Palatin Technologies, Inc.

Greetings. Welcome to Palatine's second 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 Security 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 second quarter fiscal year 2025 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. I'll now turn the call over to Steve and he'll give the financial update.

Thank you, Carl, and welcome everyone. Regarding our financial results, starting with revenue, Pursuant to the completion of the sale of Vilesi'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 second quarter ended December 31, 2024. For the second quarter ended December 31, 2023, gross product sales were $4.3 million and net product revenue was $2 million. Regarding operating expenses, total operating expenses were $2.6 million, net of a $2.5 million gain on the sale by leasy for the second quarter ended December 31, 2024, compared to $0.9 million, net of a $7.8 million gain on the sale by leasy for the comparable quarter in 2023. The increase was mainly the result of the decrease in gain on the sale of Ilesi Tuco set for the second quarter ended December 31st, 2024. Regarding other income and expense, total other income expense net consists mainly of foreign currency transaction gains and losses and the change in fair value of warrant liabilities, which Palatin had recorded as a liability on the consolidated financial statements. For the quarter ended December 31st, 2023, Palatin recorded a fair value adjustment loss of $8.1 million and offering expenses of $0.7 million. Regarding cash flows, Palatin's net cash used in operation for the quarter ended December 31, 2024 was $4.8 million compared to net cash used in operations of $10.5 million for the same period in 2023. The decrease in net cash used in operations is mainly due to the decrease on the gain on the sale by leasing during the period and secondarily to working capital changes. Regarding net loss, Palatin's net loss for the quarter ended December 31st, 2024 was 2.4 million compared to a net loss of 7.8 million for the same period in 2023. The decrease in net loss for the 2024 quarter over the comparable quarter ended in 2023, was driven primarily by the change in fair values of the warrant liability and the elimination of by leasing net product revenue and selling expenses, offset by the decrease on the gain of the sale by leasing. Regarding cash position, as of December 31st, 2024, Palatine's cash and cash equivalents were $3.4 million compared to cash and cash equivalents of $2.4 million at September 30, 2024 and $9.5 million as of June 30, 2024. This $3.4 million of cash and cash equivalents as of December 31, 2024 does not include the $4.3 million of net proceeds that we raised in an equity offering which closed in February of 2025. We are in active We are actively engaged with multiple potential funding sources for future operating cash requirements. I'll now turn the call back over to Carl.