material fluctuations in our profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Furthermore, contamination of our products could cause investors,
consumers, or other third parties with whom we conduct business to lose confidence in the reliability of our manufacturing procedures,
which could adversely affect our sales and profits. In addition, faulty or contaminated products that are unknowingly distributed
could result in patient harm, threaten the reputation of our products and expose us to product liability damages and claims from
companies for whom we do contract manufacturing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our ability to continue to produce safe and effective
products depends on the safety of our plasma supply and manufacturing processes against transmittable diseases.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Despite overlapping safeguards, including the screening of donors
and other steps to remove or inactivate viruses and other infectious disease causing agents, the risk of transmissible disease
through blood plasma products cannot be entirely eliminated. For example, since plasma-derived therapeutics involves the use and
purification of human plasma, there has been concern raised about the risk of transmitting human immunodeficiency virus (&ldquo;HIV&rdquo;),
prions, West Nile virus, H1N1 virus or &quot;swine flu&quot; and other blood-borne pathogens through plasma-derived products. There
are also concerns about the future transmission of H5N1 virus, or &quot;bird flu.&quot; In the 1980s, thousands of hemophiliacs
worldwide were infected with HIV through the use of contaminated Factor VIII. Other producers of Factor VIII, though not us, were
defendants in numerous lawsuits resulting from these infections. New infectious diseases emerge in the human population from time
to time. If a new infectious disease has a period during which time the causative agent is present in the bloodstream but symptoms
are not present, it is possible that plasma donations could be contaminated by that infectious agent. Typically, early in an outbreak
of a new disease, tests for the causative agent do not exist. During this early phase, we must rely on screening of donors (e.g.,
for behavioral risk factors or physical symptoms) to reduce the risk of plasma contamination. Screening methods are generally less
sensitive and specific than a direct test as a means of identifying potentially contaminated plasma units. During the early phase
of an outbreak of a new infectious disease, our ability to manufacture safe products would depend on the manufacturing process'
capacity to inactivate or remove the infectious agent. To the extent that a product's manufacturing process is inadequate to inactivate
or remove an infectious agent, our ability to manufacture and distribute that product would be impaired. If a new infectious disease
were to emerge in the human population, the regulatory and public health authorities could impose precautions to limit the transmission
of the disease that would impair our ability to procure plasma, manufacture our products or both. Such precautionary measures could
be taken before there is conclusive medical or scientific evidence that a disease poses a risk for plasma-derived products. In
recent years, new testing and viral inactivation methods have been developed that more effectively detect and inactivate infectious
viruses in collected plasma. There can be no assurance, however, that such new testing and inactivation methods will adequately
screen for, and inactivate, infectious agents in the plasma used in the production of our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We could become supply-constrained and our financial performance
would suffer if we cannot obtain adequate quantities of FDA-approved source plasma with proper specifications.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order for plasma to be used in the manufacturing of our products,
the individual centers at which the plasma is collected must be licensed by the FDA and approved by the regulatory authorities
of any country in which we may wish to commercialize our products. When we open a new plasma center, and on an ongoing basis after
licensure, it must be inspected by the FDA for compliance with cGMP and other regulatory requirements. An unsatisfactory inspection
could prevent a new center from being licensed or risk the suspension or revocation of an existing license. We do not and will
not have adequate plasma to manufacture our products. Therefore, we are reliant on the purchase of plasma from third parties to
manufacture our products. We can give no assurances that appropriate plasma will be available to us on commercially reasonable
terms or at all to manufacture our products. In order to maintain a plasma center's license, its operations must continue to conform
to cGMP and other regulatory requirements. In the event that we determine that plasma was not collected in compliance with cGMP,
we may be unable to use and may ultimately destroy plasma collected from that center, which would be recorded as a charge to cost
of product revenue. Additionally, if non-compliance in the plasma collection process is identified after the impacted plasma has
been pooled with compliant plasma from other sources, entire plasma pools, in-process intermediate materials and final products
could be impacted. Consequently, we could experience significant inventory impairment provisions and write-offs which could adversely
affect our business and financial results. We plan to increase our supplies of plasma for use in the manufacturing processes through
increased purchases of plasma from third-party suppliers as well as collections from our existing ADMA BioCenters plasma collection
centers. This strategy is dependent upon our ability to maintain a cGMP compliant environment in both plasma centers and to expand
production and attract donors to both centers. There is no assurance that the FDA will inspect and license our unlicensed plasma
collection centers in a timely manner consistent with our production plans. If we misjudge the readiness of a center for an FDA
inspection, we may lose credibility with the FDA and cause the FDA to more closely examine all of our operations. Such additional
scrutiny could materially hamper our operations and our ability to increase plasma collections. Our ability to expand production
and increase our plasma collection centers to more efficient production levels may be affected by changes in the economic environment
and population in selected regions where ADMA BioCenters operates its current or future plasma centers, by the entry of competitive
plasma centers into regions where ADMA BioCenters operates such centers, by misjudging the demographic potential of individual
regions where ADMA BioCenters expects to expand production and attract new donors, by unexpected facility related challenges, or
by unexpected management challenges at selected plasma centers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our ability to commercialize our products, alone or with
collaborators, will depend in part on the extent to which reimbursement will be available from governmental agencies, health administration
authorities, private health maintenance organizations and health insurers and other healthcare payers, and also depends upon the
approval, timing and representations by the FDA or other governmental authorities for our product candidates. As the FDA BLA review
process is ongoing, we are subject to information requests and communications from the FDA on a routine basis and may not have
clarity on any or all specific aspects of the approval timing, language, name, claims and any other future requirements that may
be imposed by the FDA or other governmental agencies for marketing, authorization and ultimately financial reimbursement for patient
utilization.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our ability to generate product revenues will be diminished
if our products sell for inadequate prices or patients are unable to obtain adequate levels of reimbursement. Significant uncertainty
exists as to the reimbursement status of newly approved healthcare products, as well as to the timing, language, specifications
and other details pertaining to the approval of such products. Healthcare payers, including Medicare, are challenging the prices
charged for medical products and services. Government and other healthcare payers increasingly attempt to contain healthcare costs
by limiting both coverage and the level of reimbursement for products. Even if one of our product candidates is approved by the
FDA, insurance coverage may not be available, and reimbursement levels may be inadequate, to cover such product. If government
and other healthcare payers do not provide adequate coverage and reimbursement levels for one of our products, once approved, market
acceptance of such product could be reduced. Prices in many countries, including many in Europe, are subject to local regulation
and certain pharmaceutical products, such as plasma-derived products, are subject to price controls in several of the world's principal
markets, including many countries within the European Union. In the U.S., where pricing levels for our products are substantially
established by third-party payers, including Medicare, if payers reduce the amount of reimbursement for a product, it may cause
groups or individuals dispensing the product to discontinue administration of the product, to administer lower doses, to substitute
lower cost products or to seek additional price-related concessions. These actions could have a negative effect on our financial
results, particularly in cases where our products command a premium price in the marketplace, or where changes in reimbursement
induce a shift in the site of treatment. The existence of direct and indirect price controls and pressures over our products could
materially adversely affect our financial prospects and performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The new biosimilar pathway established as part of the
healthcare reform may make it easier for competitors to market biosimilar products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Healthcare Reform Law introduced an abbreviated licensure
pathway for biological products that are demonstrated to be biosimilar to an FDA-licensed biological product.&nbsp; A biological
product may be demonstrated to be &ldquo;biosimilar&rdquo; if data show that, among other things, the product is &ldquo;highly
similar&rdquo; to an already-approved biological product, known as a reference product, and has no clinically meaningful differences
in terms of safety and effectiveness from the reference product. The law provides that a biosimilar application may be submitted
as soon as four years after the reference product is first licensed, and that the FDA may not make approval of an application effective
until 12 years after the reference product was first licensed.&nbsp; Since the enactment of the law, the FDA has issued several
guidance documents to assist sponsors of biosimilar products in preparing their approval applications.&nbsp; The FDA approved the
first biosimilar product in 2015, and approved three biosimilar products in 2016.&nbsp; As a result of the biosimilar pathway in
the U.S., we expect in the future to face greater competition from biosimilar products, including a possible increase in patent
challenges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The implementation of the Healthcare Reform Law in the
U.S. may adversely affect our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Through the March 2010 adoption of the Healthcare Reform Law
in the U.S., substantial changes are being made to the current system for paying for healthcare in the U.S., including programs
to extend medical benefits to millions of individuals who currently lack insurance coverage. The changes contemplated by the Healthcare
Reform Law are subject to rule-making and implementation timelines that extend for several years, and this uncertainty limits our
ability to forecast changes that may occur in the future. However, implementation has already begun with respect to certain significant
cost-saving measures under the Healthcare Reform Law, for example with respect to several government healthcare programs, including
Medicaid and Medicare Parts B and D, that may cover the cost of our future products, and these efforts could have a material adverse
impact on our future financial prospects and performance. For example, with respect to Medicaid, in order for a manufacturer's
products to be reimbursed by federal funding under Medicaid, the manufacturer must enter into a Medicaid rebate agreement with
the Secretary of the U.S. Department of Health and Human Services, and pay certain rebates to the states based on utilization data
provided by each state to the manufacturer and to CMS, and pricing data provided by the manufacturer to the federal government.
The states share these savings with the federal government, and sometimes implement their own additional supplemental rebate programs.
Under the Medicaid drug rebate program, the rebate amount for most branded drug products was previously equal to a minimum of 15.1%
of the Average Manufacturer Price, or AMP, or the AMP less Best Price, whichever is greater. Effective January 1, 2010, the Healthcare
Reform Law generally increased the size of the Medicaid rebates paid by manufacturers for single source and innovator multiple
source (brand name) drug products from a minimum of 15.1% to a minimum of 23.1% of the AMP, subject to certain exceptions. For
non-innovator multiple source (generic) products, the rebate percentage is increased from a minimum of 11.0% to a minimum of 13.0%
of AMP.&nbsp;&nbsp;In 2010, the Healthcare Reform Law also newly extended this rebate obligation to prescription drugs covered
by Medicaid managed care organizations. These increases in required rebates may adversely affect our future financial prospects
and performance. In order for a pharmaceutical product to receive federal reimbursement under the Medicare Part B and Medicaid
programs or to be sold directly to U.S. government agencies, the manufacturer must extend discounts to entities eligible to participate
in the 340B drug pricing program.&nbsp;&nbsp;The required 340B discount on a given product is calculated based on the AMP and Medicaid
rebate amounts reported by the manufacturer.&nbsp;&nbsp;As the 340B drug pricing is determined based on AMP and Medicaid rebate
data, the revisions to the Medicaid rebate formula and AMP definition described above could cause the required 340B discount to
increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Effective in 2011, the Healthcare Reform Law imposed an annual,
nondeductible fee on any entity that manufactures or imports certain branded prescription drugs and biologic agents, apportioned
among these entities according to their market share in certain government healthcare programs. These fees may adversely affect
our future financial prospects and performance.&nbsp;&nbsp;The Healthcare Reform Law established the Center for Medicare and Medicaid
Innovation within CMS to test innovative payment and service delivery models to lower Medicare and Medicaid spending, potentially
including prescription drug spending. Funding has been allocated to support the mission of the Center for Medicare and Medicaid
Innovation through 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Healthcare Reform Law also creates new rebate obligations
for our products under Medicare Part D, a partial, voluntary prescription drug benefit created by the U.S. federal government primarily
for persons 65 years old and over. The Part D drug program is administered through private insurers that contract with CMS. Beginning
in 2011, the Healthcare Reform Law generally requires that in order for a drug manufacturer's products to be reimbursed under Medicare
Part D, the manufacturer must enter into a Medicare Coverage Gap Discount Program agreement with the Secretary of the U.S. Department
of Health and Human Services, and reimburse each Medicare Part D plan sponsor an amount equal to 50% savings for the manufacturer's
brand name drugs and biologics which the Part D plan sponsor has provided to its Medicare Part D beneficiaries who are in the &quot;donut
hole&quot; (or a gap in Medicare Part D coverage for beneficiaries who have expended certain amounts for drugs). The Part D plan
sponsor is responsible for calculating and providing the discount directly to its beneficiaries and for reporting these amounts
paid to CMS's contractor, which notifies drug manufacturers of the rebate amounts it must pay to each Part D plan sponsor. The
rebate requirement could adversely affect our future financial performance, particularly if contracts with Part D plans cannot
be favorably renegotiated or the Part D plan sponsors fail to accurately calculate payments due in a manner that overstates our
rebate obligation. Regarding access to our products, the Healthcare Reform Law established and provided significant funding for
a Patient-Centered Outcomes Research Institute to coordinate and fund Comparative Effectiveness Research (&ldquo;CER&rdquo;). While
the stated intent of CER is to develop information to guide providers to the most efficacious therapies, outcomes of CER could
influence the reimbursement or coverage for therapies that are determined to be less cost-effective than others. Should any of
our products be determined to be less cost effective than alternative therapies, the levels of reimbursement for these products,
or the willingness to reimburse at all, could be impacted, which could materially impact our future financial prospects and results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There have been repeated attempts by Congress to repeal or change
the Healthcare Reform Law. At this time, it remains unclear whether there will be any changes made to or any repeal or replacement
of the Healthcare Reform Law, with respect to certain of its provisions or in its entirety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Developments in the worldwide economy may adversely impact
our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The difficult economic environment may adversely affect demand
for our products. RI-002, our current product candidate, is expected to be sold to hospitals, specialty pharmacies and clinicians
in the U.S. As a result of loss of jobs, patients may lose medical insurance and be unable to purchase supply or may be unable
to pay their share of deductibles or co-payments. Hospitals adversely affected by the economy may steer patients to less costly
therapies, resulting in a reduction in demand, or demand may shift to public health hospitals, which may purchase at a lower government
price. While to date we cannot directly trace any material reduction in demand to the recession, if economic conditions do not
improve, the impact may become material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Relating to our Finances, Capital Requirements and
Other Financial Matters</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We require additional funding and may be unable to raise
capital when needed, which would force us to delay, curtail or eliminate one or more of our research and development programs or
commercialization efforts.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our operations have consumed substantial amounts of cash since
inception. For the six months ended June 30, 2017 and 2016, we incurred research and development expenses of approximately $2.6
million and $5.4 million, respectively. We expect to continue to spend substantial amounts on product development, including commercialization
activities, procuring raw material plasma, manufacturing, conducting potential future clinical trials for our product candidates
and purchasing clinical trial materials from our suppliers. We currently anticipate that, based upon our projected revenue and
expenditures, our current cash, cash equivalents and accounts receivable, along with the proceeds from this Offering, which includes
the equity commitment from Biotest, will be sufficient to fund our operations, as currently conducted, into the second half of
2018. In order to have sufficient cash to fund our operations thereafter and to continue as a going concern, we will need to raise
additional equity or debt financing during the second half of 2018. This time frame may change based upon how quickly we are able
to execute on our operational initiatives and the various financing options we are exploring<B><I>.</I></B> However, if the assumptions
underlying our estimated expenses prove to be incorrect, we may have to raise additional capital sooner than we currently expect.
Until such time, if ever, as we can generate a sufficient amount of product revenue to achieve profitability, we expect to continue
to finance our operations through equity or debt financings or corporate collaboration and licensing arrangements. If we are unable
to raise additional capital, we will have to delay, curtail or eliminate our product development activities, including conducting
clinical trials for our product candidates and purchasing clinical trial materials from our suppliers, as well as future commercialization
efforts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Raising additional funds by issuing securities or through
licensing or lending arrangements may cause dilution to our existing stockholders, restrict our operations or require us to relinquish
proprietary rights.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the extent that we raise additional capital by issuing equity
securities, the share ownership of existing stockholders will be diluted. Any future debt financing may involve covenants that
restrict our operations, including limitations on our ability to incur liens or additional debt, pay dividends, redeem our stock,
make certain investments and engage in certain merger, consolidation or asset sale transactions, among other restrictions. In addition,
if we raise additional funds through licensing arrangements or the disposition of any of our assets, it may be necessary to relinquish
potentially valuable rights to our product candidates, or grant licenses on terms that are not favorable to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our cash, cash equivalents and short-term investments
could be adversely affected if the financial institutions in which we hold our cash, cash equivalents and short-term investments
fail.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We regularly maintain cash balances at third-party financial
institutions in excess of the Federal Deposit Insurance Corporation insurance limit. While we monitor the cash balances in our
operating accounts on a daily basis and adjust the balances as appropriate, these balances could be impacted, and there could be
a material adverse effect on our business, if one or more of the financial institutions with which we deposit fails or is subject
to other adverse conditions in the financial or credit markets. To date, we have experienced no loss or lack of access to our invested
cash or cash equivalents; however, we can provide no assurance that access to our invested cash and cash equivalents will not be
impacted by adverse conditions in the financial and credit markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to maintain proper and effective internal control
over financial reporting in the future, our ability to produce accurate and timely financial statements could be impaired, which
could harm our operating results, investors' views of us and, as a result, the value of our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 and
related rules, our management is required to report on the effectiveness of our internal control over financial reporting. The
rules governing the standards that must be met for management to assess our internal control over financial reporting are complex
and require significant documentation, testing and possible remediation. To comply with the requirements of being a reporting company
under the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), we have been required to upgrade, and may
need to implement further upgrades, to our financial, information and operating systems, implement additional financial and management
controls, reporting systems and procedures and hire additional accounting and finance staff.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our ability to use our net operating loss carryforwards
(&ldquo;NOLs&rdquo;) may be limited.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have incurred substantial losses during our history. As of
December 31, 2016, we had Federal and state NOLs of $87.8 million and $75.2 million, respectively. These NOLs will begin to expire
at various dates beginning in 2027, if not limited by triggering events prior to such time. Under the provisions of the Internal
Revenue Code, changes in our ownership, in certain circumstances, will limit the amount of Federal NOLs that can be utilized annually
in the future to offset taxable income. In particular, Section 382 of the Internal Revenue Code imposes limitations on a company&rsquo;s
ability to use NOLs upon certain changes in such ownership. If we are limited in our ability to use our NOLs in future years in
which we have taxable income, we will pay more taxes than if we were able to fully utilize our NOLs. We may experience ownership
changes in the future as a result of subsequent shifts in our stock ownership that we cannot predict or control that could result
in further limitations being placed on our ability to utilize our federal NOLs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Associated with our Common Stock and this Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The market price of our Common Stock may be volatile and
may fluctuate in a way that is disproportionate to our operating performance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our stock price may experience substantial volatility as a result
of a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">sales or potential sales of substantial amounts of our Common Stock;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to successfully leverage the anticipated benefits and
synergies from the Biotest Transaction, including optimization of the combined businesses, operations and products and services,
including the nature, strategy and focus of the combined company and the management and governance structure of the combined company;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">delay or failure in initiating or completing preclinical or clinical
trials or unsatisfactory results of these trials;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">delay in FDA approval for RI-002;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the timing of acceptance, third-party reimbursement and sales of RI-002;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to resume the manufacturing of Bivigam once the deficiencies
identified in the CRL have been resolved by us to the satisfaction of the FDA;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">announcements about us or about our competitors, including clinical
trial results, regulatory approvals or new product introductions;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">developments concerning our licensors or third-party vendors;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">litigation and other developments relating to our patents or other
proprietary rights or those of our competitors;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">conditions in the pharmaceutical or biotechnology industries;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">governmental regulation and legislation;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">variations in our anticipated or actual operating results; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">change in securities analysts&rsquo; estimates of our performance,
or our failure to meet analysts&rsquo; expectations.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Many of these factors are beyond our control. The stock markets
in general, and the market for pharmaceutical and biotechnology companies in particular, have historically experienced extreme
price and volume fluctuations. These fluctuations often have been unrelated or disproportionate to the operating performance of
these companies. These broad market and industry factors could reduce the market price of our Common Stock, regardless of our actual
operating performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our use of the offering proceeds
may not yield a favorable return on your investment</I></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We currently anticipate that the net proceeds from this
Offering will be used for (i) the purchase of raw material inventory and the ramp-up of our manufacturing capabilities, (ii)
continued remediation of the issues identified in the CRL and the Warning Letter, (iii) capital expenditures for the Boca
Facility, (iv) product launch and medical education campaigns, (v) the build-out of our third ADMA BioCenters plasma
collection facility, (vi) research and development activities for our plasma collection programs and specialty plasma
products, and (vii) working capital needs and general corporate purposes. The proceeds received from the Offering are also
expected to enable us, by June 30, 2018, to: (a) successfully complete our internal quality management system overhaul, (b)
obtain approval, through a PAS from the FDA, for an optimized manufacturing process for Bivigam, (c) downgrade the FDA
inspection classification relative to the Warning Letter, (d) obtain marketing clearance for the relaunch of Bivigam, and (e)
refile our BLA for RI-002. Pending the application of the net proceeds, we intend to invest the net proceeds of the Offering
in short-term, interest-bearing, investment-grade securities or certificates of deposit. Our management has broad discretion
over how these proceeds are used and could utilize the proceeds in ways with which you may not agree. Pending the use of the
proceeds in this Offering, we will invest them. However, the proceeds may not be invested in a manner that yields a
favorable, or any, return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>An investment in our Common Stock
is extremely speculative and there can be no assurance of any return on any such investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">An investment in our Common Stock is extremely speculative and
there is no assurance that investors will obtain any return on their investment. Investors will be subject to substantial risks
involved in an investment in us, including the risk of losing their entire investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Sales of a substantial number of shares of our common
stock, or the perception that such sales may occur, may adversely impact the market price of our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 10, 2017, approximately half of our 25,793,404
outstanding shares of common stock, as well as a substantial number of shares of our Common Stock underlying outstanding warrants,
are available for sale in the public market, subject to certain restrictions with respect to sales of our Common Stock by our affiliates,
either pursuant to Rule 144 under the Securities Act (&ldquo;Rule 144&rdquo;) or under effective registration statements. The 12,886,740
shares of common stock, including 8,591,160 shares of Non-Voting Common Stock, recently acquired by BPC in the Biotest Transaction
are subject to a lock-up for six months after closing of the Biotest Transaction, which lock-up expires on December 6, 2017. For
three years after the end of such six-month period, subject to certain limited exceptions, under the stockholders agreement entered
into between the Company and BPC upon closing the Biotest Transaction, sales by BPC of our equity interests may not exceed 15%
of the issued and outstanding common stock of ADMA in any twelve-month period; provided, however, that if our market capitalization
increases to double our market capitalization immediately following the closing of the Biotest Transaction, then BPC may sell up
to 20% of our issued and outstanding common stock in any twelve-month period; provided, further, that (x) if our market capitalization
increases to triple our market capitalization immediately following the closing of the Biotest Transaction, or (y) upon the one-year
anniversary of BPC holding less than a 25% economic interest in us, then BPC may sell its equity interests in us at any time (subject
to applicable securities laws). At the closing of the Biotest Transaction, we entered into a registration rights agreement with
BPC, pursuant to which BPC will have, among other things, certain registration rights under the Securities Act with respect to
its shares of our common stock, subject to certain transfer restrictions (the &ldquo;Registration Rights Agreement&rdquo;). Sales
of a substantial number of shares of our common stock, or the perception that such sales may occur, may adversely impact the market
price of our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our affiliates control a substantial amount of our shares
of common stock. Provisions in our certificate of incorporation, our by-laws and Delaware law might discourage, delay or prevent
a change in control of our company or changes in our management and, therefore, depress the trading price of our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Provisions of our certificate of incorporation, our by-laws
and Delaware law may have the effect of deterring unsolicited takeovers or delaying or preventing a change in control of our company
or changes in our management, including transactions in which our stockholders might otherwise receive a premium for their shares
over then current market prices. As of October 10, 2017, BPC, our directors and executive officers and their affiliates beneficially
owned in excess of 75% of the outstanding shares of common stock. In addition, these provisions may limit the ability of stockholders
to approve transactions that they may deem to be in their best interests. These provisions include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the inability of stockholders to call special meetings; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the ability of our board of directors (the &ldquo;Board&rdquo;) to
institute a stockholder rights plan, also known as a poison pill, that would work to dilute our stock,</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">classification of our Board and limitation on filling of vacancies
could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of our
company, and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">authorization of the issuance of &ldquo;blank check&rdquo; preferred
stock, with such designation rights and preferences as may be determined from time to time by the Board, without any need for action
by stockholders.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, Section 203 of the Delaware General Corporation
Law prohibits a publicly-held Delaware corporation from engaging in a business combination with an interested stockholder, generally
a person which together with its affiliates owns, or within the last three years, has owned 15% of our voting stock, for a period
of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination
is approved in a prescribed manner.&nbsp;&nbsp;The existence of the foregoing provisions and anti-takeover measures could limit
the price that investors might be willing to pay in the future for shares of our common stock. They could also deter potential
acquirers of our company, thereby reducing the likelihood that you could receive a premium for your common stock in an acquisition.
In addition, as a result of the concentration of ownership of our shares of common stock, our stockholders may from time to time,
observe instances where there may be less liquidity in the public markets for our securities.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We have never paid and do not intend to pay cash dividends
in the foreseeable future. As a result, capital appreciation, if any, will be your sole source of gain.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have never paid cash dividends on any of our capital stock
and we currently intend to retain future earnings, if any, to fund the development and growth of our business. In addition, the
terms of existing and future debt agreements may preclude us from paying dividends. As a result, capital appreciation, if any,
of our common stock will be your sole source of gain for the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we fail to adhere to the strict listing requirements
of Nasdaq, we may be subject to delisting. As a result, our stock price may decline and our Common Stock may be delisted.&nbsp;&nbsp;If
our stock were no longer listed on Nasdaq, the liquidity of our securities likely would be impaired.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Common Stock currently trades on the Nasdaq Capital Market
(&ldquo;Nasdaq&rdquo;) under the symbol &ldquo;ADMA.&rdquo; If we fail to adhere to Nasdaq's strict listing criteria, including
with respect to stock price, our market capitalization&nbsp;and stockholders&rsquo; equity , our stock may be delisted. This could
potentially impair the liquidity of our securities not only in the number of shares that could be bought and sold at a given price,
which may be depressed by the relative illiquidity, but also through delays in the timing of transactions and the potential reduction
in media coverage. As a result, an investor might find it more difficult to dispose of our Common Stock. We believe that current
and prospective investors would view an investment in our Common Stock more favorably if it continues to be listed on Nasdaq. Any
failure at any time to meet the Nasdaq continued listing requirements could have an adverse impact on the value of and trading
activity in our Common Stock. Although we currently satisfy the listing criteria for Nasdaq, if our stock price declines dramatically,
we could be at risk of failing to meet the Nasdaq continued listing criteria.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Penny stock regulations may affect
your ability to sell our Common Stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because the price of our Common Stock currently trades below
$5.00 per share, our Common Stock is subject to Rule 15g-9 under the Exchange Act, which imposes additional sales practice requirements
on broker dealers which sell these securities to persons other than established customers and accredited investors. Under these
rules, broker-dealers who recommend penny stocks to persons other than established customers and &ldquo;accredited investors&rdquo;
must make a special written suitability determination for the purchaser and receive the purchaser&rsquo;s written agreement to
a transaction prior to sale, which includes an acknowledgement that the purchaser&rsquo;s financial situation, investment experience
and investment objectives forming the basis for the broker-dealer&rsquo;s suitability determination are accurately stated in such
written agreement. Unless an exception is available, the regulations require the delivery, prior to any transaction involving a
penny stock, of a disclosure schedule explaining the penny stock market and the associated risks. The additional burdens imposed
upon broker-dealers by these requirements could discourage broker-dealers from effecting transactions in our Common Stock and may
make it more difficult for holders of our Common Stock to sell shares to third parties or to otherwise dispose of them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We are an &ldquo;emerging growth company,&rdquo; and elect
to comply with reduced public company reporting requirements applicable to emerging growth companies, which could make our Common
Stock less attractive to investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are an &ldquo;emerging growth company,&rdquo; as defined
by the Jumpstart Our Business Startups Act (the &ldquo;JOBS Act&rdquo;). The JOBS Act contains provisions that, among other things,
reduce certain reporting requirements for qualifying public companies.&nbsp;&nbsp;As an &ldquo;emerging growth company,&rdquo;
we may, under Section 7(a)(2)(B) of the Securities Act, delay adoption of new or revised accounting standards applicable to public
companies until such standards would otherwise apply to private companies.&nbsp;&nbsp;&nbsp;We may continue to take advantage of
this extended transition period until the first to occur of the date that we (i) are no longer an &ldquo;emerging growth company&rdquo;
or (ii) affirmatively and irrevocably opt out of this extended transition period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We could be an emerging growth company until December 31, 2018,
which is the last day of the fiscal year following the fifth anniversary of the first sale of our common equity securities pursuant
to an effective registration statement under the Securities Act. However, if certain events occur prior to the end of such five-year
period, including if we become a &ldquo;large accelerated filer,&rdquo; our annual gross revenues exceed $1 billion or we issue
more than $1 billion of non-convertible debt in any three-year period, we would cease to be an emerging growth company prior to
the end of such five-year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have elected to take advantage of the benefits of this extended
transition period.&nbsp;&nbsp;Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.&nbsp;&nbsp;Until the date that we are no longer an &ldquo;emerging growth company&rdquo; or
affirmatively and irrevocably opt out of the exemption provided by Securities Act Section 7(a)(2)(B), upon issuance of a new or
revised accounting standard that applies to our financial statements and that has a different effective date for public and private
companies, we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will
adopt the recently issued accounting standard. As an emerging growth company, we are also exempt from the requirement to have our
independent registered public accounting firm provide an attestation report on our internal control over financial reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We cannot predict if investors will find our Common Stock less
attractive as a result of our reliance on these exemptions. If some investors find our Common Stock less attractive as a result
of any choice we make to reduce disclosure, there may be a less active trading market for our Common Stock, our stock price may
be more volatile and our stock price may decline dramatically.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our Board of Directors may, without
stockholder approval, issue and fix the terms of shares of preferred stock and issue additional shares of Common Stock adversely
affecting the rights of holders of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Amended and Restated Certificate of
Incorporation (the &ldquo;A&amp;R Certificate of Incorporation&rdquo;) authorizes the issuance of up to 10,000,000 shares of &ldquo;blank
check&rdquo; preferred stock, with such designation rights and preferences as may be determined from time to time by the Board.
Currently, our A&amp;R Certificate of Incorporation authorizes the issuance of up to 75,000,000 shares of Common Stock, of which
57,797,756 shares remain available for issuance and may be issued by us without stockholder approval, and up to 8,591,160 shares
of Non-Voting Common Stock, all of which are issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus and the documents incorporated by reference
into this prospectus and any prospectus supplement or free writing prospectus may contain &quot;forward-looking statements&quot;
within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, or the Securities Act, and Section
21E of the Exchange Act. These forward-looking statements only provide our current expectations or forecasts of future events and
financial performance and may be identified by the use of forward-looking terminology, including the terms &ldquo;believes,&rdquo;
&ldquo;estimates,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;expects,&rdquo; &ldquo;plans,&rdquo; &ldquo;intends,&rdquo; &ldquo;may,&rdquo;
&ldquo;will&rdquo; or &ldquo;should&rdquo;, &ldquo;could&rdquo;, &ldquo;predicts&rdquo; or the negative thereof, or other variations
or comparable terminology, though the absence of these words does not necessarily mean that a statement is not forward-looking.
Forward-looking statements include all matters that are not historical facts and include, without limitation, statements concerning
our business strategy, outlook, objectives, future milestones, plans, intentions, goals, and future financial condition, including
the period of time for which our existing resources will enable us to fund our operations. Forward-looking statements also include
our financial, clinical, manufacturing and distribution plans and our expectations and timing related to the FDA approval and commercialization
of our lead pipeline product candidate, RI-002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We intend that all forward-looking statements be subject to
the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to many
risks and uncertainties that could cause actual results to differ materially from any future results expressed or implied by the
forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither
statements of historical fact nor guarantees or assurances of future performance. Examples of the risks and uncertainties include,
but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to successfully leverage the anticipated benefits and
synergies from the Biotest Transaction, including optimization of the combined businesses, operations and products and services,
including the nature, strategy and focus of the combined company and the management and governance structure of the combined company;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to resume the manufacturing of Bivigam once the deficiencies
identified in the Warning Letter with respect to the outstanding issues at the Boca Facility acquired from BPC in June 2017 have
been resolved by us to the satisfaction of the FDA, as well as a positive review of the optimized manufacturing process under a
PAS by the FDA;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to successfully resubmit to the FDA our BLA for our lead
pipeline product candidate, RI-002, once the deficiencies identified in the CRL have been resolved by us and/or our third-party
vendors to the satisfaction of the FDA, and other requests for information included therein have been provided by us; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our plans to develop, manufacture, market, launch and expand our own
commercial infrastructure and commercialize our current products and future products and the success of such efforts; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the safety, efficacy and expected timing of and our ability to obtain
and maintain regulatory approvals for our current products and product candidates, including the timeframe within which we may
receive approval from the FDA, if at all, of our BLA resubmission for RI-002 and the labeling or nature of any such approvals;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the achievement of or expected timing, progress and results of clinical
development, clinical trials and potential regulatory approvals;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our dependence upon our third-party and related-party customers and
vendors and their compliance with regulatory bodies;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to obtain adequate quantities of FDA-approved plasma with
proper specifications;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our plans to increase our supplies of plasma;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the potential indications for our product candidates;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">potential investigational new product applications;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the acceptability of any of our products as well as RI-002 for any
purpose by physicians, patients or payers;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">concurrence by the FDA with our conclusions and the satisfaction by
us of its guidance;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the comparability of results of our immune globulin products to other
comparably run IVIG trials;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the potential of RI-002 and Bivigam to provide meaningful clinical
improvement for patients living with PIDD;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to market and promote Nabi-HB in the competitive environment
and to generate meaningful revenues;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our intellectual property position, including our expectations of
the scope of patent protection with respect to RI-002, or other future pipeline product candidates;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our manufacturing capabilities, third-party contractor capabilities
and strategy;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our plans related to manufacturing, supply and other collaborative
agreements;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our estimates regarding expenses, capital requirements and the need
for additional financing;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">possible or likely reimbursement levels for our currently marketed
products and, if any, if and when RI-002 is approved for marketing;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">estimates regarding market size, projected growth and sales for our
existing products as well as our expectations of market acceptance of RI-002;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">future economic conditions or performance; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expectations for future capital requirements.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pharmaceutical, biotechnology and medical device technology
companies have suffered significant setbacks in advanced clinical trials, even after obtaining promising earlier trial results.
Data obtained from such clinical trials are susceptible to varying interpretations, which could delay, limit or prevent regulatory
approval. After gaining approval of a drug product, pharmaceutical and biotechnology companies face considerable challenges in
marketing and distributing their products, and may never become profitable. You should read carefully the risks described in the
section entitled &ldquo;Risk Factors&rdquo; beginning on page 9 of this prospectus, and in any accompanying prospectus supplement
or related free writing prospectus, to better understand the significant risks and uncertainties inherent in our business and underlying
any forward-looking statements. As a result of these factors, actual results could differ materially and adversely from those anticipated
or implied in the forward-looking statements in this report and you should not place undue reliance on any forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any forward-looking statements that we make in this prospectus
speak only as of the date of such statements and we undertake no obligation to publicly update any forward-looking statements or
to publicly announce revisions to any of the forward-looking statements, whether as a result of new information, future events
or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to the risks described in the section entitled &ldquo;Risk
Factors&rdquo; beginning on page 9 of this prospectus, many important factors affect our ability to achieve our plans and objectives
and to successfully develop and commercialize our product candidates. In addition, our results may be affected by our ability to
manage our financial resources, difficulties or delays in developing manufacturing processes for our product candidates, preclinical
and toxicology testing and regulatory developments. Delays in clinical programs, whether caused by competitive developments, adverse
events, patient enrollment rates, regulatory issues or other factors, could adversely affect our financial position and prospects.
Prior clinical trial program designs and results are not necessarily indicative of future clinical trial designs or results. If
our product candidates do not meet safety or efficacy endpoints in clinical evaluations, they will not receive regulatory approval
and we will not be able to market them. The FDA may not approve our BLA for RI-002, our data, our results, or permit us to proceed.
We may not be able to enter into any strategic partnership agreements. Operating expenses and cash flow projections involve a high
degree of uncertainty, including variances in future spending rates due to changes in corporate priorities, the timing and outcomes
of clinical trials, competitive developments and the impact on expenditures and available capital from licensing and strategic
collaboration opportunities. If we are unable to raise additional capital when required or on acceptable terms, we may have to
significantly delay, scale back or discontinue one or more of our drug development or discovery research programs and delay or
abandon potential commercialization efforts. We may not ever have any products that generate significant revenue. Therefore, current
and prospective security holders are cautioned that there can be no assurance that the forward-looking statements included in this
document will prove to be accurate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Use
of Proceeds</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We estimate that we will receive up to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in gross proceeds
from the sale of Common Stock in the Offering. After deducting estimated discounts and commissions to the underwriters and estimated
offering expenses payable by us, we expect net proceeds of up to approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million. We expect to use the proceeds received
from the Offering for (i) the purchase of raw material inventory and the ramp-up of our manufacturing capabilities, (ii) continued
remediation of the issues identified in the CRL and the Warning Letter, (iii) capital expenditures for the Boca Facility, (iv)
product launch and medical education campaigns, (v) the build-out of our third ADMA BioCenters plasma collection facility, (vi)
research and development activities for our plasma collection programs and specialty plasma products, and (vii) working capital
needs and general corporate purposes. The proceeds received from the Offering are also expected to enable us, by June 30, 2018,
to: (a) successfully complete our internal quality management system overhaul, (b) obtain approval, through a PAS from the FDA,
for an optimized manufacturing process, for Bivigam, (c) downgrade the FDA inspection classification relative to the Warning Letter,
(d) obtain marketing clearance for the relaunch of Bivigam, and (e) refile our BLA for RI-002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each $1.00 increase (decrease) in the assumed public offering
price of $3.19 per share of Common Stock, the last reported sales price of our Common Stock on the Nasdaq Capital Market on October
6, 2017, would increase or decrease the net proceeds from this Offering by approximately $7.1 million, after deducting underwriting
discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares
of common stock we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares of Common Stock we are offering
would increase (decrease) the net proceeds to us from this Offering by approximately $2.9 million, after deducting underwriting
discounts and commissions and estimated offering expenses payable by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pending the application of the net proceeds, we intend to invest
the net proceeds of the Offering in short-term, interest-bearing, investment-grade securities or certificates of deposit. Our management
has broad discretion over how these proceeds are used and could utilize the proceeds in ways with which you may not agree. We reserve
the right to change the use of these proceeds as a result of certain contingencies such as competitive developments, the result
of our sales and marketing efforts and other factors. Pending the use of the proceeds in this Offering, we will invest them. However,
the proceeds may not be invested in a manner that yields a favorable, or any, return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DILUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our reported net tangible book value as
of June 30, 2017 was $18.1 million, or $0.70 per share of Common Stock, based upon an aggregate of 25,773,481 shares of Common
Stock and Non-Voting Common Stock outstanding as of that date. Net tangible book value per share is determined by dividing such
number of outstanding shares of Common Stock into our net tangible book value, which are our total tangible assets less total liabilities.
After giving effect to the sale of shares in this Offering at an assumed offering price of $3.19 per share, after deducting payments
of discounts and commissions to the underwriters and other estimated offering expenses payable by us, our net tangible book value
at June 30, 2017 would have been approximately $40.6 million, or $1.21 per share. This represents an immediate increase in net
tangible book value of  $0.51 per share to our existing stockholders, and an immediate dilution of $1.98 per share
to investors purchasing shares in the Offering. The following table illustrates the per share dilution to investors purchasing
shares in the offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 85%">Public offering price per share, assumed</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">3.19</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net tangible book value per share as of June 30, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.70</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Increase per share attributable to sale of shares to investors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.51</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">As adjusted net tangible book value per share after the Offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.21</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Dilution per share to investors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.98</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dilution as a percentage of the offering price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The dilution information discussed above
is illustrative only and will change based on the actual offering price and other terms of this Offering determined at pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase (decrease) in the assumed
public offering price of $3.19 per share of Common Stock, the last reported sales price of our Common Stock on the Nasdaq Capital
Market on October 6, 2017, would increase or decrease the net proceeds from this Offering by approximately $7.1 million, after
deducting underwriting discounts and commissions and estimated offering expenses payable by us. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may also increase or decrease the
number of shares of common stock we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares of
Common Stock we are offering would increase (decrease) the net proceeds to us from this Offering by approximately $2.9
million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. In addition,
an increase of 1,000,000 shares in the number of shares of Common Stock we are offering would increase our as adjusted net
tangible book value by $0.05 per share and decrease the dilution to new investors in this Offering by $0.05 per
share, after deducting the estimated underwriting discounts and commissions and the estimated offering expenses payable by
us. Similarly, a decrease of 1,000,000 shares in the number of shares of Common Stock we are offering would decrease our
as adjusted net tangible book value by $0.05 per share and increase the dilution to new investors in this Offering by
$0.05 per share, assuming that the public offering price remains the same, and after deducting the underwriting
discounts and commissions and estimated offering expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the Underwriters exercise their option in full to purchase
additional shares of common stock in this Offering at the assumed public offering price of $3.19 per share, the net tangible book
value per share after this Offering would be $1.27 per share, the increase in the net tangible book value per share to existing
stockholders would be $0.57 per share and the dilution to new investors purchasing securities in this Offering would be $1.92 per
share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Overview </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a vertically integrated commercial biopharmaceutical
and specialty immunoglobulin company that manufactures, markets and develops specialty plasma-derived biologics for the treatment
of immune deficiencies and prevention of certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. We currently
have two marketed products: Nabi-HB, indicated for the treatment of acute exposure to blood containing HBsAg; and Bivigam, indicated
for the treatment of primary humoral immunodeficiency. We are also developing a pipeline of plasma-derived therapeutics, including
our lead pipeline product candidate, RI-002 for the treatment of PIDD. Our products and product candidates are intended to be used
by physician specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, we completed the acquisition of the Biotest
Assets, which includes two FDA licensed products, Nabi-HB and Bivigam, and the Boca Facility. Nabi-HB and Bivigam are manufactured
at the Boca Facility, an FDA-licensed facility certified by the GHA. In addition to the manufacture and sale of Nabi-HB and Bivigam,
we also provide contract manufacturing for certain historical clients, including the sale of intermediate by-products. Immediately
following the acquisition, the Biotest Assets were contributed into ADMA BioManufacturing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Concurrent with the closing of the acquisition of the Biotest
Assets, we received $12.5 million in cash consideration in addition to a $15.0 million subordinated note from Biotest at 6% interest
payable to BPC with a maturity of five years, and Biotest committed to participate in any future equity offering or private placement
undertaken by us in an amount equal to up to $12.5 million on a pro-rata basis, which will be invested as part of this Offering.
At the closing of the Biotest Transaction, we delivered to BPC the Biotest Equity Interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Marketed Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Nabi-HB</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nabi-HB&nbsp;is a hyperimmune globulin that is rich in antibodies
to the Hepatitis B virus. Nabi-HB is a purified human polyclonal antibody product collected from plasma donors who have been previously
vaccinated with a Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing Hepatitis B
surface antigen (&ldquo;HBsAg&rdquo;), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive
persons and household exposure to persons with acute Hepatitis B virus infection. Hepatitis B is a potentially life-threatening
liver infection caused by the Hepatitis B virus. It is a major global health problem. It can cause chronic infection and puts people
at high risk of death from cirrhosis and liver cancer. Nabi-HB&nbsp;has a well-documented record of long-term safety and effectiveness
since its initial market introduction. FDA approval for Nabi-HB was received on March 24, 1999. Biotest acquired Nabi-HB from Nabi
Biopharmaceuticals in 2007.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Bivigam</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Bivigam is an intravenous immune globulin indicated for the
treatment of primary humoral immunodeficiency. This includes, but is not limited to, agammaglobulinemia, common variable immunodeficiency,
Wiskott-Aldrich syndrome and severe combined immunodeficiency. These PIs are a group of genetic disorders. Initially thought to
be very rare, it is now believed that as many as one in every 1,200-2,000 people has some form of PI. Bivigam contains a broad
range of antibodies similar to those found in normal human plasma. These antibodies are directed against bacteria and viruses,
and help to protect PI patients against serious infections. Bivigam is a purified, sterile, ready-to-use preparation of concentrated
human IgG antibodies. Antibodies are proteins in the human immune system that work to defend against disease. FDA approval for
Bivigam was received on December 19, 2012, and sales commenced in the first quarter of 2013. In December 2016, BPC temporarily
suspended the commercial production of Bivigam in order to focus on the completion of planned improvements to the manufacturing
process.&nbsp;Although we expect to resume production in the fourth quarter of 2017, Bivigam is not expected to be available for
sale throughout the remainder of 2017 and FDA clearance for relaunch is expected to occur by mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Lead Pipeline Product Candidate &ndash; RI-002</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are currently developing our lead pipeline product candidate,
RI-002, for the treatment of PIDD, and have completed a pivotal Phase III clinical trial, which met the primary endpoint of no
SBIs reported. Secondary efficacy endpoints further demonstrated the benefits of RI-002 in the low incidence of infection, therapeutic
antibiotic use, days missed from work/school/daycare, and unscheduled medical visits and hospitalizations. RI-002 is derived from
human plasma blended from normal donors and from donors tested to have high levels of neutralizing titers to RSV. RI-002 is manufactured
using a process called fractionation, which purifies IgG from this blended plasma pool resulting in a final IVIG product enriched
with naturally occurring polyclonal anti-pathogen antibodies (e.g., streptococcus pneumonia, H. influenza type B, CMV, measles,
tetanus, etc.). We use our proprietary RSV microneutralization assay to test for standardized levels of neutralizing antibodies
to RSV in the final drug product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment
of PIDD. In July 2016, the FDA issued the CRL. The CRL reaffirmed the issues set forth in the Warning Letter that had been issued
to Biotest related to certain issues identified at the Boca Facility, but did not cite any concerns with the clinical safety or
efficacy data for RI-002 submitted in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA
approval of RI-002. The FDA identified in the CRL, among other things, certain outstanding inspection issues and deficiencies related
to CMC and GMP at the Boca Facility and at certain of our third-party vendors, and requested documentation of corrections for a
number of these issues. The FDA indicated in the CRL that it cannot grant final approval of our BLA until, among other things,
these deficiencies are resolved. Following the completion of the Biotest Transaction, we now have control over the regulatory,
quality, general operations and drug substance manufacturing process at the Boca Facility, and our highest priority is to remediate
the outstanding compliance issues that were identified at the Boca Facility in the Warning Letter, and we plan to be inspection-ready
for the FDA by the end of 2017. We are currently working with a consulting firm consisting of quality management systems and biologics
production subject matter experts in preparation for a re-inspection by the FDA in order to downgrade the FDA inspection classification
relative to the Warning Letter compliance issues as indicated in the CRL. Following downgrading of the FDA inspection classification,
we anticipate that we will be in a position to refile our BLA for RI-002 in mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Evaluation of RI-002 in PIDD Patients</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PIDD, a genetic disorder that causes a deficient or absent immune
system, is caused by hereditary or genetic defects and can affect anyone regardless of age or gender. PIDD patients are more vulnerable
to infections and more likely to suffer complications from these infections. IVIG is a plasma derived product that is used to prevent
serious infections in patients with PIDD. It is comprised of polyclonal antibodies, which are proteins produced by B-cells that
are used by the body&rsquo;s immune system to neutralize foreign objects such as bacteria and viruses. It is estimated that there
are about 250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. In the U.S.,
sales of immune globulin products for all its uses were reported to be approximately $4.8 billion in 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The RI-002 pivotal Phase III clinical trial was conducted as
a single arm study in which patients were treated approximately once per month for a period of 12 months plus 90 days for follow
up. Fifty-nine patients were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of serious infections to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic, or PK, data collection points including
antibody titers for certain agents, including RSV antibody levels at various time points after infusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RI-002 demonstrated positive results in the Phase III study
in patients with PIDD, meeting its primary endpoint of no SBIs reported. Secondary efficacy endpoints further demonstrated the
benefits of RI-002 in the low incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare, and unscheduled
medical visits and hospitalizations. RI-002 was administered in a total of 793 infusions with zero serious adverse events to 59
patients in nine treatment centers throughout the U.S. These results, included in our BLA, more than meet the requirement specified
by FDA guidance of &le; 1 SBI per patient-year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February 22, 2015, at the 2015 American Academy of Allergy,
Asthma &amp; Immunology Annual Meeting, scientific investigators reported on the secondary outcomes that included: a total of 93
days, or 1.66 days per patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and IgG trough levels above those required by the FDA for IVIG products. Additionally, there
was a marked increase in all of the measured specific anti-pathogen antibodies in PK subjects (n=31). The mean of maximum fold
increases in specific antibody levels after infusion of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV),
which were statistically significant fold increases from the pathogen's specific measured baselines. The safety profile of RI-002
is comparable to that of other immunoglobulins.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Rationale for the Potential Evaluation of RI-002 in RSV
Infected Patients</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RSV is a common virus that ordinarily leads to mild, cold-like
symptoms in healthy adults and children. In high-risk groups, such as the PIDD population and the other immune-compromised populations,
RSV can lead to a more serious infection and may even cause death. The polyclonal antibodies which are present in RI-002 are expected
to prevent infections in immune-compromised patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We previously conducted a randomized, double-blind, placebo-controlled
Phase II clinical trial to evaluate RI-001, RI-002&rsquo;s predecessor product candidate, in immune-compromised, RSV-infected patients.
This trial was conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial demonstrated
a statistically significant improvement in the change from baseline RSV titers to day 18 in the high dose and low dose treatment
groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The mean fold increase for high dose was 9.24 (95% CI
4.07, 21.02) and the observed mean fold increase for low dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated
patients was 1.42 (95% CI 0.64, 3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced
greater than a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no serious drug-related
adverse events reported during the trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From April 2009 through February 2011, RI-001 was also administered
to 15 compassionate use patients where physicians requested access to the product for treating their patients with documented lower
respiratory tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum samples
were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in RSV antibody titers from
baseline. Serum samples were not obtained from two patients that received Palivizumab. All 11 surviving patients received RI-001
within an average of 4.4 days after the onset of the diagnosis of RSV. The drug was well-tolerated in all 15 patients and there
were no reports of serious adverse events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience
and data obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various conferences
the past several years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Based on these results, we intend to evaluate RI-002 for the
treatment of RSV patients following FDA approval, if received, for treatment of PIDD.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Manufacturing and
Supply of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">In order to produce plasma-derived
immunoglobulin products, raw material plasma is collected from human donors and then manufactured into specialized products. Historically,
plasma for our products and product candidates has been collected from healthy donors at FDA-licensed plasma donation centers.
Source plasma is collected at any one of over 400 FDA-licensed donation centers located throughout the U.S., using a process called
automated plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular components
in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is tested and must be negative for
antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg and HCV, using FDA-licensed serological test procedures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">After receipt of the source
plasma, the frozen plasma is thawed and pooled and goes through a process called &ldquo;fractionation.&rdquo; This process is referred
to as the Cohn method or cold ethanol method of fractionation. During cold ethanol fractionation, classes of proteins are precipitated
and removed by centrifugation or filtration. The fractionation process includes the following steps; precipitation and absorption,
depth filtration, centrifugation and chromatography. Because of the human origin of the raw material and the thousands of donations
required in the fractionation process, the major risk associated to plasma products is the transmission of blood-borne infectious
pathogens. These purification processes have the potential to reduce the viral load. The manufacturing process also utilizes a
multistep viral removal/inactivation system, which further increases the safety of the products. The following manufacturing processes
have been validated for their capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment, and nanofiltration. Incorporation of these processes in the manufacturing process ensures that the Company&rsquo;s products
comply with the requirements of the FDA and are safe and efficacious.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Sales and Commercialization
of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Historically, Nabi-HB
has been sold through independent distributors, drug wholesalers acting as sales agents, specialty pharmacies and other alternate
site providers. In the U.S., third-party drug wholesalers ship a significant portion of Nabi-HB through their distribution centers.
These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods
include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing
systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While we are working towards remediating the Warning Letter
and other CMC and GMP inspection deficiencies and eventually refiling our BLA resubmission for RI-002, we expect to continue our
commercialization efforts for our approved products and plan to bolster these initiatives by hiring a small, specialty sales force
to market Nabi-HB, Bivigam upon its relaunch and, upon approval by the FDA, RI-002 to hospitals, physician offices/clinics, and
other specialty treatment organizations. We also anticipate staffing our company with additional personnel for patient support,
medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. If and when we receive FDA approval, we may also use a network of national
distributors to assist with order fulfillment for RI-002 for use by healthcare professionals and hospitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Pharmaceutical Pricing
and Reimbursement of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">All sales of Nabi-HB and
Bivigam in the U.S. depend in part upon the availability of reimbursement from third-party payers. Third-party payers include government
health programs, managed care providers, private health insurers and other organizations. Nabi-HB and Bivigam are reimbursed or
purchased under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health Service program,
and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a joint state and federal government
health plan that provides covered outpatient prescription drugs for low-income individuals. Under Medicaid, drug manufacturers
pay rebates to the states based on utilization data provided by the states.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Plasma Collection Facilities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our wholly-owned subsidiary, ADMA BioCenters, operates FDA-licensed,
GHA and KMFDS certified source plasma collection facilities located in the U.S. which provide us with a portion of our blood plasma
for the manufacture of our products and product candidates. A typical plasma collection center, such as those operated by ADMA
BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices
depending upon the type of plasma, quantity of purchase, and market conditions at the time of sale. Plasma collected from ADMA
BioCenters' facilities that is not used to manufacture our products or product candidates are sold to third-party customers in
the U.S., and other locations where we are approved globally under supply agreements or in the open &quot;spot&quot; market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Leadership</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The founders of ADMA have, combined, greater than 60 years of
experience marketing and distributing blood plasma products and devices. With our executive team, members of the Board and our
commercial team, we collectively possess over 200 years of deep medical, technical, development and commercial experience in the
biologics and pharmaceutical industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Strategy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our goal is to be a leader in developing, manufacturing and
commercializing specialized, targeted, plasma-derived therapeutics that are intended to extend and enhance the lives of individuals
who are naturally or medically immune-compromised. The key elements of our strategy for achieving this goal are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Remediate the outstanding compliance deficiencies
identified by the FDA in the CRL and Warning Letter at the Boca Facility</I></B>. Following the completion of the Biotest Transaction,
we now have control over the regulatory, quality, general operations and drug substance manufacturing process at the Boca Facility.
Our highest priority is to remediate the outstanding compliance issues that were identified by the FDA in the CRL and Warning Letter
at the Boca Facility while owned and operated by Biotest. We have engaged a leading consulting firm with extensive experience in
remediating compliance and inspection issues related to quality management systems that manages a robust team of subject matter
experts in plasma derived products and biologic drugs to assist us in addressing all identified CMC and cGMP issues and deficiencies.
We expect to be inspection-ready by the end of 2017 and subsequently expect to have the FDA inspection classification relative
to the Warning Letter downgraded after the next inspection by the FDA.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Increase marketing efforts around Nabi-HB and
relaunch Bivigam. </I></B>We plan to increase our marketing efforts and attend relevant medical conferences throughout the remainder
of 2017 and 2018, raising awareness of the risks associated with Hepatitis B and the benefits and efficacy of Nabi-HB. Similarly,
we plan to relaunch Bivigam following the submission and review by the FDA of a Prior Approval Supplement (&ldquo;PAS&rdquo;),
which will detail our optimized Bivigam manufacturing process.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Obtain FDA approval of RI-002 as a treatment
for PIDD</I></B>. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment of PIDD. In July
2016, the FDA issued the CRL. The CRL did not cite any concerns with the clinical safety or efficacy data for RI-002 submitted
in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA approval of RI-002. In connection
with our remediation efforts at the Boca Facility, we anticipate that we will be in a position to refile our BLA for RI-002 in
mid-2018.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Commercialize RI-002 as a treatment for PIDD</I></B>.
We plan to enhance our recruiting initiatives and expand our existing specialty commercial sales force to market RI-002 to hospitals,
physician offices/clinics, and other specialty treatment and infusion center organizations. We also anticipate staffing our company
with additional personnel for patient support, medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party
reimbursement, inventory and logistics, human resources, and financial and operational management. We may also use a network of
national distributors to fulfill orders for RI-002.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Expand RI-002&rsquo;s FDA-approved uses</I></B>.
If RI-002 is approved by the FDA as a treatment for PIDD, we plan to evaluate the clinical and regulatory paths to grow the RI-002
franchise through expanded FDA-approved uses. We believe that there may be patient populations beyond PIDD that would derive clinical
benefit from RI-002, some of which may be eligible for orphan status. We plan to leverage our previously conducted randomized,
double-blind, placebo-controlled Phase II clinical trial evaluating RI-001, RI-002&rsquo;s predecessor product candidate, in immune-compromised,
RSV-infected patients to explore RI-002 for the treatment of RSV.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Expand our pipeline with additional plasma-derived
therapeutics</I></B>. Our core competency is in the development, manufacturing, testing and commercialization of plasma-derived
therapeutics. We believe there are a number of under-addressed medical conditions for which plasma-derived therapeutics may be
beneficial. Utilizing our intellectual property patents, which include our proprietary testing assay and other standardization
methods and technologies, we have identified potential new product candidates that we may advance into preclinical activities in
the near term.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Develop and expand ADMA BioCenters</I></B>. In order to maintain
partial control of our raw material supply as well as generate revenues through additional sources, we operate ADMA BioCenters,
a subsidiary that manages plasma collection facilities in the U.S. These facilities hold FDA licenses, along with GHA and KMFDS
certifications. Under the FDA licenses, ADMA BioCenters may collect normal source plasma and high-titer RSV plasma, with a portion
of the plasma being sold to third-party buyers. We also plan to grow through the creation and licensing of additional ADMA BioCenters
facilities in various regions of the U.S., including the recent construction of our third facility for which we expect to file
our BLA with the FDA by the end of 2017. Additional ADMA BioCenters may allow us to cost-effectively secure additional plasma for
our product manufacturing, and potentially increase revenues through the collection and sale of normal source plasma and other
hyperimmune plasma to third parties.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Summary of Acquisition of Biotest Assets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On January 21, 2017, we and ADMA BioManufacturing entered into
a definitive Master Purchase and Sale Agreement (as amended, restated, supplemented or otherwise modified from time to time, the
&ldquo;Purchase Agreement&rdquo;) with BPC, and for certain limited purposes set forth in the Purchase Agreement, Biotest AG, BPC&rsquo;s
parent corporation, and Biotest US Corporation, a Delaware corporation and subsidiary of Biotest AG (together with Biotest AG,
the &ldquo;Biotest Guarantors&rdquo;), pursuant to which, on June 6, 2017, ADMA BioManufacturing acquired certain assets and assumed
certain liabilities constituting BTBU. BTBU includes (a) the Boca Facility, consisting of two buildings of approximately 126,000
square feet located on approximately 15 acres of land in Boca Raton, and the associated real property, (b) all exclusive rights
to FDA licensed biologics products Nabi-HB, Bivigam and the investigational product Civacir&reg;, (c) in-process inventory with
an agreed-upon value of at least $5.0 million, (d) certain other properties and assets used exclusively in BTBU, and (e) certain
additional assets which relate to both BTBU and Biotest&rsquo;s plasma business, the arrangement with respect to which is documented
in that certain transition services agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing and BPC (the &ldquo;Transition
Services Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the terms and conditions of the Purchase Agreement,
(i) upon the closing, ADMA BioManufacturing assumed certain liabilities of BPC related to BTBU, including, without limitation,
related to (x) product liabilities, breach of warranty, product complaints, product returns, post-market commitments, recalls,
adverse event reporting, product deviation reporting, lookbacks, market withdrawals and field corrections or similar claims for
injury to person or property with respect to BTBU or any product of BTBU to the extent such liabilities relate to products manufactured
and sold by ADMA BioManufacturing after the closing (other than inventory transferred to us at the closing, which were allocated
50% to ADMA BioManufacturing and 50% to BPC if not traceable to acts or omissions of a particular party); and (y) other regulatory
matters, whether related to the pre-closing or post-closing period and including any liabilities related to the products of BTBU,
the Warning Letter, noncompliance with applicable laws and legal proceedings related to the foregoing, but excluding such liabilities
that arise out of any fraud, willful misconduct or intentional misrepresentation by BPC prior to the closing (the &ldquo;Assumed
Liabilities&rdquo;); (ii) upon the closing, we delivered to BPC the shares of Common Stock and Non-Voting Common Stock comprising
the Biotest Equity Interest; and (iii) on January 1, 2019, pursuant to the terms of a separate purchase agreement entered into
between ADMA BioManufacturing and BPC at the closing, we agreed to sell, transfer and convey to BPC for no additional consideration,
all of our right, title and interest in and to our plasma collection facilities located in the U.S., which are subject to a repurchase
right in favor of us if within five years after January 1, 2019, the Biotest stockholders and its related entities own less than
20% of our issued and outstanding capital stock. As part of the consideration, upon the closing, BPC exercised its right to designate
one director to our Board, which individual is initially Dr. Bernhard Ehmer, and BPC was also granted the right to designate one
observer to our Board. Under certain circumstances, BPC will also be granted the right to designate an additional director to our
Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, on June 6, 2017, BPC (i) delivered to us a capital
contribution of $12.5 million in cash in respect of the Biotest Equity Interest, which capital contribution was contributed by
BPC to ADMA BioManufacturing; and (ii) funded a $15.0 million unsecured subordinated loan to us, which (a) bears interest at a
rate of 6% per annum, payable semiannually in arrears on each of the six-month and twelve-month anniversary dates of the closing
date, (b) has a term of five years and (c) is not subject to any prepayment premium, penalty or other breakage costs (the &ldquo;Subordinated
Loan Facility&rdquo;). We are required to repay the Subordinated Loan Facility in full upon certain disposals of BTBU, certain
disposals of shares of ADMA BioManufacturing and other change of control events in relation to ADMA BioManufacturing or certain
liquidation events of the Company. All of ADMA BioManufacturing&rsquo;s obligations under the Subordinated Loan Facility are unconditionally
guaranteed by the Company. The Subordinated Loan Facility contains certain customary affirmative covenants. The Subordinated Loan
Facility also contains certain negative covenants limiting the incurrence by the Company or ADMA BioManufacturing of certain indebtedness,
the entry by the Company and its subsidiaries (including ADMA BioManufacturing) into certain transactions with affiliates and certain
voluntary or optional prepayments by the Company and its subsidiaries of indebtedness that is contractually subordinate in right
of payment to the obligations under the Subordinated Loan Facility. The Subordinated Loan Facility is subordinated to (i) the Company&rsquo;s
existing indebtedness under the Credit Agreement among the Company, the Company&rsquo;s subsidiaries and Marathon, (ii) any refinancing
of the Credit Agreement, in accordance with the terms and conditions of the subordination agreement dated as of October 10,
2017 between Marathon and BPC, and (iii) any additional &ldquo;Indebtedness&rdquo; (as defined in the subordinated loan agreement,
dated as of June 6, 2017, by and among the Company, ADMA BioManufacturing and BPC) for borrowed money approved by the Board and
incurred by the Company or ADMA BioManufacturing which is secured solely by a mortgage on the owned real property acquired in connection
with the Biotest Transaction. The Subordinated Loan Facility will rank <I>pari passu</I> with all additional indebtedness approved
by the Board and incurred by the Company or ADMA BioManufacturing which is not secured solely by the owned real property acquired
in connection with the Biotest Transaction. If such additional <I>pari passu</I> indebtedness is secured, then the Subordinated
Loan Facility will also be secured on a <I>pari passu</I> basis. The Subordinated Loan Facility contains certain customary events
of default. If an event of default occurs, BPC will be entitled to take various actions, including the acceleration of amounts
due under the Subordinated Loan Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If we undertake an underwritten equity financing or a private
placement of our equity securities involving at least one unrelated third party, Biotest has agreed to participate pro rata in
accordance with the Biotest Equity Interest up to an aggregate amount equal to up to $12.5 million on a pro-rata basis, which will
be invested as part of this Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, the parties also entered into a ten-year plasma
supply agreement, pursuant to which (x) BPC will sell to us high titer Hepatitis B plasma at a specified price (indexed by inflation),
and (y) we will purchase from BPC all Hepatitis B plasma necessary to produce Nabi-HB unless we require more than a specified amount,
in which case we may use alternative sources for the excess quantity. Additionally, on June 6, 2017, we and BPC entered into a
Termination Agreement with respect to the Manufacturing Supply and License Agreement and Master Services Agreement, which included,
effective as of January 21, 2017, a mutual release with respect to any claims related to or arising from any breach or default
under the existing Manufacturing Supply and License Agreement and Master Services Agreement between ADMA BioManufacturing and BPC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Purchase Agreement contains customary representations and
warranties of the parties, including, without limitation, with respect to: organization; power and authority; due authorization;
enforceability; capitalization; no conflict; no consents required; no actions; no orders; financial statements; indebtedness; no
undisclosed liabilities; absence of certain changes; taxes; contracts; customers and suppliers; intellectual property; title to
properties; real property; employee benefit plans; employees; insurance; compliance with laws; environmental matters; material
permits; inventory; affiliate transactions; and no brokers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Purchase Agreement also contains customary covenants and
agreements post-closing, including BPC not to compete with us in certain lines of business for a period of five years following
the June 6, 2017 closing date; BPC and the Biotest Guarantors not to solicit our employees for one year following the closing date;
we and ADMA BioManufacturing not to solicit BPC&rsquo;s employees for one year following the closing date; and BPC not to interfere
with our customers for five years following the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We and BPC will each indemnify the other party after the closing
for any losses arising from breaches of its representations, warranties, covenants and agreements in the Purchase Agreement. In
addition, ADMA BioManufacturing will indemnify BPC after the closing for any assumed liability, and BPC will indemnify us after
the closing for any excluded asset or excluded liability. The representations, warranties and pre-closing covenants generally survive
for 15 months following the closing of the transaction and each party&rsquo;s indemnification obligations with respect to (a) its
representations and warranties (other than its fundamental representations, which include representations related to taxes, organization,
due authorization, organizational documents, no conflicts, enforceability, title, sufficiency, the Kedrion Contract, brokers, etc.
and ownership of our securities) are subject to a $25,000 mini-basket and $750,000 true deductible; and (b) its representations
and warranties (other than fundamental) and pre-closing covenants are subject to a $25.0 million cap.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, on June 6, 2017, ADMA BioManufacturing and BPC
entered into the Transition Services Agreement, pursuant to which each of ADMA BioManufacturing and BPC agreed to provide transition
services to the other party, including services related to finance, human resources, information technologies, and clinical and
regulatory services for a period of up to 24 months after the closing date; as well as agreements to lease certain laboratory space
within the Boca Facility to BPC for a period of up to 24 months after the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, BPC entered into a standstill agreement with
ADMA, which will limit BPC&rsquo;s ability to control the Company. BPC also agreed to a six month lock-up of the sale of ADMA securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following the consummation of the Biotest Transaction, we believe
we are uniquely positioned to offer a fully vertically integrated commercial plasma products and immune globulin platform in the
U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Plasma Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Primary Immunodeficiency Disease </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PIDD is a class of hereditary disorders characterized by defects
in the immune system, due to either a lack of necessary antibodies or a failure of these antibodies to function properly. According
to the World Health Organization, there are over 150 different presentations of PIDD. As patients suffering from PIDD lack a properly
functioning immune system, they typically receive monthly, outpatient infusions of IVIG therapy. Without this exogenous antibody
immune support, these patients would be susceptible to a wide variety of infectious diseases. PIDD has an estimated prevalence
of 1:1,200 in the U.S., or approximately 250,000 people. Of these 250,000 people diagnosed with PIDD in the U.S., approximately
125,000 receive monthly infusions of IVIG and it is estimated that over 300,000 patients worldwide receive monthly IVIG infusions
for PIDD.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As most patients with PIDD present with infections, the differential
diagnosis and initial investigations for an underlying immune defect are typically guided by the clinical presentation. In subjects
with PIDD, individual infections are not necessarily more severe than those that occur in a normal host. Rather, the clinical features
suggestive of an immune defect may be the recurring and/or chronic nature of infections with common pathogens that may result in
end organ damage, such as bronchiectasis. In addition, subjects with PIDD will often respond poorly to standard antimicrobial therapy
or they may have repeated infections with the same pathogen. The virulence of the infecting organism should also be considered,
and a subject&rsquo;s immune competence should be questioned when invasive infections are caused by low virulence or opportunistic
pathogens. For example, infection with the opportunistic pathogens Pneumocystis jiroveci (previously Pneumocystis carinii) or atypical
mycobacteria should prompt an investigation for underlying immunodeficiency. Typical clinical presentations for subjects with PIDD
are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Antibody deficiency and recurrent bacterial infections;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">T-lymphocyte deficiency and opportunistic infections;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Other lymphocyte defects causing opportunistic infections;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Neutrophil defects causing immunodeficiency; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Complement deficiencies.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PIDD can present at any age from birth to adulthood, posing
a considerable challenge for the practicing physician to know when and how to evaluate a subject for a possible immune defect.
Subjects with marked antibody deficiencies are generally dependent on IVIG therapy for survival. Benefits of adequate IVIG therapy
in subjects not able to produce antibodies normally include a reduction of the severity and frequency of infections, prevention
of chronic lung disease and prevention of enteroviral meningoencephalitis. Several immune globulin products have already been approved
by the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RI-002, our IVIG product candidate, contains polyclonal antibodies
against various infectious agents (e.g., streptococcus pneumoniae, H. influenza type B, CMV, measles, tetanus, etc.) including
standardized antibodies against RSV. RSV is a common respiratory virus that often presents during the winter months. Nearly all
children will have been infected with RSV by three years of age; however, the immune systems of most healthy children prevent significant
morbidity and mortality. Conversely, in patients who are immune-compromised, such as those with PIDD or who have undergone a hematopoietic
stem cell or solid organ transplant and may be on immunosuppressive drugs or chemotherapy, RSV infection can be associated with
significant morbidity and mortality. Immune-compromised patients historically have a 5% to 15% rate of RSV infection, and, if left
untreated, lower respiratory tract RSV infections in immune-compromised patients can result in a mortality rate of up to 40% of
infected patients. In hematopoietic stem cell transplant, or HSCT, patients, a subset of the immune-compromised patient population
with approximately 25,000 transplants being performed annually in the U.S., it is estimated that about 25% of patients treated
with the current standard of care (aerosolized Ribavirin) will progress to Lower Respiratory Tract Infection (&ldquo;LRTI&rdquo;)
while 41% of patients untreated with the current standard of care will progress to LRTI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Plasma - Background, Composition and Manufacturing</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Human blood contains a number of components including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Red blood cells &ndash; Used to carry oxygen from the lungs to the
body;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">White blood cells &ndash; Used by the immune system to fight infection;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Platelets &ndash; Used for blood clotting; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Plasma &ndash; Used to carry the aforementioned components throughout
the body and provide support in clotting and immunity.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Plasma is the most abundant blood component, representing approximately
55% of total blood volume. Plasma, which is 90% water, is rich in proteins used by the human body for blood clotting and fighting
infection. These proteins account for approximately 7% of plasma&rsquo;s volume. As plasma contains these valuable proteins, plasma
collection and the manufacturing of human plasma-derived therapeutics provide therapeutic benefits for ill patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to produce plasma-derived therapeutics that can be
administered to ill patients, raw material plasma must be collected from human donors and then manufactured into specialized products.
Plasma is collected from healthy donors at FDA-licensed plasma donation centers. To ensure safety of the collected plasma, all
plasma donations are tested using FDA-approved methods of Nucleic Acid Testing for various infectious diseases, such as HIV or
HCV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Plasma is collected using a process called &ldquo;plasmapheresis.&rdquo;
During plasmapheresis, a donor&rsquo;s blood is drawn into a specialized medical device that separates the plasma component through
centrifugation, and then returns the other blood components back into the donor&rsquo;s bloodstream. Plasmapheresis is performed
utilizing an FDA-approved, automated device with a sterile, self-contained collection kit. The plasma that is collected is known
as &ldquo;normal source plasma.&rdquo; There are over 500 plasma donation centers in the U.S. As noted in a variety of plasma industry
trade reports and related conferences, approximately 35 million liters of source plasma were collected in the U.S. in 2015. In
the U.S., a donor may donate plasma a maximum of two times during any seven-day period, with at least two days in between donations.
Plasma donation centers in the U.S. typically pay donors $25 to $50 per donation and some donors with rare or high antibody levels
can be paid more.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to isolate the desired therapeutic elements in normal
source plasma, it must initially undergo a manufacturing process called &ldquo;fractionation.&rdquo; The process of fractionation
was invented in the 1940&rsquo;s by E.J. Cohn and is referred to as the Cohn method or cold ethanol fractionation. First, the source
plasma undergoes a process called pooling, in which the individual plasma donations are combined into a pooling tank. Second, the
Cohn fractionation method, which is a combination of time, temperature, pH, alcohol concentration and centrifugation, is used to
separate the desired plasma protein components, or &ldquo;fractions.&rdquo; After fractionation, the separated proteins are then
re-suspended and are treated with a solvent detergent treatment process for viral inactivation. Next, other forms of filtration
(e.g., nanofiltration) are performed as an additional viral removal and viral reduction step. Finally, with the various components
separated and purified, the bulk product is formulated and filled into final, finished vials. During these various steps of manufacturing,
each lot is reviewed and tested for potency and purity prior to being approved for release.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proteins in human plasma fall into four categories: albumin
(60% of protein volume), immune globulins (15% of protein volume), coagulation factors (1% of protein volume), and other proteins
(24% of protein volume) such as alpha-1 proteinase inhibitor, C1 esterase inhibitor, fibrin sealants and fibrinogen. Many of the
other proteins in plasma have yet to be developed into commercial therapies. In the U.S., not only are the plasma collection centers
subject to FDA licensure, but each plasma protein product that is derived and fractionated from plasma must undergo an approval
process with FDA&rsquo;s Center for Biologics Evaluation and Research.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Immune Globulins</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In June 2008, the FDA published the FDA Guidance for Industry
outlining the regulatory pathway for the approval of IVIG for the treatment of PIDD <I>(Guidance for Industry: Safety, Efficacy,
and Pharmacokinetic Studies to Support Marketing of Immune Globulin Intravenous (Human) as Replacement Therapy for Primary Humoral
Immunodeficiency)</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Immune globulins can be administered in three ways: intramuscularly,
intravenously or subcutaneously. IVIG principally contains antibodies and, as such, provides passive immunization for individuals
who are immune-deficient or who have been exposed to various infectious agents. IVIG is used therapeutically in a variety of immunological
diseases/deficiencies, such as PIDD, idiopathic thrombocytopenic purpura, Guillain-Barr&eacute; syndrome, Kawasaki disease, bone
marrow transplant, and chronic inflammatory demyelinating polyneuropathy. We are aware that other companies are also evaluating
IVIG in a clinical trial for the treatment of Alzheimer&rsquo;s disease. Additionally, IVIG is also used as therapy in a variety
of other diseases that do not involve primary or secondary immune deficiencies, such as multiple sclerosis, skin disease, and asthma.
These latter uses are referred to as &ldquo;off-label&rdquo; or evidence-based uses because the FDA has not approved their use
in these indications and promotion of such uses is not permitted by FDA unless a BLA or BLA supplement with additional data is
approved. Among the various IVIG products, there are only 14 labeled indications approved by the FDA. However, medical literature
identifies at least 150 evidence-based uses for IVIG, of which approximately 60 are currently included on lists of reimbursable
uses by Medicare and other healthcare plans. This provides opportunities for new product development and submissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are two types of immune globulins, standard and hyperimmune.
The difference between standard immune globulins and hyperimmune globulins is that the latter are manufactured using plasma obtained
from donors who have elevated amounts (high-titers) of specific antibodies. These high-titer products can be used to treat and
prevent diseases that present those specific antigens that are reactive with the high-titer antibodies. Hyperimmune products currently
available include Hepatitis B, tetanus, rabies, CMV and RhoD immune globulins.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Currently, the worldwide market for plasma-derived therapeutic
drug products was approximately $15 billion and the U.S. market for all plasma-derived products was approximately $7.8 billion.
IVIG products accounted for approximately $4.8 billion of sales in the U.S. in 2014. IVIG products are used to treat primary immune
deficiencies, certain autoimmune diseases, and other illnesses for immune-compromised patients and certain neuropathy indications.
New research and data, additional labeled indications, an aging population and emerging countries with new markets are all adding
to the worldwide growth of IVIG utilization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Manufacturing and Supply</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to produce plasma-derived therapeutics that can be
administered to patients, raw material plasma is collected from healthy donors at plasma collection facilities licensed by the
FDA. ADMA BioCenters operates FDA-licensed, GHA and KMFDS-certified source plasma collection facilities located in the U.S. which
provide us with a portion of our blood plasma for the manufacture of our current products and product candidates. A typical plasma
collection center, such as those operated by ADMA BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma
annually, which may be sold for different prices depending upon the type of plasma, quantity of purchase, and market conditions
at the time of sale. Plasma collected from ADMA BioCenters' facilities that is not used for the manufacture of our current products
and product candidates is sold to third-party customers in the U.S., and other locations where we are approved globally under supply
agreements or in the open &quot;spot&quot; market. As part of the purchase price to acquire the Biotest Assets, we have agreed
to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with the construction
of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for this facility by
the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, we and BPC entered into a Termination Agreement
with respect to the Manufacturing Supply and License Agreement and Master Services Agreement, which included, effective as of January
21, 2017, a mutual release with respect to any claims relating to or arising from any breach or default under the existing Manufacturing
Supply and License Agreement and Master Services Agreement between ADMA BioManufacturing and BPC. Under our Manufacturing, Supply
and License Agreement with BPC, we agreed to purchase exclusively from BPC our worldwide requirements of RSV immune globulin manufactured
from human plasma containing RSV antibodies. The term of the agreement was for a period of ten years from January 1, 2013, renewable
for two additional five year periods at the agreement of both parties. We were obligated under this agreement to purchase a minimum
of at least one lot of product during each calendar year after the finished product is approved by the FDA. This number was subject
to increase at our option. As consideration for BPC&rsquo;s obligations under the agreement, we were obligated to pay a dollar
amount per lot of RSV immune globulin manufactured from human plasma containing RSV antibodies, as well as a percentage royalty
on the sales thereof and of RI-002, up to a specified cumulative maximum amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of a Plasma Purchase Agreement with BPC,
we have agreed to purchase from BPC an annual minimum volume of source plasma containing antibodies to RSV to be used in the manufacture
of RI-002. We must purchase a to-be-determined and agreed upon annual minimum volume from BPC, but may also collect high-titer
RSV plasma from up to five wholly-owned ADMA BioCenters. During 2015, BPC and ADMA amended its plasma supply agreement to allow
ADMA the ability to collect its raw material RSV high-titer plasma from other third-party collection organizations, thus allowing
ADMA to expand its reach for raw material supply as we approach commercialization for RI-002. Unless terminated earlier, the agreement
expires in November 2021, after which it may be renewed for two additional five-year periods if agreed to by the parties. Either
party may terminate the agreement if the other party fails to remedy any material default in the performance of any material condition
or obligation under the agreement following notice. Either party may also terminate the agreement, after providing written notice,
if a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership law is filed by or against
the other party, and is not dismissed or stayed, or a receiver or trustee is appointed for all or a substantial portion of the
assets of the other party, or the other party makes an assignment for the benefit of its creditors or becomes insolvent. We may
also terminate the agreement upon written notice if the clinical development of our product candidate is halted or terminated,
whether by the FDA, a Data Safety Monitoring Board, or any other regulatory authority. Upon termination of the agreement, we must
pay for any source plasma already delivered to us and for any source plasma collected under the terms of the agreement. As part
of the closing of the Biotest Transaction, we amended the Plasma Purchase Agreement to extend BPC&rsquo;s annual minimum purchase
requirements of plasma containing antibodies to RSV for ten years through the closing date of the Biotest Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 22, 2012, we entered into a Plasma Supply Agreement
with BPC for the purchase of normal source plasma from ADMA BioCenters&rsquo; Norcross facility to be used in BPC's proprietary
products&rsquo; manufacturing, which was subsequently amended on February 25, 2014 and then amended and restated on March 23, 2016.
After the initial term, the agreement may be renewed on an annual basis upon the mutual consent of the parties. In addition to
any other remedy it may have, either party has the right to terminate the agreement if the other party fails to remedy any material
default in the performance of a material condition or obligation under the agreement following written notice. In addition, upon
giving the appropriate written notice, either party may terminate the agreement upon the occurrence of any of the following events:
a proceeding under bankruptcy, reorganization, agreement of debts, insolvency or receivership law is filed by or against the other
party, and is not dismissed or stayed, or a receiver or trustee is appointed for all or a substantial portion of the assets of
the other party, or the other party makes an assignment for the benefit of its creditors or becomes insolvent. Neither party can
assign the agreement or any of its right or obligations thereunder without the express written consent of the other party. However,
with notice to the other party, either party without the other party&rsquo;s consent may assign the agreement to (i) its affiliate,
or (ii) a successor to all or substantially all of the assets related to the business of that party which is involved in the fulfillment
of its obligations under the agreement. Under the agreement, BPC applied to the GHA for, and we have subsequently obtained, GHA
certification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Historically, a significant amount of our total revenue is attributable
to a single customer, BPC. For the six months ended June 30, 2017, two of our customers, SK and BPC, represented 90% of our total
revenue, with BPC representing 75% of our total revenue and SK representing 15% of our total revenue. Although we expect this concentration
to decrease over the remainder of the year as additional sales of Nabi-HB are reflected in our consolidated financial statements,
these two customers are still expected to account for a significant portion of our revenue generated from ADMA BioCenters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 7, 2012, we entered into a Testing Services Agreement
with Quest Diagnostics Clinical Laboratories, Inc. (&ldquo;Quest&rdquo;) in which Quest agreed to provide biomarker testing and
related support services for protocol screening and recertification which are exclusive to us. If either party believes the other
party is in material breach of any of their obligations under the agreement, the non-breaching party has the right to terminate
the agreement by providing the breaching party with written notice specifying the material breach(es) and indicating clearly its
intention to terminate the agreement. If the breaching party cures such breach, the non-breaching party&rsquo;s notice is void.
In addition, either party can terminate the agreement without cause upon written notice. All data, test results, studies and other
information generated by Quest in performing services under the agreement will be our sole property. Neither party can assign the
agreement or any of its right or obligations under the agreement without the express written consent of the other party, except
under specified circumstances. Quest agreed and acknowledged that we paid for the development and validation of the testing assay
and as such, the assay is our sole property and shall only be utilized for our benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Marketing, Sales and Market Research</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We intend to market and sell our product through our specialty
sales force, distribution relationships and other customary industry methods. We will focus our efforts specifically on the easily
identifiable treatment centers which specialize in the care and management of immune compromised individuals. We estimate that
there are approximately 500 leading specialty programs in the U.S. which have significant patient populations for PIDD, suitable
for treatment with RI-002. We plan to hire our own specialty sales force which will consist of account managers, medical science
liaisons and other normal and customary scientific, medical and detail representatives. Our management and Board has substantial
prior direct marketing, sales and distribution experience with plasma derived drugs, specialty immune globulins and other biological
products. We also anticipate staffing the company with additional personnel for patient support, medical affairs, quality assurance,
regulatory affairs, scientific affairs, third-party reimbursement, supply chain and logistics, human resources, financial and other
operational management positions. As is normal and customary in the plasma products industry, we may also use a network of national
distribution organizations that have specialty divisions that focus on plasma products to fulfill orders for RI-002. We anticipate
that due to certain recent events, including our Biotest Transaction, our current and anticipated plans and intentions will evolve
and change. See &ldquo;Special Note Regarding Forward-Looking Statements.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, we and BPC entered into a Termination Agreement
with respect to the Manufacturing Supply and License Agreement and Master Services Agreement, which included, effective as of January
21, 2017, a mutual release with respect to any claims related to or arising from any breach or default under the existing Manufacturing
Supply and License Agreement and Master Services Agreement between ADMA BioManufacturing and BPC. Pursuant to our Manufacturing,
Supply and License Agreement, we granted BPC an exclusive license to market and sell RSV antibody-enriched IVIG in Europe and in
selected countries in North Africa and the Middle East, collectively referred to as the Territory, to have access to our testing
services for testing of BPC&rsquo;s plasma samples using our proprietary RSV assay, and to reference (but not access) our proprietary
information for the purpose of BPC seeking regulatory approval for the RSV antibody-enriched IVIG in the Territory. As consideration
for the license, BPC provided us with certain services at no charge and also compensated us with cash payments upon the completion
of certain milestones. BPC was also obligated to pay us an adjustable royalty based on a percentage of revenues from the sale of
RSV antibody-enriched IVIG in the Territory for 20 years from the date of first commercial sale. Additionally, BPC granted us an
exclusive license for marketing and sales in the U.S. and Canada for BPC&rsquo;s Varicella Zoster Immune Globulin, or VZIG, of
which terms terminated upon the closing of the Biotest Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Although blood plasma and its derivative proteins are not subject
to patent protection, the FDA recognizes each immune globulin product as unique and generally requires a separate IND clinical
trial and BLA for each as a condition to approval. Regardless of whether competitors are able to develop an assay that can achieve
our level of consistency and reproducibility in providing RSV antibody titer data, we believe they would still be required to validate
and qualify such an assay as well as conduct clinical trials and undergo an FDA review prior to marketing an immune globulin product.
The plasma products industry is highly competitive. We face, and will continue to face, intense competition from both U.S.-based
and foreign producers of plasma products, some of which have lower cost structures, greater access to capital, direct ownership
of manufacturing facilities, greater resources for research and development, and sophisticated marketing capabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These competitors may include: CSL Behring, Grifols Biologicals,
Shire, Octapharma and Kedrion. In addition to competition from other large worldwide plasma products providers, we face competition
in local areas from smaller entities. In Europe, where the industry is highly regulated and health care systems vary from country
to country, local companies may have greater knowledge of local health care systems, more established infrastructures and have
existing regulatory approvals or a better understanding of the local regulatory process, allowing them to market their products
more quickly. Moreover, plasma therapy generally faces competition from non-plasma products and other courses of treatments. For
example, recombinant Factor VIII products compete with plasma-derived products in the treatment of Hemophilia A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the second quarter of 2015, U.S. Pat. App. Serial No.
14/592,721, entitled &lsquo;Compositions and Methods for the Treatment of Immunodeficiency&rsquo;, encompassing our RI-002 product,
was allowed and issued August 18, 2015 as U.S. Patent No. 9,107,906. The &lsquo;906 patent has a term at least through January
2035 and covers compositions comprising pooled plasma, as well as immunoglobulin prepared therefrom, that contains a standardized,
elevated titer of RSV neutralizing antibodies as well as elevated levels of antibodies specific for one or more other respiratory
pathogens, as well as methods of making and using the compositions. Our proprietary methods allow us to effectively identify and
isolate donor plasma with high-titer RSV neutralizing antibodies and to standardize RI-002&rsquo;s antibody profile, which we believe
may enable us to garner a premium price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the third quarter of 2017, U.S. Pat. App. Serial No.
14/790,872, entitled &lsquo;Compositions and Methods for the Treatment of Immunodeficiency&rsquo;, encompassing immunotherapeutic
methods of using immune globulin compositions proprietary to ADMA, was allowed and issued July 25, 2017 as U.S. Patent No. 9,714,283.
The &lsquo;283 patent has a term at least through January 2035.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We also rely on a combination of patents, trade secrets and
nondisclosure and non-competition agreements to protect our proprietary intellectual property and will continue to do so. We also
seek to enhance and ensure our competitive position through a variety of means, including our unique and proprietary plasma donor
selection criteria, our proprietary formulation methodology for plasma pooling and the proprietary reagents, controls, testing
standards, standard operating procedures and methods we use in our anti-RSV microneutralization assay. While we intend to defend
against threats to our intellectual property, litigation can be costly and there can be no assurance that our patent will be enforced
or that our trade secret policies and practices or other agreements will adequately protect our intellectual property. We seek
to preserve the integrity and confidentiality of our data and trade secrets by maintaining physical security of our premises and
physical and electronic security of our information technology systems. These processes, systems, and/or security measures may
be breached, and we may not have adequate remedies as a result of any such breaches. Third parties may also own or could obtain
patents that may require us to negotiate licenses to conduct our business, and there can be no assurance that the required licenses
would be available on reasonable terms or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, our trade secrets may otherwise become known or
be independently discovered by competitors. We also seek to protect our proprietary technology and processes, in part, by confidentiality
agreements with our employees, consultants, scientific advisors and contractors. Although we rely, in part, on confidentiality,
nondisclosure and non-competition agreements with employees, consultants and other parties with access to our proprietary information
to protect our trade secrets, proprietary technology, processes and other proprietary rights, there can be no assurance that these
agreements or any other security measures related to such trade secrets, proprietary technology, processes and proprietary rights
will be adequate, will not be breached, that we will have adequate remedies for any breach, that others will not independently
develop substantially equivalent proprietary information or that third parties will not otherwise gain access to our trade secrets
or proprietary knowledge. To the extent that our consultants, contractors or collaborators use intellectual property owned by others
in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. We have filed for other
provisional patent applications with the U.S. which are pending related to expanded hyperimmune globulin products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Government Regulation and Product Approval</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The FDA and comparable regulatory agencies in state and local
jurisdictions and in foreign countries impose substantial requirements upon the testing (preclinical and clinical), manufacturing,
labeling, storage, recordkeeping, advertising, promotion, import, export, marketing and distribution, among other things, of products
and product candidates. If we do not comply with applicable requirements, we may be fined, the government may refuse to approve
our marketing applications or allow us to manufacture or market our products, and we may be criminally prosecuted. We and our manufacturers
may also be subject to regulations under other federal, state, and local laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>U.S. Government Regulation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the U.S., the FDA regulates products under the Federal Food,
Drug, and Cosmetic Act (the &ldquo;FDCA&rdquo;) and related regulations. Our current and anticipated future product candidates
are considered &ldquo;biologics&rdquo; under the FDA regulatory framework. The FDA's regulatory authority for the approval of biologics
resides in the Public Health Service Act. However, biologics are also subject to regulation under the FDCA because most biological
products also meet the FDCA&rsquo;s definition of &quot;drugs.&quot; Most pharmaceuticals or &ldquo;conventional drugs&rdquo; consist
of pure chemical substances and their structures are known. Most biologics, however, are complex mixtures that are not easily identified
or characterized. Biological products differ from conventional drugs in that they tend to be heat-sensitive and susceptible to
microbial contamination. This requires sterile processes to be applied from initial manufacturing steps. The process required by
the FDA before our product candidates may be marketed in the U.S. generally involves the following (although the FDA is given wide
discretion to impose different or more stringent requirements on a case-by-case basis):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">completion of extensive preclinical laboratory tests, preclinical
animal studies and formulation studies performed in accordance with the FDA&rsquo;s good laboratory practice regulations and other
regulations;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">submission to the FDA of an IND application which must become effective
before clinical trials may begin;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">performance of adequate and well-controlled clinical trials meeting
FDA requirements to establish the safety and efficacy of the product candidate for each proposed indication;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">manufacturing (through an FDA-licensed contract manufacturing organization)
of product in accordance with cGMP to be used in the clinical trials and providing manufacturing information need in regulatory
filings;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">submission of a BLA to the FDA;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">satisfactory completion of an FDA pre-approval inspection of the manufacturing
facilities at which the product candidate is produced, and potentially other involved facilities as well, to assess compliance
with cGMP regulations and other applicable regulations; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the FDA review and approval of a BLA prior to any commercial marketing,
sale or shipment of the product.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The testing and approval process requires substantial time,
effort and financial resources, and we cannot be certain that any approvals for our product candidates will be granted on a timely
basis, if at all. See &ldquo;Risk Factors&rdquo; beginning on page 9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We submit manufacturing and analytical data, among other information,
to the FDA as part of an IND application. Subject to certain exceptions, an IND becomes effective 30 days after receipt by the
FDA, unless the FDA, within the 30-day time period, issues a clinical hold to delay a proposed clinical investigation due to concerns
or questions about the product or the conduct of the clinical trial, including concerns that human research subjects will be exposed
to unreasonable health risks. In such a case, the IND sponsor and the FDA must resolve any outstanding concerns before the clinical
trial can begin. Our submission of an IND, or those of our collaboration partners, may not result in the FDA allowance to commence
a clinical trial. A separate submission to an existing IND must also be made for each successive clinical trial conducted during
product development. The FDA must also approve certain changes to an existing IND, such as certain manufacturing changes. Further,
an independent institutional review board (&ldquo;IRB&rdquo;) duly constituted to meet FDA requirements for each medical center
proposing to conduct the clinical trial must review and approve the plan for any clinical trial before it commences at that center
and it must monitor the safety of the study and study subjects until completed. The FDA, the IRB or the sponsor may suspend a clinical
trial at any time on various grounds, including a finding that the subjects or patients are being exposed to an unacceptable health
risk. Clinical testing also must satisfy extensive Good Clinical Practice requirements and regulations for informed consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Clinical Trials</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of BLA submission and approval, clinical trials
are typically conducted in the following three sequential phases, which may overlap (although additional or different trials may
be required by the FDA as well):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Phase I clinical trials are initially conducted in
a limited population to test the product candidate for safety, dose tolerance, absorption, metabolism, distribution and excretion
in healthy humans or, on occasion, in patients, such as cancer patients.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Phase II clinical trials are generally conducted
in a limited patient population to identify possible adverse effects and safety risks, to determine the efficacy of the product
candidate for specific targeted indications and to determine tolerance and optimal dosage. Multiple Phase II clinical trials may
be conducted by the sponsor to obtain information prior to beginning larger and more expensive Phase III clinical trials.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain Phase III clinical trials are referred to
as pivotal trials. When Phase II clinical trials demonstrate that a dose range of the product candidate is effective and has an
acceptable safety profile, Phase III clinical trials are undertaken in large patient populations to provide substantial evidence
of reproducibility of clinical efficacy results and to further test for safety in an expanded and diverse patient population at
multiple, geographically dispersed clinical trial sites.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, under the Pediatric Research Equity Act of 2003,
a BLA application or supplement for a new active ingredient, new indication, new dosage form, new dosing regimen, or new route
of administration must contain data that is adequate to assess the safety and effectiveness of the drug for the claimed indications
in all relevant pediatric subpopulations, and to support dosing and administration for each pediatric subpopulation for which the
product is safe and effective, unless the applicant has obtained a waiver or deferral. In 2012, the Food and Drug Administration
Safety and Innovation Act amended the FDCA to require that a sponsor who is planning to submit such an application submit an initial
Pediatric Study Plan (&ldquo;PSP&rdquo;) within sixty days of an end-of-phase 2 meeting or as may be agreed between the sponsor
and the FDA. The FDA may, on its own initiative or at the request of the applicant, grant deferrals for submission of data or full
or partial waivers. The FDA and the sponsor must reach agreement on the PSP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In some cases, the FDA may condition continued approval of a
BLA on the sponsor&rsquo;s agreement to conduct additional clinical trials, or other commitments. Such post-approval studies are
typically referred to as Phase IV studies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Biological License Application</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The results of product candidate development, preclinical testing
and clinical trials, together with, among other things, detailed information on the manufacture and composition of the product
and proposed labeling, and the payment of a user fee, are submitted to the FDA as part of a BLA. The FDA reviews all BLAs submitted
before it accepts them for filing and may reject the filing as inadequate to merit review or may request additional information
to be submitted in a very short time frame before accepting a BLA for filing. Once a BLA is accepted for filing, the FDA begins
an in-depth review of the application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During its review of a BLA, the FDA may refer the application
to an advisory committee of experts for their review, evaluation and recommendation as to whether the application should be approved,
which information is taken into consideration along with the FDA&rsquo;s own review findings. The FDA may refuse to approve a BLA
and issue a CRL if the applicable regulatory criteria are not satisfied. A CRL may also require additional clinical or other data,
including one or more additional pivotal Phase III clinical trials. Even if such requested data are submitted, the FDA may ultimately
decide that the BLA does not satisfy the criteria for approval and issue a denial of the BLA. Data from clinical trials are not
always conclusive and the FDA may interpret data differently than we do. If the FDA&rsquo;s evaluations of the BLA and the clinical
and manufacturing procedures and facilities are favorable, the FDA may issue an approval letter or a CRL, which contains the conditions
that must be met in order to secure final approval of the BLA. If a CRL is issued, a company has up to twelve months to resubmit
or withdraw the BLA, unless the FDA allows for an extension, of which ADMA has requested. If a CRL is issued, if and when those
items have been resolved to the FDA&rsquo;s satisfaction, the FDA will issue an approval letter, authorizing commercial marketing
of the product for certain indications. The FDA may withdraw product approval if ongoing regulatory requirements are not met or
if safety problems occur after the product reaches the market. In addition, the FDA may require testing, including Phase IV clinical
trials, and surveillance programs to monitor the effect of approved products that have been commercialized, and the FDA has the
power to prevent or limit further marketing of a product based on the results of these post-marketing programs. Products may be
marketed only for the FDA-approved indications and in accordance with the FDA-approved label. The FDA generally does not allow
drugs to be promoted for &ldquo;off-label&rdquo; uses &ndash; that is, uses that are not described in the product&rsquo;s approved
labeling and that differ from those that were approved by the FDA. Furthermore, the FDA generally limits approved uses to those
studied in clinical trials. If there are any modifications to the product, including changes in indications, other labeling changes,
or manufacturing processes or facilities, we may be required to submit and obtain FDA approval of a new BLA or BLA supplement,
which may require us to develop additional data or conduct additional preclinical studies and clinical trials, and/or require additional
manufacturing data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Satisfaction of the FDA regulations and approval requirements
or similar requirements of foreign regulatory agencies typically takes several years, and the actual time required may vary substantially
based upon the type, complexity and novelty of the product or disease. Typically, if a product candidate is intended to treat a
chronic disease, as is the case with RI-002, safety and efficacy data must be gathered over an extended period of time. Government
regulation may delay or prevent marketing of product candidates for a considerable period of time and impose costly procedures
upon our activities. The FDA or any other regulatory agency may not grant approvals for changes in dose form or new indications
for a product candidate on a timely basis, or at all. Even if a product candidate receives regulatory approval, the approval may
be significantly limited to specific disease states, patient populations and dosages. Further, even after regulatory approval is
obtained, later discovery of previously unknown problems with a product may result in restrictions on the product or even complete
withdrawal of the product from the market. Delays in obtaining, or failures to obtain, regulatory approvals for any of our product
candidates would harm our business. In addition, we cannot predict what adverse governmental regulations may arise from future
U.S. or foreign governmental action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon the resubmission of a BLA application, the FDA will classify
the resubmission as Class 1 (triggering a 2-month review goal for the FDA) or Class 2 (triggering a 6-month review goal for the
FDA).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Other Regulatory Requirements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Biological drug products manufactured or distributed pursuant
to FDA approvals are subject to extensive and continuing regulation by the FDA, including, among other things, requirements related
to recordkeeping (including certain electronic record and signature requirements), periodic reporting, product sampling and distribution,
advertising and promotion and reporting of certain adverse experiences, deviations, and other problems with the product. After
approval, most changes to the approved product, such as adding new indications or other labeling claims, are subject to prior FDA
review and approval. There also are annual user fee requirements for any marketed products and the establishments at which such
products are manufactured, as well as new application fees for supplemental applications with clinical data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Manufacturers must continue to comply with cGMP requirements,
which are extensive and require considerable time, resources and ongoing investment to ensure compliance. In addition, changes
to the manufacturing process generally require prior FDA approval before being implemented and other types of changes to the approved
product, such as adding new indications and additional labeling claims, are also subject to further FDA review and approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Manufacturers and certain other entities involved in the manufacturing
and distribution of approved products are required to register their establishments with the FDA and certain state agencies, and
are subject to periodic unannounced inspections by the FDA and certain state agencies for compliance with cGMP and other laws.
The cGMP requirements apply to all stages of the manufacturing process, including the production, processing, sterilization, packaging,
labeling, storage and shipment of the product. Manufacturers must establish validated systems to ensure that products meet specifications
and regulatory standards, and test each product batch or lot prior to its release. For biologics products in particular, for each
product lot the applicant must submit materials related to that lot to the FDA before the lot can be released for distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Changes to the manufacturing process are strictly regulated
and often require prior FDA approval before being implemented. FDA regulations also require investigation and correction of any
deviations from cGMP and impose reporting and documentation requirements upon the sponsor and any third-party manufacturers that
the sponsor may decide to use. Accordingly, manufacturers must continue to expend time, money, and effort in the area of production
and quality control to maintain cGMP compliance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The FDA may impose a number of post-approval requirements as
a condition of approval of an application. The FDA may withdraw a product approval if compliance with regulatory requirements is
not maintained or if problems occur after the product reaches the market. Later discovery of previously unknown problems with a
product, including adverse events of unanticipated severity or frequency, problems with manufacturing processes or failure to comply
with regulatory requirements, may result in restrictions on the product or even complete withdrawal of the product from the market.
Failure to comply with the statutory and regulatory requirements can subject a manufacturer to possible legal or regulatory action,
such as warning letters, suspension of manufacturing, sales or use, seizure of product, injunctive action or possible fines and
other penalties. We cannot be certain that we or our present or future third-party manufacturers or suppliers will be able to comply
with the cGMP regulations and other ongoing FDA regulatory requirements. If we or our present or future third-party manufacturers
or suppliers are not able to comply with these requirements, the FDA may halt our clinical trials, require us to recall a product
from distribution, or withdraw approval of our BLA for that product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The FDA closely regulates the post-approval marketing and promotion
of products, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored scientific
and educational activities and promotional activities involving the Internet. A company can make only those claims relating to
safety and efficacy that are approved by the FDA. Failure to comply with these requirements can result in adverse publicity, warning
and/or other regulatory letters, corrective advertising and potential major fines and other penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the distribution of prescription drug products
(including biological drug products) is subject to the Prescription Drug Marketing Act (the &ldquo;PDMA&rdquo;), which regulates
the distribution of drugs and drug samples at the federal level, and sets minimum standards for the registration and regulation
of drug distributors by the states. Both the PDMA and state laws limit the distribution of prescription product samples and impose
requirements to ensure accountability in distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From time to time, legislation is drafted, introduced and passed
in Congress that could significantly change the statutory provisions governing the approval, manufacturing and marketing of products
regulated by the FDA. In addition to new legislation, FDA regulations, guidance, and policies are often revised or reinterpreted
by the agency in ways that may significantly affect our business and our product candidates. It is impossible to predict whether
further legislative or FDA regulation or policy changes will be enacted or implemented and what the impact of such changes, if
any, may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Regulation of ADMA BioCenters </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All blood and blood product collection and manufacturing centers
which engage in interstate commerce must be licensed by the FDA. In order to achieve licensure, the organization must submit a
BLA and undergo pre-licensure inspection. Our wholly-owned subsidiary, ADMA BioCenters, has completed these requirements and holds
FDA licenses, along with GHA and KMFDS certifications, for its Norcross and Marietta facilities. In order to maintain these licenses,
the facilities operated by ADMA BioCenters will be inspected at least every two years. ADMA BioCenters is also required to submit
annual reports to the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Blood plasma collection and manufacturing centers are also subject
to the Clinical Laboratory Improvement Amendments, or CLIA, state licensure and compliance with industry standards such as the
International Quality Plasma Program. Compliance with state and industry standards is verified by means of routine inspection.
We believe that both of our ADMA BioCenters facilities are currently in compliance with state and industry standards. Delays in
obtaining, or failures to maintain, regulatory approvals for any facilities operated by ADMA BioCenters would harm our business.
In addition, we cannot predict what adverse federal and state regulations and industry standards may arise in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Foreign Regulation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to regulations in the U.S., if we choose to pursue
clinical development and commercialization in the European Union, we will be subject to a variety of foreign regulations governing
clinical trials and commercial sales and distribution of any future product. Whether or not we obtain FDA approval for a product,
we must obtain approval of a product by the comparable regulatory authorities of foreign countries before we can commence clinical
trials or marketing of the product in those countries. The approval process varies from country to country, and the time may be
longer or shorter than that required for FDA approval. The requirements governing the conduct of clinical trials, product licensing,
pricing and reimbursement vary greatly from country to country.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under European Union regulatory systems, marketing authorizations
may be submitted either under a centralized or mutual recognition procedure. The centralized procedure provides for the grant of
a single marketing authorization that is valid for all European Union member states. The mutual recognition procedure provides
for mutual recognition of national approval decisions. Under this procedure, the holder of a national marketing authorization may
submit an application to the remaining member states. Within 90 days of receiving the applications and assessment report, each
member state must decide whether to recognize approval, refuse it or request additional information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Product Coverage, Pricing and Reimbursement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Significant uncertainty exists as to the coverage and reimbursement
status of any products for which we may obtain regulatory approval. In the U.S., sales of any products for which we may receive
regulatory approval for commercial sale will depend in part on the availability of coverage and reimbursement from third-party
payers. Third-party payers include government authorities, managed care providers, private health insurers and other organizations.
The process for determining whether a payer will provide coverage for a drug product may be separate from the process for setting
the reimbursement rate that the payer will pay for the drug product. Third-party payers may limit coverage to specific drug products
on an approved list, or formulary, which might not include all of the FDA-approved drugs for a particular indication. Moreover,
a payer&rsquo;s decision to provide coverage for a drug product does not imply that an adequate reimbursement rate will be approved.
Adequate third-party reimbursement may not be available to enable us to maintain price levels sufficient to realize an appropriate
return on our investment in product development.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Third-party payers are increasingly challenging the price and
examining the medical necessity and cost-effectiveness of medical products and services, in addition to their safety and efficacy.
In order to obtain coverage and reimbursement for any product that might be approved for sale, we may need to conduct expensive
pharmacoeconomic studies in order to demonstrate the medical necessity and cost-effectiveness of any products, in addition to the
costs required to obtain regulatory approvals. Our product candidates may not be considered medically necessary or cost-effective.
If third-party payers do not consider a product to be cost-effective compared to other available therapies, they may not cover
the product after approval as a benefit under their plans or, if they do, the level of payment may not be sufficient to allow a
company to sell its products at a profit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The U.S. government and state legislatures have shown significant
interest in implementing cost containment programs to limit the growth of government-paid health care costs, including price controls,
restrictions on reimbursement and requirements for substitution of generic products for branded prescription drugs. For example,
the Healthcare Reform Law contains provisions that may reduce the profitability of drug products, including, for example, increased
rebates for drugs reimbursed by Medicaid programs, extension of Medicaid rebates to Medicaid managed care plans, mandatory discounts
for certain Medicare Part D beneficiaries and annual fees based on pharmaceutical companies&rsquo; share of sales to federal health
care programs. Adoption of government controls and measures, and tightening of restrictive policies in jurisdictions with existing
controls and measures, could limit payments for pharmaceuticals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The marketability of any products for which we receive regulatory
approval for commercial sale may suffer if the government and third-party payers fail to provide adequate coverage and reimbursement.
In addition, an increasing emphasis on cost containment measures in the U.S. has increased and we expect will continue to increase
the pressure on pharmaceutical pricing. Coverage policies and third-party reimbursement rates may change at any time. Even if favorable
coverage and reimbursement status is attained for one or more products for which we receive regulatory approval, less favorable
coverage policies and reimbursement rates may be implemented in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Research and Development</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA&rsquo;s expenditures on research and development were approximately
$7.7 million and $7.0 million for the fiscal years ended December 31, 2016 and 2015, respectively, and approximately $2.6 million
and $5.4 million for the six months ended June 30, 2017 and 2016, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our headquarters are located in approximately
4,200 square feet of space at 465 State Route 17, Ramsey, New Jersey. Our telephone number is (201) 478-5552. Currently we operate
under a shared services agreement with Areth, LLC (&ldquo;Areth&rdquo;) for the office, warehouse space and certain related services
and have the ability to cancel this agreement upon 30 days&rsquo; notice. Areth is a company controlled by Dr. Jerrold B. Grossman,
our Vice Chairman, and Adam S. Grossman, our President and Chief Executive Officer, and we pay Areth monthly fees for the use of
such office space and for other information technology, general warehousing and administrative services. Rent under the shared
services agreement is $16,000 per month. Effective October 1, 2017, rent under the Shared Services Agreement decreased to $10,000
per month.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ADMA BioCenters&rsquo; facilities are located
in the U.S. The combined facilities have a total of approximately 28,000 square feet of space for approximately $30,000 rent per
month. The Norcross, Georgia lease, the term of which was extended by five years on January 1, 2014 pursuant to the first of two
available five-year renewal options, expires on September 30, 2023, and the Marietta, Georgia lease expires on January 31, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 17, 2017, ADMA BioCenters entered
into a lease with Home Center Properties, LLC for approximately 12,167 square feet located in Kennesaw, Georgia. ADMA BioCenters
will utilize the premises as a facility specializing in the collection of human plasma and blood, general office administration
and any other related use. The lease has an initial term of approximately eight years and nine months, commencing on July 1, 2017,
with rent payments commencing on December 1, 2017. ADMA BioCenters&rsquo; total monthly cost of the premises will range from approximately
$20,000 to $27,000 during the initial term of the lease. Provided that the lease is in full force and effect and that there has
been no event of default beyond the expiration of any applicable notice and cure period, ADMA BioCenters has the option to extend
the term of the lease for two additional periods of five years each, each extension term on the same terms, covenants and conditions
as the lease, with the rent for each extension term to equal the mutually agreed fair market value of the premises on the commencement
of such extension term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, in connection with the Biotest Transaction,
we acquired the Boca Facility, an FDA-licensed and GHA-certified immune globulin manufacturing and plasma products production facility
consisting of two buildings of approximately 126,000 square feet located on approximately 15 acres of land in Boca Raton. In connection
with the acquisition of the Biotest Assets, the Company assumed two warehouse leases in Boca Raton for additional storage space
for raw materials, spare parts and other supplies related to its business. These leases expire on December 31, 2017 and July 31,
2018, respectively. The aggregate minimum lease payments for these two leases are approximately $9,000 per month.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, on January 1, 2019, pursuant to the terms of a
separate purchase agreement entered into between ADMA BioManufacturing and BPC at the closing, we agreed to sell, transfer and
convey to BPC for no additional consideration, all of our right, title and interest in and to our certain plasma collection facilities
located in the U.S., which are subject to a repurchase right in favor of us if within five years after January 1, 2019, the Biotest
stockholders and its related entities own less than 20% of our issued and outstanding capital stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is currently not involved, but may at times be involved
in various claims and legal actions arising in the ordinary course of our business. Regardless of the outcome, litigation can have
an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 30, 2017, ADMA Biologics, Inc., together with
its subsidiaries ADMA Plasma Biologics, Inc. (&ldquo;ADMA Plasma Biologics&rdquo;), ADMA BioCenters, Inc. and ADMA BioManufacturing,
has a total of 275 employees, including five part-time employees, as well as additional full and part-time consultants and temporary
staff. Over the course of the next year, we anticipate hiring additional full-time employees devoted to sales and marketing, medical
and scientific affairs, general and administrative, as well as hiring additional staff to the plasma collection centers as appropriate.
We intend to use Clinical Research Organizations, or CROs, third parties and consultants to perform our clinical studies and manufacturing,
regulatory affairs and quality control services in addition to corporate marketing, branding and commercialization activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Corporate Information </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ADMA Biologics, Inc. was founded on June
24, 2004 as a New Jersey corporation and re-incorporated in Delaware on July 16, 2007. We operate through our wholly-owned subsidiaries
ADMA Plasma Biologics, ADMA BioManufacturing and ADMA BioCenters. ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of BTBU. ADMA BioCenters is the Company&rsquo;s source plasma collection business which operates in the U.S. Each
operational ADMA BioCenter, once approved, will have a license with the FDA and may obtain additional certifications from other
regulatory agencies such as the GHA and the KMFDS. ADMA BioCenters supplies ADMA with a portion of its raw material plasma for
the manufacture of its products and product candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We maintain our headquarters at 465 State Route 17, Ramsey,
New Jersey 07446. Our telephone number is (201) 478-5552. Our Florida campus is located at 5800 Park of Commerce Boulevard, Northwest,
Boca Raton, Florida 33487. The Florida telephone number is (561) 989-5800. Our company maintains its website at www.admabiologics.com.
Information contained in, or accessible through any of our websites, does not constitute a part of this prospectus or any accompanying
prospectus supplement or related free writing prospectus.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="text-transform: uppercase"><B>Market PRICE OF AND
DIVIDENDS ON COMMON STOCK AND related stockholder matters</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Market Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our Common Stock has been listed on the Nasdaq Capital Market
under the symbol &ldquo;ADMA&rdquo; since November 10, 2014. Between October 17, 2013 and November 10, 2014, our Common Stock was
quoted on the OTC Bulletin Board (OTCBB) and the OTC Markets (OTCQB) under the same symbol.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table sets forth, for each of the calendar periods
indicated, the high and low sales prices for our Common Stock, as reported by Nasdaq:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 60%; border: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 20%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><B>High</B></TD>
    <TD STYLE="width: 20%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center"><B>Low</B></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid"><B>2015</B></TD>
    <TD STYLE="vertical-align: top; border-right: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-right: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">First quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$11.95</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$7.57</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Second quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$9.66</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$7.51</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Third quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$10.28</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$8.00</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Fourth quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$9.85</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$7.74</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid"><B>2016</B></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">First quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$8.28</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$4.15</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Second quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$8.85</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$5.71</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Third quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$8.00</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$5.00</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Fourth quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$7.34</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$4.34</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid"><B>2017</B></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">First Quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$5.79</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$4.44</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Second Quarter</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$5.44</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$2.93</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Third Quarter </TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$3.95</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$2.67</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid">Fourth Quarter (through October 6, 2017)</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$3.30</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">$3.04</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no established public trading market for shares of
our Non-Voting Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 6, 2017, the latest practicable date prior to
the filing of this registration statement, the closing price of our Common Stock on Nasdaq was $3.19.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of October 6, 2017, the latest practicable date prior to
the filing of this registration statement, there were seven record holders of our Common Stock, based upon information received
from our transfer agent. However, this number does not include beneficial owners whose shares were held of record by nominees or
broker dealers. We estimate that there are more than 1,000 beneficial owners of our Common Stock. As of October 11, 2017, there
was one record holder of our Non-Voting Common Stock, BPC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividend Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have never paid any cash dividends on our capital stock.
We anticipate that we will retain earnings, if any, to support operations and to finance the growth and development of our business.
In addition, the terms of our Credit Agreement with Marathon precludes us from paying cash dividends. Therefore, we do not expect
to pay cash dividends for the foreseeable future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>You should read the following discussion of our operating
and financial condition and prospects in conjunction with the financial statements and the notes thereto included elsewhere in
this prospectus. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute
to these differences include those discussed below and elsewhere in this prospectus.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Overview</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are a vertically integrated commercial biopharmaceutical
and specialty immunoglobulin company that manufactures, markets and develops specialty plasma-derived biologics for the treatment
of immune deficiencies and prevention of certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. We currently
have two marketed products: Nabi-HB, indicated for the treatment of acute exposure to blood containing HBsAg; and Bivigam, indicated
for the treatment of primary humoral immunodeficiency. We are also developing a pipeline of plasma-derived therapeutics, including
our lead pipeline product candidate, RI-002 for the treatment of PIDD. Our product candidates are intended to be used by physician
specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, we completed the acquisition of the Biotest
Assets of BTBU of BPC, which includes two FDA licensed products, Nabi-HB and Bivigam. Nabi-HB and Bivigam are manufactured at the
Boca Facility, an FDA-licensed facility certified by the GHA. In addition to Nabi-HB and Bivigam, we also provide contract manufacturing
for certain historical clients, including the sale of intermediate by-products. Immediately following the acquisition, the Biotest
Assets were contributed into our ADMA BioManufacturing subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Concurrent with the closing of the acquisition of the Biotest
Assets, the Company received $12.5 million in cash consideration in addition to a $15.0 million subordinated note from Biotest
at 6% interest payable to BPC with a maturity of five years, and Biotest committed to participate in any future equity offering
or private placement undertaken by the Company in an amount equal to up to $12.5 million on a pro-rata basis, which will be invested
as part of this Offering. At the closing of the Biotest Transaction, the Company delivered to BPC the Biotest Equity Interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We anticipate that our principal sources of liquidity, along
with the proceeds from this Offering, which includes the equity commitment from Biotest, will only be sufficient to fund our activities
as currently conducted into the second half of 2018. In order to have sufficient cash to fund our operations thereafter and to
continue as a going concern, we will need to raise additional equity or debt financing during the second half of 2018. This time
frame may change based upon how quickly we are able to execute on our quality management systems&rsquo; remediation plans for the
ADMA BioManufacturing operations, commercial manufacturing ramp-up activities and the various financing options we are exploring.
