Full Press Release Details
Allarity Therapeutics
Reports First Quarter 2022 Financial Results
Cambridge, MA U.S.A. (May 27, 2022) -
Allarity Therapeutics, Inc. ("Allarity" or the "Company"), a clinical-stage pharmaceutical company developing
novel oncology therapeutics together with drug-specific DRP companion diagnostics for personalized cancer care, today
reported financial results for the first quarter ended March 31, 2022.
First Quarter Financial Results
Balance Sheet: As of March 31, 2022, Allarity's
cash was $14.5 million, as compared to $19.6 million as of December 31, 2021.
R&D Expenses: Research and Development
(R&D) expenses were $1.3 million for the three months ended March 31, 2022, compared to $1.3 million for the quarter ended March 31,
Impairment of Intangible Assets: Impairment
of Intangible Assets was $14.0 million for the three months ended March 31, 2022, compared to nil for the quarter ended March 31, 2021.
G&A Expenses: General and Administrative
(G&A) expenses were $3.0 million for the three months ended March 31, 2022, as compared to $1.2 million for the three months ended
Net Loss: Net loss was $3.1 million for
the three months ended March 31, 2022, compared to $3.1 million for the comparable period in 2021.
About Allarity Therapeutics
Allarity Therapeutics, Inc. (Nasdaq: ALLR) develops
drugs for personalized treatment of cancer guided by its proprietary and highly validated companion diagnostic technology, the DRP
platform. The Company has a mature portfolio of five drug candidates: stenoparib, a PARP inhibitor in Phase 2 development for ovarian
cancer; dovitinib, a post-Phase 3 pan-tyrosine kinase inhibitor; IXEMPRA (Ixabepilone), a microtubule inhibitor approved
in the U.S. for the treatment of second-line metastatic breast cancer and in Phase 2 development in Europe for the same indication; and
2X-111, a liposomal formulation of doxorubicin in Phase 2 development for metastatic breast cancer and/or glioblastoma multiforme (GBM),
which is the subject of discussions for a restructured out-license to Smerud Medical Research International AS. LiPlaCis ,
a liposomal formulation of cisplatin and its accompanying DRP is being developed via a partnership with Chosa ApS, an
affiliate of Smerud Medical Research International, for late-stage metastatic breast cancer. The Company is headquartered in the United
States and maintains an R&D facility in Hoersholm, Denmark. For more information, please visit the Company's website at www.Allarity.com
Allarity Therapeutics, Inc.
| 210 Broadway, #201 | Cambridge, MA | U.S.A.
| NASDAQ: ALLR | www.allarity.com
About the Drug Response Predictor - DRP
Companion Diagnostic
Allarity uses its drug-specific DRP
to select those patients who, by the genetic signature of their cancer, are found to have a high likelihood of responding to the specific
drug. By screening patients before treatment, and only treating those patients with a sufficiently high DRP score, the
therapeutic response rate can be significantly increased. The DRP method builds on the comparison of sensitive vs. resistant
human cancer cell lines, including transcriptomic information from cell lines combined with clinical tumor biology filters and prior clinical
trial outcomes. DRP is based on messenger RNA from patient biopsies. The DRP platform has proven its ability
to provide a statistically significant prediction of the clinical outcome from drug treatment in cancer patients in 37 out of 47 clinical
studies that were examined (both retrospective and prospective), including ongoing, prospective Phase 2 trials of Stenoparib and IXEMPRA .
The DRP platform, which can be used in all cancer types and is patented for more than 70 anti-cancer drugs, has been extensively
published in peer reviewed literature.
Follow Allarity on Social Media
Facebook: https://www.facebook.com/AllarityTx/
Twitter: https://twitter.com/allaritytx
Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide Allarity's
current expectations or forecasts of future events. The words "anticipates," "believe," "continue,"
"could," "estimate," "expect," "intends," "may," "might," "plan,"
"possible," "potential," "predicts," "project," "should," "would"
and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not
forward-looking. These forward-looking statements include, but are not limited to, all statements under the heading "Anticipated
Milestones in 2022," statements relating to the Company's NDA submission for dovitinib and its PMA submission for the drug-specific
DRP companion diagnostic for dovitinib, any statements related to ongoing clinical trials for stenoparib for the treatment
of advanced ovarian cancer, or ongoing clinical trials (in Europe) for IXEMPRA for the treatment of metastatic breast
cancer, and statements relating to the effectiveness of the Company's DRP companion diagnostics platform in predicting
whether a particular patient is likely to respond to a specific drug. Any forward-looking statements in this press release are based on
management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual
results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties
include, but are not limited to, the risk that results of a clinical study do not necessarily predict final results and that one
or more of the clinical outcomes may materially change following more comprehensive reviews of the data, and as more patient data become
available, the risk that results of a clinical study are subject to interpretation and additional analyses may be needed and/or may contradict
such results, the receipt of regulatory approval for dovitinib or any of our other therapeutic candidates or, if approved, the successful
commercialization of such products, the risk of cessation or delay of any of the ongoing or planned clinical trials and/or our development
of our product candidates, the risk that the results of previously conducted studies will not be repeated or observed in ongoing or future
studies involving our therapeutic candidates, and the risk that the current COVID-19 pandemic will impact the Company's current
and future clinical trials and the timing of the Company's preclinical studies and other operations. For a discussion of other risks
and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking
statements, see the section entitled "Risk Factors" in our Form 10-K for the year ended December 31, 2021 filed today
with the Securities and Exchange Commission, available at the Securities and Exchange Commission's website at www.sec.gov,
and as well as discussions of potential risks, uncertainties and other important factors in the Company's subsequent filings with
the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company undertakes
no duty to update this information unless required by law.
