Lantern Pharma Inc.

Previous wording

Weare conducting a targeted phase 2 trial (the Harmonic™ trial) for LP-300 in never smoking patients with advanced non-small cell lung cancer (“NSCLC”) in combination with chemotherapy, under an existing investigational new drug application. Our candidate LP-184 has shown promisingin-vitroandin vivo anticancer activity in multiple solid tumor indications (including pancreatic, glioblastoma and triple negative breast cancer), and it is advancing in a Phase 1A clinical trial that is nearing completion. Our candidate LP-284 has shown promisingin-vitroandin vivo anticancer activity in multiple hematological cancers, which are distinct from the indications targeted by LP-184. LP-284 is advancing in a Phase 1A clinical trial.

Current wording

Weare conducting a targeted phase 2 trial (the Harmonic™ trial) for LP-300 in never smoking patients with advanced non-small cell lung cancer (“NSCLC”) in combination with chemotherapy, under an existing investigational new drug application. Our candidate LP-184 has shown promisingin-vitroandin vivo anticancer activity in multiple solid tumor indications (including pancreatic, lung, bladder, glioblastoma and triple negative breast cancer), and enrollment was recently completed in a Phase 1a clinical trial for LP-184. Based on the results and insights from the LP-184 Phase 1a clinical trial, we are advancing and optimizing development plans for multiple future LP-184 clinical studies. Our candidate LP-284 has shown promisingin-vitroandin vivo anticancer activity in multiple hematological cancers, which are distinct from the indications targeted by LP-184. LP-284 is advancing in a Phase 1A clinical trial.

Previous wording

Our ADC program has also continued to advance. During 2024 and the first half of 2025, we continued to progress the application of our RADR® A.I. platform to advance and refine an A.I. powered module focused on improving the precision, cost and timelines of ADC development for cancer. In 2023, we entered into a research collaboration with Bielefeld University in Germany focused on development of ADCs utilizing cryptophycin as the ADC drug-payload. Cryptophycins are promising antitumor molecules that have demonstrated potency at ultra-low, picomolar, concentrations. In a broad range of preclinical studies, the cryptophycin-ADC synthesized as part of the Bielefeld collaboration demonstrated promising picomolar level potency and anti-tumor activity in multiple solid tumor cell lines, including breast, bladder, colorectal, gastric, pancreatic and ovarian.

Current wording

Our ADC program has also continued to advance. During 2024 and in 2025, we continued to apply our RADR® A.I. platform to advance and refine an A.I. powered module focused on improving the precision, cost and timelines of ADC development for cancer. In 2023, we entered into a research collaboration with Bielefeld University in Germany focused on development of ADCs utilizing cryptophycin as the ADC drug-payload. Cryptophycins are promising antitumor molecules that have demonstrated potency at ultra-low, picomolar, concentrations. In a broad range of preclinical studies, the cryptophycin-ADC synthesized as part of the Bielefeld collaboration demonstrated promising picomolar level potency and anti-tumor activity in multiple solid tumor cell lines, including breast, bladder, colorectal, gastric, pancreatic and ovarian.

Previous wording

In addition to our lead drug candidates and ADC program, we also have an additional drug candidate, LP-100, that we believe has potential for future development in combination with the class of anticancer agents known as PARP inhibitors (PARPi). For LP-100, as well as our lead drug candidate LP-300, we are leveraging data from prior preclinical studies and clinical trials, along with insights generated from our A.I. platform, to target the types of tumors and patient groups we believe will be most responsive to the drug. Both LP-100 and LP-300 showed promise in important patient subgroups, but failed pivotal Phase 3 trials when the overall results did not meet the predefined clinical endpoints. We believe that this was due to a lack of biomarker-driven patient stratification.

Current wording

In addition to our lead drug candidates and ADC program, we also have an additional drug candidate, LP-100, that we believe has potential for future development in combination with the class of anticancer agents known as PARP inhibitors (PARPi). For LP-100, as well as our lead drug candidate LP-300, we have leveraged data from prior preclinical studies and clinical trials, along with insights generated from our A.I. platform, to target the types of tumors and patient groups we believe will be most responsive to the drug. Both LP-100 and LP-300 showed promise in important patient subgroups, but failed pivotal Phase 3 trials when the overall results did not meet the predefined clinical endpoints. We believe that this was due to a lack of biomarker-driven patient stratification.

