On August 23, 2022, Acura Pharmaceuticals, Inc. (“we” “Acura” or the “Company”), received a $250,000 loan from John Schutte and to date, and have received a total of $1,525,000. In connection with the $250,000 loan, it issued an unsecured promissory note, or the Schutte Note, in that principal amount to him. The Schutte Note bears interest at 5.25%, and matures on December 31, 2023, at which time all principal and interest is due.

Events of default under the Schutte Note include, among other items, bankruptcy events, failure to pay interest and principal when due and such failure continues for 5 days, and if Acura is generally not, or is unable to, or admits in writing its inability to, pay its debts as they become due. If any amount payable hereunder is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration, or otherwise, including upon an event of default, such overdue amount shall bear interest at the rate per annum of 7.5% from the date of such non-payment until such amount is paid in full. The funding provided by Mr. Schutte will be used for operations over the course of the next several weeks.

There can be no assurance it will be successful in receiving additional financing. In the absence of the receipt of additional financing by late September 2022, it will be required to scale back or terminate operations and/or seek protection under applicable bankruptcy laws. This could result in a complete loss of shareholder value in the Company.

Even assuming it are successful in securing additional sources of financing to fund continued operations, there can be no assurance that the proceeds of such financing will be sufficient to fund operations until such time, if at all, that it generate sufficient revenue from products and product candidates to sustain and grow operation.