Adamis Pharmaceuticals Corporation

Greetings and welcome to the Adams Pharmaceuticals second quarter 2022 financial results conference call. At this time, all participants are in a listen-only mode. A brief 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 is being recorded. It is now my pleasure to introduce your host, Robert Ohl, ICR of Westwick. Please proceed.

Thank you, operator. Welcome to the Atomos Pharmaceuticals second quarter 2022 financial results and corporate update conference call. Thank you for joining us today for the update. Joining me on the call will be members of the Atomos executive team, including, in his new role, CEO David J. Margulio, Chief Medical Officer Dr. Ron Moss, and Chief Financial Officer David Benedicto. They will share with us their various Atomos updates. Our format for this call will consist of prepared remarks from management, and following that, we will open it up to Q&A. This call is being webcast and will be available for replay in the investor section of the Atomos website at atomospharmaceuticals.com. In today's call, we will make certain forward-looking statements regarding our business based on current expectations and current information. Those statements speak only as of today. and except as required by law, we do not assume any duty to update in the future any forward-looking statement made today. Of course, any forward-looking statements involve risks and uncertainties, and our actual results could differ materially from those anticipated by any forward-looking statements that we make today. Additional information concerning factors that could affect our business and financial results is included in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission, and in other subsequent filings that we make with the SEC. These are available on the SEC's website. Now, please let me introduce the new CEO, David Margulio.

Thank you, Robert. I appreciate all of you for tuning in today to let us update you on our second quarter, and perhaps more importantly, hear how we intend to break out of this pattern of underperformance. In May of this year, I became the CEO of a company with a 40-cent share price. It was out of compliance with NASDAQ, in the middle of a product recall, part of an ongoing DOJ investigation, and holding a limited amount of cash. Add to that a horde of unhappy shareholders, and I can understand why another candidate might have been reluctant to step up to this challenge. However, I saw beyond Atomos' current situation to where we could take it. I knew the company had strong assets and could be leveraged to unlock tremendous value. To start, we have two approved products that can compete in large markets. We have an ongoing clinical trial for Temple that if it shows efficacy, could not only potentially become a blockbuster treatment for COVID, but could potentially be expanded to treat other respiratory diseases. But most importantly, we have a small yet devoted team of highly qualified and experienced individuals committed to both saving patient lives and this company. Before accepting this role, I proposed to our board what I believe to be an aggressive turnaround plan that at certain points could put significant strain on the company, our employees, and partners. It involved changing company culture, improving operational systems and processes, and establishing corporate group and individual objectives intended to put us on a path to success. The board was supportive of the plan and we are now more than two months into it. I'd like to share with you a few of these new objectives which I believe as we execute upon them should positively impact company stock price as well as rebuilding shareholder value. We must convert sales of Zimhi and Syngepi into cash flows. If we can both increase top line sales and grow margins, the resulting cash flows could potentially fund the entire company. We are challenging our commercial partner to both execute on the recent commercial launch of Zimhi, as well as, once we resume manufacturing, continue Syngepi's prior growth trend. I believe we have a good, capable partner in U.S. World Meds, and I trust they will succeed in growing sales of both products. But as a closely held private company, U.S. World Meds has little impetus to outwardly project their sales or strategies. However, going forward, they are committed to regularly providing animus with talking points, which we can in turn provide you with more visibility into their commercial efforts. I will share some of those in a few moments. To grow margins, we recently kicked off multiple projects intended to decrease the cost of our injection device. For relatively short, rather modest capital investment and a relatively short timeline, these should materially lower the cost of goods on our products. In the future, we will consider more expansive manufacturing improvements when sales volumes justify additional investment. The next objective is to broaden and advance our development pipeline. Based on our ongoing work on COVID-19, we continue to evaluate Temple for other indications. However, while we remain capital constrained in the near term, we will not advance new clinical programs without financial support from government or private entities. In the near term, I believe data from the COVID trial, if positive, will broaden both the interest and further discussions with public and private non-diluted funders. Longer term, we will continue to evaluate opportunities to acquire, license, jointly develop, or otherwise partner to expand our pipeline. The criteria for advancing any of these opportunities will be first, determining if they are both accretive and strategic for the company, then objectively measuring if we have the financial and human capital to advance them. Look folks, I understand there's a lot of frustration and fatigue among investors, but I believe that we are at a critical inflection point. We are currently challenging all of our systems and most aspects of how the company operates. We have established new corporate objectives, which as we execute on, should put us on an ascending path to new levels of success. I'm asking all of you to stay tuned, support this process, and give us a bit more time to turn Adamus around, regain your trust, and ultimately increase shareholder value. Now I would like to introduce our CFO to share with us a brief update on our recently filed financials.