Leap Therapeutics(LPTX) - 2020 Q3 - Quarterly Report

Financial Performance - Total current assets increased to $58,401,000 as of September 30, 2020, compared to $4,241,000 as of December 31, 2019, representing a significant growth of 1,276%[17] - License revenue for the three months ended September 30, 2020, was $375,000, compared to $0 for the same period in 2019, indicating a new revenue stream[19] - Net loss for the three months ended September 30, 2020, was $7,057,000, a slight improvement from a net loss of $7,935,000 in the same period of 2019, reflecting a decrease of 11%[22] - The company reported a comprehensive loss of $7,265,000 for the three months ended September 30, 2020, compared to $7,930,000 in the same period of 2019, a decrease of 8.4%[22] - Net loss for the nine months ended September 30, 2020, was $20,804,000, compared to a net loss of $24,904,000 for the same period in 2019, representing a decrease of 12.5%[31] - The company reported a net loss from operations of $20.8 million for the nine months ended September 30, 2020, down from a net loss of $24.9 million in the same period of 2019, indicating an improvement of 16.7%[188] Cash and Liquidity - Cash and cash equivalents increased significantly to $57,975,000 as of September 30, 2020, compared to $3,891,000 as of December 31, 2019, marking an increase of 1,387%[17] - Cash and cash equivalents at the end of the period were $57,975,000, up from $10,058,000 at the end of the same period in 2019, indicating a significant increase of 475.5%[31] - The company experienced a net cash increase of $54,084,000 during the nine months ended September 30, 2020, compared to a decrease of $6,226,000 in the prior year[31] - As of September 30, 2020, the company had cash and cash equivalents of $58.0 million, expected to fund operating expenses for at least the next 12 months[186] Operating Expenses - Total operating expenses decreased to $7,883,000 for the three months ended September 30, 2020, from $7,923,000 in the same period of 2019, a reduction of 0.5%[19] - Research and development expenses for the three months ended September 30, 2020, were $5,369,000, slightly lower than $5,772,000 for the same period in 2019, a decrease of 7%[19] - Total operating expenses for the nine months ended September 30, 2020, were $22.5 million, down from $25.2 million in 2019, reflecting a decrease of $2.7 million[177] - Research and development expenses for the nine months ended September 30, 2020, were $15.3 million, a decrease of $3.4 million from $18.7 million in 2019, mainly due to reduced clinical trial costs[179] Revenue Streams - The company has not generated any product sales revenues and has not achieved profitable operations since inception[39] - The Company recognized $375 and $1,125 of license revenue related to the upfront fee received from BeiGene during the three and nine months ended September 30, 2020, respectively[85] - For the nine months ended September 30, 2020, license revenue was $1.1 million, an increase of $1.1 million compared to no license revenue in the same period in 2019[177] Financing Activities - Proceeds from the issuance of common stock during the June 2020 Public Offering amounted to $48,518,000[31] - The total cash provided by financing activities for the nine months ended September 30, 2020, was $73,997,000, compared to $14,836,000 in the same period of 2019, indicating a substantial increase of 396.5%[31] - The company raised $14,986,000 from the issuance of Series A convertible preferred stock and $12,000,000 from Series B convertible preferred stock during the reporting period[31] - The company raised $48.5 million from the issuance of common stock in connection with the 2020 Public Offering during the nine months ended September 30, 2020[190] Research and Development - Research and development expenses for the DKN-01 program were $5,275,000 for Q3 2020, compared to $3,806,000 for Q3 2019, reflecting a 39% increase[152] - The company plans to increase research and development expenses in the foreseeable future to support the development of DKN-01 and other product candidates[149] - The company has received Australian government R&D incentives, which amounted to $228,000 for Q3 2020, compared to a negative $7,000 in Q3 2019[152] Accumulated Deficit - The accumulated deficit as of September 30, 2020, was $216,275,000, compared to $195,168,000 as of December 31, 2019, indicating an increase in losses[17] - The company incurred a net loss of $20,804 during the nine months ended September 30, 2020, and has an accumulated deficit of $216,275 as of the same date[40] Clinical Trials and Product Development - DKN-01 is currently being studied in multiple clinical trials for esophagogastric cancer, hepatobiliary cancer, gynecologic cancers, and prostate cancer[142] - DKN-01 received Fast Track designation from the FDA for treating gastric and gastroesophageal junction adenocarcinoma, facilitating expedited development and review[142] - The ongoing COVID-19 pandemic may adversely affect the company's ability to conduct clinical trials for its lead product candidate, DKN-01, due to operational disruptions[201]