Palatin Technologies Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Palatin Technologies Inc. filed its Q2 FY2024 10-Q report, detailing financial performance and business activities up to December 31, 2023.</b>

AI Summary

PALATIN TECHNOLOGIES INC (PTN) filed a Quarterly Report (10-Q) with the SEC on February 14, 2024. Palatin Technologies Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on June 30. Palatin Technologies Inc. is in the Pharmaceutical Preparations industry (SIC 2834). The company's principal executive offices are located in Cranbury, NJ.

Why It Matters

For investors and stakeholders tracking PALATIN TECHNOLOGIES INC, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Palatin Technologies' financial health and operational status for the second quarter of fiscal year 2024. The information contained within this report is crucial for understanding the company's recent performance, any significant events, and potential future outlook.

Risk Assessment

Risk Level: medium — PALATIN TECHNOLOGIES INC shows moderate risk based on this filing. The company's financial performance and future prospects are subject to the inherent risks of the pharmaceutical industry, including regulatory hurdles, clinical trial outcomes, and market competition, as indicated by its SIC code and the nature of its business.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-Q to assess Palatin Technologies' current financial position and strategic direction.

Financial Highlights

revenue

10000000

operating Margin

4030

total Assets

300000000

total Debt

11656714

net Income

4030

eps

0.01

gross Margin

4030

cash Position

14305137

Key Numbers

• 0.01 — EPS (Q2 2024)
• 10000000 — Revenue (Q2 2024)
• 4030 — Net Income (Q2 2024)
• 0.01 — EPS (Q2 2024)
• 300000000 — Total Assets (Q2 2024)
• 11656714 — Total Debt (Q2 2024)
• 14305137 — Cash (Q2 2024)
• 4030 — Operating Margin (Q2 2024)

Key Players & Entities

• PALATIN TECHNOLOGIES INC (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240214 (date) — FILED AS OF DATE
• 0000911216 (company) — CENTRAL INDEX KEY
• 2834 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• NJ (location) — STATE OF INCORPORATION
• 0630 (date) — FISCAL YEAR END
• CRANBURY (location) — CITY

FAQ

Key Dates

• 2023-12-31: End of Reporting Period — Covers Q2 FY2024 financial results.
• 2024-02-14: Filing Date — Date the 10-Q was submitted to the SEC.
• 2023-07-01: Start of Reporting Period — Beginning of Q2 FY2024.

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share PTN NYSE American Indica
• $159 million — sales-based milestone payments of up to $159 million on sales of Vyleesi by Cosette and its

Filing Documents

• ptn_10q.htm (10-Q) — 1120KB
• ptn_ex43.htm (EX-4.3) — 19KB
• ptn_ex44.htm (EX-4.4) — 20KB
• ptn_ex102.htm (EX-10.2) — 345KB
• ptn_ex311.htm (EX-31.1) — 10KB
• ptn_ex312.htm (EX-31.2) — 11KB
• ptn_ex321.htm (EX-32.1) — 2KB
• ptn_ex322.htm (EX-32.2) — 2KB
• ptn_10qimg20.jpg (GRAPHIC) — 46KB
• ptn_10qimg19.jpg (GRAPHIC) — 4KB
• 0001654954-24-001789.txt (&nbsp;) — 5205KB
• ptn-20231231.xsd (EX-101.SCH) — 57KB
• ptn-20231231_lab.xml (EX-101.LAB) — 279KB
• ptn-20231231_cal.xml (EX-101.CAL) — 50KB
• ptn-20231231_pre.xml (EX-101.PRE) — 222KB
• ptn-20231231_def.xml (EX-101.DEF) — 93KB
• ptn_10q_htm.xml (XML) — 615KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets as of December 31, 2023 and June 30, 2023 5 Consolidated Statements of Operations for the Three and Six Months Ended December 31, 2023 and 2022 6 Consolidated Statements of Changes in Stockholders Deficiency for the Three and Six Months Ended December 31, 2023 7 Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders Equity for the Three and Six Months Ended December 31, 2022 8 Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2023 and 2022 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 4.

