{"url_path":"/sec/ltrn/10-q/2026/item-2","section_key":"item-2","section_title":"Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1763950/0001493152-26-023740-index.html","accession_number":"0001493152-26-023740","cik":"0001763950","ticker":"LTRN","issuer_name":"Lantern Pharma Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1763950/0001493152-26-023740-index.html","primary_entity_key":"0001763950","primary_entity_name":"Lantern Pharma Inc."},"word_count":4820,"has_tables":true,"body_markdown":"**Item\n2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.**\n\n \n\n*You\nshould read the following discussion and analysis of our financial condition and plan of operations together with our condensed consolidated\nfinancial statements and the related notes appearing elsewhere in this Quarterly Report. In addition to historical information, this\ndiscussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may\ndiffer materially from the plans, intentions, expectations and other forward-looking statements included in the discussion below. Factors\nthat could cause or contribute to such differences include, but are not limited to, those identified below, and those factors discussed\nin the Risk Factors section of our 2025 Form 10-K on file with the SEC.*\n\n \n\n**Overview**\n\n \n\nWe\nare an artificial intelligence (A.I.) focused company dedicated to developing cancer therapies and transforming the cost, pace, and timeline\nof oncology drug discovery and development. Our development portfolio includes three clinical stage oncology focused product candidates\nand consists of small molecules that others have tried, but failed, to develop into an approved commercialized drug, as well as new compounds\nthat we are developing with the assistance of our proprietary A.I. platform and our biomarker driven approach. Our A.I. platform, known\nas RADR®, currently includes more than 200 billion data points, and uses big data analytics (combining molecular data,\ndrug efficacy data, data from historical studies, data from scientific literature, phenotypic data from trials and publications, and\nmechanistic pathway data) and machine learning to rapidly uncover biologically relevant genomic signatures correlated to drug response,\nand then identify the cancer patients that we believe may benefit most from our compounds. This data-driven, genomically-targeted and\nbiomarker-driven approach allows us to pursue a transformational drug development strategy that identifies, rescues or develops, and\nadvances potential small molecule drug candidates at what we believe is a fraction of the time and cost associated with traditional cancer\ndrug development.\n\n \n\nWe\nhave active clinical programs for our three lead small molecule drug candidates: LP-300, LP-184, and LP-284. These programs are focused\non multiple important cancer indications, including both solid tumors and blood cancers. We have established a wholly-owned subsidiary,\nStarlight Therapeutics, to focus exclusively on the clinical development of our promising opportunities for central nervous system (“CNS”)\nand brain cancers, many of which have no effective treatment options. We are also advancing an antibody-drug conjugate (“ADC”)\nprogram focused on developing highly specific ADCs with highly potent drug-payloads.\n\n \n\nIn\nJanuary 2026, we introduced withZeta.ai — a generative AI platform purpose-built to empower researchers and clinicians to accelerate\nrare cancer research and drug development, dramatically improve research quality, and reduce R&D costs. withZeta’s multi-agentic\narchitecture combines intelligent orchestration using a combination of proprietary knowledge bases and publicly available data with autonomous\ntask completion to deliver a true “co-scientist” experience — one that brings the collective insight of thousands of\ndomain experts, millions of publications, and billions of data points to address some of oncology’s most difficult challenges and\ndisease subtypes.\n\n \n\nOn May 13, 2026, we announced\nplans to create an independent business entity composed of the AI platform, withZeta.ai, and related technologies and personnel under\nthe leadership of our CEO Mr. Panna Sharma. We intend to separate the withZeta.ai assets and technologies into an independent business\nentity in order to access dedicated funding sources and potentially realize valuation multiples separate from our primary drug development\noperations, which such entity we anticipate will become a newly listed company on a national stock exchange or market.