Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 29, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Lantern Pharma Inc. | |
Entity Central Index Key | 0001763950 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex-transition period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,217,577 | |
Entity File Number | 001-39318 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | TX |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash | $ 23,798,343 | $ 1,232,030 |
Other current asset | 1,728,539 | |
Prepaid expense | 70,775 | 788 |
Total current assets | 25,597,657 | 1,232,030 |
Property and equipment, net | 15,377 | 8,758 |
Deferred offering costs | 191,000 | |
TOTAL ASSETS | 25,613,034 | 1,432,576 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 467,988 | 489,292 |
Insurance payable | 1,705,846 | |
Note payable | 102,831 | |
Total current liabilities | 2,276,665 | 489,292 |
Loan payable | 108,500 | |
TOTAL LIABILITIES | 2,385,165 | 489,292 |
COMMITMENTS AND CONTINGENCIES (NOTE 4) | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock - Par Value (1,000,000 authorized at June 30, 2020; 3,480,000 authorized at December 31, 2019; $.0001 par value) (Zero shares issued and outstanding at June 30, 2020; 2,438,866 shares issued and outstanding at December 31, 2019) | 244 | |
Common Stock – Par Value (25,000,000 authorized at June 30, 2020; 12,180,000 authorized at December 31, 2019; $.0001 par value) (6,217,577 shares issued and outstanding at June 30, 2020; 1,978,269 shares issued and outstanding at December 31, 2019) | 622 | 198 |
Additional paid-in capital | 31,289,650 | 7,694,547 |
Accumulated deficit | (8,062,403) | (6,751,705) |
Total stockholders' equity | 23,227,869 | 943,284 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 25,613,034 | $ 1,432,576 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par value | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized | 1,000,000 | 3,480,000 |
Preferred Stock, shares issued | 0 | 2,438,866 |
Preferred Stock, shares outstanding | 0 | 2,438,866 |
Common stock, Shares par value | $ 0.0001 | $ 0.0001 |
Common stock, Shares authorized | 25,000,000 | 12,180,000 |
Common stock, Shares issued | 6,217,577 | 1,978,269 |
Common stock, shares outstanding | 6,217,577 | 1,978,269 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||||
General and administrative | $ 676,399 | $ 268,120 | $ 1,016,571 | $ 536,049 |
Research and development | 157,023 | 361,273 | 294,127 | 547,317 |
Total operating expenses | 833,422 | 629,393 | 1,310,698 | 1,083,366 |
NET LOSS | $ (833,422) | $ (629,393) | $ (1,310,698) | $ (1,083,366) |
Net loss per share of common shares, basic and diluted | $ (0.31) | $ (0.32) | $ (0.55) | $ (0.55) |
Weighted-average number of common shares outstanding, basic and diluted | 2,719,198 | 1,978,269 | 2,370,082 | 1,978,269 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 129 | $ 198 | $ 4,121,395 | $ (4,323,520) | $ (201,798) |
Balance, shares at Dec. 31, 2018 | 1,292,952 | 1,978,269 | |||
Preferred stock and warrants issued | $ 81 | 2,384,919 | 2,385,000 | ||
Preferred stock and warrants issued, shares | 804,153 | ||||
Stock-based compensation | 15,531 | 15,531 | |||
Net Loss | (453,973) | (453,973) | |||
Balance at Mar. 31, 2019 | $ 210 | $ 198 | 6,521,845 | (4,777,493) | 1,744,760 |
Balance, shares at Mar. 31, 2019 | 2,097,105 | 1,978,269 | |||
Stock-based compensation | 6,029 | 6,029 | |||
Net Loss | (629,393) | (629,393) | |||
Balance at Jun. 30, 2019 | $ 210 | $ 198 | 6,527,874 | (5,406,886) | 1,121,396 |
Balance, shares at Jun. 30, 2019 | 2,097,105 | 1,978,269 | |||
Balance at Dec. 31, 2019 | $ 244 | $ 198 | 7,694,547 | (6,751,705) | 943,284 |
Balance, shares at Dec. 31, 2019 | 2,438,866 | 1,978,269 | |||
Common stock issued, net of issuance costs | $ 5 | 51,995 | 52,000 | ||
Common stock issued, net of issuance costs, shares | 50,460 | ||||
Stock-based compensation | 18,460 | 18,460 | |||
Net Loss | (477,276) | (477,276) | |||
Balance at Mar. 31, 2020 | $ 244 | $ 203 | 7,765,002 | (7,228,981) | 536,468 |
Balance, shares at Mar. 31, 2020 | 2,438,866 | 2,028,729 | |||
Balance at Dec. 31, 2019 | $ 244 | $ 198 | 7,694,547 | (6,751,705) | 943,284 |
Balance, shares at Dec. 31, 2019 | 2,438,866 | 1,978,269 | |||
Balance at Jun. 30, 2020 | $ 622 | 31,289,650 | (8,062,403) | 23,227,869 | |
Balance, shares at Jun. 30, 2020 | 6,217,577 | ||||
Balance at Mar. 31, 2020 | $ 244 | $ 203 | 7,765,002 | (7,228,981) | 536,468 |
Balance, shares at Mar. 31, 2020 | 2,438,866 | 2,028,729 | |||
Common stock issued, net of issuance costs | $ 175 | 23,419,546 | 23,419,721 | ||
Common stock issued, net of issuance costs, shares | 1,750,000 | ||||
Preferred stock conversion to common stock and fractional shares adjustments from stock split and conversion | $ (244) | $ 244 | (261) | (261) | |
Preferred stock conversion to common stock and fractional shares adjustments from stock split and conversion, shares | (2,438,866) | 2,438,848 | |||
Stock-based compensation | 105,363 | 105,363 | |||
Net Loss | (833,422) | (833,422) | |||
Balance at Jun. 30, 2020 | $ 622 | $ 31,289,650 | $ (8,062,403) | $ 23,227,869 | |
Balance, shares at Jun. 30, 2020 | 6,217,577 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,310,698) | $ (1,083,366) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 1,202 | 629 |
Stock based compensation | 123,823 | 21,560 |
Changes in assets and liabilities: | ||
Prepaid expenses | (69,987) | (32,363) |
Accounts payable and accrued expenses | 61,742 | 224,418 |
Net cash flows used in operating activities | (1,193,918) | (869,122) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (7,821) | |
Net cash flows used in investing activities | (7,821) | |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common and preferred stock | 26,250,000 | 1,850,003 |
Issuance costs | (2,745,279) | |
Proceeds from stock option exercise | 52,000 | |
Borrowings from notes payable | 169,049 | |
Payments on notes payable | (66,218) | |
Borrowings on loan payable | 108,500 | |
Net cash flows provided by financing activities | 23,768,052 | 1,850,003 |
CHANGE IN CASH FOR THE PERIOD | 22,566,313 | 980,881 |
CASH, BEGINNING OF PERIOD | 1,232,030 | 445,163 |
CASH, END OF PERIOD | 23,798,343 | 1,426,044 |
Non-cash financing activities | ||
Conversion of SAFE agreements to Series A preferred stock | 535,000 | |
Application of deferred offering costs to initial public offering proceeds | (456,437) | |
Amounts owed related to fractional shares adjustment, included in accounts payable and accrued expenses | $ (261) |
Organization Principal Activiti
