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Leap Therapeutics Q4 net income $1.5 million due to decrease in the fair value

Christian Fernsby |
Leap Therapeutics reported financial results for the fourth quarter and year ended December 31, 2018.

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Net loss was $23.1 million for the year ended December 31, 2018, compared to $29.7 million for the year ended December 31, 2017.

This decrease was primarily due to a noncash charge to decrease the fair value of the warrant liability.

Net income was $1.5 million for the fourth quarter of 2018, compared to a net loss of $6.6 million for the same period in 2017.

The 2018 increase was due to the decrease in the fair value of the warrant liability in the fourth quarter, leading to a $11 million non-cash gain.

The requirement to revalue the warrant liability each quarter has resulted in the Company's net income or net loss being highly variable.

Research and development expenses were $21.8 million for the full year 2018, compared to $22.5 million for the same period in 2017.

This decrease was primarily due to reduced manufacturing expenses of our clinical product candidates and a decrease in stock based compensation expense offset by increased clinical trial costs due to increased patient enrollment.

Research and development expenses were $6.9 million for the fourth quarter of 2018, compared to $4.4 million for the same period in 2017.

This increase was due to increased clinical development expense associated with the start-up operations and enrollment of our ongoing clinical trials.

General and administrative expenses were $8.9 million for the full year 2018, compared to $9.8 million for the same period in 2017.

This decrease was due to a decrease in stock based compensation expense.

General and administrative expenses were $2.1 million for the fourth quarter of 2017, compared to $2.1 million for the same period in 2017.

Cash, cash equivalents and marketable securities totaled $16.3 million at December 31, 2018.

Research and development incentive receivables totaled $0.8 million.

Subsequent to the financial year end, Leap completed a public offering of $13.225 million of common stock and warrants, resulting in net cash proceeds of $12.1 million.

Leap believes that its current cash and the expected receipt of research and development tax incentives will be sufficient to fund its operating expenses into the second quarter of 2020.


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