\n\n \n\nOur\nstrategy is to both develop new drug candidates using our RADR® platform, and other machine learning driven methodologies,\nand to pursue the development of drug candidates that have undergone previous clinical trial testing or that may have been halted in\ndevelopment or deprioritized because of insufficient clinical trial efficacy (i.e., a meaningful treatment benefit relevant for the disease\nor condition under study as measured against the comparator treatment used in the relevant clinical testing) or for strategic reasons\nby the owner or development team responsible for the compound. Importantly, these historical drug candidates appear to have been well-tolerated\nin many instances, and often have considerable data from previous toxicity, tolerability and ADME (absorption, distribution, metabolism,\nand excretion) studies that have been completed. Additionally, these drug candidates may also have a body of existing data supporting\nthe potential mechanism(s) by which they achieve their intended biologic effect, but often require more targeted trials in a stratified\ngroup of patients to demonstrate statistically meaningful results. Our dual approach to both develop de-novo, biomarker-guided drug candidates\nand “rescue” historical drug-candidates by leveraging A.I., recent advances in genomics, computational biology and cloud\ncomputing is emblematic of a new era in drug development that is being driven by data-intensive approaches meant to de-risk development\nand accelerate the clinical trial process. In this context, we intend to create a diverse portfolio of oncology drug candidates for further\ndevelopment towards regulatory and marketing approval with the objective of establishing a leading A.I.-driven methodology for treating\nthe right patient with the right oncology therapy.\n\n \n\nA\nkey component of our strategy is to target specific cancer patient populations and treatment indications identified by leveraging our\nRADR® platform, a proprietary A.I. enabled engine created and owned by us. We believe the combination of our therapeutic\narea expertise, our A.I. expertise, and our ability to identify and develop promising drug candidates through our collaborative relationships\nwith research institutions in selected areas of oncology gives us a significant competitive advantage. Our RADR® platform\nhas been developed and refined over the last several years and integrates billions of data points immediately relevant for oncology drug\ndevelopment and patient response prediction using artificial intelligence and proprietary machine learning algorithms. By identifying\nclinical candidates, together with relevant genomic and phenotypic data, we believe our approach will help us design more efficient pre-clinical\nstudies, and more targeted clinical trials, thereby accelerating our drug candidates’ time to approval and eventually to market.\nAlthough we have not yet applied for or received regulatory or marketing approval for any of our drug candidates, we believe our RADR®\nplatform has the ability to reduce the cost and time to bring drug candidates to specifically targeted patient groups. We believe we\nhave developed a sustainable and scalable biopharma business model by combining a unique, oncology-focused big-data platform that leverages\nartificial intelligence along with active clinical and preclinical programs that are being advanced in targeted cancer therapeutic areas\nto address today’s treatment needs.\n\n \n\n17\n\n \n\n \n\nOur\ncurrent portfolio consists of three lead drug candidates that are in clinical phases (known as LP-300, LP-184 and LP-284) and an Antibody\nDrug Conjugate (ADC) program that is in preclinical research optimization. In January 2023, we formed a wholly owned subsidiary, Starlight\nTherapeutics Inc. (“Starlight”), to develop drug candidate LP-184’s central nervous system (CNS) and brain cancer indications\n– including glioblastoma (GBM), brain metastases (brain mets.), and several rare pediatric CNS cancers. Following the formation\nof Starlight, we may also refer to the molecule LP-184, as it is developed in CNS indications, as “STAR-001”. All of these\ndrug candidates and our ADC program are leveraging precision oncology, A.I. and genomic driven approaches to accelerate and direct development\nefforts.\n\n \n\nWe\nare conducting a targeted phase 2 trial (the Harmonic™ trial) for LP-300 in never smoking patients with NSCLC in combination\nwith chemotherapy, under an existing investigational new drug application. Based on the successful outcome in May 2026 from a Type C\nmeeting request with the FDA focused on the LP-300 Harmonic™ clinical trial, we have determined to focus future\nHarmonic™ enrollment on patients with the EGFR exon 21 L858R mutation, a subtype of tyrosine kinase mutations that\ndemonstrates lower sensitivity and inferior treatment outcome to osimertinib based therapy. Preliminary analysis of Harmonic™\nstudy data suggests that patients with this mutation may derive greater clinical benefit from the LP-300 triplet regimen. Our\ncandidate LP-184 has shown promising in-vitro and in vivo anticancer activity in multiple solid tumor indications (including triple\nnegative breast, lung, bladder, glioblastoma and pancreatic cancer), and enrollment has been completed in a Phase 1a clinical trial\nfor LP-184. Based on the results and insights from the LP-184 Phase 1a clinical trial, we are advancing and optimizing development\nplans for multiple future LP-184 clinical studies. Our candidate LP-284 has shown promising in-vitro and in vivo anticancer activity\nin multiple hematological cancers, which are distinct from the indications targeted by LP-184. LP-284 is currently in a Phase 1A\nclinical trial.