RGN Regenerx Biopharmaceuticals Inc

Management Discussion

• Revenues.For the three months ended June 30, 2019, we recorded revenue in the amount of $19,000 versus $13,000 recorded in the comparable 2018 period. The recognized amounts reflect revenue related to the amendment of the RGN-137 License Agreement held by GtreeBNT and license fees received from ReGenTree.
• R&D Expenses. For the three months ended June 30, 2019, our R&D expenses increased by approximately $7,000, or 38% to $26,000 from $19,000 for the same period in 2018. The 2019 increase results from an increase in stock option expense of $7,000 in 2019 versus the 2018 period.
• G&A Expenses. For the three months ended June 30, 2019, our G&A expenses increased slightly to $345,000, from $336,000 for the same period in 2018. The changes in the G&A expenses are reflected in several areas. Increases in facility (increase of $6,000), stock option compensation expense (increase of $48,000), travel (increase of $6,000), other (increase of $3,000) and insurance expense (increase $28,000) were offset by decreases in, professional services (decrease of $14,000), investor relations (decrease of $28,000), tax expense (decrease of $13,000) and personnel related expenses (decrease of $27,000). The changes in 2019 are reflective of several things including the timing of our patent activities, the adoption of new accounting principles in 2018 as well as the engagement of an investor relations firm in 2018. In 2019, we have seen increased D&O insurance expense and higher stock option compensation expense, as well as a decrease in salary because of a voluntary salary reduction by our CEO.