Oncotelic Therapeutics, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Oncotelic Therapeutics, Inc. has filed its Q1 2024 10-Q report, detailing financial activities and corporate information.</b>

AI Summary

Oncotelic Therapeutics, Inc. (OTLC) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. Oncotelic Therapeutics, Inc. filed a 10-Q report for the quarter ended March 31, 2024. The company was formerly known as MATEON THERAPEUTICS INC and OXIGENE INC. The filing covers the period from January 1, 2024, to March 31, 2024. Key dates include the filing date of May 15, 2024, and the period end date of March 31, 2024. The company's business address is 29397 AGOURA RD. #107, AGUORA HILLS, CA 91301.

Why It Matters

For investors and stakeholders tracking Oncotelic Therapeutics, Inc., this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Oncotelic Therapeutics, Inc. for the first quarter of 2024. Understanding the details within this 10-Q is crucial for assessing the company's current financial health, strategic direction, and potential risks moving forward.

Risk Assessment

Risk Level: medium — Oncotelic Therapeutics, Inc. shows moderate risk based on this filing. The company's financial performance and operational status are detailed in this 10-Q, but specific financial figures like revenue, net income, or significant cash burn are not immediately available in the provided header data, necessitating a deeper review of the full document.

Analyst Insight

Review the full 10-Q filing to analyze Oncotelic Therapeutics' detailed financial statements, including revenue, expenses, and cash flow, to understand its current financial health and operational progress.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-15 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (REPORTING PERIOD START DATE)
• 2023-03-31 — Prior Year Quarter End Date (PRIOR YEAR PERIOD END DATE)

Key Players & Entities

• Oncotelic Therapeutics, Inc. (company) — FILER
• MATEON THERAPEUTICS INC (company) — FORMER COMPANY
• OXIGENE INC (company) — FORMER COMPANY
• AGUORA HILLS (location) — CITY
• CA (location) — STATE
• 2024-05-15 (date) — FILED AS OF DATE
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-01-01 (date) — REPORTING PERIOD START DATE

FAQ

Key Dates

• 2024-05-15: 10-Q Filing — Filing of the quarterly report for the period ending March 31, 2024.
• 2024-03-31: Quarter End Date — End of the reporting period for the Q1 2024 10-Q.
• 2024-01-01: Quarter Start Date — Beginning of the reporting period for the Q1 2024 10-Q.

Filing Documents

• form10-q.htm (10-Q) — 1380KB
• ex31-1.htm (EX-31.1) — 20KB
• ex31-2.htm (EX-31.2) — 20KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-24-019332.txt (&nbsp;) — 7708KB
• otlc-20240331.xsd (EX-101.SCH) — 63KB
• otlc-20240331_cal.xml (EX-101.CAL) — 46KB
• otlc-20240331_def.xml (EX-101.DEF) — 308KB
• otlc-20240331_lab.xml (EX-101.LAB) — 426KB
• otlc-20240331_pre.xml (EX-101.PRE) — 382KB
• form10-q_htm.xml (XML) — 1256KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 ITEM 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 4 Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to 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 37 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 48 ITEM 4.

Controls and Procedures

Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION 50 ITEM 1.

Legal Proceedings

Legal Proceedings 50 ITEM 1A.

Risk Factors

Risk Factors 50 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 50 ITEM 3. Defaults Upon Senior Securities 50 ITEM 4. Mine Safety Disclosures 50 ITEM 5. Other Information 50 ITEM 6. Exhibits, Financial Statement Schedules 50

