Pulmatrix(PULM) - 2024 Q4 - Annual Report

Product Development - The company is focused on developing novel inhaled therapeutic products for migraine and respiratory diseases using its patented iSPERSE technology[313]. - The current product pipeline includes PUR3100 for acute migraine, PUR1800 for acute exacerbations of COPD, and PUR1900 for ABPA in asthma and cystic fibrosis patients[320]. - PUR3100 has received FDA acceptance for its IND application and is positioned for a Phase 2 clinical study, with a study may proceed letter received in September 2023[333]. - The Phase 1 study of PUR3100 demonstrated a lower incidence of nausea (21% vs. 86%) and vomiting (0% vs. 29%) compared to IV DHE, indicating improved tolerability[336]. - The company is exploring monetization opportunities for PUR1800, which targets p38 MAP kinases and is being developed for AECOPD treatment[338]. - PUR1800 has completed a Phase 1b study showing it was well tolerated with no safety signals, supporting its continued development for AECOPD[341]. - The company is committed to expanding its intellectual property portfolio and seeking partnerships to support product development and commercialization[327]. Financial Performance - Revenues for the year ended December 31, 2024, were $7.8 million, an increase of$0.5 million from $7.3 million in 2023, primarily due to a contract modification of the Cipla Agreement[359]. - Research and development expenses decreased to$7.2 million in 2024 from $15.5 million in 2023, a reduction of approximately$8.4 million, mainly due to decreased spending on the PUR1900 program[360]. - General and administrative expenses increased to $7.8 million in 2024 from$6.5 million in 2023, an increase of approximately $1.3 million, driven by higher legal and professional service costs[361]. - The loss on the MannKind Transaction was$2.6 million in 2024, compared to no such loss in 2023, related to the assignment of the long-term lease of the Bedford facility[362]. - The accumulated deficit as of December 31, 2024, was $297.2 million, primarily due to research and development and general administrative expenses[363]. - Cash and cash equivalents as of December 31, 2024, totaled$9.5 million, expected to fund operating expenses for at least the next 12 months[365]. - Net cash used in operating activities for 2024 was $10.7 million, compared to$16.0 million in 2023, reflecting a decrease in cash outflows[368][369]. - The company will receive 2% royalties on any potential future net sales by Cipla outside the United States[348]. - The company completed all Phase 2b wind down activities in the third quarter of 2024, eliminating further financial responsibility for commercialization in the Cipla Territory[348]. - The company anticipates needing additional capital to fund operations and continue development of its iSPERSE pipeline programs[364]. Capital and Financing - The company entered into a Merger Agreement with Cullgen Inc. on November 13, 2024, subject to stockholder approvals and other customary conditions[316]. - The Merger aims to combine the businesses of Pulmatrix and Cullgen, with the potential to enhance the combined company's capabilities and market position[317]. - No net cash was provided by financing activities for the year ended December 31, 2024; however, in 2023, net cash provided resulted from proceeds from the issuance of common stock under the Sales Agreement[371]. - The Company entered into an At-The-Market Sales Agreement to issue and sell up to $20.0 million of common stock, but the actual amount that can be raised is limited until the public float exceeds$75,000,000[373]. - During the year ended December 31, 2023, the Company sold 13,100 shares of common stock at a weighted-average price of approximately $4.25 per share, resulting in net proceeds of approximately$53 thousand[375]. Industry Risks - The Company faces risks and uncertainties common to the biopharmaceutical industry, including the need for significant additional capital for product development and regulatory approvals[376].