Executive Summary

Q2 delivered record net sales of $4.2M and the first quarter of positive adjusted EBITDA ($0.2M), driven by replenishment of depleted inventories and leaner operating structure .
Segment strength: Prescription Medicines (primarily STENDRA) doubled YoY to $3.3M (+102%), while Medical Devices rose to $0.9M; total gross profit expanded to $3.5M (+$1.4M YoY) .
SG&A declined to $3.2M (from $4.1M YoY and $3.9M in Q1), reflecting cost-cutting; net loss narrowed to $1.8M from $2.1M YoY .
Management highlighted OTC progress for STENDRA (positive label comprehension study), H‑100 505(b)(2) initiation, and MGH collaboration; however, revenue benefited from extraordinary market replenishment, implying normalization ahead .
No formal guidance or earnings call transcript was available; sell-side consensus from S&P Global was unavailable for the quarter.

What Went Well and What Went Wrong

What Went Well

Record revenue and first positive adjusted EBITDA: “Q2 net sales of over $4 million, and the first quarter achieving positive adjusted EBITDA” ($0.2M) .
Prescription Medicines strength: “Prescription Medicines segment sales… up 102% over the year-ago period,” with STENDRA benefiting from newer supply and longer shelf life (four years vs. three) .
Operating discipline: SG&A fell to $3.2M from $4.1M YoY and $3.9M in Q1, “resulted from the Company’s cost-cutting efforts… to improve the efficiency of the organization” .

What Went Wrong

Quality of revenue: Management acknowledged Q2 revenue was bolstered by “extraordinary market replenishment” as wholesalers/pharmacies restocked after “abnormally high product returns” in recent quarters due to product expiration .
Continued GAAP losses: Net loss of $1.8M (vs. $2.1M YoY); EBITDA remained negative at $(0.10)M despite positive adjusted EBITDA .
Liquidity drift: Cash fell to $13.3M at 6/30 from $17.7M at 3/31, reflecting operating cash burn and settlement-related cash movements earlier in the year .

Financial Results

Consolidated performance vs prior periods and estimates

Metric	Q2 2021	Q1 2022	Q2 2022
Net Sales ($USD Millions)	$2.5	N/A	$4.2
Gross Profit ($USD Millions)	$2.1	N/A	$3.5
Gross Margin (%)	84.0%	84.0%	N/A
Net Income ($USD Millions)	$(2.1)	N/A	$(1.8)
Diluted EPS ($USD)	$(0.22)	N/A	$(0.09)
SG&A ($USD Millions)	$4.1	$3.9	$3.2
R&D ($USD Millions)	$0.5	N/A	$0.4
EBITDA ($USD Millions)	$(0.26)	N/A	$(0.10)
Adjusted EBITDA ($USD Millions)	$(1.87)	N/A	$0.20
Cash and Equivalents ($USD Millions)	N/A	$17.7	$13.3
Wall Street Revenue Consensus ($USD Millions)	Unavailable	—	Unavailable
Wall Street EPS Consensus ($USD)	Unavailable	—	Unavailable

Notes:

Sell-side consensus from S&P Global was unavailable for Q2 2022 (tool request failed due to usage limit).
Management disclosed Q1 reference values for SG&A and cash; Q1 revenue was not disclosed in the primary documents .

Segment breakdown

Segment Metric	Q2 2021	Q2 2022
Net Sales – Prescription Medicines ($USD Millions)	$1.7	$3.3
Net Sales – Medical Devices ($USD Millions)	$0.8	$0.9
Gross Profit – Prescription Medicines ($USD Millions)	$1.5	$3.0
Gross Profit – Medical Devices ($USD Millions)	$0.6	$0.5

KPIs and non-GAAP

KPI	Q2 2021	Q2 2022
Adjusted EBITDA ($USD Millions)	$(1.87)	$0.20

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY or Q2/Future	None provided	None provided	Maintained (no formal guidance)
Margins	FY or Q2/Future	None provided	None provided	Maintained (no formal guidance)
OpEx	FY or Q2/Future	None provided	None provided	Maintained (no formal guidance)
Other (OI&E, Tax, Dividends)	FY or Q2/Future	None provided	None provided	Maintained (no formal guidance)

Management did not issue formal quantitative guidance in the Q2 press release .

