Palatin Technologies, Inc.

Greetings and welcome to Palatine's first quarter fiscal year 2025 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 Spanner, President and Chief Executive Officer of Palatin. Please go ahead.

Thank you. Good morning and welcome to the Palatin First Quarter Fiscal Year 2025 call. I'm Dr. Carl Spanner, CEO and President of Palatin. With me on the call today is Steve Wills, Palatin's Chief Financial Officer and Chief Operating Officer. I'll now turn the call over to Steve. He'll give the financial update.

Thanks, Carl, and welcome, everyone. For the fiscal first quarter ended September 30, 2024, financial results regarding revenue. Pursuant to the completion of the sale of Ilesi'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 first quarter ended September 30th, 2024. For the first quarter ended September 30th, 2023, gross product sales were $4.6 million and net product revenue was $2.1 million. Regarding operating expenses, total operating expenses were $7.8 million for the first quarter ended September 30th, 2024, compared to $8.2 million for the comparable quarter last year. The decrease was mainly the result of the elimination of selling expenses related to offset by greater spending on our MCR programs, MCR being melanocortin receptor. Regarding cash flows, Palatine's net cash use and operations for the quarter ended September 30, 2024 was $7 million compared to a net cash use and operations of approximately $5.9 million for the same period of 2023. The increase in net cash use and operations is mainly due to the increase in the net loss during the period and secondarily to working capital changes. Regarding net loss, Peloton's net loss for the quarter ended September 30, 2024 was $7.8 million compared to a net loss of $5.2 million for the same period in 2023. The increase in net loss for the quarter ended September 30, 2024 over the quarter ended September 30, 2023 was mainly due to the elimination of ILECE net product revenue offset by the elimination of ILECE selling expenses and the recognition of the change in fair market value of warrant liabilities for the quarter ended September 30th, 2023. Regarding cash position, as of September 30th, 2024, Palatin's cash and cash equivalents were $2.4 million compared to cash and cash equivalents of $9.5 million as of June 30th, 2024. Palatin did receive a scheduled $2.5 million deferred payment in November 2024 from Cosette Pharmaceuticals related to the sale by Leacy, Obviously, since this was received in November, it is not included in our September 30 cash and cash equivalents balance. Regarding our go-forward operations, future investment and activities will be focused and limited to our core programs in obesity. We've retained an investment bank to conduct, explore, and evaluate strategic options for our non-obesity programs. At this stage, there is significant interest in and ongoing discussions for our phase three dry eye disease program, our early stage glaucoma and retina development programs, and our phase two ulcerative colitis program from multiple parties. Now I'll turn the call back over to Carl. Thank you, Steve.