[Management View]
Talphera's management emphasized the strategic pivot in clinical trial enrollment, focusing on nephrologist-led sites in medical ICUs. This shift has resulted in a significant increase in patient enrollment, validating the changes made to the trial design and site profiles. The company is confident in achieving its enrollment goals by year-end.

[Outlook]
The company revised its cash operating expense guidance for 2025 to $16 million to $17 million, down from the previous $17 million to $19 million. Talphera plans to complete the Nephros study by the end of 2025 and aims for FDA approval of nafamostat in 2026. Future site expansions are expected to further boost enrollment rates.

[Financial Performance]
Year-to-date cash operating expenses for 2025 were $3.7 million, compared to $4.3 million for 2024. Excluding non-cash stock-based compensation, expenses were $3.5 million for 2025, and $4 million for 2024. The cash position as of June 30, 2025, was $6.8 million, with financing contingent on patient enrollment milestones.

[Q&A Highlights]
Question 1: Ed Arce from Westpark Capital inquired about the expected acceleration in enrollment to reach the 70-patient target by year-end, given recent enrollment rates.

Answer: CEO Vincent Angotti explained that the enrollment rates are increasing with new sites enrolling at a consistent rate. With nine sites expected to be operational soon, the company anticipates maintaining a flat run rate, requiring about 1.5 patients per site per month to meet the target.

Question 2: Ed Arce asked about leveraging data from sites using nafamostat due to heparin and citrate shortages for future publication and commercial uptake.

Answer: CEO Angotti and Dr. Aslam discussed the importance of capturing safety data from compassionate use cases, which will support regulatory submissions and publications. This data will highlight nafamostat's effectiveness for patients with contraindications to other anticoagulants.

Question 3: James Molloy from Alliance Global Partners questioned the status of heparin and citrate shortages and the impact on financing conditions related to stock price.

Answer: CEO Angotti noted episodic shortages of heparin and ongoing issues with citrate supply. CFO Raffi Asadorian mentioned that investors have the right to waive stock price conditions, focusing more on patient enrollment milestones.

Question 4: Naz Rahman from Maxim Group asked about confidence in new site initiations and patient enrollment challenges.

Answer: Dr. Aslam detailed the vetting process for new sites, emphasizing improved internal processes and historical data on site readiness. He noted that nephrologists are more engaged with CRRT, leading to increased enrollment rates.

[Sentiment Analysis]
Analysts expressed optimism about Talphera's strategic adjustments and financial management. Management maintained a confident tone, emphasizing the successful restructuring of the trial and the potential market impact of nafamostat.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|--------|--------|--------|
| Cash Operating Expenses | $3.7M | $4.3M |
| Excluding Stock-Based Compensation | $3.5M | $4M |
| Cash Position | $6.8M | N/A |

[Risks and Concerns]
Risks include potential delays in site activations and patient enrollment, supply chain issues with existing anticoagulants, and the dependency on milestone-based financing. Management is addressing these by optimizing site profiles and maintaining investor engagement.

[Final Takeaway]
Talphera's strategic focus on nephrologist-led sites has significantly accelerated patient enrollment, positioning the company to complete the Nephros study by year-end. The reduction in operating expenses and milestone-based financing structure supports the company's financial stability. With FDA breakthrough designation and ongoing supply chain challenges for existing anticoagulants, nafamostat is poised to become a key player in CRRT anticoagulation. Management's proactive approach to site expansion and regulatory submissions underscores their commitment to achieving clinical and commercial success.