Lantern Pharma Inc
For the period ended Mar 31, 2025. Filed May 15, 2025.
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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.
Mar 31, 2025 · Filed May 15, 2025
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 2024-09-30; filed 2024-11-07.
0001493152-24-044010
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001641172-25-010547
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 54 current paragraphs.
28 unchanged; 23 reworded; 3 added; 9 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 (3)
Current report
General and administrative expenses increased approximately $29,000, or 2%, from approximately $1,481,000 for the three months ended March 31, 2024 to approximately $1,510,000 for the three months ended March 31, 2025. The increase was primarily attributable to increases in professional fees of approximately $133,000 and increases in salaries and benefits of approximately $34,000. This was partially offset by a decrease in business development expenses of approximately $138,000.
Current report
Research and development expenses decreased approximately $987,000, or 23%, from approximately $4,251,000 for the three months ended March 31, 2024 to approximately $3,264,000 for the three months ended March 31, 2025. The decrease was attributable to decreases in research services of approximately $963,000, primarily due to reductions in contract research organization (CRO) and clinical site costs for LP-184. Also contributing to the decrease in research and development expenses were decreases in salaries and benefits of approximately $55,000. These decreases were partially offset by an increase in licensing fees of approximately $31,000.
Current report
As of March 31, 2025, we had working capital of approximately $16,537,000. We plan to continue to explore periodic capital raises and also plan to apply for grant funding in the future to assist in supporting our capital needs. 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 March 31, 2025, 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 of filing this Form 10-Q for the quarter ended March 31, 2025. 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.
Removed paragraphs (9)
Previous report
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 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.
Previous report
Comparison of the Nine Months Ended September 30, 2024 and 2023
Previous report
General and Administrative Expenses
Previous report
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 report
Research and Development Expenses
Previous 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.
Previous report
Interest and Other Income, Net
Previous 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.
Reworded paragraphs (23)
Previous wording
We are a clinical stage biotechnology company, focused on leveraging artificial intelligence (“A.I.”), machine learning and genomic data to streamline the drug development process and to identify the patients that will benefit from our targeted oncology therapies. Our portfolio of therapies consists of small molecules that others have tried, but failed, to develop into an approved commercialized drug, as well as new compounds that we are developing with the assistance of our proprietary A.I. platform and our biomarker driven approach. Our A.I. platform, known as RADR®, currently includes more than 100 billion data points, and uses big data analytics (combining molecular data, drug efficacy data, data from historical studies, data from scientific literature, phenotypic data from trials and publications, and mechanistic pathway data) and machine learning to rapidly uncover biologically relevant genomic signatures correlated to drug response, and then identify the cancer patients that we believe may benefit most from our compounds. This data-driven, genomically-targeted and biomarker-driven approach allows us to pursue a transformational drug development strategy that identifies, rescues or develops, and advances potential small molecule drug candidates at what we believe is a fraction of the time and cost associated with traditional cancer drug development.
Current wording
We are an artificial intelligence (A.I.) focused company dedicated to developing cancer therapies and transforming the cost, pace, and timeline of oncology drug discovery and development. Our development portfolio includes three clinical stage oncology focused product candidates and consists of small molecules that others have tried, but failed, to develop into an approved commercialized drug, as well as new compounds that we are developing with the assistance of our proprietary A.I. platform and our biomarker driven approach. Our A.I. platform, known as RADR®, is currently approaching 200 billion data points, and uses big data analytics (combining molecular data, drug efficacy data, data from historical studies, data from scientific literature, phenotypic data from trials and publications, and mechanistic pathway data) and machine learning to rapidly uncover biologically relevant genomic signatures correlated to drug response, and then identify the cancer patients that we believe may benefit most from our compounds. This data-driven, genomically-targeted and biomarker-driven approach allows us to pursue a transformational drug development strategy that identifies, rescues or develops, and advances potential small molecule drug candidates at what we believe is a fraction of the time and cost associated with traditional cancer drug development.
Previous wording
We now have active clinical programs for our three lead small molecule drug candidates: LP-300, LP-184, and LP-284. These programs are focused on multiple important cancer indications, including both solid tumors and blood cancers. We have established a wholly-owned subsidiary, Starlight Therapeutics, to focus exclusively on the clinical development of our promising opportunities for central nervous system (“CNS”) and brain cancers, many of which have no effective treatment options. We are also advancing an antibody-drug conjugate (“ADC”) program focused on developing highly specific ADCs with highly potent drug-payloads.
