Petros Pharmaceuticals(PTPI) - 2025 Q3 - Quarterly Report

Financial Performance - Petros reported a net income of $2,250,101 for the nine months ended September 30, 2025, compared to a net loss of $5,045,350 for the same period in 2024[108]. - The loss from continuing operations for the nine months ended September 30, 2025, was $4,163,536, compared to a loss of $152,361 in 2024[108]. - The company experienced a loss on discontinued operations of $0.6 million for the nine months ended September 30, 2025, compared to a loss of $4.9 million in 2024[116]. - Loss from continuing operations for the three months ended September 30, 2025, was $922,723, compared to a loss of $919,541 in 2024[117]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $3,809,837, reflecting a net loss of $2,250,101[175]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $3,663,934, reflecting a net loss of $5,045,350[176]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, were $4,249,864, an increase of $200,475 or 5% from $4,049,389 in 2024[109][110]. - Operating expenses for the three months ended September 30, 2025, were $990,737, a decrease of $206,622 or 17% from $1,197,359 in 2024[118][119]. Revenue and Asset Management - The company discontinued sales of Stendra® as of March 2025, impacting its revenue stream significantly[91][94]. - The company reported a gain of $7.0 million for the disposal of assets and settlement with Vivus for the nine months ended September 30, 2025, compared to $0 million in 2024[115]. - For the nine months ended September 30, 2025, the company recorded a gain of $10.3 million from the change in fair value of the warrant liability, compared to $0.0 million in the same period of 2024[113]. Financing and Capital Structure - The company is exploring various financing strategies to obtain additional liquidity, including secured or unsecured debt, convertible debt, and equity offerings[132]. - The company plans to finance near-term operations by increasing cash flows from operations and exploring additional ways to raise capital[132]. - The company has raised approximately $15 million from a private placement of Series A Preferred Stock in July 2023, which is convertible into shares of Common Stock[134]. - The Company entered into an Amendment Agreement to defer unpaid Series A Preferred Stock payments to July 15, 2025, and extend the maturity date[142]. - The Series A Preferred Stock accrues dividends at 8% per annum, increasing to 15% per annum upon a Triggering Event[146][147]. - The Company issued 558,000 units in a public offering at $6.00 per unit, raising approximately $9.6 million in gross proceeds[159]. - Net cash provided by financing activities was $8,161,458 for the nine months ended September 30, 2025, consisting of proceeds from the Public Offering[177]. Stock and Warrant Information - The exercise price of the Series A Warrants was adjusted to $0.36625 per 0.25 share following a Reverse Stock Split[160]. - The Company filed a registration statement to register for resale 200% of the Conversion Shares and Warrant Shares, effective September 18, 2023[158]. - The Series A Preferred Stock conversion price was adjusted to $0.1269 per share due to anti-dilution provisions[157]. - The Company issued 13,949 shares of Common Stock as equity awards, representing over 5% of the outstanding shares prior to the Purchase Agreement[148]. - The holders of Series A Preferred Stock are entitled to redeem their shares at a premium during a Triggering Event[146]. - The Warrant Stockholder Approval was obtained on April 10, 2025, allowing for adjustments to the exercise price and number of shares[165]. - The aggregate gross proceeds from the Public Offering were approximately $9.6 million before deducting estimated offering expenses[171]. - The Company incurred transaction costs attributable to the Series B Warrants of approximately $10.4 million, which were expensed immediately upon issuance[173]. - The fair value of the Warrants after anti-dilution adjustments was estimated at approximately $35.9 million[169]. - The exercise price of the Warrants was adjusted to $6.00 per share, and the number of shares issuable upon exercise was adjusted to 2,700,000 shares[168]. Company Structure and Compliance - As of June 16, 2025, the company assigned all assets of its subsidiaries to a third-party fiduciary, marking a significant restructuring[97]. - The company faced delisting from Nasdaq due to non-compliance with minimum bid price and stockholders' equity requirements[98][102]. - The company is currently trading on the OTC Markets under the symbol "PTPI" following its delisting from Nasdaq on May 22, 2025[104][105]. - The Company has not entered into any off-balance sheet financial guarantees or derivative contracts[178]. - The Company is subject to certain covenants regarding indebtedness and asset transfers[150].