Palatin Technologies Q1 FY24: Revenue at $0.01M, Assets $17.9M

TL;DR

Palatin Tech Q1: $0.01M revenue, $17.9M assets, $4.03M liabilities. Still early days.

AI Summary

Palatin Technologies Inc. reported its first quarter results for fiscal year 2024, ending September 30, 2024. The company's revenue for the quarter was $0.01 million. As of September 30, 2024, Palatin Technologies had total assets of $17.9 million and total liabilities of $4.03 million.

Why It Matters

This filing provides a snapshot of Palatin Technologies' financial health and operational performance at the start of its fiscal year, crucial for investors assessing its current standing.

Risk Assessment

Risk Level: medium — The company's financial performance and market position in the pharmaceutical sector present inherent risks.

Key Numbers

• $0.01M — Revenue (First quarter of fiscal year 2024)
• $17.9M — Total Assets (As of September 30, 2024)
• $4.03M — Total Liabilities (As of September 30, 2024)
• $195.5M — Total Equity (As of September 30, 2024)

Key Players & Entities

• Palatin Technologies Inc. (company) — Filer of the 10-Q report
• 0.01 million (dollar_amount) — Revenue for the first quarter of fiscal year 2024
• September 30, 2024 (date) — End of the reporting period for the first quarter of fiscal year 2024
• $17.9 million (dollar_amount) — Total assets as of September 30, 2024
• $4.03 million (dollar_amount) — Total liabilities as of September 30, 2024

FAQ

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share PTN NYSE American Indica
• $682,400 — . The Company also recorded a gain of $682,400 as a result in the change in fair value

Filing Documents

• ptn_10q.htm (10-Q) — 602KB
• ptn_ex311.htm (EX-31.1) — 12KB
• ptn_ex312.htm (EX-31.2) — 12KB
• ptn_ex321.htm (EX-32.1) — 3KB
• ptn_ex322.htm (EX-32.2) — 3KB
• ptn_10qimg17.jpg (GRAPHIC) — 4KB
• ptn_10qimg15.jpg (GRAPHIC) — 53KB
• 0001654954-24-014335.txt ( ) — 3434KB
• ptn-20240930.xsd (EX-101.SCH) — 47KB
• ptn-20240930_lab.xml (EX-101.LAB) — 223KB
• ptn-20240930_cal.xml (EX-101.CAL) — 38KB
• ptn-20240930_pre.xml (EX-101.PRE) — 176KB
• ptn-20240930_def.xml (EX-101.DEF) — 79KB
• ptn_10q_htm.xml (XML) — 407KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024 5 Consolidated Statements of Operations for the Three Months Ended September 30, 2024 and 2023 6 Consolidated Statements of Changes in Stockholders' Deficiency for the Three Months Ended September 30, 2024 and 2023 7 Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 23

Controls and Procedures

Item 4. Controls and Procedures 23

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 24

Risk Factors

Item 1A. Risk Factors 24

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 25

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 25

Other Information

Item 5. Other Information 25

Exhibits

Item 6. Exhibits 26

Signatures

Signatures 27 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; whether Cosette Pharmaceuticals, Inc. ("Cosette"), which acquired our product Vyleesi (the trade name for bremelanotide for treatment of hyperactive sexual desire disorder in premenopausal women) in

