Mr. Andre Godin reports

INTELGENX REPORTS FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL RESULTS

IntelGenx Technologies Corp. has released its financial results for the three- and 12-month periods ended Dec. 31, 2023. All dollar amounts are expressed in United States currency, unless otherwise indicated, and results are reported in accordance with United States generally accepted accounting principles, except where noted otherwise.

"We successfully executed against key strategic priorities in 2023, the most important of which was to lay the groundwork for our product pipeline and services portfolio to start generating significant revenues in 2024," commented Dwight Gorham, IntelGenx's chief executive officer. "To that end, we expect that our commercial partner for Rizafilm, Gensco Pharma, will be launching the product in the United States in Q2 2024, an anticipated inflection point for our business."

Two thousand twenty-three fourth quarter financial summary:

• Revenue was $426,000, up from $173,000 in the 2022 fourth quarter.
• Net comprehensive loss was $1.7-million, down from $2.3-million in the fourth quarter of 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss was $1.7-million, compared with $2.3-million in Q4-2022.

Two thousand twenty-three full-year financial summary:

• Revenue was $1.04-million, compared with $950,000 in 2022.
• Net comprehensive loss was $10.1-million, down from $11.6-million in 2022.
• Adjusted EBITDA loss was $8.3-million, compared with $8.5-million in 2022.

Fourth quarter and recent developments:

• Closed a non-brokered private placement financing with atai Life Sciences AG for aggregate gross proceeds of $750,000, and announced an amended and restated loan agreement with atai, pursuant to which IntelGenx received a first tranche of $1-million and is eligible to receive a second tranche of $1-million in future, upon the achievement of a predefined milestone.
• Launched a Regulation A offering of up to two million shares of Series A convertible cumulative preferred stock, par value 0.001 cent per share, at an offering price of $10 per share.
• Entered into a further amendment to its November, 2018, licence, development and supply agreement with Tilray Brands Inc. for the co-development and commercialization of cannabinoid-infused VersaFilm products, and received an initial purchase order from Tilray for three SKUs (stock-keeping units) (CBD20, THC10, THC10:CBD 10), with each SKU totalling 130,000 filmstrips.
• Entered into development and licence agreements with a wholly owned subsidiary of Covenant Animal Health Partners LLC for VetaFilm.
• Received approvals from the Swedish Medical Products Agency, the Swedish Ethical Review Authority and the Regional Biobank Centre to conduct the Montpark Montelukast VersaFilm phase 2 clinical trial in patients with Parkinson's disease.
• Announced positive results from a proof-of-concept study, conducted through a research collaboration with the University of Prince Edward Island, that validated the advantages of administering drugs to pets via its VetaFilm platform.
• Announced changes to its board, appointing Sahil Kirpekar, MD, atai's chief business officer, and Ryan Barrett, atai's senior vice-president and general counsel, as atai's new designees.

Financial results

Total revenues for the three-month period ended Dec. 31, 2023, amounted to $426,000, an increase of $253,000, or 146 per cent, compared with $173,000 for the three-month period ended Dec. 31, 2022. The change is mainly attributable to an increase in research and development (R&D) revenues. Operating costs and expenses were $2.4-million for the fourth quarter of 2023, versus $2.7-million for the corresponding three-month period of 2022. For Q4 2023, the company had an operating loss of $2-million, down from $2.5-million for the comparable period of 2022. Net comprehensive loss was $1.7-million, or one cent per basic and diluted share, for the fourth quarter of 2023, compared with net comprehensive loss of $2.3-million, or one cent per basic and diluted share, for the comparable period of 2022.

Total revenues for the 12-month period ended Dec. 31, 2023, amounted to $1.04-million, representing an increase of $89,000, or 6 per cent, compared with $950,000 for the year ended Dec. 31, 2022. Operating costs and expenses were $10.5-million for the full-year 2023, versus $10.4-million for the corresponding 12-month period of 2022. For the 12-month period of 2023, the company had an operating loss of $9.5-million, compared with an operating loss of $9.4-million for the comparable period of 2022. Net comprehensive loss was $10.1-million, or six cents per basic and diluted share, for the 12-month period of 2023, compared with net comprehensive loss of $11.6-million, or seven cents per basic and diluted share, for the comparable period of 2022.

As at Dec. 31, 2023, the company's cash and short-term investments totalled $2.3-million. Subsequent to year-end, IntelGenx announced the launch of the Regulation A share offering and received $1-million pursuant to its loan agreement with atai.

Annual filings

The company's annual report on Form 10-K and financial statements for the year ended Dec. 31, 2023, as well as the 2024 proxy statement, will be filed with the United States Securities and Exchange Commission and the Canadian Securities regulatory authorities today, March 21, 2024.

Conference call details

IntelGenx will host a conference call to discuss these 2022 fourth quarter and full year financial results today at 8:30 a.m. Eastern Time. The dial-in number for the conference call is 888-506-0062 (Canada and the United States) or 973-528-0011 (international), access code 321268. The call will be also be webcast live and archived on the company's website under webcasts in the investors section.

About IntelGenx Technologies Corp.

IntelGenx is a leading drug delivery company focused on the development and manufacturing of pharmaceutical films.

IntelGenx's superior film technologies, including VersaFilm, DisinteQ, VetaFilm and transdermal VevaDerm, allow for next-generation pharmaceutical products that address unmet medical needs. IntelGenx's innovative product pipeline offers significant benefits to patients and physicians for many therapeutic conditions.

IntelGenx's highly skilled team provides comprehensive pharmaceutical services to pharmaceutical partners, including research and development, analytical method development, clinical monitoring, and IP (intellectual property) and regulatory services. IntelGenx's state-of-the-art manufacturing facility offers full service by providing lab-scale to pilot-scale and commercial-scale production.

We seek Safe Harbor.