Aptose Biosciences Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Aptose Biosciences Inc. has filed its 2023 annual report detailing its business operations and financial standing.</b>

AI Summary

Aptose Biosciences Inc. (APTOF) filed a Annual Report (10-K) with the SEC on March 26, 2024. Aptose Biosciences Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The company was formerly known as LORUS THERAPEUTICS INC. and IMUTEC PHARMA INC. Aptose Biosciences Inc. is in the business of Biological Products (No Diagnostic Substances). The company's business address is 251 CONSUMERS ROAD, SUITE 1105, TORONTO, A6, M2J 4R3. The filing date for this report was March 26, 2024.

Why It Matters

For investors and stakeholders tracking Aptose Biosciences Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Aptose Biosciences' financial health, operational activities, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's performance and future prospects. Understanding the company's historical name changes (LORUS THERAPEUTICS INC., IMUTEC PHARMA INC.) and its SIC code (2836 - Biological Products) helps contextualize its evolution and industry focus within the biotechnology sector.

Risk Assessment

Risk Level: medium — Aptose Biosciences Inc. shows moderate risk based on this filing. The company operates in the highly regulated and competitive biotechnology sector, facing risks related to clinical trial success, regulatory approvals, and market adoption of its products.

Analyst Insight

Investors should review the detailed risk factors and financial statements within the 10-K to understand the specific challenges and opportunities facing Aptose Biosciences.

Key Numbers

• 20231231 — Fiscal Year End (Report period)
• 20240326 — Filing Date (Date of submission)
• 2836 — SIC Code (Biological Products (No Diagnostic Substances))
• 001-32001 — SEC File Number (SEC registration number)

Key Players & Entities

• Aptose Biosciences Inc. (company) — Filer name
• LORUS THERAPEUTICS INC. (company) — Former company name
• IMUTEC PHARMA INC (company) — Former company name
• 2836 (dollar_amount) — Standard Industrial Classification code
• 20231231 (date) — Fiscal year end
• 20240326 (date) — Filing date
• 251 CONSUMERS ROAD (address) — Business street address
• TORONTO (location) — Business address city

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-26: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the core financial and operational data for Aptose Biosciences Inc. for the fiscal year 2023.)

SIC Code

Standard Industrial Classification code, a four-digit code used by U.S. government agencies to classify businesses by industry. (Identifies Aptose Biosciences Inc. as being in the 'Biological Products (No Diagnostic Substances)' industry.)

Key Financial Figures

• $3 billion — ed, can reach annual sales greater than $3 billion by 2035 because we believe tuspetinib c
• $12.5 m — s. Hanmi received an upfront payment of $12.5 million, including $5 million in cash and
• $5 million — ont payment of $12.5 million, including $5 million in cash and $7.5 million in Common Shar
• $7.5 million — llion, including $5 million in cash and $7.5 million in Common Shares. Hanmi will also recei
• $407.5 million — n Shares. Hanmi will also receive up to $407.5 million in future milestone payments contingent

Filing Documents

• apto-20231231.htm (10-K) — 2008KB
• apto-ex21_1.htm (EX-21.1) — 5KB
• apto-ex23_1.htm (EX-23.1) — 10KB
• apto-ex31_1.htm (EX-31.1) — 12KB
• apto-ex31_2.htm (EX-31.2) — 13KB
• apto-ex32_1.htm (EX-32.1) — 6KB
• apto-ex32_2.htm (EX-32.2) — 6KB
• apto-ex97_1.htm (EX-97.1) — 45KB
• img210773660_0.jpg (GRAPHIC) — 4KB
• img238830913_0.jpg (GRAPHIC) — 68KB
• img238830913_1.jpg (GRAPHIC) — 8KB
• img238830913_2.jpg (GRAPHIC) — 4KB
• 0000950170-24-036537.txt (&nbsp;) — 8731KB
• apto-20231231.xsd (EX-101.SCH) — 1219KB
• apto-20231231_htm.xml (XML) — 1455KB

BUSINESS

ITEM 1. BUSINESS 2

RISK FACTORS

ITEM 1A. RISK FACTORS 18

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 38

CYBERSECURITY

ITEM 1C. CYBERSECURITY 39

PROPERTIES

ITEM 2. PROPERTIES 40

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 40

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 40 PART II. 41

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 41

RESERVED

ITEM 6. RESERVED 41

- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 42

QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK 58

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 58

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 58

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 58

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 59

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 59 PART III. 60

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 60

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 60

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 60

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AN DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AN DIRECTOR INDEPENDENCE 60

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 60 PART IV. 61

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 61

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 63 i This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. For more information, see "Part I. Item 1. Business — Cautionary Note Regarding Forward-Looking Statements." As used in this report, the terms "Aptose," "Aptose Biosciences," the "Company," "we," "us," "our" and similar references refer to Aptose Biosciences Inc. (formerly known as Lorus Therapeutics Inc.) and our consolidated subsidiaries, and the term "Common Shares" refers to our common shares, no par value. Aptose had historically qualified as a "foreign private issuer" for purposes of reporting under the Exchange Act, and filing registration statements under the Securities Act of 1933, as amended. Effective December 31, 2018, however, Aptose ceased qualifying as a foreign private issuer and began filing reports with the United States Securities and Exchange Commission ("SEC") as a "domestic issuer." As a result, Aptose changed the accounting standards by which it prepares its financial statements from International Financial Reporting Standards to generally accepted accounting principles in the United States, or "U.S. GAAP." All financial statements contained in this Annual Report are presented in accordance with U.S. GAAP. This report contains the following trademark, trade name and service mark of ours: Aptose. This report also contains trademarks, trade names and service marks that are owned by other persons or entities. PART I.

Business

Item 1. Business Overview Aptose Biosciences Inc. is a science-driven, clinical-stage biotechnology company committed to precision medicines addressing unmet clinical needs in oncology, with an initial focus on hematology. The Company's small molecule cancer therapeutics pipeline includes products designed to provide single agent efficacy and to enhance the efficacy of other anti-cancer therapies and regimens without overlapping toxicities. The Company's executive office is located in San Diego, California. Our Programs We are advancing oral targeted agents to treat life-threatening hematologic cancers that require immediate treatment. We have two clinical-stage oral kinase inhibitors under active development for the treatment of hematologic malignancies: tuspetinib (HM43239) and luxeptinib (CG-806). Tuspetinib and luxeptinib are being evaluated for safety, tolerability, pharmacokinetics and efficacy in Phase 1/2 clinical trials, and each molecule is described below. A third molecule (APTO-253) is not undergoing active clinical development and will not be discussed further. Tuspetinib, Aptose's lead asset, is being developed for frontline combination therapy in newly diagnosed AML patients to unlock the most significant patient impact and greatest commercial opportunity. Tuspetinib is a once-daily oral kinase inhibitor, targeting a select group of kinases operative in myeloid malignancies, such as acute myeloid leukemia ("AML") and the higher risk myelodysplastic syndromes ("hr-MDS"), and known to be involved in tumor proliferation, resistance to therapy, and differentiation. However, tuspetinib avoids kinases that typically cause toxicities associated with other kinase inhibitors and is consequently a well-tolerated antileukemic agent. The clinical development path for triplet combination therapy in newly diagnosed AML patients with tuspetinib-based triplet combination therapy (tuspetinib + the BCL-2 inhibitor venetoclax + hypomethylating agent; TUS+VEN+H

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