Petros Pharmaceuticals Reports $2.26 Million Net Loss in Q1 2025 Amid Strategic Transition

Petros Pharmaceuticals, Inc. reported a net loss of $2.26 million for the first quarter of 2025, a slight increase from a net loss of $2.16 million in the same period of 2024. The company's revenue from discontinued operations, primarily from its Metuchen subsidiary, was $713,539, down from $1.39 million year-over-year. The decline in revenue is attributed to the company's decision to discontinue sales of its erectile dysfunction medication, Stendra®, and the ongoing transition of its business model towards nonprescription pharmaceuticals. Operating expenses for the quarter were $1.46 million, a decrease from $1.50 million in the prior year, reflecting reduced stock-based compensation and payroll expenses.

In terms of financial position, Petros reported total assets of $17.61 million as of March 31, 2025, compared to $10.64 million at the end of 2024. The increase in assets was primarily driven by a significant rise in cash and cash equivalents, which grew to $8.93 million from $1.72 million. However, total liabilities also increased substantially to $27.19 million, up from $18.10 million, largely due to the addition of a warrant liability of $8.29 million. The company’s accumulated deficit reached $115.47 million, reflecting ongoing financial challenges.

Strategically, Petros has undergone significant changes, including the termination of its license agreement with Vivus for Stendra® and the planned assignment of its Metuchen assets to a third-party fiduciary as part of a judicial insolvency process. This transition is expected to allow the company to focus on developing a proprietary technology platform aimed at facilitating the Rx-to-OTC switch for nonprescription pharmaceuticals. Additionally, the company executed a public offering in February 2025, raising approximately $9.6 million, which is intended to support its operational needs and strategic initiatives.

Operationally, the company has faced challenges in maintaining its market presence, as evidenced by the decline in customer engagement metrics associated with its discontinued product lines. The company is currently exploring new avenues for revenue generation and is actively seeking additional financing to support its operations. As of March 31, 2025, Petros had a negative working capital of $2.1 million, raising concerns about its liquidity and ability to sustain operations over the next 12 months without further capital infusion.

Looking ahead, Petros Pharmaceuticals acknowledges the substantial doubt regarding its ability to continue as a going concern. The company is evaluating various financing strategies, including potential equity and debt offerings, to secure the necessary liquidity. Management remains focused on executing its new business strategy while addressing the challenges posed by its current financial situation and the need for compliance with Nasdaq listing requirements.