Palatin Technologies(PTN)2024-09-30 20:31Financial Performance - For the fiscal year ended June 30, 2024, the company recognized $4,490,090 in product revenue, a decrease from $4,850,678 in fiscal 2023, primarily due to the sale of Vyleesi's worldwide rights to Cosette Pharmaceuticals[69]. - The company recorded a gain of $7,781,844 on the sale of Vyleesi, which included an upfront purchase price of $9,500,000[69]. - Total revenues for the year ended June 30, 2024, were $4,490,090, a decrease of 7.5% from $4,853,678 for the year ended June 30, 2023[82]. - The net loss for the year ended June 30, 2024, was $29,736,113, compared to a net loss of $24,036,741 for the year ended June 30, 2023, representing an increase in losses of approximately 23%[85]. - Basic and diluted net loss per common share was $(2.02), an improvement from $(2.21) in the prior year[82]. - The accumulated deficit increased from $(412,030,437) in 2023 to $(441,766,550) in 2024[81]. Expenses and Costs - Total operating expenses decreased to $26,986,211 from $37,312,561, reflecting a reduction of approximately 27.5%[82]. - Selling, general and administrative expenses decreased to $12,270,046 in fiscal 2024 from $15,290,836 in fiscal 2023, largely due to reduced selling expenses related to Vyleesi[69]. - Total research and development expenses for fiscal 2024 were $22,400,372, slightly down from $22,630,577 in fiscal 2023, with specific spending on MCr programs decreasing from $16,202,432 to $15,512,149[69]. - The company incurred a net cash used in operating activities of $31,461,441 for the year ended June 30, 2024, compared to $29,271,346 for the previous year, indicating a 7.4% increase in cash outflows[85]. Cash and Liquidity - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $9,527,396 against current liabilities of $9,657,681[72]. - Cash and cash equivalents increased from $7,989,582 in 2023 to $9,527,396 in 2024, an increase of approximately 19.3%[80]. - The company had cash and cash equivalents of $9,527,396 and current liabilities of $9,657,681 as of June 30, 2024, indicating potential liquidity issues[87]. - The company anticipates needing substantial additional financing or revenues to fund its planned product development activities[87]. Funding and Financing - The company raised $20,548,891 in net cash from financing activities during the year, compared to $10,748,591 in the previous year, reflecting a 91% increase[86]. - The company is evaluating strategies to obtain additional funding, including equity financing and issuing debt[44]. - The company will need additional funding to complete required clinical trials and regulatory applications to the FDA[44]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[82]. Assets and Liabilities - Total current liabilities decreased from $15,131,830 in 2023 to $9,657,681 in 2024[81]. - The total assets decreased from $17,939,440 in 2023 to $10,742,266 in 2024[81]. - Total liabilities decreased from $19,655,911 in 2023 to $10,853,763 in 2024, representing a reduction of about 44.7%[81]. - The company has aggregate lease obligations of $426,556 for the year ending June 30, 2025, and $163,782 for the years ending June 30, 2026 and 2027[44]. Research and Development - Cumulative spending on the Vyleesi program reached approximately $311,900,000, while spending on other programs totaled around $234,000,000[69]. - The company is developing new product candidates, including a co-formulation of bremelanotide with a PDE5i for erectile dysfunction, which is currently in development[87]. - Research and development costs are charged to expense as incurred, including equipment costs with no alternative future use[93]. Stock and Equity - The company issued 1,831,503 shares of common stock at a combined offering price of $5.46 during the January 2024 Offering[113]. - The October 2023 Offering generated net proceeds of $4,573,948 after deducting placement agent fees and offering expenses[114]. - The company recorded stock-based compensation related to stock options of $873,633 for the year ended June 30, 2024, an increase from $794,735 in the previous year[120]. - The total outstanding restricted stock units increased to 1,374,980 as of June 30, 2024, up from 987,521 in the previous year[121]. Tax and Valuation - The Company has recorded a full valuation allowance against its deferred tax assets due to a history of losses and uncertainty in projecting future revenues[94]. - The valuation allowance against deferred tax assets increased by $11,193,000 for the year ended June 30, 2024, compared to an increase of $5,653,000 for the year ended June 30, 2023[124]. - The Company’s net deferred tax assets were fully offset by a valuation allowance of $62,709,000 as of June 30, 2024[125]. Operational Challenges - The company has incurred operating losses and negative cash flows from operations since inception, raising substantial doubt about its ability to continue as a going concern[76]. - The company is evaluating strategies to obtain additional funding, including equity financing and cost reductions[88]. - The company identified a material weakness in controls over accounting for complex financial instruments, specifically regarding the valuation of warrant liability[125].