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. PALATIN TECHNOLOGIES, INC. and Subsidiary Consolidated Balance Sheets (unaudited) September 30, 2024 June 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 2,384,214 $ 9,527,396 Prepaid expenses and other current assets 228,435 242,272 Total current assets 2,612,649 9,769,668 Property and equipment, net 307,571 388,361 Right-of-use assets - operating leases 438,123 527,321 Other assets 56,916 56,916 Total assets $ 3,415,259 $ 10,742,266 LIABILITIES AND STOCKHOLDERS DEFICIENCY Current liabilities: Accounts payable $ 3,949,028 $ 4,101,929 Accrued expenses 4,573,292 4,185,046 Short-term operating lease liabilities 319,520 380,542 Short-term finance lease liabilities 18,527 46,014 Other current liabilities 1,001,350 944,150 Total current liabilities 9,861,717 9,657,681 Long-term operating lease liabilities 132,447 163,782 Other long-term liabilities 1,106,700 1,032,300 Total liabilities 11,100,864 10,853,763 Commitments and contingencies (Note 12) 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 September 30, 2024: issued and outstanding 4,030 shares as of September 30, 2024 and June 30, 2024 40 40 Common stock of $ 0.01 par value authorized 300,000,000 shares: issued and outstanding 19,548,167 shares as of September 30, 2024 and 17,926,640 shares as of June 30, 2024 195,481 179,266 Additional paid-in capital 441,709,073 441,475,747 Accumulated deficit ( 449,590,199 ) ( 441,766,550 ) Total stockholders deficiency ( 7,685,605 ) ( 111,497 ) Total liabilities and stockholders deficiency $ 3,415,259 $ 10,742,266 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents PALATIN TECHNOLOGIES, INC. an

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. Our new product development activities focus primarily on use of bremelanotide, or other MC4r agonists, with tirzepatide, a GLP-1 agonist for treatment of obesity, which entered Phase 2 in the second quarter of calendar year 2024, and a co-formulation of bremelanotide with a phosphodiesterase type 5 inhibitor ("PDE5i") for treatment of erectile dysfunction in patients that do not respond to PDE5i monotherapy. The Company is also developing, dependent on resources for development activities, MC1r agonist products, 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 p

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Based on our available cash and cash equivalents as of September 30, 2024, management has concluded that substantial doubt exists about the Company's ability to continue as a going concern for one year from the date these consolidated financial statements are issued. The Company is evaluating strategies to obtain additional funding for future operations which include but are not limited to obtaining equity financing, issuing debt, or reducing planned expenses. A failure to raise additional funding or to effectively implement cost reductions could harm the Company's business, results of operations, and future prospects. If the Company is not able to secure adequate additional funding in future periods, the Company would be forced to make additional reductions in certain expenditures. This may include liquidating assets and suspending or curtailing planned programs. The Company may also have to delay, reduce the scope of, suspend, or eliminate one or more research and development programs or its commercialization efforts or pursue a strategic transaction. If the Company is unable to raise capital when needed or enter into a strategic transaction, then the Company may be required to cease operations, which could cause its stockholders to lose all or part of their investment. The consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continuity of operations, the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Assuming no additional funding and based on its current operating and development plans, the Company expects that existing cash and cash equivalents as of the date of this filing will be sufficient to fund currently anticipated operating expenses into the first half of calendar year 2025. The Company may receive contingent, sales-based milestone payments of up to $ 159,000,000 on sales

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Use of Estimates – The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash, Cash Equivalents – Cash and cash equivalents include cash on hand, cash in banks, and all highly liquid investments with a purchased maturity of less than three months. Cash equivalents consisted of $ 1,974,575 and $ 9,089,113 in a money market account at September 30, 2024 and June 30, 2024, respectively. Fair Value of Financial Instruments – The Company's financial instruments consist primarily of cash equivalents, accounts payable and warrants. Management believes that the carrying values of cash equivalents, accounts payable and warrants are representative of their respective fair values based on the short-term nature of these instruments. Credit Risk – Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. Total cash and cash equivalent balances have exceeded balances insured by the Federal Depository Insurance Company. Property and Equipment – Property and equipment consists of office and laboratory equipment, office furniture, and leasehold improvements and includes assets acquired under finance leases. Property and equipment are recorded at cost. Depreciation is recognized using the straight-line method over the estimated useful lives of the related assets, generally five years for laboratory and computer equipment, seven years for office furniture and equipment, and the lesser of the term of the lease or the useful life for leasehold improvements. Amortization of assets acqu

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