Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ☒ No ☐

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 definitions of “large accelerated filer,” “accelerated ~~filer”~~filer,” “smaller reporting ~~company”~~company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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)~~13(a) of the Securities ~~Act .~~ Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November ~~13, 2017, 2,591,509~~9, 2021, 7,356,289 shares of the Company’s common stock, $0.01 par value, were outstanding.

September 30,

December 31,

2017

2016

(Unaudited)

Assets

Current assets

Cash and cash equivalents

$
2,495

$
4,409

Restricted cash

8,362

27,287

Accounts receivables, net

298

403

Inventories

1,164

660

Prepaid expenses and other current assets

385

698

Deferred financing costs

529

699

Total current assets

13,233

34,156

Property, plant and equipment, net

1,253

1,083

Total assets

$
14,486

$
35,239

Liabilities and Stockholders' Deficit

Current liabilities

Accounts payable

$
1,891

$
594

Accrued expenses

3,755

3,407

Series C preferred shares

494

—

Convertible notes payable, net of debt discount

9,736

13,343

Warrant liability

16

18,751

Total current liabilities

15,892

36,095

Deferred revenue

—

30

Other non-current liabilities

444

604

Total liabilities

16,336

36,729

Commitments and Contingencies

—

—

Stockholders' deficit

Preferred stock, $.01 par value; 10,000,000 shares authorized; no shares
   issued and outstanding at September 30, 2017 and December 31, 2016,
   respectively

—

—

Common stock, $.01 par value; 500,000,000 shares authorized; 1,426,153 and
   11,805 shares issued and 1,425,862 and 11,750 shares outstanding
   at September 30, 2017 and December 31, 2016, respectively*

14

—

Additional paid-in capital

303,808

277,790

Accumulated deficit

(305,587
)

(279,188
)
Treasury stock, at cost; 1 share at September 30, 2017 and December 31, 2016,
   respectively^*

(51
)

(51
)
Accumulated other comprehensive income

(34
)

(41
)
Total stockholders' deficit

(1,850
)

(1,490
)
Total liabilities and stockholders' deficit

$
14,486

$
35,239

^*reflects a one-for-sixteen (1:16) reverse stock split effected on July 21, 2016 and a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017

Three months ended September 30,

Nine months ended September 30,

2017

2016

2017

2016

Revenue

$
684

$
435

$
2,011

$
1,316

Cost of goods sold

172

112

527

373

Gross profit

512

323

1,484

943

Operating expenses:

Selling, general and administrative

2,860

2,361

7,807

7,025

Research and development

2,279

2,686

7,119

5,975

Total operating expenses

5,139

5,047

14,926

13,000

Operating loss

(4,627
)

(4,724
)

(13,442
)

(12,057
)
Change in fair value of the warrant liability, net

27

8,680

1,227

9,171

Gain on warrant extinguishment

—

—

9,613

—

Loss on debt settlements

(2,952
)

—

(2,952
)

—

Interest expense

(5,042
)

(4,963
)

(20,324
)

(6,584
)
Other income (expense)

(2
)

3

5

(15
)
Net loss

$
(12,596
)

$
(1,004
)

$
(25,873
)

$
(9,485
)
Other comprehensive loss:

Foreign currency translation adjustments

(15
)

(2
)

7

(12
)
Comprehensive loss

$
(12,611
)

$
(1,006
)

$
(25,866
)

$
(9,497
)

Common share data:

Basic and diluted loss per share*

$
(9.36
)

$
(230.99
)

$
(34.99
)

$
(2,232.30
)

Weighted average number of basic and diluted common
shares outstanding*

1,401,413

4,349

754,421

4,249

*reflects a one-for-sixteen (1:16) reverse stock split effected on July 21, 2016 and a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017

	September 30,			December 31,
	2021			2020
Assets
Current assets
Cash and cash equivalents	$	24,865		$	28,575
Restricted cash		4,151			181
Accounts receivable, net		69			57
Inventories		1,238			855
Prepaid expenses and other current assets		1,995			2,670
Total current assets		32,318			32,338
Property, plant and equipment, net		1,380			1,351
Right-of-use assets		727			946
Total assets	$	34,425		$	34,635

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	1,187		$	1,774
Accrued expenses		3,269			4,859
Deferred revenue, current		496			525
Lease liabilities, current		409			495
Loan payable, current		—			382
Convertible notes payable, current		—			2,000
Total current liabilities		5,361			10,035
Deferred revenue, non-current		1,584			2,072
Lease liabilities, non-current		318			450
Loan payable, non-current		10,834			—
Convertible notes payable, non-current		4,602			—
Total liabilities		22,699			12,557

Commitments and contingencies (Note 11)		—			—

Stockholders' equity
Preferred stock, $.01 par value; 10,000,000 shares authorized; 11,707 and 20,631 shares issued and outstanding at September 30, 2021, and December 31, 2020, respectively		—			—
Common stock, $.01 par value; 40,000,000 shares authorized; 7,356,289 and 5,996,101 shares issued and outstanding at September 30, 2021, and December 31, 2020, respectively		74			60
Additional paid-in capital		427,301			417,449
Accumulated deficit		(415,629	)		(395,327	)
Accumulated other comprehensive loss		(20	)		(104	)
Total stockholders' equity		11,726			22,078
Total liabilities and stockholders' equity	$	34,425		$	34,635

(in thousands, except share and per share data)


	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Product revenue	$	395		$	340		$	1,054		$	778
Other revenue		127			126			393			361
Cost of goods sold		(227	)		(188	)		(541	)		(434	)
Gross profit		295			278			906			705

Operating expenses:
Research and development expenses		2,955			3,260			10,159			8,457
Selling, general and administrative expenses		4,036			1,998			10,621			6,571
Total operating expenses		6,991			5,258			20,780			15,028
Operating loss		(6,696	)		(4,980	)		(19,874	)		(14,323	)

Change in fair value of the warrant liability, net		—			—			—			(2,832	)
Interest expense, net		(420	)		(44	)		(501	)		(132	)
Other income (loss)		(9	)		33			73			160
Net loss		(7,125	)		(4,991	)		(20,302	)		(17,127	)

Deemed dividend for triggering of warrant down round feature		—			—			—			(55	)
Net loss attributable to common stockholders	$	(7,125	)	$	(4,991	)	$	(20,302	)	$	(17,182	)

Net loss	$	(7,125	)	$	(4,991	)	$	(20,302	)	$	(17,127	)
Other comprehensive (loss) income:
Foreign currency translation adjustments		51			(103	)		84			(39	)
Total other comprehensive loss	$	(7,074	)	$	(5,094	)	$	(20,218	)	$	(17,166	)

Common share data:
Basic loss per common share	$	(0.94	)	$	(1.16	)	$	(2.93	)	$	(7.75	)
Diluted loss per common share	$	(0.94	)	$	(1.16	)	$	(2.93	)	$	(7.75	)

Weighted average number of basic shares outstanding		7,587,643			4,288,593			6,923,541			2,217,611
Weighted average number of diluted shares outstanding		7,587,643			4,288,593			6,923,541			2,217,611


See accompanying Notes to Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Stockholders’ ~~Deficit)~~Equity (Deficit)

Common Stock Issued

Accumulated

$0.01 Par Value

Treasury Stock

Other

No. of Shares

Amount

No. of Shares

Amount

Additional Paid
in Capital

Accumulated
Deficit

Comprehensive
loss

Total

Balance at January 1, 2017

11,805

$
—

(1
)

$
(51
)

$
277,790

$
(279,188
)

$
(41
)

$
(1,490
)
Compensation expense for
   issuance of stock options

—

—

—

—

48

—

—

48

Compensation expense for
   issuance of restricted stock

261

—

—

—

84

—

—

84

Issuance of common stock for
   payments made in shares on
   convertible note payable

1,413,790

14

—

—

25,852

—

—

25,866

Series B preferred stock
   dividend

(526
)

(526
)
Warrants exercised

297

—

—

—

15

—

—

15

Fair value of warrants exercised

—

—

—

19

—

—

19

Net loss

—

—

—

—

—

(25,873
)

—

(25,873
)
Total comprehensive loss

—

—

—

—

—

—

7

7

Balance at September 30, 2017

1,426,153

$
14

(1
)

$
(51
)

$
303,808

$
(305,587
)

$
(34
)

$
(1,850
)

^*reflects a one-for-sixteen (1:16) reverse stock split effected on July 21, 2016 and a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017

	Three and nine months ended September 30, 2021
	Preferred Stock					Common Stock
	$0.01 Par Value					$0.01 Par Value
	No. of Shares			Amount		No. of Shares		Amount			Additional Paid in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income			Total
Balance at January 1, 2021		20,631		$	—		5,996,101	$	60		$	417,449		$	(395,327	)	$	(104	)	$	22,078
Compensation expense for issuance of stock options		—			—		—		—			2,148			—			—			2,148
Shares settled for services		—			—		2,636		—			57			—			—			57
Conversion of Preferred stock into common stock		(150	)		—		15,000		—			—			—			—			—
Exercise of warrants into common stock		—			—		237,520		3			2,373			—			—			2,376
Net loss		—			—		—		—			—			(6,747	)		—			(6,747	)
Total comprehensive loss		—			—		—		—			—			—			94			94
Balance at March 31, 2021		20,481			—		6,251,257		63			422,027			(402,074	)		(10	)		20,006
Compensation expense for issuance of stock options		—			—		—		—			1,626			—			—			1,626
Conversion of Preferred stock into common stock		(8,774	)		—		877,379		9			(8	)		—			—			1
Exercise of warrants into common stock		—			—		221,141		2			15			—			—			17
Net loss		—			—		—		—	��		—			(6,430	)		—			(6,430	)
Total comprehensive loss		—			—		—		—			—			—			(61	)		(61	)
Balance at June 30, 2021		11,707			—		7,349,777		74			423,660			(408,504	)		(71	)		15,159
Compensation expense for issuance of stock options		—			—		—		—			2,449			—			—			2,449
Proceeds allocated to warrant		—			—		—		—			1,171			—			—			1,171
Cash issuance costs of warrant		—			—		—		—			(44	)		—			—			(44	)
Exercise of warrants into common stock		—			—		6,512		—			65			—			—			65
Net loss		—			—		—		—			—			(7,125	)		—			(7,125	)
Total comprehensive loss		—			—		—		—			—			—			51			51
Balance at September 30, 2021		11,707		$	—		7,356,289	$	74		$	427,301		$	(415,629	)	$	(20	)	$	11,726

DELCATH SYSTEMS, INC.
Condensed Consolidated Statement of Stockholders' Equity (Deficit), continued
(Unaudited)
(in thousands, except share and per share data)


	Three and nine months ended September 30, 2020
	Preferred Stock					Common Stock
	$0.01 Par Value					$0.01 Par Value
	No. of Shares			Amount		No. of Shares		Amount		Additional Paid in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income			Total
Balance at January 1, 2020		41,517		$	—		67,091	$	1	$	364,785		$	(371,171	)	$	28		$	(6,357	)
Compensation expense for issuance of stock options		—			—		—		—		25			—			—			25
Shares settled for services		—			—		2,717		—		30			—			—			30
Conversion of Preferred stock into common stock		(70	)		—		2,915		—		—			—			—			—
Fractional rounding related to Reverse Stock Split		—			—		50		—		—			—			—			—
Registration costs		—			—		—		—		(106	)		—			—			(106	)
Fair value of warrants reclassified from liability to equity		—			—		—		—		6,199			—			—			6,199
Net loss		—			—		—		—		—			(7,861	)		—			(7,861	)
Total comprehensive loss		—			—		—		—		—			—			65			65
Balance at March 31, 2020		41,447			—		72,773		1		370,933			(379,032	)		93			(8,005	)
Shares settled for services		—			—		70,259		1		605			—			—			606
Conversion of Preferred stock into common stock		(15,497	)		—		1,549,609		15		(16	)		—			—			(1	)
Conversion of Pre-funded Series F Warrants		—			—		6,000		—		—			—			—			—
Public Offering - issuance of common stock and warrants		—			—		1,823,000		18		19,360			—			—			19,378
Net loss		—			—		—		—		—			(4,275	)		—			(4,275	)
Total comprehensive loss		—			—		—		—		—			—			(1	)		(1	)
Balance at June 30, 2020		25,950			—		3,521,641		35		390,882			(383,307	)		92			7,702
Conversion of Preferred stock into common stock		(4,477	)		—		447,700		4		(4	)		—			—			—
Exercise of Series F Warrants		—			—		60,117		1		601			—			—			602
ATM Offerings		—			—		6,100		—		66			—			—			66
Net loss		—			—		—		—		—			(4,991	)		—			(4,991	)
Total comprehensive loss		—			—		—		—		—			—			(103	)		(103	)
Balance at September 30, 2020		21,473		$	—		4,035,558	$	40	$	391,545		$	(388,298	)	$	(11	)	$	3,276

Nine months ended September 30,

2017

2016

Cash flows from operating activities:

Net loss

$
(25,873
)

$
(9,485
)
Adjustments to reconcile net loss to net cash used in operating activities:

Stock option compensation expense

48

138

Restricted stock compensation expense

84

228

Depreciation expense

198

232

Loss on disposal of equipment

20

1

Warrant liability fair value adjustment

(1,227
)

(9,171
)
Gain on warrant extinguishment

(9,613
)

—

Non-cash interest income

16

(1
)
Deferred revenue

(30
)

31

Debt discount and deferred finance costs amortization

20,315

6,567

Loss on debt settlements

2,952

—

Changes in assets and liabilities:

Decrease in prepaid expenses and other assets

276

610

Increase in accounts receivable

(94
)

(94
)
Decrease (increase) in inventories

(338
)

190

Increase in accounts payable and accrued expenses

1,767

312

Decrease in other non-current liabilities

(160
)

(155
)
Net cash used in operating activities

(11,659
)

(10,597
)

Cash flows from investing activities:

Purchase of property, plant and equipment

(372
)

(245
)
Increase in restricted cash

—

(1,087
)
Net cash used in investing activities

(372
)

(1,332
)

Cash flows from financing activities:

Increase in restricted cash

—

(29,200
)
Net proceeds from the release of restricted cash

7,901

—

Release of restricted cash for extinguishment of Series C Warrants

7,876

—

Cash paid to extinguish of Series C Warrants

(7,876
)

—

Net proceeds from sale of Series B and Series C preferred shares

2,278

—

Release of restricted cash for redemption of Series A and Series B preferred shares

2,360

—

Redemption of Series A and Series B preferred shares

(2,360
)

—

Net proceeds from convertible debt financing

—

31,436

Net proceeds from sale of stock and exercise of warrants

15

704

Net cash provided by financing activities

10,194

2,940

Foreign currency effects on cash and cash equivalents

(77
)

71

Net decrease in cash and cash equivalents

(1,914
)

(8,918
)

Cash and cash equivalents:

Beginning of period

4,409

12,607

End of period

$
2,495

3,689

Supplemental non-cash activities:

Conversion of convertible notes to common stock

$
26,199

$
—

Fair value of warrants issued

$
—

$
28,133

Fair value of warrants exercised

$
19

$
245

	Nine months ended September 30,
	2021			2020
Cash flows from operating activities:
Net loss	$	(20,302	)	$	(17,127	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock option compensation expense		6,224			25
Restricted stock compensation expense		—			406
Depreciation expense		115			125
Amortization of right of use assets		—			26
Amortization of original issue discount costs		127			—
Warrant liability fair value adjustment		—			2,832
Interest expense accrued related to convertible notes		119			120
Changes in assets and liabilities:
Decrease (increase) in prepaid expenses and other assets		676			(100	)
Increase in accounts receivable		(12	)		(82	)
Increase in inventories		(383	)		(185	)
Increase in deferred offering costs		—			(268	)
Decrease in accounts payable		(588	)		(3,032	)
Decrease in accrued expenses		(1,652	)		(312	)
Decrease in deferred revenue		(517	)		(256	)
Net cash used in operating activities		(16,193	)		(17,828	)

Cash flows from investing activities:
Purchase of property, plant and equipment		(144	)		(708	)
Net cash used in investing activities		(144	)		(708	)

Cash flows from financing activities:
Principal payments on financing leases		—			(26	)
Net payments related to registration costs		—			(106	)
Net proceeds from Public Offering		—			19,377
Gross proceeds from ATM Offering		—			70
Issuance costs related to ATM Offering		—			(4	)
Principal payments on D&O insurance financing		(382	)		(440	)
Net proceeds from debt financing		14,437			—
Net proceeds from the exercise of warrants		2,458			601
Net cash provided by financing activities		16,513			19,472
Foreign currency effects on cash		84			(39	)
Net increase in total cash		260			897

Total Cash, Cash Equivalents and Restricted Cash:
Beginning of period		28,756			10,183
End of period	$	29,016		$	11,080

The unaudited interim condensed consolidated financial statements of Delcath Systems, Inc. (“Delcath” or the “Company”) as of and for the three and nine months ended September 30, ~~2017~~2021 and ~~2016~~2020 should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016 (“Annual~~2020 (the “Annual Report”), which ~~has been~~was filed with the Securities and Exchange Commission ~~(“SEC”~~(the “SEC”)~~, as amended by that certain Amendment No. 1 to Form 10-K for the year ended December~~ on March 31, ~~2016, filed with the SEC on July 14, 2017~~2021 and ~~can~~may also be found on the Company’s website (www.delcath.com). In these notes to the condensed consolidated financial statements the terms “us”, “we” or “our” refer to Delcath and its consolidated subsidiaries.

On November 6, 2017, the Company effected a reverse stock split at which time Delcath’s common stock began trading on the OTCQB on a one-for-three hundred and fifty (1:350) split-adjusted basis. All owners of record as of the open of the OTCQB market on November 6, 2017 received one issued and outstanding share of Delcath common stock in exchange for three hundred and fifty issued and outstanding shares of Delcath common stock. No fractional shares were issued in connected with the reverse stock split. All fractional shares created by the one-for-three hundred and fifty exchange were rounded up to the next whole share. The reverse stock split had no impact on the par value per share of Delcath common stock, which remains at $0.01. All current and prior period amounts related to shares, share prices and earnings per share, presented in the Company’s interim condensed consolidated financial statements contained in the Quarterly Report on Form 10-Q and the accompanying Notes, have been restated to give retrospective presentation for the reverse stock split.

We are an interventional oncology company focused on the treatment of primary and metastatic liver cancers. Our ~~investigational product—Melphalan Hydrochloride~~lead product candidate, the HEPZATO™ KIT (melphalan hydrochloride for ~~Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS) —is~~injection/hepatic delivery system), or HEPZATO™, is a drug/device combination product. HEPZATO is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. In Europe, our ~~system~~commercial product is ~~in commercial development~~a stand-alone medical device having the same device components as the HEPZATO KIT but without the melphalan hydrochloride and is approved for sale under the trade name ~~Delcath~~CHEMOSAT® Hepatic ~~CHEMOSAT~~^® Delivery System for Melphalan, ~~(CHEMOSAT~~^®),or CHEMOSAT, where it has been used at major medical centers to treat a wide range of cancers of the liver.

Our primary research focus is on ocular melanoma liver metastases (mOM) and intrahepatic cholangiocarcinoma (ICC), a type of primary liver cancer, and certain other cancers that are metastatic to the liver. We believe the disease states we are investigating represent a multi-billion dollar global market opportunity and a clear unmet medical need.

~~Our~~ clinical development program for ~~CHEMOSAT and Melphalan/HDS~~HEPZATO is primarily comprised of ~~The~~the FOCUS Clinical Trial for Patients with Hepatic Dominant Ocular Melanoma ~~(The FOCUS~~(FOCUS Trial), a ~~Global Phase 3~~global registration clinical trial that is investigating ~~overall survival~~objective response rate in ~~mOM,~~metastatic ocular melanoma, or mOM. We are currently reviewing the incidence, unmet need, available efficacy data and development requirements for a broad set of liver cancers in order to select a portfolio of follow-on indications which will maximize the value of the HEPZATO platform.

Due to the global outbreak of SARS-CoV-2, a novel strain of coronavirus that causes Coronavirus disease (COVID-19), the Company experienced an impact on certain areas of its business. These effects included a slowing of patient recruitment in the FOCUS trial and a ~~registration~~reduction in the pace at which we can monitor data at our clinical trial sites. The resulting delay in completing enrollment and additional time required to monitor data caused our announcement for ~~intrahepatic cholangiocarcinoma (ICC) we~~the top-line data from our FOCUS Trial to shift to early 2021 and to be modified to a preliminary analysis. We now plan to ~~initiate in 2017. Our clinical development plan (CDP) also includes~~submit a ~~commercial registry for CHEMOSAT non-clinical commercial cases performed in Europe and sponsorship of select investigator initiated trials (IITs) in colorectal cancer metastatic~~New Drug Application (NDA) to the ~~liver (mCRC)~~FDA in the first quarter of 2022 for the treatment of mOM. The ability to achieve this goal is contingent on our ability to monitor data at our clinical sites and ~~pancreatic cancer metastatic~~therefore the timeline may shift as access to the ~~liver.~~clinical sites changes in response to the rapidly evolving situation. We have also experienced an increased volatility in EU commercial product revenue and additional impacts to the business may arise that we are not aware of currently. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity, or capital resources cannot be reasonably estimated at this time.

The accompanying interim condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses since inception and ~~has an accumulated deficit of~~ ~~$305.6~~ ~~million at September 30, 2017. As shown in~~expects to continue incurring losses for the ~~accompanying financial statements during the three and nine months ended September 30, 2017, the Company incurred net~~next several years. These losses, of ~~$12.6~~ ~~million and $25.9 million, respectively and during the nine months ended September 30, 2017 used~~ ~~$11.7~~ ~~million of cash for its operating activities. These~~among other factors, ~~among others~~ raise substantial doubt about the Company’s ability to continue as a going ~~concern for a reasonable period of time.~~

concern. The Company’s existence is dependent upon management’s ability to obtain additional funding sources or to enter into strategic alliances. Adequate additional financing may not be available to the Company on acceptable terms, or at all. If the Company is unable to raise additional capital and/or enter into strategic alliances when needed or on attractive terms, it would be forced to delay, reduce, or eliminate its research and development programs or any commercialization efforts. There can be no assurance that the Company’s efforts will result in the resolution of the Company’s liquidity needs. If Delcath is not able to continue as a going concern, it is likely that holders of its common stock will lose all of their investment. The accompanyinginterim condensed consolidated financial statements do not include any adjustments that might result should the Company be unable to continue as a going concern.

~~The Company has incurred losses since inception.~~ The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales. AsThese circumstances raise substantial doubt about the Company's ability to continue as a ~~result of issuing $35.0 million in senior secured convertible notes in June 2016 and effecting a reverse stock split on November 6, 2017 management believes~~going concern within one year after the date that ~~in its current reduced operating mode its capital resources will be adequate to fund operations through at least January 2018. To~~ the ~~extent additional~~financial statements are issued. Additional working capital is ~~not available when needed, the Company may be forced~~required to ~~abandon some or all of its development and commercialization efforts, which would have a material adverse effect on the prospects of the business.~~ continue operations.Operations of the Company are subject to certain risks and uncertainties, including, among others, ~~uncertainties~~uncertainty of product development and ~~risks related to~~ clinical ~~research, product development;~~trial results; uncertainty regarding regulatory ~~approvals; technology;~~approval; technological uncertainty; uncertainty regarding patents and proprietary rights; comprehensive government regulations; limited commercial ~~manufacturing;~~manufacturing, marketing, ~~and~~or sales experience; and dependence on key ~~personnel.~~personnel.

These interim condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (GAAP) and with the SEC’s instructions to Form 10-Q and Article 10 of Regulation S-X. They include the accounts of all entities controlled by Delcath and all significant inter-company accounts and transactions have been eliminated in consolidation.

