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Leap Therapeutics(LPTX) - 2024 Q3 - Quarterly Report
LPTXLeap Therapeutics(LPTX)2024-11-13 11:50

Financial Performance - Total operating expenses for Q3 2024 were 17,855,000,anincreaseof2017,855,000, an increase of 20% compared to 14,833,000 in Q3 2023[10]. - Net loss for Q3 2024 was 18,176,000,comparedtoanetlossof18,176,000, compared to a net loss of 13,696,000 in Q3 2023, representing a 33% increase in losses[11]. - Basic and diluted net loss per share for Q3 2024 was 0.44,animprovementfrom0.44, an improvement from 0.51 in Q3 2023[10]. - Comprehensive loss for Q3 2024 was 18,173,000,comparedto18,173,000, compared to 13,350,000 in Q3 2023, indicating a 36% increase in comprehensive losses[11]. - Net loss for the nine months ended September 30, 2024, is 52,124,000,comparedtoanetlossof52,124,000, compared to a net loss of 68,949,000 for the same period in 2023, representing a 24% improvement[19]. - The accumulated deficit as of September 30, 2024, was 451.9million,withanetlossof451.9 million, with a net loss of 52.4 million incurred during the nine months ended September 30, 2024[95]. Research and Development - Research and development expenses for the nine months ended September 30, 2024, were 44,099,000,down2844,099,000, down 28% from 61,549,000 for the same period in 2023[10]. - The DKN-01 program accounted for 14.8 million in R&D expenses in Q3 2024, up from 11.0 million in Q3 2023, reflecting a 3.8millionincrease[86].−ResearchanddevelopmentexpensesforQ32024were3.8 million increase[86]. - Research and development expenses for Q3 2024 were 14.9 million, an increase of 3.4millionfrom3.4 million from 11.5 million in Q3 2023[86]. - The company continues to develop DKN-01 and other programs, with ongoing collaborations with BeiGene, NovaRock, and Adimab[3]. - The company is advancing FL-501 into development as a potential best-in-class anti-GDF-15 antibody, with promising preclinical data indicating increased body weight and restored muscle mass in models[75]. - Enrollment completed in the expanded randomized controlled Part B of the DeFianCe study with 188 patients, evaluating DKN-01 in combination with standard care for advanced colorectal cancer[73]. Cash and Liquidity - The company had cash and cash equivalents of 62.823millionattheendoftheperiod,adecreasefrom62.823 million at the end of the period, a decrease from 80.743 million at the end of the previous period[19]. - Cash used in operating activities was 44.8millionfortheninemonthsendedSeptember30,2024,comparedto44.8 million for the nine months ended September 30, 2024, compared to 33.4 million in the same period in 2023[96]. - Cash and cash equivalents as of September 30, 2024, were 62.8million,expectedtofundoperatingexpensesforatleastthenext12months[95].−Thecompanyexperiencedanetdecreaseincashandcashequivalentsof62.8 million, expected to fund operating expenses for at least the next 12 months[95]. - The company experienced a net decrease in cash and cash equivalents of 7.8 million for the nine months ended September 30, 2024, compared to an increase of 15.2millionin2023[96].FundingandEquity−LeapTherapeuticscompletedaprivateplacementinApril2024,raising15.2 million in 2023[96]. Funding and Equity - Leap Therapeutics completed a private placement in April 2024, raising 39.999 million[19]. - The company plans to seek additional funding through public or private equity financings or collaboration agreements with larger pharmaceutical companies[24]. - The company has not generated any product sales revenues and has not achieved profitable operations since inception[24]. - The total number of common shares outstanding as of September 30, 2024, was 38,264,464[16]. - The company issued 1,972,901 shares of common stock to Flame stockholders as part of the acquisition completed on January 17, 2023[56]. Expenses - General and administrative expenses for Q3 2024 were 2.9million,adecreaseof2.9 million, a decrease of 0.4 million from 3.3millioninQ32023,primarilyduetolowerprofessionalfees[87].−Thecompanyanticipatesanincreaseingeneralandadministrativeexpensesinthefutureasitexpandsheadcounttosupportongoingresearchanddevelopmentactivities[79].−Stock−basedcompensationexpensesfortheninemonthsendedSeptember30,2024,were3.3 million in Q3 2023, primarily due to lower professional fees[87]. - The company anticipates an increase in general and administrative expenses in the future as it expands headcount to support ongoing research and development activities[79]. - Stock-based compensation expenses for the nine months ended September 30, 2024, were 3,957,000, slightly up from 3,875,000inthesameperiodof2023[19].TaxandForeignCurrency−TheprovisionforincometaxesinQ32024was3,875,000 in the same period of 2023[19]. Tax and Foreign Currency - The provision for income taxes in Q3 2024 was 708,000, while there was no provision in Q3 2023[10]. - The company reported a foreign currency loss of 8,000inQ32024,comparedtoalossof8,000 in Q3 2024, compared to a loss of 501,000 in Q3 2023[10]. - The company recorded a foreign currency translation adjustment of $632 thousand for the nine months ended September 30, 2023[19]. Clinical Trials and Product Development - The company has ongoing clinical trials for its lead program DKN-01, targeting multiple cancer types[21]. - Initial data from Part B of the DeFianCe study is expected to be reported in mid-2025, while initial data from Part C of the DisTinGuish study is anticipated in late 2024 or early 2025[73]. - The company has the ability to delay or reduce certain clinical trials or research and development programs if additional funding is not obtained[24].