\n\n \n\nOur\nADC program has also continued to advance. During 2024 and 2025, we continued to apply our RADR® A.I. platform to advance\nand refine an A.I. powered module focused on improving the precision, cost and timelines of ADC development for cancer. In 2023, we entered\ninto a research collaboration with Bielefeld University in Germany focused on development of ADCs utilizing cryptophycin as the ADC drug-payload.\nCryptophycins are promising antitumor molecules that have demonstrated potency at ultra-low, picomolar, concentrations. In a broad range\nof preclinical studies, the cryptophycin-ADC synthesized as part of the Bielefeld collaboration demonstrated promising picomolar level\npotency and anti-tumor activity in multiple solid tumor cell lines, including breast, bladder, colorectal, gastric, pancreatic and ovarian.\n\n \n\nIn\naddition to our lead drug candidates and ADC program, we also have an additional drug candidate, LP-100, that we believe has potential\nfor future development in combination with the class of anticancer agents known as PARP inhibitors (PARPi). For LP-100, as well as our\nlead drug candidate LP-300, we have leveraged data from prior preclinical studies and clinical trials, along with insights generated\nfrom our A.I. platform, to target the types of tumors and patient groups we believe will be most responsive to the drug. Both LP-100\nand LP-300 showed promise in important patient subgroups, but failed pivotal Phase 3 trials when the overall results did not meet the\npredefined clinical endpoints. We believe that this was due to a lack of biomarker-driven patient stratification.\n\n \n\nLP-300\nhas been studied in multiple randomized, controlled, multi-center non-small cell lung cancer, or NSCLC, trials that included administration\nof either paclitaxel and cisplatin and/or docetaxel and cisplatin. LP-100 has previously been in a genomic signature guided phase 2 clinical\ntrial in Denmark for patients with metastatic castration resistant prostate cancer (mCRPC). 9 patients (out of a targeted enrollment\nof 27) were treated in the trial. The median overall survival (OS) for the initial group of 9 patients was approximately 12.5 months,\nwhich is an improvement over other similar fourth-line treatment regimens for mCRPC. Based on our evaluation of the synergies of LP-100\nwith PARP inhibitors, the decision was made in the first quarter of 2023 to close the phase 2 clinical trial in Denmark, to allow the\nfocus of LP-100-directed resources on positioning the molecule for development in earlier lines of therapy with potentially larger market\nopportunities. LP-100 was previously out-licensed by us to Allarity Therapeutics A/S. In July 2021, we entered into an Asset Purchase\nAgreement to reacquire global development and commercialization rights for LP-100 from Allarity.\n\n \n\nOur\ndevelopment strategy is to pursue an increasing number of oncology focused, molecularly targeted therapies where artificial intelligence\nand genomic data can help us provide biological insights, reduce the risk associated with development efforts and help clarify potential\npatient response. We plan on strategically evaluating these on a program-by-program basis as they advance into clinical development,\neither to be done entirely by us, or with licensing partners, to maximize the commercial opportunity and reduce the time it takes to\nbring the right drug to the right patient.\n\n \n\nTo\ndate, except for a prior research grant, we have not generated any revenue, we have incurred net losses and our operations have been\nfinanced primarily by sales of our equity securities. Our net losses were approximately $3,329,000 and $4,537,000 for the three months\nended March 31, 2026 and 2025, respectively.