The preparation of interim condensed consolidated financial statements requires management to make assumptions and estimates that impact the amounts reported. These interim condensed consolidated financial statements ~~in the opinion of management,~~ reflect all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Company’s results of operations, financial position and cash flows for the interim periods ended September 30, ~~2017~~2021 and ~~2016;~~2020; however, certain information and footnote disclosures normally included in our audited consolidated financial statements included in our Annual Report on Form 10-K have been condensed or omitted as permitted by GAAP. It is important to note that the Company’s results of operations and cash flows for interim periods are not necessarily indicative of the results of operations and cash flows to be expected for a full fiscal year or any interim period.

~~A description of~~There have been no material changes to our significant accounting policies ~~has been provided~~as set forth in Note 3 Summary of Significant Accounting Policies to the ~~Consolidated Financial Statements~~consolidated financial statements included in the Company’s Annual Report on Form 10-K ~~filed~~ for the ~~period~~fiscal year ended December 31, ~~2016.~~2020, except for the following:

Certain prior period balances have been reclassified in order to conform to current period presentation. These reclassifications have no effect on previously reported results of operations or loss per share.

In ~~May 2014,~~December 2019, the ~~FASB~~Financial Accounting Standards Board (“FASB”) issued ~~ASU 2014-09, Revenue from Contracts with Customers~~Accounting Standards Update (“~~ASU 2014-09”~~ASU”) ~~that updates~~2019-12, Simplifying the ~~principles~~Accounting for ~~recognizing revenue.~~Income Taxes. The ~~core principle~~list of changes is comprehensive; however, the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also amends the required disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective forchanges will not significantly impact the Company ~~beginning in its fiscal year 2018, and may be applied retrospectively to all prior periods presented or through a cumulative adjustment~~due to the ~~opening retained earnings balance in the year of adoption. The Company intends to adopt this standard on January 1, 2018. Due to the nature of~~full valuation allowance that is recorded against the Company’s ~~revenue generating activites and the small number~~deferred tax assets. Early adoption of ~~customer contracts, the Company does not anticipate that this guidance will materially impact its consolidated financial statements.~~

~~In February 2016, the FASB issued~~ ASU No. 2016-02, Leases, which requires entities to report a right-to-use asset and liability for the obligation to make payments for all leases with the exception of those leases with a term of twelve months or less. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018. The Company intends to adopt this standard on January 1, 2019 and is currently evaluating the impact it may have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption2019-12 is permitted, including adoption in any interim period for public business entities for periods ~~within those fiscal years.~~for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all of the amendments in the same period. The ~~guidance requires application using a retrospective transition method. The~~ Company ~~is currently evaluating the effects, if any, that the adoption of this guidance will have~~adopted ASU 2019-12 on January 1, 2021, and there was no material impact on the Company’s financial ~~statements.~~statements or disclosures.

~~In November 2016,~~On May 3, 2021, the FASB issued ASU ~~2016-18, Statement~~2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of ~~Cash Flows (Topic 230): Restricted Cash. The~~Freestanding Equity-Classified Written Call Options. This new ~~guidance requires~~standard provides clarification and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (such as warrants) that ~~the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash~~remain equity classified after modification or ~~restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18~~exchange. This standard is effective for fiscal years beginning after December 15, ~~2017 and~~2021, including interim periods within those fiscal ~~years, and early~~years. Issuers should apply the new standard prospectively to modifications or exchanges occurring after the effective date of the new standard. Early adoption is ~~permitted.~~permitted, including adoption in an interim period. If an issuer elects to early adopt the new standard in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The Company ~~intends to adopt this standard on January 1, 2018 and~~ is evaluating ~~the effects, if any, that the adoption of~~ this ~~guidance will have on the Company’s financial statements.~~new standard.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815). The new guidance intends to reduce the complexity associated with the issuer’s accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the Board determined that a down round feature would no longer cause a freestanding equity-linked financial instrument (or an embedded conversion option) to be accounted for as a derivative liability at fair value with changes in fair value recognized in current earnings. In addition, the Board re-characterized the indefinite deferral of certain provisions of Topic 480 to a scope exception. The re-characterization has no accounting effect. ASU 2017-11 is effective for public entities for fiscal years beginning after December 15, 2018. ~~The Company intends to adopt this standard on January 1, 2019 and is evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial statements.~~

Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are recorded in Restricted Cash on the balance sheets. Restricted cash does not include required minimum balances.

¹Other consists of various prepaid expenses and other current assets, with no individual item accounting for more than 5% of prepaid expenses and other current assets at September 30, 2017 and December 31, 2016.

Depreciation expense for the three and nine months ended September 30, ~~2017~~2021 was approximately ~~$0.1 million~~$36.2 and ~~$0.2 million, respectively,~~$114.6 as compared to approximately ~~$0.1 million~~$32.8 and ~~$0.2 million, respectively,~~$124.8 for the same ~~periods~~period in ~~2016.~~2020.

¹~~Other consists of various accrued expenses, with no individual item accounting for more than 5% of current liabilities at September 30, 2017 and December 31, 2016.~~

InThe Company recognizes right-of-use (“ROU”) assets and lease liabilities when it obtains the right to control an asset under a leasing arrangement with an initial term greater than twelve months. The Company leases its facilities under non-cancellable operating and financing leases.

The Company evaluates the nature of each lease at the inception of an arrangement to determine whether it is an operating or financing lease and recognizes the ROU asset and lease liabilities based on the present value of future minimum lease payments over the expected lease term. The Company’s leases do not generally contain an implicit interest rate and therefore the Company uses the incremental borrowing rate it would expect to pay to borrow on a similar collateralized basis over a similar term in order to ~~help reduce operating costs and more appropriately align its office space with~~determine the ~~reduced size~~present value of its ~~workforce,~~lease payments.

Pursuant to a 2014 sublease agreement (the “2014 Sublease”) and a 2015 sublease agreement (the “2015 Sublease”) the Company subleased portions of its leased premises in Galway, Ireland to a sublessee. On May 15, 2020, the Company and its sublessee entered into ~~two sub-leases~~amendments to the 2014 Sublease and the 2015 Sublease pursuant to which (i) the 2014 Sublease and 2015 Sublease were extended from May 31, 2020 to August 2, 2021, (ii) effective July 1, 2020, the leased premises under the 2015 Sublease would be expanded to include an additional 4,999 square feet of space, and (iii) effective July 1, 2020, the rent under the 2015 Sublease would increase from approximately $14.6 per month to $20.6 per month. The Company analyzed the terms of the amended 2014 Sublease and 2015 Sublease and determined that its ROU asset for ~~office space at its 810 Seventh Avenue office.~~the master operating lease was not impaired as a result of the amendments. On ~~May 22, 2014,~~June 25, 2020, the Company entered into a sub-lease agreement ~~(“Sub-lease #1”~~(the “2021 Sub-Lease”) ~~for approximately one-half~~with its previous sublessee under the 2014 Sublease and 2015 Sublease pursuant to which, effective August 2, 2021, the previous sublessee would become the lessee and the Company would then sub-lease its portion of the ~~office space at this location (“Suite 3500”), resulting~~premises in Galway, Ireland from the previous sublessee. The Company rent under the 2021 Sub-Lease is approximately $3.7 per month for a ~~lease restructuring reserve~~term of approximately $0.9 million. On August 18, 2014, the Company entered into a sub-lease agreement (“Sub-lease #2”) for the remaining one-half of office space at its 810 Seventh Avenue office (“Suite 3505”), resulting in a lease restructuring reserve of approximately $0.7 million. As of September 30, 2017, the total remaining lease restructuring liability for its leased office space was approximately $0.7 million, of which approximately $0.3 million and $0.4 million were included in Accrued expenses and Other non-current liabilities on the condensed consolidated balance sheets, respectively.five years.

The following table ~~provides~~summarizes the ~~year-to-date activity~~Company’s operating leases as of and for the nine months ended September 30, 2021:

Remaining maturities of the Company’s ~~restructuring reserves~~operating leases, excluding short-term leases, are as ~~of September 30, 2017:~~follows:

The Avenue Warrant was valued at issuance at $1,309 using the Black-Scholes option pricing method using the following assumptions:

On ~~June~~August 6, ~~2016,~~2021, the Company entered into a ~~Securities Purchase~~Loan and Security Agreement (the ~~“SPA”~~“Loan Agreement”) with ~~certain investors named on the Schedule~~Avenue Venture Opportunities Fund, L.P. (the “Lender,” or “Avenue”) for a term loan in an aggregate principal amount of ~~Buyers attached~~up to $20,000 (the “Loan”). The Loan bears interest at an annual rate equal to the ~~SPA pursuant~~greater of (a) the sum of 7.70% plus the prime rate as reported in The Wall Street Journal and (b) 10.95%. The Loan is secured by all of the Company’s assets globally, including intellectual property. The Loan maturity date is August 1, 2024.

The initial tranche of the Loan is $15,000, including $4,000 which has been funded into a restricted account and will be released upon achievement of (a)(x) positive FOCUS trial efficacy per the trial’s predefined Statistical Analysis Plan (SAP) (specifically the Overall Response Rate exceeds the prespecified threshold for success defined in the SAP by a statistically significant amount); and (y) based on data contained within the FOCUS trial database and appropriate for use with the U.S. Food and Drug Administration, safety and tolerability among FOCUS trial participants is within the range of currently approved and commonly used cytotoxic chemotherapeutic agents; and (b) raising subsequent net equity proceeds of at least $20,000. The Company may request an additional $5,000 of gross proceeds between October 1, 2022 and December 31, 2022, with funding, subject to ~~which~~the approval of Avenue’s Investment Committee.

In connection with the Loan, the Company issued ~~$35.0 million in principal face amount of senior secured convertible notes of the Company~~to Avenue a warrant (the ~~“Notes”) and related Series C Warrants (the “Series C Warrants”~~“Avenue Warrant”) to purchase ~~additional~~127,755 shares of common stock at an exercise price per share equal to $0.01. The Avenue Warrant is exercisable until August 31, 2026.

Up to $3,000 of the principal amount of the loan outstanding may be converted, at the option of the Lender, into shares of the Company’s common stock ~~par value $0.01~~at a conversion price of $11.98 per ~~share (“Common Stock”).~~ ~~$35.0 million~~share.

The Company will make monthly interest-only payments during the first fifteen months of the ~~Notes were issued for cash proceeds of $32.2 million with an original issue discount in the amount of $2.8 million.~~ ~~The Notes are secured pursuant to a Security Agreement which creates a first priority security interest in all~~term of the ~~personal property (other than Excluded Collateral (as defined in~~Loan, which could be increased to up to twenty-four months upon the ~~Security Agreement)~~achievement of specified performance milestones. Following the interest-only period, the Company will make equal monthly payments of principal plus interest until the maturity date, when all remaining principal outstanding and accrued interest must be paid. If the Company prepays the Loan, it will be required to pay (a) a prepayment fee of 3% if the Loan is prepaid during the interest-only period; and (b) a prepayment fee of 1% if the Loan is prepaid after the interest-only period. The Company must make an incremental final payment equal to 4.25% of the ~~Company of every kind and description, tangible or intangible, whether currently owned and existing or created or acquired in the future.~~aggregate funding.

The ~~Notes do not bear any ordinary interest. However, interest shall commence accruing immediately upon the occurrence~~Company paid an aggregate commitment fee of ~~and shall continue accruing during the continuance of, an Event of Default,~~$150 at ~~15% per annum and shall be computed on the basis of~~closing. Upon funding a 360-day year of twelve 30-day months and shall be payable, if applicable, in arrears for each calendar month on the first (1st) business day of each calendar month after any such interest accrues after an Event of Default.

~~Under the terms of the Notes, at closing the Company received an initial tranche of $3.0 million for immediate use for general corporate purposes.~~ A second tranche of ~~$3.0 million~~the Loan, the Lender will earn a 1.0% fee on the $5,000 of incremental committed capital, for a total commitment fee of $200.

The Loan Agreement requires the Company to make and maintain representations and warranties and other agreements that are customary in loan agreements of this type. The Loan Agreement also contains customary events of default, including non-payment of principal or interest, violations of covenants, bankruptcy and material judgments.

The Company determined that the embedded conversion option associated with the Loan was ~~released~~not required to be bifurcated. The Company determined that the Avenue Warrant met the criteria to be equity-classified. The $637 value of the final payment was treated as original issue discount. The $1,171 relative fair value of the Avenue Warrant was credited to Additional Paid in Capital while it was debited as debt discount. Of the $563 of cash issuance costs, $519 was allocated to the ~~Company in December 2016. An additional $6.6 million~~Loan and was ~~released during the three months ended March 31, 2017. Under the terms of warrant repurchase agreements signed in April 2017 and discussed in more detail below, $7.9 million~~recorded as debit discount, while $44 was ~~returned~~allocated to the ~~holders~~Avenue Warrant and was debited to Additional Paid in ~~exchange for~~Capital. Of the ~~extinguishment~~$2,327 of aggregate debt discount, $1,909 was allocated to the non-convertible portion of the ~~Series C Warrants. During~~Loan, while $418 was allocated to the convertible portion of the Loan. Aggregate debt discount amortization of $127 was recorded during the three months ended September 30, 2017, an additional $2.1 million was released to the Company and $2.4 million was returned to the holders in order to redeem the Series A and Series B Preferred Shares discussed in more detail in Note 8. ~~The remaining cash proceeds of $7.3 million are being held in restricted accounts.~~

In connection with the issuance of the Notes under the SPA, the Company also issued Series C Warrants, exercisable to acquire appoximately 20,000 shares of Common Stock. The provisions in the Series C Warrants required the Company to account for the warrants as derivative liabilities. The Company recognized a discount to debt of $27.8 million2021, including $107 related to the ~~initial fair value~~non-convertible portion of the Series C Warrants. On April 2, 2017 the Company entered into separate warrant repurchase agreements (the “Warrant Repurchase Agreements”) with each of the investors named on the Schedule of Buyers attached to the SPA. Pursuant to the Warrant Repurchase Agreements, each investor agreed to a Controlled Account Release, in an aggregate amount equal to $7.9 million, which funds in each case were paid to the respective investor, in exchange for cancellation of the Warrants issued to each investor under the SPA. As a result of the extinguishment, the Company recognized a gain of $9.6 million, representing the difference between the fair value of the liability as of the extinguishment date of $17.5 millionLoan and $19 related to the ~~Series C Warrants and the $7.9 million in cash returned to the Note holders to extinguish the liability.~~

The Company has agreed to make amortization payments with respect to the Notes in fourteen (14) equal installments beginning seven (7) months after the original date of issuance of June 13, 2016 (each, an “Installment Date”). On each installment date, assuming certain equity conditions are met, the installment payment shall, at the election of the Company, automatically be converted into shares of Common Stock at a conversion rate defined in the agreement. If we cannot meet the equity conditions, we could be required to repay some or all of the amounts due under the notes in cash, and we may not have the funds available to make one or more of such payments when due. ~~At any time after the issuance of the Notes, the Notes will be~~ convertible ~~at the election of the holder into shares of our Common Stock at a conversion price equal to $1,536.50, subject to adjustment as provided in the Notes.~~

On August 28, 2017, the Company entered into a Restructuring Agreement (the “Agreement”) with one of the institutional investors (the “Investor”) who was a party to the SPA. As of the date the Agreement was entered into, the Investor held $11,444,637 aggregate principal amount of Notes of which there was $10,092,857 aggregate Restricted Principal, (as defined in the Notes) of Notes (the “Restricted Notes”), secured by such aggregate cash amount held in a collateral account of the Company in the same amount (the “Restricted Cash”) and (y) $1,351,780 principal of Notes (the “Unrestricted Notes”), (ii) 4,200 shares of Series A Preferred Stock and (iii) 2,006 shares of Series B Convertible Preferred Stock.

Pursuant to the Agreement, (a) on the date thereof the Company and the Investor took the following actions (the “Initial Restructuring”): (i) the Investor released restrictions on $1,650,000 of Restricted Cash (the “Initial Release”), (ii) the Investor consented to the use of additional Restricted Cash to effect redemptions of the Series A Preferred Shares and the Series B Preferred Shares, (iii) the Investor cancelled $1,200,000 aggregate principal of the Notes (such portion of the ~~Notes,~~Loan. The Company also determined that the “Cancellation Note”), (iv) the Company redeemed all the Series A Preferred Shares outstanding for a cash payment to the Investor of $4.20 and (v) the Company redeemed the Series B Preferred Shares for a cash payment to the Investor of $2,006,000 and (b) upon the consummation of a reverse stock split of our Common Stock of at least twenty to one (the “Reverse Stock Split Event”, and such date, the “Reverse Stock Split Date”) by September 15, 2017, the Company and the Investor shall have taken the following actions (the “Additional Restructuring”, and together with the Initial Restructuring, the “Restructuring”): (i) the Investor shall consent to the use of Restricted Cash to effect redemptions of $4,000,000 aggregate Restricted Principal of the Restricted Notes (suchconvertible portion of the ~~Restricted Notes,~~loan did not include a beneficial conversion feature, because the ~~“Redemption Notes”), (ii)~~effective conversion price exceeded the Company shall redeem the Redemption Notes for a redemption price of $6,436,852.80 (the “Redemption Price”) and (iii) the Company shall exchange (the “Exchange”), pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, $2,436,852.80 aggregate Restricted Principal of the Restricted Notes (such portion of the Restricted Notes, the “Exchange Notes”, and together with the Redemption Notes, the “Restructured Notes”) for new warrants to purchase 114,286 shares of its Common Stock (the “New Warrants”, as exercised, the “New Warrant Shares”). The New Warrants expire on the 42 month anniversary of thecommitment date of issuance and bear an exercise price of $122.50 per share (which shall be adjusted to the new lower purchase price per share if there is a subsequent “down round” financing). The Investor, in lieu of an exercise of the New Warrants pursuant to a cash payment of the aggregate exercisemarket price of the number of New Warrants being exercised, may exercise the New Warrants, in whole or in part, by electing instead to receive upon such exercise two shares and one hundred and twenty-five thousandths of a share of the Company’s Common Stock for each Warrant Share exercised pursuant to this provision.. The transactions set forth herein were being made in reliance upon the exemption from registration provided by Rule 4(a)(2) of the Securities Act of 1933, as amended (the “1933common stock.

~~Act”)~~Extension and ~~Rule 144(d)(3)(ii)~~Amendment of ~~the 1933 Act. As a result of not having effected a reverse stock split by September 15, 2017, the Additional Restructuring did not occur.~~Convertible Note Payable – Rosalind

As ~~a result of the lack of requisite approval by Delcath stockholders for the Company’s proposed reverse stock split, the parties and the two investors in the Notes entered into an amendment to the~~previously reported, on August ~~restructuring agreement on October 10, 2017 as follows: (i) on the date that~~6, 2021, the Company ~~effects a reverse split of its common stock, (x) the Company will exchange, pursuant~~executed an agreement to ~~Section 4(a)(2) of the Securities Act of 1933, as amended, an aggregate principal amount of those notes equal to $279,015 for new warrants to purchase~~amend an aggregate of ~~127,551 shares of Common Stock,~~$2,000 outstanding

secured convertible notes payable to Rosalind Opportunities Fund I L.P. and the Company shall redeem all the Series C Preferred Shares then outstanding for a cash payment of $590,000 and (ii) upon the initial consummation, on or prior to December 15, 2017, by the Company of the offering contemplated by the registration statement on Form S-1 that was filed with the SEC on October 11, 2017 the following shall occur: (i) pursuant to Section 3(b) of the Restricted Notes, the Company shall be deemed (as adjusted downward by the Black-Scholes value of the warrants being issued in this offering) to have automatically, and irrevocably, adjustedRosalind Master Fund L.P., respectively, which (a)

reduces the conversion price of the ~~Notes~~convertible notes to ~~200%~~$1,198 per share of the ~~purchase price of a share of our common stock in the offering contemplated by the registration statement, (ii)~~Company’s Series E Convertible Preferred

Stock; and (b) extends the maturity date ~~(as defined in the notes) shall automatically be extended to the earlier to occur of (x) the first anniversary~~ of the ~~date of consummation of the offering contemplated by the registration statement and (y) December 30, 2018, (iii) until the earlier of (x) this maturity date and (y) the 75~~^th calendar day after the date of consummation of the offering contemplated by the registration statement, all installments to be made under the notes shall be deemed automatically deferred with no conversions during that 75 day period, (iv) the Company agreed to redeem any portion of the outstanding notes at any time requested by either investor thereto with $7.3 million in cash to be reduced by $0.6 million to redeem the Series C Preferred Stock remaining in the restricted accounts with respect to the 2016 convertible notes ~~and (v)~~to October 30, 2024. In addition, in order to induce the ~~conversion floor price on~~

Company’s lender Avenue to provide the ~~notes is $0.05 and not subject to adjustments.~~

~~The Company has issued shares of Common Stock as payments of principal (including certain early repayments at the option of the holders) under the Notes as follows:~~

¹~~During the periods referenced~~Loan described above, ~~the Company and~~ the holders of the ~~Notes~~convertible notes agreed to ~~a temporary reduction~~subordinate (a)

all of the Company’s indebtedness and obligations to the holders; and (b) all of the holders’ security interest, to the Loan and

Avenue’s security interest in the ~~conversion price in order to encourage voluntary conversion of Notes by the holders thereof.~~Company’s property.

²¹ ~~On July 2, 2017, the Company entered~~The notes are convertible into ~~an exchange agreement with one of its investors which had purchased Notes, for $4.2 million aggregate principal amount of such Notes for 4,200~~ shares of the Company’s Series AE Convertible Preferred Stock. The Series A Preferred Stock shares were issued to address a short-term valuation issue for 689,796 common shares delivered to the Notes holders to close an installment period. Through the Series A Preferred Shares placement, the Company was able to value the open installment shares such that the amount of debt remaining under the Notes was reduced by $4.2 million. Additionally, the Company recognized a loss on debt settlement of $1.0 million related to this transcation.

³On August 28, 2017, the Company entered into a restructuring agreement with one of its investors which had purchased Notes. The restructuring agreement included a provision to exchange 117,171 shares for $1.2 million aggregate principal amount of such Notes. Additionally, the Company recognized a loss on debt settlement of $2.0 million related to this transaction. The restructuring agreement is discussed in more detail above.

~~As a result of the Notes including a feature such that the conversion price is based upon a formula which includes discounts to the market price of the common stock as well as having a~~ ~~lower effective conversion price considering the issuance discount and the value allocated to the Series C Warrants~~, the Company has recognized a beneficial conversion feature of $4.4 million. The original issue discount, the beneficial conversion feature, and the fair value of the issuance of the Series C Warrants are collectively considered the debt discount. The Company recorded a debt discount in the amount of $35.0 million which is being amortized over the life of the Notes using the effective interest method. As of September 30, 2017, $~~33.3~~ ~~million of the debt discount has been amortized to interest expense. In addition to the debt discounts listed above, the Notes also include~~ put options in the event of default and change in control as defined in the Notes. The value of such options was zero as the probability for such events was remote as of the issuance date and at September 30, 2017.

All debt issuance costs are accounted for as a deferred asset and will be amortized over the life of the Notes. As of September 30, 2017, the Company had incurred approximately $1.8 million in debt issuance costs and had amortized approximately $1.2 million of those costs.

~~The following table summarizes the convertible notes outstanding at September 30, 2017:~~

On November 6, 2017, the Company effected a reverse stock split at which time Delcath’s common stock began trading on the OTCQB on a one-for-three hundred and fifty (1:350) split-adjusted basis. All owners of record as of the open of the OTCQB market on November 6, 2017 received one issued and outstanding share of Delcath common stock in exchange for three hundred fifty issued and outstanding shares of Delcath common stock. No fractional shares were issued in connection with the reverse stock split. All fractional shares created by the one-for-three hundred fifty exchange were rounded up to the next whole share. The reverse stock split had no impact on the par value per share of Delcath common stock, which remains at $0.01. All current and prior period amounts related to shares, share prices and earnings per share, presented in the Company’s interim condensed consolidated financial statements contained in the Quarterly Report on Form 10-Q and the accompanying Notes, have been restated to give retrospective presentation for the reverse stock split.]

