Lantern Pharma Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
LTRN$0.57+6.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001493152-24-030766
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001493152-24-044010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 60 previous paragraphs and 60 current paragraphs.
42 unchanged; 14 reworded; 4 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Research and development expenses increased approximately $1,507,000, or 68%, from approximately $2,210,000 for the three months ended September 30, 2023 to approximately $3,717,000 for the three months ended September 30, 2024. The increase is primarily attributable to increased research study and material costs of approximately $1,189,000 relating to the conduct and support of our clinical trials, increased salaries and benefits of approximately $263,000, and increased consulting expenses of approximately $88,000, offset in part by reductions in product candidate manufacturing expenses of approximately $33,000.
Current report
Comparison of the Nine Months Ended September 30, 2024 and 2023
Current report
Research and development expenses increased approximately $3,535,000, or 42%, from approximately $8,321,000 for the nine months ended September 30, 2023 to approximately $11,856,000 for the nine months ended September 30, 2024. The increase is primarily attributable to increased research study and material costs of approximately $3,457,000 relating to the conduct and support of our clinical trials, increased salaries and benefits costs of approximately $674,000, and increased consulting expenses of $344,000, offset in part by reductions in product candidate manufacturing costs of approximately $939,000.
Current report
Interest income increased approximately $83,000 from approximately $498,000 for the nine months ended September 30, 2023 to approximately $581,000 for the nine months ended September 30, 2024. Other income, net increased approximately $106,000 from a gain of approximately $727,000 for the nine months ended September 30, 2023 to a gain of approximately $833,000 for the nine months ended September 30, 2024. This increase was primarily attributable to net appreciation in the fair value of our mutual funds and common stock of approximately $229,000 during the nine months ended September 30, 2024, as opposed to a net depreciation of approximately $94,000 in the fair value of our investment securities during the nine months ended September 30, 2023. We also recognized a gain on foreign currency remeasurement of approximately $28,000 during the nine months ended September 30, 2024, as opposed to a loss on foreign currency remeasurement of approximately $130,000 during the nine months ended September 30, 2023. Dividend income increased by approximately $58,000 for the nine months ended September 30, 2024. These increases in other income, net were offset, in part, by a decrease in research and development tax incentives related to our Australia subsidiary of approximately $432,000 for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Removed paragraphs (4)
Previous report
Research and development expenses increased approximately $331,000, or 9%, from approximately $3,558,000 for the three months ended June 30, 2023 to approximately $3,889,000 for the three months ended June 30, 2024. The increase was attributable to increases in research studies of approximately $724,000, increases in consulting expenses of approximately $187,000 and increases in payroll and compensation expenses of approximately $122,000. This was partially offset by decreases in manufacturing expenses of approximately $702,000.
Previous report
Comparison of the Six Months Ended June 30, 2024 and 2023
Previous report
Research and development expenses increased 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. The increase was primarily attributable to increases in research studies of approximately $2,268,000, increases in payroll and compensation expenses of approximately $411,000 and increases in consulting expenses of approximately $256,000. This was partially offset by decreases in manufacturing expenses of approximately $906,000.
Previous report
Interest income increased approximately $138,000 from approximately $252,000 for the six months ended June 30, 2023 to approximately $390,000 for the six months ended June 30, 2024. Other income, net decreased approximately $260,000 from a gain of approximately $611,000 for the six months ended June 30, 2023 to a gain of approximately $351,000 for the six months ended June 30, 2024. This decrease was primarily attributable to decreases of approximately $399,000 in research and development tax incentives related to our Australia subsidiary, which were partially offset by increases in dividend income of approximately $84,000 and increases in unrealized gains on investments of approximately $54,000.
Reworded paragraphs (14)
Previous wording
To date, except for a prior research grant, we have not generated any revenue, we have incurred net losses and our operations have been financed primarily by sales of our equity securities. Our net losses were approximately $10,400,000 and $8,614,000 for the six months ended June 30, 2024 and 2023, respectively.
Current wording
To date, except for a prior research grant, we have not generated any revenue, we have incurred net losses and our operations have been financed primarily by sales of our equity securities. Our net losses were approximately $14,906,000 and $11,776,000 for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
We did not recognize revenues for the three and six-month periods ended June 30, 2024 and 2023.
Current wording
We did not recognize revenues for the three and nine-month periods ended September 30, 2024 and 2023.
Previous wording
Our research and development expenses by project category for the three and six months ended June 30, 2024 are as follows:
Current wording
Our research and development expenses by project category for the three and nine months ended September 30, 2024 are as follows:
Previous wording
Because of the numerous risks and uncertainties associated with product development, we cannot determine with certainty the duration and completion costs of these or other current or future clinical trials of LP-300, LP-184, LP-284 or our other drug candidates. We may never succeed in achieving regulatory approval for LP-300, LP-184, LP-284, LP-100, or any of our other drug candidates. The duration, costs and timing of clinical trials and development of our drug candidates will depend on a variety of factors, including the uncertainties of future clinical and preclinical studies, uncertainties in clinical trial enrollment rates and significant and changing government regulation. In addition, the probability of success for each drug candidate will depend on numerous factors, including competition, manufacturing capability and commercial viability.