Allarity Therapeutics, Inc.
| 210 Broadway, #201 | Cambridge, MA | U.S.A.
| NASDAQ: ALLR | www.allarity.com
ALLARITY THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2022 $ | December 31, 2021 $ | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | 14,544 | 19,555 | ||||||
| Other current assets | 147 | 625 | ||||||
| Prepaid expenses | 1,249 | 36 | ||||||
| Tax credit receivable | 1,271 | 838 | ||||||
| Total current assets | 17,211 | 21,054 | ||||||
| Investment in Lantern Pharma Inc. stock | 314 | 350 | ||||||
| Property, plant and equipment, net | 6 | 8 | ||||||
| Operating lease right of use assets | 65 | 86 | ||||||
| Intangible assets, net | 13,694 | 28,135 | ||||||
| Total assets | 31,290 | 49,633 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 5,799 | 698 | ||||||
| Accrued liabilities | 1,342 | 8,590 | ||||||
| Warrant liability | 3,081 | 11,273 | ||||||
| Derivative liabilities | 2,265 | - | ||||||
| Income taxes payable | 52 | 60 | ||||||
| Operating lease liabilities, current | 82 | 98 | ||||||
| Total current liabilities | 12,711 | 20,719 | ||||||
| Convertible promissory note and accrued interest, net | 1,005 | 979 | ||||||
| Derivative liabilities | - | 7,181 | ||||||
| Operating lease liabilities, noncurrent | - | 9 | ||||||
| Deferred tax | 700 | 1,961 | ||||||
| Total liabilities | 14,416 | 30,849 | ||||||
| Redeemable convertible preferred stock | ||||||||
| Series A Convertible Preferred stock | 2,142 | 632 | ||||||
| Stockholders' equity | ||||||||
| Common stock | 885 | 810 | ||||||
| Additional paid-in capital | 84,233 | 84,434 | ||||||
| Accumulated other comprehensive (loss) | (814 | ) | (600 | ) | ||||
| Accumulated deficit | (69,572 | ) | (66,492 | ) | ||||
| Total stockholders' equity | 14,732 | 18,152 | ||||||
| Total liabilities, redeemable convertible preferred stock & stockholders' equity | 31,290 | 49,633 |
Allarity Therapeutics, Inc.
| 210 Broadway, #201 | Cambridge, MA | U.S.A.
| NASDAQ: ALLR | www.allarity.com
ALLARITY THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
| Three months ended March 31, | ||||||||
| 2022$ | 2021$ | |||||||
| Operating expenses: | ||||||||
| Research and development | 1,289 | 1,185 | ||||||
| Impairment of intangible assets | 14,007 | - | ||||||
| General and administrative | 3,013 | 1,277 | ||||||
| Total operating expenses | 18,309 | 2,462 | ||||||
| Loss from operations | (18,309 | ) | (2,462 | ) | ||||
| Other income (expense), net | 14,002 | (590 | ) | |||||
| Net loss for the period before tax benefit (expense) | (4,307 | ) | (3,052 | ) | ||||
| Income tax benefit (expense) | 1,227 | (33 | ) | |||||
| Net loss | (3,080 | ) | (3,085 | ) | ||||
| Deemed 8% dividend on Preferred Stock | (1,572 | - | ||||||
| Net loss attributable to common stockholders | (4,652 | ) | (3,085 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.56 | ) | $ | (0.68 | ) | ||
| Weighted-average number of common shares outstanding, basic and diluted | 8,288,371 | 4,533,430 |
Allarity Therapeutics, Inc.
| 210 Broadway, #201 | Cambridge, MA | U.S.A.
| NASDAQ: ALLR | www.allarity.com
Chief Financial Officer
Carrotize PR & Communications
Allarity Therapeutics, Inc.
| 210 Broadway, #201 | Cambridge, MA | U.S.A.
| NASDAQ: ALLR | www.allarity.com