Lantern Pharma(US:LTRN)2024-08-08 20:07Financial Performance - The company reported net losses of approximately $10.4 million for the six months ended June 30, 2024, compared to $8.6 million for the same period in 2023, reflecting an increase in operating expenses [80]. - The total operating expenses for the six months ended June 30, 2024, were approximately $11.14 million, compared to $9.48 million for the same period in 2023, reflecting increased investment in clinical development [85]. - Net cash used in operating activities was approximately $8,259,000 for the six months ended June 30, 2024, compared to approximately $7,349,000 for the same period in 2023, indicating an increase in cash outflow [93]. - The company expects to incur significant and increasing operating losses for at least the next several years as it continues clinical trials and seeks regulatory approvals for its drug candidates [97]. - The company anticipates needing substantial additional funding to complete its clinical trials, which may lead to dilution of existing stockholders' interests [99]. Research and Development - Research and development expenses totaled $3.89 million for the three months ended June 30, 2024, compared to $3.56 million for the same period in 2023, indicating a continued investment in drug development [82]. - Research and development expenses increased by approximately $2,028,000, or 33%, from approximately $6,111,000 for the six months ended June 30, 2023, to approximately $8,140,000 for the six months ended June 30, 2024 [91]. - 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 [76]. - The ADC program is advancing with a research collaboration with Bielefeld University in Germany, focusing on developing ADCs utilizing cryptophycin, which has shown promising antitumor activity [77]. - The company formed a wholly-owned subsidiary, Starlight Therapeutics, in January 2023 to focus on the clinical development of LP-184 for CNS and brain cancer indications [75]. - LP-100, another drug candidate, is being positioned for development in earlier lines of therapy after previously failing pivotal Phase 3 trials due to lack of biomarker-driven patient stratification [78]. Expenses and Cash Management - General and administrative expenses decreased by approximately $112,000, or 7%, from $1.63 million in Q2 2023 to $1.52 million in Q2 2024, primarily due to reductions in payroll and insurance expenses [86]. - General and administrative expenses decreased by approximately $364,000, or 11%, from approximately $3,365,000 for the six months ended June 30, 2023, to approximately $3,001,000 for the six months ended June 30, 2024 [90]. - Net cash used in investing activities decreased from approximately $1,418,000 for the six months ended June 30, 2023, to approximately $758,000 for the six months ended June 30, 2024 [94]. - As of June 30, 2024, total assets were approximately $35.6 million, with liquidity including approximately $33.3 million of cash, cash equivalents, and marketable securities [97]. - Lantern Pharma's cash and cash equivalents consist primarily of cash and money market funds, limiting exposure to market risk from interest rate changes [102]. Currency and Inflation - Foreign currency losses of approximately $51,000 were experienced for each of the six months ended June 30, 2024, and 2023, related to the Australian subsidiary [103]. - The company does not expect inflation to have a material effect on its results of operations during the periods presented, although it acknowledges potential future impacts [103]. - Inflation has not had a material effect on the company's results of operations during the periods presented, but could impact future results if it remains high [103]. - The company considers the risk of foreign currency losses to be manageable and not expected to be material in the future [103]. - The company does not participate in foreign currency hedging activities and does not have other derivative financial instruments [103]. Governance and Compliance - Management evaluated the effectiveness of disclosure controls and procedures as of June 30, 2024, concluding they are effective [106]. - There were no changes in internal control over financial reporting that materially affected the company during the three months ended June 30, 2024 [107]. - Lantern Pharma had no long-term debt outstanding as of June 30, 2024, and December 31, 2023 [101]. - The company maintains significant amounts of cash and cash equivalents at financial institutions that exceed federally insured limits [102]. - Lantern Pharma raised capital historically through the issuance of equity securities [101].