Pulmatrix, Inc.

Ruthigen ended the fiscal second quarter with $12.9 million in cash, down from $14.3 million at the end of fiscal Q1 and $15.6 million at the end of fiscal 2014. R&D expense was $0.6 million versus $0.5 million a year earlier, and SG&A was $1.1 million versus $0.5 million a year earlier. Total operating expenses were $1.7 million compared with $1.0 million in the prior-year quarter. Net loss was approximately $1.7 million, or $0.35 per share, versus approximately $1.0 million, or $0.50 per share in the prior-year quarter. For the six months ended September 30, 2014, R&D was $1.3 million versus $0.7 million, SG&A was $2.1 million versus $0.8 million, and net loss was approximately $3.4 million, or $0.72 per share, versus approximately $1.5 million, or $0.74 per share. Guidance-wise, management now expects cash to fund operations through the quarter ending December 31, 2015, and reiterated plans to complete the Phase 1 portion with 20 patients, begin Phase 2 in early calendar Q1 2015, complete enrollment of 150 patients by the end of March 2015, and announce data in calendar Q2 2015.

Hoji Alimi emphasized clinical and operational milestones, saying the company had cleared key hurdles after the DMC review and IRB approvals, signed seven clinical trial agreements, and started enrolling patients. He framed the company’s work as focused on maximizing ROI by consolidating expenses, while also building out manufacturing readiness and new R&D programs. His tone was constructive and optimistic, especially around accelerating enrollment by adding laparoscopic procedures and preparing for a pivotal trial in 2015.

Sameer Harish focused on liquidity, expense trends, and runway. He said cash was $12.9 million at September 30, 2014, and that the revised outlook extends cash coverage to December 31, 2015; he also noted cash use should rise in fiscal Q3 because of higher R&D tied to the Phase 1/2 trial and other programs. Financially, he cited R&D of $0.6 million, SG&A of $1.1 million, total operating expenses of $1.7 million, stock-based compensation of $312,000, and net loss of approximately $1.7 million, or $0.35 per share.

There was no analyst Q&A because no questions were asked on the call. The only follow-up from management was a short closing remark reiterating that the company expects to announce completion of Phase 1b initiation of the phase trial and will speak again on the next earnings call in early February.