Titan Pharmaceuticals(TTNP) - 2025 Q2 - Quarterly Report

Financial Transactions - Titan Pharmaceuticals closed the sale of ProNeura assets for a total purchase price of $2.0 million, which includes $500,000 in cash and two promissory notes totaling $1.5 million[89]. - Titan issued 950,000 shares of Series AA Preferred Stock at $10.00 per share, raising an aggregate of $9,500,000, which included $5 million in cash at closing[90]. - The company completed a private placement with Blue Harbour, issuing 100,000 shares of Series B Preferred Stock for $1,000,000, which helped to meet Nasdaq's equity requirement[100]. - The company completed a private placement transaction in April 2025, issuing 100,000 shares of Series B Convertible Preferred Stock for an aggregate purchase price of $1.0 million[113]. - In June 2025, the company issued an additional 60,000 shares of Series C Convertible Preferred Stock for an aggregate purchase price of $600,000[113]. - The company received approximately $9.5 million from the issuance of 950,000 shares of Series AA Convertible Preferred Stock in September 2023[109]. Compliance and Governance - The company reported stockholders' equity of $2,440,000 in its 2024 10-K, which did not meet Nasdaq's requirement of at least $2,500,000[99]. - The company plans to submit a compliance plan to Nasdaq within 45 days of receiving a notice regarding its stockholders' equity deficiency[100]. - Titan's Chief Executive Officer, Seow Gim Shen, resigned on October 24, 2024, and the company appointed Brynner Chiam as acting principal executive officer[94]. Strategic Direction - The company is exploring strategic alternatives, including potential mergers or acquisitions, to enhance stockholder value[88]. - The company is exploring several financing and strategic alternatives to support operations through the second quarter of 2026[112]. Financial Performance - The company reported a net loss of approximately $0.7 million, or $0.65 per share, for the three months ended June 30, 2025, compared to a net loss of approximately $2.1 million, or $2.29 per share, for the same period in 2024, indicating a significant improvement[107]. - For the six months ended June 30, 2025, the net loss was approximately $1.3 million, or $1.26 per share, compared to a net loss of approximately $3.2 million, or $3.57 per share, for the same period in 2024, reflecting a reduction in losses[107]. - Operating expenses for the three months ended June 30, 2025, decreased to $657,000 from $2.1 million in 2024, a reduction of approximately 68.3%[105]. - The company had working capital of approximately $2.8 million as of June 30, 2025, an increase from approximately $2.4 million at December 31, 2024[108]. - Net cash used in operating activities for the six months ended June 30, 2025, was approximately $1.5 million, a decrease from $2.7 million in 2024, indicating improved cash management[114]. Product Development - Titan's first product, Probuphine, was discontinued in the U.S. in Q4 2020, with commercialization efforts now focused on product development[87]. - The company anticipates potential milestone payments of up to $50 million based on future net sales of the products sold to Fedson[89].