Executive Summary

Virpax reported Q1 2024 operating loss of $3.20M and net loss of $3.22M, with diluted EPS of ($2.75); cash fell to $1.87M at quarter-end, reflecting a net cash decrease of $7.28M q/q driven by operating cash use and litigation settlement payments .
R&D rose to $1.61M (+$0.38M y/y), primarily from preclinical activities for Probudur, while G&A increased to $1.69M due to a prior-year one-time insurance reimbursement that reduced Q1 2023 G&A; total operating expenses were $3.30M .
Management reiterated progress toward IND filing for Probudur, citing favorable Maximum Tolerated Dose results on April 30, 2024; USAISR pilot data showed reduction in pain behaviors and supports a full powered study vs. free bupivacaine and EXPAREL .
No Wall Street (S&P Global) consensus estimates were available for Q1 2024, so beats/misses vs. consensus cannot be assessed; investor focus centers on regulatory timelines (Probudur IND), non-dilutive grant funding, licensing discussions, and cash runway following the litigation settlement .

What Went Well and What Went Wrong

What Went Well

Favorable Probudur safety profile: “All doses of Probudur were well-tolerated…bupivacaine appears to be less toxic in the presence of liposomes” (MTD, Sprague-Dawley rats); management stated this supports progress toward IND filing .
USAISR pilot study showed reduction in incision-induced pain behaviors for Probudur, with next step expected to be full powered head-to-head vs. free bupivacaine and EXPAREL; narrative strengthens external validation .
MET platform recognition: Nanomerics (MET developer) received the UK King’s Award for Enterprise (innovation), bolstering the delivery platform underpinning Envelta and NobrXiol; CEO highlighted leveraging MET for pipeline assets .

What Went Wrong

Cash declined sharply: quarter-end cash was $1.87M, down from $9.14M at year-end; net cash decreased by $7.28M q/q, driven by $7.73M cash used in operations and settlement-related outflows, despite $0.45M financing inflow .
Litigation liability remained material at $2.50M, although reduced from $6.00M at year-end, signaling ongoing balance sheet constraints .
Higher operating loss y/y: operating loss increased to $3.30M from $1.65M (largely due to absence of the Q1’23 $1.25M insurance reimbursement and increased Probudur preclinical spend), which intensifies the need for additional funding sources .

Financial Results

P&L and EPS (Pre-revenue development-stage; margins not meaningful)

Metric	Q3 2023	Q1 2024
Total Operating Expenses ($USD Millions)	$6.115	$3.302
Operating Loss ($USD Millions)	($6.115)	($3.302)
Net Loss ($USD Millions)	($5.994)	($3.220)
Diluted EPS ($USD)	($0.51)	($2.75)
Revenue ($USD Millions)	Not reported (pre-revenue)	Not reported (pre-revenue)

Notes: No revenue line is presented in the company’s condensed financial statements; margin metrics (gross, operating, net) are not meaningful without revenue .

Cash and Liabilities Trend

Metric	Q3 2023	Q4 2023	Q1 2024
Cash and Equivalents ($USD Millions)	$12.153	$9.142	$1.866
Litigation Liability ($USD Millions)	$5.000	$6.000	$2.500
Total Current Liabilities ($USD Millions)	$6.533	$7.694	$4.344
Stockholders’ Equity ($USD Millions)	$6.506	$1.934	($1.213)

Operating Expense Mix

Metric	Q3 2023	Q1 2024
G&A ($USD Millions)	$4.620	$1.689
R&D ($USD Millions)	$1.496	$1.613

KPIs:

Cash used in operating activities Q1 2024: ($7.729)M; financing inflow: $0.454M; net cash change: ($7.275)M .
Q1 2024 R&D increase primarily from Probudur (+$0.8M) partially offset by lower AnQlar and NobrXiol preclinical activity .
Q1 2024 G&A higher vs. Q1 2023 due to absence of a $1.25M insurance reimbursement recorded in Q1 2023 .

Actuals vs. Consensus (S&P Global)

Metric	Q1 2024 Consensus	Q1 2024 Actual	Surprise
EPS ($USD)	N/A (S&P Global unavailable)	($2.75)	N/A
Revenue ($USD Millions)	N/A (S&P Global unavailable)	Not reported	N/A

S&P Global consensus estimates for VRPX were unavailable due to missing CIQ mapping, so beats/misses cannot be assessed.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Probudur IND Filing	2024	“On track to file IND later in 2024” (Mar 26, 2024)	“Steady progress in anticipation of filing our IND” (May 13, 2024)	Maintained
Probudur Next Study	2024	USAISR head-to-head study expected to start mid-year (Year-end PR)	“Next step…full powered study comparing Probudur with free bupivacaine and EXPAREL” (Q1 PR)	Maintained/Confirmed
Envelta IND	Mid-2024	“Expect to submit IND for Envelta in mid-2024” (Q3 PR)	No new timing in Q1 PR; continued development with NIH reiterated at year-end	Maintained

No financial guidance (revenue, margins, OpEx) was provided; strategic focus is on regulatory milestones, grants, and licensing activity .

