Palatin Technologies, Inc.

Welcome to Palatine's fourth quarter and fiscal year end 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 and 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 our host, Dr. Carl Spana, President and Chief Executive Officer of Palatin. Please go ahead.

Thank you. Good morning and welcome to the Palatin year-end fiscal 2024 call. I'm Dr. Carl Spana, CEO and President of Palatin. With me on the call today is Steve Wills, Palatin's Chief Financial Officer and Chief Operating Officer. And I'll turn the call over to Steve, and he'll give the financial update. Thank you, Carl.

Good morning, good afternoon, everyone. Before reviewing the financial results, I have a few other corporate items to highlight. Regarding Vilisi, remlanotide injection, a commercial product Palatin developed for hypoactive sexual desire disorder, or HSDD, Palatin closed on an asset sale to Cosette Pharmaceuticals for up to $171 million in December 2023. Terms included $12 million up front plus potential milestones of up to $159 million based on annual net sales ranging from $15 million to $200 million. Importantly, Palatin retains rights to and use of bremelanotide for obesity and male treatment indications. Regarding financings, During fiscal year-ended June 30, 2024, Paliton raised total gross proceeds of $21 million in registered direct and warrant inducement offerings. Regarding Paliton's fourth quarter and fiscal year-ended June 30, 2024 financial results, total revenue consists of gross product sales of ILECE, net of expenses, allowances, and accruals, and license and contract revenue. Pursuant to the completion of the sale of bilisi rights for female sexual dysfunction to Cassette Pharmaceuticals in December of 2023, again for up to $171 million, Palatin did not record any product sales for the fourth quarter ended June 30, 2024. For the fourth quarter ended June 30, 2023, gross product sales were $4.1 million, and net product revenue was $1.8 million. YVC gross product sales to pharmacy distributors for the fiscal year ended June 30, 2024 were $8.9 million with net product revenue of $4.5 million compared to gross product sales of $12.5 million with net product revenue of $4.9 million for the prior fiscal year. Total operating expenses were $8.7 million for the fourth quarter ended June 30, 2024 compared to $12.6 million for the comparable quarter last year. The decrease was mainly the result of lesser spending on our MCR, melanocortin receptor programs, and secondarily, the elimination of selling expenses related to Mylesi. Total operating expenses for the fiscal year ended June 30, 2024, were $27 million compared to $37.3 million for the prior fiscal year. This decrease was mainly due to the $7.8 million gain recognized on the sale by leasing, and secondarily, the elimination of related selling expenses. Regarding cash flows, Palatine's net cash used in operations for the quarter ended June 30, 2024, was $6.5 million, compared to net cash used in operations of $9.6 million for the same period in 2023. This decrease in net cash used in operations is mainly due to the decrease in operating expenses and secondarily to working capital changes. Palatine's net cash use and operations for the fiscal year ended June 30, 2024, was $31.5 million compared to net cash use and operations of $29.3 million for the same period in 2023. This increase in net cash use and operations was a result of working capital changes and increased payments made related to inventory purchase commitments. Paddleton's net loss for the quarter and fiscal year end of June 30, 2024, was $8.6 million and $29.7 million, respectively, compared to a net loss of $9.8 million and $24 million, respectively, for the same period in 2023. Variances were covered above under the revenue and operating expenses. Regarding our cash position, as of June 30, 2024, Palatin's cash and cash equivalents were $9.5 million, compared to cash and cash equivalents of $10 million as of March 31, 2024, and $8 million, with $3 million in marketable securities, as of June 30, 2023. We, Palatin, is actively engaged with multiple parties for potential funding sources for future operating cash needs consisting of both business development efforts and other potential collaborators, including entities involved with the same programs that Palatin is advancing. Thank you, and I'll now turn the call back over to Carl.