Pulmatrix Announces Third Quarter 2022 Financial Results and Provides Corporate Update

Ted Raad, Chief Executive Officer of Pulmatrix commented, "In this quarter we have advanced both PUR3100 and PUR1900 towards important data catalysts. We completed patient dosing for PUR3100, our orally inhaled dihydroergotamine (DHE) being developed for the treatment of acute migraine, in a Phase 1 study with data expected to be released in early Q1 2023. In addition to safety and tolerability, the study will evaluate the pharmacokinetics of PUR3100 compared to intravenous DHE. This will allow us to better understand the potential efficacy and tolerability profile of PUR3100, which we believe could be beneficial to patients suffering from acute migraine. We also commenced study start-up activities for the PUR1900 Phase 2 study and remain on track to initiate patient dosing in the first quarter of 2023. PUR1900 has the potential to be the first approved therapy for the treatment of Allergic Bronchopulmonary Aspergillosis (ABPA) in patients with asthma."

Third Quarter 2022 and Recent Program Highlights

PUR1900 in development for ABPA

PUR3100 in development for acute migraine

PUR1800 in development for Acute Exacerbations of Chronic Obstructive Pulmonary Disease (AECOPD)

Third Quarter 2022 Financial Results

Revenues increased $0.8 million to $1.9 million for the three months ended September 30, 2022 compared to $1.1 million for the same period in 2021. The increase in revenue was due to $1.9 million in revenue in the three months ended September 30, 2022 for the PUR1900 program related to the Cipla Agreement compared to no revenues for the three months ended September 30, 2021. This was partially offset by no revenues in the three months ended September 30, 2022 for the PUR1800 program compared to $1.1 million for the three months ended September 30, 2021.

For the three months ended September 30, 2022, research and development expenses increased $1.3 million to $5.3 million compared to $4.0 million for the same period in 2021. The increase was primarily due to increased spending of $1.5 million in clinical costs related to the PUR1900 program, $0.6 million in employment costs and $0.2 million in facility costs. This amount was partially offset by a $1.0 million decrease in non-clinical and clinical costs related to the PUR1800 program.

General and administrative expenses were unchanged at $1.7 million for the three months ended September 30, 2022 compared to the same period in 2021.

During the three months ended September 30, 2022, the Company sold 252,013 shares of its common stock at a weighted-average price of approximately $5.70 per share, for net proceeds of approximately $1.4 million, under the At-The-Market Sales Agreement established with H.C. Wainwright & Co., LLC in May 2021.

Cash and cash equivalents as of September 30, 2022 was $40.7 million. As of November 10, 2022, Pulmatrix expects its existing cash and cash equivalents will enable it to fund operating expenses and capital expenditure into the second quarter of 2024.

 PULMATRIX, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

September 30,

2022

 December 31,
2021

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

40,683

$

53,840

Restricted cash

153

-

Accounts receivable

476

67

Prepaid expenses and other current assets

1,913

871

Total current assets

43,225

54,778

Property and equipment, net

265

321

Operating lease right-of-use asset

1,060

2,093

Long-term restricted cash

1,472

1,625

Other long-term assets

428

-

Total assets

$

46,450

$

58,817

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

1,155

839

Accrued expenses and other current liabilities

2,748

1,233

Operating lease liability

1,281

1,431

Deferred revenue

1,140

939

Total current liabilities

6,324

4,442

Deferred revenue, net of current portion

5,080

6,069

Operating lease liability, net of current portion

-

857

Total liabilities

11,404

11,368

Commitments and contingencies (Note 12)

Stockholders' equity:

 Preferred stock, $0.0001 par value — 500,000 shares authorized;
6,746 shares designated Series A convertible preferred stock; no
and 1,830 shares issued and outstanding at September 30, 2022
and December 31, 2021, respectively

-

1,081

 Common stock, $0.0001 par value — 200,000,000 shares authorized;
3,639,185 and 3,222,037 shares issued and outstanding at September
30, 2022 and December 31, 2021, respectively

-

-

Additional paid-in capital

304,306

301,008

Accumulated deficit

(269,260)

(254,640)

Total stockholders' equity

35,046

47,449

Total liabilities and stockholders' equity

$

46,450

$

58,817

 PULMATRIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except share and per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2022

2021

2022

2021

Revenues

$

1,872

$

1,069

$

4,363

$

4,713

Operating expenses:

Research and development

5,287

4,026

13,773

12,423

General and administrative

1,685

1,656

5,212

4,837

Goodwill impairment

-

3,577

-

3,577

Total operating expenses

6,972

9,259

18,985

20,837

Loss from operations

(5,100)

(8,190)

(14,622)

(16,124)

Other income (expense), net:

Interest income

102

1

118

6

Other (expense) income, net

(54)

5

(116)

(22)

Total other income (expense), net

48

6

2

(16)

Net loss

$

(5,052)

$

(8,184)

$

(14,620)

$

(16,140)

 Net loss per share attributable to
common stockholders –basic and diluted

$

(1.45)

$

(2.91)

$

(4.32)

$

(6.08)

 Weighted average common shares outstanding –
basic and diluted

3,478,157

2,812,454

3,383,171

2,654,099

About Pulmatrix, Inc.
Pulmatrix is a clinical-stage biopharmaceutical company developing innovative inhaled therapies to address serious pulmonary and non-pulmonary disease using its patented iSPERSE™ technology. The Company's proprietary product pipeline includes treatments for serious lung diseases, such as allergic bronchopulmonary aspergillosis ("ABPA"), Chronic Obstructive Pulmonary Disease ("COPD"), and neurologic disorders such as acute migraine. Pulmatrix's product candidates are based on its proprietary engineered dry powder delivery platform, iSPERSE™, which seeks to improve therapeutic delivery to the lungs by maximizing local concentrations and reducing systemic side effects to improve patient outcomes.

Forward-Looking Statements
Certain statements in this letter that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements of historical fact and may be identified by words such as "anticipates," "assumes," "believes," "can," "could," "estimates," "expects,", "extended", "forecasts," "guides," "intends," "is confident that", "may," "plans," "seeks," "projects," "targets," and "would," and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, the impact of the novel coronavirus (COVID-19) on the Company's ongoing and planned clinical trials; the geographic, social and economic impact of COVID-19 on the Company's ability to conduct its business and raise capital in the future when needed; delays in planned clinical trials; the ability to establish that potential products are efficacious or safe in preclinical or clinical trials; the ability to establish or maintain collaborations on the development of therapeutic candidates; the ability to obtain appropriate or necessary governmental approvals to market potential products; the ability to obtain future funding for developmental products and working capital and to obtain such funding on commercially reasonable terms; the Company's ability to manufacture product candidates on a commercial scale or in collaborations with third parties; changes in the size and nature of competitors; the ability to retain key executives and scientists; the ability to secure and enforce legal rights related to the Company's products, including patent protection. A discussion of these and other factors, including risks and uncertainties with respect to the Company, is set forth in the Company's filings with the SEC, including its most recent Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Timothy McCarthy, CFA
917-679-9282
tim@lifesciadvisors.com

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SOURCE Pulmatrix, Inc.