Organization Principal Activities and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Principal Activities, and Basis of Presentation | Note 1. Organization, Principal Activities, and Basis of Presentation Lantern Pharma Inc., and Subsidiary (the "Company") is 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 its targeted oncology therapies. The Company's portfolio of therapies consists of small molecule drug candidates that others have tried, but failed, to develop into an approved commercialized drug, as well as new compounds that it is developing with the assistance of its A.I. platform and its biomarker driven approach. The Company's A.I. platform, known as RADR®, 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. The Company's data-driven, genomically-targeted and biomarker-driven approach allows it to pursue a transformational drug development strategy that identifies, rescues or develops, and advances potential small molecule drug candidates. Lantern Pharma Inc. was incorporated under the laws of the state of Texas on November 7, 2013, and thereafter reincorporated in the state of Delaware on January 15, 2020. The Company's principal operations are located in Texas. The Company formed a wholly owned subsidiary, Lantern Pharma Limited, in the United Kingdom in July 2017. All intercompany balances and transactions have been eliminated in consolidation. Since inception, the Company has devoted substantially all its activity to advancing research and development, including efforts in connection with preclinical studies, clinical trials and development of its RADR platform. This includes research and development for three drug candidates in development in targeted areas identified with the assistance of the RADR platform: ● LP-100 (irofulven), out-licensed to Oncology Venture, in phase II trial for the treatment of prostate cancer; ● LP-300 (Tavocept) in planning stages for phase II trial for the treatment of non-small cell lung cancer; and ● LP-184 in preclinical studies for treatment of solid tumors including prostate, ovarian, and liver cancers. In connection with the Company's reincorporation in the state of Delaware on January 15, 2020, the par value of the Company's Common Stock and Series A Preferred Stock was changed from $0.01 per share to $0.0001 per share. The change in the par value has been retroactively reflected in the accompanying condensed consolidated financial statements. Additional funds have been reclassified from Common Stock and Series A Preferred Stock to additional paid-in capital to reflect the change in par value associated with the reincorporation. The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared on substantially the same basis as the Company's annual consolidated financial statements for the fiscal year ended December 31, 2019. In the opinion of the Company's management, these interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2019 year-end condensed consolidated balance sheet data in the accompanying interim condensed consolidated financial statements was derived from audited consolidated financial statements. These condensed consolidated financial statements and notes do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2019 and the notes thereto included in the Company's final prospectus, dated June 10, 2020, for the Company's initial public offering, on file with the Securities and Exchange Commission. The results of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Any reference in these notes to applicable guidance refers to Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). To date, the Company has operated its business as one segment. The Company's condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Lantern Pharma Limited. All intercompany balances and transactions have been eliminated in consolidation. Effective June 11, 2020, in connection with the Company's initial public offering ("IPO"), the Company completed a forward stock split of its common stock at a ratio of 1.74 for 1 shares. In addition, all of the Company's preferred stock converted into common stock effective June 15, 2020 in connection with the IPO. All data on common stock and equivalents in the accompanying condensed consolidated financial statements and in these notes are shown herein reflective of this stock split and the conversion of the preferred stock. In addition, the number of shares of preferred stock in the accompanying condensed consolidated financial statements and in these notes is presented to reflect the number of shares into which the preferred stock would convert as a result of the forward stock split. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2020 | |
Liquidity and Going Concern [Abstract] | |
Liquidity | Note 2. Liquidity The Company incurred a net loss of $1,310,698 and $1,083,366 during the six months ended June 30, 2020 and June 30, 2019, respectively. As of June 30, 2020, the Company had working capital of $23,320,992, primarily as a result of the net proceeds raised in the IPO of approximately $23,420,000 (see Note 5). The Company had working capital of $743,526 as of December 31, 2019. The Company has received funding in the form of periodic capital raises and also plans to apply for grant funding in the future to assist in supporting its capital needs. We may also explore the possibility of entering into commercial credit facilities as an additional source of liquidity. As of December 31, 2019, there was substantial doubt about the Company's ability to continue as a going concern in the absence of additional funding. We believe that our existing cash and cash equivalents as of June 30, 2020, resulting from the proceeds raised in the IPO, and our anticipated expenditures and capital commitments for the calendar year 2020 and the first half of calendar year 2021, will enable us to fund our operating expenses and capital expenditure requirements for at least 12 months from the date of this quarterly report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3. Summary of Significant Accounting Policies Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant areas of estimation include determining deferred tax asset valuation allowance and the inputs in determining the fair value of equity-based awards and warrants issued. Actual results could differ from those estimates. Risks and Uncertainties The Company operates in an industry that is subject to intense competition, government regulation and rapid technological change. Operations are subject to significant risk and uncertainties including financial, operational, technological, regulatory, and other risks, including the potential risk of business failure. The extent of the impact and effects of the recent outbreak of the coronavirus (COVID-19) on the operation and financial performance of the Company's business will depend on future developments, including the duration and spread of the outbreak, related travel advisories and restrictions, the recovery time of disrupted research services, the consequential staff shortages, and research and development delays, or the uncertainty with respect to the accessibility of additional liquidity or capital markets, all of which are highly uncertain and cannot be predicted. If the Company's operations are impacted by this outbreak for an extended period, the Company's results of operations or liquidity may be materially adversely affected. Deferred Offering Costs In conjunction with the Company's IPO, costs incurred related to the IPO were capitalized as deferred equity issuance costs in other non-current assets until the time of completion