Agile Therapeutics, Inc. (NASDAQ:AGRX) Q4 2022 Earnings Call Transcript

To your next question about the range, we €“ Jason and I think it’s in a range. So, I think before we said $9 million to $10.5 million, something like that, because it gets a little lumpy at times. When we buy samples, for instance, we had to buy the batch and expense it in that quarter. So, I think we are in kind of a range of, I will call it, $9.5 million to $10.5 million, I think was what we said before. The $9.2 million we are proud of. That’s done in a great day. That’s a lot of belt tightening. But we didn’t cut corners. Amy got the investments she needed to grow this business. She wasn’t complaining. She always wants more, but she is not complaining. And then with €“ I just want to clarify the profitability, I mean cash flow sustainability.

We are not going to be sustainable this year. We are not going to throw off the year. There is not going to be €“ I know you know this. But we see the fourth quarter or maybe the last couple of months of the year that will break through there. So and then hopefully, we don’t go back and then we go into €˜24 that way. So, we are shooting for the fourth quarter-ish. That’s where the lines cross. And if we can keep the OpEx in roughly the same zone of like $9 million to $10 million, we probably, Jason, need a $12 million net on the top line. And then we have the cost of goods sold that would €“ that’s the math. So, it really is just arithmetic. So you say, what level of sales do we need to cover the OpEx? It’s probably $12 million net. So, that’s €“ and that number doesn’t look scary to us.

Oren Livnat: Alright. Well, I look forward to future results, and keep up the good work. Appreciate it. Thank you.

Al Altomari: We are losing questions, Oren. I think you got everybody’s questions. We are listing questions out of the queue, but thank you.

Operator: Thank you. I would now like to turn the conference back to Al for closing remarks.

Al Altomari: Great. Thank you very much, operator. Now, I would like to take a couple of minutes to comment on the recent special meeting we had with our shareholders. To continue to execute on our business plan and achieve our objective for 2023 and beyond, it was really important that we regain our compliance with our Nasdaq Listing and so to put us in a position to raise capital across a broader base of such sources. While we believe the notable growth in 2022, it just wasn’t enough to regain our compliance with Nasdaq Listing standards in our first compliance period. We have been granted a second compliance period with Nasdaq, but we needed to obtain authorization by our shareholders to implement a reverse stock split. If and when the Board believes it’s the right time, we explored all €“ to let the shareholders know, we explored all the available €“options available to us before concluding that our ability to implement a reverse stock split puts the company in potentially the best position to regain the Nasdaq Listing requirements and to appeal to a broader base of investors and to improve the perception of our common stock and overall, the investment and €“ with the investment community, the scrutiny by the investment community.