Current wording
We have active clinical programs forour three lead small molecule drug candidates: LP-300, LP-184, and LP-284. These programs are focused onmultiple important cancer indications, including both solid tumors and blood cancers. We have established a wholly-owned subsidiary, Starlight Therapeutics, to focus exclusively on the clinical development of our promising opportunities forcentral nervous system (“CNS”) and brain cancers, many of which have no effective treatment options. We are also advancing an antibody-drug conjugate (“ADC”) program focused on developing highly specific ADCs with highly potent drug-payloads.
Previous wording
A key component of our strategy is to target specific cancer patient populations and treatment indications identified by leveraging our RADR® platform, a proprietary A.I. enabled engine created and owned by us. We believe the combination of our therapeutic area expertise, our A.I. expertise, and our ability to identify and develop promising drug candidates through our collaborative relationships with research institutions in selected areas of oncology gives us a significant competitive advantage. Our RADR® platform has been developed and refined over the last five years and integrates billions of data points immediately relevant for oncology drug development and patient response prediction using artificial intelligence and proprietary machine learning algorithms. By identifying clinical candidates, together with relevant genomic and phenotypic data, we believe our approach will help us design more efficient pre-clinical studies, and more targeted clinical trials, thereby accelerating our drug candidates’ time to approval and eventually to market. Although we have not yet applied for or received regulatory or marketing approval for any of our drug candidates, we believe our RADR®platform has the ability to reduce the cost and time to bring drug candidates to specifically targeted patient groups. We believe we have developed a sustainable and scalable biopharma business model by combining a unique, oncology-focused big-data platform that leverages artificial intelligence along with active clinical and preclinical programs that are being advanced in targeted cancer therapeutic areas to address today’s treatment needs.
Current wording
A key component of our strategy is to target specific cancer patient populations and treatment indications identified by leveraging our RADR® platform, a proprietary A.I. enabled engine created and owned by us. We believe the combination of our therapeutic area expertise, our A.I. expertise, and our ability to identify and develop promising drug candidates through our collaborative relationships with research institutions in selected areas of oncology gives us a significant competitive advantage. Our RADR® platform has been developed and refined over the last several years and integrates billions of data points immediately relevant for oncology drug development and patient response prediction using artificial intelligence and proprietary machine learning algorithms. By identifying clinical candidates, together with relevant genomic and phenotypic data, we believe our approach will help us design more efficient pre-clinical studies, and more targeted clinical trials, thereby accelerating our drug candidates’ time to approval and eventually to market. Although we have not yet applied for or received regulatory or marketing approval for any of our drug candidates, we believe our RADR®platform has the ability to reduce the cost and time to bring drug candidates to specifically targeted patient groups. We believe we have developed a sustainable and scalable biopharma business model by combining a unique, oncology-focused big-data platform that leverages artificial intelligence along with active clinical and preclinical programs that are being advanced in targeted cancer therapeutic areas to address today’s treatment needs.
Previous wording
We are currently 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 commenced in mid-2023. 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 that commenced in the fourth quarter of 2023.
Current wording
We are 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. 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. 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 the first quarter 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.
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 $14,906,000 and $11,776,000 for the nine months ended September 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 $4,537,000 and $5,441,000 for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Our net losses have primarily resulted from costs incurred in licensing and developing the drug candidates in our pipeline, planning, preparing and conducting preclinical studies and clinical testing, and general and administrative activities associated with our operations. We expect to continue to incur significant expenses and corresponding increased operating losses for the foreseeable future as we continue to develop our pipeline. Our costs may further increase as we conduct additional preclinical studies and clinical trials and potentially seek regulatory clearance for and prepare to commercialize our drug candidates. We expect to incur significant expenses to continue to build the infrastructure necessary to support our expanded operations, preclinical studies, clinical trials, and commercialization, including manufacturing, marketing, sales and distribution functions. We have experienced and will continue to experience substantial costs associated with operating as a public company.
