Petros Pharmaceuticals(US:PTPI)2025-03-31 20:29Financial Position - As of December 31, 2024, the company had cash of approximately $3.7 million and an accumulated deficit of approximately $113.2 million[226]. - The outstanding principal amount on the promissory note to Vivus was $7,574,824 as of December 31, 2024, following a default on a payment due on October 1, 2024[233]. - The unaudited pro forma consolidated balance sheet as of December 31, 2024, shows total assets of $10,635,310, with pro forma adjustments reducing this by $8,915,780 to $1,719,530[247]. - Cash and cash equivalents totaled $3,709,971 at December 31, 2024, down from $13,336,975 at December 31, 2023, indicating liquidity challenges[298]. Operational Performance - The company experienced negative cash flows from operations of approximately $2.6 million during the twelve months ended December 31, 2024[226]. - For the year ended December 31, 2024, net sales were $5,112,043, with a gross profit of $3,899,343, leading to a net loss of $14,318,790[248]. - The company recognized a loss from operations of $17,679,650 for the year ended December 31, 2024, compared to a loss of $13,617,364 in 2023[264]. - The company reported a net loss of $14,318,790 for the year ended December 31, 2024, compared to a net loss of $8,163,188 in 2023[264]. - Net cash used in operating activities decreased from $7,626,529 in 2023 to $2,603,051 in 2024, indicating improved operational efficiency[335]. Sales and Revenue - Net sales for the year ended December 31, 2024, were $5,112,043, a decrease of 12% compared to $5,822,388 in 2023, driven by a $385,263 decrease in Medical Device sales and a $325,082 decrease in Stendra® sales[265]. - Gross profit for the year ended December 31, 2024, was $3,899,343, representing 76% of net sales, compared to $4,191,168 or 72% of net sales in 2023[274]. - Gross billings for the year ended December 31, 2024, were calculated from net sales of $5,112,043, with product returns of $1,788,978 and contract rebates of $862,354[352]. Expenses - The company incurred significant operating expenses totaling $21,578,993 for the year ended December 31, 2024, with adjustments leading to a loss from operations of $17,679,650[248]. - Total operating expenses for the year ended December 31, 2024, were $21,578,993, an increase from $17,808,532 in 2023, primarily due to intangible asset impairment of approximately $2,966,760[264]. - Selling, general and administrative expenses decreased by $512,369 or 6% during the year ended December 31, 2024, compared to 2023, mainly due to reduced payroll and benefits expenses[279]. - Research and development expenses for the year ended December 31, 2024, were $2,615,050, an increase from $2,409,094 in 2023, reflecting a focus on the Prescription Medicines segment[281]. Impairments and Reserves - The Company recorded an impairment of approximately $3.0 million for the Stendra® asset in 2024 due to a change in business strategy[289]. - The Company also recorded an impairment of approximately $4.4 million for its API assets in 2024, linked to the same strategic shift[290]. - The company recorded reserves for product returns of $5.2 million as of December 31, 2024, compared to $4.2 million in 2023, reflecting an increase in expected returns[260]. Compliance and Regulatory Matters - The company has received a compliance period until November 11, 2024, to regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share[250]. - On November 12, 2024, the company was granted a 180-day extension to regain compliance with Nasdaq listing rules, extending the deadline to May 12, 2025[251]. - The company is subject to delisting due to a closing bid price of $0.10 or less for ten consecutive trading days, with an appeal filed to contest this determination[253]. - The company plans to submit a compliance plan to Nasdaq, including a proposal for a reverse stock split to increase the market price of its common stock[253]. Financing Activities - The company is evaluating various financing strategies, including secured or unsecured debt, convertible debt, and equity offerings, to obtain sufficient liquidity for operations over the next twelve months[229]. - The aggregate gross proceeds from the February 2025 public offering were approximately $9.6 million, intended for working capital and general corporate purposes[307]. - The Company raised approximately $15 million from a private placement in July 2023, with proceeds used for general corporate purposes[311]. - The Company is exploring additional ways to raise capital, including public or private equity or debt financings, to support its business strategy[333]. Strategic Changes - The company plans to discontinue sales of Stendra® and is no longer engaged in its commercialization, development, or sales following the Vivus Termination Agreement effective March 31, 2025[222]. - The company is working towards developing a proprietary integrated technology solutions platform, currently in early development stages, aimed at facilitating Rx-to-OTC switches for nonprescription pharmaceuticals[223]. - The company has historically marketed its own line of ED products through subsidiaries, including Timm Medical and PTV, but will cease these operations following the ABC process[225]. - Metuchen will present its ABC as a discontinued operation effective in Q1 2025, impacting all periods presented[243].