of the IPO. Upon completion of the IPO, these costs have been offset against proceeds received. Offering costs include direct and incremental costs related to the offering such as legal fees and related costs associated with the IPO. During the six months ended June 30, 2020, the Company classified deferred offering costs of $456,437 as a reduction to additional paid-in capital upon completion of the Company's IPO on June 15, 2020. As of December 31, 2019, the Company recorded deferred offering costs of $191,000 and as of June 30, 2020, there were no deferred offering costs recorded on the Company's condensed consolidated balance sheets. Research and Development Research and development costs are expensed as incurred. These expenses primarily consist of payroll, contractor expenses, supplies, and technical infrastructure on the cloud for the purposes of developing the Company's RADR platform and identifying, developing, and testing drug candidates. Development costs incurred by third parties are expensed as the work is performed. Costs to acquire technologies, including licenses, that are utilized in research and development and that have no alternative future use are expensed when incurred. Prepaid Expense Prepaid expense as of June 30, 2020 totaled approximately $71,000 and included approximately $9,000 of upfront contractor fees, $55,000 of licensing and other fees to AF Chemicals, LLC, and approximately $7,000 of annual insurance fees. Loan Pursuant to Paycheck Protection Program The Company received $108,500 in aggregate loan proceeds (the "PPP Loan") from JPMorgan Chase Bank (the "Lender") pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a loan application and payment agreement (the "PPP Loan Agreement") by and between the Company and the Lender. This amount is recorded as a loan payable on the Company's condensed consolidated balance sheet at June 30, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 4: Commitments and Contingencies BioNumerik Pharmaceuticals. In January 2018, the Company entered into an Assignment Agreement (the "Assignment Agreement") with BioNumerik Pharmaceuticals, Inc. ("BioNumerik"), pursuant to which the Company acquired rights to domestic and international patents, trademarks and related technology and data relating to LP-300 (Tavocept) for human therapeutic treatment indications. The Assignment Agreement replaced a License Agreement that was entered into between the Company and BioNumerik in May 2016. The Company made upfront payments totaling $25,000 in connection with entry into the Assignment Agreement. In the event the Company develops and commercializes LP-300 internally, the Company is required to pay to the BioNumerik-related payment recipients designated in the Assignment Agreement a percentage royalty in the low double digits on cumulative net revenue up to $100 million, with incremental increases in the percentage royalty for net cumulative revenue between $100 million and $250 million, $250 million and $500 million, and $500 million and $1 billion, with a percentage royalty payment that could exceed $200 million for net cumulative revenue in excess of $1 billion. The Company has the right to first recover certain designated portions of patent costs and development and regulatory costs before the payment of royalties described above. If the Company enters into a third party transaction for LP-300, the Company is required to pay the BioNumerik-related payment recipients a specified percentage of any upfront, milestone, and royalty amounts received by the Company from the transaction, after first recovering specified direct costs incurred by the Company for the development of LP-300 that are not otherwise reimbursed from such third party transaction. In addition, the Assignment Agreement provides that the Company will use commercially diligent efforts to develop LP-300 and make specified regulatory filings and pay specified development and regulatory costs related to LP-300. The Assignment Agreement also provides that the Company will provide TriviumVet DAC ("TriviumVet") with (i) specified data and information generated by the Company with respect to LP-300, and (ii) an exclusive license to use specified LP-300-related patent rights, trademark rights and related intellectual property to support LP-300 development in non-human (animal) treatment indications. The Company is also required to pay all patent costs on covered patents related to LP-300. These patent costs are fully recoverable at the time of any net revenue from LP-300, with up to 50% of net revenue amounts to be applied towards repayment of patent costs until such costs are fully recovered. In addition to the recovery of patent costs, the Company has the right to recover the $25,000 upfront payments made in connection with entry into the Assignment Agreement, which payments are recoverable prior to making any royalty or third party transaction sharing payments. The Company also has the right to recover previously incurred LP-300 development and regulatory costs, with up to a mid-single digit percentage of net revenue amounts to be applied towards repayment of development and regulatory costs until such costs are fully recovered. There is approximately $11,000 payable to BioNumerik as of June 30, 2020 and December 31, 2019. AF Chemicals. In January 2015, the Company entered into a Technology License Agreement to exclusively license domestic and international patent rights from AF Chemicals, LLC ("AF Chemicals") for the treatment of cancer in humans for the compounds LP-100 (Irofulven) and LP-184. In February 2016, the Company and AF Chemicals entered into an Addendum providing for additions and amendments to the Technology License Agreement. Pursuant to the Technology License Agreement and Addendum (collectively, the "AFC License Agreement") the Company is obligated to make annual licensing fee payments to AF Chemicals in the amount of $30,000 per year relating to LP-184. The Company paid $0 and $30,000 to AF Chemicals relating to the LP-184 annual fee during the three and six months ended June 30, 2020, $7,500 and $15,000 of which was expensed during the three and six months ended June 30, 2020, respectively. The Company paid $0 and $30,000 to AF Chemicals relating to the LP-184 annual fee during the three and six months ended June 30, 2019, $7,500 and $15,000 of which was expensed during the three and six months ended June 30, 2019, respectively. Such amounts are included in research and development expenses in the accompanying condensed consolidated statements of operations. In addition, the Company is obligated to make milestone payments to AF Chemicals at the time of an Investigational New Drug Application ("IND") filing relating to LP-184 and also upon reaching additional specified milestones in connection with the development and potential marketing approval of LP-184 in the United States, specified countries in Europe, and other countries. In the event of a sublicense of the LP-184 rights, the Company is obligated to pay AF Chemicals (a) a low double digit percentage of the gross income