Diffusion Pharmaceuticals : H.C. Wainwright BIOCONNECT Conference Presentation

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New Treatments for Hypoxia

Corporate Presentation for

HC Wainwright BIOCONNECT Conference

January 11-14, 2021

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Note Regarding Forward-Looking Statements

This presentation (including, for purposes of this Note Regarding Forward-Looking Statements, any accompanying or supplemental oral presentation) includes express and implied forward-looking statements relating to: our product candidates and pipeline; our corporate strategy and product development plans; the prospects and potential of our business and our product candidates, including their safety, effectiveness, and commercial prospects; our ongoing and anticipated clinical trials, other studies, and data readouts therefrom; certain regulatory matters; business development activities, including potential collaborations; certain matters regarding our financial results and securities; milestones, timing, and other expectations regarding any of the foregoing; any other matter that is not a statement of historical fact, including statements regarding our intentions, beliefs, projections, outlook, analyses, or expectations. We may, in some cases, use terms such as "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," "approximately," or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements.

By their nature, forward-looking statements relate to events, competitive dynamics, and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated, and therefore inherently involve risks and uncertainties, including those discussed under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission. Although we believe that we have a reasonable basis for each forward-looking statement contained in this presentation, as a result of these and other factors, known and unknown, actual results could differ materially from our intentions, beliefs, projections, outlook, analyses, or expectations expressed in any forward-looking statements in this presentation. Accordingly, we cannot assure you that the forward-looking statements contained in this presentation will prove to be accurate or that any such inaccuracy will not be material, and you should not place undue reliance on such statements.

Unless the context requires otherwise, all forward-looking statements that we make in this presentation are based on our beliefs and expectations as of, and speak only as of, the first date set forth on the cover page hereof and, except as required by applicable law or by the rules and regulations of the SEC, we undertake no obligation to update such statements to reflect events or circumstances after such date.

Certain information contained in this presentation relates to or is based on studies, publications, surveys, and other data derived from third-party sources and our own internal estimates and research. While we believe these third-party sources to be reliable as of the date of this presentation, we have not independently verified, and we make no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this presentation involve a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, although we believe our own internal research is reliable, such research has not been verified by any independent source.

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2020 Company Highlights

Board and Management

Changes

• August: New Director (Jane Hollingsworth)
• September: New CEO (Robert Cobuzzi, PhD) and General Counsel (William Elder)
• October: New CMO (Christopher Galloway, MD)

Financial Stability

• Cash and cash equivalents of $21.9 million as of September 30, 2020, and no debt
• Expected ability to fund anticipated operating and capital expenditures into 4Q2022

TSC Development

Program Updates

• Safety and tolerability study in COVID-19 patients started September 2020; enrollment continues with no dose-limiting toxicities to-date
• Commenced design of clinical studies to demonstrate improved oxygenation and optimize dosing

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