Note 1 – Organization and Description of Business

Akers Biosciences, Inc. (“Akers”), is a New Jersey corporation. These consolidated financial statements include three wholly owned subsidiaries, Cystron Biotech, LLC, Akers Acquisition Sub, Inc. and Bout Time Marketing Corporation, (together, the “Company”). All material intercompany transactions have been eliminated in consolidation.

On March 23, 2020, the Company entered into a Membership Interest Purchase Agreement (the “MIPA”) with the members of Cystron Biotech, LLC (individually, each a “Seller,” and collectively, the “Sellers”), pursuant to which the Company acquired 100% of the membership interests (the “Membership Interests”) of Cystron Biotech, LLC (“Cystron”). Cystron is a party to a license agreement with Premas Biotech PVT Ltd (“Premas”), whereby Premas granted Cystron, among other things, an exclusive license with respect to Premas’ vaccine platform for the development of a vaccine against COVID-19 and other coronavirus infections.

The Company continues to sell its rapid, point-of-care screening and testing products, but at continued reduced volumes compared to prior years. As a result, the Company continues to experience low sales revenue from its screening and testing products. The Company is also experiencing a production backlog for some of its screening and testing products, which will further reduce its sales revenue. In addition, as the Company previously reported, the Company has eliminated its sales force for its screening and testing products. In light of these facts and the progress that the Company has made in its partnership with Premas for the development of a vaccine candidate for COVID-19, as previously announced, the Company recently initiated a strategic review of the screening and testing products business. As part of this review, the Company is exploring potential strategic and alternative transactions, which may include the disposition or winddown of its screening and testing products business. As a result, the makeup of the Company’s lines of business is subject to change.