and fees received by the Company with respect to the United States in connection with such sublicense, and (b) a lower double digit percentage of the gross income and fees received by the Company with respect to Europe and Japan in connection with such sublicense. The AFC License Agreement also provides that the Company will pay AF Chemicals a royalty of at least a very small single digit percentage of specified net sales of LP-184 and other analogs. In addition, the AFC License Agreement contains specified time requirements for the Company to file an IND, enroll patients in clinical trials, and file a potential NDA with respect to LP-184, with the ability for the Company to pay AF Chemicals additional amounts ranging from $25,000 to $50,000 for each one, two, and three year extension to such development time requirements, with additional extensions beyond three years to be negotiated by the Company and AF Chemicals. During the three and six months ended June 30, 2020, the Company paid AF Chemicals $25,000 and $50,000, respectively, relating to the IND filing milestone extension fee for LP-184, $12,500 and $25,000 of which were expensed during the three and six months ended June 30, 2020, respectively, and included under research and development expenses in the accompanying condensed consolidated statements of operations. The Company paid AF Chemicals $37,500 during the year ended December 31, 2019 in connection with extension of the IND filing milestone for LP-184, none of which was paid during the three and six months ended June 30, 2019. Amounts of $9,375 and $18,750 were expensed during the three and six months ended June 30, 2019, respectively, related to this extension payment, and included under research and development expenses in the accompanying condensed consolidated statements of operations. The Company is also obligated to make annual licensing fee payments to AF Chemicals relating to LP-100 as described below under "Oncology Venture." Nothing was accrued or payable to AF Chemicals as of June 30, 2020 and December 31, 2019. Oncology Venture. In May 2015, the Company licensed various rights to LP-100 to Oncology Venture pursuant to a Drug License and Development Agreement. In February 2016, the Company and Oncology Venture entered into an addendum and an amendment providing for additions and amendments to the Drug License and Development Agreement. In connection with the Drug License and Development Agreement, as amended (collectively, the "OV License and Development Agreement"), Oncology Venture agreed to directly pay to AF Chemicals on behalf of the Company amounts owed to AF Chemicals with respect to LP-100 under the AFC License Agreement. Amounts paid by Oncology Venture to AF Chemicals on behalf of the Company are then deducted from amounts owed by Oncology Venture to the Company. The amounts owed to AF Chemicals with respect to LP-100 are in many ways similar to the amounts owed with respect to LP-184 as described above under "AF Chemicals". In the event any such amounts relating to LP-100 are not paid to AF Chemicals by Oncology Venture, the Company is obligated to pay such unpaid amounts. In addition to the payments to be made by Oncology Venture, the Company is obligated to make annual licensing fee payments to AF Chemicals in the amount of $30,000 per year relating to LP-100. The Company paid $0 and $30,000 to AF Chemicals relating to the LP-100 annual fee during the three and six months ended June 30, 2020, respectively, $7,500 and $15,000 of which was expensed during the three and six months ended June 30, 2020, respectively. The Company paid $0 and $30,000 to AF Chemicals relating to the LP-100 annual fee during the three and six months ended June 30, 2019, respectively, $7,500 and $15,000 of which was expensed during the three and six months ended June 30, 2019, respectively. Such amounts are included in research and development expenses in the accompanying condensed consolidated statements of operations. There is nothing accrued or payable related to the OV License and Development Agreement as of June 30, 2020 and December 31, 2019. EU Grant In September 2018, Lantern Pharma Limited, a wholly owned subsidiary of Lantern Pharma Inc., was awarded a grant by the UK government in the form of state aid under the Commission Regulations (EU) No. 651/2014 of 17 June 2014 (the "General Block Exemption"), Article 25 Aid for research and development projects, state aid notification no. SA.40154. The grant was awarded to conduct research and development activities for the prostate cancer biomarker analysis of the LP-184 drug candidate. Following the Company's research and development activities in Northern Ireland, the grant will reimburse the Company 50% of its research and development expenses not exceeding GBP 24,215 of vouched and approved expenditures within specific categories. The grant contains some reporting and consent requirements. The grant will remain in force for a period of five years. No payments to the Company have been made under the grant as of June 30, 2020 and December 31, 2019. No revenue has been recognized from this grant through June 30, 2020. Operating Lease The Company leased office space in Dallas, Texas under month-to-month lease arrangements during the six months ended June 30, 2020 and the year ended December 31, 2019. In August 2019, the Company entered into a leasing agreement for office space in New Jersey. Monthly rent is $2,106, plus electrical utilities and the lease expires on July 31, 2020. Public Company Director and Officer Liability Insurance In connection with becoming a public company, the Company obtained director and officer liability insurance at a premium cost of approximately $1,810,000, with approximately $104,000 of such insurance premiums expensed during the six months ended June 30, 2020, all of which is accrued as of June 30, 2020. The remaining balance of approximately $1,706,000 was included under other current asset and insurance payable on the Company's condensed consolidated balance sheet at June 30, 2020. |
Shareholders_ Equity
