Polydex Pharmaceuticals : 2022 Financial Statements

POLYDEX PHARMACEUTICALS LIMITED

ANNUAL REPORT

JANUARY 31, 2022

UNAUDITED

POLYDEX PHARMACEUTICALS LIMITED

ANNUAL REPORT

JANUARY 31, 2022

UNAUDITED

INDEX

PART A	General Company Information	Page	3
PART B	Share Structure	Page	3
PART C	Business Information	Page	4
PART D	Management Structure and Financial Information
Board of Directors and Executive Officers	Page	7
Selected Financial Data	Page	8
Financial Statements	Page	10
Notes to Financial Statements	Page	17
Security Ownership of 5% or Greater Holders	Page	39
Management's Discussion and Analysis	Page	40
PART E	Issuance History	Page	48
PART F	Exhibits	Page	48
Certifications	Page	49-50

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POLYDEX PHARMACEUTICALS LIMITED

ANNUAL REPORT

JANUARY 31, 2022

UNAUDITED

PART AGENERAL COMPANY INFORMATION

Polydex Pharmaceuticals Limited 421 Comstock Road

Toronto, Ontario, Canada M1L 2H5

Tel: [phone] Fax: [phone] Web:www.polydex.com

Incorporated under the laws of the Commonwealth of the Bahamas, June 14, 1979

Amalgamated under the laws of Ontario, Canada, May 1, 2017

PART BSHARE STRUCTURE

Preferred Stock - Class A

(i) Period end date	January 31, 2022
(ii) Authorized	100,000 shares at $0.10 each
(iii) Issued and outstanding	None
(iv) Freely tradable shares (public float)	None
(v) Number of shareholders of record	None
Preferred Stock - Class B
(i) Period end date	January 31, 2022
(ii) Authorized	899,400 shares at $0.0167 each
(iii) Issued and outstanding	899,400 shares
(iv) Freely tradable shares (public float)	None
(v) Number of shareholders of record	1
Common Stock
(i) Period end date	January 31, 2022
(ii) Authorized	10,000,000 shares
(iii) Issued and outstanding	3,432,478 shares
(iv) Freely tradable shares (public float)	2,561,166 shares
(v) Number of shareholders of record	209
Transfer Agent
Computershare
PO Box 30170
College Station Texas
USA 77842-3170

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POLYDEX PHARMACEUTICALS LIMITED

ANNUAL REPORT

JANUARY 31, 2022

UNAUDITED

PART C BUSINESS INFORMATION

Introduction

Polydex Pharmaceuticals Limited (the "Company") is engaged in the development, manufacture and marketing of biotechnology-based products for the human pharmaceutical market, and also manufactures bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry. The Company focuses on the manufacture and sale of Dextran and derivative products, including Iron Dextran and Dextran Sulphate, and other specialty chemicals.

The Company was incorporated under the laws of the Commonwealth of the Bahamas on June 14, 1979 as Polydex Chemicals Limited, and changed its name on March 28, 1984. On May 1, 2017 Polydex Pharmaceuticals Limited amalgamated with its two Canadian subsidiaries, Dextran Products Limited and Polydex Chemicals (Canada) Limited under the laws of Ontario, Canada.

The Company conducts its business operations through the amalgamated Canadian company, operating as "Dextran Products" which manufactures and sells Dextran and Dextran derivative products including Iron Dextran while Chemdex Inc. ("Chemdex"), a subsidiary that is incorporated in the state of Kansas, United States, sells Iron Dextran for the US market.

Products and Sales

Iron Dextran

Iron Dextran is a derivative of Dextran produced by complexing iron with Dextran. Iron Dextran is injected into most pigs at birth as a treatment for anemia. The Company sells Iron Dextran to independent distributors and wholesalers primarily in Europe, the Far East, South America and Canada. Chemdex, Inc. has United States FDA approval for the manufacture and sale of Iron Dextran for veterinary use. On March 4, 2004, Sparhawk Laboratories Inc. ("Sparhawk") and Chemdex entered into an exclusive Supply Agreement under which Sparhawk agreed to purchase 100% of its product needs for bulk Iron Dextran solution from Chemdex for a period of 10 years, and Chemdex agreed to sell such products in the United States exclusively to Sparhawk, subject to minimum purchase requirements. Concurrently with the Supply Agreement, the Company sold its finished product veterinary pharmaceutical business to Sparhawk. In July 2013 Chemdex, Inc., signed an agreement with Sparhawk to provide raw materials and technological advice for a new product and renew the existing supply agreement noted above in consideration for the payment of $250,000 at the time of signing the agreement. Under the terms of the agreement the customer will endeavor to obtain registration for the new product. During the third quarter of fiscal 2016 the Company completed its obligation to provide raw materials and technological advice and has therefore recognized the $250,000 as income. Once registration for this new product has been acquired, a second payment of $250,000 will become due. As at year-end registration has not been acquired. The agreement is for a period of ten years, renewable for another ten years, and provides the customer with exclusive rights to these raw materials in the United States.

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POLYDEX PHARMACEUTICALS LIMITED

ANNUAL REPORT

JANUARY 31, 2022

UNAUDITED

Dextran Sulphate

Dextran Sulphate is a specialty chemical derivative of Dextran used in biotechnology applications and the pharmaceutical industry. Dextran Sulphate manufactured by the Company is sold primarily to independent distributors, or direct to companies in the United States and Europe for analytical applications. This usage requires no regulatory approval.

Patents, Trademarks and Licenses

Cellulose Sulphate

Ushercell is a high molecular weight Cellulose Sulphate envisioned for topical vaginal use primarily in the prevention and transmission of AIDS and other sexually transmitted diseases, as well as unplanned pregnancies.

Low Molecular Weight Dextran

The Company is a party to a Research Agreement with the University of British Columbia, and a number of Canadian hospitals. Under the terms of this Research Agreement, the Company agreed to provide equipment and funding for continuing research on a low molecular weight dextran, initially studied for a cystic fibrosis treatment, in exchange for an exclusive worldwide license to manufacture, distribute and sell any products developed from the research. Rights to the low molecular weight dextran were licensed to BCY LifeSciences, Inc. of Canada in 1999. Under this license agreement, BCY LifeSciences will pay a royalty to both the Company and the University of British Columbia based on sales and sublicensing revenue in return for the exclusive right to sublicense, manufacture, distribute and sell developed products. In February 2005, BCY Lifesciences sublicensed the low molecular weight dextran to ALIGN Pharmaceuticals, a private United States based company.

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