TFF Pharmaceuticals, Inc. Reports Financial Results for the Quarter Ended September 30, 2024" or "TFF Pharmaceuticals, Inc. Files Quarterly Report with SEC, Announces Plan to Dissolve and Liquidate" Note that the article is a quarterly report and includes financial statements, management's discussion and analysis, and other information required by the SEC.
TFF Pharmaceuticals, Inc. Reports Financial Results for the Quarter Ended September 30, 2024" or "TFF Pharmaceuticals, Inc. Files Quarterly Report with SEC, Announces Plan to Dissolve and Liquidate" Note that the article is a quarterly report and includes financial statements, management's discussion and analysis, and other information required by the SEC.
TFF Pharmaceuticals, Inc. (the “Company”) filed its quarterly report for the period ended September 30, 2024, which includes unaudited condensed consolidated financial statements. The Company reported a net loss of $1.4 million for the quarter, compared to a net loss of $2.1 million for the same period in the prior year. As of September 30, 2024, the Company had cash and cash equivalents of $1.3 million and a working capital deficit of $2.4 million. The Company also announced that its board of directors has approved a plan of complete liquidation and dissolution, subject to stockholder approval, and intends to call a special meeting to seek approval of the plan. Trading in the Company’s securities is highly speculative and poses substantial risks, and the Company urges extreme caution with respect to existing and future investments in its securities.
Overview
TFF Pharmaceuticals, Inc. (NASDAQ: TFFP) was a clinical stage biopharmaceutical company focused on developing and commercializing innovative drug products based on its patented Thin Film Freezing (TFF) technology platform. The company believed its TFF platform could significantly improve the solubility of poorly water-soluble drugs, thereby improving their bioavailability and pharmacokinetics.
Recent Developments
- In March 2024, TFF Pharmaceuticals completed a registered direct offering, raising $1.2 million in gross proceeds.
- In May 2024, the company completed a public offering, raising $4.2 million in net proceeds.
- In November 2024, TFF Pharmaceuticals’ board of directors approved the dissolution and liquidation of the company, pursuant to a plan of complete liquidation and dissolution.
- As a result of the planned dissolution, the company terminated a key patent license agreement and expects there will not be any amounts available for distribution to shareholders.
Results of Operations
- Total revenues decreased 18% in Q3 2024 compared to Q3 2023, due to lower feasibility revenues.
- Research and development expenses decreased 29% in Q3 2024 compared to Q3 2023, primarily due to lower manufacturing and clinical costs.
- General and administrative expenses decreased 8% in Q3 2024 compared to Q3 2023, due to lower payroll and insurance costs.
- The company incurred a net loss of $3.5 million in Q3 2024 compared to $4.4 million in Q3 2023.
Financial Condition
- As of September 30, 2024, TFF Pharmaceuticals had $2.6 million in cash and cash equivalents, with a working capital deficit of $0.4 million.
- The company’s existing cash is expected to be used primarily to fund the wind-down of operations, execute the planned reduction-in-force, and carry out the dissolution plan.
- Based on current information, the company does not expect there will be any amounts available for distribution to shareholders in the dissolution.
Outlook
- TFF Pharmaceuticals has announced plans to dissolve and liquidate the company, following the termination of a key patent license agreement.
- The company expects to continue incurring significant expenses related to the dissolution and reduction-in-force, with its existing cash not being sufficient to meet all obligations.
- There is some possibility the company may realize greater than expected value from its remaining assets, including intellectual property and clinical data, but the current expectation is that there will not be any amounts available for distribution to shareholders.
Overall, TFF Pharmaceuticals is in the process of winding down its operations after terminating a key patent license agreement, with the company’s board approving a plan of dissolution that is subject to shareholder approval. The company’s financial results reflect the wind-down of its clinical programs and preparations for an orderly liquidation.
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