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Talphera(TLPH) - 2024 Q3 - Quarterly Report
TLPHTalphera(TLPH)2024-11-13 22:15

Financial Performance - Total revenue for the three months ended September 30, 2024, was 117,000,comparedto117,000, compared to 370,000 for the same period in 2023, representing a decrease of approximately 68.4%[13] - The net loss for the three months ended September 30, 2024, was 3,353,000,comparedtoanetlossof3,353,000, compared to a net loss of 1,357,000 for the same period in 2023, indicating a worsening of 146.5%[13] - Basic and diluted loss per share for continuing operations was (0.13)forthethreemonthsendedSeptember30,2024,comparedto(0.13) for the three months ended September 30, 2024, compared to (0.08) for the same period in 2023[13] - As of September 30, 2023, the company reported a net loss of 1,357,000,withtotalequityamountingto1,357,000, with total equity amounting to 18,307,000[15] - For the nine months ended September 30, 2023, the net loss was 13,880,000,withcashusedinoperatingactivitiestotaling13,880,000, with cash used in operating activities totaling 10,429,000[16] - The company recognized a net loss from discontinued operations of 8.098millionfortheninemonthsendedSeptember30,2023,withtotalrevenuesof8.098 million for the nine months ended September 30, 2023, with total revenues of 501,000 during the same period[47] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2024, were 5,395,000,anincreaseof42.85,395,000, an increase of 42.8% from 3,777,000 for the same period in 2023[13] - Total operating costs and expenses for the three months ended September 30, 2024, were 3,749,000,comparedto3,749,000, compared to 3,426,000 for the same period in 2023, reflecting an increase of 9.4%[13] - The Company recorded total stock-based compensation expense of 234,000forthethreemonthsendedSeptember30,2024,comparedto234,000 for the three months ended September 30, 2024, compared to 378,000 for the same period in 2023[79] Equity and Liabilities - Total stockholders' equity decreased to 9,641,000asofSeptember30,2024,downfrom9,641,000 as of September 30, 2024, down from 14,105,000 as of December 31, 2023[10] - The accumulated deficit increased to (455,360,000)asofSeptember30,2024,comparedto(455,360,000) as of September 30, 2024, compared to (444,226,000) as of December 31, 2023[10] - The company reported total liabilities and stockholders' equity of 21,014,000asofSeptember30,2024,comparedto21,014,000 as of September 30, 2024, compared to 20,395,000 as of December 31, 2023[10] Cash and Financing Activities - The company had cash and cash equivalents of 11,117,000attheendofthereportingperiod,downfrom11,117,000 at the end of the reporting period, down from 20,275,000 at the beginning of the period[16] - The company raised 8,924,000fromaprivateplacementofferinginJuly2023,contributingtonetcashprovidedbyfinancingactivitiesof8,924,000 from a private placement offering in July 2023, contributing to net cash provided by financing activities of 12,044,000 for the nine months ended September 30, 2023[16] - The Company entered into a private placement on January 17, 2024, resulting in aggregate gross proceeds of 6.0millionupfront,withanadditional6.0 million upfront, with an additional 10.0 million contingent upon positive clinical trial results for the NEPHRO CRRT study of Niyad[65] - The first tranche of the private placement closed on January 22, 2024, generating approximately $6.0 million for pre-funded warrants to purchase up to 7,792,208 shares of common stock[66] Product Development and Strategy - The company is focused on advancing the development of its lead product candidate, Niyad™, and aims to secure regulatory approval and commercialization[6] - The company is focused on developing Niyad™, a regional anticoagulant, and LTX-608, a nafamostat formulation, for various medical indications[18][21] - The company completed an asset acquisition agreement for the DSUVIA product on April 3, 2023, which included the transfer of certain assets and liabilities[20] Risks and Concerns - The company faces significant risks including market volatility, supply chain disruptions, and the ability to obtain necessary financing for ongoing operations[6] - The company has incurred recurring operating losses and negative cash flows since inception, raising concerns about its ability to continue as a going concern[23] - The Company may need to reduce its workforce or delay clinical trials if adequate funds are not available[25] Accounting and Financial Reporting - The Company is evaluating the impact of recently issued accounting standards but does not expect them to materially affect its consolidated financial statements[36] - Management's significant accounting estimates include fair value of warrants and impairment of long-lived assets, which could differ from actual results[28] - The effective interest rate for the liability related to the sale of future payments will be reassessed at each reporting date[33] Stock and Equity Compensation - The Company amended its 2020 Equity Incentive Plan to increase the number of authorized shares by 1,171,395, bringing the total to 3,161,395 shares[72] - The Company granted stock-based awards totaling 217,000 shares to a new employee as an inducement for employment in May 2024[73] - The Company amended its 2011 Employee Stock Purchase Plan to increase the number of authorized shares by 100,000, resulting in a total of 345,000 shares available for issuance[74] - As of September 30, 2024, the total stock options outstanding increased to 1,879,806, with a weighted average remaining contractual life of 7.7 years[81] Litigation - The Company believes ongoing litigation is without merit and intends to defend against it, but cannot estimate potential losses due to the uncertainty of litigation outcomes[64]