Palatin Technologies(US:PTN)2021-02-16 21:21Revenue and Financial Performance - For the six months ended December 31, 2020, the company recognized $(452,531) in product revenue, a decrease from $117,989 in the same period of 2019 due to regaining all North American rights to Vyleesi[150]. - Net cash used in operating activities was $10,607,131 for the six months ended December 31, 2020, a significant decrease from cash provided by operating activities of $49,914,993 in the same period of 2019[162]. - The company recorded a gain of $1,623,795 for the six months ended December 31, 2020, due to the Vyleesi Termination Agreement[158]. Research and Development - Research and development expenses increased to $6,935,269 for the six months ended December 31, 2020, compared to $6,385,113 for the same period in 2019, primarily due to increased spending on MCr programs[151]. - Cumulative spending on the Vyleesi program reached approximately $311,900,000, while spending on all other programs totaled approximately $161,100,000 as of December 31, 2020[154]. - The company is focusing on developing peptides that target MC1r and other melanocortin receptors for treating inflammatory and autoimmune diseases[143]. - The company is developing potential NPR candidate drugs to treat cardiovascular and fibrotic diseases[144]. Expenses and Liabilities - Selling, general and administrative expenses rose to $7,376,519 for the six months ended December 31, 2020, compared to $4,236,535 for the same period in 2019, driven by increased selling expenses related to Vyleesi[156]. - Significant expenses are anticipated for the development of marketing and distribution capabilities for Vylessi and other product candidates, adversely affecting stockholders' equity and working capital[167]. - Total contractual obligations as of December 31, 2020, amounted to $13,598,447, with current obligations of $1,328,657[170]. - Inventory purchase commitments total $12,344,200, with current commitments of $1,010,250[170]. Cash Flow and Funding - Net cash used in financing activities for the three months ended December 31, 2020, was $89,029, compared to $1,903,055 for the six months ended December 31, 2019[164]. - As of December 31, 2020, cash and cash equivalents were $72,156,110, with current liabilities of $7,249,643[164]. - The company has incurred cumulative negative cash flows from operations since inception and expects to continue substantial expenditures for marketing and distribution of Vylessi[164]. - The company plans to utilize existing capital resources for general corporate purposes and the development of various product programs[165]. - Additional funding will be required to complete clinical trials for other product candidates and regulatory submissions, with potential impacts from the COVID-19 pandemic[166]. - The company believes existing capital resources will be adequate to fund operations for at least twelve months from the date of the financial statements[166]. - There are no off-balance sheet arrangements reported[168]. Strategic Initiatives - The company aims to maximize revenue from Vyleesi by marketing it in the U.S. and seeking additional licensees in other regions[148]. - The company has entered into strategic alliances to facilitate the development and commercialization of its product candidates[148].