Shareholders’ Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 5. Shareholders' Equity Preferred Stock In March 2019, the Company sold 590,643 shares of Series A preferred stock for aggregate proceeds of approximately $1,850,000. The Company also issued 213,510 shares of Series A preferred stock in March 2019, in connection with the conversion of the Simple Agreement for Future Equity (SAFE) agreements. See Note 6. In connection with the sale and issuance of the Series A preferred stock in March 2019, the Company issued warrants to purchase an aggregate of 96,499 shares of Series A preferred stock at an initial exercise price of $3.13 per share. As of December 31, 2019, the Company had 3,480,000 authorized shares of preferred stock, of which 2,438,866 shares designated as Series A Preferred Stock were issued and outstanding. The holders of Series A Preferred Stock were entitled to receive dividends when, as and if declared by the Company's Board of Directors, payable in preference and priority to any declaration or payment of dividends on Common Stock. Effective January 15, 2020, as a result of the reincorporation in the state of Delaware, the par value of the Company's preferred stock was changed from $0.01 to $0.0001 per share, and all data on preferred stock was retroactively adjusted to be shown herein as reflective of this change Upon the Company's IPO, all shares of the Company's Series A preferred stock were converted into 2,438,851 shares of common stock effective June 15, 2020, with fractional share adjustments made in connection with the conversion as discussed below. As of June 30, 2020, the Company had 1,000,000 authorized share of preferred stock, with zero shares of preferred stock issued and outstanding. Common Stock On June 15, 2020, the Company received net proceeds of $23,419,721 in its IPO, after deducting underwriting discounts and commissions of $1,968,750 and other offering expenses of $861,529 borne by the Company. The Company issued and sold 1,750,000 shares of common stock in its IPO at a price of $15.00 per share. In connection with the IPO, all shares of the Company's Series A Preferred Stock were converted into 2,438,851 shares of common stock, after giving effect to the 1.74 for 1 forward stock split of the common stock and net of the fractional shares adjustments that occurred in connection with the IPO. The Company is to make payments of approximately $261 in the aggregate in connection with fractional shares resulting from the stock split and the conversion of the preferred stock that took place in connection with the IPO. During the three and six months ended June 30, 2020, the Company issued zero and 50,460 shares of common stock relating to the exercise of stock options. The shares were issued at a purchase price of $1.03 for total proceeds of $52,000. As of June 30, 2020, the Company had 25,000,000 authorized shares of Common Stock, of which 6,217,577 shares were issued and outstanding. As of December 31, 2019, the Company had 12,180,000 authorized shares of Common Stock, of which 1,978,269 shares were issued and outstanding. Warrants The Company had warrants to purchase 332,014 shares of common stock outstanding and exercisable as of June 30, 2020 at a weighted average exercise price of $6.42 per share. The Company had warrants to purchase 232,885 shares of Series A Preferred Stock outstanding and exercisable as of June 30, 2019 at a weighted average exercise price of $3.13 per share. In connection with the IPO and the conversion of the Series A Preferred Stock into common stock, all outstanding warrants to purchase Series A Preferred Stock converted into warrants to purchase common stock. In connection with the IPO, the Company granted the underwriters warrants (the "Underwriters' Warrants") to purchase an aggregate of 70,000 shares of common stock at an exercise price of $18.75 per share, which is 125% of the initial public offering price. The Underwriters' Warrants have a five-year term and are not exercisable prior to December 7, 2020. All of the Underwriters' Warrants were outstanding at June 30, 2020. In connection with the Series A Preferred Stock financing transactions discussed above, during the six months ended June 30, 2019, the Company issued warrants to purchase an aggregate of 96,498 shares of Series A Preferred Stock. Options The Company recorded stock-based compensation of approximately $124,000 and $22,000 related to stock options during the six months ended June 30, 2020 and 2019, respectively, and approximately $105,000 and $6,000 during the three months ended June 30, 2020 and 2019, respectively. These amounts are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The Company recorded approximately $87,000 in additional stock-based compensation during the three months ended June 30, 2020, resulting from the acceleration of the vesting conditions of stock options upon the closing of the IPO. A summary of stock option activity under the Lantern Pharma Inc. 2018 Equity Incentive Plan, as amended, (the "Plan") during the six months ended June 30, 2020 is presented below: Options Outstanding Number of Weighted-Average Outstanding December 31, 2019 607,491 $ 1.03 Granted 306,743 15.00 Exercised (50,460 ) 1.03 Cancelled or expired (43,166 ) 1.03 Outstanding June 30, 2020 820,608 $ 6.25 Options were exercisable for 508,966 shares of Common Stock at June 30, 2020. During the six months ended June 30, 2019, options to purchase 1,342 shares of Common Stock were granted, no options were exercised, and no options expired or were canceled. |
Safe Agreements
Safe Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Safe Agreements [Abstract] | |
SAFE Agreements | Note 6. SAFE Agreements In December 2018, the Company entered into SAFE agreements (the "SAFE Financing") with five investors pursuant to which the Company received funding of $535,000 in exchange for agreement to issue the investors shares of preferred stock upon occurrence of a subsequent financing of preferred stock. The number of shares to be received by the SAFE agreement investors was based on 80% of the pricing in the triggering equity financing. In a liquidity or dissolution event, the investors' right to receive cash out was junior to payment of outstanding indebtedness and creditor claims, on par for other SAFEs and preferred stock, and senior to common stock. The SAFE agreements had no interest rate or maturity date, and the SAFE investors had no voting right prior to conversion. The SAFE agreements were converted to equity in March 2019 and the Company issued 213,510 shares of Series A Preferred Stock in full satisfaction of these agreements. |
Notes and Loan Payable
Notes and Loan Payable | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes and Loan Payable | Note 7. Notes and Loan Payable In January 2020, the Company entered into a financing arrangement for commercial insurance with First Insurance Funding. The total amount financed was approximately $66,000 with an annual interest rate of 6.64%, to be paid over a period of ten months. In June 2020, the policy was canceled, and the remaining loan balance was satisfied. As of June 30, 2020, there is no remaining loan balance on the Company's condensed consolidated balance sheet related to the First Insurance financing arrangement. On May 1, 2020 (the "Origination Date"), the Company received $108,500 in aggregate loan proceeds (the "PPP Loan") from JPMorgan Chase Bank (the "Lender") pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a loan application and payment agreement (the "PPP Loan Agreement") by and between the Company and the Lender. Subject to the terms of the PPP Loan Agreement, the PPP Loan bears interest at a fixed rate of one percent (1.0%) per annum. Payments of principal and interest are deferred for the first six months following the Origination Date, and the PPP Loan will mature two years after the Origination Date. Following the deferral period, unless the loan is forgiven, the Company will be required to make payments of principal plus interest accrued under the PPP Loan to the Lender in monthly installments based upon an amortization schedule to be determined by the Lender based on the principal balance of the PPP Loan outstanding following the deferral period and taking into consideration any portion of the PPP Loan that may be forgiven prior to that time. The PPP Loan is unsecured and guaranteed by the U.S. Small Business Administration. During the three months ended June 30, 2020, the Company received approximately $103,000 in funding resulting from a loan that was funded incorrectly. The Company's return of the funds was hindered due to the lending institution's reduced staffing and delayed responsiveness as a result of the coronavirus (COVID-19) pandemic. All of the funds from the loan were returned by the Company in July 2020, and no loan funds were expended prior to the return. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8. Related Party Transactions The Company has from time to time obtained preclinical services from Biological Mimetics, Inc., which is also a stockholder in the Company. The Company recorded expenses of approximately $10,000 and $12,000 related to Biological Mimetics, Inc. during the three and six months ended June 30, 2019, all of which is included in research and development. No expenses related to Biological Mimetics, Inc. were recorded during the three and six months ended June 30, 2020. Approximately $2,000 was owed to Biological Mimetics, Inc. at December 31, 2019, all of which is included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet. Nothing was owed to Biological Mimetics at June 30, 2020. The Company has previously engaged Intuition Systems ("Intuition") to provide services relating to development of the Company's technology infrastructure and artificial intelligence platform, cloud computing, and computational biology. The chief executive officer of Intuition is the brother of Arun Asaithambi, the Company's former Chief Executive Officer, President and Director. No expenses were recorded related to Intuition Systems during the three and six months ended June 30, 2020 or during the three and six months ended June 30, 2019. At both June 30, 2020 and December 31, 2019, approximately $9,000 remained unpaid relating to Intuition and is included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet. In January 2018, the Company entered into an Assignment Agreement (the "Assignment Agreement") with BioNumerik Pharmaceuticals, Inc. ("BioNumerik"), pursuant to which the Company acquired rights to domestic and international patents, trademarks and related technology and data relating to LP-300 for human therapeutic treatment indications. Mr. Margrave, the Company's Chief Financial Officer and Secretary, formerly served as the President, Chief Administrative Officer, General Counsel and Secretary of BioNumerik and has a minority ownership interest in BioNumerik. The Company recorded no expense related to BioNumerik during the three and six months ended June 30, 2020 and June 30, 2019. Amounts payable to BioNumerik as of both June 30, 2020 and December 31, 2019 totaled approximately $11,000. |
Loss per Share of Common Shares
Loss per Share of Common Shares | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share of Common Shares | Note 9. Loss Per Share of Common Shares Basic loss per share is derived by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities, such as warrants and stock options, which would result in the issuance of incremental shares of common stock unless such effect is anti-dilutive. In calculating the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remained the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation. Potentially dilutive securities outstanding that have been excluded from diluted loss per share due to being anti-dilutive include the following: Outstanding at June 30, 2020 2019 Warrants to purchase Common Stock 332,014 - Warrants to purchase Series A Preferred stock - 232,885 Stock options 820,608 630,402 Series A preferred stock - 2,097,105 1,152,622 2,960,392 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events In July 2020, the Company returned approximately $103,000 in funding resulting from a loan that was funded incorrectly. All of the funds from the loan were returned by the Company and no loan funds were expended prior to the return. In July 2020, the Company entered into an agreement with Patheon API Services, Inc. ("Patheon") for the manufacture and supply of cGMP material to support the Company's planned Phase II clinical trial for its product candidate LP-300. In addition to producing LP-300 API (active pharmaceutical ingredient) under cGMP (current Good Manufacturing Practices) conditions, Patheon will transfer previously validated manufacturing processes and analytical methods for LP-300 and will produce non-GMP material that can be used to support non-clinical studies for LP-300. The agreement provides for payments in stages as specified process and manufacturing milestones are achieved. Patheon, a part of Thermo Fisher Scientific, has previously developed and/or manufactured more than 700 pharmaceuticals for biopharma clients and has more than 55 locations around the world, providing access to a fully integrated global network of facilities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant areas of estimation include determining deferred tax asset valuation allowance and the inputs in determining the fair value of equity-based awards and warrants issued. Actual results could differ from those estimates. |
Risks and Uncertainties | Risks and Uncertainties The Company operates in an industry that is subject to intense competition, government regulation and rapid technological change. Operations are subject to significant risk and uncertainties including financial, operational, technological, regulatory, and other risks, including the potential risk of business failure. The extent of the impact and effects of the recent outbreak of the coronavirus (COVID-19) on the operation and financial performance of the Company's business will depend on future developments, including the duration and spread of the outbreak, related travel advisories and restrictions, the recovery time of disrupted research services, the consequential staff shortages, and research and development delays, or the uncertainty with respect to the accessibility of additional liquidity or capital markets, all of which are highly uncertain and cannot be predicted. If the Company's operations are impacted by this outbreak for an extended period, the Company's results of operations or liquidity may be materially adversely affected. |
Deferred Offering Costs | Deferred Offering Costs In conjunction with the Company's IPO, costs incurred related to the IPO were capitalized as deferred equity issuance costs in other non-current assets until the time of completion of the IPO. Upon completion of the IPO, these costs have been offset against proceeds received. Offering costs include direct and incremental costs related to the offering such as legal fees and related costs associated with the IPO. During the six months ended June 30, 2020, the Company classified deferred offering costs of $456,437 as a reduction to additional paid-in capital upon completion of the Company's IPO on June 15, 2020. As of December 31, 2019, the Company recorded deferred offering costs of $191,000 and as of June 30, 2020, there were no deferred offering costs recorded on the Company's condensed consolidated balance sheets. |