Controls and Procedures

Controls and Procedures 27

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Defaults Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 2 Table of Contents Special Note Regarding Forward-Looking Statements In this Quarterly Report on Form 10-Q (this "Quarterly Report") references to "we," "our," "us," the "Company" or "Palatin" mean Palatin Technologies, Inc. and its subsidiary. our significant operating losses since our inception and our need to obtain additional financing has caused management to determine there is substantial doubt regarding our ability to continue as a going concern; our ability to obtain additional financing on terms acceptable to us, or at all, including unavailability of funds or delays in receiving funds as a result of economic disruptions; our expectation that we will incur losses for the foreseeable future and may never achieve or maintain profitability; our business, financial condition, and results of operations may be adversely affected by increases in costs of and delays in conducting human clinical trials and the performance of our contractors and suppliers, reduction in our productivity or the productivity of our contractors and suppliers, supply chain constraints, and labor shortages; the ability of Cosette Pharmaceuticals, Inc. ("Cosette"), which acquired Vyleesi (the trade name for bremelanotide) for the treatment of premenopausal women with hypoactive sexual desire disorder ("HSDD

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. PALATIN TECHNOLOGIES, INC . and Subsidiary Consolidated Balance Sheets (unaudited) December 31, 2023 June 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,485,252 $ 7,989,582 Marketable securities - 2,992,890 Accounts receivable 2,346,163 2,915,760 Inventories - 526,000 Prepaid expenses and other current assets 413,954 1,897,281 Total current assets 12,245,369 16,321,513 Property and equipment, net 550,465 684,910 Right-of-use assets - operating leases 702,003 876,101 Other assets 56,916 56,916 Total assets $ 13,554,753 $ 17,939,440 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Accounts payable $ 1,593,476 $ 4,303,527 Accrued expenses 5,614,247 6,511,059 Short-term operating lease liabilities 363,718 354,052 Short-term finance lease liabilities 99,912 106,392 Other current liabilities 3,528,050 3,856,800 Total current liabilities 11,199,403 15,131,830 Long-term operating lease liabilities 357,744 544,323 Long-term finance lease liabilities - 46,014 Other long-term liabilities 1,106,700 2,083,200 Warrant liabilities 11,852,232 1,850,544 Total liabilities 24,516,079 19,655,911 Commitments and contingencies (Note 13) Contingently redeemable warrants 423,100 263,400 Stockholders' deficiency: Preferred stock of $ 0.01 par value – authorized 10,000,000 shares: shares issued and outstanding designated as follows: Series A Convertible: authorized 4,030 shares as of December 31, 2023: issued and outstanding 4,030 shares as of December 31, 2023 and June 30, 2023 40 40 Common stock of $ 0.01 par value – authorized 300,000,000 shares: issued and outstanding 14,305,137 shares as of December 31, 2023 and 11,656,714 shares as of June 30, 2023 143,051 116,567 Additional paid-in capital 413,552,953 409,933,959 Accumulated deficit ( 425,080,470 ) ( 412,030,437 ) Total stockh

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (1) ORGANIZATION Nature of Business - Palatin Technologies, Inc. ("Palatin" or the "Company") is a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor system. The Company's product candidates are targeted, receptor-specific therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. Melanocortin Receptor System. The melanocortin receptor system has effects on food intake, metabolism, sexual function, inflammation, and immune system responses. There are five melanocortin receptors, MC1r through MC5r. Modulation of these receptors, through use of receptor-specific agonists, which activate receptor function, or receptor-specific antagonists, which block receptor function, can have significant pharmacological effects. The Company's prior commercial product, Vyleesi, was approved by the U.S. Food and Drug Administration ("FDA") in June 2019 for the treatment of hypoactive sexual desire disorder ("HSDD") in premenopausal women. As disclosed in Note 5, this product was acquired by Cosette Pharmaceuticals, Inc. ("Cosette") on December 19, 2023. The Company's new product development activities focus primarily on MC1r agonists, with potential to treat inflammatory and autoimmune diseases, such as dry eye disease, which is also known as keratoconjunctivitis sicca, uveitis, diabetic retinopathy, and inflammatory bowel disease. The Company believes that the MC1r agonist peptides in development have broad anti-inflammatory effects and appear to utilize mechanisms engaged by the endogenous melanocortin system in regulation of the immune system and resolution of inflammatory responses. The Company is also developing peptides that are active at more than one melanocortin receptor, and MC4r peptide and small molecule agonists with potential utility in obesity and metabolic-related disorders, including rar

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements The Company may receive contingent, sales-based milestone payments of up to $159 million on sales of Vyleesi by Cosette and its licensees . Concentrations – Concentrations in the Company's assets and operations subject it to certain related risks. Financial instruments that subject the Company to concentrations of credit risk primarily consist of cash, cash equivalents, and accounts receivable. The Company's cash, cash equivalents, and marketable securities are primarily invested in one investment account sponsored by a large financial institution. (2) BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnote disclosures required to be presented for complete financial statements. In the opinion of management, these consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation. The results of operations for the three and six months ended December 31, 2023, may not nec

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View this 10-Q filing on SEC EDGAR