Executive Summary

Development-stage quarter with no product revenue; expenses rose on Probudur preclinical work and net loss widened to $3.45M (vs. $3.11M YoY; $3.22M QoQ). G&A fell on lower stock comp/D&O and lapped a prior-year severance charge, while R&D rose on Probudur studies .
Cash was ~$1.87M at 6/30/24, essentially flat vs. Q1 but sharply lower vs. year-end as operating cash outflows continued; litigation liability stood at $2.5M at quarter-end .
Post-quarter, the company repaid a $2.5M loan using ~$2.8M of warrant-exercise proceeds, resolved the litigation settlement balance, and regained Nasdaq minimum bid price compliance—removing overhangs and improving listing status .
Operationally, Probudur advanced with positive swine PK/safety data; the company now targets Probudur IND by year-end 2024 and expects first-in-human trials in 2025, implying a push versus earlier timelines and a key near-term catalyst path .
No Wall Street EPS/revenue estimates were available in S&P Global for VRPX; comparison to consensus is not possible.

What Went Well and What Went Wrong

What Went Well

Positive Probudur preclinical readouts (MTD rats in April; swine PK/safety in July) support the asset’s long-acting profile. “Probudur was…well-tolerated by all of the pigs and demonstrated a long-term, slow-release profile” .
Capital structure/listing overhangs addressed: $2.5M loan secured then repaid from ~$2.8M of warrant-exercise proceeds; litigation settlement balance paid; Nasdaq minimum bid compliance regained .
Management engagement and partnering outreach continued (“successful meetings at BIO…engaging in discussions for licensing and other opportunities with a steady stream of potential new partners”) .

What Went Wrong

Operating loss widened YoY and QoQ on higher R&D tied to Probudur; net loss increased to $3.45M (vs. $3.11M YoY; $3.22M QoQ) .
Cash burn persisted; cash ended Q2 at ~$1.87M, down significantly vs. $9.14M at 12/31/23, underscoring funding needs for IND/clinical execution .
Timeline signals suggest slippage vs. prior aspirations: “We expect to begin first-in-human trials in 2025,” whereas year-end 2023 materials contemplated earlier initiations for certain programs .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$0.00 (implied: Total OpEx = Operating Loss)	$0.00 (implied: Total OpEx = Operating Loss)	$0.00 (implied: Total OpEx = Operating Loss)
General & Administrative ($USD Millions)	$1.95	$1.69	$1.50
Research & Development ($USD Millions)	$1.29	$1.61	$1.96
Total Operating Expenses ($USD Millions)	$3.24	$3.30	$3.46
Operating Loss ($USD Millions)	$(3.24)	$(3.30)	$(3.46)
Net Loss ($USD Millions)	$(3.11)	$(3.22)	$(3.45)
Diluted EPS ($)	$(2.66)	$(2.75)	$(1.75)
Cash and Equivalents ($USD Millions)	—	$1.87	$1.87
Litigation Liability (End of Period, $USD Millions)	—	$2.50	$2.50

Notes:

No product revenue disclosed; revenue implied as $0 because “Loss from operations” equals “Total operating expenses” in each period shown .
G&A YoY decline reflects lapping 2023 severance and lower stock option and D&O insurance expense; R&D increase driven by ~$1.1M of Probudur preclinical activity .

Segment breakdown: Not applicable (no commercial revenues reported) .

KPIs (select liquidity and capital markets actions during/around Q2 2024):

Item	Amount	Timing/Context
Public offering gross proceeds	~$2.25M	5/15/24; 1,666,667 shares + A-1/A-2 warrants at $1.35
Secured loan financing	$2.5M	7/8/24; used to enable final litigation settlement payment
Warrant exercise proceeds	~$2.8M	July 2024; used to repay the $2.5M loan on 7/25
Nasdaq bid-price compliance	Achieved	Notice received 7/24/24