\n\n \n\nOur\nnet losses have primarily resulted from costs incurred in licensing and developing the drug candidates in our pipeline, planning, preparing\nand conducting preclinical studies and clinical testing, and general and administrative activities associated with our operations. We\nexpect to continue to incur significant expenses and corresponding operating losses for the foreseeable future as we continue to advance\nour pipeline. Our costs may further increase as we conduct additional preclinical studies and clinical trials and potentially seek regulatory\nclearance for and prepare to commercialize our drug candidates. We expect to incur significant expenses to continue to build the infrastructure\nnecessary to support our operations, preclinical studies, clinical trials, and potential commercialization, including manufacturing,\nmarketing, sales and distribution functions. We have experienced and will continue to experience substantial costs associated with operating\nas a public company.\n\n \n\n18\n\n \n\n \n\n**Components\nof Our Results of Operations**\n\n \n\n**Revenues**\n\n \n\nWe\ndid not recognize revenues for the three-month periods ended March 31, 2026 and 2025.\n\n \n\n**Research\nand Development**\n\n** **\n\nResearch\nand development expenses consist primarily of costs incurred for the research and development of our preclinical and clinical candidates,\nwhich include:\n\n \n\n \n●\nexpenses\nincurred towards research and development employees, consultants, outside contractors, laboratories, clinical sites, and investigators\nthat conduct our preclinical or clinical research activities; and\n\n \n \n \n\n \n●\nthe\ncost of acquiring and developing preclinical and clinical study materials and lab supplies, including manufacturing costs related\nto our drug candidates.\n\n \n\nWe\nexpense research and development costs to operations as incurred.\n\n \n\nOur\nresearch and development expenses by project category for the three months ended March 31, 2026 and 2025 are as follows:\n\n \n\n  \nThree Months  \nThree Months \n\n  \n\n**Ended**\n\n**March 31, 2026**\n  \n\n**Ended**\n\n**March 31, 2025**\n \n\nLP-300 \n$683,289  \n$1,007,908 \n\nLP-184 \n 548,914  \n 1,361,464 \n\nLP-284 \n 219,943  \n 456,471 \n\nRADR® Platform  \n 209,470  \n 253,579 \n\nOther * \n 63,256  \n 184,533 \n\nTotal research and development expenses \n$1,724,872  \n$3,263,955 \n\n \n\n*\nLP-100 and ADC Program expenses are included in “Other.”\n\n \n\nWe\nexpect that our research and development expenses will fluctuate from quarter to quarter and year to year. We expect that our research\nand development expenses will increase substantially over time based on the progress of our clinical trials for LP-300, LP-184 and LP-284,\nand other programs and drug candidates. We expect to make substantial expenditures associated with research and service provider agreements\nfor the advancement of our drug candidates and research and development efforts.\n\n \n\nBecause\nof the numerous risks and uncertainties associated with product development, we cannot determine with certainty the duration and completion\ncosts 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\nin achieving regulatory approval for LP-300, LP-184, LP-284 or any of our other drug candidates. The duration, costs and timing of clinical\ntrials and development of our drug candidates will depend on a variety of factors, including the uncertainties of future clinical and\npreclinical studies, uncertainties in clinical trial enrollment rates, significant and changing government regulation, and geopolitical\nrisk, including in Taiwan where we are pursuing clinical testing of LP-300. In addition, the probability of success for each drug candidate\nwill depend on numerous factors, including competition, manufacturing capability and commercial viability.\n\n \n\n**General\nand Administrative**\n\n \n\nGeneral\nand administrative expenses consist primarily of salaries and related costs for employees in executive, finance and administration, corporate\ndevelopment and administrative support functions, including stock-based compensation expenses and benefits. Other significant general\nand administrative expenses include accounting and legal services, insurance, the cost of various consultants, investor relations, occupancy\ncosts, and information systems costs.\n\n \n\nWe\nexpect fluctuating and increased administrative costs resulting from our existing and anticipated clinical trials and the potential commercialization\nof our drug candidates. We believe that these increases will likely include future increased costs for hiring additional administrative\npersonnel to support future market research and future product commercialization efforts and increased fees for outside consultants,\nattorneys and accountants.