TFF Pharmaceuticals Reports Mixed Financial Results, Plans Dissolution and Reduction in Force

TFF Pharmaceuticals, Inc. reported significant financial changes in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a decrease in total revenues for the third quarter, reporting $193,387, down 18% from $234,763 in the same period of 2023. However, for the nine-month period, revenues increased by 69% to $1,046,882, compared to $619,543 in the prior year. This growth was primarily driven by a substantial rise in grant revenues, which surged by 1,100% to $543,636 for the nine months ended September 30, 2024.

Despite the revenue growth over nine months, TFF Pharmaceuticals reported a net loss of $3.5 million for the third quarter, an improvement from a net loss of $4.4 million in the same period of 2023. For the nine months, the net loss was $13.8 million, down from $16.5 million in the previous year. The company’s operating expenses also decreased, with total operating expenses for the third quarter falling to $3.8 million, a 19% reduction from $4.7 million in 2023.

As of September 30, 2024, TFF Pharmaceuticals had total assets of approximately $7.1 million, a significant decrease from $12.0 million at the end of 2023. Current liabilities increased to $3.9 million, up from $2.4 million, contributing to a working capital deficit of approximately $0.4 million. Cash and cash equivalents were reported at $2.6 million, down from $5.5 million at the end of 2023.

Strategically, the company is undergoing a Reduction in Force, which will affect substantially all employees, resulting in one-time charges of approximately $1.8 million. This decision aligns with the board's approval of a Plan of Dissolution and liquidation of the company, pending stockholder approval. The dissolution plan includes the termination of the Amended and Restated Patent License Agreement with The University of Texas at Austin, leading to the loss of critical intellectual property rights.

TFF Pharmaceuticals has not generated revenues from commercial operations since its inception in January 2018 and has focused on early-stage clinical trials for its product candidates, TFF Tacrolimus Inhalation Powder and TFF Voriconazole Inhalation Powder. The company has completed Phase 1 studies for both candidates and initiated Phase 2 trials, with positive initial data released in December 2023. However, the future of these trials is uncertain as the company evaluates its strategic options amid the planned dissolution.