TherapeuticsMD Announces First Quarter 2022 Financial Results

About this update from Therapeuticsmd, Inc.

- Quarterly total net product revenue of $19.3 million - - ANNOVERA® TRx of 8,014, an increase of 27% over Q1 2021 - - Announced and completed vitaCare divestiture in five weeks - - Conference call scheduled for 4:30 p.m. ET today - BOCA RATON, Fla. --(BUSINESS WIRE)-- TherapeuticsMD, Inc. (“TXMD” or the “Company”) (NASDAQ: TXMD), an innovative, leading women’s healthcare company, today reported financial results for the first quarter ended March 31, 2022 . “Our revenue performance during the quarter was impacted by ANNOVERA manufacturing challenges as anticipated, but we believe these obstacles peaked in the first quarter of 2022 and expect incremental improvement as the year progresses. I’m also pleased to report that the $150 million divestiture of vitaCare that we announced during the quarter was driven to a successful conclusion, closing just five weeks following the announcement,” said Hugh O’Dowd, CEO of TherapeuticsMD . “With our increased focus and optimized sales organization, we believe that we will now be able to properly leverage all three of our assets and are confident these products can play a significant role in the marketplace,” concluded O’Dowd. First Quarter 2022 Financial Results and Business Highlights Three Months Ended March 31 , 2022 2021 Product revenue: ANNOVERA $ 8,510 $ 8,750 IMVEXXY 6,969 7,012 BIJUVA 2,560 2,445 Prescription vitamin 875 1,425 Product revenue, net 18,914 19,632 License and service revenue 419 234 Total revenue, net $ 19,333 $ 19,866 ANNOVERA (segesterone acetate and ethinyl estradiol vaginal system) ANNOVERA net product revenue of $8.5 million for the first quarter of 2022 decreased by approximately $0.3 million compared to $8.8 million for the first quarter of 2021. Approximately 8,014 ANNOVERA prescriptions were dispensed to patients during the first quarter of 2022. Over 3,601 healthcare providers (HCPs) prescribed ANNOVERA during the first quarter, of which 1,274 were new writers. Growth in prescribers of approximately 16% over first quarter of 2021. IMVEXXY ® (estradiol vaginal inserts) IMVEXXY net product revenue of $7.0 million for the first quarter of 2022 decreased by less than $0.1 million compared to $7.0 million for the first quarter of 2021. Approximately 99,743 IMVEXXY prescriptions were dispensed to patients during the first quarter of 2022. BIJUVA ® (estradiol and progesterone) capsules BIJUVA net product revenue of $2.6 million for the first quarter of 2022 increased by approximately $0.2 million compared to $2.4 million for the first quarter of 2021. BIJUVA net product revenue for the first quarter of 2022 includes $0.7 million of export sales through our international licensing and supply agreement with Theramex HQ UK Limited . Cost of Goods Sold and Gross Margin Cost of goods was $4.9 million with product gross margin of 74% for the first quarter of 2022 compared to $4.7 million with product gross margin of 76% for the first quarter of 2021. The lower product gross margin for the first quarter of 2022 reflects the impact of $0.7 million of BIJUVA export sales, which were sold at cost. Operating Expense, Net Loss and Related Information Total operating expense of $40.7 million for the first quarter of 2022 decreased by $3.8 million compared to $44.5 million for the first quarter of 2021. Net loss for the first quarter of 2022 was $49.0 million , or $5.69 per basic and diluted share, compared to net loss for the first quarter of 2021 of $39.4 million , or $5.67 per basic and diluted share. Included in net loss for the first quarter of 2022 was a loss on extinguishment of debt of $8.4 million . Without this non-recurring non-operating expense item, net loss for the first quarter of 2022 would have been $40.6 million , or $4.72 per basic and diluted share. Balance Sheet As of March 31, 2022 , the Company’s cash on hand totaled $30.4 million , compared with $65.1 million as of December 31, 2021 . As of March 31, 2022 , the remaining outstanding principal amount under the Company’s Financing Agreement was $225.0 million , which reflects a repayment of $5.0 million of principal during 2022 and an increase in debt related to a paid in kind ("PIK") debt financing fee of $30.0 million . On April 14, 2022 , the Company utilized $120.0 million of net proceeds from the divestiture of the vitaCare Prescription Services, Inc. business to paydown a portion of the debt, and $16.0 million of the PIK financing fee was waived. Conference Call and Webcast Details TherapeuticsMD will host a conference call and live audio webcast today at 4:30 p.m. ET to discuss these financial results and provide a business update. Date: Monday, May 16, 2022 Time: 4:30 p.m. ET Telephone Access (US): 866-665-9531 Telephone Access (International): 724-987-6977 Access Code for All Callers: 3179996 A live webcast and audio archive for the event may be accessed on the home page or from the “Investors & Media” section of the TherapeuticsMD website at www.therapeuticsmd.com . Please connect to the website prior to the start of the presentation to ensure adequate time for any software downloads that may be necessary to listen to the webcast. A replay of the webcast will be archived on the website for at least 30 days. In addition, a digital recording of the conference call will be available for replay beginning two hours after the call's completion and for at least 30 days with the dial-in 855-859-2056 or international 404-537-3406 and Conference ID: 3179996. Please see the Full Prescribing Information, including indication and Boxed WARNING, for each TherapeuticsMD product as follows: IMVEXXY (estradiol vaginal inserts) at https://imvexxy.com/pi.pdf BIJUVA (estradiol and progesterone) capsules at https://www.bijuva.com/pi.pdf ANNOVERA (segesterone acetate and ethinyl estradiol vaginal system) at www.annovera.com/pi.pdf Forward-Looking Statements This press release by TherapeuticsMD, Inc. may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to TherapeuticsMD’s objectives, plans and strategies as well as statements, other than historical facts, that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as "believes," "hopes," "may," "anticipates," "should," "intends," "plans," "will," "expects," "estimates," "projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements in this press release are made as of the date of this press release, and the company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of the company’s control. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the sections titled "Risk Factors" in the company’s filings with the Securities and Exchange Commission , including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as reports on Form 8-K, and include the following: the effects of the COVID-19 pandemic; how the proceeds from the divestiture of the company’s vitaCare business will be utilized; the company’s ability to maintain or increase sales of its products; the company’s ability to develop and commercialize IMVEXXY®, ANNOVERA®, and BIJUVA® and obtain additional financing necessary therefor; whether the company will be able to comply with the covenants and conditions under its term loan facility and the company’s ability to refinance such facility; the effects of supply chain issues on the supply of the company’s products; the potential of adverse side effects or other safety risks that could adversely affect the commercialization of the company’s current or future approved products or preclude the approval of the company’s future drug candidates; whether the FDA will approve the manufacturing supplement for ANNOVERA; the company’s ability to protect its intellectual property, including with respect to the Paragraph IV notice letters the company received regarding IMVEXXY; the length, cost and uncertain results of future clinical trials; the company’s reliance on third parties to conduct its manufacturing, research and development and clinical trials; the ability of the company’s licensees to commercialize and distribute the company’s products; the ability of the company’s marketing contractors to market ANNOVERA; the availability of reimbursement from government authorities and health insurance companies for the company’s products; the impact of product liability lawsuits; the influence of extensive and costly government regulation; the impact of leadership transitions; the volatility of the trading price of the company’s common stock and the concentration of power in its stock ownership. - Financial Statements to Follow - TherapeuticsMD, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited - in thousands, except