Current wording
Our net losses have primarily resulted from costs incurred in licensing and developing the drug candidates in our pipeline, planning, preparing and conducting preclinical studies and clinical testing, and general and administrative activities associated with our operations. We expect to continue to incur significant expenses and corresponding operating losses for the foreseeable future as we continue to develop our pipeline. Our costs may further increase as we conduct additional preclinical studies and clinical trials and potentially seek regulatory clearance for and prepare to commercialize our drug candidates. We expect to incur significant expenses to continue to build the infrastructure necessary to support our expanded operations, preclinical studies, clinical trials, and commercialization, including manufacturing, marketing, sales and distribution functions. We have experienced and will continue to experience substantial costs associated with operating as a public company.
Previous wording
We did not recognize revenues for the three and nine-month periods ended September 30, 2024 and 2023.
Current wording
We did not recognize revenues for the three-month periods ended March 31, 2025 and 2024.
Previous wording
Our research and development expenses by project category for the three and nine months ended September 30, 2024 are as follows:
Current wording
Our research and development expenses by project category for the three months ended March 31, 2025 and 2024 are as follows:
Previous wording
We expect that our research and development expenses will continue to increase as we progress our clinical trials for LP-300, LP-184, and LP-284, and advance our other drug candidates and programs. We expect this increase to include additional expenses associated with research and service provider agreements for the advancement of our drug candidates and research and development efforts.
Current wording
We expect that our research and development expenses will fluctuate from quarter to quarter and year to year. We expect that our research and development expenses will increase substantially over time based on the progress of our clinical trials for LP-300, LP-184 and LP-284, and other programs and drug candidates. We expect to make substantial expenditures associated with research and service provider agreements for the advancement of our drug candidates and research and development efforts.
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, 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.
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, 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
We expect increased administrative costs resulting from our existing and anticipated clinical trials and the potential commercialization of our drug candidates. We believe that these increases will likely include increased costs for hiring additional administrative personnel to support future market research and future product commercialization efforts and increased fees for outside consultants and other administrative service providers.
Current wording
We expect fluctuating and increased administrative costs over time resulting from our existing and anticipated clinical trials and the potential commercialization of our drug candidates. We believe that these increases will likely include increased costs for hiring additional administrative personnel to support future market research and future product commercialization efforts and increased fees for outside consultants, attorneys and accountants.
Previous wording
Summary Results of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)
Current wording
Summary Results of Operations for the Three Months Ended March 31, 2025 and 2024 (unaudited)
Previous 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.
Current wording
Interest income decreased approximately $51,000, or 25%, from approximately $201,000 for the three months ended March 31, 2024 to approximately $150,000 for the three months ended March 31, 2025. Other income, net decreased approximately $3,000 from approximately $90,000 for the three months ended March 31, 2024 to approximately $87,000 for the three months ended March 31, 2025. This decrease was primarily attributable to decreases in dividend income of approximately $142,000 and decreases in research and development tax incentives related to our Australia subsidiary of approximately $5,000. These decreases were partially offset by the realization of foreign currency gains of approximately $17,000 during the three months ended March 31, 2025 as compared to foreign currency losses of approximately $99,000 during the three months ended March 31, 2024.
Previous 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.
Current wording
For the three months ended March 31, 2025, net cash used in operating activities was approximately $4,376,000 compared to approximately $3,069,000 for the three months ended March 31, 2024. The increase in cash used in operating activities was primarily due to the following factors. Our accounts payable and accrued expenses balance increased approximately $1,270,000 and our prepaid expenses and other current assets declined by approximately $901,000 during the three months ended March 31, 2024, which required less cash. During the three months ended March 31, 2025, our accounts payable and accrued expenses balance declined slightly and prepaid expenses and other current assets declined by approximately $133,000, resulting in a requirement for more cash overall, despite the decrease in net loss of approximately $904,000 between the two periods.
Previous 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.
Current wording
For the three months ended March 31, 2025, net cash provided by investing activities was approximately $3,239,000 compared to approximately $556,000 of net cash used in investing activities for the three months ended March 31, 2024. The change is primarily a result of investing in more short-term securities that are considered cash and cash equivalents during the three months ended March 31, 2025 than we did during the three months ended March 31, 2024.
Previous 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.
Current wording
Net cash flows provided by financing activities during the three months ended March 31, 2024 were generated from warrant exercises. There were no cash flows from financing activities during the three months ended March 31, 2025.
Previous 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.
