Form 10-Q
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Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
 
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2020
 
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from
                
to
                
Commission File
No
.
 
001-31791
 
 
GALECTIN THERAPEUTICS INC.
 
 
 
Nevada
 
04-3562325
(State or other jurisdiction of
incorporation)
 
(I.R.S. Employer
Identification No.)
4960 Peachtree Industrial Blvd.,
Suite 240, Norcross, GA
 
30071
(Address of Principal Executive Offices)
 
(Zip Code)
(678)
620-3186
(Registrant’s Telephone Number, Including Area Code)
 
 
Securities registered or to be registered pursuant to Section 12(b) of the Act.
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock
 
GALT
 
Nasdaq
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    
  Yes    ☐  No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in
Rule 12b-2
of the Exchange Act.
 
Large Accelerated Filer      Accelerated Filer  
Non-Accelerated
Filer
     Smaller reporting company  
Emerging growth company       
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    ☐  Yes    ☒  No
The number of shares outstanding of the registrant’s common stock as of November 5, 2020 was 57,077,055.
 
 
 

Table of Contents
GALECTIN THERAPEUTICS INC.
INDEX TO FORM
10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2020
 
 
 
 
  
PAGE
 
 
 
PART I — FINANCIAL INFORMATION
  
     
     
ITEM 1.
 
Unaudited Condensed Consolidated Financial Statements (unaudited)
  
     
 
 
  
 
3
 
 
 
  
 
4
 
 
 
  
 
5
 
 
 
  
 
6
 
 
 
  
 
9
 
ITEM 2.
 
  
 
15
 
ITEM 3.
 
  
 
24
 
ITEM 4.
 
  
 
24
 
     
 
 
  
     
     
ITEM 1.
 
  
 
25
 
ITEM 1A.
 
  
 
25
 
ITEM 2.
 
  
 
25
 
ITEM 3.
 
  
 
25
 
ITEM 4.
 
  
 
25
 
ITEM 5.
 
  
 
25
 
ITEM 6.
 
  
 
25
 
  
 
26
 
 

Table of Contents
GALECTIN THERAPEUTICS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
    
September 30,
2020
   
December 31,
2019
 
    
(in thousands)
 
ASSETS
    
Current assets:
    
Cash and cash equivalents
   $ 32,556     $ 47,480  
Prepaid expenses and other current assets
     1,327       729  
  
 
 
   
 
 
 
Total current assets
     33,883       48,209  
  
 
 
   
 
 
 
Other assets
     166       258  
  
 
 
   
 
 
 
Total assets
   $ 34,049     $ 48,467  
  
 
 
   
 
 
 
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
    
Current liabilities:
    
Accounts payable
   $ 691     $ 1,661  
Accrued expenses and other
     1,797       1,093  
Accrued 
dividends pay
a
ble
 
 
 —
 
 
 
 
66
 
  
 
 
   
 
 
 
Total current liabilities
     2,488       2,820  
  
 
 
   
 
 
 
Other liabilities
     19       52  
  
 
 
   
 
 
 
Total liabilities
     2,507       2,872  
  
 
 
   
 
 
 
Commitments and contingencies (Note 10)
Series C super dividend redeemable convertible preferred stock; 1,000 shares authorized, 176 shares issued and outstanding at September 30, 2020 and December 31, 2019, redemption value: $8,520,000, liquidation value: $1,760,000 at September 30, 2020
     1,723       1,723  
Stockholders’ equity:
    
Undesignated stock, $0.01 par value; 20,000,000 shares authorized, 20,000,000 designated at
September 30, 2020 and December 31, 2019, respectively
           —    
Series A 12% convertible preferred stock; 1,742,500 shares authorized, 1,302,500 and 1,327,500 issued
and outstanding at September 30, 2020 and December 31, 2019, respectively, liquidation value
$1,302,500 at September 30, 2020
     527       537  
Common stock, $0.001 par value; 100,000,000 shares authorized at September 30, 2020 and
December 31, 2019, 57,077,055 and 56,894,642 issued and outstanding at September 30, 2020 and
December 31, 2019, respectively
     56       56  
Additional
paid-in
capital
     261,316       259,673  
Retained deficit
     (232,080     (216,394
  
 
 
   
 
 
 
Total stockholders’ equity
     29,819       43,872  
  
 
 
   
 
 
 
Total liabilities, redeemable convertible preferred stock and stockholders’ equity
   $ 34,049     $ 48,467  
  
 
 
   
 
 
 
See notes to unaudited condensed consolidated financial statements.
 