per share data) March 31, 2022 December 31, 2021 Assets: Current assets: Cash $ 30,384 $ 65,122 Accounts receivable, net of allowance for credit losses of $1,334 as of March 31, 2022 and December 31, 2021 35,413 36,176 Inventory 8,967 7,622 Prepaid and other current assets 9,660 10,548 Total current assets 84,424 119,468 Fixed assets, net 1,082 1,199 License rights and other intangible assets, net 39,547 40,318 Right of use assets 8,075 8,234 Other non-current assets 253 253 Total assets $ 133,381 $ 169,472 Liabilities and stockholders' equity (deficit): Current liabilities: Current maturities of long-term debt $ 202,857 $ 188,269 Accounts payable 20,753 20,318 Accrued expenses and other current liabilities 41,225 44,304 Total current liabilities 264,835 252,891 Operating lease liabilities 7,897 8,063 Other non-current liabilities 1,229 2,139 Total liabilities 273,961 263,093 Commitments and contingencies Stockholders' deficit: Preferred stock, par value $0.001 ; 10,000 shares authorized, none issued — — Common stock, par value $0.001 ; 12,000 shares authorized, 8,669 and 8,598 (each) adjusted for the 50-for-1 reverse stock split) issued and outstanding as of March 31, 2022 and December 31, 2021 , respectively 9 9 Additional paid-in capital 959,792 957,730 Accumulated deficit (1,100,381 ) (1,051,360 ) Total stockholders' deficit (140,580 ) (93,621 ) Total liabilities and stockholders' deficit $ 133,381 $ 169,472 TherapeuticsMD, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited - in thousands, except per share data) Three Months Ended March 31 , 2022 2021 Revenue, net: Product $ 18,914 $ 19,632 License and service 419 234 Total revenue, net 19,333 19,866 Cost of goods sold 4,860 4,687 Total gross profit 14,473 15,179 Operating expenses: Selling and marketing 18,895 24,024 General and administrative 20,407 18,383 Research and development 1,400 2,050 Total operating expenses 40,702 44,457 Loss from operations (26,229 ) (29,278 ) Other expense: Loss on extinguishment of debt (8,380 ) — Interest expense and other financing costs (14,412 ) (10,227 ) Other income, net — 122 Total other expense, net (22,792 ) (10,105 ) Loss before income taxes (49,021 ) (39,383 ) Provision for income taxes — — Net loss $ (49,021 ) $ (39,383 ) Loss per common share, basic and diluted $ (5.69 ) $ (5.67 ) Weighted average common shares, basic and diluted 8,614 6,945 TherapeuticsMD, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited - in thousands) Three Months Ended March 31 , 2022 2021 Cash flows from operating activities: Net loss $ (49,021 ) $ (39,383 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,100 1,019 Charges to provision for doubtful accounts 274 230 Inventory charge 73 502 Debt financing fees 9,048 1,272 Loss on extinguishment of debt 8,380 — Share-based compensation 2,062 2,957 Other (7 ) 216 Changes in operating assets and liabilities: Accounts receivable 489 (1,567 ) Inventory (1,418 ) 145 Prepaid and other current assets 888 (817 ) Accounts payable 435 (10,758 ) Accrued expenses and other current liabilities (1,829 ) 7,804 Total adjustments 19,495 1,003 Net cash used in operating activities (29,526 ) (38,380 ) Cash flows from investing activities: Payment of patent related costs (170 ) (375 ) Purchase of fixed assets (42 ) (63 ) Net cash used in investing activities (212 ) (438 ) Cash flows from financing activities: Proceeds from sale of common stock, net of costs — 150,899 Proceeds from exercise of options and warrants — 50 Repayments of debt (5,000 ) (50,000 ) Payment of debt financing fees — (5,000 ) Net cash (used in) provided by financing activities (5,000 ) 95,949 Net (decrease) increase in cash (34,738 ) 57,131 Cash, beginning of period 65,122 80,486 Cash, end of period $ 30,384 $ 137,617 Supplemental disclosure of cash flow information: Interest paid $ 5,364 $ 8,955 Supplemental disclosure of noncash financing activities: Paid in kind ("PIK") debt financing fees with corresponding increase in debt $ 30,000 $ — View source version on businesswire.com : https://www.businesswire.com/news/home/20220516005177/en/ Michael C. Donegan Interim Chief Financial Officer, Chief Accounting Officer and Vice President Finance 561-961-1900 Lisa M. Wilson In-Site Communications, Inc. 212-452-2793 [email protected] Source: TherapeuticsMD, Inc.

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