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 $8,868,000 and $10,400,000 for the six months ended June 30, 2025 and 2024, 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 $13,050,000 and $14,906,000 for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

We did not recognize revenues for the three and six-month periods ended June 30, 2025 and 2024.

Current wording

We did not recognize revenues for the three and nine-month periods ended September 30, 2025 and 2024.

Previous wording

Our research and development expenses by project category for the three and six months ended June 30, 2025 are as follows:

Current wording

Our research and development expenses by project category for the three and nine months ended September 30, 2025 are as follows:

Previous wording

Summary Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)

Current wording

Summary Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited)

Previous wording

General and administrative expenses increased approximately $64,000, or 4%, from approximately $1,520,000 for the three months ended June 30, 2024 to approximately $1,584,000 for the three months ended June 30, 2025. The increase was primarily attributable to increases in other professional fees of approximately $75,000, increases in patent costs of approximately $29,000, increases in payroll and compensation expenses of approximately $11,000, and increases in corporate insurance expense of approximately $10,000. This was partially offset by decreases in business development expenses of approximately $51,000 and decreases in office and administrative fees of approximately $8,000.

Current wording

General and administrative expenses increased approximately $450,000, or 31%, from approximately $1,463,000 for the three months ended September 30, 2024 to approximately $1,913,000 for the three months ended September 30, 2025. The increase was primarily attributable to increases in business development and investor relations expenditures of approximately $321,000, increases in other professional fees of approximately $57,000, increases in patent costs of approximately $37,000, increases in payroll and compensation expenses of approximately $21,000, and increases in office and administrative costs of approximately $14,000.

Previous wording

Research and development expenses decreased approximately $821,000, or 21%, from approximately $3,889,000 for the three months ended June 30, 2024 to approximately $3,068,000 for the three months ended June 30, 2025. The decrease was primarily attributable to decreases in research studies of approximately $777,000, decreases in consulting expenses of approximately $53,000 and decreases in payroll and compensation expenses of approximately $15,000. This was partially offset by increases in licensing expenses of approximately $31,000.

Current wording

Research and development expenses decreased approximately $1,280,000, or 34%, from approximately $3,717,000 for the three months ended September 30, 2024 to approximately $2,437,000 for the three months ended September 30, 2025. The decrease was primarily attributable to decreases in research studies and materials of approximately $1,032,000 relating to the conduct and support of clinical trials, decreases in consulting expenses of approximately $55,000 and decreases in payroll and compensation expenses of approximately $224,000. This was partially offset by increases in licensing expenses of approximately $31,000.

Previous wording

Interest income decreased approximately $74,000, or 39%, from approximately $189,000 for the three months ended June 30, 2024 to approximately $115,000 for the three months ended June 30, 2025. Other income, net decreased approximately $54,000 from a gain of approximately $260,000 for the three months ended June 30, 2024 to a gain of approximately $206,000 for the three months ended June 30, 2025. This decrease was primarily attributable to decreases in dividend income of approximately $156,000, offset in part by increases in foreign currency gains of approximately $64,000, increases in investment income of approximately $32,000, and increases of approximately $6,000 in research and development tax incentives related to our Australia subsidiary.

Current wording

Interest income decreased approximately $90,000, or 47%, from approximately $191,000 for the three months ended September 30, 2024 to approximately $101,000 for the three months ended September 30, 2025. Other income, net decreased approximately $412,000 from a gain of approximately $483,000 for the three months ended September 30, 2024 to a gain of approximately $71,000 for the three months ended September 30, 2025. This decrease was primarily attributable to decreases in dividend income and other investment income of approximately $134,000 and $201,000, respectively, as well as declines in foreign currency gains of approximately $70,000 and declines in research and development tax incentives related to our Australia subsidiary of approximately $7,000.

Previous wording

General and administrative expenses increased approximately $93,000, or 3%, from approximately $3,001,000 for the six months ended June 30, 2024 to approximately $3,094,000 for the six months ended June 30, 2025. The increase was primarily attributable to increases in other professional fees of approximately $202,000, increases in payroll and compensation expenses of approximately $45,000, increases in corporate insurance expense of approximately $25,000, increases in patent and legal expenses of approximately $17,000, and increases in rent expense of approximately $14,000. This was partially offset by decreases in business development expenses of approximately $188,000 and decreases in travel expenses of approximately $19,000.