Current wording
We expect to continue to incur significant and often increasing operating losses at least for the next several years as we continue our clinical development of LP-300, LP-184 and LP-284, pursue development of 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
We expect that we will need to obtain substantial additional funding in order to complete our clinical trials. To the extent that we raise additional capital through the sale of common stock, convertible securities or other equity securities, the ownership interests of our existing stockholders may be materially diluted and the terms of these securities could include liquidation or other preferences that could adversely affect the rights of our existing stockholders. In addition, debt financing, if available, would result in increased fixed payment obligations and may involve agreements that include restrictive covenants that limit our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends, that could adversely impact our ability to conduct our business. If we are unable to raise capital when needed or on attractive terms, we could be forced to significantly delay, scale back or discontinue the development or commercialization of LP-300, LP-184, LP-284, and/or our other drug candidates and programs, seek collaborators at an earlier stage than otherwise would be desirable or on terms that are less favorable than might otherwise be available, and relinquish or license, potentially on unfavorable terms, our rights to LP-300, LP-184, LP-284, and/or other drug candidates and programs that we otherwise would seek to develop or commercialize ourselves.
Current wording
We expect that we will need to obtain substantial additional funding in order to complete our clinical trials. To the extent that we raise additional capital through the sale of common stock, convertible securities or other equity securities, the ownership interests of our existing stockholders may be materially diluted and the terms of these securities could include liquidation or other preferences that could adversely affect the rights of our existing stockholders. In addition, debt financing, if available, would result in increased fixed payment obligations and may involve agreements that include restrictive covenants that limit our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends, that could adversely impact our ability to conduct our business. If we are unable to raise capital when needed or on attractive terms, we could be forced to significantly delay, scale back or discontinue the development or commercialization of LP-300, LP-184, LP-284, and/or other drug candidates and programs, seek collaborators at an earlier stage than otherwise would be desirable or on terms that are less favorable than might otherwise be available, and relinquish or license, potentially on unfavorable terms, our rights to LP-300, LP-184, LP-284, and/or other drug candidates and programs that we otherwise would seek to develop or commercialize ourselves.
Previous wording
There have been no changes to our critical accounting estimates during the nine months ended September 30, 2024.
Current wording
There have been no changes to our critical accounting estimates during the three months ended March 31, 2025.
Previous wording
We do not believe that our cash and cash equivalents have significant risk of default or illiquidity. Our cash and cash equivalents consist primarily of cash and money market funds. Our exposure to market risk relating to cash and cash equivalents due to changes in interest rates is limited because our cash and cash equivalents have a short-term maturity and are used primarily for working capital purposes. Our marketable securities have had and may in the future have their market value adversely affected due to rises in interest rates. While we believe our cash, cash equivalents and marketable securities do not contain excessive risk, we cannot provide absolute assurance that in the future our investments will not be subject to adverse changes in market value. In addition, we maintain significant amounts of cash and cash equivalents at one or more financial institutions that are in excess of federally insured limits. Interest bearing and non-interest bearing accounts we hold at banking institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Substantially all of our cash balances held at banking institutions are in excess of FDIC coverage. We consider this to be a normal business risk.
Current wording
We do not believe that our cash and cash equivalents have significant risk of default or illiquidity. Our cash and cash equivalents consist primarily of cash and money market funds. Our exposure to market risk relating to cash and cash equivalents due to changes in interest rates is limited because our cash and cash equivalents have a short-term maturity and are used primarily for working capital purposes. Our marketable securities have had and may in the future have their market value adversely affected due to rises in interest rates. While we believe our cash, cash equivalents and marketable securities do not contain excessive risk, we cannot provide absolute assurance that in the future our investments will not be subject to adverse changes in market value. In addition, we maintain significant amounts of cash and cash equivalents at one or more financial institutions that from time to time may be in excess of federally insured limits. Interest bearing and non-interest bearing accounts we hold at banking institutions are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. From time to time, some of our cash balances held at banking institutions may be in excess of FDIC coverage. We consider this to be a normal business risk.
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 $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.
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 $17,000 and foreign currency losses of approximately $99,000 for the three months ended March 31, 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.
Previous wording
Inflation generally affects us by increasing our cost of labor and clinical trial costs. We do not believe that inflation has had a material effect on our results of operations during the periods presented. Inflation has increased substantially in recent periods and could have a greater impact on our future results of operations if it remains at current levels or increases further.
Current wording
Inflation generally affects us by increasing our cost of labor and clinical trial costs. We do not believe that inflation has had a material effect on our results of operations during the periods presented. Inflation could have a greater impact on our future results of operations if it remains at current levels or increases further.