Palatin Technologies, Inc.

Greetings. Welcome to Palatine's third quarter fiscal year 2024 operating results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded. Before we begin our remarks, I would like to remind you that statements made by Palatin are not historical facts. It may be forward-looking statements. These statements are based on assumptions that may or may not prove to be accurate. and that the actual results may differ materially from those anticipated due to the variety of risks and uncertainties discussed in the company's most recent filings with the Securities and Exchange Commission. Please consider such risks and uncertainties carefully in evaluating these forward-looking statements by Palatin's prospects. Now, I would like to turn the call over to your host, Dr. Carl Spana, President and Chief Executive Officer of Palatin. Please go ahead.

Thank you. Good morning and welcome to the Palatine third quarter fiscal year 2024 call. I'm Dr. Carl Spana, CEO and President of Palatine. With me on the call today is Steve Wills, Palatine's Executive Vice President, Chief Financial Officer, and Chief Operating Officer. I'll now turn the call over to Steve and he will give the financial and operating update. Steve.

Thank you, Carl. And hello, everyone. For Palatine's fiscal third quarter ended March 31st, 2024 financial results. Regarding revenue, Total revenue consists of gross product sales of Vilisi, net of allowances, and accruals. Pursuant to the completion of the sale of Vilisi's worldwide rights for female sexual dysfunction to Cosette Pharmaceuticals for up to $171 million in December of 2023, Palatin did not record any product sales to pharmacy distributors for the quarter ended March 31, 2024. For the quarter ended March 31, 2023, gross product sales were $3.4 million with net product revenue of 1.2 million. Regarding operating expenses, total operating expenses were 9.2 million compared to 8.5 million for the comparable quarter last year. The increase was related to greater spending on our Milana Court and Receptor programs, offset partially by the elimination of selling expenses related to by leasing. Regarding other income and expense, total other income and expense Net consists mainly of the change in fair value of warrant liabilities, which Palatin had recorded as a liability on the consolidated financial statements, including revisions of certain prior period amounts to correct a misstatement with respect to classifying warrants as equity instead of liability. To be clear, that's all cleaned up. There is no more liability reflection. As we go forward, again, that item has been cleaned up. The statement of operations was adjusted each quarter to reflect changes in the fair value of these warrants. For the quarters ended March 31st, 2024 and 2023, Palatine recorded a fair value adjustment gain of $0.4 million and a loss of $1.5 million respectively. Regarding cash flows, Palatine's net cash used in operations was $8.6 million compared to $1.4 million for the same period last year. The increase is mainly due to changes in working capital. Regarding net loss, Palatine's net loss was 8.4 million or 53 cents per common share compared to a net loss of 8.7 million or 76 cents per common share for the comparable period last year. The decrease over the comparable quarter last year was mainly due to a larger operating loss in fiscal 2024 offset by the higher other income which was primarily from changes in the fair value of the warrant liabilities. Regarding cash position, as of March 31st, 2024, Peloton's cash, cash equivalents, and marketable securities were $10 million, compared to cash, cash equivalents, and marketable securities of $9.5 million, plus $2.3 million of accounts receivable as of December 31st, 2023, and compared to $5.5 million plus $1.3 million of accounts receivable as of September 30th, 2023. We believe that existing cash and cash equivalents, marketable securities, will be sufficient to fund currently anticipated operating expenses and disbursements well into the second half of calendar year 2024. Now, I'd like to turn the call back over to Carl.