Oncotelic Therapeutics Files 10-Q for Q2 2024

TL;DR

Oncotelic Therapeutics filed its Q2 2024 10-Q. Check financials.

AI Summary

Oncotelic Therapeutics, Inc. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as Mateon Therapeutics Inc. and Oxigene Inc., is based in Agoura Hills, CA. Financial details and specific business operations for the quarter are not detailed in this header information.

Why It Matters

This filing provides an update on Oncotelic Therapeutics' financial status and operations for the second quarter of 2024, which is crucial for investors to assess the company's performance and outlook.

Risk Assessment

Risk Level: medium — As a biotechnology company, Oncotelic Therapeutics faces inherent risks related to drug development, regulatory approvals, and market competition, which are typical for the sector.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which the report is filed.)
• 20240814 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Oncotelic Therapeutics, Inc. (company) — Filer of the 10-Q
• Mateon Therapeutics Inc. (company) — Former company name
• Oxigene Inc. (company) — Former company name
• 20240630 (date) — End of reporting period
• 20240814 (date) — Filing date

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1432KB
• ex31-1.htm (EX-31.1) — 21KB
• ex31-2.htm (EX-31.2) — 21KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-24-031995.txt ( ) — 7670KB
• otlc-20240630.xsd (EX-101.SCH) — 61KB
• otlc-20240630_cal.xml (EX-101.CAL) — 46KB
• otlc-20240630_def.xml (EX-101.DEF) — 298KB
• otlc-20240630_lab.xml (EX-101.LAB) — 425KB
• otlc-20240630_pre.xml (EX-101.PRE) — 370KB
• form10-q_htm.xml (XML) — 1242KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3 ITEM 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 4 Consolidated Statements of Changes in Stockholders' Equity for the Three Months and Six Months Ended June 30, 2024 and 2023 5 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 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 36 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 49 ITEM 4.

Controls and Procedures

Controls and Procedures 49

OTHER INFORMATION

PART II. OTHER INFORMATION 51 ITEM 1.

Legal Proceedings

Legal Proceedings 51 ITEM 1A.

Risk Factors

Risk Factors 51 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 51 ITEM 3. Defaults Upon Senior Securities 51 ITEM 4. Mine Safety Disclosures 51 ITEM 5. Other Information 52 ITEM 6. Exhibits, Financial Statement Schedules 52

SIGNATURES

SIGNATURES 54 2 PART I – FINANCIAL INFORMATION Item 1. Financial Statements ONCOTELIC THERAPEUTICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash $ 72,216 $ 170,405 Restricted cash 20,000 $ 20,000 Accounts receivable 18,976 18,976 Prepaid & other current assets 80,766 62,356 Total current assets 191,958 271,737 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 value 22,653,225 22,653,225 Total assets $ 29,935,173 $ 30,014,952 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 2,460,960 $ 2,437,321 Accounts payable to related party 345,058 344,099 Contingent consideration 2,625,000 2,625,000 Derivative liability on notes 397,108 423,214 Convertible and short-term debt, net of costs 7,511,526 8,066,957 Convertible debt and short-term debt - related party, net of costs 2,864,782 2,608,356 Convertible debt and short-term debt, net of costs 2,864,782 2,608,356 Total current liabilities 16,204,434 16,504,947 Convertible long-term debt, net of costs 2,102,116 1,898,468 Convertible long-term debt, related party 125,000 - Convertible long-term debt, net of costs 125,000 - Total liabilities 18,431,550 18,403,415 Commitments and contingencies (Note 13) - - Stockholders' equity: Common stock, $ .01 par value; 750,000,000 shares authorized; 407,289,618 and 399,184,128 issued and outstanding, respectively 4,072,899 3,991,839 Additional paid-in capital 42,219,400 41,655,026 Accumulated deficit ( 34,135,249 ) ( 33,516,736 ) Total Oncotelic Therapeutics, Inc. stockholders' equity 12,157,050 12,130,129 Non-controlling interests ( 653,427 ) ( 518,592 ) Total stockholders' equity 11,503,623 11,611,537 Total liabilities and stockholders' equity $ 29,935,173 $

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. For more information on the debt financing of the Company, refer to Note 5 of the Notes to the Consolidated Financial Statements. November-December 2021 and March 2022 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 milli

View Full Filing

View this 10-Q filing on SEC EDGAR