Petros Pharmaceuticals, Inc. reported significant financial changes in its 10-Q filing for the nine months ended September 30, 2024. The company experienced a decline in net sales, reporting $4.39 million, down 29% from $6.19 million in the same period of 2023. This decrease was primarily attributed to lower sales of its flagship product, Stendra®, which saw a reduction of approximately $1.33 million, alongside a $469,734 decline in medical device sales.

Gross profit for the nine-month period also fell to $3.44 million, compared to $4.71 million in 2023, although the gross profit margin improved slightly to 78% from 76%. Total operating expenses decreased to $11.99 million from $13.29 million, leading to a loss from operations of $8.55 million, a marginal improvement from the $8.58 million loss reported in the previous year. The net loss before income taxes narrowed to $5.05 million from $8.48 million in 2023, with the net loss attributable to common stockholders increasing to $16.01 million from $9.97 million.

The company’s balance sheet showed total current assets of $10.72 million as of September 30, 2024, down from $20.39 million at the end of 2023. Total assets decreased to $20.69 million from $33.80 million, while total liabilities fell to $17.58 million from $21.32 million. Stockholders’ equity also declined significantly to $3.12 million from $12.07 million.

Petros Pharmaceuticals is actively pursuing strategies to enhance liquidity, as it reported negative working capital of $1.8 million and an accumulated deficit of $103.93 million. The company is exploring various financing options, including secured or unsecured debt and equity offerings, to support its operations. Notably, it has faced challenges with Nasdaq compliance regarding its stock price, receiving extensions to meet the minimum bid price requirement.

In terms of operational changes, the company plans to discontinue sales of Stendra® to wholesalers, which accounted for a substantial portion of its sales, effective November 1, 2024. This strategic shift is expected to impact future revenue streams significantly. Additionally, the company has committed approximately $1.8 million for non-clinical consumer studies related to Stendra®'s potential OTC designation, with completion expected in Q4 2024.

Overall, Petros Pharmaceuticals is navigating a challenging financial landscape while implementing strategic initiatives aimed at stabilizing and potentially enhancing its market position.