Lantern Pharma(US:LTRN)2024-11-07 21:07Financial Performance - The company reported net losses of approximately $14.91 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 $16.32 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 $13,841,000 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 $83,000 from $498,000 for the nine months ended September 30, 2023, to $581,000 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 $8.32 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 $8,321,000 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, or 68%, from $2,210,000 for the three months ended September 30, 2023, to $3,717,000 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 $28.1 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 $28,000 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].