On July 19, 2016, shareholders of the Company approved, through a shareholder vote, an amendment to the Company’s Amended and Restated Certificate of Incorporation authorizing the Board of Directors to effect a reverse stock split of Delcath’s common stock at a ratio within a range of one-for-ten (1:10) to one-for-twenty (1:20). The reverse stock split became effective on July 21, 2016 at which time Delcath’s common stock began trading on the NASDAQ Stock Exchange on a one-for-sixteen (1:16) split-adjusted basis. All owners of record as of the open of the NASDAQ market on July 21, 2016 received one issued and outstanding share of Delcath common stock in exchange for sixteen issued and outstanding shares of Delcath common stock. No fractional shares were issued in connection with the reverse stock split. All fractional shares created by the one-for-sixteen exchange were rounded up to the next whole share. The reverse stock split had no impact on the par value per share of Delcath common stock, which remains at $0.01. All current and prior period amounts related to shares, share prices and earnings per share, presented in the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q and the accompanying Notes, have been restated to give retrospective presentation for the reverse stock split.

In addition, shareholders of the Company also approved an amendment to the Company’s Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 170,000,000 to 500,000,000. The previously discussed reverse stock split had no impact on the increase in authorized shares.

On June 29, 2017, our Board authorized the establishment of a new series of preferred stock designated as Series A Preferred Stock, $0.01 par value, the terms of which are set forth in the certificate of designations for such series of Preferred Stock (the

“Series A Certificate of Designations”) which was filed with the State of Delaware on June 30, 2017 (together with any preferred shares issued in replacement thereof in accordance with the terms thereof, the “Series A Preferred Stock”). On July 2, 2017, we entered into an exchange agreement (the “Exchange”) with one of our investors which had purchased certain senior secured convertible notes (the “Notes”), convertible into shares of our common stock pursuant to a certain June 6, 2016 securities purchase agreement, of $4.2 million aggregate principal amount of such Notes for 4,200 shares of Series A Preferred Stock (the “Series A Preferred Shares”). The Exchange was made in reliance upon the exemption from registration provided by Rule 3(a)(9) of the Securities Act of 1933, as amended. The Series A Preferred Shares were entitled to the whole number of votes equal to $4.2 million divided by $1,288.00 (the closing bid price on June 13, 2016, the date of issuance of the Notes as adjusted for the reverse stock split effected in July 2016,) or 3,261 votes. The Series A Preferred Stock had no dividend, liquidation or other preferential rights to our common stock, and each share of Series A Preferred Stock was redeemed for the amount of $0.001, paid in cash pursuant to the Restructuring Agreement signed on August 28, 2017 and discussed in further detail in Note 7.

On June 29, 2017, our Board authorized the establishment of a new series of preferred stock designated as Series B Preferred Stock, $0.01 par value, the terms of which are set forth in the certificate of designations for such series of Preferred Stock (the “Series B Certificate of Designations”) which was filed with the State of Delaware on June 30, 2017 (together with any preferred shares issued in replacement thereof in accordance with the terms thereof, the “Series B Preferred Stock”). On July 11, 2017, we entered into a securities purchase agreement with existing holders of Notes pursuant to which the investors purchased $2,360,000 of Series B Preferred Stock for a cash purchase price of $2,000,000 in a private placement. The Series B Preferred Stock was entitled to the whole number of votes equal to $2.0 million divided by $65.35 (the closing bid price on July 5, 2017, the date of the original securities purchase agreement for the Series B Preferred Stock), or 30,607 votes. The Series B Preferred Stock had no dividend, liquidation or other preferential rights (but had the redemption rights described below) to our common stock and could have been converted into shares of our common stock at a price equal to $53.55 per share upon the earlier of the date of closing to the extent that the holder thereof reallocated shares of our common stock reserved for issuance under its Notes to conversion of the Series B Preferred Shares and otherwise upon receipt of shareholder approval of the Reverse Stock Split. The Series B Preferred Stock allowed for optional redemption by the Company at any time after issuance or the holders at any time after the tenth business day prior to the maturity date. In the instance of a Financing, the Company was required to redeem the Series B Preferred Stock. The $360,000 difference between the redemption amount and the cash purchase price of the Series B Preferred Stock, as well as all issuance costs related to the Series B Preferred Stock, have been recorded as a deemed dividend. The Series B Preferred Stock was redeemed for $2,360,000 pursuant to the Restructuring Agreement signed on August 28, 2017 with one investor and upon a redemption notice from the second investor as discussed in further detail in Note 7.

On September 12, 2017, our Board authorized the establishment of a new series of preferred stock designated as Series C Preferred Stock, $0.01 par value, the terms of which are set forth in the certificate of designations for such series of Preferred Stock which was filed with the State of Delaware on September 20, 2017. On September 21, 2017, we entered into a securities purchase agreement with two of our investors which had purchased Notes, convertible into shares of our common stock pursuant to a certain June 6, 2016 securities purchase agreement, of $0.5 million aggregate purchase price for 590 shares of Series C Preferred Stock. The purchase of the Series C Preferred Stock is being made in reliance upon the exemption from registration provided by Rule 4(a)(2) of the Securities Act of 1933, as amended. The Series C Preferred Stock shall be entitled to 1,484,061 votes and may only vote on approval of a reverse split of our outstanding common stock. The Series C Preferred Stock has no dividend, liquidation or other preferential rights to our common stock, and each share of Series C Preferred Stock shall be redeemable for the amount of $1,000.00, payable in cash per share at our written election, and must be redeemed by us no later than December 21, 2017. Because the Series C Preferred Stock is mandatorily redeemable, it has been recorded as a liability with the difference between the purchases price and the fair value being recognized over the term of the instrument. Additionally, all expenses related to the issuance of the Series C Preferred Stock are recognized as a debt discount and have been amortized over the term of the instrument. Per the terms of the October 22, 2017 Amendment to the Restructuring Agreement, the Series C Preferred Stock was redeemed for $590,000 on November 6, 2017.

subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. At September 30, 2017, the 2013 Warrants were exercisable at $39,424.00 per share with approximately 100 warrants outstanding. The 2013 Warrants have a five-year term.

In February 2015, the Company completed the sale of approximately 440 shares of its common stock and the issuance of warrants to purchase 197 common shares (the “February 2015 Warrants”) pursuant to an underwriting agreement. The Company received proceeds of $2.6 million, with net cash proceeds after related expenses from this transaction of $2.5 million. Of those proceeds, the Company allocated an estimated fair value of $0.8 million to the February 2015 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. The exercise price of the warrants is also subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. At September 30, 2017, the February 2015 Warrants were exercisable at $49.00 per share with approximately 100 warrants outstanding. The February 2015 Warrants have a five-year term.

In July 2015, the Company completed the sale of approximately 1,715 Units consisting of approximately 1,715 shares of its common stock, Series A Warrants to purchase up to approximately 1,140 common shares (“Series A Warrants”) and Series B Warrants to purchase Units consisting of up to approximately 1,715 common shares (“Series B Warrants”) and 1,140 Series A Warrants pursuant to an underwriting agreement. The Company received proceeds of $7.0 million, with net cash proceeds after related expenses from this transaction of $6.0 million. Of those proceeds the Company allocated an estimated fair value of $3.4 million to the Series A and Series B Warrants. During the three months ended March 31, 2016, approximately 285 Series B Warrants were exercised for net proceeds of approximately $0.8 million. The remaining 1,140 Series B Warrants expired on January 29, 2016 and the remaining liability was credited to Change in the fair value of the warrant liability. As a result of the Series B Warrant exercises, an additional 285 Series A Warrants were issued. The exercise price of the Series A Warrants is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock and is subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. At September 30, 2017, the Series A Warrants were exercisable at $49.00 with approximately 500 warrants outstanding. The Series A Warrants have a five-year term. There were approximately 285 July 2015 Series A Warrants exercised during the nine months ended September 30, ~~2017 for proceeds~~2021, an aggregate of ~~approximately $15,000.~~

~~In October 2016, the Company completed the sale of approximately 1,215~~8,924 shares of ~~its common stock~~Series E and ~~the issuance of warrants to purchase 425 common~~Series E-1 Convertible Preferred Stock were converted into 892,379 shares (the “October 2016 Warrants”) pursuant to an underwriting agreement. The Company received proceeds of $1.2 million, with net cash proceeds after related expenses from this transaction of $1.1 million. Of those proceeds, the Company allocated an estimated fair value of $0.3 million to the October 2016 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. The exercise price of the ~~warrants is also subject to anti-dilution adjustments for any issuance of~~Company’s common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. For purposes of these adjustments, dilutive issuances do not include securities issued under existing instruments, under board-approved equity incentive plans or in certain strategic transactions. At September 30, 2017, the October 2016 Warrants were exercisable at $49.00 per share with 200 warrants outstanding. The October 2016 Warrants have a five-year term.stock.

The Company established the 2004 Stock Incentive Plan and the 2009 Stock Incentive Plan (collectively, the “Plans”) under which 34 and 573 shares, respectively, have been reserved for the issuance of stock options, stock appreciation rights, restricted stock, stock grants and other equity awards. In July 2016, the total number of shares of Delcath common stock reserved for issuance under the 2009 Stock Incentive Plan was increased by 304 shares, from 269 to 573 shares, upon a favorable vote by the Company’s stockholders. The Plans are administered by the Compensation and Stock Option Committee of the Board of Directors which determines the individuals to whom awards shall be granted as well as the type, terms, conditions, option price and the duration of each award. As of September 30, ~~2017~~2021, there were 55an aggregate of 11,707 shares ~~available to grant under~~of Series E and Series E-1 Convertible Preferred Stock outstanding.

During the ~~2009~~ nine months ended September 30, 2021, the Company issued 465,173 shares of common stock associated with the exercise of warrants, including 215,000 prefunded warrants at an exercise price of $0.01 per share for aggregate cash proceeds of $2,458.

As of ~~the option to purchase a share~~September 30, 2021, there were 2,475,000 shares of the Company’s common stock ~~in the future at a stated price. Options and Restricted Stock granted~~reserved under the ~~Plans vest as determined by~~Delcath Systems, Inc. Omnibus Equity Incentive Plan (the “2020 Plan”), of which 1,275,250 remained available to be issued.

The following is a summary of stock option activity for the ~~Company’s Compensation~~nine months ended September 30, 2021:

The Company values stock options using the Black-Scholes option pricing model and ~~Stock Option Committee. Options~~used the following assumptions during the reporting periods:

The weighted average estimated fair value of the stock options granted ~~under the Plans expire over varying terms, but not more than ten years from the date of grant.~~

~~For~~during the three and nine months ended September 30, ~~2017, the Company recognized~~2021, was approximately $9.70 and $9.69 per share, respectively.

The following table summarizes information for stock option shares outstanding and exercisable at September 30, 2021

The following is a summary of share-based compensation expense in the statement of ~~approximately $3,000 and $48,000, respectively, relating to stock options granted to employees. For the same periods in 2016, the Company~~

recognized compensation expense of approximately $24,000 and $0.1 million, respectively. There were 43 stock options awards granted during the nine months ended September 30, 2017. There were no stock option awards granted during the same period in 2016.

~~For~~operations for the three and nine months ended September 30, 2017, the Company recognized compensation expense of approximately $20,000 and $0.1 million, respectively, relating to restricted stock granted to employees. For the same periods in 2016, the Company recognized compensation expense of approximately $38,000 and $0.2 million, respectively. There were 264 shares of restricted stock granted during the nine months ended September 30, 2017. There were approximately no shares of restricted stock awards granted for the same period in 2016.2021

As disclosed in Note 8 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q, the Company allocated part of the proceeds of public offerings in 2013, 2015 and 2016 of the Company’s common stock to warrants issued in connection with those transactions. In addition, the Company recognized a discount to debt related to the initial fair value of warrants issued in connection with the June 2016 Convertible Notes discussed in further detail in Note 7 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q. The valuation of the October 2013, February 2015, July 2015 Series A, June 2016 Series C and October 2016 warrants (collectively, the “Warrants”) were determined using option pricing models. These models use inputs such as the underlying price of the shares issued at the measurement date, volatility, risk free interest rate and expected life of the instrument. The Company has classified the Warrants as a current liability due to certain provisions relating to price adjustments and potential cash payments, as well as the holders’ ability to exercise the warrants within twelve months of the reporting date and has accounted for them as derivative instruments in accordance with ASC 815, adjusting the fair value at the end of each reporting period. Additionally, the Company has determined that the warrant derivative liability should be classified within Level 3 of the fair-value hierarchy by evaluating each input for the option pricing models against the fair-value hierarchy criteria and using the lowest level of input as the basis for the fair-value classification as called for in ASC 820. There are six inputs: closing price of Delcath stock on the day of evaluation; the exercise price of the warrants; the remaining term of the warrants; the volatility of Delcath’s stock over that term; annual rate of dividends; and the risk-free rate of return. Of those inputs, the exercise price of the warrants and the remaining term are readily observable in the warrant agreements. The annual rate of dividends is based on the Company’s historical practice of not granting dividends. The closing price of Delcath stock would fall under Level 1 of the fair-value hierarchy as it is a quoted price in an active market (ASC 820-10). The risk-free rate of return is a Level 2 input as defined in ASC 820-10, while the historical volatility is a Level 3 input as defined in ASC 820. Since the lowest level input is a Level 3, Delcath determined the warrant derivative liability is most appropriately classified within Level 3 of the fair value hierarchy.

~~For the three and nine months ended~~At September 30, ~~2017,~~2021, there was $8,653 of aggregate unrecognized compensation expense related employee and board stock option grants. This will be recognized over the Company recorded pre-tax derivative warrant income of approximately $27,000 and $1.2 million, respectively. The resulting derivative warrant liabilities totaled approximately $16,000 at September 30, 2017. Management expects that the Warrants will either be exercised or expire worthless. The fair value of the Warrants at September 30, 2017 was determined by using option pricing models with the following assumptions:next 2.2 years.

The ~~table below presents the Company’s assets and liabilities measured at fair value on~~following is a ~~recurring basis as~~summary of ~~September 30, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall in accordance with ASC 820.~~

~~For the periods ended September 30, 2017 and 2016, there were no transfers in or out of Level 1, 2 or 3 inputs.~~

~~The table below presents the~~warrant activity ~~within Level 3 of the fair value hierarchy~~ for the nine months ended September 30, ~~2017:~~

~~Fair Value Measurements Using Significant Unobservable Inputs (Level 3)~~2021:

The following table presents information related to stock warrants at September 30, 2021

Basic net loss per share is determined by dividing net loss by the weighted average shares of common stock outstanding during the period, without consideration of potentially dilutive ~~securities.~~securities, except for those shares that are issuable for little or no cash consideration. Diluted net loss per share is determined by dividing net loss by diluted weighted average shares outstanding. Diluted weighted average shares reflects the dilutive effect, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all common stock options and warrants are generally deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. However, in certain periods in which the exercise price of the warrants was less than the last reported sales price of Delcath’s common stock on the final trading day of the period and there is a gain recorded pursuant to the change in fair value of the warrant derivative liability, the impact of gains related to the mark-to-market adjustment of the warrants outstanding at the end of the period is reversed and the treasury stock method is used to determine diluted earnings per share. Additionally, for the periods ended September 30, 2017, the deemed dividend related to the Series B Preferred Stock (as discussed further in Note 8) is included with net loss to determine both the basic and diluted loss per share.

The following potentially dilutive securities were excluded from the computation of earnings per share as of September 30, ~~2017~~2021 and ~~2016~~2020 because their effects would be anti-dilutive:

At September 30, 2021, the Company had 283,755 pre-funded warrants outstanding. The following table provides a reconciliation of the weighted average shares outstanding calculation for the three and nine months ended September 30, 2021 and 2020:

Following the May 18, 2020 resignation (effective June 1, 2020) of Jennifer Simpson, the Company’s ~~Annual Report,~~former President and CEO, and Barbra Keck, the ~~Company has~~Company’s former CFO (the “Claimants”), it became evident that there was a ~~valuation allowance~~dispute regarding the Company’s compensation obligations. In a letter dated, June 29, 2020, an attorney representing the Claimants made certain claims and threatened litigation against the ~~full~~Company. On or about July 27, 2020, the Claimants filed a statement of claim with the American Arbitration Association against the Company. The Claimants sought payment of certain purported unpaid compensation amounts claimed to be due to them, in an approximate amount of its net deferred tax assets. The Company currently provides a valuation allowance against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. The Company has not recognized any unrecognized tax benefits in its balance sheet.

~~The Company is subject to income tax~~$1,140 in the ~~U.S.,~~aggregate, as well as ~~various state~~unspecified statutory damages under the New York Labor Law, attorneys’ fees and ~~international jurisdictions. During~~costs, and statutory interest. The Company denied any liability or wrongdoing and was vigorously defending against the ~~third quarter~~claims, with contested arbitration hearings initially scheduled to commence in the week of ~~2015,~~May 17, 2021. However, the ~~Internal Revenue Service commenced an examination~~Claimants and the Company agreed to participate in non-binding mediation of their dispute before a neutral mediator, which resulted in the arbitration proceedings being placed in abeyance pending the outcome of the mediation process. With the assistance of the neutral mediator and after careful consideration by the Company’s ~~federal income tax return~~board of directors following several weeks of negotiations, the Claimants and the Company agreed in mid-May of 2021 to a confidential settlement of their dispute to avoid the expenses and distractions of further arbitration proceedings, with no admission of liability or wrongdoing on the part of the Company. While the Company had accrued for the ~~year ended~~full purported unpaid compensation amount of $1,140 as of December 31, ~~2013. The examination was completed~~2020, the Company ultimately paid less in ~~the third quarter~~full and final settlement of ~~2017 and no changes were made to the reported amounts. Accordingly, there was no effect on the financial statements as a result~~its dispute with both of the examination. The Company has not been audited by the international tax authorities or any states in connection with income taxes. The Company’s New York State tax returns have been subject to annual desk reviews which have resulted in insignificant adjustments to the related franchise tax liabilities and credits. The Company’s tax years generally remain open to examination for all federal, state and foreign tax matters until its net operating loss carryforwards are utilized and the applicable statutes of limitation have expired. The federal and state tax authorities can generally reduce a net operating loss (but not create taxable income) for a period outside the statute of limitations in order to determine the correct amount of net operating loss which may be allowed as a deduction against income for a period within the statute of limitations.

Claimants. As a result of the ~~lack of requisite approval by Delcath stockholders~~confidential settlement, the AAA Arbitration was dismissed with prejudice on June 1, 2021.

In April 2021, the Company issued an invoice for €1,000 (which currently converts to approximately $1,160) to medac GmbH, a privately held, multi-national pharmaceutical company based in Germany (“medac”), the Company’s ~~proposed reverse stock split,~~EU product distribution

partner, for a milestone payment due under the License, Supply and Marketing Agreement (the “License Agreement”) dated December 10, 2018, between the Company and medac, pursuant to the License Agreement, a milestone is due upon achieving positive efficacy in the FOCUS trial as defined by the FOCUS trial protocol. Per the trial protocol and associated Statistical Analysis Plan, positive efficacy is based on whether the Objective Response Rate (ORR) exceeds a prespecified threshold. A preliminary analysis of the FOCUS trial data based on 87% of enrolled patients was released on March 31, 2021, and subsequently presented at the American Society of Clinical Oncology (ASCO) Annual Meeting held virtually from the 4^th through the 8^th of June 2021. Per that analysis, the ORR exceeded the prespecified threshold. While the final ORR is not yet known, given the magnitude by which the ORR exceeded the prespecified endpoint and the small number of patients yet to be assessed, the final ORR will be greater than the prespecified endpoint regardless of the responder status of the remaining patients. medac disagrees that the milestone is due and claims that a full clinical study report is required in addition to the existing ORR analysis. medac has not disputed the accuracy of the ORR analysis or underlying data but simply asserts that a full clinical study report is required prior to payment. While the Company disagrees with this interpretation, since medac has stated they do not intend to pay the invoice at this time, under revenue recognition criteria set out in ASC 606 we cannot recognize the revenue in the quarter ending September 30, 2021.

On October 12, 2021, the Company notified medac in writing that it was terminating the License Agreement, with the effective

date of termination of the License Agreement stipulated as April 12, 2022, due to medac’s nonpayment of the FOCUS trial

efficacy milestone. In a letter dated October 27, 2021, medac notified the Company that it disputed the Company’s right to terminate the License Agreement and threatened to claim damages from the Company should it fail to withdraw its notice of termination of the License Agreement. The License Agreement stipulates that disputes between the parties ~~and the two investors in the Notes entered into an amendment~~are to ~~the August restructuring agreement on October 10, 2017 as follows: (i) on the date that~~be handled via

binding arbitration. Communication between the Company ~~effects a reverse split of its common stock, (x)~~and medac is ongoing and at the ~~Company will exchange, pursuant to Section 4(a)(2)~~time of the Securities Act of 1933, as amended, an aggregate principal amount of those notes equal to $279,015 for new warrants to purchase an aggregate of 127,550 shares of Common Stock, and the Company shall redeem all the Series C Preferred Shares then outstanding for a cash payment of $590,000 and (ii) upon the initial consummation, on or prior to December 15, 2017, by the Company of the offering contemplated by the registration statement on Form S-1 that was filed with the SEC on October 11, 2017 the following shall occur: (i) pursuant to Section 3(b) of the Restricted Notes, the Company shall be deemed (as adjusted downward by the Black-Scholes value of the warrants being issued in this offering) to have automatically, and irrevocably, adjusted the conversion price of the Notes to 200% of the purchase price of a share of our common stock in the offering contemplated by the registration statement, (ii) the maturity date (as defined in the notes) shall automatically be extended to the earlier to occur of (x) the first anniversary of the date of consummation of the offering contemplated by the registration statement and (y) December 30, 2018, (iii) until the earlier of (x) this maturity date and (y) the 75^th calendar day after the date of consummation of the offering contemplated by the registration statement, all installments to be made under the notes shall be deemed automatically deferred with no conversions during that 75 day period, (iv) the Company agreed to redeem any portion of the outstanding notes at any time requested by either investor thereto with $7.3 million in cash to be reduced by $0.6 million to redeem the Series C Preferred Stock remaining in the restricted accounts with respect to the 2016 convertible notes and (v) the conversion floor price on the notes is $0.05 and not subject to adjustments.

The exercise price for the warrants issued in conjunction with the amended restructuring agreement is $122.50. The warrants contain a cashless exercise provision pursuant to which the warrants may be exercised for 382,650 shares of the Company’s common stock on or after the 75^th ~~day subsequent to the date of consummation of offering hereunder. On the 136~~^th day subsequent to the date of consummation of the offering hereunder, there shall be a “true up” with regard to the issuance of shares upon exercise such that the difference between 382,650 shares and the number of shares that would be issuable if the exercise price were lowered to the average price per share of the variable weighted average price of our common stock for the five trading days commencing on the date which is 76 days after the date of consummation of the offering hereunder, but not lower than 33% of the variable weighted average price of a share of our common stock on the 81^st ~~date following the date of consummation of the offering hereunder. In lieu of the “true up”, on or before the 135~~^th ~~date following the date of consummation of the offering hereunder, we may buy out that provision for $6,138,349.80.~~

The following discussion and analysis of the ~~Company’s~~ financial condition and results of operations of Delcath Systems, Inc. (“Delcath” or the “Company”) should be read in conjunction with the unaudited interim condensed consolidated financial statements and notes thereto contained in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto ~~as of and~~included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016 included in the Company’s 2016 Annual Report on Form 10-K~~2020 to provide an understanding of its results of operations, financial condition and cash flows.