In order to have sufficient cash to fund our operations thereafter, we will need to raise additional equity or debt capital, and
we cannot provide any assurance that we will be successful in doing so. If our assumptions underlying our estimated expenses prove
to be wrong, we may have to raise additional capital sooner than the end of the second quarter of 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Marketed Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Nabi-HB</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nabi-HB&nbsp;is a hyperimmune globulin that is rich in antibodies
to the Hepatitis B virus. Nabi-HB is a purified human polyclonal antibody product collected from plasma donors who have been previously
vaccinated with a Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing Hepatitis B
surface antigen (&ldquo;HBsAg&rdquo;), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive
persons and household exposure to persons with acute Hepatitis B virus infection. Hepatitis B is a potentially life-threatening
liver infection caused by the Hepatitis B virus. It is a major global health problem. It can cause chronic infection and puts people
at high risk of death from cirrhosis and liver cancer. Nabi-HB&nbsp;has a well-documented record of long-term safety and effectiveness
since its initial market introduction. FDA approval for Nabi-HB was received on March 24, 1999. Biotest acquired Nabi-HB from Nabi
Biopharmaceuticals in 2007.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Bivigam</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Bivigam is an intravenous immune globulin indicated for the
treatment of primary humoral immunodeficiency. This includes, but is not limited to, agammaglobulinemia, common variable immunodeficiency,
Wiskott-Aldrich syndrome and severe combined immunodeficiency. These primary immunodeficiencies (&ldquo;PIs&rdquo;) are a group
of genetic disorders. Initially thought to be very rare, it is now believed that as many as one in every 1,200-2,000 people has
some form of PI. Bivigam contains a broad range of antibodies similar to those found in normal human plasma. These antibodies are
directed against bacteria and viruses, and help to protect PI patients against serious infections. Bivigam is a purified, sterile,
ready-to-use preparation of concentrated IgG antibodies. Antibodies are proteins in the human immune system that work to defend
against disease. FDA approval for Bivigam was received on December 19, 2012, and sales commenced in the first quarter of 2013.
In December 2016, BPC temporarily suspended the commercial production of Bivigam in order to focus on the completion of planned
improvements to the manufacturing process.&nbsp;Although we expect to resume production in the fourth quarter of 2017, Bivigam
is not expected to be available for sale throughout the remainder of 2017 and FDA clearance for relaunch is expected to occur by
mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Our Lead Pipeline Product Candidate &ndash; RI-002</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are currently developing our lead pipeline product candidate,
RI-002, for the treatment of PIDD, and have completed a pivotal Phase III clinical trial, which met the primary endpoint of no
SBIs reported. Secondary efficacy endpoints further demonstrated the benefits of RI-002 in the low incidence of infection, therapeutic
antibiotic use, days missed from work/school/daycare, and unscheduled medical visits and hospitalizations. RI-002 is derived from
human plasma blended from normal donors and from donors tested to have high levels of neutralizing titers to RSV. RI-002 is manufactured
using a process called fractionation, which purifies IgG from this blended plasma pool resulting in a final IVIG product enriched
with naturally occurring polyclonal anti-pathogen antibodies (e.g., streptococcus pneumonia, H. influenza type B, CMV, measles,
tetanus). We use our proprietary RSV microneutralization assay to test for standardized levels of neutralizing antibodies to RSV
in the final drug product.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment
of PIDD. In July 2016, the FDA issued the CRL. The CRL reaffirmed the issues set forth in the Warning Letter that had been issued
to Biotest related to certain issues identified at the Boca Facility, but did not cite any concerns with the clinical safety or
efficacy data for RI-002 submitted in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA
approval of RI-002. The FDA identified in the CRL, among other things, certain outstanding inspection issues and deficiencies related
to CMC and GMP at the Boca Facility and at certain of our third-party vendors, and requested documentation of corrections for a
number of these issues. The FDA indicated in the CRL that it cannot grant final approval of our BLA until, among other things,
these deficiencies are resolved. Following the completion of the Biotest Transaction, we now have control over the regulatory,
quality, general operations and drug substance manufacturing process and our highest priority is to remediate the outstanding compliance
issues that were identified at the Boca Facility in the Warning Letter, and we plan to be inspection-ready for the FDA by the end
of 2017. We are currently working with a consulting firm consisting of quality management systems and biologics production subject
matter experts in preparation for a re-inspection by the FDA in order to downgrade the FDA inspection classification relative to
the Warning Letter compliance issues as indicated in the CRL. Following downgrading of the FDA inspection classification, we anticipate
that we will be in a position to refile our BLA for RI-002 in mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Evaluation of RI-002 in PIDD Patients</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PIDD, a genetic disorder that causes a deficient or absent immune
system, is caused by hereditary or genetic defects and can affect anyone regardless of age or gender. PIDD patients are more vulnerable
to infections and more likely to suffer complications from these infections. IVIG is a plasma derived product that is used to prevent
serious infections in patients with PIDD. It is comprised of polyclonal antibodies, which are proteins produced by B-cells that
are used by the body&rsquo;s immune system to neutralize foreign objects such as bacteria and viruses. It is estimated that there
are about 250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. In the U.S.,
sales of immune globulin products for all its uses were reported to be approximately $4.8 billion in 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The RI-002 pivotal Phase III clinical trial was conducted as
a single arm study in which patients were treated approximately once per month for a period of 12 months plus 90 days for follow
up. Fifty-nine patients were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of serious infections to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic, or PK, data collection points including
antibody titers for certain agents, including RSV antibody levels at various time points after infusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RI-002 demonstrated positive results in the Phase III study
in patients with PIDD, meeting its primary endpoint, of no SBIs reported. Secondary efficacy endpoints further demonstrated the
benefits of RI-002 in the low incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare, and unscheduled
medical visits and hospitalizations. RI-002 was administered in a total of 793 infusions with zero serious adverse events to 59
patients in nine treatment centers throughout the U.S. These results, included in our BLA, more than meet the requirement specified
by FDA guidance of &le; 1 SBI per patient-year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February 22, 2015, at the 2015 American Academy of Allergy,
Asthma &amp; Immunology Annual Meeting, scientific investigators reported on the secondary outcomes that included: a total of 93
days, or 1.66 days per patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and IgG trough levels above those required by the FDA for IVIG products. Additionally, there
was a marked increase in all of the measured specific anti-pathogen antibodies in PK subjects (n=31). The mean of maximum fold
increases in specific antibody levels after infusion of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV),
which were statistically significant fold increases from the pathogen's specific measured baselines. The safety profile of RI-002
is comparable to that of other immunoglobulins.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Rationale for the Potential Evaluation of RI-002 in RSV
Infected Patients</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">RSV is a common virus that ordinarily leads to mild, cold-like
symptoms in healthy adults and children. In high-risk groups, such as the PIDD population and the other immune-compromised populations,
RSV can lead to a more serious infection and may even cause death. The polyclonal antibodies which are present in RI-002 are expected
to prevent infections in immune-compromised patients.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We previously conducted a randomized, double-blind, placebo-controlled
Phase II clinical trial to evaluate RI-001, RI-002&rsquo;s predecessor product candidate, in immune-compromised, RSV-infected patients.
This trial was conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial demonstrated
a statistically significant improvement in the change from baseline RSV titers to day 18 in the high dose and low dose treatment
groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The mean fold increase for high dose was 9.24 (95% CI
4.07, 21.02) and the observed mean fold increase for low dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated
patients was 1.42 (95% CI 0.64, 3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced
greater than a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no serious drug-related
adverse events reported during the trial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">From April 2009 through February 2011, RI-001 was also administered
to 15 compassionate use patients where physicians requested access to the product for treating their patients with documented lower
respiratory tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum samples
were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in RSV antibody titers from
baseline. Serum samples were not obtained from two patients that received Palivizumab. All 11 surviving patients received RI-001
within an average of 4.4 days after the onset of the diagnosis of RSV. The drug was well-tolerated in all 15 patients and there
were no reports of serious adverse events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience
and data obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various conferences
the past several years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Based on these results, we intend to evaluate RI-002 for the
treatment of RSV patients following FDA approval, if received, for treatment of PIDD.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Manufacturing and
Supply of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">In order to produce plasma-derived
immunoglobulin products, raw material plasma is collected from human donors and then manufactured into specialized products. Historically,
plasma for our products and product candidates has been collected from healthy donors at FDA-licensed plasma donation centers.
Source plasma is collected at any one of over 400 FDA-licensed donation centers located throughout the U.S., using a process called
automated plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular components
in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is tested and must be negative for
antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg and HCV, using FDA-licensed serological test procedures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">After receipt of the source
plasma, the frozen plasma is thawed and pooled and goes through a process called &ldquo;fractionation.&rdquo; This process is referred
to as the Cohn method or cold ethanol method of fractionation. During cold ethanol fractionation, classes of proteins are precipitated
and removed by centrifugation or filtration. The fractionation process includes the following steps; precipitation and absorption,
depth filtration, centrifugation and chromatography. Because of the human origin of the raw material and the thousands of donations
required in the fractionation process, the major risk associated to plasma products is the transmission of blood-borne infectious
pathogens. These purification processes have the potential to reduce the viral load. The manufacturing process also utilizes a
multistep viral removal/inactivation system, which further increases the safety of the products. The following manufacturing processes
have been validated for their capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment, and nanofiltration. Incorporation of these processes in the manufacturing process ensures that the Company&rsquo;s products
comply with the requirements of the FDA and are safe and efficacious.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Sales and Commercialization
of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">Historically, Nabi-HB
has been sold through independent distributors, drug wholesalers acting as sales agents, specialty pharmacies and other alternate
site providers. In the U.S., third-party drug wholesalers ship a significant portion of Nabi-HB through their distribution centers.
These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods
include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing
systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">While we are working towards remediating the Warning Letter
and other CMC and GMP inspection deficiencies and eventually refiling our BLA resubmission for RI-002, we expect to continue our
commercialization efforts for our approved products and plan to bolster these initiatives by hiring a small, specialty sales force
to market Nabi-HB, Bivigam upon its relaunch and, upon approval by the FDA, RI-002 to hospitals, physician offices/clinics, and
other specialty treatment organizations. We also anticipate staffing our company with additional personnel for patient support,
medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. If and when we receive FDA approval, we may also use a network of national
distributors to assist with order fulfillment for RI-002 for use by healthcare professionals and hospitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Pharmaceutical Pricing
and Reimbursement of </I></B></FONT><B><I>Our Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">All sales of Nabi-HB and
Bivigam in the U.S. depend in part upon the availability of reimbursement from third-party payers. Third-party payers include government
health programs, managed care providers, private health insurers and other organizations. Nabi-HB and Bivigam are reimbursed or
purchased under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health Service program
and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a joint state and federal government
health plan that provides covered outpatient prescription drugs for low-income individuals. Under Medicaid, drug manufacturers
pay rebates to the states based on utilization data provided by the states.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Plasma Collection Facilities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our wholly-owned subsidiary, ADMA BioCenters, operates FDA-licensed,
GHA, and KMFDS, certified source plasma collection facilities located in the U.S., which provide us with a portion of our blood
plasma for the manufacture of our products and product candidates. A typical plasma collection center, such as those operated by
ADMA BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices
depending upon the type of plasma, quantity of purchase, and market conditions at the time of sale. Plasma collected from ADMA
BioCenters' facilities that is not used to manufacture our products or product candidates is sold to third-party customers in the
U.S., and other locations where we are approved globally under supply agreements or in the open &quot;spot&quot; market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial Operations Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Revenues</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenues for the three and six months ended June 30, 2017 are
comprised of Nabi-HB product revenues, product revenues from the sale of normal source human plasma collected from our plasma collection
centers segment and license and other revenues which are initially recorded as deferred revenue and amortized into income over
the terms of the respective agreements. In exchange for the out-licensing of RI-002 to market and sell in Europe and selected countries
in North Africa and the Middle East, Biotest has provided us with certain services and a financial payment received in accordance
with the related license agreement and is obligated to pay us certain amounts in the future if certain milestones are achieved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Historically, a significant amount of our total revenue is attributable
to a single customer, BPC. For the six months ended June 30, 2017, two of our customers, SK and BPC, represented approximately
90% of our total revenue, with BPC representing 75% of our total revenue and SK representing 15% of our total revenue. Product
revenues from the sale of human plasma collected at our FDA-licensed plasma collection centers are recognized at the time of transfer
of title and risk of loss to the customer, which occurs, depending on the agreement with the customer, at the time of shipment
or at the time of delivery if we retain the risk of loss during shipment. Revenue from license fees and research and development
services rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been
completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cost of Product Revenue</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of product revenue includes manufacturing salaries and
wages, indirect overhead charges and consulting fees associated with remediating the Warning Letter with the FDA, which are expensed
as incurred. As the Boca Facility has not yet resumed production, all operating expenses associated with the facility have been
expensed as incurred since acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Research and Development Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and development (&ldquo;R&amp;D&rdquo;) expenses consist
of clinical research organization costs, costs related to our clinical trials, consulting expenses relating to regulatory and medical
affairs, quality assurance and control, assay development, ongoing testing costs, drug product manufacturing including the cost
of plasma, plasma storage and transportation costs, as well as wages, benefits and stock-based compensation for employees directly
related to the R&amp;D of RI-002. All R&amp;D costs are expensed as incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The process of conducting preclinical studies, clinical trials
and regulatory activities necessary to obtain FDA approval is costly and time consuming. The probability of success for each product
candidate and clinical trial may be affected by a variety of factors, including, among others, the quality of the product candidate&rsquo;s
early clinical data, investment in the program, competition, regulatory, manufacturing capabilities and commercial viability. As
a result of the uncertainties discussed above, the uncertainties associated with clinical trial enrollments and the risks inherent
in the development process, we are unable to determine the duration and completion costs of current or future clinical stages of
our product candidates or when, or to what extent, we will generate revenues from the commercialization and sale of any of our
product candidates. Development timelines, probability of success and development costs vary widely. For the six months ended June
30, 2017, R&amp;D expenses decreased as compared to the six months ended June 30, 2016 due to lower validation, testing and production
costs related to RI-002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the approval of our BLA for Bivigam on December
19, 2012, BTBU committed to perform two additional post-marketing studies. The first is a pediatric study to evaluate the efficacy
and safety of Bivigam in children and adolescents, and the second is a post-authorization safety study to further assess the potential
risk of hypotension and hepatic and renal impairment in Bivigam-treated patients with Primary Humoral Immunodeficiency. These studies
are pending completion, and the costs of the studies will be expensed as they are incurred. We currently expect both studies to
be completed by the end of 2021. However, the timing of the completion of these studies is dependent upon the availability of Bivigam
and the completion of the planned manufacturing process improvements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Selling, General and Administrative Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Selling, general and administrative (&ldquo;SG&amp;A&rdquo;)
expenses consist of costs related to the Biotest Transaction, wages, salaries, stock-based compensation and benefits for senior
management and staff unrelated to R&amp;D, legal fees, accounting and auditing fees, commercialization and marketing activities,
information technology, investor relations fees, rent, maintenance and utilities, insurance, travel and other expenses related
to the general operations of our business. For the three and six months ended June 30, 2017, SG&amp;A expenses primarily increased
as a result of expenses incurred in connection with the Biotest Transaction, including fees paid for legal, accounting, and financial
advisory fees related to the issuance of a fairness opinion and due diligence fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Other Income and Expense</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Interest income consists of interest earned on our cash and
cash equivalents and short-term investments. Interest expense consists of interest incurred on our notes payable and term loan,
as well as the amortization of end of term fees, back end fees, value of warrants issued, facility and financing fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Results of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Six Months Ended June 30, 2017
Compared to Six Months Ended June 30, 2016</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Summary table</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table presents a summary
of the changes in our results of operations for the six months ended June 30, 2017 compared to the six months ended June 30, 2016:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Percentage Increase/</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center"> (Decrease)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%">Revenues</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">6,028,272</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">4,395,630</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">37</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Cost of product revenue (exclusive of amortization expense shown below)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">5,950,306</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,610,662</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77,966</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,784,968</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-96</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,551,136</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,427,601</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-53</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Plasma center operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,079,646</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,574,720</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Amortization of intangibles</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NM</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Selling, general and administrative expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,713,034</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,432,033</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,338,871</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,649,386</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Other expense, net</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,234,587</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(975,418</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(15,573,458</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(10,624,804</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>






<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: Red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Revenues</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We recorded total revenues of $6,028,272 during the six months
ended June 30, 2017 compared to $4,395,630 during the six months ended June 30, 2016. Total revenues include sales of: (i) Nabi-HB
in the amount of $539,223 for 2017, net of chargebacks and discounts, with no comparable amount in 2016, (ii) product revenue of
$5,417,632 for the six months ended June 30, 2017&nbsp;attributable to our ADMA BioCenters plasma collection centers segment, compared
to product revenue of $4,324,213 for the six months ended June 30, 2016, and (iii) license and other revenue in the amount of $71,417
for each of the six months ended June 30, 2017 and 2016 in accordance with our license agreement with Biotest. The increase in
product revenue of $1,093,419 for the six months ended June 30, 2017 was primarily attributable to increased sales generated from
our plasma supply agreement with SK, under which SK purchases normal source plasma from ADMA BioCenters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Cost of Product Revenue</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cost of product revenue was $5,950,306
for the six months ended June 30, 2017, and $2,610,662 for the six months ended June 30, 2016, an increase of $3,339,644. Cost
of product revenue for the three and six months ended June 30, 2017 includes approximately $2 million of costs associated with
the Boca Facility, including fees paid to third-party consultants providing remediation services for the Warning Letter. The remainder
of the increase is primarily attributable to the manufacturing of Nabi-HB and increased plasma center revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Research and Development Expenses</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">R&amp;D expenses were $2,551,136 for the six months ended June
30, 2017, a decrease of $2,876,465 as compared to $5,427,601 for the six months ended June 30, 2016. The decrease in R&amp;D expenses
for the six months ended June 30, 2017 is primarily the result of lower validation, testing and production costs related to RI-002
due to receipt of the CRL from the FDA during the third quarter of 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Plasma Center Operating Expenses</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Plasma center operating expenses were $3,079,646 for the six
months ended June 30, 2017, an increase of $504,926 as compared to $2,574,720 for the six months ended June 30, 2016. The increase
in plasma center expenses is attributable to hiring additional staff and increasing the hours of operations at our Marietta location
during the first quarter of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Selling, General and Administrative
Expenses</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SG&amp;A expenses were $8,713,034 for the six months ended June
30, 2017, an increase of $5,281,001 from $3,432,033 for the six months ended June 30, 2016. G&amp;A expenses primarily increased
due to transaction costs of $3,774,971, including fees paid for legal, accounting and financial advisory services related to due
diligence and other costs associated with the acquisition of the Biotest Assets and the issuance of a fairness opinion, as well
as increased employee compensation costs of approximately $500,000. In addition, the inclusion of BTBU resulted in an additional
$969,154 of SG&amp;A expenses in 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Loss from Operations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our operating loss was $14,338,871 for the six months ended
June 30, 2017, an increase of $4,689,485 from $9,649,386 for the six months ended June 30, 2016. The increase was mainly the result
of the increase in SG&amp;A expenses, as well as lower gross profit attributable to operating costs of the Boca Facility which
were not present in 2016, partially offset by lower R&amp;D expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Other Income (Expense); Interest
Expense</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other expense, net was $1,234,587 for the six months ended June
30, 2017, compared to $975,418 for the six months ended June 30, 2016. The increase of $259,169 is primarily related to increased
interest expense, including amortization of debt discount, resulting from the increase of $4,000,000 to our current debt in the
second quarter of 2016 and the note payable to BPC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Loss</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net loss was $15,573,458 for the six months ended June 30, 2017,
an increase of $4,948,654 from $10,624,804 for the six months ended June 30, 2016. The increase was mainly due to the increase
in operating loss and interest expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Year Ended December 31, 2016 Compared to Year Ended December
31, 2015</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Summary Table</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table presents a summary of our results of operations
for the year ended December 31, 2016 compared to the year ended December 31, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Years Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-align: left">Product revenue</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">10,518,203</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">7,050,283</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">License and other revenue</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">142,834</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">127,350</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total revenues</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,661,037</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,177,633</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cost of product revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,360,761</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,311,461</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,688,238</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,015,946</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Plasma centers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,447,691</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,618,065</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">General and administrative</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,494,742</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,745,968</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,991,432</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">22,691,440</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,330,395</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,513,807</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,317</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,830</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,239,569</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,842,716</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,496</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in fair value of stock warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67,860</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Loss on extinguishment of debt</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(719,097</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(19,515,151</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(17,969,930</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Revenues</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We recorded total revenue of $10,661,037 during the year ended
December 31, 2016 compared to $7,177,633 during the year ended December 31, 2015. Product revenue was $10,518,203 for the year
ended December 31, 2016, which is attributable to our ADMA BioCenters plasma collection centers segment and derived from the sale
of human source plasma collected in our FDA-licensed, GHA and KMFDS-certified Georgia-based blood plasma collection centers, compared
to product revenue of $7,050,283 for the year ended December 31, 2015. The increase in product revenue of $3,467,920 was primarily
attributable to increased plasma collections and sales from our Marietta plasma center which received FDA approval to sell human
source plasma within the U.S. during the third quarter of 2015. Product revenue for the year ended December 31, 2016 was primarily
attributable to sales made pursuant to our plasma supply agreement with BPC under which BPC purchases normal source plasma from
ADMA BioCenters for their manufacturing, in addition to selling increased quantities of normal source plasma to a second customer.
We sold a majority of the normal source plasma collected from our plasma centers throughout 2016. The normal source plasma and
high-titer RSV plasma we did not sell was allocated to inventory in anticipation of commercial manufacturing. For the years ended
December 31, 2016 and 2015, license and other revenue was $142,834 and $127,350, respectively, which relates to services and financial
payments provided by BPC and Biotest in accordance with our license agreement. We have not generated any revenue from our therapeutics
research and development business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cost of Product Revenue </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of product revenue was $6,360,761 for the year ended December
31, 2016 and $4,311,461 for the year ended December 31, 2015. The increased cost of product revenues of $2,049,300 for the year
ended December 31, 2016 was directly related to the increase in 2016 product revenues primarily related to our second plasma center.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Research and Development Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">R&amp;D expenses, which are attributable to our R&amp;D segment,
were $7,688,238 for the year ended December 31, 2016, an increase of $672,292 as compared to $7,015,946 for the year ended December
31, 2015. R&amp;D expenses consist of clinical research organization costs, consulting expenses relating to regulatory affairs,
quality control and manufacturing, assay development and ongoing testing costs, clinical trial costs and fees, drug product manufacturing
including the cost of plasma, plasma storage and transportation costs, as well as wages and benefits for staff directly related
to the research and development of RI-002. R&amp;D expenses increased for the year ended December 31, 2016, as compared to the
year ended December 31, 2015, primarily as a result of an increase in validation, testing and production costs related to RI-002
and an increase in regulatory consulting fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Plasma Center Operating Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Plasma center operating expenses were $5,447,691 for the year
ended December 31, 2016, an increase of $829,626 as compared to $4,618,065 for the year ended December 31, 2015. Plasma center
operating expenses consist of: general and administrative plasma center costs; overhead comprised of rent, maintenance, utilities,
wages, stock-based compensation and benefits for center staff, plasma collection supplies, plasma transportation and storage (off-site);
advertising and promotion expenses; and computer software fees related to donor collections. The increase in expenses was primarily
the result of increased plasma collections at our ADMA BioCenters Marietta collection facility, which received FDA approval during
the third quarter of 2015. The increased expenses include higher costs in wages, rent, maintenance and plasma collection supplies
for the year ended December 31, 2016 as compared to the year ended December 31, 2015. We expect that as plasma collection increases,
our operating expenses will also increase accordingly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>General and Administrative Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">G&amp;A expenses were $8,494,742 for the year ended December
31, 2016, an increase of $1,748,774 from $6,745,968 for the year ended December 31, 2015. General and administrative expenses consist
of Proposed Acquisition fees, wages and stock-based compensation for our senior management and staff unrelated to research and
development, professional fees for commercialization and marketing consulting, attorneys, accountants and auditors, investor relations,
maintenance and utilities, insurance, information technology, travel and other expenses related to the general operations of the
business. G&amp;A expenses primarily increased as a result of fees incurred for the Proposed Acquisition fees paid for legal, accounting
and financial advisors. The increase was also attributed to consulting services provided to us related to pre-launch, commercial
planning, and market research, along with increased rent expense, higher wages and benefits for employees and consulting fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Other Expense, Net</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other expense, net, was $2,184,756 for the year ended December
31, 2016, as compared to $2,456,123 for the year ended December 31, 2015. The decrease of $271,367 is primarily related to a loss
on extinguishment of debt of $719,097, which was recorded in the second quarter of 2015 for the refinancing of an existing loan
with our prior lender, Oxford. Such expenses are comprised of a write-off of deferred financing
costs, end of term fees and prepayment penalties for the repayment of debt to our prior lender, offset by increased interest expense
due to an increase of $4,000,000 to our current debt in the second quarter of 2016, which includes debt discounts amortization
for our new lender&rsquo;s end of term fees, back end fees, value of warrants issued, facility and financing fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Loss</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net loss increased to $19,515,151 for the year ended December
31, 2016 as compared to $17,969,930 for the year ended December 31, 2015, for the reasons previously stated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liquidity and Capital Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Overview</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2017, the Company had working capital of $28.6
million, consisting primarily of $25.6 million of cash and cash equivalents, $2.3 million of accounts receivable, $13.2 million
of inventories, $0.8 million of assets held for sale and $2.4 million of prepaid expenses, partially offset by the current portion
of notes payable in the amount of $6.7 million, $4.7 million of accounts payable, $4.1 million of accrued expenses and $0.2 million
of deferred revenue and other current liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have had limited revenue from operations, we have incurred
cumulative losses of $122.5 million since inception and for the six months ended June 30, 2017 and 2016 we had negative cash flows
from operations of $14.2 million and $10.0 million, respectively. We have funded our operations to date primarily from the sale
of our equity securities, loans from venture debt lenders, acquisition proceeds and loans from our primary stockholders. In May
2016, we completed an underwritten public offering of our Common Stock and we received net proceeds of approximately $12.9 million.
Also in May 2016, we amended our LSA with Oxford and
borrowed an additional $4.0 million. In June 2017, we received $27.5 million in connection with the Biotest Transaction, including
a cash infusion from BPC into the acquired business in the amount of $12.5 million and an unsecured subordinated 6% note payable
to BPC in the amount of $15.0 million. In addition, BPC has provided us with a firm equity commitment to invest an additional $12.5
million in future equity financings of the Company. Our funds are being used and have been used: to conduct clinical trials; to
manufacture drug products; to collect and procure plasma; to test plasma donors for RSV titers; to file our BLA for RI-002; to
conduct pre-launch activities; for commercialization and marketing activities; for the buildout and expansion of our plasma centers;
for expenses related to the Biotest Transaction, remediation of the Warning Letter at the Boca Facility and the remainder for payment
of existing accounts payable; for selling, general and administrative expenses and research and development expenses; and for other
business activities and general corporate purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October 10, 2017, we entered into the Credit Agreement
with Marathon which provides for the Credit Facility in an aggregate amount of up to $40.0 million, comprised of
the $30.0 million Tranche One Loan and an additional Tranche Two Loan to be made in the maximum principal amount not to
exceed $10.0 million (the &ldquo;Tranche Two Loan&rdquo; and, together with the Tranche One Loan, the &ldquo;Loans&rdquo;),
which Tranche Two Loan availability is subject to the satisfaction of certain conditions, including, but not limited to,
those described below. The Loans each have a Maturity Date of April 10, 2022, subject to acceleration pursuant to the
Credit Agreement, including upon an Event of Default (as defined in the Credit Agreement). Commencing on October 10, 2020,
and on the first business day of each month, we will pay the Tranche One Loan (and Tranche Two Loan in the event it shall
have been funded) in equal monthly installments of principal based on an amortization schedule of 18 months, subject to
certain conditions in the Credit Agreement. The outstanding principal amounts of the Loans, together with all accrued
interest thereon, shall be due on the Maturity Date. On October 10, 2017, we (i) used approximately $17.0 million of
the Tranche One Loan to retire and pay in full our existing credit facility with Oxford and the obligations thereunder
in accordance with the terms of the LSA with Oxford, (ii) used  $5.5 million of the Tranche One Loan to pre-fund
a debt service reserve account in accordance with the terms of the Credit Agreement, and (iii) paid diligence fees, legal
and other expenses associated with the Credit Facility in the amount of approximately $1.5 million, which fees exclude a
deferred facility fee to Marathon equal to 9.20% of the Tranche One Loan payable at maturity. We intend to use the remaining
proceeds of approximately $6.0 million for the continued remediation of the issues identified in the CRL and the Warning
Letter and for general corporate purposes. Among other conditions set forth in the Credit Agreement, the obligation of
Marathon to make the Tranche Two Loan is subject to the satisfaction of certain conditions related to FDA approval for
specified products and our financial condition, including, without limitation, the following: (a) (i) the FDA must validate
the improved manufacturing process of Bivigam and (ii) not less than $500,000 in net revenue must be generated in calendar
year of 2018 of from the sale in the U.S. of Bivigam; or (b) (i) the FDA must approve the commercialization of our lead
pipeline product candidate, RI-002 and (ii) not less than $500,000 in net revenue must be generated in calendar year of 2019
from the sale in the U.S. of RI-002. Borrowings under the Credit Agreement will bear interest at a rate per annum equal to
LIBOR plus 9.50% with a 1% LIBOR floor; provided, however, that in the event that we achieve sales of not less than
$61.7 million for the 2018 calendar year and the Tranche Two Loan has been funded, then the borrowings under the Credit
Agreement will bear interest at a rate of LIBOR plus 7.75% with a 1% LIBOR floor. Prior to October 10, 2020, we will only pay
interest on the Loans. During an Event of Default under the Credit Agreement, the outstanding amount of indebtedness under
the Credit Agreement will bear interest at a rate per annum equal to the interest rate then applicable to the borrowings
under the Credit Agreement plus 5% per annum. The Loans are secured by substantially all of our assets, including our
intellectual property. Events of Default include, among others, non-payment of principal, interest, or fees, violation of
covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults
to material contracts and events constituting a change of control. The occurrence of an Event of Default could result in,
among other things, the termination of commitments under the Credit Facility, the declaration that all outstanding Loans are
immediately due and payable in whole or in part, and Marathon taking immediate possession of, and selling, any collateral
securing the Loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As consideration for the Credit Agreement, we issued, on October
10, 2017, a Warrant to Purchase Stock to Marathon (the &ldquo;Tranche One Warrant&rdquo;). The Tranche One Warrant has (i) an exercise
price equal to $3.10, which is the trailing 10-day VWAP of our Common Stock prior to October 10, 2017, and (ii) an expiration
date of October 10, 2024. The Tranche One Warrant is exercisable for 338,710 shares of our Common Stock, or 3.5% of the Tranche
One Loan. In the event that the Tranche Two Loan is issued to us, we shall issue an additional Warrant to Purchase Stock to Marathon
(the &ldquo;Tranche Two Warrant&rdquo;) to purchase such number of shares of Common Stock equal to 3.5% of the Tranche Two Loan,
which shall have an exercise price equal to the trailing 10-day VWAP of the Common Stock prior to the issuance date of the Tranche
Two Warrant and an expiration date equal to the seven year anniversary of the issuance of the Tranche Two Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Future Financing Needs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We expect to continue to spend substantial amounts on product
development, quality and regulatory activities, procuring raw material plasma, manufacturing, conducting clinical trials for our
product candidates and purchasing clinical trial materials from our suppliers. We currently anticipate, based upon our projected
revenue and expenditures, our cash, cash equivalents, projected revenue and accounts receivable, along with the proceeds from this
Offering, which includes the equity commitment from Biotest, will be sufficient to fund our operations, as currently conducted,
into the second half of 2018. In order to have sufficient cash to fund our operations thereafter and to continue as a going concern,
we will need to raise additional equity or debt financing during the second half of 2018. This time frame may change based upon
how quickly we are able to execute on our quality management systems&rsquo; remediation plans for the ADMA BioManufacturing operations,
commercial manufacturing scale up activities and the various financing options we are exploring. We currently have no firm commitments
for additional financing other than the equity commitment from Biotest, and we cannot provide any assurance that we will be able
to secure additional financing on terms that are acceptable to us, or at all. Failure to secure any necessary financing in a timely
manner and on commercially reasonable terms could have a material adverse effect on our business plan and financial performance
and we could be forced to delay or discontinue our product development, clinical trial or commercialization activities, delay or
discontinue the approval efforts for any of our potential products, or potentially cease operations. In addition, we could be forced
to reduce or forgo sales and marketing efforts and forgo attractive business opportunities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Furthermore, if the assumptions underlying our estimated expenses
are incorrect, we may have to raise additional capital sooner than anticipated. Because of numerous risks and uncertainties associated
with the research and development and potential future commercialization of our product candidates, we are unable to estimate with
certainty the amounts of increased capital outlays and operating expenditures associated with our anticipated clinical trials and
development activities. Our current estimates may be subject to change as circumstances regarding our business requirements evolve.
We may decide to raise capital through public or private equity offerings and such financings may only be available on unattractive
terms, resulting in significant dilution of stockholders&rsquo; interests and, in such event, the value and potential future market
price of our Common Stock may decline. We may also decide to obtain debt financing or a bank credit facility or to enter into corporate
collaboration and licensing arrangements. The sale of additional equity or debt securities, if convertible, could result in dilution
to our current stockholders. The incurrence of additional indebtedness would result in increased fixed obligations and could also
result in covenants that would restrict our operations or other future financing alternatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our long-term liquidity depends upon our ability to raise additional
capital, to fund our research and development and commercial programs and meet our obligations on a timely basis. We believe that
we will continue to incur losses and negative cash flows from operating activities through the foreseeable future. As such, these
conditions raise substantial doubt about our ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-style: normal">The following table
sets forth a summary of our cash flows for the periods indicated:</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-style: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">Six Months Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(14,173,774</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(9,972,107</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash provided by (used in) investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,793,627</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,960,820</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">12,039,289</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">17,041,141</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net change in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,659,142</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,108,214</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Cash and cash equivalents - beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9,914,867</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,440,959</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents - beginning of period</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">25,574,009</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,549,173</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-style: normal"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Used in Operating Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table illustrates the primary components of our
cash flows from operations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-weight: bold; text-align: center">Six Months Ended</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 60%; text-align: left">Net loss</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(15,573,458</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(10,624,804</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Non-cash expenses, gains and losses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,249,561</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,190,600</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Changes in accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,274,246</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97,753</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Changes in inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,766</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(763,553</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Changes in prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,298,991</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(527,032</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Changes in accounts payable and accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,147,165</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">670,209</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Other</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(490,571</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(15,280</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><SUP></SUP>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash used in operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(14,173,774</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(9,972,107</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cash used in operations increased by $4,201,667, mainly due
to the higher net loss, increase in accounts receivable and higher increases in prepaid expenses and security deposits primarily
associated with the acquisition of the Biotest Assets, partially offset by larger increases in accounts payable and accrued expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Used in Investing Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by investing activities was $17,793,627 for
the six months ended June 30, 2017, which reflects the $12,500,000 of cash received by us in connection with the acquisition of
the Biotest Assets, and the redemptions of short-term investments in the amount of $5,390,184.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash used in investing activities was $4,960,820 for the
six months ended June 30, 2016, which was related to the purchase of short-term investments of $4,902,786 and $58,034 in purchases
of computers and equipment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Provided by Financing Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by financing activities totaled $12,039,289
for the six months ended June 30, 2017, which primarily consisted of $15,000,000 received from the issuance of the note payable
to BPC, partially offset by repayments on the principal balances of our then-outstanding notes payable to Oxford, which the Company
became obligated to begin repaying over 36 months beginning February 1, 2017 in accordance with the terms of the LSA, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by financing activities totaled $17,041,141
for the six months ended June 30, 2016, which primarily consisted of $13,072,741 of net proceeds received from the issuance of
Common Stock during the second quarter of 2016 and $4,000,000 received from Oxford during the second quarter of 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Year Ended December 31, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Used in Operating Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash used in operating activities was $18,268,973 for the
year ended December 31, 2016. The net loss for this period was higher than net cash used in operating activities by $1,246,178,
which was primarily attributable to stock-based compensation of $1,250,074, depreciation and amortization of $469,576 and amortization
of debt discount of $676,943, offset by an increase of inventories of $1,574,373 related to collection and purchases of RSV plasma
and normal source plasma, an increase in accounts payable of $476,826 and accrued expenses of $416,972 primarily related to fees
associated to the Proposed Acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash used in operating activities was $15,418,404 for the
year ended December 31, 2015. The net loss for this period was higher than net cash used in operating activities by $2,551,526,
which was primarily attributable to increases in inventories of $1,737,010 related to allocating additional plasma to inventory
in preparation for commercial manufacturing activities anticipated in 2016, increased deferred revenue of $1,525,000 from a milestone
payment received from BPC resulting from our BLA filing of RI-002, increases in accounts receivable of $540,507 related to sales
of our normal source plasma, offset by stock-based compensation of $1,711,047, a loss on extinguishment of debt of $719,097 attributable
to the refinancing of previous debt with a new venture debt lender and depreciation and amortization of $469,821.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Net Cash Used in Investing Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by investing activities was $904,583 for the
year ended December 31, 2016, which was related to the purchases and redemptions of short-term investments of $977,993 and purchases
of computers and equipment of $73,410, primarily related to our second plasma centers which received FDA approval in September
2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities was
$1,741,575 for the year ended December 31, 2015, which was related to the purchases and redemptions of short-term investments of
$1,715,502 and $26,073 in purchases of computers and equipment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Net Cash Provided by Financing Activities</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by financing activities totaled $16,838,298
for the year ended December 31, 2016, which primarily consisted of $14,145,000 received from the issuance of Common Stock during
the second quarter of 2016 offset by equity issuance costs of $1,244,459, proceeds of $4,000,000 received from Oxford during the
second quarter of 2016, offset by payment of debt issue costs to Oxford of $47,104 in addition to amortization of our leasehold
improvement loan for our ADMA BioCenters subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net cash provided by financing activities totaled $10,401,908
for the year ended December 31, 2015, which primarily consisted of $16,000,000 received from the loan from Oxford during the second
quarter of 2015, and $10,257,380 received from the issuance of Common Stock during the first quarter of 2015, offset by the $15,300,781
related to the repayment of a pre-existing loan with Hercules Technology Growth Capital, Inc. (&ldquo;Hercules&rdquo;), prepayment
premium to Hercules of $229,512, debt issue costs to Oxford of $228,065 and an end of term fee payment of $132,500 to Hercules
in addition to amortization of our leasehold improvement loan for our ADMA BioCenters subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Effect of Inflation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Inflation did not have a significant impact on our net sales,
revenues or net loss in 2014, 2015 or 2016, or for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recent Accounting Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2017, the Financial Accounting Standards Board (the &ldquo;FASB&rdquo;)
issued Accounting Standard Update (&ldquo;ASU&rdquo;) No. 2017-09, Modification Accounting for Share-Based Payment Arrangements,
which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types
of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification
accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions,
and classification of the awards are the same immediately before and after the modification. The ASU is effective for annual reporting
periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is
permitted, including adoption in any interim period. We do not expect this new guidance to have a material impact on our condensed
consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2017, the FASB issued ASU No. 2017-01, Business Combinations
&ndash; Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating
whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen
for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and
a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning
after December 15, 2017, including interim periods within that reporting period. We adopted this standard in the second quarter
of 2017 and the adoption of this standard did not have a material impact on our condensed consolidated financial statements as
of and for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2017, the FASB issued ASU 2017-04, Intangibles &ndash;
Goodwill and Other (Topic 350), which removes the requirement to compare the implied fair value of goodwill with its carrying amount
as part of step 2 of the goodwill impairment test. As a result, under the ASU, &ldquo;an entity should perform its annual, or interim,
goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment
charge for the amount by which the carrying amount exceeds the reporting unit&rsquo;s fair value; however, the loss recognized
should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively for fiscal
years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed
on testing dates after January 1, 2017. We do not expect this new guidance to have a material impact on our condensed consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2016, the FASB issued ASU No. 2016-09, Improvements
to Employee Share-Based Payment Accounting (Topic 718), which provides for simplification of certain aspects of employee share-based
payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for forfeitures
and classification on the statement of cash flows. We adopted this standard in the first quarter of 2017 and the adoption of this
standard did not have a material impact on our condensed consolidated financial statements as of and for the six months ended June
30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic
842), which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their
balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those
fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all leases existing at,
or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating
the impact that the standard may have on our condensed consolidated financial statements and related disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In November 2015, the FASB issued ASU No. 2015-17, Income Taxes
(Topic 740), Balance Sheet Classification of Deferred Taxes, which includes amendments that require deferred tax liabilities and
assets be classified as non-current in a classified statement of financial position. The amendments in this ASU are effective for
financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning
after December 15, 2018. Earlier application is permitted as of the beginning of an interim or annual reporting period. The amendments
may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We
adopted this standard in the second quarter of 2017. Because we carry a full valuation allowance against our deferred tax assets
as of June 30, 2017 and December 31, 2016, adoption of this standard did not have a material impact on our condensed consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In September 2015, the FASB issued ASU No. 2015-16, Business
Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments, which includes amendments that require
an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined. The amendments in this ASU require that the acquirer record, in the same
period&rsquo;s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects,
if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition
date. The amendments in this ASU require an entity to present separately on the face of the income statement or disclose in the
notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting
periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU
are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December
15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date
of the ASU with earlier application permitted for financial statements that have not yet been made available for issuance. We adopted
this standard in the first quarter of 2017 and the adoption of this standard did not have a material impact on our condensed consolidated
financial statements as of and for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In July 2015, the FASB issued ASU 2015-11, Inventory (Topic
330): Simplifying the Measurement of Inventory. The standard requires entities to measure most inventory &ldquo;at the lower of
cost and net realizable value,&rdquo; thereby simplifying the current guidance under which an entity must measure inventory at
the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable
value). We adopted this standard in the first quarter of 2017 and the adoption of this standard did not have a material impact
on our condensed consolidated financial statements as of and for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2014, the FASB issued new guidance related to revenue
recognition, ASU 2014-09, Revenue from Contracts with Customers (&ldquo;ASC 606&rdquo;), which outlines a comprehensive revenue
recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue
upon transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in exchange
for those goods or services. ASC 606 defines a five-step approach for recognizing revenue, which may require a company to use more
judgment and make more estimates than under the current guidance. The new guidance becomes effective in calendar year 2018 and
early adoption in calendar year 2017 is permitted. Two methods of adoption are permitted: (a) full retrospective adoption, meaning
the standard is applied to all periods presented; or (b) modified retrospective adoption, meaning the cumulative effect of applying
the new guidance is recognized at the date of initial application as an adjustment to the opening retained earnings balance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2016, April 2016 and December 2016, the FASB issued
ASU No. 2016-08, Revenue From Contracts with Customers (ASC 606): Principal Versus Agent Considerations, ASU No. 2016-10, Revenue
From Contracts with Customers (ASC 606): Identifying Performance Obligations and Licensing, and ASU No. 2016-20, Technical Corrections
and Improvements to Topic 606, Revenue From Contracts with Customers, respectively, which further clarify the implementation guidance
on principal versus agent considerations contained in ASU No. 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts
with Customers, narrow-scope improvements and practical expedients which provides clarification on assessing the collectability
criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. These
standards will be effective for the Company beginning in the first quarter of 2018. Early adoption is permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will adopt the new standard and related updates effective
January 1, 2018, and we intend to use the modified retrospective method of adoption. We have undertaken an initial impact analysis,
which includes reviewing the terms and conditions of our existing customer contracts and applying the five discrete criteria required
for recognizing revenue as set forth in ASU 2014-09. Based upon our preliminary analysis undertaken through September 30, 2017,
we currently do not expect the new revenue recognition guidance to have a material impact on our consolidated financial statements,
and expect to conclude such analysis by December 31, 2017. We continue to monitor additional changes, modifications, clarifications
or interpretations being undertaken by the FASB, which may, in conjunction with the completion of our overall assessment of the
new guidance, impact our current conclusions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Critical Accounting Policies and Estimates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On April 5, 2012, the Jumpstart Our Business Startups Act, or
the JOBS Act, was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements
for qualifying public companies. We could be an emerging growth company until December 31, 2018, which is the last day of the fiscal
year following the fifth anniversary of the first sale of our common equity securities pursuant to an effective registration statement
under the Securities Act. However, if certain events occur prior to the end of such five-year period, including if we become a
&ldquo;large accelerated filer,&rdquo; our annual gross revenues exceed $1 billion or we issue more than $1 billion of non-convertible
debt in any three-year period, we would cease to be an emerging growth company prior to the end of such five-year period. As an
&ldquo;emerging growth company,&rdquo; we may, under Section 7(a)(2)(B) of the Securities Act, delay adoption of new or revised
accounting standards applicable to public companies until such standards would otherwise apply to private companies. We may take
advantage of this extended transition period until the first to occur of the date that we (i) are no longer an &ldquo;emerging
growth company&rdquo; or (ii) affirmatively and irrevocably opt out of this extended transition period. We have elected to take
advantage of the benefits of this extended transition period. Our condensed consolidated financial statements may therefore not
be comparable to those of companies that comply with such new or revised accounting standards. Until the date that we are no longer
an &ldquo;emerging growth company&rdquo; or affirmatively and irrevocably opt out of the exemption provided by Securities Act Section
7(a)(2)(B), upon issuance of a new or revised accounting standard that applies to our condensed consolidated financial statements
and that has a different effective date for public and private companies, we will disclose the date on which adoption is required
for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard. As an emerging growth
company, we are also exempt from the requirement to have our independent auditors provide an attestation report on our internal
control over financial reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations is based on our condensed consolidated financial statements, which have been prepared in accordance
with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate these estimates and
assumptions, including those described below. We base our estimates on our historical experience and on various other assumptions
that we believe to be reasonable under the circumstances. These estimates and assumptions form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and experiences
may differ materially from these estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Some of the estimates and assumptions we have to make under
GAAP require difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, actual
results could differ from those estimates. Due to the estimation processes involved, the following summarized accounting policies
and their application are considered to be critical to understanding our business operations, financial condition and results of
operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stock-Based Compensation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stock-based compensation cost is measured at grant date, based
on the estimated fair value of the award, and is recognized as expense over the employee&rsquo;s requisite service period on a
straight-line basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We account for stock options granted to non-employees on a fair
value basis using the Black-Scholes option pricing method. The noncash charge to operations for non-employee options with vesting
is revalued at the end of each reporting period based upon the change in the fair value of the options and amortized to consulting
expense over the related contract service period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of valuing stock options granted to our employees,
non-employees and directors and officers through the six months ended June 30, 2017, we used the Black-Scholes option pricing model.
We granted options to purchase an aggregate of 1,856,595 and 100,984 shares of Common Stock during the six months ended June 30,
2017 and 2016, respectively. To determine the risk-free interest rate, we utilized the U.S. Treasury yield curve in effect at the
time of the grant with a term consistent with the expected term of our awards. The expected term of the options granted is in accordance
with Staff Accounting Bulletins 107 and 110, which is based on the average between vesting terms and contractual terms. The expected
dividend yield reflects our current and expected future policy for dividends on our Common Stock. The expected stock price volatility
for our stock options was calculated by examining the pro rata historical volatilities for similar publicly traded industry peers
and the trading history for our Common Stock. We will continue to analyze the expected stock price volatility and expected term
assumptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Research and Development Costs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our R&amp;D costs are expensed as incurred, including costs
associated with (i) planning and conducting clinical trials; (ii) drug product manufacturing, including the cost of plasma, plasma
storage and transportation costs; (iii) quality testing, validation, regulatory consulting and filing fees; and (iv) employees&rsquo;
compensation expenses directly related to R&amp;D activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Revenue Recognition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Depending on the agreement with the customer, revenue from the
sale of human plasma collected by ADMA BioCenters is recognized at the time of transfer of title and risk of loss to the customer,
which usually occurs at the time of shipment. Product revenue is recognized at the time of delivery if we retain the risk of loss
during shipment. Our current product revenues are substantially attributable to two customers. One customer accounted for 75% and
another customer accounted for 15% of our product revenues for the six months ended June 30, 2017. Although we expect this concentration
to decrease over the remainder of the year as additional sales of Nabi-HB are reflected in our consolidated financial statements,
these two customers are still expected to account for a significant portion of our revenues. Revenue from license fees and research
and development services rendered are recognized as revenue when the performance obligations under the terms of the license agreement
with Biotest have been completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Off-Balance Sheet Arrangements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There have been no changes in or disagreements with our accountants
on accounting or financial disclosure matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Directors,
Executive Officers and Corporate Governance</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth our directors
and executive officers, their ages and the positions they hold:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; width: 30%"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="text-align: center; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 10%"><FONT STYLE="font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="text-align: center; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 55%"><FONT STYLE="font-size: 10pt"><B>Position</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Adam S. Grossman</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">40</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">President and Chief Executive Officer, Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Steven A. Elms</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">53</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Chairman of the Board</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Dr. Bernhard Ehmer</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">62</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Bryant E. Fong</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">44</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Dov A. Goldstein, M.D.</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">49</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Jerrold B. Grossman, D.P.S.</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">69</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Founder and Vice Chairman</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Lawrence P. Guiheen </TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">66</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Eric I. Richman</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">56</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Brian Lenz</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">45</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Vice President, Chief Financial Officer</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">James Mond, M.D., Ph.D.</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">71</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Executive Vice President, Chief Scientific Officer and Chief Medical Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Adam S. Grossman &ndash; Founder</I>,&nbsp;<I>Director,
President and Chief Executive Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr.&nbsp;Grossman has been a director of the Company since 2007,
has served as the Company&rsquo;s President and Chief Executive Officer since October 2011 and as the Company&rsquo;s President
and Chief Operating Officer between 2007 and October 2011.&nbsp;&nbsp;Mr.&nbsp;Grossman has over 20 years of experience in the
blood and plasma industry.&nbsp;&nbsp;Prior to founding the Company, Mr.&nbsp;Grossman was the Executive Vice President of National
Hospital Specialties and GenesisBPS, a position he held between 1994 and 2011.&nbsp;&nbsp;He has experience in launching new products,
building and managing national and international sales forces, managing clinical trials and completing numerous business development
transactions.&nbsp;&nbsp;Previously, he worked at MedImmune, Inc., where he worked on marketing teams for RSV and CMV immunoglobulins
and at the American Red Cross, where he launched new products with the Biomedical Services division.&nbsp;&nbsp;Mr.&nbsp;Grossman
received a B.S. in Business Administration, with a specialization in International Business and Marketing, from American University.&nbsp;&nbsp;Mr.&nbsp;Grossman
is the son of Dr.&nbsp;Jerrold B. Grossman, our Vice Chairman. Mr. Grossman was chosen to serve on the Board because, as the Company&rsquo;s
Chief Executive Officer, he is able to provide the Board with critical insight into the day-to-day operations of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Steven A. Elms &ndash;&nbsp;Chairman</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Mr.&nbsp;Elms has been a director of
the Company since 2007.&nbsp;&nbsp;Mr.&nbsp;Elms serves as a Managing Partner at Aisling Capital, which he joined in 2000.&nbsp;&nbsp;Previously,
he was a Principal in the Life Sciences Investment Banking Group of Hambrecht &amp; Quist.&nbsp;&nbsp;During his five years at
Hambrecht &amp; Quist, Mr.&nbsp;Elms was involved in over 60 financing and merger and acquisition transactions, helping clients
raise in excess of $3.3 billion in capital.&nbsp;&nbsp;Prior to joining Hambrecht &amp; Quist, Mr.&nbsp;Elms traded mortgage-backed
securities at Donaldson, Lufkin &amp; Jenrette.&nbsp;&nbsp;His previous healthcare sector experience includes over two years as
a pharmaceutical sales representative for Marion Laboratories and two years as a consultant for The Wilkerson Group.&nbsp;&nbsp;Mr.&nbsp;Elms
currently serves on the boards of directors of Cidara Therapeutics, Inc., Loxo Oncology, Inc. and Pernix Therapeutics Holdings
Inc.&nbsp;&nbsp;Mr.&nbsp;Elms received a B.A. in Human Biology from Stanford University and an M.B.A. from Kellogg Graduate School
of Management at Northwestern University.&nbsp;&nbsp;Mr.&nbsp;Elms was chosen to serve on the Board because of his valuable experience
in the investment banking industry, particularly with respect to strategic and financing transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Dr. Bernhard Ehmer &ndash; Director</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Dr. Ehmer, who became a director of
the Company in June 2017, has served as the chairman of the board of management of Biotest since January 2015. Prior to joining
Biotest, from 2008 to 2012, Dr. Ehmer served as the president of ImClone Systems Corporation, a wholly-owned subsidiary of Eli
Lilly and Company, in the U.S., and as a managing director of ImClone Systems International in Germany, respectively. From 2007
to 2008, Dr. Ehmer served as the chief executive officer of Fresenius Biotech in Germany. From 2000 until 2005, Dr. Ehmer headed
the Business Area Oncology of Merck KgaA, Darmstadt (&ldquo;Merck KGaA&rdquo;). From 1998 until 2000, Dr. Ehmer was the head of
&quot;Global Clinical Operations&quot; at Merck KGaA. Between 1986 and 1998, Dr. Ehmer held various functions at Boehringer Mannheim
in Germany, Italy and Singapore. Dr. Ehmer holds a degree in medicine and worked in Internal Medicine at the Academic Teaching
Hospital of the University of Heidelberg with a focus on Cardiology/Intensive Care until he joined the pharmaceutical industry
in 1986. Dr. Ehmer was chosen to serve on the Board because of his extensive experience in the plasma and pharmaceutical industries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Bryant E. Fong &ndash;&nbsp;Director</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Mr.&nbsp;Fong, who became a director
of the Company in May 2012, has over 20 years of experience in the life sciences industry.&nbsp;&nbsp;Mr.&nbsp;Fong is a founding
Managing Director and General Partner at Biomark Capital Fund, a life sciences private equity firm formed in 2013.&nbsp;&nbsp;Prior
to Biomark Capital, Mr.&nbsp;Fong was a Managing Director and General Partner of Burrill &amp; Company, where he spent almost 16
years investing in and managing investments in private and public companies in the biotechnology industry.&nbsp;&nbsp;Some of Mr.&nbsp;Fong&rsquo;s
most notable investments include Pharmasset (VRUS), Novadaq Technologies (NVDQ), Galapagos (GLPG), Ceptaris Therapeutics and Ferrokin
Biosciences.&nbsp;&nbsp;In addition, Mr.&nbsp;Fong has played key roles in the formation of a number of portfolio companies including
serving as Nora Therapeutic&rsquo;s first president and founder and initial CEO of i2Dx.&nbsp;&nbsp;Prior to joining Burrill &amp;
Company, Mr.&nbsp;Fong held positions as a research scientist with two early stage biotechnology companies located in the San Francisco
Bay Area.&nbsp;&nbsp;Mr.&nbsp;Fong currently serves on the boards of directors of a number of private life science companies.&nbsp;&nbsp;Mr.&nbsp;Fong
earned his B.S. with honors in Molecular and Cell Biology-Biochemistry from the University of California, Berkeley.&nbsp;&nbsp;He
was nominated by Biomark Capital to serve on the Board because of his extensive experience in the biotechnology industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Dov A. Goldstein, M.D. &ndash;&nbsp;Director</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Dr.&nbsp;Goldstein has been a director
of the Company since 2007.&nbsp;&nbsp;Dr.&nbsp;Goldstein has been a partner at Aisling Capital since 2008 and was employed as a
principal at Aisling Capital from 2006 to 2008.&nbsp;&nbsp;Dr.&nbsp;Goldstein served as the Chief Financial Officer of Loxo Oncology,
Inc. between July 2014 and January 2015, and has been its acting Chief Financial Officer since January 2015.&nbsp;&nbsp;From 2000
to 2005, Dr.&nbsp;Goldstein served as Chief Financial Officer of Vicuron Pharmaceuticals, Inc., which was acquired by Pfizer, Inc.
in September 2005.&nbsp;&nbsp;Prior to joining Vicuron, Dr.&nbsp;Goldstein was Director of Venture Analysis at HealthCare Ventures.&nbsp;&nbsp;Dr.&nbsp;Goldstein
also completed an internship in the Department of Medicine at Columbia-Presbyterian Hospital.&nbsp;&nbsp;Dr.&nbsp;Goldstein serves
as a director of Cempra, Inc. and Esperion Therapeutics, Inc.&nbsp;&nbsp;Dr.&nbsp;Goldstein received a B.S. from Stanford University,
an M.B.A. from Columbia Business School and an M.D. from Yale School of Medicine.&nbsp;&nbsp;ADMA believes that Dr.&nbsp;Goldstein&rsquo;s
medical training and his experience in the biopharmaceutical industry as a venture capital investor, as an executive of Vicuron
and a member of the boards of directors of other biopharmaceutical companies, as well as his valuable perspective on ADMA&rsquo;s
business, give him the qualifications and skills to serve as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Jerrold B. Grossman, D.P.S. &ndash;&nbsp;Founder
and Vice Chairman</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Dr.&nbsp;Grossman has been a director
of the Company since 2007 and has over 35 years of experience in the blood and plasma industry.&nbsp;&nbsp;He served as the Chief
Executive Officer of ADMA, on a part-time basis, between 2007 and October 2011.&nbsp;&nbsp;He is the founder and Chief Executive
Officer of Technomed, Inc. (formerly National Hospital Specialties), a wholesaler of specialty biological and pharmaceutical products,
and has served as Chief Executive Officer of that company since 1980.&nbsp;&nbsp;Additionally, Dr.&nbsp;Grossman is the founder
and President of GenesisBPS, a medical device firm specializing in blood collection and processing equipment, and has served as
President of that company since 1990.&nbsp;&nbsp;Previously, he has held positions at the New York Blood Center, Immuno-U.S., Inc.
and previously served as the Chairman of the Board of Bergen Community Blood Services.&nbsp;&nbsp;Currently, Dr.&nbsp;Grossman
is a member of the New Jersey Blood Bank Task Force and a founder and director of the New Jersey Association of Blood Bank Professionals.&nbsp;&nbsp;He
was a founder and former director of Pascack Bancorp, Inc. which was acquired by Lakeland Bancorp, Inc. in January 2016 and is
currently a member of the Corporate Advisory Council of Lakeland Bancorp Inc.&nbsp;&nbsp;Dr.&nbsp;Grossman has also provided consulting
services to various government agencies and international organizations.&nbsp;&nbsp;He received a B.A. in Economics and Finance
from Fairleigh Dickinson University, an M.B.A. from Fairleigh Dickinson University, and his D.P.S. in Business Management from
Pace University.&nbsp;&nbsp;Dr.&nbsp;Grossman is the father of Adam S. Grossman, our President and Chief Executive Officer.&nbsp;&nbsp;He
was chosen to serve on the Board because of his role as our founder and past CEO, as well as his more than 35 years of experience
serving a variety of companies and associations in the blood and plasma industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Lawrence P. Guiheen &ndash;&nbsp;Director</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Mr.&nbsp;Guiheen, who became a director
of the Company in July 2012, has over 25 years of experience in the blood and plasma industry.&nbsp;&nbsp;Since July 2013, Mr.&nbsp;Guiheen
has been Chief Commercial Officer of Kedrion BioPharma, Inc., based in Barga, Italy and Fort Lee, New Jersey.&nbsp;&nbsp;Kedrion
markets therapies globally for hemophilia, hemolytic disease of the newborn, immune and neurological disorders.&nbsp;&nbsp;Prior
to July 2013, Mr.&nbsp;Guiheen was principal of Guiheen and Associates, a consulting group that specialized in biopharmaceutical,
pharmaceutical and medical device commercialization.&nbsp;&nbsp;Before July 2011, Mr.&nbsp;Guiheen was with Baxter Healthcare Corporation
for over 30 years.&nbsp;&nbsp;Most recently he held the positions of General Manager Global Hemophilia Franchise (from December
2010), President of Global BioPharmaceuticals for Baxter Healthcare&rsquo;s BioScience Division (March 2010 - December 2010) and
President of BioPharmaceuticals US (January 2004 - March 2010).&nbsp;&nbsp;Mr.&nbsp;Guiheen had been a member of the BioScience
Senior Management Team for over 14 years and has extensive experience leading global and domestic commercial organizations in the
plasma and recombinant therapies.&nbsp;&nbsp;Mr.&nbsp;Guiheen is past Chairman of the Global Board of Directors for the Plasma
Proteins Therapeutics Association (PPTA) and a past member of the Board of Directors of California Healthcare Institute (CHI).&nbsp;&nbsp;Mr.&nbsp;Guiheen
holds a Bachelor of Arts degree in business administration from Rutgers University.&nbsp;&nbsp;Mr.&nbsp;Guiheen was chosen to serve
on the Board because of his extensive experience in the plasma and pharmaceutical industries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Eric I. Richman &ndash; Director</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Mr.&nbsp;Richman has been a director
of the Company since 2007.&nbsp;&nbsp;Mr.&nbsp;Richman served as the President and Chief Executive Officer of PharmAthene, Inc.
between October 2010 and March 2015.&nbsp;&nbsp;He served as the President and interim Chief Executive Officer of PharmAthene between
May and October 2010, as President and Chief Operating Officer between March and May 2010 and as Senior Vice President, Business
Development and Strategic Planning between August 2003 and March 2010.&nbsp;&nbsp;He has also served on PharmAthene&rsquo;s board
of directors since May 2010.&nbsp;&nbsp;Prior to joining PharmAthene, Mr.&nbsp;Richman held various commercial and strategic positions
of increasing responsibility over a 12 year period at MedImmune, Inc. from its inception and was Director, International Commercialization
at that company.&nbsp;&nbsp;Mr.&nbsp;Richman served as director of Lev Pharmaceuticals and Chairman of its Commercialization Committee
and served as a director of American Bank.&nbsp;&nbsp;Mr.&nbsp;Richman received a Bachelor of Science in Biomedical Science from
the Sophie Davis School of Biomedical Education and a Master of Business Administration from the American Graduate School of International
Management.&nbsp;&nbsp;Mr.&nbsp;Richman was chosen to serve on the Board because of his experience in the development and commercialization
of plasma-derived products and experience as an executive officer of PharmAthene.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Brian Lenz -</I>&nbsp;<I>Vice
President</I>,&nbsp;<I>Chief Financial Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Mr.&nbsp;Lenz joined the Company as
its Vice President and Chief Financial Officer in May 2012.&nbsp;&nbsp;Mr.&nbsp;Lenz was previously employed by CorMedix Inc.,
a developmental-stage pharmaceutical and medical device company, where he held the position of Chief Financial Officer from February
2010 and Chief Operating Officer and Chief Financial Officer from January 2012 to May 2012.&nbsp;&nbsp;Prior to joining CorMedix,
Mr.&nbsp;Lenz was the Chief Financial Officer of Arno Therapeutics from July 2008 to February 2010, the Chief Financial Officer
of VioQuest Pharmaceuticals from April 2004 to June 2008, the Controller of Chiral Quest, Inc., a subsidiary of VioQuest Pharmaceuticals,
from October 2003 to March 2004, the Controller of Smiths Detection from July 2000 to October 2003, and a senior auditor at KPMG
LLP from October 1998 to July 2000.&nbsp;&nbsp;Mr.&nbsp;Lenz received a B.S. from Rider University; an M.B.A. from Saint Joseph&rsquo;s
University and is a licensed Certified Public Accountant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>James Mond, M.D., Ph.D. -&nbsp;Executive
Vice President,</I>&nbsp;<I>Chief Scientific Officer and Chief Medical Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Dr.&nbsp;Mond joined the Company as
the Executive Vice President, Chief Scientific Officer and Chief Medical Officer in July 2012.&nbsp;&nbsp;Dr.&nbsp;Mond was most
recently Chief Scientific Officer and Executive Vice President at Biosynexus, where he was responsible for the preclinical and
clinical development of three drug candidates from December 1999 through June 2011.&nbsp;&nbsp;Biosynexus engaged in immunological
and non-immunologic approaches to treat and prevent staphylococcus infections.&nbsp;&nbsp;Dr.&nbsp;Mond also functioned as its
Chief Medical Officer and had involvement with the Food and Drug Administration in designing clinical studies.&nbsp;&nbsp;While
at Biosynexus, Dr.&nbsp;Mond served as Chief Medical Officer for a Phase III clinical trial that was run in 93 neonatal intensive
care units in Europe and North America.&nbsp;&nbsp;Prior to that time, he was professor of Medicine, Rheumatology and Immunology
at the Uniformed Services University of the Health Sciences in Bethesda, Maryland, actively practicing internal medicine, rheumatology
and teaching medical students.&nbsp;&nbsp;Dr.&nbsp;Mond&rsquo;s laboratory invented a vaccine technology that was licensed to GlaxoSmithKline
and is currently the basis of a number of pediatric vaccines that are commercialized globally.&nbsp;&nbsp;Dr.&nbsp;Mond also led
the laboratory of Immunology at the Uniformed Services University of the Health Sciences and authored 168 papers published in peer
reviewed scientific journals and 20 invited articles and book chapters.&nbsp;&nbsp;He has over 20 issued patents in the area of
vaccines.&nbsp;&nbsp;Dr.&nbsp;Mond received his M.D and Ph.D. from the New York University Medical School.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Family Relationships</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other than with respect to Dr. Jerrold B. Grossman, who is the
father of Adam S. Grossman, our President and Chief Executive Officer and a director, there are no family relationships among any
of our directors, nominees for director and executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Audit Committee Financial Expert</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
members of our Audit Committee are Eric I. Richman (Chairman), Lawrence P. Guiheen and Bryant E. Fong.&nbsp;&nbsp;The composition
and responsibilities of the Audit Committee, as reflected in its charter, are intended to be in accordance with applicable rules
of the Securities and Exchange Commission for corporate audit committees and the listing requirements of Nasdaq.&nbsp;&nbsp;Our
Board has determined that each Audit Committee member meets the definition of an independent director as defined by the applicable
Nasdaq listing standards and the additional independence criteria for members of audit committees specified in the Nasdaq listing
standards and Rule 10A-3 under the Exchange Act.&nbsp;&nbsp;Our Board has determined that Mr.&nbsp;Richman, the chairman of the
Audit Committee, qualifies as an &ldquo;audit committee financial expert,&rdquo; as such term is defined by SEC rules</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Code of Ethics</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We are committed to quality, innovation
and above all, ethical professional conduct.&nbsp;&nbsp;Our Code of Ethics and Business Conduct Standards (the &ldquo;Code&rdquo;)
applies to all directors, officers and employees, including our principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions, and contains the general guidelines for conducting the
business of the Company and its subsidiaries and affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">It is the policy of the Company to
conduct its business in a matter that meets the highest ethical and moral standards to comply strictly with all laws and regulations
governing its operations.&nbsp;&nbsp;The overall purpose of the Code is to ensure compliance of general guidelines for conducting
the business of the Company consistent with the understanding of Company personnel of the Company&rsquo;s standards of ethical
business practices, laws, rules and regulations.&nbsp;&nbsp;The Code includes provisions relating to compliance with all laws and
regulations governing its operations, compliance with Regulation FD promulgated under the Exchange Act, conduct regarding business
activity (including conflicts of interest, corporate opportunities, loans, gratuities, gifts and favors, insider trading and tipping,
communications, acting in the best interest of the Company and nondisparagement, confidentiality, fair dealing, antitrust matters,
accuracy of company records and financial representations, record retention, and the Company&rsquo;s commitment to providing a
safe, orderly, diverse and tolerant work environment that is free of any discrimination or harassment ), conduct regarding outside
activity (including responsible citizenship and political activity), conduct regarding the Company&rsquo;s facilities and property
(including professional and personal use of the Company&rsquo;s information systems and assets), waivers of the Code, administration
of the Code (including distribution, the role of supervisors and officers and oversight by the Board) and encouraging contact with
the Company&rsquo;s Corporate Compliance Officer or supervisors with respect to seeking guidance, reporting and investigation of
suspected violations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">All of our directors, officers and
employees are expected to be familiar with the Code and to adhere to those principles and procedures set forth in the Code that
apply to them.&nbsp;&nbsp;The Company has posted the Code, and will post any amendments to the Code, as well as any waivers that
are required to be disclosed by the rules of the SEC, on the Company&rsquo;s website at www.admabiologics.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Executive
Compensation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Summary Compensation Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The following table sets forth, for
the periods indicated, all of the compensation awarded to, earned by or paid to (i) each individual serving as the Company&rsquo;s
principal executive officer during the last completed fiscal year; and (ii) each other individual who served as an executive officer
at the conclusion of the fiscal year ended December 31, 2016 and who received in excess of $100,000 in compensation during such
fiscal year (collectively referred to as the &ldquo;named executive officers&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name and Principal Position</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Salary</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Option Awards</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(1)</B></P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-Equity Incentive Plan Compensation (2)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Other Compensation (3)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; font-weight: bold; text-align: left">Adam S. Grossman</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: center">2016</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">492,757</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">51,847</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">212,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">7,950</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">764,954</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Director, President and&nbsp;Chief Executive Officer (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">476,539</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">547,912</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">211,200</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,243,601</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Dr.&nbsp;James Mond</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">360,177</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,606</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">122,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">511,233</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Executive Vice President, Chief Scientific Officer and Chief Medical&nbsp;Officer (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">347,115</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">258,842</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">122,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">736,407</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Brian Lenz</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">360,177</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">17,553</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">122,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">508,180</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Vice President and Chief Financial Officer (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">346,539</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">216,070</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">122,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">693,059</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(1) The amount reflected in the
table represents the aggregate grant-date fair value of options computed in accordance with FASB ASC Topic 718 (formerly FAS
123R).&nbsp;&nbsp;We estimate the fair value of each option on the grant date using the Black-Scholes model with the
following assumptions:&nbsp;&nbsp;To determine the risk-free interest rate, we utilized the U.S. Treasury yield curve in
effect at the time of grant with a term consistent with the expected term of our awards.&nbsp;&nbsp;The expected term of the
options granted is in accordance with Staff Accounting Bulletin 107 which is based on the average between vesting term and
contractual term.&nbsp;&nbsp;The expected dividend yield reflects our current and expected future policy for dividends on our
common stock.&nbsp;&nbsp;The expected stock price volatility for our stock options was calculated by examining a pro rata
percentage of historical volatilities for similar publicly traded industry peers, along with the trading history for our
Common Stock.&nbsp;&nbsp;We will continue to analyze the expected stock price volatility and expected term
assumptions.&nbsp;&nbsp;We have not experienced any material forfeitures of stock options and as such, have not established a
forfeiture rate.&nbsp;&nbsp;Since the stock options currently outstanding are primarily held by our senior management and
directors, we will continue to evaluate the effects of such future potential forfeitures, as they may arise, to evaluate
our estimated forfeiture rate.&nbsp;&nbsp;The material terms of the options held are described in the footnotes to the
Outstanding Equity Awards at Fiscal-Year End table.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(2) Reflects annual bonuses for 2016,
which were paid in February 2017, and annual bonuses for 2015, which were paid in February 2016.&nbsp;&nbsp;Annual bonuses are
determined based on the target bonuses established in each named executive officers&rsquo; employment agreement (described below),
subject to achievement of pre-established performance goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(3) Other compensation consists entirely
of employer contributions to employee accounts under our 401(k) plan in which our employees are entitled to participate.&nbsp;&nbsp;Such
amounts were earned for services performed in the prior year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(4) Mr.&nbsp;Grossman has served as
our President and Chief Executive Officer since October 2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(5) Dr.&nbsp;Mond has served as our
Executive Vice President, Chief Scientific Officer and Chief Medical Officer since July 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(6) Mr.&nbsp;Lenz has served as our
Vice President and Chief Financial Officer since May 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Outstanding Equity Awards at Fiscal
Year-End</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The following table sets forth information
regarding unexercised options held by each of the named executive officers as of December 31, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Option Awards</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>(Number of Securities
Underlying Unexercised Options)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Name</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Number of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shares</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Underlying Exercisable</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Options</B></P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Number of</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shares</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Underlying Unexercisable Options</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(1)</B></P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option Exercise Price</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option Expiration Date</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 30%; font-weight: bold; text-align: left">Adam S. Grossman</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; text-align: right">42,021</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">2.68</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: right">7/16/2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Director, President and&nbsp;Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">269,410</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7.56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2/13/2022</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,343</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,966</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2/21/2024</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10.80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1/30/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,812</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,688</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9.37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10/9/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,984</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1/28/2026</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Dr.&nbsp;James Mond</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">134,705</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7.56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7/18/2022</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Executive Vice President,&nbsp;Chief Scientific Officer and&nbsp;Chief Medical Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,960</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,631</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2/21/2024</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,541</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,459</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10.80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1/30/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9.37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10/9/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1/28/2026</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Brian Lenz</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7.56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5/1/2022</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left">Vice President and Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,647</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,385</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2/21/2024</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10.80</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1/30/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,708</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,292</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9.37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10/9/2025</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1/28/2026</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(1) With respect to option grants that
have unvested options outstanding, each option grant vests over four years, with 25% vesting on the first anniversary of the grant
date and the remaining 75% vesting in equal monthly installments over the following 36 months of continued employment, subject
to accelerated vesting upon certain terminations of employment in connection with a change in control (as described below under
&ldquo;Agreements with Executive Officers&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Agreements with Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>President and Chief Executive Officer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On January 28, 2016, the Company entered
into an amended and restated employment agreement with our President and Chief Executive Officer, Adam S. Grossman, for an initial
term of three years, with automatic three year renewal periods unless notice is provided 90 days in advance of the expiration of
the then-current term.&nbsp;&nbsp;The amended and restated employment agreement provides that Mr.&nbsp;Grossman is (i) entitled
to a base salary of $480,000 annually, (ii) eligible for an annual cash bonus with a target equal to 50% of Mr.&nbsp;Grossman&rsquo;s
base salary, based upon the attainment of certain performance objectives mutually agreed to by the Board and Mr.&nbsp;Grossman;
and (iii) eligible to participate in our standard benefits package.&nbsp;&nbsp;Mr.&nbsp;Grossman&rsquo;s amended and restated employment
agreement further provides, in the event (i) that Mr.&nbsp;Grossman is terminated by the Company &ldquo;without cause&rdquo; (as
such term is defined under the amended and restated agreement), (ii) that Mr.&nbsp;Grossman resigns for &ldquo;good reason&rdquo;
(as such term is defined under the amended and restated agreement), or (iii) of any termination resulting from a &ldquo;change
of control&rdquo; (as such term is defined under the amended and restated agreement) in which the existing employment agreement
is not assumed by the successor to the Company, he would be entitled to (in addition to any accrued but unpaid benefits) (A) a
severance payment equal to one year of base salary plus &ldquo;target bonus&rdquo; (as such term is defined under the amended and
restated agreement) payable in 12 monthly, equal installments after termination or, if such termination is immediately preceding
or within two years following a change of control, a severance payment equal to 18 months&rsquo; base salary plus one and a half
times the &ldquo;target bonus&rdquo; payable in a lump sum, (B) prior year target bonus (if unpaid), and (C) accelerated vesting
of stock options granted to Mr. Grossman on January 28, 2016, as described in the following sentence.&nbsp;&nbsp;If Mr. Grossman
(x) is terminated &ldquo;without cause&rdquo; or Mr. Grossman resigns for &ldquo;good reason,&rdquo; in either case immediately
preceding or within two years after a &ldquo;change in control,&rdquo; such stock options will accelerate in full, and (y) is terminated
&ldquo;without cause&rdquo; or Mr. Grossman resigns for &ldquo;good reason&rdquo; (or if Mr. Grossman dies or become disabled),
and clause (x) does not apply, the portion of such stock options that would have vested on or before the first anniversary of such
termination had Mr. Grossman remained employed will accelerate.&nbsp;&nbsp;Furthermore, any payments, awards, benefits or distributions
due to Mr.&nbsp;Grossman under the amended and restated agreement as a result of a transaction described in Section 280G(b)(2)(A)(i)
of the Code, may be subject to a cutback as set forth in the amended and restated agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On June 6, 2017, the Board, upon the
recommendation of the Compensation Committee, also approved, contingent upon the closing of the Biotest transaction, the amendment
of Mr. Grossman&rsquo;s amended and restated employment agreement to increase the annual bonus payment amount from up to 50% of
his current salary to up to 55% of his current salary. As of October 11, 2017, this amendment had not yet been entered into between
the Company and Mr. Grossman.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The amended and restated employment
agreement also contains a mutual nondisparagement covenant and customary noncompetition, nonsolicitation, confidentiality, and
intellectual property covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Executive Vice President, Chief
Scientific Officer and Chief Medical Officer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On January 28, 2016, the Company entered
into amended and restated employment agreement with our Executive Vice President, Chief Scientific Officer and Chief Medical Officer,
James Mond, M.D., Ph.D., for an initial term of three years, with automatic three year renewal periods unless notice is provided
90 days in advance of the expiration of the then-current term.&nbsp;&nbsp;The amended and restated employment agreement provides
that Dr.&nbsp;Mond is (i) entitled to a base salary of $350,000 annually, (ii) eligible for annual bonus payments of up to 35%
of his then-current base salary, based upon the achievement of certain milestones as mutually agreed by our President and Chief
Executive Officer and Dr.&nbsp;Mond and approved by the Company&rsquo;s Compensation Committee (the &ldquo;Compensation Committee&rdquo;),
and (iii) eligible to participate in our standard benefits package.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Pursuant to the amended and restated
agreement, if a &ldquo;change in control&rdquo; (as such term is defined under the amended and restated agreement) occurs and the
successor to the Company does not assume the amended and restated agreement or, within 12 months following such change in control,
Dr.&nbsp;Mond is terminated &ldquo;without cause&rdquo; (as such term is defined under the amended and restated agreement) or Dr.&nbsp;Mond
resigns for &ldquo;good reason&rdquo; (as such term is defined under the amended and restated agreement), Dr.&nbsp;Mond would be
entitled to (in addition to any accrued but unpaid benefits) (i) continued base salary and health insurance and welfare benefits
for a period of 12 months (except that such health insurance and welfare benefit continuation will cease if Dr. Mond begins regular,
full-time employment with another employer and is eligible to commence benefits coverage with such employer), (ii) the annual bonus
for the period ending December 31 in which such termination or resignation occurs, and (iii) accelerated vesting of all stock options
granted to him prior to or after the date of the amended and restated agreement.&nbsp;&nbsp;(If the Company terminates Dr.&nbsp;Mond
&ldquo;without cause&rdquo; or Dr.&nbsp;Mond terminates his employment for &ldquo;good reason,&rdquo; in each case absent a &ldquo;change
in control,&rdquo; Dr.&nbsp;Mond would receive only the payments described in clause (i) for a period of six months following the
date of such termination.)&nbsp;&nbsp;If Dr.&nbsp;Mond is terminated as a result of his death, Dr.&nbsp;Mond&rsquo;s estate would
continue to receive his base salary for 60 days following such termination.&nbsp;&nbsp;Furthermore, any payments, awards, benefits
or distributions due to Dr.&nbsp;Mond under the amended and restated agreement as a result of a transaction described in Section
280G(b)(2)(A)(i) of the Code, may be subject to a cutback as set forth in the amended and restated agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On June 6, 2017, the Board, upon the
recommendation of the Compensation Committee, also approved, contingent upon the closing of the Biotest transaction, the amendment
of Dr. Mond&rsquo;s amended and restated employment agreement to (i) increase the annual bonus payment amount from up to 35% of
his current salary to up to 40% of his current salary, and (ii) increase the severance compensation payable in the event that Dr.
Mond&rsquo;s employment is terminated for &ldquo;Good Reason&rdquo; or by the Company without &ldquo;Cause&rdquo; (each as defined
in the amended and restated employment agreement) from six months to nine months from the date of termination. As of October 11,
2017, this amendment had not yet been entered into between the Company and Dr. Mond.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The amended and restated employment
agreement also contains a mutual nondisparagement covenant and customary noncompetition, nonsolicitation, confidentiality, and
intellectual property covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Vice President and Chief Financial
Officer</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On January 28, 2016, the Company entered
into an amended and restated employment agreement with our Vice President and Chief Financial Officer, Mr.&nbsp;Lenz, for an initial
term of three years, with automatic three year renewal periods unless notice is provided 90 days in advance of the expiration of
the then-current term.&nbsp;&nbsp;The amended and restated employment agreement provides that Mr. Lenz is (i) entitled to a base
salary of $350,000 annually, (ii) eligible for annual bonus payments of up to 35% of his then-current base salary, based upon the
achievement of certain milestones as mutually agreed by our President and Chief Executive Officer and Mr. Lenz and approved by
the Compensation Committee, (iii) eligible to participate in our standard benefits package, and (iv) entitled to reimbursement
for expenses associated with the maintenance of his CPA license and customary continuing professional education courses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Pursuant to the amended and restated
agreement, if a &ldquo;change in control&rdquo; (as such term is defined under the amended and restated agreement) occurs and the
successor to the Company does not assume the amended and restated agreement or, within 12 months following such change in control,
Mr. Lenz is terminated &ldquo;without cause&rdquo; (as such term is defined under the amended and restated agreement) or Mr. Lenz
resigns for &ldquo;good reason&rdquo; (as such term is defined under the amended and restated agreement), Mr. Lenz would be entitled
to (in addition to any accrued but unpaid benefits) (i) continued base salary and health insurance and welfare benefits for a period
of 12 months (except that such health insurance and welfare benefit continuation will cease if Mr. Lenz begins regular, full-time
employment with another employer and is eligible to commence benefits coverage with such employer), (ii) the annual bonus for the
period ending December 31 in which such termination or resignation occurs, and (iii) accelerated vesting of all stock options granted
to him prior to or after the date of the amended and restated agreement.&nbsp;&nbsp;(If the Company terminates Mr. Lenz &ldquo;without
cause&rdquo; or Mr. Lenz terminates his employment for &ldquo;good reason,&rdquo; in each case absent a &ldquo;change in control,&rdquo;
Mr. Lenz would receive only the payments described in clause (i) for a period of six months following the date of such termination.)&nbsp;&nbsp;If
Mr. Lenz is terminated as a result of his death, Mr. Lenz&rsquo;s estate would continue to receive his base salary for 60 days
following such termination.&nbsp;&nbsp;Furthermore, any payments, awards, benefits or distributions due to Mr. Lenz under the amended
and restated agreement as a result of a transaction described in Section 280G(b)(2)(A)(i) of the Code, may be subject to a cutback
as set forth in the amended and restated agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On June 6, 2017, the Board, upon the
recommendation of the Compensation Committee, also approved, contingent upon the closing of the Biotest transaction, the amendment
of Mr. Lenz&rsquo;s amended and restated employment agreement to (i) increase the annual bonus payment amount from up to 35% of
his current salary to up to 40% of his current salary, and (ii) increase the severance compensation payable in the event that Mr.
Lenz&rsquo;s employment is terminated for &ldquo;Good Reason&rdquo; or by the Company without &ldquo;Cause&rdquo; (each as defined
in the amended and restated employment agreement) from six months to nine months from the date of termination. As of October 11,
2017, this amendment had not yet been entered into between the Company and Mr. Lenz.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The amended and restated employment
agreement also contains a mutual nondisparagement covenant and customary noncompetition, nonsolicitation, confidentiality, and
intellectual property covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The following table sets forth the
compensation paid to non-executive directors for the year ended December 31, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Fees Earned</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>or Paid in</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Cash ($)</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(1)</B></P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Option</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Awards ($)</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(2) (3)</B></P></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total ($)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left">Steven A. Elms (4)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">64,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">26,411</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">90,411</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Jerrold B. Grossman, D.P.S.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,411</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dov A. Goldstein, M.D. (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,411</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Eric I. Richman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,411</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Bryant E. Fong (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77,411</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lawrence P. Guiheen</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,411</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">78,411</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(1) The amounts reflected in this column
represent the cash fees earned by non-executive directors for services during 2016.&nbsp;&nbsp;Fees earned are based on membership
on the Board, committee membership and committee leadership positions.&nbsp;&nbsp;Please refer to our general policy on compensation
of the members of our Board below in the section entitled &ldquo;General Policy Regarding Compensation of Directors.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(2) The amounts in this column represent
the aggregate grant date fair value for stock option awards issued during 2016 computed in accordance with FASB ASC Topic 718.&nbsp;&nbsp;Please
see footnote (2) to the Summary Compensation Table below for relevant assumptions made.&nbsp;&nbsp;As of December 31, 2016, the
aggregate number of option awards outstanding (vested and unvested) for Mr.&nbsp;Elms was 43,837, for Dr.&nbsp;Grossman was 108,861,
for Dr.&nbsp;Goldstein was 43,837, for Mr.&nbsp;Richman was 68,144, for Mr.&nbsp;Fong was 43,837 and for Mr.&nbsp;Guiheen was 43,837.&nbsp;&nbsp;These
options vest in equal monthly installments over a 24-month period following the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(3) On January 28, 2016, the Company
issued to each non-executive director an option to purchase 9,000 shares of the Company&rsquo;s Common Stock.&nbsp;&nbsp;Each option
granted to such non-executive directors has an exercise price of $5.96, the closing price of the Company&rsquo;s Common Stock on
Nasdaq on January 28, 2016, and vests in 24 equal monthly installments, becoming fully vested on the second anniversary of the
date of grant. Each option shall terminate on the earlier of (i) February 14, 2027 and (ii) the first anniversary of such director&rsquo;s
ceasing to serve on the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(4) Board fees and option grants paid
to Mr.&nbsp;Elms and Dr.&nbsp;Goldstein are assigned to Aisling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(5) Board fees and option grants paid
to Mr.&nbsp;Fong are assigned to Biomark.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>General Policy Regarding Compensation
of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Pursuant to a Board-approved compensation
program, in 2016, each director of the Company was paid an annual cash retainer of $34,000.&nbsp;&nbsp;The Chairman and Vice-Chairman
were each paid an additional fee of $30,000.&nbsp;&nbsp;The Chairman of the Audit Committee, the Chairman of the Compensation Committee
and the Chairman of the Governance and Nominations Committee were each paid $15,000, $10,000 and $10,000, respectively.&nbsp;&nbsp;Members
of the Audit Committee, the Compensation Committee and the Governance and Nominations Committee were each paid a retainer of $8,000,
$5,000 and $4,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On February 14, 2017, the Board approved
a Board compensation program pursuant to which each director of the Company will be paid an annual cash retainer of $35,020.&nbsp;&nbsp;The
Chairman and Vice-Chairman will each be paid an additional fee of $30,900.&nbsp;&nbsp;The Chairman of the Audit Committee, the
Chairman of the Compensation Committee and the Chairman of the Governance and Nominations Committee will each be paid $15,450,
$10,300 and $10,300, respectively.&nbsp;&nbsp;Members of the Audit Committee, the Compensation Committee and the Governance and
Nominations Committee will each be paid a retainer of $8,240, $5,150 and $4,120, respectively.&nbsp;&nbsp;The Company will disburse
to each member of the Board 50% of each member&rsquo;s annual Board and Committee fees on January 1 and the remaining 50% on July
1 of each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Option grant awards to non-employee
directors are determined by the Board in its sole, good faith discretion.&nbsp;&nbsp;On February 14, 2017, the Compensation Committee,
after consultation with a compensation consultant, recommended to the Board, and the Board approved, the grant of options to purchase
10,000 shares of Common Stock to each of its non-executive directors.&nbsp;&nbsp;Each option granted to such non-executive directors
has an exercise price of $5.00, the closing price of the Company&rsquo;s Common Stock on Nasdaq on January 28, 2016, and vests
in 24 equal monthly installments, becoming fully vested on the second anniversary of the date of grant.&nbsp;&nbsp;Each option
shall terminate on the earlier of (i) February 14, 2027 and (ii) the first anniversary of such director&rsquo;s ceasing to serve
on the Board. Additionally, on June 6, 2017, On June 6, 2017, the Board, upon the recommendation of the Compensation Committee,
also approved, contingent and effective upon the closing of the Biotest transaction, the grant of stock options to purchase shares
of the Company&rsquo;s Common Stock, in the following amounts: (i) 583,224 option shares were approved for grant to Mr. Grossman;
(ii) 118,861 option shares were approved for grant to Dr. Grossman; (iii) 78,144 option shares were approved for grant to Mr. Richman;
and (iv) 53,837 option shares were approved for grant to each of Mr. Elms, Dr. Goldstein, Mr. Fong and Mr. Guiheen. Each option
share has an exercise price equal to $3.66, the fair market value of the Common Stock as determined by the closing price of the
Common Stock on the Nasdaq Stock Market on June 6, 2017. Additionally, the options granted to each director shall each vest in
equal monthly installments over 24 months, except the option grant to Mr. Grossman which shall vest over four years with 25% vesting
on the one year anniversary of the date of grant and the remaining 75% vesting monthly in equal installments over the next three
years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Retirement Benefits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The only retirement benefit that the
Company offers is our 401(k) plan, which is available to all employees.&nbsp;&nbsp;The Company currently provides a 3% match on
an employee&rsquo;s contributions to the plan, up to the applicable limit set forth in the Internal Revenue Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Security
Ownership of Certain Beneficial Owners and Management</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The following table sets forth information
regarding the beneficial ownership (as such term is defined in Rule 13d-3 under the Exchange Act) of our Common Stock as of October
6, 2017, except as noted below, by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each of our directors;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each of our named executive officers (as defined
in Item 402(m)(2) of Regulation S-K);</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each person, or group of affiliated persons, who
is known by us to beneficially own more than 5% of our Common Stock; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">all of our directors and executive officers as a
group.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;Shares of our Common Stock subject
to options, warrants, or other rights currently exercisable or exercisable within 60 days of October 6, 2017 are deemed to be beneficially
owned and outstanding for purposes of computing the share ownership and percentage of the person holding such options, warrants
or other rights, but are not deemed outstanding for computing the percentage of any other person.&nbsp;&nbsp;Except as indicated
in the footnotes below, each holder listed below possesses sole voting and investment power with respect to their shares and such
holder&rsquo;s address is c/o ADMA Biologics, Inc., 465 State Route 17 South, Ramsey, New Jersey 07446.&nbsp;&nbsp;An asterisk
(*) denotes less than 1%.&nbsp;&nbsp;The information is not necessarily indicative of beneficial ownership for any other purpose.
Percentage ownership calculations for beneficial ownership are based on 17,202,244 shares of Common Stock outstanding as of October
6, 2017.&nbsp;&nbsp;This table does not reflect the 8,591,160 shares of outstanding Non-Voting Common Stock acquired by BPC in
the Biotest Transaction which are subject to a lock-up for six months after closing of the Biotest Transaction. This table does
not give effect to any transactions by any of the persons below that have occurred after October 6, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares Beneficially Owned</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name of Beneficial Owner</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">Number</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: right; border-bottom: Black 1pt solid">Percent (1)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 60%; text-align: left">Dr.&nbsp;Jerrold B. Grossman (2)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">203,818</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">1.18</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adam S. Grossman (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,285,452</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.29</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Steven A. Elms (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,666,224</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.24</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dov A. Goldstein, M.D. (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,666,224</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.24</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Eric I. Richman (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90,924</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Bryant E. Fong (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,491,357</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.64</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Lawrence P. Guiheen (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,053</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Brian Lenz (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156,646</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">James Mond, M.D., Ph.D. (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198,573</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.14</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dr. Bernhard Ehmer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">All directors and executive officers as a group (10 persons)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,215,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39.25</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Owners of more than 5% of our Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Biotest Pharmaceuticals Corporation (11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,295,580</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24.97</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Aisling Capital II LP (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,724,277</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.50</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Biomark Capital Fund IV LP (13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,491,357</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.64</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Consonance Capital Management LP (14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,273,933</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.41</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">* Less than 1%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">___________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(1) Based on 17,202,244 shares of Common
Stock outstanding. Excludes 8,591,160 shares of outstanding Non-Voting Common Stock acquired by BPC in the Biotest Transaction
which are subject to a lock-up for six months after closing of the Biotest Transaction</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(2) Includes 38,294 shares owned by
the Genesis Foundation (&ldquo;Genesis&rdquo;).&nbsp;&nbsp;Dr.&nbsp;Grossman is the President of Genesis.&nbsp;&nbsp;Also includes
options to purchase 88,438 shares of Common Stock but does not include options to purchase 101,099 shares of Common Stock, which
have not vested and will not vest within 60 days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(3) Includes 580,957 shares are owned
by Hariden, LLC (&ldquo;Hariden&rdquo;) and 259,000 shares owned by Areth.&nbsp;&nbsp;Mr.&nbsp;Grossman is the managing member
of Hariden and a control person of Areth.&nbsp;&nbsp;Also includes options to purchase 433,889 shares of Common Stock but does
not include options to purchase 690,538 shares of Common Stock which have not vested and will not vest within 60 days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(4) Amount includes options to purchase
58,053 shares Mr. Elms for the benefit of Aisling, but does not include options to purchase 49,621 shares of Common Stock which
have not vested and will not vest within 60 days, which are also held for the benefit of Aisling.&nbsp;&nbsp;Mr.&nbsp;Elms is Aisling&rsquo;s
designee for nomination to the Company&rsquo;s Board.&nbsp;&nbsp;As a Managing Member of Aisling Partners, a control person of
Aisling (see footnote 13), and as a member of the six member investment committee of Aisling&rsquo;s General Partner, Mr.&nbsp;Elms
may be deemed to be the beneficial owner of shares of Common Stock owned of record by Aisling.&nbsp;&nbsp;The address for Mr.&nbsp;Elms
is 888 Seventh Avenue, 12th Floor, New York, New York 10106.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(5) Amount includes options to purchase
58,053 shares held by Dr. Goldstein for the benefit of Aisling, but does not include options to purchase 49,621 shares of Common
Stock which have not vested and will not vest within 60 days, which are also held for the benefit of Aisling.&nbsp;&nbsp;<FONT STYLE="background-color: white">Dr.
Goldstein is a member of the six member investment committee of Aisling GP (as defined below) and, as such, Dr. Goldstein may be
deemed to be the beneficial owner of shares of Common Stock owned of record by Aisling (see footnote 13).&nbsp;&nbsp;Dr. Goldstein
disclaims beneficial ownership of Aisling&rsquo;s investment in the Company, except to the extent of his pecuniary interest therein.&nbsp;&nbsp;</FONT>The
address for Dr.&nbsp;Goldstein is 888 Seventh Avenue, 12th Floor, New York, New York 10106.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(6) Amount includes options to purchase
84,624 shares of Common Stock but does not include options to purchase 68,864 shares of Common Stock which have not vested and
will not vest within 60 days.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(7) Amount includes options to purchase
58,053 shares (and excludes options to purchase 49,621 shares, which have not vested and will not vest within 60 days) held for
the benefit of Biomark.&nbsp;&nbsp;Mr.&nbsp;Fong is Biomark&rsquo;s designee for nomination to the Company&rsquo;s Board.&nbsp;&nbsp;Mr.
Fong is a founding Managing Director and General Partner at Biomark.&nbsp;&nbsp;The address for Mr.&nbsp;Fong is c/o Biomark Capital
Fund IV GP LLC, 537 Steamboat Rd., Suite 200, Greenwich, Connecticut 06830.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(8) Amount includes options to purchase
58,053 shares, does not include options to purchase 49,621 shares which have not vested and will not vest within 60 days, and includes
1,000 shares held beneficially by the Guiheen Trust.&nbsp;&nbsp;Mr.&nbsp;Guiheen is joint trustee of the Guiheen Trust.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(9) Amount includes options to purchase
148,146 shares, but does not include options to purchase 236,798 shares which have not vested and will not vest within 60 days.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(10) Amount includes options to purchase
195,184 shares, but does not include options to purchase 289,908 shares, which have not vested and will not vest within 60 days.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(11) Excludes 8,591,160 shares of ADMA
Non-Voting Common Stock or the 8,591,160 shares of Common Stock underlying the 8,591,160 shares of Non-Voting Common Stock issued
to BPC on June 6, 2017. The address of BPC is 5800 Park of Commerce Blvd., NW, Boca Raton, Florida 33487.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(12) The shares directly held by Aisling
are deemed to be beneficially owned by Aisling Capital Partners, LP (&ldquo;Aisling GP&rdquo;), as general partner of Aisling,
and Aisling Capital Partners, LLC (&ldquo;Aisling Partners&rdquo;), as general partner of Aisling GP, and may be deemed to be beneficially
owned by each of the individual managing members of Aisling Partners.&nbsp;&nbsp;The individual managing members (collectively,
the &ldquo;Aisling Managers&rdquo;) of Aisling Partners are Dr.&nbsp;Andrew Schiff, Mr. Elms and Mr. Dennis Purcell.&nbsp;&nbsp;Aisling
GP, Aisling Partners, and the Aisling Managers may share voting and dispositive power over the shares owned of record by Aisling.&nbsp;&nbsp;Dr.&nbsp;Goldstein
disclaims beneficial ownership of Aisling&rsquo;s investment in the Company, except to the extent of his pecuniary interest therein.&nbsp;&nbsp;The
address for Aisling GP, Aisling Partners, and the Aisling Managers is 888 Seventh Avenue, 12th Floor, New York, New York 10106.&nbsp;&nbsp;The
information in the preceding sentences is based on Aisling&rsquo;s Schedule 13D/A filed with the SEC on January 25, 2017.&nbsp;&nbsp;Amount
includes options to purchase an aggregate of 116,106 shares held by Mr.&nbsp;Elms and Dr.&nbsp;Goldstein for the benefit of Aisling,
but does not include options to purchase an aggregate of 99,242 shares held by Mr.&nbsp;Elms and Dr.&nbsp;Goldstein for the benefit
of Aisling, which have not vested and will not vest within 60 days.&nbsp;&nbsp;Also see footnotes 4 and 5.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(13) The shares directly held by Biomark
are deemed to be beneficially owned by Biomark Capital Fund IV GP LLC (&ldquo;Biomark GP&rdquo;), and each of the individual managing
directors of Biomark GP.&nbsp;&nbsp;The individual managing director (the &ldquo;Biomark Manager&rdquo;) of Biomark GP, who is
a member of the investment committee of Biomark GP, is David S. Wetherell.&nbsp;&nbsp;Biomark GP and the Manager may share voting
and dispositive power over the shares owned of record by Biomark.&nbsp;&nbsp;The address for Biomark GP and the Managers is c/o
Biomark Capital Fund IV GP LLC, 537 Steamboat Rd., Suite 200, Greenwich, CT 06830.&nbsp;&nbsp;The information in the preceding
sentences is based on Biomark&rsquo;s Schedule 13D/A filed with the SEC on January 30, 2017. Amount includes options to purchase
58,053 shares of Common Stock held by Mr.&nbsp;Fong for the benefit of Biomark, but does not include options to purchase 49,621
shares held by Mr.&nbsp;Fong for the benefit of Biomark, which have not vested and will not vest within 60 days.&nbsp;&nbsp;Also
see footnote 7.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">(14) The address of Consonance Capital
Management LP is 1370 Avenue of the Americas, Suite 3301, New York, New York 10019.&nbsp;&nbsp;Share ownership reported above is
based on a Form 13G/A filed by Consonance Capital Management LP on February 13, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our Board is responsible for reviewing
and approving all material transactions with any related party on a continuing basis.&nbsp;&nbsp;Related parties can include any
of our directors or officers, holders of 5% or more of our voting securities and their immediate family members.&nbsp;&nbsp;We
may not enter into a related person transaction unless our Board has reviewed and approved such transaction.&nbsp;&nbsp;We believe
the transactions set forth below were executed on terms no less favorable to us than we could have obtained from unaffiliated third
parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">See &ldquo;Executive Compensation&rdquo;
above for a discussion of director compensation, executive compensation and our named executive officers&rsquo; employment agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>This Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Biotest AG and BPC have contractually committed
to purchase up to an aggregate amount of $12.5 million of shares of Common Stock in this Offering, on a pro-rata basis, at the
public offering price. In addition, certain of our other existing stockholders have also indicated an interest in purchasing shares
of Common Stock in this Offering at the public offering price. Not all of these indications of interests are binding agreements
or commitments to purchase, and thus certain parties may elect not to purchase shares of Common Stock in this Offering. Raymond
James &amp; Associates, Inc. will receive an underwriting discount and commission of 4.0% on the sale of shares of Common Stock
to these existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>2016 Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In connection with the Company&rsquo;s
April 2016 public offering of its Common Stock (the &ldquo;2016 Offering&rdquo;), on May 3, 2016: (i) Adam S. Grossman purchased
200,000 shares of Common Stock of the Company through an entity he controls, (ii) Dr. Jerrold B. Grossman purchased 45,770 shares
of Common Stock of the Company through an entity he controls, (iii) Brian Lenz purchased 2,500 shares of Common Stock of the Company,
and (iv) Dr. James Mond purchased 770 shares of Common Stock of the Company, all at the public offering price of $6.50 (collectively,
the &ldquo;Purchases&rdquo;). On April 22, 2016, the Board approved a waiver of the Company&rsquo;s Code of Conduct and Ethics,
related to its Insider Trading Compliance Program, to allow for the Purchases in the 2016 Offering by the above individuals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Shared Services Agreement and Other
Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Our headquarters are located in approximately
4,200 square feet of space at 465 State Route 17 South, Ramsey, New Jersey. Currently we operate under a Shared Services Agreement
with Areth for the office, warehouse space and certain related services and have the ability to cancel this agreement upon 30 days&rsquo;
notice.&nbsp;&nbsp;Areth is a company controlled by Dr.&nbsp;Jerrold B. Grossman, our Vice Chairman, and Adam S. Grossman, our
President and Chief Executive Officer, and we pay monthly fees for the use of such office space and for other information technology,
general warehousing and administrative services.&nbsp;&nbsp;Rent under the shared services agreement is $16,000 per month. Effective
October 1, 2017, rent under the Shared Services Agreement decreased to $10,000 per month.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We maintain deposits and other accounts
at Pascack Bankcorp, a bank of which Dr.&nbsp;Grossman served as a director through January 2016, and which was approximately 5%-owned
by members of the Grossman family.&nbsp;&nbsp;Pascack Bankcorp was acquired by Lakeland Bancorp, Inc. in January 2016 and Dr.&nbsp;Grossman
is currently a member of the Corporate Advisory Council of Lakeland Bancorp Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Director Independence</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">Our
Board has determined that each of Mr.&nbsp;Richman, Dr.&nbsp;Goldstein, Mr.&nbsp;Fong and Mr.&nbsp;Guiheen are independent as that
term is defined under the applicable independence listing standards of </FONT>Nasdaq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Description
of Securities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The total number of shares of capital
stock that the Company has authority to issue is 93,591,160, divided into three classes consisting of (i) 75,000,000 shares of
Common Stock, (ii) 8,591,160 shares of Non-Voting Common Stock, and (iii) 10,000,000 shares of preferred stock, par value $0.0001
par value (&ldquo;Preferred Stock&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">As of October 11, 2017, there were 25,793,404
shares of Common Stock issued and outstanding and an additional 3,471,651 shares issuable upon exercise of outstanding options
and warrants.&nbsp;Of the 3,471,651 shares of Common Stock issuable upon exercise of outstanding options and warrants,&nbsp;2,768,184
shares are issuable to officers and directors of the Company, 514,608 shares are issuable to other employees of the Company, and
188,859 shares are issuable to current and former noteholders of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">As of October 11, 2017, there were 8,591,160
shares of Non-Voting Common Stock issued and outstanding. All outstanding shares of Non-Voting Common Stock were issued to BPC
in connection with the closing of the Biotest Transaction on June 6, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">As of October 11, 2017, there were no
shares of Preferred Stock issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Voting </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The holders of Common Stock are entitled
to one vote per share on all matters submitted to a vote of the Company&rsquo;s stockholders.&nbsp;&nbsp;The holders of a majority
of the outstanding shares of Common Stock constitute a quorum at a meeting of stockholders for the transaction of any business.&nbsp;&nbsp;Directors
are elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to
vote on the election of directors.&nbsp;&nbsp;Any other action is authorized by a majority of the votes cast, except where the
Delaware General Corporation Law, or DGCL, prescribes a different percentage of votes and/or a different exercise of voting power.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Dividends</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Subject to applicable law and the rights,
if any, of the holders of any outstanding series of Preferred Stock, dividends may be declared and paid on the Common Stock out
of funds legally available therefor at such times and in such amounts as the Board, in its discretion, shall determine; provided,
however, that simultaneously with the declaration and payment of any dividends on the Non-Voting Common Stock, a like dividend
in form and amount per share shall also be declared and paid on the Common Stock (except that, if such dividend on the Non-Voting
Common Stock is paid in the form of shares of Common Stock or Non-Voting Common Stock or rights or options to acquire Common Stock
or Non-Voting Common Stock, the holders of shares of Common Stock shall receive equivalent shares of Common Stock or rights or
options to acquire Common Stock, as the case may be).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Distributions Upon Dissolution,
Liquidation or Winding Up</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Upon the dissolution, liquidation or
winding up of the Company, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the holders
of the Common Stock shall be entitled to receive the assets of the Company available for distribution to its stockholders ratably
in proportion to the number of shares of Common Stock held by them.&nbsp;&nbsp;The holders of common stock do not have cumulative
or preemptive rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Non-Voting Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Voting </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Except as otherwise required by applicable
law, shares of Non-Voting Common Stock shall have no voting power and the holders thereof, as such, are not entitled to vote on
any matter that is submitted to a vote of the stockholders of the Company; provided, however, that for so long as any shares of
Non-Voting Common Stock are outstanding, the Company shall not, without the prior vote of the holders of at least a majority of
the shares of Non-Voting Common Stock then outstanding (voting separately as a single class), amend, alter or repeal, whether by
merger, consolidation or otherwise (other than in connection with a Liquidation Event (as defined in the Stockholders Agreement
of the Company, by and among the Company, BPC and such other persons who become a party thereto, dated as of June 6, 2017 (the
&ldquo;Stockholders Agreement&rdquo;)), (i) Section 4.3 of the Company&rsquo;s A&amp;R Certificate of Incorporation or (ii) any
other provision of the A&amp;R Certificate of Incorporation to alter or change the powers, preferences, or special rights of the
shares of Non-Voting Common Stock in an adverse manner to the powers, preferences or special rights of the shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Dividends</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Subject to applicable law and the rights,
if any, of the holders of any outstanding series of Preferred Stock, dividends may be declared and paid on the Non-Voting Common
Stock out of funds legally available therefor at such times and in such amounts as the Board in its discretion shall determine;
provided, however, that simultaneously with the declaration and payment of any dividends on the Common Stock, a like dividend in
form and amount per share shall also be declared and paid on the Non-Voting Common Stock (except that, if (i) such dividend on
the Common Stock is paid in the form of shares of Common Stock or rights or options to acquire Common Stock, (ii) the holders of
Non-Voting Common Stock would own more than 30% of the outstanding Common Stock following the issuance of such Common Stock dividend
and (iii) the Standstill Period (as defined in the Stockholders Agreement) has not expired or been earlier terminated pursuant
to and in accordance with the terms and conditions of the Stockholders Agreement, the holders of shares of Non-Voting Common Stock
shall receive equivalent shares of Non-Voting Common Stock or rights or options to acquire Non-Voting Common Stock, as the case
may be).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Distributions Upon Dissolution,
Liquidation or Winding Up</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Upon the dissolution, liquidation or
winding up of the Company, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the holders
of the Non-Voting Common Stock shall be entitled to receive the assets of the Company available for distribution to its stockholders
ratably in proportion to the number of shares of Common Stock held by them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Conversion Rights of Non-Voting
Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Non-Voting Common Stock is convertible
into Common Stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">upon the earliest to occur of (1) the
expiration or earlier termination of the Standstill Period (as defined in the Stockholders Agreement), (2) immediately prior to
the consummation of any Liquidation Event (as defined in the Stockholders Agreement) and (3) immediately prior to the taking of
any action by the Board or earlier record date for any vote of stockholders in connection with any insolvency, voluntary or involuntary
bankruptcy, liquidation or assignment for the benefit of creditors of the Company or termination of the Company&rsquo;s status
as a reporting company under the Exchange Act;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">upon consummation of a Permitted Sale
(as defined in the Company&rsquo;s A&amp;R Certificate of Incorporation);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">at the option of the holder thereof,
if (1) it is the subject of a legally binding sale agreement to be sold in a transaction constituting a Permitted Sale, (2) it
is required to be registered under the Securities Act pursuant to the terms of such sale agreement, (3) the Common Stock into which
such share otherwise would automatically convert upon the consummation of such Permitted Sale constitutes a &ldquo;Registrable
Security&rdquo; under the Registration Rights Agreement, (4) the holder delivers a legally binding agreement not to vote the Common
Stock into which such share is converted until the earlier of the consummation of such Permitted Sale or the termination of the
Standstill Period, and (5) the holder follows certain other notice procedures necessary to exercise its optional conversion rights;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">at the option of the holder thereof,
if (1) it intends and irrevocably commits to the Company to use its reasonable efforts to sell such Common Stock in the public
market within 60 days of such notice and such sale constitutes a Permitted Sale (a &ldquo;Market Sale&rdquo;); (2) it has executed
and delivered to the Company a legally binding written agreement enforceable by the Company that, prior to the earlier of (A) the
consummation of such Market Sale and (B) the expiration or earlier termination of the Standstill Period in accordance with and
pursuant to the terms and conditions of the Stockholders Agreement, such holder shall not vote any of the Common Stock issued to
such holder upon conversion of such converted share of non-voting Common Stock; (3) such Market Sales shall be conducted in compliance
with all applicable requirements of the Securities Act; and (4) it follows certain other notice procedures necessary to exercise
its optional conversion rights; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">at the option of the holder thereof,
if (1) the Company issues additional shares of Common Stock (a &ldquo;Dilutive Issuance&rdquo;), (2) as a result of such Dilutive
Issuance, the percentage of the voting power of the Company represented by all shares of Common Stock held by BPC immediately following
the Dilutive Issuance is lower than the voting percentage of all shares of Common Stock held by BPC immediately prior to the Dilutive
Issuance, and (3) the holder follows certain other notice procedures necessary to exercise its optional conversion rights; provided,
however, that the maximum number of shares of Non-Voting Common Stock that may be converted in respect of a Dilutive Issuance is
the number of shares that, upon conversion, results in the voting percentage of all shares of Common Stock held by BPC immediately
following such conversion being equal to the voting percentage of all shares of Common Stock held by BPC immediately prior to the
Dilutive Issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">No shares of Preferred Stock are currently
outstanding, and the Company has no current plans to issue Preferred Stock.&nbsp;&nbsp;The issuance of shares of Preferred Stock,
or the issuance of rights to purchase Preferred Stock, could be used to discourage an unsolicited acquisition proposal.&nbsp;&nbsp;For
example, a business combination could be impeded by the issuance of a series of Preferred Stock containing class voting rights
that would enable the holder or holders of such series to block any such transaction.&nbsp;&nbsp;Alternatively, a business combination
could be facilitated by the issuance of a series of Preferred Stock having sufficient voting rights to provide a required percentage
vote of the Company&rsquo;s stockholders.&nbsp;&nbsp;In addition, under some circumstances, the issuance of Preferred Stock could
adversely affect the voting power and other rights of the holders of Common Stock.&nbsp;&nbsp;Although prior to issuing any series
of Preferred Stock the Board is required to make a determination as to whether the issuance is in the best interests of the Company&rsquo;s
stockholders, the board could act in a manner that would discourage an acquisition attempt or other transaction that some, or a
majority, of the stockholders might believe to be in their best interests or in which the stockholders might receive a premium
for their stock over prevailing market prices of such stock.&nbsp;&nbsp;The Board does not presently intend to seek stockholder
approval prior to any issuance of currently authorized Preferred Stock, unless otherwise required by law or applicable stock exchange
requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In May 2016, the Company issued to
Oxford warrants to purchase an aggregate of up to 24,800 shares of the Company&rsquo;s Common Stock at an exercise price equal
to $6.37 per share. The warrants became exercisable on May 13, 2016 for cash or by net exercise and will expire seven years after
their issuance on May 13, 2023. In connection with the LSA with Oxford, on June 19, 2015, the Company issued to Oxford a seven
year warrant, expiring on June 19, 2022, to purchase 74,309 shares of Common Stock at an exercise price of $8.51 per share. In
connection with the Company&rsquo;s prior loan facility with Hercules, on December 21, 2012, the Company issued to Hercules a warrant
to purchase 31,750 shares of Common Stock with an exercise price of $7.56, subject to customary anti-dilution adjustments. In connection
with the Company&rsquo;s prior loan facility, the Company issued to Hercules a warrant to purchase 23,200 and 34,800 shares of
Common Stock of the Company in February and December 2014, respectively, with an exercise price set at the lower of (i) $7.50 per
share or (ii) the price per share of the next round of financing from the expiration of the exercise price adjustment, subject
to customary anti-dilution adjustments. The warrant expires after 10 years and has piggyback registration rights with respect to
the shares of Common Stock underlying the warrant. The down round warrant protection feature resulting in the warrant liability&rsquo;s
quarterly &ldquo;mark-to-market&rdquo; valuation has terminated as of the end of the one-year period following the amended loan
closing on February 24, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">As consideration for the Credit
Agreement, the Company has issued, on October 10, 2017, the Tranche
One Warrant. The Tranche One Warrant has (i) an exercise price equal to $3.10, which is the trailing 10-day VWAP of
the Company&rsquo;s Common Stock prior to October 10, 2017, and (ii) an expiration date of October 10, 2024. The
Tranche One Warrant is exercisable for  338,710 shares of Common Stock, or 3.5% of the Tranche One Loan. In the event that
the Tranche Two Loan is issued to the Company, the Company shall issue the Tranche Two Warrant to purchase such number of shares of Common Stock equal to 3.5% of the Tranche Two
Loan, which shall have an exercise price equal to the trailing 10-day VWAP of the Common Stock prior to the issuance date of
the Tranche Two Warrant and an expiration date equal to the seven year anniversary of the issuance of the Tranche Two
Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Registration Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">At the closing of the Biotest Transaction,
the Company entered into the Registration Rights Agreement with BPC, pursuant to which BPC, and/or its affiliate(s), will have,
among other things, certain registration rights under the Securities Act with respect to its shares of the Company&rsquo;s Common
Stock, subject to certain transfer restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Indemnification of Directors and
Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Company&rsquo;s directors and officers
are indemnified as provided by the Delaware General Corporation Law, the Company&rsquo;s A&amp;R Certificate of Incorporation,
and the Company&rsquo;s Amended and Restated Bylaws. The Company has been advised that, in the opinion of the SEC, indemnification
for liabilities arising under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities is asserted by one of the Company&rsquo;s
directors, officers, or controlling persons in connection with the securities being registered, the Company will, unless in the
opinion of its legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification
is against public policy to a court of appropriate jurisdiction. The Company will then be governed by the court&rsquo;s decision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">We are party to indemnification agreements
with each of our directors and officers. These agreements require us to, among other things, indemnify our directors and officers
against certain liabilities which may arise by reason of their status or service as directors or officers to the fullest extent
permitted by applicable laws. These indemnification provisions and the indemnification agreements are sufficiently broad to permit
indemnification of our officers and directors for liabilities, including reimbursement of expenses incurred, arising under the
Securities Act. The Company also maintains director and officer liability insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Delaware Anti-Takeover Law</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Company is subject to the provisions
of Section 203 of the DGCL. Section 203 prohibits publicly held Delaware corporations from engaging in a &ldquo;business combination&rdquo;
with an &ldquo;interested stockholder&rdquo; for a period of three years after the date of the transaction in which the person
became an interested stockholder, unless the business combination is approved in a prescribed manner.&nbsp;&nbsp;A &ldquo;business
combination&rdquo; includes mergers, asset sales and other transactions resulting in a financial benefit to the interested stockholder.&nbsp;&nbsp;Subject
to certain exceptions, an &ldquo;interested stockholder&rdquo; is a person who, together with affiliates and associates, owns,
or within three years did own, 15% or more of the corporation&rsquo;s voting stock.&nbsp;&nbsp;These provisions could have the
effect of delaying, deferring or preventing a change of control of the Company or reducing the price that certain investors might
be willing to pay in the future for shares of the Company&rsquo;s stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Staggered Board; Removal of Directors;
Certificate of Incorporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Company&rsquo;s A&amp;R Certificate
of Incorporation divides the Company&rsquo;s board of directors into three classes with staggered three-year terms. Only one class
of directors will be elected at each annual meeting of the Company&rsquo;s stockholders, with the other classes continuing for
the remainder of their respective three year terms. Except as the DGCL may otherwise require, any newly created directorships or
vacancies on the Board may be filled only by the board of directors, but subject to the rights of holders of any series of Preferred
Stock and to the terms and conditions of the Stockholders Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Company&rsquo;s A&amp;R Certification
Incorporation provides that (i) all stockholder actions must be effected at a duly called meeting of the stockholders and (ii)
stockholders may not adopt actions by written consent without a meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The combination of these provisions
will make it more difficult for the Company&rsquo;s existing stockholders to replace the Board as well as for another party to
obtain control of the Company by replacing the Board. Since the board of directors has the power to retain and discharge the officers,
these provisions could also make it more difficult for existing stockholders or another party to effect a change in management.