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Probudur IND filing	2024	“On track to file the IND later in 2024” (year-end commentary)	“Target the end of the year for filing our IND for Probudur” (July)	Maintained/clarified timing
First-in-human trials (company)	2024–2025	Year-end materials referenced initiating first-in-human trials in 2024 for certain programs; Probudur Phase 2 contemplated upon completing studies	“We expect to begin first-in-human trials in 2025”	Lowered/Delayed
Financial guidance (revenue/margins)	2024	None provided	None provided	No change

Additional operational targets: “We expect to announce additional results from our remaining studies in anticipation of our first-in-human trials” .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in our document set. Thematic evolution based on company releases:

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
Probudur preclinical progress	USAISR rat pilot positive; planned head-to-head with bupivacaine/EXPAREL; “on track to file the IND later in 2024”	MTD (rats) positive (Apr 30); swine PK/safety positive (Jul 10); target IND by YE24	Positive execution; nearing IND package
First-in-human timelines	Year-end: initiate certain first-in-human trials in 2024; Probudur Phase 2 envisioned post-studies	Company now expects first-in-human in 2025	Timing pushed out vs. prior aspiration
Funding/liquidity	Cash $9.14M at 12/31/23; continued grant strategy; regained bid price via reverse split	May equity raise; July $2.5M loan then ~$2.8M in warrant exercises; repaid loan	Bridge financing executed; dilution risk persists
Litigation and listing	Settlement reached; regained bid compliance in Mar 2024	Final settlement payment enabled; regained bid compliance confirmed July	Overhang reduced/removed
Partnering/outreach	Active dialog; licensing/sublicensing under evaluation	“Successful meetings at BIO…steady stream of potential new partners”	Continued engagement

Management Commentary

“We remain encouraged by the progress we have made in advancing our product candidates… and engaging in discussions for licensing and other opportunities with a steady stream of potential new partners” — CEO Gerald W. Bruce .
“We expect to announce additional results from our remaining studies in anticipation of our first-in-human trials” — CEO .
“Probudur was…well-tolerated by all of the pigs and demonstrated a long-term, slow-release profile” — on the swine PK/safety study .
“This loan…combined with an agreement to negotiate additional funding, will allow us to continue fulfilling our mission… We expect to begin first-in-human trials in 2025” — CEO .
Q1 context: “Steady progress in anticipation of filing our IND [for Probudur]” and recognition of Nanomerics’ MET platform used in Envelta/NobrXiol .

Q&A Highlights

No earnings call transcript was found for Q2 2024; therefore no Q&A themes to report this quarter.

Estimates Context

We attempted to retrieve S&P Global consensus for revenue and EPS around Q2 2024, but consensus data were unavailable for VRPX; thus no beat/miss analysis vs. Street can be provided at this time.
Given the pre-revenue profile and limited coverage, we expect estimate updates to be driven by regulatory milestones (IND acceptance, trial initiations) rather than financial results.

Key Takeaways for Investors

Near-term catalyst path centers on Probudur: additional pre-IND data readouts and an IND filing targeted by year-end 2024; first-in-human trials expected in 2025—timeline push underscores the importance of continued funding .
Operating loss widened on higher Probudur R&D; G&A trended lower due to absent severance and lower stock comp/D&O—expect OpEx to remain driven by IND-enabling work .
Liquidity actions (May equity, July loan and warrant exercises) removed litigation/loan overhangs and restored bid-price compliance, but dilution risk remains; additional capital likely needed to fund clinical entry .
No product revenue and no consensus estimates; trading likely to be headline/catalyst-driven (IND acceptance, trial initiations, partnering/grants).
Partnering interest and active outreach provide optionality for non-dilutive capital/licensing, but timing and terms remain uncertain .
Watch for USAISR program updates and any head-to-head data references compared to EXPAREL, which could shape competitive positioning for post-op pain .
Governance changes and board refresh could influence strategic financing and partnering direction into 2025 .

Sources: Q2 2024 8-K with Exhibit 99.1 press release (financials and commentary) ; parallel Business Wire press release (duplicate content) ; Q1 2024 8-K and press release ; 2023 year-end 8-K ; July press releases on swine PK data , loan/board changes , and Nasdaq compliance .

Virpax Pharmaceuticals, Inc. (VRPX)·Q2 2024 Earnings Summary