All references in this Quarterly Report to “we,” “our,” “us” and the “Company” refer to Delcath Systems, Inc., and its subsidiaries unless the context indicates otherwise.

This Quarterly Report on Form 10-Q ~~for the period ended September 30, 2017~~ contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 with respect to our business, financial condition, liquidity, and results of operations. Words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “could,” “would,” “will,” “may,” “can,” “continue,” “potential,” “should,” and the negative of these terms or other comparable terminology often identify forward-looking statements. Statements in this Quarterly Report on Form 10-Q ~~for the period ending September 30, 2017~~ that are not historical facts are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities ~~Act.~~Act of 1933, as amended. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements, including the risks discussed in ~~this Quarterly Report on Form 10-Q for the period ended September 30, 2017 in Part II, Item 1A under “Risk Factors” as well as in Part I,~~ Item 3 “Quantitative and Qualitative Disclosures About Market Risk,” and the risks discussed in our Annual Report on Form 10-K for the ~~period~~fiscal year ended December 31, ~~2016~~2020 in Item 1A under “Risk Factors” ~~as well as~~and in Item 7A “Quantitative and Qualitative Disclosures About Market Risk,” and the risks detailed from time to time in our future ~~SEC reports.~~reports filed with the Securities and Exchange Commission (the “SEC”). These forward-looking statements include, but are not limited to, statements about:

Many of the important factors that will determine these results are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events.

The following section should be read in conjunction with Part I, Item 1: Condensed Consolidated Financial Statements of this ~~report~~Quarterly Report on Form 10-Q as well as Part I, Item 1: Business; and Part II, Item 8: Financial Statements and Supplementary Data of the Company’s ~~2016~~ Annual Report on Form ~~10-K.~~10-K for the fiscal year ended December 31, 2020.

We are an interventional oncology company focused on the treatment of primary and metastatic liver cancers. Our ~~investigational product—Melphalan Hydrochloride~~lead product candidate, the HEPZATO™ KIT (melphalan hydrochloride for ~~Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS) —is~~injection/hepatic delivery system), or HEPZATO™, is a drug/device combination product. HEPZATO is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. HEPZATO has not been approved for sale in the United States. In Europe, our ~~system~~commercial product is ~~in commercial development~~a stand-alone medical device having the same device components as the HEPZATO KIT but without the melphalan hydrochloride and is approved for sale under the trade name ~~Delcath~~CHEMOSAT® Hepatic ~~CHEMOSAT~~^® Delivery System for Melphalan, ~~(CHEMOSAT~~^®),or CHEMOSAT, where it has been used at major medical centers to treat a wide range of cancers of the liver.

Our clinical development program for CHEMOSAT and Melphalan/HDS is comprised of The FOCUS Clinical Trial for Patients with Hepatic Dominant Ocular Melanoma (The FOCUS Trial), a Global Phase 3 clinical trial that is investigating overall survival in mOM, and a registration trial for intrahepatic cholangiocarcinoma (ICC) we plan to initiate in 2017. Our clinical development plan (CDP) also includes a commercial registry for CHEMOSAT non-clinical commercial cases performed in Europe and sponsorship of select investigator initiated trials (IITs) in colorectal cancer metastatic to the liver (mCRC) and pancreatic cancer metastatic to the liver.

The direction and focus of our CDP for CHEMOSAT and Melphalan/HDS is informed by prior clinical development conducted between 2004 and 2010, non-clinical, commercial CHEMOSAT cases performed on patients in Europe, and prior regulatory experience with the FDA. Experience gained from this research, development, early European commercial and United States regulatory activity has led to the implementation of several safety improvements to our product and the associated medical procedure.

In the United States, ~~Melphalan/HDS~~HEPZATO is ~~considered~~regulated as a combination drug and device ~~product, and is regulated as a drug~~ by the ~~FDA.~~United States Food and Drug Administration (FDA). Primary jurisdiction for regulation of HEPZATO has been assigned to the FDA’s Center for Drug Evaluation and Research. The FDA has granted ~~us six~~the active moiety melphalan hydrochloride five orphan drug designations ~~including three orphan designations for the use of the drug melphalan~~ for the treatment of patients with ~~mOM, HCC~~ocular (uveal) melanoma, cutaneous melanoma, hepatocellular carcinoma, intrahepatic cholangiocarcinoma, and ~~ICC. Melphalan/HDS~~neuroendocrine tumors. The FDA has ~~not been approved~~granted the active moiety doxorubicin one orphan drug designation for ~~sale in~~ the ~~United States.~~

treatment of patients with hepatocellular carcinoma. In Europe, ~~the current version of our~~ CHEMOSAT ~~product~~ is regulated as a Class IIb medical device and received its CE Mark in 2012. We are ~~in an early phase of~~ commercializing ~~the~~ CHEMOSAT ~~system~~ in select markets in the United Kingdom and the European Union, ~~(EU)~~or the EU, where we believe the prospect of securing ~~adequate reimbursement for the procedure is strongest. In 2015 national~~ reimbursement coverage for the use of CHEMOSAT procedures was awarded in Germany. In 2016, coverage levels were negotiated between hospitals in Germany and regional sickness funds. Coverage levels determined via this process are expected to be renegotiated annually.is strongest.

Currently there are few effective treatment options for certain cancers in the liver. Traditional treatment options include surgery, chemotherapy, liver transplant, radiation therapy, interventional radiology techniques, and isolated hepatic perfusion. We believe that CHEMOSAT and Melphalan/HDS represents a potentially important advancement in regional therapy for primary liver cancer and certain other cancers metastatic to the liver. We believe that CHEMOSAT and Melphalan/HDS is uniquely positioned to treat the entire liver either as a standalone therapy or as a complement to other therapies.

~~Cancers of the liver remain a major unmet medical need globally. According to the American Cancer Society’s (ACS)~~ ~~Cancer Facts & Figures 2017~~ ~~report, cancer~~Our most advanced development program is the ~~second leading cause~~treatment of death in the United States, with an estimated 600,920 deaths and 1,688,780 new cases expected to be diagnosed in 2017. Cancer is one of the leading causes of death worldwide, accounting for approximately 8.2 million deaths and 14.1 million new cases in 2012 according to GLOBOCAN. The financial burden of cancer is enormous for patients, their families and society. The Agency for Healthcare Quality and Research estimates that the direct medical costs (total of all healthcare expenditures) for cancer in the U.S. in 2014 was $87.8 billion. The liver is often the life-limiting organ for cancer patients and one of the leading causes of cancer death. Patient prognosis is generally poor once cancer has spread to the liver.

There are two types of liver cancers: primary liver cancer and metastatic liver disease. Primary liver cancer (hepatocellular carcinoma or HCC, including intrahepatic bile duct cancers or ICC) originates in the liver or biliary tissue and is particularly prevalent in populations where the primary risk factors for the disease, such as hepatitis-B, hepatitis-C, high levels of alcohol consumption, aflatoxin, cigarette smoking and exposure to industrial pollutants, are present. Metastatic liver disease, also called liver metastasis, or secondary liver cancer, is characterized by microscopic cancer cell clusters that detach from the primary site of disease and travel via the blood stream and lymphatic system into the liver, where they grow into new tumors. These metastases often continue to grow even after the primary cancer in another part of the body has been removed. Given the vital biological functions of the liver, including processing nutrients from food and filtering toxins from the blood, it is not uncommon for metastases to settle in the liver. In many cases patients die not as a result of their primary cancer, but from the tumors that metastasize to their liver. In the United States, metastatic liver disease is more prevalent than primary liver cancer.

Ocular melanoma is one of the cancer histologies with a high likelihood of metastasizing to the liver. Based on third party research conducted in 2016, we estimate that up to 4,700 cases of ocular melanoma are diagnosed in the United States and Europe annually, and that approximately 55% of these patients will develop metastatic disease. Of metastatic cases of ocular melanoma, we estimate that approximately 90% of patients will develop liver involvement. Once ocular melanoma has spread to the liver, current evidence suggests median overall survival for these patients is generally six to eight months. Currently there is no standard of care (SOC) for patients with ocular melanoma liver metastases. According to our 2016 research, we estimate that approximately 2,000 patients with ocular melanoma liver metastases, ~~in the United States and Europe may be eligible for treatment with the Melphalan/HDS.~~

~~Hepatobiliary cancers – including HCC and ICC – are among the most prevalent and lethal forms~~or mOM, a type of cancer. According to GLOBOCAN, an estimated 78,500 new cases of primary liver cancers are diagnosed in the United States and Europe annually. According to the ACS, approximately 40,710 new cases of HCC and ICC will be diagnosed in the United States in 2017. Approximately 75-90% of these patients are diagnosed with HCC. Excluding patients who are eligible for surgical resection or certain focal treatments, we estimate that approximately 15,000 patients with HCC in the United States and Europe may be eligible for treatment with Melphalan/HDS. We estimate that an additional 9,300 patients diagnosed with ICC may also be eligible for treatment with Melphalan/HDS. According to the ACS, the overall five-year survival rate formetastatic liver cancer, ~~patients in the United States~~with HEPZATO. HEPZATO is approximately 18%. For patient diagnosed with a localized stage of disease, the ACS estimates 5-year survival at 31%. The ACS estimates that 5-year survival for all cancers is 68%. Globally, with 782,000 new cases in 2012, HCC was the fifth most common cancer in men and the ninth in women according to GLOBOCAN. GLOBOCAN estimates indicate that HCC was responsible for 746,000 deaths in 2012 (9.1% of the total cancer deaths), making it the second most common cause of death from cancer worldwide.

~~The prognosis for primary liver cancer is very poor, as indicated by an overall ratio of mortality to incidence of 0.95. The American Cancer Society’s~~ ~~Cancer Facts & Figures 2017~~ outlines the treatment options for HCC as follows: “Early stage liver cancer can sometimes be successfully treated with surgery to remove part of the liver (partial hepatectomy); however, few patients have sufficient healthy liver tissue for this option. Liver transplantation may be possible in individuals with small tumors who are not candidates for partial hepatectomy. Other treatment options include tumor ablation (destruction) or embolization (blocking blood flow). Few options exist for patients diagnosed at an advanced stage. Sorafenib (Nexavar^®~~) is a targeted drug approved for the treatment of HCC in patients who are not candidates for surgery and do not have severe cirrhosis.”~~

Based on third party research, we estimate that up to 15,000 of the 65,000 patients diagnosed annually in the United States and Europe could be eligible candidates for treatment with the Melphalan/HDS. The FDA has granted orphan drug status to the Melphalan/HDS for treatment of patients with unresectable HCC. We believe that there is a large unmet medical need in first line therapy for patients with HCC, with Sorafenib the only currently approved systemic therapy in the United States, Europe and certain Asian markets.

ICC is the second most common primary liver tumor and accounts for 3% of all gastrointestinal cancers and 15% of HCC cases diagnosed in the United States and Europe annually. Outside of resection, which is the only cure for ICC, there is currently no standard of care. Based on third party research, we believe that 90% of ICC patients are not candidates for surgical resection, and that approximately 20-30% of these may be candidates for certain focal interventions. We estimate that approximately 9,300 ICC patients in the United States and Europe annually could be candidates for treatment with Melphalan/HDS, which we believe represents a significant market opportunity.

CHEMOSAT and Melphalan/HDS administer concentrated regional chemotherapy to the liver. This “whole organ” therapy is performed by isolating the circulatory system of the liver, infusing the liver with chemotherapeutic agent, and then filtering the blood prior to returning it to the patient. During the procedure, known as percutaneous hepatic perfusion (PHP^® therapy), three catheters are placed percutaneously through standard interventional radiology techniques. The catheters temporarily isolate the liver from the body’s circulatory system, allow administration of the chemotherapeutic agent melphalan hydrochloride directly to the liver, and collect blood exiting the liver for filtration by our proprietary filters. The filters absorb chemotherapeutic agent in the blood, thereby reducing systemic exposure to the drug and related toxic side effects, before the filtered blood is returned to the patient’s circulatory system.

PHP therapy is performed in an interventional radiology suite in approximately two to three hours. Patients remain in an intensive care or step-down unit overnight for observation following the procedure. Treatment with CHEMOSAT and Melphalan/HDS is repeatable, and a new disposable CHEMOSAT and Melphalan/HDS is used for each treatment. Patients treated in clinical settings are permitted up to six treatments. In non-clinical commercial settings patients have received up to~~eight~~treatments. In the United States, melphalan hydrochloride for injection will be included with the system. In Europe, the system is sold separately and used in conjunction with melphalan hydrochloride commercially available from a third party. In our clinical trials, melphalan hydrochloride for injection is provided to both European and United States clinical trial sites.

As with many cancer therapies, treatment with CHEMOSAT and Melphalan/HDS is associated with toxic side effects and certain risks, some of which are potentially life threatening. An integrated safety population comprised of patients treated during our prior clinical development using early versions of the Melphalan/HDS showed these risks to include grade 3 or 4 bone marrow suppression and febrile neutropenia, as well as risks of hepatic injury, severe hemorrhage, gastrointestinal perforation, stroke, and myocardial infarction in the setting of an incomplete cardiac risk assessment. Deaths due to certain adverse reactions within this integrated safety population were not observed to occur again during the clinical trials following the adoption of related protocol amendments.

The trials that comprised this integrated safety population used early versions of the device and procedure. As a consequence of these identified risks and experience gained in non-clinical, commercial usage in Europe, we have continued to develop and refine both the CHEMOSAT and Melphalan/HDS and the PHP procedure. The procedure refinements have included modifications to the pre, peri and post procedure patient management and monitoring, as well as the use of the following: prophylactic administration of proton pump inhibitors, prophylactic platelet transfusions, prophylactic hydration at key pre-treatment intervals, use of vasopressor agents coupled with continuous monitoring for maintenance of blood pressure and prophylactic administration of growth factors to reduce risk of serious myelosuppression. In addition, in 2012 we introduced the Generation Two version of the CHEMOSAT system, which offered improved hemofiltration and other product enhancements.

Reports from treating physicians in both Europe and the United States using the Generation Two CHEMOSAT and Melphalan/HDS in a non-clinical, commercial setting have suggested that these product improvements and procedure refinements have improved the safety profile. In 2016, physicians in Europe and the United States also presented the results of research that signaled an improved safety profile as well as efficacy in multiple tumor types at several major medical conferences.

In February 2010, we concluded a randomized Phase 3 multi-center study for patients with unresectable metastatic ocular or cutaneous melanoma exclusively or predominantly in the liver. In the trial, patients were randomly assigned to receive PHP treatments with melphalan using the Melphalan/HDS, or to a control group providing best alternative care (BAC). Patients assigned to the PHP arm were eligible to receive up to six cycles of treatment at approximately four to eight week intervals. Patients randomized to the BAC arm were permitted to cross-over into the PHP arm at radiographic documentation of hepatic disease progression. A majority of the BAC patients did in fact cross over to the PHP arm. Secondary objectives of the study were to determine the response rate, safety, tolerability and overall survival.

On April 21, 2010, we announced that our randomized Phase 3 clinical trial of PHP with melphalan using Melphalan/HDS for patients with unresectable metastatic ocular and cutaneous melanoma in the liver had successfully achieved the study’s primary endpoint of extended hepatic progression-free survival (hPFS). An updated summary of the results was presented at the European Multidisciplinary Cancer Congress organized by the European Cancer Organization and the European Society of Medical Oncology in September 2011. Data submitted in October 2012 to the FDA in Delcath’s New Drug Application (NDA) comparing treatment with the PHP with melphalan (the treatment group) to BAC (the control group), showed that patients in the PHP arm had a statistically significant longer median hPFS of 7.0 months compared to 1.7 months in the BAC control group, according to the Independent Review Committee (IRC) assessment. This reflects a 4-fold increase of hPFS over that of the BAC arm, with 50% reduction in the risk of progression and/or death in the PHP treatment arm compared to the BAC control arm. Results of this study were published in Annals of Surgical Oncology, a prestigious medical journal in December 2015.

Also in 2010, we concluded a separate multi-arm Phase 2 clinical trial of PHP with melphalan using an early version of the Melphalan/HDS in patients with primary and metastatic liver cancers, stratified into four arms: neuroendocrine tumors (carcinoid and pancreatic islet cell tumors), ocular or cutaneous melanoma, metastatic colorectal adenocarcinoma (mCRC), and HCC. In the metastatic neuroendocrine (mNET) cohort (n=24), the objective tumor response rate was 42%, with 66% of patients achieving hepatic tumor shrinkage and durable disease stabilization. In the mCRC cohort, there was inconclusive efficacy possibly due to advanced disease status of the patients. Similar safety profiles were seen across all tumor typesbeing studied in the ~~trial.~~

~~In the HCC cohort (n=8) of our Phase 2 Multi-Histology trial,~~for Patients with Hepatic Dominant Ocular Melanoma (FOCUS Trial), a positive signal in hepatic malignancies was observed in 5 patients. Among these patients, one patient received four treatments, achieved a partial response lasting 12.22 months, and survived 20.47 months. Three other patients with stable disease received 3-4 treatments, with hPFS ranging 3.45 to 8.15 months, and overall survival (OS) ranging 5.26 to 19.88 months. There was no evidence of extrahepatic disease progression. The observed duration of hPFS and OS in this limited number of patients exceeded that generally associated with this patient population. We believe these results constitute a promising signal that warrants further clinical investigation.

Based on the results from our prior clinical development in August 2012, we submitted an NDA under Section 505(b)(2) of the Federal Food Drug Cosmetic Act (FFDCA) seeking an indication for the percutaneous intra-arterial administration of melphalan for use in the treatment of patients with metastatic melanoma in the liver, and subsequently amended the indication to ocular melanoma metastatic to the liver. Data submitted to the Food and Drug Administration (FDA) used the earlyglobal registration clinical trial versions of the system along with early clinical procedure techniques. Our NDA was accepted for filing by the FDA on October 15, 2012, and was designated for standard review with an initial Prescription Drug User Fee Act (PDUFA) goal date of June 15, 2013. On April 3, 2013, the FDA extended its PDUFA goal date to September 13, 2013.

~~On May 2, 2013 we announced~~ that an ~~Oncologic Drug Advisory Committee~~ (ODAC) panel convened by the FDA voted 16 to 0, with no abstentions, that the benefits of treatment with the early version of Melphalan/HDS did not outweigh the risks associated with the procedure. A significant portion of FDA’s presentation to the ODAC panel was focused on the FDA’s assessment of treatment related risks, including the analysis of treatment-related deaths that occurred during clinical trials. The FDA also expressed concerns about hypotension (low blood pressure) during the procedure, length of hospital stay, as well as risks of stroke, heart attack, renal failure, and bone marrow suppression. We believe that the protocol amendments and other procedure refinements instituted during clinical trials and subsequently in commercial, non-clinical usage in Europe, including changes to the way blood pressure is ~~managed and monitored, may help address these procedure related risks. Collection of adequate safety data on all aspects of the procedure is a major focus of the clinical trials in our current CDP.~~

~~Briefing materials presented to the 2013 ODAC panel by both the FDA and Delcath are available on our website at http://delcath.com/clinical-bibliography.~~

In September 2013 the FDA issued a complete response letter (CRL) in response to our NDA. The FDA issues a CRL after the review of a file has been completed and questions remain that preclude approval of the NDA in its current form. The FDA comments included, but were not limited to, a statement that Delcath must perform another "well-controlled randomized trial(s) to establish the safety and efficacy of Melphalan/HDS using overall survival as the primary efficacy outcome measure," and which "demonstrates that the clinical benefits of Melphalan/HDS outweigh its risks." The FDA also required that the additional clinical trial(s) be conducted using the product the Company intends to market, and that certain clinical, clinical pharmacology, human factors and product quality elements of the CRL be addressed.

In January 2016, we announced the conclusion of a SPA with the FDA on the design of a new Phase 3 clinical trial of Melphalan/HDS to treat patients with hepatic dominant ocular melanoma. This SPA provides agreement that our new Phase 3 trial design adequately addresses objectives that, if met, would support the submission for regulatory approval of Melphalan/HDS. However, final determinations for marketing application approval are made by FDA after a complete review of a marketing application and are based on the entire data in the application. The SPA agreement also represents the satisfactory resolution of a substantial number of the FDA’s CRL non-clinical trial related requirements in that without these successful resolutions, the SPA request would not have been permitted to be filed.

The focus of our current CDP is to generate clinical data for the CHEMOSAT and Melphalan/HDS in various disease states and validate the safety profile of the current version of the product and treatment procedure. We believe that the improvements we have made to CHEMOSAT and Melphalan/HDS and to the PHP procedure have addressed the severe toxicity and procedure-related risks observed during the previous Phase 2 and 3 clinical trials. The CDP is also designed to support clinical adoption of and reimbursement for CHEMOSAT in Europe, and to support regulatory approvals in various jurisdictions, including the United States.

In January 2016, we initiated a new pivotal Phase 3 clinical trial in hepatic dominant ocular melanoma with the first patient enrolled in February 2016 looking at overall survival of patients (length of time from treatment to death). Called the FOCUS Trial, this new global Phase 3 trial will evaluate the safety, efficacy and pharmacokinetic profile of Melphalan/HDS versus best alternative care in 240 patients with hepatic dominant OM. The primary endpoint is a comparison of overall survival between the two study arms. Secondary and exploratory endpoints include progression-free survival, overallinvestigating objective response rate and Quality of Life (QoL) measures. In the FOCUS trial's treatment phase, patients randomized to the Melphalan/HDS arm will receive up to six treatments at intervals of six to eight weeks for up to 12 months. Tumor response will be assessed in both study arms every 12 weeks until evidence of hepatic disease progression. For patients progressing to the follow-up phase, disease assessment scans will continue every 12 weeks for up to two years.

mOM. The FOCUS Trial is being conducted at ~~leading cancer centers~~approximately 30 sites in the United States and Europe. The Moffitt Cancer Center in Tampa, Florida was activated as a participating center in January 2016 with Jonathan Zager, M.D., FACS, Professor of Surgery in the Cutaneous Oncology and Sarcoma Departments and a Senior Member at Moffitt Cancer Center, serving as the trial's lead investigator. In October 2016 we announced the addition of several prestigious cancer centers in the United States and Europe. We intend to include approximately 40 leading cancer centers in the United States and Europe in the FOCUS Trial.

~~The~~ FOCUS Trial ~~is being conducted under a SPA we concluded~~initiated treatment on the final enrolled patient on October 2, 2020, with the ~~FDA in January 2016. Under~~last patient on the ~~terms~~study having been treated on May 18, 2021. The primary endpoint of ~~the SPA,~~ the FOCUS Trial is Objective Response Rate (ORR) as measured by RECISTv1.1, in the ~~only~~Intent to Treat (ITT) population. The single arm trial was powered to demonstrate a superior ORR versus checkpoint inhibitors, one of the few mOM treatment categories with a significant amount of peer reviewed publications. The checkpoint inhibitor ORR was calculated based on a meta-analysis covering 16 different publications which included 476 patients. The pooled overall response rate was 5.5% [95% CI: 3.6, 8.3]. To achieve statistical significance at a 95% Confidence Interval the lower bound of the ORR for HEPZATO is required to exceed the 8.3% upper bound of the meta-analysis. Secondary endpoints include Duration of Response (DOR), Disease Control Rate (DCR), Overall Survival (OS), and Progression-Free Survival (PFS). Additional exploratory outcome measures include time to objective response, hepatic progression-free survival, hepatic objective response, and quality of life, safety, and other pharmacokinetic measures. Initially, the trial was a randomized controlled trial which was amended to a single arm trial given slow enrollment due to the rarity of ocular melanoma, absence of crossover to the experimental trial arm, competing clinical trials and the commercial availability of CHEMOSAT in Europe. Included in the prespecified analyses are comparisons against the Best Alternative Care (BAC) arm which enrolled 32 patients prior to the amendment to a single-arm trial.