In addition, the authorization of undesignated Preferred Stock makes it possible for the Board to issue Preferred Stock with voting
or other rights or preferences that could impede any attempt to effect a change of control of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Transfer Agent</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Continental Stock Transfer &amp; Trust
Company, 17 Battery Place, New York, New York, serves as the transfer agent and registrar for the Company&rsquo;s stock.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>UNDERWRITING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Raymond James &amp; Associates, Inc. is
acting as representative of each of the underwriters named below, with Raymond James &amp; Associates, Inc. serving as sole book-running
manager in this Offering. Subject to the conditions set forth in an underwriting agreement among us and the underwriters, we have
agreed to sell to the underwriters, and each of the underwriters has agreed, severally and not jointly, to purchase from us the
number of shares of our Common Stock set forth opposite its name below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: justify; width: 60%"><B>Name</B></TD>
    <TD STYLE="text-align: justify; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 15%"><B>Number of Shares</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: justify">Raymond James &amp; Associates, Inc.</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="border-bottom: white 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: justify">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="border-bottom: white 2.25pt double; text-align: justify">Total:</TD>
    <TD STYLE="border-bottom: white 2.25pt double; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: justify">&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriters are offering the shares
of Common Stock subject to their acceptance of the shares from us and subject to prior sale. The underwriting agreement provides
that the obligations of the several underwriters to pay for and accept delivery of the shares of Common Stock offered by this prospectus
are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated
to take and pay for all of the shares of Common Stock offered by this prospectus if any such shares are taken. However, the underwriters
are not required to take or pay for the shares covered by the underwriters&rsquo; option described below. The underwriting agreement
also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may be increased or the
Offering may be terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Biotest AG and BPC have contractually committed
to purchase up to an aggregate amount of $12.5 million of shares of Common Stock in this Offering, on a pro-rata basis, at the
public offering price. In addition, certain of our other existing stockholders have also indicated an interest in purchasing shares
of Common Stock in this Offering at the public offering price. Not all of these indications of interests are binding agreements
or commitments to purchase, and thus certain parties may elect not to purchase shares of Common Stock in this Offering. Raymond
James &amp; Associates, Inc. will receive an underwriting discount and commission of 4.0% on the sale of shares of Common Stock
to these existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriters initially propose to offer
part of the shares of Common Stock directly to the public at the offering price listed on the cover page of this prospectus and
part to certain dealers at that price less a concession not in excess of $&nbsp;&nbsp;&nbsp;&nbsp;per share. After the initial
offering of the shares of Common Stock, the offering price and other selling terms may be changed by the underwriters. Sales of
shares made outside of the U.S. may be made by affiliates of the underwriters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Option to Purchase Additional Shares
of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have granted the underwriters an option,
exercisable for 30 days from the date of this prospectus, to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
additional shares of Common Stock at the public offering price listed on the cover page of this prospectus, less underwriting discounts
and commissions. The underwriters may exercise this option in whole or in part. To the extent the option is exercised, each underwriter
will become obligated, subject to certain conditions, to purchase approximately the same percentage of the additional shares of
Common Stock as the number listed next to the underwriter&rsquo;s name in the preceding table bears to the total number of shares
of Common Stock listed next to the names of all underwriters in the preceding table.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Discounts and Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows per share and
total public offering prices, underwriting discounts and commissions, and proceeds before expenses to us. These amounts are shown
assuming both no exercise and full exercise of the underwriters&rsquo; option to purchase up to an additional &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 11%"><B>Per Share</B></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 11%"><B>Total No Exercise</B></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 11%"><B>Total Full Exercise</B></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: justify">Public offering price</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: justify">Underwriting discounts and commissions</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: justify">Proceeds, before expenses</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The estimated offering expenses payable
by us, exclusive of the underwriting discounts and commissions, are approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the underwriting discounts
and commissions, we have agreed to pay or reimburse Raymond James &amp; Associates, Inc. for out-of-pocket expenses up to a maximum
of $125,000 in connection with this Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Indemnification</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to indemnify the underwriters
against certain liabilities, including liabilities under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lock-Up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with this Offering, subject
to specified exceptions, we and each of our directors, officers, and certain of our stockholders have agreed that, subject to certain
exceptions, without the prior written consent of Raymond James &amp; Associates, Inc. as representative on behalf of the underwriters,
we and they will not, subject to customary exceptions, during the period ending 90 days after the date of the final prospectus
relating to this Offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">offer, sell, agree to
offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber,
assign, borrow or otherwise dispose of or transfer, any shares of our stock or options, warrants or other securities with respect
to our stock; or</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Common Stock.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preceding restrictions apply without
regard to whether any such transaction described above is to be settled by delivery of Common Stock or other securities, in cash
or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Stabilization</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Until this Offering is completed, rules
of the SEC may limit the ability of the underwriters and various selling group members to bid for and purchase the shares of our
Common Stock. As an exception to these rules and in accordance with Regulation M under the Exchange Act, the underwriters may engage
in activities that stabilize, maintain or otherwise affect the price of our Common Stock in order to facilitate the offering of
the Common Stock, including: short sales; syndicate covering transactions; imposition of penalty bids; and purchases to cover positions
created by short sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stabilizing transactions may include making
short sales of shares of our Common Stock, which involve the sale by the underwriters of a greater number of shares than it is
required to purchase in this Offering and purchasing shares of Common Stock from us by exercising the option or in the open market
to cover positions created by short sales. Short sales may be &ldquo;covered&rdquo; shorts, which are short positions in an amount
not greater than the underwriters&rsquo; option referred to above, or may be &ldquo;naked&rdquo; shorts, which are short positions
in excess of that amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each underwriter may close out any covered
short position either by exercising its option, in whole or in part, or by purchasing shares of Common Stock in the open market
after the distribution has been completed. In making this determination, each underwriter will consider, among other things, the
price of shares of our Common Stock available for purchase in the open market compared to the price at which the underwriter may
purchase shares of our Common Stock pursuant to the underwriters&rsquo; option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A naked short position is more likely to
be created if the underwriters are concerned that there may be downward pressure on the price of shares of our Common Stock in
the open market after pricing that could adversely affect investors who purchased in this Offering. To the extent that the underwriters
create a naked short position, they will purchase shares of our Common Stock in the open market to cover the position after the
pricing of this Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriters also may impose a penalty
bid on selling group members. This means that if the underwriters purchase shares of our Common Stock in the open market in stabilizing
transactions or to cover short sales, the underwriters can require the selling group members that sold those shares as part of
this Offering to repay the selling concession received by them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of these activities, the price
of shares of our Common Stock may be higher than the price that otherwise might exist in the open market. If the underwriters commence
these activities, they may discontinue them without notice at any time. The underwriters may carry out these transactions on the
NASDAQ Capital Market or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriters are not required to engage
in these activities and may end any of these activities at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Relationships and Conflict of Interest
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain of the underwriters and their affiliates
may provide from time to time in the future certain commercial banking, financial advisory, investment banking and other services
for us and such affiliates, and for the selling stockholders and their affiliates, in the ordinary course of their business, for
which they will receive customary fees and commissions, as applicable, and reimbursement for out-of-pocket expenses. In addition,
from time to time, certain of the underwriters and their affiliates may effect transactions for their own account or the account
of customers, and hold on behalf of themselves or their customers, long or short positions in our debt or equity securities or
loans, and may do so in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Notice to Non-U.S. Investors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Belgium</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Offering is exclusively conducted under applicable private
placement exemptions and therefore it has not been and will not be notified to, and this document or any other offering material
relating to the shares has not been and will not be approved by, the Belgian Banking, Finance and Insurance Commission (&ldquo;Commission
bancaire, financi&egrave;re et des assurances/Commissie voor het Bank, Financie en Assurantiewezen&rdquo;). Any representation
to the contrary is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each underwriter has undertaken not to offer sell, resell, transfer
or deliver directly or indirectly, any units, or to take any steps relating/ancillary thereto, and not to distribute or publish
this document or any other material relating to the units or to the Offering in a manner which would be construed as: (a) a public
offering under the Belgian Royal Decree of 7 July 1999 on the public character of financial transactions; or (b) an offering of
securities to the public under Directive 2003/71/EC which triggers an obligation to publish a prospectus in Belgium. Any action
contrary to these restrictions will cause the recipient and the Company to be in violation of the Belgian securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>France</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Neither this prospectus supplement nor any other offering material
relating to the shares has been submitted to the clearance procedures of the Autorit&eacute; des march&eacute;s financiers in France.
The shares have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither
this prospectus supplement nor any other offering material relating to the shares has been or will be: (a) released, issued, distributed
or caused to be released, issued or distributed to the public in France; or (b) used in connection with any offer for subscription
or sale of the shares to the public in France. Such offers, sales and distributions will be made in France only: (i) to qualified
investors (investisseurs qualifi&eacute;s) and/or to a restricted circle of investors (cercle restreint d&rsquo;investisseurs),
in each case investing for their own account, all as defined in and in accordance with Articles L.411-2, D.411-1, D.411-2, D.734-1,
D.744-1, D.754-1 and D.764-1 of the French Code mon&eacute;taire et financier; (ii)&nbsp;to investment services providers authorised
to engage in portfolio management on behalf of third parties; or (iii)&nbsp;in a transaction that, in accordance with article L.411-2-II-1&deg;-or-2&deg;-or
3&deg; of the French Code mon&eacute;taire et financier and article 211-2 of the General Regulations (R&egrave;glement G&eacute;n&eacute;ral)
of the Autorit&eacute; des march&eacute;s financiers, does not constitute a public offer (appel public &agrave; l&rsquo;&eacute;pargne).
Such shares may be resold only in compliance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French
Code mon&eacute;taire et financier.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>United Kingdom/Germany/Norway/The Netherlands</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a &ldquo;Relevant Member State&rdquo;) an offer to the public of any shares
which are the subject of the Offering contemplated by this prospectus supplement may not be made in that Relevant Member State
other than the offers contemplated in this prospectus supplement in name(s) of Member State(s) where prospectus will be approved
or passported for the purposes of a non-exempt offer once this prospectus supplement has been approved by the competent authority
in such Member State and published and passported in accordance with the Prospectus Directive as implemented in name(s) of relevant
Member State(s) except that an offer to the public in that Relevant Member State of any shares may be made at any time under the
following exemptions under the Prospectus Directive, if they have been implemented in that Relevant Member State:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to legal entities
which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose
is solely to invest in securities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to any legal entity
which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of
more than &euro;43,000,000 and (3) an annual net turnover of more than &euro;50,000,000, as shown in its last annual or consolidated
accounts;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by the representative
to fewer than 100 natural or legal persons (other than qualified investors as defined in the Prospectus Directive); or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in any other circumstances
falling within Article 3(2) of the Prospectus Directive, provided that no such offer of shares shall result in a requirement for
the publication by the Company or any underwriter of a prospectus pursuant to Article 3 of the Prospectus Directive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the purposes of this provision, the expression an &ldquo;offer
to the public&rdquo; in relation to any shares in any Relevant Member State means the communication in any form and by any means
of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase
any shares, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member
State and the expression &ldquo;Prospectus Directive&rdquo; means Directive 2003/71/EC and includes any relevant implementing measure
in each Relevant Member State.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each underwriter has represented, warranted and agreed that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it has only communicated
or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment
activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (the FSMA)) received by it in connection
with the issue or sale of any shares in circumstances in which section 21(1) of the FSMA does not apply to the Company; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;it has complied
with and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the shares in,
from or otherwise involving the United Kingdom.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Israel</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the State of Israel, the shares offered hereby may not be
offered to any person or entity other than the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a fund for joint
investments in trust (i.e., mutual fund), as such term is defined in the Law for Joint Investments in Trust, 5754-1994, or a management
company of such a fund;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a provident fund
as defined in Section 47(a)(2) of the Income Tax Ordinance of the State of Israel, or a management company of such a fund;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an insurer, as
defined in the Law for Oversight of Insurance Transactions, 5741-1981, (d) a banking entity or satellite entity, as such terms
are defined in the Banking Law (Licensing), 5741-1981, other than a joint services company, acting for their own account or for
the account of investors of the type listed in Section 15A(b) of the Securities Law 1968;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a company that
is licensed as a portfolio manager, as such term is defined in Section 8(b) of the Law for the Regulation of Investment Advisors
and Portfolio Managers, 5755-1995, acting on its own account or for the account of investors of the type listed in Section 15A(b)
of the Securities Law 1968;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a company that
is licensed as an investment advisor, as such term is defined in Section 7(c) of the Law for the Regulation of Investment Advisors
and Portfolio Managers, 5755-1995, acting on its own account;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a company that
is a member of the Tel Aviv Stock Exchange, acting on its own account or for the account of investors of the type listed in Section
15A(b) of the Securities Law 1968;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an underwriter
fulfilling the conditions of Section 56(c) of the Securities Law, 5728-1968;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a venture capital
fund (defined as an entity primarily involved in investments in companies which, at the time of investment, (i) are primarily engaged
in research and development or manufacture of new technological products or processes and (ii) involve above-average risk);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an entity primarily
engaged in capital markets activities in which all of the equity owners meet one or more of the above criteria; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an entity, other
than an entity formed for the purpose of purchasing shares in this Offering, in which the shareholders equity (including pursuant
to foreign accounting rules, international accounting regulations and U.S. generally accepted accounting rules, as defined in the
Securities Law Regulations (Preparation of Annual Financial Statements), 1993) is in excess of NIS 50 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any offeree of the shares offered hereby in the State of Israel
shall be required to submit written confirmation that it falls within the scope of one of the above criteria. This prospectus supplement
will not be distributed or directed to investors in the State of Israel who do not fall within one of the above criteria.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Italy</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The offering of the shares offered hereby in Italy has not been
registered with the Commissione Nazionale per la Societ&agrave; e la Borsa (&ldquo;CONSOB&rdquo;) pursuant to Italian securities
legislation and, accordingly, the shares offered hereby cannot be offered, sold or delivered in the Republic of Italy (&ldquo;Italy&rdquo;)
nor may any copy of this prospectus supplement or any other document relating to the shares offered hereby be distributed in Italy
other than to professional investors (operatori qualificati) as defined in Article 31, second paragraph, of CONSOB Regulation No.
11522 of 1 July, 1998 as subsequently amended. Any offer, sale or delivery of the shares offered hereby or distribution of copies
of this prospectus supplement or any other document relating to the shares offered hereby in Italy must be made:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by an investment
firm, bank or intermediary permitted to conduct such activities in Italy in accordance with Legislative Decree No. 58 of 24 February
1998 and Legislative Decree No. 385 of 1 September 1993 (the &ldquo;Banking Act&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in compliance with
Article 129 of the Banking Act and the implementing guidelines of the Bank of Italy; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in compliance with
any other applicable laws and regulations and other possible requirements or limitations which may be imposed by Italian authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Sweden</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus supplement has not been nor will it be registered
with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this prospectus supplement may
not be made available, nor may the shares offered hereunder be marketed and offered for sale in Sweden, other than under circumstances
which are deemed not to require a prospectus under the Financial Instruments Trading Act (1991:&nbsp;980).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Switzerland</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The shares offered pursuant to this prospectus supplement will
not be offered, directly or indirectly, to the public in Switzerland and this prospectus supplement does not constitute a public
offering prospectus as that term is understood pursuant to art. 652a or art. 1156 of the Swiss Federal Code of Obligations. The
company has not applied for a listing of the shares being offered pursuant to this prospectus supplement on the SWX Swiss Exchange
or on any other regulated securities market, and consequently, the information presented in this prospectus supplement does not
necessarily comply with the information standards set out in the relevant listing rules. The shares being offered pursuant to this
prospectus supplement have not been registered with the Swiss Federal Banking Commission as foreign investment funds, and the investor
protection afforded to acquirers of investment fund certificates does not extend to acquirers of shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Investors are advised to contact their legal, financial or tax
advisers to obtain an independent assessment of the financial and tax consequences of an investment in shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Canada</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Notice to Canadian Residents</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This document constitutes an &ldquo;exempt offering document&rdquo;
as defined in and for the purposes of applicable Canadian securities laws. No prospectus has been filed with any securities commission
or similar regulatory authority in Canada in connection with the offer and sale of the securities described herein (the &ldquo;Securities&rdquo;).
No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this document or on the
merits of the Securities and any representation to the contrary is an offence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Canadian investors are advised that
this document has been prepared in reliance on section 3A.3 of National Instrument 33-105&nbsp;<I>Underwriting Conflicts</I>&nbsp;(&ldquo;NI
33-105&rdquo;). Pursuant to section 3A.3 of NI 33-105, this document is exempt from the requirement to provide investors with certain
conflicts of interest disclosure pertaining to &ldquo;connected issuer&rdquo; and/or &ldquo;related issuer&rdquo; relationships
as would otherwise be required pursuant to subsection 2.1(1) of NI 33-105.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Resale Restrictions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The offer and sale of the Securities in Canada is being made
on a private placement basis only and is exempt from the requirement to prepare and file a prospectus under applicable Canadian
securities laws. Any resale of Securities acquired by a Canadian investor in this Offering must be made in accordance with applicable
Canadian securities laws, which may vary depending on the relevant jurisdiction, and which may require resales to be made in accordance
with Canadian prospectus requirements, a statutory exemption from the prospectus requirements, in a transaction exempt from the
prospectus requirements or otherwise under a discretionary exemption from the prospectus requirements granted by the applicable
local Canadian securities regulatory authority. These resale restrictions may under certain circumstances apply to resales of the
Securities outside of Canada.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Representations of Purchasers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each Canadian investor who purchases the Securities will be
deemed to have represented to the issuer and to each dealer from whom a purchase confirmation is received, as applicable, that
the investor (i) is purchasing as principal, or is deemed to be purchasing as principal in accordance with applicable Canadian
securities laws, for investment only and not with a view to resale or redistribution; (ii) is an &ldquo;accredited investor&rdquo;
as such term is defined in section 1.1 of National Instrument 45-106&nbsp;<I>Prospectus Exemptions</I>&nbsp;(&ldquo;NI 45-106&rdquo;)
or, in Ontario, as such term is defined in section 73.3(1) of the&nbsp;<I>Securities Act</I>&nbsp;(Ontario); and (iii) is a &ldquo;permitted
client&rdquo; as such term is defined in section 1.1 of National Instrument 31-103&nbsp;<I>Registration Requirements, Exemptions
and Ongoing Registrant Obligations</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Taxation and Eligibility for Investment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any discussion of taxation and related matters contained in
this document does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a Canadian
investor when deciding to purchase the Securities and, in particular, does not address any Canadian tax considerations. No representation
or warranty is hereby made as to the tax consequences to a resident, or deemed resident, of Canada of an investment in the Securities
or with respect to the eligibility of the Securities for investment by such investor under relevant Canadian federal and provincial
legislation and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Rights of Action for Damages or Rescission</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities legislation in certain of the Canadian jurisdictions
provides certain purchasers of securities pursuant to an offering memorandum, including where the distribution involves an &ldquo;eligible
foreign security&rdquo; as such term is defined in Ontario Securities Commission Rule 45-501&nbsp;<I>Ontario Prospectus and Registration
Exemptions</I>&nbsp;and in Multilateral Instrument 45-107&nbsp;<I>Listing Representation and Statutory Rights of Action Disclosure
Exemptions</I>, as applicable, with a remedy for damages or rescission, or both, in addition to any other rights they may have
at law, where the offering memorandum, or other offering document that constitutes an offering memorandum, and any amendment thereto,
contains a &ldquo;misrepresentation&rdquo; as defined under applicable Canadian securities laws. These remedies, or notice with
respect to these remedies, must be exercised or delivered, as the case may be, by the purchaser within the time limits prescribed
under, and are subject to limitations and defences under, applicable Canadian securities legislation. In addition, these remedies
are in addition to and without derogation from any other right or remedy available at law to the investor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Language of Documents</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon receipt of this document, each Canadian
investor hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the
Securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English
language only.&nbsp;<I>Par la r&eacute;ception de ce document, chaque investisseur canadien confirme par les pr&eacute;sentes qu&rsquo;il
a express&eacute;ment exig&eacute; que tous les documents faisant foi ou se rapportant de quelque mani&egrave;re que ce soit &agrave;
la vente des valeurs mobili&egrave;res d&eacute;crites aux pr&eacute;sentes (incluant, pour plus de certitude, toute confirmation
d&rsquo;achat ou tout avis) soient r&eacute;dig&eacute;s en anglais seulement.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">DLA Piper LLP (US), located at 51 John F. Kennedy Parkway, Suite
120, Short Hills, New Jersey 07078, will pass on the validity of the Common Stock being offered pursuant to this prospectus. The
underwriters are being represented by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., New York, New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The consolidated financial statements of ADMA Biologics,
Inc. as of December 31, 2016 and  2015, and for the years ended December 31, 2016 and 2015, included and incorporated by
reference in this prospectus and the registration statement have been audited by CohnReznick LLP, an independent registered
public accounting firm, to the extent and for the periods set forth in their report, which includes an explanatory paragraph
relating to the Company&rsquo;s ability to continue as a going concern, appearing elsewhere herein and in the registration
statement, and are included and incorporated by reference in reliance upon such report given upon the authority of said firm
as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The financial statements of the BTBU of BPC (which comprise
the carve-out balance sheet as of December 31, 2016 and the related carve-out statements of operations, changes in invested equity
and cash flows for the year then ended), incorporated by reference in this prospectus and the registration statement have been
audited by CohnReznick LLP, an independent registered public accounting firm, to the extent and for the period set forth in their
report, which includes an explanatory paragraph relating to the Company&rsquo;s ability to continue as a going concern, incorporated
by reference herein and in the registration statement, and are incorporated by reference in reliance upon such report given upon
the authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The financial statements of the BTBU of BPC (which comprise
the carve-out balance sheet as of December 31, 2015 and the related carve-out statements of operations, changes in invested equity
and cash flows for the year then ended), incorporated by reference in this prospectus and the registration statement have been
audited by R&ouml;dl Langford de Kock LLP, an independent auditor, to the extent and for the period set forth in their report,
which includes an explanatory paragraph relating to the Company&rsquo;s ability to continue as a going concern, incorporated by
reference herein and in the registration statement, and are incorporated by reference in reliance upon such report given upon the
authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We file annual, quarterly and periodic reports, proxy statements
and other information with the SEC. You may read and copy any materials that we file with the SEC at the SEC&rsquo;s Public Reference
Room at 100 F Street, NE, Washington, D.C. 20549 on official business days during the hours of 10:00am and 3:00pm. You may obtain
information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Many of our SEC filings are also
available to the public from the SEC&rsquo;s Website at &ldquo;http://www.sec.gov.&rdquo; We make available free of charge our
annual, quarterly and current reports, proxy statements and other information upon request. To request such materials, please contact
Brian Lenz, our Chief Financial Officer, at the following address or telephone number: ADMA Biologics, Inc. 465 Route 17, Ramsey,
New Jersey 07446, Attention: Brian Lenz, Vice President and Chief Financial Officer, (201) 478-5552. Exhibits to the documents
will not be sent, unless those exhibits have specifically been incorporated by reference in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Copies of certain information filed by us with the SEC are also
available on our website at www.admabiologics.com. Information contained in, or accessible through, our website does not constitute
a part of this prospectus or any accompanying prospectus supplement.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This prospectus is part of a registration statement we filed
with the SEC. This prospectus omits some information contained in the registration statement in accordance with SEC rules and regulations.
You should review the information and exhibits in the registration statement for further information about us and our consolidated
subsidiaries and the securities we are offering. Statements in this prospectus concerning any document we filed as an exhibit to
the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference
to these filings. You should review the complete document to evaluate these statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SEC permits us to &ldquo;incorporate by reference&rdquo;
the information contained in documents we have filed with the SEC, which means that we can disclose important information to you
by referring you to those documents rather than by including them in this prospectus. Information that is incorporated by reference
is considered to be part of this prospectus and you should read it with the same care that you read this prospectus. We have filed
with the SEC, and incorporate by reference in this prospectus:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our Annual Report on Form 10-K for the year ended
December 31, 2016, filed on February 24, 2017;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2017 and June 30, 2017, filed on May 12, 2017 and August 11, 2017, respectively;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our definitive merger proxy statement on Schedule
14A, filed on April 26, 2017 (as supplemented on May 10, 2017);</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our Current Reports on Form 8-K filed with the SEC
on January 23, 2017, February 17, 2017, May 10, 2017, May 25, 2017, May 30, 2017, June 9, 2017, June 12, 2017 (as amended on July
28, 2017), June 27, 2017, July 31, 2017 and October 11, 2017 (provided that any portions of such reports that are deemed furnished
and not filed pursuant to instructions to Form 8-K shall not be incorporated by reference into this prospectus); and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the description of Common Stock set forth in or Registration
Statement on Form 8-A12B filed with the SC on November 5, 2014 pursuant to Section 12(b) of the Exchange Act, including any amendment
or report filed for the purpose of updating such description.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any statement contained in any document incorporated by reference
herein will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in
this prospectus or any additional prospectus supplements modifies or supersedes such statement. Any statement so modified or superseded
will not be deemed, except as so modified or superseded, to constitute a part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We will provide without charge to each person, including any
beneficial owner, to whom this prospectus is delivered, upon written or oral request, a copy of any or all documents that are incorporated
by reference into this prospectus, but not delivered with this prospectus, other than exhibits to such documents unless such exhibits
are specifically incorporated by reference into the documents that this prospectus incorporates. To request such materials, please
contact Brian Lenz, our Chief Financial Officer, at the following address or telephone number: ADMA Biologics, Inc. 465 Route 17,
Ramsey, New Jersey 07446, Attention: Brian Lenz, Vice President and Chief Financial Officer, (201) 478-5552. A copy of all documents
that are incorporated by reference into this prospectus can also be found on our website by accessing http://ir.admabiologics.com/all-sec-filings.
&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Financial
Statements</B></FONT><BR>
<BR>
<FONT STYLE="text-transform: uppercase"><B>Table of Contents</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="width: 95%; text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">FINANCIAL STATEMENTS (JUNE 30, 2017 AND 2016) (UNAUDITED)</TD>
    <TD STYLE="width: 5%; text-align: right; padding-top: 0in; padding-bottom: 6pt">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Condensed Consolidated Balance Sheets as of June 30, 2017 (Unaudited) and December 31, 2016</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-1</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2017 and 2016</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-2</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Condensed Consolidated Statement of Changes in Stockholders&rsquo; Equity (Deficit) (Unaudited) for the Six Months Ended June
30, 2017</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-3</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2017 and 2016</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-4</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Notes to (Unaudited) Condensed Consolidated Financial Statements</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-5</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">FINANCIAL STATEMENTS (DECEMBER 31, 2016 AND 2015) (AUDITED)</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Report of Independent Registered Public Accounting Firm</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-20</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Consolidated Balance Sheets as of December 31, 2016 and 2015</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-21</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Consolidated Statements of Operations for the years ended December 31, 2016 and 2015</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-22</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Consolidated Statements of Changes in Stockholders&rsquo; (Deficiency) Equity for the years ended December 31, 2016 and 2015</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-23</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-24</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Notes to Consolidated Financial Statements</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-25</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-40</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">ADMA Biologics, Inc. and the Therapy Business Unit Unaudited Pro Forma Combined Balance Sheet as of March 31, 2017</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-41</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">ADMA Biologics, Inc. and the Therapy Business Unit Unaudited Pro Forma Combined Statement of Operations for the year ended December
31, 2016</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-42</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">ADMA Biologics, Inc. and the Therapy Business Unit Unaudited Pro Forma Combined Statement of Operations for the three months ended
March 31, 2017</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-43</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 6pt; padding-left: 0in">Notes to Unaudited Pro Forma Combined Financial Statements</TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 6pt">F-44</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>ADMA
BIOLOGICS, INC. AND SUBSIDIARies</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">June 30,</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold"></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(Unaudited)</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">(Note 2)</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">ASSETS</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Current assets:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; font-size: 10pt; text-align: left; text-indent: 10pt">Cash and cash equivalents</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">25,574,009</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">9,914,867</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Short-term investments</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,390,184</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Accounts receivable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,292,274</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,018,027</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Inventories</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,150,733</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,020,146</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Prepaid expenses and other current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,408,459</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">313,914</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Assets held for sale</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">845,389</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Total current assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">44,270,864</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">21,657,138</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0pt">Property and equipment, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">28,626,668</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,000,784</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0pt">Intangible assets, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,011,003</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0pt">Goodwill</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,529,509</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0pt">Assets to be transferred under purchase agreement</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,698,755</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0pt">Deposits</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">502,454</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">27,163</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL ASSETS</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">84,639,253</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">23,685,085</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Current liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">4,672,316</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2,564,681</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,143,812</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,385,356</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Current portion of notes payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,666,667</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,111,111</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Current portion of deferred revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">145,154</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">145,154</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Other current liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">17,062</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">16,559</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Total current liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,645,011</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,222,861</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Notes payable, net of discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9,360,708</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,321,640</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">End of term liability, notes payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,790,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,790,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Deferred revenue, net of current portion</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,618,616</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,690,033</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Note payable - related party, net of discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14,827,148</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Purchase price payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,621,844</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other non-current liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">93,937</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">117,813</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">TOTAL LIABILITIES</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">56,957,264</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">28,142,347</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">COMMITMENTS AND CONTINGENCIES</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">STOCKHOLDERS' EQUITY (DEFICIT)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Preferred Stock, $0.0001 par value, 10,000,000 shares authorized,</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">no shares issued and outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Common Stock - voting, $0.0001 par value, 75,000,000 shares</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">authorized, 17,182,321 and 12,886,741 shares issued and outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,719</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,289</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Common Stock - non-voting, $0.0001 par value, 8,591,160 shares</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">authorized, 8,591,160 and 0 shares issued and outstanding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">859</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Additional Paid-In Capital</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">150,187,687</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">102,476,267</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Accumulated Deficit</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(122,508,276</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(106,934,818</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">TOTAL STOCKHOLDERS' EQUITY (DEFICIT)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">27,681,989</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,457,262</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">84,639,253</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">23,685,085</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to (unaudited) condensed consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">REVENUES:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; font-size: 10pt; text-align: left; text-indent: 10pt">Product revenue</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">3,363,692</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,236,035</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">5,956,855</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">4,324,213</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">License and other revenue</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">35,709</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">35,709</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">71,417</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">71,417</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Total Revenues</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,399,401</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,271,744</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">6,028,272</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,395,630</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">OPERATING EXPENSES:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 0pt; padding-left: 10pt">Cost of product revenue (exclusive of amortization expense shown below)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,334,019</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,344,241</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,950,306</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,610,662</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Research and development</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,358,409</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,399,889</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,551,136</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,427,601</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Plasma centers</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,600,170</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,294,301</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,079,646</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,574,720</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Amortization of intangibles</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">73,021</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">73,021</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Selling, general and administrative</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,435,650</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,724,163</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,713,034</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,432,033</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">TOTAL OPERATING EXPENSES</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">11,801,269</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7,762,594</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">20,367,143</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">14,045,016</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">LOSS FROM OPERATIONS</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8,401,868</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,490,850</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(14,338,871</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(9,649,386</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">OTHER INCOME (EXPENSE):</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Interest income</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7,858</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12,017</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,426</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,525</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(642,485</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(537,998</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,261,013</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,005,439</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 10pt">Other income</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,496</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4,496</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">OTHER EXPENSE, NET</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(634,627</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(521,485</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(1,234,587</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(975,418</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">NET LOSS</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(9,036,495</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(6,012,335</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(15,573,458</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(10,624,804</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">BASIC AND DILUTED LOSS PER COMMON SHARE</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(0.55</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(0.50</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(1.06</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(0.93</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 10pt">Basic and Diluted</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">16,427,054</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">12,121,500</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">14,666,677</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">11,407,918</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to (unaudited) condensed consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STOCKHOLDERS&rsquo; DEFICIENCY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><B>For the Six Months
Ended June 30, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Additional</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Voting</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Non-Voting</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Paid-in</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Capital</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Deficit</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; width: 23%">Balance - January 1, 2017</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">12,886,741</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">1,289</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">102,476,267</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">(106,934,818</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">(4,457,262</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Stock-based compensation</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">547,240</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">547,240</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Shares issued in connection with acquisition</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,295,580</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">430</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,591,160</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">859</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">47,164,180</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">47,165,469</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15,573,458</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15,573,458</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">Balance - June 30, 2017</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">17,182,321</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">1,719</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">8,591,160</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">859</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">150,187,687</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">(122,508,276</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">27,681,989</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to (unaudited) condensed consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS</B><BR>
<B>(Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U></U></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 70%; font-size: 10pt; text-align: left; text-indent: 10pt">Net loss</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">(15,573,458</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">(10,624,804</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Adjustments to reconcile net loss to net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">cash used in operating activities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Depreciation and amortization</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">395,194</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">234,394</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Loss on disposal of fixed assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,155</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Stock-based compensation</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">547,240</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">733,125</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Amortization of debt discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">374,389</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">294,498</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Amortization of license revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(71,417</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(71,417</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Changes in operating assets and liabilities, net of acquisition:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Accounts receivable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,274,246</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">97,753</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: 20pt">Inventories</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">66,766</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(763,553</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Prepaid expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,298,991</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(527,032</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Other assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(475,291</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,763,025</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,034,093</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,384,140</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(363,884</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Other current liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15,280</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(15,280</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Net cash used in operating activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(14,173,774</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(9,972,107</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Sales of short-term investments</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,390,184</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Purchase of short-term investments</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,902,786</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Purchase of property and equipment</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(96,557</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(58,034</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Cash acquired in acquisition transaction</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">12,500,000</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Net cash provided by (used in) investing activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">17,793,627</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,960,820</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Principal payments on notes payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(2,777,778</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Proceeds from issuance of common stock, net of offering expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,072,741</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Proceeds from issuance of related party note payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Proceeds from issuance of note payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,000,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 20pt">Payment of debt issuance costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(174,839</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(24,200</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Payments of leasehold improvement loan</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(8,094</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(7,400</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: 20pt">Net cash provided by financing activities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">12,039,289</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">17,041,141</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Net increase in cash and cash equivalents</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,659,142</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,108,214</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Cash and cash equivalents - beginning of period</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9,914,867</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,440,959</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.5pt">Cash and cash equivalents - end of period</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">25,574,009</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">12,549,173</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to (unaudited) condensed consolidated
financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO (UNAUDITED) CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>1.</B></TD>
    <TD><B><U>ORGANIZATION AND BUSINESS</U></B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA Biologics, Inc. (&ldquo;ADMA&rdquo; or the &ldquo;Company&rdquo;)
is a vertically integrated biopharmaceutical and specialty immunoglobulin company that develops, manufactures and markets specialty
plasma-based biologics for the treatment of immune deficiencies and prevention of certain infectious diseases. The Company&rsquo;s
targeted patient populations include immune-compromised individuals who suffer from an underlying immune deficiency disease or
who may be immune-suppressed for medical reasons. The Company&rsquo;s products and product candidates are intended to be used by
physician specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases. ADMA operates
through its wholly-owned subsidiaries ADMA Plasma Biologics, Inc., ADMA BioManufacturing, LLC (&ldquo;ADMA BioManufacturing&rdquo;)
and ADMA Bio Centers Georgia, Inc. (&ldquo;ADMA BioCenters&rdquo;). ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of the Biotest Therapy Business Unit (&ldquo;BTBU&rdquo;) of Biotest Pharmaceuticals Corporation (&ldquo;BPC&rdquo;
and, together with Biotest AG, &ldquo;Biotest&rdquo;) as more fully described below. ADMA BioCenters is the Company&rsquo;s source
plasma collection business, with facilities located in Norcross, GA and Marietta, GA. Each ADMA BioCenters facility has approved
licenses with the U.S. Food and Drug Administration (the &ldquo;FDA&rdquo;) and certifications from the German Health Authority
(the &ldquo;GHA&rdquo;) and the Korean Ministry of Food and Drug Safety. ADMA BioCenters supplies ADMA with a portion of its raw
material plasma for the manufacture of RI-002, ADMA&rsquo;s lead product candidate, which the Company is currently developing for
the treatment of Primary Immune Deficiency Disease (&ldquo;PIDD&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As discussed in Note 3, on June 6, 2017, ADMA completed the
acquisition of certain assets (the &ldquo;Biotest Assets&rdquo;) of BTBU, which includes two FDA-licensed products, Nabi-HB&reg;
(Hepatitis B Immune Globulin, Human) and Bivigam&reg; (Immune Globulin Intravenous, Human). These products are manufactured at
the Company&rsquo;s plasma fractionation facility located in Boca Raton, Florida (the &ldquo;Boca Facility&rdquo;) acquired in
the transaction. The facility is FDA-licensed and certified by the GHA. Immediately following the acquisition, the Biotest Assets
were contributed into ADMA BioManufacturing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to Nabi-HB&reg; and Bivigam&reg;, BTBU also provides
contract manufacturing for certain clients, including the sale of intermediate by-products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nabi-HB&reg; is a hyperimmune globulin that is rich in antibodies
to the hepatitis B virus. Nabi-HB&reg; is indicated for the treatment of acute exposure to blood containing hepatitis B surface
antigen (&ldquo;HBsAg&rdquo;), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBs-Ag-positive
persons and household exposure to persons with acute hepatitis B virus infection. Bivigam&reg; is an Immune Globulin Intravenous
(Human), 10% Liquid, indicated for the treatment of primary humoral immunodeficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">FDA approval for Bivigam&reg; was received on December 19, 2012,
and sales commenced in the first quarter of 2013. In November 2014, the FDA issued a warning letter to Biotest related to certain
issues identified at the Boca Facility. In December 2016, Biotest temporarily suspended the commercial production of Bivigam&reg;
in order to focus on the completion of planned improvements to the manufacturing process in response to the November 2014 warning
letter issued by the FDA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the closing of the acquisition, BTBU was the Company&rsquo;s
third-party manufacturer for RI-002. ADMA submitted a Biologics License Application for RI-002 (the &ldquo;BLA&rdquo;) to the FDA
which was accepted for review during the third quarter of 2015. In July 2016, the FDA issued a Complete Response Letter (the &ldquo;CRL&rdquo;)
to the Company for the BLA. The CRL reaffirmed the issues set forth in the November 2014 warning letter, and also identified certain
outstanding inspection issues and deficiencies at ADMA&rsquo;s third-party contract manufacturers and vendors and requested documentation
of corrections for a number of those issues. The FDA indicated in the CRL that it cannot grant final approval of the BLA until,
among other things, these deficiencies are resolved. The CRL did not cite any concerns with the clinical safety and efficacy data
for RI-002, nor did the FDA request any additional clinical studies be completed prior to FDA approval of RI-002.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA&rsquo;s highest priority is to remediate the outstanding
compliance issues identified at the Boca Facility in the previously issued FDA warning letter. Since receiving the CRL, the Company
has worked diligently with its contract fill and finisher and contract testing laboratory, and the Company continues to address
the CRL and remediate the outstanding warning letter at the Boca Facility. With the completion of the acquisition of the Biotest
Assets, ADMA now has control over the drug substance manufacturing process and the Company anticipates that it will be in a position
to refile the BLA for RI-002 in mid-2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Concurrent with the closing of the acquisition of the Biotest
Assets, the Company received a $15.0 million loan from Biotest evidenced by a 6% subordinated note payable to BPC with a maturity
of 5 years (see Note 4), and BPC committed to participate in any future equity offering or private placement undertaken by the
Company in an amount equal to up to $12.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2017, the Company had working capital of $28.6
million, including $25.6 million of cash and cash equivalents. Based upon the Company&rsquo;s current projected revenue and expenditures
for 2017, including expected consulting fees for warning letter remediation, regulatory and consulting fees associated with RI-002
approval, continuing implementation of the Company&rsquo;s commercialization and expansion activities, as well as certain other
assumptions, management currently believes that its cash, cash equivalents, projected revenue and accounts receivable, along with
the additional equity commitment from Biotest, are sufficient to fund ADMA&rsquo;s operations, as currently conducted, into the
first quarter of 2018. These estimates may change based upon results from the Company&rsquo;s remediation efforts, the timing of
any required commercial manufacturing scale up activities, the various financing options ADMA is exploring, including the potential
refinancing of its current senior debt which, if achieved on favorable terms, would be expected to allow ADMA to extend its current
cash runway from the first quarter of 2018 well into the second half of 2018 and perhaps further, depending on the timing and structuring
of the loan facility, or if any other assumptions of the Company change. The Company does not currently have any other firm commitments
to obtain additional financing. Furthermore, if the Company&rsquo;s assumptions underlying its estimated expenses and revenues
are incorrect, it may have to raise additional capital sooner than currently anticipated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Due to numerous risks and uncertainties associated with ongoing
remediations, the research and development and potential future commercialization of its products and product candidates, the Company
is unable to estimate with certainty the amounts of increased capital outlays and operating expenditures associated with its development
activities. The Company&rsquo;s current estimates may be subject to change as circumstances regarding its business requirements
evolve. The Company may decide to raise capital through public or private equity offerings or debt financings, or obtain a bank
credit facility or corporate collaboration and licensing arrangements. The Company does not have any existing commitments for future
external funding other than the additional equity commitment from Biotest. The sale of additional equity or debt securities, if
convertible, could result in dilution to the Company&rsquo;s stockholders. The incurrence of indebtedness would result in increased
fixed obligations and could also result in covenants that would restrict the Company&rsquo;s operations or other financing alternatives.
Additional equity or debt financing, grants, or corporate collaboration and potential licensing arrangements may not be available
on acceptable terms, if at all. If adequate funds are not available, the Company may be required to delay, reduce the scope of
or eliminate the Company&rsquo;s research and development programs, reduce the Company&rsquo;s planned clinical trials and delay
or abandon potential commercialization efforts of the Company&rsquo;s lead or other product candidates. The Company has reported
losses since inception in June 2004 through June 30, 2017 of $122.5 million. Management believes that the Company will continue
to incur net losses and negative net cash flows from operating activities to fund its research and development, commercial programs
and meet its obligations on a timely basis through the foreseeable future. As such, these factors raise substantial doubt about
the Company&rsquo;s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not
include any adjustments relating to the recoverability and classification of asset carrying amounts and the classification of liabilities
that might be necessary from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA&rsquo;s long-term liquidity will be dependent upon its
ability to raise additional capital, to fund its research and development and commercial programs and meet its obligations on a
timely basis. If ADMA is unable to successfully raise sufficient additional capital, it will likely not have sufficient cash flow
and liquidity to fund its business operations, forcing ADMA to curtail activities and potentially significantly reduce, or potentially
cease, operations. Even if ADMA is able to raise additional capital, such financings may only be available on unattractive terms,
resulting in significant dilution of stockholders&rsquo; interests and, in such event, the value and potential future market price
of its common stock may decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There can be no assurance that the Company&rsquo;s research
and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject
to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements,
development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary
technology, and compliance with FDA and other governmental regulations and approval requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>2.</B></TD>
    <TD><B><U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</U></B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Basis of presentation</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying unaudited condensed consolidated financial
statements have been prepared in conformity with accounting principles generally accepted in the United States of America (&ldquo;U.S.
GAAP&rdquo;) for interim financial information. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP
as found in the Accounting Standards Codification (&ldquo;ASC&rdquo;) and Accounting Standards Updates (&ldquo;ASU&rdquo;) of the
Financial Accounting Standards Board (the &ldquo;FASB&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying unaudited condensed consolidated financial
statements should be read in conjunction with the annual audited consolidated financial statements and related notes thereto as
of and for the year ended December 31, 2016 included in the Company&rsquo;s Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission (the &ldquo;SEC&rdquo;) on February 24, 2017. These condensed consolidated interim financial statements
have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X, and therefore omit or condense
certain footnotes and other information normally included in consolidated interim financial statements prepared in accordance with
U.S. GAAP. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management,
the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist
primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the
Company&rsquo;s financial position as of June 30, 2017 and its results of operations for the three and six months ended June 30,
2017 and 2016 and cash flows for the six months ended June 30, 2017 and 2016. Operating results for the six months ended June 30,
2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Use of estimates</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.&nbsp;Significant estimates include the fair value of assets acquired
and liabilities assumed in a business combination, valuation of inventory, assumptions used in the fair value determination of
stock-based compensation, warrants, and the allowance for the valuation of future tax benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Business Combinations</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company accounts for business combinations using the acquisition
method of accounting in accordance with FASB ASC 805,&nbsp;<I>Business Combinations</I>. Identifiable assets acquired, liabilities
assumed, and contingent consideration are recorded at their acquisition date fair values. Any change in the fair value of the acquisition-related
contingent consideration subsequent to the acquisition date, including changes from events after the acquisition date, will be
recognized in the period of the estimated fair value change. Goodwill represents the excess of the purchase price over the fair
value of identifiable assets acquired and liabilities assumed as a result of the business combination. Identifiable assets with
finite lives are amortized over their useful lives. Acquisition related costs are expensed as incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Fair value of financial instruments</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The carrying amounts of certain of the Company&rsquo;s financial
instruments, including cash and cash equivalents, short-term investments and accounts payable, are shown at cost which approximates
fair value due to the short-term nature of these instruments. The debt outstanding under the loan and security agreement with Oxford
Finance, LLC (see Note 4) approximates fair value due to variable interest rate. With respect to the related party note payable
in the amount of $15.0 million as of June 30, 2017 (see Notes 3 and 4), which is held by a principal stockholder of the Company
and was issued concurrent with an acquisition transaction with such stockholder, the Company has concluded that an estimation of
fair value for this note is not practicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Goodwill</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Goodwill represents the excess of purchase price over the fair
value of net assets acquired by the Company. Goodwill at June 30, 2017 and December 31, 2016 was $3.5 million and $0, respectively.
All of the Company&rsquo;s goodwill is attributable to its ADMA BioManufacturing business segment. The following table presents
the changes in the carrying amount of goodwill during the six months ended June 30, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 83%">Balance as of January 1, 2017</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">$</TD>
    <TD STYLE="width: 13%; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Goodwill recorded in connection with the acquisition of the Biotest Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">3,529,509</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Balance as of June 30, 2017</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">3,529,509</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Goodwill is not amortized, but assessed for impairment on an
annual basis or more frequently if impairment indicators exist. The Company has the option to perform a qualitative assessment
of goodwill to determine whether it is more likely than not that the fair value of its reporting units is less than its carrying
amount, including goodwill and other intangible assets. If the Company concludes that this is the case, then it must perform a
two-step goodwill impairment process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The first step compares a reporting unit&rsquo;s fair value
to its carrying amount to identify potential goodwill impairment. If the carrying amount of a reporting unit exceeds the reporting
unit&rsquo;s fair value, the second step of the impairment test must be completed to measure the amount of the reporting unit&rsquo;s
goodwill impairment loss, if any. Step two compares the carrying value of the reporting unit&rsquo;s goodwill to its implied fair
value, which is the fair value of the reporting unit less the fair value of the unit&rsquo;s assets and liabilities, including
identifiable intangible assets. If the implied fair value of goodwill is less than its carrying amount, a goodwill impairment loss
is recognized. The Company performs its annual goodwill impairment test as of October 1 of each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Impairment of long-lived assets</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company assesses the recoverability of its long-lived assets,
which include property and equipment and definite-lived intangible assets, whenever significant events or changes in circumstances
indicate impairment may have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with
the asset are compared to its carrying amount to determine whether the asset&rsquo;s value is recoverable. Any resulting impairment
is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results.
For the six months ended June 30, 2017 and 2016, the Company determined that there was no impairment of its long-lived assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Revenue recognition</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenues for the six months ended June 30, 2017 are comprised
of revenues from Nabi-HB&reg;, product revenues from the sale of normal source human plasma collected from the Company&rsquo;s
plasma collection centers segment and license and other revenues are primarily attributable to the out-licensing of RI-002 to Biotest
to market and sell in Europe and selected countries in North Africa and the Middle East.&nbsp;Biotest has provided the Company
with certain services and financial payments in accordance with the related Biotest license agreement and is obligated to pay the
Company certain amounts in the future if certain milestones are achieved.&nbsp;Deferred revenue is recognized over the term of
the Biotest license.&nbsp;Deferred revenue is amortized into income for a period of approximately 20 years, the term of the Biotest
license agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Depending on the agreement with the customer, product revenues
from the sale of human plasma collected at the Company&rsquo;s plasma collection centers are recognized at the time of transfer
of title and risk of loss to the customer, which occurs at the time of shipment.&nbsp;Product revenues are recognized at the time
of delivery if the Company retains the risk of loss during shipment.&nbsp; Revenue from license fees and research and development
services rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been
completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenue from sales of Nabi-HB&reg; and Bivigam&reg; is recognized
when the product reaches the customer&rsquo;s destination. For sales of intermediates, title typically transfers when the product
is delivered to a third party warehouse. With all other contract manufacturing, the title transfers to the customer when they take
possession of the product from the Boca Facility. As the Company maintains a significant risk of loss throughout the contract manufacturing
process, contract manufacturing revenue is not recognized until the product is released and title transfers to the customer. Nabi-HB&reg;
revenue is net of estimated customer prompt pay discounts and contractual allowances in accordance with managed care agreements,
including wholesaler chargebacks, rebates, customer returns and other wholesaler fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the six months ended June 30, 2017, two of the Company&rsquo;s
customers, SK Plasma Co., Ltd. (&ldquo;SK&rdquo;) and BPC, represented 90% of the Company&rsquo;s total revenues, with BPC representing
approximately 75% of the Company&rsquo;s total revenues and SK representing approximately 15% of the Company&rsquo;s total revenues.
For the six months ended June 30, 2016, sales to BPC and SK represented 89% and 10%, respectively, of the Company&rsquo;s consolidated
revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Cost of product revenue</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cost of product revenue includes expenses related to process
development as well as scientific and technical operations when these operations are attributable to marketed products. When the
activities of these operations are attributable to new products in development, the expenses are classified as research and development
expenses. Additionally, expenses associated with remediating the issues noted in the FDA warning letter are expensed as incurred
and are reflected in cost of product revenue in the accompanying consolidated statements of operations for the three and six months
ended June 30, 2017. As the Boca Facility has not yet resumed production, all operating expenses associated with the facility have
been expensed as incurred since acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Loss per common share</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Basic net loss per share is computed by dividing net loss attributable
to common stockholders by the weighted average number of shares of common stock outstanding during the period. For purposes of
computing basic and diluted loss per share, the non-voting class of common stock is included in the common stock outstanding as
the characteristics of the non-voting class are substantially the same.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Diluted net loss per share is calculated by dividing net loss
attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of
shares of common stock, including the non-voting class of common stock, and dilutive common stock outstanding during the period.
Potentially dilutive common stock includes the shares of common stock issuable upon the exercise of outstanding stock options and
warrants (using the treasury stock method). Potentially dilutive common stock in the diluted net loss per share computation is
excluded to the extent that it would be anti-dilutive. No potentially dilutive securities are included in the computation of any
diluted per share amounts as the Company reported a net loss for all periods presented. The aggregate number of potentially dilutive
securities upon the exercise of outstanding warrants and stock options was 3.5 million and 1.8 million as of June 30, 2017 and
2016, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Stock-based compensation</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company follows recognized accounting guidance which requires
all equity-based payments, including grants of stock options, to be recognized in the statements of operations as compensation
expense, based on their fair values at the date of grant.&nbsp;The Company uses the Black-Scholes option pricing model to determine
the fair value of options granted. Compensation expense related to awards to employees and directors with service-based vesting
conditions is recognized on a straight-line basis based on the grant date fair value over the associated service period of the
award, which is generally the vesting term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the three and six months ended June 30, 2017, the Company
granted stock options to purchase 1,674,595 and 1,856,595 shares of common stock, respectively, to its directors and employees.
During the three and six months ended June 30, 2016, the Company granted stock options to purchase 15,000 and 100,984 shares of
common stock, respectively, to its directors and employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Recent Accounting Pronouncements</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2017, the FASB issued ASU No. 2017-09,&nbsp;<I>Modification
Accounting for Share-Based Payment Arrangements</I>, which amends the scope of modification accounting for share-based payment
arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which
an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification
accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the
modification. The ASU is effective for annual reporting periods, including interim periods within those annual reporting periods,
beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company does not
expect this new guidance to have a material impact on its condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2017, the FASB issued ASU No. 2017-01,&nbsp;<I>Business
Combinations &ndash; Clarifying the Definition of a Business</I>, which clarifies the definition of a business to assist entities
with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard
introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum,
an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal
years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted this standard
in the second quarter of 2017 and the adoption of this standard did not have a material impact on its condensed consolidated financial
statements for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2017, the FASB issued ASU 2017-04,&nbsp;<I>Intangibles
&ndash; Goodwill and Other (Topic 350),&nbsp;</I>which removes the requirement to compare the implied fair value of goodwill with
its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity should perform its
annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should
recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit&rsquo;s fair value; however,
the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively
for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests
performed on testing dates after January 1, 2017. The Company does not expect this new guidance to have a material impact on its
condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2016, the FASB issued ASU No. 2016-09,&nbsp;<I>Improvements
to Employee Share-Based Payment Accounting (Topic 718),&nbsp;</I>which provides for simplification of certain aspects of employee
share-based payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for
forfeitures and classification on the statement of cash flows. The Company adopted this standard in the first quarter of 2017 and
the adoption of this standard did not have a material impact on its condensed consolidated financial statements as of and for the
six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02,&nbsp;<I>Leases
(Topic 842),</I>&nbsp;which requires lessees to recognize assets and liabilities for the rights and obligations created by most
leases on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim
periods within those fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all
leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The
Company is currently evaluating the impact the standard may have on its condensed consolidated financial statements and related
disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In November 2015, the FASB issued ASU No. 2015-17<I>, Income
Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes</I>, which includes amendments that require deferred tax liabilities
and assets be classified as non-current in a classified statement of financial position.&nbsp;The amendments in this ASU are effective
for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods
beginning after December 15, 2018.&nbsp;Earlier application is permitted as of the beginning of an interim or annual reporting
period.&nbsp;The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to
all periods presented.&nbsp;The Company adopted this standard in the second quarter of 2017. As the Company carried a full valuation
allowance against its deferred tax assets as of June 30, 2017 and December 31, 2016, adoption of this standard did not have a material
impact on its condensed consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In September 2015, the FASB issued ASU No. 2015-16,&nbsp;<I>Business
Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments</I>, which includes amendments that require
an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined.&nbsp;The amendments in this ASU require that the acquirer record, in the
same period&rsquo;s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects,
if any, as a result of the changes<I>&nbsp;</I>to the provisional amounts, calculated as if the accounting had been completed at
the acquisition date. The amendments in this ASU require an entity to present separately on the face of the income statement or
disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded
in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.&nbsp;The
amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years
beginning after December 15, 2017.&nbsp;The amendments should be applied prospectively to adjustments to provisional amounts that
occur after the effective date of the ASU with earlier application permitted for financial statements that have not yet been made
available for issuance. The Company adopted this standard in the first quarter of 2017 and the adoption of this standard did not
have a material impact on its condensed consolidated financial statements as of and for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In July 2015, the FASB issued ASU 2015-11,&nbsp;<I>Inventory
(Topic 330): Simplifying the Measurement of Inventory</I>. The standard requires entities to measure most inventory &ldquo;at the
lower of cost and net realizable value,&rdquo; thereby simplifying the current guidance under which an entity must measure inventory
at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable
value). The Company adopted this standard in the first quarter of 2017 and the adoption of this standard did not have a material
impact on the Company&rsquo;s condensed consolidated financial statements as and for the six months ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2014, the FASB issued new guidance related to revenue
recognition, ASU 2014-09,&nbsp;<I>Revenue from Contracts with Customers (&ldquo;ASC 606&rdquo;)</I>, which outlines a comprehensive
revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize
revenue upon transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in
exchange for those goods or services. ASC 606 defines a five-step approach for recognizing revenue, which may require a company
to use more judgment and make more estimates than under the current guidance. The new guidance becomes effective in calendar year
2018 and early adoption in calendar year 2017 is permitted. Two methods of adoption are permitted: (a) full retrospective adoption,
meaning the standard is applied to all periods presented; or (b) modified retrospective adoption, meaning the cumulative effect
of applying the new guidance is recognized at the date of initial application as an adjustment to the opening retained earnings
balance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2016, April 2016 and December 2016, the FASB issued
ASU No. 2016-08,&nbsp;<I>Revenue From Contracts with Customers (ASC 606): Principal Versus Agent Considerations</I>, ASU No. 2016-10,&nbsp;<I>Revenue
From Contracts with Customers (ASC 606): Identifying Performance Obligations and Licensing</I>, and ASU No. 2016-20,&nbsp;<I>Technical
Corrections and Improvements to Topic 606, Revenue From Contracts with Customers</I>, respectively, which further clarify the implementation
guidance on principal versus agent considerations contained in ASU No. 2014-09. In May 2016, the FASB issued ASU 2016-12,&nbsp;<I>Revenue
from Contracts with Customers</I>, narrow-scope improvements and practical expedients which provides clarification on assessing
the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts
at transition. These standards will be effective for the Company beginning in the first quarter of 2018. Early adoption is permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2017, the Company has not yet completed its final
review of the impact of this new revenue recognition guidance, including the new disclosure requirements, as it is continuing to
evaluate the impacts of adoption and the implementation approach to be used. The Company plans to adopt the new standard effective
January&nbsp;1, 2018. The Company continues to monitor additional changes, modifications, clarifications or interpretations being
undertaken by the FASB, which may impact its current conclusions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>3.</B></TD>
    <TD><B><U>ACQUISITION</U></B></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 6, 2017, ADMA completed the acquisition of the Biotest
Assets from BPC. As a result of this transaction, the Company acquired Nabi-HB<SUP>&reg;</SUP>&nbsp;and Bivigam<SUP>&reg;</SUP>,
the Boca Facility and certain other assets of BTBU. The acquisition of the Biotest Assets expands the Company&rsquo;s product offering
with two FDA-approved products and provides direct control over the manufacturing and regulatory processes impacting the Company&rsquo;s
RI-002 product candidate, including remediation of the outstanding FDA warning letter previously issued to Biotest as well as certain
other remediation items affecting the Boca Facility. Pursuant to the acquisition, the Company issued to Biotest 4,295,580 voting
shares of its common stock and 8,591,160 non-voting shares of common stock. The Company will also transfer ownership of two of
its plasma centers to Biotest on January 1, 2019 as additional consideration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The purchase price was calculated as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 70%">Issuance of 12,886,740 shares of common stock (voting and non-voting) valued at $3.66 per share</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 13%; text-align: right">47,165,468</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Transfer of two plasma collection centers</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">12,621,844</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total purchase price</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">59,787,312</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table summarizes the preliminary allocation of
the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 70%">Cash</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 13%; text-align: right">12,500,000</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Inventory</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,197,354</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Land and buildings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">20,000,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Property and equipment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,209,800</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Assets held for sale</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">845,389</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Other current assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">795,553</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Trademark and other intangible rights to Nabi-HB</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,100,046</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Right to intermediates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">907,421</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Customer contract</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,076,557</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Goodwill</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,529,509</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Liabilities assumed</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(374,317</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Total purchase price</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">59,787,312</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company engaged various third party valuation specialists
to determine the fair value of the land and buildings, property and equipment, right to intermediates, customer contract and Nabi-HB<SUP>&reg;&nbsp;</SUP>intangible
assets, as well as the assets held for sale. Some of the valuations and underlying analyses that were performed are preliminary
and are subject to change upon finalization of more detailed analyses of the facts and circumstances that existed at the date of
the transaction. Any such changes would change the allocation of the purchase price. Therefore, the foregoing purchase price allocation
is preliminary and subject to change within the measurement period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Assets held for sale reflects certain manufacturing equipment
acquired in the transaction that will not be utilized in the manufacture or development of any of the Company&rsquo;s current products
or product candidates. The Company expects that the sale of these assets will be completed within one year from the date of the
acquisition transaction. Goodwill is expected to be deductible for tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a result of the foregoing transaction, BPC became a principal
stockholder and Biotest became a related party of the Company. Therefore, all transactions with Biotest subsequent to June 6, 2017,
including product and license revenues attributable to Biotest (see Note 2), are related party transactions. The results from BTBU&rsquo;s
operations are included in the Company&rsquo;s consolidated financial statements from the date of acquisition. The Company incurred
a total of approximately $5.7 million in transaction closing costs, which were expensed as incurred. For the three and six months
ended June 30, 2017, transaction closing costs amounted to approximately $1.2 million and $3.8 million, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following unaudited pro forma summary presents consolidated
information of the Company as if the business combination had occurred on January 1, 2016. The pro forma information is presented
for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had
the acquisition been consummated as of that time or that may result in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Revenues:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As reported</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">3,399,401</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,271,744</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">6,028,272</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">4,395,630</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proforma</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">10,569,393</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">22,704,653</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">24,292,042</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">44,336,311</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As reported</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(9,036,495</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(6,012,335</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(15,573,458</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(10,624,804</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proforma</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(12,751,262</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(14,473,470</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(24,826,749</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(29,073,476</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Basic and diluted net loss per share:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As reported</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.55</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.50</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(1.06</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.93</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proforma</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.49</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.58</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(0.96</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(1.20</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>4.</B></TD>
    <TD><B><U>DEBT</U></B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of outstanding senior notes payable is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-align: left">Oxford - Gross proceeds</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">20,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">20,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Paydown of principal balance</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,777,778</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,222,222</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Less:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,194,847</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,567,249</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Current portion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,666,667</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,111,111</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Senior notes payable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,360,708</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,321,640</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Senior Notes Payable</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 19, 2015, the Company entered into a Loan and Security
Agreement (the &ldquo;LSA&rdquo;) with Oxford Finance, LLC (&ldquo;Oxford&rdquo;), for up to $21.0 million of debt financing in
two term loan tranches.&nbsp;The first term loan tranche of $16.0 million from the LSA (the &ldquo;Term A Loan&rdquo;) was primarily
used to repay the Company&rsquo;s&nbsp;previous debt facility with Hercules Technology Growth Capital, Inc. dated December 2012.
On May 13, 2016, the Company amended the LSA with Oxford (the &ldquo;Amended LSA&rdquo;) which provided ADMA with an additional
$4.0 million term loan (the &ldquo;Term B Loan&rdquo;), which brings the total principal amount borrowed to $20.0 million. The
outstanding term loans bear interest at a rate per annum equal to the greater of (i) 7.80% and (ii) the sum of (a) the three-month
U.S. LIBOR rate (as reported in&nbsp;<I>The Wall Street Journal</I>) on the date occurring on the last business day of the month
that immediately precedes the month in which the interest will accrue, plus (b) 7.54% on the outstanding principal balance. The
effective interest rates for the Term A Loan and the Term B Loan, including backend fees equal to 8.95% of the total funded amount,
are 11.4% and 13.04%, respectively. The Company began repaying the principal balance on February 1, 2017 in equal installments
for a period of 36 months, unless accelerated as a result of certain events of default. The backend fees are due at the earlier
of loan maturity or prepayment. All term loans mature no later than January 1, 2020. The loans are secured by the Company&rsquo;s
assets, except for its intellectual property (which is subject to a negative pledge). The LSA contains customary representations,
warranties and covenants, including limitations on incurring indebtedness, engaging in mergers or acquisitions and making investments,
distributions or transfers. The Company was in compliance with all such covenants as of June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event the Company prepays&nbsp;a term loan for any reason,
the Company is obligated to pay a prepayment charge corresponding to a percentage of the principal amount of the applicable&nbsp;term
loan prepaid. The Amended LSA further modified the fees payable by the Company on mandatory or voluntary prepayment of a term loan
prior to its maturity date as follows:&nbsp;&nbsp;(i) for a prepayment made on or after the funding date of the applicable term
loan through and including the first anniversary of its funding date, an amount equal to 3.00% of the principal amount of the term
loan prepaid; (ii) for a prepayment made after the first anniversary of the funding date of the applicable term loan through and
including the second anniversary of such funding date, an amount equal to 2.00% of the principal amount of such term loan prepaid;
and (iii) for a prepayment of a term loan made after the second anniversary of its funding date and prior to its maturity date,
an amount equal to 1.00% of the principal amount of the term loan prepaid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Amended LSA, (i) the Company paid a total facility
fee of $125,000; (ii) certain adjustments were made to the time periods for any applicable prepayment fees; and (iii) certain defined
terms were adjusted, including a new February 1, 2017 amortization date. The Amended LSA further provides for customary representations,
warranties and covenants for the Company. Except as otherwise amended, the Amended LSA does not alter the terms of the LSA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Related Party Note Payable</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of the outstanding related party note payable is as
follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2017</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; text-align: left">Biotest - Gross proceeds</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">15,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Less:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Debt discount</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(172,852</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Note payable - related party</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14,827,148</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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    <!-- Field: /Page -->

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of the Biotest Assets (see
Note 3), ADMA BioManufacturing issued a subordinated note payable to BPC and in connection therewith received cash proceeds of
$15.0 million. The note bears interest at a rate of 6.0% per annum and matures on June 6, 2022. The Company is obligated to make
semi-annual interest payments, with all principal and unpaid interest due at maturity. The note is subordinate to the senior note
payable with Oxford. In the event of default, all principal and unpaid interest is due on demand. The subordinated note also contains
several non-financial covenants with which the Company was in compliance as of June 30, 2017. The Company incurred $0.2 million
of debt issuance costs in connection with the issuance of this note, which were recorded as a debt discount. The debt discount
is being amortized as interest expense over the term of the note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>5.</B></TD>
    <TD><B><U>STOCKHOLDERS&rsquo; EQUITY (DEFICIT)</U></B></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of the Biotest Assets (see
Note 3) the Company issued 4,295,580 shares of its voting common stock and 8,591,160 shares of its non-voting common stock, respectively.
The rights and preferences of the non-voting common are substantially the same as the common stock. BPC is prohibited from selling
such shares for six months following the acquisition of BTBU and is thereafter limited to selling shares of the Company in excess
of 15% of the outstanding shares of the Company in a 12-month period. The volume sale restriction expires on the three year anniversary
from the BTBU acquisition (&ldquo;Standstill Period&quot;). The non-voting common stock will automatically convert into common
stock upon (i) expiration of the Standstill Period, (ii) a liquidation event, (iii) Company insolvency, (iv) a permitted sale and
(v) certain dilutive issuances as defined in the Company&rsquo;s amended and restated certificate of incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 3, 2016, the Company completed an underwritten public
offering of 2,176,154 shares of its common stock, for gross proceeds of approximately $14.1 million. Net proceeds from this offering
were approximately $13.1 million, after payment of underwriting discounts and offering expenses of approximately $1.0 million.
The shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the
SEC on December 23, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Equity incentive plan</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair value of stock options granted under the Company&rsquo;s
2007 Employee Stock Option Plan (the &ldquo;2007 Plan&rdquo;) and the ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation
Plan, as amended and restated (the &ldquo;2014 Plan&rdquo;), was determined on the date of grant using the Black-Scholes option
valuation model. The Black-Scholes model was developed for use in estimating the fair value of publicly traded options, which have
no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective
assumptions including the expected stock price volatility. The stock options granted to employees and directors have characteristics
significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the
fair value estimate. Because there has been limited data related to the Company's common stock and very little historical experience
with the Company's stock options, similar public companies and a pro rata percentage of the Company&rsquo;s common stock were used
for calculating ADMA&rsquo;s volatility for comparison and expectations as to the assumptions required for fair value computation
using the Black-Scholes methodology. The following assumptions were used to determine the fair value of options granted during
the six months ended June 30, 2017 and 2016:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Six Months Ended</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>June 30, 2017</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>June 30, 2016</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 64%">Expected term</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: center">5.8 - 6.3 years</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: center">5.8 - 6.3 years</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Volatility</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">51-64%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">51-52%</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Dividend yield</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">0.0</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Risk-free interest rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">1.77-2.29%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">1.54-1.79%</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The weighted average remaining contractual life of stock options
outstanding and expected to vest at June 30, 2017 is 8.0 years. The weighted average remaining contractual life of stock options
exercisable at June 30, 2017 is 5.3 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of the Company&rsquo;s option activity under the 2007
Plan and 2014 Plan and related information is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">Six Months Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted Average Exercise Price</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%">Outstanding at beginning of period</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 11%; text-align: right">1,535,187</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">7.90</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Forfeited</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(62,836</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9.12</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Expired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,686</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8.92</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,856,595</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3.79</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Outstanding at end of period and expected to vest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,321,260</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5.58</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Options exercisable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,277,674</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7.66</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 105; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock-based compensation expense for the
three and six months ended June 30, 2017 and 2016 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center"><B>Three Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center"><B>Six Months Ended</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center"><B>June 30,</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>2017</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>2016</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>2017</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>2016</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 44%">Research and development</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">68,434</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">132,277</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">121,417</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">288,833</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Plasma centers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">13,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">11,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">25,947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">24,755</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>General and administrative</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">223,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">166,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">394,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">419,537</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Cost of goods sold</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Total stock-based compensation expense</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">311,363</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">310,945</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">547,240</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">733,125</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2017, the total compensation expense related
to unvested options not yet recognized totaled $4,934,857. The weighted average vesting period over which the total compensation
expense will be recorded related to unvested options not yet recognized at June 30, 2017 was approximately 3.1 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>6.</B></TD>
    <TD><B><U>INVENTORIES</U></B></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides the components of inventories:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>June, 30</B><BR>
<B>2017</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>December 31</B><BR>
<B>2016</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 70%">Raw materials</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">9,376,705</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">5,020,146</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Finished goods</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">3,774,028</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total inventories</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">13,150,733</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">5,020,146</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Inventories are stated at the lower of cost or market with cost
being determined on the first-in, first-out method. Finished goods inventories as of June 30, 2017 is comprised of Nabi-HB<SUP>&reg;</SUP>,
recorded at fair value as part of the purchase price allocation of the Biotest Assets acquired. All activities associated with
the production of inventories used in research and development activities are expensed as incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>7.</B></TD>
    <TD><B><U>INTANGIBLE ASSETS </U></B></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Intangible assets at June 30, 2017 and December 31, 2016 consist
of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Accumulated Amortization</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Accumulated Amortization</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Net</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 34%; font-size: 10pt; text-align: left">Trademark and other intangible rights related to Nabi-HB&reg;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">4,100,046</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">39,048</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">4,060,998</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 7%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Right to intermediates</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">907,421</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,642</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">898,779</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Customer contract</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,076,557</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">25,331</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,051,226</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">6,084,024</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">73,021</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">6,011,003</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<!-- Field: Page; Sequence: 106; Value: 1 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the previous contract manufacturing agreement between
ADMA and BPC, intermediate by-products derived from the manufacture of RI-002 were property of Biotest. As a result of the transaction,
ADMA now has the right to these intermediate products. The customer contract pertains to a contract manufacturing agreement with
a third party that the Company assumed upon the completion of the acquisition of the Biotest Assets. Amortization expense related
to these acquisition-related intangible assets for the three months and six months ended June 30, 2017 was $0.1 million. Estimated
aggregate future aggregate amortization expense for the next five years is expected to be as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 80%">Remainder of 2017</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 11%; text-align: right">547,657</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>2018</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,095,314</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>2019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,095,314</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>2020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">816,675</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>2021</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">715,352</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>8.</B></TD>
    <TD><B><U>PROPERTY, PLANT AND EQUIPMENT</U></B></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property, plant and equipment and related
accumulated depreciation are summarized as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December
    31, 2016</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-size: 10pt; text-align: left">Manufacturing and laboratory equipment</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">8,176,699</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">306,411</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Office equipment and computer software</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">256,856</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">188,277</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Furniture and fixtures</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">473,638</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,030,257</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Leasehold improvements</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">78,858</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,699,104</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Land</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11,700,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Buildings</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,300,000</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">28,986,051</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,224,049</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation and amortization</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(359,383</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(2,223,265</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">28,626,668</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">2,000,784</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Fixed assets are stated at cost less accumulated
depreciation. Depreciation is calculated using the straight-line method over the asset&rsquo;s estimated useful life. Land is not
depreciated. The buildings were assigned a useful life of 30 years. Property and equipment other than land and buildings have useful
lives ranging from 3 to 10 years. Leasehold improvements are amortized over the lesser of the lease term or their estimated useful
lives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>9.</B></TD>
    <TD><B><U>RELATED PARTY TRANSACTIONS</U></B></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company leases an office building and equipment from Areth,
LLC (&ldquo;Areth&rdquo;) pursuant to a shared services agreement on a month-to-month basis of which terms were amended by the
Company&rsquo;s Board of Directors in June 2016.&nbsp;Rent expense amounted to $48,000 and $71,888 for the three months ended June
30, 2017 and 2016 respectively, and $96,000 for the six months ended June 30, 2017 and 2016.&nbsp;Areth is a company controlled
by Dr. Jerrold B. Grossman, the Company&rsquo;s Vice Chairman, and Adam S. Grossman, the Company&rsquo;s President and Chief Executive
Officer, and the Company pays Areth monthly fees for the use of such office space and for other information technology, general
warehousing and administrative services.&nbsp;The Company also reimburses Areth for office and building related (common area) expenses,
equipment and certain other operational expenses, which have not been material to the condensed consolidated financial statements
for the six months ended June 30, 2017 and 2016.&nbsp;The Company maintains deposits and other accounts at Pascack Bankcorp, a
bank of which Dr. Grossman served as a director through January 2016, and which was approximately 5%-owned by members of the Grossman
family. Pascack Bankcorp was acquired by Lakeland Bancorp, Inc. in January 2016 and Dr. Grossman is currently a member of the Corporate
Advisory Council of Lakeland Bancorp Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2017, the Company has a $15.0 million subordinated
note payable to BPC (see Note 4), and recognized approximately $60,000 of interest expense on this note for the three and six months
ended June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the three and six months ended June 30, 2017 and 2016, the
Company recognized revenues under its out-licensing agreement with Biotest of $35,708 and $71,417, respectively. Deferred revenue
of $2,761,450 and $2,832,867 as of June 30, 2017 and December 31, 2016 is related to this agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Biotest is the Company&rsquo;s largest customer for the sale
of normal source plasma. Plasma sales to Biotest for the three and six months ended June 30, 2017 were approximately $2.4 million
and $4.5 million, respectively. Plasma sales to Biotest for the three and six months ended June 30, 2016 were approximately $1.8
million and $3.8 million, respectively. Accounts receivable includes approximately $1.2 million and $1.0 million due from Biotest
as of June 30, 2017 and December 31, 2016, respectively. Additionally, Biotest is a supplier of RSV plasma to ADMA, with the Company
purchasing approximately $0.3 million and $0.9 million of RSV plasma in the six months ended June 30, 2017 and 2016, respectively.
Included in accounts payable is approximately $48,000 and $82,000 due to Biotest as of June 30, 2017 and December 31, 2016, respectively.
The following table summarizes the related party balances with Biotest:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; margin-left: 0">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Sale and purchase of plasma</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 30%; font-size: 10pt; text-align: left; text-indent: 10pt">Product revenue</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,362,059</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">1,781,428</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">4,454,274</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">3,840,190</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: 10pt">Purchases</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">141,754</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">382,685</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">324,140</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">888,255</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">License revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">35,708</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">35,708</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">71,417</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">71,417</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">Interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">60,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">60,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">June 30,</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: right">December 31,</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">2017</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">2016</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Accounts receivable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">1,209,733</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">969,675</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">48,466</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">82,427</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">797,070</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Note payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,000,000</TD><TD STYLE="font-size: 10pt; text-align: left"></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Accrued interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">60,000</TD><TD STYLE="font-size: 10pt; text-align: left"></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Deferred revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,761,450</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,832,867</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of the Biotest Assets, the
Company entered into a&nbsp;Transition Services Agreement with BPC pursuant to which each of the Company and BPC agreed to provide
transition services to the other party, including services related to finance, human resources, information technologies, leasing
of equipment and clinical and regulatory services for a period of up to 24 months after the June 6, 2017 closing date, as well
as agreements to lease certain laboratory space within the Boca Facility to BPC for a period of up to 24 months after the closing
date of the acquisition transaction. As of June 30, 2017, $797,010 was payable by the Company to BPC for services rendered and
expenses incurred on behalf of the Company related to these agreements. This amount is reflected in accrued expenses in the accompanying
consolidated balance sheet.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the terms of the acquisition of the Biotest Assets, the
Company will transfer two plasma collection centers to BPC on January 1, 2019. The purchase price payable of $12.6 million as of
June 6, 2017 represents the fair value of this obligation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><B>10.</B></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>COMMITMENTS AND CONTINGENCIES</U></B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>General Legal Matters</U></I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is and may become subject to certain legal proceedings
        and claims arising in connection with the normal course of its business. In the opinion of management, there are currently no claims
        that would have a material adverse effect on its consolidated financial position, results of operations or cash flows.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Operating leases</U></I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of the Biotest Assets,
the Company assumed two warehouse leases in Boca Raton, FL for additional storage space for raw materials, spare parts and other
supplies related to its business. These leases expire on December 31, 2017 and July 31, 2018, respectively. The aggregate minimum
lease payments for these two leases are approximately $9,000 per month. Additionally, in September 2016, BPC entered into a lease
for 36 months for certain specialized equipment related to process development. This equipment is utilized by the Company and
the Company reimburses BPC in the approximate amount of $3,500 per month.&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February 17, 2017, ADMA BioCenters entered into a lease (the
&ldquo;Lease&rdquo;) with Home Center Properties, LLC, a Georgia limited liability company (&ldquo;Landlord&rdquo;), for approximately
12,167 square feet located at 166 Earnest W. Barrett Parkway, Marietta, GA (the &ldquo;Premises&rdquo;). ADMA BioCenters will utilize
the Premises as a facility specializing in the collection of human plasma and blood, general office administration and any other
related use. The Lease has an initial term of approximately eight years and nine months (the &ldquo;Initial Term&rdquo;), commencing
upon substantial completion of &ldquo;Landlord&rsquo;s Work&rdquo; (as defined in the Lease) (the &ldquo;Lease Commencement Date&rdquo;),
with rent payments commencing 150 days after the Lease Commencement Date. The Lease Commencement Date is July 1, 2017. ADMA BioCenters&rsquo;
total monthly cost of the Premises (inclusive of Landlord&rsquo;s &ldquo;Operating Costs&rdquo;, &ldquo;Taxes&rdquo; and &ldquo;Insurance
Charges&rdquo; (as such terms are defined in the Lease)) will range from approximately $20,000 to $27,000 during the Initial Term.
Provided that the Lease is in full force and effect and that there has been no event of default (as defined in the Lease) beyond
the expiration of any applicable notice and cure period, ADMA BioCenters has the option to extend the term of the Lease for two
additional periods of five years each (each, an &ldquo;Extension Term&rdquo;), each Extension Term on the same terms, covenants
and conditions as the Lease, with the rent for each Extension Term to equal the mutually agreed fair market value of the Premises
on the commencement of such Extension Term. The Lease also contains customary default provisions, representations, warranties and
covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Contract manufacturing agreement</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the acquisition of the Biotest Assets, the
Company acquired all of the rights and assumed all of the obligations under an existing agreement with a third party related to
the fractionation of plasma provided by the third party. The agreement terminates on December 31, 2020, with 2020 being a wind-down
year. All other years have minimum production requirements as well as a payment due to the counterparty to the contract of $1.5
million per year if a minimum of 11 batches are not manufactured in that year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Contract filler agreement</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has an agreement with a third party to fill and
package its plasma for sale to customers. BTBU&rsquo;s agreement with this same contract filler to package Nabi-HB<SUP>&reg;</SUP>&nbsp;and
Bivigam<SUP>&reg;&nbsp;</SUP>was not assigned to ADMA in the acquisition of the Biotest Assets. This contract filler is the only
provider approved by the FDA to fill and package these products. The Company is currently working with the contract filler to amend
its current agreement to include Nabi-HB<SUP>&reg;</SUP>&nbsp;and Bivigam<SUP>&reg;</SUP>&nbsp;in the existing ADMA contract. At
this time, the Company is not able to determine the impact that the proposed amendment would have on the overall terms of the contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Post-marketing commitments</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the approval of the BLA for Bivigam<SUP>&reg;</SUP>,
on December 19, 2012 Biotest committed to perform two additional post-marketing studies. The first is a pediatric study to evaluate
the efficacy and safety of Bivigam<SUP>&reg;&nbsp;</SUP>in children and adolescents, and the second is a post-authorization safety
study to further assess the potential risk of hypotension and hepatic and renal impairment in Bivigam<SUP>&reg;</SUP>-treated
patients with Primary Humoral Immunodeficiency. These studies are still pending completion, ADMA has assumed the remaining obligations,
and the costs of the studies will be expensed as they are incurred. The Company currently expects both studies to be completed
by the end of 2021. However, the timing of the completion of these studies is dependent upon the availability of Bivigam<SUP>&reg;</SUP>&nbsp;and
the completion of the planned manufacturing process improvements.&nbsp;</P>



</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><B>11.</B></TD>
    <TD><B><U>SEGMENTS</U></B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is engaged in the development, manufacturing and
commercialization of human plasma and plasma-derived therapeutics. The Company&rsquo;s ADMA BioManufacturing segment reflects the
Company&rsquo;s immune globulin manufacturing and development operations in Florida, acquired on June 6, 2017 (see Note 3). The
Plasma Collection Centers segment consists of two FDA-licensed source plasma collection facilities located in Georgia, with a third
collection center scheduled to open in late 2017 (see Note 10). The Company defines its segments as those business units whose
operating results are regularly reviewed by the chief operating decision maker (&ldquo;CODM&rdquo;) to analyze performance and
allocate resources. The Company&rsquo;s CODM is its President and Chief Executive Officer. Summarized financial information concerning
reportable segments is shown in the following tables:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30, 2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">ADMA BioManufacturing</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Plasma Collection</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Centers</P></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Corporate</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Consolidated</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 10pt">Revenues</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">539,223</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,824,470</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">35,708</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">3,399,401</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cost of product revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,498,856</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,835,163</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,334,019</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Gross (loss) profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,959,633</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">989,307</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">35,708</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(934,618</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,118,300</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(610,864</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(4,672,704</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(8,401,868</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other expense, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(61,987</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(572,640</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(634,627</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,180,287</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(610,864</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,245,344</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(9,036,495</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Total assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">65,913,839</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,101,977</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16,623,437</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">84,639,253</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Depreciation and amortization expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">158,398</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">103,703</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,031</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">277,132</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30, 2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">ADMA BioManufacturing</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Plasma Collection</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Centers</P></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Corporate</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Consolidated</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 10pt">Revenues</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,236,036</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">35,708</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">2,271,744</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cost of product revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,344,241</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,344,241</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Gross profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">891,795</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">35,708</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">927,503</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(402,507</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,088,343</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,490,850</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other expense, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(521,485</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(521,485</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(402,507</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(5,609,828</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(6,012,335</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Total assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,509,903</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,232,086</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">31,741,989</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Depreciation and amortization expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">102,330</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13,671</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">116,001</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30, 2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">ADMA BioManufacturing</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0; text-align: center">Plasma Collection</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Centers</P></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Corporate</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Consolidated</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 10pt">Revenues</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">539,223</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">5,417,632</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">71,417</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">6,028,272</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cost of product revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,498,856</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,451,450</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,950,306</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Gross profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,959,633</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,966,182</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">71,417</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">77,966</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,118,300</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,113,464</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(10,107,107</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(14,338,871</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other expense, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(61,987</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,172,600</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,234,587</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3,180,287</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,113,464</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(11,279,707</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(15,573,458</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Capital expenditures</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">81,294</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15,263</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">96,557</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Depreciation and amortization expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">158,398</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">207,343</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,453</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">395,194</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>





<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="margin-top: 0; margin-bottom: 0"><B>&nbsp;</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30, 2016</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">ADMA BioManufacturing</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" NOWRAP STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Plasma Collection</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Centers</P></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Corporate</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Consolidated</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; font-size: 10pt">Revenues</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">4,324,213</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">71,417</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">4,395,630</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Cost of product revenue</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,610,662</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,610,662</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Gross profit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,713,551</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">71,417</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,784,968</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loss from operations</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(861,169</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(8,788,217</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(9,649,386</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other expense, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(975,418</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(975,418</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(861,169</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(9,763,635</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(10,624,804</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Capital expeditures</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">32,733</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">25,301</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">58,034</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Depreciation and amortization expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">207,519</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">26,875</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">234,394</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The &ldquo;Corporate&rdquo; column above
includes general and administrative overhead expenses. Total assets included in the &ldquo;Corporate&rdquo; column above includes
assets related to corporate and support functions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><B>12.</B></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION</U></B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Supplemental cash flow information for the six months ended
        June 30, 2017 and 2016 is as follows:</U></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>SUPPLEMENTAL CASH FLOW INFORMATION:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 70%">Cash paid for interest</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="width: 11%; border-bottom: black 2.25pt double; text-align: right">833,515</TD>
    <TD STYLE="width: 1%; border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="width: 11%; border-bottom: black 2.25pt double; text-align: right">681,470</TD>
    <TD STYLE="width: 1%; border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><B>Noncash Financing and Investing Activities:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Assets acquired through the issuance of common stock and liabilities assumed</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">60,161,629</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Equipment acquired through related party payable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">344,610</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Accrued equity issuance costs</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">172,200</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Accrued debt issuance costs</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">22,904</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>End of term liability for Oxford Note Payable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">358,000</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Warrants issued in connection with note payable</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">86,300</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Report of Independent Registered Public
Accounting Firm</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Board of Directors and Stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA Biologics, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of ADMA Biologics, Inc. and Subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements
of operations, changes in stockholders&rsquo; (deficiency) equity, and cash flows for the years then ended. The Company&rsquo;s
management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s
internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of ADMA Biologics, Inc. and Subsidiaries
as of December 31, 2016 and 2015, and the results of their operations and their cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As further discussed in Note 1 to the
accompanying consolidated financial statements, management believes that the Company will continue to incur net losses and negative
net cash flows from operating activities through the drug development, approval and commercialization preparation process. These
conditions raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">/s/ CohnReznick LLP</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 81%">&nbsp;</TD>
    <TD STYLE="width: 19%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Roseland, New Jersey</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">February 24, 2017</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B><BR>
<B>CONSOLIDATED BALANCE SHEETS</B><BR>
<B>December 31, 2016 and 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left; text-indent: 9.35pt">Cash and Cash Equivalents</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">9,914,867</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">10,440,959</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Short-Term Investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,390,184</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,368,177</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Accounts Receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,018,027</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">924,468</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 9.35pt">Inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,020,146</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,445,773</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.35pt">Prepaid Expenses</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">313,914</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">111,027</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 28.3pt">Total Current Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">21,657,138</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">21,290,404</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Property and Equipment at Cost, Net</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,000,784</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,396,950</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other Assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-indent: 9.35pt">Deposits</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,163</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,163</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 28.3pt">Total Other Assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,163</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,163</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">23,685,085</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">23,714,517</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current Liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Accounts Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,564,681</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,087,855</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Accrued Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,385,356</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,968,384</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Current Portion of Note Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,111,111</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Current Portion of Deferred Revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,154</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,154</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.35pt">Current Portion of Leasehold Improvement Loan</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">16,559</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,139</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 18.85pt">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,222,861</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,216,532</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Notes Payable, Net of Debt Discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,321,640</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,247,212</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">End of Term Liability, Notes Payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,790,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,432,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Deferred Revenue, Net of Current Portion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,690,033</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,832,867</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred Rent Liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,116</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">128,676</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Leasehold Improvement Loan, Net of Current Portion</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">19,697</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">36,256</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">28,142,347</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">22,893,543</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">COMMITMENTS AND CONTINGENCIES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">STOCKHOLDERS' (DEFICIENCY) EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 9.35pt">Common Stock $0.0001 par value 75,000,000 shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 18.85pt">authorized, and 12,886,741 and 10,713,087 shares issued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 18.85pt">and outstanding as of December 31, 2016 and December 31, 2015,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 18.85pt">respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,289</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,072</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 9.35pt">Additional Paid-In Capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">102,476,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,239,569</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.35pt">Accumulated Deficit</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(106,934,818</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(87,419,667</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL STOCKHOLDERS' (DEFICIENCY) EQUITY</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(4,457,262</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">820,974</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">23,685,085</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">23,714,517</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: Red"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B><BR>
<B>CONSOLIDATED STATEMENTS OF OPERATIONS</B><BR>
<B>Years Ended December 31, 2016 and 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: bottom"><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">REVENUES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 56%; text-align: left; text-indent: 7.3pt">Product revenue</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">10,518,203</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">7,050,283</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 7.3pt">License and other revenue</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">142,834</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">127,350</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 20pt">Total Revenues</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,661,037</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,177,633</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">OPERATING EXPENSES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Cost of product revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,360,761</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,311,461</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,688,238</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,015,946</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Plasma centers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,447,691</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,618,065</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 7.3pt">General and administrative</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,494,742</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">6,745,968</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL OPERATING EXPENSES</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,991,432</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">22,691,440</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">LOSS FROM OPERATIONS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,330,395</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(15,513,807</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">OTHER INCOME (EXPENSE):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,317</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,830</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,239,569</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,842,716</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Other income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,496</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 7.3pt">Change in fair value of stock warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67,860</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 7.3pt">Loss on extinguishment of debt</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(719,097</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">OTHER EXPENSE, NET</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,184,756</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,456,123</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">NET LOSS</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(19,515,151</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(17,969,930</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">NET LOSS PER COMMON SHARE,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 7.3pt">Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1.61</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1.73</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">WEIGHTED AVERAGE SHARES</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 7.3pt">OUTSTANDING, Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,153,407</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,412,305</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to consolidated financial statements</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B><BR>
<B>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo; (DEFICIENCY) EQUITY</B><BR>
<B>Years Ended December 31, 2016 and 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Common Stock</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Additional</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center"></TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Shares</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Amount</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Paid-in Capital</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">Accumulated</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Deficit</P></TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="21">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%">Balance - December 31, 2014</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">9,291,823</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">929</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">75,457,458</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(69,449,737</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,008,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,711,047</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,711,047</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Issuance of common stock, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,408,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">141</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,245,239</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,245,380</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Stock issued in connection with stock options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,514</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,226</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,227</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Restricted stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Elimination of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408,900</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Warrants issued in connection with note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">367,700</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">367,700</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,969,930</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(17,969,930</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Balance - December 31, 2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,713,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,072</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,239,569</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(87,419,667</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">820,974</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,250,074</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,250,074</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Issuance of common stock, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,176,154</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,900,324</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,900,541</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Restricted stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Warrants issued in connection with note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net loss</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(19,515,151</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(19,515,151</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Balance - December 31, 2016</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,886,741</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,289</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">102,476,267</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(106,934,818</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(4,457,262</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to consolidated financial statements</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B><BR>
<B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B><BR>
<B>Years Ended December 31, 2016 and 2015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 56%; text-align: left; text-indent: 6.6pt">Net loss</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">(19,515,151</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">(17,969,930</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 6.6pt">Adjustments to reconcile net loss to net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 10pt">cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">469,576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">469,821</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,250,074</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,711,047</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(67,860</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Amortization of debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">676,943</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">353,635</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Amortization of deferred financing costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,717</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Payment-in-kind interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,536</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Amortization of license and other revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(142,834</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(127,350</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Loss on extinguishment of debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">719,097</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 6.6pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(93,559</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(540,507</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 14.75pt">Inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,574,373</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,737,010</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(202,887</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,559</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">476,826</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">202,994</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,972</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(199,615</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Deferred revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,525,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Deferred rent liability</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(30,560</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">45,462</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(18,268,973</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(15,418,404</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Purchases of short-term investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,680,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,130,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Redemptions of short-term investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,657,993</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,414,498</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Purchase of property and equipment</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(73,410</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(26,073</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Net cash provided by (used in) investing activities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">904,583</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,741,575</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Proceeds from Oxford note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Proceeds from issuance of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,145,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,257,380</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Proceeds from stock options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,227</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Repayment of Hercules note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,300,781</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Prepayment penalty of early extinguishment of note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(229,512</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Payment of debt issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(47,104</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(228,065</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Payment of Hercules end of term fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(132,500</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 14.75pt">Equity issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,244,459</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Payments of leasehold improvement loan</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(15,139</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(13,841</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">16,838,298</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,401,908</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">NET DECREASE IN CASH AND CASH EQUIVALENTS</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(526,092</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,758,071</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,440,959</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">17,199,030</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 2.5pt">CASH AND CASH EQUIVALENTS - END OF YEAR</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,914,867</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,440,959</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">SUPPLEMENTAL INFORMATION:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Cash paid for interest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,530,235</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,326,788</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Supplemental Disclosure of Noncash Financing Activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Reclassification of equity issuance costs to additional paid-in capital</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Warrants issued in connection with note payable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">86,300</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">367,700</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">End of term liability in connection with note payable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">358,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,432,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 14.75pt">Elimination of warrant liability</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">408,900</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">See notes to consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND SUBSIDIARIES</B><BR>
<B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B><BR>
<B>DECEMBER 31, 2016 AND 2015</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>1. <U>ORGANIZATION AND BUSINESS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA Biologics, Inc. (&ldquo;ADMA&rdquo; or the &ldquo;Company&rdquo;)
is a late stage biopharmaceutical company that develops, manufactures, and intends to commercialize specialty plasma-derived biologics
for the proposed treatment of immune deficiencies and prevention of certain infectious diseases. The Company&rsquo;s targeted patient
populations include immune-compromised individuals who suffer from an underlying immune deficiency disease or who may be immune-suppressed
for medical reasons. ADMA also operates through its wholly-owned subsidiary, ADMA Bio Centers Georgia Inc., (&ldquo;ADMA BioCenters&rdquo;),
a source plasma collection business with U.S. Food and Drug Administration (&ldquo;FDA&rdquo;) approved facilities in Norcross,
Georgia and Marietta, Georgia. Each facility holds certifications from the German Health Authority (&ldquo;GHA&rdquo;) and the
Korean Ministry of Food and Drug Safety (&ldquo;MFDS&rdquo;). ADMA BioCenters supplies ADMA with a portion of its raw material
plasma for the manufacture of RI-002, ADMA&rsquo;s lead product candidate, which the Company is currently developing for the treatment
of Primary Immune Deficiency Disease (&ldquo;PIDD&rdquo;). A Biologics License Application (&ldquo;BLA&rdquo;) for RI-002 was submitted
to the FDA and accepted for review during the third quarter of 2015 for the treatment of PIDD. In July 2016, the FDA issued a Complete
Response Letter (&ldquo;CRL&rdquo;) to the Company for its BLA for RI-002. The CRL did not cite any concerns with the clinical
safety or efficacy data for RI-002 submitted in the BLA, nor did the FDA request any additional clinical studies be completed prior
to FDA approval of RI-002. The FDA identified in the CRL, among other things, certain outstanding inspection issues and deficiencies
at the Company&rsquo;s third-party contract manufacturers and vendors and requested documentation of corrections for a number of
those issues. The FDA indicated in the CRL that it cannot grant final approval of the BLA until, among other things, these deficiencies
are resolved. Since receiving the CRL, the Company has worked diligently with its contract fill and finisher as well as the contract
testing laboratory. The Company has also continued to work with its third-party contract manufacturer, Biotest Pharmaceuticals
Corporation (&ldquo;BPC&rdquo;), and on January 21, 2017, the Company signed a definitive acquisition agreement to acquire certain
manufacturing and therapy-related assets from Biotest in Boca Raton, Florida, a wholly-owned subsidiary of Biotest Aktiengesellschaft
(&ldquo;Biotest&rdquo;) in efforts to address the CRL and remediate the outstanding warning letter at the manufacturing facility.
The acquisition of certain manufacturing and therapy-related assets of Biotest (the &ldquo;Proposed Acquisition&rdquo;) is anticipated
to close during the first half of 2017. The Company and its vendors are awaiting certain feedback from the agency on submissions
already made and the Company intends to provide a timeline for resubmission of the BLA for RI-002 as soon as practicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has experienced net losses and negative cash flows
from operations since inception in 2004 and expects these conditions to continue for the foreseeable future. Since inception, the
Company has needed to raise capital from the sales of its equity securities and debt financings to sustain operations. In May 2016,
the Company completed an underwritten public offering of its common stock, raising gross proceeds of approximately $14.1 million,
and subsequently borrowed an additional $4.0 million under its Loan and Security Agreement (&ldquo;LSA&rdquo;) with Oxford Finance
LLC (&ldquo;Oxford&rdquo;), which brought the total principal borrowed to $20.0 million (see Note 5). In February and December
2014, the Company borrowed a total of $15 million from Hercules Technology Growth Capital, Inc. (&ldquo;Hercules&rdquo;) and subsequently
refinanced its borrowings of $16 million with Oxford (see Note 5). In March 2015, ADMA completed an underwritten public offering
of its common stock, raising gross proceeds of $11.3 million. In June 2015, ADMA entered into the LSA with Oxford, as collateral
agent and lender, pursuant to which ADMA accessed an initial term loan in the aggregate principal amount of $16.0 million, of which
$15.7 million was used to repay the Hercules loan balance of $15.0 million, along with $0.4 million of interest, and $0.3 million
of prepayment premium and other fees, (the &ldquo;Prior Loan Agreement&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December 31, 2016, the Company had working capital of
$10.4 million, consisting primarily of $9.9 million of cash and cash equivalents, $5.4 million of short-term investments, $1.0
million of accounts receivable, $5.0 million of inventories, and $0.3 million of prepaid expenses, offset primarily by the current
portion of note payable due to Oxford of $6.1 million, $2.6 million of accounts payable, $2.4 million of accrued expenses and $0.2
million of deferred revenue. Based upon the Company&rsquo;s projected revenue and expenditures for 2017, including the fees associated
to the Proposed Acquisition of certain BPC assets, regulatory and consulting fees for RI-002 associated with third-party manufacturers
and ongoing discussions with the FDA, continuing implementation of the Company&rsquo;s commercialization and expansion activities
and certain other assumptions, management currently believes that its cash, cash equivalents, short-term investments, projected
revenue and accounts receivable are sufficient to fund ADMA&rsquo;s operations, as currently conducted, into the second half of
2017. These estimates may change based upon the timing of the closing of the Proposed Acquisition of certain BPC assets, whether
or when the FDA approves RI-002, the timing of any required commercial manufacturing scale up activities or if any other assumptions
of the Company change.&nbsp; This timing may also change based upon the timing of the completion of the Proposed Acquisition, anticipated
during the first half of 2017. Upon the closing of the Proposed Acquisition, BPC will be providing funds to ADMA consisting of:
$12.5 million in funding, $15.0 million in debt financing and an additional $12.5 million commitment towards a future equity financing
is expected to be sufficient to fund operations into the first quarter of 2018. There is no assurance that we will be able to successfully
close on the Proposed Acquisition. Other than the funding to be provided by BPC, the Company does not currently have arrangements
to obtain additional financing. Furthermore, if the Company&rsquo;s assumptions underlying its estimated expenses and revenues
are incorrect, it may have to raise additional capital sooner than anticipated. Due to numerous risks and uncertainties associated
with the research and development and potential future commercialization of its product candidate, the Company is unable to estimate
with certainty the amounts of increased capital outlays and operating expenditures associated with its development activities.
The Company&rsquo;s current estimates may be subject to change as circumstances regarding its business requirements evolve. The
Company may decide to raise capital through public or private equity offerings or debt financings, or obtain a bank credit facility
or corporate collaboration and licensing arrangements. The Company does not have any existing commitments for future external funding.
The sale of additional equity or debt securities, if convertible, could result in dilution to the Company&rsquo;s stockholders.
The incurrence of indebtedness would result in increased fixed obligations and could also result in covenants that would restrict
the Company&rsquo;s operations or other financing alternatives. Additional equity or debt financing, grants, or corporate collaboration
and potential licensing arrangements may not be available on acceptable terms, if at all. If adequate funds are not available,
the Company may be required to delay, reduce the scope of or eliminate the Company&rsquo;s research and development programs, reduce
the Company&rsquo;s planned clinical trials and delay or abandon potential commercialization efforts of the Company&rsquo;s lead
or other product candidates. The Company has reported losses since inception in June 2004 through December 31, 2016 of $106.9 million.
Management believes that the Company will continue to incur net losses and negative net cash flows from operating activities to
fund its research and development, commercial programs and meet its obligations on a timely basis through the foreseeable future.
As such, these factors raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. The accompanying
consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying
amounts and the classification of liabilities that might be necessary from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ADMA&rsquo;s long-term liquidity will be dependent upon on its
ability to raise additional capital, to fund its research and development and commercial programs and meet its obligations on a
timely basis. If ADMA is unable to successfully raise sufficient additional capital, it will likely not have sufficient cash flow
and liquidity to fund its business operations, forcing ADMA to curtail activities and, potentially significantly reduce, or potentially
cease operations. Even if ADMA is able to raise additional capital, such financings may only be available on unattractive terms,
resulting in significant dilution of stockholders&rsquo; interests and, in such event, the value and potential future market price
of its common stock may decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There can be no assurance that the Company&rsquo;s research
and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject
to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements,
development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary
technology, and compliance with FDA and other governmental regulations and approval requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2. <U>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following comprises the Company&rsquo;s significant accounting
policies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Basis of presentation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying consolidated financial statements include the
accounts of ADMA Biologics, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have
been eliminated in consolidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Cash and cash equivalents</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company considers all highly-liquid instruments purchased
with a maturity of three months or less to be cash equivalents. The Company purchases certificates of deposit with maturity schedules
of three, six, nine and twelve months. Instruments with original maturities greater than three months but less than twelve months
are included in short-term investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company regularly maintains cash and short-term investments
at third-party financial institutions in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance limit. While the
Company monitors the daily cash balances in the operating accounts and adjusts the balances as appropriate, these balances could
be impacted, and there could be a material adverse effect on the Company&rsquo;s business, if one or more of the financial institutions
with which the Company has deposits fails or is subject to other adverse conditions in the financial or credit markets. To date,
the Company has not experienced a loss or lack of access to its invested cash or cash equivalents; however, the Company cannot
provide assurance that access to its invested cash and cash equivalents will not be impacted by adverse conditions in the financial
and credit markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Inventories</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Plasma inventories (both plasma intended for resale and plasma
intended for internal use in the Company's research and development and future anticipated commercialization activities of which
certain quantities are labeled as normal source and Respiratory Syncytial Virus, (&ldquo;RSV&rdquo;) high titer) are carried at
the lower of cost or market value determined by the first-in, first-out method. Research and development plasma used in clinical
trials was processed to a finished product and subsequently expensed to research and development. Inventory at December 31, 2016
and 2015 consists of high titer RSV plasma and normal source plasma.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Revenue recognition</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Depending on the agreement with the customer, product revenues
from the sale of human plasma collected at the Company&rsquo;s FDA-licensed plasma collection centers are recognized at the time
of transfer of title and risk of loss to the customer, which occurs at the time of shipment. Product revenues are recognized at
the time of delivery if the Company retains the risk of loss during shipment. For the fiscal year ended December 31, 2016, two
of the Company&rsquo;s customers, SK Plasma Co., Ltd., &ldquo;SK&rdquo;, and BPC, represented greater than 95% of our total revenues,
with BPC representing approximately 82% of our total revenues and SK representing approximately 14% of our total revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenue from license fees and research and development services
rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Revenues for the year ended December 31, 2016 are comprised
of product revenues from the sale of normal source human plasma collected from the Company&rsquo;s plasma collection centers segment
and license and other revenues are primarily attributable to the out-licensing of RI-002 to Biotest AG to market and sell in Europe
and selected countries in North Africa and the Middle East. Biotest and BPC, a subsidiary of Biotest, have provided the Company
with certain services and financial payments in accordance with the related Biotest license agreement and is obligated to pay the
Company certain amounts in the future if certain milestones are achieved. During the third quarter of 2015, the Company recorded
deferred revenue of $1.5 million for a milestone payment provided to the Company after the BLA for RI-002 was filed with the FDA,
in accordance with the terms of the Biotest license agreement. Deferred revenue is recognized over the term of the Biotest AG license.
Deferred revenue is amortized into income for a period of approximately 20 years, the term of the Biotest license agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Concentration of significant customers and accounts receivable</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of and for the years ended December 31, 2016 and 2015, the
Company&rsquo;s trade receivable balance and revenues were substantially attributable to two customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Research and development costs</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company expenses all research and development costs as incurred,
of which such expenses include costs associated with planning and conducting clinical trials, manufacturing, quality, testing,
validation, regulatory consulting and filing fees and employees&rsquo; compensation expenses directly related to R&amp;D activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Use of estimates</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Significant estimates include valuation of inventory, assumptions used
in the fair value determination of stock-based compensation, warrants and the allowance for the valuation of future tax benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Concentration of credit risk</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Financial instruments which potentially subject the Company
to concentrations of credit risk consist of cash and cash equivalents and short-term investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Property and equipment</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Fixed assets are stated at cost less accumulated depreciation.
Depreciation is calculated using the straight-line method over the asset&rsquo;s estimated useful life, which is five to ten years.
Leasehold improvements are amortized over the lesser of the lease term or their estimated useful lives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Income taxes</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company recognizes deferred tax liabilities and assets for
the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns.
Under this method, deferred tax liabilities and assets are determined on the basis of the difference between the tax basis of assets
and liabilities and their respective financial reporting amounts (&ldquo;temporary differences&rdquo;) at enacted tax rates in
effect for the years in which the temporary differences are expected to reverse. The Company records a valuation allowance on its
deferred income tax assets if it is more likely than not that these deferred income tax assets will not be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has no unrecognized tax benefits at December 31,
2016 and 2015. The Company&rsquo;s U.S. Federal and state income tax returns prior to fiscal year 2013 are closed and management
continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative
rulings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company will recognize interest and penalties associated
with tax matters as income tax expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Earnings Loss Per Share</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Basic net loss per share is computed by dividing net loss attributable
to common stockholders by the weighted average number of shares of common stock outstanding during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Diluted net loss per share is calculated by dividing net loss
attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of
common stock and dilutive common stock outstanding during the period. Potential common stock includes the shares of common stock
issuable upon the exercise of outstanding stock options and warrants (using the treasury stock method). Potential common stock
in the diluted net loss per share computation is excluded to the extent that it would be anti-dilutive. No potentially dilutive
securities are included in the computation of any diluted per share amounts as the Company reported a net loss for all periods
presented. The aggregate number of potentially dilutive securities upon the exercise of outstanding warrants and stock options
was 1.8 million and 1.7 million as of December 31, 2016 and 2015, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Stock-based compensation</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company follows recognized accounting guidance which requires
all stock-based payments, including grants of stock options, to be recognized in the statement of operations as compensation expense,
based on their fair values on the grant date. The estimated fair value of stock options granted under the Company&rsquo;s 2007
Employee Stock Option Plan (the &ldquo;Plan&rdquo;) and the 2014 Omnibus Incentive Compensation Plan (the &ldquo;2014 Plan&rdquo;)
is recognized as compensation expense over the option-vesting period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the years ended December 31, 2016 and 2015, stock options
to purchase 100,984 and 432,500 shares of common stock, respectively, were issued to employees and non-employee directors. During
the year ended December 31, 2016, options to purchase 21,334 shares of common stock were forfeited and options to purchase 8,666
shares of common stock expired. During the year ended December 31, 2015, options to purchase 7,514 shares of common stock were
exercised by an employee and options to purchase 9,710 shares of common stock were forfeited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 19, 2014, at the Annual Meeting of Stockholders (the
&ldquo;Annual Meeting&rdquo;), the stockholders approved the 2014 Plan, which was approved by the Board of Directors of ADMA (the
&ldquo;Board&rdquo;) on February 21, 2014. The maximum number of shares reserved for grant under the 2014 Plan is: (a) 800,000
shares; plus (b) an annual increase as of the first day of the Company&rsquo;s fiscal year, beginning in 2015 and occurring each
year thereafter through 2020, equal to the least of (i) 200,000 shares, (ii) 1% of the outstanding shares of common stock as of
the end of the Company&rsquo;s immediately preceding fiscal year, and (iii) any lesser number of shares determined by the Board;
provided, however, that the aggregate number of shares available for issuance pursuant to such increases shall not exceed a total
of 800,000 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the years ended December 31, 2016 and 2015, the Company
recorded stock-based compensation expense to employees of $1,250,074 and $1,711,047, respectively. The fair value of employee options
granted was determined on the date of grant using the Black-Scholes model. The Black-Scholes option valuation model was developed
for use in estimating the fair value of publicly traded options, which have no vesting restrictions and are fully transferable.
In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.
The Company&rsquo;s employee stock options have characteristics significantly different from those of traded options, and changes
in the subjective input assumptions can materially affect the fair value estimate. To determine the risk-free interest rate, the
Company utilized the U.S. Treasury yield curve in effect at the time of the grant with a term consistent with the expected term
of the Company&rsquo;s awards. The expected term of the options granted is in accordance with Staff Accounting Bulletins 107 and
110, which is based on the average between vesting terms and contractual terms. The expected dividend yield reflects the Company&rsquo;s
current and expected future policy for dividends on the Company&rsquo;s common stock. The expected stock price volatility for the
Company&rsquo;s stock options was calculated by examining the pro rata historical volatilities for similar publicly traded industry
peers and the trading history for the Company&rsquo;s common stock. The Company will continue to analyze the expected stock price
volatility and expected term assumptions. The Company has not experienced any material forfeitures of stock options and, as such,
has not established a forfeiture rate since the stock options currently outstanding are primarily held by the Company&rsquo;s senior
management and directors. The Company will continue to evaluate the effects of such future potential forfeitures, as they may arise,
to evaluate the Company&rsquo;s estimated forfeiture rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company records compensation expense associated with stock
options and other forms of equity compensation using the Black-Scholes option-pricing model and the following assumptions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 90%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Year Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Year Ended</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>December 31, 2016</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>December 31, 2015</B></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 50%">Expected term</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">5.8-6.3 years</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: right">5.8-6.3 years</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Volatility</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">51-52</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">51-58</TD>
    <TD>%</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Dividend yield</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Risk-free interest rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1.54-1.79%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1.49-2.14%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Fair value of financial instruments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The carrying amounts of certain of the Company&rsquo;s financial
instruments, including cash and cash equivalents, short-term investments, accounts payable, and notes payable are shown at cost
which approximates fair value due to the short-term nature of these instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Recent Accounting Pronouncements</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In January 2017, the Financial Accounting Standards Board, or
FASB, issued Accounting Standards Update, or ASU No. 2017-01, <I>Business Combinations &ndash; Clarifying the Definition of a Business,</I>
which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as
acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not
a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output
to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods
within that reporting period. The Company does not expect this new guidance to have a material impact on its consolidated financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In March 2016, the FASB, issued ASU No. 2016-09, <I>Improvements
to Employee Share-Based Payment Accounting (Topic 718), </I>which provides for simplification of certain aspects of employee share-based
payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for forfeitures
and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company in the first quarter of 2017 and
will be applied either prospectively, retrospectively or using a modified retrospective transition approach depending on the area
covered in this update. The adoption of this ASU is not expected to have a material impact on the Company&rsquo;s consolidated
financial statements and related disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02, <I>Leases
(Topic 842),</I> which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases
on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods
within those fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all leases
existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company
is currently evaluating the impact the standard may have on its consolidated financial statements and related disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In November 2015, the FASB issued ASU No. 2015-17<I>, Income
Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes</I>, which includes amendments that require deferred tax liabilities
and assets be classified as non-current in a classified statement of financial position. The amendments in this ASU are effective
for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods
beginning after December 15, 2018. Earlier application is permitted as of the beginning of an interim or annual reporting period.