Earnings Call Themes & Trends

No Q1 2024 earnings call transcript was available; themes are drawn from Q3/Q4 press releases and Q1 8-K.

Topic	Previous Mentions (Q-2: Q3 2023)	Previous Mentions (Q-1: Q4 2023)	Current Period (Q1 2024)	Trend
Probudur efficacy/safety	Longer efficacy vs. EXPAREL in animal models; planning Phase 2 in 2024	USAISR study expected mid-year; IND on track for 2024	MTD study: well-tolerated; USAISR pilot showed pain reduction; IND anticipated	Improving
Envelta (MET intranasal enkephalin)	Expect IND mid-2024; NIH support	Continued development under NIH NCATS grant	Continued platform recognition via Nanomerics award; ongoing development	Stable
MET platform/technology	Patents and platform references	Ongoing emphasis on MET and partnerships	Nanomerics King’s Award validates MET innovation	Positive validation
Grants/non-dilutive funding	Pursuing grant programs across Rx assets	“Core competency” in winning grants; multiple applications pending	Actively identifying/applying for grants; continued strategy	Stable
Licensing/partnership interest	Strong interest; two firms engaged to develop opportunities	Sublicensing options and geographic opportunities under evaluation	“Encouraged by ongoing level of interest and activity”	Stable/Constructive
Regulatory/legal	CRADA extension; leadership changes	Regained Nasdaq compliance; settlement approved; initial payment 3/18/24	Settlement payment reflected in liabilities and cash flows; continued SEC risk-factor emphasis	De-risking over time but balance-sheet pressure

Management Commentary

“A single injection of Probudur was well-tolerated…has the potential to provide both immediate relief as well as sustained relief at the wound site, avoiding the need for additional free bupivacaine or an opioid.” — Gerald W. Bruce, CEO .
“Nanomerics was recently awarded the…King’s Award for Enterprise 2024…We congratulate them…we are pleased to be utilizing this innovative drug delivery method for a number of our product candidates.” — Gerald W. Bruce .
“We are advancing our product candidates while identifying and applying for additional grants as well as pursuing licensing opportunities and engaging in discussions with interested parties.” — Gerald W. Bruce .

Q&A Highlights

No Q1 2024 earnings call transcript was found; there were no accessible Q&A or call clarifications for this quarter [ListDocuments, earnings-call-transcript returned 0]. Guidance and themes are based on press releases and the 8-K disclosure .

Estimates Context

S&P Global Wall Street consensus estimates for Q1 2024 were unavailable for VRPX due to missing CIQ mapping, preventing a formal beat/miss assessment [GetEstimates error].
In absence of consensus, investor adjustments hinge on regulatory milestone timing (Probudur IND), validation from USAISR and MTD data, and the funding path (grants, licensing, and possible equity financing) given the reduced cash balance .

Key Takeaways for Investors

Regulatory milestones are the principal catalysts: favorable preclinical safety (MTD) and USAISR pilot results support the Probudur IND plan in 2024; watch for the full powered USAISR study readout and IND submission timing .
Cash runway tightened materially; with $1.87M cash and net cash outflow of $7.28M in Q1, near-term funding actions (grants, partnerships, offerings) are likely; balance sheet pressure is a key risk for timelines .
Litigation-related liabilities declined to $2.50M after initial settlement payments, reducing headline legal risk but consuming cash; investors should track remaining obligations and capitalization plans .
R&D intensity shifted toward Probudur (+$0.8M activity driver); continued investment in core assets (Probudur, Envelta, NobrXiol) aligns with non-addictive pain thesis and MET delivery differentiation .
Platform validation provides strategic leverage: Nanomerics’ award strengthens MET credibility, potentially aiding licensing discussions and partner interest .
Near-term trading lens: headlines around IND submission progress, USAISR comparative study initiation/results, and financing announcements are likely to move the stock; absence of revenue means valuation is sensitive to milestones and funding terms .
Medium-term thesis: if Probudur advances into the clinic with supportive data and Virpax secures non-dilutive grants or partner funding, the path to value creation improves; execution on Envelta and NobrXiol INDs would broaden the optionality .

Virpax Pharmaceuticals, Inc. (VRPX)·Q1 2024 Earnings Summary