Evofem Biosciences, Inc.

Good afternoon everyone and welcome to the EBOFEM Biosciences results call for the second quarter of 2022. If you haven't done so already, I encourage you to access the presentation that accompanies this call and the press release we issued after market, both of which may be found at EBOFEM.com under the industry tab. Before we begin, I would like to remind you that remarks on this call will contain forward-looking statements, which are made only as of today, August 4, 2022. For a more detailed description of important risk factors that could cause our actual results to differ materially, please refer to our annual report on Form 10-K and our most recently filed 10-Q. Also, we will discuss estimates and other statistical data made by independent parties and by the company relating to the market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. With that, I'll turn the call over to MOFM CEO, Sondra Pelletier.

Thank you, Amy, and thank you to everyone for joining us today. Today, we are reporting another strong quarter of improved operating results, highlighted by a 42% increase in SEXI net product sales. We reduced our total operating expenses by 8%, we narrowed our loss from operations by 16%, and we expect further growth in Q3 and beyond, driven by ongoing penetration of the $7.9 billion U.S. contraceptive market. For those of you that are new to EvoFem, and as an important reminder, our innovative non-hormonal contraceptive product, Phexy, is the first and the only FDA-approved woman-controlled product that does not impact a woman's ovaries in any way, nor does it prevent implantation of a fertilized egg. With the growing awareness of Phexy and the concerns amongst women about sustainable access to contraception, EvoFem is poised to capitalize on the current environment. With that, I will ask our CFO, Jay Files, to review the financial results. Jay?

Thank you, Sandra. Today, I'm going to focus on the second quarter of 2022 results relative to the first quarter of 2022. Net product sales increased 42% to $6 million, driven by higher ex-factory sales. Our gross to net was 40% for the second quarter of 2022, and we continue to expect GTN will remain about this level or better. Total operating expenses decreased 8% to $30.5 million. This was mainly driven by lower R&D costs, which were $7.7 million in Q2. The decrease reflects lower costs of the Phase III EpiGuard trial as participants completed and exited the study. We expect R&D costs to come down in the third quarter since the last patient visit was completed in late July. R&D costs should be significantly lower in Q4 and beyond. Selling and marketing costs were $400,000 lower in Q2, while G&A costs were up $100,000 due to legal fees. As a result of the higher revenue and lower operating expenses, our loss from operations improved 16% to $24.4 million. We continue to expect 2022 net product sales will be in the range of $30 to $35 million, with momentum building in the second half of the year. This represents 264% to 325% growth year over year. We expect gross to net will be 40% or better, trending lower in the second half of the year. We remain on track to reduce costs by 50 million in 2022. Our total operating expenses were 25.3 million lower in the first half of the year versus the same period of 2021. Finally, we still expect to be cash flow breakeven on a quarterly basis no later than the end of 2023. During the second quarter, we raised net proceeds of $18.1 million from an underwritten public offering and $2 million from our equity line of credit, which we terminated in May. Through August 3, 2022, we received $22.4 million from the exercise of common warrants that were issued in the May public offering. At the close of Q2, we had $19.9 million in unrestricted cash and $1.6 million in restricted cash. Based on our current expected operations, we believe we have sufficient cash to fund operations into Q4. This does not include potential non-dilutive capital for commercial alternatives we are exploring and evaluating to enhance shareholder value, like U.S. co-marketing and co-promotion partnerships. We continue our efforts to regain compliance with the NASDAQ capital market minimum bid requirement. In May, we closed above a dollar for 10 consecutive trading days as required by the NASDAQ listing panel. However, the panel took the unexpected step of disregarding FFM's achievement of this compliance milestone. Ultimately, the panel granted our request for continued listing of our shares on the NASDAQ capital market without requiring a second reverse stock split provided the company is able to evidence a closing bid price of at least a dollar per share for at least 10 consecutive trading days by August 22nd. Given our solid Q2 results, we hope for strong support from investors who see our ongoing growth in the 7.9 billion contraceptive market and the upside opportunity at SCI prevention and believe FFM is a smart investment, especially at the current share price. And with that, I'll turn it back over to Sandra.