The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods
presented. The adoption of this ASU is not expected to have a material impact on the Company&rsquo;s consolidated financial statements
and related disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In September 2015, the FASB issued ASU No. 2015-16, <I>Business
Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments</I>, which includes amendments that require
an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined. The amendments in this ASU require that the acquirer record, in the same
period&rsquo;s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects,
if any, as a result of the changes<I>&nbsp;</I>to the provisional amounts, calculated as if the accounting had been completed at
the acquisition date. The amendments in this ASU require an entity to present separately on the face of the income statement or
disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded
in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The
amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years
beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur
after the effective date of the ASU with earlier application permitted for financial statements that have not yet been made available
for issuance. The adoption of this ASU is not expected to have a material impact on the Company&rsquo;s consolidated financial
statements and related disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In July 2015, the FASB issued ASU 2015-11, <I>Inventory (Topic
330): Simplifying the Measurement of Inventory</I>. The standard requires entities to measure most inventory &ldquo;at the lower
of cost and net realizable value,&rdquo; thereby simplifying the current guidance under which an entity must measure inventory
at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable
value). The standard is effective for the Company prospectively beginning January 1, 2017. The adoption of ASU 2015-11 is not expected
to have a material impact on the Company&rsquo;s consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In April 2015, the FASB issued ASU 2015-03, <I>Interest&mdash;Imputation
of Interest</I>, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet
as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures
will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application
and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. The
Company adopted ASU 2015-03 in its second quarter 2015 consolidated financial statements and recast the prior period balances to
conform to the current period presentation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In August 2014, the FASB issued ASU No. 2014-15, <I>Presentation
of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity&rsquo;s Ability to Continue
as a Going Concern, </I>which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties
in their financial statements. The new standard requires management to perform interim and annual assessments of an entity&rsquo;s
ability to continue as a going concern within one year of the date of issuance of the entity&rsquo;s financial statements (or within
one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must
provide certain disclosures if there is &ldquo;substantial doubt about the entity&rsquo;s ability to continue as a going concern.&rdquo;
The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity, and consistency of
related disclosures and improve convergence with International Financial Reporting Standards (&ldquo;IFRS&rdquo;) (which emphasize
management&rsquo;s responsibility for performing the going-concern assessment). However, the time horizon for the assessment (look-forward
period) and the disclosure thresholds under GAAP and IFRSs will continue to differ. This guidance is effective for annual reporting
periods ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. The
Company has adopted this standard which has not had a material impact on its consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2014, the FASB issued ASU 2014-09, <I>Revenue from Contracts
with Customers</I>, which requires that an entity recognize the amount of revenue to which it expects to be entitled for the transfer
of promised goods or services to its customers. In order to achieve this core principle, an entity should apply the following steps:
(1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction
price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as)
the entity satisfies a performance obligation. This update will replace existing revenue recognition guidance under GAAP, when
it becomes effective for us beginning January 1, 2018, with early adoption permitted in the first quarter of 2017. The updated
standard will permit the use of either the retrospective or cumulative effect transition method. The Company is currently assessing
the impact of the new guidance on its results of operations. Based on its procedures performed to date, nothing has come to the
Company&rsquo;s attention that would indicate that the adoption of ASU 2014-09 will have a material impact on its consolidated
financial statements, however, the Company will continue to evaluate this assessment. The Company has not yet selected a transition
method. The Company is still evaluating disclosure requirements under the new standard. The Company will continue to evaluate the
standard as well as additional changes, modifications or interpretations which may impact its current conclusions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>3. <U>PROPERTY AND EQUIPMENT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Property and equipment consist of the following at December 31,</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left; text-indent: 9.95pt">Lab and office equipment</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">1,336,668</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">1,272,042</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 9.95pt">Computer software</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">188,277</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">188,277</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.95pt">Leasehold improvements</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,699,104</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,690,320</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,224,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,150,639</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.95pt">Less: Accumulated depreciation and amortization</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,223,265</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,753,689</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,000,784</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,396,950</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company recorded depreciation and amortization expense of
$469,576 and $469,821 for the years ended December 31, 2016 and 2015, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>4. <U>LEASEHOLD IMPROVEMENT LOAN</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the lease of commercial real estate by the
Company&rsquo;s wholly-owned subsidiary for the operation of the plasma collection center, the Company borrowed $125,980 from the
lessor to pay for leasehold improvement costs in excess of the allowance provided for in the lease agreement. The loan bears interest
at 9% and is payable in 120 monthly installments of $1,596 maturing January 2019. Principal maturities under the loan are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 43%; text-align: left">2017</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">16,559</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,113</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2019</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,584</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">36,256</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>5. <U>DEBT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Loan and Security Agreement</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June 19, 2015, the Company entered into an LSA with Oxford
for up to $21.0 million of debt financing in two term loan tranches. The first term loan tranche of $16.0 million from the LSA
(the &ldquo;Term A Loan&rdquo;) was primarily used to repay the Company&rsquo;s previous debt facility with Hercules dated December
2012. As a result of prepaying the Hercules loan prior to maturity, the Company incurred a loss on extinguishment of debt of $0.7
million comprised of unamortized debt issuance costs, unamortized debt discount related to the warrants issued to Hercules, along
with a prepayment penalty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The outstanding term loans bear interest at a rate per annum
equal to the greater of (i) 7.80% and (ii) the sum of (a) the three month U.S. LIBOR rate (as reported in <I>The Wall Street Journal</I>)
on the date occurring on the last business day of the month that immediately precedes the month in which the interest will accrue,
plus (b) 7.54% on the outstanding principal balance. The Company became obligated to begin to repay the principal over 36 months
beginning on February 1, 2017, unless accelerated as a result of certain events of default. A final payment equal to 8.95% of the
funded loan amount is due at the earlier of loan maturity or prepayment. All term loans mature no later than January 1, 2020. The
loans are secured by the Company&rsquo;s assets, except for its intellectual property (which is subject to a negative pledge).
The LSA contains customary representations, warranties and covenants, including limitations on incurring indebtedness, engaging
in mergers or acquisitions and making investments, distributions or transfers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the entry into the LSA, on June 19, 2015,
the Company issued to Oxford a seven-year warrant, expiring on June 19, 2022, to purchase 74,309 shares of common stock at an exercise
price of $8.51 per share. The Company recorded $367,700 as the fair value of the warrant to additional paid-in capital and as a
debt discount to the carrying value of the loan. The key assumptions used to value the warrants included: (i) volatility of 57%
on our common stock based upon a pro rata percentage of our common stock&rsquo;s volatility and similar public companies&rsquo;
volatilities for comparison; (ii) an expected dividend yield of 0.0%; (iii) a risk-free interest rate of 1.99%; and (iv) a term
of seven years. As a result of prepaying the Company&rsquo;s prior loan before maturity, the Company incurred a loss on extinguishment
of debt of $0.7 million comprised of unamortized debt issuance costs and unamortized debt discount related to the warrants issued
to the Company&rsquo;s prior lender, along with a prepayment penalty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2016, the Company amended the LSA with Oxford (the &ldquo;Amended
LSA&rdquo;) which provided ADMA with an additional $4.0 million term loan (the &ldquo;Term B Loan&rdquo;), the availability of
which was conditioned on completing an equity financing of its common stock of at least $10.0 million in gross proceeds no later
than May 31, 2016. On May 3, 2016, the Company completed an underwritten public offering of its common stock, raising gross proceeds
of approximately $14.1 million and subsequently borrowed the additional $4.0 million from Oxford under the Amended LSA, which brings
the total principal amount borrowed to $20.0 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event the Company prepays a term loan for any reason,
the Company is obligated to pay a prepayment charge corresponding to a percentage of the principal amount of the applicable term
loan prepaid. The Amended LSA further modified the fees payable by the Company on mandatory or voluntary prepayment of a term loan
prior to its maturity date as follows: (i) for a prepayment made on or after the funding date of the applicable term loan through
and including the first anniversary of its funding date, an amount equal to 3.00% of the principal amount of the term loan prepaid;
(ii) for a prepayment made after the first anniversary of the funding date of the applicable term loan through and including the
second anniversary of such funding date, an amount equal to 2.00% of the principal amount of such term loan prepaid; and (iii)
for a prepayment of a term loan made after the second anniversary of its funding date and prior to its maturity date, an amount
equal to 1.00% of the principal amount of the term loan prepaid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Amended LSA, (i) the Company paid a total facility
fee of $125,000, consisting of $105,000 previously paid and an additional $20,000 paid on the date the Term B Loan was funded;
(ii) certain adjustments were made to the time periods for any applicable prepayment fees; and (iii) certain defined terms were
adjusted, including a new Amortization Date that is defined as (a) February 17, 2017, if the Term C Loan is not made and (b) August
1, 2017 if the Term C Loan is made. The Amended LSA further provides for customary representations, warranties and covenants for
the Company. Except as otherwise amended, the Amended LSA does not alter the terms of the LSA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the Amended LSA, on May 13, 2016, the Company
issued to Oxford a seven-year warrant, expiring on May 23, 2023, to purchase 24,800 shares of common stock at an exercise price
of $6.37 per share, equal to 3.95% of the amount drawn of such tranche, divided by the average reported closing price per share
of common stock for the consecutive 10 trading days prior to the applicable draw in accordance with the Company&rsquo;s drawdown
of the Term B Loan. The Company recorded $86,300 as the fair value of the warrant to additional paid-in capital and as a debt discount
to the carrying value of the loan. The key assumptions used to value the warrants included: volatility of 53.5% on the Company&rsquo;s
common stock based upon a pro rata percentage of the Company&rsquo;s common stock&rsquo;s volatility and similar public companies&rsquo;
volatilities for comparison, an expected dividend yield of 0.0%, a risk-free interest rate of 1.51% and a term of seven years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of the Oxford loan balance is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Gross proceeds</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">20,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 16%; text-align: right">16,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><U>Less: debt discount, net</U></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: 7.3pt">End of term fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,155,157</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,250,194</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 7.3pt">Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(257,201</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(310,196</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 7.3pt">Financing fees</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(154,891</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(192,398</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Note payable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">18,432,751</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">14,247,212</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red">&nbsp;&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Future amortization of financing fees for each of the years
subsequent to December 31, 2016 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 43%; text-align: left">2017</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">708,720</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">529,888</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2019</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">328,641</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,567,249</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>6. <U>STOCKHOLDERS&rsquo; EQUITY</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 3, 2016, the Company completed an underwritten public
offering of 2,176,154 shares of its common stock, for gross proceeds of approximately $14.1 million. Net proceeds from this offering
were approximately $13.0 million, after payment of underwriting discounts and offering expenses of approximately $1.1 million.
The shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the
SEC on December 23, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 18, 2015, the Company closed an underwritten sale of
1,225,000 shares of its common stock, as well as 183,750 additional shares of its common stock pursuant to the full exercise of
the over-allotment option granted to the underwriters, for gross proceeds of approximately $11.3 million. Net proceeds from this
offering were approximately $10.2 million, net of underwriting discounts and offering expenses of approximately $1.1 million. The
shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the SEC
on December 23, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Oxford and Hercules Debt Financing Warrant Issuance</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In May 2016, the Company issued to Oxford warrants to purchase
an aggregate of up to 24,800 shares of the Company&rsquo;s common stock at an exercise price equal to $6.37 per share. The warrants
became exercisable on May 13, 2016 for cash or by net exercise and will expire seven years after their issuance on May 13, 2023.
In connection with the LSA with Oxford, on June 19, 2015, the Company issued to Oxford a seven year warrant, expiring on June 19,
2022, to purchase 74,309 shares of common stock at an exercise price of $8.51 per share. In connection with the Prior Loan Agreement
with Hercules, on December 21, 2012, the Company issued to Hercules a warrant to purchase 31,750 shares of common stock with an
exercise price of $7.56, subject to customary anti-dilution adjustments. In connection with the Loan Amendment, the Company issued
to Hercules a warrant to purchase 23,200 and 34,800 shares of common stock of the Company in February and December 2014, respectively,
with an exercise price set at the lower of (i) $7.50 per share or (ii) the price per share of the next round of financing from
the expiration of the exercise price adjustment, subject to customary anti-dilution adjustments. The warrant expires after 10 years
and has piggyback registration rights with respect to the shares of common stock underlying the warrant. The down round warrant
protection feature resulting in the warrant liability&rsquo;s quarterly &ldquo;mark-to-market&rdquo; valuation has terminated as
of the end of the one-year period following the amended Loan Closing on February 24, 2014 (see Note 5).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>7. <U>RELATED PARTY TRANSACTIONS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company leases an office building and equipment from an
entity owned by related parties on a month-to-month basis of which terms were amended by the Company&rsquo;s Board of Directors
in June 2016. Rent expense amounted to $192,000 and $96,448 for the years ended December 31, 2016 and 2015, respectively. The Company
also reimburses its landlord and affiliates for office and building related (common area) expenses, equipment and certain other
operational expenses, which have been insignificant to the consolidated financial statements for the years ended December 31, 2016
and 2015. The Company maintains deposits and other accounts at a bank which was less than 5%-owned by related parties through January
2016, and where a stockholder and Company director was previously a member of the bank&rsquo;s board of directors through January
2016, and is now a member of its Corporate Advisory Council.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>8. <U>COMMITMENTS AND CONTINGENCIES</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Lease commitments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has entered into leases for its ADMA BioCenters&rsquo;
facilities located in Norcross, Georgia and in Marietta, Georgia. The Norcross, Georgia lease, the term of which was extended by
five years on January 1, 2014 pursuant to the first of two available five-year renewal options, expires on September 30, 2023,
and the Marietta, Georgia lease expires on January 31, 2024. Total rent expense for its New Jersey and Georgia facilities during
the years ended 2016 and 2015 was approximately $535,000 and $420,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Future minimum lease payments for both leases, for each of the
five years ending December 31 and thereafter are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 43%; text-align: left">2017</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 20%; text-align: right">359,059</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2018</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">362,774</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2019</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">375,198</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">376,812</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">381,329</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Thereafter</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">732,079</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2,587,251</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: Red">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Vendor and Licensor Commitments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On December 31, 2012, the Company entered into a Manufacturing,
Supply and License Agreement with BPC, which replaces a prior agreement that expired on December 31, 2012. Under the agreement,
the Company agreed to purchase exclusively from BPC its worldwide requirements of RSV immune globulin manufactured from human plasma
containing RSV antibodies. The term of the agreement is for a period of ten years from January 1, 2013, renewable for two additional
five-year periods at the agreement of both parties. The Company is obligated under this agreement to purchase a minimum of at least
one lot of product during each calendar year after the finished product is approved by the FDA. This number is subject to increase
at the Company&rsquo;s option. As consideration for BPC&rsquo;s obligations under the agreement, the Company is obligated to pay
a dollar amount per lot of RSV immune globulin manufactured from human plasma containing RSV antibodies, as well as a percentage
royalty on the sales thereof and of RI-002, up to a specified cumulative maximum. The agreement may be terminated by either party
(a) by reason of a material breach if the breaching party fails to remedy the breach within 120 days after receiving notice of
the breach from the other party, (b) upon bankruptcy, insolvency, dissolution, or winding up of the other party, or (c) if the
other party is unable to fulfill its obligations under the agreement for 120 consecutive days or more as a result of (a) or (b)
above. The parties have agreed to a mutual release with respect to any claims relating to or arising from any breach or default
under the existing Manufacturing Supply and License Agreement and Master Services Agreement between the Company and BPC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In a separate license agreement effective December 31, 2012,
the Company granted BPC an exclusive license to market and sell RSV antibody-enriched Immune Globulin Intravenous (&ldquo;IVIG&rdquo;)
in Europe and in selected countries in North Africa and the Middle East, collectively referred to as the Territory, to have access
to the Company&rsquo;s testing services for testing of BPC&rsquo;s plasma samples using the Company&rsquo;s proprietary RSV assay,
and to reference (but not access) the Company&rsquo;s proprietary information for the purpose of BPC seeking regulatory approval
for the RSV antibody-enriched IVIG in the Territory. As consideration for the license, BPC agreed to provide the Company with certain
services at no charge and also compensate us with cash payments upon the completion of certain milestones. Such services have been
accounted for as deferred revenue which were recorded in 2013 as a result of certain research and development services as provided
for in accordance with a license agreement. Deferred revenue is recognized over the term of the license and is amortized into income
for a period of approximately 20 years, the term of the license agreement. BPC is also obligated to pay the Company an adjustable
royalty based on a percentage of revenues from the sale of RSV antibody-enriched IVIG in the Territory for 20 years from the date
of first commercial sale. Additionally, BPC has agreed to grant the Company an exclusive license for marketing and sales in the
U.S. and Canada for BPC&rsquo;s Varicella Zoster Immune Globulin (&ldquo;VZIG&rdquo;); however, as a result of the Proposed Acquisition
the terms associated to VZIG will be terminated upon the closing of the Proposed Acquisition during the first half of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of a Plasma Purchase Agreement with BPC,
the Company has agreed to purchase from BPC an annual minimum volume of source plasma containing antibodies to RSV to be used in
the manufacture of RI-002. This volume will increase at the earlier of the Company&rsquo;s receipt of a BLA from the FDA, or March
31, 2016. The Company must purchase a to-be-determined and agreed upon annual minimum volume from BPC but may also collect high-titer
RSV plasma from up to five wholly-owned ADMA BioCenters. During 2015, BPC and ADMA amended their Plasma Purchase Agreement to allow
ADMA the ability to collect its raw material RSV high-titer plasma from other third party collection organizations, thus allowing
ADMA to expand its reach for raw material supply as the Company approaches commercialization for RI-002. Unless terminated earlier,
the agreement expires in November 2021, after which it may be renewed for two additional five-year periods if agreed to by the
parties. Either party may terminate the agreement if the other party fails to remedy any material default in the performance of
any material condition or obligation under the agreement following notice. Either party may also terminate the agreement, after
providing written notice, if a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership
law is filed by or against the other party, and is not dismissed or stayed, or a receiver or trustee is appointed for all or a
substantial portion of the assets of the other party, or the other party makes an assignment for the benefit of its creditors or
becomes insolvent. The Company may also terminate the agreement upon written notice if the clinical development of its product
candidate is halted or terminated, whether by the FDA, a Data Safety Monitoring Board, or any other regulatory authority. Upon
termination of the agreement, the Company must pay for any source plasma already delivered to the Company and for any source plasma
collected under the terms of the agreement. As part of the acquisition of certain assets of BPC, BPC and ADMA amended the Plasma
Purchase Agreement, to extend the purchase from BPC an annual minimum of plasma containing antibodies to RSV for ten years through
the closing date of the transaction which is anticipated during the first half of 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Employment contracts </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has entered into employment agreements with its
executive management team consisting of its President and Chief Executive Officer, Chief Medical and Scientific Officer and Chief
Financial Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>General legal matters </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is and may become subject to certain legal proceedings
and claims arising in connection with the normal course of its business. In the opinion of management, there are currently no claims
that would have a material adverse effect on its consolidated financial position, results of operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Other commitments</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the normal course of business, the Company enters into contracts
that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company
indemnifies its directors and officers who are, or were, serving at the Company&rsquo;s request in such capacities. The Company&rsquo;s
maximum exposure under these arrangements is unknown as of December 31, 2016. The Company does not anticipate recognizing any significant
losses relating to these arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>9. <U>STOCK OPTIONS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has adopted two stock option plans. On July 16,
2007 (the &ldquo;Effective Date&rdquo;), the Company&rsquo;s Board and stockholders adopted the 2007 Plan. On July 17, 2012, the
Company&rsquo;s Board and stockholders amended the 2007 Plan to increase the aggregate number of options available for grant to
903,224. On February 21, 2014 the Board approved the 2014 Plan, which was approved by stockholders at the Annual Meeting of Stockholders
(the &ldquo;Annual Meeting&rdquo;) on June 19, 2014. Additionally, the Board also, approved subject to stockholder approval at
the Annual Meeting under the Prospective Plan, 800,000 shares of common stock plus an annual increase to be added as of the first
day of the Company&rsquo;s fiscal year, beginning in 2015 and occurring each year thereafter through 2020, equal to the lower of
200,000, or 1% of the outstanding shares of common stock as of the end of the Company&rsquo;s immediately preceding fiscal year
and any lesser number of shares determined by the Board, provided that the aggregate number of shares available for issuance pursuant
to such increases shall not exceed a total of 800,000 shares reserved for issuance under the terms of the 2014 Plan. As of December
31, 2016, the aggregate options approved in the 2007 Plan and 2014 Plan are 1,903,273 with 1,535,187 outstanding and expected to
vest and 368,086 available for future issuance. During the year ended December 31, 2016, there were 21,334 options forfeited and
8,666 options expired; such options were included in the stock option plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The 2007 and 2014 Plans provides for the Board or a Committee
of the Board (the &ldquo;Committee&rdquo;) to grant awards to optionees and to determine the exercise price, vesting term, expiration
date and all other terms and conditions of the awards, including acceleration of the vesting of an award at any time. All options
granted under the 2007 and 2014 Plans are intended to be incentive stock options (&ldquo;ISOs&rdquo;), unless specified by the
Committee to be non-qualified options (&ldquo;NQOs&rdquo;) as defined by the Internal Revenue Code. ISOs and NQOs may be granted
to employees, consultants or Board members at an option price not less than the fair market value of the common stock subject to
the stock option agreement. The following table summarizes information about stock options outstanding as of December 31, 2016
and 2015:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">Year Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">Year Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Weighted</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Weighted</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Average</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Average</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Exercise</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">Exercise</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Price</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Price</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="17">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">Outstanding at beginning of period</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,464,203</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8.02</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">1,048,927</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">7.24</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Forfeited</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21,334</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,710</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">9.16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Expired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,666</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.88</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,514</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">6.55</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Granted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">100,984</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">6.20</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">432,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left"></TD><TD STYLE="text-align: right">9.92</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Outstanding at end of period and expected to vest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,535,187</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7.90</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,464,203</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8.02</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Options exercisable</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,179,143</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7.64</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">880,457</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7.19</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Weighted average fair value of options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.1pt">granted during the year</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5.25</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left; color: Red">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The weighted average remaining contractual term of stock options
outstanding and expected to vest at December 31, 2016 is 6.4 years. The weighted average remaining contractual term of stock options
exercisable at December 31, 2016 is 5.8 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Stock-based compensation expense for the years ended December
31, 2016 and 2015 was:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Research and development</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">439,982</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">724,776</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Plasma centers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,973</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,386</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">General and administrative</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">757,119</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">937,885</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 9.5pt">Total stock-based compensation expense</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,250,074</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,711,047</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December 31, 2016, the total unrecognized compensation
expense related to unvested options totaled $1,616,337. The weighted-average vesting period over which the total compensation expense
will be recorded related to unvested options at December 31, 2016 was approximately 2.2 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The aggregate intrinsic value is calculated as the difference
between (i) the closing price of the common stock at December 31, 2016 and (ii) the exercise price of the underlying awards, multiplied
by the number of options that had an exercise price less than the closing price on the last trading day. The Company&rsquo;s outstanding
and exercisable options had an intrinsic value of $260,974 as of December 31, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>10. <U>INCOME TAXES</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A reconciliation of income taxes at the U.S. Federal statutory
rate to the benefit for income taxes is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Benefit at U.S. Federal statutory rate</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">(6,635,151</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">(6,109,776</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">State taxes - deferred</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266,312</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(124,874</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Increase in valuation allowance, inclusive of true-ups</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,755,413</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,021,614</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development credits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(322,499</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(389,355</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,468,549</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">602,391</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Benefit for income taxes</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of the Company&rsquo;s deferred tax assets is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Federal and state net operating loss carryforwards</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">30,843,479</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 14%; text-align: right">25,834,860</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Federal and state research credits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,099,249</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,353,534</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transaction costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">652,695</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">972,345</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,020,872</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Accrued expenses and other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">747,586</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">350,675</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: 10pt">Total gross deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,315,354</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,559,941</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Less: valuation allowance for deferred tax assets</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(37,315,354</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(31,559,941</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; text-indent: 10pt">Net deferred tax assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have incurred substantial losses during our history. As of
December 31, 2016, we had Federal and state Net Operating Losses, (&ldquo;NOLs&rdquo;) of $87.8 million and $75.2 million, respectively,
as well as Federal research and development tax credit carryforwards of approximately $4.1 million. The $87.8 million and $75.2
million in Federal and state NOLs, respectively, will begin to expire at various dates beginning in 2027, if not limited by triggering
events prior to such time. Under the provisions of the Internal Revenue Code, changes in our ownership, in certain circumstances,
will limit the amount of Federal NOLs that can be utilized annually in the future to offset taxable income. In particular, Section
382 of the Internal Revenue Code imposes limitations on a company&rsquo;s ability to use NOLs upon certain changes in such ownership.
If we are limited in our ability to use our NOLs in future years in which we have taxable income, we will pay more taxes than if
we were able to utilize our NOLs fully. We may experience ownership changes in the future as a result of subsequent shifts in our
stock ownership that we cannot predict or control that could result in further limitations being placed on our ability to utilize
our Federal NOLs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A valuation allowance, if needed, reduces deferred tax assets
to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to
be realized, the Company assesses all available positive and negative evidence. This evidence includes, but is not limited to,
prior earnings history, expected future earnings, carry-back and carry-forward periods and the feasibility of ongoing tax strategies
that could potentially enhance the likelihood of the realization of a deferred tax asset. The weight given to the positive and
negative evidence is commensurate with the extent the evidence may be objectively verified. As such, it is generally difficult
for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh
objective negative evidence of recent financial reporting losses. Based on these criteria and the relative weighting of both the
positive and negative evidence available, management continues to maintain a full valuation allowance against its net deferred
tax assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>11. <U>SEGMENTS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is engaged in the development and commercialization
of human plasma and plasma-derived therapeutics. The Company also operates two FDA-licensed source plasma collection facilities
located in Norcross, Georgia and Marietta, Georgia. The Company defines its segments as those business units whose operating results
are regularly reviewed by the chief operating decision maker (&ldquo;CODM&rdquo;) to analyze performance and allocate resources.
The Company&rsquo;s CODM is its President and Chief Executive Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The plasma collection center segment includes the Company&rsquo;s
operations in Georgia. The research and development segment includes the Company&rsquo;s plasma development operations in New Jersey.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Summarized financial information concerning
reportable segments is shown in the following tables:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Plasma Collection</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center"><B>Research and</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>2016</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Centers</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Development</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Corporate</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Consolidated</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 38%">Revenues</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">$</TD>
    <TD STYLE="width: 11%; text-align: right">10,518,203</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">$</TD>
    <TD STYLE="width: 12%; text-align: right">&mdash; </TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">$</TD>
    <TD STYLE="width: 11%; text-align: right">142,834</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">$</TD>
    <TD STYLE="width: 12%; text-align: right">10,661,037</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Cost of product revenue</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6,360,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6,360,761</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Gross profit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,157,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">142,834</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,300,276</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Loss from operations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,290,249)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(7,688,238)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(8,351,908)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(17,330,395)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Other expense</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,184,756)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,184,756)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Loss before income taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,290,249)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(7,688,238)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(10,536,664)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(19,515,151)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,421,535</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">21,263,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">23,685,085</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Depreciation and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="border-bottom: black 1pt solid">amortization expense</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">414,464</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&mdash; </TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">55,112</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">469,576</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD STYLE="text-align: center"><B>Year Ended December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><B>Plasma Collection</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><B>Research and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>2015</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>Centers</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>Development</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>Corporate</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>Consolidated</B></TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Revenues</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">7,050,283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">127,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">7,177,633</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Cost of product revenue</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,311,461</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,311,461</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Gross profit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,738,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">127,350</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,866,172</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Loss from operations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,879,243)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(7,015,946)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(6,618,618)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(15,513,807)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Other expense</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,456,123)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,456,123)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Loss before income taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,879,243)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(7,015,946)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(9,074,741)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(17,969,930)</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,719,641</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">20,994,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">23,714,517</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #FEFEFE">
    <TD>Depreciation and</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="border-bottom: black 1pt solid">amortization expense</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">419,301</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&mdash; </TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">50,520</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">469,821</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The &ldquo;Corporate&rdquo; column includes general and administrative
overhead expenses. Total assets included in the &ldquo;Corporate&rdquo; column above includes assets related to corporate and support
functions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>12. <U>OTHER EMPLOYEE BENEFITS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company sponsors a 401(k) savings plan. Under the plan,
employees may make contributions which are eligible for a Company discretionary percentage contribution as defined in the plan
and determined by the Board of Directors. The Company recognized approximately $0.2 million and $0.1 million of related compensation
expense for the years ended December 31, 2016 and 2015, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>13. <U>SUBSEQUENT EVENTS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Summary of Proposed Acquisition of Certain Assets of BPC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On January 21, 2017, the Company and its wholly-owned subsidiary,
ADMA BioManufacturing, LLC, a Delaware limited liability company (&ldquo;ADMA BioManufacturing&rdquo;), entered into a definitive
Master Purchase and Sale Agreement (as amended, restated, supplemented, or otherwise modified from time to time (the &ldquo;Purchase
Agreement&rdquo;) with BPC, and for certain limited purposes set forth in the Purchase Agreement, Biotest, and Biotest US Corporation,
a Delaware corporation and subsidiary of Biotest (together with Biotest, the &ldquo;Biotest Guarantors&rdquo;), pursuant to which
ADMA BioManufacturing has agreed to acquire certain assets and assume certain liabilities constituting the therapy business of
BPC (the &ldquo;BTBU&rdquo;). The foregoing transactions and the other transactions contemplated by the Purchase Agreement are
collectively referred to as the &ldquo;Proposed Acquisition.&rdquo; The Business includes (a) a FDA-licensed immune globulin manufacturing
and plasma products production facility of two buildings in Boca Raton, Florida, and the associated real property, (b) all exclusive
rights to FDA licensed biologics products Nabi-HB&reg;, BIVIGAM&reg; and the investigational product CIVACIR&reg;, (c) in-process
inventory with an agreed-upon value of at least $5.0 million, (d) certain other properties and assets used exclusively in the Business,
and (e) certain additional assets which relate to both the Business and BPC&rsquo;s plasma business the arrangement with respect
to which will be documented in a transition services agreement to be mutually agreed by the parties between the signing of the
Purchase Agreement and the closing of the Proposed Acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the terms and conditions of the Purchase Agreement,
(i) upon the closing, the Company has agreed to assume certain liabilities of BPC related to the Business, including, without limitation,
related to (x) product liabilities, breach of warranty, product complaints, product returns, post-market commitments, recalls,
adverse event reporting, product deviation reporting, lookbacks, market withdrawals and field corrections or similar claims for
injury to person or property with respect to the Business or any product of the Business to the extent such liabilities relate
to products manufactured and sold by ADMA BioManufacturing after the closing (other than inventory transferred to the Company at
the closing, which will be allocated 50% to ADMA BioManufacturing and 50% to BPC if not traceable to acts or omissions of a particular
party); and (y) other regulatory matters, whether related to the pre-closing or post-closing period and including any liabilities
related to the products of the Business, the FDA warning letter (the warning letter issued by the FDA to BPC in connection with
outstanding issues requiring remediation at the manufacturing facility in Boca Raton, Florida), noncompliance with applicable laws
and legal proceedings related to the foregoing, but excluding such liabilities that arise out of any fraud, willful misconduct
or intentional misrepresentation by BPC prior to the closing (the &ldquo;Assumed Liabilities&rdquo;); (ii) upon the closing, the
Company has agreed to deliver to BPC an aggregate equity interest in the Company equal to 50%, less one share, of its issued and
outstanding capital stock (calculated as of immediately following the closing and on a post-closing issuance basis) (the &ldquo;Biotest
Equity Interest&rdquo;), consisting of (x) common stock representing 25% of the Company&rsquo;s issued and outstanding common stock,
equal to 4,295,580 common shares and (y) non-voting common stock equal to 8,591,160 shares of the Company&rsquo;s non-voting common
stock representing the balance of the Biotest Equity Interest which is convertible into common stock of the Company upon the occurrence
of certain specified events; (iii) upon the closing, the Company agreed to issue to BPC warrants, if any, necessary to acquire
additional shares of the Company&rsquo;s capital stock equal to the excess, if any, of (x) the number of shares represented by
rights, options and warrants issued by the Company between September 12, 2016 until the closing, over (y) 184,000 shares; and (iv)
on January 1, 2019, pursuant to the terms of a separate purchase agreement to be entered into by the parties at the closing, the
Company has agreed to sell, transfer and convey to BPC for no additional consideration, all of its right, title and interest in
and to the Company&rsquo;s certain biocenter located in Norcross, Georgia and the Company&rsquo;s certain biocenter located in
Marietta, Georgia, which are subject to a repurchase right in favor of the Company if within five years after January 1, 2019,
the Biotest stockholders and its related entities own less than 20% of the Company&rsquo;s issued and outstanding capital stock.
As part of the consideration, upon the closing, BPC will also be granted the right to designate one director and one observer to
the Company&rsquo;s board of directors, and under certain circumstances, BPC will be granted the right to designate an additional
director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, on the closing date, BPC has agreed to (i) deliver
to the Company a capital contribution of $12.5 million in respect of the Biotest Equity Interest, which capital contribution will
be contributed by BPC to ADMA BioManufacturing; and (ii) fund a $15.0 million unsecured subordinated loan to the Company, which
(a) will bear interest at a rate of 6% per annum, payable semiannually in arrears, (b) has a term of five years and (c) will not
be subject to any prepayment penalty or other breakage costs. Such loan will be subordinated to the Company&rsquo;s existing indebtedness
as of the signing of the Purchase Agreement and any additional indebtedness approved by the Company&rsquo;s board of directors
which is secured only by a mortgage on the owned real property acquired in connection with the transaction. Such loan will rank
pari passu with all additional indebtedness approved by the Company&rsquo;s board of directors that is not secured only by a mortgage
on such owned real property and if such additional indebtedness is secured, the loan from BPC will be secured on a pari passu basis
with such additional indebtedness. At any time after the closing, if the Company undertakes an underwritten equity financing or
a Private Investment in Public Equity, or PIPE, offering involving at least one unrelated third party, Biotest and/or BPC have
agreed to participate pro rata in accordance with the Biotest Equity Interest up to an aggregate amount equal to $12.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon the closing, the parties will also enter into a ten-year
plasma supply agreement, pursuant to which (x) BPC will sell to the Company high titer Hepatitis B plasma at a specified price
(indexed by inflation), and (y) the Company will purchase from BPC all Hepatitis B plasma necessary to produce Nabi-HB&reg; unless
the Company requires more than a specified amount, in which case the Company may use alternative sources for the excess quantity.
Additionally, the parties have agreed to a mutual release with respect to any claims relating to or arising from any breach or
default under the Manufacturing Supply and License Agreement and Master Services Agreement between the Company and BPC. The mutual
release is effective as of the signing of the Purchase Agreement conditioned on the closing of the Proposed Acquisition at which
time the Manufacturing Supply and License Agreement and Master Services Agreement will terminate and the mutual release will no
longer be conditional.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Purchase Agreement contains customary representations and
warranties of the parties, including, without limitation, with respect to: organization; power and authority; due authorization;
enforceability; capitalization; no conflict; no consents required; no actions; no orders; financial statements; indebtedness; no
undisclosed liabilities; absence of certain changes; taxes; contracts; customers and suppliers; intellectual property; title to
properties; real property; employee benefit plans; employees; insurance; compliance with laws; environmental; material permits;
inventory; affiliate transactions; and no brokers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Purchase Agreement also contains customary covenants and
agreements, including covenants and agreements of: BPC to conduct the Business in the ordinary course until the Proposed Acquisition
is completed or terminated and to not take certain actions relating to the Business during the interim period between signing and
closing, without the Company&rsquo;s prior consent not to be unreasonably withheld, conditioned or delayed; the Company to conduct
its business in the ordinary course until the Proposed Acquisition is completed or terminated and to not take certain actions relating
to its business during the interim period between signing and closing, without BPC&rsquo;s prior consent not to be unreasonably
withheld, conditioned or delayed; BPC not to compete with the Company in certain lines of business for a period of five years following
the closing date; BPC and the Biotest Guarantors not to solicit the Company&rsquo;s employees for one year following the closing
date; the Company not to solicit BPC&rsquo;s employees for one year following the closing date; and BPC not to interfere with the
Company&rsquo;s customers for five years following the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to certain limitations, the Company or BPC may terminate
the Purchase Agreement if the Proposed Acquisition has not been consummated by September 30, 2017. A termination of the Purchase
Agreement under certain customary circumstances relating to (i) the Company&rsquo;s board of directors exercising their fiduciary
out will entitle BPC to receive from the Company a termination fee in an amount equal to $2.5 million; or (ii) the Company&rsquo;s
failure to obtain the requisite stockholder approval will entitle BPC to receive expense reimbursement in an amount up to $2.5
million. In no event will BPC be entitled to both a termination fee and expense reimbursement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">BPC and the Company will each indemnify the other party after
the closing for any losses arising from breaches of its representations, warranties, covenants and agreements in the Purchase Agreement.
In addition, the Company will indemnify BPC after the closing for any assumed liability, and BPC will indemnify the Company after
the closing for any excluded asset or excluded liability. The representations, warranties and pre-closing covenants generally survive
for 15 months following the closing of the transaction and each party&rsquo;s indemnification obligations with respect to (a) its
representations and warranties (other than its fundamental representations, which include representations related to taxes, organization,
due authorization, organizational documents, no conflicts; enforceability, title; sufficiency, the Amended and Restated Product
Distribution Agreement, effective as of January 19, 2016, by and between BPC and Kedrion Biopharma Inc., or the Kedrion Contract,
brokers, etc. and ownership of the Company&rsquo;s securities) are subject to a $25,000 mini-basket and $750,000 true deductible;
and (b) its representations and warranties (other than fundamental) and pre-closing covenants are subject to a $25.0 million cap.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">BPC will be entering into a standstill with the Company, which
will limit BPC&rsquo;s ability to control the Company. BPC will also agree to a six (6) month lock-up of the sale of the Company&rsquo;s
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The consummation of the Proposed Acquisition is subject to the
satisfaction of certain conditions, including approval of the Proposed Acquisition by the stockholders of ADMA and approval of
the amended and restated certificate of incorporation of the Company by the stockholders of ADMA. The Proposed Acquisition is not
subject to any financing conditions. There can be no assurance as to when the closing conditions will be satisfied, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon consummation and closing of the Proposed Acquisition, the
Company believes it will be uniquely positioned to offer a fully vertically integrated plasma products and immune globulin platform
in the U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Summary of Lease with Home Center Properties, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February 17, 2017, ADMA Bio Centers Georgia Inc. (&ldquo;ADMA
BioCenters&rdquo;), a Delaware corporation and a wholly-owned subsidiary of the Company, entered into a lease (the &ldquo;Lease&rdquo;)
with Home Center Properties, LLC, a Georgia limited liability company (&ldquo;Landlord&rdquo;), for approximately 12,167 square
feet located at 166 Earnest W. Barrett Parkway, Marietta, Georgia 30066 (the &ldquo;Premises&rdquo;). Pursuant to the Lease, ADMA
BioCenters will utilize the Premises as a facility specializing in the collection of human plasma and blood, general office administration
and any other related use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Lease has an initial term of approximately eight years and
nine months (the &ldquo;Initial Term&rdquo;), commencing upon substantial completion of &ldquo;Landlord&rsquo;s Work&rdquo; (as
defined in the Lease) (the &ldquo;Lease Commencement Date&rdquo;), with rent payments commencing 150 days after the Lease Commencement
Date. ADMA BioCenters&rsquo; total monthly cost of the Premises (inclusive of Landlord&rsquo;s &ldquo;Operating Costs&rdquo;, &ldquo;Taxes&rdquo;
and &ldquo;Insurance Charges&rdquo; (as such terms are defined in the Lease)) will range from approximately $20,000 to $27,000
during the Initial Term; <I>provided</I>, <I>however</I>, <I>that</I>, provided ADMA BioCenters is not in default of the Lease
beyond the expiration of any applicable notice and cure period, ADMA BioCenters shall not be obligated to make any rent payments
for the first five calendar months of the Initial Term beginning on the Lease Commencement Date and the last four months of the
Initial Term beginning on the 102<SUP>nd</SUP> month after the Lease Commencement Date. Provided that the Lease is in full force
and effect and provided there has been no &ldquo;Event of Default&rdquo; (as defined in the Lease) beyond the expiration of any
applicable notice and cure period, ADMA BioCenters shall have the option to extend the term of the Lease for two additional periods
of five years each (each, an &ldquo;Extension Term&rdquo;), each Extension Term on the same terms, covenants and conditions as
the Lease, with the rent for each Extension Term to equal the mutually agreed fair market value of the Premises on the commencement
of such Extension Term. The Lease also contains customary default provisions, representations, warranties and covenants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing summary of the material terms of the Lease is
qualified in its entirety by reference to the full text of the Lease, which is attached hereto as Exhibit 10.22 and incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 131 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNAUDITED PRO FORMA COMBINED FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The unaudited pro forma combined financial statements presented
below are derived from the historical financial statements of ADMA Biologics, Inc. (the &ldquo;<B><U>Company</U></B>&rdquo;) and
Biotest Pharmaceuticals Corporation&rsquo;s therapy business (the &ldquo;<B><U>Therapy Business Unit</U></B>&rdquo;), adjusted
to give effect to the Company&rsquo;s acquisition of the Therapy Business Unit (the &ldquo;<B><U>Acquisition</U></B>&rdquo;) (through
the Company&rsquo;s wholly owned subsidiary, ADMA BioManufacturing, LLC, a Delaware limited liability company).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To produce the pro forma financial information, the Company
used the purchase method of accounting and allocated the purchase price using its best estimates. The unaudited pro forma combined
financial statements should be read in conjunction with the accompanying notes and the respective historical financial information
from which it was derived, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>The historical financial statements and the accompanying notes of the Company as of and for the years ended December 31, 2016 and 2015, included in the Company&rsquo;s Annual Report on Form 10-K for the year ended December 31, 2016.</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>The historical carve-out financial statements and the accompanying notes of the Therapy Business Unit as of and for the years ended December 31, 2016 and 2015.</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>The unaudited financial statements and the accompanying notes of the Company as of and for the three months ended March 31, 2017, included in the Company&rsquo;s Quarterly Report on Form 10-Q for the three months ended March 31, 2017.</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD>The unaudited financial statements and the accompanying notes of the Therapy Business Unit as of and for the three months ended March 31, 2017.</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The unaudited pro forma combined balance sheet as of March 31,
2017 gives effect to the Acquisition as if it had occurred on March 31, 2017. The unaudited pro forma combined statements of operations
for the year ended December 31, 2016 and the three months ended March 31, 2017 give effect to the Acquisition as if it had occurred
on January 1, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The pro forma adjustments are preliminary and have been made
solely for informational purposes. The actual results reported by the Company in periods following the Acquisition may differ significantly
from that reflected in these unaudited pro forma combined financial statements for a number of reasons, including but not limited
to cost savings from operating efficiencies, synergies, and the impact of the incremental costs incurred in integrating the Therapy
Business Unit. As a result, the pro forma combined financial statements are not intended to represent and do not purport to be
indicative of what the combined financial condition or results of operations of the Company and the Therapy Business Unit would
have been had the Acquisition been completed on the applicable dates. In addition, the pro forma combined financial statements
do not purport to project the future financial condition and results of operations of the Company or the Therapy Business Unit.
In the opinion of management, all necessary adjustments to the unaudited pro forma financial information have been made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The pro forma combined financial statements are based on various
assumptions, including assumptions relating to the consideration paid and the allocation thereof to the assets acquired and liabilities
assumed from the Therapy Business Unit. The pro forma assumptions and adjustments are described in the accompanying notes presented
on the following pages. Pro forma adjustments are those that are directly attributable to the Acquisition, are factually supportable
and, with respect to the unaudited pro forma combined statements of operations, are expected to have a continuing impact on the
consolidated results. The final consideration paid and the allocation thereof may differ from that reflected in the pro forma combined
financial statements after final valuation procedures are concluded and estimates are refined. The unaudited pro forma combined
financial statements do not reflect any cost savings from operating efficiencies or synergies that could result from the Acquisition
or any potential reorganization and restructuring expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND THE THERAPY
BUSINESS UNIT UNAUDITED PRO FORMA COMBINED BALANCE SHEET AS OF MARCH 31, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>ADMA Biologics, Inc.</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>The Therapy Business Unit</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center"><B>Pro Forma Adjustments</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><B>Footnote Reference</B></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pro Forma</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA Biologics,</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Inc.</B>&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 40%">ASSETS</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Current Assets:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Cash and Cash Equivalents</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">8,542,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">27,310,149</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A1</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">35,853,077</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Short-Term Investments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">245,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">245,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Accounts Receivable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">839,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,027,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(3,027,623</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">839,938</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Inventories</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,308,492</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">9,660,822</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,463,469</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">13,505,845</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Prepaid Expenses and Other Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">746,846</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,750,992</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(1,561,141</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;A4</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">936,697</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Total Current Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">15,683,204</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">14,439,437</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">21,257,916</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">51,380,557</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Property and Equipment at Cost, Net</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,882,151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">22,100,436</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,948,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">29,930,787</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Other Assets:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Intangible Assets, net</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">109,555</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,974,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6,084,024</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Goodwill</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,529,509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,529,509</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Long-term Deposits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">518,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(518,678</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Deposits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">29,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">29,563</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Assets to be transferred to BPCTU (LHI Plasma Centers)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,802,107</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;A9</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,802,107</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total Other Assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">29,563</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">628,233</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">10,787,407</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">11,445,203</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>TOTAL ASSETS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">17,594,918</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">37,168,106</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">37,993,523</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">92,756,547</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Current Liabilities:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Accounts Payable</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">3,904,445</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">3,713,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(3,713,744</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A10</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">3,904,445</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Accrued Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,224,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">3,793,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,490,197</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,528,036</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Current Portion of Note Payable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6,666,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">6,666,667</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Current Portion of Deferred Revenue</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">145,154</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">145,154</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Current Portion of Leasehold Improvement Loan</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">16,935</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">16,935</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Total Current Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">12,957,920</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">7,507,258</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(5,203,941</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">15,261,237</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Notes Payable, Net of Debt Discount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10,845,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10,845,226</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>End of Term Liability, Notes Payable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,790,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,790,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Deferred Revenue, net of current portion</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,654,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,654,325</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Deferred Rent Liability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">90,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">90,476</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Leasehold Improvement Loan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">15,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">15,319</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Other Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">84,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(84,440</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>BPCTU Debt</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">15,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">15,000,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Purchase Price Payable on January 1, 2019 (2 Plasma Centers)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">12,621,844</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">12,621,844</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>TOTAL LIABILITIES</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">28,353,266</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">7,591,698</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">22,333,463</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">58,278,427</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>COMMITMENTS AND CONTINGENCIES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>STOCKHOLDERS' (DEFICIENCY) EQUITY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Common Stock voting $0.0001 par value 75,000,000 shares authorized, and 17,182,321 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,719</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Common Stock non-voting $0.0001 par value 75,000,000 shares authorized, and 8,591,160 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">859</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Additional Paid-In Capital</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">102,712,144</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">47,164,179</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">149,876,323</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Accumulated Deficit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(113,471,781</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(1,929,000</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(115,400,781</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Net Invested Equity</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">29,576,408</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(29,576,408</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>TOTAL STOCKHOLDERS' (DEFICIENCY) EQUITY</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(10,758,348</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">29,576,408</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">15,660,060</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">34,478,120</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">17,594,918</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">37,168,106</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">37,993,523</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">92,756,547</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Unaudited &nbsp;Pro Forma Combined Financial
Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND THE THERAPY
BUSINESS UNIT UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2016</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">ADMA Biologics, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">The Therapy Business Unit</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">Pro Forma Adjustments</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center">Footnote Reference</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">Pro Forma ADMA Biologics, Inc.</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 41%">Statement of Operations Data:</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>REVENUES:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Product revenue</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">10,518,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">76,505,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(460,000</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A14</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">86,563,240</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>License and other revenue</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">142,834</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">142,834</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total Revenues</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">10,661,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">76,505,037</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(460,000</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">86,706,074</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>COST OF GOODS SOLD</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total Cost of Goods Sold</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">6,360,761</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">106,944,127</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(882,090</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A15</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">112,422,798</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>GROSS MARGIN</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">4,300,276</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(30,439,090</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">422,090</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(25,716,724</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Operating Expenses:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Research and development</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7,688,238</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,414,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(460,000</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">12,643,022</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Plasma centers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,447,691</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">5,447,691</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Amortization of intangibles</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,095,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,095,314</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>General and administrative</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">8,494,742</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">28,237,172</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(1,900,000</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A17</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">34,831,914</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>TOTAL OPERATING EXPENSES</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">21,630,671</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">33,651,956</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(1,264,686</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">54,017,941</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>LOSS FROM OPERATIONS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(17,330,395</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(64,091,046</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,686,776</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(79,734,665</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>OTHER INCOME (EXPENSE):</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Interest income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">50,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">7,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">57,764</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Interest expense</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,239,569</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(157,176</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(900,000</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(3,296,745</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Other income</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">4,496</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">7,445</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">11,941</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>OTHER EXPENSE, NET</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(2,184,756</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(142,284</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(900,000</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(3,227,040</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>LOSS BEFORE INCOME TAXES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(19,515,151</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(64,233,330</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">786,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(82,961,705</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Provision for income taxes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(20,575</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&#9472;&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(20,575</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>NET LOSS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(19,515,151</TD>
    <TD STYLE="border-bottom: black 2.25pt double">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(64,253,905</TD>
    <TD STYLE="border-bottom: black 2.25pt double">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">786,776</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(82,982,280</TD>
    <TD STYLE="border-bottom: black 2.25pt double">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>NET LOSS PER COMMON SHARE, Basic and Diluted</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(1.61</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(3.40</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>WEIGHTED AVERAGE SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>OUTSTANDING, Basic and Diluted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">12,153,407</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">25,040,147</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Unaudited &nbsp;Pro Forma Combined Financial
Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC. AND THE THERAPY
BUSINESS UNIT UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">ADMA Biologics, Inc.</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">The Therapy Business Unit</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">Pro Forma Adjustments</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center">Footnote Reference</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center">Pro Forma ADMA Biologics, Inc.</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 41%">Statement of Operations Data:</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>REVENUES:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Product revenue</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">2,593,163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">11,093,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">13,686,941</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>License and other revenue</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">35,708</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&nbsp; &#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">35,708</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total Revenues</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">2,628,871</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">11,093,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp; &#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">13,722,649</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>COST OF GOODS SOLD</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Cost of product revenue</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,616,287</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">16,166,476</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">137,454</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A15</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">17,920,217</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Total Cost of Goods Sold</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,616,287</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">16,166,476</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">137,454</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">17,920,217</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>GROSS MARGIN</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,012,584</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(5,072,698</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(137,454</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(4,197,568</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Operating Expenses:</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Research and development</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,192,727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">777,087</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,969,814</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Plasma centers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,479,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,479,476</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Amortization of intangibles</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">273,828</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">273,828</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>General and administrative</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">4,277,384</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">2,316,670</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(2,569,845</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A17</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">4,024,209</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>TOTAL OPERATING EXPENSES</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">6,949,587</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">3,093,757</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(2,296,017</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">7,747,327</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>LOSS FROM OPERATIONS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(5,937,003</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(8,166,455</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">2,158,563</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(11,944,895</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>OTHER INCOME (EXPENSE):</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Interest income</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">18,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">18,568</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Interest expense</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(618,528</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(225,000</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">A13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(843,528</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Other income</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,139</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,139</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>OTHER EXPENSE, NET</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(599,960</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">1,139</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(225,000</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(823,821</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>LOSS BEFORE INCOME TAXES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(6,536,963</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(8,165,316</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,933,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(12,768,716</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Provision for income taxes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(5,144</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;&#9472;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(5,144</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>NET LOSS</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(6,536,963</TD>
    <TD STYLE="border-bottom: black 2.25pt double">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(8,170,460</TD>
    <TD STYLE="border-bottom: black 2.25pt double">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">1,933,563</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">(12,773,860</TD>
    <TD STYLE="border-bottom: black 2.25pt double">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>NET LOSS PER COMMON SHARE, Basic and Diluted</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(0.51</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(0.63</TD>
    <TD>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9472;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>$</TD>
    <TD STYLE="text-align: right">(0.50</TD>
    <TD>)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>WEIGHTED AVERAGE SHARES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>OUTSTANDING, Basic and Diluted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">12,886,741</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">12,886,740</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&#9472;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">25,773,481</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">See Notes to the Unaudited &nbsp;Pro Forma Combined Financial
Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following unaudited pro forma combined
financial information describes the pro forma effect of our acquisition of the Therapy Business Unit on our balance sheet and&nbsp;statement
of operations as of and&nbsp;for the year ended December&nbsp;31, 2016. Our unaudited pro forma combined financial statements reflect
the elimination of all intercompany balances between us and the Therapy Business Unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(1) ACQUISITION OF CERTAIN ASSETS FROM BIOTEST</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 21, 2017, the Company and its
wholly-owned subsidiary, ADMA BioManufacturing, LLC, a Delaware limited liability company (&ldquo;<B><U>Buyer</U></B>&rdquo;),
entered into a definitive Master Purchase and Sale Agreement (as amended, restated, supplemented or otherwise modified from time
to time, the &ldquo;<B><U>Purchase Agreement</U></B>&rdquo;) with Seller, and for certain limited purposes set forth in the Purchase
Agreement, Biotest AG (&ldquo;<B><U>Biotest</U></B>&rdquo;) and Biotest US Corporation, a Delaware corporation and subsidiary of
Biotest (together with Biotest, the &ldquo;<B><U>Biotest Guarantors</U></B>&rdquo;), pursuant to which Buyer has agreed to acquire
certain assets and assume certain liabilities constituting the therapy business of Seller (the &ldquo;<B><U>BPC Therapy Business
Unit</U></B>&rdquo;). We refer to the foregoing transactions and the other transactions contemplated by the Purchase Agreement
collectively in this proxy statement as the &ldquo;<B><U>Transaction</U></B>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The BPC Therapy Business Unit has two FDA-approved
marketed biopharmaceutical products, Nabi-HB&reg; (&ldquo;<B><U>Nabi-HB</U></B><U>&reg;</U>&rdquo;) and Bivigam&reg;&nbsp;(&ldquo;<B><U>Bivigam</U></B><U>&reg;</U>&rdquo;).&nbsp;&nbsp;These
products are manufactured at the BPC Therapy Business Unit&rsquo;s plasma fractionation facility located in Boca Raton, Florida
(the &ldquo;<B><U>Boca Facility</U></B>&rdquo;).&nbsp;&nbsp;The facility is FDA-licensed and certified by the German Health Authorities.&nbsp;&nbsp;In
addition to Nabi-HB&reg; and Bivigam&reg;, the facility also provides contract manufacturing for certain clients, including the
sale of intermediate by-products to Biotest.&nbsp;&nbsp;Nabi-HB&reg; is a hyperimmune globulin that is rich in antibodies to the
hepatitis B virus.&nbsp;&nbsp;Nabi-HB&reg; is indicated for the treatment of acute exposure to blood containing hepatitis B surface
antigen (&ldquo;<B><U>HBsAg</U></B>&rdquo;), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBs-AG-positive
persons and household exposure to persons with acute hepatitis B virus infection.&nbsp;&nbsp;Bivigam&reg; is an Immune Globulin
Intravenous (Human), 10% Liquid, indicated for the treatment of primary humoral immunodeficiency.&nbsp;&nbsp;In December 2016,
the BPC Therapy Business Unit temporarily suspended the commercial production of Bivigam&reg; in order to focus on the completion
of planned improvements to the process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Sale of the BPC Therapy Business Unit</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Purchase Agreement, Seller
agreed to sell certain assets of the BPC Therapy Business Unit to ADMA in exchange for an equity interest in ADMA equal to 50%
less one share of the issued and outstanding ADMA capital stock immediately following the closing of the transaction, which consists
of 4,295,580 common voting shares and 8,591,160 non-voting common shares.&nbsp;&nbsp;Seller will provide funding to ADMA at closing
in the form of $12.5 million in cash and a $15.0 million unsecured loan. The term of the loan will be five years with 6% interest.
The $15.0 million principal will be due at the end of the five year term. Furthermore, Seller will provide a firm equity commitment
to invest an additional $12.5 million in future equity financings of ADMA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Included in the assets to be sold at closing
are Nabi-HB&reg;, Bivigam&reg;, Seller&rsquo;s contract manufacturing agreements, the Boca Facility, as well as its investigational
product Civacir. The acquisition also will include most of Seller&rsquo;s corporate shared services group assets (other than accounts
receivable) and Seller&rsquo;s Boca Raton, Florida headquarters and real properties (other than a parcel of undeveloped land).
Seller will retain all accounts receivable, all raw material plasma or intermediate inventories, its plasma centers and all related
plasma center assets, and both center and corporate employees that directly support the plasma centers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Purchase Agreement also provides that,
at the closing of the transaction, Seller and ADMA will enter into the following agreements: (i) a Transition Services Agreement
pursuant to which each of Seller and ADMA agree to provide transition services to the other party, including services related to
finance, human resources, information technologies, and clinical and regulatory for a period of up to 24 months after closing;
as well as agreements to lease certain laboratory space within the Boca Facility to Seller for a period of up to 24 months after
closing, and (ii) a Plasma Supply Agreement pursuant to which, Seller will supply hyperimmune plasma to ADMA for the manufacture
of Nabi-HB&reg;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 1, 2019, as consideration for
all of the above, ADMA will deliver to Seller two of ADMA&rsquo;s plasma centers in Georgia for no additional consideration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(2)&nbsp;PURCHASE PRICE ALLOCATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Final Purchase Consideration:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 70%">Issuance of common stock (voting and non-voting) 12,886,740 shares&nbsp;at $3.66 &nbsp;per share</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 10%; text-align: right">47,165,468</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Transfer of two FDA, GHA and MFDS licensed plasma collection centers</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">12,621,844</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Final purchase consideration</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">59,787,312</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair value of the Company&rsquo;s common stock was calculated
using the Company&rsquo;s closing Nasdaq Capital Markets quoted price of $3.66 as of June 6, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">Preliminary Purchase Consideration Allocation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The following table summarizes the allocation
of the final purchase consideration to the assets acquired and liabilities assumed on June 6, 2017 based on their fair values:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 70%">Cash</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%">$</TD>
    <TD STYLE="width: 10%; text-align: right">12,500,000</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Inventory</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,197,353</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Land and building</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">20,000,000</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Property and equipment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">8,209,800</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Held for sale assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">845,389</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Spare parts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">795,553</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Intangible rights to Nabi-HB&reg;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">4,100,046</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Intangible rights to intermediate sales</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">907,421</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Intangible rights to contract manufacturing agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">1,076,557</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Liabilities assumed - PTO</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">(374,317</TD>
    <TD STYLE="border-bottom: black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Total value received from BPC Therapy Unit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">56,257,802</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD>Goodwill</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">3,529,510</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD>Final purchase consideration</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double">$</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">59,787,312</TD>
    <TD STYLE="border-bottom: black 2.25pt double">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Preliminary purchase price was allocated
to the tangible and intangible assets acquired and liabilities assumed based on their fair values at the date of acquisition. The
excess of the purchase price over the fair value of the assets acquired and liabilities assumed amounted to $3,529,510, which was
allocated to goodwill. We expect that substantially all of the amount allocated to goodwill will not be deductible for tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>(3)&nbsp;PRO FORMA ADJUSTMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>I. Unaudited Pro Forma Combined Balance Sheet of ADMA Biologics,
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 5%">(A1)</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 94%">To record $12,310,149 of capital contribution (net of prepaid expenses $189,851) and $15,000,000 of a note payable provided by Seller upon the closing of the transaction.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A2)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To eliminate Seller&rsquo;s accounts receivable in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 4%">(A3)</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 95%">To adjust the inventory balance to account for $3,527,971 of finished goods and consumable inventory with a step up valuation of $4,669,382 and to eliminate Seller&rsquo;s inventory in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A4)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To eliminate Seller&rsquo;s prepaid expenses and other current assets in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A5)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To record the value of land and building appraised at $20,000,000 and property and equipment estimated value of $8,209,800. Also, reclass assets to be transferred to Seller on January 1, 2019, the leasehold improvements of ADMA Biologics&nbsp;two FDA, GHA, MFDS licensed plasma collection centers of $1,802,107.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A6)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To record the intangible value rights to Nabi-HB&reg; of $4,100,046, the intangible rights of intermediate sales of $907,421, and the intangible rights of contract manufacturing agreement with a third party of $1,076,557.</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 4%">(A7)</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 95%">To record the goodwill assigned as part of this transaction&rsquo;s purchase price of $3,529,510.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A8)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To eliminate Seller&rsquo;s long-term deposits in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A9)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To record the value of the leasehold improvement assets of the two FDA, GHA, MFDS licensed plasma collection centers to be transferred to Seller on January 1, 2019.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A10)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To eliminate Seller&rsquo;s accounts payable in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A11)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To eliminate Seller&rsquo;s accrued expenses and to record $1,929,000 of transactions costs to be incurred and not accrued as of March 31, 2017, in addition to $374,317 of assumed accrued employee paid time off.</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 95%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A12)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To eliminate Seller&rsquo;s other liabilities in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A13)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To record the $15,000,000 note payable to Seller as part of the payment received by ADMA upon the closing of the transaction.&nbsp;&nbsp;Such note is payable in full five years from the date of the receipt of funds, with interest payments of 6% payable semi-annually in arrears in accordance with the Purchase Agreement.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>II.&nbsp; Unaudited Pro Forma Combined Statement of Operations
of ADMA Biologics, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 5%">(A14)</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 94%">To record the elimination of certain manufacturing services provided by BPC Therapy Business Unit to ADMA during the year ended December 31, 2016.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A15)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To record depreciation of building and equipment related to the manufacturing of the BPC Therapy Business Unit based upon purchase price allocation.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A16)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To record amortization of the intangible rights to Nabi-HB&reg;, intermediate sales and contract manufacturing provided to third parties over a period of seven years, for the quarter ended March 31, 2017.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">(A17)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">To reduce expenses for transaction costs primarily attributed to legal, financial, due diligence consulting.</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center"><IMG SRC="logo.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADMA BIOLOGICS, INC.</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES OF COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>______________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS</B><BR>
<B>______________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>Sole book-running manager</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 17"><B>RAYMOND
JAMES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Until a date which is 90 days from the effective date of
this Prospectus, all dealers that effect transactions in these securities, whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to the dealers&rsquo; obligation to deliver a prospectus when acting as underwriters
and with respect to their unsold allotments or subscriptions.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 13. Other Expenses of Issuance and Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table sets forth all costs and expenses, other
than underwriter discounts, payable in connection with the sale of the shares of Common Stock being registered hereby. Except as
otherwise noted, ADMA Biologics, Inc. (the &ldquo;Company&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo;, or &ldquo;our&rdquo;) will
pay all of the costs and expenses set forth in the following table. All amounts below are estimates other than the SEC&rsquo;s
registration fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 60%; text-align: left">Securities and Exchange Commission Registration Fee</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">3,580</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">FINRA Filing Fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,950</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Printing Fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal Fees and Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">300,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Transfer Agent and Registrar Fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Miscellaneous</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">32,470</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">600,000</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 14. Indemnification of Directors and Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our directors and officers are indemnified
as provided by the Delaware General Corporation Law, our certificate of incorporation, as amended, and our Amended and Restated
Bylaws. We have been advised that, in the opinion of the Securities and Exchange Commission, indemnification for liabilities arising
under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities is asserted by one of our directors, officers, or controlling persons
in connection with the securities being registered, we will, unless in the opinion of our legal counsel the matter has been settled
by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate
jurisdiction. We will then be governed by the court&rsquo;s decision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are party to indemnification agreements
with each of our directors and officers. These agreements require us to, among other things, indemnify our directors and officers
against certain liabilities which may arise by reason of their status or service as directors or officers to the fullest extent
permitted by applicable laws. These indemnification provisions and the indemnification agreements are sufficiently broad to permit
indemnification of the our officers and directors for liabilities, including reimbursement of expenses incurred, arising under
the Securities Act of 1933, which we refer to as the Securities Act. The Company also maintains director and officer liability
insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 15. Recent Sales of Unregistered Securities</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of the Loan and Security Agreement by
and among Oxford Finance LLC (&ldquo;Oxford&rdquo;), the lenders party thereto, the Company, ADMA Plasma Biologics, Inc. and ADMA
Bio Centers Georgia Inc., dated as of June 19, 2015 (the &ldquo;LSA&rdquo;), on June 19, 2015, the Company issued to Oxford a seven
year warrant, expiring on June 19, 2022, to purchase 74,309 shares of the Company&rsquo;s voting common stock, $0.0001 par value
per share (the &ldquo;Common Stock&rdquo;), at an exercise price of $8.51 per share. In May 2016, in connection with the first
amendment to the LSA, the Company issued to Oxford warrants to purchase an aggregate of up to 24,800 shares of the Company&rsquo;s
Common Stock at an exercise price equal to $6.37 per share. The warrants became exercisable on May 13, 2016 for cash or by net
exercise and will expire seven years after their issuance on May 13, 2023. The warrants were issued pursuant to Regulation D of
the Securities Act, as Oxford is an &ldquo;Accredited Investor&rdquo; as such term is defined in Rule 501 of Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of the Master Purchase and Sale Agreement
by and among the Company, ADMA BioManufacturing, LLC (&ldquo;ADMA BioManufacturing&rdquo;), and Biotest Pharmaceuticals Corporation
(&ldquo;BPC&rdquo;), dated as of January 21, 2017 (the &ldquo;Purchase Agreement&rdquo;), at the closing of the transaction the
Company delivered to BPC an aggregate equity interest in the Company equal to 50%, less one share, of the Company&rsquo;s issued
and outstanding capital stock, comprised of 25%, or 4,295,580 shares, of the Company&rsquo;s Common Stock, and 8,591,160 shares
in the form of the Company&rsquo;s non-voting common stock, $0.0001 par value per share (the &ldquo;Non-Voting Common Stock&rdquo;)
(calculated as of immediately following the closing and on a post-closing issuance basis) (the &ldquo;Biotest Equity Interest&rdquo;).
The Non-Voting Common Stock is convertible into the Company&rsquo;s Common Stock upon the occurrence of certain specified events.
The Biotest Equity Interest was issued pursuant to Regulation D of the Securities Act, as BPC is an &ldquo;Accredited Investor&rdquo;
as such term is defined in Rule 501 of Regulation D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, on June 6, 2017, BPC (i) delivered to us a capital
contribution of $12.5 million in respect of the Biotest Equity Interest, which capital contribution was contributed by BPC to ADMA
BioManufacturing; and (ii) funded a $15.0 million unsecured subordinated loan to us, which (a) bears interest at a rate of 6% per
annum, payable semiannually in arrears on each of the six-month and twelve-month anniversary dates of the closing date, (b) has
a term of five years and (c) is not subject to any prepayment premium, penalty or other breakage costs (the &ldquo;Subordinated
Loan Facility&rdquo;). We are required to repay the Subordinated Loan Facility in full upon certain disposals of the therapy business
of BPC (the &ldquo;BTBU&rdquo;), certain disposals of shares of ADMA BioManufacturing and other change of control events in relation
to ADMA BioManufacturing or certain liquidation events of the Company. All of ADMA BioManufacturing&rsquo;s obligations under the
Subordinated Loan Facility are unconditionally guaranteed by the Company. The Subordinated Loan Facility contains certain customary
affirmative covenants. The Subordinated Loan Facility also contains certain negative covenants limiting the incurrence by the Company
or ADMA BioManufacturing of certain indebtedness, the entry by the Company and its subsidiaries (including ADMA BioManufacturing)
into certain transactions with affiliates and certain voluntary or optional prepayments by the Company and its subsidiaries of
indebtedness that is contractually subordinate in right of payment to the obligations under the Subordinated Loan Facility. The
Subordinated Loan Facility is subordinated to (i) the Company&rsquo;s existing indebtedness under the LSA among the Company, the
Company&rsquo;s subsidiaries and Oxford, (ii) any refinancing of the LSA, in accordance with the terms and conditions of the subordination
agreement dated as of June 6, 2017 between Oxford and BPC, and (iii) any additional &ldquo;Indebtedness&rdquo; (as defined in the
subordinated loan agreement) for borrowed money approved by the Company&rsquo;s Board of Directors (the &ldquo;Board&rdquo;) and
incurred by the Company or ADMA BioManufacturing which is secured solely by a mortgage on the owned real property acquired in connection
with the Biotest acquisition. The Subordinated Loan Facility will rank <I>pari passu</I> with all additional indebtedness approved
by the Board and incurred by the Company or ADMA BioManufacturing which is not secured solely by the owned real property acquired
in connection with the Biotest acquisition. If such additional <I>pari passu</I> indebtedness is secured, then the Subordinated
Loan Facility will also be secured on a <I>pari passu</I> basis. The Subordinated Loan Facility contains certain customary events
of default. If an event of default occurs, BPC will be entitled to take various actions, including the acceleration of amounts
due under the Subordinated Loan Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As consideration for the Credit Agreement, the Company has
issued, on October 10, 2017, a Warrant to Purchase Stock to Marathon (the &ldquo;Tranche One Warrant&rdquo;). The
Tranche One Warrant has (i) an exercise price equal to $3.10, which is the trailing 10-day VWAP of the Company&rsquo;s Common
Stock prior to October 10, 2017, and (ii) an expiration date of October 10, 2024. The Tranche One Warrant is
exercisable for 338,710 shares of Common Stock, or 3.5% of the Tranche One Loan. In the event that the Tranche Two Loan is
issued to the Company, the Company shall issue an additional Warrant to Purchase Stock to Marathon (the &ldquo;Tranche Two
Warrant&rdquo;) to purchase such number of shares of Common Stock equal to 3.5% of the Tranche Two Loan, which shall have an
exercise price equal to  the trailing 10-day VWAP of the Common Stock prior to the issuance date of the Tranche Two Warrant and an expiration
date equal to the seven year anniversary of the issuance of the Tranche Two Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 16. Exhibits and Financial Statement Schedules<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP></SUP></FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following exhibits are filed as part
of, or incorporated by reference into this document:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%; border-bottom: black 1.5pt solid"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 88%; border-bottom: black 1.5pt solid"><B>Description</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>1.1**</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Form of Underwriting Agreement.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>2.1 </TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517000054/e615690_ex2-1.htm" STYLE="-sec-extract: exhibit">Master Purchase and Sale Agreement, dated as of January 21, 2017, by and among Biotest Pharmaceuticals Corporation, ADMA BioManufacturing, LLC, ADMA Biologics, Inc., Biotest AG and Biotest US Corporation (incorporated herein by reference to Exhibit 2.1 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on January 23, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001080/e616248_ex3-1.htm" STYLE="-sec-extract: exhibit">Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K filed on June 12, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>3.2</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516004084/e615468_ex3-1.htm" STYLE="-sec-extract: exhibit">Amended and Restated Bylaws (incorporated herein by reference to Exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 7, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.1</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380512000555/e609522_ex4-1.htm" STYLE="-sec-extract: exhibit">Specimen Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to Amendment No. 1 to the Company&rsquo;s Current Report on Form 8-K/A, filed with the SEC on March 29, 2012).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.2</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380513000287/e610467_ex4-3.htm" STYLE="-sec-extract: exhibit">Form of Warrant Agreement with Hercules Technology Growth Capital, Inc. (incorporated herein by reference to Exhibit 4.3 to the Company&rsquo;s Registration Statement on Form S-1, filed with the SEC on February 11, 2013).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516003247/e615009_ex4-6.htm" STYLE="-sec-extract: exhibit">Form of Warrant Agreement with Oxford Finance LLC (incorporated herein by reference to Exhibit 4.6 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.4</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517003270/e617372_ex4-2.htm" STYLE="-sec-extract: exhibit">Warrant to Purchase Stock, dated October 10, 2017, issued by the Company to Marathon Healthcare Finance Fund, L.P. (incorporated herein by reference to Exhibit 4.2 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 11, 2017).</A></P>
        <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.5</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380513000287/e610467_ex4-4.htm" STYLE="-sec-extract: exhibit">Form of Secured Term Loan Promissory Note issued to Hercules Technology Growth Capital, Inc. (incorporated herein by reference to Exhibit 4.4 to the Company&rsquo;s Registration Statement on Form S-1, filed with the SEC on February 11, 2013).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.6</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516003247/e615009_ex4-7.htm" STYLE="-sec-extract: exhibit">Form of Secured Term B Loan Promissory Note issued to Oxford Finance LLC (incorporated herein by reference to Exhibit 4.7 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>4.7</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517003270/e617372_ex4-1.htm" STYLE="-sec-extract: exhibit">Tranche One Term Note, dated October 10, 2017, issued by the Company to Marathon Healthcare Finance Fund, L.P. (incorporated herein by reference to Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 11, 2017).</A></P>
        <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>5.1*</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="e617359_ex5-1.htm">Legal Opinion of DLA Piper LLP (US).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.1&dagger;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380512001750/e610168_def14c-adma.htm" STYLE="-sec-extract: exhibit">2007 Employee Stock Option Plan, as amended by Amendment No. 3 (incorporated herein by reference to Exhibit A to the Information Statement on Schedule 14C, filed with the SEC on October 29, 2012).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.2&dagger;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001506/e616485_ex10-1.htm" STYLE="-sec-extract: exhibit">Amended and Restated ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.1 to the Company&rsquo;s Registration Statement on Form S-8 filed on August 18, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.3&dagger;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516002889/e614766_ex10-2.htm" STYLE="-sec-extract: exhibit">Amended and Restated Employment Agreement, dated January 28, 2016, by and between ADMA Biologics, Inc. and Adam Grossman (incorporated herein by reference to Exhibit 10.2 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on March 23, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.4&dagger;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516002889/e614766_ex10-8.htm" STYLE="-sec-extract: exhibit">Amended and Restated Employment Agreement, dated January 28, 2016, by and between ADMA Biologics, Inc. and Brian Lenz (incorporated herein by reference to Exhibit 10.8 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on March 23, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.5&dagger;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516002889/e614766_ex10-11.htm" STYLE="-sec-extract: exhibit">Amended and Restated Employment Agreement, dated January 28, 2016, by and between ADMA Biologics, Inc. and James Mond, M.D., Ph.D. (incorporated herein by reference to Exhibit 10.11 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on March 23, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6+ </TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380512001076/e609784_ex10-9.htm" STYLE="-sec-extract: exhibit">Plasma Purchase Agreement, dated as of November 17, 2011, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc., as amended by First Amendment to Plasma Purchase Agreement, dated as of December 1, 2011, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.9 to Amendment No. 3 to the Company&rsquo;s Current Report on Form 8-K/A, filed with the SEC on June 22, 2012).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">10.6.1+</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 88%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516002889/e614766_ex10-31.htm" STYLE="-sec-extract: exhibit">Second Amendment to Plasma Purchase Agreement, dated as of December 18, 2015, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.3.1 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on March 23, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6.2</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516003247/e615009_ex10-32.htm" STYLE="-sec-extract: exhibit">Third Amendment to Plasma Purchase Agreement, dated as of April 8, 2016, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.3.2 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.6.3</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-9.htm" STYLE="-sec-extract: exhibit">Fourth Amendment to Plasma Purchase Agreement, dated as of June 6, 2017, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.9 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.7+ </TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516002889/e614766_ex10-10.htm" STYLE="-sec-extract: exhibit">Amended and Restated Plasma Supply Agreement, dated as of March 23, 2016, by and between ADMA Biologics, Inc. and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.10 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on March 23, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.8+</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-5.htm" STYLE="-sec-extract: exhibit">Plasma Supply Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.5 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.9+</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-6.htm" STYLE="-sec-extract: exhibit">Plasma Purchase Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.6 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.10</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516003725/e615266_ex10-18.htm" STYLE="-sec-extract: exhibit">Amended and Restated Agreement for Services, effective as of January 1, 2016, by and between ADMA Biologics, LLC and Areth LLC (incorporated herein by reference to Exhibit 10.18 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 12, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.11</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380512000196/e609275_ex10-11.htm" STYLE="-sec-extract: exhibit">Agreement of Lease, effective June 1, 2008 and confirmed on November 13, 2008, by and among ADMA Bio Centers Georgia Inc., ADMA Biologics, Inc. and C1VF I-GA1W15-W23, LLC (DCT Holdings), as amended on January 20, 2011, May 24, 2012 and January 1, 2014 (incorporated herein by reference to Exhibit 10.11 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on February 13, 2012).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.12+</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380514000641/e611969_ex10-12.htm" STYLE="-sec-extract: exhibit">Lease, dated as of January 20, 2014, by and between ADMA Bio Centers Georgia Inc. and U.S. Bank National Association, effective February 1, 2014, as amended on December 18, 2014 and July 9, 2015 (incorporated by reference to Exhibit 10.12 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on March 28, 2014).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.13</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517000330/e615811_ex10-22.htm" STYLE="-sec-extract: exhibit">Lease, effective as of February 17, 2017, by and between Home Center Properties, LLC and ADMA Bio Centers Georgia Inc. (incorporated herein by reference to Exhibit 10.22 to the Company&rsquo;s Annual Report on Form 10-K, filed with the SEC on February 24, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.14</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-7.htm" STYLE="-sec-extract: exhibit">Purchase Agreement, dated as of June 6, 2017, by and among the Company, Biotest Pharmaceuticals Corporation and ADMA Bio Centers Georgia, Inc. (incorporated herein by reference to Exhibit 10.7 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.15</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380512000196/e609275_ex10-12.htm" STYLE="-sec-extract: exhibit">Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.12 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on February 13, 2012).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.16+</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380512001341/e609936_ex10-16.htm" STYLE="-sec-extract: exhibit">Testing Services Agreement, dated as of June 8, 2012, by and between ADMA Biologics, Inc. and Quest Diagnostics Clinical Laboratories, Inc. (incorporated herein by reference to Exhibit 10.16 to Amendment No. 4 to the Company&rsquo;s Registration Statement on Form S-1, filed with the SEC on August 10, 2012).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.17</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380515001351/e613967_ex10-23.htm" STYLE="-sec-extract: exhibit">Loan and Security Agreement, dated as of June 19, 2015, by and among Oxford Finance LLC, the lenders party thereto, ADMA Biologics, Inc., ADMA Plasma Biologics, Inc. and ADMA Bio Centers Georgia Inc. (incorporated herein by reference to Exhibit 10.23 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2015).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%">10.17.1</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 88%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380516003247/e615009_ex10-171.htm" STYLE="-sec-extract: exhibit">First Amendment to Loan and Security Agreement, dated as of May 13, 2016, by and among Oxford Finance LLC, the lenders party thereto, ADMA Biologics, Inc., ADMA Plasma Biologics, Inc. and ADMA Bio Centers Georgia Inc. (incorporated herein by reference to Exhibit 10.17.1 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.18</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001080/e616248_ex10-1.htm" STYLE="-sec-extract: exhibit">Subordinated Loan Agreement, dated as of June 6, 2017, by and among the Company, ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed on June 12, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.19</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517003270/e617372_ex10-1.htm" STYLE="-sec-extract: exhibit">Credit Agreement, dated as of October 10, 2017, by and among the Company, ADMA Plasma Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC, Marathon Healthcare Finance Fund, L.P. and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 11, 2017).</A></P>
        <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.20</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517003270/e617372_ex10-2.htm" STYLE="-sec-extract: exhibit">Security Agreement, dated as of October 10, 2017, by and among the Company, ADMA Plasma Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.2 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 11, 2017).</A></P>
        <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.21</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517003270/e617372_ex10-3.htm" STYLE="-sec-extract: exhibit">Intellectual Property Security Agreement, dated as of October 10, 2017, by and among the Company, ADMA Plasma Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.3 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 11, 2017).</A></P>
        <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.22</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517003270/e617372_ex10-4.htm" STYLE="-sec-extract: exhibit">Pledge Agreement, dated as of October 10, 2017, by and between the Company and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.4 to the Company&rsquo;s Current Report on Form 8-K, filed with the SEC on October 11, 2017).</A></P>
        <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.23+ </TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380513000287/e610467_ex10-21.htm" STYLE="-sec-extract: exhibit">License Agreement, effective as of December 31, 2012, by and between ADMA Biologics, Inc. and Biotest Aktiengesellschaft (incorporated herein by reference to Exhibit 10.21 to the Company&rsquo;s Registration Statement on Form S-1, filed with the SEC on February 11, 2013).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.23.1</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-8.htm" STYLE="-sec-extract: exhibit">First Amendment to License Agreement, dated as of June 6, 2017, by and between the Company and Biotest Aktiengesellschaft (incorporated herein by reference to Exhibit 10.8 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.24</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001080/e616248_ex10-2.htm" STYLE="-sec-extract: exhibit">Stockholders Agreement, dated as of June 6, 2017, by and between the Company and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.2 to the Company&rsquo;s Current Report on Form 8-K filed on June 12, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.25</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001080/e616248_ex10-3.htm" STYLE="-sec-extract: exhibit">Registration Rights Agreement, dated as of June 6, 2017, by and between the Company and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.3 to the Company&rsquo;s Current Report on Form 8-K filed on June 12, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.26+</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-4.htm" STYLE="-sec-extract: exhibit">Transition Services Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.4 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>10.27</TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="http://www.sec.gov/Archives/edgar/data/1368514/000119380517001446/e616455_ex10-10.htm" STYLE="-sec-extract: exhibit">Termination Agreement (Manufacturing, Supply and License Agreement and Master Services Agreement), dated as of June 6, 2017, by and between the Company and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.10 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).</A></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>21.1*</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="e617359_ex21-1.htm">Subsidiaries of the Company.</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">23.1*</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="e617359_ex23-1.htm">Consent of CohnReznick LLP.</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.2*</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="e617359_ex23-2.htm">Consent of CohnReznick LLP.</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.3*</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="e617359_ex23-3.htm">Consent of R&ouml;dl Langford de Kock LLP.</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>23.4*</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="e617359_ex5-1.htm">Consent of DLA Piper LLP (US) (included in Exhibit 5.1).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>24.1*</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="#poa">Power of Attorney (included on signature page).</A></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">+ Confidential treatment has been granted with respect as to
certain portions of this exhibit. Such portions have been redacted and submitted separately to the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* Filed herewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">** To be filed by amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&dagger; Management compensatory plan, contract or arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 17. Undertakings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The undersigned registrant hereby undertakes that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(1) For purposes of determining any liability
under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement
in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">(2) For the purpose of determining any liability
under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial <I>bona fide</I> offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the Borough of Ramsey, State of New Jersey on October 11, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>ADMA BIOLOGICS, INC.</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%">By:&#9;</TD>
    <TD STYLE="width: 35%; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ Adam S. Grossman</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0">Adam S. Grossman</P>
        <P STYLE="margin-top: 0; margin-bottom: 0">President and Chief Executive Officer&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Page; Sequence: 146 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 2px solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font-size: 10pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center; font-size: 8pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="poa"></A>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">KNOW BY ALL MEN BY THESE PRESENTS, that
each person whose signature appears below constitutes and appoints Adam S. Grossman and Brian Lenz, and each of them, the undersigned&rsquo;s
true and lawful attorneys-in-fact and agents, with full power of substitution and revocation, for and in the undersigned&rsquo;s
name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this
registration statement and any registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended,
and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as fully to all intents and purposes as the undersigned might or could
do in person, hereby ratify and confirming all that said attorneys-in-fact and agents or any of them, or their or his substitutes,
may lawfully do or cause to be done by virtue thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1933, as amended, this registration statement has been signed below by the following persons on behalf of the registrant
and in the capacities indicated on the date listed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 30%"><B>Signature</B></TD>
    <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 40%; text-align: center"><B>Capacity</B></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 20%; text-align: center"><B>Date</B></TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Adam S. Grossman</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">President and Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;&nbsp;Adam S. Grossman</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">(Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Brian Lenz</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Vice President and Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;&nbsp;Brian Lenz</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">(Principal Financial Officer and Principal Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Steven A. Elms</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Chairman of the Board of Directors&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;&nbsp;Steven A. Elms</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Dr. Jerrold B. Grossman</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Vice Chairman of the Board of Directors</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;&nbsp;Dr. Jerrold B. Grossman</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Bryant E. Fong</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;&nbsp;Bryant E. Fong</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Dov A. Goldstein, M.D.</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;Dov A. Goldstein, M.D.</P></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Lawrence P. Guiheen</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">October 11, 2017</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">Lawrence P. Guiheen</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">October 11, 2017</P></TD>
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    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">/s/ Dr. Bernhard Ehmer</TD>
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    <TD STYLE="vertical-align: top">Director</TD>
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    <TD STYLE="vertical-align: top">October 11, 2017</TD></TR>
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    <TD STYLE="vertical-align: top">Dr. Bernhard Ehmer</TD>
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As filed with the Securities and Exchange
Commission on October 11, 2017
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
ADMA
Biologics, Inc.
(Exact name of registrant as specified in
its charter)
Delaware
8731
56-2590442
(State or other jurisdiction
of incorporation or
organization)
(Primary Standard Industrial
Classification Code Number)
(IRS Employer
Identification Number)
465 State Route 17
Ramsey, New Jersey 07446
(201) 478-5552
(Address, including zip code, and telephone
number,
including area code, of registrant's principal executive offices)
Adam S. Grossman
President and Chief Executive Officer
ADMA Biologics, Inc.
465 State Route 17
Ramsey, New Jersey 07446
(201) 478-5552
(Name, address, including zip code, and
telephone number,
including area code, of agent for service)
Copies to:
David C. Schwartz, Esq.
DLA Piper LLP (US)
51 John F. Kennedy Parkway, Suite
120
Short Hills, New Jersey 07078
(973) 520-2550
Ivan Blumenthal, Esq.
Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo P.C.
666 Third Avenue
New York, New York 10017
(212) 935-3000
Approximate date of commencement of proposed
sale to the public: As soon as practicable after this Registration Statement becomes effective.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the
following box. ☐
If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act
registration Statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. ☐
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting
company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer ☐
(Do not check if a smaller
reporting company)
Smaller reporting company ☒
Emerging growth company ☒
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
CALCULATION OF REGISTRATION FEE
Title of each class of
securities to be registered
(1)
Proposed
maximum
aggregate
offering price
(2)
Amount of
registration fee
Common Stock, $0.0001 par value per share
$28,750,000
$3,580
(1)       Pursuant
to Rule 416 under the Securities Act of 1933 (the "Securities Act"), this registration statement shall be deemed to
cover the additional securities (i) to be offered or issued in connection with any provision of any securities purported to be
registered hereby to be offered pursuant to terms which provide for a change in the amount of securities being offered or issued
to prevent dilution resulting from stock splits, stock dividends, or similar transactions and (ii) of the same class as the securities
covered by this registration statement issued or issuable prior to completion of the distribution of the securities covered by
this registration statement as a result of a split of, or a stock dividend on, the registered securities.
(2)       Estimated
solely for the purpose of calculating the amount of the registration fee in accordance with Rule 457(o) under the Securities Act.
Includes the offering price of any additional securities that the underwriters have the option to purchase.
The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant
to said Section 8(a), may determine.
The
information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in any state or jurisdiction where the offer or sale
is not permitted.
PRELIMINARY PROSPECTUS
Subject to completion, dated October
11
, 2017
ADMA BIOLOGICS, INC.
Shares of Common
Stock
We are offering an aggregate amount of            shares of our common stock. The offering price per share is $                .
Our common stock is listed on the Nasdaq
Capital Market under the symbol "ADMA." On October 6, 2017, the closing sale price of our common stock on the Nasdaq
Capital Market was $3.19 per share.
We are an "emerging growth company"
under applicable federal securities laws and are subject to reduced public company reporting requirements. Investing in our common
stock involves risks, including those set forth in the "Risk Factors" section of this prospectus beginning on page
9, as well as those set forth in any prospectus supplement.
The offering price to the public will be
determined by negotiation between us and the Underwriters, but will be fixed prior to pricing of the offering and may be at a discount
to the current market price. Please see the "Underwriting" section for more information.
Per
Share
Total
Public Offering Price
$
$
Underwriting Discounts and Commissions
$
$
Proceeds to Us (Before Expenses)(1)
$
$
(1) In addition to the underwriting discounts and commissions,
we agreed to pay or reimburse the Underwriters to cover certain out-of-pocket expenses of the Underwriters in connection with this
offering. Please see the "Underwriting" section for more information.
Biotest AG and Biotest Pharmaceuticals
Corporation have contractually committed to purchase up to an aggregate amount of $12.5 million of shares of common stock in this
offering, on a pro-rata basis, at the public offering price. In addition, certain of our other existing stockholders have also
indicated an interest in purchasing shares of common stock in this offering at the public offering price. Not all of these indications
of interests are binding agreements or commitments to purchase, and thus certain parties may elect not to purchase shares of common
stock in this offering. Raymond James & Associates, Inc. will receive an underwriting discount and commission of 4.0% on the
sale of shares of common stock to these existing stockholders.
The delivery of the shares is
expected to be made on or about         , 2017. We have granted the Underwriters an
option for a period of 30 days to purchase up to a total of         additional
shares.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is         , 2017.
Sole book-running manager
RAYMOND JAMES
TABLE OF CONTENTS
Prospectus Summary
1
Risk Factors
9
Special Note Regarding Forward-Looking Statements
29
Use of Proceeds
31
Dilution
32
Business
33
Market Price of and Dividends on Common Stock and Related Stockholder Matters
50
Management's Discussion and Analysis of Financial Condition and Results of Operations
51
Directors, Executive Officers and Corporate Governance
65
Executive Compensation
69
Security Ownership of Certain Beneficial Owners and Management
74
Certain Relationships and Related Transactions, and Director Independence
76
Description of Securities
77
Underwriting
81
Legal Matters
87
Experts
87
Where You Can Find More Information
87
Incorporation of Certain Information by Reference
88
Financial Statements
89
Unless otherwise indicated, information contained in this prospectus
concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity
and market share, is based on information from our own management estimates and research, as well as from industry and general
publications and research, surveys and studies conducted by third parties. Management estimates are derived from publicly available
information, our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable.
In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree
of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors
could cause our future performance to differ materially from our assumptions and estimates. See "Special Note Regarding Forward-Looking
Statements."
No dealer, salesperson or other person is authorized to give
any information or to represent anything not contained in this prospectus.  You must not rely on any unauthorized information
or representations.  This prospectus and any free writing prospectus do not constitute an offer to sell, or a solicitation
of an offer to purchase, any securities other than the registered securities to which they relate, nor do this prospectus and any
free writing prospectus constitute an offer to sell, or a solicitation of an offer to purchase, the securities offered by this
prospectus in any jurisdiction to or from any person whom or from whom it is unlawful to make such offer or solicitation of an
offer in such jurisdiction.  The information contained in this prospectus or in any applicable free writing prospectus is
current only as of its date.
This prospectus includes our trademarks, trade names and service
marks, such as "Nabi-HB®" and "Bivigam®" which are protected under applicable intellectual property
laws and are the property of ADMA Biologics, Inc., or its subsidiaries. Solely for convenience, trademarks, trade names and service
marks referred to in this prospectus may appear without the ®, ™ or SM symbols, but such references are not intended
to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable
licensor to these trademarks, trade names and service marks. We do not intend our use or display of other parties' trademarks,
trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement
or sponsorship of us by, these other parties.
Prospectus
Summary
This summary highlights selected information
contained elsewhere in this prospectus. This summary does not contain all the information that you should consider before investing
in our common stock. You should carefully read the entire prospectus, including "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and the Financial Statements, before making an
investment decision. Unless the context otherwise requires, references in this prospectus to "we," "us,"
"our," the "Company," "ADMA Biologics" and "ADMA" refer to ADMA Biologics, Inc.,
a Delaware corporation, and its subsidiaries.
Our Business
ADMA Biologics, Inc. is a vertically integrated commercial biopharmaceutical
and specialty immunoglobulin company that manufactures, markets and develops specialty plasma-derived biologics for the treatment
of immune deficiencies and prevention of certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. We currently
have two marketed products: Nabi-HB, indicated for the treatment of acute exposure to blood containing Hepatitis B surface antigen
("HBsAg"); and Bivigam, indicated for the treatment of primary humoral immunodeficiency. We are also developing a pipeline
of plasma-derived therapeutics, including our lead pipeline product candidate, RI-002 for the treatment of Primary Immune Deficiency
Disease ("PIDD"). Our products and product candidates are intended to be used by physician specialists focused on caring
for immune-compromised patients with or at risk for certain infectious diseases.
On June 6, 2017, we completed the acquisition of certain assets
(the "Biotest Assets") of the Therapy Business Unit ("BTBU") of Biotest Pharmaceuticals Corporation ("BPC"
and, together with its parent corporation Biotest AG, "Biotest"), which includes two United States Food and Drug Administration
(the "FDA") licensed products, Nabi-HB (Hepatitis B Immune Globulin, Human) and Bivigam (Immune Globulin Intravenous,
Human) and a plasma fractionation facility located in Boca Raton, Florida (the "Boca Facility") (the "Biotest
Transaction"). Nabi-HB and Bivigam are manufactured at the Boca Facility, an FDA-licensed facility certified by the German
Health Authority (the "GHA"). In addition to the manufacture and sale of Nabi-HB and Bivigam, we also provide contract
manufacturing for certain historical clients, including the sale of intermediate by-products. Immediately following the acquisition,
the Biotest Assets were contributed into our wholly-owned subsidiary, ADMA BioManufacturing, LLC ("ADMA BioManufacturing").
Concurrent with the closing of the acquisition of the Biotest
Assets, we received $12.5 million in cash consideration in addition to a $15.0 million subordinated note from Biotest at 6% interest
payable to BPC with a maturity of five years, and Biotest committed to participate in any future equity offering or private placement
undertaken by us in an amount equal to up to $12.5 million on a pro-rata basis, which will be invested as part of this offering.
At the closing of the Biotest Transaction, we delivered to BPC an aggregate equity interest equal to 50%, less one share, of our
issued and outstanding capital stock comprised of 25%, or 4,295,580 shares, of our voting common stock, $0.0001 par value per share
("Common Stock"), and 8,591,160 shares in the form of our non-voting common stock, $0.0001 par value per share ("Non-Voting
Common Stock") (calculated as of immediately following the closing and on a post-closing issuance basis) (the "Biotest
Equity Interest"). The Non-Voting Common Stock is convertible into our Common Stock upon the occurrence of certain specified
events.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our Biologics License Application (the "BLA")
with the FDA and initiate collections for this facility by the end of 2017.
Our Marketed Products
Nabi-HB
Nabi-HB is a hyperimmune globulin that is rich in antibodies
to the Hepatitis B virus. Nabi-HB is a purified human polyclonal antibody product collected from plasma donors who have been previously
vaccinated with a Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing HBsAg, prenatal
exposure to infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive persons and household exposure to persons
with acute Hepatitis B virus infection. Hepatitis B is a potentially life-threatening liver infection caused by the Hepatitis B
virus. It is a major global health problem. It can cause chronic infection and puts people at high risk of death from cirrhosis
and liver cancer. Nabi-HB has a well-documented record of long-term safety and effectiveness since its initial market introduction.
FDA approval for Nabi-HB was received on March 24, 1999. Biotest acquired Nabi-HB from Nabi Biopharmaceuticals in 2007.
1
Bivigam
Bivigam is an intravenous immune globulin indicated for the
treatment of primary humoral immunodeficiency. This includes, but is not limited to, agammaglobulinemia, common variable immunodeficiency,
Wiskott-Aldrich syndrome and severe combined immunodeficiency. These primary immunodeficiencies ("PIs") are a group
of genetic disorders. Initially thought to be very rare, it is now believed that as many as one in every 1,200-2,000 people has
some form of PI. Bivigam contains a broad range of antibodies similar to those found in normal human plasma. These antibodies are
directed against bacteria and viruses, and help to protect PI patients against serious infections. Bivigam is a purified, sterile,
ready-to-use preparation of concentrated Immunoglobulin G ("IgG") antibodies. Antibodies are proteins in the human
immune system that work to defend against disease. FDA approval for Bivigam was received on December 19, 2012, and sales commenced
in the first quarter of 2013. In December 2016, BPC temporarily suspended the commercial production of Bivigam in order to focus
on the completion of planned improvements to the manufacturing process. Although we expect to resume production in the fourth
quarter of 2017, Bivigam is not expected to be available for sale throughout the remainder of 2017 and FDA clearance for relaunch
is expected to occur by mid-2018.
Our Lead Pipeline Product Candidate – RI-002
We are currently developing our lead pipeline product candidate,
RI-002, for the treatment of PIDD and have completed a pivotal Phase III clinical trial, which met the primary endpoint of no Serious
Bacterial Infections ("SBIs") reported. Secondary efficacy endpoints further demonstrated the benefits of RI-002 in
the low incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare, and unscheduled medical visits
and hospitalizations. RI-002 is derived from human plasma blended from normal donors and from donors tested to have high levels
of neutralizing titers to Respiratory Syncytial Virus ("RSV"). RI-002 is manufactured using a process called fractionation,
which purifies human IgG from this blended plasma pool resulting in a final Intravenous Immune Globulin ("IVIG") product
enriched with naturally occurring polyclonal anti-pathogen antibodies (e.g., streptococcus pneumonia, H. influenza type B, Cytomegalovirus
("CMV"), measles, tetanus, etc.). We use our proprietary RSV microneutralization assay to test for standardized levels
of neutralizing antibodies to RSV in the final drug product.
Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment
of PIDD. In July 2016, the FDA issued a Complete Response Letter (the "CRL"). The CRL reaffirmed the issues set forth
in a November 2014 warning letter (the "Warning Letter") that had been issued by the FDA to Biotest related to certain
issues identified at the Boca Facility, but did not cite any concerns with the clinical safety or efficacy data for RI-002 submitted
in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA approval of RI-002. The FDA identified
in the CRL, among other things, certain outstanding inspection issues and deficiencies related to Chemistry, Manufacturing and
Controls ("CMC") and Good Manufacturing Practices ("GMP") at the Boca Facility and at certain of our third-party
vendors, and requested documentation of corrections for a number of these issues. The FDA indicated in the CRL that it cannot grant
final approval of our BLA until, among other things, these deficiencies are resolved. Following the completion of the Biotest Transaction,
we now have control over the regulatory, quality, general operations and drug substance manufacturing process at the Boca Facility,
and our highest priority is to remediate the outstanding compliance issues that were identified at the Boca Facility in the Warning
Letter, and we plan to be inspection-ready for the FDA by the end of 2017. We are currently working with a consulting firm consisting
of quality management systems and biologics production subject matter experts in preparation for a re-inspection by the FDA in
order to downgrade the FDA inspection classification relative to the Warning Letter compliance issues as indicated in the CRL.
Following downgrading of the FDA inspection classification, we anticipate that we will be in a position to refile our BLA for RI-002
in mid-2018.
Evaluation of RI-002 in PIDD Patients
PIDD, a genetic disorder that causes a deficient or absent immune
system, is caused by hereditary or genetic defects and can affect anyone regardless of age or gender. PIDD patients are more vulnerable
to infections and more likely to suffer complications from these infections. IVIG is a plasma derived product that is used to prevent
serious infections in patients with PIDD. It is comprised of polyclonal antibodies, which are proteins produced by B-cells that
are used by the body's immune system to neutralize foreign objects such as bacteria and viruses. It is estimated that there
are about 250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. In the U.S.,
sales of immune globulin products for all its uses were reported to be approximately $4.8 billion in 2014.
The RI-002 pivotal Phase III clinical trial was conducted as
a single arm study in which patients were treated approximately once per month for a period of 12 months plus 90 days for follow
up. Fifty-nine patients were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of serious infections to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic, or PK, data collection points including
antibody titers for certain agents, including RSV antibody levels at various time points after infusion.
RI-002 demonstrated positive results in the Phase III study
in patients with PIDD, meeting its primary endpoint of no Serious Bacterial Infections ("SBI") reported. RI-002 was
administered in a total of 793 infusions with zero serious adverse events to 59 patients in nine treatment centers throughout the
U.S. These results, included in our BLA, more than meet the requirement specified by FDA guidance of ≤ 1 SBI per patient-year.
2
On February 22, 2015, at the 2015 American Academy of Allergy,
Asthma & Immunology Annual Meeting, scientific investigators reported on the secondary outcomes that included: a total of 93
days, or 1.66 days per patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and IgG trough levels above those required by the FDA for IVIG products. Additionally, there
was a marked increase in all of the measured specific anti-pathogen antibodies in PK subjects (n=31). The mean of maximum fold
increases in specific antibody levels after infusion of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV),
which were statistically significant fold increases from the pathogen's specific measured baselines. The safety profile of RI-002
is comparable to that of other immunoglobulins.
Rationale for the Potential Evaluation of RI-002 in RSV
Infected Patients
RSV is a common virus that ordinarily leads to mild, cold-like
symptoms in healthy adults and children. In high-risk groups, such as the PIDD population and the other immune-compromised populations,
RSV can lead to a more serious infection and may even cause death. The polyclonal antibodies which are present in RI-002 are expected
to prevent infections in immune-compromised patients.
We previously conducted a randomized, double-blind, placebo-controlled
Phase II clinical trial to evaluate RI-001, RI-002's predecessor product candidate, in immune-compromised, RSV-infected patients.
This trial was conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial demonstrated
a statistically significant improvement in the change from baseline RSV titers to day 18 in the high dose and low dose treatment
groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The mean fold increase for high dose was 9.24 (95% CI
4.07, 21.02) and the observed mean fold increase for low dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated
patients was 1.42 (95% CI 0.64, 3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced
greater than a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no serious drug-related
adverse events reported during the trial.
From April 2009 through February 2011, RI-001 was also administered
to 15 compassionate use patients where physicians requested access to the product for treating their patients with documented lower
respiratory tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum samples
were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in RSV antibody titers from
baseline. Serum samples were not obtained from two patients that received Palivizumab. All 11 surviving patients received RI-001
within an average of 4.4 days after the onset of the diagnosis of RSV. The drug was well-tolerated in all 15 patients and there
were no reports of serious adverse events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience
and data obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various conferences
the past several years.
Based on these results, we intend to evaluate RI-002 for the
treatment of RSV patients following FDA approval, if received, for treatment of PIDD.
Manufacturing and
Supply of
Our Products
In order to produce plasma-derived
immunoglobulin products, raw material plasma is collected from human donors and then manufactured into specialized products. Historically,
plasma for our products and product candidates has been collected from healthy donors at FDA-licensed plasma donation centers.
Source plasma is collected at any one of over 400 FDA-licensed donation centers located throughout the U.S., using a process called
automated plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular components
in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is tested and must be negative for
antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg and Hepatitis C virus ("HCV"), using FDA-licensed
serological test procedures.
After receipt of the source
plasma, the frozen plasma is thawed and pooled and goes through a process called "fractionation." This process is referred
to as the Cohn method or cold ethanol method of fractionation. During cold ethanol fractionation, classes of proteins are precipitated
and removed by centrifugation or filtration. The fractionation process includes the following steps; precipitation and absorption,
depth filtration, centrifugation and chromatography. Because of the human origin of the raw material and the thousands of donations
required in the fractionation process, the major risk associated to plasma products is the transmission of blood-borne infectious
pathogens. These purification processes have the potential to reduce the viral load. The manufacturing process also utilizes a
multistep viral removal/inactivation system, which further increases the safety of the products. The following manufacturing processes
have been validated for their capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment, and nanofiltration. Incorporation of these processes in the manufacturing process ensures that the Company's products
comply with the requirements of the FDA and are safe and efficacious.
3
Sales and Commercialization
of
Our Products
Historically, Nabi-HB
has been sold through independent distributors, drug wholesalers acting as sales agents, specialty pharmacies and other alternate
site providers. In the U.S., third-party drug wholesalers ship a significant portion of Nabi-HB through their distribution centers.
These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods
include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing
systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising.
While we are working towards remediating the Warning Letter
and other CMC and GMP inspection deficiencies and eventually refiling our BLA resubmission for RI-002, we expect to continue our
commercialization efforts for our approved products and plan to bolster these initiatives by hiring a small, specialty sales force
to market Nabi-HB, Bivigam upon its relaunch and, upon approval by the FDA, RI-002 to hospitals, physician offices/clinics, and
other specialty treatment organizations. We also anticipate staffing our company with additional personnel for patient support,
medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. If and when we receive FDA approval, we may also use a network of national
distributors to assist with order fulfillment for RI-002 for use by healthcare professionals and hospitals.
Pharmaceutical Pricing
and Reimbursement of
Our Products
All sales of Nabi-HB and
Bivigam in the U.S. depend in part upon the availability of reimbursement from third-party payers. Third-party payers include government
health programs, managed care providers, private health insurers and other organizations. Nabi-HB and Bivigam are reimbursed or
purchased under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health Service program
and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a joint state and federal government
health plan that provides covered outpatient prescription drugs for low-income individuals. Under Medicaid, drug manufacturers
pay rebates to the states based on utilization data provided by the states.
Plasma Collection Facilities
Our wholly-owned subsidiary, ADMA Bio Centers Georgia, Inc.
("ADMA BioCenters"), operates FDA-licensed, GHA, and Korean Ministry of Food and Drug Safety ("KMFDS") certified
source plasma collection facilities located in the U.S., which provide us with a portion of our blood plasma for the manufacture
of our products and product candidates. A typical plasma collection center, such as those operated by ADMA BioCenters, can collect
approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices depending upon the type
of plasma, quantity of purchase, and market conditions at the time of sale. Plasma collected from ADMA BioCenters' facilities that
is not used to manufacture our products or product candidates is sold to third-party customers in the U.S., and other locations
where we are approved globally under supply agreements or in the open "spot" market.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.
Leadership
The founders of ADMA have, combined, greater than 60 years of
experience marketing and distributing blood plasma products and devices. With our executive team, members of the Board and our
commercial team, we collectively possess over 200 years of deep medical, technical, development and commercial experience in the
biologics and pharmaceutical industry.
Our Strategy
Our goal is to be a leader in developing, manufacturing and
commercializing specialized, targeted, plasma-derived therapeutics that are intended to extend and enhance the lives of individuals
who are naturally or medically immune-compromised. The key elements of our strategy for achieving this goal are as follows:
·
Remediate the outstanding compliance deficiencies identified by the FDA in the CRL and Warning
    Letter at the Boca Facility
. Following the completion of the Biotest Transaction, we now have control over the regulatory,
    quality, general operations and drug substance manufacturing process at the Boca Facility. Our highest priority is to remediate
    the outstanding compliance issues that were identified by the FDA at the Boca Facility while owned and operated by Biotest.
    We have engaged a leading consulting firm with extensive experience in remediating compliance and inspection issues related
    to quality management systems that manages a robust team of subject matter experts in plasma derived products and biologic
    drugs to assist us in addressing all identified CMC and current Good Manufacturing Practices ("cGMP") issues and
    deficiencies. We expect to be inspection-ready by the end of 2017 and subsequently expect to have the FDA inspection classification
    relative to the Warning Letter downgraded after the next inspection by the FDA.
4
·
Increase
marketing efforts around Nabi-HB and relaunch Bivigam.
We plan to increase our marketing efforts and attend relevant medical
conferences throughout the remainder of 2017 and 2018, raising awareness of the risks associated with Hepatitis B and the benefits
and efficacy of Nabi-HB. Similarly, we plan to relaunch Bivigam following the submission and review by the FDA of a Prior Approval
Supplement ("PAS"), which will detail our optimized Bivigam manufacturing process.
·
Obtain
FDA approval of RI-002 as a treatment for PIDD
. In the third quarter of 2015, the FDA accepted for review our BLA for
RI-002 for the treatment of PIDD. In July 2016, the FDA issued the CRL. The CRL did not cite any concerns with the clinical safety
or efficacy data for RI-002 submitted in our BLA, nor did the FDA request any additional clinical studies be completed prior to
FDA approval of RI-002. In connection with our remediation efforts at the Boca Facility, we anticipate that we will be in a position
to refile our BLA for RI-002 in mid-2018.
·
Commercialize
RI-002 as a treatment for PIDD
. We plan to enhance our recruiting initiatives and expand our existing specialty commercial
sales force to market RI-002 to hospitals, physician offices/clinics, and other specialty treatment and infusion center organizations.
We also anticipate staffing our company with additional personnel for patient support, medical affairs, quality assurance, regulatory
affairs, scientific affairs, third-party reimbursement, inventory and logistics, human resources, and financial and operational
management. We may also use a network of national distributors to fulfill orders for RI-002.
·
Expand
RI-002's FDA-approved uses
. If RI-002 is approved by the FDA as a treatment for PIDD, we plan to evaluate the clinical
and regulatory paths to grow the RI-002 franchise through expanded FDA-approved uses. We believe that there may be patient populations
beyond PIDD that would derive clinical benefit from RI-002, some of which may be eligible for orphan status. We plan to leverage
our previously conducted randomized, double-blind, placebo-controlled Phase II clinical trial evaluating RI-001, RI-002's
predecessor product candidate, in immune-compromised, RSV-infected patients to explore RI-002 for the treatment of RSV.
·
Expand
our pipeline with additional plasma-derived therapeutics
. Our core competency is in the development, manufacturing, testing
and commercialization of plasma-derived therapeutics. We believe there are a number of under-addressed medical conditions for
which plasma-derived therapeutics may be beneficial. Utilizing our intellectual property patents, which include our proprietary
testing assay and other standardization methods and technologies, we have identified potential new product candidates that we
may advance into preclinical activities in the near term.
·
Develop
and expand ADMA BioCenters
. In order to maintain partial control of our raw material supply as well as generate revenues
through additional sources, we operate ADMA BioCenters, a subsidiary that manages plasma collection facilities in the U.S. These
facilities hold FDA licenses, along with GHA and KMFDS certifications. Under the FDA licenses, ADMA BioCenters may collect normal
source plasma and high-titer RSV plasma, with a portion of the plasma being sold to third-party buyers. We also plan to grow through
the creation and licensing of additional ADMA BioCenters facilities in various regions of the U.S., including the recent construction
of our third facility for which we expect to file our BLA with the FDA by the end of 2017. Additional ADMA BioCenters may allow
us to cost-effectively secure additional plasma for our product manufacturing, and potentially increase revenues through the collection
and sale of normal source plasma and other hyperimmune plasma to third parties.
Risk Factors
Investing in our Common Stock involves a significant degree of risk. See "Risk Factors" beginning on page 9 of this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Common Stock. These risks include among others:
·
To
date, we have generated limited product revenues, we have a history of losses and will need to raise additional capital to operate
our business, which may not be available on favorable terms, if at all.
5
·
Failure
to timely and effectively remediate the outstanding Warning Letter and other inspection issues and deficiencies at the Boca Facility
will have a material adverse effect on our business.
·
We
may not realize the strategic and financial benefits currently anticipated from the Biotest Transaction.
·
We
may not be successful in integrating the BTBU into our business.
·
By
completing the Biotest Transaction, we agreed to transfer assets that have historically generated substantially all of our revenue.
·
Historically,
a single customer has accounted for a significant amount of our total revenue and, together with a second customer, represented
90% of our total revenue for the six months ended June 30, 2017, and, therefore, the loss of such single customer could have a
material adverse effect from this division on our business, results of operations and financial condition.
·
Our
credit agreement with Marathon Healthcare Finance Fund is subject to acceleration in specified circumstances which may result
in Marathon taking possession and disposing of any collateral.
·
Business
interruptions could adversely affect our business.
·
The
new biosimilar pathway established as part of the healthcare reform may make it easier for competitors to market biosimilar products.
Corporate Information
ADMA Biologics, Inc. was founded on June
24, 2004 as a New Jersey corporation and re-incorporated in Delaware on July 16, 2007. We operate through our wholly-owned subsidiaries
ADMA Plasma Biologics, ADMA BioManufacturing and ADMA BioCenters. ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of BTBU. ADMA BioCenters is the Company's source plasma collection business which operates in the U.S. Each
operational ADMA BioCenter, once approved, will have a license with the FDA and may obtain additional certifications from other
regulatory agencies such as the GHA and the KMFDS. ADMA BioCenters supplies ADMA with a portion of its raw material plasma for
the manufacture of its products and product candidates.
We maintain our headquarters at 465
State Route 17, Ramsey, New Jersey 07446. Our telephone number is (201) 478-5552. Our Florida campus is located at 5800 Park
of Commerce Boulevard, Northwest, Boca Raton, Florida 33487. The Florida telephone number is (561) 989-5800. Our company
maintains its website at www.admabiologics.com. Information contained in, or accessible through any of our websites, does not
constitute a part of this prospectus or any accompanying prospectus supplement or related free writing prospectus.
6
The
Offering
The summary below describes some of the terms of the Offering. For a more complete
    description of our Common Stock, see "Description of Securities."
Issuer
ADMA Biologics, Inc.
Common Stock offered
shares of our Common Stock (the "Offering").
Price per share
$       .
Over-allotment option
We have granted the Underwriters a 30-day option to purchase up to an additional           shares of our Common Stock.
Common stock outstanding before the Offering
As of October 11, 2017,  there were 17,202,244 shares of our voting common stock, par value $0.0001 per share ("Common Stock") outstanding, and 8,591,160 shares of our non-voting common stock, par value $0.0001 per share ("Non-Voting Common Stock"), outstanding.
Common stock outstanding after the Offering
shares of our common stock (including Common Stock and Non-Voting Common Stock) will be outstanding after the Offering.
Use of proceeds
We expect to use the proceeds received from the Offering for (i) the purchase of raw material inventory and the ramp-up
    of our manufacturing capabilities, (ii) continued remediation of the issues identified in the CRL and the Warning Letter,
    (iii) capital expenditures for the Boca Facility, (iv) product launch and medical education campaigns, (v) the build-out of
    our third ADMA BioCenters plasma collection facility, (vi) research and development activities for our plasma collection
    programs and specialty plasma products, and (vii) working capital needs and general corporate purposes.  The
    proceeds received from the Offering are also expected to enable us, by June 30, 2018, to: (a) successfully complete our
    internal quality management system overhaul, (b) obtain approval, through a PAS from the FDA, for an optimized manufacturing
    process for Bivigam, (c) downgrade the FDA inspection classification relative to the Warning Letter, (d) obtain marketing
    clearance for the relaunch of Bivigam, and (e) refile our BLA for RI-002. See the section entitled "Use of
    Proceeds" for additional information.
Risk factors
See "Risk Factors" beginning on page 9 of this prospectus for a discussion of factors you should consider carefully when making an investment decision.
Nasdaq Capital Market symbol
"ADMA."
Biotest AG and BPC have contractually committed
to purchase up to an aggregate amount of $12.5 million of shares of Common Stock in this Offering, on a pro-rata basis, at the
public offering price. In addition, certain of our other existing stockholders have also indicated an interest in purchasing shares
of Common Stock in this Offering at the public offering price. Not all of these indications of interests are binding agreements
or commitments to purchase, and thus certain parties may elect not to purchase shares of Common Stock in this Offering. Raymond
James & Associates, Inc. will receive an underwriting discount and commission of 4.0% on the sale of shares of Common Stock
to these existing stockholders.
The number of shares of our Common Stock and Non-Voting Common
Stock to be outstanding after this Offering is based upon 17,202,244 shares of our Common Stock outstanding and 8,591,160 shares
of our Non-Voting Common Stock outstanding, in each case as of September 30, 2017, and does not include:
·
3,282,792
shares of our Common Stock issuable upon the exercise of outstanding options to purchase shares of our Common Stock as of September
30, 2017, with a weighted-average exercise price of $5.59 per share;
7
·
647,896
shares of our Common Stock reserved for future issuance under our equity compensation plans, consisting of (i) 20,439 shares of
Common Stock reserved for future issuance under the Amended and Restated ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation
Plan, and (ii) 627,457 shares of Common Stock reserved for future issuance under the 2007 Employee Stock Option Plan, as of September
30, 2017; and
·
188,859
shares of our Common Stock issuable upon the exercise of outstanding warrants to purchase shares of our Common Stock as of September
30, 2017, with a weighted-average exercise price of $7.76
per share.
Unless otherwise indicated, all numbers in this prospectus,
including information related to the number of shares of Common Stock outstanding immediately after completion of the Offering,
assume the underwriters do not exercise their option to purchase additional shares of our Common Stock.
8
Risk
Factors
Described below are various risks and uncertainties
that may affect our business. These risks and uncertainties are not the only ones we face. You should recognize that other
significant risks and uncertainties may arise in the future, which we cannot foresee at this time. Also, the risks that we
now foresee might affect us to a greater or different degree than expected. Certain risks and uncertainties, including ones
that we currently deem immaterial or that are similar to those faced by other companies in our industry or business in
general, may also affect our business. If any of the risks described below actually occur, our business, financial condition
or results of operations could be materially and adversely affected. You should carefully consider the following risk factors
and the section entitled "Special Note Regarding Forward-Looking Statements" before you decide to invest in our
securities.
Risks Relating to our Business
To date, we have generated limited product revenues, have
a history of losses and will need to raise additional capital to operate our business, which may not be available on favorable
terms, if at all.
To date, we have generated nearly all of our revenues from the
sale of plasma by our plasma collections facilities. Following completion of the Biotest Transaction, we began generating revenues
from our sale of Nabi-HB. Unless and until we receive approval from the FDA and other regulatory authorities for our RI-002 product
candidate and other products and product candidates in our pipeline, we do not expect to sell and generate revenue from the commercialization
of RI-002 and other products and product candidates in our pipeline, and we will be required to raise additional funds through
the sale of our equity and/or debt securities in order to establish a commercial salesforce, develop our commercial infrastructure
and recognize any significant revenues.