Current wording
Because of the numerous risks and uncertainties associated with product development, we cannot determine with certainty the duration and completion costs of these or other current or future clinical trials of LP-300, LP-184, LP-284 or our other drug candidates. We may never succeed in achieving regulatory approval for LP-300, LP-184, LP-284, LP-100, or any of our other drug candidates. The duration, costs and timing of clinical trials and development of our drug candidates will depend on a variety of factors, including the uncertainties of future clinical and preclinical studies, uncertainties in clinical trial enrollment rates, significant and changing government regulation, and geopolitical risk, including in Taiwan where we are pursuing clinical testing of LP-300. In addition, the probability of success for each drug candidate will depend on numerous factors, including competition, manufacturing capability and commercial viability.
Previous wording
Summary Results of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited)
Current wording
Summary Results of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)
Previous wording
General and administrative expenses decreased approximately $112,000, or 7%, from approximately $1,632,000 for the three months ended June 30, 2023 to approximately $1,520,000 for the three months ended June 30, 2024. The decrease was primarily attributable to decreases in payroll and compensation expenses of approximately $139,000, decreases in insurance expenses of approximately $97,000, decreases in business development expenses of approximately $27,000, and decreases in office and administrative fees of approximately $22,000. This was partially offset by increases in other professional fees of approximately $106,000 and increases in patent and legal fees of approximately $69,000. General and administrative expenses for the three months ended June 30, 2024 and 2023 included administrative expenses relating to our wholly-owned subsidiaries, including Starlight Therapeutics Inc., which was formed in January 2023.
Current wording
General and administrative expenses increased approximately $149,000, or 11%, from approximately $1,314,000 for the three months ended September 30, 2023 to approximately $1,463,000 for the three months ended September 30, 2024. The increases are primarily attributable to increased professional fees of approximately $134,000, increased patent and legal fees of approximately $42,000 and increased business development costs of approximately $8,000, offset in part by reductions in travel costs of approximately $21,000 and reductions in salaries and benefits of approximately $17,000. General and administrative expenses for the three months ended September 30, 2024 and 2023 included administrative expenses relating to our wholly-owned subsidiaries, including Starlight Therapeutics Inc., which was formed in January 2023.
Previous wording
Interest income increased approximately $71,000, or 60%, from approximately $118,000 for the three months ended June 30, 2023 to approximately $189,000 for the three months ended June 30, 2024. Other income, net decreased approximately $66,000 from a gain of approximately $326,000 for the three months ended June 30, 2023 to a gain of approximately $260,000 for the three months ended June 30, 2024. This decrease was primarily attributable to decreases of approximately $187,000 in research and development tax incentives related to our Australia subsidiary, offset in part by increases in unrealized gains on investments of approximately $55,000 and reductions in foreign currency losses of approximately $61,000.
Current wording
Interest income decreased approximately $55,000, or 22%, from approximately $246,000 for the three months ended September 30, 2023 to approximately $191,000 for the three months ended September 30, 2024. Other income, net increased approximately $367,000 from a gain of approximately $116,000 for the three months ended September 30, 2023 to a gain of approximately $483,000 for the three months ended September 30, 2024. This increase was primarily attributable to net appreciation in the fair value of our mutual funds and common stock of approximately $224,000 during the three months ended September 30, 2024, as opposed to a net depreciation of approximately $45,000 in the fair value of our investment securities during the three months ended September 30, 2023. We also recognized a gain on foreign currency remeasurement of approximately $79,000 during the three months ended September 30, 2024, as opposed to a loss on foreign currency remeasurement of approximately $79,000 during the three months ended September 30, 2023. These increases in other income, net were offset, in part, by a decrease in research and development tax incentives related to our Australia subsidiary of approximately $33,000 and declines in dividend income of approximately $27,000.
Previous wording
General and administrative expenses decreased 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. The decrease was primarily attributable to decreases in payroll and compensation expenses of approximately $269,000, decreases in corporate insurance expense of approximately $218,000 and decreases in office and administrative expenses of approximately $88,000. This was partially offset by increases in patent and legal expenses of approximately $117,000, increases in other professional fees of approximately $35,000, increases in travel expenses of approximately $32,000, and increases in business development expenses of approximately $30,000. General and administrative expenses for the six months ended June 30, 2024 and 2023 included administrative expenses relating to our wholly-owned subsidiaries, including Starlight Therapeutics Inc., which was formed in January 2023.
Current wording
General and administrative expenses decreased approximately $215,000, or 5%, from approximately $4,679,000 for the nine months ended September 30, 2023 to approximately $4,464,000 for the nine months ended September 30, 2024. The primary cause in the decline in general and administrative expenses relates to reductions in salaries and benefit costs of approximately $285,000, reductions in insurance costs of approximately $211,000, and reductions in office and administrative expenses of approximately $86,000, offset, in part, by increased professional fees of approximately $169,000, increased patent and legal costs of approximately $159,000, and increased business development expenses of approximately $37,000. General and administrative expenses for the nine months ended September 30, 2024 and 2023 included administrative expenses relating to our wholly-owned subsidiaries, including Starlight Therapeutics Inc., which was formed in January 2023.