Current wording

General and administrative expenses increased approximately $542,000, or 12%, from approximately $4,464,000 for the nine months ended September 30, 2024 to approximately $5,006,000 for the nine months ended September 30, 2025. The increase was primarily attributable to increases in other professional fees of approximately $259,000, increases in office and administrative expenses of approximately $132,000, increases in payroll and compensation expenses of approximately $66,000, increases in patent and legal expenses of approximately $54,000, increases in corporate insurance expenses of approximately $35,000, rent expense increases of approximately $19,000, and increases in office and administrative expenses of approximately $18,000. These increases were offset, in part, by declines in travel costs of approximately $29,000 and decreases in state and local taxes of approximately $12,000.

Previous wording

Research and development expenses decreased approximately $1,807,000, or 22%, from approximately $8,140,000 for the six months ended June 30, 2024 to approximately $6,332,000 for the six months ended June 30, 2025. The decrease was primarily attributable to decreases in research studies of approximately $1,789,000, decreases in payroll and compensation expenses of approximately $70,000 and decreases in consulting expenses of approximately $25,000. This was partially offset by increases in licensing expenses of approximately $62,000 and increases in research materials expenses of approximately $14,000.

Current wording

Research and development expenses decreased approximately $3,087,000, or 26%, from approximately $11,856,000 for the nine months ended September 30, 2024 to approximately $8,769,000 for the nine months ended September 30, 2025. The decrease was primarily attributable to decreases in research studies of approximately $2,808,000 relating to the conduct and support of clinical trials, decreases in payroll and compensation expenses of approximately $294,000 and decreases in consulting expenses of approximately $79,000. This was partially offset by increases in licensing expenses of approximately $94,000.

Previous wording

Interest income decreased approximately $125,000 from approximately $390,000 for the six months ended June 30, 2024 to approximately $265,000 for the six months ended June 30, 2025. Other income, net decreased approximately $57,000 from a gain of approximately $351,000 for the six months ended June 30, 2024 to a gain of approximately $294,000 for the six months ended June 30, 2025. This decrease was primarily attributable to decreases in dividend income of approximately $298,000, which were partially offset by increases of approximately $180,000 in foreign currency gains, and increases in investment income of approximately $59,000.

Current wording

Interest income decreased approximately $216,000 from approximately $581,000 for the nine months ended September 30, 2024 to approximately $365,000 for the nine months ended September 30, 2025. Other income, net decreased approximately $468,000 from a gain of approximately $833,000 for the nine months ended September 30, 2024 to a gain of approximately $365,000 for the nine months ended September 30, 2025. This decrease was primarily attributable to decreases in dividend income and investment income of approximately $431,000 and $142,000, respectively, as well declines in research and development tax incentives related to our Australia subsidiary of approximately $6,000. These declines were partially offset by an increase of approximately $111,000 in foreign currency gains.

Previous wording

For the six months ended June 30, 2025, net cash used in operating activities was approximately $8,313,000 compared to approximately $8,259,000 for the six months ended June 30, 2024. The increase in net cash used in operating activities was primarily due to a smaller increase in accounts payable and accrued expenses during the six months ended June 30, 2025 when compared to the six months ended June 30, 2024, resulting in an increased use of cash, and was offset in part by a decrease in the net loss for the six months ended June 30, 2025 compared to the net loss for the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, net cash used in operating activities was approximately $12,885,000 compared to approximately $13,841,000 for the nine months ended September 30, 2024. The primary cause of the reduction in cash used is a decrease in net loss of approximately $1,861,000 during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024. This reduction in cash flow uses was offset, in part, by a decrease in accounts payable and accrued expenses of approximately $195,000 during the nine months ended September 30, 2025, which increased the use of cash, compared to an increase in accounts payable and accrued expenses of approximately $899,000 during the nine months ended September 30, 2024.

Previous wording

For the six months ended June 30, 2025, net cash provided by investing activities was approximately $6,832,000 compared to $758,000 of net cash used in investing activities for the six months ended June 30, 2024. The increase in cash provided by investing activities is primarily related to an increase in net redemptions of investments in marketable securities during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, net cash provided by investing activities was approximately $12,761,000 compared to $78,000 of net cash used in investing activities for the nine months ended September 30, 2024. The increase in cash provided by investing activities is primarily related to an increase in net redemptions of investments in marketable securities during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.