SIGNATURES

SIGNATURES 53 2 PART I – FINANCIAL INFORMATION Item 1. Financial Statements ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 2024 2023 ASSETS Current assets: Cash $ 188,989 $ 170,405 Restricted cash 20,000 $ 20,000 Accounts receivable 18,976 18,976 Prepaid & other current assets 3,230 62,356 Total current assets 231,195 271,737 In process R&D 1,101,760 1,101,760 Goodwill, net of impairment 5,988,230 5,988,230 Investment in GMP Bio at fair vlue 22,653,225 22,653,225 Total assets $ 29,974,410 $ 30,014,952 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 2,440,807 $ 2,437,321 Accounts payable to related party 344,526 344,099 Contingent consideration 2,625,000 2,625,000 Derivative liability on Notes 420,738 423,214 Convertible and short-term debt, net of costs 7,814,517 8,066,957 Convertible debt and short-term debt, related party, net of costs 2,866,659 2,608,356 Convertible debt and short-term debt, net of costs 2,866,659 2,608,356 Total current liabilities 16,512,247 16,504,947 Convertible long-term debt, net of costs 2,087,773 1,773,468 Convertible long-term debt, net of costs - related party 125,000 125,000 Convertible long-term debt, net of costs 125,000 125,000 Total non-current liabilities 2,212,773 1,898,468 Total liabilities 18,725,020 18,403,415 Commitments and contingencies (Note 13) - - Stockholders' equity: Convertible preferred stock, $ 0.01 par value, 15,000,000 shares authorized; 0 shares issued and outstanding - - Common stock, $ .01 par value; 750,000,000 shares authorized; 399,684,128 and 399,184,128 issued and outstanding, respectively 3,996,839 3,991,839 Additional paid-in capital 41,763,054 41,655,026 Accumulated deficit ( 33,925,412 ) ( 33,516,736 ) Total Oncotelic Therapeutics, Inc. stockholders' eq

Financial Statements

Financial Statements. Equity Purchase Agreement In May 2021, the Company entered into an Equity Purchase Agreement (the " EPL ") and Registration Rights Agreement (the " Registration Rights Agreement ") with Peak One Opportunity Fund, L.P. (" Peak One "), pursuant to which the Company shall have the right, but not the obligation, to direct Peak One to purchase up to $ 10.0 million (the " Maximum Commitment Amount ") in shares of the common stock, par value $ 0.01 per share (" Common Stock ") in multiple tranches. The Company filed a post-effective amendment for the EPL on April 12, 2024 with the SEC and the SEC has made the post-effective amendment effective on April 22, 2024. The Company filed a prospectus under rule 424b3 with the SEC on April 26, 2024. For more information on the EPL, refer to Note 10 of the Notes to the Unaudited Consolidated Financial Statements. August 2021 Notes In August 2021, the Company issued Note Purchase Agreements with Autotelic Inc., the Company's Chief Financial Officer (" CFO "), and certain other accredited investors. Under the terms of the Note Purchase Agreements, the Company issued an aggregate of $ 698,500 (the " Principal Amount ") in debt in the form of unsecured convertible promissory notes (collectively, the "Notes" ). The Notes are unsecured, and provide for interest at the rate of 5 % per annum. Such Notes were issued against some of the short-term debt due as of June 30, 2021. For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated

Financial Statements

Financial Statements. November/December 2021 and March Notes In November / December 2021, the Company entered into various Securities Purchase Agreements with Talos Victory Fund, LLC (the ("Talos"), Mast Hill Fund, LP ("Mast"), FirstFire Global Opportunities Fund, LLC ("FirstFire"), Blue Lake Partners, LLC ("Blue Lake") and Fourth Man, LLC ("Fourth Man"), pursuant to which the Company issued convertible promissory notes in the aggregate principal amount of $ 0.25 million each, aggregating gross $ 1.25 million (the "Notes"), and which Notes were convertible into shares of the Company's common stock, par value $ 0.01 per share ("Common Stock"). In June 2022, Mast fully converted their November 2021 Note, for which the company issued 4,025,000 shares of Common Stock. Further, during the year ended December 31, 2023, the Company fully converted the balance of Fourth Man convertible note of approximately $ 127,000 into 1,820,395 shares of the Company's common stock, which fully retired the convertible note as of March 31, 2024. 9 In March 2022, the Company entered into a Securities Purchase Agreement with Fourth Man, pursuant to which the Company issued convertible promissory note in the aggregate principal amount of $ 0.25 million, which Note is convertible into shares of the Company's Common Stock. As of March 31, 2024, this note is in default and available for conversion into the Company's Common Stock due to cross default provision contained in November / December 2021 Notes. During the three months ended March 31, 2024, Fourth Man converted a portion of the March 2022 debt, including interest, and conversion fee, of approximately $ 35,000 for 500,000 shares of the Company's Common Stock. For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements. May 2022 Note In May 2022, the Company entered into a Securities Purchase Agreement with Mast, pursuant to which the Company issued conver

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View this 10-Q filing on SEC EDGAR