Workflow
Lantern Pharma(LTRN) - 2024 Q3 - Quarterly Report
LTRNLantern Pharma(LTRN)2024-11-07 21:07
Transcript

Financial Performance - The company reported net losses of approximately 14.91millionfortheninemonthsendedSeptember30,2024,comparedto14.91 million for the nine months ended September 30, 2024, compared to 11.78 million for the same period in 2023, reflecting an increase in operating expenses [91]. - The total operating expenses for the nine months ended September 30, 2024, were approximately 16.32million,comparedto16.32 million, compared to 13.00 million for the same period in 2023 [97]. - The company expects to continue incurring significant operating losses for several years as it advances clinical trials and seeks regulatory approvals for drug candidates [108]. - Net cash used in operating activities was approximately 13,841,000fortheninemonthsendedSeptember30,2024,comparedto13,841,000 for the nine months ended September 30, 2024, compared to 10,961,000 for the nine months ended September 30, 2023 [105]. - Interest income increased by approximately 83,000from83,000 from 498,000 for the nine months ended September 30, 2023, to 581,000fortheninemonthsendedSeptember30,2024[104].ResearchandDevelopment−Researchanddevelopmentexpensestotaledapproximately581,000 for the nine months ended September 30, 2024 [104]. Research and Development - Research and development expenses totaled approximately 11.86 million for the nine months ended September 30, 2024, up from 8.32millioninthesameperiodof2023,indicatingasignificantinvestmentindrugdevelopment[94].−Researchanddevelopmentexpensesincreasedbyapproximately8.32 million in the same period of 2023, indicating a significant investment in drug development [94]. - Research and development expenses increased by approximately 3,535,000, or 42%, from 8,321,000fortheninemonthsendedSeptember30,2023,to8,321,000 for the nine months ended September 30, 2023, to 11,856,000 for the nine months ended September 30, 2024 [103]. - Research and development expenses increased by approximately 1,507,000,or681,507,000, or 68%, from 2,210,000 for the three months ended September 30, 2023, to 3,717,000forthethreemonthsendedSeptember30,2024[99].−Thecompanyhasthreeleaddrugcandidates(LP−300,LP−184,andLP−284)currentlyinclinicalphases,withLP−300undergoingatargetedPhase2trialforadvancednon−smallcelllungcancer[86].−Thecompanyformedawholly−ownedsubsidiary,StarlightTherapeutics,inJanuary2023tofocusonCNSandbraincancerdrugdevelopment,particularlyforLP−184[85].−TheADCprogramisadvancingwitharesearchcollaborationwithBielefeldUniversity,focusingondevelopingADCsutilizingcryptophycin,whichhasshownpromisingantitumoractivity[87].FundingandCapital−Thecompanyhasnotgeneratedanyrevenuetodateandhasfinancedoperationsprimarilythroughequitysales[91].−Thecompanyanticipatesneedingsubstantialadditionalfundingtocompleteclinicaltrials,whichmaydiluteexistingstockholders′ownershipinterests[110].−Thecompanyraisedcapitalhistoricallythroughtheissuanceofequitysecurities[113].AssetsandLiquidity−AsofSeptember30,2024,totalassetswereapproximately3,717,000 for the three months ended September 30, 2024 [99]. - The company has three lead drug candidates (LP-300, LP-184, and LP-284) currently in clinical phases, with LP-300 undergoing a targeted Phase 2 trial for advanced non-small cell lung cancer [86]. - The company formed a wholly-owned subsidiary, Starlight Therapeutics, in January 2023 to focus on CNS and brain cancer drug development, particularly for LP-184 [85]. - The ADC program is advancing with a research collaboration with Bielefeld University, focusing on developing ADCs utilizing cryptophycin, which has shown promising antitumor activity [87]. Funding and Capital - The company has not generated any revenue to date and has financed operations primarily through equity sales [91]. - The company anticipates needing substantial additional funding to complete clinical trials, which may dilute existing stockholders' ownership interests [110]. - The company raised capital historically through the issuance of equity securities [113]. Assets and Liquidity - As of September 30, 2024, total assets were approximately 30.3 million, with liquidity including approximately 28.1millionofcash,cashequivalents,andmarketablesecurities[108].−Thecompanymaintainssignificantcashandcashequivalentsexceedingfederallyinsuredlimits,withmostbalancesabove28.1 million of cash, cash equivalents, and marketable securities [108]. - The company maintains significant cash and cash equivalents exceeding federally insured limits, with most balances above 250,000 guaranteed by the FDIC [113]. Currency and Inflation - Foreign currency gains were approximately 28,000fortheninemonthsendedSeptember30,2024,comparedtolossesofapproximately28,000 for the nine months ended September 30, 2024, compared to losses of approximately 130,000 for the nine months ended September 30, 2023 [114]. - The company does not expect the impact of foreign currency losses to be material in future periods [114]. - Inflation has not materially affected the company's results of operations during the reported periods, but it could have a greater impact in the future if current levels persist [115]. Internal Controls - The company's disclosure controls and procedures were evaluated as effective as of September 30, 2024 [118]. - There were no changes in internal control over financial reporting that materially affected the company during the three months ended September 30, 2024 [119]. - The company recognizes that inherent limitations in control systems may lead to undetected errors or fraud [120]. - The company does not participate in foreign currency hedging activities and does not have derivative financial instruments [114].