3

Table of Contents
GALECTIN THERAPEUTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
    
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
    
2020
   
2019
   
2020
   
2019
 
    
(in thousands, except per share data)
   
(in thousands, except per share data)
 
Operating expenses:
        
Research and development
   $ 4,780     $ 1,503     $ 11,605     $ 3,671  
General and administrative
     1,146       1,360       4,007       4,579  
  
 
 
   
 
 
   
 
 
   
 
 
 
Total operating expenses
     5,926       2,863       15,612       8,250  
  
 
 
   
 
 
   
 
 
   
 
 
 
Total operating loss
     (5,926     (2,863     (15,612     (8,250
  
 
 
   
 
 
   
 
 
   
 
 
 
Other income (expense):
        
Interest income
     5       101       64       158  
Interest expense
     (22     (22     (65     (65
  
 
 
   
 
 
   
 
 
   
 
 
 
Total other income (expense)
     (17     79       (1     93  
  
 
 
   
 
 
   
 
 
   
 
 
 
Net loss
   $ (5,943   $ (2,784   $ (15,613   $ (8,157
  
 
 
   
 
 
   
 
 
   
 
 
 
Preferred stock dividends
     (12     (35     (72     (198
Warrant modification (Note 9)
           —               (6,622
  
 
 
   
 
 
   
 
 
   
 
 
 
Net loss applicable to common stockholders
   $ (5,955   $ (2,819   $ (15,685   $ (14,977
  
 
 
   
 
 
   
 
 
   
 
 
 
Net loss per common share — basic and diluted
   $ (0.10   $ (0.05   $ (0.28   $ (0.27
Weighted average common shares outstanding — basic and diluted
     57,047       56,631       57,013       55,494  
See notes to unaudited condensed consolidated financial statements.
 
4

Table of Contents
GALECTIN THERAPEUTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
    
Nine Months Ended
September 30,
 
    
2020
   
2019
 
    
(in thousands)
 
CASH FLOWS FROM OPERATING ACTIVITIES:
    
Net loss
   $ (15,613   $ (8,157
Adjustments to reconcile net loss to net cash flows from operating activities:
    
Stock-based compensation expense
     1,232       1,269  
Amortization of right to use lease asset
     27       26  
Non-cash
interest expense
     64       65  
Changes in operating assets and liabilities:
    
Prepaid expenses and other assets
     (598     239  
Accounts payable and accrued expenses
     (299     (531
  
 
 
   
 
 
 
Net cash from operating activities
     (15,187     (7,089
  
 
 
   
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
    
Net proceeds from issuance of common stock and warrants
     263       49,567  
Payment of preferred stock dividends
           (394
  
 
 
   
 
 
 
Net cash flows from financing activities
     263       49,173  
  
 
 
   
 
 
 
NET DECREASE IN CASH AND CASH EQUIVALENTS
     (14,924     42,084  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
     47,480       8,253  
  
 
 
   
 
 
 
CASH AND CASH EQUIVALENTS, END OF PERIOD
   $ 32,556     $ 50,337  
  
 
 
   
 
 
 
NONCASH FINANCING ACTIVITIES:
    
Payment of preferred stock dividends in common stock
   $ 137     $ 102
See notes to unaudited condensed consolidated financial statements.
 
5

Table of Contents
GALECTIN THERAPEUTICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (UNAUDITED)
(amounts in thousands except share data)
 
    
Series C Super
Dividend Redeemable
Convertible
Preferred Stock
 
    
Number of
Shares
    
Amount
 
Balance at December 31, 2018
  
 
176
 
  
$
1,723
 
  
 
 
    
 
 
 
Balance at September 30, 2019
  
 
176
 
  
$
1,723
 
  
 
 
    
 
 
 
Balance at December 31, 2019
  
 
176
 
  
$
1,723
 
  
 
 
    
 
 
 
Balance at September 30, 2020
  
 
176
 
  
$
1,723
 
  
 
 
    
 
 
 
 
6

Table of Contents
GALECTIN THERAPEUTICS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) — (Continued)
For the Three Months Ended September 30, 2020 and 2019
(amounts in thousands except share data)
 
 
 
Series A 12%
Convertible
Preferred Stock
 
 
Series
B-1
12%
Convertible
Preferred Stock
 
 
Series
B-2
12%
Convertible
Preferred Stock
 
 
Series
B-3
8%
Convertible
Preferred Stock
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
Number
of
Shares
 
