Operator: Greetings, and welcome to the Adamis Pharmaceuticals Full Year 2022 Financial Results Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Robert Uhl, ICR Westwicke. Thank you, Robert. You may begin.
Robert Uhl: Thank you, operator. Welcome to the Adamis Pharmaceuticals' Full Year 2022 Financial Results and Corporate Update Conference Call. Joining me on the call today are members of the Adamis executive team, including Chief Executive Officer, David J. Marguglio; and Chief Financial Officer, David Benedicto. In addition, DMK Pharmaceuticals CEO, Dr. Eboo Versi, will also join the call to provide an introduction to DMK in the context of the proposed merger with Adamis. Our format for this call will consist of prepared remarks from Adamis Management and Dr. Versi, followed by a Q&A session. This call is being webcast and will be available for replay in the Investors section of our website at adamispharmaceuticals.com. In today's call, we will make certain forward-looking statements regarding our business based on current information and expectations.
Those statements speak only as of today, and except as required by law, we do not assume any duty to update in the future any forward-looking statements made today. Of course, any forward-looking statements involve risks and uncertainties, and our actual results could differ materially from those anticipated by any forward-looking statements that we make today. Additional information concerning factors that could affect our business and financial results is included in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission and in other subsequent filings that we make with the SEC. These are available on the SEC's website. Today's call may also include certain forward-looking statements related to DMK, its technologies, product candidates and their market potential.
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All of these forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from such forward-looking statements. Further, nothing in today's presentation should be considered an offering of securities or a solicitation of a proxy vote. The information discussed today is qualified in its entirety by the current report on Form 8-K that was filed by Adamis on February 27, 2023, which may be accessed on the SEC's website. In the coming weeks, we intend to file and mail to stockholders a record of proxy statement that will provide details on the proposed merger transaction with DMK. We urge all Adamis stockholders to read the proxy statement after it is filed with the SEC, and all current and future SEC filings which describe the proposed transaction, carefully because they will contain important information about DMK, the proposed transaction and specific risks and uncertainties, particularly those described in the Risk Factors sections.
Once available, these documents can be obtained free of charge from the SEC at sec.gov or on Adamis' website. Now let me hand the call over to David Marguglio, CEO of Adamis.
David Marguglio: Thank you, Robert, and thank you to everybody for joining on our call this afternoon. Today, we will be discussing our full year 2022 operational and financial results. As you know, since October, the company has been engaged in a process to explore strategic and financing alternatives. That process concluded last month with the announcement of the execution of the merger agreement with DMK Pharmaceuticals. In the forthcoming proxy statement, we will describe and provide stockholders with more detail about the process, the terms of the merger agreement and why management and our Board of Directors believe this transaction to be the best path forward to producing long-term value for the stockholders. While engaged in this process, we have also undertaken efforts to reduce the company's operating expenses, which included winding down all R&D activities and a significant reduction in head count that should impact 2023 financials.
There have also been some positive developments since the start of the year. At the end of December and early January, we sold off certain of USC's remaining assets, netting just over $1 million. We are now attempting to liquidate the remaining USC assets, which have an approximate book value of $2.9 million, but there can be no certainty regarding the timing or the net proceeds from those sales. Also, in January, we received a tax refund, which had been previously requested from the IRS under the Employee Retention Credit program under the CARES Act. On February 23, we announced that NASDAQ had granted our request to extend the period for the company to regain compliance with the $1 minimum share price requirement, subject to the company evidencing compliance with all applicable criteria for continued listing by no later than a final extension date of June 26, 2023.
The company's continued listing is subject to the timely satisfaction of certain interim milestones and the undertaking of certain corporate actions during the compliance period, including executing the merger agreement with DMK and effecting a reverse stock split of the common stock and achieving a minimum closing bid price of at least $1 per share for a minimum of 10 consecutive business days prior to the expiration of the compliance period. Within days of the NASDAQ's decision, the Boards of both companies authorized and executed the merger agreement between Adamis and DMK. On Tuesday of this week, we announced a raise of $3 million in gross proceeds from a single health care-focused fund. This equity financing was intended to enable the company to operate through a period during which we can complete the merger with DMK.
Now before introducing Dr. Versi to discuss DMK's neurology-focused platform and clinical programs, David Benedicto will describe our year-end 2022 financials. David?
David Benedicto: Thank you, David. This afternoon, we filed our Form 10-K for the year ending December 31, 2022. I will highlight a few items from our financials, but I encourage you to review the 10-K for additional details and disclosures. Despite the manufacturing hold and recall of SYMJEPI in 2022, revenues for the 12 months ending December 31, 2022 and 2021 were approximately $4.8 million and $2.2 million, respectively. The increase in revenues was primarily due to product sales of ZIMHI to US WorldMeds, less an offset of approximately $310,000 in costs for the completion of the SYMJEPI. Selling, general and administrative expenses for the 12 months ending December 31, 2022 and 2021 were approximately $13.2 million and $16.1 million, respectively.
The decrease was primarily a result of reductions in legal and compensation expenses, which included the elimination of the bonus accrual and the lower stock-based compensation expenses. Research and development expenses were lower for 2022 at approximately $10.4 million compared to $11.3 million in 2021. The decrease was also primarily related to the elimination of bonus accrual and the lower stock-based compensation expense. Net loss for the combined continued and discontinued operations for the years ended December 31, 2022 and 2021 was approximately $26.5 million and $45.8 million, respectively. The decreased loss was primarily attributable to the cessation of U.S. Compounding's operations and reductions in legal and compensation expenses, as mentioned earlier.
Cash and cash equivalents at December 31, 2022, totaled $1.1 million. Additional cash infusions during the first quarter of 2023 included proceeds of approximately $832,000 from the sale of certain equipment of our discontinued U.S. Compounding operations, proceeds of $875,000 from Employee Retention Credit program of the government and $3 million gross proceeds from the sale of equity. Before turning it back to David Marguglio, I would like to encourage you to review our recently filed annual report on Form 10-K for additional details and disclosures. David?
David Marguglio: Thank you, David. Now I'd like to introduce Eboo Versi. Dr. Versi earned a Bachelor's degree and PhD at Oxford University and his medical degree from Cambridge University. He then trained and worked for many years as a surgeon in academic hospitals in London before being recruited to Harvard to establish the first urogynecology program at Brigham and Women's Hospital. After Harvard, Dr. Versi held a variety of senior leadership roles in both large and small pharmaceutical companies, including Pfizer and Astellas. And now it gives me great pleasure to introduce to you the Founder and CEO of DMK Pharmaceuticals, Dr. Eboo Versi.