On March 31, 2021, Delcath released a preliminary analysis of the FOCUS trial data based on 87% of enrolled patients using prespecified analyses. An Independent Review Committee assessed an ORR of 29.2% [95% CI: 20.1, 39.8] in the ITT population, the lower bound of which exceeded the upper bound of the predefined success criterion (8.3%) for the primary ORR endpoint. Given the large difference between the predefined success criteria and the interim results, the ORR on the full ITT population will exceed the predefined success criterion regardless of the response status of the small number of patients still to be analyzed.

In the per protocol populations, evaluable patients in the HEPZATO arm had a statistically significant improvement over BAC in prespecified endpoints including: ORR of 32.9% [95% CI: 22.8, 44.4] versus 13.8% [CI: 3.9, 31.7] for the BAC arm (Chi-square P<0.05), Median PFS of 9.0 months [95% CI: 6.2, 11.8] versus 3.1 months [95% CI: 2.7, 5.7] for the BAC arm (HR=0.41 p<0.001), and DCR of 70.9% [95% CI: 59.6, 80.6] versus 37.9% [95% CI: 20.7, 57.7] for the BAC arm (p<0.002). In this preliminary analysis, DOR and OS were not yet evaluable. Since not all patients were evaluable for all time points, these preliminary analyses may change as data matures.

In the HEPZATO safety population of 94 patients, 38 patients (40.4%) experienced a treatment-emergent serious adverse event. The most commonly reported treatment-emergent serious adverse events were thrombocytopenia (14.9% of patients), neutropenia (10.6% of patients), and leukopenia (4.2% of patients), which were well-manageable. 5% of patients experienced treatment-emergent serious cardiac adverse events. In all cases the events resolved with no ongoing complications. There were no treatment-related deaths in the trial.

We have paused a global Phase 3 clinical trial ~~required for submission~~ of ~~an NDA. However, final determinations for marketing application approval are made by FDA after a complete review of a marketing application and are based on~~HEPZATO investigating the ~~entire data in the application.~~

~~There currently is no SOC for the treatment of hepatic dominant ocular melanoma. The Melphalan/HDS has been granted orphan drug status by FDA for~~ treatment of patients with ocular melanoma. Based on the strength of the efficacy data in this disease observed in our prior Phase 3 clinical trial and the reports of an improved safety profile observed in non-clinical trial experience in Europe, we are confident that this program can address the concerns raised by the FDA in its CRL. We believe that ocular melanoma liver metastases represent a significant unmet medical need, and that pursuit of an indication in this disease state represents the fastest path to potential approval of the Melphalan/HDS in the United States.

~~Percutaneous Hepatic Perfusion (PHP) vs. Cisplatin/Gemcitabine in Patients with Intrahepatic Cholangiocarcinoma~~ - ~~NCT03086993~~

~~In March 2017 we announced another SPA agreement with the FDA for the design of a new pivotal trial of Melphalan/HDS to treat patients with~~ intrahepatic cholangiocarcinoma, ~~(ICC) titled~~ ~~A Randomized, Controlled Study~~(the ALIGN Trial) due to ~~Compare the Efficacy, Safety and Pharmacokinetics of Melphalan/HDS Treatment Given Sequentially Following Cisplatin/Gemcitabine versus Cisplatin/Gemcitabine (Standard of Care)~~difficulties in ~~Patients with Intrahepatic Cholangiocarcinoma (Pivotal ICC Trial)~~. Under the SPA, the Pivotal ICC Trial will enroll approximately 295 ICC patients at approximately 40 clinical sites in the U.S. and Europe. The primary endpoint is overall survival (OS) and secondary and exploratory endpoints include safety, progression-free survival (PFS), overall response rate (ORR) and quality-of-life measures. This Pivotal ICC Trial is designedenrollment. In addition to be cost effective and pursued in a financially prudent manner when financial resources permit. The SPA agreement for this trial indicates that the pivotal trial design adequately addresses objectives that, if met, would support regulatory requirements for approval of Melphalan/HDS in ICC. However, final determinations for marketing application approval are made by FDA after a complete review of a marketing application and are based on the entire data in the application.

~~Phase 2 Hepatocellular Carcinoma (HCC) & Intrahepatic Cholangiocarcinoma (ICC) Program~~

In 2014 we initiated a Phase 2 clinical trial program in Europe and the United States, with the goal of obtaining an efficacy and safety signal for Melphalan/HDS in the treatment of HCC and ICC. Due to differences in treatment practice patterns between Europe and the United States, we established separate European and United States trial protocols for the HCC Phase 2 program with different inclusion and exclusion patient selection criteria:

~~Protocol 201~~ ~~NCT02406508~~ – Conducted in the United States, this trial is intended to assess the safety and efficacy of Melphalan/HDS followed by sorafenib. The trial will evaluate overall response rate via modified Response Evaluation Criteria in Solid Tumors (mRECIST), progression free survival, characterize the systemic exposure of melphalan and assess patient quality of life. This trial is now closed to enrollment.

~~Protocol~~ ~~202~~ ~~NCT02415036~~– Conducted in Europe, this trial is intended to assess the safety and efficacy of Melphalan/HDS without sorafenib. The trial will also evaluate overall response rate via mRECIST criteria, progression free survival, characterize the systemic exposure of melphalan and assess patient quality of life. This trial is now closed to enrollment.

~~ICC Cohort~~ ~~– In 2015 we expanded~~ ~~Protocol 202~~ to include a cohort of patients with ICC. The trial for this cohort is being conducted at the same centers participating in the Phase 2 HCC trial. This trial has completed enrollment and data collection for the ICC cohort is ongoing. We will announce results for this cohort once the data are fully mature.

~~ICC Retrospective Data Collection~~ - The original goal to obtain an efficacy signal for the Phase 2 ICC cohort has been satisfied by the result of multicenter patient outcomes identified in the retrospective data collection of our commercial ICC cases conducted by our European investigators. These promising outcomes and observations were discussed with Key Opinion Leaders (KOL) at a Delcath-organized medical advisory panel meeting and led to the agreement that PHP^® therapy does, indeed, "demonstrate an efficacy signal in ICC and is worthy of full clinical investigation." Data from this retrospective data collection provided important scientific support during our negotiations with the FDA for our SPA for the Pivotal ICC Trial. Data for the retrospective data collection are being submitted for publication by the European investigators, and details of these findings will be announced when publicly available.

With the objectives of identifying an efficacy signal worthy of further clinical investigation now met, we have terminated enrollment in our Phase 2 program and will close the Phase 2 trials in order to focus available resources on the FOCUS Trial and the ~~ICC Pivotal trial.~~ALIGN Trial, our commercial development plan also includes a registry for CHEMOSAT cases performed in Europe and support of select investigator-initiated trials, or IITs.

~~Clinical trials~~We are ~~long, expensive~~currently reviewing the incidence, unmet need, available efficacy data and ~~highly uncertain processes~~development requirements for a broad set of liver cancers in order to select a portfolio of indications which will maximize the value of the HEPZATO platform. This may result in a restart of the ALIGN Trial. We believe that the disease states we are investigating and ~~failure~~intend to investigate are unmet medical needs that represent significant market opportunities.

A substantial portion of the Company’s operating expenses consist of research and development expenses incurred in connection with its clinical trials. See the Company’s Consolidated Financial included in Item 8 ofmonitor data caused our ~~Annual Report on Form 10-K~~announcement for the ~~year ended December 31, 2016, filed with~~top-line data from our FOCUS Trial to shift to early 2021 and to be modified to a preliminary analysis. We intend to submit a New Drug Application (NDA) to the ~~SEC~~FDA in the first quarter of 2022 for the treatment of mOM once the FOCUS Trial has been completed. The ability to achieve this goal is contingent on ~~March 29, 2017.~~

~~In addition~~our ability to monitor data at our clinical sites and therefore the timeline may shift as access to the clinical ~~trials~~sites changes in response to the rapidly evolving situation. COVID-19 has caused us to experience an increase in volatility in EU commercial product revenue. The results of the FOCUS Trial should also support securing reimbursement coverage for the use of CHEMOSAT in Europe. Additional impacts of COVID-19 on our ~~CDP,~~business may arise that we are ~~supporting data generation in other areas. We are currently conducting one Investigator Initiated Trial (IITs) in colorectal carcinoma metastatic~~not aware of currently. The ultimate impact of the pandemic on the Company’s results of operations, financial position, liquidity, or capital resources cannot be reasonably estimated at this time.

The European Commission recently reviewed the ~~liver (mCRC) at Leiden University~~ Medical ~~Center in~~Device Directive legislative framework and promulgated REGULATION (EU) 2017/745 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 5 April 2017 on medical devices, amending Directive 2001/83/EC, Regulation EC) No 178/2002 and Regulation (EC) No 1223/2009 and repealing Council Directives 90/385/EEC and 93/42/EEC. This new Medical Device Regulation became effective on May 25, 2017, marking the ~~Netherlands. We are planning two additional IITs – one~~start of a 3-year transition period for colorectal carcinoma metastatic to the liver at Heidelberg University in Heidelberg, Germany and one for pancreatic carcinoma metastatic to the liver at Spire Hospital in Southampton, England. We continue to evaluate other IITs as suitable opportunities present in Europe. We believe IITs will serve to build clinical experience at key cancer centers, and will help support efforts to obtain full reimbursement in Europe.

~~On April 2, 2015, we announced the activation of our prospective patient registry~~manufacturers selling medical devices in Europe to collect uniform essential patient safety, efficacy, and QoL information using observational study methods. This registry will gather data in multiple tumor types from commercial cases performed by participating cancer centers in Europe. A prospective registry is an organized system that uses observational study methods to collect defined clinical data under normal conditions of use to evaluate specified outcomes for a population defined by a particular disease, condition, or exposure. Registry data is non-randomized, and as such cannot be used for either registration approval, promotional or competitive claims. However, we believe the patient registry will provide a valuable data

repository from a commercial setting that can be used to identify further clinical development opportunities, support clinical adoption and reimbursement in Europe. Cancer centers in Germany, the United Kingdom, and the Netherlands are participating in the registry and patient enrollment has begun.

In September 2017 we announced that results of a single institution study were presented at the Cardiology and Interventional Radiology of Europe (CIRSE) annual meeting, held in Copenhagen, Denmark on September 16-20, 2017.

~~The study~~, ~~Prospective Clinical and Pharmacological Evaluation of the Delcath System’s Second Generation (GEN2) Hemofiltration System in Patients Undergoing Percutaneous Hepatic Perfusion (PHP) with Melphalan~~, was conducted by a team at the Leiden University Medical Center (LUMC) in Leiden, The Netherlands and presented by T.S. Meijer, MD. The study prospectively evaluated filtration efficiency and hematologic side effects in seven patients who received a total of ten PHP procedurescomply with the GEN2 CHEMOSAT system. Pharmacokinetic sampling was conducted at several points during the PHP procedure, and filtration efficiency was calculated at several discrete points. Blood tests were conducted following each procedure to determine hematologic side effect Grade Levels until the blood values normalized.

Results of the study showed the GEN2 CHEMOSAT system had an overall efficiency of 86%, with efficiency highest at the time of highest concentration of melphalan in the blood and declining as melphalan blood concentration declined. Peak efficiency was 95.4% in samples taken after 10 minutes of filtration, 85.9% at the end of the drug infusion period, and 77.5% at the end of the saline washout period. Researchers noted these results were superior to and more consistent than prior experience published with the first generation CHEMOSAT system. Hematologic side effects were mainly Grade 1 and 2 with some Grade 3 and 4 side effects emerging post-procedure, including 40% of treatment cycles showing Grade 4 thrombocytopenia, 80% showing Grade 3 or 4 leucopenia, and 70% showing lymphocytopenia. All patients were asymptomatic and all lab results normalized in three weeks. Other adverse events were managed, and there was no mortality, no severe bleeding complications, and no hypotensive cardiac or cerebral events. Researchers concluded that the GEN2 CHEMOSAT system appears to have higher melphalan filter efficiency, more consistent performance, and appears safe but needs further validation.

~~In July 2017, the~~ ~~Journal of Cancer Research and Clinical Oncology~~ published an analysis of clinical findings from 29 Hannover Medical School patients who were treated with percutaneous hepatic perfusion (PHP®) therapy with Melphalan/HDS as last-line therapy for primary and secondary liver tumors. Hannover Medical School physicians treated 29 patients with a total of 54 PHP procedures. Patients received as many as five treatments each, with an average of two per patient. Nineteen patients were diagnosed with unresectable liver metastases that arose from solid tumors, including 11 cases of ocular melanoma, and the remaining 10 patients had hepatocellular or cholangiocarcinoma.

Across all patients, the overall response rate (ORR) was 19.2 percent, with ocular melanoma patients experiencing the highest ORR (33.3 percent). As has been published previously, high tumor volumes negatively impact overall survival (OS). Median OS was 261 days for the entire patient group. Two patients with cholangiocarcinoma and one patient with ocular melanoma had the longest survival with 566, 465, and 477 days respectively. Overall, PHP with Melphalan/HDS was well tolerated. Complications including thrombocytopenia, cardiovascular events, ulcerous bleeding, and edema were reported. These results are summarized in the Journal of Cancer Research and Clinical Oncology article, “~~Safety and Efficacy of Chemosaturation in Patients with Primary and Secondary Liver Tumors.”~~

~~In February 2017, we announced that the~~ ~~American Journal of Clinical Oncology~~ published a single-center retrospective review, in which authors found that investigational PHP with Melphalan/HDS offers promising results with a doubling of overall survival and significantly longer progression-free survival (PFS) and hPFS than other targeted therapies. The review, ~~“Hepatic Progression-free and Overall Survival After Regional Therapy to the Liver for Metastatic Melanoma,”~~ was written by a team from the Moffitt Cancer Center who analyzed clinical outcomes of three different non-randomized approaches used to treat 30 patients with liver metastases primarily resulting from ocular melanoma and skin melanoma. A third of the patients received PHP using melphalan delivered via the Delcath Hepatic Delivery System (Melphalan/HDS), 12 received chemoembolization (CE) and six received radioembolization with yttrium-90 (Y90). Two patients crossed over once their cancer progressed – one from PHP to Y90 and one from CE to PHP.

The paper’s authors concluded that patients who received PHP with Melphalan/HDS had significantly longer median hPFS at 361 days compared to 54 days for Y90 and 80 days for CE, as well as a longer median PFS at 245 days compared to 54 days for Y90 and 52 days for CE. Median overall survival was also longest for PHP at 608 days compared to 295 days for Y90 and 265 days for CE. The authors noted that further studies, including a randomized controlled trial, would be needed to confirm whether clinically superior outcomes can be achieved with PHP compared to other liver-targeted treatments.

Side effects following all treatments were similar, with most complications recorded as anorexia, abdominal pain, fatigue and nausea. Laboratory irregularities, such as thrombocytopenia and abnormal liver function tests, were seen immediately after treatment in some patients, but returned to baseline within a few days.

~~Also in February 2017, we announced results of a retrospective, multicenter study presented at the~~ ~~Regional Cancer Therapies 12th International Symposium~~ ~~in an oral presentation titled, "Percutaneous Hepatic Perfusion for Unresectable Metastatic Ocular Melanoma to the Liver: A Multi-Institutional Report of Outcomes~~." This analysis demonstrated that 45.7 percent of patients with ocular melanoma that metastasized to the liver who underwent PHP using Melphalan/HDS experienced a complete or partial response. The study further showed that among those who responded to treatment, overall survival was projected to be more than three years. The analysis was conducted by teams from Moffitt Cancer Center in Tampa, Fla., and the University of Southampton in the United Kingdom. The presentation was led by Dr. Alexandra Gangi of the Moffitt Cancer Center.

The analysis reviewed outcomes of 49 patients treated between 2008 and 2016 with Melphalan/HDS at either the Moffitt Cancer Center or the University of Southampton. Patients underwent a total of 115 PHP treatments. The median number of treatments per patient was two, with patients receiving one-to-six treatments.

Hepatic response to PHP was evaluable in 46 patients, among whom 45.7 percent showed complete or partial response, and 37.0 percent had stable disease. Median overall survival was not reached, but was projected to be 657 days (1.8 years). Among patients with a complete or partial response, overall survival was projected to be 1,207 days. Most common side effects following treatment were anemia, thrombocytopenia and neutropenia.

Our market access and clinical adoptions efforts are focused on the key target markets of Germany, United Kingdom and the Netherlands, which represent a majority of the total potential liver cancer market (primary and metastatic) in the EU and where progress in securing reimbursement for CHEMOSAT treatments offers the best near-term opportunities. We also continue to support clinical adoption of CHEMOSAT in Spain, France and Italy. We employ a combination of direct and indirect sales channels to market and sell CHEMOSAT in these markets. Our European Headquarters is in Galway, Ireland.

Since launching CHEMOSAT in Europe, over 500 treatments have been performed at over 25 leading European cancer centers. Physicians in Europe have used CHEMOSAT to treat patients with a variety of cancers in the liver, primarily ocular melanoma liver metastases, and other tumor types, including cutaneous melanoma, hepatocellular carcinoma, cholangiocarcinoma, and liver metastases from colorectal cancer, breast, pancreatic and neuroendocrine. In 2017, SPIRE Southampton Hospital in the U.K. and the Medical University of Hannover in Germany each surpassed 100 treatments with CHEMOSAT since initiating procedures. In 2017, we announced our first patient to receive eight CHEMOSAT treatments, and have seen the average number of repeat treatments performed on a per patient basis consistently increase.

~~A critical driver of utilization growth for CHEMOSAT in Europe is the expansion of reimbursement mechanisms for the procedure in our priority markets. In Europe, there is no centralized pan-European~~new medical device ~~reimbursement body. Reimbursement~~regulation, or MDR, which governs all facets of medical devices. The transition task is ~~administered on a regional~~highly complex and ~~national basis. Medical devices are typically reimbursed under Diagnosis Related Groups (DRG) as part~~touches every aspect of a procedure. Prior to obtaining permanent DRG reimbursement codes, in certain jurisdictions, the Company is actively seeking interim reimbursement from existing mechanisms that include specific interim reimbursement schemes, new technology payment programs as well as existing DRG codes. In most EU countries, the government provides healthcareproduct development, manufacturing production, distribution, and controls reimbursement levels. Since the EU has no jurisdiction over patient reimbursement or pricing matters in its member states, the methodologies for determining reimbursement rates and the actual rates may vary by country.

In October 2015, we announced that the Institut fϋr das Entgeltsystem im Krankenhaus (InEk), the German federal reimbursement agency, established a national Zusatzentgeld (ZE) reimbursement code for procedures performed with CHEMOSAT in Germany. The ZE diagnostic-related group (DRG) code is a national reimbursement code that augments existing DRG codes until a specific new DRG code can be created, and will replace the previous Neue Untersuchungs und Behandlungsmethoden (NUB) procedure that required patients in Germany to apply individually for reimbursement of their CHEMOSAT treatment. With the establishment of a ZE code for CHEMOSAT, the procedure is now permanently represented in the DRG catalog in Germany. In 2016, coverage levels were negotiated between hospitals in Germany and regional sickness funds. Coverage levels determined via this process are renegotiated annually.

In May 2014, NICE, a non-departmental public body that provides guidance and advice to improve health and social care in the UK, completed a clinical review of CHEMOSAT. The NICE review indicated that as the current body of evidence on the safety and efficacy of PHP with CHEMOSAT for primary or metastatic liver cancer is limited, the procedure should be performed within the context of research by clinicians with specific training in its use and techniques. Delcath expects to consult again with the Interventional Procedures Advisory Committee at the National Institute for Clinical Excellence (NICE) in England, to provide recent clinical evidence with a view to moving existing Interventional Procedural Guidance from research to specialist status. This would enable greater scope for commercialization because it would allow more use by NHS clinicians of the therapy. It might also pave the way for a full Medical Technology Assessment as a way towards longer term reimbursement with the NHS.

In the short term, public patients will continue to be treated in the UK through clinical trials. Private patients will continue to be treated through the established private treatment pathway such as private insurance coverage or self-pay.

In the Netherlands CHEMOSAT has been performed at the Netherlands Cancer Institute in 2013 and at Leiden University Medical Centre since 2014. In June 2017 the Medical Oncology National Treatment Guidelines for Uveal Melanoma were updated and now include recommendations to consider CHEMOSAT in the treatment of liver metastases. An application to the Dutch Health Care Institute (ZIN) to approve CHEMOSAT as a treatment option for ocular melanoma liver metastases and also an application for reimbursement Dutch Health Care Authority (NZA) for the formulation of a reimbursement code (DBC) has been made. These applications are currently under review by the respective bodies.

In April 2016, we announced that the General and Digestive Surgery team at HM Sanchinarro University Hospital had activated the hospital's CHEMOSAT program. The Sanchinarro team successfully performed three procedures with CHEMOSAT, using the procedure to treat patients with peripheral cholangiocarcinoma and neuroendocrine tumors liver metastases. HM Sanchinarro University Hospital is the second center in Spain to offer CHEMOSAT treatments.

In April 2016 we announced the activation of the Hacettepe University Clinic in Ankara, Turkey as a CHEMOSAT treatment center. Hacettepe University Clinic successfully completed its first CHEMOSAT treatments in March 2016, and the center represents the first CHEMOSAT commercial location to be activated outside of the European Union. We believe that Hacettepe University can serve as an important hub for CHEMOSAT treatment to patients in Turkey and throughout the region.

post marketing evaluation. As a result of the ~~Company’s strategy~~worldwide COVID-19 pandemic, on April 17, 2020, the European Parliament adopted the European Commission’s proposal to ~~prioritize resources on~~postpone the key direct markets of Germany, the Netherlands and the United Kingdom, the Company expects that its distribution strategy will play a lesser role in its current commercial activities. In Spain, the Company has determined that there was no benefit to continuing with an indirect model and therefore terminated its relationship with its distributor in Spain and is now represented in Spain through a sales agency. The Company is represented in Turkey through a distribution partner.

Our products are subject to extensive and rigorous government regulation by foreign regulatory agencies and the FDA. Foreign regulatory agencies, the FDA and comparable regulatory agencies in state and local jurisdictions impose extensive requirements upon the clinical development, pre-market clearance and approval, manufacturing, labeling, marketing, advertising and promotion, pricing, storage and distribution of pharmaceutical and medical device products. Failure to comply with applicable foreign regulatory agency or FDA requirements may result in Warning Letters, fines, civil or criminal penalties, suspension or delays in clinical development, recall or seizure of products, partial or total suspension of production or withdrawal of a product from the market.

In the United States, the FDA regulates drug and device products under the FFDCA, and its implementing regulations. The Delcath Melphalan/HDS is subject to regulation as a combination product, which means it is composed of both a drug product and device product. If marketed individually, each component would therefore be subject to different regulatory pathways and reviewed by different centers within the FDA. A combination product, however, is assigned to a center that will have primary jurisdiction over its

~~pre-market review and regulation based on a determination of its primary mode of action, which is the single mode of action that provides the most important therapeutic action. In the case~~implementation of the ~~Melphalan/HDS,~~MDR (EU) 2017/745 by 12 months. This urgently drafted proposal to delay the ~~primary mode of action~~MDR is ~~attributable~~in response to the ~~drug component of the product, which means that the Center for Drug Evaluation and Research, has primary jurisdiction over its pre-market development and review.~~

~~The process required by the FDA before drug product candidates may be marketed in the United States generally involves the following:~~

The development and approval process requires substantial time, effort and financial resources, and we cannot be certain that any approvals for our product will be granted on a timely basis, if at all.

