VOLUTION IMMUNO PHARMACEUTICALS SA AND AFFILIATE TABLE OF CONTENTS As of and for the Six Months Ended

IMMUNO PHARMACEUTICALS SA

As of and for the Six Months Ended June

See notes to combined and consolidated financial

See notes to combined and consolidated financial

See notes to combined and consolidated financial

See notes to combined and consolidated financial

VOLUTION IMMUNO PHARMACEUTICALS SA

Notes to COmbined and consolidated Financial Statements - unaudited

Volution Immuno Pharmaceutical

SA (the "Company"), was incorporated in Switzerland as a private limited company and commenced business operations on

The Company is a clinical stage

biotechnology company, and is focused on developing anti-complement and anti-inflammatory molecules as treatments for a wide range

of rare and orphan conditions in the autoimmune and inflammatory diseases sectors.

On October 23, 2013, Varleigh

Immuno Pharmaceuticals Ltd ("Varleigh"), a UK limited company, transferred its drug rights patent to vasoactive amine

binding molecules to the Company in exchange for a payment of approximately $107,000, (GBP 65,000), which was the carrying value

of the patents in accordance with local accounting standards.

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. Successful completion of the Company's

development program and, ultimately, the attainment of profitable operations is dependent upon future events, including obtaining

adequate financing to fulfill its development activities and achieving a level of revenues adequate to support the Company's

cost structure. There are no assurances that the Company will be able to obtain additional financing on favorable terms, or at

all or successfully market its products.

The Company has operated at

a loss since its inception and has had no revenues. The Company anticipates that losses will continue for the foreseeable future.

At June 30, 2015, the Company had $201,444 of cash and cash equivalents available to fund future

The Company to date has financed

its operations primarily through the equity and debt financing of its shareholders. The Company will continue to be dependent upon

such sources of funds until it is able to generate positive cash flows from its operations.

As discussed in Note 9, on September 18,

2015, the Company was acquired by Celsus Therapeutics and closed a private placement financing and the Company received proceeds

in the amount of $75 million, which is sufficient to fund operations for the next twelve months from the date of this report.

The accompanying consolidated

financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP").

VOLUTION IMMUNO PHARMACEUTICALS SA

Notes to COmbined and consolidated Financial Statements - unaudited

Principles of Combination

and Consolidation - The combined financial statements include the accounts of the Company, its subsidiary Volution Immuno Pharmaceuticals

UK and Varleigh Immuno Pharmaceuticals Ltd., which was dissolved on September 12, 2014.

All intercompany transactions

have been eliminated.

Currency - The functional currency

of the Company was Swiss Francs, as that is was the primary economic environment in which the Company operated. The

functional currency of Varleigh was the British Pound.

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 income. Gains or losses from foreign currency transactions are included

in other expense (income), net.

Use of Estimates - The

preparation of financial statements in conformity with accounting principles generally accepted in the United States of America

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 impairment and useful lives of intangible assets, accrued liabilities, deferred income taxes and various other assumptions

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

Fair Value Measurements

- The carrying amounts of financial instruments, including cash and cash equivalents, accounts payable, and loans payable shareholders

approximate fair value due to their short-term maturities.

Cash and Cash Equivalents

- The Company considers all highly-liquid investments with original maturities of 90 days or less at the time of acquisition to

be cash equivalents. The Company had no cash equivalents at June 30, 2015 and December 31, 2014.

Prepaid Expenses and Other

Current Assets - Prepaid expenses and other assets consist principally of VAT receivables and prepaid expenses.

- The Company reviews all long-lived assets for impairment whenever events or circumstances indicate the carrying amount of

such assets may not be recoverable. Recoverability of assets to be held or used is measured by comparison of the carrying

value of the asset to the future undiscounted net cash flows expected to be generated by the asset. If such asset is

considered to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset

exceeds the discounted future cash flows expected to be generated by the asset.

VOLUTION IMMUNO PHARMACEUTICALS SA

Notes to COmbined and consolidated Financial Statements - unaudited

Patent Acquisition Costs

- Patent acquisition costs and related capitalized legal fees are amortized on a straight-line basis over the shorter of

the legal or economic life. The estimated useful life is twenty two years.

The Company expenses costs associated

with maintaining and defending patents subsequent to their issuance in the period incurred.

Accrued Expenses - As part of the

process of preparing the consolidated financial statements, it requires the estimate of accrued expenses. This process involves

identifying services that third parties have performed on the Company's behalf and estimating the level of service performed

and the associated cost incurred on these services as of each balance sheet date in our consolidated financial statements. Examples

of estimated accrued expenses include contract service fees in conjunction with pre-clinical and clinical trials and professional

service fees In connection with these service fees, our estimates are most affected by our understanding of the status and timing

of services provided relative to the actual services incurred by the service providers. In the event that we do not identify certain

costs that have been incurred or we under or over-estimate the level of services or costs of such services, our reported expenses

for a reporting period could be understated or overstated. The date on which certain services commence, the level of services performed

on or before a given date, and the cost of services are often subject to our judgment. We make these judgments based upon the facts

and circumstances known to us in accordance with accounting principles generally accepted in the U.S.

Research and Development