Agile Therapeutics, Inc.

Good afternoon and welcome to the Agile Therapeutics Fourth Quarter and Full Year 2021 Financial Results Conference Call. After today's presentation, there will be a question and answer session. To ask a question, press star and the number 1 on your telephone. Please note today's event is being recorded. I would now like to turn the conference over to Matt Riley, Head of Investor Relations.

Hello, everyone, and welcome to today's conference call to discuss our fourth quarter and full year 2021 financial results and corporate update. Before we start, let me remind you that today's call will include forward-looking statements based on current expectations, including statements concerning our financial outlook for the future, our outlook for the first quarter of 2022, management's expectations for our future financial and operational performance, our business strategy, and our assessment of the combined hormonal contraceptive market, among other statements regarding our plans, prospects, and expectations. Such statements represent our judgments as of today are not promises or guarantees and may involve risks and uncertainties that may cause actual results to differ from the results discussed in the forward-looking statements. Please refer to our filings with the SEC, which are available through the investor relations section of our website, for information concerning risk factors that may affect the company. We undertake no obligation to update forward-looking statements except as required by law. The information on today's call is not intended for promotional purposes and not sufficient for prescribing decisions. Joining me on today's call are Al Altamari, Agile Therapeutics Chairman and Chief Executive Officer, and Dennis Riley, Chief Financial Officer. Following our prepared remarks, we'll open the call to your questions. I will now turn the call over to Dennis.

Thank you, Matt, and thank you all for joining us on our call this afternoon. I will review the key areas of our financial performance for fourth quarter and full year 2021, and then discuss our cash position and plan to finance the company. I will then hand the call over to Al for an update on our business plan for 2022. Overall, 2021 was our first full year of commercialization and we saw steady growth in Twirla across a number of revenue as we sought to establish Twirla in the market. Beginning with revenue, we realized net product sales revenue of 1.5 billion in the fourth quarter as compared to 1.3 million in the third quarter of 2021. Our net revenue for the fourth quarter was at the high end of the range we guided in January and brings us to $4.1 million of revenue for the full year 2021. Our cost of product revenue for Q4 2021 was $5.7 million, which included a $4.5 million inventory obsolescence charge for product not expected to be sold prior to its shelf life date, which is 12 months prior to expiry. Full year cost of product revenue was $10.7 million, including $5.9 million of inventory obsolescence reserves. While we believe we have managed our inventory down to a level that more closely tracks to demand, We will continue to closely monitor this area and take the appropriate steps when necessary. Our operating expenses were $18.2 million in Q4 2021.