The results of preclinical tests (which include laboratory evaluation as well as GLP studies to evaluate toxicity in animals) for a particular product candidate, together with related manufacturing information and analytical data, are submitted as part of an IND to the FDA. The IND automatically becomes effective 30 days after receipt by the FDA, unless the FDA, within the 30-day time period, raises concerns or questions about the conduct of the proposed 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. IND submissions may not result in FDA authorization 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. Further, an independent institutional review board, or IRB, 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 study 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 regulations and regulations for informed consent and privacy of individually identifiable information. Similar requirements to the United States IND are required in the European Economic Area (EEA) and other jurisdictions in which we may conduct clinical trials.

Some jurisdictions, including the United States, may designate drugs for relatively small patient populations as orphan drugs. Pursuant to the Orphan Drug Act, the FDA grants orphan drug designation to drugs intended to treat a rare disease or condition, which is generally a disease or condition that affects fewer than 200,000 individuals in the United States. The orphan designation is granted for a combination of a drug entity and an indication and therefore it can be granted for an existing drug with a new (orphan) indication. Applications are made to the Office of Orphan Products Development at the FDA and a decision or request for more information is rendered in 60 days. NDAs for designated orphan drugs are exempt from user fees, obtain additional clinical protocol assistance, are eligible for tax credits up to 50% of research and development costs, and are granted a seven-year period of exclusivity upon approval. The FDA cannot approve the same drug for the same condition during this period of exclusivity, except in certainexceptional circumstances where a new product demonstrates superiority to the original treatment. Exclusivity begins on the date that the marketing application is approved by the FDA for the designated orphan drug, and an orphan designation does not limit the use of that drug in other applications outside the approved designation in either a commercial or investigational setting.

The FDA has granted Delcath six orphan drug designations. In November 2008, the FDA granted Delcath two orphan drug designations for the drug melphalan for the treatment of patients with cutaneous melanoma as well as patients with ocular melanoma. In May 2009, the FDA granted Delcath an additional orphan drug designation of the drug melphalan for the treatment of patients with neuroendocrine tumors. In August 2009, the FDA granted Delcath an orphan drug designation of the drug doxorubicin for the treatment of patients with primary liver cancer. In October 2013, the FDA granted Delcath an orphan drug designation of the drug melphalan for the treatment of HCC. In July 2015, the FDA granted Delcath an orphan drug designation of the drug melphalan for the treatment of cholangiocarcinoma, which includes ICC.

The granting of orphan drug designations does not mean that the FDA has approved a new drug. Companies must still pursue the rigorous development and approval process that requires substantial time, effort and financial resources, and we cannot be certain that any approvals for our product will be granted at all or on a timely basis.

Our success depends in part on our ability to obtain patents and trademarks, maintain trade secret and know-how protection, enforce our proprietary rights against infringers, and operate without infringing on the proprietary rights of third parties. Because of the length of time and expense associated with developing new products and bringing them through the regulatory approval process, the health care industry places considerable emphasis on obtaining patent protection and maintaining trade secret protection for new technologies, products, processes, know-how, and methods. The Company currently holds eight U.S. utility patents, one U.S. design patent, six pending U.S. utility patent applications (one of which has been allowed), four issued foreign counterpart utility patents (including the validation of one European patent in two European countries, and the validation of another European patent in four European countries), six issued foreign counterpart design patents, and eight pending foreign counterpart patent applications (one of which has been allowed).

In July 2017, one of our pending patent applications for our chemotherapy filtration system was approved by the U.S. Patent Office. When appropriate, the Company actively pursues protection of our proprietary products, technologies, processes, and methods by filing United States and international patent and trademark applications. We seek to pursue additional patent protection for technology invented through research and development, manufacturing, and clinical use of the CHEMOSAT and Melphalan/HDS that will enable us to expand our platform beyond the treatment of cancers in the liver.

There can be no assurance that the pending patent applications will result in the issuance of patents, that patents issued to or licensed by us will not be challenged or circumvented by competitors, or that these patents will be found to be valid or sufficiently broad to protect our technology or provide us with a competitive advantage.

To maintain our proprietary position, we also rely on trade secrets and proprietary technological experience to protect proprietary manufacturing processes, technology, and know-how relating to our business. We rely, in part, on confidentiality agreements with our marketing partners, employees, advisors, vendors and consultants to protect our trade secrets and proprietary technological expertise. In addition, we also seek to maintain our trade secrets through maintenance of the physical security of the premises where our trade secrets are located. There can be no assurance that these agreements will not be breached, that we will have adequate remedies for any breach, that others will not independently develop equivalent proprietary information or that third parties will not otherwise gain access to our trade secrets and proprietary knowledge.

Certain of our United States and foreign patents have already expired and other patents relating to the CHEMOSAT and Melphalan/HDS will expire in the future. In certain circumstances, United States patent law allows for the extension of a patent’s duration for a period of up to five years after FDA approval. The Company intends to seek extension for one of our patents after FDA approval if it has not expired prior to the date of approval. In addition to our proprietary protections, the FDA has granted Delcath five orphan drug designations that provide us a seven-year period of exclusive marketing beginning on the date that our NDA is approved by the FDA for the designated orphan drug. While the exclusivity only applies to the indication for which the drug has been approved, the Company believes that it will provide us with added protection once commercialization of an orphan drug designated product begins.

There has been and continues to be substantial litigation regarding patent and other intellectual property rights in the pharmaceutical and medical device areas. If a third party asserts a claim against Delcath, the Company may be forced to expend significant time and money defending such actions and an adverse determination in any patent litigation could subject us to significant liabilities to third parties, require us to redesign our product, require us to seek licenses from third parties, and, if licenses are not available, prevent us from manufacturing, selling or using our system. Additionally, Delcath plans to enforce its intellectual property rights vigorously and may find it necessary to initiate litigation to enforce our patent rights or to protect our trade secrets or know-how. Patent litigation can be costly and time consuming and there can be no assurance that the outcome will be favorable to us.

Products manufactured or distributed pursuant to FDA approvals are subject to continuing regulation by the FDA, including recordkeeping, annual product quality review and reporting requirements. Adverse event experience with the product must be reported to the FDA in a timely fashion and pharmacovigilance programs to proactively look for these adverse events are mandated by the FDA. Drug manufacturers and their subcontractors 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 ongoing regulatory requirements, including cGMPs, which impose certain procedural and documentation requirements upon us and our third-party manufacturers. Following such inspections, the FDA may issue notices on Form 483 and Untitled Letters or Warning Letters that could cause us or our third-party manufacturers to modify certain activities. A Form 483 Notice, if issued at the conclusion of an FDA inspection, can list conditions the FDA investigators believe may have violated cGMP or other FDA regulations or guidelines. In addition to Form 483 Notices and Untitled Letters or Warning Letters, failure to comply with the statutory and regulatory requirements can subject a manufacturer to possible legal or regulatory action, such as suspension of manufacturing, seizure of product, injunctive action or possible civil 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 require us to recall our products from distribution or withdraw any potential approvals of an NDA for that product.

The FDA closely regulates the post-approval marketing and promotion of drugs, including standards and regulations for direct-to-consumer advertising, dissemination of off-label information, industry-sponsored scientific and educational activities and promotional activities involving the Internet. Drugs may be marketed only for the approved indications and in accordance with the provisions of the approved label. Further, if there are any modifications to the drug, including changes in indications, labeling, or manufacturing processes or facilities, we may be required to submit and obtain FDA approval of a new or supplemental NDA, which may require us to develop additional data or conduct additional preclinical studies and clinical trials. Failure to comply with these requirements can result in adverse publicity, Warning Letters, corrective advertising and potential civil and criminal penalties.

Physicians may prescribe legally available products for uses that are not described in the product’s labeling and that differ from those tested by us and approved by the FDA. Such off-label uses are common across medical specialties, in particular in oncology. Physicians may believe that such off-label uses are the best treatment for many patients in varied circumstances. The FDA does not regulate the behavior of physicians in their choice of treatments. The FDA does, however, impose stringent restrictions on manufacturers’ communications regarding off-label use.

In the EEA, the CHEMOSAT system is subject to regulation as a medical device. The EEA is composed of the 27 Member States of the EU plus Norway, Iceland and Liechtenstein. Under the EU Medical Devices Directive (Directive No 93/42/ECC of 14 June 1993, as last amended), drug delivery products such as the CHEMOSAT system is governed by the EU laws on pharmaceutical products only if they are (i) placed on the market in such a way that the device and the pharmaceutical product form a single integral unit which is intended exclusively for use in the given combination, and (ii) the product is not reusable. In such cases, the drug delivery product is governed by the EU Code on Medicinal Products for Human Use (Directive 2001/83/EC, as last amended), while the essential requirements of the EU Medical Devices Directive apply to the safety and performance-related device features of the product. Because we do not intend to place the CHEMOSAT system on the EEA market as a single integral unit with melphalan, the product is governed solely by the EU Medical Devices Directive, while the separately marketed drug is governed by the EU Code relating to Medicinal Products for Human Use and other EU legislation applicable to drugs for human use.

Before we may commercialize a medical device in the EEA, we must comply with the essential requirements of the EU Medical Devices Directive. Compliance with these requirements entitles a manufacturer to affix a CE conformity mark, without which the products cannot be commercialized in the EEA. To demonstrate compliance with the essential requirements and obtain the right to affix the CE conformity mark, medical device manufacturers must undergo a conformity assessment procedure, which varies according to the type of medical device and its classification. In April 2011, we obtained authorization to affix a CE Mark for the Generation One CHEMOSAT system and began European commercialization with this version of the CHEMOSAT system in early 2012. In April 2012, the Company obtained authorization to affix a CE Mark for the Generation Two CHEMOSAT system, and since this time all procedures in Europe have been performed with this version of the system

The Medical Devices Directive establishes a classification system placing devices into Class I, IIa, IIb, or III, depending on the risks and characteristics of the medical device. For certain types of low risk medical devices (i.e., Class I devices which are non-sterile and do not have a measuring function), the manufacturer may issue an EC Declaration of Conformity based on a self-assessment of the conformity of its products with the essential requirements of the EU Medical Devices Directives. Other devices are subject to a conformity assessment procedure requiring the intervention of a Notified Body, which is an organization designated by a Member State of the EEA to conduct conformity assessments.

CHEMOSAT is regulated as a Class IIb medical device. As a Class IIb medical device, the Notified Body is not required to carry out an examination of the product’s design dossier as part of its conformity assessment prior to commercialization. The Company must continue to comply with the essential requirements of the EU Medical Devices Directive (Directive 93/42 EC) and is subject to a conformity assessment procedure requiring the intervention of a Notified Body. The conformity assessment procedure for Class IIb medical devices requires the manufacturer to apply for the assessment of its quality system for the design, manufacture and inspection of its medical devices by a Notified Body. The Notified Body will audit the system to determine whether it conforms to the provisions of the Medical Devices Directive. If the Notified Body’s assessment is favorable it will issue a Full Quality Assurance Certificate, which enables the manufacturer to draw a Declaration of Conformity and affix the CE mark to the medical devices covered by the assessment. Thereafter, the Notified Body will carry out periodic audits to ensure that the approved quality system is applied by the manufacturer.

A manufacturer without a registered place of business in a Member State of the European Union which places a medical device on the market under its own name must designate an authorized representative established in the European Union who can act before, and be addressed by, the Competent Authorities on the manufacturer’s behalf with regard to the manufacturer’s obligations under the EU Medical Devices Directive. We appointed such a representative prior to establishing our infrastructure in the EEA and expect that we will not need a third party representative in the future.

In the EEA, we must also comply with the Medical Device Vigilance System, which is designed to improve the protection of health and safety of patients, users and others by reducing the likelihood of recurrence of incidents related to the use of a medical device. Under this system, incidents are defined as any malfunction or deterioration in the characteristics and/or performance of a device, as well as any inadequacy in the labeling or the instructions for use which, directly or indirectly, might lead to or might have led to the death of a patient, or user or of other persons or to a serious deterioration in their state of health. When a medical device is suspected to be a contributory cause of an incident, its manufacturer or authorized representative in the EU must report it to the Competent Authority of the Member State where the incident occurred. Incidents are generally investigated by the manufacturer. The manufacturer’s investigation is monitored by the Competent Authority, which may intervene, or initiate an independent investigation if considered appropriate. An investigation may conclude in the adoption of a Field Safety Corrective Action (FSCA). An FSCA is an action taken by a manufacturer to reduce a risk of death or serious deterioration in the state of health associated with the ~~use of a medical device that is already placed~~COVID-19 pandemic and the potential impact it may have had on the ~~market. An FSCA may include device recall, modification exchange and destruction. FSCAs must be notified by~~MDR implementation. The new Date of Application (DoA) for the ~~manufacturer or its authorized representative to its customers and/or the end users~~MDR was May 26, 2021.

Effectively addressing these changes will require a complete review of ~~the medical device via a Field Safety Notice.~~

In the EEA, the off-label promotion of a pharmaceutical product is strictly prohibited under the EU Community Code on Medicinal Products, which provides that all information provided within the context of the promotion of a drug must comply with the information contained in its approved summary of product characteristics. Our product instructions and indication reference the chemotherapeutic agent melphalan hydrochloride. However, no melphalan labels in the EEA reference our product, and the labels vary from country to country with respect to the approved indication of the drug and its mode of administration. In the exercise of their professional judgment in the practice of medicine, physicians are generally allowed, under certain conditions, to use or prescribe a product in ways not approved by regulatory authorities. Physicians intending to use our device ~~must obtain melphalan separately for use with the CHEMOSAT system and must use melphalan independently at their discretion.~~

~~In the EEA, the advertising and promotion of our products~~operations to determine what is ~~also subject~~necessary to EEA Member States laws implementing the EU Medical Devices Directive, Directive 2006/114/EC concerning misleading and comparative advertising and Directive 2005/29/EC on unfair commercial practices, as well as other EEA Member State legislation governing the advertising and promotion of medical devices. These laws may further limit or restrict the advertising and promotion of our products to the general public and may also impose limitations on our promotional activities with health care professionals.

Failure to comply with the EEA Member State laws implementing the Medical Devices Directive, with the EU and EEA Member State laws on the promotion of medicinal products or with other applicable regulatory requirements can result in enforcement action by the EEA Member State authorities, which may include any of the following: fines, imprisonment, orders forfeiting products or prohibiting or suspending their supply to the market, or requiring the manufacturer to issue public warnings, or to conduct a product recall.

The European Commission reviewed the medical devices legislative framework in 2012 with the aim of simplifying it and ensuring a more uniform application of the provisions contained in the medical devices directives across the EEA.comply. We do not believe the ~~adopted~~MDR regulatory changes will impact our business at this time, though ~~future changes to~~implementation of the medical device legislation may adversely affect our business, financial condition and results of operations or restrict our operations.

The CHEMOSAT device has received registrations in the following countries: Australia, New Zealand, Argentina, Taiwan, and Singapore. With limited resources and our attention focused on European commercial and clinical adoption efforts, pursuing other markets at this time is not practical. We will continueDue to ~~evaluate commercial opportunities in these and other markets when resources are available and at an appropriate time.~~

~~The healthcare industry is characterized~~COVID-related delays experienced by extensive research, rapid technological progress and significant competition from numerous healthcare companies and academic institutions. Competition in the cancer treatment industry is intense. We believe that the primary competitive factors for products addressing cancer include safety, efficacy, ease of use, reliability and price. We also believe that physician relationships, especially relationships with leaders in the medical device industry and surgical oncology communities, are important competitive factors. We also believe that the current global economic conditions and new healthcare reforms could put competitive pressure on us, including reduced selling prices and potential reimbursement rates, and overall procedure rates. Certain markets in Europe are experiencing the effects of continued economic weakness, which is affecting healthcare budgets and reimbursement.

The CHEMOSAT and Melphalan/HDS competes with all forms of liver cancer treatments, including surgery, systemic chemotherapy, focal therapies and palliative care. In the disease states we are targeting there are also numerous clinical trials sponsored by third-parties, which can compete for potential patients in the near term and may ultimately lead to new competitive therapies.

For ocular melanoma liver metastases, there are currently no approved or effective treatment options, and patients are generally treated with a variety of focal and regional techniques. There are numerous companies developing and marketing devices for the performance of focal therapies, including Covidian, Biocompatibles, Merit, CeleNova, SirTex, AngioDynamics, and many others.

~~For HCC, sorafenib (Nexavar, Onyx Pharmaceuticals) remains the only targeted drug approved for the treatment of HCC in patients who are not candidates for surgery.~~

~~Several therapies have been recently approved for unresectable or metastatic cutaneous melanoma, which may encompass liver metastases. Dabrafenib (Tafinlar™, GlaxoSmithKline), is indicated~~Notified Bodies (NB) alike, as single agent for the treatment of patients with unresectable or metastatic melanoma with BRAF V600E mutation, and in combination with trametinib in unresectable or metastatic melanoma with BRAF V600E or V600K mutations. Furthermore, trametinib (MEKINIST™, GlaxoSmithKline) is indicated as single agent (in addition to in combination with dabrafinib) for treatment of patients with unresectable or metastatic melanoma with BRAF V600E or V600K mutations. Previously approved melanoma therapies such as the biologic ipilimumab (Yervoy™, Bristol Myers Squibb) and the B-RAF targeted drug vemurafenib (Zelboraf™, Genentech) may also make up the competitive landscape for the treatment of metastatic liver disease.

Many of our competitors have substantially greater financial, technological, research and development, marketing and personnel resources. In addition, some of our competitors have considerable experience in conducting clinical trials, regulatory, manufacturing and commercialization capabilities. Our competitors may develop alternative treatment methods, or achieve earlier product development, in which case the likelihood of us achieving meaningful revenues or profitability will be substantially reduced.

We manufacture certain components including our proprietary filter media, and assemble and package the CHEMOSAT and Melphalan/HDS at our facility in Queensbury, New York. We have established our European headquarters and distribution facility in Galway, Ireland where we intend to conduct final manufacturing and assembly in the future. Delcath currently utilizes third-parties to manufacture some components of the CHEMOSAT and Melphalan/HDS. The CHEMOSAT and Melphalan/HDS and its components must be manufactured and sterilized in accordance with approved manufacturing and pre-determined performance specifications. In addition, certain components will require sterilization prior to distribution and Delcath relies on third-party vendors to perform the sterilization process.

We are committed to providing high quality products to our customers. To honor this commitment, Delcath has implemented updated quality systems throughout our organization. Delcath’s quality system starts with the initial product specification and continues through the design of the product, component specification process and the manufacturing, sale and servicing of the product. These systems are designed to enable us to satisfy the various international quality system regulations including those of the FDA with respect to products sold in the United States and those established by the International Standards Organization (ISO) with respect to products sold in the EEA. The Company is required to maintain ISO 13485 certification for medical devices to be sold in the EEA, which requires, among other items, an implemented quality system that applies to component quality, supplier control, product design and manufacturing operations. On February 17, 2011, we announced that we had achieved ISO 13485 certification for our Queensbury manufacturing facility. On December 28, 2011, we announced that we had achieved ISO 13485 certification for our Galway, Ireland facility.

Our success depends in part on our ability to obtain patents and trademarks, maintain trade secret and know-how protection, enforce our proprietary rights against infringers, and operate without infringing on the proprietary rights of third parties. Because of the length of time and expense associated with developing new products and bringing them through the regulatory approval process, the health care industry places considerable emphasis on obtaining patent protection and maintaining trade secret protection for new technologies, products, processes, know-how, and methods. The Company currently holds nine United States utility patents, one United States design patent, five pending United States utility patent applications, eleven issued foreign counterpart utility patents, six issued foreign counterpart design patents, and eight pending foreign counterpart patent applications (one of which has been allowed). We presently have issued utility and design patents with claims related to certain features of the current version of CHEMOSAT and Melphalan/HDS in the United States and Japan and a design patent protection in Argentina, Australia, Canada, China and Europe.

When appropriate, the Company actively pursues protection of our proprietary products, technologies, processes, and methods by filing United States and international patent and trademark applications. We seek to pursue additional patent protection for technology invented through research and development, manufacturing, and clinical use of the CHEMOSAT and Melphalan/HDS that will enable us to expand our platform beyond the treatment of cancers in the liver. There can be no assurance that the pending patent applications will result in the issuance of patents, that patents issued to or licensed by us will not be challenged or circumvented by competitors, or that these patents will be found to be valid or sufficiently broad to protect our technology or provide us with a competitive advantage.

Certain of our United States and foreign patents have already expired and other patents relating to the CHEMOSAT and Melphalan/HDS will expire in 2017. In certain circumstances, United States patent law allows for the extension of a patent’s duration for a period of up to five years after FDA approval. The Company intends to seek extension for one of our patents after FDA approval if it has not expired prior to the date of approval. In addition to our proprietary protections, the FDA has granted Delcath five orphan drug designations that provide us a seven-year period of exclusive marketing beginning on the date that our NDA is approved by the FDA for the designated orphan drug. While the exclusivity only applies to the indication for which the drug has been approved, the Company believes that it will provide us with added protection once commercialization of an orphan drug designated product begins.

~~During 2016, Delcath added 7 employees to support clinical trial implementations in the EU and United States and to meet the demands of commercial sales. As~~ of September 30, ~~2017,~~2021, Delcath ~~had 46 full-time employees. None of~~has not yet achieved MDR certification. However, our ~~employees is represented by a union and we believe relationships with our employees are good.~~

On September 13, 2017 the Company announced the delisting of its shares from the NASDAQ Capital Market. As a result of the shareholder non-approval of its reverse stock split on September 7, 2017 by the requisite vote required under Delaware law, the Company did not meet the requirements for continued listing on the Nasdaq Capital Market. After conversations with both the NASDAQ and OTC Markets, the Company was able to effect the change in listing to the OTC Markets more quickly than anticipated. The Company's common stock commenced trading on the OTCQB on September 15, 2017current CE Mark under the ~~symbol "DCTH".~~Medical Device Directive remains effective until April 2024 and allows us to fully operate, in Europe, accordingly, as Delcath and our Notified Body work closely together through the certification process.

On September 21, 2017 the Company disclosed that Harold Koplewicz, M.D. resigned as a member of the Board of Directors of Delcath Systems, Inc. (the “Company”), effective September 15, 2017. The decision of Dr. Koplewicz to resign is not the result of any disagreement with the Company on any matter relating to its operations, policies or practices.

~~On November 14, 2017, the Company appointed Simon Pedder as a director to take the seat vacated by Dr. Koplewiz.~~

Results of Operations for the three and nine months ended September 30, ~~2017; Comparisons of Results of Operations for the three and nine months ended September 30, 2016~~2021 (in thousands)

Three months ended September 30, ~~2017 and~~2021 compared with three months ended September 30, ~~2016~~2020

~~The Company~~We recorded approximately ~~$0.7 million~~$522 in revenue ~~related to product sales~~ for the three months ended September 30, ~~2017 and $0.4 million in revenue related~~2021 compared to ~~product sales~~$466 for the three months ended September 30, ~~2016. Although~~2020. The increase of $56 in revenue is mainly due to an increase in CHEMOSAT unit sales ~~remain modest, the increase continues~~ to ~~be driven by the establishment of ZE diagnostic-related group reimbursement for CHEMOSAT procedures in Germany.~~medac and associated royalty income.

For the three months ended September 30, ~~2017, the Company~~2021, we recorded cost of goods sold of approximately ~~$0.2 million~~$227 compared to ~~$0.1 million~~$188 for the three months ended September 30, ~~2016. The~~2020. This increase ~~in cost of goods sold~~ is ~~commensurate with~~primarily related to the increase in ~~sales.~~sales volume.

For the three month period ended September 30, 2017 selling, general and administrative expenses were $2.9 million compared to $2.4 million for the three months ended September 30, 2016. The increase is due primarily to an increase in independent audit fees due to additional testing over the Company’s internal control over financial reporting and an increase in costs associated with the Company’s shareholder meetings as a result of the efforts to secure approval for a reverse stock split.

