BIOFRONTERA INC. : Entry into a Material Definitive Agreement, Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)

Item 1.01 Entry into a Material Definitive Agreement

On March 31, 2022, Biofrontera Inc. (the "Company") entered into an Amended Settlement Allocation Agreement (the "Allocation Agreement") between the Company and Biofrontera AG in connection with the previously disclosed settlement on November 29, 2021 of the lawsuit brought against Biofrontera AG and its subsidiaries, including the Company, in March 2018 by DUSA Pharmaceuticals, Inc. ("DUSA") and certain of its affiliates. Under the settlement agreement with DUSA, the Company and Biofrontera AG are jointly and severally liable for an aggregate payment of $22.5 million to DUSA, payable in three installments, to settle the claims of the lawsuit. The Company and Biofrontera AG had agreed at the time they entered into the settlement agreement that they would each be responsible for $11.25 million of the aggregate settlement amount. Biofrontera AG is a significant shareholder of the Company, its former parent and the licensor of the Company's principal licensed product, Ameluz®.

Under the terms of the Allocation Agreement, the Company and Biofrontera AG agreed that the Company will pay the full amount of each installment under the settlement agreement to DUSA when such installment is due. Biofrontera AG agrees to reimburse the Company for half of each such installment no later than January 31st of the year following such installment. The Company paid the full amount of first installment under the settlement agreement in December 2021 and, thus, the first reimbursement was due on January 31st, 2022. As of the date of this report, Biofrontera AG has not paid the first reimbursement amount to the Company.

The Allocation Agreement provides certain remedies to the Company, if Biofrontera AG fails to make timely reimbursements, which the Company may implement in its sole discretion, including the ability to charge interest at a rate of 6.0% per annum for each day that any reimbursement is past due and the ability to offset any overdue reimbursement amounts against payments owed to Biofrontera AG by the Company (including amounts owed under the Company's license and supply agreement for Ameluz®).

This description of the Allocation Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Allocation Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;

          Appointment of Certain Officers; Compensatory Arrangements of Certain
          Officers

On April 1, 2022, Erica Monaco and the Company entered into an amendment (the "Amendment") to her employment agreement. The Amendment is effective as of April 1, 2022 and amends her compensation as follows:

Base Salary: Ms. Monaco's annual base salary will be increased to $450,000 from $300,000.

Cash Bonus: Ms. Monaco will now be eligible to receive a cash bonus of up to 60% of her base salary upon the attainment of performance goals set in advance by the Board; whereas she had been previously eligible to receive a cash bonus of up to 30% of her base salary. The actual amount of any bonus shall depend upon the level of achievement of set targets, however no bonus shall be paid if the level of target achievement is below 70%.

The remainder of Ms. Monaco's Employment Agreement, which was previously filed with the Securities and Exchange Commission, remains in full force and effect.

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the copy of the Amendment filed as Exhibit 10.2 to this report and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

10.1     Amended Settlement Allocation Agreement dated as of March 31, 2022
       between the Company and Biofrontera AG
10.2     Amendment to Employment Agreement effective as of April 1, 2022 - Erica
       Monaco
104    Cover Page Interactive Data File (the cover page XBRL tags are embedded
       within the inline XBRL document)

© Edgar Online, source Glimpses