Leap Therapeutics(LPTX) - 2025 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $3,303,000 for the three months ended September 30, 2025, compared to a net loss of $18,176,000 for the same period in 2024, indicating a reduction in losses of about 81.8%[20] - The net loss attributable to common stockholders for the nine months ended September 30, 2025, was $35,381,000, compared to $52,358,000 for the same period in 2024, indicating a reduction of about 32.4%[20] - For the nine months ended September 30, 2025, the company reported a net loss of $35,381, an improvement from a net loss of $52,124 in the same period of 2024, representing a decrease of approximately 32.2%[30] - The loss before income taxes for the three months ended September 30, 2025, was $(3,101) thousand, an improvement of $14,367 thousand compared to $(17,468) thousand in 2024[155] Assets and Equity - As of September 30, 2025, total assets decreased to $11,399,000 from $49,124,000 as of December 31, 2024, representing a decline of approximately 77.8%[17] - The company’s cash and cash equivalents decreased to $9,686,000 as of September 30, 2025, from $47,249,000 as of December 31, 2024, a decline of approximately 79.5%[17] - The total stockholders' equity fell to $2,695,000 as of September 30, 2025, down from $35,048,000 as of December 31, 2024, representing a decrease of about 92.3%[17] - As of September 30, 2025, the company had cash equivalents of $4,213,000, down from $23,299,000 as of December 31, 2024[58] Expenses - Research and development expenses for the three months ended September 30, 2025, were $1,247,000, a significant decrease from $14,915,000 in the same period of 2024, reflecting a reduction of approximately 91.6%[20] - Total operating expenses for the nine months ended September 30, 2025, were $35,964,000, down from $53,932,000 in the same period of 2024, marking a decrease of about 33.3%[20] - General and administrative expenses were $1.9 million for the three months ended September 30, 2025, down from $2.9 million in the same period in 2024[159] - Research and development expenses decreased to $24.7 million for the nine months ended September 30, 2025, from $44.1 million in 2024, a reduction of $19.4 million[166] Funding and Capital Structure - The company completed a private placement on October 8, 2025, raising approximately $58,888 in gross proceeds, which will support its operations and new digital asset strategy[36] - The company plans to seek additional funding through public or private equity financings or collaboration agreements to support its future operations and digital asset strategy[42] - The company plans to increase its authorized shares from 250 million to 500 million, with 490 million designated as Common Stock[120] Digital Asset Strategy - The company renamed itself from "Leap Therapeutics, Inc." to "Cypherpunk Technologies Inc." to reflect its strategic focus on digital assets[125] - The company purchased 203,775 ZEC tokens at a weighted average cost of $245.37 per token, totaling $50,000, as part of its digital asset strategy[119] - The company has not generated any revenue from product sales and has historically funded operations through stock sales and notes payable[129] Risks and Challenges - The shift towards a digital asset treasury strategy may expose the company to significant operational risks and requires substantial changes in day-to-day operations[186] - The company faces risks associated with potential bankruptcy or insolvency of custodians holding ZEC, which could inhibit ownership rights[199] - The pseudonymous nature of blockchain transactions may inadvertently lead to transactions with prohibited persons under U.S. sanctions laws, resulting in compliance risks[201] - The frequency and sophistication of cyberattacks on digital asset systems are increasing, posing significant risks to the company's operations and reputation[208] Research and Development - The company’s clinical stage program includes sirexatamab (DKN-01), a monoclonal antibody targeting DKK1, with ongoing research and development efforts[34] - The company is engaging with regulatory authorities regarding the registrational pathway for sirexatamab in CRC and optimizing the DKK1 biomarker diagnostic test[140] - Research and development expenses included a decrease of $5.3 million in clinical trial costs due to the shutdown of clinical trials[158] Shareholder Information - The weighted average common shares outstanding increased to 41,444,979 for the three months ended September 30, 2025, compared to 41,209,639 for the same period in 2024[20] - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 41,444,979, resulting in a net loss per share of $(0.08)[99] - As of September 30, 2025, there were 5,653,387 shares available for grant under the company's equity incentive plans[92]