PainReform(PRFX) - 2024 Q4 - Annual Report

Business Update and Strategic Overview PainReform provided a 2024 year-end business update, detailing a strategic shift towards high-margin technology sectors via the DeepSolar acquisition, continued PRF-110 drug development, and Nasdaq compliance efforts Introduction and Key Strategic Shifts PainReform provided a year-end business update for 2024, highlighting a strategic shift towards investing in high-margin, technology-driven sectors, exemplified by the DeepSolar acquisition, while continuing to advance its lead drug candidate, PRF-110 - PainReform is expanding its strategy to include high-margin, technology-driven sectors[3] - The company provided a business update for the year ended December 31, 2024[2] PRF-110 Clinical Development Update The company remains committed to advancing PRF-110 for post-operative pain relief despite a temporary setback in its Phase 3 bunionectomy trial, focusing on addressing a 24-hour data gap and refining the drug's pharmacokinetics and pharmacodynamics - PainReform is committed to advancing PRF-110 for extended post-operative pain relief[3] - Encountered a temporary setback in Phase 3 clinical trial for PRF-110 in bunionectomy patients[3] - Launched R&D activities to refine PRF-110's pharmacokinetics and pharmacodynamics based on trial data[3] DeepSolar Acquisition and Clean Energy Expansion PainReform acquired DeepSolar, an AI-driven solar analytics platform, marking its expansion into the high-growth clean energy sector with expectations for scalable SaaS platform revenue growth and strategic partnerships - Acquired DeepSolar, an AI-driven solar analytics platform, expanding into the clean energy sector[3] - Expects DeepSolar's scalable SaaS platform to drive revenue growth[3] - Intends to explore strategic partnerships with utility companies, solar technology providers, and smart grid operators[3] Nasdaq Listing Compliance Following a notice of non-compliance with Nasdaq's minimum shareholders' equity requirement, PainReform believes it has regained compliance after a $0.9 million ATM raise and the DeepSolar acquisition, and is committed to maintaining its listing standards - Received Nasdaq notice for non-compliance with $2.5 million minimum shareholders' equity[4] - Believes shareholders' equity now exceeds the required threshold after a $0.9 million ATM raise and DeepSolar acquisition[4] Financial Results for the Year Ended December 31, 2024 The company reported increased R&D expenses and a higher net loss in 2024, while general and administrative expenses decreased, maintaining a positive working capital position Research and Development Expenses R&D expenses significantly increased in 2024, primarily due to higher clinical trial and manufacturing costs, partially offset by reduced subcontractor and consultant expenses Research and Development Expenses | Year | Amount (approx.) | Change (YoY) | Primary Reason for Change | | :--- | :--- | :--- | :--- | | 2024 | $11.7 million | +$5.7 million | Increase in clinical trial costs and manufacturing expenses, offset by decrease in subcontractors and consultants' expenses | | 2023 | $6.0 million | | | General and Administrative Expenses General and administrative expenses decreased in 2024, mainly attributable to lower insurance costs and share-based compensation expenses General and Administrative Expenses | Year | Amount (approx.) | Change (YoY) | Primary Reason for Change | | :--- | :--- | :--- | :--- | | 2024 | $3.0 million | -$0.6 million | Decrease due to insurance costs and share-based compensation expenses | | 2023 | $3.6 million | | | Financial Income, Net Net financial income decreased in 2024 compared to 2023, primarily due to a reduction in cash holdings Financial Income, Net | Year | Amount (approx.) | Change (YoY) | Primary Reason for Change | | :--- | :--- | :--- | :--- | | 2024 | $93,000 | -$155,000 | Decrease due to lower cash in 2024 | | 2023 | $248,000 | | | Net Loss and Working Capital PainReform reported a higher net loss in 2024 compared to 2023, but maintained a positive working capital of approximately $2.0 million as of year-end Net Loss | Year | Amount (approx.) | Change (YoY) | | :--- | :--- | :--- | | 2024 | $14.6 million | +$5.3 million | | 2023 | $9.3 million | | - Company had a positive working capital of approximately $2.0 million as of December 31, 2024[8] Company Information and Disclosures This section details the filing of the 2024 annual report, provides an overview of PainReform's business, includes forward-looking statements, and lists contact information Annual Report Filing PainReform filed its annual report on Form 20-F for the year ended December 31, 2024, with the SEC and made it available on its investor relations website, offering hard copies to shareholders upon request - Annual report on Form 20-F for 2024 filed with SEC and available on investor relations website[9] - Hard copies of the annual report are available to shareholders upon request[9] About PainReform PainReform is a specialty pharmaceutical company focused on reformulating established therapeutics, utilizing a proprietary extended-release drug-delivery system for post-surgical pain relief, and recently expanded into AI-driven solar analytics with the DeepSolar acquisition - PainReform is a specialty pharmaceutical company focused on reformulating established therapeutics[10] - Develops a proprietary extended-release drug-delivery system for post-surgical pain relief[10] - Acquired DeepSolar, an AI-driven solar analytics technology, in March 2025[10] Forward-Looking Statements The press release includes forward-looking statements regarding PainReform's expectations, beliefs, and intentions, particularly concerning the DeepSolar acquisition's benefits and market opportunities, and cautions readers about inherent risks and uncertainties - Press release contains forward-looking statements about PainReform's expectations, beliefs, and intentions, including anticipated benefits of DeepSolar acquisition[11] - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially[11] Contact Information Contact details for investor relations (Crescendo Communications) and PainReform's Chairman and interim CEO, Dr. Ehud Geller, are provided for inquiries - Contact information for investor relations and company management is provided[12]