11.Related Party Transactions

While the Company was owned by Adynxx, the Company was included within the consolidation process of Adynxx. The Company’s operating losses of $1.89 million in the year ending December 31, 2018 were included within Adynxx’s financial results.

All significant intercompany transactions and related party transactions between the Company and Adynxx have been included in these financial statements, as these statements were prepared on a “carve-out basis” prior to the Spin-Off. Net cash provided by Adynxx for operations during the year ended December 31, 2019 was $1.35 million of cash advances. For the year ended December 31, 2018, cash flows from our Adynxx was $1.54 million, all of which were cash advances. The total net effect of the settlement of these transactions detailed above is reflected in the Statements of Cash Flows as a financing activity and in the Balance Sheets as parent’s net investment of $0 and $281 thousand as of December 31, 2019 and 2018, respectively.