~~For~~Research and development expenses are incurred for the ~~three month periods ended September 30, 2017~~development of HEPZATO and ~~2016,~~consist primarily of payroll and payments to contract research and development expenses decreased to $2.3 million from $2.7 million, primarily due to efforts in opening centers in 2016 in order to support the enrollment of our Phase 3 trial which is discussed in further detail in the ~~Current Clinical Development Program~~ ~~section above.~~

~~Other income (expense) increase is~~companies. To date, these costs are related to ~~foreign currency exchange gains~~generating pre-clinical data and ~~losses.~~

1. the ~~restructuring lease liability discussed in Note 6~~cost of ~~the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q;~~

~~2. the amortization of debt discounts~~manufacturing HEPZATO for clinical trials and ~~debt issuance costs discussed in Note 7 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q; and~~

3. original issuance discounts related to the issuance of Series C preferred stock discussed in Note 8 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q.

~~Interest income is from a money market account and interest earned on operating accounts.~~

conducting clinical trials. For the three months ended September 30, ~~2017 derivative instrument income~~2021, research and development expenses decreased to $2,955 from $3,260 in the prior year period. The decrease of approximately ~~$27,000 from $8.7 million~~$1,550 in clinical trial expenses is mainly due to the completion of the dosing phase of the FOCUS trial in May 2021. This was offset by recording of stock option expense of $734 and an increase due to additional compensation expense related to the hiring of six additional employees and an increase in costs related to preparation for the NDA submission.

Selling, general and administrative expenses consist primarily of payroll, rent and professional services such as accounting and legal services. For the three months ended September 30, ~~2016.~~2021 and 2020, selling, general and administrative expenses were $4,036 and $1,998, respectively. The ~~decrease of $8.7 million~~increase is ~~due~~primarily related to the ~~extinguishment~~recording of stock option expense of $1,655 during the ~~Series C Warrants~~three months ended September 30, 2021.

Other income/expense is primarily related to income or expense associated with financial instruments. For the three months ended September 30, 2021 and 2020, other (income)/expense were $429 and $11 of expense, respectively. The change is mostly related to $255 of interest expense and $127 of amortization expense for the ~~mark-to-market adjustments to~~original issue discount on the ~~Warrant liability~~debt financing transaction between the Company and Avenue Venture Opportunities Fund, L.P., as discussed ~~in more detail in Note 7~~below under the heading Liquidity and ~~Note 9 to the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q.~~Capital Resources.

~~The Company recorded a~~Our net loss for the three months ended September 30, ~~2017, of $12.6 million,~~2021 was $7,125, an increase of ~~$11.6 million, or 1,153.9%,~~$2,134 compared to a net loss of ~~$1.0 million~~$4,991 for the ~~same period in 2016. This~~three months ended September 30, 2020. The increase ~~in net loss~~ is ~~primarily~~mainly due to ~~an $8.7 million change in~~ the ~~fair value~~third quarter stock option expense of ~~the warrant liability and a $3.0 million loss on settlement of the convertible note debt, both non-cash items.~~$2,449.

Nine months ended September 30, ~~2017 and~~2021 compared with nine months ended September 30, ~~2016~~2020

~~The Company~~We recorded approximately ~~$2.0 million~~$1,447 in revenue ~~related to product sales~~ for the nine months ended September 30, ~~2017 and $1.3 million in revenue related~~2021 compared to ~~product sales~~$1,139 for the nine months ended September 30, ~~2016. Although~~2020. The increase of $308 in revenue is mostly due to an increase in CHEMOSAT unit sales ~~remain modest, the increase continues~~ to ~~be driven by the establishment of ZE diagnostic-related group reimbursement for CHEMOSAT procedures in Germany.~~medac and associated royalty income.

For the nine months ended September 30, ~~2017, the Company~~2021, we recorded cost of goods sold of approximately ~~$0.5 million~~$541 compared to ~~$0.4 million~~$434 for the nine months ended September 30, ~~2016. The~~2020 This increase ~~in cost of goods sold~~ is ~~commensurate with~~primarily related to the increase in ~~sales.~~sales volume.

Research and development expenses are incurred for the development of HEPZATO and consist primarily of payroll and payments to contract research and development companies. To date, these costs are related to generating pre-clinical data and the cost of manufacturing HEPZATO for clinical trials and conducting clinical trials. For the nine months ended September 30, ~~2017~~2021, research and development expenses increased to $10,159 from $8,457 in the ~~Company recorded selling, general and administrative expenses of approximately $7.8 million compared to $7.0 million for the same period in 2016.~~prior year period. The increase is partially due ~~primarily~~ to anrecording stock option expenses of $1,827 in 2021. The balance of the increase ~~in Delaware corporate taxes, in independent audit fees~~was due to additional ~~testing over~~compensation expense related to the ~~Company’s internal control over financial reporting~~hiring of five additional employees and an increase in costs ~~associated with~~related to the ~~Company’s shareholder meetings~~ongoing FOCUS trial and preparation for the NDA submission.

Selling, general and administrative expenses consist primarily of payroll, rent and professional services such as ~~a result of the efforts to secure approval for a reverse stock split.~~

legal services. For the nine months ended September 30, ~~2017~~2021 and ~~2016, research~~2020, selling, general and ~~development~~administrative expenses ~~increased to $7.1 million from $6.0 million, primarily due to the ongoing efforts of our Phase 3 trial which is discussed in further detail in the~~ ~~Current Clinical Development Program~~ ~~section above.~~

~~Other income (expense)~~$6,571, respectively. The increase is ~~related to foreign currency exchange gains and losses.~~

~~1. the restructuring lease liability discussed in Note 6 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q;~~

2. the amortization of debt discounts and debt issuance costs discussed in Note 7 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q; and

~~3. original issuance discounts~~primarily related to the ~~issuance~~recording of ~~Series C preferred~~ stock ~~discussed in Note 8~~option expense of $4,396 during the ~~Company’s interim condensed consolidated~~nine months ended September 30, 2021

Other income/expense is primarily related to income or expense associated with financial ~~statements contained in this Quarterly Report on Form 10-Q.~~

~~Interest income is from a money market account and interest earned on operating accounts.~~

instruments. For the nine months ended September 30, ~~2017 derivative instrument income decreased~~2021 and 2020, other (income)/expense were $428 and $2,804 of expense, respectively. The change is mostly related to ~~$1.2 million from $9.2 million~~the fair value adjustment recorded in the first quarter of 2020 related to the warrant liability and offset by $255 of interest expense and $127 of amortization expense for the ~~nine months ended September 30, 2016. The decrease of $7.9 million is due to~~original issue discount on the ~~extinguishment of~~debt financing transaction between the ~~Series C Warrants~~Company and ~~the mark-to-market adjustments to the Warrant liability~~Avenue Venture Opportunities Fund, L.P., as discussed ~~in more detail in Note 7~~below under the heading Liquidity and ~~Note 9 to the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q.~~Capital Resources.

~~The Company recorded a~~Our net loss for the nine months ended September 30, ~~2017, of $25.9 million,~~2021 was $20,302, an increase of ~~$16.4 million, or 172.8%,~~$3,175 compared to a net loss of ~~$9.5 million~~$17,127 for the ~~same period in 2016. This~~nine months ended September 30, 2020. The increase ~~in net loss~~ is ~~primarily~~mainly due to ~~a $13.7 million increase in interest~~the year-to-date stock option expense ~~primarily~~of $6,224 offset by $2,832 related to the ~~amortization~~fair value adjustment recorded in the first quarter of 2020 related to the warrant liability.

At September 30, 2021, we had cash, cash equivalents and restricted cash totaling $29,016, as compared to cash, cash equivalents and restricted cash totaling $28,756 at December 31, 2020 and $11,080 at September 30, 2020. During the nine months ended September 30, 2021 and 2020, we used $16,193.0 and $17,828.5, respectively, of cash in our operating activities. In the nine months ended September 30, 2021, we raised $2,458 of cash related to the exercises of warrants and received net proceeds of $14,437 related to the debt ~~discounts~~financing transaction between the Company and Avenue Venture Opportunities Fund, L.P., as discussed below.

As previously reported, on August 6, 2021, the Company entered into a ~~$3.0 million loss settlement~~Loan and Security Agreement (the “Loan Agreement”) with

Avenue Venture Opportunities Fund, L.P. (the “Lender,” or “Avenue”) for a term loan in an aggregate principal amount of up to

$20,000 (the “Loan”). The Loan bears interest at an annual rate equal to the ~~convertible note debt, offset~~greater of (a) the sum of 7.70% plus the prime rate as

reported in The Wall Street Journal and (b) 10.95%. The Loan is secured by ~~a $9.6 million gain on the extinguishment of the June 2016 Series C Warrants, both non-cash items, discussed further in Note 7~~all of the Company’s ~~interim condensed consolidated~~assets globally, including

The initial tranche of the Loan is $15,000, including $4,000 which has been funded into a restricted account and will be released upon

achievement of (a)(x) positive FOCUS trial efficacy per the trial’s predefined Statistical Analysis Plan (SAP) (specifically the Overall

Response Rate exceeds the prespecified threshold for success defined in the SAP by a statistically significant amount); and (y) based

on data contained within the FOCUS trial database and appropriate for use with the U.S. Food and Drug Administration, safety and

tolerability among FOCUS trial participants is within the range of currently approved and commonly used cytotoxic chemotherapeutic

agents; and (b) raising subsequent net equity proceeds of at least $20,000. The Company may request an additional $5,000 of gross

proceeds between October 1, 2022 and December 31, 2022, with funding subject to the approval of Avenue’s Investment Committee.

In connection with the Loan, the Company issued to Avenue a warrant (the “Avenue Warrant”) to purchase 127,755 shares of common stock at an exercise price per share equal to $0.01. The Avenue Warrant is exercisable until August 31, 2026.

Up to $3,000 of the principal amount of the Loan outstanding may be converted, at the option of the Lender, into shares of the Company’s common stock at a conversion price of $11.98 per share.

The Company will make monthly interest-only payments during the first fifteen months of the term of the Loan, which could be

increased to up to twenty-four months upon the achievement of specified performance milestones. Following the interest-only period,

the Company will make equal monthly payments of principal plus interest until the maturity date when all remaining principal

outstanding and accrued interest must be paid. If the Company prepays the Loan, it will be required to pay (a) a prepayment fee of 3%

if the Loan is prepaid during the interest-only period; and (b) a prepayment fee of 1% if the Loan is prepaid after the interest-only

period. The Company must make an incremental final payment equal to 4.25% of the aggregate funding.

The Company paid an aggregate commitment fee of $150 at closing. Upon funding a second tranche of the Loan, the Lender will earn

a 1.0% fee on the $5,000 of incremental committed capital, for a total commitment fee of $200.

The Company’s financial condition raises substantial doubt about our ability to continue as a going concern for a period of at least one year from the date that the financial statements ~~contained~~included elsewhere in this Quarterly Report on Form ~~10-Q. Additionally, there was~~10-Q are issued. Our financial statements do not include adjustments to the amounts and classification of assets and liabilities that may be necessary should we be unable to continue as a ~~$1.9 million increase in operating expenses and~~going concern. Our ability to continue as a ~~$7.9 million change in~~going concern depends on our ability to raise additional capital through the ~~fair value~~sale of ~~the warrant liability, a non-cash item, offset by a $0.5 million increase in gross profit.~~equity or debt securities to support our future operations.

~~The Company’s~~Our future results are subject to substantial risks and uncertainties. ~~Delcath has~~We have operated at a loss for ~~its~~our entire history, and ~~anticipates~~we anticipate that our losses will continue ~~over~~for the ~~coming years.~~foreseeable future. There can be no assurance that ~~Delcath~~we will ever generate significant revenues or achieve profitability. ~~The Company expects~~We expect to use cash, cash equivalents and investment proceeds to fund ~~its~~our future clinical and operating

activities. ~~Delcath’s~~Our future liquidity and capital requirements will depend on numerous factors, including the initiation and progress of clinical trials and research and product development programs; obtaining approvals and complying with regulations; the timing and effectiveness of product commercialization activities, including marketing arrangements; the timing and costs involved in preparing, filing, prosecuting, defending and enforcing intellectual property rights; and the effect of competing technological and market developments.

At September 30, 2017, the Company had cash and cash equivalents totaling $2.5 million, as compared to cash and cash equivalents totaling $4.4 million and $3.7 million at December 31, 2016 and September 30, 2016, respectively. In addition, the Company has $8.4 million in restricted cash primarily related to the Convertible Notes discussed further in Note 7 of the Company’s interim condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2017 the Company used $11.7 million of cash in its operating activities, which compares to $10.6 million used for operating activities during the comparable period in 2016. As a result of issuing $35.0 million in senior secured convertible notes in June 2016 and effecting a reverse stock split on November 6, 2017 management believes that in its current reduced operating mode its capital resources will be adequate to fund operations through at least January 2018.

Our consolidated financial statements as of September 30, 2017 have been prepared under the assumption that we will continue as a going concern for the next twelve months. We expect to incur significant expenses and operating losses for the foreseeable future. These factors raise substantial doubt about our ability to continue as a going concern. Because Delcath’s business does not generate positive cash flow from operating activities, the Company will need to obtain substantial additional capital in order to fund clinical trial research and support development efforts relating to Ocular Melanoma liver metastases, ICC, HCC or other indications, and to fully commercialize the product. The Company believes it will be able to raise additional capital in the event it is in its best interest to do so. The Company anticipates raising such additional capital by either borrowing money, selling shares of Delcath’s capital stock, or entering into strategic alliances with appropriate partners. To the extent additional capital is not available when needed or on acceptable terms, the Company may be forced to abandon some or all of its development and commercialization efforts, which would have a material adverse effect on the prospects of its business. Further, the Company’s assumptions relating to its cash requirements may differ materially from its actual requirements because of a number of factors, including significant unforeseen delays in the regulatory approval process, changes in the timing, scope, focus and direction of clinical trials and costs related to commercializing the product.

The Company has funded its operations through a combination of private placements of its securities, and public offerings in 2000, 2003, 2009, 2010, 2011, 2012, 2013, 2015, and 2016 including registered direct offerings in 2007, 2009 and 2013, “at the market” equity offering programs in 2012 and 2013, and by a private placement of convertible notes in 2016 and preferred stock in 2017. For a detailed discussion of the Company’s various sales of securities see Note 8 to the Company’s financial statements contained in this Quarterly Report on Form 10-Q.

In October 2015, the Company filed a registration statement on Form S-3 with the SEC, which was declared effective on October 20, 2015 and allows the Company to offer and sell, from time to time in one or more offerings, up to $76.0 million of common stock, preferred stock, warrants, debt securities and stock purchase contracts as it deems prudent or necessary to raise capital at a later date. The Company is not currently eligible to use its Form S-3.

The Company intends to use the net proceeds from any future offerings for general corporate purposes, including, but not limited to, funding of clinical trials, obtaining regulatory approvals, commercialization of its products, capital expenditures and working capital.no off-balance sheet arrangements.

~~The Company’s~~Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States of ~~America (GAAP). Certain~~America. During the nine months ended September 30, 2021, there were no material changes to our critical accounting policies as reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. A description of certain accounting policies that may have a significant impact on amounts reported in the financial ~~statements. A summary of those significant accounting policies can be found~~statements is disclosed in Note 3 to the Company’s audited consolidated financial statements contained in ~~the 2016~~its Annual Report on Form ~~10-K.~~10-K for the fiscal year endedDecember 31, 2020.

~~The Company~~We may be minimally exposed to market risk through changes in market interest rates that could affect the interest earned on ~~its~~our cash balances.

~~The Company measures~~We measure all derivatives, including certain derivatives embedded in contracts, at fair value and ~~recognizes~~recognize them on the balance sheet as an asset or a liability, depending on ~~the Company’s~~our rights and obligations under the applicable derivative contract.

In October 2013, the Company completed the sale of 234 shares of its common stock and the issuance of warrants to purchase approximately 106 common shares (the “2013 Warrants”) pursuant to a placement agency agreement. The Company received proceeds of $7.5 million, with net cash proceeds after related expenses from this transaction of approximately $6.9 million. Of those proceeds, the Company allocated an estimated fair value of $1.9 million to the 2013 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. At September 30, 2017, the 2013 Warrants were exercisable at $39,424.00 per share with approximately 100 warrants outstanding. The 2013 Warrants have a five-year term.

In February 2015, the Company completed the sale of 440 shares of its common stock and the issuance of warrants to purchase 197 common shares (the “February 2015 Warrants”) pursuant to an underwriting agreement. The Company received proceeds of $2.6 million, with net cash proceeds after related expenses from this transaction of $2.5 million. Of those proceeds, the Company allocated an estimated fair value of $0.8 million to the February 2015 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. The exercise price of the warrants is also subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. For purposes of these adjustments, dilutive issuances do not include securities issued under existing instruments, under board-approved equity incentive plans or in certain strategic transactions. At September 30, 2017, the February 2015 Warrants were exercisable at $49.00 per share with approximately 100 warrants outstanding. The February 2015 Warrants have a five-year term.

In July 2015, the Company completed the sale of 1,715 Units consisting of 1,715 shares of its common stock, Series A Warrants to purchase up to 1,140 common shares (“Series A Warrants”) and Series B Warrants to purchase Units consisting of up to 1,715 common shares (“Series B Warrants”) and 0.4 million Series A Warrants per unit pursuant to an underwriting agreement. The Company received proceeds of $7.0 million, with net cash proceeds after related expenses from this transaction of $6.0 million. Of those proceeds the Company allocated an estimated fair value of $3.4 million to the 2015 Series A Warrants and Series B Warrants. The exercise price of both series of warrants is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock and is subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. During the three months ended March 31, 2016, approximately 285 Series B Warrants were exercised for net proceeds of approximately $0.8 million. The remaining 1,140 Series B Warrants expired on January 29, 2016 and the remaining liability was credited to Change in the fair value of the warrant liability. As a result of the Series B Warrant exercises, an additional 285 Series A Warrants were issued. At September 30, 2017, the Series A Warrants were exercisable at $49.00 with approximately 500 million warrants outstanding. The Series A Warrants have a five-year term. There were approximately 285 July 2015 Series A Warrants exercised during the nine months endedSeptember 30, 2017 for proceeds of approximately $15,000.

In June 2016, the Company entered into a Securities Purchase Agreement pursuant to which the Company issued $35.0 million in principal face amount of senior secured convertible notes of the Company (the “Notes”) and related Series C Warrants (the “Series C Warrants”) to purchase approximately 19,430 additional shares of the Company’s common stock. The Company allocated an estimated fair value of $27.8 million to the Series C Warrants. On April 2, 2017 the Company entered into warrant repurchase agreements with each of the investors named on the Schedule of Buyers attached to the SPA. Pursuant to the Warrant Repurchase Agreements, each investor agreed to a Controlled Account Release, in an aggregate amount equal to $7.9 million, which funds in each case are to be paid to the respective investor, in exchange for cancellation of the Series C Warrants issued to each investor under the SPA.

In October 2016, the Company completed the sale of approximately 1,215 shares of its common stock and the issuance of warrants to purchase 425 common shares (the “October 2016 Warrants”) pursuant to an underwriting agreement. The Company received proceeds of $1.2 million, with net cash proceeds after related expenses from this transaction of $1.1 million. Of those proceeds, the Company allocated an estimated fair value of $0.3 million to the October 2016 Warrants. The exercise price is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our common stock. The exercise price of the warrants is also subject to anti-dilution adjustments for any issuance of common stock or rights to acquire common stock for consideration per share less than the exercise price of the warrants. For purposes of these adjustments, dilutive issuances do not include securities issued under existing instruments, under board-approved equity incentive plans or in certain strategic transactions. At September 30, 2017, the October 2016 Warrants were exercisable at $49.00 per share with 200 warrants outstanding. The October 2016 Warrants have a five-year term.

The proceeds allocated to the 2013 Warrants, February 2015 Warrants, the July 2015 Series A Warrants, and the October 2016 Warrants (the “Warrants”) were initially classified as derivative instrument liabilities that are subject to mark-to-market adjustments each period. As a result, for the nine months ended September 30, 2017, the Company recorded pre-tax derivative instrument income

of $1.2 million. The fair value of the Warrants totaled $0.02 million at September 30, 2017. Management expects that the warrants outstanding at September 30, 2017 will either be exercised or expire worthless. The fair value of the Warrants at September 30, 2017 was determined by using option pricing models assuming the following:

~~Delcath’s~~The Company’s management, with the participation of ~~its~~our Chief Executive Officer and Interim Principal Accounting Officer, evaluated the effectiveness of the design and operation of ~~its~~the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) orand 15d-15(e) of the Exchange Act). Based on that evaluation, ~~the Company’s~~our Chief Executive Officer and Interim Principal Accounting Officer concluded that ~~Delcath’s~~our disclosure controls and procedures as of September 30, ~~2017~~2021 (the end of the period covered by this Quarterly Report on Form 10-Q), have been designed and are functioning effectively to provide reasonable assurance that the information required to be disclosed ~~by us~~ in ~~the Company’s~~our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including ~~the Company’s~~our Chief Executive Officer and Interim Principal Accounting Officer, as appropriate to allow timely decisions regarding required disclosure.

There was no change in our internal control over financial reporting (as define in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, ~~2017~~2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

From time to time, claims are made against the Company in the ordinary course of business, which could result in litigation. Claims and associated litigation are subject to inherent uncertainties and unfavorable outcomes could occur, such as monetary damages, fines, penalties, or injunctions prohibiting us from selling our products or engaging in other activities. The occurrence of an unfavorable outcome in any specific period could have a material adverse effect on our results of operations for that period or future periods.

Following the May 18, 2020 resignation (effective June 1, 2020) of Jennifer Simpson, the Company’s former President and CEO, and Barbra Keck, the Company’s former CFO (the “Claimants”), it became evident that there was a dispute regarding the Company’s compensation obligations. In a letter dated, June 29, 2020, an attorney representing the Claimants made certain claims and threatened litigation against the Company. On or about July 27, 2020, the Claimants filed a statement of claim with the American Arbitration Association against the Company. The Claimants sought payment of certain purported unpaid compensation amounts claimed to be due to them, in an approximate amount of $1,140 in the aggregate, as well as unspecified statutory damages under the New York Labor Law, attorneys’ fees and costs, and statutory interest. The Company denied any liability or wrongdoing and was vigorously defending against the claims, with contested arbitration hearings initially scheduled to commence in the week of May 17, 2021. However, the Claimants and the Company agreed to participate in non-binding mediation of their dispute before a neutral mediator, which resulted in the arbitration proceedings being placed in abeyance pending the outcome of the mediation process. With the assistance of the neutral mediator and after careful consideration by the Company’s board of directors following several weeks of negotiations, the Claimants and the Company agreed in mid-May of 2021 to a confidential settlement of their dispute to avoid the expenses and distractions of further arbitration proceedings, with no admission of liability or wrongdoing on the part of the Company. While the Company had accrued for the full purported unpaid compensation amount of $1,140 as of December 31, 2020, the Company ultimately paid less in full and final settlement of its dispute with both of the Claimants. As a result of the confidential settlement, the AAA Arbitration was dismissed with prejudice on June 1, 2021.

Delcath’s 2016 Annual Report on Form 10-K, in Part 1 – Item 1A. "Risk Factors," contains a detailed discussion of factors that could materially adversely affect our business, operating results and/or financial condition. There have been no material changes in these risk factors since such disclosure.