 
Amount
 
 
Number
of
Shares
 
 
Amount
 
 
Number
of
Shares
 
 
Amount
 
 
Number
of
Shares
 
 
Amount
 
 
Number
of
Shares
 
 
Amount
 
 
Additional
Paid-In

Capital
 
 
Retained
Deficit
 
 
Total
Stockholders’
Equity
(Deficit)
 
Balance at
 
June 30, 2019
 
 
1,327,500
 
 
$
537
 
 
 
  
 
 
$
  
 
 
 
  
 
 
$
  
 
 
 
  
 
 
$
  
 
 
 
56,591,278
 
 
$
56
 
 
$
257,678
 
 
$
(208,373
 
$
49,898
 
Series A 12
% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
13,275
 
 
 
 
49
 
 
 
(9
 
 
40
 
Series C super dividend redeemable convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
14,280
 
 
 
53
 
 
(25
 
 
28
 
Issuance of common stock
 
 
 
 
 
 
 
 
 
 
40,026
 
 
 
 
163
 
 
 
 
163
 
Stock-based compensation expense
 
 
 
 
 
 
 
 
 
 
 
 
414
 
 
 
 
414
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,784
 
 
(2,784
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2019
 
 
1,327,500
 
 
$
537
 
 
 
  
 
 
$
  
 
 
 
  
 
 
$
  
 
 
 
  
 
 
$
  
 
 
 
56,658,859
 
 
$
56
 
 
$
258,357
 
 
$
(211,191
 
$
47,759
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2020
 
 
1,327,500
 
 
$
537
 
 
 
 
 
$
 
 
 
 
 
$
 
 
 
 
 
$
 
 
 
 
57,043,661
 
 
$
56
 
 
$
260,820
 
 
$
(226,124
 
$
35,289
 
Series A 12
% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13,025
 
 
 
 
 
 
 
35
 
 
 
4
 
 
 
39
 
Series C super dividend redeemable convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,816
 
 
 
 
 
 
 
42
 
 
 
(16
 
 
26
 
Issuance of common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of common stock for conversion of Series A 12% Convertible Preferred Stock
 
 
(25,000
 
 
(10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,553
 
 
 
 
 
 
 
11
 
 
 
(1
 
 
 
 
Stock-based compensation expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
408
 
 
 
 
 
 
 
408
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(5,943
 
 
(5,943
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2020
 
 
1,302,500
 
 
$
527
 
 
 
 
 
$
 
 
 
 
 
$
 
 
 
 
 
$
 
 
 
57,077,055
 
 
$
56
 
 
$
261,316
 
 
$
(232,080
 
$
29,819
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7

Table of Contents
GALECTIN THERAPEUTICS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) — (Continued)
For the Nine Months Ended September 30, 2020 and 2019
(amounts in thousands except share data)
 
   
Series A 12%
Convertible
Preferred St
o
ck
   
Series
B-1
12%
Convertible
Preferred Stock
   
Series
B-2
12%
Convertible
Preferred Stock
   
Series
B-3
8%
Convertible
Preferred Stock
   
Common Stock
                   
   
Number
of
Shares
   
Amount
   
Number
of
Shares
   
Amount
   
Number
of
Shares
   
Amount
   
Number
of
Shares
   
Amount
   
Number
of
Shares
   
Amount
   
Additional
Paid-In

Capital
   
Retained
Deficit
   
Total
Stockholders’
Equity
(Deficit)
 
Balance at December 31, 2018
 
 
1,327,500
 
 
$
537
 
 
 
900,000
 
 
$
1,761
 
 
 
2,100,000
 
 
$
3,697
 
 
 
2,508,000
 
 
$
1,224
 
 
 
41,190,905
 
 
$
41
 
 
$
194,130
 
 
$
(196,215
 
$
5,175
 
Series A 12
% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
13,275
 
 
 
 
49
 
 
 
(89
 
 
(40
Series
B-1
12% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
(6
 
 
(6
Series
B-2
12% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
(15
 
 
(15
Series
B-3
8% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
(9
 
 
(9
Series C super dividend redeemable convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
14,280
 
 
 
 
53
 
 
 
(78
 
 
(25
Issuance of common stock
 
 
 
 
 
 
 
 
 
 
10,923,420
 
 
 
10
 
 
 
46,907
 
 
 
 
46,917
 
Conversion of Series B Convertible Preferred to common
 
 
 
 
(900,000
 
 
(1,761
 
 
(2,100,000
 
 
(3,697
 
 
(2,508,000
 
 
(1,224
 
 
3,789,346
 
 
 
