Agile Therapeutics(US:AGRX)2024-08-12 20:30Financial Performance - For the three months ended June 30, 2024, net sales totaled $5.6 million, representing a slight increase from $5.5 million in the same period of 2023, with unit sales of 62,346 and 61,770 respectively[175]. - For the six months ended June 30, 2024, net sales reached $11.3 million, up from $9.3 million in 2023, with unit sales of 133,008 compared to 105,216 in the prior year[175]. - The company reported a net loss of $11.9 million for the three months ended June 30, 2024, compared to a net loss of $3.8 million for the same period in 2023[163]. - As of June 30, 2024, the company had an accumulated deficit of $433.8 million[163]. - Net revenue for Q2 2024 increased by $0.1 million, or 1%, to $5.6 million compared to $5.5 million in Q2 2023[191]. - For the six months ended June 30, 2024, net revenue increased by $2.0 million, or 21%, to $11.3 million compared to $9.3 million in the same period of 2023[201]. - The loss from operations for Q2 2024 was $2.7 million, an improvement of $2.4 million compared to a loss of $5.1 million in Q2 2023[191]. Expenses - Research and development expenses for Q2 2024 were approximately $0.5 million, a decrease of 23% from $0.7 million in Q2 2023[181]. - Selling and marketing expenses for Q2 2024 totaled approximately $3.8 million, down 17% from $4.6 million in Q2 2023[184]. - General and administrative expenses for Q2 2024 were approximately $2.5 million, a decrease of 18% from $3.0 million in Q2 2023[188]. - Total operating expenses for Q2 2024 were $6.8 million, a decrease of 18% from $8.3 million in Q2 2023[191]. - Research and development expenses decreased by $0.4 million, or 30%, from $1.5 million for the six months ended June 30, 2023, to $1.0 million for the six months ended June 30, 2024[203]. - Selling and marketing expenses decreased by $1.8 million, or 19%, from $9.2 million for the six months ended June 30, 2023, to $7.5 million for the six months ended June 30, 2024[204]. - General and administrative expenses decreased by $1.0 million, or 16%, from $6.1 million for the six months ended June 30, 2023, to $5.1 million for the six months ended June 30, 2024[205]. - Interest expense decreased by $0.6 million, or 76%, from $0.8 million for the six months ended June 30, 2023, to $0.2 million for the six months ended June 30, 2024[206]. Cash and Financing - As of June 30, 2024, the company had cash and cash equivalents of $2.8 million, expected to support operations through September 2024[168]. - Net cash used in operating activities was $2.2 million for the six months ended June 30, 2024, compared to $10.1 million for the same period in 2023[210]. - Net cash provided by financing activities for the six months ended June 30, 2024, was $2.5 million, compared to $8.1 million for the same period in 2023[212]. - At June 30, 2024, cash and cash equivalents totaled $2.8 million[208]. - The company raised net proceeds of $6.5 million through the sale of 1,896,286 shares of common stock in the May 2023 Offering[221]. Merger and Agreements - The company has entered into a merger agreement with Insud Pharma, S.L., with each share of common stock to be converted into $1.52 in cash[157]. - The merger is subject to approval by a majority of the outstanding shares at a special meeting scheduled for August 22, 2024[158]. - The company has a line of credit available up to $8.0 million from Insud, with an initial loan advance of $6.5 million made on July 1, 2024[159]. - The minimum committed amount under the Corium Agreement totals $206.7 million for the 10-year period from 2024 through 2033[227]. - The guaranteed minimum revenue requirement for 2024 has been reset to $10.0 million, with a potential increase to $22.5 million per year if the Merger is not consummated[227]. - The Syneos Agreement has a minimum commitment of $2.4 million as of June 30, 2024, with the agreement set to expire on August 23, 2024[231]. - The operating lease commitment for office space in Princeton, New Jersey totals $0.3 million over the remaining 12-month term as of June 30, 2024[231]. - The company did not meet all minimum quantity purchases from Corium in 2021, resulting in penalties as per the agreement[227]. - The Corium Agreement has been amended to extend its term until December 31, 2033, with automatic termination unless mutually agreed otherwise[227]. - The Syneos Agreement was amended on February 1, 2022, to extend its term until August 23, 2024[228]. - The company has the ability to terminate the Syneos Agreement without incurring a termination fee upon timely written notice[228]. Operational Outlook - The company plans to continue its commercialization efforts for Twirla, focusing on increasing uptake through digital advertising and partnerships[164]. - The company has never been profitable since its inception in 1997 and anticipates continued operating losses as it commercializes Twirla[163]. - The company expects to incur significant operating expenses to support the commercialization of Twirla and maintain its sales and marketing infrastructure[223]. Internal Controls - There have been no changes in internal control over financial reporting that materially affected the company during the most recent fiscal quarter[234]. - The company's disclosure controls and procedures were deemed effective as of June 30, 2024, ensuring timely reporting of required information[233].