LTRN

Lantern Pharma Inc. (LTRN) - Q2 2026 Filing Summary

Business Context and Reporting Period

This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Lantern Pharma Inc. is an AI-focused biopharmaceutical company developing oncology therapies using its proprietary RADR® platform and a new multi-agent AI co-scientist platform, withZeta.ai. The company operates as a non-accelerated filer and smaller reporting company. As of August 10, 2026, there were 12,784,146 shares of common stock outstanding.

Key Financial Metrics

Material Changes vs. Prior Period

• Net Loss Increase: Net loss increased by approximately $1.53 million (17%) compared to the prior year period. This increase was driven primarily by non-cash charges related to a new warrant liability.
• Warrant Liability Impact: The company recorded a $2,127,379 loss due to the change in fair value of warrant liabilities, a $726,427 loss on issuance of warrants, and $755,233 in warrant issuance costs. These items were absent in the prior year period.
• Operating Expense Reduction: Total operating expenses decreased by approximately $2.51 million (27%). Research and Development (R&D) expenses dropped significantly by $2.82 million (44%) due to reduced clinical study and material costs. General and Administrative (G&A) expenses increased by $304,000 (10%) due to higher business development and salary costs.
• Liquidity Position: While cash and cash equivalents increased slightly, marketable securities decreased by approximately $5 million as the company redeemed securities to fund operations. Total liquid assets (cash, equivalents, and marketable securities) stood at approximately $7.36 million.

Guidance, Outlook, and Risks

• Going Concern Warning: Management has expressed substantial doubt about the company's ability to continue as a going concern. Current cash, cash equivalents, and marketable securities are insufficient to fund operations for the next 12 months without additional funding.
• Capital Raising: In May 2026, the company completed a registered direct offering raising gross proceeds of approximately $4.4 million. The company intends to pursue periodic capital raises, including sales under an "at-the-market" (ATM) facility, and seek collaborations or grants.
• Strategic Spin-off: In July 2026, the company formed a wholly-owned subsidiary, Open Medicine AI Inc., to commercialize the withZeta.ai platform. Lantern Pharma received 5 million shares of the new entity. The company anticipates Open Medicine AI may become a separately listed company, though no assurance is given.
• Clinical Pipeline:
  • LP-300: Advancing in a Phase 2 trial (Harmonic™) for non-small cell lung cancer (NSCLC), focusing on patients with the EGFR exon 21 L858R mutation.
  • LP-184 (STAR-001): Phase 1a enrollment completed; development focused on CNS and brain cancers via subsidiary Starlight Therapeutics.
  • LP-284: Phase 1 clinical trial ongoing for hematological cancers.

Investor Verification Checklist

• Funding Runway: Verify the timeline for the next capital raise given the explicit "substantial doubt" regarding going concern status.
• Warrant Liability Volatility: Monitor the fair value of the $7.5 million warrant liability, which is highly sensitive to stock price fluctuations and significantly impacts reported net loss.
• Open Medicine AI Progress: Track the commercialization and potential listing status of the newly formed Open Medicine AI subsidiary.
• Clinical Trial Data: Review upcoming data readouts for the LP-300 Harmonic™ trial and LP-184 Phase 1a results.
• ATM Utilization: Check for any sales activity under the ATM facility with ThinkEquity LLC to gauge immediate liquidity needs.