Titan Pharmaceuticals(TTNP) - 2023 Q3 - Quarterly Report

Revenue Changes - Total revenues for the three months ended September 30, 2023 decreased by $91,000 compared to the same period in 2022, primarily due to decreased activities related to the NIDA grant and Gates Foundation grant[94] - Total revenues for the nine months ended September 30, 2023 decreased by $252,000 compared to the same period in 2022, primarily due to decreased activities related to the NIDA grant and Gates Foundation grant[94] Research and Development Expenses - Research and development expenses for the three months ended September 30, 2023 decreased by $508,000 compared to the same period in 2022, primarily due to reduced activities related to non-clinical studies for the Nalmefene implant and TP-2021 implant program[96] - Research and development expenses for the nine months ended September 30, 2023 decreased by $1,889,000 compared to the same period in 2022, primarily due to reduced activities related to non-clinical studies for the Nalmefene implant and TP-2021 implant program[96] General and Administrative Expenses - General and administrative expenses for the three months ended September 30, 2023 decreased by $165,000 compared to the same period in 2022, primarily due to decreases in legal and professional fees and other expenses[97] - General and administrative expenses for the nine months ended September 30, 2023 decreased by $641,000 compared to the same period in 2022, primarily due to decreases in employee-related expenses, legal and professional fees, and other expenses[97] Other Income (Expense) - Other income (expense), net for the three months ended September 30, 2023 increased by $1,718,000 compared to the same period in 2022, primarily due to the gain related to the sale of the ProNeura Assets to Fedson and decreases in tax-related expenses[98] - Other income (expense), net for the nine months ended September 30, 2023 increased by $1,763,000 compared to the same period in 2022, primarily due to the gain related to the sale of the ProNeura Assets to Fedson and decreases in tax-related expenses[98] ProNeura Assets Sale - The company sold its ProNeura Assets to Fedson for a purchase price of $2.0 million, consisting of $500,000 in readily available funds, $500,000 in the form of a promissory note due on October 1, 2023, and $1,000,000 in the form of a promissory note due on January 1, 2024[89] - The company is eligible to receive potential milestone payments of up to $50 million on future net sales of the products and certain royalties on future net sales of the products[89] - Sold ProNeura Assets for $2.0 million, with potential milestone payments up to $50 million and royalties on future net sales[103] Net Loss - Net loss for Q3 2023 was $0.3 million ($0.02 per share), a significant improvement from $2.6 million ($0.18 per share) in Q3 2022[100] - Net loss for the nine months ended September 30, 2023 was $3.6 million ($0.24 per share), compared to $7.6 million ($0.59 per share) in the same period of 2022[100] Working Capital and Financing - Working capital increased to $8.0 million as of September 30, 2023, up from $1.0 million at December 31, 2022[101] - Company raised $9.5 million through issuance of Series AA Preferred Stock in September 2023, with net cash proceeds of $9.1 million[102] - Received $500,000 funding through Hau Promissory Note in August 2023, accruing 10% annual interest[104] - Net cash provided by financing activities for nine months ended September 30, 2023 was $9.6 million, mainly from preferred stock issuance[110] Cash Position and Operating Activities - Cash and cash equivalents stood at $8.1 million as of September 30, 2023, expected to fund operations through December 2024[106] - Net cash used in operating activities for nine months ended September 30, 2023 was $4.8 million, primarily due to net loss of $3.6 million[108]