On July 11, 2017, we entered into an Amended and Restated Securities Purchase Agreement (the “Amended Purchase Agreement”) with certain institutional investors for the sale by the Company of 2,360 shares of Series B Preferred Stock (the “Series B Preferred Stock”) at a purchase price of $1,000 per share, in a private placement. The aggregate gross proceeds for the sale of the Series B Preferred Stock is $2.0 million. The Company intends to use the proceeds from the transaction for general corporate purposes. The restricted shares of Series B Preferred Stock have no registration rights and thus will not be eligible for legend removal for a period of at least six months from the date of closing. This Amended Purchase Agreement amends the July 5, 2017 Securities Purchase Agreement (the “Purchase Agreement”) into which we entered with certain institutional investors (the “Investors”) for the sale by the Company of 2,360 shares of Series B Preferred Stock in a registered direct offering. The Series B Preferred Stock shall be entitled to the whole number of votes equal to $2.0 million divided by $65.35 (the closing bid price on July 5, 2017, the date of sale of the Series B Preferred Stock), or 30,607 votes. The Series B Preferred Stock has no liquidation or other rights which are preferential to our common stock. The Series B Preferred Stock was redeemed for $2,360,000 in August 2017.

On September 21, 2017, we entered into a securities purchase agreement (the “SPA”) with two of our investors which had purchased certain senior secured convertible notes (the “Notes”), convertible into shares of our common stock pursuant to a certain June 6, 2016 securities purchase agreement, of $0.5 million aggregate purchase price for 590 shares of Series C Preferred Stock (the “Series C Preferred Shares”). The purchase of the Series C Preferred Stock is being made in reliance upon the exemption from registration provided by Rule 4(a)(2) of the Securities Act of 1933, as amended. The Series C Preferred Shares shall be entitled to 1,484,061 votes and may only vote on approval of a reverse split of our outstanding common stock. The Series C Preferred Stock has no dividend, liquidation or other preferential rights to our common stock, and each share of Series C Preferred Stock shall be redeemable for the amount of $1,000.00, payable in cash, per share at our written election, and must be redeemed by us no later than December 21, 2017. The Series C Preferred Stock was redeemed for $590,000 in November 2017.

On November 4, 2021, the Board of Directors of the Company appointed the Company’s Chief Executive Officer, Gerard Michel, to serve in the additional role of interim Principal Accounting Officer of the Company, effective November 15, 2021 and until such time as a permanent replacement for Ms. Christine Padula, the current interim Principal Accounting Officer, has been identified and appointed. As previously reported, on October 20, 2021, Ms. Padula informed the Company of her intention to resign as interim Principal Accounting Officer of the Company, effective November 15, 2021, to pursue a new opportunity.

On August 18, 2020 and as previously reported in the Company’s Current Report on Form 8-K filed with the SEC on that date, the Company entered into a Controlled Equity Offering^SM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell, from time to time, through Cantor Fitzgerald, as sales agent, shares of the Company’s common stock, par value $0.01 per share ( “Placement Shares”). During the Company’s fiscal year ended December 31, 2020, the Company sold a total of 77,644 Placement Shares through Cantor Fitzgerald under the Sales Agreement for which the Company received total gross proceeds of $910,000. In fiscal year 2020, Placement Shares were offered and sold pursuant to the Company’s effective “shelf” registration statement on Form S-3 (Registration Statement No. 333-227970), the base prospectus contained therein, dated December 21, 2018, and a prospectus supplement dated August 18, 2020 relating to an offering of up to $10 million of Placement Shares. Any further offers and sales of Placement Shares by the Company under the Sales Agreement will be made pursuant to the Company’s effective “shelf” registration statement on Form S-3 (Registration Statement No. 333-257428) (the “Registration Statement”), the base prospectus contained therein, dated July 2, 2021, and a prospectus supplement dated November 9, 2021 relating to an offering of up to $25 million of Placement Shares (the “ATM Offering”).

The Company has no obligation to sell any Placement Shares under the Sales Agreement. Subject to the terms and conditions of the Sales Agreement, Cantor Fitzgerald will use commercially reasonable efforts, consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations and the rules of the Nasdaq Stock Market, to sell Placement Shares from time to time based upon the Company’s instructions, including any price, time or size limits specified by the Company. Under the Sales Agreement, Cantor Fitzgerald may sell Placement Shares by any method deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. The Company will pay Cantor Fitzgerald a commission of 3.0% of the aggregate gross proceeds from each sale of Placement Shares, reimburse Cantor Fitzgerald’s legal fees and disbursements up to $50,000 and provide Cantor Fitzgerald with customary indemnification and contribution rights. The Sales Agreement may be

terminated by Cantor Fitzgerald or the Company upon notice to the other party as provided in the Sales Agreement, or by Cantor Fitzgerald at any time in certain circumstances, including the occurrence of a material and adverse change in the Company’s business or financial condition that makes it impractical or inadvisable to market the Placement Shares or to enforce contracts for the sale of the Placement Shares.

The foregoing description of the material terms of the Sales Agreement does not purport to be complete and is qualified in its entirety by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K filed with the SEC on August 18, 2020 and incorporated herein by reference.

A copy of the opinion of McCarter & English, LLP, relating to the legality of the Placement Shares, is filed as Exhibit 5.1 to this Quarterly Report on Form 10-Q and is hereby incorporated by reference into the Registration Statement.

The information herein regarding the ATM Offering shall not constitute an offer to sell or the solicitation of any offer to buy the Placement Shares, nor shall there be any offer, solicitation or sale of the Placement Shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

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

Delaware		06-1245881
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, $0.01 par value per share		DCTH		The NASDAQ Capital Market

Large accelerated filer ☐		Accelerated filer	☐

Non-accelerated filer ☐☒	~~(Do not check if a smaller reporting company)~~	Smaller reporting company	☒

		Emerging growth company	☐

		Page
PART I—FINANCIAL INFORMATION

~~Item 1.~~	~~Financial Statements (Unaudited)~~
	~~Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016~~	3
	~~Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2017 and 2016~~	4
	~~Condensed Consolidated Statement of Stockholders’ Equity (Deficit) for the nine months ended September 30, 2017~~	5
	~~Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016~~	6
	~~Notes to Condensed Consolidated Financial Statements~~	7
~~Item 2.~~	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~	19
~~Item 3.~~	~~Quantitative and Qualitative Disclosures about Market Risk~~	41
~~Item 4.~~	~~Controls and Procedure~~	43

~~PART II—OTHER INFORMATION~~

Item 1.	~~Legal Proceedings~~Financial Statements (Unaudited)	44
~~Item 1A.~~	~~Risk Factors~~Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	443
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2021 and 2020	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020	7
	Notes to the Condensed Consolidated Financial Statements	9
Item 2.	~~Unregistered Sales~~Management’s Discussion and Analysis of ~~Equity Securities~~Financial Condition and ~~Use~~Results of ~~Proceeds~~Operations	4419
Item 3.	~~Defaults upon Senior Securities~~Quantitative and Qualitative Disclosures about Market Risk	4424
Item 4.	~~Mine Safety Disclosure~~Controls and Procedures	44
~~Item 5.~~	~~Other Information~~	44
~~Item 6.~~	~~Exhibits~~	4524

~~SIGNATURES~~PART II—OTHER INFORMATION		47

Item 1.	Legal Proceedings	25
Item 5.	Other Information	25
Item 6.	Exhibits	27

SIGNATURES		29

(in thousands)	September 30, 2017			December 31, 2016
							September 30,			December 31,			Estimated
							2021			2020			Useful Life
Buildings and land	$	574		$	556		$	1,222		$	1,109		30 years - Buildings
Enterprise hardware and software		1,648			1,532			1,860			1,862		3 years
Leaseholds		1,659			1,504			1,804			1,826		Lesser of lease term or estimated useful life
Equipment		960			940			1,094			1,063		7 years
Furniture		182			354			203			204		5 years
Property, plant and equipment, gross		5,023			4,886			6,183			6,064
Accumulated depreciation		(3,770	)		(3,803	)		(4,803	)		(4,713	)
Property, plant and equipment, net	$	1,253		$	1,083		$	1,380		$	1,351

	September 30,			December 31,
	2017			2016
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	2,495		$	4,409
Restricted cash		8,362			27,287
Accounts receivables, net		298			403
Inventories		1,164			660
Prepaid expenses and other current assets		385			698
Deferred financing costs		529			699
Total current assets		13,233			34,156
Property, plant and equipment, net		1,253			1,083
Total assets	$	14,486		$	35,239

Liabilities and Stockholders' Deficit
Current liabilities
Accounts payable	$	1,891		$	594
Accrued expenses		3,755			3,407
Series C preferred shares		494			—
Convertible notes payable, net of debt discount		9,736			13,343
Warrant liability		16			18,751
Total current liabilities		15,892			36,095
Deferred revenue		—			30
Other non-current liabilities		444			604
Total liabilities		16,336			36,729

Commitments and Contingencies		—			—

Stockholders' deficit
Preferred stock, $.01 par value; 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively		—			—
Common stock, $.01 par value; 500,000,000 shares authorized; 1,426,153 and 11,805 shares issued and 1,425,862 and 11,750 shares outstanding at September 30, 2017 and December 31, 2016, respectively*		14			—
Additional paid-in capital		303,808			277,790
Accumulated deficit		(305,587	)		(279,188	)
Treasury stock, at cost; 1 share at September 30, 2017 and December 31, 2016, respectively^*		(51	)		(51	)
Accumulated other comprehensive income		(34	)		(41	)
Total stockholders' deficit		(1,850	)		(1,490	)
Total liabilities and stockholders' deficit	$	14,486		$	35,239

^*reflects a one-for-sixteen (1:16) reverse stock split effected on July 21, 2016 and a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017

	Common Stock Issued															Accumulated
	$0.01 Par Value				Treasury Stock											Other
	No. of Shares		Amount		No. of Shares			Amount			Additional Paid in Capital		Accumulated Deficit			Comprehensive loss			Total
Balance at January 1, 2017		11,805	$	—		(1	)	$	(51	)	$	277,790	$	(279,188	)	$	(41	)	$	(1,490	)
Compensation expense for issuance of stock options		—		—		—			—			48		—			—			48
Compensation expense for issuance of restricted stock		261		—		—			—			84		—			—			84
Issuance of common stock for payments made in shares on convertible note payable		1,413,790		14		—			—			25,852		—			—			25,866
Series B preferred stock dividend														(526	)					(526	)
Warrants exercised		297		—		—			—			15		—			—			15
Fair value of warrants exercised				—		—			—			19		—			—			19
Net loss		—		—		—			—			—		(25,873	)		—			(25,873	)
Total comprehensive loss		—		—		—			—			—		—			7			7
Balance at September 30, 2017		1,426,153	$	14		(1	)	$	(51	)	$	303,808	$	(305,587	)	$	(34	)	$	(1,850	)

^*reflects a one-for-sixteen (1:16) reverse stock split effected on July 21, 2016 and a one-for-three hundred and fifty (1:350) reverse stock split effected on November 6, 2017

	US			Ireland			Total
Lease cost
Operating lease cost	$	315		$	136		$	451
Sublease income		—			(132	)		(132	)
Total	$	315		$	4		$	319

Other information
Operating cash flows out from operating leases		(315	)		(136	)		(451	)
Operating cash flows in from operating leases		-			132			132
Right-of-use assets exchanged for new operating lease liabilities		-			192			192
Weighted average remaining lease term		1.3			4.8
Weighted average discount rate - operating leases		8	%		8	%

(in thousands)	Lease Liability
Reserve balance at December 31, 2016	$	820
Charges		—
Payments/Utilizations		(155	)
Reserve balance at September 30, 2017	$	665

	US			Ireland			Total
Year ended December 31, 2021	$	101		$	12		$	113
Year ended December 31, 2022		406			46			452
Year ended December 31, 2023		67			46			113
Year ended December 31, 2024		-			46			46
Year ended December 31, 2025		-			46			46
Year ended December 31, 2026		-			27			27
Total		574			223			797
Less present value discount		(33	)		(37	)		(70	)
Operating lease liabilities included in the condensed consolidated balance sheets at September 30, 2021	$	541		$	186		$	727

	September 30, 2021							December 31, 2020
	Gross		Discount			Net		Gross		Discount		Net
Loan - Avenue^[1]	$	12,638	$	(1,804	)	$	10,834	$	-	$	-	$	-

Convertible Note Payable - Rosalind	$	2,000	$	—		$	2,000	$	2,000	$	—	$	2,000
Convertible Loan Payable - Avenue		3,000		(398	)		2,602		—		—		—
	$	5,000	$	(398	)	$	4,602	$	2,000	$	—	$	2,000
^[1]The gross amount includes the 4.25% final payment of $637.5.

Remaining maturities of the Company's loan and convertible note payables are as follows:

	Loans		Convertible Notes		Total

Year ended December 31, 2021	$	-	$	-	$	-
Year ended December 31, 2022		571		143		714
Year ended December 31, 2023		6,857		1,714		8,571
Year ended December 31, 2024		5,210		3,143		8,353
Total	$	12,638	$	5,000	$	17,638

		August 6,
		2021
Contractual term (years)		5.07
Expected volatility		187.0%
Risk-free interest rate		0.77%
Expected dividends		0.00%

	Number of Shares of Common Stock		Number of Shares of Preferred Stock		Applicable Conversion Price		Reduction in Principal
January 12, 2017		11,753		—	$	126.00	$	1,478,318
January 26 - February 1, 2017¹		4,857		—	$	112.00		544,000
February 10, 2017		43,882		—	$	70.00		3,045,817
February 23 - March 2, 2017¹		2,571		—	$	49.00		126,000
March 13, 2017		117,297		—	$	38.50		4,417,830
April 10, 2017		169,061		—	$	21.00		3,621,286
May 9, 2017		109,367		—	$	17.50		1,913,915
June 7 / July 2, 2017 Exchange Agreement²		689,796		4,200	$	6.09		4,200,000
July 7, 2017		114,286		—	$	17.50		2,000,000
August 4, 2017		38,906		—	$	24.50		1,015,848
August 28, 2017 Restructuring Agreement³		117,171		—	$	10.50		1,200,000
Total		1,418,948					$	23,563,014

	Conversion price		Current interest rate	Principal
Convertible notes payable
July 2019 Notes - Rosalind (maturity date - October 30, 2024)¹	$	1,198	8.00%	$	2,000
August 2021 Note - Avenue (maturity date - August 1, 2024)	$	12	10.95%	$	3,000

(in thousands)
Convertible notes payable, principal	$	11,437
Debt discounts		(1,701	)
Net convertible note payable	$	9,736

	Number of Option			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2021		1,078,499		$	12.68
Granted		621,750			10.02
Exercised		—			—
Cancelled/Forfeited		(2,000	)		11.67
Outstanding at September 30, 2021		1,698,249		$	11.71	9.3	$	260
Exercisable at September 30, 2021		443,729		$	12.20	9.2	$	39

			Options Exercisable
Range of Exercise Prices	Outstanding Number of Options		Weighted Average Remaining Option Term (in years)		Number of Options
$9.85 - $10.99		621,750	9.9			94,445
$11.00 - $14.99		944,000		9.0		314,785
$15.00 - $24.99		132,000		9.0		34,000
$25.00 +		499	7.3			499
		1,698,249	9.2			443,729

	October 2016 Warrants		July 2015 Series A Warrants		February 2015 Warrants		October 2013 Warrants
Expected volatility		142.46%		165.32%		181.24%		227.68%
Risk-free interest rates		1.77%		1.59%		1.53%		1.33%
Expected life (in years)		4.02		2.81		2.38		1.08

	Assets and Liabilities Measured at Fair Value on a Recurring Basis
(in thousands)	Level 1		Level 2		Level 3		Balance at September 30, 2017
Liabilities
Derivative instrument liabilities	$	—	$	—	$	16	$	16

(in thousands)	Warrant Liability
Balance at December 31, 2016	$	18,751
Total change in the liability included in earnings		(1,227	)
Extinguishment of convertible note warrant		(17,489	)
Fair value of warrants issued		—
Fair value of warrants exercised		(19	)
Balance at September 30, 2017	$	16

	Warrants			Weighted Average Exercise Price		Weighted Average Remaining Life (in years)
Outstanding at January 1, 2021		4,236,687		$	9.13
Warrants issued		127,755			0.01
Warrants exercised		(469,933	)		5.88
Warrants expired		—			—
Outstanding at September 30, 2021		3,894,509		$	9.27		3.5
Exercisable at September 30, 2021		3,894,509		$	9.27		3.5

				Warrants Exercisable
Range of Exercise Prices		Outstanding Number of Warrants		Weighted Average Remaining Warrant Term (in years)	Number of Warrants
$	0.01		283,755	4.2		283,755
$	10.00		3,610,754	3.4		3,610,754
			3,894,509	3.5		3,894,509

~~Patent No.~~	~~Title~~	~~Issuance Date~~	~~Owned or Licensed~~	~~Expiration Date~~
~~7,022,097~~	~~Method For Treating Glandular Diseases and Malignancies~~	~~04/04/2006~~	~~Owned~~	~~06/24/2023~~
~~9,707,331~~	~~Apparatus For Removing Chemotherapy Compounds from Blood~~	~~07/18/2017~~	~~Owned~~	~~09/17/2034~~
~~D708749~~	~~Dual Filter~~	~~07/08/2014~~	~~Owned~~	~~07/08/2028~~
~~9,314,561~~	~~Filter and Frame Apparatus and Method of Use~~	~~04/19/2016~~	~~Owned~~	~~02/07/2034~~
~~9,541,544~~	~~A Method of Selecting Chemotherapeutic Agents for an Isolated Organ or Regional Therapy~~	~~01/10/2017~~	~~Owned~~	~~08/28/2033~~
~~8,679,057~~	~~Recovery Catheter Assembly~~	~~03/25/2014~~	~~Licensed~~	~~03/04/2031~~
~~9,265,914~~	~~Recovery Catheter Assembly~~	~~02/23/2016~~	~~Licensed~~	~~04/05/2031~~
~~9,108,029~~	~~Recovery Catheter Assembly and Method~~	~~08/18/2015~~	~~Licensed~~	~~02/09/2034~~

~~Application No.~~	~~Application Title~~	~~Filing Date~~	~~Owned or Licensed~~
~~15/651,141~~	~~Apparatus For Removing Chemotherapy Compounds from Blood~~	~~07/17/2017~~	~~Owned~~
~~15/071,896~~	~~Filter and Frame Apparatus and Method of Use~~	~~03/16/2016~~	~~Owned~~
~~15/346,239~~	~~A Method of Selecting Chemotherapeutic Agents for an Isolated Organ or Regional Therapy~~	~~11/08/2016~~	~~Owned~~
~~14/995,677~~	~~Recovery Catheter Assembly~~	~~01/14/2016~~	~~Licensed~~
~~14/797,108~~	~~Recovery Catheter Assembly and Method~~	~~07/11/2015~~	~~Licensed~~

~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Albania)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Austria)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Belgium)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Bulgaria)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Croatia)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Cyprus)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Czech Republic)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Denmark)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Estonia)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Finland)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (France)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~602012031191.6~~	~~Filter and Frame Apparatus and Method of Use (Germany)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Great Britain)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Greece)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Hungary)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Iceland)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Ireland)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Italy)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Latvia)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~
~~2797644~~	~~Filter and Frame Apparatus and Method of Use (Lithuania)~~	~~04/12/2017~~	~~Owned~~	~~12/29/2032~~

Exhibit No.		Description

~~10.1~~3.1	⁽¹⁾	~~Securities Purchase Agreement, dated as~~Amended and Restated Certificate of ~~June 6, 2016~~Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1/A filed September 25, 2019).

~~10.2~~3.2	⁽²⁾	Amendment to the Amended and Restated Certificate of Incorporation of the Company dated October 17, 2019 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form ~~of Senior Secured Convertible Note~~8-K filed on October 23, 2019).

~~10.3~~3.3	⁽³⁾	Certificate of Correction to Amendment to the Amended and Restated Certificate of Incorporation of the Company dated October 22, 2019 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form ~~of Warrant~~8-K filed on October 23, 2019).

~~10.4~~3.4	⁽⁴⁾	Amendment to the Amended and Restated Certificate of Incorporation of the Company, effective December 24, 2019 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form ~~of Security and Pledge Agreement~~8-K filed on December 30, 2019).

3.5		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Company, dated November 23, 2020 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 24, 2020).

3.6		Amended and Restated By-Laws of the Company (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to Company’s Registration Statement on Form SB-2).

5.1		Opinion of McCarter & English, LLP*

10.1		Loan and Security Agreement, dated August 6, 2021, between the Company and Avenue Venture Opportunities Fund, L.P. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

10.2		Supplement to the Loan and Security Agreement, dated August 6, 2021, between the Company and Avenue Venture Opportunities Fund, L.P. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

10.3		Warrant, dated August 6, 2021, issued by the Company to Avenue Venture Opportunities Fund, L.P. (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

10.4		Second Note Amending Amendment, dated as of August 6, 2021, between the Company and Rosalind Opportunities Fund I L.P. and Rosalind Master Fund L.P. (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

10.5		Note Amending Agreement, dated as of July 15, 2019, between the Company and Rosalind Opportunities Fund I L.P. and Rosalind Master Fund L.P. (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

10.6		8% Secured Promissory Note, dated July 15, 2019, issued by the Company to Rosalind Opportunities Fund I L.P. (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

10.7		8% Secured Promissory Note, dated July 15, 2019, issued by the Company to Rosalind Master Fund L.P. (incorporated by reference to Exhibit 10.7 to the Company’s Current Report on Form 8-K filed on August 11, 2021)

23.1		Consent of McCarter & English (included in Exhibit 5.1)*

31.1	**	Certification by ~~Principal~~Chief Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2	**	Certification by Interim Principal ~~Financial~~Accounting Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1	~~***~~	Certification ~~of Principal~~by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

32.2	~~***~~	Certification ofby Interim Principal ~~Financial~~Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

101.INS		Inline XBRL Instance ~~Document~~Document*


101.SCH		Inline XBRL Taxonomy Extension Schema ~~Document~~Document*

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase ~~Document~~Document*

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase ~~Document~~Document*

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase ~~Document~~Document*

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase ~~Document~~

~~Exhibit No.~~		~~Description~~Document*

~~10.1~~104	⁽¹⁾	~~Securities Purchase Agreement, dated~~Cover Page Interactive Data File (formatted as ~~of June 6, 2016~~Inline XBRL and contained in Exhibit 101).

~~10.2~~	⁽²⁾	~~Form of Senior Secured Convertible Note~~

~~10.3~~	⁽³⁾	~~Form of Warrant~~

~~10.4~~	⁽⁴⁾	~~Form of Security and Pledge Agreement~~

~~31.1~~	**	~~Certification by Principal Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.~~

~~31.2~~	**	~~Certification by Principal Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.~~

~~32.1~~	~~***~~	~~Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.~~

~~32.2~~	~~***~~	~~Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.~~

~~101.INS~~		~~XBRL Instance Document~~

~~101.SCH~~		~~XBRL Taxonomy Extension Schema Document~~

~~101.CAL~~		~~XBRL Taxonomy Extension Calculation Linkbase Document~~

~~101.DEF~~		~~XBRL Taxonomy Extension Definition Linkbase Document~~

~~101.LAB~~		~~XBRL Taxonomy Extension Label Linkbase Document~~

~~101.PRE~~		~~XBRL Taxonomy Extension Presentation Linkbase Document~~

~~November 14, 2017~~	DELCATH SYSTEMS, INC.
	~~(Registrant)~~

	~~/s/ Jennifer K. Simpson~~
	~~Jennifer K. Simpson~~
	~~President and Chief Executive Officer~~
	~~(Principal Executive Officer)~~


November 9, 2021	/s/ ~~Barbra C. Keck~~Gerard Michel
	~~Barbra C. Keck~~Gerard Michel
	Chief ~~Financial~~Executive Officer
	(

November 9, 2021	/s/ Christine Padula
	Christine Padula
	Interim Principal ~~Financial Officer)~~Accounting Officer