\n\n \n\n19\n\n \n\n \n\n**Summary\nResults of Operations for the Three Months Ended March 31, 2026 and 2025 (unaudited)**\n\n \n\n  \nThree Months Ended \n\n  \nMarch 31, \n\n  \n2026  \n2025 \n\nOperating expenses: \n    \n   \n\nGeneral and administrative \n$1,680,375  \n$1,510,077 \n\nResearch and development \n 1,724,872  \n 3,263,955 \n\nTotal operating expenses \n 3,405,247  \n 4,774,032 \n\nLoss from operations \n (3,405,247) \n (4,774,032)\n\nInterest income \n 42,160  \n 149,790 \n\nOther income, net \n 33,916  \n 87,459 \n\nNET LOSS \n$(3,329,171) \n$(4,536,783)\n\n \n\n**Comparison\nof the Three Months Ended March 31, 2026 and 2025**\n\n \n\n**General\nand Administrative Expenses**\n\n \n\nGeneral\nand administrative expenses increased approximately $170,000, or 11%, from approximately $1,510,000 for the three months ended March\n31, 2025 to approximately $1,680,000 for the three months ended March 31, 2026. The increase was primarily attributable to increases\nin patent costs of approximately $99,000, increases in salaries and benefit expenses of approximately $71,000, and increases in business\ndevelopment and investor relations expenditures of approximately $36,000. These increases were partially offset by decreases in travel\nexpenses of approximately $16,000 and rent of approximately $15,000.\n\n \n\n**Research\nand Development Expenses**\n\n \n\nResearch\nand development expenses decreased approximately $1,539,000, or 47%, from approximately $3,264,000 for the three months ended March 31,\n2025 to approximately $1,725,000 for the three months ended March 31, 2026. The decrease was attributable to reductions in research studies\nand materials costs of approximately $1,322,000 relating to the conduct and support of our clinical trials, and decreases in salaries\nand benefit expenses of approximately $246,000. These decreases were partially offset by increases in consulting expenses of approximately\n$16,000 and increases in licensing fees of approximately $12,000.\n\n \n\n**Interest\nand Other Income, Net**\n\n \n\nInterest\nincome decreased approximately $108,000, or 72%, from approximately $150,000 for the three months ended March 31, 2025 to approximately\n$42,000 for the three months ended March 31, 2026. This decrease was primarily due to reductions in the amount of marketable securities\nheld by us during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. Other income, net decreased\napproximately $53,000, or 61%, from approximately $87,000 for the three months ended March 31, 2025 to approximately $34,000 for the\nthree months ended March 31, 2026. This decrease was primarily attributable to reductions in dividend income and other investment income\nof $23,000 and $90,000, respectively. These declines in other income, net, were offset, in part by an increase in foreign currency gains\nof approximately $60,000 during the three months ended March 31, 2026.\n\n \n\n20\n\n \n\n****\n\n \n\n**Cash\nFlows**\n\n \n\nThe\nfollowing table summarizes our cash flow for the periods indicated:\n\n \n\n  \n\n**For the Three Months**\n\n**Ended March 31,**\n \n\n  \n2026  \n2025 \n\n  \n(Unaudited) \n\nNet cash flows used in operating activities \n$(3,772,627) \n$(4,375,610)\n\nNet cash flows provided by investing activities \n 4,250,000  \n 3,239,331 \n\nEffect of foreign exchange rates on cash \n 17,585  \n 2,802 \n\nNet increase (decrease) in cash and cash equivalents \n$494,958  \n$(1,133,477)\n\n \n\n**Operating\nActivities**\n\n \n\nFor\nthe three months ended March 31, 2026, net cash used in operating activities was approximately $3,773,000 compared to approximately $4,376,000\nfor the three months ended March 31, 2025. The primary cause of the reduction in cash used is a decrease in net loss of approximately\n$1,208,000 during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025. This reduction in cash\nused was offset, in part, by larger decreases in accounts payable and accrued expenses during the three months ended March 31, 2026 as\ncompared to the three months ended March 31, 2025.\n\n \n\n**Investing\nActivities**\n\n \n\nFor\nthe three months ended March 31, 2026, net cash provided by investing activities was approximately $4,250,000 compared to approximately\n$3,239,000 of net cash provided by investing activities for the three months ended March 31, 2025. The increase in cash provided by investing\nactivities is due to an increase in net redemptions of investments in marketable securities during the three months ended March 31, 2026,\nas compared to the three months ended March 31, 2025.\n\n \n\n**Operating\nCapital and Capital Expenditure Requirements**\n\n \n\nAs\nof March 31, 2026, we had total assets of approximately $7.2 million and working capital of approximately $3.3 million. As of March 31,\n2026, our liquidity included approximately $6.3 million of cash, cash equivalents and marketable securities. We plan to pursue periodic\ncapital raises and also plan to apply for grant funding in the future to assist in supporting our capital needs. In July 2025, we entered\ninto the ATM with ThinkEquity, as sales agent, pursuant to which we may offer and sell shares of our common stock from time to time,\nin “at-the-market” offerings to or through our sales agent. No sales were made under the ATM during the three months ended\nMarch 31, 2026.