Previous wording
For the six months ended June 30, 2024, net cash used in operating activities was approximately $8,259,000 compared to approximately $7,349,000 for the six months ended June 30, 2023. The increase in net cash used in operating activities was primarily due to the increase in the net loss for the six months ended June 30, 2024, offset in part by increases in accounts payable and accrued expenses during the six months ended June 30, 2024, which reduced the use of cash.
Current wording
For the nine months ended September 30, 2024, net cash used in operating activities was approximately $13,841,000 compared to approximately $10,961,000 for the nine months ended September 30, 2023. The increase in net cash used in operating activities was primarily due to the increase in the net loss for the nine months ended September 30, 2024, offset in part by an increase in accounts payable and accrued expenses during the nine months ended September 30, 2024, which reduced the use of cash.
Previous wording
For the six months ended June 30, 2024, net cash used in investing activities was approximately $758,000 compared to $1,418,000 of net cash used in investing activities for the six months ended June 30, 2023. The decrease in cash used in investing activities is primarily related to a reduced level of net investments in marketable securities during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023.
Current wording
For the nine months ended September 30, 2024, net cash used in investing activities was approximately $78,000 compared to approximately $1,186,000 of net cash used in investing activities for the nine months ended September 30, 2023. The decrease in cash used in investing activities is primarily related to a reduced level of net investments in marketable securities during the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023.
Previous wording
Net cash provided by financing activities was approximately $55,000 during the six months ended June 30, 2024, which is attributable to proceeds from warrant exercises. No cash was provided by or used in financing activities during the six months ended June 30, 2023.
Current wording
Net cash provided by financing activities was approximately $67,000 during the nine months ended September 30, 2024, which is attributable to proceeds from warrant exercises. No cash was provided by or used in financing activities during the nine months ended September 30, 2023.
Previous wording
As of June 30, 2024, we had total assets of approximately $35.6 million and working capital of approximately $30.7 million. As of June 30, 2024, our liquidity included approximately $33.3 million of cash, cash equivalents and marketable securities. We believe that our existing cash, cash equivalents, and marketable securities as of June 30, 2024, and our anticipated expenditures and capital commitments, will enable us to fund our operating expenses and capital expenditure requirements for at least 12 months from the date this quarterly report is filed. We expect to continue to incur significant and increasing operating losses at least for the next several years as we continue our clinical trials for LP-300, LP-184 and LP-284, advance our other drug candidates and programs, and seek potential future marketing approval for our drug candidates, which could be several years in the future, if at all. We do not expect to generate revenue, other than possible license and grant revenue, unless and until we successfully complete development and obtain regulatory approval for our therapeutic candidates. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our existing and planned clinical trials and our expenditures on other research and development activities.
Current wording
As of September 30, 2024, we had total assets of approximately $30.3 million and working capital of approximately $26.3 million. As of September 30, 2024, our liquidity included approximately $28.1 million of cash, cash equivalents and marketable securities. We believe that our existing cash, cash equivalents, and marketable securities as of September 30, 2024, and our anticipated expenditures and capital commitments, will enable us to fund our operating expenses and capital expenditure requirements for at least 12 months from the date this quarterly report is filed. We expect to continue to incur significant and increasing operating losses at least for the next several years as we continue our clinical trials for LP-300, LP-184 and LP-284, advance our other drug candidates and programs, and seek potential future marketing approval for our drug candidates, which could be several years in the future, if at all. We do not expect to generate revenue, other than possible license and grant revenue, unless and until we successfully complete development and obtain regulatory approval for our therapeutic candidates. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our existing and planned clinical trials and our expenditures on other research and development activities.
Previous wording
There have been no changes to our critical accounting estimates during the six months ended June 30, 2024.
Current wording
There have been no changes to our critical accounting estimates during the nine months ended September 30, 2024.
Previous wording
We formed a wholly owned subsidiary, Lantern Pharma Australia Pty Ltd, in Australia in September 2021 and experienced foreign currency losses of approximately $51,000 for each of the six months ended June 30, 2024 and 2023 in connection with this subsidiary. We will remain subject to the risk of foreign currency losses in future periods, although we do not expect the impact of any foreign currency losses to be material. We do not participate in any foreign currency hedging activities, and we do not have any other derivative financial instruments.
Current wording
We formed a wholly owned subsidiary, Lantern Pharma Australia Pty Ltd, in Australia in September 2021 and experienced foreign currency gains of approximately $28,000 for the nine months ended September 30, 2024 and foreign currency losses of approximately $130,000 for the nine months ended September 30, 2023 in connection with this subsidiary. We will remain subject to the risk of foreign currency losses in future periods, although we do not expect the impact of any foreign currency losses to be material. We do not participate in any foreign currency hedging activities, and we do not have any other derivative financial instruments.