Earnings Call Themes & Trends

No earnings call transcript was found for Q2 2022; we searched call transcripts and found none, suggesting no call or transcript availability for this micro-cap period.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2022)	Trend
STENDRA OTC pathway	Positive OTC label comprehension (Dec 2021); two self-selection studies launched Jan 18, 2022	“Announced positive results of OTC label comprehension study” and ongoing FDA dialogue	Continued progress/validation
Product supply/returns	2021 impacted by coupon competition; inventory/supply constraints noted via Vivus settlement context	Revenue aided by replenishment after “abnormally high product returns” due to expiration; shelf-life extended to 4 years	Normalization expected; lower returns going forward
H‑100 (Peyronie’s)	Expanded program/licensing fees increased 2021 R&D	Pursuing 505(b)(2) pathway announced May 2022	Pipeline activation, regulatory path defined
Partnerships/awareness	Collaboration with Dr. Drew Pinsky announced Feb 1, 2022	Social media campaign launched with Dr. Drew Pinsky	Ongoing brand/awareness build
Clinical/device innovation	N/A	MGH sponsored research for tissue-specific oxygenation sensor tech for ED device therapy	Early-stage exploration

Management Commentary

“These financial results mark a critical milestone… first quarter achieving positive adjusted EBITDA… during a time of investing to expand our products and market opportunity” — Fady Boctor, President and Chief Commercial Officer .
“Net revenue… benefited from our ability to increase sales to wholesalers and retail pharmacies… partially resulting from abnormally high product returns in recent quarters due to product expiration… we expect return rates in the future to be lower… expanding the shelf life of STENDRA from three years to four years” .
“Positive results from our OTC label comprehension study… an essential step towards achieving OTC status… we believe these results should establish a strong foundation towards the OTC pathway” .
“We engaged MGH in a sponsored research agreement for tissue-specific oxygenation sensor technology… another potential solution to treating erectile dysfunction” .
“We announced the pursuit of the 505(b)(2) pathway for H-100… could be the first non-invasive treatment for Peyronie’s disease” .

Q&A Highlights

No Q2 2022 earnings call transcript available; therefore no Q&A themes or clarifications could be assessed from a call.

Estimates Context

Wall Street consensus (S&P Global) for Q2 2022 EPS and revenue was unavailable at time of request due to data-access limits; thus, beats/misses vs consensus cannot be determined.
Given the micro-cap nature and limited coverage, investors should assume potential absence or sparsity of formal sell-side consensus for this period.

Key Takeaways for Investors

Q2 was a step-change quarter, with record $4.2M revenue and the first positive adjusted EBITDA ($0.2M), underpinned by restocking and lower operating costs; watch for sustainability as replenishment effects fade .
Prescription Medicines (STENDRA) momentum is strong (+102% YoY), aided by extended shelf-life and OTC progress, supporting lower future returns and potential broader addressable market if OTC is approved .
Operating leverage is emerging (SG&A down sequentially and YoY), but GAAP profitability remains constrained; liquidity declined to $13.3M, necessitating continued discipline .
Pipeline and platform developments (H‑100 505(b)(2), MGH device research, awareness campaigns) broaden strategic optionality and narrative catalysts beyond near-term STENDRA sales .
Absence of guidance and call limits near-term visibility; traders should focus on incremental OTC milestones, inventory/returns normalization, and subsequent quarterly revenue quality indicators .
With estimates unavailable, future data points (next filings/updates) will be key for recalibrating expectations; monitor press releases and SEC filings for regulatory progress and commercial execution .

Additional press-release references for context:

Q2 press release distribution: Yahoo Finance, Globe and Mail, BioSpace .

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