\n\n \n\nOn\nMay 12, 2026, we entered into a securities purchase agreement (the “Purchase Agreement”) with institutional investors,\npursuant to which we agreed to issue and sell to such investors in a registered direct offering (i) 1,454,175 shares common stock of\nthe Company, at an offering price of $2.06 per share, and (ii) pre-funded warrants to purchase up to 681,748 shares of common stock\n(the “Pre-Funded Warrants”) in lieu of the Common Shares, at an offering price of $2.0599 (such registered direct\noffering, the “Offering”). The Offering closed on May 14, 2026, and we received gross proceeds of approximately $4.4\nmillion from the Offering, before deducting Offering expenses payable by us, including the fees of the placement agent for the\nOffering. In addition, in a concurrent private placement, we agreed to issue to such investors warrants to purchase up to 2,135,923\nshares of common stock, at an exercise price of $2.27 per share. We may also explore the possibility of additional manners of\noffering our equity securities and entering into commercial credit facilities as an additional source of liquidity.\n\n \n\nWe\nbelieve that our cash, cash equivalents, and marketable securities on hand as of the date of this report, including the net proceeds\nfrom the Offering of shares of common stock and Pre-Funded Warrants, will enable us to fund our operating expenses and capital expenditure requirements until approximately the\nmiddle of the first quarter of 2027. We will need substantial additional capital to fund our operations beyond that time period, and\nif we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our drug development programs or\ncommercialization efforts.\n\n \n\nOur\nability to continue as a going concern is highly contingent on the ability to raise additional capital for ongoing research and development\nand clinical trials as we expect to continue incurring losses for the foreseeable future. The financial statements in this report have\nbeen prepared assuming that we will continue as a going concern, and do not include any adjustments that may be necessary should we be\nunable to continue as a going concern. We have incurred, and anticipate that we will continue to incur, losses and generate negative\noperating cash flows and as such will require substantial additional funding in the near future to continue our research and development\nactivities. These factors raise substantial doubt about our ability to continue as a going concern in the absence of obtaining substantial\nadditional funding. While we plan to pursue periodic capital raises, including additional potential sales under the ATM, no assurance\ncan be given that sufficient funding will be available when needed to allow us to continue as a going concern.\n\n \n\nWe\nexpect to incur significant, fluctuating and often increasing operating losses at least for the next several years as we continue\nour clinical development of LP-300, LP-184 and LP-284, pursue development of our other drug candidates and programs, and seek\npotential future marketing approval for our drug candidates, which could be several years in the future, if at all. We do not expect\nto generate revenue, other than anticipated revenue from withZeta.ai and possible license and grant revenue, unless and until we\nsuccessfully complete development and obtain regulatory approval for our therapeutic candidates. Our net losses may fluctuate\nsignificantly from quarter-to-quarter and year-to-year, depending on the timing of our existing and planned clinical trials and our\nexpenditures on other research and development activities.\n\n \n\n21\n\n \n\n \n\nWe\nhave based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all of our\navailable capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with research, development\nand commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating capital requirements. We\nanticipate that our expenses will increase substantially as we:\n\n \n\n \n●\ncontinue\nthe development, including preclinical studies and clinical trials, of our drug candidates;\n\n \n \n \n\n \n●\ninitiate\npreclinical studies and clinical trials for any additional indications for our current drug candidates and any future drug candidates\nthat we may pursue;\n\n \n \n \n\n \n●\ncontinue\nto build our portfolio of drug candidates through the acquisition or in-license of additional drug candidates or technologies;\n\n \n \n \n\n \n●\ncontinue\nto develop, maintain, expand and protect our intellectual property portfolio;\n\n \n \n \n\n \n●\npursue\nregulatory approvals for those of our current and future drug candidates that successfully complete clinical trials;\n\n \n \n \n\n \n●\nultimately\nestablish a sales, marketing, distribution and other commercial infrastructure to commercialize any drug candidate for which we may\nobtain marketing approval;\n\n \n \n \n\n \n●\nhire\nadditional clinical, regulatory, scientific and accounting personnel;\n\n \n \n \n\n \n●\nincur\nadditional legal, accounting and other expenses in operating as a public company; and\n\n \n \n \n\n \n●\ncontinue\nto develop, maintain, and expand our RADR® platform and AI and machine learning technologies.