Lantern Pharma (NASDAQ: LTRN) reported Q4 EPS of ($0.47), $0.02 worse than the analyst estimate of ($0.45).

Fourth Quarter 2020 Financial Highlights

• Cash Position: Cash and cash equivalents were $19.2 million as of December 31, 2020, compared to $20.8 million as of September 30, 2020 and $1.2 million as of December 31, 2019. The quarterly cash burn reflects our capital-efficient, collaborator-centered business model. The year-over-year increase in cash balance reflects proceeds from the June 2020 IPO. On January 20, 2021, we completed a follow-on public offering resulting in gross proceeds of $69.0 million.
• R&D Expenses: Research and development expenses were $1,348,329 for the quarter ended December 31, 2020, compared to $177,467 for the quarter ended December 31, 2019. The increase was primarily attributable to increases in research studies, expansion of the company's research team, and research and development related stock option compensation expense of $470,401 (a non-cash item) for the quarter ended December 31, 2020.
• G&A Expenses: General and administrative expenses were $1,547,675 for the quarter ended December 31, 2020, compared to $497,700 for the quarter ended December 31, 2019. The increase was primarily attributable to expenses associated with operating as a public company and general and administrative related stock option compensation expense of $554,503 (a non-cash item) for the quarter ended December 31, 2020.
• Net Loss: Net losses were $2,896,004 for the quarter ended December 31, 2020, or $0.47 per share, compared to a net loss of $675,167 for the quarter ended December 31, 2019, or $0.34 per share. The net losses include non-cash expenses related to employee stock options of $1,024,904 for the quarter ended December 31, 2020.

"2020 was a pivotal year for Lantern Pharma, marked by a series of financial, operational and drug development achievements. We believe each of these achievements further validates our unique capital-efficient business model that leverages the power of our proprietary RADR® A.I. platform with the knowledge and experience of our scientific team aimed at developing precision oncology drugs," stated Panna Sharma, President and CEO of Lantern Pharma. "We anticipate 2021 to be a transformational year for Lantern and our shareholders as each of our drug programs progresses towards key milestones, including the initiation of a Phase 2 trial of LP-300 in NSCLC among non-smokers, IND-enabling studies of LP-184 in multiple solid tumors, advancing our ADC program, and continued growth in the biologically-relevant and curated data that powers our RADR® A.I. platform."

"As a result of our rapid development and operational progress after our June IPO, we were able to significantly strengthen our balance sheet with the closing of a $69.0 million public offering in January 2021. Our solid financial position is expected to fuel continued growth and evolution of our RADR® A.I. platform, accelerate the development of our portfolio of targeted oncology drug candidates and allow us to introduce additional targeted opportunities in a capital efficient manner," continued Sharma. "In a very short time since our IPO in June 2020, we have:

• More than doubled the number of programs in development, increasing our "shots on goal" and the number of opportunities for potentially accretive licensing or partnering opportunities.
• Initiated a differentiated Antibody Drug Conjugate (ADC) program with novel linking technologies.
• Grew by over 5x the number of datapoints that fuel our RADR® A.I. platform.
• Added significant additional functionality into our RADR® A.I. platform.
• Initiated multiple research and development collaborations with leading cancer centers, including: Johns Hopkins in GBM and other brain cancers, Georgetown University in prostate cancer, and Fox Chase Cancer Center in pancreatic cancer.

The rapid development and capital-efficient, collaborative approach of our business showcases the power and potential of A.I. and machine learning to transform the pace, risk and cost of oncology drug discovery and development."

Mr. Sharma continued, "The golden age of A.I. in medicine is beginning, and Lantern Pharma is among the leaders in this paradigm shift to transform the pace, risk and cost of oncology drug discovery and development. With our RADR® A.I. platform we are demonstrating the opportunity for attainment of significant efficiencies in the time and cost of oncology drug discovery and development. As our growing pipeline of oncology drug candidates demonstrates, the rapid, machine learning enabled identification and validation of molecular drivers of cancer provides the potential for more targeted and more effective oncology therapies. During the fourth quarter of 2020 we were able to identify and validate an entirely new indication for LP-184 in a type of ultra-rare brain cancer, ATRT, that presents primarily in children. This discovery along with additional CNS opportunities that we are in the process of validating was enabled by using our RADR® A.I. platform. As our RADR® A.I. platform grows over the coming year, we anticipate the identification of additional high value targets and indications as monotherapies, combination therapies or as part of our ADC program."

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