Our long-term liquidity will depend upon our ability to raise
additional capital, fund our research and development and commercial programs, establish and build out a commercial sales force
and commercial infrastructure and meet our ongoing obligations. If we are unable to successfully raise additional capital by the
end of the first quarter of 2018, we will likely not have sufficient cash flow and liquidity to fund our business operations as
we currently operate, forcing us to potentially curtail our activities and significantly reduce or cease operations. Even if we
are able to raise additional capital, such financings may only be available on unattractive terms, resulting in significant dilution
of stockholders' interests and, in such event, the value and potential future market price of our Common Stock may decline. In
addition, if we raise additional funds through license arrangements or through the disposition of any of our assets, it may be
necessary to relinquish potentially valuable rights to our product candidates or assets or grant licenses on terms that are not
favorable to us.
Based upon our projected revenue and expenditures for 2017 and
2018, including regulatory and consulting fees for the remediation of the Warning Letter and ongoing discussions with the FDA,
continuing implementation of our commercialization and expansion activities and certain other assumptions, we currently believe
that our cash, cash equivalents, projected revenue and accounts receivable, along with the proceeds from this Offering, which includes
the equity commitment from Biotest, will be sufficient to fund our operations, as currently conducted, into the second half of
2018. In order to have sufficient cash to fund our operations thereafter and to continue as a going concern, we will need to raise
additional equity or debt financing during the second half of 2018. This timeframe may change based upon how quickly we are able
to execute on our quality management systems' remediation plans for the ADMA BioManufacturing operations, commercial manufacturing
ramp-up activities and the various financing options we are exploring. These estimates may change based upon whether or when the
FDA approves RI-002 or if any of our other assumptions change. We currently do not have arrangements to obtain additional financing.
Any such financing could be difficult to obtain or only available on unattractive terms and could result in significant dilution
to stockholders. Failure to secure necessary financing in a timely manner and on favorable terms could have a material adverse
effect on our business plan and financial performance and could delay, discontinue or prevent product development, clinical trial
or commercialization activities, or the approval of any of our potential products. In addition, we could be forced to reduce or
forgo sales and marketing efforts and forgo attractive business opportunities.
Failure to timely and effectively remediate the outstanding
Warning Letter and other inspection issues and deficiencies at the Boca Facility will have a material adverse effect on our business.
Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In response to our BLA submission in 2015, in July 2016 the FDA issued the CRL. The CRL did
not specify or request the need for any addition clinical trials or data; however, the CRL reaffirmed the issues set forth in the
Warning Letter issued to Biotest relating to inspection issues identified at the Boca Facility. The FDA identified in the CRL,
among other things, certain outstanding inspection issues and deficiencies related to CMC and GMP at the Boca Facility and at certain
of our third-party vendors, and requested documentation of corrections for a number of these issues. The FDA indicated in the CRL
that it cannot grant final approval of our BLA until, among other things, these deficiencies are resolved. Following the completion
of the Biotest Transaction, we now have control over the regulatory, quality, general operations and drug substance manufacturing
process at the Boca Facility, and our highest priority is to remediate the outstanding compliance issues at the Boca Facility in
the Warning Letter. We have engaged a leading consulting firm with extensive experience in remediating compliance and inspection
issues related to quality management systems that manages a robust team of subject matter experts in plasma derived products and
biologic drugs to assist us in addressing all identified CMC and cGMP issues and deficiencies. We expect to be inspection-ready
by the end of 2017 and subsequently expect to have the FDA inspection classification relative to the Warning Letter downgraded
after the next inspection by the FDA. However, there can be no assurances that our efforts to remediate the Warning Letter and
other inspection issues and deficiencies at the Boca Facility will be effective or whether the FDA will accept these efforts. Failure
to timely remediate such Warning Letter and other inspection issues and deficiencies and/or receive approval from the FDA, as well
as passing an FDA inspection within this timeline, if at all, will have a material adverse effect on our business, prospects, financial
condition and results of operations.
9
We are currently not profitable and may never become profitable.
We have a history of losses and expect to incur substantial
losses and negative operating cash flow for the foreseeable future, and we may never achieve or maintain profitability. For the
six months ended June 30, 2017 and 2016, we incurred net losses of $15.6 million and $10.6 million, respectively, and from our
inception in 2004 through June 30, 2017, we have incurred an accumulated deficit of $122.5 million. Even if we succeed in developing
and commercializing one or more of our product candidates, we expect to incur substantial losses for the foreseeable future and
may never become profitable. We also expect to continue to incur significant operating and capital expenditures and anticipate
that our operating expenses will increase substantially in the foreseeable future as we:
·
remediate the outstanding compliance deficiencies
identified by the FDA in the CRL and Warning Letter at the Boca Facility;
·
seek regulatory approval(s);
·
initiate commercialization and marketing efforts;
·
implement additional internal systems, controls and
infrastructure;
·
hire additional personnel;
·
expand and build out our plasma center network; and
·
integrate the Biotest Assets into our business.
We also expect to experience negative cash flows for the foreseeable
future as we fund our operating losses and capital expenditures. As a result, we will need to generate significant revenues in
order to achieve and maintain profitability. We may not be able to generate these revenues or achieve profitability in the future.
Our failure to achieve or maintain profitability could negatively impact the value of our securities.
Although our financial statements have been prepared on
a going concern basis, we must raise additional capital during the second half of 2018 to fund our operations in order to continue
as a going concern.
CohnReznick LLP, our independent registered public accounting
firm, has included an explanatory paragraph in their opinion that accompanies our audited consolidated financial statements as
of and for the year ended December 31, 2016, indicating that our current liquidity position raises substantial doubt about our
ability to continue as a going concern. If we are unable to improve our liquidity position we may not be able to continue as a
going concern.  If we are unable to continue as a going concern, we may have to liquidate our assets and may receive less
than the value at which those assets are carried on our financial statements. We may also be forced to make reductions in spending,
including delaying or curtailing our clinical development, trials or commercialization efforts, or seek to extend payment terms
with our vendors and creditors. Our ability to raise or borrow the capital needed to improve our financial condition may be hindered
by a variety of factors, including market conditions and the availability of such financing on acceptable terms, if at all. If
we are unable to obtain sufficient funding, our business, prospects, financial condition and results of operations will be materially
and adversely affected and we may be unable to continue as a going concern. The accompanying consolidated financial statements
do not include any adjustments that might result if we are unable to continue as a going concern and, therefore, be required to
realize our assets and discharge our liabilities other than in the normal course of business which could cause our security holders
to suffer the loss of all or a substantial portion of their investment in our company.
10
We anticipate that our principal sources of liquidity, along
with the proceeds from this Offering, which includes the equity commitment from Biotest, will only be sufficient to fund our activities,
as currently conducted, into the second half of 2018. In order to have sufficient cash to fund our operations thereafter and to
continue as a going concern, we will need to raise additional equity or debt financing during the second half of 2018. This time
frame may change based upon how quickly we are able to execute on our quality management systems' remediation plans for the
ADMA BioManufacturing operations, commercial manufacturing ramp-up activities and the various financing options we are exploring.
In order to have sufficient cash to fund our operations thereafter, we will need to raise additional equity or debt capital, and
we cannot provide any assurance that we will be successful in doing so. If our assumptions underlying our estimated expenses prove
to be wrong, we may have to raise additional capital sooner than the end of the first half of 2018.
We have a limited operating history upon which to base
an investment decision.
We have not demonstrated an ability to perform the functions
necessary for the successful commercialization of RI-002. The successful development and commercialization of any product candidate
will require us or our collaborators to perform a variety of functions, including:
·
undertaking product development and clinical trials;
·
participating in regulatory approval processes;
·
formulating and manufacturing products; and
·
conducting sales and marketing activities once product
approval is received.
Our operations thus far provide a limited basis for you to assess
our ability to commercialize our product candidates and the advisability of investing in our securities.
Business interruptions could adversely affect our business
.
ADMA BioCenters operates FDA-licensed, GLA and KMFDS certified
source plasma collection facilities located in the U.S., which provide us with a portion of our blood plasma for the manufacture
of our products and product candidates. Plasma collected from ADMA BioCenters' facilities that is not used to manufacture our products
and product candidates is sold to third-party customers in the U.S., and other locations where we are approved globally under supply
agreements or in the open "spot" market. Furthermore, we are progressing with the construction of our third plasma collection
facility, and we expect to file our BLA with the FDA and initiate collections for this facility by the end of 2017. Nabi-HB and
Bivigam are manufactured at the Boca Facility, an FDA-licensed facility certified by the GHA. A portion of our revenues are dependent
upon the continued operation of these facilities. Our operations are vulnerable to interruption by fire, weather related events
such as: hurricanes, wind and rain, electric power loss, telecommunications failure, and other acts of God, equipment failure and
breakdown, human error, employee issues and events beyond our control. We do not have detailed disaster recovery plans for our
facilities and we do not have a backup manufacturing facility, other than our other facilities, or contractual arrangements with
any other manufacturers in the event of a casualty to or destruction of any facility or if any facility ceases to be available
to us for any other reason. If we are required to rebuild or relocate any of our facilities, a substantial investment in improvements
and equipment would be necessary. We carry only a limited amount of business interruption insurance, which may not sufficiently
compensate us for losses that may occur.
Our lead pipeline product candidate, RI-002, requires
extensive clinical data analysis and regulatory review and may require additional testing. Clinical trials and data analysis can
be very expensive, time-consuming and difficult to design and implement. If we are unsuccessful in obtaining regulatory approval
for RI-002, or any of our product candidates do not provide positive results, we may be required to delay or abandon development
of such product, which would have a material adverse impact on our business.
Continuing product development requires additional and extensive
clinical testing. Human clinical trials are very expensive and difficult to design and implement, in part because they are subject
to rigorous regulatory requirements. The clinical trial process is also time-consuming. While we have met the primary endpoint
for our pivotal Phase III trial for RI-002, we cannot provide any assurance or certainty regarding when we might receive regulatory
approval for our BLA for RI-002. Furthermore, failure can occur at any stage of the process, and we could encounter problems that
cause us to abandon our BLA or repeat clinical trials. The commencement and completion of clinical trials for any current or future
development product candidate may be delayed by several factors, including:
·
unforeseen safety issues;
·
determination of dosing issues;
11
·
lack of effectiveness during clinical trials;
·
slower than expected rates of patient recruitment;
·
inability to monitor patients adequately during or
after treatment; and
·
inability or unwillingness of medical investigators
to follow our clinical protocols.
In addition, the FDA or an independent institutional review
board may suspend our clinical trials at any time if it appears that we are exposing participants to unacceptable health risks
or if the FDA finds deficiencies in our Investigational New Drug ("IND") submissions or the conduct of these trials.
Therefore, we cannot provide any assurance or predict with certainty the schedule for future clinical trials. In the event we do
not ultimately receive regulatory approval for RI-002, we may be required to terminate development of our only product candidate.
Unless we acquire or develop other product candidates that are saleable, our business will be limited to plasma collection and
sales.
If the results of our clinical trials do not support our
product candidate claims, completing the development of such product candidate may be significantly delayed or we may be forced
to abandon development of such product candidate altogether.
Even though our clinical trials for RI-002 have been completed
as planned, we cannot be certain that their results will support our product candidate claims. Success in preclinical testing and
early clinical trials does not ensure that later clinical trials will be successful, and we cannot be sure that the results of
later clinical trials will replicate the results of prior clinical trials and preclinical testing. The clinical trial process may
fail to demonstrate that our product candidates are safe for humans and effective for indicated uses. This failure would cause
us to abandon a product candidate and may delay development of other product candidates. Any delay in, or termination of, our clinical
trials will delay our ability to commercialize our product candidates and generate product revenues. In addition, our clinical
trials involve a relatively small patient population. Because of the small sample size, the results of these clinical trials may
not be indicative of future results. In addition, certain portions of the clinical trial and product testing for RI-002 were performed
outside of the U.S., and therefore, may not have been performed in accordance with standards normally required by the FDA and other
regulatory agencies.
If we do not obtain the necessary U.S. or worldwide regulatory
approvals to commercialize RI-002, we will not be able to sell RI-002.
If we cannot obtain regulatory approval for RI-002, we will
not be able to generate revenue from this product candidate. As a result, our sources of revenue may continue to be from a product
mix consisting only of plasma collection and sales revenues, revenues generated from sales of our commercial products, revenues
generated from ongoing contract manufacturing for third parties and revenues generated from the sales of manufacturing intermediates.
We cannot assure you that we will receive the approvals necessary to commercialize RI-002 or any other product candidate we may
acquire or develop in the future. In order to obtain FDA approval of RI-002 or any other product candidate requiring FDA approval,
our clinical development must demonstrate that the product candidate is safe for humans and effective for its intended use, and
we must successfully complete an FDA BLA review. Obtaining FDA approval of any other product candidate generally requires significant
research and testing, referred to as preclinical studies, as well as human tests, referred to as clinical trials. Satisfaction
of the FDA's regulatory requirements typically takes many years, depends upon the type, complexity and novelty of the product candidate
and requires substantial resources for research, development and testing. We cannot predict whether our research and clinical approaches
will result in products that the FDA considers safe for humans and effective for indicated uses. The FDA has substantial discretion
in the product approval process and may require us to conduct additional preclinical and clinical testing or to perform post-marketing
studies. The approval process may also be delayed by changes in government regulation, future legislation or administrative action
or changes in FDA policy that occur prior to or during our regulatory review. Delays in obtaining regulatory approvals may:
·
delay commercialization of, and our ability to derive
product revenues from, our product candidate;
·
impose costly procedures on us; and
·
diminish any competitive advantages that we may otherwise
enjoy.
12
Even if we comply with all FDA requests, the FDA may ultimately
reject our BLA. In addition, the FDA could determine that we must test additional subjects and/or require that we conduct further
studies with more subjects. We may never obtain regulatory approval for RI-002, or any other future potential product candidate
or label expansion activity. Failure to obtain FDA approval of any of our product candidates will severely undermine our business
by leaving us without the ability to generate additional accretive revenues. There is no guarantee that we will ever be able to
develop or acquire other product candidates. In foreign jurisdictions, we must receive approval from the appropriate regulatory
authorities before we can commercialize any products or product candidates outside the U.S. Foreign regulatory approval processes
generally include all of the risks associated with the FDA approval procedures described above. We cannot assure you that we will
receive the approvals necessary to commercialize any product candidate for sale outside the U.S.
Even if we receive approval from the FDA to market
RI-002, our ability to market RI-002 for alternative applications could be limited.
The FDA strictly regulates marketing, labeling, advertising
and promotion of prescription drugs. These regulations include standards and restrictions for direct-to-consumer advertising, industry-sponsored
scientific and educational activities, promotional activities involving the Internet and off-label promotion. The FDA generally
does not allow drugs to be promoted for "off-label" uses — that is, uses that are not described
in the product's labeling and that differ from those that were approved by the FDA. Generally, the FDA limits approved uses
to those studied by a company in its clinical trials. In addition to the FDA approval required for new formulations, any new indication
for an approved product also requires FDA approval. We have sought approval from the FDA to market RI-002 for the treatment of
PIDD and, even if approved, we cannot be sure whether we will be able to obtain FDA approval for any desired future indications
for RI-002.
While physicians in the U.S. may choose, and are generally permitted,
to prescribe drugs for uses that are not described in the product's labeling, and for uses that differ from those tested
in clinical studies and approved by the regulatory authorities, our ability to promote our products is narrowly limited to those
indications that are specifically approved by the FDA. "Off-label" uses are common across medical specialties and may
constitute an appropriate treatment for some patients in varied circumstances. Regulatory authorities in the U.S. generally do
not regulate the behavior of physicians in their choice of treatments. Regulatory authorities do, however, restrict communications
by pharmaceutical companies on the subject of off-label use. Although recent court decisions suggest that certain off-label communications
(e.g., truthful and non-misleading speech) may be protected under the First Amendment, the scope of any such protection is unclear,
and there are still significant risks in this area as it is unclear how these court decisions will impact the FDA's enforcement
practices, and there is likely to be substantial disagreement and difference of opinion regarding whether any particular statement
is truthful and not misleading. Moreover, while we intend to promote our products consistent with what we believe to be the approved
indication for our drugs, the FDA may disagree. If the FDA determines that our promotional activities fail to comply with the FDA's
regulations or guidelines, we may be subject to warnings from, or enforcement action by, these authorities. In addition, our failure
to follow FDA rules and guidelines relating to promotion and advertising may cause the FDA to issue warning letters or untitled
letters, bring an enforcement action against us, suspend or withdraw an approved product from the market, require a recall or institute
fines or civil fines, or could result in disgorgement of money, operating restrictions, injunctions or criminal prosecution, any
of which could harm our reputation and our business.
We depend on third-party researchers, developers and vendors
to develop RI-002, and such parties are, to some extent, outside of our control.
We depend on independent investigators and collaborators, such
as universities and medical institutions, contract laboratories, clinical research organizations, contract manufacturers and consultants
to conduct our preclinical, clinical trials, CMC testing and other activities under agreements with us. These collaborators are
not our employees and we cannot control the amount or timing of resources that they devote to our programs. These investigators
may not assign as great a priority to our programs or pursue them as diligently as we would if we were undertaking such programs
ourselves. If outside collaborators fail to devote sufficient time and resources to our product-development programs, or if their
performance is substandard, the approval of our FDA application(s), if any, and our introduction of new products, if any, will
be delayed. These collaborators may also have relationships with other commercial entities, some of whom may compete with us. If
our collaborators assist our competitors at our expense, our competitive position would be harmed. Additionally, any change in
the regulatory compliance status of any of our vendors may impede our ability to receive approval for our product candidates.
Historically a single customer has accounted for a significant
amount of our total revenue and, together with a second customer, represented 90% of our total revenue for the six months ended
June 30, 2017, and, therefore, the loss of such single customer could have a material adverse effect from this division on our
business, results of operations and financial condition.
Historically, a significant amount of our total revenue is attributable
to a single customer, BPC. For the six months ended June 30, 2017, two of our customers, SK and BPC, represented 90% of our total
revenue, with BPC representing 75% of our total revenue and SK representing 15% of our total revenue. Although we expect this concentration
to decrease over the remainder of the year as additional sales of Nabi-HB, revenues from our contract manufacturing services and
sale of intermediate by-products are reflected in our consolidated financial statements, these two customers are still expected
to account for a significant portion of our total revenue.
13
Our relationships with BPC and SK are arm's length commercial
relationships. The loss of either or both of BPC and SK as a customer or a material change in the revenue generated by either or
both of BPC and SK could have a material adverse effect on our business, results of operations and financial condition. Factors
that could influence our relationships with our customers include, among other things:
·
our ability to sell our products at competitive prices;
·
our ability to maintain features and quality standards
for our products sufficient to meet the expectations of our customers; and
·
our ability to produce and deliver a sufficient quantity
of our products in a timely manner to meet our customers' requirements.
Additionally, an adverse change in the financial condition of
either or both of BPC and SK could have a material adverse effect on our business and results of operations.
Issues with product quality could have a material adverse
effect upon our business, subject us to regulatory actions and cause a loss of customer confidence in us or our products.
Our success depends upon the quality of our products. Quality
management plays an essential role in meeting customer requirements, preventing defects, improving our products and services and
assuring the safety and efficacy of our products. Our future success depends on our ability to maintain and continuously improve
our quality management program. A quality or safety issue may result in adverse inspection reports, warning letters, product recalls
or seizures, monetary sanctions, injunctions to halt manufacture and distribution of products, civil or criminal sanctions, costly
litigation, refusal of a government to grant approvals and licenses, restrictions on operations or withdrawal of existing approvals
and licenses. An inability to address a quality or safety issue by us or by a third-party vendor in an effective and timely manner
may also cause negative publicity, a loss of customer confidence in us or our current or future products, which may result in the
loss of sales and difficulty in successfully commercializing our current products and launching new products.
If physicians and patients do not accept and use our current
products or our future product candidates, our ability to generate revenue from these products will be materially impaired.
Even if the FDA approves a product made by ADMA Biologics, physicians
and patients may not accept and use it. Acceptance and use of our products will depend on a number of factors including:
·
perceptions by members of the healthcare community,
including physicians, about the safety and effectiveness of our products;
·
cost-effectiveness of our products relative to competing
products;
·
availability of reimbursement for our products from
government or other healthcare payers; and
·
the effectiveness of marketing and distribution efforts
by us and our licensees and distributors, if any.
The failure of our current and future products to find market
acceptance would harm our business and could require us to seek additional financing or make such financing difficult to obtain
on favorable terms, if at all.
Industry and other market data used in this prospectus
and our other materials, including those undertaken by us or our engaged consultants, may not prove to be representative of current
and future market conditions or future results.
This prospectus and our other materials include statistical
and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third
parties and surveys and studies we commissioned regarding the market potential for our current products as well as RI-002. Although
we believe that such information has been obtained from sources believed to be reliable, neither the sources of such data, nor
we, can guarantee the accuracy or completeness of such information. While we believe these industry publications and third-party
research, surveys and studies are reliable, we have not independently verified such data. With respect to the information from
third-party consultants, the results of this data represent the independent consultants' own methodologies, assumptions,
research, analysis, projections, estimates, composition of respondent pool, presentation of data and adjustments, each of which
may ultimately prove to be incorrect, and cause actual results and market viability to differ materially from those presented in
such report. Readers should not place undue reliance on this information.
14
Our long-term success may depend on our ability to supplement
our existing product portfolio through new product development or the in-license or acquisition of other new products and product
candidates, and if our business development efforts are not successful, our ability to achieve profitability may be adversely impacted.
Our current product development portfolio consists primarily
of RI-002 and label expansion activities for Nabi-HB and Bivigam. We have initiated small scale preclinical activities to potentially
expand our current portfolio through new product development efforts or to in-license or acquire additional products and product
candidates. If we are not successful in developing or acquiring additional products and product candidates, we will have to depend
on our ability to raise capital for, and the successful development and commercialization of, RI-002, as well as the revenue we
may generate from the sale of Nabi-HB, Bivigam, contract manufacturing, and intermediates and plasma attributable to the operations
of ADMA BioCenters, to support our operations.
We may not realize the strategic and financial benefits
currently anticipated from the Biotest Transaction.
We may not realize all of the strategic and financial benefits
currently anticipated from the Biotest Transaction. For example, we may not realize the anticipated benefits of acquiring control
of all aspects of RI-002 drug manufacturing, regulatory affairs and business operations. In addition, we may not be able to resolve
the outstanding issues at the Boca Facility that resulted in the Warning Letter. As part of the remediation of the Warning Letter,
in December 2016, BTBU temporarily suspended the production of Bivigam in order to focus on the completion of planned improvements
to the manufacturing process, and it is uncertain when production of Bivigam will resume. As a result, it was communicated to customers
that Bivigam will not be available for sale or distribution at least through the end of 2017. If we are unable to address the underlying
concerns at the Boca Facility that resulted in the Warning Letter and the CRL in July 2016 that identified deficiencies and inspection
issues related to certain of our third-party contract manufacturers, including BPC, and provide requested documentation of corrections
for a number of these issues, we will not be able to resume the manufacturing of Bivigam or reapply for FDA approval to market
and sell RI-002, which could have a material adverse effect on us. Failure to resolve any outstanding issues or any administrative
actions taken or changes made by the FDA toward our contract manufacturers, vendors or us could impact our ability to receive approval
for RI-002, including the timing thereof, disrupt our business operations and the timing of our commercialization efforts and may
have a material adverse effect on our financial condition and operating results.
In addition, on December 20, 2016, BTBU received notice from
one of its contract fillers stating that the manufacturing services agreement with such contract filler had expired and will need
to be renegotiated prior to April 1, 2017 to avoid any interruption in the services provided under the agreement. The services
provided under this agreement relate to the filling and packaging of Nabi-HB and Bivigam. This vendor is the only provider of this
service currently approved by the FDA to fill and package these products. In the event that we or BTBU are required to negotiate
a new agreement, the terms of such new agreement may not be as favorable to us as the current agreement and there can be no assurances
that a new agreement will be reached, which, in each case, could have a material adverse effect on our Company.
Through the Biotest Transaction, we assumed a contract manufacturing
agreement related to the fractionation of plasma provided by one of our third-party customers that includes certain minimum production
requirements. If we are unable to meet our contractual obligations under this agreement, we may be liable for the payment of liquidated
damages. If we are unable to resolve these issues, such failure could have a material adverse effect on us.
There is also uncertainty as to whether the combined business
will be able to operate at a profitable level in the future given the relatively small size of the Biotest Assets and the competitive
environment in which it operates. Furthermore, there is no assurance and no definitive timeline as to when or if the Warning Letter
will be resolved by the FDA, or when the FDA will inspect our operations. These factors could have a material adverse effect on
us.
We may not be successful in integrating the Biotest Assets
into our business.
The Biotest Transaction involves the integration of two businesses
that previously have operated independently with principal offices in two distinct locations. We are expending significant management
attention and resources to integrate the two companies following completion of the Biotest Transaction. The failure to integrate
successfully and to manage successfully the challenges presented by the integration process may result in the combined company's
failure to achieve some or all of the anticipated benefits of the Biotest Transaction.
Potential difficulties that may be encountered in the integration
process include, but are not limited to, the following:
·
using our cash and other assets efficiently to develop the business
on a post-Biotest Transaction basis;
15
·
appropriately managing the liabilities of our Company on a post-Biotest
Transaction basis;
·
potential unknown or currently unquantifiable liabilities associated
with the Biotest Transaction and the operations of our Company on a post-Biotest Transaction basis;
·
potential unknown and unforeseen expenses, delays or regulatory conditions
associated with the Biotest Transaction; and
·
performance shortfalls in one or both of the businesses as a result
of the diversion of the applicable management's attention caused by completing the Biotest Transaction and integrating the
business.
Delays in the integration process could adversely affect the
combined company's business, financial results, financial condition and stock price following the Biotest Transaction. Even
if the combined company were able to integrate the business operations successfully, there can be no assurance that this integration
will result in the realization of the full benefits of synergies, innovation and operational efficiencies that may be possible
from this integration or that these benefits will be achieved within a reasonable period of time.
By completing the Biotest Transaction, we agreed to transfer
assets that have historically generated substantially all of our revenue.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer to BPC ownership of the two plasma collection facilities in the U.S. and certain related assets and
liabilities. These plasma collection facilities to be transferred have historically been the source of substantially all of our
revenue. Although we are currently constructing a new plasma collection facility, we cannot guarantee we will generate similar
revenues as historically reported from the plasma collection facilities we will transfer to BPC on January 1, 2019.
The Biotest Transaction exposes us to liabilities, a release
of claims and competition that could have a material adverse effect on our business, financial condition, results of operations
and stock price.
As part of the consideration for the Biotest Transaction, we
agreed to assume certain liabilities of BPC related to BTBU. Because we agreed to assume liabilities related to the Biotest Assets,
we are exposed to liabilities that are not within our control and we cannot predict the extent to which these liabilities may arise
in the future. Any liabilities that may arise could have a material adverse effect on our business, financial condition, results
of operations and stock price.
The Master Purchase and Sale Agreement, dated as of January
21, 2017 (as amended, restated, supplemented or otherwise modified from time to time, the "Purchase Agreement"), with
BPC, and for certain limited purposes set forth in the Purchase Agreement, Biotest AG, BPC's parent corporation, and Biotest
US Corporation, a Delaware corporation and subsidiary of Biotest AG (together with Biotest AG, the "Biotest Guarantors"),
contains indemnification undertakings by the parties thereto for certain losses, including, among other things, indemnification
for any losses arising from breaches of its representations, warranties, covenants and agreements in the Purchase Agreement. In
addition, we have agreed to indemnify BPC for any assumed liability, and BPC has agreed to indemnify us for any excluded asset
or excluded liability. The parties' representations and warranties (other than fundamental representations and warranties) survive
for 15 months following the closing of the Biotest Transaction, fundamental representations survive indefinitely, tax representations
survive until the date that is 30 days following the applicable statute of limitations, covenants to be performed on or prior to
the closing of the Biotest Transaction survive for 15 months following the closing of the Biotest Transaction, and post-closing
covenants survive in accordance with their terms or if no term is specified, indefinitely. Each party's indemnification obligations
with respect to (a) its representations and warranties (other than its fundamental representations) are subject to a $25,000 mini-basket
and $750,000 true deductible and (b) its representations, warranties and pre-closing covenants are subject to a $25,000,000 cap.
Significant indemnification claims by BPC or its affiliates or a breach by BPC or its affiliates of any indemnity obligations owed
to us under the Purchase Agreement could have a material adverse effect on our business, financial condition, results of operations
and stock price.
As part of the consideration for the Biotest Transaction, the
parties also agreed to a mutual release, pursuant to which the parties agreed not to bring any suit, action or claim for any breach
or default under the existing manufacturing and supply agreement or master services agreement prior to the closing of the Biotest
Transaction. This release remains effective from and after the closing of the Biotest Transaction. Without this release, we would
have otherwise been permitted to bring a claim against BPC related to the Warning Letter that could have possibly entitled us to
remedies in the event that we are unable to resolve the Warning Letter. The inability to seek these remedies could have a material
adverse effect on our business, financial condition, results of operations and stock price.
In addition, while the Purchase Agreement contains certain non-compete
clauses, such clauses do not prohibit either the Biotest Guarantors or their other affiliates from directly or indirectly (other
than through BPC) competing with BTBU after the closing of the Biotest Transaction. Such competition could result in the loss of
existing or new customers, price reductions, reduced operating margins and loss of market share, which could have a material adverse
effect on our business, financial condition, results of operations and stock price.
16
If our due diligence investigation for the Biotest Transaction
was inadequate and/or the representations, warranties and indemnification given to us by BPC was inadequate, then it could result
in a material adverse effect on our business.
Even though we believe that we conducted a reasonable and customary
due diligence investigation of BTBU and we received market representations, warranties and indemnities from Biotest and BPC, we
cannot be sure that our due diligence investigation uncovered all material or non-material issues that may be present, or if we
did not receive access or the ability to diligence certain information, as well as appropriate representations and or warranties,
or that it would be possible to uncover all material issues through customary due diligence, or that issues outside of our control
will not later arise or that all material issues which are or could be discovered are not otherwise covered by the representations
and warranties of Biotest and BPC and therefore indemnifiable. If we failed to identify any important issues, or if it were not
possible to uncover all material issues or if we did not receive representations and warranties and indemnification concerning
any or all material or non-material issues, it could result in a material adverse effect on our business, financial condition,
results of operations and stock price.
Our credit agreement (the "Credit Agreement")
with Marathon Healthcare Finance Fund, L.P. ("Marathon") is subject to acceleration in specified circumstances, which
may result in Marathon taking possession and disposing of any collateral.
On October 10, 2017, we entered into the Credit Agreement with
Marathon which provides for a senior secured term loan facility in an aggregate amount of up to $40.0 million (collectively, the
"Credit Facility"), comprised of (i) a term loan in the principal amount of $30.0 million (the "Tranche One
Loan"), (ii) an additional term loan to be made in the maximum principal amount not to exceed $10.0 million (the "Tranche
Two Loan;" and, together with the Tranche One Loan, the "Loans"), which Tranche Two Loan availability is subject
to the satisfaction of certain conditions. We used approximately $17.0 million of the Tranche One Loan to retire and pay in full
our existing credit facility with Oxford Finance LLC ("Oxford") and the obligations thereunder in accordance with
the terms of the Loan and Security Agreement with Oxford, dated as of June 19, 2015, by and among Oxford, the other lenders party
thereto, us, ADMA Plasma Biologics and ADMA BioCenters, as amended on May 13, 2016 (the "LSA"). The Loans each have
a maturity date of April 10, 2022 (the "Maturity Date"), subject to acceleration pursuant to the Credit Agreement,
including upon an Event of Default (as defined in the Credit Agreement). Borrowings under the Credit Agreement bear interest at
a rate per annum equal to LIBOR plus 9.50% with a 1% LIBOR floor; provided, however, that in the event that we achieve sales of
not less than $61.7 million for the 2018 calendar year and the Tranche Two Loan has been funded, then the borrowings under the
Credit Agreement will bear interest at a rate of LIBOR plus 7.75% with a 1% LIBOR floor. During an Event of Default under the
Credit Agreement, the outstanding amount of indebtedness under the Credit Agreement will bear interest at a rate per annum equal
to the interest rate then applicable to the borrowings under the Credit Agreement plus 5% per annum. The Loans are secured by
substantially all of our assets, including our intellectual property. Events of Default include, among others, non-payment of
principal, interest, or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency
events, material judgments, cross-defaults to material contracts and events constituting a change of control. The occurrence of
an Event of Default could result in, among other things, the termination of commitments under the Credit Facility, the declaration
that all outstanding Loans are immediately due and payable in whole or in part, and Marathon taking immediate possession of, and
selling, any collateral securing the Loans.
Developments by competitors may render our products or
technologies obsolete or non-competitive.
The biotechnology and pharmaceutical industries are intensely
competitive and subject to rapid and significant technological change. Our current products, RI-002 (if we obtain regulatory approval)
and any future product we may develop will have to compete with other marketed therapies. In addition, other companies may pursue
the development of pharmaceuticals that target the same diseases and conditions that we are targeting. We face competition from
pharmaceutical and biotechnology companies in the U.S. and abroad. In addition, companies pursuing different but related fields
represent substantial competition. Many of these organizations competing with us have substantially greater financial resources,
larger research and development staffs and facilities, longer product development history in obtaining regulatory approvals and
greater manufacturing and marketing capabilities than we do. These organizations also compete with us to attract qualified personnel
and parties for acquisitions, joint ventures or other collaborations.
If we are unable to protect our patents, trade secrets
or other proprietary rights, if our patents are challenged or if our provisional patent applications do not get approved, our competitiveness
and business prospects may be materially damaged.
As we move forward in clinical development we are also uncovering
novel aspects of our product and are drafting patents to cover our inventions.  We rely on a combination of patent rights,
trade secrets and nondisclosure and non-competition agreements to protect our proprietary intellectual property, and we will continue
to do so. There can be no assurance that our patent, trade secret policies and practices or other agreements will adequately protect
our intellectual property. Our issued patents may be challenged, found to be over-broad or otherwise invalidated in subsequent
proceedings before courts or the USPTO. Even if enforceable, we cannot provide any assurances that they will provide significant
protection from competition. The processes, systems, and/or security measures we use to preserve the integrity and confidentiality
of our data and trade secrets may be breached, and we may not have adequate remedies as a result of any such breaches. In addition,
our trade secrets may otherwise become known or be independently discovered by competitors. There can be no assurance that the
confidentiality, nondisclosure and non-competition agreements with employees, consultants and other parties with access to our
proprietary information to protect our trade secrets, proprietary technology, processes and other proprietary rights, or any other
security measures relating to such trade secrets, proprietary technology, processes and proprietary rights, will be adequate, will
not be breached, that we will have adequate remedies for any breach, that others will not independently develop substantially equivalent
proprietary information or that third parties will not otherwise gain access to our trade secrets or proprietary knowledge. To
the extent that our consultants, contractors or collaborators use intellectual property owned by others in their work for us, disputes
may arise as to the rights in related or resulting know-how and inventions.
17
We could lose market exclusivity of a product earlier
than expected.
In the pharmaceutical and biotechnology industries, the majority
of an innovative product's commercial value is realized during its market exclusivity period. In the U.S. and in some other
countries, when market exclusivity expires and generic versions are approved and marketed or when biosimilars are introduced (even
if only for a competing product), there are usually very substantial and rapid declines in a product's revenues.
Market exclusivity for our products is based upon patent rights
and certain regulatory forms of exclusivity. The scope of our patent rights may vary from country to country and may also be dependent
on the availability of meaningful legal remedies in a country. The failure to obtain patent and other intellectual property rights,
or limitations on the use or loss of such rights, could be material to us. In some countries, basic patent protections for our
products may not exist because certain countries did not historically offer the right to obtain specific types of patents and/or
we (or our licensors) did not file in those markets. In addition, the patent environment can be unpredictable and the validity
and enforceability of patents cannot be predicted with certainty. Absent relevant patent protection for a product, once the data
exclusivity period expires, generic versions can be approved and marketed.
Patent rights covering RI-002 may become subject to patent litigation.
In some cases, manufacturers may seek regulatory approval by submitting their own clinical trial data to obtain marketing approval
or choose to launch a generic product "at risk" before the expiration of our patent rights/or before the final resolution
of related patent litigation. Enforcement of claims in patent litigation can be very costly and no assurance can be given
that we will prevail. There is no assurance that RI-002, or any other of our products for which we are issued a patent, will
enjoy market exclusivity for the full time period of the respective patent.
Third parties could obtain patents that may require us
to negotiate licenses to conduct our business, and there can be no assurance that the required licenses would be available on reasonable
terms or at all.
We may not be able to operate our business without infringing
third-party patents. Numerous U.S. and foreign patents and pending patent applications owned by third parties exist in fields that
relate to the development and commercialization of immune globulins. In addition, many companies have employed intellectual property
litigation as a way to gain a competitive advantage. It is possible that infringement claims may occur as the number of products
and competitors in our market increases. In addition, to the extent that we gain greater visibility and market exposure as a public
company, we face a greater risk of being the subject of intellectual property infringement claims. We cannot be certain that the
conduct of our business does not and will not infringe intellectual property or other proprietary rights of others in the U.S.
and in foreign jurisdictions. If our products, methods, processes and other technologies are found to infringe third-party patent
rights, we could be prohibited from manufacturing and commercializing the infringing technology, process or product unless we obtain
a license under the applicable third-party patent and pay royalties or are able to design around such patent. We may be unable
to obtain a license on terms acceptable to us, or at all, and we may not be able to redesign our products or processes to avoid
infringement. Even if we are able to redesign our products or processes to avoid an infringement claim, our efforts to design around
the patent could require significant time, effort and expense and ultimately may lead to an inferior or more costly product and/or
process. Any claim of infringement by a third party, even those without merit, could cause us to incur substantial costs defending
against the claim and could distract our management from our business. Furthermore, if any such claim is successful, a court could
order us to pay substantial damages, including compensatory damages for any infringement, plus prejudgment interest and could,
in certain circumstances, treble the compensatory damages and award attorney fees. These damages could be substantial and could
harm our reputation, business, financial condition and operating results. A court also could enter orders that temporarily, preliminarily
or permanently prohibit us, our licensees, if any, and our customers from making, using, selling, offering to sell or importing
one or more of our products or practicing our proprietary technologies or processes, or could enter an order mandating that we
undertake certain remedial activities. Any of these events could seriously harm our business, operating results and financial condition.
Continued instability in the credit and financial markets
may negatively impact our business, results of operations and financial condition.
Financial markets in the U.S., Canada, Europe and Asia continue
to experience disruption, including, among other things, significant volatility in security prices, declining valuations of certain
investments, as well as severely diminished liquidity and credit availability. Business activity across a wide range of industries
and regions continues to be greatly reduced and local governments and many businesses are still suffering from the lack of consumer
spending and the lack of liquidity in the credit markets. As a clinical-stage biotechnology company, we rely on third parties for
several important aspects of our business, including contract manufacturing of drug product, plasma collection supplies, transportation
and storage of plasma, and conduct of our clinical trials. These third parties may be unable to satisfy their commitments to us
due to tightening of global credit from time to time, which would adversely affect our business. The continued instability in the
credit and financial market conditions may also negatively impact our ability to access capital and credit markets and our ability
to manage our cash balance. While we are unable to predict the continued duration and severity of the adverse conditions in the
U.S. and other countries, any of the circumstances mentioned above could adversely affect our business, financial condition, operating
results and cash flow or cash position.
18
If we are unable to successfully manage our growth, our
business may be harmed.
Our success will depend on the expansion of our commercial and
manufacturing activities, supply of plasma and overall operations and the effective management of our growth, which will place
a significant strain on our management and on our administrative, operational and financial resources. To manage this growth, we
must expand our facilities, augment our operational, financial and management systems and hire and train additional qualified personnel.
If we are unable to manage our growth effectively, our business could be harmed.
The loss of one or more key members of our management
team could adversely affect our business.
Our performance is substantially dependent on the continued
service and performance of our management team, who have extensive experience and specialized expertise in our business. In particular,
the loss of Adam S. Grossman, our President and Chief Executive Officer, could adversely affect our business and operating results.
We do not have "key person" life insurance policies for any members of our management team. We have employment agreements
with each of our executive officers; however, the existence of an employment agreement does not guarantee retention of members
of our management team and we may not be able to retain those individuals for the duration of or beyond the end of their respective
terms. The loss of services of key personnel, or the inability to attract and retain additional qualified personnel, could result
in delays in development or approval of our product candidates and diversion of management resources. Notwithstanding the foregoing,
in the event Mr. Grossman is terminated for cause or resigns other than for good reason, then the standstill provisions contained
in the Stockholders Agreement, dated as of June 6, 2017, by and between the Company and BPC, which prohibits BPC and its affiliates
collectively from, among other things, acquiring more than (i) 50%, less one share, of the Company's issued and outstanding
shares of capital stock on an as-converted basis, or (ii) 30% of the issued and outstanding shares of Common Stock, will terminate
and be of no further force and effect. Such event could result in Biotest acquiring additional shares of our Common Stock or taking
other actions with the goal of acquiring additional shares of our Common Stock.
If we are unable to hire additional qualified personnel,
our ability to grow our business may be harmed.
We will need to hire additional qualified personnel with expertise
in commercialization, sales, marketing, medical affairs, reimbursement, government regulation, formulation and manufacturing and
finance and accounting. In particular, over the next 12-24 months, we expect to hire several new employees devoted to commercialization,
sales, marketing, medical and scientific affairs, regulatory affairs, quality control, financial, general and operational management.
We compete for qualified individuals with numerous biopharmaceutical companies, universities and other research institutions. Competition
for such individuals is intense, and we cannot assure you that our search for such personnel will be successful. Attracting and
retaining qualified personnel will be critical to our success and any failure to do so successfully may have a material adverse
effect on us.
We currently collect human blood plasma at our ADMA BioCenters
facilities, and if we cannot maintain FDA approval for these facilities we may be adversely affected and may not be able to sell
or use this human blood plasma for future commercial purposes.
We intend to maintain FDA and other governmental and regulatory
approvals of our ADMA BioCenters collection facilities for the collection of human blood plasma. These facilities are subject to
FDA and other governmental and regulatory inspections and extensive regulation, including compliance with current cGMP, FDA and
other government approvals. Failure to comply with applicable governmental regulations or to receive applicable approvals for our
future facilities, including our third facility, may result in enforcement actions, such as adverse inspection reports, warning
letters, product recalls or seizures, monetary sanctions, injunctions to halt manufacture and distribution of products, civil or
criminal sanctions, costly litigation, refusal of regulatory authority approvals and licenses, restrictions on operations or withdrawal
of existing approvals and licenses, any of which may significantly delay or suspend our operations for these locations, potentially
having a materially adverse effect on our ability to manufacture our products or offer for sale plasma collected at the affected
site(s).
We currently manufacture our current marketed products,
pipeline products, and products for third parties in our manufacturing and testing facilities, and if we cannot maintain appropriate
FDA status for these facilities, we may be adversely affected, and may not be able to sell, manufacture or commercialize these
products.
We currently operate under an FDA warning letter, due to operations
identified by the FDA in prior FDA inspections while under Biotest operational control. We have engaged a leading consulting firm
with extensive experience in remediating compliance and inspection issues related to quality management systems and which manages
a robust team of subject matter experts in plasma derived products and biologic drugs to assist us in addressing all identified
CMC and cGMP issues and deficiencies. We expect to be inspection-ready by the end of 2017 and subsequently expect to have the FDA
inspection classification relative to the Warning Letter downgraded after the next inspection by the FDA.
19
If we do not receive FDA approval for additional plasma
collection centers, one of which is currently under construction, before January 1, 2019, then we may be required to seek a waiver
and extension from Biotest for the contractually required transfer of two of our facilities.
We are currently constructing our third plasma center and plan
to leverage our existing plasma center license in order to seek approval for this new facility with the FDA. If we do not receive
FDA approval for this third plasma center on or before January 1, 2019, then we will be required to seek a waiver and extension
from Biotest for our contractual obligation to transfer the two facilities under the Master Purchase Agreement. However, there
can be no assurances that Biotest will waive or extend its rights with respect to such transfer. In the event Biotest refuses to
waive and extend such right, we will be obligated to transfer the two facilities under the Master Purchase Agreement and risk delay
or refusal to issue our future license for the new plasma center by the FDA. Any such delay or refusal to issue the license by
the FDA could have a material adverse effect on our operations.
We may incur substantial liabilities and may be required
to limit commercialization of our products in response to product liability lawsuits.
The testing and marketing of medical products entail an inherent
risk of product liability. If we cannot successfully defend ourselves against product liability claims, we may incur substantial
liabilities or be required to limit commercialization of our products. Our inability to obtain sufficient product liability insurance
at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of pharmaceutical
products we develop, alone or with collaborators.
Many of our business practices are subject to scrutiny
by regulatory authorities, as well as to lawsuits brought by private citizens under federal and state laws. Failure to comply with
applicable law or an adverse decision in lawsuits may result in adverse consequences to us.
The laws governing our conduct in the U.S. are enforceable by
criminal, civil and administrative penalties. Violations of laws such as the Federal Food, Drug, and Cosmetic Act, the Social Security
Act (including the Anti-Kickback Law), the Public Health Service Act and the Federal False Claims Act, and any regulations promulgated
under the authority of the preceding, may result in jail sentences, fines or exclusion from federal and state programs, as may
be determined by Medicare, Medicaid and the Department of Health and Human Services and other regulatory authorities as well as
by the courts. There can be no assurance that our activities will not come under the scrutiny of regulators and other government
authorities or that our practices will not be found to violate applicable laws, rules and regulations or prompt lawsuits by private
citizen "relators" under federal or state false claims laws.
For example, under the Anti-Kickback Law and similar state laws
and regulations, the offer or payment of anything of value for patient referrals, or in return for purchasing, leasing, ordering
or arranging for or recommending the purchase, lease, or ordering of any time or service reimbursable in whole or in part by a
federal health care program is prohibited.  This places constraints on the marketing and promotion of products and on
common business arrangements, such as discounted terms and volume incentives for customers in a position to recommend or choose
products for patients, such as physicians and hospitals, and these practices can result in substantial legal penalties, including,
among others, exclusion from the Medicare and Medicaid programs. Arrangements with referral sources such as purchasers, group purchasing
organizations, physicians and pharmacists must be structured with care to comply with applicable requirements. Also, certain business
practices, such as payments of consulting fees to healthcare providers, sponsorship of educational or research grants, charitable
donations, interactions with healthcare providers that prescribe products for uses not approved by the FDA and financial support
for continuing medical education programs, must be conducted within narrowly prescribed and controlled limits to avoid any possibility
of wrongfully influencing healthcare providers to prescribe or purchase particular products or as a reward for past prescribing.
Under the Patient Protection and Affordable Care Act and the companion Health Care and Education Reconciliation Act, which together
are referred to as the "Healthcare Reform Law", such payments by pharmaceutical manufacturers to U.S. healthcare practitioners
and academic medical centers must be publicly disclosed. A number of states have similar laws in place. Additional and stricter
prohibitions could be implemented by federal and state authorities. Where such practices have been found to be improper incentives
to use such products, government investigations and assessments of penalties against manufacturers have resulted in substantial
damages and fines. Many manufacturers have been required to enter into consent decrees or orders that prescribe allowable corporate
conduct.
20
Failure to satisfy requirements under the Federal Food, Drug,
and Cosmetic Act can also result in penalties, as well as requirements to enter into consent decrees or orders that prescribe allowable
corporate conduct. In addition, while regulatory authorities generally do not regulate physicians' discretion in their choice of
treatments for their patients, they do restrict communications by manufacturers on unapproved uses of approved products or on the
potential safety and efficacy of unapproved products in development. Companies in the U.S., Canada and the European Union cannot
promote approved products for other indications that are not specifically approved by the competent regulatory authorities (e.g.,
FDA in the U.S.), nor can companies promote unapproved products. In limited circumstances, companies may disseminate to physicians
information regarding unapproved uses of approved products or results of studies involving investigational products. If such activities
fail to comply with applicable regulations and guidelines of the various regulatory authorities, we may be subject to warnings
from, or enforcement action by, these authorities. Furthermore, if such activities are prohibited, it may harm demand for our products.
Promotion of unapproved drugs or devices or unapproved indications for a drug or device is a violation of the Federal Food, Drug,
and Cosmetic Act and subjects us to civil and criminal sanctions. Furthermore, sanctions under the Federal False Claims Act have
recently been brought against companies accused of promoting off-label uses of drugs, because such promotion induces the use and
subsequent claims for reimbursement under Medicare and other federal programs. Similar actions for off-label promotion have been
initiated by several states for Medicaid fraud. The Healthcare Reform Law significantly strengthened provisions of the Federal
False Claims Act, the Anti-Kickback Law that applies to Medicare and Medicaid, and other health care fraud provisions, leading
to the possibility of greatly increased qui tam suits by relators for perceived violations. Violations or allegations of violations
of the foregoing restrictions could materially and adversely affect our business.
We are required to report detailed pricing information, net
of included discounts, rebates and other concessions, to the Centers for Medicare & Medicaid Services, or CMS, for the purpose
of calculating national reimbursement levels, certain federal prices and certain federal and state rebate obligations. Inaccurate
or incomplete reporting of pricing information could result in liability under the False Claims Act, the federal Anti-Kickback
Law and various other laws, rules and regulations.
We will need to establish systems for collecting and reporting
this data accurately to CMS and institute a compliance program to assure that the information collected is complete in all respects.
If we report pricing information that is not accurate to the federal government, we could be subject to fines and other sanctions
that could adversely affect our business. If we choose to pursue clinical development and commercialization in the European Union
or otherwise market and sell our products outside of the U.S., we must obtain and maintain regulatory approvals and comply with
regulatory requirements in such jurisdictions. The approval procedures vary among countries in complexity and timing. We may not
obtain approvals from regulatory authorities outside the U.S. on a timely basis, if at all, which would preclude us from commercializing
products in those markets.
In addition, some countries, particularly the countries of the
European Union, regulate the pricing of prescription pharmaceuticals. In these countries, pricing discussions with governmental
authorities can take considerable time after the receipt of marketing approval for a product. To obtain reimbursement or pricing
approval in some countries, we may be required to conduct a clinical trial that compares the cost-effectiveness of their product
candidate to other available therapies. Such trials may be time-consuming and expensive, and may not show an advantage in efficacy
for our products. If reimbursement of our products is unavailable or limited in scope or amount, or if pricing is set at unsatisfactory
levels, in either the U.S. or the European Union, we could be adversely affected.
Also, under the U.S. Foreign Corrupt Practices Act, the U.S.
has increasingly focused on regulating the conduct by U.S. businesses occurring outside of the U.S., generally prohibiting remuneration
to foreign officials for the purpose of obtaining or retaining business. To enhance compliance with applicable health care laws,
and mitigate potential liability in the event of noncompliance, regulatory authorities, such as the U.S. Health and Human Services
Department Office of Inspector General (the "OIG") have recommended the adoption and implementation of a comprehensive
health care compliance program that generally contains the elements of an effective compliance and ethics program described in
Section 8B2.1 of the U.S. Sentencing Commission Guidelines Manual. Increasing numbers of U.S.-based pharmaceutical companies have
such programs. In the future, we may need to adopt healthcare compliance and ethics programs that would incorporate the OIG's recommendations,
and train our applicable employees in such compliance. Such a program may be expensive and may not assure that we will avoid compliance
issues.
The manufacturing processes for plasma based biologics
are complex and involve biological intermediates that are susceptible to contamination.
Plasma is a raw material that is susceptible to damage and contamination
and may contain human pathogens, any of which would render the plasma unsuitable as raw material for further manufacturing. For
instance, improper storage of plasma, by us or third-party suppliers, may require us to destroy some of our raw material. If unsuitable
plasma is not identified and discarded prior to the release of the plasma to the manufacturing process, it may be necessary to
discard intermediate or finished product made from that plasma or to recall any finished product released to the market, resulting
in a charge to cost of product revenue. The manufacture of our plasma products is an extremely complex process of fractionation,
purification, filling and finishing. Our products can become non-releasable or otherwise fail to meet our stringent specifications
or regulatory agencies' specifications through a failure in one or more of these process steps. We may detect instances in which
an unreleased product was produced without adherence to our manufacturing procedures or plasma used in our production process was
not collected or stored in a compliant manner consistent with our cGMP or other regulations. Such an event of noncompliance would
likely result in our determination that the implicated products should not be released or maybe replaced or withdrawn from the
market and therefore should be destroyed. Once manufactured, our plasma-derived products must be handled carefully and kept at
appropriate temperatures. Our failure, or the failure of third parties that supply, ship or distribute our products, to properly
care for our products may require that those products be destroyed. Even if handled properly, biologics may form or contain particulates
or have other issues or problems after storage which may require products to be destroyed or recalled. While we expect to write
off small amounts of work-in-progress in the ordinary course of business due to the complex nature of plasma, our processes and
our products, unanticipated events may lead to write-offs and other costs materially in excess of our expectations and the reserves
we have established for these purposes. Such write-offs and other costs could cause material fluctuations in our profitability.
21
Furthermore, contamination of our products could cause investors,
consumers, or other third parties with whom we conduct business to lose confidence in the reliability of our manufacturing procedures,
which could adversely affect our sales and profits. In addition, faulty or contaminated products that are unknowingly distributed
could result in patient harm, threaten the reputation of our products and expose us to product liability damages and claims from
companies for whom we do contract manufacturing.
Our ability to continue to produce safe and effective
products depends on the safety of our plasma supply and manufacturing processes against transmittable diseases.
Despite overlapping safeguards, including the screening of donors
and other steps to remove or inactivate viruses and other infectious disease causing agents, the risk of transmissible disease
through blood plasma products cannot be entirely eliminated. For example, since plasma-derived therapeutics involves the use and
purification of human plasma, there has been concern raised about the risk of transmitting human immunodeficiency virus ("HIV"),
prions, West Nile virus, H1N1 virus or "swine flu" and other blood-borne pathogens through plasma-derived products. There
are also concerns about the future transmission of H5N1 virus, or "bird flu." In the 1980s, thousands of hemophiliacs
worldwide were infected with HIV through the use of contaminated Factor VIII. Other producers of Factor VIII, though not us, were
defendants in numerous lawsuits resulting from these infections. New infectious diseases emerge in the human population from time
to time. If a new infectious disease has a period during which time the causative agent is present in the bloodstream but symptoms
are not present, it is possible that plasma donations could be contaminated by that infectious agent. Typically, early in an outbreak
of a new disease, tests for the causative agent do not exist. During this early phase, we must rely on screening of donors (e.g.,
for behavioral risk factors or physical symptoms) to reduce the risk of plasma contamination. Screening methods are generally less
sensitive and specific than a direct test as a means of identifying potentially contaminated plasma units. During the early phase
of an outbreak of a new infectious disease, our ability to manufacture safe products would depend on the manufacturing process'
capacity to inactivate or remove the infectious agent. To the extent that a product's manufacturing process is inadequate to inactivate
or remove an infectious agent, our ability to manufacture and distribute that product would be impaired. If a new infectious disease
were to emerge in the human population, the regulatory and public health authorities could impose precautions to limit the transmission
of the disease that would impair our ability to procure plasma, manufacture our products or both. Such precautionary measures could
be taken before there is conclusive medical or scientific evidence that a disease poses a risk for plasma-derived products. In
recent years, new testing and viral inactivation methods have been developed that more effectively detect and inactivate infectious
viruses in collected plasma. There can be no assurance, however, that such new testing and inactivation methods will adequately
screen for, and inactivate, infectious agents in the plasma used in the production of our products.
We could become supply-constrained and our financial performance
would suffer if we cannot obtain adequate quantities of FDA-approved source plasma with proper specifications.
In order for plasma to be used in the manufacturing of our products,
the individual centers at which the plasma is collected must be licensed by the FDA and approved by the regulatory authorities
of any country in which we may wish to commercialize our products. When we open a new plasma center, and on an ongoing basis after
licensure, it must be inspected by the FDA for compliance with cGMP and other regulatory requirements. An unsatisfactory inspection
could prevent a new center from being licensed or risk the suspension or revocation of an existing license. We do not and will
not have adequate plasma to manufacture our products. Therefore, we are reliant on the purchase of plasma from third parties to
manufacture our products. We can give no assurances that appropriate plasma will be available to us on commercially reasonable
terms or at all to manufacture our products. In order to maintain a plasma center's license, its operations must continue to conform
to cGMP and other regulatory requirements. In the event that we determine that plasma was not collected in compliance with cGMP,
we may be unable to use and may ultimately destroy plasma collected from that center, which would be recorded as a charge to cost
of product revenue. Additionally, if non-compliance in the plasma collection process is identified after the impacted plasma has
been pooled with compliant plasma from other sources, entire plasma pools, in-process intermediate materials and final products
could be impacted. Consequently, we could experience significant inventory impairment provisions and write-offs which could adversely
affect our business and financial results. We plan to increase our supplies of plasma for use in the manufacturing processes through
increased purchases of plasma from third-party suppliers as well as collections from our existing ADMA BioCenters plasma collection
centers. This strategy is dependent upon our ability to maintain a cGMP compliant environment in both plasma centers and to expand
production and attract donors to both centers. There is no assurance that the FDA will inspect and license our unlicensed plasma
collection centers in a timely manner consistent with our production plans. If we misjudge the readiness of a center for an FDA
inspection, we may lose credibility with the FDA and cause the FDA to more closely examine all of our operations. Such additional
scrutiny could materially hamper our operations and our ability to increase plasma collections. Our ability to expand production
and increase our plasma collection centers to more efficient production levels may be affected by changes in the economic environment
and population in selected regions where ADMA BioCenters operates its current or future plasma centers, by the entry of competitive
plasma centers into regions where ADMA BioCenters operates such centers, by misjudging the demographic potential of individual
regions where ADMA BioCenters expects to expand production and attract new donors, by unexpected facility related challenges, or
by unexpected management challenges at selected plasma centers.
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Our ability to commercialize our products, alone or with
collaborators, will depend in part on the extent to which reimbursement will be available from governmental agencies, health administration
authorities, private health maintenance organizations and health insurers and other healthcare payers, and also depends upon the
approval, timing and representations by the FDA or other governmental authorities for our product candidates. As the FDA BLA review
process is ongoing, we are subject to information requests and communications from the FDA on a routine basis and may not have
clarity on any or all specific aspects of the approval timing, language, name, claims and any other future requirements that may
be imposed by the FDA or other governmental agencies for marketing, authorization and ultimately financial reimbursement for patient
utilization.
Our ability to generate product revenues will be diminished
if our products sell for inadequate prices or patients are unable to obtain adequate levels of reimbursement. Significant uncertainty
exists as to the reimbursement status of newly approved healthcare products, as well as to the timing, language, specifications
and other details pertaining to the approval of such products. Healthcare payers, including Medicare, are challenging the prices
charged for medical products and services. Government and other healthcare payers increasingly attempt to contain healthcare costs
by limiting both coverage and the level of reimbursement for products. Even if one of our product candidates is approved by the
FDA, insurance coverage may not be available, and reimbursement levels may be inadequate, to cover such product. If government
and other healthcare payers do not provide adequate coverage and reimbursement levels for one of our products, once approved, market
acceptance of such product could be reduced. Prices in many countries, including many in Europe, are subject to local regulation
and certain pharmaceutical products, such as plasma-derived products, are subject to price controls in several of the world's principal
markets, including many countries within the European Union. In the U.S., where pricing levels for our products are substantially
established by third-party payers, including Medicare, if payers reduce the amount of reimbursement for a product, it may cause
groups or individuals dispensing the product to discontinue administration of the product, to administer lower doses, to substitute
lower cost products or to seek additional price-related concessions. These actions could have a negative effect on our financial
results, particularly in cases where our products command a premium price in the marketplace, or where changes in reimbursement
induce a shift in the site of treatment. The existence of direct and indirect price controls and pressures over our products could
materially adversely affect our financial prospects and performance.
The new biosimilar pathway established as part of the
healthcare reform may make it easier for competitors to market biosimilar products.
The Healthcare Reform Law introduced an abbreviated licensure
pathway for biological products that are demonstrated to be biosimilar to an FDA-licensed biological product.  A biological
product may be demonstrated to be "biosimilar" if data show that, among other things, the product is "highly
similar" to an already-approved biological product, known as a reference product, and has no clinically meaningful differences
in terms of safety and effectiveness from the reference product. The law provides that a biosimilar application may be submitted
as soon as four years after the reference product is first licensed, and that the FDA may not make approval of an application effective
until 12 years after the reference product was first licensed.  Since the enactment of the law, the FDA has issued several
guidance documents to assist sponsors of biosimilar products in preparing their approval applications.  The FDA approved the
first biosimilar product in 2015, and approved three biosimilar products in 2016.  As a result of the biosimilar pathway in
the U.S., we expect in the future to face greater competition from biosimilar products, including a possible increase in patent
challenges.
The implementation of the Healthcare Reform Law in the
U.S. may adversely affect our business.
Through the March 2010 adoption of the Healthcare Reform Law
in the U.S., substantial changes are being made to the current system for paying for healthcare in the U.S., including programs
to extend medical benefits to millions of individuals who currently lack insurance coverage. The changes contemplated by the Healthcare
Reform Law are subject to rule-making and implementation timelines that extend for several years, and this uncertainty limits our
ability to forecast changes that may occur in the future. However, implementation has already begun with respect to certain significant
cost-saving measures under the Healthcare Reform Law, for example with respect to several government healthcare programs, including
Medicaid and Medicare Parts B and D, that may cover the cost of our future products, and these efforts could have a material adverse
impact on our future financial prospects and performance. For example, with respect to Medicaid, in order for a manufacturer's
products to be reimbursed by federal funding under Medicaid, the manufacturer must enter into a Medicaid rebate agreement with
the Secretary of the U.S. Department of Health and Human Services, and pay certain rebates to the states based on utilization data
provided by each state to the manufacturer and to CMS, and pricing data provided by the manufacturer to the federal government.
The states share these savings with the federal government, and sometimes implement their own additional supplemental rebate programs.
Under the Medicaid drug rebate program, the rebate amount for most branded drug products was previously equal to a minimum of 15.1%
of the Average Manufacturer Price, or AMP, or the AMP less Best Price, whichever is greater. Effective January 1, 2010, the Healthcare
Reform Law generally increased the size of the Medicaid rebates paid by manufacturers for single source and innovator multiple
source (brand name) drug products from a minimum of 15.1% to a minimum of 23.1% of the AMP, subject to certain exceptions. For
non-innovator multiple source (generic) products, the rebate percentage is increased from a minimum of 11.0% to a minimum of 13.0%
of AMP.  In 2010, the Healthcare Reform Law also newly extended this rebate obligation to prescription drugs covered
by Medicaid managed care organizations. These increases in required rebates may adversely affect our future financial prospects
and performance. In order for a pharmaceutical product to receive federal reimbursement under the Medicare Part B and Medicaid
programs or to be sold directly to U.S. government agencies, the manufacturer must extend discounts to entities eligible to participate
in the 340B drug pricing program.  The required 340B discount on a given product is calculated based on the AMP and Medicaid
rebate amounts reported by the manufacturer.  As the 340B drug pricing is determined based on AMP and Medicaid rebate
data, the revisions to the Medicaid rebate formula and AMP definition described above could cause the required 340B discount to
increase.
23
Effective in 2011, the Healthcare Reform Law imposed an annual,
nondeductible fee on any entity that manufactures or imports certain branded prescription drugs and biologic agents, apportioned
among these entities according to their market share in certain government healthcare programs. These fees may adversely affect
our future financial prospects and performance.  The Healthcare Reform Law established the Center for Medicare and Medicaid
Innovation within CMS to test innovative payment and service delivery models to lower Medicare and Medicaid spending, potentially
including prescription drug spending. Funding has been allocated to support the mission of the Center for Medicare and Medicaid
Innovation through 2019.
The Healthcare Reform Law also creates new rebate obligations
for our products under Medicare Part D, a partial, voluntary prescription drug benefit created by the U.S. federal government primarily
for persons 65 years old and over. The Part D drug program is administered through private insurers that contract with CMS. Beginning
in 2011, the Healthcare Reform Law generally requires that in order for a drug manufacturer's products to be reimbursed under Medicare
Part D, the manufacturer must enter into a Medicare Coverage Gap Discount Program agreement with the Secretary of the U.S. Department
of Health and Human Services, and reimburse each Medicare Part D plan sponsor an amount equal to 50% savings for the manufacturer's
brand name drugs and biologics which the Part D plan sponsor has provided to its Medicare Part D beneficiaries who are in the "donut
hole" (or a gap in Medicare Part D coverage for beneficiaries who have expended certain amounts for drugs). The Part D plan
sponsor is responsible for calculating and providing the discount directly to its beneficiaries and for reporting these amounts
paid to CMS's contractor, which notifies drug manufacturers of the rebate amounts it must pay to each Part D plan sponsor. The
rebate requirement could adversely affect our future financial performance, particularly if contracts with Part D plans cannot
be favorably renegotiated or the Part D plan sponsors fail to accurately calculate payments due in a manner that overstates our
rebate obligation. Regarding access to our products, the Healthcare Reform Law established and provided significant funding for
a Patient-Centered Outcomes Research Institute to coordinate and fund Comparative Effectiveness Research ("CER"). While
the stated intent of CER is to develop information to guide providers to the most efficacious therapies, outcomes of CER could
influence the reimbursement or coverage for therapies that are determined to be less cost-effective than others. Should any of
our products be determined to be less cost effective than alternative therapies, the levels of reimbursement for these products,
or the willingness to reimburse at all, could be impacted, which could materially impact our future financial prospects and results.
There have been repeated attempts by Congress to repeal or change
the Healthcare Reform Law. At this time, it remains unclear whether there will be any changes made to or any repeal or replacement
of the Healthcare Reform Law, with respect to certain of its provisions or in its entirety.
Developments in the worldwide economy may adversely impact
our business.
The difficult economic environment may adversely affect demand
for our products. RI-002, our current product candidate, is expected to be sold to hospitals, specialty pharmacies and clinicians
in the U.S. As a result of loss of jobs, patients may lose medical insurance and be unable to purchase supply or may be unable
to pay their share of deductibles or co-payments. Hospitals adversely affected by the economy may steer patients to less costly
therapies, resulting in a reduction in demand, or demand may shift to public health hospitals, which may purchase at a lower government
price. While to date we cannot directly trace any material reduction in demand to the recession, if economic conditions do not
improve, the impact may become material.
Risks Relating to our Finances, Capital Requirements and
Other Financial Matters
We require additional funding and may be unable to raise
capital when needed, which would force us to delay, curtail or eliminate one or more of our research and development programs or
commercialization efforts.
Our operations have consumed substantial amounts of cash since
inception. For the six months ended June 30, 2017 and 2016, we incurred research and development expenses of approximately $2.6
million and $5.4 million, respectively. We expect to continue to spend substantial amounts on product development, including commercialization
activities, procuring raw material plasma, manufacturing, conducting potential future clinical trials for our product candidates
and purchasing clinical trial materials from our suppliers. We currently anticipate that, based upon our projected revenue and
expenditures, our current cash, cash equivalents and accounts receivable, along with the proceeds from this Offering, which includes
the equity commitment from Biotest, will be sufficient to fund our operations, as currently conducted, into the second half of
2018. In order to have sufficient cash to fund our operations thereafter and to continue as a going concern, we will need to raise
additional equity or debt financing during the second half of 2018. This time frame may change based upon how quickly we are able
to execute on our operational initiatives and the various financing options we are exploring
.
However, if the assumptions
underlying our estimated expenses prove to be incorrect, we may have to raise additional capital sooner than we currently expect.
Until such time, if ever, as we can generate a sufficient amount of product revenue to achieve profitability, we expect to continue
to finance our operations through equity or debt financings or corporate collaboration and licensing arrangements. If we are unable
to raise additional capital, we will have to delay, curtail or eliminate our product development activities, including conducting
clinical trials for our product candidates and purchasing clinical trial materials from our suppliers, as well as future commercialization
efforts.
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Raising additional funds by issuing securities or through
licensing or lending arrangements may cause dilution to our existing stockholders, restrict our operations or require us to relinquish
proprietary rights.
To the extent that we raise additional capital by issuing equity
securities, the share ownership of existing stockholders will be diluted. Any future debt financing may involve covenants that
restrict our operations, including limitations on our ability to incur liens or additional debt, pay dividends, redeem our stock,
make certain investments and engage in certain merger, consolidation or asset sale transactions, among other restrictions. In addition,
if we raise additional funds through licensing arrangements or the disposition of any of our assets, it may be necessary to relinquish
potentially valuable rights to our product candidates, or grant licenses on terms that are not favorable to us.
Our cash, cash equivalents and short-term investments
could be adversely affected if the financial institutions in which we hold our cash, cash equivalents and short-term investments
fail.
We regularly maintain cash balances at third-party financial
institutions in excess of the Federal Deposit Insurance Corporation insurance limit. While we monitor the cash balances in our
operating accounts on a daily basis and adjust the balances as appropriate, these balances could be impacted, and there could be
a material adverse effect on our business, if one or more of the financial institutions with which we deposit fails or is subject
to other adverse conditions in the financial or credit markets. To date, we have experienced no loss or lack of access to our invested
cash or cash equivalents; however, we can provide no assurance that access to our invested cash and cash equivalents will not be
impacted by adverse conditions in the financial and credit markets.
If we fail to maintain proper and effective internal control
over financial reporting in the future, our ability to produce accurate and timely financial statements could be impaired, which
could harm our operating results, investors' views of us and, as a result, the value of our Common Stock.
Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 and
related rules, our management is required to report on the effectiveness of our internal control over financial reporting. The
rules governing the standards that must be met for management to assess our internal control over financial reporting are complex
and require significant documentation, testing and possible remediation. To comply with the requirements of being a reporting company
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we have been required to upgrade, and may
need to implement further upgrades, to our financial, information and operating systems, implement additional financial and management
controls, reporting systems and procedures and hire additional accounting and finance staff.
Our ability to use our net operating loss carryforwards
("NOLs") may be limited.
We have incurred substantial losses during our history. As of
December 31, 2016, we had Federal and state NOLs of $87.8 million and $75.2 million, respectively. These NOLs will begin to expire
at various dates beginning in 2027, if not limited by triggering events prior to such time. Under the provisions of the Internal
Revenue Code, changes in our ownership, in certain circumstances, will limit the amount of Federal NOLs that can be utilized annually
in the future to offset taxable income. In particular, Section 382 of the Internal Revenue Code imposes limitations on a company's
ability to use NOLs upon certain changes in such ownership. If we are limited in our ability to use our NOLs in future years in
which we have taxable income, we will pay more taxes than if we were able to fully utilize our NOLs. We may experience ownership
changes in the future as a result of subsequent shifts in our stock ownership that we cannot predict or control that could result
in further limitations being placed on our ability to utilize our federal NOLs.
Risks Associated with our Common Stock and this Offering
The market price of our Common Stock may be volatile and
may fluctuate in a way that is disproportionate to our operating performance.
Our stock price may experience substantial volatility as a result
of a number of factors, including:
·
sales or potential sales of substantial amounts of our Common Stock;
·
our ability to successfully leverage the anticipated benefits and
synergies from the Biotest Transaction, including optimization of the combined businesses, operations and products and services,
including the nature, strategy and focus of the combined company and the management and governance structure of the combined company;
25
·
delay or failure in initiating or completing preclinical or clinical
trials or unsatisfactory results of these trials;
·
delay in FDA approval for RI-002;
·
the timing of acceptance, third-party reimbursement and sales of RI-002;
·
our ability to resume the manufacturing of Bivigam once the deficiencies
identified in the CRL have been resolved by us to the satisfaction of the FDA;
·
announcements about us or about our competitors, including clinical
trial results, regulatory approvals or new product introductions;
·
developments concerning our licensors or third-party vendors;
·
litigation and other developments relating to our patents or other
proprietary rights or those of our competitors;
·
conditions in the pharmaceutical or biotechnology industries;
·
governmental regulation and legislation;
·
variations in our anticipated or actual operating results; and
·
change in securities analysts' estimates of our performance,
or our failure to meet analysts' expectations.
Many of these factors are beyond our control. The stock markets
in general, and the market for pharmaceutical and biotechnology companies in particular, have historically experienced extreme
price and volume fluctuations. These fluctuations often have been unrelated or disproportionate to the operating performance of
these companies. These broad market and industry factors could reduce the market price of our Common Stock, regardless of our actual
operating performance.
Our use of the offering proceeds
may not yield a favorable return on your investment
.
We currently anticipate that the net proceeds from this
Offering will be used for (i) the purchase of raw material inventory and the ramp-up of our manufacturing capabilities, (ii)
continued remediation of the issues identified in the CRL and the Warning Letter, (iii) capital expenditures for the Boca
Facility, (iv) product launch and medical education campaigns, (v) the build-out of our third ADMA BioCenters plasma
collection facility, (vi) research and development activities for our plasma collection programs and specialty plasma
products, and (vii) working capital needs and general corporate purposes. The proceeds received from the Offering are also
expected to enable us, by June 30, 2018, to: (a) successfully complete our internal quality management system overhaul, (b)
obtain approval, through a PAS from the FDA, for an optimized manufacturing process for Bivigam, (c) downgrade the FDA
inspection classification relative to the Warning Letter, (d) obtain marketing clearance for the relaunch of Bivigam, and (e)
refile our BLA for RI-002. Pending the application of the net proceeds, we intend to invest the net proceeds of the Offering
in short-term, interest-bearing, investment-grade securities or certificates of deposit. Our management has broad discretion
over how these proceeds are used and could utilize the proceeds in ways with which you may not agree. Pending the use of the
proceeds in this Offering, we will invest them. However, the proceeds may not be invested in a manner that yields a
favorable, or any, return.
An investment in our Common Stock
is extremely speculative and there can be no assurance of any return on any such investment.
An investment in our Common Stock is extremely speculative and
there is no assurance that investors will obtain any return on their investment. Investors will be subject to substantial risks
involved in an investment in us, including the risk of losing their entire investment.
26
Sales of a substantial number of shares of our common
stock, or the perception that such sales may occur, may adversely impact the market price of our Common Stock.
As of October 10, 2017, approximately half of our 25,793,404
outstanding shares of common stock, as well as a substantial number of shares of our Common Stock underlying outstanding warrants,
are available for sale in the public market, subject to certain restrictions with respect to sales of our Common Stock by our affiliates,
either pursuant to Rule 144 under the Securities Act ("Rule 144") or under effective registration statements. The 12,886,740
shares of common stock, including 8,591,160 shares of Non-Voting Common Stock, recently acquired by BPC in the Biotest Transaction
are subject to a lock-up for six months after closing of the Biotest Transaction, which lock-up expires on December 6, 2017. For
three years after the end of such six-month period, subject to certain limited exceptions, under the stockholders agreement entered
into between the Company and BPC upon closing the Biotest Transaction, sales by BPC of our equity interests may not exceed 15%
of the issued and outstanding common stock of ADMA in any twelve-month period; provided, however, that if our market capitalization
increases to double our market capitalization immediately following the closing of the Biotest Transaction, then BPC may sell up
to 20% of our issued and outstanding common stock in any twelve-month period; provided, further, that (x) if our market capitalization
increases to triple our market capitalization immediately following the closing of the Biotest Transaction, or (y) upon the one-year
anniversary of BPC holding less than a 25% economic interest in us, then BPC may sell its equity interests in us at any time (subject
to applicable securities laws). At the closing of the Biotest Transaction, we entered into a registration rights agreement with
BPC, pursuant to which BPC will have, among other things, certain registration rights under the Securities Act with respect to
its shares of our common stock, subject to certain transfer restrictions (the "Registration Rights Agreement"). Sales
of a substantial number of shares of our common stock, or the perception that such sales may occur, may adversely impact the market
price of our Common Stock.
Our affiliates control a substantial amount of our shares
of common stock. Provisions in our certificate of incorporation, our by-laws and Delaware law might discourage, delay or prevent
a change in control of our company or changes in our management and, therefore, depress the trading price of our Common Stock.
Provisions of our certificate of incorporation, our by-laws
and Delaware law may have the effect of deterring unsolicited takeovers or delaying or preventing a change in control of our company
or changes in our management, including transactions in which our stockholders might otherwise receive a premium for their shares
over then current market prices. As of October 10, 2017, BPC, our directors and executive officers and their affiliates beneficially
owned in excess of 75% of the outstanding shares of common stock. In addition, these provisions may limit the ability of stockholders
to approve transactions that they may deem to be in their best interests. These provisions include:
·
the inability of stockholders to call special meetings;
·
the ability of our board of directors (the "Board") to
institute a stockholder rights plan, also known as a poison pill, that would work to dilute our stock,
·
classification of our Board and limitation on filling of vacancies
could make it more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of our
company, and
·
authorization of the issuance of "blank check" preferred
stock, with such designation rights and preferences as may be determined from time to time by the Board, without any need for action
by stockholders.
In addition, Section 203 of the Delaware General Corporation
Law prohibits a publicly-held Delaware corporation from engaging in a business combination with an interested stockholder, generally
a person which together with its affiliates owns, or within the last three years, has owned 15% of our voting stock, for a period
of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination
is approved in a prescribed manner.  The existence of the foregoing provisions and anti-takeover measures could limit
the price that investors might be willing to pay in the future for shares of our common stock. They could also deter potential
acquirers of our company, thereby reducing the likelihood that you could receive a premium for your common stock in an acquisition.
In addition, as a result of the concentration of ownership of our shares of common stock, our stockholders may from time to time,
observe instances where there may be less liquidity in the public markets for our securities.
We have never paid and do not intend to pay cash dividends
in the foreseeable future. As a result, capital appreciation, if any, will be your sole source of gain.
We have never paid cash dividends on any of our capital stock
and we currently intend to retain future earnings, if any, to fund the development and growth of our business. In addition, the
terms of existing and future debt agreements may preclude us from paying dividends. As a result, capital appreciation, if any,
of our common stock will be your sole source of gain for the foreseeable future.
27
If we fail to adhere to the strict listing requirements
of Nasdaq, we may be subject to delisting. As a result, our stock price may decline and our Common Stock may be delisted.  If
our stock were no longer listed on Nasdaq, the liquidity of our securities likely would be impaired.
Our Common Stock currently trades on the Nasdaq Capital Market
("Nasdaq") under the symbol "ADMA." If we fail to adhere to Nasdaq's strict listing criteria, including
with respect to stock price, our market capitalization and stockholders' equity , our stock may be delisted. This could
potentially impair the liquidity of our securities not only in the number of shares that could be bought and sold at a given price,
which may be depressed by the relative illiquidity, but also through delays in the timing of transactions and the potential reduction
in media coverage. As a result, an investor might find it more difficult to dispose of our Common Stock. We believe that current
and prospective investors would view an investment in our Common Stock more favorably if it continues to be listed on Nasdaq. Any
failure at any time to meet the Nasdaq continued listing requirements could have an adverse impact on the value of and trading
activity in our Common Stock. Although we currently satisfy the listing criteria for Nasdaq, if our stock price declines dramatically,
we could be at risk of failing to meet the Nasdaq continued listing criteria.
Penny stock regulations may affect
your ability to sell our Common Stock.
Because the price of our Common Stock currently trades below
$5.00 per share, our Common Stock is subject to Rule 15g-9 under the Exchange Act, which imposes additional sales practice requirements
on broker dealers which sell these securities to persons other than established customers and accredited investors. Under these
rules, broker-dealers who recommend penny stocks to persons other than established customers and "accredited investors"
must make a special written suitability determination for the purchaser and receive the purchaser's written agreement to
a transaction prior to sale, which includes an acknowledgement that the purchaser's financial situation, investment experience
and investment objectives forming the basis for the broker-dealer's suitability determination are accurately stated in such
written agreement. Unless an exception is available, the regulations require the delivery, prior to any transaction involving a
penny stock, of a disclosure schedule explaining the penny stock market and the associated risks. The additional burdens imposed
upon broker-dealers by these requirements could discourage broker-dealers from effecting transactions in our Common Stock and may
make it more difficult for holders of our Common Stock to sell shares to third parties or to otherwise dispose of them.
We are an "emerging growth company," and elect
to comply with reduced public company reporting requirements applicable to emerging growth companies, which could make our Common
Stock less attractive to investors.
We are an "emerging growth company," as defined
by the Jumpstart Our Business Startups Act (the "JOBS Act"). The JOBS Act contains provisions that, among other things,
reduce certain reporting requirements for qualifying public companies.  As an "emerging growth company,"
we may, under Section 7(a)(2)(B) of the Securities Act, delay adoption of new or revised accounting standards applicable to public
companies until such standards would otherwise apply to private companies.   We may continue to take advantage of
this extended transition period until the first to occur of the date that we (i) are no longer an "emerging growth company"
or (ii) affirmatively and irrevocably opt out of this extended transition period.
We could be an emerging growth company until December 31, 2018,
which is the last day of the fiscal year following the fifth anniversary of the first sale of our common equity securities pursuant
to an effective registration statement under the Securities Act. However, if certain events occur prior to the end of such five-year
period, including if we become a "large accelerated filer," our annual gross revenues exceed $1 billion or we issue
more than $1 billion of non-convertible debt in any three-year period, we would cease to be an emerging growth company prior to
the end of such five-year period.
We have elected to take advantage of the benefits of this extended
transition period.  Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.  Until the date that we are no longer an "emerging growth company" or
affirmatively and irrevocably opt out of the exemption provided by Securities Act Section 7(a)(2)(B), upon issuance of a new or
revised accounting standard that applies to our financial statements and that has a different effective date for public and private
companies, we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will
adopt the recently issued accounting standard. As an emerging growth company, we are also exempt from the requirement to have our
independent registered public accounting firm provide an attestation report on our internal control over financial reporting.
We cannot predict if investors will find our Common Stock less
attractive as a result of our reliance on these exemptions. If some investors find our Common Stock less attractive as a result
of any choice we make to reduce disclosure, there may be a less active trading market for our Common Stock, our stock price may
be more volatile and our stock price may decline dramatically.
Our Board of Directors may, without
stockholder approval, issue and fix the terms of shares of preferred stock and issue additional shares of Common Stock adversely
affecting the rights of holders of our common stock.
Our Amended and Restated Certificate of
Incorporation (the "A&R Certificate of Incorporation") authorizes the issuance of up to 10,000,000 shares of "blank
check" preferred stock, with such designation rights and preferences as may be determined from time to time by the Board.
Currently, our A&R Certificate of Incorporation authorizes the issuance of up to 75,000,000 shares of Common Stock, of which
57,797,756 shares remain available for issuance and may be issued by us without stockholder approval, and up to 8,591,160 shares
of Non-Voting Common Stock, all of which are issued and outstanding.
28
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus and the documents incorporated by reference
into this prospectus and any prospectus supplement or free writing prospectus may contain "forward-looking statements"
within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, or the Securities Act, and Section
21E of the Exchange Act. These forward-looking statements only provide our current expectations or forecasts of future events and
financial performance and may be identified by the use of forward-looking terminology, including the terms "believes,"
"estimates," "anticipates," "expects," "plans," "intends," "may,"
"will" or "should", "could", "predicts" or the negative thereof, or other variations
or comparable terminology, though the absence of these words does not necessarily mean that a statement is not forward-looking.
Forward-looking statements include all matters that are not historical facts and include, without limitation, statements concerning
our business strategy, outlook, objectives, future milestones, plans, intentions, goals, and future financial condition, including
the period of time for which our existing resources will enable us to fund our operations. Forward-looking statements also include
our financial, clinical, manufacturing and distribution plans and our expectations and timing related to the FDA approval and commercialization
of our lead pipeline product candidate, RI-002.
We intend that all forward-looking statements be subject to
the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to many
risks and uncertainties that could cause actual results to differ materially from any future results expressed or implied by the
forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither
statements of historical fact nor guarantees or assurances of future performance. Examples of the risks and uncertainties include,
but are not limited to:
·
our ability to successfully leverage the anticipated benefits and
synergies from the Biotest Transaction, including optimization of the combined businesses, operations and products and services,
including the nature, strategy and focus of the combined company and the management and governance structure of the combined company;
·
our ability to resume the manufacturing of Bivigam once the deficiencies
identified in the Warning Letter with respect to the outstanding issues at the Boca Facility acquired from BPC in June 2017 have
been resolved by us to the satisfaction of the FDA, as well as a positive review of the optimized manufacturing process under a
PAS by the FDA;
·
our ability to successfully resubmit to the FDA our BLA for our lead
pipeline product candidate, RI-002, once the deficiencies identified in the CRL have been resolved by us and/or our third-party
vendors to the satisfaction of the FDA, and other requests for information included therein have been provided by us;
·
our plans to develop, manufacture, market, launch and expand our own
commercial infrastructure and commercialize our current products and future products and the success of such efforts;
·
the safety, efficacy and expected timing of and our ability to obtain
and maintain regulatory approvals for our current products and product candidates, including the timeframe within which we may
receive approval from the FDA, if at all, of our BLA resubmission for RI-002 and the labeling or nature of any such approvals;
·
the achievement of or expected timing, progress and results of clinical
development, clinical trials and potential regulatory approvals;
·
our dependence upon our third-party and related-party customers and
vendors and their compliance with regulatory bodies;
·
our ability to obtain adequate quantities of FDA-approved plasma with
proper specifications;
·
our plans to increase our supplies of plasma;
·
the potential indications for our product candidates;
·
potential investigational new product applications;
·
the acceptability of any of our products as well as RI-002 for any
purpose by physicians, patients or payers;
29
·
concurrence by the FDA with our conclusions and the satisfaction by
us of its guidance;
·
the comparability of results of our immune globulin products to other
comparably run IVIG trials;
·
the potential of RI-002 and Bivigam to provide meaningful clinical
improvement for patients living with PIDD;
·
our ability to market and promote Nabi-HB in the competitive environment
and to generate meaningful revenues;
·
our intellectual property position, including our expectations of
the scope of patent protection with respect to RI-002, or other future pipeline product candidates;
·
our manufacturing capabilities, third-party contractor capabilities
and strategy;
·
our plans related to manufacturing, supply and other collaborative
agreements;
·
our estimates regarding expenses, capital requirements and the need
for additional financing;
·
possible or likely reimbursement levels for our currently marketed
products and, if any, if and when RI-002 is approved for marketing;
·
estimates regarding market size, projected growth and sales for our
existing products as well as our expectations of market acceptance of RI-002;
·
future economic conditions or performance; and
·
expectations for future capital requirements.
Pharmaceutical, biotechnology and medical device technology
companies have suffered significant setbacks in advanced clinical trials, even after obtaining promising earlier trial results.
Data obtained from such clinical trials are susceptible to varying interpretations, which could delay, limit or prevent regulatory
approval. After gaining approval of a drug product, pharmaceutical and biotechnology companies face considerable challenges in
marketing and distributing their products, and may never become profitable. You should read carefully the risks described in the
section entitled "Risk Factors" beginning on page 9 of this prospectus, and in any accompanying prospectus supplement
or related free writing prospectus, to better understand the significant risks and uncertainties inherent in our business and underlying
any forward-looking statements. As a result of these factors, actual results could differ materially and adversely from those anticipated
or implied in the forward-looking statements in this report and you should not place undue reliance on any forward-looking statements.
Any forward-looking statements that we make in this prospectus
speak only as of the date of such statements and we undertake no obligation to publicly update any forward-looking statements or
to publicly announce revisions to any of the forward-looking statements, whether as a result of new information, future events
or otherwise.
In addition to the risks described in the section entitled "Risk
Factors" beginning on page 9 of this prospectus, many important factors affect our ability to achieve our plans and objectives
and to successfully develop and commercialize our product candidates. In addition, our results may be affected by our ability to
manage our financial resources, difficulties or delays in developing manufacturing processes for our product candidates, preclinical
and toxicology testing and regulatory developments. Delays in clinical programs, whether caused by competitive developments, adverse
events, patient enrollment rates, regulatory issues or other factors, could adversely affect our financial position and prospects.
Prior clinical trial program designs and results are not necessarily indicative of future clinical trial designs or results. If
our product candidates do not meet safety or efficacy endpoints in clinical evaluations, they will not receive regulatory approval
and we will not be able to market them. The FDA may not approve our BLA for RI-002, our data, our results, or permit us to proceed.
We may not be able to enter into any strategic partnership agreements. Operating expenses and cash flow projections involve a high
degree of uncertainty, including variances in future spending rates due to changes in corporate priorities, the timing and outcomes
of clinical trials, competitive developments and the impact on expenditures and available capital from licensing and strategic
collaboration opportunities. If we are unable to raise additional capital when required or on acceptable terms, we may have to
significantly delay, scale back or discontinue one or more of our drug development or discovery research programs and delay or
abandon potential commercialization efforts. We may not ever have any products that generate significant revenue. Therefore, current
and prospective security holders are cautioned that there can be no assurance that the forward-looking statements included in this
document will prove to be accurate.
30
Use
of Proceeds
We estimate that we will receive up to $         million in gross proceeds
from the sale of Common Stock in the Offering. After deducting estimated discounts and commissions to the underwriters and estimated
offering expenses payable by us, we expect net proceeds of up to approximately $         million. We expect to use the proceeds received
from the Offering for (i) the purchase of raw material inventory and the ramp-up of our manufacturing capabilities, (ii) continued
remediation of the issues identified in the CRL and the Warning Letter, (iii) capital expenditures for the Boca Facility, (iv)
product launch and medical education campaigns, (v) the build-out of our third ADMA BioCenters plasma collection facility, (vi)
research and development activities for our plasma collection programs and specialty plasma products, and (vii) working capital
needs and general corporate purposes. The proceeds received from the Offering are also expected to enable us, by June 30, 2018,
to: (a) successfully complete our internal quality management system overhaul, (b) obtain approval, through a PAS from the FDA,
for an optimized manufacturing process, for Bivigam, (c) downgrade the FDA inspection classification relative to the Warning Letter,
(d) obtain marketing clearance for the relaunch of Bivigam, and (e) refile our BLA for RI-002.
Each $1.00 increase (decrease) in the assumed public offering
price of $3.19 per share of Common Stock, the last reported sales price of our Common Stock on the Nasdaq Capital Market on October
6, 2017, would increase or decrease the net proceeds from this Offering by approximately $7.1 million, after deducting underwriting
discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares
of common stock we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares of Common Stock we are offering
would increase (decrease) the net proceeds to us from this Offering by approximately $2.9 million, after deducting underwriting
discounts and commissions and estimated offering expenses payable by us.
Pending the application of the net proceeds, we intend to invest
the net proceeds of the Offering in short-term, interest-bearing, investment-grade securities or certificates of deposit. Our management
has broad discretion over how these proceeds are used and could utilize the proceeds in ways with which you may not agree. We reserve
the right to change the use of these proceeds as a result of certain contingencies such as competitive developments, the result
of our sales and marketing efforts and other factors. Pending the use of the proceeds in this Offering, we will invest them. However,
the proceeds may not be invested in a manner that yields a favorable, or any, return.
31
DILUTION
Our reported net tangible book value as
of June 30, 2017 was $18.1 million, or $0.70 per share of Common Stock, based upon an aggregate of 25,773,481 shares of Common
Stock and Non-Voting Common Stock outstanding as of that date. Net tangible book value per share is determined by dividing such
number of outstanding shares of Common Stock into our net tangible book value, which are our total tangible assets less total liabilities.
After giving effect to the sale of shares in this Offering at an assumed offering price of $3.19 per share, after deducting payments
of discounts and commissions to the underwriters and other estimated offering expenses payable by us, our net tangible book value
at June 30, 2017 would have been approximately $40.6 million, or $1.21 per share. This represents an immediate increase in net
tangible book value of  $0.51 per share to our existing stockholders, and an immediate dilution of $1.98 per share
to investors purchasing shares in the Offering. The following table illustrates the per share dilution to investors purchasing
shares in the offering:
Public offering price per share, assumed
$
3.19
Net tangible book value per share as of June 30, 2017
$
0.70
Increase per share attributable to sale of shares to investors
$
0.51
As adjusted net tangible book value per share after the Offering
$
1.21
Dilution per share to investors
$
1.98
Dilution as a percentage of the offering price
62
%
The dilution information discussed above
is illustrative only and will change based on the actual offering price and other terms of this Offering determined at pricing.
Each $1.00 increase (decrease) in the assumed
public offering price of $3.19 per share of Common Stock, the last reported sales price of our Common Stock on the Nasdaq Capital
Market on October 6, 2017, would increase or decrease the net proceeds from this Offering by approximately $7.1 million, after
deducting underwriting discounts and commissions and estimated offering expenses payable by us.
We may also increase or decrease the
number of shares of common stock we are offering. Each increase (decrease) of 1,000,000 shares in the number of shares of
Common Stock we are offering would increase (decrease) the net proceeds to us from this Offering by approximately $2.9
million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. In addition,
an increase of 1,000,000 shares in the number of shares of Common Stock we are offering would increase our as adjusted net
tangible book value by $0.05 per share and decrease the dilution to new investors in this Offering by $0.05 per
share, after deducting the estimated underwriting discounts and commissions and the estimated offering expenses payable by
us. Similarly, a decrease of 1,000,000 shares in the number of shares of Common Stock we are offering would decrease our
as adjusted net tangible book value by $0.05 per share and increase the dilution to new investors in this Offering by
$0.05 per share, assuming that the public offering price remains the same, and after deducting the underwriting
discounts and commissions and estimated offering expenses.
If the Underwriters exercise their option in full to purchase
additional shares of common stock in this Offering at the assumed public offering price of $3.19 per share, the net tangible book
value per share after this Offering would be $1.27 per share, the increase in the net tangible book value per share to existing
stockholders would be $0.57 per share and the dilution to new investors purchasing securities in this Offering would be $1.92 per
share.
32
Business
Overview
We are a vertically integrated commercial biopharmaceutical
and specialty immunoglobulin company that manufactures, markets and develops specialty plasma-derived biologics for the treatment
of immune deficiencies and prevention of certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. We currently
have two marketed products: Nabi-HB, indicated for the treatment of acute exposure to blood containing HBsAg; and Bivigam, indicated
for the treatment of primary humoral immunodeficiency. We are also developing a pipeline of plasma-derived therapeutics, including
our lead pipeline product candidate, RI-002 for the treatment of PIDD. Our products and product candidates are intended to be used
by physician specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases.
On June 6, 2017, we completed the acquisition of the Biotest
Assets, which includes two FDA licensed products, Nabi-HB and Bivigam, and the Boca Facility. Nabi-HB and Bivigam are manufactured
at the Boca Facility, an FDA-licensed facility certified by the GHA. In addition to the manufacture and sale of Nabi-HB and Bivigam,
we also provide contract manufacturing for certain historical clients, including the sale of intermediate by-products. Immediately
following the acquisition, the Biotest Assets were contributed into ADMA BioManufacturing.
Concurrent with the closing of the acquisition of the Biotest
Assets, we received $12.5 million in cash consideration in addition to a $15.0 million subordinated note from Biotest at 6% interest
payable to BPC with a maturity of five years, and Biotest committed to participate in any future equity offering or private placement
undertaken by us in an amount equal to up to $12.5 million on a pro-rata basis, which will be invested as part of this Offering.
At the closing of the Biotest Transaction, we delivered to BPC the Biotest Equity Interest.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.
Our Marketed Products
Nabi-HB
Nabi-HB is a hyperimmune globulin that is rich in antibodies
to the Hepatitis B virus. Nabi-HB is a purified human polyclonal antibody product collected from plasma donors who have been previously
vaccinated with a Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing Hepatitis B
surface antigen ("HBsAg"), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive
persons and household exposure to persons with acute Hepatitis B virus infection. Hepatitis B is a potentially life-threatening
liver infection caused by the Hepatitis B virus. It is a major global health problem. It can cause chronic infection and puts people
at high risk of death from cirrhosis and liver cancer. Nabi-HB has a well-documented record of long-term safety and effectiveness
since its initial market introduction. FDA approval for Nabi-HB was received on March 24, 1999. Biotest acquired Nabi-HB from Nabi
Biopharmaceuticals in 2007.
Bivigam
Bivigam is an intravenous immune globulin indicated for the
treatment of primary humoral immunodeficiency. This includes, but is not limited to, agammaglobulinemia, common variable immunodeficiency,
Wiskott-Aldrich syndrome and severe combined immunodeficiency. These PIs are a group of genetic disorders. Initially thought to
be very rare, it is now believed that as many as one in every 1,200-2,000 people has some form of PI. Bivigam contains a broad
range of antibodies similar to those found in normal human plasma. These antibodies are directed against bacteria and viruses,
and help to protect PI patients against serious infections. Bivigam is a purified, sterile, ready-to-use preparation of concentrated
human IgG antibodies. Antibodies are proteins in the human immune system that work to defend against disease. FDA approval for
Bivigam was received on December 19, 2012, and sales commenced in the first quarter of 2013. In December 2016, BPC temporarily
suspended the commercial production of Bivigam in order to focus on the completion of planned improvements to the manufacturing
process. Although we expect to resume production in the fourth quarter of 2017, Bivigam is not expected to be available for
sale throughout the remainder of 2017 and FDA clearance for relaunch is expected to occur by mid-2018.
Our Lead Pipeline Product Candidate – RI-002
We are currently developing our lead pipeline product candidate,
RI-002, for the treatment of PIDD, and have completed a pivotal Phase III clinical trial, which met the primary endpoint of no
SBIs reported. Secondary efficacy endpoints further demonstrated the benefits of RI-002 in the low incidence of infection, therapeutic
antibiotic use, days missed from work/school/daycare, and unscheduled medical visits and hospitalizations. RI-002 is derived from
human plasma blended from normal donors and from donors tested to have high levels of neutralizing titers to RSV. RI-002 is manufactured
using a process called fractionation, which purifies IgG from this blended plasma pool resulting in a final IVIG product enriched
with naturally occurring polyclonal anti-pathogen antibodies (e.g., streptococcus pneumonia, H. influenza type B, CMV, measles,
tetanus, etc.). We use our proprietary RSV microneutralization assay to test for standardized levels of neutralizing antibodies
to RSV in the final drug product.
33
Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment
of PIDD. In July 2016, the FDA issued the CRL. The CRL reaffirmed the issues set forth in the Warning Letter that had been issued
to Biotest related to certain issues identified at the Boca Facility, but did not cite any concerns with the clinical safety or
efficacy data for RI-002 submitted in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA
approval of RI-002. The FDA identified in the CRL, among other things, certain outstanding inspection issues and deficiencies related
to CMC and GMP at the Boca Facility and at certain of our third-party vendors, and requested documentation of corrections for a
number of these issues. The FDA indicated in the CRL that it cannot grant final approval of our BLA until, among other things,
these deficiencies are resolved. Following the completion of the Biotest Transaction, we now have control over the regulatory,
quality, general operations and drug substance manufacturing process at the Boca Facility, and our highest priority is to remediate
the outstanding compliance issues that were identified at the Boca Facility in the Warning Letter, and we plan to be inspection-ready
for the FDA by the end of 2017. We are currently working with a consulting firm consisting of quality management systems and biologics
production subject matter experts in preparation for a re-inspection by the FDA in order to downgrade the FDA inspection classification
relative to the Warning Letter compliance issues as indicated in the CRL. Following downgrading of the FDA inspection classification,
we anticipate that we will be in a position to refile our BLA for RI-002 in mid-2018.
Evaluation of RI-002 in PIDD Patients
PIDD, a genetic disorder that causes a deficient or absent immune
system, is caused by hereditary or genetic defects and can affect anyone regardless of age or gender. PIDD patients are more vulnerable
to infections and more likely to suffer complications from these infections. IVIG is a plasma derived product that is used to prevent
serious infections in patients with PIDD. It is comprised of polyclonal antibodies, which are proteins produced by B-cells that
are used by the body's immune system to neutralize foreign objects such as bacteria and viruses. It is estimated that there
are about 250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. In the U.S.,
sales of immune globulin products for all its uses were reported to be approximately $4.8 billion in 2014.
The RI-002 pivotal Phase III clinical trial was conducted as
a single arm study in which patients were treated approximately once per month for a period of 12 months plus 90 days for follow
up. Fifty-nine patients were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of serious infections to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic, or PK, data collection points including
antibody titers for certain agents, including RSV antibody levels at various time points after infusion.
RI-002 demonstrated positive results in the Phase III study
in patients with PIDD, meeting its primary endpoint of no SBIs reported. Secondary efficacy endpoints further demonstrated the
benefits of RI-002 in the low incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare, and unscheduled
medical visits and hospitalizations. RI-002 was administered in a total of 793 infusions with zero serious adverse events to 59
patients in nine treatment centers throughout the U.S. These results, included in our BLA, more than meet the requirement specified
by FDA guidance of ≤ 1 SBI per patient-year.
On February 22, 2015, at the 2015 American Academy of Allergy,
Asthma & Immunology Annual Meeting, scientific investigators reported on the secondary outcomes that included: a total of 93
days, or 1.66 days per patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and IgG trough levels above those required by the FDA for IVIG products. Additionally, there
was a marked increase in all of the measured specific anti-pathogen antibodies in PK subjects (n=31). The mean of maximum fold
increases in specific antibody levels after infusion of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV),
which were statistically significant fold increases from the pathogen's specific measured baselines. The safety profile of RI-002
is comparable to that of other immunoglobulins.
Rationale for the Potential Evaluation of RI-002 in RSV
Infected Patients
RSV is a common virus that ordinarily leads to mild, cold-like
symptoms in healthy adults and children. In high-risk groups, such as the PIDD population and the other immune-compromised populations,
RSV can lead to a more serious infection and may even cause death. The polyclonal antibodies which are present in RI-002 are expected
to prevent infections in immune-compromised patients.
34
We previously conducted a randomized, double-blind, placebo-controlled
Phase II clinical trial to evaluate RI-001, RI-002's predecessor product candidate, in immune-compromised, RSV-infected patients.
This trial was conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial demonstrated
a statistically significant improvement in the change from baseline RSV titers to day 18 in the high dose and low dose treatment
groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The mean fold increase for high dose was 9.24 (95% CI
4.07, 21.02) and the observed mean fold increase for low dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated
patients was 1.42 (95% CI 0.64, 3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced
greater than a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no serious drug-related
adverse events reported during the trial.
From April 2009 through February 2011, RI-001 was also administered
to 15 compassionate use patients where physicians requested access to the product for treating their patients with documented lower
respiratory tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum samples
were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in RSV antibody titers from
baseline. Serum samples were not obtained from two patients that received Palivizumab. All 11 surviving patients received RI-001
within an average of 4.4 days after the onset of the diagnosis of RSV. The drug was well-tolerated in all 15 patients and there
were no reports of serious adverse events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience
and data obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various conferences
the past several years.
Based on these results, we intend to evaluate RI-002 for the
treatment of RSV patients following FDA approval, if received, for treatment of PIDD.
Manufacturing and
Supply of
Our Products
In order to produce plasma-derived
immunoglobulin products, raw material plasma is collected from human donors and then manufactured into specialized products. Historically,
plasma for our products and product candidates has been collected from healthy donors at FDA-licensed plasma donation centers.
Source plasma is collected at any one of over 400 FDA-licensed donation centers located throughout the U.S., using a process called
automated plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular components
in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is tested and must be negative for
antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg and HCV, using FDA-licensed serological test procedures.
After receipt of the source
plasma, the frozen plasma is thawed and pooled and goes through a process called "fractionation." This process is referred
to as the Cohn method or cold ethanol method of fractionation. During cold ethanol fractionation, classes of proteins are precipitated
and removed by centrifugation or filtration. The fractionation process includes the following steps; precipitation and absorption,
depth filtration, centrifugation and chromatography. Because of the human origin of the raw material and the thousands of donations
required in the fractionation process, the major risk associated to plasma products is the transmission of blood-borne infectious
pathogens. These purification processes have the potential to reduce the viral load. The manufacturing process also utilizes a
multistep viral removal/inactivation system, which further increases the safety of the products. The following manufacturing processes
have been validated for their capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment, and nanofiltration. Incorporation of these processes in the manufacturing process ensures that the Company's products
comply with the requirements of the FDA and are safe and efficacious.
Sales and Commercialization
of
Our Products
Historically, Nabi-HB
has been sold through independent distributors, drug wholesalers acting as sales agents, specialty pharmacies and other alternate
site providers. In the U.S., third-party drug wholesalers ship a significant portion of Nabi-HB through their distribution centers.
These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods
include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing
systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising.
35
While we are working towards remediating the Warning Letter
and other CMC and GMP inspection deficiencies and eventually refiling our BLA resubmission for RI-002, we expect to continue our
commercialization efforts for our approved products and plan to bolster these initiatives by hiring a small, specialty sales force
to market Nabi-HB, Bivigam upon its relaunch and, upon approval by the FDA, RI-002 to hospitals, physician offices/clinics, and
other specialty treatment organizations. We also anticipate staffing our company with additional personnel for patient support,
medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. If and when we receive FDA approval, we may also use a network of national
distributors to assist with order fulfillment for RI-002 for use by healthcare professionals and hospitals.
Pharmaceutical Pricing
and Reimbursement of
Our Products
All sales of Nabi-HB and
Bivigam in the U.S. depend in part upon the availability of reimbursement from third-party payers. Third-party payers include government
health programs, managed care providers, private health insurers and other organizations. Nabi-HB and Bivigam are reimbursed or
purchased under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health Service program,
and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a joint state and federal government
health plan that provides covered outpatient prescription drugs for low-income individuals. Under Medicaid, drug manufacturers
pay rebates to the states based on utilization data provided by the states.
Plasma Collection Facilities
Our wholly-owned subsidiary, ADMA BioCenters, operates FDA-licensed,
GHA and KMFDS certified source plasma collection facilities located in the U.S. which provide us with a portion of our blood plasma
for the manufacture of our products and product candidates. A typical plasma collection center, such as those operated by ADMA
BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices
depending upon the type of plasma, quantity of purchase, and market conditions at the time of sale. Plasma collected from ADMA
BioCenters' facilities that is not used to manufacture our products or product candidates are sold to third-party customers in
the U.S., and other locations where we are approved globally under supply agreements or in the open "spot" market.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.
Leadership
The founders of ADMA have, combined, greater than 60 years of
experience marketing and distributing blood plasma products and devices. With our executive team, members of the Board and our
commercial team, we collectively possess over 200 years of deep medical, technical, development and commercial experience in the
biologics and pharmaceutical industry.
Our Strategy
Our goal is to be a leader in developing, manufacturing and
commercializing specialized, targeted, plasma-derived therapeutics that are intended to extend and enhance the lives of individuals
who are naturally or medically immune-compromised. The key elements of our strategy for achieving this goal are as follows:
·
Remediate the outstanding compliance deficiencies
identified by the FDA in the CRL and Warning Letter at the Boca Facility
. Following the completion of the Biotest Transaction,
we now have control over the regulatory, quality, general operations and drug substance manufacturing process at the Boca Facility.
Our highest priority is to remediate the outstanding compliance issues that were identified by the FDA in the CRL and Warning Letter
at the Boca Facility while owned and operated by Biotest. We have engaged a leading consulting firm with extensive experience in
remediating compliance and inspection issues related to quality management systems that manages a robust team of subject matter
experts in plasma derived products and biologic drugs to assist us in addressing all identified CMC and cGMP issues and deficiencies.
We expect to be inspection-ready by the end of 2017 and subsequently expect to have the FDA inspection classification relative
to the Warning Letter downgraded after the next inspection by the FDA.
·
Increase marketing efforts around Nabi-HB and
relaunch Bivigam.
We plan to increase our marketing efforts and attend relevant medical conferences throughout the remainder
of 2017 and 2018, raising awareness of the risks associated with Hepatitis B and the benefits and efficacy of Nabi-HB. Similarly,
we plan to relaunch Bivigam following the submission and review by the FDA of a Prior Approval Supplement ("PAS"),
which will detail our optimized Bivigam manufacturing process.
36
·
Obtain FDA approval of RI-002 as a treatment
for PIDD
. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment of PIDD. In July
2016, the FDA issued the CRL. The CRL did not cite any concerns with the clinical safety or efficacy data for RI-002 submitted
in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA approval of RI-002. In connection
with our remediation efforts at the Boca Facility, we anticipate that we will be in a position to refile our BLA for RI-002 in
mid-2018.
·
Commercialize RI-002 as a treatment for PIDD
.
We plan to enhance our recruiting initiatives and expand our existing specialty commercial sales force to market RI-002 to hospitals,
physician offices/clinics, and other specialty treatment and infusion center organizations. We also anticipate staffing our company
with additional personnel for patient support, medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party
reimbursement, inventory and logistics, human resources, and financial and operational management. We may also use a network of
national distributors to fulfill orders for RI-002.
·
Expand RI-002's FDA-approved uses
.
If RI-002 is approved by the FDA as a treatment for PIDD, we plan to evaluate the clinical and regulatory paths to grow the RI-002
franchise through expanded FDA-approved uses. We believe that there may be patient populations beyond PIDD that would derive clinical
benefit from RI-002, some of which may be eligible for orphan status. We plan to leverage our previously conducted randomized,
double-blind, placebo-controlled Phase II clinical trial evaluating RI-001, RI-002's predecessor product candidate, in immune-compromised,
RSV-infected patients to explore RI-002 for the treatment of RSV.
·
Expand our pipeline with additional plasma-derived
therapeutics
. Our core competency is in the development, manufacturing, testing and commercialization of plasma-derived
therapeutics. We believe there are a number of under-addressed medical conditions for which plasma-derived therapeutics may be
beneficial. Utilizing our intellectual property patents, which include our proprietary testing assay and other standardization
methods and technologies, we have identified potential new product candidates that we may advance into preclinical activities in
the near term.
·
Develop and expand ADMA BioCenters
. In order to maintain
partial control of our raw material supply as well as generate revenues through additional sources, we operate ADMA BioCenters,
a subsidiary that manages plasma collection facilities in the U.S. These facilities hold FDA licenses, along with GHA and KMFDS
certifications. Under the FDA licenses, ADMA BioCenters may collect normal source plasma and high-titer RSV plasma, with a portion
of the plasma being sold to third-party buyers. We also plan to grow through the creation and licensing of additional ADMA BioCenters
facilities in various regions of the U.S., including the recent construction of our third facility for which we expect to file
our BLA with the FDA by the end of 2017. Additional ADMA BioCenters may allow us to cost-effectively secure additional plasma for
our product manufacturing, and potentially increase revenues through the collection and sale of normal source plasma and other
hyperimmune plasma to third parties.
Summary of Acquisition of Biotest Assets
On January 21, 2017, we and ADMA BioManufacturing entered into
a definitive Master Purchase and Sale Agreement (as amended, restated, supplemented or otherwise modified from time to time, the
"Purchase Agreement") with BPC, and for certain limited purposes set forth in the Purchase Agreement, Biotest AG, BPC's
parent corporation, and Biotest US Corporation, a Delaware corporation and subsidiary of Biotest AG (together with Biotest AG,
the "Biotest Guarantors"), pursuant to which, on June 6, 2017, ADMA BioManufacturing acquired certain assets and assumed
certain liabilities constituting BTBU. BTBU includes (a) the Boca Facility, consisting of two buildings of approximately 126,000
square feet located on approximately 15 acres of land in Boca Raton, and the associated real property, (b) all exclusive rights
to FDA licensed biologics products Nabi-HB, Bivigam and the investigational product Civacir®, (c) in-process inventory with
an agreed-upon value of at least $5.0 million, (d) certain other properties and assets used exclusively in BTBU, and (e) certain
additional assets which relate to both BTBU and Biotest's plasma business, the arrangement with respect to which is documented
in that certain transition services agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing and BPC (the "Transition
Services Agreement").
37
Subject to the terms and conditions of the Purchase Agreement,
(i) upon the closing, ADMA BioManufacturing assumed certain liabilities of BPC related to BTBU, including, without limitation,
related to (x) product liabilities, breach of warranty, product complaints, product returns, post-market commitments, recalls,
adverse event reporting, product deviation reporting, lookbacks, market withdrawals and field corrections or similar claims for
injury to person or property with respect to BTBU or any product of BTBU to the extent such liabilities relate to products manufactured
and sold by ADMA BioManufacturing after the closing (other than inventory transferred to us at the closing, which were allocated
50% to ADMA BioManufacturing and 50% to BPC if not traceable to acts or omissions of a particular party); and (y) other regulatory
matters, whether related to the pre-closing or post-closing period and including any liabilities related to the products of BTBU,
the Warning Letter, noncompliance with applicable laws and legal proceedings related to the foregoing, but excluding such liabilities
that arise out of any fraud, willful misconduct or intentional misrepresentation by BPC prior to the closing (the "Assumed
Liabilities"); (ii) upon the closing, we delivered to BPC the shares of Common Stock and Non-Voting Common Stock comprising
the Biotest Equity Interest; and (iii) on January 1, 2019, pursuant to the terms of a separate purchase agreement entered into
between ADMA BioManufacturing and BPC at the closing, we agreed to sell, transfer and convey to BPC for no additional consideration,
all of our right, title and interest in and to our plasma collection facilities located in the U.S., which are subject to a repurchase
right in favor of us if within five years after January 1, 2019, the Biotest stockholders and its related entities own less than
20% of our issued and outstanding capital stock. As part of the consideration, upon the closing, BPC exercised its right to designate
one director to our Board, which individual is initially Dr. Bernhard Ehmer, and BPC was also granted the right to designate one
observer to our Board. Under certain circumstances, BPC will also be granted the right to designate an additional director to our
Board.
Additionally, on June 6, 2017, BPC (i) delivered to us a capital
contribution of $12.5 million in cash in respect of the Biotest Equity Interest, which capital contribution was contributed by
BPC to ADMA BioManufacturing; and (ii) funded a $15.0 million unsecured subordinated loan to us, which (a) bears interest at a
rate of 6% per annum, payable semiannually in arrears on each of the six-month and twelve-month anniversary dates of the closing
date, (b) has a term of five years and (c) is not subject to any prepayment premium, penalty or other breakage costs (the "Subordinated
Loan Facility"). We are required to repay the Subordinated Loan Facility in full upon certain disposals of BTBU, certain
disposals of shares of ADMA BioManufacturing and other change of control events in relation to ADMA BioManufacturing or certain
liquidation events of the Company. All of ADMA BioManufacturing's obligations under the Subordinated Loan Facility are unconditionally
guaranteed by the Company. The Subordinated Loan Facility contains certain customary affirmative covenants. The Subordinated Loan
Facility also contains certain negative covenants limiting the incurrence by the Company or ADMA BioManufacturing of certain indebtedness,
the entry by the Company and its subsidiaries (including ADMA BioManufacturing) into certain transactions with affiliates and certain
voluntary or optional prepayments by the Company and its subsidiaries of indebtedness that is contractually subordinate in right
of payment to the obligations under the Subordinated Loan Facility. The Subordinated Loan Facility is subordinated to (i) the Company's
existing indebtedness under the Credit Agreement among the Company, the Company's subsidiaries and Marathon, (ii) any refinancing
of the Credit Agreement, in accordance with the terms and conditions of the subordination agreement dated as of October 10,
2017 between Marathon and BPC, and (iii) any additional "Indebtedness" (as defined in the subordinated loan agreement,
dated as of June 6, 2017, by and among the Company, ADMA BioManufacturing and BPC) for borrowed money approved by the Board and
incurred by the Company or ADMA BioManufacturing which is secured solely by a mortgage on the owned real property acquired in connection
with the Biotest Transaction. The Subordinated Loan Facility will rank
pari passu
with all additional indebtedness approved
by the Board and incurred by the Company or ADMA BioManufacturing which is not secured solely by the owned real property acquired
in connection with the Biotest Transaction. If such additional
pari passu
indebtedness is secured, then the Subordinated
Loan Facility will also be secured on a
pari passu
basis. The Subordinated Loan Facility contains certain customary events
of default. If an event of default occurs, BPC will be entitled to take various actions, including the acceleration of amounts
due under the Subordinated Loan Facility.
