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 June 30, 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 June 30, 2019

See notes to condensed consolidated financial

AKARI THERAPEUTICS, Plc

CONDENSED CONSOLIDATED STATEMENT OF CHANGES

IN SHAREHOLDERS' (DEFICIT) EQUITY - UNAUDITED

As of and for the Three and Six Months Ended

June 30, 2019 and 2018

See notes to condensed consolidated financial

AKARI THERAPEUTICS, Plc

CONDENSED CONSOLIDATED STATEMENTS

OF CASH FLOWS - UNAUDITED

For the Six Months Ended June 30, 2019 and

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 June 30, 2019, the Company has an accumulated deficit of $133,466,014 and

cash of $2,736,663. 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 gross proceeds of $500,000. In addition to the foregoing issuances

to Aspire Capital, during the six months ended June 30, 2019, the Company sold to Aspire Capital 70,000,000 Ordinary Shares

of the Company for gross proceeds of approximately $1,543,000 (See Note 4). Subsequent to June 30, 2019, the Company sold

additional shares to Aspire Capital (See Note 8). The Company believes its current capital resources are sufficient to

support its operations through the end of the third 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 June 30, 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 and six months ended June

30, 2019, the Company reported a net loss of $4,117,084 and $6,662,367, respectively, 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 and six months ended June 30, 2019 and June 30, 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.