NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) Q1 2024 Results Conference Call May 14, 2024 4:30 PM ET

Company Participants

Matthew Duffy - Company's Chief Business Officer
Stephen Willard - Chief Executive Officer
Jonathan Javitt - Founder, Chairman and Chief Scientist
Richard Narido - Chief Financial Officer and Treasurer

Conference Call Participants

Tim Moore - EF Hutton
Ed Woo - Ascendiant Capital

Operator

Good afternoon, everyone. And welcome to the NRx Pharmaceuticals, Inc. First Quarter of 2024 Results Conference Call [Operator Instructions]. As a reminder, this conference call is being recorded.

I will now turn the call over to Matthew Duffy, the Company's Chief Business Officer. Please go ahead.

Matthew Duffy

Thank you, Jonah. And welcome everyone. Before we proceed with the call, I would like to remind everyone that certain statements made during this call are forward-looking statements under US Federal Securities Laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. Additional information concerning factors that could cause actual results to differ from statements made on this call is contained in our periodic reports filed with the SEC. The forward-looking statements made during this call speak only as of date hereof, and the company undertakes no obligation to update or revise the forward-looking statements. Information presented on this call is contained in the press release issued earlier today and in the company's Form 10-Q filed today, which may be accessed from the Investors page of the NRx Pharmaceuticals, Inc. website.

Joining today on the call are Stephen Willard, our Chief Executive Officer; Dr. Jonathan Javitt, our Founder, Chairman and Chief Scientist; and Richard Narido, our Chief Financial Officer and Treasurer. Stephen and Jonathan will provide a summary of our company's progress, Rich will review the company's financial results and then Stephen will review upcoming milestones before making closing comments. Following their prepared remarks, we will address investor questions.

Now, I'll turn the call over to Stephen. Steve?

Stephen Willard

Thank you, Matt. Good afternoon, everyone. And thank you for joining us. NRx has had an incredibly productive and eventful start to 2024 with a great deal more to come through the remainder of the year. We are accelerating our work to bring hope to life. The past quarter, culminating with our clinical trial results last week, has been enormously productive. Jonathan will be discussing our scientific progress. Let me begin by addressing our progress as a company. You will notice that, at the end of March, we had a lower cash balance than has been typical for us, because we used available cash to pay down debt to Streeterville LLC. During the quarter, we signed and announced a $5.1 million advance against milestones from Alvogen and Lotus Pharmaceuticals and have used those funds to support our clinical operations. Those funds do not appear on our balance sheet because they are paid directly to clinical trial partners. As you saw last week, our corporate debt was accelerated by Streeterville. This principle is publicly charged by the SEC on various matters. That development combined with our recent clinical developments generated enthusiasm from a number of well regarded funding sources. In addition to the support of EF Hutton on the equity side, we have now signed a $30 million non-binding term sheet that will eliminate our current corporate debt and provide growth capital for revenue generating approved drugs to add to our pipeline, while substantially lowering our borrowing costs. We anticipate that separating ourselves completely from a lender who has not been supportive of our growth will be beneficial to shareholders and will substantially reduce our cost of debt service.