If we undertake an underwritten equity financing or a private
placement of our equity securities involving at least one unrelated third party, Biotest has agreed to participate pro rata in
accordance with the Biotest Equity Interest up to an aggregate amount equal to up to $12.5 million on a pro-rata basis, which will
be invested as part of this Offering.
On June 6, 2017, the parties also entered into a ten-year plasma
supply agreement, pursuant to which (x) BPC will sell to us high titer Hepatitis B plasma at a specified price (indexed by inflation),
and (y) we will purchase from BPC all Hepatitis B plasma necessary to produce Nabi-HB unless we require more than a specified amount,
in which case we may use alternative sources for the excess quantity. Additionally, on June 6, 2017, we and BPC entered into a
Termination Agreement with respect to the Manufacturing Supply and License Agreement and Master Services Agreement, which included,
effective as of January 21, 2017, a mutual release with respect to any claims related to or arising from any breach or default
under the existing Manufacturing Supply and License Agreement and Master Services Agreement between ADMA BioManufacturing and BPC.
The Purchase Agreement contains customary representations and
warranties of the parties, including, without limitation, with respect to: organization; power and authority; due authorization;
enforceability; capitalization; no conflict; no consents required; no actions; no orders; financial statements; indebtedness; no
undisclosed liabilities; absence of certain changes; taxes; contracts; customers and suppliers; intellectual property; title to
properties; real property; employee benefit plans; employees; insurance; compliance with laws; environmental matters; material
permits; inventory; affiliate transactions; and no brokers.
38
The Purchase Agreement also contains customary covenants and
agreements post-closing, including BPC not to compete with us in certain lines of business for a period of five years following
the June 6, 2017 closing date; BPC and the Biotest Guarantors not to solicit our employees for one year following the closing date;
we and ADMA BioManufacturing not to solicit BPC's employees for one year following the closing date; and BPC not to interfere
with our customers for five years following the closing date.
We and BPC will each indemnify the other party after the closing
for any losses arising from breaches of its representations, warranties, covenants and agreements in the Purchase Agreement. In
addition, ADMA BioManufacturing will indemnify BPC after the closing for any assumed liability, and BPC will indemnify us after
the closing for any excluded asset or excluded liability. The representations, warranties and pre-closing covenants generally survive
for 15 months following the closing of the transaction and each party's indemnification obligations with respect to (a) its
representations and warranties (other than its fundamental representations, which include representations related to taxes, organization,
due authorization, organizational documents, no conflicts, enforceability, title, sufficiency, the Kedrion Contract, brokers, etc.
and ownership of our securities) are subject to a $25,000 mini-basket and $750,000 true deductible; and (b) its representations
and warranties (other than fundamental) and pre-closing covenants are subject to a $25.0 million cap.
In addition, on June 6, 2017, ADMA BioManufacturing and BPC
entered into the Transition Services Agreement, pursuant to which each of ADMA BioManufacturing and BPC agreed to provide transition
services to the other party, including services related to finance, human resources, information technologies, and clinical and
regulatory services for a period of up to 24 months after the closing date; as well as agreements to lease certain laboratory space
within the Boca Facility to BPC for a period of up to 24 months after the closing date.
On June 6, 2017, BPC entered into a standstill agreement with
ADMA, which will limit BPC's ability to control the Company. BPC also agreed to a six month lock-up of the sale of ADMA securities.
Following the consummation of the Biotest Transaction, we believe
we are uniquely positioned to offer a fully vertically integrated commercial plasma products and immune globulin platform in the
U.S.
The Plasma Industry
Primary Immunodeficiency Disease
PIDD is a class of hereditary disorders characterized by defects
in the immune system, due to either a lack of necessary antibodies or a failure of these antibodies to function properly. According
to the World Health Organization, there are over 150 different presentations of PIDD. As patients suffering from PIDD lack a properly
functioning immune system, they typically receive monthly, outpatient infusions of IVIG therapy. Without this exogenous antibody
immune support, these patients would be susceptible to a wide variety of infectious diseases. PIDD has an estimated prevalence
of 1:1,200 in the U.S., or approximately 250,000 people. Of these 250,000 people diagnosed with PIDD in the U.S., approximately
125,000 receive monthly infusions of IVIG and it is estimated that over 300,000 patients worldwide receive monthly IVIG infusions
for PIDD.
As most patients with PIDD present with infections, the differential
diagnosis and initial investigations for an underlying immune defect are typically guided by the clinical presentation. In subjects
with PIDD, individual infections are not necessarily more severe than those that occur in a normal host. Rather, the clinical features
suggestive of an immune defect may be the recurring and/or chronic nature of infections with common pathogens that may result in
end organ damage, such as bronchiectasis. In addition, subjects with PIDD will often respond poorly to standard antimicrobial therapy
or they may have repeated infections with the same pathogen. The virulence of the infecting organism should also be considered,
and a subject's immune competence should be questioned when invasive infections are caused by low virulence or opportunistic
pathogens. For example, infection with the opportunistic pathogens Pneumocystis jiroveci (previously Pneumocystis carinii) or atypical
mycobacteria should prompt an investigation for underlying immunodeficiency. Typical clinical presentations for subjects with PIDD
are:
·
Antibody deficiency and recurrent bacterial infections;
·
T-lymphocyte deficiency and opportunistic infections;
·
Other lymphocyte defects causing opportunistic infections;
·
Neutrophil defects causing immunodeficiency; and
·
Complement deficiencies.
39
PIDD can present at any age from birth to adulthood, posing
a considerable challenge for the practicing physician to know when and how to evaluate a subject for a possible immune defect.
Subjects with marked antibody deficiencies are generally dependent on IVIG therapy for survival. Benefits of adequate IVIG therapy
in subjects not able to produce antibodies normally include a reduction of the severity and frequency of infections, prevention
of chronic lung disease and prevention of enteroviral meningoencephalitis. Several immune globulin products have already been approved
by the FDA.
RI-002, our IVIG product candidate, contains polyclonal antibodies
against various infectious agents (e.g., streptococcus pneumoniae, H. influenza type B, CMV, measles, tetanus, etc.) including
standardized antibodies against RSV. RSV is a common respiratory virus that often presents during the winter months. Nearly all
children will have been infected with RSV by three years of age; however, the immune systems of most healthy children prevent significant
morbidity and mortality. Conversely, in patients who are immune-compromised, such as those with PIDD or who have undergone a hematopoietic
stem cell or solid organ transplant and may be on immunosuppressive drugs or chemotherapy, RSV infection can be associated with
significant morbidity and mortality. Immune-compromised patients historically have a 5% to 15% rate of RSV infection, and, if left
untreated, lower respiratory tract RSV infections in immune-compromised patients can result in a mortality rate of up to 40% of
infected patients. In hematopoietic stem cell transplant, or HSCT, patients, a subset of the immune-compromised patient population
with approximately 25,000 transplants being performed annually in the U.S., it is estimated that about 25% of patients treated
with the current standard of care (aerosolized Ribavirin) will progress to Lower Respiratory Tract Infection ("LRTI")
while 41% of patients untreated with the current standard of care will progress to LRTI.
Plasma - Background, Composition and Manufacturing
Human blood contains a number of components including:
·
Red blood cells – Used to carry oxygen from the lungs to the
body;
·
White blood cells – Used by the immune system to fight infection;
·
Platelets – Used for blood clotting; and
·
Plasma – Used to carry the aforementioned components throughout
the body and provide support in clotting and immunity.
Plasma is the most abundant blood component, representing approximately
55% of total blood volume. Plasma, which is 90% water, is rich in proteins used by the human body for blood clotting and fighting
infection. These proteins account for approximately 7% of plasma's volume. As plasma contains these valuable proteins, plasma
collection and the manufacturing of human plasma-derived therapeutics provide therapeutic benefits for ill patients.
In order to produce plasma-derived therapeutics that can be
administered to ill patients, raw material plasma must be collected from human donors and then manufactured into specialized products.
Plasma is collected from healthy donors at FDA-licensed plasma donation centers. To ensure safety of the collected plasma, all
plasma donations are tested using FDA-approved methods of Nucleic Acid Testing for various infectious diseases, such as HIV or
HCV.
Plasma is collected using a process called "plasmapheresis."
During plasmapheresis, a donor's blood is drawn into a specialized medical device that separates the plasma component through
centrifugation, and then returns the other blood components back into the donor's bloodstream. Plasmapheresis is performed
utilizing an FDA-approved, automated device with a sterile, self-contained collection kit. The plasma that is collected is known
as "normal source plasma." There are over 500 plasma donation centers in the U.S. As noted in a variety of plasma industry
trade reports and related conferences, approximately 35 million liters of source plasma were collected in the U.S. in 2015. In
the U.S., a donor may donate plasma a maximum of two times during any seven-day period, with at least two days in between donations.
Plasma donation centers in the U.S. typically pay donors $25 to $50 per donation and some donors with rare or high antibody levels
can be paid more.
In order to isolate the desired therapeutic elements in normal
source plasma, it must initially undergo a manufacturing process called "fractionation." The process of fractionation
was invented in the 1940's by E.J. Cohn and is referred to as the Cohn method or cold ethanol fractionation. First, the source
plasma undergoes a process called pooling, in which the individual plasma donations are combined into a pooling tank. Second, the
Cohn fractionation method, which is a combination of time, temperature, pH, alcohol concentration and centrifugation, is used to
separate the desired plasma protein components, or "fractions." After fractionation, the separated proteins are then
re-suspended and are treated with a solvent detergent treatment process for viral inactivation. Next, other forms of filtration
(e.g., nanofiltration) are performed as an additional viral removal and viral reduction step. Finally, with the various components
separated and purified, the bulk product is formulated and filled into final, finished vials. During these various steps of manufacturing,
each lot is reviewed and tested for potency and purity prior to being approved for release.
40
The proteins in human plasma fall into four categories: albumin
(60% of protein volume), immune globulins (15% of protein volume), coagulation factors (1% of protein volume), and other proteins
(24% of protein volume) such as alpha-1 proteinase inhibitor, C1 esterase inhibitor, fibrin sealants and fibrinogen. Many of the
other proteins in plasma have yet to be developed into commercial therapies. In the U.S., not only are the plasma collection centers
subject to FDA licensure, but each plasma protein product that is derived and fractionated from plasma must undergo an approval
process with FDA's Center for Biologics Evaluation and Research.
Immune Globulins
In June 2008, the FDA published the FDA Guidance for Industry
outlining the regulatory pathway for the approval of IVIG for the treatment of PIDD
(Guidance for Industry: Safety, Efficacy,
and Pharmacokinetic Studies to Support Marketing of Immune Globulin Intravenous (Human) as Replacement Therapy for Primary Humoral
Immunodeficiency)
.
Immune globulins can be administered in three ways: intramuscularly,
intravenously or subcutaneously. IVIG principally contains antibodies and, as such, provides passive immunization for individuals
who are immune-deficient or who have been exposed to various infectious agents. IVIG is used therapeutically in a variety of immunological
diseases/deficiencies, such as PIDD, idiopathic thrombocytopenic purpura, Guillain-Barré syndrome, Kawasaki disease, bone
marrow transplant, and chronic inflammatory demyelinating polyneuropathy. We are aware that other companies are also evaluating
IVIG in a clinical trial for the treatment of Alzheimer's disease. Additionally, IVIG is also used as therapy in a variety
of other diseases that do not involve primary or secondary immune deficiencies, such as multiple sclerosis, skin disease, and asthma.
These latter uses are referred to as "off-label" or evidence-based uses because the FDA has not approved their use
in these indications and promotion of such uses is not permitted by FDA unless a BLA or BLA supplement with additional data is
approved. Among the various IVIG products, there are only 14 labeled indications approved by the FDA. However, medical literature
identifies at least 150 evidence-based uses for IVIG, of which approximately 60 are currently included on lists of reimbursable
uses by Medicare and other healthcare plans. This provides opportunities for new product development and submissions.
There are two types of immune globulins, standard and hyperimmune.
The difference between standard immune globulins and hyperimmune globulins is that the latter are manufactured using plasma obtained
from donors who have elevated amounts (high-titers) of specific antibodies. These high-titer products can be used to treat and
prevent diseases that present those specific antigens that are reactive with the high-titer antibodies. Hyperimmune products currently
available include Hepatitis B, tetanus, rabies, CMV and RhoD immune globulins.
Currently, the worldwide market for plasma-derived therapeutic
drug products was approximately $15 billion and the U.S. market for all plasma-derived products was approximately $7.8 billion.
IVIG products accounted for approximately $4.8 billion of sales in the U.S. in 2014. IVIG products are used to treat primary immune
deficiencies, certain autoimmune diseases, and other illnesses for immune-compromised patients and certain neuropathy indications.
New research and data, additional labeled indications, an aging population and emerging countries with new markets are all adding
to the worldwide growth of IVIG utilization.
Manufacturing and Supply
In order to produce plasma-derived therapeutics that can be
administered to patients, raw material plasma is collected from healthy donors at plasma collection facilities licensed by the
FDA. ADMA BioCenters operates FDA-licensed, GHA and KMFDS-certified source plasma collection facilities located in the U.S. which
provide us with a portion of our blood plasma for the manufacture of our current products and product candidates. A typical plasma
collection center, such as those operated by ADMA BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma
annually, which may be sold for different prices depending upon the type of plasma, quantity of purchase, and market conditions
at the time of sale. Plasma collected from ADMA BioCenters' facilities that is not used for the manufacture of our current products
and product candidates is sold to third-party customers in the U.S., and other locations where we are approved globally under supply
agreements or in the open "spot" market. As part of the purchase price to acquire the Biotest Assets, we have agreed
to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with the construction
of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for this facility by
the end of 2017.
On June 6, 2017, we and BPC entered into a Termination Agreement
with respect to the Manufacturing Supply and License Agreement and Master Services Agreement, which included, effective as of January
21, 2017, a mutual release with respect to any claims relating to or arising from any breach or default under the existing Manufacturing
Supply and License Agreement and Master Services Agreement between ADMA BioManufacturing and BPC. Under our Manufacturing, Supply
and License Agreement with BPC, we agreed to purchase exclusively from BPC our worldwide requirements of RSV immune globulin manufactured
from human plasma containing RSV antibodies. The term of the agreement was for a period of ten years from January 1, 2013, renewable
for two additional five year periods at the agreement of both parties. We were obligated under this agreement to purchase a minimum
of at least one lot of product during each calendar year after the finished product is approved by the FDA. This number was subject
to increase at our option. As consideration for BPC's obligations under the agreement, we were obligated to pay a dollar
amount per lot of RSV immune globulin manufactured from human plasma containing RSV antibodies, as well as a percentage royalty
on the sales thereof and of RI-002, up to a specified cumulative maximum amount.
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Pursuant to the terms of a Plasma Purchase Agreement with BPC,
we have agreed to purchase from BPC an annual minimum volume of source plasma containing antibodies to RSV to be used in the manufacture
of RI-002. We must purchase a to-be-determined and agreed upon annual minimum volume from BPC, but may also collect high-titer
RSV plasma from up to five wholly-owned ADMA BioCenters. During 2015, BPC and ADMA amended its plasma supply agreement to allow
ADMA the ability to collect its raw material RSV high-titer plasma from other third-party collection organizations, thus allowing
ADMA to expand its reach for raw material supply as we approach commercialization for RI-002. Unless terminated earlier, the agreement
expires in November 2021, after which it may be renewed for two additional five-year periods if agreed to by the parties. Either
party may terminate the agreement if the other party fails to remedy any material default in the performance of any material condition
or obligation under the agreement following notice. Either party may also terminate the agreement, after providing written notice,
if a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership law is filed by or against
the other party, and is not dismissed or stayed, or a receiver or trustee is appointed for all or a substantial portion of the
assets of the other party, or the other party makes an assignment for the benefit of its creditors or becomes insolvent. We may
also terminate the agreement upon written notice if the clinical development of our product candidate is halted or terminated,
whether by the FDA, a Data Safety Monitoring Board, or any other regulatory authority. Upon termination of the agreement, we must
pay for any source plasma already delivered to us and for any source plasma collected under the terms of the agreement. As part
of the closing of the Biotest Transaction, we amended the Plasma Purchase Agreement to extend BPC's annual minimum purchase
requirements of plasma containing antibodies to RSV for ten years through the closing date of the Biotest Transaction.
On June 22, 2012, we entered into a Plasma Supply Agreement
with BPC for the purchase of normal source plasma from ADMA BioCenters' Norcross facility to be used in BPC's proprietary
products' manufacturing, which was subsequently amended on February 25, 2014 and then amended and restated on March 23, 2016.
After the initial term, the agreement may be renewed on an annual basis upon the mutual consent of the parties. In addition to
any other remedy it may have, either party has the right to terminate the agreement if the other party fails to remedy any material
default in the performance of a material condition or obligation under the agreement following written notice. In addition, upon
giving the appropriate written notice, either party may terminate the agreement upon the occurrence of any of the following events:
a proceeding under bankruptcy, reorganization, agreement of debts, insolvency or receivership law is filed by or against the other
party, and is not dismissed or stayed, or a receiver or trustee is appointed for all or a substantial portion of the assets of
the other party, or the other party makes an assignment for the benefit of its creditors or becomes insolvent. Neither party can
assign the agreement or any of its right or obligations thereunder without the express written consent of the other party. However,
with notice to the other party, either party without the other party's consent may assign the agreement to (i) its affiliate,
or (ii) a successor to all or substantially all of the assets related to the business of that party which is involved in the fulfillment
of its obligations under the agreement. Under the agreement, BPC applied to the GHA for, and we have subsequently obtained, GHA
certification.
Historically, a significant amount of our total revenue is attributable
to a single customer, BPC. For the six months ended June 30, 2017, two of our customers, SK and BPC, represented 90% of our total
revenue, with BPC representing 75% of our total revenue and SK representing 15% of our total revenue. Although we expect this concentration
to decrease over the remainder of the year as additional sales of Nabi-HB are reflected in our consolidated financial statements,
these two customers are still expected to account for a significant portion of our revenue generated from ADMA BioCenters.
On June 7, 2012, we entered into a Testing Services Agreement
with Quest Diagnostics Clinical Laboratories, Inc. ("Quest") in which Quest agreed to provide biomarker testing and
related support services for protocol screening and recertification which are exclusive to us. If either party believes the other
party is in material breach of any of their obligations under the agreement, the non-breaching party has the right to terminate
the agreement by providing the breaching party with written notice specifying the material breach(es) and indicating clearly its
intention to terminate the agreement. If the breaching party cures such breach, the non-breaching party's notice is void.
In addition, either party can terminate the agreement without cause upon written notice. All data, test results, studies and other
information generated by Quest in performing services under the agreement will be our sole property. Neither party can assign the
agreement or any of its right or obligations under the agreement without the express written consent of the other party, except
under specified circumstances. Quest agreed and acknowledged that we paid for the development and validation of the testing assay
and as such, the assay is our sole property and shall only be utilized for our benefit.
Marketing, Sales and Market Research
We intend to market and sell our product through our specialty
sales force, distribution relationships and other customary industry methods. We will focus our efforts specifically on the easily
identifiable treatment centers which specialize in the care and management of immune compromised individuals. We estimate that
there are approximately 500 leading specialty programs in the U.S. which have significant patient populations for PIDD, suitable
for treatment with RI-002. We plan to hire our own specialty sales force which will consist of account managers, medical science
liaisons and other normal and customary scientific, medical and detail representatives. Our management and Board has substantial
prior direct marketing, sales and distribution experience with plasma derived drugs, specialty immune globulins and other biological
products. We also anticipate staffing the company with additional personnel for patient support, medical affairs, quality assurance,
regulatory affairs, scientific affairs, third-party reimbursement, supply chain and logistics, human resources, financial and other
operational management positions. As is normal and customary in the plasma products industry, we may also use a network of national
distribution organizations that have specialty divisions that focus on plasma products to fulfill orders for RI-002. We anticipate
that due to certain recent events, including our Biotest Transaction, our current and anticipated plans and intentions will evolve
and change. See "Special Note Regarding Forward-Looking Statements."
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On June 6, 2017, we and BPC entered into a Termination Agreement
with respect to the Manufacturing Supply and License Agreement and Master Services Agreement, which included, effective as of January
21, 2017, a mutual release with respect to any claims related to or arising from any breach or default under the existing Manufacturing
Supply and License Agreement and Master Services Agreement between ADMA BioManufacturing and BPC. Pursuant to our Manufacturing,
Supply and License Agreement, we granted BPC an exclusive license to market and sell RSV antibody-enriched IVIG in Europe and in
selected countries in North Africa and the Middle East, collectively referred to as the Territory, to have access to our testing
services for testing of BPC's plasma samples using our proprietary RSV assay, and to reference (but not access) our proprietary
information for the purpose of BPC seeking regulatory approval for the RSV antibody-enriched IVIG in the Territory. As consideration
for the license, BPC provided us with certain services at no charge and also compensated us with cash payments upon the completion
of certain milestones. BPC was also obligated to pay us an adjustable royalty based on a percentage of revenues from the sale of
RSV antibody-enriched IVIG in the Territory for 20 years from the date of first commercial sale. Additionally, BPC granted us an
exclusive license for marketing and sales in the U.S. and Canada for BPC's Varicella Zoster Immune Globulin, or VZIG, of
which terms terminated upon the closing of the Biotest Transaction.
Competition
Although blood plasma and its derivative proteins are not subject
to patent protection, the FDA recognizes each immune globulin product as unique and generally requires a separate IND clinical
trial and BLA for each as a condition to approval. Regardless of whether competitors are able to develop an assay that can achieve
our level of consistency and reproducibility in providing RSV antibody titer data, we believe they would still be required to validate
and qualify such an assay as well as conduct clinical trials and undergo an FDA review prior to marketing an immune globulin product.
The plasma products industry is highly competitive. We face, and will continue to face, intense competition from both U.S.-based
and foreign producers of plasma products, some of which have lower cost structures, greater access to capital, direct ownership
of manufacturing facilities, greater resources for research and development, and sophisticated marketing capabilities.
These competitors may include: CSL Behring, Grifols Biologicals,
Shire, Octapharma and Kedrion. In addition to competition from other large worldwide plasma products providers, we face competition
in local areas from smaller entities. In Europe, where the industry is highly regulated and health care systems vary from country
to country, local companies may have greater knowledge of local health care systems, more established infrastructures and have
existing regulatory approvals or a better understanding of the local regulatory process, allowing them to market their products
more quickly. Moreover, plasma therapy generally faces competition from non-plasma products and other courses of treatments. For
example, recombinant Factor VIII products compete with plasma-derived products in the treatment of Hemophilia A.
Intellectual Property
During the second quarter of 2015, U.S. Pat. App. Serial No.
14/592,721, entitled 'Compositions and Methods for the Treatment of Immunodeficiency', encompassing our RI-002 product,
was allowed and issued August 18, 2015 as U.S. Patent No. 9,107,906. The '906 patent has a term at least through January
2035 and covers compositions comprising pooled plasma, as well as immunoglobulin prepared therefrom, that contains a standardized,
elevated titer of RSV neutralizing antibodies as well as elevated levels of antibodies specific for one or more other respiratory
pathogens, as well as methods of making and using the compositions. Our proprietary methods allow us to effectively identify and
isolate donor plasma with high-titer RSV neutralizing antibodies and to standardize RI-002's antibody profile, which we believe
may enable us to garner a premium price.
During the third quarter of 2017, U.S. Pat. App. Serial No.
14/790,872, entitled 'Compositions and Methods for the Treatment of Immunodeficiency', encompassing immunotherapeutic
methods of using immune globulin compositions proprietary to ADMA, was allowed and issued July 25, 2017 as U.S. Patent No. 9,714,283.
The '283 patent has a term at least through January 2035.
We also rely on a combination of patents, trade secrets and
nondisclosure and non-competition agreements to protect our proprietary intellectual property and will continue to do so. We also
seek to enhance and ensure our competitive position through a variety of means, including our unique and proprietary plasma donor
selection criteria, our proprietary formulation methodology for plasma pooling and the proprietary reagents, controls, testing
standards, standard operating procedures and methods we use in our anti-RSV microneutralization assay. While we intend to defend
against threats to our intellectual property, litigation can be costly and there can be no assurance that our patent will be enforced
or that our trade secret policies and practices or other agreements will adequately protect our intellectual property. We seek
to preserve the integrity and confidentiality of our data and trade secrets by maintaining physical security of our premises and
physical and electronic security of our information technology systems. These processes, systems, and/or security measures may
be breached, and we may not have adequate remedies as a result of any such breaches. Third parties may also own or could obtain
patents that may require us to negotiate licenses to conduct our business, and there can be no assurance that the required licenses
would be available on reasonable terms or at all.
43
In addition, our trade secrets may otherwise become known or
be independently discovered by competitors. We also seek to protect our proprietary technology and processes, in part, by confidentiality
agreements with our employees, consultants, scientific advisors and contractors. Although we rely, in part, on confidentiality,
nondisclosure and non-competition agreements with employees, consultants and other parties with access to our proprietary information
to protect our trade secrets, proprietary technology, processes and other proprietary rights, there can be no assurance that these
agreements or any other security measures related to such trade secrets, proprietary technology, processes and proprietary rights
will be adequate, will not be breached, that we will have adequate remedies for any breach, that others will not independently
develop substantially equivalent proprietary information or that third parties will not otherwise gain access to our trade secrets
or proprietary knowledge. To the extent that our consultants, contractors or collaborators use intellectual property owned by others
in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. We have filed for other
provisional patent applications with the U.S. which are pending related to expanded hyperimmune globulin products.
Government Regulation and Product Approval
The FDA and comparable regulatory agencies in state and local
jurisdictions and in foreign countries impose substantial requirements upon the testing (preclinical and clinical), manufacturing,
labeling, storage, recordkeeping, advertising, promotion, import, export, marketing and distribution, among other things, of products
and product candidates. If we do not comply with applicable requirements, we may be fined, the government may refuse to approve
our marketing applications or allow us to manufacture or market our products, and we may be criminally prosecuted. We and our manufacturers
may also be subject to regulations under other federal, state, and local laws.
U.S. Government Regulation
In the U.S., the FDA regulates products under the Federal Food,
Drug, and Cosmetic Act (the "FDCA") and related regulations. Our current and anticipated future product candidates
are considered "biologics" under the FDA regulatory framework. The FDA's regulatory authority for the approval of biologics
resides in the Public Health Service Act. However, biologics are also subject to regulation under the FDCA because most biological
products also meet the FDCA's definition of "drugs." Most pharmaceuticals or "conventional drugs" consist
of pure chemical substances and their structures are known. Most biologics, however, are complex mixtures that are not easily identified
or characterized. Biological products differ from conventional drugs in that they tend to be heat-sensitive and susceptible to
microbial contamination. This requires sterile processes to be applied from initial manufacturing steps. The process required by
the FDA before our product candidates may be marketed in the U.S. generally involves the following (although the FDA is given wide
discretion to impose different or more stringent requirements on a case-by-case basis):
·
completion of extensive preclinical laboratory tests, preclinical
animal studies and formulation studies performed in accordance with the FDA's good laboratory practice regulations and other
regulations;
·
submission to the FDA of an IND application which must become effective
before clinical trials may begin;
·
performance of adequate and well-controlled clinical trials meeting
FDA requirements to establish the safety and efficacy of the product candidate for each proposed indication;
·
manufacturing (through an FDA-licensed contract manufacturing organization)
of product in accordance with cGMP to be used in the clinical trials and providing manufacturing information need in regulatory
filings;
·
submission of a BLA to the FDA;
·
satisfactory completion of an FDA pre-approval inspection of the manufacturing
facilities at which the product candidate is produced, and potentially other involved facilities as well, to assess compliance
with cGMP regulations and other applicable regulations; and
·
the FDA review and approval of a BLA prior to any commercial marketing,
sale or shipment of the product.
44
The testing and approval process requires substantial time,
effort and financial resources, and we cannot be certain that any approvals for our product candidates will be granted on a timely
basis, if at all. See "Risk Factors" beginning on page 9.
We submit manufacturing and analytical data, among other information,
to the FDA as part of an IND application. Subject to certain exceptions, an IND becomes effective 30 days after receipt by the
FDA, unless the FDA, within the 30-day time period, issues a clinical hold to delay a proposed clinical investigation due to concerns
or questions about the product or the conduct of the clinical trial, including concerns that human research subjects will be exposed
to unreasonable health risks. In such a case, the IND sponsor and the FDA must resolve any outstanding concerns before the clinical
trial can begin. Our submission of an IND, or those of our collaboration partners, may not result in the FDA allowance to commence
a clinical trial. A separate submission to an existing IND must also be made for each successive clinical trial conducted during
product development. The FDA must also approve certain changes to an existing IND, such as certain manufacturing changes. Further,
an independent institutional review board ("IRB") duly constituted to meet FDA requirements for each medical center
proposing to conduct the clinical trial must review and approve the plan for any clinical trial before it commences at that center
and it must monitor the safety of the study and study subjects until completed. The FDA, the IRB or the sponsor may suspend a clinical
trial at any time on various grounds, including a finding that the subjects or patients are being exposed to an unacceptable health
risk. Clinical testing also must satisfy extensive Good Clinical Practice requirements and regulations for informed consent.
Clinical Trials
For purposes of BLA submission and approval, clinical trials
are typically conducted in the following three sequential phases, which may overlap (although additional or different trials may
be required by the FDA as well):
·
Phase I clinical trials are initially conducted in
a limited population to test the product candidate for safety, dose tolerance, absorption, metabolism, distribution and excretion
in healthy humans or, on occasion, in patients, such as cancer patients.
·
Phase II clinical trials are generally conducted
in a limited patient population to identify possible adverse effects and safety risks, to determine the efficacy of the product
candidate for specific targeted indications and to determine tolerance and optimal dosage. Multiple Phase II clinical trials may
be conducted by the sponsor to obtain information prior to beginning larger and more expensive Phase III clinical trials.
·
Certain Phase III clinical trials are referred to
as pivotal trials. When Phase II clinical trials demonstrate that a dose range of the product candidate is effective and has an
acceptable safety profile, Phase III clinical trials are undertaken in large patient populations to provide substantial evidence
of reproducibility of clinical efficacy results and to further test for safety in an expanded and diverse patient population at
multiple, geographically dispersed clinical trial sites.
In addition, under the Pediatric Research Equity Act of 2003,
a BLA application or supplement for a new active ingredient, new indication, new dosage form, new dosing regimen, or new route
of administration must contain data that is adequate to assess the safety and effectiveness of the drug for the claimed indications
in all relevant pediatric subpopulations, and to support dosing and administration for each pediatric subpopulation for which the
product is safe and effective, unless the applicant has obtained a waiver or deferral. In 2012, the Food and Drug Administration
Safety and Innovation Act amended the FDCA to require that a sponsor who is planning to submit such an application submit an initial
Pediatric Study Plan ("PSP") within sixty days of an end-of-phase 2 meeting or as may be agreed between the sponsor
and the FDA. The FDA may, on its own initiative or at the request of the applicant, grant deferrals for submission of data or full
or partial waivers. The FDA and the sponsor must reach agreement on the PSP.
In some cases, the FDA may condition continued approval of a
BLA on the sponsor's agreement to conduct additional clinical trials, or other commitments. Such post-approval studies are
typically referred to as Phase IV studies.
Biological License Application
The results of product candidate development, preclinical testing
and clinical trials, together with, among other things, detailed information on the manufacture and composition of the product
and proposed labeling, and the payment of a user fee, are submitted to the FDA as part of a BLA. The FDA reviews all BLAs submitted
before it accepts them for filing and may reject the filing as inadequate to merit review or may request additional information
to be submitted in a very short time frame before accepting a BLA for filing. Once a BLA is accepted for filing, the FDA begins
an in-depth review of the application.
45
During its review of a BLA, the FDA may refer the application
to an advisory committee of experts for their review, evaluation and recommendation as to whether the application should be approved,
which information is taken into consideration along with the FDA's own review findings. The FDA may refuse to approve a BLA
and issue a CRL if the applicable regulatory criteria are not satisfied. A CRL may also require additional clinical or other data,
including one or more additional pivotal Phase III clinical trials. Even if such requested data are submitted, the FDA may ultimately
decide that the BLA does not satisfy the criteria for approval and issue a denial of the BLA. Data from clinical trials are not
always conclusive and the FDA may interpret data differently than we do. If the FDA's evaluations of the BLA and the clinical
and manufacturing procedures and facilities are favorable, the FDA may issue an approval letter or a CRL, which contains the conditions
that must be met in order to secure final approval of the BLA. If a CRL is issued, a company has up to twelve months to resubmit
or withdraw the BLA, unless the FDA allows for an extension, of which ADMA has requested. If a CRL is issued, if and when those
items have been resolved to the FDA's satisfaction, the FDA will issue an approval letter, authorizing commercial marketing
of the product for certain indications. The FDA may withdraw product approval if ongoing regulatory requirements are not met or
if safety problems occur after the product reaches the market. In addition, the FDA may require testing, including Phase IV clinical
trials, and surveillance programs to monitor the effect of approved products that have been commercialized, and the FDA has the
power to prevent or limit further marketing of a product based on the results of these post-marketing programs. Products may be
marketed only for the FDA-approved indications and in accordance with the FDA-approved label. The FDA generally does not allow
drugs to be promoted for "off-label" uses – that is, uses that are not described in the product's approved
labeling and that differ from those that were approved by the FDA. Furthermore, the FDA generally limits approved uses to those
studied in clinical trials. If there are any modifications to the product, including changes in indications, other labeling changes,
or manufacturing processes or facilities, we may be required to submit and obtain FDA approval of a new BLA or BLA supplement,
which may require us to develop additional data or conduct additional preclinical studies and clinical trials, and/or require additional
manufacturing data.
Satisfaction of the FDA regulations and approval requirements
or similar requirements of foreign regulatory agencies typically takes several years, and the actual time required may vary substantially
based upon the type, complexity and novelty of the product or disease. Typically, if a product candidate is intended to treat a
chronic disease, as is the case with RI-002, safety and efficacy data must be gathered over an extended period of time. Government
regulation may delay or prevent marketing of product candidates for a considerable period of time and impose costly procedures
upon our activities. The FDA or any other regulatory agency may not grant approvals for changes in dose form or new indications
for a product candidate on a timely basis, or at all. Even if a product candidate receives regulatory approval, the approval may
be significantly limited to specific disease states, patient populations and dosages. Further, even after regulatory approval is
obtained, later discovery of previously unknown problems with a product may result in restrictions on the product or even complete
withdrawal of the product from the market. Delays in obtaining, or failures to obtain, regulatory approvals for any of our product
candidates would harm our business. In addition, we cannot predict what adverse governmental regulations may arise from future
U.S. or foreign governmental action.
Upon the resubmission of a BLA application, the FDA will classify
the resubmission as Class 1 (triggering a 2-month review goal for the FDA) or Class 2 (triggering a 6-month review goal for the
FDA).
Other Regulatory Requirements
Biological drug products manufactured or distributed pursuant
to FDA approvals are subject to extensive and continuing regulation by the FDA, including, among other things, requirements related
to recordkeeping (including certain electronic record and signature requirements), periodic reporting, product sampling and distribution,
advertising and promotion and reporting of certain adverse experiences, deviations, and other problems with the product. After
approval, most changes to the approved product, such as adding new indications or other labeling claims, are subject to prior FDA
review and approval. There also are annual user fee requirements for any marketed products and the establishments at which such
products are manufactured, as well as new application fees for supplemental applications with clinical data.
Manufacturers must continue to comply with cGMP requirements,
which are extensive and require considerable time, resources and ongoing investment to ensure compliance. In addition, changes
to the manufacturing process generally require prior FDA approval before being implemented and other types of changes to the approved
product, such as adding new indications and additional labeling claims, are also subject to further FDA review and approval.
Manufacturers and certain other entities involved in the manufacturing
and distribution of approved products are required to register their establishments with the FDA and certain state agencies, and
are subject to periodic unannounced inspections by the FDA and certain state agencies for compliance with cGMP and other laws.
The cGMP requirements apply to all stages of the manufacturing process, including the production, processing, sterilization, packaging,
labeling, storage and shipment of the product. Manufacturers must establish validated systems to ensure that products meet specifications
and regulatory standards, and test each product batch or lot prior to its release. For biologics products in particular, for each
product lot the applicant must submit materials related to that lot to the FDA before the lot can be released for distribution.
Changes to the manufacturing process are strictly regulated
and often require prior FDA approval before being implemented. FDA regulations also require investigation and correction of any
deviations from cGMP and impose reporting and documentation requirements upon the sponsor and any third-party manufacturers that
the sponsor may decide to use. Accordingly, manufacturers must continue to expend time, money, and effort in the area of production
and quality control to maintain cGMP compliance.
46
The FDA may impose a number of post-approval requirements as
a condition of approval of an application. The FDA may withdraw a product approval if compliance with regulatory requirements is
not maintained or if problems occur after the product reaches the market. Later discovery of previously unknown problems with a
product, including adverse events of unanticipated severity or frequency, problems with manufacturing processes or failure to comply
with regulatory requirements, may result in restrictions on the product or even complete withdrawal of the product from the market.
Failure to comply with the statutory and regulatory requirements can subject a manufacturer to possible legal or regulatory action,
such as warning letters, suspension of manufacturing, sales or use, seizure of product, injunctive action or possible fines and
other penalties. We cannot be certain that we or our present or future third-party manufacturers or suppliers will be able to comply
with the cGMP regulations and other ongoing FDA regulatory requirements. If we or our present or future third-party manufacturers
or suppliers are not able to comply with these requirements, the FDA may halt our clinical trials, require us to recall a product
from distribution, or withdraw approval of our BLA for that product.
The FDA closely regulates the post-approval marketing and promotion
of products, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored scientific
and educational activities and promotional activities involving the Internet. A company can make only those claims relating to
safety and efficacy that are approved by the FDA. Failure to comply with these requirements can result in adverse publicity, warning
and/or other regulatory letters, corrective advertising and potential major fines and other penalties.
In addition, the distribution of prescription drug products
(including biological drug products) is subject to the Prescription Drug Marketing Act (the "PDMA"), which regulates
the distribution of drugs and drug samples at the federal level, and sets minimum standards for the registration and regulation
of drug distributors by the states. Both the PDMA and state laws limit the distribution of prescription product samples and impose
requirements to ensure accountability in distribution.
From time to time, legislation is drafted, introduced and passed
in Congress that could significantly change the statutory provisions governing the approval, manufacturing and marketing of products
regulated by the FDA. In addition to new legislation, FDA regulations, guidance, and policies are often revised or reinterpreted
by the agency in ways that may significantly affect our business and our product candidates. It is impossible to predict whether
further legislative or FDA regulation or policy changes will be enacted or implemented and what the impact of such changes, if
any, may be.
Regulation of ADMA BioCenters
All blood and blood product collection and manufacturing centers
which engage in interstate commerce must be licensed by the FDA. In order to achieve licensure, the organization must submit a
BLA and undergo pre-licensure inspection. Our wholly-owned subsidiary, ADMA BioCenters, has completed these requirements and holds
FDA licenses, along with GHA and KMFDS certifications, for its Norcross and Marietta facilities. In order to maintain these licenses,
the facilities operated by ADMA BioCenters will be inspected at least every two years. ADMA BioCenters is also required to submit
annual reports to the FDA.
Blood plasma collection and manufacturing centers are also subject
to the Clinical Laboratory Improvement Amendments, or CLIA, state licensure and compliance with industry standards such as the
International Quality Plasma Program. Compliance with state and industry standards is verified by means of routine inspection.
We believe that both of our ADMA BioCenters facilities are currently in compliance with state and industry standards. Delays in
obtaining, or failures to maintain, regulatory approvals for any facilities operated by ADMA BioCenters would harm our business.
In addition, we cannot predict what adverse federal and state regulations and industry standards may arise in the future.
Foreign Regulation
In addition to regulations in the U.S., if we choose to pursue
clinical development and commercialization in the European Union, we will be subject to a variety of foreign regulations governing
clinical trials and commercial sales and distribution of any future product. Whether or not we obtain FDA approval for a product,
we must obtain approval of a product by the comparable regulatory authorities of foreign countries before we can commence clinical
trials or marketing of the product in those countries. The approval process varies from country to country, and the time may be
longer or shorter than that required for FDA approval. The requirements governing the conduct of clinical trials, product licensing,
pricing and reimbursement vary greatly from country to country.
Under European Union regulatory systems, marketing authorizations
may be submitted either under a centralized or mutual recognition procedure. The centralized procedure provides for the grant of
a single marketing authorization that is valid for all European Union member states. The mutual recognition procedure provides
for mutual recognition of national approval decisions. Under this procedure, the holder of a national marketing authorization may
submit an application to the remaining member states. Within 90 days of receiving the applications and assessment report, each
member state must decide whether to recognize approval, refuse it or request additional information.
47
Product Coverage, Pricing and Reimbursement
Significant uncertainty exists as to the coverage and reimbursement
status of any products for which we may obtain regulatory approval. In the U.S., sales of any products for which we may receive
regulatory approval for commercial sale will depend in part on the availability of coverage and reimbursement from third-party
payers. Third-party payers include government authorities, managed care providers, private health insurers and other organizations.
The process for determining whether a payer will provide coverage for a drug product may be separate from the process for setting
the reimbursement rate that the payer will pay for the drug product. Third-party payers may limit coverage to specific drug products
on an approved list, or formulary, which might not include all of the FDA-approved drugs for a particular indication. Moreover,
a payer's decision to provide coverage for a drug product does not imply that an adequate reimbursement rate will be approved.
Adequate third-party reimbursement may not be available to enable us to maintain price levels sufficient to realize an appropriate
return on our investment in product development.
Third-party payers are increasingly challenging the price and
examining the medical necessity and cost-effectiveness of medical products and services, in addition to their safety and efficacy.
In order to obtain coverage and reimbursement for any product that might be approved for sale, we may need to conduct expensive
pharmacoeconomic studies in order to demonstrate the medical necessity and cost-effectiveness of any products, in addition to the
costs required to obtain regulatory approvals. Our product candidates may not be considered medically necessary or cost-effective.
If third-party payers do not consider a product to be cost-effective compared to other available therapies, they may not cover
the product after approval as a benefit under their plans or, if they do, the level of payment may not be sufficient to allow a
company to sell its products at a profit.
The U.S. government and state legislatures have shown significant
interest in implementing cost containment programs to limit the growth of government-paid health care costs, including price controls,
restrictions on reimbursement and requirements for substitution of generic products for branded prescription drugs. For example,
the Healthcare Reform Law contains provisions that may reduce the profitability of drug products, including, for example, increased
rebates for drugs reimbursed by Medicaid programs, extension of Medicaid rebates to Medicaid managed care plans, mandatory discounts
for certain Medicare Part D beneficiaries and annual fees based on pharmaceutical companies' share of sales to federal health
care programs. Adoption of government controls and measures, and tightening of restrictive policies in jurisdictions with existing
controls and measures, could limit payments for pharmaceuticals.
The marketability of any products for which we receive regulatory
approval for commercial sale may suffer if the government and third-party payers fail to provide adequate coverage and reimbursement.
In addition, an increasing emphasis on cost containment measures in the U.S. has increased and we expect will continue to increase
the pressure on pharmaceutical pricing. Coverage policies and third-party reimbursement rates may change at any time. Even if favorable
coverage and reimbursement status is attained for one or more products for which we receive regulatory approval, less favorable
coverage policies and reimbursement rates may be implemented in the future.
Research and Development
ADMA's expenditures on research and development were approximately
$7.7 million and $7.0 million for the fiscal years ended December 31, 2016 and 2015, respectively, and approximately $2.6 million
and $5.4 million for the six months ended June 30, 2017 and 2016, respectively.
Description of Property
Our headquarters are located in approximately
4,200 square feet of space at 465 State Route 17, Ramsey, New Jersey. Our telephone number is (201) 478-5552. Currently we operate
under a shared services agreement with Areth, LLC ("Areth") for the office, warehouse space and certain related services
and have the ability to cancel this agreement upon 30 days' notice. Areth is a company controlled by Dr. Jerrold B. Grossman,
our Vice Chairman, and Adam S. Grossman, our President and Chief Executive Officer, and we pay Areth monthly fees for the use of
such office space and for other information technology, general warehousing and administrative services. Rent under the shared
services agreement is $16,000 per month. Effective October 1, 2017, rent under the Shared Services Agreement decreased to $10,000
per month.
ADMA BioCenters' facilities are located
in the U.S. The combined facilities have a total of approximately 28,000 square feet of space for approximately $30,000 rent per
month. The Norcross, Georgia lease, the term of which was extended by five years on January 1, 2014 pursuant to the first of two
available five-year renewal options, expires on September 30, 2023, and the Marietta, Georgia lease expires on January 31, 2024.
On February 17, 2017, ADMA BioCenters entered
into a lease with Home Center Properties, LLC for approximately 12,167 square feet located in Kennesaw, Georgia. ADMA BioCenters
will utilize the premises as a facility specializing in the collection of human plasma and blood, general office administration
and any other related use. The lease has an initial term of approximately eight years and nine months, commencing on July 1, 2017,
with rent payments commencing on December 1, 2017. ADMA BioCenters' total monthly cost of the premises will range from approximately
$20,000 to $27,000 during the initial term of the lease. Provided that the lease is in full force and effect and that there has
been no event of default beyond the expiration of any applicable notice and cure period, ADMA BioCenters has the option to extend
the term of the lease for two additional periods of five years each, each extension term on the same terms, covenants and conditions
as the lease, with the rent for each extension term to equal the mutually agreed fair market value of the premises on the commencement
of such extension term.
48
On June 6, 2017, in connection with the Biotest Transaction,
we acquired the Boca Facility, an FDA-licensed and GHA-certified immune globulin manufacturing and plasma products production facility
consisting of two buildings of approximately 126,000 square feet located on approximately 15 acres of land in Boca Raton. In connection
with the acquisition of the Biotest Assets, the Company assumed two warehouse leases in Boca Raton for additional storage space
for raw materials, spare parts and other supplies related to its business. These leases expire on December 31, 2017 and July 31,
2018, respectively. The aggregate minimum lease payments for these two leases are approximately $9,000 per month.
Additionally, on January 1, 2019, pursuant to the terms of a
separate purchase agreement entered into between ADMA BioManufacturing and BPC at the closing, we agreed to sell, transfer and
convey to BPC for no additional consideration, all of our right, title and interest in and to our certain plasma collection facilities
located in the U.S., which are subject to a repurchase right in favor of us if within five years after January 1, 2019, the Biotest
stockholders and its related entities own less than 20% of our issued and outstanding capital stock
Legal Proceedings
The Company is currently not involved, but may at times be involved
in various claims and legal actions arising in the ordinary course of our business. Regardless of the outcome, litigation can have
an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Employees
As of September 30, 2017, ADMA Biologics, Inc., together with
its subsidiaries ADMA Plasma Biologics, Inc. ("ADMA Plasma Biologics"), ADMA BioCenters, Inc. and ADMA BioManufacturing,
has a total of 275 employees, including five part-time employees, as well as additional full and part-time consultants and temporary
staff. Over the course of the next year, we anticipate hiring additional full-time employees devoted to sales and marketing, medical
and scientific affairs, general and administrative, as well as hiring additional staff to the plasma collection centers as appropriate.
We intend to use Clinical Research Organizations, or CROs, third parties and consultants to perform our clinical studies and manufacturing,
regulatory affairs and quality control services in addition to corporate marketing, branding and commercialization activities.
Corporate Information
ADMA Biologics, Inc. was founded on June
24, 2004 as a New Jersey corporation and re-incorporated in Delaware on July 16, 2007. We operate through our wholly-owned subsidiaries
ADMA Plasma Biologics, ADMA BioManufacturing and ADMA BioCenters. ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of BTBU. ADMA BioCenters is the Company's source plasma collection business which operates in the U.S. Each
operational ADMA BioCenter, once approved, will have a license with the FDA and may obtain additional certifications from other
regulatory agencies such as the GHA and the KMFDS. ADMA BioCenters supplies ADMA with a portion of its raw material plasma for
the manufacture of its products and product candidates.
We maintain our headquarters at 465 State Route 17, Ramsey,
New Jersey 07446. Our telephone number is (201) 478-5552. Our Florida campus is located at 5800 Park of Commerce Boulevard, Northwest,
Boca Raton, Florida 33487. The Florida telephone number is (561) 989-5800. Our company maintains its website at www.admabiologics.com.
Information contained in, or accessible through any of our websites, does not constitute a part of this prospectus or any accompanying
prospectus supplement or related free writing prospectus.
49
Market PRICE OF AND
DIVIDENDS ON COMMON STOCK AND related stockholder matters
Market Information
Our Common Stock has been listed on the Nasdaq Capital Market
under the symbol "ADMA" since November 10, 2014. Between October 17, 2013 and November 10, 2014, our Common Stock was
quoted on the OTC Bulletin Board (OTCBB) and the OTC Markets (OTCQB) under the same symbol.
The following table sets forth, for each of the calendar periods
indicated, the high and low sales prices for our Common Stock, as reported by Nasdaq:
High
Low
2015
First quarter
$11.95
$7.57
Second quarter
$9.66
$7.51
Third quarter
$10.28
$8.00
Fourth quarter
$9.85
$7.74
2016
First quarter
$8.28
$4.15
Second quarter
$8.85
$5.71
Third quarter
$8.00
$5.00
Fourth quarter
$7.34
$4.34
2017
First Quarter
$5.79
$4.44
Second Quarter
$5.44
$2.93
Third Quarter
$3.95
$2.67
Fourth Quarter (through October 6, 2017)
$3.30
$3.04
There is no established public trading market for shares of
our Non-Voting Common Stock.
As of October 6, 2017, the latest practicable date prior to
the filing of this registration statement, the closing price of our Common Stock on Nasdaq was $3.19.
Holders
As of October 6, 2017, the latest practicable date prior to
the filing of this registration statement, there were seven record holders of our Common Stock, based upon information received
from our transfer agent. However, this number does not include beneficial owners whose shares were held of record by nominees or
broker dealers. We estimate that there are more than 1,000 beneficial owners of our Common Stock. As of October 11, 2017, there
was one record holder of our Non-Voting Common Stock, BPC.
Dividend Policy
We have never paid any cash dividends on our capital stock.
We anticipate that we will retain earnings, if any, to support operations and to finance the growth and development of our business.
In addition, the terms of our Credit Agreement with Marathon precludes us from paying cash dividends. Therefore, we do not expect
to pay cash dividends for the foreseeable future.
50
Management's
Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion of our operating
and financial condition and prospects in conjunction with the financial statements and the notes thereto included elsewhere in
this prospectus. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute
to these differences include those discussed below and elsewhere in this prospectus.
Overview
We are a vertically integrated commercial biopharmaceutical
and specialty immunoglobulin company that manufactures, markets and develops specialty plasma-derived biologics for the treatment
of immune deficiencies and prevention of certain infectious diseases. Our targeted patient populations include immune-compromised
individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. We currently
have two marketed products: Nabi-HB, indicated for the treatment of acute exposure to blood containing HBsAg; and Bivigam, indicated
for the treatment of primary humoral immunodeficiency. We are also developing a pipeline of plasma-derived therapeutics, including
our lead pipeline product candidate, RI-002 for the treatment of PIDD. Our product candidates are intended to be used by physician
specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases.
On June 6, 2017, we completed the acquisition of the Biotest
Assets of BTBU of BPC, which includes two FDA licensed products, Nabi-HB and Bivigam. Nabi-HB and Bivigam are manufactured at the
Boca Facility, an FDA-licensed facility certified by the GHA. In addition to Nabi-HB and Bivigam, we also provide contract manufacturing
for certain historical clients, including the sale of intermediate by-products. Immediately following the acquisition, the Biotest
Assets were contributed into our ADMA BioManufacturing subsidiary.
Concurrent with the closing of the acquisition of the Biotest
Assets, the Company received $12.5 million in cash consideration in addition to a $15.0 million subordinated note from Biotest
at 6% interest payable to BPC with a maturity of five years, and Biotest committed to participate in any future equity offering
or private placement undertaken by the Company in an amount equal to up to $12.5 million on a pro-rata basis, which will be invested
as part of this Offering. At the closing of the Biotest Transaction, the Company delivered to BPC the Biotest Equity Interest.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.
We anticipate that our principal sources of liquidity, along
with the proceeds from this Offering, which includes the equity commitment from Biotest, will only be sufficient to fund our activities
as currently conducted into the second half of 2018. In order to have sufficient cash to fund our operations thereafter and to
continue as a going concern, we will need to raise additional equity or debt financing during the second half of 2018. This time
frame may change based upon how quickly we are able to execute on our quality management systems' remediation plans for the
ADMA BioManufacturing operations, commercial manufacturing ramp-up activities and the various financing options we are exploring.
In order to have sufficient cash to fund our operations thereafter, we will need to raise additional equity or debt capital, and
we cannot provide any assurance that we will be successful in doing so. If our assumptions underlying our estimated expenses prove
to be wrong, we may have to raise additional capital sooner than the end of the second quarter of 2018.
Our Marketed Products
Nabi-HB
Nabi-HB is a hyperimmune globulin that is rich in antibodies
to the Hepatitis B virus. Nabi-HB is a purified human polyclonal antibody product collected from plasma donors who have been previously
vaccinated with a Hepatitis B vaccine. Nabi-HB is indicated for the treatment of acute exposure to blood containing Hepatitis B
surface antigen ("HBsAg"), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBsAg-positive
persons and household exposure to persons with acute Hepatitis B virus infection. Hepatitis B is a potentially life-threatening
liver infection caused by the Hepatitis B virus. It is a major global health problem. It can cause chronic infection and puts people
at high risk of death from cirrhosis and liver cancer. Nabi-HB has a well-documented record of long-term safety and effectiveness
since its initial market introduction. FDA approval for Nabi-HB was received on March 24, 1999. Biotest acquired Nabi-HB from Nabi
Biopharmaceuticals in 2007.
51
Bivigam
Bivigam is an intravenous immune globulin indicated for the
treatment of primary humoral immunodeficiency. This includes, but is not limited to, agammaglobulinemia, common variable immunodeficiency,
Wiskott-Aldrich syndrome and severe combined immunodeficiency. These primary immunodeficiencies ("PIs") are a group
of genetic disorders. Initially thought to be very rare, it is now believed that as many as one in every 1,200-2,000 people has
some form of PI. Bivigam contains a broad range of antibodies similar to those found in normal human plasma. These antibodies are
directed against bacteria and viruses, and help to protect PI patients against serious infections. Bivigam is a purified, sterile,
ready-to-use preparation of concentrated IgG antibodies. Antibodies are proteins in the human immune system that work to defend
against disease. FDA approval for Bivigam was received on December 19, 2012, and sales commenced in the first quarter of 2013.
In December 2016, BPC temporarily suspended the commercial production of Bivigam in order to focus on the completion of planned
improvements to the manufacturing process. Although we expect to resume production in the fourth quarter of 2017, Bivigam
is not expected to be available for sale throughout the remainder of 2017 and FDA clearance for relaunch is expected to occur by
mid-2018.
Our Lead Pipeline Product Candidate – RI-002
We are currently developing our lead pipeline product candidate,
RI-002, for the treatment of PIDD, and have completed a pivotal Phase III clinical trial, which met the primary endpoint of no
SBIs reported. Secondary efficacy endpoints further demonstrated the benefits of RI-002 in the low incidence of infection, therapeutic
antibiotic use, days missed from work/school/daycare, and unscheduled medical visits and hospitalizations. RI-002 is derived from
human plasma blended from normal donors and from donors tested to have high levels of neutralizing titers to RSV. RI-002 is manufactured
using a process called fractionation, which purifies IgG from this blended plasma pool resulting in a final IVIG product enriched
with naturally occurring polyclonal anti-pathogen antibodies (e.g., streptococcus pneumonia, H. influenza type B, CMV, measles,
tetanus). We use our proprietary RSV microneutralization assay to test for standardized levels of neutralizing antibodies to RSV
in the final drug product.
Prior to the closing of the Biotest Transaction, BTBU was our
third-party manufacturer for RI-002. In the third quarter of 2015, the FDA accepted for review our BLA for RI-002 for the treatment
of PIDD. In July 2016, the FDA issued the CRL. The CRL reaffirmed the issues set forth in the Warning Letter that had been issued
to Biotest related to certain issues identified at the Boca Facility, but did not cite any concerns with the clinical safety or
efficacy data for RI-002 submitted in our BLA, nor did the FDA request any additional clinical studies be completed prior to FDA
approval of RI-002. The FDA identified in the CRL, among other things, certain outstanding inspection issues and deficiencies related
to CMC and GMP at the Boca Facility and at certain of our third-party vendors, and requested documentation of corrections for a
number of these issues. The FDA indicated in the CRL that it cannot grant final approval of our BLA until, among other things,
these deficiencies are resolved. Following the completion of the Biotest Transaction, we now have control over the regulatory,
quality, general operations and drug substance manufacturing process and our highest priority is to remediate the outstanding compliance
issues that were identified at the Boca Facility in the Warning Letter, and we plan to be inspection-ready for the FDA by the end
of 2017. We are currently working with a consulting firm consisting of quality management systems and biologics production subject
matter experts in preparation for a re-inspection by the FDA in order to downgrade the FDA inspection classification relative to
the Warning Letter compliance issues as indicated in the CRL. Following downgrading of the FDA inspection classification, we anticipate
that we will be in a position to refile our BLA for RI-002 in mid-2018.
Evaluation of RI-002 in PIDD Patients
PIDD, a genetic disorder that causes a deficient or absent immune
system, is caused by hereditary or genetic defects and can affect anyone regardless of age or gender. PIDD patients are more vulnerable
to infections and more likely to suffer complications from these infections. IVIG is a plasma derived product that is used to prevent
serious infections in patients with PIDD. It is comprised of polyclonal antibodies, which are proteins produced by B-cells that
are used by the body's immune system to neutralize foreign objects such as bacteria and viruses. It is estimated that there
are about 250,000 diagnosed PIDD patients in the U.S., approximately half of whom are treated with IVIG regularly. In the U.S.,
sales of immune globulin products for all its uses were reported to be approximately $4.8 billion in 2014.
The RI-002 pivotal Phase III clinical trial was conducted as
a single arm study in which patients were treated approximately once per month for a period of 12 months plus 90 days for follow
up. Fifty-nine patients were enrolled in nine treatment centers in the U.S. The pivotal Phase III primary endpoint followed published
FDA industry guidance, which provides for a reduction in the incidence of serious infections to less than one per year in each
subject receiving IVIG. The secondary outcome was safety and included other pharmacokinetic, or PK, data collection points including
antibody titers for certain agents, including RSV antibody levels at various time points after infusion.
RI-002 demonstrated positive results in the Phase III study
in patients with PIDD, meeting its primary endpoint, of no SBIs reported. Secondary efficacy endpoints further demonstrated the
benefits of RI-002 in the low incidence of infection, therapeutic antibiotic use, days missed from work/school/daycare, and unscheduled
medical visits and hospitalizations. RI-002 was administered in a total of 793 infusions with zero serious adverse events to 59
patients in nine treatment centers throughout the U.S. These results, included in our BLA, more than meet the requirement specified
by FDA guidance of ≤ 1 SBI per patient-year.
52
On February 22, 2015, at the 2015 American Academy of Allergy,
Asthma & Immunology Annual Meeting, scientific investigators reported on the secondary outcomes that included: a total of 93
days, or 1.66 days per patient per year lost from work or school due to infection; one hospitalization due to an infection of only
five days duration in the entire study and IgG trough levels above those required by the FDA for IVIG products. Additionally, there
was a marked increase in all of the measured specific anti-pathogen antibodies in PK subjects (n=31). The mean of maximum fold
increases in specific antibody levels after infusion of RI-002 ranged from 1.9 fold (S. pneumonia type 19A) to 5.3 fold (RSV),
which were statistically significant fold increases from the pathogen's specific measured baselines. The safety profile of RI-002
is comparable to that of other immunoglobulins.
Rationale for the Potential Evaluation of RI-002 in RSV
Infected Patients
RSV is a common virus that ordinarily leads to mild, cold-like
symptoms in healthy adults and children. In high-risk groups, such as the PIDD population and the other immune-compromised populations,
RSV can lead to a more serious infection and may even cause death. The polyclonal antibodies which are present in RI-002 are expected
to prevent infections in immune-compromised patients.
We previously conducted a randomized, double-blind, placebo-controlled
Phase II clinical trial to evaluate RI-001, RI-002's predecessor product candidate, in immune-compromised, RSV-infected patients.
This trial was conducted with 21 patients in the U.S., Canada, Australia, and New Zealand. The Phase II dose-ranging trial demonstrated
a statistically significant improvement in the change from baseline RSV titers to day 18 in the high dose and low dose treatment
groups when compared with placebo (p=0.0043 and p=0.0268, respectively). The mean fold increase for high dose was 9.24 (95% CI
4.07, 21.02) and the observed mean fold increase for low dose was 4.85 (95% CI 2.22, 10.59). The mean fold change for placebo treated
patients was 1.42 (95% CI 0.64, 3.17). In addition, more patients in the high dose (85.7%) and low dose (42.9%) groups experienced
greater than a four-fold increase from baseline to day 18 in RSV titer levels compared to placebo (0%). There were no serious drug-related
adverse events reported during the trial.
From April 2009 through February 2011, RI-001 was also administered
to 15 compassionate use patients where physicians requested access to the product for treating their patients with documented lower
respiratory tract RSV infections due to the fact that these patients had failed conventional therapeutic interventions. Serum samples
were obtained from 13 patients. Samples showed that patients demonstrated a four-fold or greater rise in RSV antibody titers from
baseline. Serum samples were not obtained from two patients that received Palivizumab. All 11 surviving patients received RI-001
within an average of 4.4 days after the onset of the diagnosis of RSV. The drug was well-tolerated in all 15 patients and there
were no reports of serious adverse events attributable to RI-001. Data from our Phase II clinical trial, compassionate use experience
and data obtained from the evaluation of RI-002 in the infected cotton rat animal model has been presented at various conferences
the past several years.
Based on these results, we intend to evaluate RI-002 for the
treatment of RSV patients following FDA approval, if received, for treatment of PIDD.
Manufacturing and
Supply of
Our Products
In order to produce plasma-derived
immunoglobulin products, raw material plasma is collected from human donors and then manufactured into specialized products. Historically,
plasma for our products and product candidates has been collected from healthy donors at FDA-licensed plasma donation centers.
Source plasma is collected at any one of over 400 FDA-licensed donation centers located throughout the U.S., using a process called
automated plasmapheresis. This sterile, self-contained, automated process separates red blood cells and other cellular components
in the blood, which are then returned to the donor. Source plasma obtained by plasmapheresis is tested and must be negative for
antibodies to human immunodeficiency virus types 1 and 2 (HIV-1/2), HBsAg and HCV, using FDA-licensed serological test procedures.
53
After receipt of the source
plasma, the frozen plasma is thawed and pooled and goes through a process called "fractionation." This process is referred
to as the Cohn method or cold ethanol method of fractionation. During cold ethanol fractionation, classes of proteins are precipitated
and removed by centrifugation or filtration. The fractionation process includes the following steps; precipitation and absorption,
depth filtration, centrifugation and chromatography. Because of the human origin of the raw material and the thousands of donations
required in the fractionation process, the major risk associated to plasma products is the transmission of blood-borne infectious
pathogens. These purification processes have the potential to reduce the viral load. The manufacturing process also utilizes a
multistep viral removal/inactivation system, which further increases the safety of the products. The following manufacturing processes
have been validated for their capability to eliminate or inactivate viruses: precipitation during cold ethanol fractionation, solvent/detergent
treatment, and nanofiltration. Incorporation of these processes in the manufacturing process ensures that the Company's products
comply with the requirements of the FDA and are safe and efficacious.
Sales and Commercialization
of
Our Products
Historically, Nabi-HB
has been sold through independent distributors, drug wholesalers acting as sales agents, specialty pharmacies and other alternate
site providers. In the U.S., third-party drug wholesalers ship a significant portion of Nabi-HB through their distribution centers.
These centers are generally stocked with adequate inventories to facilitate prompt customer service. Sales and distribution methods
include frequent contact by sales and customer service representatives, automated communications via various electronic purchasing
systems, circulation of catalogs and merchandising bulletins, direct-mail campaigns, trade publication presence and advertising.
While we are working towards remediating the Warning Letter
and other CMC and GMP inspection deficiencies and eventually refiling our BLA resubmission for RI-002, we expect to continue our
commercialization efforts for our approved products and plan to bolster these initiatives by hiring a small, specialty sales force
to market Nabi-HB, Bivigam upon its relaunch and, upon approval by the FDA, RI-002 to hospitals, physician offices/clinics, and
other specialty treatment organizations. We also anticipate staffing our company with additional personnel for patient support,
medical affairs, quality assurance, regulatory affairs, scientific affairs, third-party reimbursement, inventory and logistics,
human resources and financial and operational management. If and when we receive FDA approval, we may also use a network of national
distributors to assist with order fulfillment for RI-002 for use by healthcare professionals and hospitals.
Pharmaceutical Pricing
and Reimbursement of
Our Products
All sales of Nabi-HB and
Bivigam in the U.S. depend in part upon the availability of reimbursement from third-party payers. Third-party payers include government
health programs, managed care providers, private health insurers and other organizations. Nabi-HB and Bivigam are reimbursed or
purchased under several government programs, including Medicaid, Medicare Parts B and D, the 340B/Public Health Service program
and pursuant to an existing contract with the Department of Veterans Affairs. Medicaid is a joint state and federal government
health plan that provides covered outpatient prescription drugs for low-income individuals. Under Medicaid, drug manufacturers
pay rebates to the states based on utilization data provided by the states.
Plasma Collection Facilities
Our wholly-owned subsidiary, ADMA BioCenters, operates FDA-licensed,
GHA, and KMFDS, certified source plasma collection facilities located in the U.S., which provide us with a portion of our blood
plasma for the manufacture of our products and product candidates. A typical plasma collection center, such as those operated by
ADMA BioCenters, can collect approximately 30,000 to 50,000 liters of source plasma annually, which may be sold for different prices
depending upon the type of plasma, quantity of purchase, and market conditions at the time of sale. Plasma collected from ADMA
BioCenters' facilities that is not used to manufacture our products or product candidates is sold to third-party customers in the
U.S., and other locations where we are approved globally under supply agreements or in the open "spot" market.
As part of the purchase price to acquire the Biotest Assets,
we have agreed to transfer ownership of the two plasma collection facilities to BPC on January 1, 2019. We are progressing with
the construction of our third plasma collection facility and we expect to file our BLA with the FDA and initiate collections for
this facility by the end of 2017.
Financial Operations Overview
Revenues
Revenues for the three and six months ended June 30, 2017 are
comprised of Nabi-HB product revenues, product revenues from the sale of normal source human plasma collected from our plasma collection
centers segment and license and other revenues which are initially recorded as deferred revenue and amortized into income over
the terms of the respective agreements. In exchange for the out-licensing of RI-002 to market and sell in Europe and selected countries
in North Africa and the Middle East, Biotest has provided us with certain services and a financial payment received in accordance
with the related license agreement and is obligated to pay us certain amounts in the future if certain milestones are achieved.
54
Historically, a significant amount of our total revenue is attributable
to a single customer, BPC. For the six months ended June 30, 2017, two of our customers, SK and BPC, represented approximately
90% of our total revenue, with BPC representing 75% of our total revenue and SK representing 15% of our total revenue. Product
revenues from the sale of human plasma collected at our FDA-licensed plasma collection centers are recognized at the time of transfer
of title and risk of loss to the customer, which occurs, depending on the agreement with the customer, at the time of shipment
or at the time of delivery if we retain the risk of loss during shipment. Revenue from license fees and research and development
services rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been
completed.
Cost of Product Revenue
Cost of product revenue includes manufacturing salaries and
wages, indirect overhead charges and consulting fees associated with remediating the Warning Letter with the FDA, which are expensed
as incurred. As the Boca Facility has not yet resumed production, all operating expenses associated with the facility have been
expensed as incurred since acquisition.
Research and Development Expenses
Research and development ("R&D") expenses consist
of clinical research organization costs, costs related to our clinical trials, consulting expenses relating to regulatory and medical
affairs, quality assurance and control, assay development, ongoing testing costs, drug product manufacturing including the cost
of plasma, plasma storage and transportation costs, as well as wages, benefits and stock-based compensation for employees directly
related to the R&D of RI-002. All R&D costs are expensed as incurred.
The process of conducting preclinical studies, clinical trials
and regulatory activities necessary to obtain FDA approval is costly and time consuming. The probability of success for each product
candidate and clinical trial may be affected by a variety of factors, including, among others, the quality of the product candidate's
early clinical data, investment in the program, competition, regulatory, manufacturing capabilities and commercial viability. As
a result of the uncertainties discussed above, the uncertainties associated with clinical trial enrollments and the risks inherent
in the development process, we are unable to determine the duration and completion costs of current or future clinical stages of
our product candidates or when, or to what extent, we will generate revenues from the commercialization and sale of any of our
product candidates. Development timelines, probability of success and development costs vary widely. For the six months ended June
30, 2017, R&D expenses decreased as compared to the six months ended June 30, 2016 due to lower validation, testing and production
costs related to RI-002.
In connection with the approval of our BLA for Bivigam on December
19, 2012, BTBU committed to perform two additional post-marketing studies. The first is a pediatric study to evaluate the efficacy
and safety of Bivigam in children and adolescents, and the second is a post-authorization safety study to further assess the potential
risk of hypotension and hepatic and renal impairment in Bivigam-treated patients with Primary Humoral Immunodeficiency. These studies
are pending completion, and the costs of the studies will be expensed as they are incurred. We currently expect both studies to
be completed by the end of 2021. However, the timing of the completion of these studies is dependent upon the availability of Bivigam
and the completion of the planned manufacturing process improvements.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A")
expenses consist of costs related to the Biotest Transaction, wages, salaries, stock-based compensation and benefits for senior
management and staff unrelated to R&D, legal fees, accounting and auditing fees, commercialization and marketing activities,
information technology, investor relations fees, rent, maintenance and utilities, insurance, travel and other expenses related
to the general operations of our business. For the three and six months ended June 30, 2017, SG&A expenses primarily increased
as a result of expenses incurred in connection with the Biotest Transaction, including fees paid for legal, accounting, and financial
advisory fees related to the issuance of a fairness opinion and due diligence fees.
Other Income and Expense
Interest income consists of interest earned on our cash and
cash equivalents and short-term investments. Interest expense consists of interest incurred on our notes payable and term loan,
as well as the amortization of end of term fees, back end fees, value of warrants issued, facility and financing fees.
Results of Operations
Six Months Ended June 30, 2017
Compared to Six Months Ended June 30, 2016
Summary table
The following table presents a summary
of the changes in our results of operations for the six months ended June 30, 2017 compared to the six months ended June 30, 2016:
55
Six Months Ended June 30,
Percentage Increase/
2017
2016
(Decrease)
Revenues
$
6,028,272
$
4,395,630
37
%
Cost of product revenue (exclusive of amortization expense shown below)
5,950,306
2,610,662
128
%
Gross profit
77,966
1,784,968
-96
%
Research and development expenses
2,551,136
5,427,601
-53
%
Plasma center operating expenses
3,079,646
2,574,720
20
%
Amortization of intangibles
73,021
—
NM
Selling, general and administrative expenses
8,713,034
3,432,033
154
%
Loss from operations
(14,338,871
)
(9,649,386
)
49
%
Other expense, net
(1,234,587
)
(975,418
)
27
%
Net loss
$
(15,573,458
)
$
(10,624,804
)
47
%
Revenues
We recorded total revenues of $6,028,272 during the six months
ended June 30, 2017 compared to $4,395,630 during the six months ended June 30, 2016. Total revenues include sales of: (i) Nabi-HB
in the amount of $539,223 for 2017, net of chargebacks and discounts, with no comparable amount in 2016, (ii) product revenue of
$5,417,632 for the six months ended June 30, 2017 attributable to our ADMA BioCenters plasma collection centers segment, compared
to product revenue of $4,324,213 for the six months ended June 30, 2016, and (iii) license and other revenue in the amount of $71,417
for each of the six months ended June 30, 2017 and 2016 in accordance with our license agreement with Biotest. The increase in
product revenue of $1,093,419 for the six months ended June 30, 2017 was primarily attributable to increased sales generated from
our plasma supply agreement with SK, under which SK purchases normal source plasma from ADMA BioCenters.
Cost of Product Revenue
Cost of product revenue was $5,950,306
for the six months ended June 30, 2017, and $2,610,662 for the six months ended June 30, 2016, an increase of $3,339,644. Cost
of product revenue for the three and six months ended June 30, 2017 includes approximately $2 million of costs associated with
the Boca Facility, including fees paid to third-party consultants providing remediation services for the Warning Letter. The remainder
of the increase is primarily attributable to the manufacturing of Nabi-HB and increased plasma center revenues.
Research and Development Expenses
R&D expenses were $2,551,136 for the six months ended June
30, 2017, a decrease of $2,876,465 as compared to $5,427,601 for the six months ended June 30, 2016. The decrease in R&D expenses
for the six months ended June 30, 2017 is primarily the result of lower validation, testing and production costs related to RI-002
due to receipt of the CRL from the FDA during the third quarter of 2016.
Plasma Center Operating Expenses
Plasma center operating expenses were $3,079,646 for the six
months ended June 30, 2017, an increase of $504,926 as compared to $2,574,720 for the six months ended June 30, 2016. The increase
in plasma center expenses is attributable to hiring additional staff and increasing the hours of operations at our Marietta location
during the first quarter of 2017.
Selling, General and Administrative
Expenses
SG&A expenses were $8,713,034 for the six months ended June
30, 2017, an increase of $5,281,001 from $3,432,033 for the six months ended June 30, 2016. G&A expenses primarily increased
due to transaction costs of $3,774,971, including fees paid for legal, accounting and financial advisory services related to due
diligence and other costs associated with the acquisition of the Biotest Assets and the issuance of a fairness opinion, as well
as increased employee compensation costs of approximately $500,000. In addition, the inclusion of BTBU resulted in an additional
$969,154 of SG&A expenses in 2017.
Loss from Operations
Our operating loss was $14,338,871 for the six months ended
June 30, 2017, an increase of $4,689,485 from $9,649,386 for the six months ended June 30, 2016. The increase was mainly the result
of the increase in SG&A expenses, as well as lower gross profit attributable to operating costs of the Boca Facility which
were not present in 2016, partially offset by lower R&D expenses.
56
Other Income (Expense); Interest
Expense
Other expense, net was $1,234,587 for the six months ended June
30, 2017, compared to $975,418 for the six months ended June 30, 2016. The increase of $259,169 is primarily related to increased
interest expense, including amortization of debt discount, resulting from the increase of $4,000,000 to our current debt in the
second quarter of 2016 and the note payable to BPC.
Net Loss
Net loss was $15,573,458 for the six months ended June 30, 2017,
an increase of $4,948,654 from $10,624,804 for the six months ended June 30, 2016. The increase was mainly due to the increase
in operating loss and interest expense.
Year Ended December 31, 2016 Compared to Year Ended December
31, 2015
Summary Table
The following table presents a summary of our results of operations
for the year ended December 31, 2016 compared to the year ended December 31, 2015.
Years Ended December 31,
2016
2015
Product revenue
$
10,518,203
$
7,050,283
License and other revenue
142,834
127,350
Total revenues
10,661,037
7,177,633
Cost of product revenue
6,360,761
4,311,461
Research and development
7,688,238
7,015,946
Plasma centers
5,447,691
4,618,065
General and administrative
8,494,742
6,745,968
Total operating expenses
27,991,432
22,691,440
Loss from operations
(17,330,395
)
(15,513,807
)
Interest income
50,317
37,830
Interest expense
(2,239,569
)
(1,842,716
)
Other income
4,496
—
Change in fair value of stock warrants
—
67,860
Loss on extinguishment of debt
—
(719,097
)
Net loss
$
(19,515,151
)
$
(17,969,930
)
Revenues
We recorded total revenue of $10,661,037 during the year ended
December 31, 2016 compared to $7,177,633 during the year ended December 31, 2015. Product revenue was $10,518,203 for the year
ended December 31, 2016, which is attributable to our ADMA BioCenters plasma collection centers segment and derived from the sale
of human source plasma collected in our FDA-licensed, GHA and KMFDS-certified Georgia-based blood plasma collection centers, compared
to product revenue of $7,050,283 for the year ended December 31, 2015. The increase in product revenue of $3,467,920 was primarily
attributable to increased plasma collections and sales from our Marietta plasma center which received FDA approval to sell human
source plasma within the U.S. during the third quarter of 2015. Product revenue for the year ended December 31, 2016 was primarily
attributable to sales made pursuant to our plasma supply agreement with BPC under which BPC purchases normal source plasma from
ADMA BioCenters for their manufacturing, in addition to selling increased quantities of normal source plasma to a second customer.
We sold a majority of the normal source plasma collected from our plasma centers throughout 2016. The normal source plasma and
high-titer RSV plasma we did not sell was allocated to inventory in anticipation of commercial manufacturing. For the years ended
December 31, 2016 and 2015, license and other revenue was $142,834 and $127,350, respectively, which relates to services and financial
payments provided by BPC and Biotest in accordance with our license agreement. We have not generated any revenue from our therapeutics
research and development business.
Cost of Product Revenue
Cost of product revenue was $6,360,761 for the year ended December
31, 2016 and $4,311,461 for the year ended December 31, 2015. The increased cost of product revenues of $2,049,300 for the year
ended December 31, 2016 was directly related to the increase in 2016 product revenues primarily related to our second plasma center.
57
Research and Development Expenses
R&D expenses, which are attributable to our R&D segment,
were $7,688,238 for the year ended December 31, 2016, an increase of $672,292 as compared to $7,015,946 for the year ended December
31, 2015. R&D expenses consist of clinical research organization costs, consulting expenses relating to regulatory affairs,
quality control and manufacturing, assay development and ongoing testing costs, clinical trial costs and fees, drug product manufacturing
including the cost of plasma, plasma storage and transportation costs, as well as wages and benefits for staff directly related
to the research and development of RI-002. R&D expenses increased for the year ended December 31, 2016, as compared to the
year ended December 31, 2015, primarily as a result of an increase in validation, testing and production costs related to RI-002
and an increase in regulatory consulting fees.
Plasma Center Operating Expenses
Plasma center operating expenses were $5,447,691 for the year
ended December 31, 2016, an increase of $829,626 as compared to $4,618,065 for the year ended December 31, 2015. Plasma center
operating expenses consist of: general and administrative plasma center costs; overhead comprised of rent, maintenance, utilities,
wages, stock-based compensation and benefits for center staff, plasma collection supplies, plasma transportation and storage (off-site);
advertising and promotion expenses; and computer software fees related to donor collections. The increase in expenses was primarily
the result of increased plasma collections at our ADMA BioCenters Marietta collection facility, which received FDA approval during
the third quarter of 2015. The increased expenses include higher costs in wages, rent, maintenance and plasma collection supplies
for the year ended December 31, 2016 as compared to the year ended December 31, 2015. We expect that as plasma collection increases,
our operating expenses will also increase accordingly.
General and Administrative Expenses
G&A expenses were $8,494,742 for the year ended December
31, 2016, an increase of $1,748,774 from $6,745,968 for the year ended December 31, 2015. General and administrative expenses consist
of Proposed Acquisition fees, wages and stock-based compensation for our senior management and staff unrelated to research and
development, professional fees for commercialization and marketing consulting, attorneys, accountants and auditors, investor relations,
maintenance and utilities, insurance, information technology, travel and other expenses related to the general operations of the
business. G&A expenses primarily increased as a result of fees incurred for the Proposed Acquisition fees paid for legal, accounting
and financial advisors. The increase was also attributed to consulting services provided to us related to pre-launch, commercial
planning, and market research, along with increased rent expense, higher wages and benefits for employees and consulting fees.
Other Expense, Net
Other expense, net, was $2,184,756 for the year ended December
31, 2016, as compared to $2,456,123 for the year ended December 31, 2015. The decrease of $271,367 is primarily related to a loss
on extinguishment of debt of $719,097, which was recorded in the second quarter of 2015 for the refinancing of an existing loan
with our prior lender, Oxford. Such expenses are comprised of a write-off of deferred financing
costs, end of term fees and prepayment penalties for the repayment of debt to our prior lender, offset by increased interest expense
due to an increase of $4,000,000 to our current debt in the second quarter of 2016, which includes debt discounts amortization
for our new lender's end of term fees, back end fees, value of warrants issued, facility and financing fees.
Net Loss
Net loss increased to $19,515,151 for the year ended December
31, 2016 as compared to $17,969,930 for the year ended December 31, 2015, for the reasons previously stated.
Liquidity and Capital Resources
Overview
As of June 30, 2017, the Company had working capital of $28.6
million, consisting primarily of $25.6 million of cash and cash equivalents, $2.3 million of accounts receivable, $13.2 million
of inventories, $0.8 million of assets held for sale and $2.4 million of prepaid expenses, partially offset by the current portion
of notes payable in the amount of $6.7 million, $4.7 million of accounts payable, $4.1 million of accrued expenses and $0.2 million
of deferred revenue and other current liabilities.
58
We have had limited revenue from operations, we have incurred
cumulative losses of $122.5 million since inception and for the six months ended June 30, 2017 and 2016 we had negative cash flows
from operations of $14.2 million and $10.0 million, respectively. We have funded our operations to date primarily from the sale
of our equity securities, loans from venture debt lenders, acquisition proceeds and loans from our primary stockholders. In May
2016, we completed an underwritten public offering of our Common Stock and we received net proceeds of approximately $12.9 million.
Also in May 2016, we amended our LSA with Oxford and
borrowed an additional $4.0 million. In June 2017, we received $27.5 million in connection with the Biotest Transaction, including
a cash infusion from BPC into the acquired business in the amount of $12.5 million and an unsecured subordinated 6% note payable
to BPC in the amount of $15.0 million. In addition, BPC has provided us with a firm equity commitment to invest an additional $12.5
million in future equity financings of the Company. Our funds are being used and have been used: to conduct clinical trials; to
manufacture drug products; to collect and procure plasma; to test plasma donors for RSV titers; to file our BLA for RI-002; to
conduct pre-launch activities; for commercialization and marketing activities; for the buildout and expansion of our plasma centers;
for expenses related to the Biotest Transaction, remediation of the Warning Letter at the Boca Facility and the remainder for payment
of existing accounts payable; for selling, general and administrative expenses and research and development expenses; and for other
business activities and general corporate purposes.
On October 10, 2017, we entered into the Credit Agreement
with Marathon which provides for the Credit Facility in an aggregate amount of up to $40.0 million, comprised of
the $30.0 million Tranche One Loan and an additional Tranche Two Loan to be made in the maximum principal amount not to
exceed $10.0 million (the "Tranche Two Loan" and, together with the Tranche One Loan, the "Loans"),
which Tranche Two Loan availability is subject to the satisfaction of certain conditions, including, but not limited to,
those described below. The Loans each have a Maturity Date of April 10, 2022, subject to acceleration pursuant to the
Credit Agreement, including upon an Event of Default (as defined in the Credit Agreement). Commencing on October 10, 2020,
and on the first business day of each month, we will pay the Tranche One Loan (and Tranche Two Loan in the event it shall
have been funded) in equal monthly installments of principal based on an amortization schedule of 18 months, subject to
certain conditions in the Credit Agreement. The outstanding principal amounts of the Loans, together with all accrued
interest thereon, shall be due on the Maturity Date. On October 10, 2017, we (i) used approximately $17.0 million of
the Tranche One Loan to retire and pay in full our existing credit facility with Oxford and the obligations thereunder
in accordance with the terms of the LSA with Oxford, (ii) used  $5.5 million of the Tranche One Loan to pre-fund
a debt service reserve account in accordance with the terms of the Credit Agreement, and (iii) paid diligence fees, legal
and other expenses associated with the Credit Facility in the amount of approximately $1.5 million, which fees exclude a
deferred facility fee to Marathon equal to 9.20% of the Tranche One Loan payable at maturity. We intend to use the remaining
proceeds of approximately $6.0 million for the continued remediation of the issues identified in the CRL and the Warning
Letter and for general corporate purposes. Among other conditions set forth in the Credit Agreement, the obligation of
Marathon to make the Tranche Two Loan is subject to the satisfaction of certain conditions related to FDA approval for
specified products and our financial condition, including, without limitation, the following: (a) (i) the FDA must validate
the improved manufacturing process of Bivigam and (ii) not less than $500,000 in net revenue must be generated in calendar
year of 2018 of from the sale in the U.S. of Bivigam; or (b) (i) the FDA must approve the commercialization of our lead
pipeline product candidate, RI-002 and (ii) not less than $500,000 in net revenue must be generated in calendar year of 2019
from the sale in the U.S. of RI-002. Borrowings under the Credit Agreement will bear interest at a rate per annum equal to
LIBOR plus 9.50% with a 1% LIBOR floor; provided, however, that in the event that we achieve sales of not less than
$61.7 million for the 2018 calendar year and the Tranche Two Loan has been funded, then the borrowings under the Credit
Agreement will bear interest at a rate of LIBOR plus 7.75% with a 1% LIBOR floor. Prior to October 10, 2020, we will only pay
interest on the Loans. During an Event of Default under the Credit Agreement, the outstanding amount of indebtedness under
the Credit Agreement will bear interest at a rate per annum equal to the interest rate then applicable to the borrowings
under the Credit Agreement plus 5% per annum. The Loans are secured by substantially all of our assets, including our
intellectual property. Events of Default include, among others, non-payment of principal, interest, or fees, violation of
covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults
to material contracts and events constituting a change of control. The occurrence of an Event of Default could result in,
among other things, the termination of commitments under the Credit Facility, the declaration that all outstanding Loans are
immediately due and payable in whole or in part, and Marathon taking immediate possession of, and selling, any collateral
securing the Loans.
As consideration for the Credit Agreement, we issued, on October
10, 2017, a Warrant to Purchase Stock to Marathon (the "Tranche One Warrant"). The Tranche One Warrant has (i) an exercise
price equal to $3.10, which is the trailing 10-day VWAP of our Common Stock prior to October 10, 2017, and (ii) an expiration
date of October 10, 2024. The Tranche One Warrant is exercisable for 338,710 shares of our Common Stock, or 3.5% of the Tranche
One Loan. In the event that the Tranche Two Loan is issued to us, we shall issue an additional Warrant to Purchase Stock to Marathon
(the "Tranche Two Warrant") to purchase such number of shares of Common Stock equal to 3.5% of the Tranche Two Loan,
which shall have an exercise price equal to the trailing 10-day VWAP of the Common Stock prior to the issuance date of the Tranche
Two Warrant and an expiration date equal to the seven year anniversary of the issuance of the Tranche Two Warrant.
Future Financing Needs
We expect to continue to spend substantial amounts on product
development, quality and regulatory activities, procuring raw material plasma, manufacturing, conducting clinical trials for our
product candidates and purchasing clinical trial materials from our suppliers. We currently anticipate, based upon our projected
revenue and expenditures, our cash, cash equivalents, projected revenue and accounts receivable, along with the proceeds from this
Offering, which includes the equity commitment from Biotest, will be sufficient to fund our operations, as currently conducted,
into the second half of 2018. In order to have sufficient cash to fund our operations thereafter and to continue as a going concern,
we will need to raise additional equity or debt financing during the second half of 2018. This time frame may change based upon
how quickly we are able to execute on our quality management systems' remediation plans for the ADMA BioManufacturing operations,
commercial manufacturing scale up activities and the various financing options we are exploring. We currently have no firm commitments
for additional financing other than the equity commitment from Biotest, and we cannot provide any assurance that we will be able
to secure additional financing on terms that are acceptable to us, or at all. Failure to secure any necessary financing in a timely
manner and on commercially reasonable terms could have a material adverse effect on our business plan and financial performance
and we could be forced to delay or discontinue our product development, clinical trial or commercialization activities, delay or
discontinue the approval efforts for any of our potential products, or potentially cease operations. In addition, we could be forced
to reduce or forgo sales and marketing efforts and forgo attractive business opportunities.
59
Furthermore, if the assumptions underlying our estimated expenses
are incorrect, we may have to raise additional capital sooner than anticipated. Because of numerous risks and uncertainties associated
with the research and development and potential future commercialization of our product candidates, we are unable to estimate with
certainty the amounts of increased capital outlays and operating expenditures associated with our anticipated clinical trials and
development activities. Our current estimates may be subject to change as circumstances regarding our business requirements evolve.
We may decide to raise capital through public or private equity offerings and such financings may only be available on unattractive
terms, resulting in significant dilution of stockholders' interests and, in such event, the value and potential future market
price of our Common Stock may decline. We may also decide to obtain debt financing or a bank credit facility or to enter into corporate
collaboration and licensing arrangements. The sale of additional equity or debt securities, if convertible, could result in dilution
to our current stockholders. The incurrence of additional indebtedness would result in increased fixed obligations and could also
result in covenants that would restrict our operations or other future financing alternatives.
Our long-term liquidity depends upon our ability to raise additional
capital, to fund our research and development and commercial programs and meet our obligations on a timely basis. We believe that
we will continue to incur losses and negative cash flows from operating activities through the foreseeable future. As such, these
conditions raise substantial doubt about our ability to continue as a going concern.
Cash Flows
The following table
sets forth a summary of our cash flows for the periods indicated:
Six Months Ended
June 30,
2017
2016
Net cash used in operating activities
$
(14,173,774
)
$
(9,972,107
)
Net cash provided by (used in) investing activities
17,793,627
(4,960,820
)
Net cash provided by financing activities
12,039,289
17,041,141
Net change in cash and cash equivalents
15,659,142
2,108,214
Cash and cash equivalents - beginning of period
9,914,867
10,440,959
Cash and cash equivalents - beginning of period
$
25,574,009
$
12,549,173
Net Cash Used in Operating Activities
The following table illustrates the primary components of our
cash flows from operations:
Six Months Ended
June 30,
2017
2016
Net loss
$
(15,573,458
)
$
(10,624,804
)
Non-cash expenses, gains and losses
1,249,561
1,190,600
Changes in accounts receivable
(1,274,246
)
97,753
Changes in inventories
66,766
(763,553
)
Changes in prepaid expenses
(1,298,991
)
(527,032
)
Changes in accounts payable and accrued expenses
3,147,165
670,209
Other
(490,571
)
(15,280
)
Cash used in operations
$
(14,173,774
)
$
(9,972,107
)
Cash used in operations increased by $4,201,667, mainly due
to the higher net loss, increase in accounts receivable and higher increases in prepaid expenses and security deposits primarily
associated with the acquisition of the Biotest Assets, partially offset by larger increases in accounts payable and accrued expenses.
Net Cash Used in Investing Activities
Net cash provided by investing activities was $17,793,627 for
the six months ended June 30, 2017, which reflects the $12,500,000 of cash received by us in connection with the acquisition of
the Biotest Assets, and the redemptions of short-term investments in the amount of $5,390,184.
60
Net cash used in investing activities was $4,960,820 for the
six months ended June 30, 2016, which was related to the purchase of short-term investments of $4,902,786 and $58,034 in purchases
of computers and equipment.
Net Cash Provided by Financing Activities
Net cash provided by financing activities totaled $12,039,289
for the six months ended June 30, 2017, which primarily consisted of $15,000,000 received from the issuance of the note payable
to BPC, partially offset by repayments on the principal balances of our then-outstanding notes payable to Oxford, which the Company
became obligated to begin repaying over 36 months beginning February 1, 2017 in accordance with the terms of the LSA, as amended.
Net cash provided by financing activities totaled $17,041,141
for the six months ended June 30, 2016, which primarily consisted of $13,072,741 of net proceeds received from the issuance of
Common Stock during the second quarter of 2016 and $4,000,000 received from Oxford during the second quarter of 2016.
Year Ended December 31, 2016
Net Cash Used in Operating Activities
Net cash used in operating activities was $18,268,973 for the
year ended December 31, 2016. The net loss for this period was higher than net cash used in operating activities by $1,246,178,
which was primarily attributable to stock-based compensation of $1,250,074, depreciation and amortization of $469,576 and amortization
of debt discount of $676,943, offset by an increase of inventories of $1,574,373 related to collection and purchases of RSV plasma
and normal source plasma, an increase in accounts payable of $476,826 and accrued expenses of $416,972 primarily related to fees
associated to the Proposed Acquisition.
Net cash used in operating activities was $15,418,404 for the
year ended December 31, 2015. The net loss for this period was higher than net cash used in operating activities by $2,551,526,
which was primarily attributable to increases in inventories of $1,737,010 related to allocating additional plasma to inventory
in preparation for commercial manufacturing activities anticipated in 2016, increased deferred revenue of $1,525,000 from a milestone
payment received from BPC resulting from our BLA filing of RI-002, increases in accounts receivable of $540,507 related to sales
of our normal source plasma, offset by stock-based compensation of $1,711,047, a loss on extinguishment of debt of $719,097 attributable
to the refinancing of previous debt with a new venture debt lender and depreciation and amortization of $469,821.
Net Cash Used in Investing Activities
Net cash provided by investing activities was $904,583 for the
year ended December 31, 2016, which was related to the purchases and redemptions of short-term investments of $977,993 and purchases
of computers and equipment of $73,410, primarily related to our second plasma centers which received FDA approval in September
2015.
Net cash used in investing activities was
$1,741,575 for the year ended December 31, 2015, which was related to the purchases and redemptions of short-term investments of
$1,715,502 and $26,073 in purchases of computers and equipment.
Net Cash Provided by Financing Activities
Net cash provided by financing activities totaled $16,838,298
for the year ended December 31, 2016, which primarily consisted of $14,145,000 received from the issuance of Common Stock during
the second quarter of 2016 offset by equity issuance costs of $1,244,459, proceeds of $4,000,000 received from Oxford during the
second quarter of 2016, offset by payment of debt issue costs to Oxford of $47,104 in addition to amortization of our leasehold
improvement loan for our ADMA BioCenters subsidiary.
Net cash provided by financing activities totaled $10,401,908
for the year ended December 31, 2015, which primarily consisted of $16,000,000 received from the loan from Oxford during the second
quarter of 2015, and $10,257,380 received from the issuance of Common Stock during the first quarter of 2015, offset by the $15,300,781
related to the repayment of a pre-existing loan with Hercules Technology Growth Capital, Inc. ("Hercules"), prepayment
premium to Hercules of $229,512, debt issue costs to Oxford of $228,065 and an end of term fee payment of $132,500 to Hercules
in addition to amortization of our leasehold improvement loan for our ADMA BioCenters subsidiary.
Effect of Inflation
Inflation did not have a significant impact on our net sales,
revenues or net loss in 2014, 2015 or 2016, or for the six months ended June 30, 2017.
61
Recent Accounting Pronouncements
In May 2017, the Financial Accounting Standards Board (the "FASB")
issued Accounting Standard Update ("ASU") No. 2017-09, Modification Accounting for Share-Based Payment Arrangements,
which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types
of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification
accounting under ASC 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions,
and classification of the awards are the same immediately before and after the modification. The ASU is effective for annual reporting
periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is
permitted, including adoption in any interim period. We do not expect this new guidance to have a material impact on our condensed
consolidated financial statements.
In January 2017, the FASB issued ASU No. 2017-01, Business Combinations
– Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating
whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen
for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and
a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning
after December 15, 2017, including interim periods within that reporting period. We adopted this standard in the second quarter
of 2017 and the adoption of this standard did not have a material impact on our condensed consolidated financial statements as
of and for the six months ended June 30, 2017.
In January 2017, the FASB issued ASU 2017-04, Intangibles –
Goodwill and Other (Topic 350), which removes the requirement to compare the implied fair value of goodwill with its carrying amount
as part of step 2 of the goodwill impairment test. As a result, under the ASU, "an entity should perform its annual, or interim,
goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment
charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized
should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively for fiscal
years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed
on testing dates after January 1, 2017. We do not expect this new guidance to have a material impact on our condensed consolidated
financial statements.
In March 2016, the FASB issued ASU No. 2016-09, Improvements
to Employee Share-Based Payment Accounting (Topic 718), which provides for simplification of certain aspects of employee share-based
payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for forfeitures
and classification on the statement of cash flows. We adopted this standard in the first quarter of 2017 and the adoption of this
standard did not have a material impact on our condensed consolidated financial statements as of and for the six months ended June
30, 2017.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic
842), which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their
balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those
fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all leases existing at,
or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating
the impact that the standard may have on our condensed consolidated financial statements and related disclosures.
In November 2015, the FASB issued ASU No. 2015-17, Income Taxes
(Topic 740), Balance Sheet Classification of Deferred Taxes, which includes amendments that require deferred tax liabilities and
assets be classified as non-current in a classified statement of financial position. The amendments in this ASU are effective for
financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning
after December 15, 2018. Earlier application is permitted as of the beginning of an interim or annual reporting period. The amendments
may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We
adopted this standard in the second quarter of 2017. Because we carry a full valuation allowance against our deferred tax assets
as of June 30, 2017 and December 31, 2016, adoption of this standard did not have a material impact on our condensed consolidated
financial statements.
In September 2015, the FASB issued ASU No. 2015-16, Business
Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments, which includes amendments that require
an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined. The amendments in this ASU require that the acquirer record, in the same
period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects,
if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition
date. The amendments in this ASU require an entity to present separately on the face of the income statement or disclose in the
notes the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting
periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in this ASU
are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December
15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date
of the ASU with earlier application permitted for financial statements that have not yet been made available for issuance. We adopted
this standard in the first quarter of 2017 and the adoption of this standard did not have a material impact on our condensed consolidated
financial statements as of and for the six months ended June 30, 2017.
62
In July 2015, the FASB issued ASU 2015-11, Inventory (Topic
330): Simplifying the Measurement of Inventory. The standard requires entities to measure most inventory "at the lower of
cost and net realizable value," thereby simplifying the current guidance under which an entity must measure inventory at
the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable
value). We adopted this standard in the first quarter of 2017 and the adoption of this standard did not have a material impact
on our condensed consolidated financial statements as of and for the six months ended June 30, 2017.
In May 2014, the FASB issued new guidance related to revenue
recognition, ASU 2014-09, Revenue from Contracts with Customers ("ASC 606"), which outlines a comprehensive revenue
recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize revenue
upon transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in exchange
for those goods or services. ASC 606 defines a five-step approach for recognizing revenue, which may require a company to use more
judgment and make more estimates than under the current guidance. The new guidance becomes effective in calendar year 2018 and
early adoption in calendar year 2017 is permitted. Two methods of adoption are permitted: (a) full retrospective adoption, meaning
the standard is applied to all periods presented; or (b) modified retrospective adoption, meaning the cumulative effect of applying
the new guidance is recognized at the date of initial application as an adjustment to the opening retained earnings balance.
In March 2016, April 2016 and December 2016, the FASB issued
ASU No. 2016-08, Revenue From Contracts with Customers (ASC 606): Principal Versus Agent Considerations, ASU No. 2016-10, Revenue
From Contracts with Customers (ASC 606): Identifying Performance Obligations and Licensing, and ASU No. 2016-20, Technical Corrections
and Improvements to Topic 606, Revenue From Contracts with Customers, respectively, which further clarify the implementation guidance
on principal versus agent considerations contained in ASU No. 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts
with Customers, narrow-scope improvements and practical expedients which provides clarification on assessing the collectability
criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. These
standards will be effective for the Company beginning in the first quarter of 2018. Early adoption is permitted.
We will adopt the new standard and related updates effective
January 1, 2018, and we intend to use the modified retrospective method of adoption. We have undertaken an initial impact analysis,
which includes reviewing the terms and conditions of our existing customer contracts and applying the five discrete criteria required
for recognizing revenue as set forth in ASU 2014-09. Based upon our preliminary analysis undertaken through September 30, 2017,
we currently do not expect the new revenue recognition guidance to have a material impact on our consolidated financial statements,
and expect to conclude such analysis by December 31, 2017. We continue to monitor additional changes, modifications, clarifications
or interpretations being undertaken by the FASB, which may, in conjunction with the completion of our overall assessment of the
new guidance, impact our current conclusions.
Critical Accounting Policies and Estimates
On April 5, 2012, the Jumpstart Our Business Startups Act, or
the JOBS Act, was signed into law. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements
for qualifying public companies. We could be an emerging growth company until December 31, 2018, which is the last day of the fiscal
year following the fifth anniversary of the first sale of our common equity securities pursuant to an effective registration statement
under the Securities Act. However, if certain events occur prior to the end of such five-year period, including if we become a
"large accelerated filer," our annual gross revenues exceed $1 billion or we issue more than $1 billion of non-convertible
debt in any three-year period, we would cease to be an emerging growth company prior to the end of such five-year period. As an
"emerging growth company," we may, under Section 7(a)(2)(B) of the Securities Act, delay adoption of new or revised
accounting standards applicable to public companies until such standards would otherwise apply to private companies. We may take
advantage of this extended transition period until the first to occur of the date that we (i) are no longer an "emerging
growth company" or (ii) affirmatively and irrevocably opt out of this extended transition period. We have elected to take
advantage of the benefits of this extended transition period. Our condensed consolidated financial statements may therefore not
be comparable to those of companies that comply with such new or revised accounting standards. Until the date that we are no longer
an "emerging growth company" or affirmatively and irrevocably opt out of the exemption provided by Securities Act Section
7(a)(2)(B), upon issuance of a new or revised accounting standard that applies to our condensed consolidated financial statements
and that has a different effective date for public and private companies, we will disclose the date on which adoption is required
for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard. As an emerging growth
company, we are also exempt from the requirement to have our independent auditors provide an attestation report on our internal
control over financial reporting.
This Management's Discussion and Analysis of Financial
Condition and Results of Operations is based on our condensed consolidated financial statements, which have been prepared in accordance
with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate these estimates and
assumptions, including those described below. We base our estimates on our historical experience and on various other assumptions
that we believe to be reasonable under the circumstances. These estimates and assumptions form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and experiences
may differ materially from these estimates.
63
Some of the estimates and assumptions we have to make under
GAAP require difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, actual
results could differ from those estimates. Due to the estimation processes involved, the following summarized accounting policies
and their application are considered to be critical to understanding our business operations, financial condition and results of
operations.
Stock-Based Compensation
Stock-based compensation cost is measured at grant date, based
on the estimated fair value of the award, and is recognized as expense over the employee's requisite service period on a
straight-line basis.
We account for stock options granted to non-employees on a fair
value basis using the Black-Scholes option pricing method. The noncash charge to operations for non-employee options with vesting
is revalued at the end of each reporting period based upon the change in the fair value of the options and amortized to consulting
expense over the related contract service period.
For purposes of valuing stock options granted to our employees,
non-employees and directors and officers through the six months ended June 30, 2017, we used the Black-Scholes option pricing model.
We granted options to purchase an aggregate of 1,856,595 and 100,984 shares of Common Stock during the six months ended June 30,
2017 and 2016, respectively. To determine the risk-free interest rate, we utilized the U.S. Treasury yield curve in effect at the
time of the grant with a term consistent with the expected term of our awards. The expected term of the options granted is in accordance
with Staff Accounting Bulletins 107 and 110, which is based on the average between vesting terms and contractual terms. The expected
dividend yield reflects our current and expected future policy for dividends on our Common Stock. The expected stock price volatility
for our stock options was calculated by examining the pro rata historical volatilities for similar publicly traded industry peers
and the trading history for our Common Stock. We will continue to analyze the expected stock price volatility and expected term
assumptions.
Research and Development Costs
Our R&D costs are expensed as incurred, including costs
associated with (i) planning and conducting clinical trials; (ii) drug product manufacturing, including the cost of plasma, plasma
storage and transportation costs; (iii) quality testing, validation, regulatory consulting and filing fees; and (iv) employees'
compensation expenses directly related to R&D activities.
Revenue Recognition
Depending on the agreement with the customer, revenue from the
sale of human plasma collected by ADMA BioCenters is recognized at the time of transfer of title and risk of loss to the customer,
which usually occurs at the time of shipment. Product revenue is recognized at the time of delivery if we retain the risk of loss
during shipment. Our current product revenues are substantially attributable to two customers. One customer accounted for 75% and
another customer accounted for 15% of our product revenues for the six months ended June 30, 2017. Although we expect this concentration
to decrease over the remainder of the year as additional sales of Nabi-HB are reflected in our consolidated financial statements,
these two customers are still expected to account for a significant portion of our revenues. Revenue from license fees and research
and development services rendered are recognized as revenue when the performance obligations under the terms of the license agreement
with Biotest have been completed.
Off-Balance Sheet Arrangements
None.
Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
There have been no changes in or disagreements with our accountants
on accounting or financial disclosure matters.
64
Directors,
Executive Officers and Corporate Governance
The following table sets forth our directors
and executive officers, their ages and the positions they hold:
Name
Age
Position
Adam S. Grossman
40
President and Chief Executive Officer, Director
Steven A. Elms
53
Chairman of the Board
Dr. Bernhard Ehmer
62
Director
Bryant E. Fong
44
Director
Dov A. Goldstein, M.D.
49
Director
Jerrold B. Grossman, D.P.S.
69
Founder and Vice Chairman
Lawrence P. Guiheen
66
Director
Eric I. Richman
56
Director
Brian Lenz
45
Vice President, Chief Financial Officer
James Mond, M.D., Ph.D.
71
Executive Vice President, Chief Scientific Officer and Chief Medical Officer
Adam S. Grossman – Founder
,
Director,
President and Chief Executive Officer
Mr. Grossman has been a director of the Company since 2007,
has served as the Company's President and Chief Executive Officer since October 2011 and as the Company's President
and Chief Operating Officer between 2007 and October 2011.  Mr. Grossman has over 20 years of experience in the
blood and plasma industry.  Prior to founding the Company, Mr. Grossman was the Executive Vice President of National
Hospital Specialties and GenesisBPS, a position he held between 1994 and 2011.  He has experience in launching new products,
building and managing national and international sales forces, managing clinical trials and completing numerous business development
transactions.  Previously, he worked at MedImmune, Inc., where he worked on marketing teams for RSV and CMV immunoglobulins
and at the American Red Cross, where he launched new products with the Biomedical Services division.  Mr. Grossman
received a B.S. in Business Administration, with a specialization in International Business and Marketing, from American University.  Mr. Grossman
is the son of Dr. Jerrold B. Grossman, our Vice Chairman. Mr. Grossman was chosen to serve on the Board because, as the Company's
Chief Executive Officer, he is able to provide the Board with critical insight into the day-to-day operations of the Company.
Steven A. Elms – Chairman
Mr. Elms has been a director of
the Company since 2007.  Mr. Elms serves as a Managing Partner at Aisling Capital, which he joined in 2000.  Previously,
he was a Principal in the Life Sciences Investment Banking Group of Hambrecht & Quist.  During his five years at
Hambrecht & Quist, Mr. Elms was involved in over 60 financing and merger and acquisition transactions, helping clients
raise in excess of $3.3 billion in capital.  Prior to joining Hambrecht & Quist, Mr. Elms traded mortgage-backed
securities at Donaldson, Lufkin & Jenrette.  His previous healthcare sector experience includes over two years as
a pharmaceutical sales representative for Marion Laboratories and two years as a consultant for The Wilkerson Group.  Mr. Elms
currently serves on the boards of directors of Cidara Therapeutics, Inc., Loxo Oncology, Inc. and Pernix Therapeutics Holdings
Inc.  Mr. Elms received a B.A. in Human Biology from Stanford University and an M.B.A. from Kellogg Graduate School
of Management at Northwestern University.  Mr. Elms was chosen to serve on the Board because of his valuable experience
in the investment banking industry, particularly with respect to strategic and financing transactions.
Dr. Bernhard Ehmer – Director
Dr. Ehmer, who became a director of
the Company in June 2017, has served as the chairman of the board of management of Biotest since January 2015. Prior to joining
Biotest, from 2008 to 2012, Dr. Ehmer served as the president of ImClone Systems Corporation, a wholly-owned subsidiary of Eli
Lilly and Company, in the U.S., and as a managing director of ImClone Systems International in Germany, respectively. From 2007
to 2008, Dr. Ehmer served as the chief executive officer of Fresenius Biotech in Germany. From 2000 until 2005, Dr. Ehmer headed
the Business Area Oncology of Merck KgaA, Darmstadt ("Merck KGaA"). From 1998 until 2000, Dr. Ehmer was the head of
"Global Clinical Operations" at Merck KGaA. Between 1986 and 1998, Dr. Ehmer held various functions at Boehringer Mannheim
in Germany, Italy and Singapore. Dr. Ehmer holds a degree in medicine and worked in Internal Medicine at the Academic Teaching
Hospital of the University of Heidelberg with a focus on Cardiology/Intensive Care until he joined the pharmaceutical industry
in 1986. Dr. Ehmer was chosen to serve on the Board because of his extensive experience in the plasma and pharmaceutical industries.
65
Bryant E. Fong – Director
Mr. Fong, who became a director
of the Company in May 2012, has over 20 years of experience in the life sciences industry.  Mr. Fong is a founding
Managing Director and General Partner at Biomark Capital Fund, a life sciences private equity firm formed in 2013.  Prior
to Biomark Capital, Mr. Fong was a Managing Director and General Partner of Burrill & Company, where he spent almost 16
years investing in and managing investments in private and public companies in the biotechnology industry.  Some of Mr. Fong's
most notable investments include Pharmasset (VRUS), Novadaq Technologies (NVDQ), Galapagos (GLPG), Ceptaris Therapeutics and Ferrokin
Biosciences.  In addition, Mr. Fong has played key roles in the formation of a number of portfolio companies including
serving as Nora Therapeutic's first president and founder and initial CEO of i2Dx.  Prior to joining Burrill &
Company, Mr. Fong held positions as a research scientist with two early stage biotechnology companies located in the San Francisco
Bay Area.  Mr. Fong currently serves on the boards of directors of a number of private life science companies.  Mr. Fong
earned his B.S. with honors in Molecular and Cell Biology-Biochemistry from the University of California, Berkeley.  He
was nominated by Biomark Capital to serve on the Board because of his extensive experience in the biotechnology industry.
Dov A. Goldstein, M.D. – Director
Dr. Goldstein has been a director
of the Company since 2007.  Dr. Goldstein has been a partner at Aisling Capital since 2008 and was employed as a
principal at Aisling Capital from 2006 to 2008.  Dr. Goldstein served as the Chief Financial Officer of Loxo Oncology,
Inc. between July 2014 and January 2015, and has been its acting Chief Financial Officer since January 2015.  From 2000
to 2005, Dr. Goldstein served as Chief Financial Officer of Vicuron Pharmaceuticals, Inc., which was acquired by Pfizer, Inc.
in September 2005.  Prior to joining Vicuron, Dr. Goldstein was Director of Venture Analysis at HealthCare Ventures.  Dr. Goldstein
also completed an internship in the Department of Medicine at Columbia-Presbyterian Hospital.  Dr. Goldstein serves
as a director of Cempra, Inc. and Esperion Therapeutics, Inc.  Dr. Goldstein received a B.S. from Stanford University,
an M.B.A. from Columbia Business School and an M.D. from Yale School of Medicine.  ADMA believes that Dr. Goldstein's
medical training and his experience in the biopharmaceutical industry as a venture capital investor, as an executive of Vicuron
and a member of the boards of directors of other biopharmaceutical companies, as well as his valuable perspective on ADMA's
business, give him the qualifications and skills to serve as a director.
Jerrold B. Grossman, D.P.S. – Founder
and Vice Chairman
Dr. Grossman has been a director
of the Company since 2007 and has over 35 years of experience in the blood and plasma industry.  He served as the Chief
Executive Officer of ADMA, on a part-time basis, between 2007 and October 2011.  He is the founder and Chief Executive
Officer of Technomed, Inc. (formerly National Hospital Specialties), a wholesaler of specialty biological and pharmaceutical products,
and has served as Chief Executive Officer of that company since 1980.  Additionally, Dr. Grossman is the founder
and President of GenesisBPS, a medical device firm specializing in blood collection and processing equipment, and has served as
President of that company since 1990.  Previously, he has held positions at the New York Blood Center, Immuno-U.S., Inc.
and previously served as the Chairman of the Board of Bergen Community Blood Services.  Currently, Dr. Grossman
is a member of the New Jersey Blood Bank Task Force and a founder and director of the New Jersey Association of Blood Bank Professionals.  He
was a founder and former director of Pascack Bancorp, Inc. which was acquired by Lakeland Bancorp, Inc. in January 2016 and is
currently a member of the Corporate Advisory Council of Lakeland Bancorp Inc.  Dr. Grossman has also provided consulting
services to various government agencies and international organizations.  He received a B.A. in Economics and Finance
from Fairleigh Dickinson University, an M.B.A. from Fairleigh Dickinson University, and his D.P.S. in Business Management from
Pace University.  Dr. Grossman is the father of Adam S. Grossman, our President and Chief Executive Officer.  He
was chosen to serve on the Board because of his role as our founder and past CEO, as well as his more than 35 years of experience
serving a variety of companies and associations in the blood and plasma industry.
Lawrence P. Guiheen – Director
Mr. Guiheen, who became a director
of the Company in July 2012, has over 25 years of experience in the blood and plasma industry.  Since July 2013, Mr. Guiheen
has been Chief Commercial Officer of Kedrion BioPharma, Inc., based in Barga, Italy and Fort Lee, New Jersey.  Kedrion
markets therapies globally for hemophilia, hemolytic disease of the newborn, immune and neurological disorders.  Prior
to July 2013, Mr. Guiheen was principal of Guiheen and Associates, a consulting group that specialized in biopharmaceutical,
pharmaceutical and medical device commercialization.  Before July 2011, Mr. Guiheen was with Baxter Healthcare Corporation
for over 30 years.  Most recently he held the positions of General Manager Global Hemophilia Franchise (from December
2010), President of Global BioPharmaceuticals for Baxter Healthcare's BioScience Division (March 2010 - December 2010) and
President of BioPharmaceuticals US (January 2004 - March 2010).  Mr. Guiheen had been a member of the BioScience
Senior Management Team for over 14 years and has extensive experience leading global and domestic commercial organizations in the
plasma and recombinant therapies.  Mr. Guiheen is past Chairman of the Global Board of Directors for the Plasma
Proteins Therapeutics Association (PPTA) and a past member of the Board of Directors of California Healthcare Institute (CHI).  Mr. Guiheen
holds a Bachelor of Arts degree in business administration from Rutgers University.  Mr. Guiheen was chosen to serve
on the Board because of his extensive experience in the plasma and pharmaceutical industries.
66
Eric I. Richman – Director
Mr. Richman has been a director
of the Company since 2007.  Mr. Richman served as the President and Chief Executive Officer of PharmAthene, Inc.
between October 2010 and March 2015.  He served as the President and interim Chief Executive Officer of PharmAthene between
May and October 2010, as President and Chief Operating Officer between March and May 2010 and as Senior Vice President, Business
Development and Strategic Planning between August 2003 and March 2010.  He has also served on PharmAthene's board
of directors since May 2010.  Prior to joining PharmAthene, Mr. Richman held various commercial and strategic positions
of increasing responsibility over a 12 year period at MedImmune, Inc. from its inception and was Director, International Commercialization
at that company.  Mr. Richman served as director of Lev Pharmaceuticals and Chairman of its Commercialization Committee
and served as a director of American Bank.  Mr. Richman received a Bachelor of Science in Biomedical Science from
the Sophie Davis School of Biomedical Education and a Master of Business Administration from the American Graduate School of International
Management.  Mr. Richman was chosen to serve on the Board because of his experience in the development and commercialization
of plasma-derived products and experience as an executive officer of PharmAthene.
