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Lantern Pharma(LTRN) - 2024 Q2 - Quarterly Report
LTRNLantern Pharma(LTRN)2024-08-08 20:07
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Financial Performance - The company reported net losses of approximately 10.4millionforthesixmonthsendedJune30,2024,comparedto10.4 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 11.14million,comparedto11.14 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 8,259,000forthesixmonthsendedJune30,2024,comparedtoapproximately8,259,000 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 3.89millionforthethreemonthsendedJune30,2024,comparedto3.89 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,or332,028,000, or 33%, from approximately 6,111,000 for the six months ended June 30, 2023, to approximately 8,140,000forthesixmonthsendedJune30,2024[91].−Thecompanyhasthreeleaddrugcandidates(LP−300,LP−184,andLP−284)currentlyinclinicalphases,withLP−300undergoingatargetedphase2trialforadvancednon−smallcelllungcancer[76].−TheADCprogramisadvancingwitharesearchcollaborationwithBielefeldUniversityinGermany,focusingondevelopingADCsutilizingcryptophycin,whichhasshownpromisingantitumoractivity[77].−Thecompanyformedawholly−ownedsubsidiary,StarlightTherapeutics,inJanuary2023tofocusontheclinicaldevelopmentofLP−184forCNSandbraincancerindications[75].−LP−100,anotherdrugcandidate,isbeingpositionedfordevelopmentinearlierlinesoftherapyafterpreviouslyfailingpivotalPhase3trialsduetolackofbiomarker−drivenpatientstratification[78].ExpensesandCashManagement−Generalandadministrativeexpensesdecreasedbyapproximately8,140,000 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 1.63millioninQ22023to1.63 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,or11364,000, or 11%, from approximately 3,365,000 for the six months ended June 30, 2023, to approximately 3,001,000forthesixmonthsendedJune30,2024[90].−Netcashusedininvestingactivitiesdecreasedfromapproximately3,001,000 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 758,000forthesixmonthsendedJune30,2024[94].−AsofJune30,2024,totalassetswereapproximately758,000 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 33.3millionofcash,cashequivalents,andmarketablesecurities[97].−LanternPharma′scashandcashequivalentsconsistprimarilyofcashandmoneymarketfunds,limitingexposuretomarketriskfrominterestratechanges[102].CurrencyandInflation−Foreigncurrencylossesofapproximately33.3 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].