Galectin Therapeutics Files Q2 2024 10-Q

TL;DR

GALECTIN THERAPEUTICS (GALT) FILED Q2 10-Q. FINANCIALS OUT.

AI Summary

Galectin Therapeutics Inc. filed its 10-Q for the period ending June 30, 2024, reporting on its financial condition and business operations. The company, formerly known as Pro Pharmaceuticals Inc., is based in Norcross, Georgia, and operates in the pharmaceutical preparations sector. Key financial data and operational updates for the second quarter of 2024 are detailed within this report.

Why It Matters

This filing provides investors and stakeholders with an update on Galectin Therapeutics' financial health and operational progress for the second quarter of 2024, crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Galectin Therapeutics faces inherent risks related to drug development, regulatory approvals, and market competition.

Key Numbers

• 20240630 — Period End Date (Financial reporting period)
• 20240813 — Filing Date (Date the report was submitted to the SEC)

Key Players & Entities

• GALECTIN THERAPEUTICS INC (company) — Filer
• PRO PHARMACEUTICALS INC (company) — Former company name
• NORCROSS, GA (location) — Business and mailing address
• 20240630 (date) — Period of report
• 20240813 (date) — Filing date

FAQ

Filing Documents

• ef20029692_10q.htm (10-Q) — 1167KB
• ef20029692_ex31-1.htm (EX-31.1) — 10KB
• ef20029692_ex31-2.htm (EX-31.2) — 11KB
• ef20029692_ex32-1.htm (EX-32.1) — 5KB
• ef20029692_ex32-2.htm (EX-32.2) — 5KB
• 0001140361-24-036937.txt ( ) — 5827KB
• galt-20240630.xsd (EX-101.SCH) — 43KB
• galt-20240630_cal.xml (EX-101.CAL) — 32KB
• galt-20240630_def.xml (EX-101.DEF) — 234KB
• galt-20240630_lab.xml (EX-101.LAB) — 564KB
• galt-20240630_pre.xml (EX-101.PRE) — 365KB
• ef20029692_10q_htm.xml (XML) — 822KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION PAGE ITEM 1. Unaudited Condensed Consolidated Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) for the Three and Six Months Ended June 30, 2024 and 2023 6 Notes to Unaudited Condensed Consolidated Financial Statements 8 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 24 ITEM 4.

Controls and Procedures

Controls and Procedures 25

— OTHER INFORMATION

PART II — OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 25 ITEM 1A.

Risk Factors

Risk Factors 25 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 ITEM 3. Defaults Upon Senior Securities 25 ITEM 4. Mine Safety Disclosures 25 ITEM 5. Other Information 25 ITEM 6. Exhibits 25

SIGNATURES

SIGNATURES 27 Index GALECTIN THERAPEUTICS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2024 December 31, 2023 (in thousands) ASSETS Current assets: Cash and cash equivalents $ 25,598 $ 25,660 Prepaid expenses and other current assets 1,689 2,050 Total current assets 27,287 27,710 Other assets 368 490 Total assets $ 27,655 $ 28,200 LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable $ 3,698 $ 6,431 Accrued expenses and other 10,856 9,182 Accrued dividends payable 63 63 Total current liabilities 14,617 15,676 Convertible notes payable and accrued interest, net of discounts – related party (Note 3) 31,375 30,902 Derivative liabilities (Note 4) 1,764 1,004 Borrowing and accrued interest under convertible line of credit, net of debt discount – related party (Notes 9 and 10) 62,046 40,839 Other liabilities — 20 Total liabilities 109,802 88,441 Commitments and contingencies (Note 11) Series C super dividend redeemable convertible preferred stock; 1,000 shares authorized, 176 shares issued and outstanding at June 30, 2024 and December 31, 2023 , redemption value: $ 8,124,000 , liquidation value: $ 1,760,000 at June 30, 2024 1,723 1,723 Stockholders' equity (deficit): Undesignated stock, $ 0.01 par value; 20,000,000 shares authorized, 20,000,000 designated at June 30, 2024 and December 31, 2023 respectively — — Series A 12% convertible preferred stock; 1,742,500 shares authorized, 1,235,000 issued and outstanding at June 30, 2024 and December 31, 2023 , liquidation value $ 1,235,000 at June 30, 2024 500 500 Common stock, $ 0.001 par value; 150,000,000 shares authorized at June 30, 2024 and December 31, 2023 , 62,278,125 and 61,852,914 issued and outstanding at June 30, 2024 and December 31, 2023 , respectively 62 61 Additional paid-in capital 293,872 291,847

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 1. Basis of Presentation, Liquidity and Going Concern Galectin Therapeutics Inc. and subsidiaries (the "Company") is a clinical stage biopharmaceutical company that is applying its leadership in galectin science and drug development to create new therapies for fibrotic disease and cancer. These candidates are based on the Company's targeting of galectin proteins which are key mediators of biologic and pathologic function. These compounds also may have application for drugs to treat other diseases and chronic health conditions. The unaudited condensed consolidated financial statements as reported in this Quarterly Report on Form 10-Q reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company as of June 30, 2024 and the results of its operations for the three and six months ended June 30, 2024 and 2023 and its cash flows for the six months ended June 30, 2024 and 2023. All adjustments made to the interim financial statements include all those of a normal and recurring nature. Amounts presented in the condensed consolidated balance sheet as of December 31, 2023 are derived from the Company's audited consolidated financial statements as of that date, but do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date these financial statements are available to be issued. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. The unaudited condensed consolidated financial statemen

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