Brian Lenz -
Vice
President
,
Chief Financial Officer
Mr. Lenz joined the Company as
its Vice President and Chief Financial Officer in May 2012.  Mr. Lenz was previously employed by CorMedix Inc.,
a developmental-stage pharmaceutical and medical device company, where he held the position of Chief Financial Officer from February
2010 and Chief Operating Officer and Chief Financial Officer from January 2012 to May 2012.  Prior to joining CorMedix,
Mr. Lenz was the Chief Financial Officer of Arno Therapeutics from July 2008 to February 2010, the Chief Financial Officer
of VioQuest Pharmaceuticals from April 2004 to June 2008, the Controller of Chiral Quest, Inc., a subsidiary of VioQuest Pharmaceuticals,
from October 2003 to March 2004, the Controller of Smiths Detection from July 2000 to October 2003, and a senior auditor at KPMG
LLP from October 1998 to July 2000.  Mr. Lenz received a B.S. from Rider University; an M.B.A. from Saint Joseph's
University and is a licensed Certified Public Accountant.
James Mond, M.D., Ph.D. - Executive
Vice President,
Chief Scientific Officer and Chief Medical Officer
Dr. Mond joined the Company as
the Executive Vice President, Chief Scientific Officer and Chief Medical Officer in July 2012.  Dr. Mond was most
recently Chief Scientific Officer and Executive Vice President at Biosynexus, where he was responsible for the preclinical and
clinical development of three drug candidates from December 1999 through June 2011.  Biosynexus engaged in immunological
and non-immunologic approaches to treat and prevent staphylococcus infections.  Dr. Mond also functioned as its
Chief Medical Officer and had involvement with the Food and Drug Administration in designing clinical studies.  While
at Biosynexus, Dr. Mond served as Chief Medical Officer for a Phase III clinical trial that was run in 93 neonatal intensive
care units in Europe and North America.  Prior to that time, he was professor of Medicine, Rheumatology and Immunology
at the Uniformed Services University of the Health Sciences in Bethesda, Maryland, actively practicing internal medicine, rheumatology
and teaching medical students.  Dr. Mond's laboratory invented a vaccine technology that was licensed to GlaxoSmithKline
and is currently the basis of a number of pediatric vaccines that are commercialized globally.  Dr. Mond also led
the laboratory of Immunology at the Uniformed Services University of the Health Sciences and authored 168 papers published in peer
reviewed scientific journals and 20 invited articles and book chapters.  He has over 20 issued patents in the area of
vaccines.  Dr. Mond received his M.D and Ph.D. from the New York University Medical School.
Family Relationships
Other than with respect to Dr. Jerrold B. Grossman, who is the
father of Adam S. Grossman, our President and Chief Executive Officer and a director, there are no family relationships among any
of our directors, nominees for director and executive officers.
Audit Committee Financial Expert
The
members of our Audit Committee are Eric I. Richman (Chairman), Lawrence P. Guiheen and Bryant E. Fong.  The composition
and responsibilities of the Audit Committee, as reflected in its charter, are intended to be in accordance with applicable rules
of the Securities and Exchange Commission for corporate audit committees and the listing requirements of Nasdaq.  Our
Board has determined that each Audit Committee member meets the definition of an independent director as defined by the applicable
Nasdaq listing standards and the additional independence criteria for members of audit committees specified in the Nasdaq listing
standards and Rule 10A-3 under the Exchange Act.  Our Board has determined that Mr. Richman, the chairman of the
Audit Committee, qualifies as an "audit committee financial expert," as such term is defined by SEC rules
.
67
Code of Ethics
We are committed to quality, innovation
and above all, ethical professional conduct.  Our Code of Ethics and Business Conduct Standards (the "Code")
applies to all directors, officers and employees, including our principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions, and contains the general guidelines for conducting the
business of the Company and its subsidiaries and affiliates.
It is the policy of the Company to
conduct its business in a matter that meets the highest ethical and moral standards to comply strictly with all laws and regulations
governing its operations.  The overall purpose of the Code is to ensure compliance of general guidelines for conducting
the business of the Company consistent with the understanding of Company personnel of the Company's standards of ethical
business practices, laws, rules and regulations.  The Code includes provisions relating to compliance with all laws and
regulations governing its operations, compliance with Regulation FD promulgated under the Exchange Act, conduct regarding business
activity (including conflicts of interest, corporate opportunities, loans, gratuities, gifts and favors, insider trading and tipping,
communications, acting in the best interest of the Company and nondisparagement, confidentiality, fair dealing, antitrust matters,
accuracy of company records and financial representations, record retention, and the Company's commitment to providing a
safe, orderly, diverse and tolerant work environment that is free of any discrimination or harassment ), conduct regarding outside
activity (including responsible citizenship and political activity), conduct regarding the Company's facilities and property
(including professional and personal use of the Company's information systems and assets), waivers of the Code, administration
of the Code (including distribution, the role of supervisors and officers and oversight by the Board) and encouraging contact with
the Company's Corporate Compliance Officer or supervisors with respect to seeking guidance, reporting and investigation of
suspected violations.
All of our directors, officers and
employees are expected to be familiar with the Code and to adhere to those principles and procedures set forth in the Code that
apply to them.  The Company has posted the Code, and will post any amendments to the Code, as well as any waivers that
are required to be disclosed by the rules of the SEC, on the Company's website at www.admabiologics.com.
68
Executive
Compensation
Summary Compensation Table
The following table sets forth, for
the periods indicated, all of the compensation awarded to, earned by or paid to (i) each individual serving as the Company's
principal executive officer during the last completed fiscal year; and (ii) each other individual who served as an executive officer
at the conclusion of the fiscal year ended December 31, 2016 and who received in excess of $100,000 in compensation during such
fiscal year (collectively referred to as the "named executive officers").
Name and Principal Position
Year
Salary
Option Awards
(1)
Non-Equity Incentive Plan Compensation (2)
Other Compensation (3)
Total
Adam S. Grossman
2016
$
492,757
$
51,847
$
212,400
$
7,950
$
764,954
Director, President and Chief Executive Officer (4)
2015
$
476,539
$
547,912
$
211,200
$
7,950
$
1,243,601
Dr. James Mond
2016
$
360,177
$
20,606
$
122,500
$
7,950
$
511,233
Executive Vice President, Chief Scientific Officer and Chief Medical Officer (5)
2015
$
347,115
$
258,842
$
122,500
$
7,950
$
736,407
Brian Lenz
2016
$
360,177
$
17,553
$
122,500
$
7,950
$
508,180
Vice President and Chief Financial Officer (6)
2015
$
346,539
$
216,070
$
122,500
$
7,950
$
693,059
(1) The amount reflected in the
table represents the aggregate grant-date fair value of options computed in accordance with FASB ASC Topic 718 (formerly FAS
123R).  We estimate the fair value of each option on the grant date using the Black-Scholes model with the
following assumptions:  To determine the risk-free interest rate, we utilized the U.S. Treasury yield curve in
effect at the time of grant with a term consistent with the expected term of our awards.  The expected term of the
options granted is in accordance with Staff Accounting Bulletin 107 which is based on the average between vesting term and
contractual term.  The expected dividend yield reflects our current and expected future policy for dividends on our
common stock.  The expected stock price volatility for our stock options was calculated by examining a pro rata
percentage of historical volatilities for similar publicly traded industry peers, along with the trading history for our
Common Stock.  We will continue to analyze the expected stock price volatility and expected term
assumptions.  We have not experienced any material forfeitures of stock options and as such, have not established a
forfeiture rate.  Since the stock options currently outstanding are primarily held by our senior management and
directors, we will continue to evaluate the effects of such future potential forfeitures, as they may arise, to evaluate
our estimated forfeiture rate.  The material terms of the options held are described in the footnotes to the
Outstanding Equity Awards at Fiscal-Year End table.
(2) Reflects annual bonuses for 2016,
which were paid in February 2017, and annual bonuses for 2015, which were paid in February 2016.  Annual bonuses are
determined based on the target bonuses established in each named executive officers' employment agreement (described below),
subject to achievement of pre-established performance goals.
(3) Other compensation consists entirely
of employer contributions to employee accounts under our 401(k) plan in which our employees are entitled to participate.  Such
amounts were earned for services performed in the prior year.
(4) Mr. Grossman has served as
our President and Chief Executive Officer since October 2011.
(5) Dr. Mond has served as our
Executive Vice President, Chief Scientific Officer and Chief Medical Officer since July 2012.
(6) Mr. Lenz has served as our
Vice President and Chief Financial Officer since May 2012.
69
Outstanding Equity Awards at Fiscal
Year-End
The following table sets forth information
regarding unexercised options held by each of the named executive officers as of December 31, 2016.
Option Awards
(Number of Securities
Underlying Unexercised Options)
Name
Number of
Shares
Underlying Exercisable
Options
Number of
Shares
Underlying Unexercisable Options
(1)
Option Exercise Price
Option Expiration Date
Adam S. Grossman
42,021
—
$
2.68
7/16/2017
Director, President and Chief Executive Officer
269,410
—
$
7.56
2/13/2022
70,343
28,966
$
8.50
2/21/2024
28,750
31,250
$
10.80
1/30/2025
11,812
28,688
$
9.37
10/9/2025
—
16,984
$
5.96
1/28/2026
Dr. James Mond
134,705
—
$
7.56
7/18/2022
Executive Vice President, Chief Scientific Officer and Chief Medical Officer
20,960
8,631
$
8.50
2/21/2024
10,541
11,459
$
10.80
1/30/2025
7,875
19,125
$
9.37
10/9/2025
—
6,750
$
5.96
1/28/2026
Brian Lenz
84,190
—
$
7.56
5/1/2022
Vice President and Chief Financial Officer
27,647
11,385
$
8.50
2/21/2024
8,625
9,375
$
10.80
1/30/2025
6,708
16,292
$
9.37
10/9/2025
—
5,750
$
5.96
1/28/2026
(1) With respect to option grants that
have unvested options outstanding, each option grant vests over four years, with 25% vesting on the first anniversary of the grant
date and the remaining 75% vesting in equal monthly installments over the following 36 months of continued employment, subject
to accelerated vesting upon certain terminations of employment in connection with a change in control (as described below under
"Agreements with Executive Officers").
Agreements with Executive Officers
President and Chief Executive Officer
On January 28, 2016, the Company entered
into an amended and restated employment agreement with our President and Chief Executive Officer, Adam S. Grossman, for an initial
term of three years, with automatic three year renewal periods unless notice is provided 90 days in advance of the expiration of
the then-current term.  The amended and restated employment agreement provides that Mr. Grossman is (i) entitled
to a base salary of $480,000 annually, (ii) eligible for an annual cash bonus with a target equal to 50% of Mr. Grossman's
base salary, based upon the attainment of certain performance objectives mutually agreed to by the Board and Mr. Grossman;
and (iii) eligible to participate in our standard benefits package.  Mr. Grossman's amended and restated employment
agreement further provides, in the event (i) that Mr. Grossman is terminated by the Company "without cause" (as
such term is defined under the amended and restated agreement), (ii) that Mr. Grossman resigns for "good reason"
(as such term is defined under the amended and restated agreement), or (iii) of any termination resulting from a "change
of control" (as such term is defined under the amended and restated agreement) in which the existing employment agreement
is not assumed by the successor to the Company, he would be entitled to (in addition to any accrued but unpaid benefits) (A) a
severance payment equal to one year of base salary plus "target bonus" (as such term is defined under the amended and
restated agreement) payable in 12 monthly, equal installments after termination or, if such termination is immediately preceding
or within two years following a change of control, a severance payment equal to 18 months' base salary plus one and a half
times the "target bonus" payable in a lump sum, (B) prior year target bonus (if unpaid), and (C) accelerated vesting
of stock options granted to Mr. Grossman on January 28, 2016, as described in the following sentence.  If Mr. Grossman
(x) is terminated "without cause" or Mr. Grossman resigns for "good reason," in either case immediately
preceding or within two years after a "change in control," such stock options will accelerate in full, and (y) is terminated
"without cause" or Mr. Grossman resigns for "good reason" (or if Mr. Grossman dies or become disabled),
and clause (x) does not apply, the portion of such stock options that would have vested on or before the first anniversary of such
termination had Mr. Grossman remained employed will accelerate.  Furthermore, any payments, awards, benefits or distributions
due to Mr. Grossman under the amended and restated agreement as a result of a transaction described in Section 280G(b)(2)(A)(i)
of the Code, may be subject to a cutback as set forth in the amended and restated agreement.
70
On June 6, 2017, the Board, upon the
recommendation of the Compensation Committee, also approved, contingent upon the closing of the Biotest transaction, the amendment
of Mr. Grossman's amended and restated employment agreement to increase the annual bonus payment amount from up to 50% of
his current salary to up to 55% of his current salary. As of October 11, 2017, this amendment had not yet been entered into between
the Company and Mr. Grossman.
The amended and restated employment
agreement also contains a mutual nondisparagement covenant and customary noncompetition, nonsolicitation, confidentiality, and
intellectual property covenants.
Executive Vice President, Chief
Scientific Officer and Chief Medical Officer
On January 28, 2016, the Company entered
into amended and restated employment agreement with our Executive Vice President, Chief Scientific Officer and Chief Medical Officer,
James Mond, M.D., Ph.D., for an initial term of three years, with automatic three year renewal periods unless notice is provided
90 days in advance of the expiration of the then-current term.  The amended and restated employment agreement provides
that Dr. Mond is (i) entitled to a base salary of $350,000 annually, (ii) eligible for annual bonus payments of up to 35%
of his then-current base salary, based upon the achievement of certain milestones as mutually agreed by our President and Chief
Executive Officer and Dr. Mond and approved by the Company's Compensation Committee (the "Compensation Committee"),
and (iii) eligible to participate in our standard benefits package.
Pursuant to the amended and restated
agreement, if a "change in control" (as such term is defined under the amended and restated agreement) occurs and the
successor to the Company does not assume the amended and restated agreement or, within 12 months following such change in control,
Dr. Mond is terminated "without cause" (as such term is defined under the amended and restated agreement) or Dr. Mond
resigns for "good reason" (as such term is defined under the amended and restated agreement), Dr. Mond would be
entitled to (in addition to any accrued but unpaid benefits) (i) continued base salary and health insurance and welfare benefits
for a period of 12 months (except that such health insurance and welfare benefit continuation will cease if Dr. Mond begins regular,
full-time employment with another employer and is eligible to commence benefits coverage with such employer), (ii) the annual bonus
for the period ending December 31 in which such termination or resignation occurs, and (iii) accelerated vesting of all stock options
granted to him prior to or after the date of the amended and restated agreement.  (If the Company terminates Dr. Mond
"without cause" or Dr. Mond terminates his employment for "good reason," in each case absent a "change
in control," Dr. Mond would receive only the payments described in clause (i) for a period of six months following the
date of such termination.)  If Dr. Mond is terminated as a result of his death, Dr. Mond's estate would
continue to receive his base salary for 60 days following such termination.  Furthermore, any payments, awards, benefits
or distributions due to Dr. Mond under the amended and restated agreement as a result of a transaction described in Section
280G(b)(2)(A)(i) of the Code, may be subject to a cutback as set forth in the amended and restated agreement.
On June 6, 2017, the Board, upon the
recommendation of the Compensation Committee, also approved, contingent upon the closing of the Biotest transaction, the amendment
of Dr. Mond's amended and restated employment agreement to (i) increase the annual bonus payment amount from up to 35% of
his current salary to up to 40% of his current salary, and (ii) increase the severance compensation payable in the event that Dr.
Mond's employment is terminated for "Good Reason" or by the Company without "Cause" (each as defined
in the amended and restated employment agreement) from six months to nine months from the date of termination. As of October 11,
2017, this amendment had not yet been entered into between the Company and Dr. Mond.
The amended and restated employment
agreement also contains a mutual nondisparagement covenant and customary noncompetition, nonsolicitation, confidentiality, and
intellectual property covenants.
Vice President and Chief Financial
Officer
On January 28, 2016, the Company entered
into an amended and restated employment agreement with our Vice President and Chief Financial Officer, Mr. Lenz, for an initial
term of three years, with automatic three year renewal periods unless notice is provided 90 days in advance of the expiration of
the then-current term.  The amended and restated employment agreement provides that Mr. Lenz is (i) entitled to a base
salary of $350,000 annually, (ii) eligible for annual bonus payments of up to 35% of his then-current base salary, based upon the
achievement of certain milestones as mutually agreed by our President and Chief Executive Officer and Mr. Lenz and approved by
the Compensation Committee, (iii) eligible to participate in our standard benefits package, and (iv) entitled to reimbursement
for expenses associated with the maintenance of his CPA license and customary continuing professional education courses.
71
Pursuant to the amended and restated
agreement, if a "change in control" (as such term is defined under the amended and restated agreement) occurs and the
successor to the Company does not assume the amended and restated agreement or, within 12 months following such change in control,
Mr. Lenz is terminated "without cause" (as such term is defined under the amended and restated agreement) or Mr. Lenz
resigns for "good reason" (as such term is defined under the amended and restated agreement), Mr. Lenz would be entitled
to (in addition to any accrued but unpaid benefits) (i) continued base salary and health insurance and welfare benefits for a period
of 12 months (except that such health insurance and welfare benefit continuation will cease if Mr. Lenz begins regular, full-time
employment with another employer and is eligible to commence benefits coverage with such employer), (ii) the annual bonus for the
period ending December 31 in which such termination or resignation occurs, and (iii) accelerated vesting of all stock options granted
to him prior to or after the date of the amended and restated agreement.  (If the Company terminates Mr. Lenz "without
cause" or Mr. Lenz terminates his employment for "good reason," in each case absent a "change in control,"
Mr. Lenz would receive only the payments described in clause (i) for a period of six months following the date of such termination.)  If
Mr. Lenz is terminated as a result of his death, Mr. Lenz's estate would continue to receive his base salary for 60 days
following such termination.  Furthermore, any payments, awards, benefits or distributions due to Mr. Lenz under the amended
and restated agreement as a result of a transaction described in Section 280G(b)(2)(A)(i) of the Code, may be subject to a cutback
as set forth in the amended and restated agreement.
On June 6, 2017, the Board, upon the
recommendation of the Compensation Committee, also approved, contingent upon the closing of the Biotest transaction, the amendment
of Mr. Lenz's amended and restated employment agreement to (i) increase the annual bonus payment amount from up to 35% of
his current salary to up to 40% of his current salary, and (ii) increase the severance compensation payable in the event that Mr.
Lenz's employment is terminated for "Good Reason" or by the Company without "Cause" (each as defined
in the amended and restated employment agreement) from six months to nine months from the date of termination. As of October 11,
2017, this amendment had not yet been entered into between the Company and Mr. Lenz.
The amended and restated employment
agreement also contains a mutual nondisparagement covenant and customary noncompetition, nonsolicitation, confidentiality, and
intellectual property covenants.
Director Compensation
The following table sets forth the
compensation paid to non-executive directors for the year ended December 31, 2016.
Name
Fees Earned
or Paid in
Cash ($)
(1)
Option
Awards ($)
(2) (3)
Total ($)
Steven A. Elms (4)
64,000
26,411
90,411
Jerrold B. Grossman, D.P.S.
64,000
26,411
90,411
Dov A. Goldstein, M.D. (4)
44,000
26,411
70,411
Eric I. Richman
58,000
26,411
84,411
Bryant E. Fong (5)
51,000
26,411
77,411
Lawrence P. Guiheen
52,000
26,411
78,411
(1) The amounts reflected in this column
represent the cash fees earned by non-executive directors for services during 2016.  Fees earned are based on membership
on the Board, committee membership and committee leadership positions.  Please refer to our general policy on compensation
of the members of our Board below in the section entitled "General Policy Regarding Compensation of Directors."
(2) The amounts in this column represent
the aggregate grant date fair value for stock option awards issued during 2016 computed in accordance with FASB ASC Topic 718.  Please
see footnote (2) to the Summary Compensation Table below for relevant assumptions made.  As of December 31, 2016, the
aggregate number of option awards outstanding (vested and unvested) for Mr. Elms was 43,837, for Dr. Grossman was 108,861,
for Dr. Goldstein was 43,837, for Mr. Richman was 68,144, for Mr. Fong was 43,837 and for Mr. Guiheen was 43,837.  These
options vest in equal monthly installments over a 24-month period following the date of grant.
(3) On January 28, 2016, the Company
issued to each non-executive director an option to purchase 9,000 shares of the Company's Common Stock.  Each option
granted to such non-executive directors has an exercise price of $5.96, the closing price of the Company's Common Stock on
Nasdaq on January 28, 2016, and vests in 24 equal monthly installments, becoming fully vested on the second anniversary of the
date of grant. Each option shall terminate on the earlier of (i) February 14, 2027 and (ii) the first anniversary of such director's
ceasing to serve on the Board.
72
(4) Board fees and option grants paid
to Mr. Elms and Dr. Goldstein are assigned to Aisling.
(5) Board fees and option grants paid
to Mr. Fong are assigned to Biomark.
General Policy Regarding Compensation
of Directors
Pursuant to a Board-approved compensation
program, in 2016, each director of the Company was paid an annual cash retainer of $34,000.  The Chairman and Vice-Chairman
were each paid an additional fee of $30,000.  The Chairman of the Audit Committee, the Chairman of the Compensation Committee
and the Chairman of the Governance and Nominations Committee were each paid $15,000, $10,000 and $10,000, respectively.  Members
of the Audit Committee, the Compensation Committee and the Governance and Nominations Committee were each paid a retainer of $8,000,
$5,000 and $4,000, respectively.
On February 14, 2017, the Board approved
a Board compensation program pursuant to which each director of the Company will be paid an annual cash retainer of $35,020.  The
Chairman and Vice-Chairman will each be paid an additional fee of $30,900.  The Chairman of the Audit Committee, the
Chairman of the Compensation Committee and the Chairman of the Governance and Nominations Committee will each be paid $15,450,
$10,300 and $10,300, respectively.  Members of the Audit Committee, the Compensation Committee and the Governance and
Nominations Committee will each be paid a retainer of $8,240, $5,150 and $4,120, respectively.  The Company will disburse
to each member of the Board 50% of each member's annual Board and Committee fees on January 1 and the remaining 50% on July
1 of each year.
Option grant awards to non-employee
directors are determined by the Board in its sole, good faith discretion.  On February 14, 2017, the Compensation Committee,
after consultation with a compensation consultant, recommended to the Board, and the Board approved, the grant of options to purchase
10,000 shares of Common Stock to each of its non-executive directors.  Each option granted to such non-executive directors
has an exercise price of $5.00, the closing price of the Company's Common Stock on Nasdaq on January 28, 2016, and vests
in 24 equal monthly installments, becoming fully vested on the second anniversary of the date of grant.  Each option
shall terminate on the earlier of (i) February 14, 2027 and (ii) the first anniversary of such director's ceasing to serve
on the Board. Additionally, on June 6, 2017, On June 6, 2017, the Board, upon the recommendation of the Compensation Committee,
also approved, contingent and effective upon the closing of the Biotest transaction, the grant of stock options to purchase shares
of the Company's Common Stock, in the following amounts: (i) 583,224 option shares were approved for grant to Mr. Grossman;
(ii) 118,861 option shares were approved for grant to Dr. Grossman; (iii) 78,144 option shares were approved for grant to Mr. Richman;
and (iv) 53,837 option shares were approved for grant to each of Mr. Elms, Dr. Goldstein, Mr. Fong and Mr. Guiheen. Each option
share has an exercise price equal to $3.66, the fair market value of the Common Stock as determined by the closing price of the
Common Stock on the Nasdaq Stock Market on June 6, 2017. Additionally, the options granted to each director shall each vest in
equal monthly installments over 24 months, except the option grant to Mr. Grossman which shall vest over four years with 25% vesting
on the one year anniversary of the date of grant and the remaining 75% vesting monthly in equal installments over the next three
years.
Retirement Benefits
The only retirement benefit that the
Company offers is our 401(k) plan, which is available to all employees.  The Company currently provides a 3% match on
an employee's contributions to the plan, up to the applicable limit set forth in the Internal Revenue Code.
73
Security
Ownership of Certain Beneficial Owners and Management
The following table sets forth information
regarding the beneficial ownership (as such term is defined in Rule 13d-3 under the Exchange Act) of our Common Stock as of October
6, 2017, except as noted below, by:
·
each of our directors;
·
each of our named executive officers (as defined
in Item 402(m)(2) of Regulation S-K);
·
each person, or group of affiliated persons, who
is known by us to beneficially own more than 5% of our Common Stock; and
·
all of our directors and executive officers as a
group.
Shares of our Common Stock subject
to options, warrants, or other rights currently exercisable or exercisable within 60 days of October 6, 2017 are deemed to be beneficially
owned and outstanding for purposes of computing the share ownership and percentage of the person holding such options, warrants
or other rights, but are not deemed outstanding for computing the percentage of any other person.  Except as indicated
in the footnotes below, each holder listed below possesses sole voting and investment power with respect to their shares and such
holder's address is c/o ADMA Biologics, Inc., 465 State Route 17 South, Ramsey, New Jersey 07446.  An asterisk
(*) denotes less than 1%.  The information is not necessarily indicative of beneficial ownership for any other purpose.
Percentage ownership calculations for beneficial ownership are based on 17,202,244 shares of Common Stock outstanding as of October
6, 2017.  This table does not reflect the 8,591,160 shares of outstanding Non-Voting Common Stock acquired by BPC in
the Biotest Transaction which are subject to a lock-up for six months after closing of the Biotest Transaction. This table does
not give effect to any transactions by any of the persons below that have occurred after October 6, 2017.
Shares Beneficially Owned
Name of Beneficial Owner
Number
Percent (1)
Dr. Jerrold B. Grossman (2)
203,818
1.18
%
Adam S. Grossman (3)
1,285,452
7.29
%
Steven A. Elms (4)
3,666,224
21.24
%
Dov A. Goldstein, M.D. (5)
3,666,224
21.24
%
Eric I. Richman (6)
90,924
*
Bryant E. Fong (7)
1,491,357
8.64
%
Lawrence P. Guiheen (8)
64,053
*
Brian Lenz (9)
156,646
*
James Mond, M.D., Ph.D. (10)
198,573
1.14
%
Dr. Bernhard Ehmer
—
—
%
All directors and executive officers as a group (10 persons)
7,215,100
39.25
%
Owners of more than 5% of our Common Stock
Biotest Pharmaceuticals Corporation (11)
4,295,580
24.97
%
Aisling Capital II LP (12)
3,724,277
21.50
%
Biomark Capital Fund IV LP (13)
1,491,357
8.64
%
Consonance Capital Management LP (14)
1,273,933
7.41
%
* Less than 1%.
___________
(1) Based on 17,202,244 shares of Common
Stock outstanding. Excludes 8,591,160 shares of outstanding Non-Voting Common Stock acquired by BPC in the Biotest Transaction
which are subject to a lock-up for six months after closing of the Biotest Transaction
(2) Includes 38,294 shares owned by
the Genesis Foundation ("Genesis").  Dr. Grossman is the President of Genesis.  Also includes
options to purchase 88,438 shares of Common Stock but does not include options to purchase 101,099 shares of Common Stock, which
have not vested and will not vest within 60 days.
(3) Includes 580,957 shares are owned
by Hariden, LLC ("Hariden") and 259,000 shares owned by Areth.  Mr. Grossman is the managing member
of Hariden and a control person of Areth.  Also includes options to purchase 433,889 shares of Common Stock but does
not include options to purchase 690,538 shares of Common Stock which have not vested and will not vest within 60 days.
74
(4) Amount includes options to purchase
58,053 shares Mr. Elms for the benefit of Aisling, but does not include options to purchase 49,621 shares of Common Stock which
have not vested and will not vest within 60 days, which are also held for the benefit of Aisling.  Mr. Elms is Aisling's
designee for nomination to the Company's Board.  As a Managing Member of Aisling Partners, a control person of
Aisling (see footnote 13), and as a member of the six member investment committee of Aisling's General Partner, Mr. Elms
may be deemed to be the beneficial owner of shares of Common Stock owned of record by Aisling.  The address for Mr. Elms
is 888 Seventh Avenue, 12th Floor, New York, New York 10106.
(5) Amount includes options to purchase
58,053 shares held by Dr. Goldstein for the benefit of Aisling, but does not include options to purchase 49,621 shares of Common
Stock which have not vested and will not vest within 60 days, which are also held for the benefit of Aisling.
Dr.
Goldstein is a member of the six member investment committee of Aisling GP (as defined below) and, as such, Dr. Goldstein may be
deemed to be the beneficial owner of shares of Common Stock owned of record by Aisling (see footnote 13).  Dr. Goldstein
disclaims beneficial ownership of Aisling's investment in the Company, except to the extent of his pecuniary interest therein.
The
address for Dr. Goldstein is 888 Seventh Avenue, 12th Floor, New York, New York 10106.
(6) Amount includes options to purchase
84,624 shares of Common Stock but does not include options to purchase 68,864 shares of Common Stock which have not vested and
will not vest within 60 days.
(7) Amount includes options to purchase
58,053 shares (and excludes options to purchase 49,621 shares, which have not vested and will not vest within 60 days) held for
the benefit of Biomark.  Mr. Fong is Biomark's designee for nomination to the Company's Board.  Mr.
Fong is a founding Managing Director and General Partner at Biomark.  The address for Mr. Fong is c/o Biomark Capital
Fund IV GP LLC, 537 Steamboat Rd., Suite 200, Greenwich, Connecticut 06830.
(8) Amount includes options to purchase
58,053 shares, does not include options to purchase 49,621 shares which have not vested and will not vest within 60 days, and includes
1,000 shares held beneficially by the Guiheen Trust.  Mr. Guiheen is joint trustee of the Guiheen Trust.
(9) Amount includes options to purchase
148,146 shares, but does not include options to purchase 236,798 shares which have not vested and will not vest within 60 days.
(10) Amount includes options to purchase
195,184 shares, but does not include options to purchase 289,908 shares, which have not vested and will not vest within 60 days.
(11) Excludes 8,591,160 shares of ADMA
Non-Voting Common Stock or the 8,591,160 shares of Common Stock underlying the 8,591,160 shares of Non-Voting Common Stock issued
to BPC on June 6, 2017. The address of BPC is 5800 Park of Commerce Blvd., NW, Boca Raton, Florida 33487.
(12) The shares directly held by Aisling
are deemed to be beneficially owned by Aisling Capital Partners, LP ("Aisling GP"), as general partner of Aisling,
and Aisling Capital Partners, LLC ("Aisling Partners"), as general partner of Aisling GP, and may be deemed to be beneficially
owned by each of the individual managing members of Aisling Partners.  The individual managing members (collectively,
the "Aisling Managers") of Aisling Partners are Dr. Andrew Schiff, Mr. Elms and Mr. Dennis Purcell.  Aisling
GP, Aisling Partners, and the Aisling Managers may share voting and dispositive power over the shares owned of record by Aisling.  Dr. Goldstein
disclaims beneficial ownership of Aisling's investment in the Company, except to the extent of his pecuniary interest therein.  The
address for Aisling GP, Aisling Partners, and the Aisling Managers is 888 Seventh Avenue, 12th Floor, New York, New York 10106.  The
information in the preceding sentences is based on Aisling's Schedule 13D/A filed with the SEC on January 25, 2017.  Amount
includes options to purchase an aggregate of 116,106 shares held by Mr. Elms and Dr. Goldstein for the benefit of Aisling,
but does not include options to purchase an aggregate of 99,242 shares held by Mr. Elms and Dr. Goldstein for the benefit
of Aisling, which have not vested and will not vest within 60 days.  Also see footnotes 4 and 5.
(13) The shares directly held by Biomark
are deemed to be beneficially owned by Biomark Capital Fund IV GP LLC ("Biomark GP"), and each of the individual managing
directors of Biomark GP.  The individual managing director (the "Biomark Manager") of Biomark GP, who is
a member of the investment committee of Biomark GP, is David S. Wetherell.  Biomark GP and the Manager may share voting
and dispositive power over the shares owned of record by Biomark.  The address for Biomark GP and the Managers is c/o
Biomark Capital Fund IV GP LLC, 537 Steamboat Rd., Suite 200, Greenwich, CT 06830.  The information in the preceding
sentences is based on Biomark's Schedule 13D/A filed with the SEC on January 30, 2017. Amount includes options to purchase
58,053 shares of Common Stock held by Mr. Fong for the benefit of Biomark, but does not include options to purchase 49,621
shares held by Mr. Fong for the benefit of Biomark, which have not vested and will not vest within 60 days.  Also
see footnote 7.
(14) The address of Consonance Capital
Management LP is 1370 Avenue of the Americas, Suite 3301, New York, New York 10019.  Share ownership reported above is
based on a Form 13G/A filed by Consonance Capital Management LP on February 13, 2017.
75
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,
AND DIRECTOR INDEPENDENCE
Our Board is responsible for reviewing
and approving all material transactions with any related party on a continuing basis.  Related parties can include any
of our directors or officers, holders of 5% or more of our voting securities and their immediate family members.  We
may not enter into a related person transaction unless our Board has reviewed and approved such transaction.  We believe
the transactions set forth below were executed on terms no less favorable to us than we could have obtained from unaffiliated third
parties.
See "Executive Compensation"
above for a discussion of director compensation, executive compensation and our named executive officers' employment agreements.
This Offering
Biotest AG and BPC have contractually committed
to purchase up to an aggregate amount of $12.5 million of shares of Common Stock in this Offering, on a pro-rata basis, at the
public offering price. In addition, certain of our other existing stockholders have also indicated an interest in purchasing shares
of Common Stock in this Offering at the public offering price. Not all of these indications of interests are binding agreements
or commitments to purchase, and thus certain parties may elect not to purchase shares of Common Stock in this Offering. Raymond
James & Associates, Inc. will receive an underwriting discount and commission of 4.0% on the sale of shares of Common Stock
to these existing stockholders.
2016 Offering
In connection with the Company's
April 2016 public offering of its Common Stock (the "2016 Offering"), on May 3, 2016: (i) Adam S. Grossman purchased
200,000 shares of Common Stock of the Company through an entity he controls, (ii) Dr. Jerrold B. Grossman purchased 45,770 shares
of Common Stock of the Company through an entity he controls, (iii) Brian Lenz purchased 2,500 shares of Common Stock of the Company,
and (iv) Dr. James Mond purchased 770 shares of Common Stock of the Company, all at the public offering price of $6.50 (collectively,
the "Purchases"). On April 22, 2016, the Board approved a waiver of the Company's Code of Conduct and Ethics,
related to its Insider Trading Compliance Program, to allow for the Purchases in the 2016 Offering by the above individuals.
Shared Services Agreement and Other
Arrangements
Our headquarters are located in approximately
4,200 square feet of space at 465 State Route 17 South, Ramsey, New Jersey. Currently we operate under a Shared Services Agreement
with Areth for the office, warehouse space and certain related services and have the ability to cancel this agreement upon 30 days'
notice.  Areth is a company controlled by Dr. Jerrold B. Grossman, our Vice Chairman, and Adam S. Grossman, our
President and Chief Executive Officer, and we pay monthly fees for the use of such office space and for other information technology,
general warehousing and administrative services.  Rent under the shared services agreement is $16,000 per month. Effective
October 1, 2017, rent under the Shared Services Agreement decreased to $10,000 per month.
We maintain deposits and other accounts
at Pascack Bankcorp, a bank of which Dr. Grossman served as a director through January 2016, and which was approximately 5%-owned
by members of the Grossman family.  Pascack Bankcorp was acquired by Lakeland Bancorp, Inc. in January 2016 and Dr. Grossman
is currently a member of the Corporate Advisory Council of Lakeland Bancorp Inc.
Director Independence
Our
Board has determined that each of Mr. Richman, Dr. Goldstein, Mr. Fong and Mr. Guiheen are independent as that
term is defined under the applicable independence listing standards of
Nasdaq.
76
Description
of Securities
General
The total number of shares of capital
stock that the Company has authority to issue is 93,591,160, divided into three classes consisting of (i) 75,000,000 shares of
Common Stock, (ii) 8,591,160 shares of Non-Voting Common Stock, and (iii) 10,000,000 shares of preferred stock, par value $0.0001
par value ("Preferred Stock").
As of October 11, 2017, there were 25,793,404
shares of Common Stock issued and outstanding and an additional 3,471,651 shares issuable upon exercise of outstanding options
and warrants. Of the 3,471,651 shares of Common Stock issuable upon exercise of outstanding options and warrants, 2,768,184
shares are issuable to officers and directors of the Company, 514,608 shares are issuable to other employees of the Company, and
188,859 shares are issuable to current and former noteholders of the Company.
As of October 11, 2017, there were 8,591,160
shares of Non-Voting Common Stock issued and outstanding. All outstanding shares of Non-Voting Common Stock were issued to BPC
in connection with the closing of the Biotest Transaction on June 6, 2017.
As of October 11, 2017, there were no
shares of Preferred Stock issued and outstanding.
Common Stock
Voting
The holders of Common Stock are entitled
to one vote per share on all matters submitted to a vote of the Company's stockholders.  The holders of a majority
of the outstanding shares of Common Stock constitute a quorum at a meeting of stockholders for the transaction of any business.  Directors
are elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to
vote on the election of directors.  Any other action is authorized by a majority of the votes cast, except where the
Delaware General Corporation Law, or DGCL, prescribes a different percentage of votes and/or a different exercise of voting power.
Dividends
Subject to applicable law and the rights,
if any, of the holders of any outstanding series of Preferred Stock, dividends may be declared and paid on the Common Stock out
of funds legally available therefor at such times and in such amounts as the Board, in its discretion, shall determine; provided,
however, that simultaneously with the declaration and payment of any dividends on the Non-Voting Common Stock, a like dividend
in form and amount per share shall also be declared and paid on the Common Stock (except that, if such dividend on the Non-Voting
Common Stock is paid in the form of shares of Common Stock or Non-Voting Common Stock or rights or options to acquire Common Stock
or Non-Voting Common Stock, the holders of shares of Common Stock shall receive equivalent shares of Common Stock or rights or
options to acquire Common Stock, as the case may be).
Distributions Upon Dissolution,
Liquidation or Winding Up
Upon the dissolution, liquidation or
winding up of the Company, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the holders
of the Common Stock shall be entitled to receive the assets of the Company available for distribution to its stockholders ratably
in proportion to the number of shares of Common Stock held by them.  The holders of common stock do not have cumulative
or preemptive rights.
Non-Voting Common Stock
Voting
Except as otherwise required by applicable
law, shares of Non-Voting Common Stock shall have no voting power and the holders thereof, as such, are not entitled to vote on
any matter that is submitted to a vote of the stockholders of the Company; provided, however, that for so long as any shares of
Non-Voting Common Stock are outstanding, the Company shall not, without the prior vote of the holders of at least a majority of
the shares of Non-Voting Common Stock then outstanding (voting separately as a single class), amend, alter or repeal, whether by
merger, consolidation or otherwise (other than in connection with a Liquidation Event (as defined in the Stockholders Agreement
of the Company, by and among the Company, BPC and such other persons who become a party thereto, dated as of June 6, 2017 (the
"Stockholders Agreement")), (i) Section 4.3 of the Company's A&R Certificate of Incorporation or (ii) any
other provision of the A&R Certificate of Incorporation to alter or change the powers, preferences, or special rights of the
shares of Non-Voting Common Stock in an adverse manner to the powers, preferences or special rights of the shares of Common Stock.
77
Dividends
Subject to applicable law and the rights,
if any, of the holders of any outstanding series of Preferred Stock, dividends may be declared and paid on the Non-Voting Common
Stock out of funds legally available therefor at such times and in such amounts as the Board in its discretion shall determine;
provided, however, that simultaneously with the declaration and payment of any dividends on the Common Stock, a like dividend in
form and amount per share shall also be declared and paid on the Non-Voting Common Stock (except that, if (i) such dividend on
the Common Stock is paid in the form of shares of Common Stock or rights or options to acquire Common Stock, (ii) the holders of
Non-Voting Common Stock would own more than 30% of the outstanding Common Stock following the issuance of such Common Stock dividend
and (iii) the Standstill Period (as defined in the Stockholders Agreement) has not expired or been earlier terminated pursuant
to and in accordance with the terms and conditions of the Stockholders Agreement, the holders of shares of Non-Voting Common Stock
shall receive equivalent shares of Non-Voting Common Stock or rights or options to acquire Non-Voting Common Stock, as the case
may be).
Distributions Upon Dissolution,
Liquidation or Winding Up
Upon the dissolution, liquidation or
winding up of the Company, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the holders
of the Non-Voting Common Stock shall be entitled to receive the assets of the Company available for distribution to its stockholders
ratably in proportion to the number of shares of Common Stock held by them.
Conversion Rights of Non-Voting
Common Stock
The Non-Voting Common Stock is convertible
into Common Stock:
upon the earliest to occur of (1) the
expiration or earlier termination of the Standstill Period (as defined in the Stockholders Agreement), (2) immediately prior to
the consummation of any Liquidation Event (as defined in the Stockholders Agreement) and (3) immediately prior to the taking of
any action by the Board or earlier record date for any vote of stockholders in connection with any insolvency, voluntary or involuntary
bankruptcy, liquidation or assignment for the benefit of creditors of the Company or termination of the Company's status
as a reporting company under the Exchange Act;
upon consummation of a Permitted Sale
(as defined in the Company's A&R Certificate of Incorporation);
at the option of the holder thereof,
if (1) it is the subject of a legally binding sale agreement to be sold in a transaction constituting a Permitted Sale, (2) it
is required to be registered under the Securities Act pursuant to the terms of such sale agreement, (3) the Common Stock into which
such share otherwise would automatically convert upon the consummation of such Permitted Sale constitutes a "Registrable
Security" under the Registration Rights Agreement, (4) the holder delivers a legally binding agreement not to vote the Common
Stock into which such share is converted until the earlier of the consummation of such Permitted Sale or the termination of the
Standstill Period, and (5) the holder follows certain other notice procedures necessary to exercise its optional conversion rights;
at the option of the holder thereof,
if (1) it intends and irrevocably commits to the Company to use its reasonable efforts to sell such Common Stock in the public
market within 60 days of such notice and such sale constitutes a Permitted Sale (a "Market Sale"); (2) it has executed
and delivered to the Company a legally binding written agreement enforceable by the Company that, prior to the earlier of (A) the
consummation of such Market Sale and (B) the expiration or earlier termination of the Standstill Period in accordance with and
pursuant to the terms and conditions of the Stockholders Agreement, such holder shall not vote any of the Common Stock issued to
such holder upon conversion of such converted share of non-voting Common Stock; (3) such Market Sales shall be conducted in compliance
with all applicable requirements of the Securities Act; and (4) it follows certain other notice procedures necessary to exercise
its optional conversion rights; and
at the option of the holder thereof,
if (1) the Company issues additional shares of Common Stock (a "Dilutive Issuance"), (2) as a result of such Dilutive
Issuance, the percentage of the voting power of the Company represented by all shares of Common Stock held by BPC immediately following
the Dilutive Issuance is lower than the voting percentage of all shares of Common Stock held by BPC immediately prior to the Dilutive
Issuance, and (3) the holder follows certain other notice procedures necessary to exercise its optional conversion rights; provided,
however, that the maximum number of shares of Non-Voting Common Stock that may be converted in respect of a Dilutive Issuance is
the number of shares that, upon conversion, results in the voting percentage of all shares of Common Stock held by BPC immediately
following such conversion being equal to the voting percentage of all shares of Common Stock held by BPC immediately prior to the
Dilutive Issuance.
78
Preferred Stock
No shares of Preferred Stock are currently
outstanding, and the Company has no current plans to issue Preferred Stock.  The issuance of shares of Preferred Stock,
or the issuance of rights to purchase Preferred Stock, could be used to discourage an unsolicited acquisition proposal.  For
example, a business combination could be impeded by the issuance of a series of Preferred Stock containing class voting rights
that would enable the holder or holders of such series to block any such transaction.  Alternatively, a business combination
could be facilitated by the issuance of a series of Preferred Stock having sufficient voting rights to provide a required percentage
vote of the Company's stockholders.  In addition, under some circumstances, the issuance of Preferred Stock could
adversely affect the voting power and other rights of the holders of Common Stock.  Although prior to issuing any series
of Preferred Stock the Board is required to make a determination as to whether the issuance is in the best interests of the Company's
stockholders, the board could act in a manner that would discourage an acquisition attempt or other transaction that some, or a
majority, of the stockholders might believe to be in their best interests or in which the stockholders might receive a premium
for their stock over prevailing market prices of such stock.  The Board does not presently intend to seek stockholder
approval prior to any issuance of currently authorized Preferred Stock, unless otherwise required by law or applicable stock exchange
requirements.
Warrants
In May 2016, the Company issued to
Oxford warrants to purchase an aggregate of up to 24,800 shares of the Company's Common Stock at an exercise price equal
to $6.37 per share. The warrants became exercisable on May 13, 2016 for cash or by net exercise and will expire seven years after
their issuance on May 13, 2023. In connection with the LSA with Oxford, on June 19, 2015, the Company issued to Oxford a seven
year warrant, expiring on June 19, 2022, to purchase 74,309 shares of Common Stock at an exercise price of $8.51 per share. In
connection with the Company's prior loan facility with Hercules, on December 21, 2012, the Company issued to Hercules a warrant
to purchase 31,750 shares of Common Stock with an exercise price of $7.56, subject to customary anti-dilution adjustments. In connection
with the Company's prior loan facility, the Company issued to Hercules a warrant to purchase 23,200 and 34,800 shares of
Common Stock of the Company in February and December 2014, respectively, with an exercise price set at the lower of (i) $7.50 per
share or (ii) the price per share of the next round of financing from the expiration of the exercise price adjustment, subject
to customary anti-dilution adjustments. The warrant expires after 10 years and has piggyback registration rights with respect to
the shares of Common Stock underlying the warrant. The down round warrant protection feature resulting in the warrant liability's
quarterly "mark-to-market" valuation has terminated as of the end of the one-year period following the amended loan
closing on February 24, 2014.
As consideration for the Credit
Agreement, the Company has issued, on October 10, 2017, the Tranche
One Warrant. The Tranche One Warrant has (i) an exercise price equal to $3.10, which is the trailing 10-day VWAP of
the Company's Common Stock prior to October 10, 2017, and (ii) an expiration date of October 10, 2024. The
Tranche One Warrant is exercisable for  338,710 shares of Common Stock, or 3.5% of the Tranche One Loan. In the event that
the Tranche Two Loan is issued to the Company, the Company shall issue the Tranche Two Warrant to purchase such number of shares of Common Stock equal to 3.5% of the Tranche Two
Loan, which shall have an exercise price equal to the trailing 10-day VWAP of the Common Stock prior to the issuance date of
the Tranche Two Warrant and an expiration date equal to the seven year anniversary of the issuance of the Tranche Two
Warrant.
Registration Rights
At the closing of the Biotest Transaction,
the Company entered into the Registration Rights Agreement with BPC, pursuant to which BPC, and/or its affiliate(s), will have,
among other things, certain registration rights under the Securities Act with respect to its shares of the Company's Common
Stock, subject to certain transfer restrictions.
Indemnification of Directors and
Officers
The Company's directors and officers
are indemnified as provided by the Delaware General Corporation Law, the Company's A&R Certificate of Incorporation,
and the Company's Amended and Restated Bylaws. The Company has been advised that, in the opinion of the SEC, indemnification
for liabilities arising under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities is asserted by one of the Company's
directors, officers, or controlling persons in connection with the securities being registered, the Company will, unless in the
opinion of its legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification
is against public policy to a court of appropriate jurisdiction. The Company will then be governed by the court's decision.
We are party to indemnification agreements
with each of our directors and officers. These agreements require us to, among other things, indemnify our directors and officers
against certain liabilities which may arise by reason of their status or service as directors or officers to the fullest extent
permitted by applicable laws. These indemnification provisions and the indemnification agreements are sufficiently broad to permit
indemnification of our officers and directors for liabilities, including reimbursement of expenses incurred, arising under the
Securities Act. The Company also maintains director and officer liability insurance.
79
Delaware Anti-Takeover Law
The Company is subject to the provisions
of Section 203 of the DGCL. Section 203 prohibits publicly held Delaware corporations from engaging in a "business combination"
with an "interested stockholder" for a period of three years after the date of the transaction in which the person
became an interested stockholder, unless the business combination is approved in a prescribed manner.  A "business
combination" includes mergers, asset sales and other transactions resulting in a financial benefit to the interested stockholder.  Subject
to certain exceptions, an "interested stockholder" is a person who, together with affiliates and associates, owns,
or within three years did own, 15% or more of the corporation's voting stock.  These provisions could have the
effect of delaying, deferring or preventing a change of control of the Company or reducing the price that certain investors might
be willing to pay in the future for shares of the Company's stock.
Staggered Board; Removal of Directors;
Certificate of Incorporation
The Company's A&R Certificate
of Incorporation divides the Company's board of directors into three classes with staggered three-year terms. Only one class
of directors will be elected at each annual meeting of the Company's stockholders, with the other classes continuing for
the remainder of their respective three year terms. Except as the DGCL may otherwise require, any newly created directorships or
vacancies on the Board may be filled only by the board of directors, but subject to the rights of holders of any series of Preferred
Stock and to the terms and conditions of the Stockholders Agreement.
The Company's A&R Certification
Incorporation provides that (i) all stockholder actions must be effected at a duly called meeting of the stockholders and (ii)
stockholders may not adopt actions by written consent without a meeting.
The combination of these provisions
will make it more difficult for the Company's existing stockholders to replace the Board as well as for another party to
obtain control of the Company by replacing the Board. Since the board of directors has the power to retain and discharge the officers,
these provisions could also make it more difficult for existing stockholders or another party to effect a change in management.
In addition, the authorization of undesignated Preferred Stock makes it possible for the Board to issue Preferred Stock with voting
or other rights or preferences that could impede any attempt to effect a change of control of the Company.
Transfer Agent
Continental Stock Transfer & Trust
Company, 17 Battery Place, New York, New York, serves as the transfer agent and registrar for the Company's stock.
80
UNDERWRITING
Raymond James & Associates, Inc. is
acting as representative of each of the underwriters named below, with Raymond James & Associates, Inc. serving as sole book-running
manager in this Offering. Subject to the conditions set forth in an underwriting agreement among us and the underwriters, we have
agreed to sell to the underwriters, and each of the underwriters has agreed, severally and not jointly, to purchase from us the
number of shares of our Common Stock set forth opposite its name below:
Name
Number of Shares
Raymond James & Associates, Inc.
Total:
The underwriters are offering the shares
of Common Stock subject to their acceptance of the shares from us and subject to prior sale. The underwriting agreement provides
that the obligations of the several underwriters to pay for and accept delivery of the shares of Common Stock offered by this prospectus
are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated
to take and pay for all of the shares of Common Stock offered by this prospectus if any such shares are taken. However, the underwriters
are not required to take or pay for the shares covered by the underwriters' option described below. The underwriting agreement
also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may be increased or the
Offering may be terminated.
Biotest AG and BPC have contractually committed
to purchase up to an aggregate amount of $12.5 million of shares of Common Stock in this Offering, on a pro-rata basis, at the
public offering price. In addition, certain of our other existing stockholders have also indicated an interest in purchasing shares
of Common Stock in this Offering at the public offering price. Not all of these indications of interests are binding agreements
or commitments to purchase, and thus certain parties may elect not to purchase shares of Common Stock in this Offering. Raymond
James & Associates, Inc. will receive an underwriting discount and commission of 4.0% on the sale of shares of Common Stock
to these existing stockholders.
The underwriters initially propose to offer
part of the shares of Common Stock directly to the public at the offering price listed on the cover page of this prospectus and
part to certain dealers at that price less a concession not in excess of $    per share. After the initial
offering of the shares of Common Stock, the offering price and other selling terms may be changed by the underwriters. Sales of
shares made outside of the U.S. may be made by affiliates of the underwriters.
Option to Purchase Additional Shares
of Common Stock
We have granted the underwriters an option,
exercisable for 30 days from the date of this prospectus, to purchase up to                 
additional shares of Common Stock at the public offering price listed on the cover page of this prospectus, less underwriting discounts
and commissions. The underwriters may exercise this option in whole or in part. To the extent the option is exercised, each underwriter
will become obligated, subject to certain conditions, to purchase approximately the same percentage of the additional shares of
Common Stock as the number listed next to the underwriter's name in the preceding table bears to the total number of shares
of Common Stock listed next to the names of all underwriters in the preceding table.
Discounts and Expenses
The following table shows per share and
total public offering prices, underwriting discounts and commissions, and proceeds before expenses to us. These amounts are shown
assuming both no exercise and full exercise of the underwriters' option to purchase up to an additional                
shares of Common Stock.
Per Share
Total No Exercise
Total Full Exercise
Public offering price
Underwriting discounts and commissions
Proceeds, before expenses
The estimated offering expenses payable
by us, exclusive of the underwriting discounts and commissions, are approximately $                  .
81
In addition to the underwriting discounts
and commissions, we have agreed to pay or reimburse Raymond James & Associates, Inc. for out-of-pocket expenses up to a maximum
of $125,000 in connection with this Offering.
Indemnification
We have agreed to indemnify the underwriters
against certain liabilities, including liabilities under the Securities Act.
Lock-Up Agreements
In connection with this Offering, subject
to specified exceptions, we and each of our directors, officers, and certain of our stockholders have agreed that, subject to certain
exceptions, without the prior written consent of Raymond James & Associates, Inc. as representative on behalf of the underwriters,
we and they will not, subject to customary exceptions, during the period ending 90 days after the date of the final prospectus
relating to this Offering:
·
offer, sell, agree to
offer or sell, solicit offers to purchase, grant any call option or purchase any put option with respect to, pledge, encumber,
assign, borrow or otherwise dispose of or transfer, any shares of our stock or options, warrants or other securities with respect
to our stock; or
·
enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Common Stock.
The preceding restrictions apply without
regard to whether any such transaction described above is to be settled by delivery of Common Stock or other securities, in cash
or otherwise.
Stabilization
Until this Offering is completed, rules
of the SEC may limit the ability of the underwriters and various selling group members to bid for and purchase the shares of our
Common Stock. As an exception to these rules and in accordance with Regulation M under the Exchange Act, the underwriters may engage
in activities that stabilize, maintain or otherwise affect the price of our Common Stock in order to facilitate the offering of
the Common Stock, including: short sales; syndicate covering transactions; imposition of penalty bids; and purchases to cover positions
created by short sales.
Stabilizing transactions may include making
short sales of shares of our Common Stock, which involve the sale by the underwriters of a greater number of shares than it is
required to purchase in this Offering and purchasing shares of Common Stock from us by exercising the option or in the open market
to cover positions created by short sales. Short sales may be "covered" shorts, which are short positions in an amount
not greater than the underwriters' option referred to above, or may be "naked" shorts, which are short positions
in excess of that amount.
Each underwriter may close out any covered
short position either by exercising its option, in whole or in part, or by purchasing shares of Common Stock in the open market
after the distribution has been completed. In making this determination, each underwriter will consider, among other things, the
price of shares of our Common Stock available for purchase in the open market compared to the price at which the underwriter may
purchase shares of our Common Stock pursuant to the underwriters' option.
A naked short position is more likely to
be created if the underwriters are concerned that there may be downward pressure on the price of shares of our Common Stock in
the open market after pricing that could adversely affect investors who purchased in this Offering. To the extent that the underwriters
create a naked short position, they will purchase shares of our Common Stock in the open market to cover the position after the
pricing of this Offering.
The underwriters also may impose a penalty
bid on selling group members. This means that if the underwriters purchase shares of our Common Stock in the open market in stabilizing
transactions or to cover short sales, the underwriters can require the selling group members that sold those shares as part of
this Offering to repay the selling concession received by them.
82
As a result of these activities, the price
of shares of our Common Stock may be higher than the price that otherwise might exist in the open market. If the underwriters commence
these activities, they may discontinue them without notice at any time. The underwriters may carry out these transactions on the
NASDAQ Capital Market or otherwise.
The underwriters are not required to engage
in these activities and may end any of these activities at any time.
Relationships and Conflict of Interest
Certain of the underwriters and their affiliates
may provide from time to time in the future certain commercial banking, financial advisory, investment banking and other services
for us and such affiliates, and for the selling stockholders and their affiliates, in the ordinary course of their business, for
which they will receive customary fees and commissions, as applicable, and reimbursement for out-of-pocket expenses. In addition,
from time to time, certain of the underwriters and their affiliates may effect transactions for their own account or the account
of customers, and hold on behalf of themselves or their customers, long or short positions in our debt or equity securities or
loans, and may do so in the future.
Notice to Non-U.S. Investors
Belgium
The Offering is exclusively conducted under applicable private
placement exemptions and therefore it has not been and will not be notified to, and this document or any other offering material
relating to the shares has not been and will not be approved by, the Belgian Banking, Finance and Insurance Commission ("Commission
bancaire, financière et des assurances/Commissie voor het Bank, Financie en Assurantiewezen"). Any representation
to the contrary is unlawful.
Each underwriter has undertaken not to offer sell, resell, transfer
or deliver directly or indirectly, any units, or to take any steps relating/ancillary thereto, and not to distribute or publish
this document or any other material relating to the units or to the Offering in a manner which would be construed as: (a) a public
offering under the Belgian Royal Decree of 7 July 1999 on the public character of financial transactions; or (b) an offering of
securities to the public under Directive 2003/71/EC which triggers an obligation to publish a prospectus in Belgium. Any action
contrary to these restrictions will cause the recipient and the Company to be in violation of the Belgian securities laws.
France
Neither this prospectus supplement nor any other offering material
relating to the shares has been submitted to the clearance procedures of the Autorité des marchés financiers in France.
The shares have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither
this prospectus supplement nor any other offering material relating to the shares has been or will be: (a) released, issued, distributed
or caused to be released, issued or distributed to the public in France; or (b) used in connection with any offer for subscription
or sale of the shares to the public in France. Such offers, sales and distributions will be made in France only: (i) to qualified
investors (investisseurs qualifiés) and/or to a restricted circle of investors (cercle restreint d'investisseurs),
in each case investing for their own account, all as defined in and in accordance with Articles L.411-2, D.411-1, D.411-2, D.734-1,
D.744-1, D.754-1 and D.764-1 of the French Code monétaire et financier; (ii) to investment services providers authorised
to engage in portfolio management on behalf of third parties; or (iii) in a transaction that, in accordance with article L.411-2-II-1°-or-2°-or
3° of the French Code monétaire et financier and article 211-2 of the General Regulations (Règlement Général)
of the Autorité des marchés financiers, does not constitute a public offer (appel public à l'épargne).
Such shares may be resold only in compliance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French
Code monétaire et financier.
United Kingdom/Germany/Norway/The Netherlands
In relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a "Relevant Member State") an offer to the public of any shares
which are the subject of the Offering contemplated by this prospectus supplement may not be made in that Relevant Member State
other than the offers contemplated in this prospectus supplement in name(s) of Member State(s) where prospectus will be approved
or passported for the purposes of a non-exempt offer once this prospectus supplement has been approved by the competent authority
in such Member State and published and passported in accordance with the Prospectus Directive as implemented in name(s) of relevant
Member State(s) except that an offer to the public in that Relevant Member State of any shares may be made at any time under the
following exemptions under the Prospectus Directive, if they have been implemented in that Relevant Member State:
(a)       to legal entities
which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose
is solely to invest in securities;
83
(b)       to any legal entity
which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of
more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated
accounts;
(c)       by the representative
to fewer than 100 natural or legal persons (other than qualified investors as defined in the Prospectus Directive); or
(d)       in any other circumstances
falling within Article 3(2) of the Prospectus Directive, provided that no such offer of shares shall result in a requirement for
the publication by the Company or any underwriter of a prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an "offer
to the public" in relation to any shares in any Relevant Member State means the communication in any form and by any means
of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase
any shares, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member
State and the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure
in each Relevant Member State.
Each underwriter has represented, warranted and agreed that:
(a)       it has only communicated
or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment
activity (within the meaning of section 21 of the Financial Services and Markets Act 2000 (the FSMA)) received by it in connection
with the issue or sale of any shares in circumstances in which section 21(1) of the FSMA does not apply to the Company; and
(b)       it has complied
with and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the shares in,
from or otherwise involving the United Kingdom.
Israel
In the State of Israel, the shares offered hereby may not be
offered to any person or entity other than the following:
(a)       a fund for joint
investments in trust (i.e., mutual fund), as such term is defined in the Law for Joint Investments in Trust, 5754-1994, or a management
company of such a fund;
(b)       a provident fund
as defined in Section 47(a)(2) of the Income Tax Ordinance of the State of Israel, or a management company of such a fund;
(c)       an insurer, as
defined in the Law for Oversight of Insurance Transactions, 5741-1981, (d) a banking entity or satellite entity, as such terms
are defined in the Banking Law (Licensing), 5741-1981, other than a joint services company, acting for their own account or for
the account of investors of the type listed in Section 15A(b) of the Securities Law 1968;
(d)       a company that
is licensed as a portfolio manager, as such term is defined in Section 8(b) of the Law for the Regulation of Investment Advisors
and Portfolio Managers, 5755-1995, acting on its own account or for the account of investors of the type listed in Section 15A(b)
of the Securities Law 1968;
(e)       a company that
is licensed as an investment advisor, as such term is defined in Section 7(c) of the Law for the Regulation of Investment Advisors
and Portfolio Managers, 5755-1995, acting on its own account;
(f)       a company that
is a member of the Tel Aviv Stock Exchange, acting on its own account or for the account of investors of the type listed in Section
15A(b) of the Securities Law 1968;
(g)       an underwriter
fulfilling the conditions of Section 56(c) of the Securities Law, 5728-1968;
(h)       a venture capital
fund (defined as an entity primarily involved in investments in companies which, at the time of investment, (i) are primarily engaged
in research and development or manufacture of new technological products or processes and (ii) involve above-average risk);
(i)       an entity primarily
engaged in capital markets activities in which all of the equity owners meet one or more of the above criteria; and
84
(j)       an entity, other
than an entity formed for the purpose of purchasing shares in this Offering, in which the shareholders equity (including pursuant
to foreign accounting rules, international accounting regulations and U.S. generally accepted accounting rules, as defined in the
Securities Law Regulations (Preparation of Annual Financial Statements), 1993) is in excess of NIS 50 million.
Any offeree of the shares offered hereby in the State of Israel
shall be required to submit written confirmation that it falls within the scope of one of the above criteria. This prospectus supplement
will not be distributed or directed to investors in the State of Israel who do not fall within one of the above criteria.
Italy
The offering of the shares offered hereby in Italy has not been
registered with the Commissione Nazionale per la Società e la Borsa ("CONSOB") pursuant to Italian securities
legislation and, accordingly, the shares offered hereby cannot be offered, sold or delivered in the Republic of Italy ("Italy")
nor may any copy of this prospectus supplement or any other document relating to the shares offered hereby be distributed in Italy
other than to professional investors (operatori qualificati) as defined in Article 31, second paragraph, of CONSOB Regulation No.
11522 of 1 July, 1998 as subsequently amended. Any offer, sale or delivery of the shares offered hereby or distribution of copies
of this prospectus supplement or any other document relating to the shares offered hereby in Italy must be made:
(a)       by an investment
firm, bank or intermediary permitted to conduct such activities in Italy in accordance with Legislative Decree No. 58 of 24 February
1998 and Legislative Decree No. 385 of 1 September 1993 (the "Banking Act");
(b)       in compliance with
Article 129 of the Banking Act and the implementing guidelines of the Bank of Italy; and
(c)       in compliance with
any other applicable laws and regulations and other possible requirements or limitations which may be imposed by Italian authorities.
Sweden
This prospectus supplement has not been nor will it be registered
with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this prospectus supplement may
not be made available, nor may the shares offered hereunder be marketed and offered for sale in Sweden, other than under circumstances
which are deemed not to require a prospectus under the Financial Instruments Trading Act (1991: 980).
Switzerland
The shares offered pursuant to this prospectus supplement will
not be offered, directly or indirectly, to the public in Switzerland and this prospectus supplement does not constitute a public
offering prospectus as that term is understood pursuant to art. 652a or art. 1156 of the Swiss Federal Code of Obligations. The
company has not applied for a listing of the shares being offered pursuant to this prospectus supplement on the SWX Swiss Exchange
or on any other regulated securities market, and consequently, the information presented in this prospectus supplement does not
necessarily comply with the information standards set out in the relevant listing rules. The shares being offered pursuant to this
prospectus supplement have not been registered with the Swiss Federal Banking Commission as foreign investment funds, and the investor
protection afforded to acquirers of investment fund certificates does not extend to acquirers of shares.
Investors are advised to contact their legal, financial or tax
advisers to obtain an independent assessment of the financial and tax consequences of an investment in shares.
Canada
Notice to Canadian Residents
This document constitutes an "exempt offering document"
as defined in and for the purposes of applicable Canadian securities laws. No prospectus has been filed with any securities commission
or similar regulatory authority in Canada in connection with the offer and sale of the securities described herein (the "Securities").
No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this document or on the
merits of the Securities and any representation to the contrary is an offence.
Canadian investors are advised that
this document has been prepared in reliance on section 3A.3 of National Instrument 33-105
Underwriting Conflicts
("NI
33-105"). Pursuant to section 3A.3 of NI 33-105, this document is exempt from the requirement to provide investors with certain
conflicts of interest disclosure pertaining to "connected issuer" and/or "related issuer" relationships
as would otherwise be required pursuant to subsection 2.1(1) of NI 33-105.
85
Resale Restrictions
The offer and sale of the Securities in Canada is being made
on a private placement basis only and is exempt from the requirement to prepare and file a prospectus under applicable Canadian
securities laws. Any resale of Securities acquired by a Canadian investor in this Offering must be made in accordance with applicable
Canadian securities laws, which may vary depending on the relevant jurisdiction, and which may require resales to be made in accordance
with Canadian prospectus requirements, a statutory exemption from the prospectus requirements, in a transaction exempt from the
prospectus requirements or otherwise under a discretionary exemption from the prospectus requirements granted by the applicable
local Canadian securities regulatory authority. These resale restrictions may under certain circumstances apply to resales of the
Securities outside of Canada.
Representations of Purchasers
Each Canadian investor who purchases the Securities will be
deemed to have represented to the issuer and to each dealer from whom a purchase confirmation is received, as applicable, that
the investor (i) is purchasing as principal, or is deemed to be purchasing as principal in accordance with applicable Canadian
securities laws, for investment only and not with a view to resale or redistribution; (ii) is an "accredited investor"
as such term is defined in section 1.1 of National Instrument 45-106
Prospectus Exemptions
("NI 45-106")
or, in Ontario, as such term is defined in section 73.3(1) of the
Securities Act
(Ontario); and (iii) is a "permitted
client" as such term is defined in section 1.1 of National Instrument 31-103
Registration Requirements, Exemptions
and Ongoing Registrant Obligations
.
Taxation and Eligibility for Investment
Any discussion of taxation and related matters contained in
this document does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a Canadian
investor when deciding to purchase the Securities and, in particular, does not address any Canadian tax considerations. No representation
or warranty is hereby made as to the tax consequences to a resident, or deemed resident, of Canada of an investment in the Securities
or with respect to the eligibility of the Securities for investment by such investor under relevant Canadian federal and provincial
legislation and regulations.
Rights of Action for Damages or Rescission
Securities legislation in certain of the Canadian jurisdictions
provides certain purchasers of securities pursuant to an offering memorandum, including where the distribution involves an "eligible
foreign security" as such term is defined in Ontario Securities Commission Rule 45-501
Ontario Prospectus and Registration
Exemptions
and in Multilateral Instrument 45-107
Listing Representation and Statutory Rights of Action Disclosure
Exemptions
, as applicable, with a remedy for damages or rescission, or both, in addition to any other rights they may have
at law, where the offering memorandum, or other offering document that constitutes an offering memorandum, and any amendment thereto,
contains a "misrepresentation" as defined under applicable Canadian securities laws. These remedies, or notice with
respect to these remedies, must be exercised or delivered, as the case may be, by the purchaser within the time limits prescribed
under, and are subject to limitations and defences under, applicable Canadian securities legislation. In addition, these remedies
are in addition to and without derogation from any other right or remedy available at law to the investor.
Language of Documents
Upon receipt of this document, each Canadian
investor hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the
Securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English
language only.
Par la réception de ce document, chaque investisseur canadien confirme par les présentes qu'il
a expressément exigé que tous les documents faisant foi ou se rapportant de quelque manière que ce soit à
la vente des valeurs mobilières décrites aux présentes (incluant, pour plus de certitude, toute confirmation
d'achat ou tout avis) soient rédigés en anglais seulement.
86
LEGAL MATTERS
DLA Piper LLP (US), located at 51 John F. Kennedy Parkway, Suite
120, Short Hills, New Jersey 07078, will pass on the validity of the Common Stock being offered pursuant to this prospectus. The
underwriters are being represented by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., New York, New York.
EXPERTS
The consolidated financial statements of ADMA Biologics,
Inc. as of December 31, 2016 and  2015, and for the years ended December 31, 2016 and 2015, included and incorporated by
reference in this prospectus and the registration statement have been audited by CohnReznick LLP, an independent registered
public accounting firm, to the extent and for the periods set forth in their report, which includes an explanatory paragraph
relating to the Company's ability to continue as a going concern, appearing elsewhere herein and in the registration
statement, and are included and incorporated by reference in reliance upon such report given upon the authority of said firm
as experts in auditing and accounting.
The financial statements of the BTBU of BPC (which comprise
the carve-out balance sheet as of December 31, 2016 and the related carve-out statements of operations, changes in invested equity
and cash flows for the year then ended), incorporated by reference in this prospectus and the registration statement have been
audited by CohnReznick LLP, an independent registered public accounting firm, to the extent and for the period set forth in their
report, which includes an explanatory paragraph relating to the Company's ability to continue as a going concern, incorporated
by reference herein and in the registration statement, and are incorporated by reference in reliance upon such report given upon
the authority of said firm as experts in auditing and accounting.
The financial statements of the BTBU of BPC (which comprise
the carve-out balance sheet as of December 31, 2015 and the related carve-out statements of operations, changes in invested equity
and cash flows for the year then ended), incorporated by reference in this prospectus and the registration statement have been
audited by Rödl Langford de Kock LLP, an independent auditor, to the extent and for the period set forth in their report,
which includes an explanatory paragraph relating to the Company's ability to continue as a going concern, incorporated by
reference herein and in the registration statement, and are incorporated by reference in reliance upon such report given upon the
authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and periodic reports, proxy statements
and other information with the SEC. You may read and copy any materials that we file with the SEC at the SEC's Public Reference
Room at 100 F Street, NE, Washington, D.C. 20549 on official business days during the hours of 10:00am and 3:00pm. You may obtain
information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Many of our SEC filings are also
available to the public from the SEC's Website at "http://www.sec.gov." We make available free of charge our
annual, quarterly and current reports, proxy statements and other information upon request. To request such materials, please contact
Brian Lenz, our Chief Financial Officer, at the following address or telephone number: ADMA Biologics, Inc. 465 Route 17, Ramsey,
New Jersey 07446, Attention: Brian Lenz, Vice President and Chief Financial Officer, (201) 478-5552. Exhibits to the documents
will not be sent, unless those exhibits have specifically been incorporated by reference in this prospectus.
Copies of certain information filed by us with the SEC are also
available on our website at www.admabiologics.com. Information contained in, or accessible through, our website does not constitute
a part of this prospectus or any accompanying prospectus supplement.
This prospectus is part of a registration statement we filed
with the SEC. This prospectus omits some information contained in the registration statement in accordance with SEC rules and regulations.
You should review the information and exhibits in the registration statement for further information about us and our consolidated
subsidiaries and the securities we are offering. Statements in this prospectus concerning any document we filed as an exhibit to
the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference
to these filings. You should review the complete document to evaluate these statements.
87
INCORPORATION OF CERTAIN INFORMATION
BY REFERENCE
The SEC permits us to "incorporate by reference"
the information contained in documents we have filed with the SEC, which means that we can disclose important information to you
by referring you to those documents rather than by including them in this prospectus. Information that is incorporated by reference
is considered to be part of this prospectus and you should read it with the same care that you read this prospectus. We have filed
with the SEC, and incorporate by reference in this prospectus:
·
our Annual Report on Form 10-K for the year ended
December 31, 2016, filed on February 24, 2017;
·
our Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2017 and June 30, 2017, filed on May 12, 2017 and August 11, 2017, respectively;
·
our definitive merger proxy statement on Schedule
14A, filed on April 26, 2017 (as supplemented on May 10, 2017);
·
our Current Reports on Form 8-K filed with the SEC
on January 23, 2017, February 17, 2017, May 10, 2017, May 25, 2017, May 30, 2017, June 9, 2017, June 12, 2017 (as amended on July
28, 2017), June 27, 2017, July 31, 2017 and October 11, 2017 (provided that any portions of such reports that are deemed furnished
and not filed pursuant to instructions to Form 8-K shall not be incorporated by reference into this prospectus); and
·
the description of Common Stock set forth in or Registration
Statement on Form 8-A12B filed with the SC on November 5, 2014 pursuant to Section 12(b) of the Exchange Act, including any amendment
or report filed for the purpose of updating such description.
Any statement contained in any document incorporated by reference
herein will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in
this prospectus or any additional prospectus supplements modifies or supersedes such statement. Any statement so modified or superseded
will not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
We will provide without charge to each person, including any
beneficial owner, to whom this prospectus is delivered, upon written or oral request, a copy of any or all documents that are incorporated
by reference into this prospectus, but not delivered with this prospectus, other than exhibits to such documents unless such exhibits
are specifically incorporated by reference into the documents that this prospectus incorporates. To request such materials, please
contact Brian Lenz, our Chief Financial Officer, at the following address or telephone number: ADMA Biologics, Inc. 465 Route 17,
Ramsey, New Jersey 07446, Attention: Brian Lenz, Vice President and Chief Financial Officer, (201) 478-5552. A copy of all documents
that are incorporated by reference into this prospectus can also be found on our website by accessing http://ir.admabiologics.com/all-sec-filings.
88
Financial
Statements
Table of Contents
FINANCIAL STATEMENTS (JUNE 30, 2017 AND 2016) (UNAUDITED)
Condensed Consolidated Balance Sheets as of June 30, 2017 (Unaudited) and December 31, 2016
F-1
Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2017 and 2016
F-2
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) for the Six Months Ended June
30, 2017
F-3
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2017 and 2016
F-4
Notes to (Unaudited) Condensed Consolidated Financial Statements
F-5
FINANCIAL STATEMENTS (DECEMBER 31, 2016 AND 2015) (AUDITED)
Report of Independent Registered Public Accounting Firm
F-20
Consolidated Balance Sheets as of December 31, 2016 and 2015
F-21
Consolidated Statements of Operations for the years ended December 31, 2016 and 2015
F-22
Consolidated Statements of Changes in Stockholders' (Deficiency) Equity for the years ended December 31, 2016 and 2015
F-23
Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015
F-24
Notes to Consolidated Financial Statements
F-25
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
F-40
ADMA Biologics, Inc. and the Therapy Business Unit Unaudited Pro Forma Combined Balance Sheet as of March 31, 2017
F-41
ADMA Biologics, Inc. and the Therapy Business Unit Unaudited Pro Forma Combined Statement of Operations for the year ended December
31, 2016
F-42
ADMA Biologics, Inc. and the Therapy Business Unit Unaudited Pro Forma Combined Statement of Operations for the three months ended
March 31, 2017
F-43
Notes to Unaudited Pro Forma Combined Financial Statements
F-44
ADMA
BIOLOGICS, INC. AND SUBSIDIARies
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
December 31,
2017
2016
(Unaudited)
(Note 2)
ASSETS
Current assets:
Cash and cash equivalents
$
25,574,009
$
9,914,867
Short-term investments
—
5,390,184
Accounts receivable
2,292,274
1,018,027
Inventories
13,150,733
5,020,146
Prepaid expenses and other current assets
2,408,459
313,914
Assets held for sale
845,389
—
Total current assets
44,270,864
21,657,138
Property and equipment, net
28,626,668
2,000,784
Intangible assets, net
6,011,003
—
Goodwill
3,529,509
—
Assets to be transferred under purchase agreement
1,698,755
—
Deposits
502,454
27,163
TOTAL ASSETS
$
84,639,253
$
23,685,085
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
4,672,316
$
2,564,681
Accrued expenses
4,143,812
2,385,356
Current portion of notes payable
6,666,667
6,111,111
Current portion of deferred revenue
145,154
145,154
Other current liabilities
17,062
16,559
Total current liabilities
15,645,011
11,222,861
Notes payable, net of discount
9,360,708
12,321,640
End of term liability, notes payable
1,790,000
1,790,000
Deferred revenue, net of current portion
2,618,616
2,690,033
Note payable - related party, net of discount
14,827,148
—
Purchase price payable
12,621,844
—
Other non-current liabilities
93,937
117,813
TOTAL LIABILITIES
56,957,264
28,142,347
COMMITMENTS AND CONTINGENCIES
—
—
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock, $0.0001 par value, 10,000,000 shares authorized,
no shares issued and outstanding
—
—
Common Stock - voting, $0.0001 par value, 75,000,000 shares
authorized, 17,182,321 and 12,886,741 shares issued and outstanding
1,719
1,289
Common Stock - non-voting, $0.0001 par value, 8,591,160 shares
authorized, 8,591,160 and 0 shares issued and outstanding
859
—
Additional Paid-In Capital
150,187,687
102,476,267
Accumulated Deficit
(122,508,276
)
(106,934,818
)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
27,681,989
(4,457,262
)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
$
84,639,253
$
23,685,085
See notes to (unaudited) condensed consolidated
financial statements.
F-
1
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
REVENUES:
Product revenue
$
3,363,692
$
2,236,035
$
5,956,855
$
4,324,213
License and other revenue
35,709
35,709
71,417
71,417
Total Revenues
3,399,401
2,271,744
6,028,272
4,395,630
OPERATING EXPENSES:
Cost of product revenue (exclusive of amortization expense shown below)
4,334,019
1,344,241
5,950,306
2,610,662
Research and development
1,358,409
3,399,889
2,551,136
5,427,601
Plasma centers
1,600,170
1,294,301
3,079,646
2,574,720
Amortization of intangibles
73,021
—
73,021
—
Selling, general and administrative
4,435,650
1,724,163
8,713,034
3,432,033
TOTAL OPERATING EXPENSES
11,801,269
7,762,594
20,367,143
14,045,016
LOSS FROM OPERATIONS
(8,401,868
)
(5,490,850
)
(14,338,871
)
(9,649,386
)
OTHER INCOME (EXPENSE):
Interest income
7,858
12,017
26,426
25,525
Interest expense
(642,485
)
(537,998
)
(1,261,013
)
(1,005,439
)
Other income
—
4,496
—
4,496
OTHER EXPENSE, NET
(634,627
)
(521,485
)
(1,234,587
)
(975,418
)
NET LOSS
$
(9,036,495
)
$
(6,012,335
)
$
(15,573,458
)
$
(10,624,804
)
BASIC AND DILUTED LOSS PER COMMON SHARE
$
(0.55
)
$
(0.50
)
$
(1.06
)
$
(0.93
)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and Diluted
16,427,054
12,121,500
14,666,677
11,407,918
See notes to (unaudited) condensed consolidated
financial statements.
F-
2
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN
STOCKHOLDERS' DEFICIENCY
(Unaudited)
For the Six Months
Ended June 30, 2017
Common Stock
Additional
Voting
Non-Voting
Paid-in
Accumulated
Shares
Amount
Shares
Amount
Capital
Deficit
Total
Balance - January 1, 2017
12,886,741
$
1,289
—
$
—
$
102,476,267
$
(106,934,818
)
$
(4,457,262
)
Stock-based compensation
—
—
—
—
547,240
—
547,240
Shares issued in connection with acquisition
4,295,580
430
8,591,160
859
47,164,180
—
47,165,469
Net loss
—
—
—
—
—
(15,573,458
)
(15,573,458
)
Balance - June 30, 2017
17,182,321
$
1,719
8,591,160
$
859
$
150,187,687
$
(122,508,276
)
$
27,681,989
See notes to (unaudited) condensed consolidated
financial statements.
F-
3
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Six Months Ended June 30,
2017
2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(15,573,458
)
$
(10,624,804
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
395,194
234,394
Loss on disposal of fixed assets
4,155
—
Stock-based compensation
547,240
733,125
Amortization of debt discount
374,389
294,498
Amortization of license revenue
(71,417
)
(71,417
)
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable
(1,274,246
)
97,753
Inventories
66,766
(763,553
)
Prepaid expenses
(1,298,991
)
(527,032
)
Other assets
(475,291
)
—
Accounts payable
1,763,025
1,034,093
Accrued expenses
1,384,140
(363,884
)
Other current liabilities
(15,280
)
(15,280
)
Net cash used in operating activities
(14,173,774
)
(9,972,107
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of short-term investments
5,390,184
—
Purchase of short-term investments
—
(4,902,786
)
Purchase of property and equipment
(96,557
)
(58,034
)
Cash acquired in acquisition transaction
12,500,000
—
Net cash provided by (used in) investing activities
17,793,627
(4,960,820
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable
(2,777,778
)
—
Proceeds from issuance of common stock, net of offering expenses
—
13,072,741
Proceeds from issuance of related party note payable
15,000,000
—
Proceeds from issuance of note payable
—
4,000,000
Payment of debt issuance costs
(174,839
)
(24,200
)
Payments of leasehold improvement loan
(8,094
)
(7,400
)
Net cash provided by financing activities
12,039,289
17,041,141
Net increase in cash and cash equivalents
15,659,142
2,108,214
Cash and cash equivalents - beginning of period
9,914,867
10,440,959
Cash and cash equivalents - end of period
$
25,574,009
$
12,549,173
See notes to (unaudited) condensed consolidated
financial statements.
F-
4
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO (UNAUDITED) CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1.
ORGANIZATION AND BUSINESS
ADMA Biologics, Inc. ("ADMA" or the "Company")
is a vertically integrated biopharmaceutical and specialty immunoglobulin company that develops, manufactures and markets specialty
plasma-based biologics for the treatment of immune deficiencies and prevention of certain infectious diseases. The Company's
targeted patient populations include immune-compromised individuals who suffer from an underlying immune deficiency disease or
who may be immune-suppressed for medical reasons. The Company's products and product candidates are intended to be used by
physician specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases. ADMA operates
through its wholly-owned subsidiaries ADMA Plasma Biologics, Inc., ADMA BioManufacturing, LLC ("ADMA BioManufacturing")
and ADMA Bio Centers Georgia, Inc. ("ADMA BioCenters"). ADMA BioManufacturing was formed in January 2017 to facilitate
the acquisition of the Biotest Therapy Business Unit ("BTBU") of Biotest Pharmaceuticals Corporation ("BPC"
and, together with Biotest AG, "Biotest") as more fully described below. ADMA BioCenters is the Company's source
plasma collection business, with facilities located in Norcross, GA and Marietta, GA. Each ADMA BioCenters facility has approved
licenses with the U.S. Food and Drug Administration (the "FDA") and certifications from the German Health Authority
(the "GHA") and the Korean Ministry of Food and Drug Safety. ADMA BioCenters supplies ADMA with a portion of its raw
material plasma for the manufacture of RI-002, ADMA's lead product candidate, which the Company is currently developing for
the treatment of Primary Immune Deficiency Disease ("PIDD").
As discussed in Note 3, on June 6, 2017, ADMA completed the
acquisition of certain assets (the "Biotest Assets") of BTBU, which includes two FDA-licensed products, Nabi-HB®
(Hepatitis B Immune Globulin, Human) and Bivigam® (Immune Globulin Intravenous, Human). These products are manufactured at
the Company's plasma fractionation facility located in Boca Raton, Florida (the "Boca Facility") acquired in
the transaction. The facility is FDA-licensed and certified by the GHA. Immediately following the acquisition, the Biotest Assets
were contributed into ADMA BioManufacturing.
In addition to Nabi-HB® and Bivigam®, BTBU also provides
contract manufacturing for certain clients, including the sale of intermediate by-products.
Nabi-HB® is a hyperimmune globulin that is rich in antibodies
to the hepatitis B virus. Nabi-HB® is indicated for the treatment of acute exposure to blood containing hepatitis B surface
antigen ("HBsAg"), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBs-Ag-positive
persons and household exposure to persons with acute hepatitis B virus infection. Bivigam® is an Immune Globulin Intravenous
(Human), 10% Liquid, indicated for the treatment of primary humoral immunodeficiency.
FDA approval for Bivigam® was received on December 19, 2012,
and sales commenced in the first quarter of 2013. In November 2014, the FDA issued a warning letter to Biotest related to certain
issues identified at the Boca Facility. In December 2016, Biotest temporarily suspended the commercial production of Bivigam®
in order to focus on the completion of planned improvements to the manufacturing process in response to the November 2014 warning
letter issued by the FDA.
Prior to the closing of the acquisition, BTBU was the Company's
third-party manufacturer for RI-002. ADMA submitted a Biologics License Application for RI-002 (the "BLA") to the FDA
which was accepted for review during the third quarter of 2015. In July 2016, the FDA issued a Complete Response Letter (the "CRL")
to the Company for the BLA. The CRL reaffirmed the issues set forth in the November 2014 warning letter, and also identified certain
outstanding inspection issues and deficiencies at ADMA's third-party contract manufacturers and vendors and requested documentation
of corrections for a number of those issues. The FDA indicated in the CRL that it cannot grant final approval of the BLA until,
among other things, these deficiencies are resolved. The CRL did not cite any concerns with the clinical safety and efficacy data
for RI-002, nor did the FDA request any additional clinical studies be completed prior to FDA approval of RI-002.
ADMA's highest priority is to remediate the outstanding
compliance issues identified at the Boca Facility in the previously issued FDA warning letter. Since receiving the CRL, the Company
has worked diligently with its contract fill and finisher and contract testing laboratory, and the Company continues to address
the CRL and remediate the outstanding warning letter at the Boca Facility. With the completion of the acquisition of the Biotest
Assets, ADMA now has control over the drug substance manufacturing process and the Company anticipates that it will be in a position
to refile the BLA for RI-002 in mid-2018.
Concurrent with the closing of the acquisition of the Biotest
Assets, the Company received a $15.0 million loan from Biotest evidenced by a 6% subordinated note payable to BPC with a maturity
of 5 years (see Note 4), and BPC committed to participate in any future equity offering or private placement undertaken by the
Company in an amount equal to up to $12.5 million.
F-
5
As of June 30, 2017, the Company had working capital of $28.6
million, including $25.6 million of cash and cash equivalents. Based upon the Company's current projected revenue and expenditures
for 2017, including expected consulting fees for warning letter remediation, regulatory and consulting fees associated with RI-002
approval, continuing implementation of the Company's commercialization and expansion activities, as well as certain other
assumptions, management currently believes that its cash, cash equivalents, projected revenue and accounts receivable, along with
the additional equity commitment from Biotest, are sufficient to fund ADMA's operations, as currently conducted, into the
first quarter of 2018. These estimates may change based upon results from the Company's remediation efforts, the timing of
any required commercial manufacturing scale up activities, the various financing options ADMA is exploring, including the potential
refinancing of its current senior debt which, if achieved on favorable terms, would be expected to allow ADMA to extend its current
cash runway from the first quarter of 2018 well into the second half of 2018 and perhaps further, depending on the timing and structuring
of the loan facility, or if any other assumptions of the Company change. The Company does not currently have any other firm commitments
to obtain additional financing. Furthermore, if the Company's assumptions underlying its estimated expenses and revenues
are incorrect, it may have to raise additional capital sooner than currently anticipated.
Due to numerous risks and uncertainties associated with ongoing
remediations, the research and development and potential future commercialization of its products and product candidates, the Company
is unable to estimate with certainty the amounts of increased capital outlays and operating expenditures associated with its development
activities. The Company's current estimates may be subject to change as circumstances regarding its business requirements
evolve. The Company may decide to raise capital through public or private equity offerings or debt financings, or obtain a bank
credit facility or corporate collaboration and licensing arrangements. The Company does not have any existing commitments for future
external funding other than the additional equity commitment from Biotest. The sale of additional equity or debt securities, if
convertible, could result in dilution to the Company's stockholders. The incurrence of indebtedness would result in increased
fixed obligations and could also result in covenants that would restrict the Company's operations or other financing alternatives.
Additional equity or debt financing, grants, or corporate collaboration and potential licensing arrangements may not be available
on acceptable terms, if at all. If adequate funds are not available, the Company may be required to delay, reduce the scope of
or eliminate the Company's research and development programs, reduce the Company's planned clinical trials and delay
or abandon potential commercialization efforts of the Company's lead or other product candidates. The Company has reported
losses since inception in June 2004 through June 30, 2017 of $122.5 million. Management believes that the Company will continue
to incur net losses and negative net cash flows from operating activities to fund its research and development, commercial programs
and meet its obligations on a timely basis through the foreseeable future. As such, these factors raise substantial doubt about
the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements do not
include any adjustments relating to the recoverability and classification of asset carrying amounts and the classification of liabilities
that might be necessary from the outcome of this uncertainty.
ADMA's long-term liquidity will be dependent upon its
ability to raise additional capital, to fund its research and development and commercial programs and meet its obligations on a
timely basis. If ADMA is unable to successfully raise sufficient additional capital, it will likely not have sufficient cash flow
and liquidity to fund its business operations, forcing ADMA to curtail activities and potentially significantly reduce, or potentially
cease, operations. Even if ADMA is able to raise additional capital, such financings may only be available on unattractive terms,
resulting in significant dilution of stockholders' interests and, in such event, the value and potential future market price
of its common stock may decline.
There can be no assurance that the Company's research
and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject
to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements,
development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary
technology, and compliance with FDA and other governmental regulations and approval requirements.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited condensed consolidated financial
statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S.
GAAP") for interim financial information. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP
as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the
Financial Accounting Standards Board (the "FASB").
F-
6
The accompanying unaudited condensed consolidated financial
statements should be read in conjunction with the annual audited consolidated financial statements and related notes thereto as
of and for the year ended December 31, 2016 included in the Company's Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission (the "SEC") on February 24, 2017. These condensed consolidated interim financial statements
have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X, and therefore omit or condense
certain footnotes and other information normally included in consolidated interim financial statements prepared in accordance with
U.S. GAAP. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management,
the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist
primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the
Company's financial position as of June 30, 2017 and its results of operations for the three and six months ended June 30,
2017 and 2016 and cash flows for the six months ended June 30, 2017 and 2016. Operating results for the six months ended June 30,
2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017.
Use of estimates
The preparation of financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Significant estimates include the fair value of assets acquired
and liabilities assumed in a business combination, valuation of inventory, assumptions used in the fair value determination of
stock-based compensation, warrants, and the allowance for the valuation of future tax benefits.
Business Combinations
The Company accounts for business combinations using the acquisition
method of accounting in accordance with FASB ASC 805,
Business Combinations
. Identifiable assets acquired, liabilities
assumed, and contingent consideration are recorded at their acquisition date fair values. Any change in the fair value of the acquisition-related
contingent consideration subsequent to the acquisition date, including changes from events after the acquisition date, will be
recognized in the period of the estimated fair value change. Goodwill represents the excess of the purchase price over the fair
value of identifiable assets acquired and liabilities assumed as a result of the business combination. Identifiable assets with
finite lives are amortized over their useful lives. Acquisition related costs are expensed as incurred.
Fair value of financial instruments
The carrying amounts of certain of the Company's financial
instruments, including cash and cash equivalents, short-term investments and accounts payable, are shown at cost which approximates
fair value due to the short-term nature of these instruments. The debt outstanding under the loan and security agreement with Oxford
Finance, LLC (see Note 4) approximates fair value due to variable interest rate. With respect to the related party note payable
in the amount of $15.0 million as of June 30, 2017 (see Notes 3 and 4), which is held by a principal stockholder of the Company
and was issued concurrent with an acquisition transaction with such stockholder, the Company has concluded that an estimation of
fair value for this note is not practicable.
Goodwill
Goodwill represents the excess of purchase price over the fair
value of net assets acquired by the Company. Goodwill at June 30, 2017 and December 31, 2016 was $3.5 million and $0, respectively.
All of the Company's goodwill is attributable to its ADMA BioManufacturing business segment. The following table presents
the changes in the carrying amount of goodwill during the six months ended June 30, 2017:
Balance as of January 1, 2017
$
—
Goodwill recorded in connection with the acquisition of the Biotest Assets
3,529,509
Balance as of June 30, 2017
$
3,529,509
Goodwill is not amortized, but assessed for impairment on an
annual basis or more frequently if impairment indicators exist. The Company has the option to perform a qualitative assessment
of goodwill to determine whether it is more likely than not that the fair value of its reporting units is less than its carrying
amount, including goodwill and other intangible assets. If the Company concludes that this is the case, then it must perform a
two-step goodwill impairment process.
The first step compares a reporting unit's fair value
to its carrying amount to identify potential goodwill impairment. If the carrying amount of a reporting unit exceeds the reporting
unit's fair value, the second step of the impairment test must be completed to measure the amount of the reporting unit's
goodwill impairment loss, if any. Step two compares the carrying value of the reporting unit's goodwill to its implied fair
value, which is the fair value of the reporting unit less the fair value of the unit's assets and liabilities, including
identifiable intangible assets. If the implied fair value of goodwill is less than its carrying amount, a goodwill impairment loss
is recognized. The Company performs its annual goodwill impairment test as of October 1 of each year.
F-
7
Impairment of long-lived assets
The Company assesses the recoverability of its long-lived assets,
which include property and equipment and definite-lived intangible assets, whenever significant events or changes in circumstances
indicate impairment may have occurred. If indicators of impairment exist, projected future undiscounted cash flows associated with
the asset are compared to its carrying amount to determine whether the asset's value is recoverable. Any resulting impairment
is recorded as a reduction in the carrying value of the related asset in excess of fair value and a charge to operating results.
For the six months ended June 30, 2017 and 2016, the Company determined that there was no impairment of its long-lived assets.
Revenue recognition
Revenues for the six months ended June 30, 2017 are comprised
of revenues from Nabi-HB®, product revenues from the sale of normal source human plasma collected from the Company's
plasma collection centers segment and license and other revenues are primarily attributable to the out-licensing of RI-002 to Biotest
to market and sell in Europe and selected countries in North Africa and the Middle East. Biotest has provided the Company
with certain services and financial payments in accordance with the related Biotest license agreement and is obligated to pay the
Company certain amounts in the future if certain milestones are achieved. Deferred revenue is recognized over the term of
the Biotest license. Deferred revenue is amortized into income for a period of approximately 20 years, the term of the Biotest
license agreement.
Depending on the agreement with the customer, product revenues
from the sale of human plasma collected at the Company's plasma collection centers are recognized at the time of transfer
of title and risk of loss to the customer, which occurs at the time of shipment. Product revenues are recognized at the time
of delivery if the Company retains the risk of loss during shipment.  Revenue from license fees and research and development
services rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been
completed.
Revenue from sales of Nabi-HB® and Bivigam® is recognized
when the product reaches the customer's destination. For sales of intermediates, title typically transfers when the product
is delivered to a third party warehouse. With all other contract manufacturing, the title transfers to the customer when they take
possession of the product from the Boca Facility. As the Company maintains a significant risk of loss throughout the contract manufacturing
process, contract manufacturing revenue is not recognized until the product is released and title transfers to the customer. Nabi-HB®
revenue is net of estimated customer prompt pay discounts and contractual allowances in accordance with managed care agreements,
including wholesaler chargebacks, rebates, customer returns and other wholesaler fees.
For the six months ended June 30, 2017, two of the Company's
customers, SK Plasma Co., Ltd. ("SK") and BPC, represented 90% of the Company's total revenues, with BPC representing
approximately 75% of the Company's total revenues and SK representing approximately 15% of the Company's total revenues.
For the six months ended June 30, 2016, sales to BPC and SK represented 89% and 10%, respectively, of the Company's consolidated
revenues.
Cost of product revenue
Cost of product revenue includes expenses related to process
development as well as scientific and technical operations when these operations are attributable to marketed products. When the
activities of these operations are attributable to new products in development, the expenses are classified as research and development
expenses. Additionally, expenses associated with remediating the issues noted in the FDA warning letter are expensed as incurred
and are reflected in cost of product revenue in the accompanying consolidated statements of operations for the three and six months
ended June 30, 2017. As the Boca Facility has not yet resumed production, all operating expenses associated with the facility have
been expensed as incurred since acquisition.
Loss per common share
Basic net loss per share is computed by dividing net loss attributable
to common stockholders by the weighted average number of shares of common stock outstanding during the period. For purposes of
computing basic and diluted loss per share, the non-voting class of common stock is included in the common stock outstanding as
the characteristics of the non-voting class are substantially the same.
Diluted net loss per share is calculated by dividing net loss
attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of
shares of common stock, including the non-voting class of common stock, and dilutive common stock outstanding during the period.
Potentially dilutive common stock includes the shares of common stock issuable upon the exercise of outstanding stock options and
warrants (using the treasury stock method). Potentially dilutive common stock in the diluted net loss per share computation is
excluded to the extent that it would be anti-dilutive. No potentially dilutive securities are included in the computation of any
diluted per share amounts as the Company reported a net loss for all periods presented. The aggregate number of potentially dilutive
securities upon the exercise of outstanding warrants and stock options was 3.5 million and 1.8 million as of June 30, 2017 and
2016, respectively.
F-
8
Stock-based compensation
The Company follows recognized accounting guidance which requires
all equity-based payments, including grants of stock options, to be recognized in the statements of operations as compensation
expense, based on their fair values at the date of grant. The Company uses the Black-Scholes option pricing model to determine
the fair value of options granted. Compensation expense related to awards to employees and directors with service-based vesting
conditions is recognized on a straight-line basis based on the grant date fair value over the associated service period of the
award, which is generally the vesting term.
During the three and six months ended June 30, 2017, the Company
granted stock options to purchase 1,674,595 and 1,856,595 shares of common stock, respectively, to its directors and employees.
During the three and six months ended June 30, 2016, the Company granted stock options to purchase 15,000 and 100,984 shares of
common stock, respectively, to its directors and employees.
Recent Accounting Pronouncements
In May 2017, the FASB issued ASU No. 2017-09,
Modification
Accounting for Share-Based Payment Arrangements
, which amends the scope of modification accounting for share-based payment
arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which
an entity would be required to apply modification accounting under ASC 718. Specifically, an entity would not apply modification
accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the
modification. The ASU is effective for annual reporting periods, including interim periods within those annual reporting periods,
beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The Company does not
expect this new guidance to have a material impact on its condensed consolidated financial statements.
In January 2017, the FASB issued ASU No. 2017-01,
Business
Combinations – Clarifying the Definition of a Business
, which clarifies the definition of a business to assist entities
with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard
introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum,
an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal
years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted this standard
in the second quarter of 2017 and the adoption of this standard did not have a material impact on its condensed consolidated financial
statements for the six months ended June 30, 2017.
In January 2017, the FASB issued ASU 2017-04,
Intangibles
– Goodwill and Other (Topic 350),
which removes the requirement to compare the implied fair value of goodwill with
its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity should perform its
annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should
recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however,
the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU is effective prospectively
for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests
performed on testing dates after January 1, 2017. The Company does not expect this new guidance to have a material impact on its
condensed consolidated financial statements.
In March 2016, the FASB issued ASU No. 2016-09,
Improvements
to Employee Share-Based Payment Accounting (Topic 718),
which provides for simplification of certain aspects of employee
share-based payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for
forfeitures and classification on the statement of cash flows. The Company adopted this standard in the first quarter of 2017 and
the adoption of this standard did not have a material impact on its condensed consolidated financial statements as of and for the
six months ended June 30, 2017.
In February 2016, the FASB issued ASU No. 2016-02,
Leases
(Topic 842),
which requires lessees to recognize assets and liabilities for the rights and obligations created by most
leases on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim
periods within those fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all
leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The
Company is currently evaluating the impact the standard may have on its condensed consolidated financial statements and related
disclosures.
In November 2015, the FASB issued ASU No. 2015-17
, Income
Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes
, which includes amendments that require deferred tax liabilities
and assets be classified as non-current in a classified statement of financial position. The amendments in this ASU are effective
for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods
beginning after December 15, 2018. Earlier application is permitted as of the beginning of an interim or annual reporting
period. The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to
all periods presented. The Company adopted this standard in the second quarter of 2017. As the Company carried a full valuation
allowance against its deferred tax assets as of June 30, 2017 and December 31, 2016, adoption of this standard did not have a material
impact on its condensed consolidated financial statements.
F-
9
In September 2015, the FASB issued ASU No. 2015-16,
Business
Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments
, which includes amendments that require
an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined. The amendments in this ASU require that the acquirer record, in the
same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects,
if any, as a result of the changes
to the provisional amounts, calculated as if the accounting had been completed at
the acquisition date. The amendments in this ASU require an entity to present separately on the face of the income statement or
disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded
in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The
amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years
beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that
occur after the effective date of the ASU with earlier application permitted for financial statements that have not yet been made
available for issuance. The Company adopted this standard in the first quarter of 2017 and the adoption of this standard did not
have a material impact on its condensed consolidated financial statements as of and for the six months ended June 30, 2017.
In July 2015, the FASB issued ASU 2015-11,
Inventory
(Topic 330): Simplifying the Measurement of Inventory
. The standard requires entities to measure most inventory "at the
lower of cost and net realizable value," thereby simplifying the current guidance under which an entity must measure inventory
at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable
value). The Company adopted this standard in the first quarter of 2017 and the adoption of this standard did not have a material
impact on the Company's condensed consolidated financial statements as and for the six months ended June 30, 2017.
In May 2014, the FASB issued new guidance related to revenue
recognition, ASU 2014-09,
Revenue from Contracts with Customers ("ASC 606")
, which outlines a comprehensive
revenue recognition model and supersedes most current revenue recognition guidance. The new guidance requires a company to recognize
revenue upon transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in
exchange for those goods or services. ASC 606 defines a five-step approach for recognizing revenue, which may require a company
to use more judgment and make more estimates than under the current guidance. The new guidance becomes effective in calendar year
2018 and early adoption in calendar year 2017 is permitted. Two methods of adoption are permitted: (a) full retrospective adoption,
meaning the standard is applied to all periods presented; or (b) modified retrospective adoption, meaning the cumulative effect
of applying the new guidance is recognized at the date of initial application as an adjustment to the opening retained earnings
balance.
In March 2016, April 2016 and December 2016, the FASB issued
ASU No. 2016-08,
Revenue From Contracts with Customers (ASC 606): Principal Versus Agent Considerations
, ASU No. 2016-10,
Revenue
From Contracts with Customers (ASC 606): Identifying Performance Obligations and Licensing
, and ASU No. 2016-20,
Technical
Corrections and Improvements to Topic 606, Revenue From Contracts with Customers
, respectively, which further clarify the implementation
guidance on principal versus agent considerations contained in ASU No. 2014-09. In May 2016, the FASB issued ASU 2016-12,
Revenue
from Contracts with Customers
, narrow-scope improvements and practical expedients which provides clarification on assessing
the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts
at transition. These standards will be effective for the Company beginning in the first quarter of 2018. Early adoption is permitted.
As of June 30, 2017, the Company has not yet completed its final
review of the impact of this new revenue recognition guidance, including the new disclosure requirements, as it is continuing to
evaluate the impacts of adoption and the implementation approach to be used. The Company plans to adopt the new standard effective
January 1, 2018. The Company continues to monitor additional changes, modifications, clarifications or interpretations being
undertaken by the FASB, which may impact its current conclusions.
3.
ACQUISITION
On June 6, 2017, ADMA completed the acquisition of the Biotest
Assets from BPC. As a result of this transaction, the Company acquired Nabi-HB
®
and Bivigam
®
,
the Boca Facility and certain other assets of BTBU. The acquisition of the Biotest Assets expands the Company's product offering
with two FDA-approved products and provides direct control over the manufacturing and regulatory processes impacting the Company's
RI-002 product candidate, including remediation of the outstanding FDA warning letter previously issued to Biotest as well as certain
other remediation items affecting the Boca Facility. Pursuant to the acquisition, the Company issued to Biotest 4,295,580 voting
shares of its common stock and 8,591,160 non-voting shares of common stock. The Company will also transfer ownership of two of
its plasma centers to Biotest on January 1, 2019 as additional consideration.
F-
10
The purchase price was calculated as follows:
Issuance of 12,886,740 shares of common stock (voting and non-voting) valued at $3.66 per share
$
47,165,468
Transfer of two plasma collection centers
12,621,844
Total purchase price
$
59,787,312
The following table summarizes the preliminary allocation of
the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values:
Cash
$
12,500,000
Inventory
8,197,354
Land and buildings
20,000,000
Property and equipment
8,209,800
Assets held for sale
845,389
Other current assets
795,553
Trademark and other intangible rights to Nabi-HB
4,100,046
Right to intermediates
907,421
Customer contract
1,076,557
Goodwill
3,529,509
Liabilities assumed
(374,317
)
Total purchase price
$
59,787,312
The Company engaged various third party valuation specialists
to determine the fair value of the land and buildings, property and equipment, right to intermediates, customer contract and Nabi-HB
®
intangible
assets, as well as the assets held for sale. Some of the valuations and underlying analyses that were performed are preliminary
and are subject to change upon finalization of more detailed analyses of the facts and circumstances that existed at the date of
the transaction. Any such changes would change the allocation of the purchase price. Therefore, the foregoing purchase price allocation
is preliminary and subject to change within the measurement period.
Assets held for sale reflects certain manufacturing equipment
acquired in the transaction that will not be utilized in the manufacture or development of any of the Company's current products
or product candidates. The Company expects that the sale of these assets will be completed within one year from the date of the
acquisition transaction. Goodwill is expected to be deductible for tax purposes.
As a result of the foregoing transaction, BPC became a principal
stockholder and Biotest became a related party of the Company. Therefore, all transactions with Biotest subsequent to June 6, 2017,
including product and license revenues attributable to Biotest (see Note 2), are related party transactions. The results from BTBU's
operations are included in the Company's consolidated financial statements from the date of acquisition. The Company incurred
a total of approximately $5.7 million in transaction closing costs, which were expensed as incurred. For the three and six months
ended June 30, 2017, transaction closing costs amounted to approximately $1.2 million and $3.8 million, respectively.
The following unaudited pro forma summary presents consolidated
information of the Company as if the business combination had occurred on January 1, 2016. The pro forma information is presented
for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had
the acquisition been consummated as of that time or that may result in the future.
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Revenues:
As reported
$
3,399,401
$
2,271,744
$
6,028,272
$
4,395,630
Proforma
$
10,569,393
$
22,704,653
$
24,292,042
$
44,336,311
Net loss
As reported
$
(9,036,495
)
$
(6,012,335
)
$
(15,573,458
)
$
(10,624,804
)
Proforma
$
(12,751,262
)
$
(14,473,470
)
$
(24,826,749
)
$
(29,073,476
)
Basic and diluted net loss per share:
As reported
$
(0.55
)
$
(0.50
)
$
(1.06
)
$
(0.93
)
Proforma
$
(0.49
)
$
(0.58
)
$
(0.96
)
$
(1.20
)
F-
11
4.
DEBT
A summary of outstanding senior notes payable is as follows:
June 30, 2017
December 31, 2016
Oxford - Gross proceeds
$
20,000,000
$
20,000,000
Paydown of principal balance
(2,777,778
)
—
17,222,222
20,000,000
Less:
Debt discount
(1,194,847
)
(1,567,249
)
Current portion
(6,666,667
)
(6,111,111
)
Senior notes payable
$
9,360,708
$
12,321,640
Senior Notes Payable
On June 19, 2015, the Company entered into a Loan and Security
Agreement (the "LSA") with Oxford Finance, LLC ("Oxford"), for up to $21.0 million of debt financing in
two term loan tranches. The first term loan tranche of $16.0 million from the LSA (the "Term A Loan") was primarily
used to repay the Company's previous debt facility with Hercules Technology Growth Capital, Inc. dated December 2012.
On May 13, 2016, the Company amended the LSA with Oxford (the "Amended LSA") which provided ADMA with an additional
$4.0 million term loan (the "Term B Loan"), which brings the total principal amount borrowed to $20.0 million. The
outstanding term loans bear interest at a rate per annum equal to the greater of (i) 7.80% and (ii) the sum of (a) the three-month
U.S. LIBOR rate (as reported in
The Wall Street Journal
) on the date occurring on the last business day of the month
that immediately precedes the month in which the interest will accrue, plus (b) 7.54% on the outstanding principal balance. The
effective interest rates for the Term A Loan and the Term B Loan, including backend fees equal to 8.95% of the total funded amount,
are 11.4% and 13.04%, respectively. The Company began repaying the principal balance on February 1, 2017 in equal installments
for a period of 36 months, unless accelerated as a result of certain events of default. The backend fees are due at the earlier
of loan maturity or prepayment. All term loans mature no later than January 1, 2020. The loans are secured by the Company's
assets, except for its intellectual property (which is subject to a negative pledge). The LSA contains customary representations,
warranties and covenants, including limitations on incurring indebtedness, engaging in mergers or acquisitions and making investments,
distributions or transfers. The Company was in compliance with all such covenants as of June 30, 2017.
In the event the Company prepays a term loan for any reason,
the Company is obligated to pay a prepayment charge corresponding to a percentage of the principal amount of the applicable term
loan prepaid. The Amended LSA further modified the fees payable by the Company on mandatory or voluntary prepayment of a term loan
prior to its maturity date as follows:  (i) for a prepayment made on or after the funding date of the applicable term
loan through and including the first anniversary of its funding date, an amount equal to 3.00% of the principal amount of the term
loan prepaid; (ii) for a prepayment made after the first anniversary of the funding date of the applicable term loan through and
including the second anniversary of such funding date, an amount equal to 2.00% of the principal amount of such term loan prepaid;
and (iii) for a prepayment of a term loan made after the second anniversary of its funding date and prior to its maturity date,
an amount equal to 1.00% of the principal amount of the term loan prepaid.
Pursuant to the Amended LSA, (i) the Company paid a total facility
fee of $125,000; (ii) certain adjustments were made to the time periods for any applicable prepayment fees; and (iii) certain defined
terms were adjusted, including a new February 1, 2017 amortization date. The Amended LSA further provides for customary representations,
warranties and covenants for the Company. Except as otherwise amended, the Amended LSA does not alter the terms of the LSA.
Related Party Note Payable
A summary of the outstanding related party note payable is as
follows:
June 30, 2017
December 31, 2016
Biotest - Gross proceeds
$
15,000,000
$
—
Less:
Debt discount
(172,852
)
—
Note payable - related party
$
14,827,148
$
—
F-
12
In connection with the acquisition of the Biotest Assets (see
Note 3), ADMA BioManufacturing issued a subordinated note payable to BPC and in connection therewith received cash proceeds of
$15.0 million. The note bears interest at a rate of 6.0% per annum and matures on June 6, 2022. The Company is obligated to make
semi-annual interest payments, with all principal and unpaid interest due at maturity. The note is subordinate to the senior note
payable with Oxford. In the event of default, all principal and unpaid interest is due on demand. The subordinated note also contains
several non-financial covenants with which the Company was in compliance as of June 30, 2017. The Company incurred $0.2 million
of debt issuance costs in connection with the issuance of this note, which were recorded as a debt discount. The debt discount
is being amortized as interest expense over the term of the note.
5.
STOCKHOLDERS' EQUITY (DEFICIT)
In connection with the acquisition of the Biotest Assets (see
Note 3) the Company issued 4,295,580 shares of its voting common stock and 8,591,160 shares of its non-voting common stock, respectively.
The rights and preferences of the non-voting common are substantially the same as the common stock. BPC is prohibited from selling
such shares for six months following the acquisition of BTBU and is thereafter limited to selling shares of the Company in excess
of 15% of the outstanding shares of the Company in a 12-month period. The volume sale restriction expires on the three year anniversary
from the BTBU acquisition ("Standstill Period"). The non-voting common stock will automatically convert into common
stock upon (i) expiration of the Standstill Period, (ii) a liquidation event, (iii) Company insolvency, (iv) a permitted sale and
(v) certain dilutive issuances as defined in the Company's amended and restated certificate of incorporation.
On May 3, 2016, the Company completed an underwritten public
offering of 2,176,154 shares of its common stock, for gross proceeds of approximately $14.1 million. Net proceeds from this offering
were approximately $13.1 million, after payment of underwriting discounts and offering expenses of approximately $1.0 million.
The shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the
SEC on December 23, 2014.
Equity incentive plan
The fair value of stock options granted under the Company's
2007 Employee Stock Option Plan (the "2007 Plan") and the ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation
Plan, as amended and restated (the "2014 Plan"), was determined on the date of grant using the Black-Scholes option
valuation model. The Black-Scholes model was developed for use in estimating the fair value of publicly traded options, which have
no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective
assumptions including the expected stock price volatility. The stock options granted to employees and directors have characteristics
significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the
fair value estimate. Because there has been limited data related to the Company's common stock and very little historical experience
with the Company's stock options, similar public companies and a pro rata percentage of the Company's common stock were used
for calculating ADMA's volatility for comparison and expectations as to the assumptions required for fair value computation
using the Black-Scholes methodology. The following assumptions were used to determine the fair value of options granted during
the six months ended June 30, 2017 and 2016:
Six Months Ended
Six Months Ended
June 30, 2017
June 30, 2016
Expected term
5.8 - 6.3 years
5.8 - 6.3 years
Volatility
51-64%
51-52%
Dividend yield
0.0
0.0
Risk-free interest rate
1.77-2.29%
1.54-1.79%
The weighted average remaining contractual life of stock options
outstanding and expected to vest at June 30, 2017 is 8.0 years. The weighted average remaining contractual life of stock options
exercisable at June 30, 2017 is 5.3 years.
A summary of the Company's option activity under the 2007
Plan and 2014 Plan and related information is as follows:
Six Months Ended
June 30, 2017
Shares
Weighted Average Exercise Price
Outstanding at beginning of period
1,535,187
$
7.90
Forfeited
(62,836
)
$
9.12
Expired
(7,686
)
$
8.92
Granted
1,856,595
$
3.79
Outstanding at end of period and expected to vest
3,321,260
$
5.58
Options exercisable
1,277,674
$
7.66
F-
13
Stock-based compensation expense for the
three and six months ended June 30, 2017 and 2016 is as follows:
Three Months Ended
Six Months Ended
June 30,
June 30,
2017
2016
2017
2016
Research and development
$
68,434
$
132,277
$
121,417
$
288,833
Plasma centers
13,196
11,745
25,947
24,755
General and administrative
223,973
166,923
394,116
419,537
Cost of goods sold
5,760
—
5,760
—
Total stock-based compensation expense
$
311,363
$
310,945
$
547,240
$
733,125
As of June 30, 2017, the total compensation expense related
to unvested options not yet recognized totaled $4,934,857. The weighted average vesting period over which the total compensation
expense will be recorded related to unvested options not yet recognized at June 30, 2017 was approximately 3.1 years.
6.
INVENTORIES
The following table provides the components of inventories:
June, 30
2017
December 31
2016
Raw materials
$
9,376,705
$
5,020,146
Finished goods
3,774,028
—
Total inventories
$
13,150,733
$
5,020,146
Inventories are stated at the lower of cost or market with cost
being determined on the first-in, first-out method. Finished goods inventories as of June 30, 2017 is comprised of Nabi-HB
®
,
recorded at fair value as part of the purchase price allocation of the Biotest Assets acquired. All activities associated with
the production of inventories used in research and development activities are expensed as incurred.
7.