\n\n \n\nWe\nexpect that we will need to obtain substantial additional funding in order to complete our clinical trials. To the extent that we raise\nadditional capital through the sale of common stock, convertible securities or other equity securities, the ownership interests of our\nexisting stockholders may be materially diluted and the terms of these securities could include liquidation or other preferences that\ncould adversely affect the rights of our existing stockholders. In addition, debt financing, if available, would result in increased\nfixed payment obligations and may involve agreements that include restrictive covenants that limit our ability to take specific actions,\nsuch as incurring additional debt, making capital expenditures or declaring dividends, that could adversely impact our ability to conduct\nour business. If we are unable to raise capital when needed or on attractive terms, we could be forced to significantly delay, scale\nback or discontinue the development or commercialization of LP-300, LP-184, LP-284, and/or other drug candidates and programs, seek collaborators\nat an earlier stage than otherwise would be desirable or on terms that are less favorable than might otherwise be available, and relinquish\nor license, potentially on unfavorable terms, our rights to LP-300, LP-184, LP-284, and/or other drug candidates and programs that we\notherwise would seek to develop or commercialize ourselves.\n\n \n\n**Critical\nAccounting Estimates**\n\n \n\nThere\nhave been no changes to our critical accounting estimates during the three months ended March 31, 2026.\n\n \n\n**Quantitative\nand Qualitative Disclosure About Market Risk**\n\n \n\nOur\nprimary exposure to market risk is interest rate sensitivity, which is affected by changes in the general level of U.S. interest rates.\nFixed rate securities may have their market value adversely affected due to a rise in interest\nrates. Accordingly, our future investment income may fluctuate as a result of changes in interest rates, or we may suffer losses in principal\nif we are forced to sell securities that decline in market value as a result of changes in interest rates.\n\n \n\nHistorically,\nwe have raised capital through the issuance of equity securities. We had no long-term debt outstanding as of March 31, 2026 and December\n31, 2025.\n\n \n\n22\n\n \n\n \n\nWe\ndo not believe that our cash and cash equivalents have significant risk of default or illiquidity. Our\ncash and cash equivalents consist primarily of cash, U.S. treasury bills and money market funds. Our exposure to market risk relating\nto cash and cash equivalents due to changes in interest rates is limited because our cash and cash equivalents have a short-term maturity\nand are used primarily for working capital purposes. While we believe our cash, cash equivalents and marketable securities do\nnot contain excessive risk, we cannot provide absolute assurance that in the future our investments will not be subject to adverse changes\nin market value. In addition, we maintain significant amounts of cash and cash equivalents at one or more financial institutions from\ntime to time may be in excess of federally insured limits. Interest bearing and non-interest bearing accounts we hold at banking institutions\nare guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. From time to time, some of our cash\nbalances held at banking institutions may be in excess of FDIC coverage. We consider this to be a normal business risk.\n\n \n\nWe\nformed a wholly owned subsidiary, Lantern Pharma Australia Pty Ltd, in Australia in September 2021 and experienced foreign currency gains\nof approximately $77,000 and $17,000 for the three months ended March 31, 2026 and 2025, respectively, in connection with this subsidiary.\nWe will remain subject to the risk of foreign currency losses in future periods, although we do not expect the impact of any foreign\ncurrency losses to be material. We do not participate in any foreign currency hedging activities, and we do not have any other derivative\nfinancial instruments.\n\n \n\nInflation\ngenerally affects us by increasing our cost of labor and clinical trial costs. We do not believe that inflation has had a material effect\non our results of operations during the periods presented. Inflation could have a greater impact on our future results of operations\nif it remains at current levels or increases."}