Research and Development | Research and Development Research and development costs are expensed as incurred. These expenses primarily consist of payroll, contractor expenses, supplies, and technical infrastructure on the cloud for the purposes of developing the Company's RADR platform and identifying, developing, and testing drug candidates. Development costs incurred by third parties are expensed as the work is performed. Costs to acquire technologies, including licenses, that are utilized in research and development and that have no alternative future use are expensed when incurred. |
Prepaid Expense | Prepaid Expense Prepaid expense as of June 30, 2020 totaled approximately $71,000 and included approximately $9,000 of upfront contractor fees, $55,000 of licensing and other fees to AF Chemicals, LLC, and approximately $7,000 of annual insurance fees. |
Loan Pursuant to Paycheck Protection Program | Loan Pursuant to Paycheck Protection Program The Company received $108,500 in aggregate loan proceeds (the "PPP Loan") from JPMorgan Chase Bank (the "Lender") pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a loan application and payment agreement (the "PPP Loan Agreement") by and between the Company and the Lender. This amount is recorded as a loan payable on the Company's condensed consolidated balance sheet at June 30, 2020. |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of stock option activity | Options Outstanding Number of Weighted-Average Outstanding December 31, 2019 607,491 $ 1.03 Granted 306,743 15.00 Exercised (50,460 ) 1.03 Cancelled or expired (43,166 ) 1.03 Outstanding June 30, 2020 820,608 $ 6.25 |
Loss per Share of Common Shar_2
Loss per Share of Common Shares (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of diluted loss per share due to being anti-dilutive | Outstanding at June 30, 2020 2019 Warrants to purchase Common Stock 332,014 - Warrants to purchase Series A Preferred stock - 232,885 Stock options 820,608 630,402 Series A preferred stock - 2,097,105 1,152,622 2,960,392 |
Organization Principal Activi_2
Organization Principal Activities and Basis of Presentation (Details) - $ / shares | Jun. 30, 2020 | Jan. 15, 2020 | Dec. 31, 2019 |
Common stock, shares par value | $ 0.0001 | $ 0.0001 | |
Series A preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Minimum [Member] | |||
Common stock, shares par value | $ 0.01 | ||
Series A preferred stock, par value | 0.01 | ||
Maximum [Member] | |||
Common stock, shares par value | 0.0001 | ||
Series A preferred stock, par value | $ 0.0001 |
Liquidity (Details)
Liquidity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Liquidity (Textual) | |||||
Net loss | $ (833,422) | $ (629,393) | $ (1,310,698) | $ (1,083,366) | |
Working capital | 23,320,992 | 23,320,992 | |||
Net proceed | $ 23,420,000 | $ 23,420,000 | $ 743,526 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
May 01, 2020 | Jun. 30, 2020 | Jun. 15, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Textual) | ||||
Deferred offering costs | $ 191,000 | |||
Prepaid expense | 70,775 | $ 788 | ||
Annual patent license fees | 55,000 | |||
Annual insurance fees | 7,000 | |||
Contractor fees | 9,000 | |||
Aggregate loan proceeds | $ 108,500 | |||
PPP Loan [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Aggregate loan proceeds | $ 108,500 | |||
IPO [Member] | ||||
Summary of Significant Accounting Policies (Textual) | ||||
Deferred offering costs | $ 456,437 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jan. 31, 2018 | |
Commitments and Contingencies (Textual) | ||||||||
Commitments and contingencies, description | In connection with becoming a public company, the Company obtained director and officer liability insurance at a premium cost of approximately $1,810,000, with approximately $104,000 of such insurance premiums expensed during the six months ended June 30, 2020, all of which is accrued as of June 30, 2020. The remaining balance of approximately $1,706,000 was included under other current asset and insurance payable on the Company's condensed consolidated balance sheet at June 30, 2020. | |||||||
Operating Lease [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Lease term, description | The Company entered into a leasing agreement for office space in New Jersey. Monthly rent is $2,106, plus electrical utilities and the lease expires on July 31, 2020. | The Company leased office space in Dallas, Texas under month-to-month lease arrangements. | The Company leased office space in Dallas, Texas under month-to-month lease arrangements. | |||||
LP-184 [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Annual fees | $ 0 | $ 30,000 | ||||||
LP-100 [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Annual fees | $ 30,000 | |||||||
AF Chemicals [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Commitments and contingencies, description | The ability for the Company to pay AF Chemicals additional amounts ranging from $25,000 to $50,000 for each one, two, and three year extension to such development time requirements, with additional extensions beyond three years to be negotiated by the Company and AF Chemicals. During the three and six months ended June 30, 2020, the Company paid AF Chemicals $25,000 and $50,000, respectively, relating to the IND filing milestone extension fee for LP-184, $12,500 and $25,000 of which were expensed during the three and six months ended June 30, 2020, respectively, and included under research and development expenses in the accompanying condensed consolidated statements of operations. The Company paid AF Chemicals $37,500 during the year ended December 31, 2019 in connection with extension of the IND filing milestone for LP-184, none of which was paid during the three and six months ended June 30, 2019. Amounts of $9,375 and $18,750 were expensed during the three and six months ended June 30, 2019, respectively, related to this extension payment, and included under research and development expenses in the accompanying condensed consolidated statements of operations. | |||||||
AF Chemicals [Member] | LP-184 [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Annual fees | 0 | $ 0 | $ 30,000 | $ 30,000 | ||||
Expenses | 7,500 | 7,500 | 15,000 | 15,000 | ||||
AF Chemicals [Member] | LP-100 [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Annual fees | 0 | 0 | 30,000 | 30,000 | ||||
Expenses | 7,500 | $ 7,500 | 15,000 | $ 15,000 | ||||
EU Grant [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Research and development | 50.00% | |||||||
Research and development expenses not exceeding GBP | $ 24,215 | |||||||
Patents [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Upfront payments | 25,000 | $ 25,000 | ||||||
Net revenue, percentage | 50.00% | |||||||