INTANGIBLE ASSETS
Intangible assets at June 30, 2017 and December 31, 2016 consist
of the following:
June 30, 2017
December 31, 2016
Cost
Accumulated Amortization
Net
Cost
Accumulated Amortization
Net
Trademark and other intangible rights related to Nabi-HB®
$
4,100,046
$
39,048
$
4,060,998
$
—
$
—
$
—
Right to intermediates
907,421
8,642
898,779
—
—
—
Customer contract
1,076,557
25,331
1,051,226
—
—
—
Total
$
6,084,024
$
73,021
$
6,011,003
$
—
$
—
$
—
F-
14
Under the previous contract manufacturing agreement between
ADMA and BPC, intermediate by-products derived from the manufacture of RI-002 were property of Biotest. As a result of the transaction,
ADMA now has the right to these intermediate products. The customer contract pertains to a contract manufacturing agreement with
a third party that the Company assumed upon the completion of the acquisition of the Biotest Assets. Amortization expense related
to these acquisition-related intangible assets for the three months and six months ended June 30, 2017 was $0.1 million. Estimated
aggregate future aggregate amortization expense for the next five years is expected to be as follows:
Remainder of 2017
$
547,657
2018
1,095,314
2019
1,095,314
2020
816,675
2021
715,352
8.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment and related
accumulated depreciation are summarized as follows:
June 30, 2017
December
    31, 2016
Manufacturing and laboratory equipment
$
8,176,699
$
306,411
Office equipment and computer software
256,856
188,277
Furniture and fixtures
473,638
1,030,257
Leasehold improvements
78,858
2,699,104
Land
11,700,000
—
Buildings
8,300,000
—
28,986,051
4,224,049
Less: Accumulated depreciation and amortization
(359,383
)
(2,223,265
)
$
28,626,668
$
2,000,784
Fixed assets are stated at cost less accumulated
depreciation. Depreciation is calculated using the straight-line method over the asset's estimated useful life. Land is not
depreciated. The buildings were assigned a useful life of 30 years. Property and equipment other than land and buildings have useful
lives ranging from 3 to 10 years. Leasehold improvements are amortized over the lesser of the lease term or their estimated useful
lives.
9.
RELATED PARTY TRANSACTIONS
The Company leases an office building and equipment from Areth,
LLC ("Areth") pursuant to a shared services agreement on a month-to-month basis of which terms were amended by the
Company's Board of Directors in June 2016. Rent expense amounted to $48,000 and $71,888 for the three months ended June
30, 2017 and 2016 respectively, and $96,000 for the six months ended June 30, 2017 and 2016. Areth is a company controlled
by Dr. Jerrold B. Grossman, the Company's Vice Chairman, and Adam S. Grossman, the Company's President and Chief Executive
Officer, and the Company pays Areth monthly fees for the use of such office space and for other information technology, general
warehousing and administrative services. The Company also reimburses Areth for office and building related (common area) expenses,
equipment and certain other operational expenses, which have not been material to the condensed consolidated financial statements
for the six months ended June 30, 2017 and 2016. The Company maintains deposits and other accounts at Pascack Bankcorp, a
bank of which Dr. Grossman served as a director through January 2016, and which was approximately 5%-owned by members of the Grossman
family. Pascack Bankcorp was acquired by Lakeland Bancorp, Inc. in January 2016 and Dr. Grossman is currently a member of the Corporate
Advisory Council of Lakeland Bancorp Inc.
As of June 30, 2017, the Company has a $15.0 million subordinated
note payable to BPC (see Note 4), and recognized approximately $60,000 of interest expense on this note for the three and six months
ended June 30, 2017.
For the three and six months ended June 30, 2017 and 2016, the
Company recognized revenues under its out-licensing agreement with Biotest of $35,708 and $71,417, respectively. Deferred revenue
of $2,761,450 and $2,832,867 as of June 30, 2017 and December 31, 2016 is related to this agreement.
Biotest is the Company's largest customer for the sale
of normal source plasma. Plasma sales to Biotest for the three and six months ended June 30, 2017 were approximately $2.4 million
and $4.5 million, respectively. Plasma sales to Biotest for the three and six months ended June 30, 2016 were approximately $1.8
million and $3.8 million, respectively. Accounts receivable includes approximately $1.2 million and $1.0 million due from Biotest
as of June 30, 2017 and December 31, 2016, respectively. Additionally, Biotest is a supplier of RSV plasma to ADMA, with the Company
purchasing approximately $0.3 million and $0.9 million of RSV plasma in the six months ended June 30, 2017 and 2016, respectively.
Included in accounts payable is approximately $48,000 and $82,000 due to Biotest as of June 30, 2017 and December 31, 2016, respectively.
The following table summarizes the related party balances with Biotest:
F-
15
Three Months Ended June 30,
Six Months Ended June 30,
2017
2016
2017
2016
Sale and purchase of plasma
Product revenue
$
2,362,059
$
1,781,428
$
4,454,274
$
3,840,190
Purchases
141,754
382,685
324,140
888,255
License revenue
35,708
35,708
71,417
71,417
Interest expense
60,000
—
60,000
—
June 30,
December 31,
2017
2016
Accounts receivable
$
1,209,733
$
969,675
Accounts payable
48,466
82,427
Accrued expenses
797,070
—
Note payable
15,000,000
—
Accrued interest
60,000
—
Deferred revenue
2,761,450
2,832,867
In connection with the acquisition of the Biotest Assets, the
Company entered into a Transition Services Agreement with BPC pursuant to which each of the Company and BPC agreed to provide
transition services to the other party, including services related to finance, human resources, information technologies, leasing
of equipment and clinical and regulatory services for a period of up to 24 months after the June 6, 2017 closing date, as well
as agreements to lease certain laboratory space within the Boca Facility to BPC for a period of up to 24 months after the closing
date of the acquisition transaction. As of June 30, 2017, $797,010 was payable by the Company to BPC for services rendered and
expenses incurred on behalf of the Company related to these agreements. This amount is reflected in accrued expenses in the accompanying
consolidated balance sheet.
Under the terms of the acquisition of the Biotest Assets, the
Company will transfer two plasma collection centers to BPC on January 1, 2019. The purchase price payable of $12.6 million as of
June 6, 2017 represents the fair value of this obligation.
10.
COMMITMENTS AND CONTINGENCIES
General Legal Matters
The Company is and may become subject to certain legal proceedings
        and claims arising in connection with the normal course of its business. In the opinion of management, there are currently no claims
        that would have a material adverse effect on its consolidated financial position, results of operations or cash flows.
Operating leases
In connection with the acquisition of the Biotest Assets,
the Company assumed two warehouse leases in Boca Raton, FL for additional storage space for raw materials, spare parts and other
supplies related to its business. These leases expire on December 31, 2017 and July 31, 2018, respectively. The aggregate minimum
lease payments for these two leases are approximately $9,000 per month. Additionally, in September 2016, BPC entered into a lease
for 36 months for certain specialized equipment related to process development. This equipment is utilized by the Company and
the Company reimburses BPC in the approximate amount of $3,500 per month.
F-
16
On February 17, 2017, ADMA BioCenters entered into a lease (the
"Lease") with Home Center Properties, LLC, a Georgia limited liability company ("Landlord"), for approximately
12,167 square feet located at 166 Earnest W. Barrett Parkway, Marietta, GA (the "Premises"). ADMA BioCenters will utilize
the Premises as a facility specializing in the collection of human plasma and blood, general office administration and any other
related use. The Lease has an initial term of approximately eight years and nine months (the "Initial Term"), commencing
upon substantial completion of "Landlord's Work" (as defined in the Lease) (the "Lease Commencement Date"),
with rent payments commencing 150 days after the Lease Commencement Date. The Lease Commencement Date is July 1, 2017. ADMA BioCenters'
total monthly cost of the Premises (inclusive of Landlord's "Operating Costs", "Taxes" and "Insurance
Charges" (as such terms are defined in the Lease)) will range from approximately $20,000 to $27,000 during the Initial Term.
Provided that the Lease is in full force and effect and that there has been no event of default (as defined in the Lease) beyond
the expiration of any applicable notice and cure period, ADMA BioCenters has the option to extend the term of the Lease for two
additional periods of five years each (each, an "Extension Term"), each Extension Term on the same terms, covenants
and conditions as the Lease, with the rent for each Extension Term to equal the mutually agreed fair market value of the Premises
on the commencement of such Extension Term. The Lease also contains customary default provisions, representations, warranties and
covenants.
Contract manufacturing agreement
In connection with the acquisition of the Biotest Assets, the
Company acquired all of the rights and assumed all of the obligations under an existing agreement with a third party related to
the fractionation of plasma provided by the third party. The agreement terminates on December 31, 2020, with 2020 being a wind-down
year. All other years have minimum production requirements as well as a payment due to the counterparty to the contract of $1.5
million per year if a minimum of 11 batches are not manufactured in that year.
Contract filler agreement
The Company has an agreement with a third party to fill and
package its plasma for sale to customers. BTBU's agreement with this same contract filler to package Nabi-HB
®
and
Bivigam
®
was not assigned to ADMA in the acquisition of the Biotest Assets. This contract filler is the only
provider approved by the FDA to fill and package these products. The Company is currently working with the contract filler to amend
its current agreement to include Nabi-HB
®
and Bivigam
®
in the existing ADMA contract. At
this time, the Company is not able to determine the impact that the proposed amendment would have on the overall terms of the contract.
Post-marketing commitments
In connection with the approval of the BLA for Bivigam
®
,
on December 19, 2012 Biotest committed to perform two additional post-marketing studies. The first is a pediatric study to evaluate
the efficacy and safety of Bivigam
®
in children and adolescents, and the second is a post-authorization safety
study to further assess the potential risk of hypotension and hepatic and renal impairment in Bivigam
®
-treated
patients with Primary Humoral Immunodeficiency. These studies are still pending completion, ADMA has assumed the remaining obligations,
and the costs of the studies will be expensed as they are incurred. The Company currently expects both studies to be completed
by the end of 2021. However, the timing of the completion of these studies is dependent upon the availability of Bivigam
®
and
the completion of the planned manufacturing process improvements.
11.
SEGMENTS
The Company is engaged in the development, manufacturing and
commercialization of human plasma and plasma-derived therapeutics. The Company's ADMA BioManufacturing segment reflects the
Company's immune globulin manufacturing and development operations in Florida, acquired on June 6, 2017 (see Note 3). The
Plasma Collection Centers segment consists of two FDA-licensed source plasma collection facilities located in Georgia, with a third
collection center scheduled to open in late 2017 (see Note 10). The Company defines its segments as those business units whose
operating results are regularly reviewed by the chief operating decision maker ("CODM") to analyze performance and
allocate resources. The Company's CODM is its President and Chief Executive Officer. Summarized financial information concerning
reportable segments is shown in the following tables:
Three Months Ended June 30, 2017
ADMA BioManufacturing
Plasma Collection
Centers
Corporate
Consolidated
Revenues
$
539,223
$
2,824,470
$
35,708
$
3,399,401
Cost of product revenue
2,498,856
1,835,163
—
4,334,019
Gross (loss) profit
(1,959,633
)
989,307
35,708
(934,618
)
Loss from operations
(3,118,300
)
(610,864
)
(4,672,704
)
(8,401,868
)
Other expense, net
(61,987
)
—
(572,640
)
(634,627
)
Net loss
(3,180,287
)
(610,864
)
(5,245,344
)
(9,036,495
)
Total assets
65,913,839
2,101,977
16,623,437
84,639,253
Depreciation and amortization expense
158,398
103,703
15,031
277,132
F-
17
Three Months Ended June 30, 2016
ADMA BioManufacturing
Plasma Collection
Centers
Corporate
Consolidated
Revenues
$
—
$
2,236,036
$
35,708
$
2,271,744
Cost of product revenue
—
1,344,241
—
1,344,241
Gross profit
—
891,795
35,708
927,503
Loss from operations
—
(402,507
)
(5,088,343
)
(5,490,850
)
Other expense, net
—
—
(521,485
)
(521,485
)
Net loss
—
(402,507
)
(5,609,828
)
(6,012,335
)
—
Total assets
—
2,509,903
29,232,086
31,741,989
Depreciation and amortization expense
—
102,330
13,671
116,001
Six Months Ended June 30, 2017
ADMA BioManufacturing
Plasma Collection
Centers
Corporate
Consolidated
Revenues
$
539,223
$
5,417,632
$
71,417
$
6,028,272
Cost of product revenue
2,498,856
3,451,450
—
5,950,306
Gross profit
(1,959,633
)
1,966,182
71,417
77,966
Loss from operations
(3,118,300
)
(1,113,464
)
(10,107,107
)
(14,338,871
)
Other expense, net
(61,987
)
—
(1,172,600
)
(1,234,587
)
Net loss
(3,180,287
)
(1,113,464
)
(11,279,707
)
(15,573,458
)
Capital expenditures
—
81,294
15,263
96,557
Depreciation and amortization expense
158,398
207,343
29,453
395,194
Six Months Ended June 30, 2016
ADMA BioManufacturing
Plasma Collection
Centers
Corporate
Consolidated
Revenues
$
—
$
4,324,213
$
71,417
$
4,395,630
Cost of product revenue
—
2,610,662
—
2,610,662
Gross profit
—
1,713,551
71,417
1,784,968
Loss from operations
—
(861,169
)
(8,788,217
)
(9,649,386
)
Other expense, net
—
—
(975,418
)
(975,418
)
Net loss
—
(861,169
)
(9,763,635
)
(10,624,804
)
—
Capital expeditures
—
32,733
25,301
58,034
Depreciation and amortization expense
—
207,519
26,875
234,394
F-
18
The "Corporate" column above
includes general and administrative overhead expenses. Total assets included in the "Corporate" column above includes
assets related to corporate and support functions.
12.
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Supplemental cash flow information for the six months ended
        June 30, 2017 and 2016 is as follows:
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest
$
833,515
$
681,470
Noncash Financing and Investing Activities:
Assets acquired through the issuance of common stock and liabilities assumed
$
60,161,629
$
—
Equipment acquired through related party payable
$
344,610
$
—
Accrued equity issuance costs
$
—
$
172,200
Accrued debt issuance costs
$
—
$
22,904
End of term liability for Oxford Note Payable
$
—
$
358,000
Warrants issued in connection with note payable
$
—
$
86,300
F-
19
Report of Independent Registered Public
Accounting Firm
To the Board of Directors and Stockholders
ADMA Biologics, Inc.
We have audited the accompanying consolidated
balance sheets of ADMA Biologics, Inc. and Subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements
of operations, changes in stockholders' (deficiency) equity, and cash flows for the years then ended. The Company's
management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.
We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of ADMA Biologics, Inc. and Subsidiaries
as of December 31, 2016 and 2015, and the results of their operations and their cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.
The accompanying consolidated financial
statements have been prepared assuming that the Company will continue as a going concern. As further discussed in Note 1 to the
accompanying consolidated financial statements, management believes that the Company will continue to incur net losses and negative
net cash flows from operating activities through the drug development, approval and commercialization preparation process. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ CohnReznick LLP
Roseland, New Jersey
February 24, 2017
F-
20
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2016 and 2015
December 31,
December 31,
2016
2015
ASSETS
Current Assets:
Cash and Cash Equivalents
$
9,914,867
$
10,440,959
Short-Term Investments
5,390,184
6,368,177
Accounts Receivable
1,018,027
924,468
Inventories
5,020,146
3,445,773
Prepaid Expenses
313,914
111,027
Total Current Assets
21,657,138
21,290,404
Property and Equipment at Cost, Net
2,000,784
2,396,950
Other Assets:
Deposits
27,163
27,163
Total Other Assets
27,163
27,163
TOTAL ASSETS
$
23,685,085
$
23,714,517
LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
Current Liabilities:
Accounts Payable
$
2,564,681
$
2,087,855
Accrued Expenses
2,385,356
1,968,384
Current Portion of Note Payable
6,111,111
—
Current Portion of Deferred Revenue
145,154
145,154
Current Portion of Leasehold Improvement Loan
16,559
15,139
Total Current Liabilities
11,222,861
4,216,532
Notes Payable, Net of Debt Discount
12,321,640
14,247,212
End of Term Liability, Notes Payable
1,790,000
1,432,000
Deferred Revenue, Net of Current Portion
2,690,033
2,832,867
Deferred Rent Liability
98,116
128,676
Leasehold Improvement Loan, Net of Current Portion
19,697
36,256
TOTAL LIABILITIES
28,142,347
22,893,543
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' (DEFICIENCY) EQUITY
Common Stock $0.0001 par value 75,000,000 shares
authorized, and 12,886,741 and 10,713,087 shares issued
and outstanding as of December 31, 2016 and December 31, 2015,
respectively
1,289
1,072
Additional Paid-In Capital
102,476,267
88,239,569
Accumulated Deficit
(106,934,818
)
(87,419,667
)
TOTAL STOCKHOLDERS' (DEFICIENCY) EQUITY
(4,457,262
)
820,974
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
$
23,685,085
$
23,714,517
See notes to consolidated financial statements
F-
21
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31, 2016 and 2015
2016
2015
REVENUES:
Product revenue
$
10,518,203
$
7,050,283
License and other revenue
142,834
127,350
Total Revenues
10,661,037
7,177,633
OPERATING EXPENSES:
Cost of product revenue
6,360,761
4,311,461
Research and development
7,688,238
7,015,946
Plasma centers
5,447,691
4,618,065
General and administrative
8,494,742
6,745,968
TOTAL OPERATING EXPENSES
27,991,432
22,691,440
LOSS FROM OPERATIONS
(17,330,395
)
(15,513,807
)
OTHER INCOME (EXPENSE):
Interest income
50,317
37,830
Interest expense
(2,239,569
)
(1,842,716
)
Other income
4,496
—
Change in fair value of stock warrants
—
67,860
Loss on extinguishment of debt
—
(719,097
)
OTHER EXPENSE, NET
(2,184,756
)
(2,456,123
)
NET LOSS
$
(19,515,151
)
$
(17,969,930
)
NET LOSS PER COMMON SHARE,
Basic and Diluted
$
(1.61
)
$
(1.73
)
WEIGHTED AVERAGE SHARES
OUTSTANDING, Basic and Diluted
12,153,407
10,412,305
See notes to consolidated financial statements
F-
22
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIENCY) EQUITY
Years Ended December 31, 2016 and 2015
Common Stock
Additional
Shares
Amount
Paid-in Capital
Accumulated
Deficit
Total
Balance - December 31, 2014
9,291,823
$
929
$
75,457,458
$
(69,449,737
)
$
6,008,650
Stock-based compensation
—
—
1,711,047
—
1,711,047
Issuance of common stock, net
1,408,750
141
10,245,239
—
10,245,380
Stock issued in connection with stock options exercised
7,514
1
49,226
—
49,227
Restricted stock
5,000
1
(1
)
—
—
Elimination of warrant liability
—
—
408,900
—
408,900
Warrants issued in connection with note payable
—
—
367,700
—
367,700
Net loss
—
—
—
(17,969,930
)
(17,969,930
)
Balance - December 31, 2015
10,713,087
1,072
88,239,569
(87,419,667
)
820,974
Stock-based compensation
—
—
1,250,074
—
1,250,074
Issuance of common stock, net
2,176,154
217
12,900,324
—
12,900,541
Restricted stock
(2,500
)
—
—
—
—
Warrants issued in connection with note payable
—
—
86,300
—
86,300
Net loss
—
—
—
(19,515,151
)
(19,515,151
)
Balance - December 31, 2016
12,886,741
$
1,289
$
102,476,267
$
(106,934,818
)
$
(4,457,262
)
See notes to consolidated financial statements
F-
23
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31, 2016 and 2015
2016
2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(19,515,151
)
$
(17,969,930
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
469,576
469,821
Stock-based compensation
1,250,074
1,711,047
Warrant liability
—
(67,860
)
Amortization of debt discount
676,943
353,635
Amortization of deferred financing costs
—
39,717
Payment-in-kind interest
—
124,536
Amortization of license and other revenue
(142,834
)
(127,350
)
Loss on extinguishment of debt
—
719,097
Changes in operating assets and liabilities:
Accounts receivable
(93,559
)
(540,507
)
Inventories
(1,574,373
)
(1,737,010
)
Prepaid expenses
(202,887
)
32,559
Accounts payable
476,826
202,994
Accrued expenses
416,972
(199,615
)
Deferred revenue
—
1,525,000
Deferred rent liability
(30,560
)
45,462
Net cash used in operating activities
(18,268,973
)
(15,418,404
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments
(15,680,000
)
(18,130,000
)
Redemptions of short-term investments
16,657,993
16,414,498
Purchase of property and equipment
(73,410
)
(26,073
)
Net cash provided by (used in) investing activities
904,583
(1,741,575
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Oxford note payable
4,000,000
16,000,000
Proceeds from issuance of common stock
14,145,000
10,257,380
Proceeds from stock options exercised
—
49,227
Repayment of Hercules note payable
—
(15,300,781
)
Prepayment penalty of early extinguishment of note payable
—
(229,512
)
Payment of debt issuance costs
(47,104
)
(228,065
)
Payment of Hercules end of term fee
—
(132,500
)
Equity issuance costs
(1,244,459
)
—
Payments of leasehold improvement loan
(15,139
)
(13,841
)
Net cash provided by financing activities
16,838,298
10,401,908
NET DECREASE IN CASH AND CASH EQUIVALENTS
(526,092
)
(6,758,071
)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
10,440,959
17,199,030
CASH AND CASH EQUIVALENTS - END OF YEAR
$
9,914,867
$
10,440,959
SUPPLEMENTAL INFORMATION:
Cash paid for interest
$
1,530,235
$
1,326,788
Supplemental Disclosure of Noncash Financing Activities:
Reclassification of equity issuance costs to additional paid-in capital
$
—
$
12,000
Warrants issued in connection with note payable
$
86,300
$
367,700
End of term liability in connection with note payable
$
358,000
$
1,432,000
Elimination of warrant liability
$
—
$
408,900
See notes to consolidated financial statements
F-
24
ADMA BIOLOGICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2016 AND 2015
1.
ORGANIZATION AND BUSINESS
ADMA Biologics, Inc. ("ADMA" or the "Company")
is a late stage biopharmaceutical company that develops, manufactures, and intends to commercialize specialty plasma-derived biologics
for the proposed treatment of immune deficiencies and prevention of certain infectious diseases. The Company's targeted patient
populations include immune-compromised individuals who suffer from an underlying immune deficiency disease or who may be immune-suppressed
for medical reasons. ADMA also operates through its wholly-owned subsidiary, ADMA Bio Centers Georgia Inc., ("ADMA BioCenters"),
a source plasma collection business with U.S. Food and Drug Administration ("FDA") approved facilities in Norcross,
Georgia and Marietta, Georgia. Each facility holds certifications from the German Health Authority ("GHA") and the
Korean Ministry of Food and Drug Safety ("MFDS"). ADMA BioCenters supplies ADMA with a portion of its raw material
plasma for the manufacture of RI-002, ADMA's lead product candidate, which the Company is currently developing for the treatment
of Primary Immune Deficiency Disease ("PIDD"). A Biologics License Application ("BLA") for RI-002 was submitted
to the FDA and accepted for review during the third quarter of 2015 for the treatment of PIDD. In July 2016, the FDA issued a Complete
Response Letter ("CRL") to the Company for its BLA for RI-002. The CRL did not cite any concerns with the clinical
safety or efficacy data for RI-002 submitted in the BLA, nor did the FDA request any additional clinical studies be completed prior
to FDA approval of RI-002. The FDA identified in the CRL, among other things, certain outstanding inspection issues and deficiencies
at the Company's third-party contract manufacturers and vendors and requested documentation of corrections for a number of
those issues. The FDA indicated in the CRL that it cannot grant final approval of the BLA until, among other things, these deficiencies
are resolved. Since receiving the CRL, the Company has worked diligently with its contract fill and finisher as well as the contract
testing laboratory. The Company has also continued to work with its third-party contract manufacturer, Biotest Pharmaceuticals
Corporation ("BPC"), and on January 21, 2017, the Company signed a definitive acquisition agreement to acquire certain
manufacturing and therapy-related assets from Biotest in Boca Raton, Florida, a wholly-owned subsidiary of Biotest Aktiengesellschaft
("Biotest") in efforts to address the CRL and remediate the outstanding warning letter at the manufacturing facility.
The acquisition of certain manufacturing and therapy-related assets of Biotest (the "Proposed Acquisition") is anticipated
to close during the first half of 2017. The Company and its vendors are awaiting certain feedback from the agency on submissions
already made and the Company intends to provide a timeline for resubmission of the BLA for RI-002 as soon as practicable.
The Company has experienced net losses and negative cash flows
from operations since inception in 2004 and expects these conditions to continue for the foreseeable future. Since inception, the
Company has needed to raise capital from the sales of its equity securities and debt financings to sustain operations. In May 2016,
the Company completed an underwritten public offering of its common stock, raising gross proceeds of approximately $14.1 million,
and subsequently borrowed an additional $4.0 million under its Loan and Security Agreement ("LSA") with Oxford Finance
LLC ("Oxford"), which brought the total principal borrowed to $20.0 million (see Note 5). In February and December
2014, the Company borrowed a total of $15 million from Hercules Technology Growth Capital, Inc. ("Hercules") and subsequently
refinanced its borrowings of $16 million with Oxford (see Note 5). In March 2015, ADMA completed an underwritten public offering
of its common stock, raising gross proceeds of $11.3 million. In June 2015, ADMA entered into the LSA with Oxford, as collateral
agent and lender, pursuant to which ADMA accessed an initial term loan in the aggregate principal amount of $16.0 million, of which
$15.7 million was used to repay the Hercules loan balance of $15.0 million, along with $0.4 million of interest, and $0.3 million
of prepayment premium and other fees, (the "Prior Loan Agreement").
As of December 31, 2016, the Company had working capital of
$10.4 million, consisting primarily of $9.9 million of cash and cash equivalents, $5.4 million of short-term investments, $1.0
million of accounts receivable, $5.0 million of inventories, and $0.3 million of prepaid expenses, offset primarily by the current
portion of note payable due to Oxford of $6.1 million, $2.6 million of accounts payable, $2.4 million of accrued expenses and $0.2
million of deferred revenue. Based upon the Company's projected revenue and expenditures for 2017, including the fees associated
to the Proposed Acquisition of certain BPC assets, regulatory and consulting fees for RI-002 associated with third-party manufacturers
and ongoing discussions with the FDA, continuing implementation of the Company's commercialization and expansion activities
and certain other assumptions, management currently believes that its cash, cash equivalents, short-term investments, projected
revenue and accounts receivable are sufficient to fund ADMA's operations, as currently conducted, into the second half of
2017. These estimates may change based upon the timing of the closing of the Proposed Acquisition of certain BPC assets, whether
or when the FDA approves RI-002, the timing of any required commercial manufacturing scale up activities or if any other assumptions
of the Company change.  This timing may also change based upon the timing of the completion of the Proposed Acquisition, anticipated
during the first half of 2017. Upon the closing of the Proposed Acquisition, BPC will be providing funds to ADMA consisting of:
$12.5 million in funding, $15.0 million in debt financing and an additional $12.5 million commitment towards a future equity financing
is expected to be sufficient to fund operations into the first quarter of 2018. There is no assurance that we will be able to successfully
close on the Proposed Acquisition. Other than the funding to be provided by BPC, the Company does not currently have arrangements
to obtain additional financing. Furthermore, if the Company's assumptions underlying its estimated expenses and revenues
are incorrect, it may have to raise additional capital sooner than anticipated. Due to numerous risks and uncertainties associated
with the research and development and potential future commercialization of its product candidate, the Company is unable to estimate
with certainty the amounts of increased capital outlays and operating expenditures associated with its development activities.
The Company's current estimates may be subject to change as circumstances regarding its business requirements evolve. The
Company may decide to raise capital through public or private equity offerings or debt financings, or obtain a bank credit facility
or corporate collaboration and licensing arrangements. The Company does not have any existing commitments for future external funding.
The sale of additional equity or debt securities, if convertible, could result in dilution to the Company's stockholders.
The incurrence of indebtedness would result in increased fixed obligations and could also result in covenants that would restrict
the Company's operations or other financing alternatives. Additional equity or debt financing, grants, or corporate collaboration
and potential licensing arrangements may not be available on acceptable terms, if at all. If adequate funds are not available,
the Company may be required to delay, reduce the scope of or eliminate the Company's research and development programs, reduce
the Company's planned clinical trials and delay or abandon potential commercialization efforts of the Company's lead
or other product candidates. The Company has reported losses since inception in June 2004 through December 31, 2016 of $106.9 million.
Management believes that the Company will continue to incur net losses and negative net cash flows from operating activities to
fund its research and development, commercial programs and meet its obligations on a timely basis through the foreseeable future.
As such, these factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying
consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying
amounts and the classification of liabilities that might be necessary from the outcome of this uncertainty.
F-
25
ADMA's long-term liquidity will be dependent upon on its
ability to raise additional capital, to fund its research and development and commercial programs and meet its obligations on a
timely basis. If ADMA is unable to successfully raise sufficient additional capital, it will likely not have sufficient cash flow
and liquidity to fund its business operations, forcing ADMA to curtail activities and, potentially significantly reduce, or potentially
cease operations. Even if ADMA is able to raise additional capital, such financings may only be available on unattractive terms,
resulting in significant dilution of stockholders' interests and, in such event, the value and potential future market price
of its common stock may decline.
There can be no assurance that the Company's research
and development will be successfully completed or that any product will be approved or commercially viable. The Company is subject
to risks common to companies in the biotechnology industry including, but not limited to, dependence on collaborative arrangements,
development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary
technology, and compliance with FDA and other governmental regulations and approval requirements.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following comprises the Company's significant accounting
policies:
Basis of presentation
The accompanying consolidated financial statements include the
accounts of ADMA Biologics, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have
been eliminated in consolidation.
Cash and cash equivalents
The Company considers all highly-liquid instruments purchased
with a maturity of three months or less to be cash equivalents. The Company purchases certificates of deposit with maturity schedules
of three, six, nine and twelve months. Instruments with original maturities greater than three months but less than twelve months
are included in short-term investments.
The Company regularly maintains cash and short-term investments
at third-party financial institutions in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance limit. While the
Company monitors the daily cash balances in the operating accounts and adjusts the balances as appropriate, these balances could
be impacted, and there could be a material adverse effect on the Company's business, if one or more of the financial institutions
with which the Company has deposits fails or is subject to other adverse conditions in the financial or credit markets. To date,
the Company has not experienced a loss or lack of access to its invested cash or cash equivalents; however, the Company cannot
provide assurance that access to its invested cash and cash equivalents will not be impacted by adverse conditions in the financial
and credit markets.
Inventories
Plasma inventories (both plasma intended for resale and plasma
intended for internal use in the Company's research and development and future anticipated commercialization activities of which
certain quantities are labeled as normal source and Respiratory Syncytial Virus, ("RSV") high titer) are carried at
the lower of cost or market value determined by the first-in, first-out method. Research and development plasma used in clinical
trials was processed to a finished product and subsequently expensed to research and development. Inventory at December 31, 2016
and 2015 consists of high titer RSV plasma and normal source plasma.
F-
26
Revenue recognition
Depending on the agreement with the customer, product revenues
from the sale of human plasma collected at the Company's FDA-licensed plasma collection centers are recognized at the time
of transfer of title and risk of loss to the customer, which occurs at the time of shipment. Product revenues are recognized at
the time of delivery if the Company retains the risk of loss during shipment. For the fiscal year ended December 31, 2016, two
of the Company's customers, SK Plasma Co., Ltd., "SK", and BPC, represented greater than 95% of our total revenues,
with BPC representing approximately 82% of our total revenues and SK representing approximately 14% of our total revenues.
Revenue from license fees and research and development services
rendered are recognized as revenue when the performance obligations under the terms of the license agreement have been completed.
Revenues for the year ended December 31, 2016 are comprised
of product revenues from the sale of normal source human plasma collected from the Company's plasma collection centers segment
and license and other revenues are primarily attributable to the out-licensing of RI-002 to Biotest AG to market and sell in Europe
and selected countries in North Africa and the Middle East. Biotest and BPC, a subsidiary of Biotest, have provided the Company
with certain services and financial payments in accordance with the related Biotest license agreement and is obligated to pay the
Company certain amounts in the future if certain milestones are achieved. During the third quarter of 2015, the Company recorded
deferred revenue of $1.5 million for a milestone payment provided to the Company after the BLA for RI-002 was filed with the FDA,
in accordance with the terms of the Biotest license agreement. Deferred revenue is recognized over the term of the Biotest AG license.
Deferred revenue is amortized into income for a period of approximately 20 years, the term of the Biotest license agreement.
Concentration of significant customers and accounts receivable
As of and for the years ended December 31, 2016 and 2015, the
Company's trade receivable balance and revenues were substantially attributable to two customers.
Research and development costs
The Company expenses all research and development costs as incurred,
of which such expenses include costs associated with planning and conducting clinical trials, manufacturing, quality, testing,
validation, regulatory consulting and filing fees and employees' compensation expenses directly related to R&D activities.
Use of estimates
The preparation of financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Significant estimates include valuation of inventory, assumptions used
in the fair value determination of stock-based compensation, warrants and the allowance for the valuation of future tax benefits.
Concentration of credit risk
Financial instruments which potentially subject the Company
to concentrations of credit risk consist of cash and cash equivalents and short-term investments.
Property and equipment
Fixed assets are stated at cost less accumulated depreciation.
Depreciation is calculated using the straight-line method over the asset's estimated useful life, which is five to ten years.
Leasehold improvements are amortized over the lesser of the lease term or their estimated useful lives.
Income taxes
The Company recognizes deferred tax liabilities and assets for
the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns.
Under this method, deferred tax liabilities and assets are determined on the basis of the difference between the tax basis of assets
and liabilities and their respective financial reporting amounts ("temporary differences") at enacted tax rates in
effect for the years in which the temporary differences are expected to reverse. The Company records a valuation allowance on its
deferred income tax assets if it is more likely than not that these deferred income tax assets will not be realized.
F-
27
The Company has no unrecognized tax benefits at December 31,
2016 and 2015. The Company's U.S. Federal and state income tax returns prior to fiscal year 2013 are closed and management
continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative
rulings.
The Company will recognize interest and penalties associated
with tax matters as income tax expense.
Earnings Loss Per Share
Basic net loss per share is computed by dividing net loss attributable
to common stockholders by the weighted average number of shares of common stock outstanding during the period.
Diluted net loss per share is calculated by dividing net loss
attributable to common stockholders as adjusted for the effect of dilutive securities, if any, by the weighted average number of
common stock and dilutive common stock outstanding during the period. Potential common stock includes the shares of common stock
issuable upon the exercise of outstanding stock options and warrants (using the treasury stock method). Potential common stock
in the diluted net loss per share computation is excluded to the extent that it would be anti-dilutive. No potentially dilutive
securities are included in the computation of any diluted per share amounts as the Company reported a net loss for all periods
presented. The aggregate number of potentially dilutive securities upon the exercise of outstanding warrants and stock options
was 1.8 million and 1.7 million as of December 31, 2016 and 2015, respectively.
Stock-based compensation
The Company follows recognized accounting guidance which requires
all stock-based payments, including grants of stock options, to be recognized in the statement of operations as compensation expense,
based on their fair values on the grant date. The estimated fair value of stock options granted under the Company's 2007
Employee Stock Option Plan (the "Plan") and the 2014 Omnibus Incentive Compensation Plan (the "2014 Plan")
is recognized as compensation expense over the option-vesting period.
During the years ended December 31, 2016 and 2015, stock options
to purchase 100,984 and 432,500 shares of common stock, respectively, were issued to employees and non-employee directors. During
the year ended December 31, 2016, options to purchase 21,334 shares of common stock were forfeited and options to purchase 8,666
shares of common stock expired. During the year ended December 31, 2015, options to purchase 7,514 shares of common stock were
exercised by an employee and options to purchase 9,710 shares of common stock were forfeited.
On June 19, 2014, at the Annual Meeting of Stockholders (the
"Annual Meeting"), the stockholders approved the 2014 Plan, which was approved by the Board of Directors of ADMA (the
"Board") on February 21, 2014. The maximum number of shares reserved for grant under the 2014 Plan is: (a) 800,000
shares; plus (b) an annual increase as of the first day of the Company's fiscal year, beginning in 2015 and occurring each
year thereafter through 2020, equal to the least of (i) 200,000 shares, (ii) 1% of the outstanding shares of common stock as of
the end of the Company's immediately preceding fiscal year, and (iii) any lesser number of shares determined by the Board;
provided, however, that the aggregate number of shares available for issuance pursuant to such increases shall not exceed a total
of 800,000 shares.
During the years ended December 31, 2016 and 2015, the Company
recorded stock-based compensation expense to employees of $1,250,074 and $1,711,047, respectively. The fair value of employee options
granted was determined on the date of grant using the Black-Scholes model. The Black-Scholes option valuation model was developed
for use in estimating the fair value of publicly traded options, which have no vesting restrictions and are fully transferable.
In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.
The Company's employee stock options have characteristics significantly different from those of traded options, and changes
in the subjective input assumptions can materially affect the fair value estimate. To determine the risk-free interest rate, the
Company utilized the U.S. Treasury yield curve in effect at the time of the grant with a term consistent with the expected term
of the Company's awards. The expected term of the options granted is in accordance with Staff Accounting Bulletins 107 and
110, which is based on the average between vesting terms and contractual terms. The expected dividend yield reflects the Company's
current and expected future policy for dividends on the Company's common stock. The expected stock price volatility for the
Company's stock options was calculated by examining the pro rata historical volatilities for similar publicly traded industry
peers and the trading history for the Company's common stock. The Company will continue to analyze the expected stock price
volatility and expected term assumptions. The Company has not experienced any material forfeitures of stock options and, as such,
has not established a forfeiture rate since the stock options currently outstanding are primarily held by the Company's senior
management and directors. The Company will continue to evaluate the effects of such future potential forfeitures, as they may arise,
to evaluate the Company's estimated forfeiture rate.
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The Company records compensation expense associated with stock
options and other forms of equity compensation using the Black-Scholes option-pricing model and the following assumptions:
Year Ended
Year Ended
December 31, 2016
December 31, 2015
Expected term
5.8-6.3 years
5.8-6.3 years
Volatility
51-52
%
51-58
%
Dividend yield
0.0
0.0
Risk-free interest rate
1.54-1.79%
1.49-2.14%
Fair value of financial instruments
The carrying amounts of certain of the Company's financial
instruments, including cash and cash equivalents, short-term investments, accounts payable, and notes payable are shown at cost
which approximates fair value due to the short-term nature of these instruments.
Recent Accounting Pronouncements
In January 2017, the Financial Accounting Standards Board, or
FASB, issued Accounting Standards Update, or ASU No. 2017-01,
Business Combinations – Clarifying the Definition of a Business,
which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as
acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not
a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output
to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods
within that reporting period. The Company does not expect this new guidance to have a material impact on its consolidated financial
statements.
In March 2016, the FASB, issued ASU No. 2016-09,
Improvements
to Employee Share-Based Payment Accounting (Topic 718),
which provides for simplification of certain aspects of employee share-based
payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for forfeitures
and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company in the first quarter of 2017 and
will be applied either prospectively, retrospectively or using a modified retrospective transition approach depending on the area
covered in this update. The adoption of this ASU is not expected to have a material impact on the Company's consolidated
financial statements and related disclosures.
In February 2016, the FASB issued ASU No. 2016-02,
Leases
(Topic 842),
which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases
on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods
within those fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all leases
existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company
is currently evaluating the impact the standard may have on its consolidated financial statements and related disclosures.
In November 2015, the FASB issued ASU No. 2015-17
, Income
Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes
, which includes amendments that require deferred tax liabilities
and assets be classified as non-current in a classified statement of financial position. The amendments in this ASU are effective
for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods
beginning after December 15, 2018. Earlier application is permitted as of the beginning of an interim or annual reporting period.
The amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods
presented. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements
and related disclosures.
In September 2015, the FASB issued ASU No. 2015-16,
Business
Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments
, which includes amendments that require
an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined. The amendments in this ASU require that the acquirer record, in the same
period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects,
if any, as a result of the changes
to the provisional amounts, calculated as if the accounting had been completed at
the acquisition date. The amendments in this ASU require an entity to present separately on the face of the income statement or
disclose in the notes the portion of the amount recorded in current period earnings by line item that would have been recorded
in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The
amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years
beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur
after the effective date of the ASU with earlier application permitted for financial statements that have not yet been made available
for issuance. The adoption of this ASU is not expected to have a material impact on the Company's consolidated financial
statements and related disclosures.
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In July 2015, the FASB issued ASU 2015-11,
Inventory (Topic
330): Simplifying the Measurement of Inventory
. The standard requires entities to measure most inventory "at the lower
of cost and net realizable value," thereby simplifying the current guidance under which an entity must measure inventory
at the lower of cost or market (market in this context is defined as one of three different measures, one of which is net realizable
value). The standard is effective for the Company prospectively beginning January 1, 2017. The adoption of ASU 2015-11 is not expected
to have a material impact on the Company's consolidated financial statements.
In April 2015, the FASB issued ASU 2015-03,
Interest—Imputation
of Interest
, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet
as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures
will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application
and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. The
Company adopted ASU 2015-03 in its second quarter 2015 consolidated financial statements and recast the prior period balances to
conform to the current period presentation.
In August 2014, the FASB issued ASU No. 2014-15,
Presentation
of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue
as a Going Concern,
which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties
in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's
ability to continue as a going concern within one year of the date of issuance of the entity's financial statements (or within
one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must
provide certain disclosures if there is "substantial doubt about the entity's ability to continue as a going concern."
The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity, and consistency of
related disclosures and improve convergence with International Financial Reporting Standards ("IFRS") (which emphasize
management's responsibility for performing the going-concern assessment). However, the time horizon for the assessment (look-forward
period) and the disclosure thresholds under GAAP and IFRSs will continue to differ. This guidance is effective for annual reporting
periods ending after December 15, 2016, and for annual periods and interim periods thereafter, with early adoption permitted. The
Company has adopted this standard which has not had a material impact on its consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09,
Revenue from Contracts
with Customers
, which requires that an entity recognize the amount of revenue to which it expects to be entitled for the transfer
of promised goods or services to its customers. In order to achieve this core principle, an entity should apply the following steps:
(1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction
price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as)
the entity satisfies a performance obligation. This update will replace existing revenue recognition guidance under GAAP, when
it becomes effective for us beginning January 1, 2018, with early adoption permitted in the first quarter of 2017. The updated
standard will permit the use of either the retrospective or cumulative effect transition method. The Company is currently assessing
the impact of the new guidance on its results of operations. Based on its procedures performed to date, nothing has come to the
Company's attention that would indicate that the adoption of ASU 2014-09 will have a material impact on its consolidated
financial statements, however, the Company will continue to evaluate this assessment. The Company has not yet selected a transition
method. The Company is still evaluating disclosure requirements under the new standard. The Company will continue to evaluate the
standard as well as additional changes, modifications or interpretations which may impact its current conclusions.
3.
PROPERTY AND EQUIPMENT
Property and equipment consist of the following at December 31,
2016
2015
Lab and office equipment
$
1,336,668
$
1,272,042
Computer software
188,277
188,277
Leasehold improvements
2,699,104
2,690,320
4,224,049
4,150,639
Less: Accumulated depreciation and amortization
(2,223,265
)
(1,753,689
)
$
2,000,784
$
2,396,950
The Company recorded depreciation and amortization expense of
$469,576 and $469,821 for the years ended December 31, 2016 and 2015, respectively.
4.
LEASEHOLD IMPROVEMENT LOAN
In connection with the lease of commercial real estate by the
Company's wholly-owned subsidiary for the operation of the plasma collection center, the Company borrowed $125,980 from the
lessor to pay for leasehold improvement costs in excess of the allowance provided for in the lease agreement. The loan bears interest
at 9% and is payable in 120 monthly installments of $1,596 maturing January 2019. Principal maturities under the loan are as follows:
2017
$
16,559
2018
18,113
2019
1,584
$
36,256
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30
5.
DEBT
Loan and Security Agreement
On June 19, 2015, the Company entered into an LSA with Oxford
for up to $21.0 million of debt financing in two term loan tranches. The first term loan tranche of $16.0 million from the LSA
(the "Term A Loan") was primarily used to repay the Company's previous debt facility with Hercules dated December
2012. As a result of prepaying the Hercules loan prior to maturity, the Company incurred a loss on extinguishment of debt of $0.7
million comprised of unamortized debt issuance costs, unamortized debt discount related to the warrants issued to Hercules, along
with a prepayment penalty.
The outstanding term loans bear interest at a rate per annum
equal to the greater of (i) 7.80% and (ii) the sum of (a) the three month U.S. LIBOR rate (as reported in
The Wall Street Journal
)
on the date occurring on the last business day of the month that immediately precedes the month in which the interest will accrue,
plus (b) 7.54% on the outstanding principal balance. The Company became obligated to begin to repay the principal over 36 months
beginning on February 1, 2017, unless accelerated as a result of certain events of default. A final payment equal to 8.95% of the
funded loan amount is due at the earlier of loan maturity or prepayment. All term loans mature no later than January 1, 2020. The
loans are secured by the Company's assets, except for its intellectual property (which is subject to a negative pledge).
The LSA contains customary representations, warranties and covenants, including limitations on incurring indebtedness, engaging
in mergers or acquisitions and making investments, distributions or transfers.
In connection with the entry into the LSA, on June 19, 2015,
the Company issued to Oxford a seven-year warrant, expiring on June 19, 2022, to purchase 74,309 shares of common stock at an exercise
price of $8.51 per share. The Company recorded $367,700 as the fair value of the warrant to additional paid-in capital and as a
debt discount to the carrying value of the loan. The key assumptions used to value the warrants included: (i) volatility of 57%
on our common stock based upon a pro rata percentage of our common stock's volatility and similar public companies'
volatilities for comparison; (ii) an expected dividend yield of 0.0%; (iii) a risk-free interest rate of 1.99%; and (iv) a term
of seven years. As a result of prepaying the Company's prior loan before maturity, the Company incurred a loss on extinguishment
of debt of $0.7 million comprised of unamortized debt issuance costs and unamortized debt discount related to the warrants issued
to the Company's prior lender, along with a prepayment penalty.
In May 2016, the Company amended the LSA with Oxford (the "Amended
LSA") which provided ADMA with an additional $4.0 million term loan (the "Term B Loan"), the availability of
which was conditioned on completing an equity financing of its common stock of at least $10.0 million in gross proceeds no later
than May 31, 2016. On May 3, 2016, the Company completed an underwritten public offering of its common stock, raising gross proceeds
of approximately $14.1 million and subsequently borrowed the additional $4.0 million from Oxford under the Amended LSA, which brings
the total principal amount borrowed to $20.0 million.
In the event the Company prepays a term loan for any reason,
the Company is obligated to pay a prepayment charge corresponding to a percentage of the principal amount of the applicable term
loan prepaid. The Amended LSA further modified the fees payable by the Company on mandatory or voluntary prepayment of a term loan
prior to its maturity date as follows: (i) for a prepayment made on or after the funding date of the applicable term loan through
and including the first anniversary of its funding date, an amount equal to 3.00% of the principal amount of the term loan prepaid;
(ii) for a prepayment made after the first anniversary of the funding date of the applicable term loan through and including the
second anniversary of such funding date, an amount equal to 2.00% of the principal amount of such term loan prepaid; and (iii)
for a prepayment of a term loan made after the second anniversary of its funding date and prior to its maturity date, an amount
equal to 1.00% of the principal amount of the term loan prepaid.
Pursuant to the Amended LSA, (i) the Company paid a total facility
fee of $125,000, consisting of $105,000 previously paid and an additional $20,000 paid on the date the Term B Loan was funded;
(ii) certain adjustments were made to the time periods for any applicable prepayment fees; and (iii) certain defined terms were
adjusted, including a new Amortization Date that is defined as (a) February 17, 2017, if the Term C Loan is not made and (b) August
1, 2017 if the Term C Loan is made. The Amended LSA further provides for customary representations, warranties and covenants for
the Company. Except as otherwise amended, the Amended LSA does not alter the terms of the LSA.
In connection with the Amended LSA, on May 13, 2016, the Company
issued to Oxford a seven-year warrant, expiring on May 23, 2023, to purchase 24,800 shares of common stock at an exercise price
of $6.37 per share, equal to 3.95% of the amount drawn of such tranche, divided by the average reported closing price per share
of common stock for the consecutive 10 trading days prior to the applicable draw in accordance with the Company's drawdown
of the Term B Loan. The Company recorded $86,300 as the fair value of the warrant to additional paid-in capital and as a debt discount
to the carrying value of the loan. The key assumptions used to value the warrants included: volatility of 53.5% on the Company's
common stock based upon a pro rata percentage of the Company's common stock's volatility and similar public companies'
volatilities for comparison, an expected dividend yield of 0.0%, a risk-free interest rate of 1.51% and a term of seven years.
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31
A summary of the Oxford loan balance is as follows:
December 31, 2016
December 31, 2015
Gross proceeds
$
20,000,000
$
16,000,000
Less: debt discount, net
End of term fee
(1,155,157
)
(1,250,194
)
Warrants
(257,201
)
(310,196
)
Financing fees
(154,891
)
(192,398
)
Note payable
$
18,432,751
$
14,247,212
Future amortization of financing fees for each of the years
subsequent to December 31, 2016 are as follows:
2017
$
708,720
2018
529,888
2019
328,641
$
1,567,249
6.
STOCKHOLDERS' EQUITY
On May 3, 2016, the Company completed an underwritten public
offering of 2,176,154 shares of its common stock, for gross proceeds of approximately $14.1 million. Net proceeds from this offering
were approximately $13.0 million, after payment of underwriting discounts and offering expenses of approximately $1.1 million.
The shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the
SEC on December 23, 2014.
On March 18, 2015, the Company closed an underwritten sale of
1,225,000 shares of its common stock, as well as 183,750 additional shares of its common stock pursuant to the full exercise of
the over-allotment option granted to the underwriters, for gross proceeds of approximately $11.3 million. Net proceeds from this
offering were approximately $10.2 million, net of underwriting discounts and offering expenses of approximately $1.1 million. The
shares were sold under a shelf registration statement on Form S-3 (File No. 333-200638) that was declared effective by the SEC
on December 23, 2014.
Oxford and Hercules Debt Financing Warrant Issuance
In May 2016, the Company issued to Oxford warrants to purchase
an aggregate of up to 24,800 shares of the Company's common stock at an exercise price equal to $6.37 per share. The warrants
became exercisable on May 13, 2016 for cash or by net exercise and will expire seven years after their issuance on May 13, 2023.
In connection with the LSA with Oxford, on June 19, 2015, the Company issued to Oxford a seven year warrant, expiring on June 19,
2022, to purchase 74,309 shares of common stock at an exercise price of $8.51 per share. In connection with the Prior Loan Agreement
with Hercules, on December 21, 2012, the Company issued to Hercules a warrant to purchase 31,750 shares of common stock with an
exercise price of $7.56, subject to customary anti-dilution adjustments. In connection with the Loan Amendment, the Company issued
to Hercules a warrant to purchase 23,200 and 34,800 shares of common stock of the Company in February and December 2014, respectively,
with an exercise price set at the lower of (i) $7.50 per share or (ii) the price per share of the next round of financing from
the expiration of the exercise price adjustment, subject to customary anti-dilution adjustments. The warrant expires after 10 years
and has piggyback registration rights with respect to the shares of common stock underlying the warrant. The down round warrant
protection feature resulting in the warrant liability's quarterly "mark-to-market" valuation has terminated as
of the end of the one-year period following the amended Loan Closing on February 24, 2014 (see Note 5).
7.
RELATED PARTY TRANSACTIONS
The Company leases an office building and equipment from an
entity owned by related parties on a month-to-month basis of which terms were amended by the Company's Board of Directors
in June 2016. Rent expense amounted to $192,000 and $96,448 for the years ended December 31, 2016 and 2015, respectively. The Company
also reimburses its landlord and affiliates for office and building related (common area) expenses, equipment and certain other
operational expenses, which have been insignificant to the consolidated financial statements for the years ended December 31, 2016
and 2015. The Company maintains deposits and other accounts at a bank which was less than 5%-owned by related parties through January
2016, and where a stockholder and Company director was previously a member of the bank's board of directors through January
2016, and is now a member of its Corporate Advisory Council.
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8.
COMMITMENTS AND CONTINGENCIES
Lease commitments
The Company has entered into leases for its ADMA BioCenters'
facilities located in Norcross, Georgia and in Marietta, Georgia. The Norcross, Georgia lease, the term of which was extended by
five years on January 1, 2014 pursuant to the first of two available five-year renewal options, expires on September 30, 2023,
and the Marietta, Georgia lease expires on January 31, 2024. Total rent expense for its New Jersey and Georgia facilities during
the years ended 2016 and 2015 was approximately $535,000 and $420,000, respectively.
Future minimum lease payments for both leases, for each of the
five years ending December 31 and thereafter are as follows:
2017
$
359,059
2018
362,774
2019
375,198
2020
376,812
2021
381,329
Thereafter
732,079
$
2,587,251
Vendor and Licensor Commitments
On December 31, 2012, the Company entered into a Manufacturing,
Supply and License Agreement with BPC, which replaces a prior agreement that expired on December 31, 2012. Under the agreement,
the Company agreed to purchase exclusively from BPC its worldwide requirements of RSV immune globulin manufactured from human plasma
containing RSV antibodies. The term of the agreement is for a period of ten years from January 1, 2013, renewable for two additional
five-year periods at the agreement of both parties. The Company is obligated under this agreement to purchase a minimum of at least
one lot of product during each calendar year after the finished product is approved by the FDA. This number is subject to increase
at the Company's option. As consideration for BPC's obligations under the agreement, the Company is obligated to pay
a dollar amount per lot of RSV immune globulin manufactured from human plasma containing RSV antibodies, as well as a percentage
royalty on the sales thereof and of RI-002, up to a specified cumulative maximum. The agreement may be terminated by either party
(a) by reason of a material breach if the breaching party fails to remedy the breach within 120 days after receiving notice of
the breach from the other party, (b) upon bankruptcy, insolvency, dissolution, or winding up of the other party, or (c) if the
other party is unable to fulfill its obligations under the agreement for 120 consecutive days or more as a result of (a) or (b)
above. The parties have agreed to a mutual release with respect to any claims relating to or arising from any breach or default
under the existing Manufacturing Supply and License Agreement and Master Services Agreement between the Company and BPC.
In a separate license agreement effective December 31, 2012,
the Company granted BPC an exclusive license to market and sell RSV antibody-enriched Immune Globulin Intravenous ("IVIG")
in Europe and in selected countries in North Africa and the Middle East, collectively referred to as the Territory, to have access
to the Company's testing services for testing of BPC's plasma samples using the Company's proprietary RSV assay,
and to reference (but not access) the Company's proprietary information for the purpose of BPC seeking regulatory approval
for the RSV antibody-enriched IVIG in the Territory. As consideration for the license, BPC agreed to provide the Company with certain
services at no charge and also compensate us with cash payments upon the completion of certain milestones. Such services have been
accounted for as deferred revenue which were recorded in 2013 as a result of certain research and development services as provided
for in accordance with a license agreement. Deferred revenue is recognized over the term of the license and is amortized into income
for a period of approximately 20 years, the term of the license agreement. BPC is also obligated to pay the Company an adjustable
royalty based on a percentage of revenues from the sale of RSV antibody-enriched IVIG in the Territory for 20 years from the date
of first commercial sale. Additionally, BPC has agreed to grant the Company an exclusive license for marketing and sales in the
U.S. and Canada for BPC's Varicella Zoster Immune Globulin ("VZIG"); however, as a result of the Proposed Acquisition
the terms associated to VZIG will be terminated upon the closing of the Proposed Acquisition during the first half of 2017.
F-
33
Pursuant to the terms of a Plasma Purchase Agreement with BPC,
the Company has agreed to purchase from BPC an annual minimum volume of source plasma containing antibodies to RSV to be used in
the manufacture of RI-002. This volume will increase at the earlier of the Company's receipt of a BLA from the FDA, or March
31, 2016. The Company must purchase a to-be-determined and agreed upon annual minimum volume from BPC but may also collect high-titer
RSV plasma from up to five wholly-owned ADMA BioCenters. During 2015, BPC and ADMA amended their Plasma Purchase Agreement to allow
ADMA the ability to collect its raw material RSV high-titer plasma from other third party collection organizations, thus allowing
ADMA to expand its reach for raw material supply as the Company approaches commercialization for RI-002. Unless terminated earlier,
the agreement expires in November 2021, after which it may be renewed for two additional five-year periods if agreed to by the
parties. Either party may terminate the agreement if the other party fails to remedy any material default in the performance of
any material condition or obligation under the agreement following notice. Either party may also terminate the agreement, after
providing written notice, if a proceeding under any bankruptcy, reorganization, arrangement of debts, insolvency or receivership
law is filed by or against the other party, and is not dismissed or stayed, or a receiver or trustee is appointed for all or a
substantial portion of the assets of the other party, or the other party makes an assignment for the benefit of its creditors or
becomes insolvent. The Company may also terminate the agreement upon written notice if the clinical development of its product
candidate is halted or terminated, whether by the FDA, a Data Safety Monitoring Board, or any other regulatory authority. Upon
termination of the agreement, the Company must pay for any source plasma already delivered to the Company and for any source plasma
collected under the terms of the agreement. As part of the acquisition of certain assets of BPC, BPC and ADMA amended the Plasma
Purchase Agreement, to extend the purchase from BPC an annual minimum of plasma containing antibodies to RSV for ten years through
the closing date of the transaction which is anticipated during the first half of 2017.
Employment contracts
The Company has entered into employment agreements with its
executive management team consisting of its President and Chief Executive Officer, Chief Medical and Scientific Officer and Chief
Financial Officer.
General legal matters
The Company is and may become subject to certain legal proceedings
and claims arising in connection with the normal course of its business. In the opinion of management, there are currently no claims
that would have a material adverse effect on its consolidated financial position, results of operations or cash flows.
Other commitments
In the normal course of business, the Company enters into contracts
that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company
indemnifies its directors and officers who are, or were, serving at the Company's request in such capacities. The Company's
maximum exposure under these arrangements is unknown as of December 31, 2016. The Company does not anticipate recognizing any significant
losses relating to these arrangements.
9.
STOCK OPTIONS
The Company has adopted two stock option plans. On July 16,
2007 (the "Effective Date"), the Company's Board and stockholders adopted the 2007 Plan. On July 17, 2012, the
Company's Board and stockholders amended the 2007 Plan to increase the aggregate number of options available for grant to
903,224. On February 21, 2014 the Board approved the 2014 Plan, which was approved by stockholders at the Annual Meeting of Stockholders
(the "Annual Meeting") on June 19, 2014. Additionally, the Board also, approved subject to stockholder approval at
the Annual Meeting under the Prospective Plan, 800,000 shares of common stock plus an annual increase to be added as of the first
day of the Company's fiscal year, beginning in 2015 and occurring each year thereafter through 2020, equal to the lower of
200,000, or 1% of the outstanding shares of common stock as of the end of the Company's immediately preceding fiscal year
and any lesser number of shares determined by the Board, provided that the aggregate number of shares available for issuance pursuant
to such increases shall not exceed a total of 800,000 shares reserved for issuance under the terms of the 2014 Plan. As of December
31, 2016, the aggregate options approved in the 2007 Plan and 2014 Plan are 1,903,273 with 1,535,187 outstanding and expected to
vest and 368,086 available for future issuance. During the year ended December 31, 2016, there were 21,334 options forfeited and
8,666 options expired; such options were included in the stock option plans.
The 2007 and 2014 Plans provides for the Board or a Committee
of the Board (the "Committee") to grant awards to optionees and to determine the exercise price, vesting term, expiration
date and all other terms and conditions of the awards, including acceleration of the vesting of an award at any time. All options
granted under the 2007 and 2014 Plans are intended to be incentive stock options ("ISOs"), unless specified by the
Committee to be non-qualified options ("NQOs") as defined by the Internal Revenue Code. ISOs and NQOs may be granted
to employees, consultants or Board members at an option price not less than the fair market value of the common stock subject to
the stock option agreement. The following table summarizes information about stock options outstanding as of December 31, 2016
and 2015:
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34
Year Ended
Year Ended
December 31, 2016
December 31, 2015
Weighted
Weighted
Average
Average
Exercise
Exercise
Shares
Price
Shares
Price
Outstanding at beginning of period
1,464,203
$
8.02
1,048,927
$
7.24
Forfeited
(21,334
)
8.02
(9,710
)
9.16
Expired
(8,666
)
7.88
(7,514
)
6.55
Granted
100,984
6.20
432,500
9.92
Outstanding at end of period and expected to vest
1,535,187
7.90
1,464,203
8.02
Options exercisable
1,179,143
$
7.64
880,457
$
7.19
Weighted average fair value of options
granted during the year
$
—
$
5.25
The weighted average remaining contractual term of stock options
outstanding and expected to vest at December 31, 2016 is 6.4 years. The weighted average remaining contractual term of stock options
exercisable at December 31, 2016 is 5.8 years.
Stock-based compensation expense for the years ended December
31, 2016 and 2015 was:
2016
2015
Research and development
$
439,982
$
724,776
Plasma centers
52,973
48,386
General and administrative
757,119
937,885
Total stock-based compensation expense
$
1,250,074
$
1,711,047
As of December 31, 2016, the total unrecognized compensation
expense related to unvested options totaled $1,616,337. The weighted-average vesting period over which the total compensation expense
will be recorded related to unvested options at December 31, 2016 was approximately 2.2 years.
The aggregate intrinsic value is calculated as the difference
between (i) the closing price of the common stock at December 31, 2016 and (ii) the exercise price of the underlying awards, multiplied
by the number of options that had an exercise price less than the closing price on the last trading day. The Company's outstanding
and exercisable options had an intrinsic value of $260,974 as of December 31, 2016.
10.
INCOME TAXES
A reconciliation of income taxes at the U.S. Federal statutory
rate to the benefit for income taxes is as follows:
Year Ended December 31,
2016
2015
Benefit at U.S. Federal statutory rate
$
(6,635,151
)
$
(6,109,776
)
State taxes - deferred
(266,312
)
(124,874
)
Increase in valuation allowance, inclusive of true-ups
5,755,413
6,021,614
Research and development credits
(322,499
)
(389,355
)
Other
1,468,549
602,391
Benefit for income taxes
$
—
$
—
A summary of the Company's deferred tax assets is as follows:
December 31,
2016
2015
Federal and state net operating loss carryforwards
$
30,843,479
$
25,834,860
Federal and state research credits
4,099,249
4,353,534
Transaction costs
652,695
—
Deferred revenue
972,345
1,020,872
Accrued expenses and other
747,586
350,675
Total gross deferred tax assets
37,315,354
31,559,941
Less: valuation allowance for deferred tax assets
(37,315,354
)
(31,559,941
)
Net deferred tax assets
$
—
$
—
F-
35
We have incurred substantial losses during our history. As of
December 31, 2016, we had Federal and state Net Operating Losses, ("NOLs") of $87.8 million and $75.2 million, respectively,
as well as Federal research and development tax credit carryforwards of approximately $4.1 million. The $87.8 million and $75.2
million in Federal and state NOLs, respectively, will begin to expire at various dates beginning in 2027, if not limited by triggering
events prior to such time. Under the provisions of the Internal Revenue Code, changes in our ownership, in certain circumstances,
will limit the amount of Federal NOLs that can be utilized annually in the future to offset taxable income. In particular, Section
382 of the Internal Revenue Code imposes limitations on a company's ability to use NOLs upon certain changes in such ownership.
If we are limited in our ability to use our NOLs in future years in which we have taxable income, we will pay more taxes than if
we were able to utilize our NOLs fully. We may experience ownership changes in the future as a result of subsequent shifts in our
stock ownership that we cannot predict or control that could result in further limitations being placed on our ability to utilize
our Federal NOLs.
A valuation allowance, if needed, reduces deferred tax assets
to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to
be realized, the Company assesses all available positive and negative evidence. This evidence includes, but is not limited to,
prior earnings history, expected future earnings, carry-back and carry-forward periods and the feasibility of ongoing tax strategies
that could potentially enhance the likelihood of the realization of a deferred tax asset. The weight given to the positive and
negative evidence is commensurate with the extent the evidence may be objectively verified. As such, it is generally difficult
for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh
objective negative evidence of recent financial reporting losses. Based on these criteria and the relative weighting of both the
positive and negative evidence available, management continues to maintain a full valuation allowance against its net deferred
tax assets.
11.
SEGMENTS
The Company is engaged in the development and commercialization
of human plasma and plasma-derived therapeutics. The Company also operates two FDA-licensed source plasma collection facilities
located in Norcross, Georgia and Marietta, Georgia. The Company defines its segments as those business units whose operating results
are regularly reviewed by the chief operating decision maker ("CODM") to analyze performance and allocate resources.
The Company's CODM is its President and Chief Executive Officer.
The plasma collection center segment includes the Company's
operations in Georgia. The research and development segment includes the Company's plasma development operations in New Jersey.
Summarized financial information concerning
reportable segments is shown in the following tables:
Year Ended December 31,
Plasma Collection
Research and
2016
Centers
Development
Corporate
Consolidated
Revenues
$
10,518,203
$
—
$
142,834
$
10,661,037
Cost of product revenue
6,360,761
—
—
6,360,761
Gross profit
4,157,442
—
142,834
4,300,276
Loss from operations
(1,290,249)
(7,688,238)
(8,351,908)
(17,330,395)
Other expense
—
—
(2,184,756)
(2,184,756)
Loss before income taxes
(1,290,249)
(7,688,238)
(10,536,664)
(19,515,151)
Total assets
2,421,535
—
21,263,550
23,685,085
Depreciation and
amortization expense
414,464
—
55,112
469,576
Year Ended December 31,
Plasma Collection
Research and
2015
Centers
Development
Corporate
Consolidated
Revenues
$
7,050,283
$
—
$
127,350
$
7,177,633
Cost of product revenue
4,311,461
—
—
4,311,461
Gross profit
2,738,822
—
127,350
2,866,172
Loss from operations
(1,879,243)
(7,015,946)
(6,618,618)
(15,513,807)
Other expense
—
—
(2,456,123)
(2,456,123)
Loss before income taxes
(1,879,243)
(7,015,946)
(9,074,741)
(17,969,930)
Total assets
2,719,641
—
20,994,876
23,714,517
Depreciation and
amortization expense
419,301
—
50,520
469,821
The "Corporate" column includes general and administrative
overhead expenses. Total assets included in the "Corporate" column above includes assets related to corporate and support
functions.
F-
36
12.
OTHER EMPLOYEE BENEFITS
The Company sponsors a 401(k) savings plan. Under the plan,
employees may make contributions which are eligible for a Company discretionary percentage contribution as defined in the plan
and determined by the Board of Directors. The Company recognized approximately $0.2 million and $0.1 million of related compensation
expense for the years ended December 31, 2016 and 2015, respectively.
13.
SUBSEQUENT EVENTS
Summary of Proposed Acquisition of Certain Assets of BPC
On January 21, 2017, the Company and its wholly-owned subsidiary,
ADMA BioManufacturing, LLC, a Delaware limited liability company ("ADMA BioManufacturing"), entered into a definitive
Master Purchase and Sale Agreement (as amended, restated, supplemented, or otherwise modified from time to time (the "Purchase
Agreement") with BPC, and for certain limited purposes set forth in the Purchase Agreement, Biotest, and Biotest US Corporation,
a Delaware corporation and subsidiary of Biotest (together with Biotest, the "Biotest Guarantors"), pursuant to which
ADMA BioManufacturing has agreed to acquire certain assets and assume certain liabilities constituting the therapy business of
BPC (the "BTBU"). The foregoing transactions and the other transactions contemplated by the Purchase Agreement are
collectively referred to as the "Proposed Acquisition." The Business includes (a) a FDA-licensed immune globulin manufacturing
and plasma products production facility of two buildings in Boca Raton, Florida, and the associated real property, (b) all exclusive
rights to FDA licensed biologics products Nabi-HB®, BIVIGAM® and the investigational product CIVACIR®, (c) in-process
inventory with an agreed-upon value of at least $5.0 million, (d) certain other properties and assets used exclusively in the Business,
and (e) certain additional assets which relate to both the Business and BPC's plasma business the arrangement with respect
to which will be documented in a transition services agreement to be mutually agreed by the parties between the signing of the
Purchase Agreement and the closing of the Proposed Acquisition.
Subject to the terms and conditions of the Purchase Agreement,
(i) upon the closing, the Company has agreed to assume certain liabilities of BPC related to the Business, including, without limitation,
related to (x) product liabilities, breach of warranty, product complaints, product returns, post-market commitments, recalls,
adverse event reporting, product deviation reporting, lookbacks, market withdrawals and field corrections or similar claims for
injury to person or property with respect to the Business or any product of the Business to the extent such liabilities relate
to products manufactured and sold by ADMA BioManufacturing after the closing (other than inventory transferred to the Company at
the closing, which will be allocated 50% to ADMA BioManufacturing and 50% to BPC if not traceable to acts or omissions of a particular
party); and (y) other regulatory matters, whether related to the pre-closing or post-closing period and including any liabilities
related to the products of the Business, the FDA warning letter (the warning letter issued by the FDA to BPC in connection with
outstanding issues requiring remediation at the manufacturing facility in Boca Raton, Florida), noncompliance with applicable laws
and legal proceedings related to the foregoing, but excluding such liabilities that arise out of any fraud, willful misconduct
or intentional misrepresentation by BPC prior to the closing (the "Assumed Liabilities"); (ii) upon the closing, the
Company has agreed to deliver to BPC an aggregate equity interest in the Company equal to 50%, less one share, of its issued and
outstanding capital stock (calculated as of immediately following the closing and on a post-closing issuance basis) (the "Biotest
Equity Interest"), consisting of (x) common stock representing 25% of the Company's issued and outstanding common stock,
equal to 4,295,580 common shares and (y) non-voting common stock equal to 8,591,160 shares of the Company's non-voting common
stock representing the balance of the Biotest Equity Interest which is convertible into common stock of the Company upon the occurrence
of certain specified events; (iii) upon the closing, the Company agreed to issue to BPC warrants, if any, necessary to acquire
additional shares of the Company's capital stock equal to the excess, if any, of (x) the number of shares represented by
rights, options and warrants issued by the Company between September 12, 2016 until the closing, over (y) 184,000 shares; and (iv)
on January 1, 2019, pursuant to the terms of a separate purchase agreement to be entered into by the parties at the closing, the
Company has agreed to sell, transfer and convey to BPC for no additional consideration, all of its right, title and interest in
and to the Company's certain biocenter located in Norcross, Georgia and the Company's certain biocenter located in
Marietta, Georgia, which are subject to a repurchase right in favor of the Company if within five years after January 1, 2019,
the Biotest stockholders and its related entities own less than 20% of the Company's issued and outstanding capital stock.
As part of the consideration, upon the closing, BPC will also be granted the right to designate one director and one observer to
the Company's board of directors, and under certain circumstances, BPC will be granted the right to designate an additional
director.
F-
37
Additionally, on the closing date, BPC has agreed to (i) deliver
to the Company a capital contribution of $12.5 million in respect of the Biotest Equity Interest, which capital contribution will
be contributed by BPC to ADMA BioManufacturing; and (ii) fund a $15.0 million unsecured subordinated loan to the Company, which
(a) will bear interest at a rate of 6% per annum, payable semiannually in arrears, (b) has a term of five years and (c) will not
be subject to any prepayment penalty or other breakage costs. Such loan will be subordinated to the Company's existing indebtedness
as of the signing of the Purchase Agreement and any additional indebtedness approved by the Company's board of directors
which is secured only by a mortgage on the owned real property acquired in connection with the transaction. Such loan will rank
pari passu with all additional indebtedness approved by the Company's board of directors that is not secured only by a mortgage
on such owned real property and if such additional indebtedness is secured, the loan from BPC will be secured on a pari passu basis
with such additional indebtedness. At any time after the closing, if the Company undertakes an underwritten equity financing or
a Private Investment in Public Equity, or PIPE, offering involving at least one unrelated third party, Biotest and/or BPC have
agreed to participate pro rata in accordance with the Biotest Equity Interest up to an aggregate amount equal to $12.5 million.
Upon the closing, the parties will also enter into a ten-year
plasma supply agreement, pursuant to which (x) BPC will sell to the Company high titer Hepatitis B plasma at a specified price
(indexed by inflation), and (y) the Company will purchase from BPC all Hepatitis B plasma necessary to produce Nabi-HB® unless
the Company requires more than a specified amount, in which case the Company may use alternative sources for the excess quantity.
Additionally, the parties have agreed to a mutual release with respect to any claims relating to or arising from any breach or
default under the Manufacturing Supply and License Agreement and Master Services Agreement between the Company and BPC. The mutual
release is effective as of the signing of the Purchase Agreement conditioned on the closing of the Proposed Acquisition at which
time the Manufacturing Supply and License Agreement and Master Services Agreement will terminate and the mutual release will no
longer be conditional.
The Purchase Agreement contains customary representations and
warranties of the parties, including, without limitation, with respect to: organization; power and authority; due authorization;
enforceability; capitalization; no conflict; no consents required; no actions; no orders; financial statements; indebtedness; no
undisclosed liabilities; absence of certain changes; taxes; contracts; customers and suppliers; intellectual property; title to
properties; real property; employee benefit plans; employees; insurance; compliance with laws; environmental; material permits;
inventory; affiliate transactions; and no brokers.
The Purchase Agreement also contains customary covenants and
agreements, including covenants and agreements of: BPC to conduct the Business in the ordinary course until the Proposed Acquisition
is completed or terminated and to not take certain actions relating to the Business during the interim period between signing and
closing, without the Company's prior consent not to be unreasonably withheld, conditioned or delayed; the Company to conduct
its business in the ordinary course until the Proposed Acquisition is completed or terminated and to not take certain actions relating
to its business during the interim period between signing and closing, without BPC's prior consent not to be unreasonably
withheld, conditioned or delayed; BPC not to compete with the Company in certain lines of business for a period of five years following
the closing date; BPC and the Biotest Guarantors not to solicit the Company's employees for one year following the closing
date; the Company not to solicit BPC's employees for one year following the closing date; and BPC not to interfere with the
Company's customers for five years following the closing date.
Subject to certain limitations, the Company or BPC may terminate
the Purchase Agreement if the Proposed Acquisition has not been consummated by September 30, 2017. A termination of the Purchase
Agreement under certain customary circumstances relating to (i) the Company's board of directors exercising their fiduciary
out will entitle BPC to receive from the Company a termination fee in an amount equal to $2.5 million; or (ii) the Company's
failure to obtain the requisite stockholder approval will entitle BPC to receive expense reimbursement in an amount up to $2.5
million. In no event will BPC be entitled to both a termination fee and expense reimbursement.
BPC and the Company will each indemnify the other party after
the closing for any losses arising from breaches of its representations, warranties, covenants and agreements in the Purchase Agreement.
In addition, the Company will indemnify BPC after the closing for any assumed liability, and BPC will indemnify the Company after
the closing for any excluded asset or excluded liability. The representations, warranties and pre-closing covenants generally survive
for 15 months following the closing of the transaction and each party's indemnification obligations with respect to (a) its
representations and warranties (other than its fundamental representations, which include representations related to taxes, organization,
due authorization, organizational documents, no conflicts; enforceability, title; sufficiency, the Amended and Restated Product
Distribution Agreement, effective as of January 19, 2016, by and between BPC and Kedrion Biopharma Inc., or the Kedrion Contract,
brokers, etc. and ownership of the Company's securities) are subject to a $25,000 mini-basket and $750,000 true deductible;
and (b) its representations and warranties (other than fundamental) and pre-closing covenants are subject to a $25.0 million cap.
BPC will be entering into a standstill with the Company, which
will limit BPC's ability to control the Company. BPC will also agree to a six (6) month lock-up of the sale of the Company's
securities.
The consummation of the Proposed Acquisition is subject to the
satisfaction of certain conditions, including approval of the Proposed Acquisition by the stockholders of ADMA and approval of
the amended and restated certificate of incorporation of the Company by the stockholders of ADMA. The Proposed Acquisition is not
subject to any financing conditions. There can be no assurance as to when the closing conditions will be satisfied, if at all.
F-
38
Upon consummation and closing of the Proposed Acquisition, the
Company believes it will be uniquely positioned to offer a fully vertically integrated plasma products and immune globulin platform
in the U.S.
Summary of Lease with Home Center Properties, LLC
On February 17, 2017, ADMA Bio Centers Georgia Inc. ("ADMA
BioCenters"), a Delaware corporation and a wholly-owned subsidiary of the Company, entered into a lease (the "Lease")
with Home Center Properties, LLC, a Georgia limited liability company ("Landlord"), for approximately 12,167 square
feet located at 166 Earnest W. Barrett Parkway, Marietta, Georgia 30066 (the "Premises"). Pursuant to the Lease, ADMA
BioCenters will utilize the Premises as a facility specializing in the collection of human plasma and blood, general office administration
and any other related use.
The Lease has an initial term of approximately eight years and
nine months (the "Initial Term"), commencing upon substantial completion of "Landlord's Work" (as
defined in the Lease) (the "Lease Commencement Date"), with rent payments commencing 150 days after the Lease Commencement
Date. ADMA BioCenters' total monthly cost of the Premises (inclusive of Landlord's "Operating Costs", "Taxes"
and "Insurance Charges" (as such terms are defined in the Lease)) will range from approximately $20,000 to $27,000
during the Initial Term;
provided
,
however
,
that
, provided ADMA BioCenters is not in default of the Lease
beyond the expiration of any applicable notice and cure period, ADMA BioCenters shall not be obligated to make any rent payments
for the first five calendar months of the Initial Term beginning on the Lease Commencement Date and the last four months of the
Initial Term beginning on the 102
nd
month after the Lease Commencement Date. Provided that the Lease is in full force
and effect and provided there has been no "Event of Default" (as defined in the Lease) beyond the expiration of any
applicable notice and cure period, ADMA BioCenters shall have the option to extend the term of the Lease for two additional periods
of five years each (each, an "Extension Term"), each Extension Term on the same terms, covenants and conditions as
the Lease, with the rent for each Extension Term to equal the mutually agreed fair market value of the Premises on the commencement
of such Extension Term. The Lease also contains customary default provisions, representations, warranties and covenants.
The foregoing summary of the material terms of the Lease is
qualified in its entirety by reference to the full text of the Lease, which is attached hereto as Exhibit 10.22 and incorporated
herein by reference.
F-
39
UNAUDITED PRO FORMA COMBINED FINANCIAL
STATEMENTS
The unaudited pro forma combined financial statements presented
below are derived from the historical financial statements of ADMA Biologics, Inc. (the "
Company
") and
Biotest Pharmaceuticals Corporation's therapy business (the "
Therapy Business Unit
"), adjusted
to give effect to the Company's acquisition of the Therapy Business Unit (the "
Acquisition
") (through
the Company's wholly owned subsidiary, ADMA BioManufacturing, LLC, a Delaware limited liability company).
To produce the pro forma financial information, the Company
used the purchase method of accounting and allocated the purchase price using its best estimates. The unaudited pro forma combined
financial statements should be read in conjunction with the accompanying notes and the respective historical financial information
from which it was derived, including:
·
The historical financial statements and the accompanying notes of the Company as of and for the years ended December 31, 2016 and 2015, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
·
The historical carve-out financial statements and the accompanying notes of the Therapy Business Unit as of and for the years ended December 31, 2016 and 2015.
·
The unaudited financial statements and the accompanying notes of the Company as of and for the three months ended March 31, 2017, included in the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2017.
·
The unaudited financial statements and the accompanying notes of the Therapy Business Unit as of and for the three months ended March 31, 2017.
The unaudited pro forma combined balance sheet as of March 31,
2017 gives effect to the Acquisition as if it had occurred on March 31, 2017. The unaudited pro forma combined statements of operations
for the year ended December 31, 2016 and the three months ended March 31, 2017 give effect to the Acquisition as if it had occurred
on January 1, 2016.
The pro forma adjustments are preliminary and have been made
solely for informational purposes. The actual results reported by the Company in periods following the Acquisition may differ significantly
from that reflected in these unaudited pro forma combined financial statements for a number of reasons, including but not limited
to cost savings from operating efficiencies, synergies, and the impact of the incremental costs incurred in integrating the Therapy
Business Unit. As a result, the pro forma combined financial statements are not intended to represent and do not purport to be
indicative of what the combined financial condition or results of operations of the Company and the Therapy Business Unit would
have been had the Acquisition been completed on the applicable dates. In addition, the pro forma combined financial statements
do not purport to project the future financial condition and results of operations of the Company or the Therapy Business Unit.
In the opinion of management, all necessary adjustments to the unaudited pro forma financial information have been made.
The pro forma combined financial statements are based on various
assumptions, including assumptions relating to the consideration paid and the allocation thereof to the assets acquired and liabilities
assumed from the Therapy Business Unit. The pro forma assumptions and adjustments are described in the accompanying notes presented
on the following pages. Pro forma adjustments are those that are directly attributable to the Acquisition, are factually supportable
and, with respect to the unaudited pro forma combined statements of operations, are expected to have a continuing impact on the
consolidated results. The final consideration paid and the allocation thereof may differ from that reflected in the pro forma combined
financial statements after final valuation procedures are concluded and estimates are refined. The unaudited pro forma combined
financial statements do not reflect any cost savings from operating efficiencies or synergies that could result from the Acquisition
or any potential reorganization and restructuring expenses.
F-
40
ADMA BIOLOGICS, INC. AND THE THERAPY
BUSINESS UNIT UNAUDITED PRO FORMA COMBINED BALANCE SHEET AS OF MARCH 31, 2017
ADMA Biologics, Inc.
The Therapy Business Unit
Pro Forma Adjustments
Footnote Reference
Pro Forma
ADMA Biologics,
Inc.
ASSETS
Current Assets:
Cash and Cash Equivalents
$
8,542,928
$             ─
$
27,310,149
A1
$
35,853,077
Short-Term Investments
245,000
─
─
245,000
Accounts Receivable
839,938
3,027,623
(3,027,623
)
A2
839,938
Inventories
5,308,492
9,660,822
(1,463,469
)
A3
13,505,845
Prepaid Expenses and Other Current Assets
746,846
1,750,992
(1,561,141
)
A4
936,697
Total Current Assets
15,683,204
14,439,437
21,257,916
51,380,557
Property and Equipment at Cost, Net
1,882,151
22,100,436
5,948,200
A5
29,930,787
Other Assets:
Intangible Assets, net
─
109,555
5,974,469
A6
6,084,024
Goodwill
─
─
3,529,509
A7
3,529,509
Long-term Deposits
─
518,678
(518,678
)
A8
─
Deposits
29,563
─
─
29,563
Assets to be transferred to BPCTU (LHI Plasma Centers)
─
─
1,802,107
A9
1,802,107
Total Other Assets
29,563
628,233
10,787,407
11,445,203
TOTAL ASSETS
$
17,594,918
$
37,168,106
$
37,993,523
$
92,756,547
LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
Current Liabilities:
Accounts Payable
$
3,904,445
$
3,713,744
$
(3,713,744
)
A10
$
3,904,445
Accrued Expenses
2,224,719
3,793,514
(1,490,197
)
A11
4,528,036
Current Portion of Note Payable
6,666,667
─
─
6,666,667
Current Portion of Deferred Revenue
145,154
─
─
145,154
Current Portion of Leasehold Improvement Loan
16,935
─
─
16,935
Total Current Liabilities
12,957,920
7,507,258
(5,203,941
)
15,261,237
Notes Payable, Net of Debt Discount
10,845,226
─
─
10,845,226
End of Term Liability, Notes Payable
1,790,000
─
─
1,790,000
Deferred Revenue, net of current portion
2,654,325
─
─
2,654,325
Deferred Rent Liability
90,476
─
─
90,476
Leasehold Improvement Loan
15,319
─
─
15,319
Other Liabilities
─
84,440
(84,440
)
A12
─
BPCTU Debt
─
─
15,000,000
A13
15,000,000
Purchase Price Payable on January 1, 2019 (2 Plasma Centers)
─
─
12,621,844
12,621,844
TOTAL LIABILITIES
28,353,266
7,591,698
22,333,463
58,278,427
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' (DEFICIENCY) EQUITY
Common Stock voting $0.0001 par value 75,000,000 shares authorized, and 17,182,321 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively
1,289
─
430
1,719
Common Stock non-voting $0.0001 par value 75,000,000 shares authorized, and 8,591,160 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively
─
─
859
859
Additional Paid-In Capital
102,712,144
─
47,164,179
149,876,323
Accumulated Deficit
(113,471,781
)
─
(1,929,000
)
(115,400,781
)
Net Invested Equity
─
29,576,408
(29,576,408
)
─
TOTAL STOCKHOLDERS' (DEFICIENCY) EQUITY
(10,758,348
)
29,576,408
15,660,060
34,478,120
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
$
17,594,918
$
37,168,106
$
37,993,523
$
92,756,547
See Notes to the Unaudited  Pro Forma Combined Financial
Statements.
F-
41
ADMA BIOLOGICS, INC. AND THE THERAPY
BUSINESS UNIT UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2016
ADMA Biologics, Inc.
The Therapy Business Unit
Pro Forma Adjustments
Footnote Reference
Pro Forma ADMA Biologics, Inc.
Statement of Operations Data:
REVENUES:
Product revenue
$
10,518,203
$
76,505,037
$
(460,000
)
A14
$
86,563,240
License and other revenue
142,834
─
─
142,834
Total Revenues
10,661,037
76,505,037
(460,000
)
86,706,074
COST OF GOODS SOLD
Total Cost of Goods Sold
6,360,761
106,944,127
(882,090
)
A15
112,422,798
GROSS MARGIN
4,300,276
(30,439,090
)
422,090
(25,716,724
)
Operating Expenses:
Research and development
7,688,238
5,414,784
(460,000
)
A14
12,643,022
Plasma centers
5,447,691
─
─
5,447,691
Amortization of intangibles
─
─
1,095,314
A16
1,095,314
General and administrative
8,494,742
28,237,172
(1,900,000
)
A17
34,831,914
TOTAL OPERATING EXPENSES
21,630,671
33,651,956
(1,264,686
)
54,017,941
LOSS FROM OPERATIONS
(17,330,395
)
(64,091,046
)
1,686,776
(79,734,665
)
OTHER INCOME (EXPENSE):
Interest income
50,317
7,447
─
57,764
Interest expense
(2,239,569
)
(157,176
)
(900,000
)
A13
(3,296,745
)
Other income
4,496
7,445
─
11,941
OTHER EXPENSE, NET
(2,184,756
)
(142,284
)
(900,000
)
(3,227,040
)
LOSS BEFORE INCOME TAXES
(19,515,151
)
(64,233,330
)
786,776
(82,961,705
)
Provision for income taxes
─
(20,575
)
─
(20,575
)
NET LOSS
$
(19,515,151
)
$
(64,253,905
)
$
786,776
$
(82,982,280
)
NET LOSS PER COMMON SHARE, Basic and Diluted
$
(1.61
)
$
(3.40
)
WEIGHTED AVERAGE SHARES
OUTSTANDING, Basic and Diluted
12,153,407
25,040,147
See Notes to the Unaudited  Pro Forma Combined Financial
Statements.
F-
42
ADMA BIOLOGICS, INC. AND THE THERAPY
BUSINESS UNIT UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017
ADMA Biologics, Inc.
The Therapy Business Unit
Pro Forma Adjustments
Footnote Reference
Pro Forma ADMA Biologics, Inc.
Statement of Operations Data:
REVENUES:
Product revenue
$
2,593,163
$
11,093,778
$            ─
$
13,686,941
License and other revenue
35,708
─
─
35,708
Total Revenues
2,628,871
11,093,778
─
13,722,649
COST OF GOODS SOLD
Cost of product revenue
1,616,287
16,166,476
137,454
A15
17,920,217
Total Cost of Goods Sold
1,616,287
16,166,476
137,454
17,920,217
GROSS MARGIN
1,012,584
(5,072,698
)
(137,454
)
(4,197,568
)
Operating Expenses:
Research and development
1,192,727
777,087
─
1,969,814
Plasma centers
1,479,476
─
─
1,479,476
Amortization of intangibles
─
─
273,828
A16
273,828
General and administrative
4,277,384
2,316,670
(2,569,845
)
A17
4,024,209
TOTAL OPERATING EXPENSES
6,949,587
3,093,757
(2,296,017
)
7,747,327
LOSS FROM OPERATIONS
(5,937,003
)
(8,166,455
)
2,158,563
(11,944,895
)
OTHER INCOME (EXPENSE):
Interest income
18,568
─
─
18,568
Interest expense
(618,528
)
─
(225,000
)
A13
(843,528
)
Other income
─
1,139
─
1,139
OTHER EXPENSE, NET
(599,960
)
1,139
(225,000
)
(823,821
)
LOSS BEFORE INCOME TAXES
(6,536,963
)
(8,165,316
)
1,933,563
(12,768,716
)
Provision for income taxes
─
(5,144
)
─
(5,144
)
NET LOSS
$
(6,536,963
)
$
(8,170,460
)
$
1,933,563
$
(12,773,860
)
NET LOSS PER COMMON SHARE, Basic and Diluted
$
(0.51
)
$
(0.63
)
$             ─
$
(0.50
)
WEIGHTED AVERAGE SHARES
OUTSTANDING, Basic and Diluted
12,886,741
12,886,740
─
25,773,481
See Notes to the Unaudited  Pro Forma Combined Financial
Statements.
F-
43
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS
The following unaudited pro forma combined
financial information describes the pro forma effect of our acquisition of the Therapy Business Unit on our balance sheet and statement
of operations as of and for the year ended December 31, 2016. Our unaudited pro forma combined financial statements reflect
the elimination of all intercompany balances between us and the Therapy Business Unit.
(1) ACQUISITION OF CERTAIN ASSETS FROM BIOTEST
On January 21, 2017, the Company and its
wholly-owned subsidiary, ADMA BioManufacturing, LLC, a Delaware limited liability company ("
Buyer
"),
entered into a definitive Master Purchase and Sale Agreement (as amended, restated, supplemented or otherwise modified from time
to time, the "
Purchase Agreement
") with Seller, and for certain limited purposes set forth in the Purchase
Agreement, Biotest AG ("
Biotest
") and Biotest US Corporation, a Delaware corporation and subsidiary of
Biotest (together with Biotest, the "
Biotest Guarantors
"), pursuant to which Buyer has agreed to acquire
certain assets and assume certain liabilities constituting the therapy business of Seller (the "
BPC Therapy Business
Unit
"). We refer to the foregoing transactions and the other transactions contemplated by the Purchase Agreement
collectively in this proxy statement as the "
Transaction
."
The BPC Therapy Business Unit has two FDA-approved
marketed biopharmaceutical products, Nabi-HB® ("
Nabi-HB
®
") and Bivigam® ("
Bivigam
®
").  These
products are manufactured at the BPC Therapy Business Unit's plasma fractionation facility located in Boca Raton, Florida
(the "
Boca Facility
").  The facility is FDA-licensed and certified by the German Health Authorities.  In
addition to Nabi-HB® and Bivigam®, the facility also provides contract manufacturing for certain clients, including the
sale of intermediate by-products to Biotest.  Nabi-HB® is a hyperimmune globulin that is rich in antibodies to the
hepatitis B virus.  Nabi-HB® is indicated for the treatment of acute exposure to blood containing hepatitis B surface
antigen ("
HBsAg
"), prenatal exposure to infants born to HBsAg-positive mothers, sexual exposure to HBs-AG-positive
persons and household exposure to persons with acute hepatitis B virus infection.  Bivigam® is an Immune Globulin
Intravenous (Human), 10% Liquid, indicated for the treatment of primary humoral immunodeficiency.  In December 2016,
the BPC Therapy Business Unit temporarily suspended the commercial production of Bivigam® in order to focus on the completion
of planned improvements to the process.
Sale of the BPC Therapy Business Unit
Pursuant to the Purchase Agreement, Seller
agreed to sell certain assets of the BPC Therapy Business Unit to ADMA in exchange for an equity interest in ADMA equal to 50%
less one share of the issued and outstanding ADMA capital stock immediately following the closing of the transaction, which consists
of 4,295,580 common voting shares and 8,591,160 non-voting common shares.  Seller will provide funding to ADMA at closing
in the form of $12.5 million in cash and a $15.0 million unsecured loan. The term of the loan will be five years with 6% interest.
The $15.0 million principal will be due at the end of the five year term. Furthermore, Seller will provide a firm equity commitment
to invest an additional $12.5 million in future equity financings of ADMA.
Included in the assets to be sold at closing
are Nabi-HB®, Bivigam®, Seller's contract manufacturing agreements, the Boca Facility, as well as its investigational
product Civacir. The acquisition also will include most of Seller's corporate shared services group assets (other than accounts
receivable) and Seller's Boca Raton, Florida headquarters and real properties (other than a parcel of undeveloped land).
Seller will retain all accounts receivable, all raw material plasma or intermediate inventories, its plasma centers and all related
plasma center assets, and both center and corporate employees that directly support the plasma centers.
The Purchase Agreement also provides that,
at the closing of the transaction, Seller and ADMA will enter into the following agreements: (i) a Transition Services Agreement
pursuant to which each of Seller and ADMA agree to provide transition services to the other party, including services related to
finance, human resources, information technologies, and clinical and regulatory for a period of up to 24 months after closing;
as well as agreements to lease certain laboratory space within the Boca Facility to Seller for a period of up to 24 months after
closing, and (ii) a Plasma Supply Agreement pursuant to which, Seller will supply hyperimmune plasma to ADMA for the manufacture
of Nabi-HB®.
On January 1, 2019, as consideration for
all of the above, ADMA will deliver to Seller two of ADMA's plasma centers in Georgia for no additional consideration.
(2) PURCHASE PRICE ALLOCATION
Final Purchase Consideration:
Issuance of common stock (voting and non-voting) 12,886,740 shares at $3.66  per share
$
47,165,468
Transfer of two FDA, GHA and MFDS licensed plasma collection centers
12,621,844
Final purchase consideration
$
59,787,312
F-
44
The fair value of the Company's common stock was calculated
using the Company's closing Nasdaq Capital Markets quoted price of $3.66 as of June 6, 2017.
Preliminary Purchase Consideration Allocation:
The following table summarizes the allocation
of the final purchase consideration to the assets acquired and liabilities assumed on June 6, 2017 based on their fair values:
Cash
$
12,500,000
Inventory
8,197,353
Land and building
20,000,000
Property and equipment
8,209,800
Held for sale assets
845,389
Spare parts
795,553
Intangible rights to Nabi-HB®
4,100,046
Intangible rights to intermediate sales
907,421
Intangible rights to contract manufacturing agreement
1,076,557
Liabilities assumed - PTO
(374,317
)
Total value received from BPC Therapy Unit
56,257,802
Goodwill
3,529,510
Final purchase consideration
$
59,787,312
The Preliminary purchase price was allocated
to the tangible and intangible assets acquired and liabilities assumed based on their fair values at the date of acquisition. The
excess of the purchase price over the fair value of the assets acquired and liabilities assumed amounted to $3,529,510, which was
allocated to goodwill. We expect that substantially all of the amount allocated to goodwill will not be deductible for tax purposes.
(3) PRO FORMA ADJUSTMENTS
I. Unaudited Pro Forma Combined Balance Sheet of ADMA Biologics,
Inc.
(A1)
To record $12,310,149 of capital contribution (net of prepaid expenses $189,851) and $15,000,000 of a note payable provided by Seller upon the closing of the transaction.
(A2)
To eliminate Seller's accounts receivable in accordance with the Purchase Agreement.
(A3)
To adjust the inventory balance to account for $3,527,971 of finished goods and consumable inventory with a step up valuation of $4,669,382 and to eliminate Seller's inventory in accordance with the Purchase Agreement.
(A4)
To eliminate Seller's prepaid expenses and other current assets in accordance with the Purchase Agreement.
(A5)
To record the value of land and building appraised at $20,000,000 and property and equipment estimated value of $8,209,800. Also, reclass assets to be transferred to Seller on January 1, 2019, the leasehold improvements of ADMA Biologics two FDA, GHA, MFDS licensed plasma collection centers of $1,802,107.
(A6)
To record the intangible value rights to Nabi-HB® of $4,100,046, the intangible rights of intermediate sales of $907,421, and the intangible rights of contract manufacturing agreement with a third party of $1,076,557.
(A7)
To record the goodwill assigned as part of this transaction's purchase price of $3,529,510.
(A8)
To eliminate Seller's long-term deposits in accordance with the Purchase Agreement.
(A9)
To record the value of the leasehold improvement assets of the two FDA, GHA, MFDS licensed plasma collection centers to be transferred to Seller on January 1, 2019.
(A10)
To eliminate Seller's accounts payable in accordance with the Purchase Agreement.
(A11)
To eliminate Seller's accrued expenses and to record $1,929,000 of transactions costs to be incurred and not accrued as of March 31, 2017, in addition to $374,317 of assumed accrued employee paid time off.
F-
45
(A12)
To eliminate Seller's other liabilities in accordance with the Purchase Agreement.
(A13)
To record the $15,000,000 note payable to Seller as part of the payment received by ADMA upon the closing of the transaction.  Such note is payable in full five years from the date of the receipt of funds, with interest payments of 6% payable semi-annually in arrears in accordance with the Purchase Agreement.
II.  Unaudited Pro Forma Combined Statement of Operations
of ADMA Biologics, Inc.
(A14)
To record the elimination of certain manufacturing services provided by BPC Therapy Business Unit to ADMA during the year ended December 31, 2016.
(A15)
To record depreciation of building and equipment related to the manufacturing of the BPC Therapy Business Unit based upon purchase price allocation.
(A16)
To record amortization of the intangible rights to Nabi-HB®, intermediate sales and contract manufacturing provided to third parties over a period of seven years, for the quarter ended March 31, 2017.
(A17)
To reduce expenses for transaction costs primarily attributed to legal, financial, due diligence consulting.
F-
46
ADMA BIOLOGICS, INC.
SHARES OF COMMON STOCK
______________
PROSPECTUS
______________
Sole book-running manager
RAYMOND
JAMES
, 2017
Until a date which is 90 days from the effective date of
this Prospectus, all dealers that effect transactions in these securities, whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters
and with respect to their unsold allotments or subscriptions.
PART II INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The following table sets forth all costs and expenses, other
than underwriter discounts, payable in connection with the sale of the shares of Common Stock being registered hereby. Except as
otherwise noted, ADMA Biologics, Inc. (the "Company", "we", "us", or "our") will
pay all of the costs and expenses set forth in the following table. All amounts below are estimates other than the SEC's
registration fee.
Securities and Exchange Commission Registration Fee
$
3,580
FINRA Filing Fee
$
3,950
Printing Fee
$
20,000
Accounting Fees and Expenses
$
200,000
Legal Fees and Expenses
$
300,000
Transfer Agent and Registrar Fee
$
40,000
Miscellaneous
$
32,470
Total
$
600,000
Item 14. Indemnification of Directors and Officers
Our directors and officers are indemnified
as provided by the Delaware General Corporation Law, our certificate of incorporation, as amended, and our Amended and Restated
Bylaws. We have been advised that, in the opinion of the Securities and Exchange Commission, indemnification for liabilities arising
under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities is asserted by one of our directors, officers, or controlling persons
in connection with the securities being registered, we will, unless in the opinion of our legal counsel the matter has been settled
by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate
jurisdiction. We will then be governed by the court's decision.
We are party to indemnification agreements
with each of our directors and officers. These agreements require us to, among other things, indemnify our directors and officers
against certain liabilities which may arise by reason of their status or service as directors or officers to the fullest extent
permitted by applicable laws. These indemnification provisions and the indemnification agreements are sufficiently broad to permit
indemnification of the our officers and directors for liabilities, including reimbursement of expenses incurred, arising under
the Securities Act of 1933, which we refer to as the Securities Act. The Company also maintains director and officer liability
insurance.
Item 15. Recent Sales of Unregistered Securities
Pursuant to the terms of the Loan and Security Agreement by
and among Oxford Finance LLC ("Oxford"), the lenders party thereto, the Company, ADMA Plasma Biologics, Inc. and ADMA
Bio Centers Georgia Inc., dated as of June 19, 2015 (the "LSA"), on June 19, 2015, the Company issued to Oxford a seven
year warrant, expiring on June 19, 2022, to purchase 74,309 shares of the Company's voting common stock, $0.0001 par value
per share (the "Common Stock"), at an exercise price of $8.51 per share. In May 2016, in connection with the first
amendment to the LSA, the Company issued to Oxford warrants to purchase an aggregate of up to 24,800 shares of the Company's
Common Stock at an exercise price equal to $6.37 per share. The warrants became exercisable on May 13, 2016 for cash or by net
exercise and will expire seven years after their issuance on May 13, 2023. The warrants were issued pursuant to Regulation D of
the Securities Act, as Oxford is an "Accredited Investor" as such term is defined in Rule 501 of Regulation D.
Pursuant to the terms of the Master Purchase and Sale Agreement
by and among the Company, ADMA BioManufacturing, LLC ("ADMA BioManufacturing"), and Biotest Pharmaceuticals Corporation
("BPC"), dated as of January 21, 2017 (the "Purchase Agreement"), at the closing of the transaction the
Company delivered to BPC an aggregate equity interest in the Company equal to 50%, less one share, of the Company's issued
and outstanding capital stock, comprised of 25%, or 4,295,580 shares, of the Company's Common Stock, and 8,591,160 shares
in the form of the Company's non-voting common stock, $0.0001 par value per share (the "Non-Voting Common Stock")
(calculated as of immediately following the closing and on a post-closing issuance basis) (the "Biotest Equity Interest").
The Non-Voting Common Stock is convertible into the Company's Common Stock upon the occurrence of certain specified events.
The Biotest Equity Interest was issued pursuant to Regulation D of the Securities Act, as BPC is an "Accredited Investor"
as such term is defined in Rule 501 of Regulation D.
Additionally, on June 6, 2017, BPC (i) delivered to us a capital
contribution of $12.5 million in respect of the Biotest Equity Interest, which capital contribution was contributed by BPC to ADMA
BioManufacturing; and (ii) funded a $15.0 million unsecured subordinated loan to us, which (a) bears interest at a rate of 6% per
annum, payable semiannually in arrears on each of the six-month and twelve-month anniversary dates of the closing date, (b) has
a term of five years and (c) is not subject to any prepayment premium, penalty or other breakage costs (the "Subordinated
Loan Facility"). We are required to repay the Subordinated Loan Facility in full upon certain disposals of the therapy business
of BPC (the "BTBU"), certain disposals of shares of ADMA BioManufacturing and other change of control events in relation
to ADMA BioManufacturing or certain liquidation events of the Company. All of ADMA BioManufacturing's obligations under the
Subordinated Loan Facility are unconditionally guaranteed by the Company. The Subordinated Loan Facility contains certain customary
affirmative covenants. The Subordinated Loan Facility also contains certain negative covenants limiting the incurrence by the Company
or ADMA BioManufacturing of certain indebtedness, the entry by the Company and its subsidiaries (including ADMA BioManufacturing)
into certain transactions with affiliates and certain voluntary or optional prepayments by the Company and its subsidiaries of
indebtedness that is contractually subordinate in right of payment to the obligations under the Subordinated Loan Facility. The
Subordinated Loan Facility is subordinated to (i) the Company's existing indebtedness under the LSA among the Company, the
Company's subsidiaries and Oxford, (ii) any refinancing of the LSA, in accordance with the terms and conditions of the subordination
agreement dated as of June 6, 2017 between Oxford and BPC, and (iii) any additional "Indebtedness" (as defined in the
subordinated loan agreement) for borrowed money approved by the Company's Board of Directors (the "Board") and
incurred by the Company or ADMA BioManufacturing which is secured solely by a mortgage on the owned real property acquired in connection
with the Biotest acquisition. The Subordinated Loan Facility will rank
pari passu
with all additional indebtedness approved
by the Board and incurred by the Company or ADMA BioManufacturing which is not secured solely by the owned real property acquired
in connection with the Biotest acquisition. If such additional
pari passu
indebtedness is secured, then the Subordinated
Loan Facility will also be secured on a
pari passu
basis. The Subordinated Loan Facility contains certain customary events
of default. If an event of default occurs, BPC will be entitled to take various actions, including the acceleration of amounts
due under the Subordinated Loan Facility.
As consideration for the Credit Agreement, the Company has
issued, on October 10, 2017, a Warrant to Purchase Stock to Marathon (the "Tranche One Warrant"). The
Tranche One Warrant has (i) an exercise price equal to $3.10, which is the trailing 10-day VWAP of the Company's Common
Stock prior to October 10, 2017, and (ii) an expiration date of October 10, 2024. The Tranche One Warrant is
exercisable for 338,710 shares of Common Stock, or 3.5% of the Tranche One Loan. In the event that the Tranche Two Loan is
issued to the Company, the Company shall issue an additional Warrant to Purchase Stock to Marathon (the "Tranche Two
Warrant") to purchase such number of shares of Common Stock equal to 3.5% of the Tranche Two Loan, which shall have an
exercise price equal to  the trailing 10-day VWAP of the Common Stock prior to the issuance date of the Tranche Two Warrant and an expiration
date equal to the seven year anniversary of the issuance of the Tranche Two Warrant.
Item 16. Exhibits and Financial Statement Schedules
The following exhibits are filed as part
of, or incorporated by reference into this document:
Exhibit No.
Description
1.1**
Form of Underwriting Agreement.
2.1
Master Purchase and Sale Agreement, dated as of January 21, 2017, by and among Biotest Pharmaceuticals Corporation, ADMA BioManufacturing, LLC, ADMA Biologics, Inc., Biotest AG and Biotest US Corporation (incorporated herein by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K, filed with the SEC on January 23, 2017).
3.1
Amended and Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on June 12, 2017).
3.2
Amended and Restated Bylaws (incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed with the SEC on October 7, 2016).
4.1
Specimen Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to Amendment No. 1 to the Company's Current Report on Form 8-K/A, filed with the SEC on March 29, 2012).
4.2
Form of Warrant Agreement with Hercules Technology Growth Capital, Inc. (incorporated herein by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-1, filed with the SEC on February 11, 2013).
4.3
Form of Warrant Agreement with Oxford Finance LLC (incorporated herein by reference to Exhibit 4.6 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).
4.4
Warrant to Purchase Stock, dated October 10, 2017, issued by the Company to Marathon Healthcare Finance Fund, L.P. (incorporated herein by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K, filed with the SEC on October 11, 2017).
4.5
Form of Secured Term Loan Promissory Note issued to Hercules Technology Growth Capital, Inc. (incorporated herein by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-1, filed with the SEC on February 11, 2013).
4.6
Form of Secured Term B Loan Promissory Note issued to Oxford Finance LLC (incorporated herein by reference to Exhibit 4.7 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).
4.7
Tranche One Term Note, dated October 10, 2017, issued by the Company to Marathon Healthcare Finance Fund, L.P. (incorporated herein by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K, filed with the SEC on October 11, 2017).
5.1*
Legal Opinion of DLA Piper LLP (US).
10.1†
2007 Employee Stock Option Plan, as amended by Amendment No. 3 (incorporated herein by reference to Exhibit A to the Information Statement on Schedule 14C, filed with the SEC on October 29, 2012).
10.2†
Amended and Restated ADMA Biologics, Inc. 2014 Omnibus Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-8 filed on August 18, 2017).
10.3†
Amended and Restated Employment Agreement, dated January 28, 2016, by and between ADMA Biologics, Inc. and Adam Grossman (incorporated herein by reference to Exhibit 10.2 to the Company's Annual Report on Form 10-K, filed with the SEC on March 23, 2016).
10.4†
Amended and Restated Employment Agreement, dated January 28, 2016, by and between ADMA Biologics, Inc. and Brian Lenz (incorporated herein by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K, filed with the SEC on March 23, 2016).
10.5†
Amended and Restated Employment Agreement, dated January 28, 2016, by and between ADMA Biologics, Inc. and James Mond, M.D., Ph.D. (incorporated herein by reference to Exhibit 10.11 to the Company's Annual Report on Form 10-K, filed with the SEC on March 23, 2016).
10.6+
Plasma Purchase Agreement, dated as of November 17, 2011, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc., as amended by First Amendment to Plasma Purchase Agreement, dated as of December 1, 2011, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.9 to Amendment No. 3 to the Company's Current Report on Form 8-K/A, filed with the SEC on June 22, 2012).
10.6.1+
Second Amendment to Plasma Purchase Agreement, dated as of December 18, 2015, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.3.1 to the Company's Annual Report on Form 10-K, filed with the SEC on March 23, 2016).
10.6.2
Third Amendment to Plasma Purchase Agreement, dated as of April 8, 2016, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.3.2 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).
10.6.3
Fourth Amendment to Plasma Purchase Agreement, dated as of June 6, 2017, by and between Biotest Pharmaceuticals Corporation and ADMA Biologics, Inc. (incorporated herein by reference to Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
10.7+
Amended and Restated Plasma Supply Agreement, dated as of March 23, 2016, by and between ADMA Biologics, Inc. and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.10 to the Company's Annual Report on Form 10-K, filed with the SEC on March 23, 2016).
10.8+
Plasma Supply Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
10.9+
Plasma Purchase Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
10.10
Amended and Restated Agreement for Services, effective as of January 1, 2016, by and between ADMA Biologics, LLC and Areth LLC (incorporated herein by reference to Exhibit 10.18 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 12, 2016).
10.11
Agreement of Lease, effective June 1, 2008 and confirmed on November 13, 2008, by and among ADMA Bio Centers Georgia Inc., ADMA Biologics, Inc. and C1VF I-GA1W15-W23, LLC (DCT Holdings), as amended on January 20, 2011, May 24, 2012 and January 1, 2014 (incorporated herein by reference to Exhibit 10.11 to the Company's Current Report on Form 8-K, filed with the SEC on February 13, 2012).
10.12+
Lease, dated as of January 20, 2014, by and between ADMA Bio Centers Georgia Inc. and U.S. Bank National Association, effective February 1, 2014, as amended on December 18, 2014 and July 9, 2015 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K, filed with the SEC on March 28, 2014).
10.13
Lease, effective as of February 17, 2017, by and between Home Center Properties, LLC and ADMA Bio Centers Georgia Inc. (incorporated herein by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K, filed with the SEC on February 24, 2017).
10.14
Purchase Agreement, dated as of June 6, 2017, by and among the Company, Biotest Pharmaceuticals Corporation and ADMA Bio Centers Georgia, Inc. (incorporated herein by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
10.15
Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.12 to the Company's Current Report on Form 8-K, filed with the SEC on February 13, 2012).
10.16+
Testing Services Agreement, dated as of June 8, 2012, by and between ADMA Biologics, Inc. and Quest Diagnostics Clinical Laboratories, Inc. (incorporated herein by reference to Exhibit 10.16 to Amendment No. 4 to the Company's Registration Statement on Form S-1, filed with the SEC on August 10, 2012).
10.17
Loan and Security Agreement, dated as of June 19, 2015, by and among Oxford Finance LLC, the lenders party thereto, ADMA Biologics, Inc., ADMA Plasma Biologics, Inc. and ADMA Bio Centers Georgia Inc. (incorporated herein by reference to Exhibit 10.23 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2015).
10.17.1
First Amendment to Loan and Security Agreement, dated as of May 13, 2016, by and among Oxford Finance LLC, the lenders party thereto, ADMA Biologics, Inc., ADMA Plasma Biologics, Inc. and ADMA Bio Centers Georgia Inc. (incorporated herein by reference to Exhibit 10.17.1 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on May 13, 2016).
10.18
Subordinated Loan Agreement, dated as of June 6, 2017, by and among the Company, ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 12, 2017).
10.19
Credit Agreement, dated as of October 10, 2017, by and among the Company, ADMA Plasma Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC, Marathon Healthcare Finance Fund, L.P. and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, filed with the SEC on October 11, 2017).
10.20
Security Agreement, dated as of October 10, 2017, by and among the Company, ADMA Plasma Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K, filed with the SEC on October 11, 2017).
10.21
Intellectual Property Security Agreement, dated as of October 10, 2017, by and among the Company, ADMA Plasma Biologics, Inc., ADMA Bio Centers Georgia Inc., ADMA BioManufacturing, LLC and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K, filed with the SEC on October 11, 2017).
10.22
Pledge Agreement, dated as of October 10, 2017, by and between the Company and Wilmington Trust, National Association (incorporated herein by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K, filed with the SEC on October 11, 2017).
10.23+
License Agreement, effective as of December 31, 2012, by and between ADMA Biologics, Inc. and Biotest Aktiengesellschaft (incorporated herein by reference to Exhibit 10.21 to the Company's Registration Statement on Form S-1, filed with the SEC on February 11, 2013).
10.23.1
First Amendment to License Agreement, dated as of June 6, 2017, by and between the Company and Biotest Aktiengesellschaft (incorporated herein by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
10.24
Stockholders Agreement, dated as of June 6, 2017, by and between the Company and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on June 12, 2017).
10.25
Registration Rights Agreement, dated as of June 6, 2017, by and between the Company and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed on June 12, 2017).
10.26+
Transition Services Agreement, dated as of June 6, 2017, by and between ADMA BioManufacturing, LLC and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
10.27
Termination Agreement (Manufacturing, Supply and License Agreement and Master Services Agreement), dated as of June 6, 2017, by and between the Company and Biotest Pharmaceuticals Corporation (incorporated herein by reference to Exhibit 10.10 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on August 11, 2017).
21.1*
Subsidiaries of the Company.
23.1*
Consent of CohnReznick LLP.
23.2*
Consent of CohnReznick LLP.
23.3*
Consent of Rödl Langford de Kock LLP.
23.4*
Consent of DLA Piper LLP (US) (included in Exhibit 5.1).
24.1*
Power of Attorney (included on signature page).
+ Confidential treatment has been granted with respect as to
certain portions of this exhibit. Such portions have been redacted and submitted separately to the SEC.
* Filed herewith.
** To be filed by amendment.
† Management compensatory plan, contract or arrangement.
Item 17. Undertakings
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
The undersigned registrant hereby undertakes that:
(1) For purposes of determining any liability
under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement
in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.
(2) For the purpose of determining any liability
under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial
bona fide
offering thereof.
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the Borough of Ramsey, State of New Jersey on October 11, 2017.
ADMA BIOLOGICS, INC.
By:
/s/ Adam S. Grossman
Adam S. Grossman
President and Chief Executive Officer
POWER OF ATTORNEY
KNOW BY ALL MEN BY THESE PRESENTS, that
each person whose signature appears below constitutes and appoints Adam S. Grossman and Brian Lenz, and each of them, the undersigned's
true and lawful attorneys-in-fact and agents, with full power of substitution and revocation, for and in the undersigned's
name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this
registration statement and any registration statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended,
and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each
and every act and thing requisite and necessary to be done, as fully to all intents and purposes as the undersigned might or could
do in person, hereby ratify and confirming all that said attorneys-in-fact and agents or any of them, or their or his substitutes,
may lawfully do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities
Exchange Act of 1933, as amended, this registration statement has been signed below by the following persons on behalf of the registrant
and in the capacities indicated on the date listed below.
Signature
Capacity
Date
/s/ Adam S. Grossman
President and Chief Executive Officer
October 11, 2017
Adam S. Grossman
(Principal Executive Officer)
/s/ Brian Lenz
Vice President and Chief Financial Officer
October 11, 2017
Brian Lenz
(Principal Financial Officer and Principal Accounting Officer)
/s/ Steven A. Elms
Chairman of the Board of Directors
October 11, 2017
Steven A. Elms
/s/ Dr. Jerrold B. Grossman
Vice Chairman of the Board of Directors
October 11, 2017
Dr. Jerrold B. Grossman
/s/ Bryant E. Fong
Director
October 11, 2017
Bryant E. Fong
/s/ Dov A. Goldstein, M.D.
Director
October 11, 2017
Dov A. Goldstein, M.D.
/s/ Lawrence P. Guiheen
Director
October 11, 2017
Lawrence P. Guiheen
/s/ Eric I. Richman
Director
October 11, 2017
Eric I. Richman
/s/ Dr. Bernhard Ehmer
Director
October 11, 2017
Dr. Bernhard Ehmer