AKARI THERAPEUTICS, PLC Quarterly Report For the Period Ended

AKARI THERAPEUTICS, PLC

Quarterly Report For the Period Ended

Condensed Consolidated Financial Statements

AKARI THERAPEUTICS, Plc

CONDENSED CONSOLIDATED BALANCE SHEETS

As of March 31, 2019 and December 31, 2018

(in U.S. Dollars, except share data)

See notes to condensed consolidated financial

AKARI THERAPEUTICS, Plc

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE

For the Three Months Ended March 31, 2019

See notes to condensed consolidated financial

AKARI THERAPEUTICS, Plc

CONDENSED CONSOLIDATED STATEMENT OF CHANGES

IN SHAREHOLDERS' EQUITY - UNAUDITED

As of and for the Three Months Ended March

See notes to condensed consolidated financial

AKARI THERAPEUTICS, Plc

CONDENSED CONSOLIDATED STATEMENTS

OF CASH FLOWS - UNAUDITED

For the Three Months Ended March 31, 2019

See notes to condensed consolidated financial

AKARI THERAPEUTICS, Plc

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS - UNAUDITED

Akari Therapeutics, Plc, (the "Company"

or "Akari"), is incorporated in the United Kingdom. The Company is a clinical-stage biopharmaceutical company focused

on developing inhibitors of acute and chronic inflammation, specifically the complement system, the eicosanoid or leukotriene system

and the bioamine system for the treatment of rare and orphan diseases.

The accompanying financial statements

have been prepared in conformity with U.S. Generally Accepted Accounting Principles, assuming that the Company will continue to

operate as a going concern. As of March 31, 2019, the Company has an accumulated deficit of $129,348,930 and cash of $6,145,555.

On September 26, 2018, the Company entered into a securities purchase agreement (the "Purchase Agreement") with Aspire

Capital Fund, LLC, an Illinois limited liability company ("Aspire Capital"), which provides that, upon the terms and

subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $20.0

million of the Company's ADSs over the 30-month term of the Purchase Agreement. In consideration for entering into the Purchase

Agreement, concurrently with the execution of the Purchase Agreement, the Company issued 30,000,000 ordinary shares, par value

0.01 per share, ("Ordinary Shares") to Aspire Capital and sold to Aspire Capital 25,000,000 Ordinary Shares

for $0.02 per share (equivalent to $2.00 per ADS). On March 29, 2019, the Company sold to Aspire Capital 5,000,000 Ordinary Shares

of the Company for $0.0346 per share (equivalent to $3.46 per ADS) for gross proceeds of $173,000 (See Note 4 and Note 8).

The Company believes its current capital resources are sufficient to support its operations through the end of the second quarter

of 2019 without giving effect to the sale of additional shares to Aspire Capital under the Purchase Agreement.

The Company's activities since inception

have consisted of raising capital and performing research and development activities. As of March 31, 2019, principal commercial

operations have not commenced. The Company is subject to a number of risks similar to those of clinical stage companies, including

dependence on key individuals, uncertainty of product development and generation of revenues, dependence on outside sources of

capital, risks associated with clinical trials of products, dependence on third-party collaborators for research operations, need

for regulatory approval of products, risks associated with protection of intellectual property, and competition with larger, better-capitalized

companies. In addition, the Company is subject to risks related to an active U.S. Securities and Exchange Commission ("SEC")

For the three months ended March 31, 2019,

the Company reported a net loss of $2,545,283 and expects to continue to incur substantial losses over the next several years

during its development phase. To fully execute its business plan, the Company will need, among other things, to complete its research

and development efforts and clinical and regulatory activities. These activities may take several years and will require significant

operating and capital expenditures in the foreseeable future. There can be no assurance that these activities will be successful.

If the Company is not successful in these activities or there is not a favorable resolution of the SEC investigation, it could

delay, limit, reduce or terminate preclinical studies, clinical trials or other research and development activities. To fund its

capital needs, the Company plans to raise funds through equity or debt financings or other sources, such as strategic partnerships

and alliance and licensing arrangements, and in the long term, from the proceeds from sales. Additional funds may not be available

when the Company needs them, on terms that are acceptable to it, or at all. These matters raise substantial doubt about the Company's

ability to continue as a going concern. The financial statements do not include any adjustments to the carrying amounts and classifications

of assets and liabilities that would result if the Company was unable to continue as a going concern.

Basis of Presentation -

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial

information and the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes

required by U.S. GAAP for complete financial statements. These financial statements have been prepared on the same basis as the

Company's annual financial statements and, in the opinion of management, reflect all adjustments, including normal and recurring

adjustments, which the Company considers necessary for the fair presentation of financial information. The results of operations

and comprehensive loss for the three months ended March 31, 2019 and March 31, 2018, are not necessarily indicative of expected

results for the full fiscal year or any other period.

Principles of Consolidation -

The Condensed Consolidated Financial Statements include the accounts of the Company and Volution Immuno Pharmaceuticals SA, a private

Swiss company, its wholly-owned subsidiary. All intercompany transactions have been eliminated.

AKARI THERAPEUTICS, Plc

NOTES TO CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS - UNAUDITED

Foreign Currency - The functional

currency of the Company is U.S. dollars as that is the primary economic environment in which the Company operates as well as the

currency in which it has been financed.

The reporting currency of the

Company is U.S. Dollars. The Company translated its non-U.S. operations' assets and liabilities denominated in foreign currencies

into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange

rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded as foreign currency

translation adjustments, a component of accumulated other comprehensive loss. Gains or losses from foreign currency transactions

are included in foreign currency exchange gains/(losses).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that may

affect the reported amounts of assets, liabilities, equity, revenue, expenses and related disclosure of contingent assets and liabilities.

Management's estimates and judgments include assumptions used in the evaluation of impairment and useful lives of intangible

assets (patents), accrued liabilities, deferred income taxes, liabilities related to stock options, stock-based compensation and

various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from those estimates

under different assumptions or conditions.

Fair Value Measurements

- The carrying amounts of financial instruments, including cash, restricted cash, accounts payable and accrued expenses approximate

fair value due to their short-term maturities.

The Company's liabilities