Previous wording

As of June 30, 2025, we had total assets of approximately $17.4 million and working capital of approximately $12.3 million. As of June 30, 2025, our liquidity included approximately $15.9 million of cash, cash equivalents and marketable securities. We plan to pursue periodic capital raises and also plan to apply for grant funding in the future to assist in supporting our capital needs. In July 2025, we entered into an ATM Sales Agreement with ThinkEquity, LLC, as sales agent, pursuant to which we may offer and sell up to $15,530,000 of our common stock from time to time, in an “at-the-market” offering to or through our sales agent. We may also explore the possibility of entering into commercial credit facilities as an additional source of liquidity. We believe that our existing cash, cash equivalents, and marketable securities as of June 30, 2025, and our anticipated expenditures and capital commitments, will enable us to fund our operating expenses and capital expenditure requirements at least into June 2026. We will need substantial additional funding in the near future, and if we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our drug development programs or commercialization efforts.

Current wording

As of September 30, 2025, we had total assets of approximately $13.6 million and working capital of approximately $9.4 million. As of September 30, 2025, our liquidity included approximately $12.4 million of cash, cash equivalents and marketable securities. We plan to pursue periodic capital raises and also plan to apply for grant funding in the future to assist in supporting our capital needs. In July 2025, we entered into the ATM with ThinkEquity, as sales agent, pursuant to which we may offer and sell up to $15,530,000 of our common stock from time to time, in “at-the-market” offerings to or through our sales agent. During the quarter ended September 30, 2025, we sold 212,444 shares of common stock under the ATM for the gross proceeds of $989,061 and paid ThinkEquity $29,672 of commissions. Between October 1, 2025 and the date of this report, we have sold an additional 144,204 shares of common stock under the ATM for the gross proceeds of $634,333 and paid ThinkEquity $19,030 of commissions. We may also explore the possibility of additional manners of offering our equity securities and entering into commercial credit facilities as an additional source of liquidity. We believe that our cash, cash equivalents, and marketable securities on hand as of the date of this report will enable us to fund our anticipated operating expenses and capital expenditure requirements until at least approximately late June 2026 to mid August 2026. We will need substantial additional funding in the near future, and if we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our drug development programs or commercialization efforts.

Previous wording

Our ability to continue as a going concern is highly contingent on the ability to raise additional capital for ongoing research and development and clinical trials as we expect to continue incurring losses for the foreseeable future. The financial statements contained in this Quarterly Report on Form 10-Q have been prepared assuming that we will continue as a going concern, and do not include any adjustments that may be necessary should we be unable to continue as a going concern. We have incurred, and anticipate we will continue to incur, losses and generate negative operating cash flows and as such will require substantial additional funding in the near future to continue our research and development activities. These factors raise substantial doubt about our ability to continue as a going concern in the absence of obtaining substantial additional funding. While we plan to pursue periodic capital raises, including potential sales under the ATM Sales Agreement, no assurance can be given that sufficient funding will be available when needed to allow us to continue as a going concern.

Current wording

Our ability to continue as a going concern is highly contingent on the ability to raise additional capital for ongoing research and development and clinical trials as we expect to continue incurring losses for the foreseeable future. The financial statements contained in this Quarterly Report on Form 10-Q have been prepared assuming that we will continue as a going concern, and do not include any adjustments that may be necessary should we be unable to continue as a going concern. We have incurred, and anticipate we will continue to incur, losses and generate negative operating cash flows and as such will require substantial additional funding in the near future to continue our research and development activities. These factors raise substantial doubt about our ability to continue as a going concern in the absence of obtaining substantial additional funding. While we plan to pursue periodic capital raises, including additional potential sales under the ATM, no assurance can be given that sufficient funding will be available when needed to allow us to continue as a going concern.

Previous wording

There have been no changes to our critical accounting estimates during the six months ended June 30, 2025.

Current wording

There have been no changes to our critical accounting estimates during the nine months ended September 30, 2025.

Previous wording

We formed a wholly owned subsidiary, Lantern Pharma Australia Pty Ltd, in Australia in September 2021 and experienced foreign currency gains of approximately $130,000 for the six months ended June 30, 2025 and foreign currency losses of approximately $51,000 for the six months ended June 30, 2024 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 $138,000 and $28,000 for the nine months ended September 30, 2025 and 2024, respectively 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.