BioNumerik Pharmaceuticals [Member] | ||||||||
Commitments and Contingencies (Textual) | ||||||||
Upfront payments | $ 25,000 | |||||||
Commitments and contingencies, description | In the event the Company develops and commercializes LP-300 internally, the Company is required to pay to the BioNumerik-related payment recipients designated in the Assignment Agreement a percentage royalty in the low double digits on cumulative net revenue up to $100 million, with incremental increases in the percentage royalty for net cumulative revenue between $100 million and $250 million, $250 million and $500 million, and $500 million and $1 billion, with a percentage royalty payment that could exceed $200 million for net cumulative revenue in excess of $1 billion. | |||||||
Amounts payable | $ 11,000 | $ 11,000 | $ 11,000 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - 2018 Equity Incentive Plan [Member] | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Number of Shares, Outstanding, Beginning | shares | 607,491 |
Number of Shares, Granted | shares | 306,743 |
Number of Shares, Exercised | shares | (50,460) |
Number of Shares, Cancelled or expired | shares | (43,166) |
Number of Shares, Outstanding, Ending | shares | 820,608 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning | $ / shares | $ 1.03 |
Weighted Average Exercise Price Per Share, Granted | $ / shares | 15 |
Weighted Average Exercise Price Per Share, Exercised | $ / shares | 1.03 |
Weighted Average Exercise Price Per Share, Cancelled or expired | $ / shares | 1.03 |
Weighted Average Exercise Price Per Share, Outstanding, Ending | $ / shares | $ 6.25 |
Shareholders_ Equity (Details T
Shareholders’ Equity (Details Textual) - USD ($) | Jun. 15, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 15, 2020 | Dec. 31, 2019 |
Shareholders’ Equity (Textual) | ||||||||
Warrants to purchase shares | 96,498 | |||||||
Preferred Stock, shares authorized | 1,000,000 | 1,000,000 | 3,480,000 | |||||
Preferred Stock, shares issued | 0 | 0 | 2,438,866 | |||||
Preferred Stock, shares outstanding | 0 | 0 | 2,438,866 | |||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares authorized | 25,000,000 | 25,000,000 | 12,180,000 | |||||
Common stock, shares issued | 6,217,577 | 6,217,577 | 1,978,269 | |||||
Common stock, shares outstanding | 6,217,577 | 6,217,577 | 1,978,269 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Stock based compensation | $ 105,000 | $ 6,000 | $ 124,000 | $ 22,000 | ||||
Additional stock based compensation | $ 87,000 | |||||||
Options exercisable | 508,966 | 508,966 | ||||||
Options to purchase were granted | 1,342 | |||||||
IPO [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Sale of shares | 1,750,000 | |||||||
Warrants to purchase shares | 12,180,000 | |||||||
Warrants exercise price | $ 18.75 | $ 18.75 | ||||||
Warrants to purchase percentage | 125.00% | |||||||
Preferred Stock, shares issued | 1,401,647 | |||||||
Price per share | $ 15 | |||||||
Total proceeds | $ 23,419,721 | |||||||
Converted into shares of common stock | 2,438,851 | |||||||
Underwriting discounts and commissions | $ 1,968,750 | |||||||
Other offering expenses | 861,529 | |||||||
Minimum [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Preferred stock, par value | $ 0.01 | |||||||
Common stock, par value | 0.01 | |||||||
Maximum [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Preferred stock, par value | 0.0001 | |||||||
Common stock, par value | 0.0001 | |||||||
Preferred Stock [Member] | Minimum [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Preferred stock, par value | 0.01 | |||||||
Preferred Stock [Member] | Maximum [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Preferred stock, par value | $ 0.0001 | |||||||
Common Stock [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Common stock issued relating to stock options | 50,460 | 50,460 | ||||||
Price per share | $ 1.03 | $ 1.03 | ||||||
Total proceeds | $ 52,000 | $ 52,000 | ||||||
Series A Preferred Stock [Member] | ||||||||
Shareholders’ Equity (Textual) | ||||||||
Sale of shares | 590,643 | |||||||
Aggregate proceeds | $ 261 | $ 1,850,000 | ||||||
Warrants to purchase shares | 96,499 | 332,014 | 232,885 | |||||
Warrants exercise price | $ 3.13 | $ 6.42 | $ 3.13 | $ 6.42 | $ 3.13 | |||
Preferred Stock, shares authorized | 3,480,000 | |||||||
Preferred Stock, shares issued | 213,510 | 2,438,866 | ||||||
Preferred Stock, shares outstanding | 2,438,866 | |||||||
Converted into shares of common stock | 2,438,851 | |||||||
Stockholders' equity stock split, description | After giving effect to a 1.74 for 1 forward stock split that occurred in connection with the IPO. |
Safe Agreements (Details)
Safe Agreements (Details) - shares | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Safe Agreements (Textual) | |||
Agreement, description | The Company entered into SAFE agreements (the “SAFE Financing”) with five investors pursuant to which the Company received funding of $535,000 in exchange for agreement to issue the investors shares of preferred stock upon occurrence of a subsequent financing of preferred stock. | ||
Triggering equity financing, percentage | 80.00% | ||
Series A Preferred Stock, shares issued | 0 | 2,438,866 | |
Series A Preferred Stock [Member] | |||
Safe Agreements (Textual) | |||
Series A Preferred Stock, shares issued | 2,438,866 | 213,510 |
Notes and Loan Payable (Details
Notes and Loan Payable (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
May 01, 2020 | Jan. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | |
Notes and Loan Payable (Textual) | ||||
Note Payable, description | The total amount financed was approximately $66,000 with an annual interest rate of 6.64%, to be paid over a period of ten months. | |||
Payable balance | $ 103,000 | |||
Proceeds from loan | $ 108,500 | |||
Received approximately | $ 103,000 | |||
PPP Loan [Member] | ||||
Notes and Loan Payable (Textual) | ||||
Proceeds from loan | $ 108,500 | |||
Interest rate | 1.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2020 | |
Biological Mimetics, Inc [Member] | ||||
Related Party Transactions (Textual) | ||||
Related party transactions expenses | $ 10,000 | $ 12,000 | ||
Amounts owed to related parties | $ 2,000 | |||
Intuition [Member] | ||||
Related Party Transactions (Textual) | ||||
Remaining unpaid expense | 9,000 | $ 9,000 | ||
BioNumerik [Member] | ||||
Related Party Transactions (Textual) | ||||
Amounts payable | $ 11,000 | $ 11,000 |
Loss per Share of Common Shar_3
Loss per Share of Common Shares (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Anti-diluted loss share | 1,152,622 | 2,960,392 |
Series A preferred stock [Member] | ||
Anti-diluted loss share | 2,097,105 | |
Warrants [Member] | ||
Anti-diluted loss share | 332,014 | |
Warrants [Member] | Series A preferred stock [Member] | ||
Anti-diluted loss share | 232,885 | |
Stock options [Member] | ||
Anti-diluted loss share | 820,608 | 630,402 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
Jul. 31, 2020USD ($) | |
Subsequent Event [Member] | |
Subsequent Events (Textual) | |
Loan balance | $ 103,000 |