Palatin Technologies, Inc. reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a complete decline in product revenue, reporting $0 for the quarter compared to $2.1 million in the same period of 2023. This drop is attributed to the sale of its product Vyleesi® to Cosette Pharmaceuticals, which was finalized on December 19, 2023. The transaction included an upfront payment and potential sales-based milestone payments totaling up to $171 million, although no milestones have been achieved as of the reporting date.

The company's total operating expenses for the quarter were $7.8 million, a decrease from $8.2 million in the prior year. The net loss increased to $7.8 million from $5.2 million year-over-year, with a basic and diluted net loss per share of $(0.39), slightly improved from $(0.43) in the previous year. The weighted average number of shares outstanding rose significantly to 19.8 million from 12.2 million, reflecting the issuance of new shares.

As of September 30, 2024, Palatin's cash and cash equivalents plummeted to $2.4 million from $9.5 million at the end of June 2024, indicating a net cash decrease of $7.1 million for the quarter. The company’s total current liabilities increased to $9.9 million, while total stockholders' deficiency grew to $(7.7 million) from $(111,497) in the previous quarter, highlighting ongoing financial distress.

Palatin is actively seeking additional funding to support its product development efforts and achieve profitability. The company has expressed substantial doubt about its ability to continue as a going concern for the next year, given its current cash resources are only expected to last into the first half of 2025 without further funding.

Strategically, Palatin is focusing on developing new therapies, including a combination of bremelanotide with tirzepatide for obesity and a co-formulation for erectile dysfunction. The company has also terminated its Fosun License Agreement for Vyleesi in China and assigned its Kwangdong License Agreement for Korea to Cosette, retaining a milestone payment right.

Palatin Technologies is currently not in compliance with the NYSE American's continued listing standards due to insufficient stockholders' equity, having submitted a compliance plan to address these issues by April 2025. The company is under periodic review during this compliance period, with no guarantee of meeting the required milestones.