Adamis Pharmaceuticals Corporation

Revenue for the first quarter ended March 31, 2023 increased 26% to approximately $1.5 million from approximately $1.2 million a year ago, driven primarily by ZIMHI product sales to US WorldMeds. No SYMJEPI revenue was reported in Q1 2023 or Q1 2022 because of the manufacturing hold and voluntary recall announced in March 2022. Selling, general and administrative expenses were approximately $4.8 million versus $3.4 million, and research and development expenses were approximately $1.3 million versus $4.2 million, reflecting reduced Tempol clinical and product development work. Net loss from continuing operations was approximately $9 million versus approximately $2.2 million in the prior-year quarter, and cash and cash equivalents were approximately $3.1 million at March 31, 2023. Looking ahead, management said it expects to complete the reverse stock split and then close the DMK merger, with the overall sequence considered realistic within the next 30 days. No formal next-quarter or full-year revenue/EPS guidance was provided.

David Marguglio framed the quarter as a transition period centered on the DMK merger and NASDAQ listing risk. He said the board authorized a reverse split to help the stock trade above $1 for at least 10 consecutive trading days before the June 26 deadline, then move to close the merger. His tone was upbeat about the combination, calling it an exciting milestone with “great expectations” for the future of the combined company.

David Benedicto highlighted modest top-line growth but higher operating costs tied to the transaction process. He cited Q1 revenue of about $1.5 million, SG&A of about $4.8 million, R&D of about $1.3 million, net loss from continuing operations of about $9 million, and cash of about $3.1 million. He attributed higher SG&A mainly to legal, audit, and advisory fees linked to the merger and financing transaction closed in March, while R&D declined because Tempol work wound down.

In Q&A, management acknowledged that ZIMHI sales to date have been well below expectations, though they still see a large and growing market and plan to improve marketing and sales execution. Dr. Versi said the company may still consider equity financing until profitability, but the priority is growing commercial revenue and pursuing non-dilutive capital such as grants and out-licensing. On DPI-125, he said the program has completed a first-in-human Phase 1 dose-escalation study with good tolerability and no serious adverse effects, and the next studies will focus on respiratory-depression safety and abuse liability before pursuing opioid use disorder and pain indications.