PainReform Reports Wider FY Loss, Positive Working Capital

PainReform, a Nasdaq-listed company, reported a wider FY net loss of approximately $14.6M for the year ended December 31, 2024, compared to a net loss of $9.3M in the previous year. However, the company had a positive working capital of around $2M as of December 31, 2024.

PainReform Ltd. (NASDAQ: PRFX), a specialty pharmaceutical company focused on reformulating established therapeutics and commercializing the DeepSolar activities, reported its financial results for the year ended December 31, 2024. The company reported a net loss of approximately $14.6 million, compared to a net loss of $9.3 million for the year ended December 31, 2023. Despite the increase in net loss, PainReform maintained a positive working capital of around $2.0 million as of December 31, 2024.

Research and development expenses increased to approximately $11.7 million for the year ended December 31, 2024, up from $6.0 million in the previous year. The increase was primarily driven by higher payments for clinical trial costs and manufacturing expenses, offset by a decrease in subcontractors and consultants' expenses. General and administrative expenses decreased to approximately $3.0 million, down from $3.6 million in the previous year, mainly due to lower insurance costs and share-based compensation expenses.

Financial income, net, decreased to approximately $93,000 for the year ended December 31, 2024, compared to $248,000 for the year ended December 31, 2023. The decrease was primarily due to a decrease in cash balances in 2024.

PainReform's Chairman and interim Chief Executive Officer, Ehud Geller, stated, "While we remain committed to advancing the clinical development of PRF-110, our lead drug candidate targeting the extended post-operative pain relief market, we continue to execute our broader strategy of investing in high-margin, technology-driven sectors. The recent acquisition of DeepSolar marks a significant milestone as PainReform expands into the high-growth clean energy sector."

The company previously received a notice from Nasdaq regarding non-compliance with the minimum shareholders' equity requirement of $2.5 million. Following a $0.9 million raise through the Company's at-the-market (ATM) program and the successful completion of the DeepSolar acquisition, PainReform believes its shareholders' equity now exceeds the required threshold.

PainReform continues to face challenges in its clinical development and commercialization efforts. The company recently encountered a temporary setback in its Phase 3 clinical trial evaluating PRF-110 in post-surgical pain management for bunionectomy patients. However, the company is focused on addressing the data gap using advanced in-vitro and in-vivo models prior to proceeding with further clinical work.

The company's acquisition of DeepSolar, an AI-driven solar analytics platform, is expected to drive revenue growth and explore strategic partnerships with utility companies, solar technology providers, and smart grid operators. The DeepSolar acquisition is a significant milestone for PainReform as it expands into the high-growth clean energy sector.

PainReform's financial results and strategic initiatives highlight the company's commitment to innovation and expansion into new markets. The company's ability to maintain a positive working capital position, despite a wider net loss, suggests that the company is managing its resources effectively. However, the company's ongoing challenges in clinical development and regulatory compliance will continue to impact its financial performance in the near term.

A copy of the Company's annual report on Form 20-F for the year ended December 31, 2024, has been filed with the U.S. Securities and Exchange Commission and is available on the Company's investor relations website at https://painreform.com/investors/. The Company will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at info@painreform.com.

Contact:
Crescendo Communications, LLC
Tel: 212-671-1021
Email: prfx@crescendo-ir.com
Dr. Ehud Geller
Chairman and interim Chief Executive Officer
PainReform Ltd.
Tel: +972-54-4236711
Email: egeller@medicavp.com