4
 
 
 
6,678
 
 
 
Issuance of common stock for exercise of warrants and options
 
 
 
 
 
 
 
 
 
 
727,633
 
 
 
1
 
 
 
2,649
 
 
 
 
2,650
 
Warrant modification (Note 9)
 
 
 
 
 
 
 
 
 
 
 
 
6,622
 
 
 
(6,622
 
Stock-based compensation expense
 
 
 
 
 
 
 
 
 
 
 
 
1,269
 
 
 
 
1,269
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
(8,157
 
 
(8,157
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2019
 
 
1,327,500
 
 
$
537
 
 
 
 
 
 
 
$
 
 
 
 
 
 
 
 
 
$
 
 
 
 
 
 
 
 
 
$
 
 
 
 
 
56,658,859
 
 
$
56
 
 
$
258,357
 
 
$
(211,191
 
$
47,759
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2019
 
 
1,327,500
 
 
$
537
 
 
 
 
 
 
 
 
 
56,894,642
 
 
$
56
 
 
$
259,673
 
 
$
(216,394
 
$
43,872
 
Series A 12
% convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,300
 
 
 
 
 
 
 
61
 
 
 
(22
 
 
39
 
Series C super dividend redeemable convertible preferred stock dividend
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
33,416
 
 
 
 
 
 
 
76
 
 
 
(50
 
 
26
 
Issuance of common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14,452
 
 
 
 
 
 
 
44
 
 
 
 
 
 
 
44
 
Issuance of common stock for conversion of Series A 12% Convertible Preferred Stock
 
 
(25,000
 
 
(10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,553
 
 
 
 
 
 
 
11
 
 
 
(1
 
 
 
 
Issuance of common stock for exercise of warrants and options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
84,624
 
 
 
 
 
 
 
219
 
 
 
 
 
 
 
219
 
Stock-based compensation expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,068
 
 
 
 
 
 
 
1,232
 
 
 
 
 
 
 
1,232
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
(15,613
 
 
(15,613
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2020
 
 
1,302,500
 
 
$
527
 
 
 
 
 
$
 
 
 
 
 
$
 
 
 
 
 
$
 
 
 
57,077,055
 
 
$
56
 
 
$
261,316
 
 
$
(232,080
 
$
29,819
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See notes to consolidated financial statements.
 
8

Table of Contents
GALECTIN THERAPEUTICS INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation and Liquidity
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 September 30, 2020 and the results of its operations for the three and nine months ended September 30, 2020 and 2019 and its cash flows for the nine months ended September 30, 2020 and 2019. 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, 2019 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 statements of the Company should be read in conjunction with its Annual Report on Form
10-K
for the year ended December 31, 2019.
The Company has operated at a loss since its inception and has had no revenues. The Company anticipates that losses will continue for the foreseeable future. At September 30, 2020, the Company had $32,556,000 of unrestricted cash and cash equivalents available to fund future
 
operations.
 
The Company believes there is sufficient cash, including availability of the $10 million line of credit (see Note 3), to fund currently planned operations at least through December 31, 2021. We will require more cash to fund our operations after December 31, 2021 and believe we will be able to obtain additional financing. The currently planned operations include costs related to our adaptively designed
NASH-RX
Phase 2b/3 clinical trial. Currently, we expect to require an additional approximately $40 million to cover costs of the trial to reach the planned interim analysis estimated to occur in the second quarter of 2023 along with drug manufacturing and other scientific support activities and general and administrative costs. However, there can be no assurance that we will be successful in obtaining such new financing or, if available, that such financing will be on terms favorable to us. If we are unsuccessful in raising additional capital to fund operations before December 31, 2021, we may be required to cease operations. Accordingly, based on the forecasts and estimates underlying our current operating plan, the financial statements do not currently include any adjustments that might be necessary if we are unable to continue as a going concern.
The Company was founded in July 2000, was incorporated in the State of Nevada in January 2001 under the name
“Pro-Pharmaceuticals,
Inc.,” and changed its name to “Galectin Therapeutics Inc.” on May 26, 2011.
2. Accrued Expenses and Other
Accrued expenses consist of the following:
 
     September 30,
2020
     December 31,
2019
 
     (in thousands)  
Legal and accounting fees
   $ 117      $ 81  
Acc
r
ued clinical tr
ial costs
 
 
1,050
 
 
 
 
Accrued compensation
     585        973  
Lease liability
     43        39  
Accrued research and development costs and other
     2        —    
  
 
 
    
 
 
 
Total
   $ 1,797