Core Viewpoint - Kratos Defense & Security Solutions, Inc. is actively participating in NATO's At-Sea Demonstration/Formidable Shield 25, showcasing its capabilities in defense technology and contributing to multinational military exercises [1][4]. Group 1: Exercise Participation - The Formidable Shield 25 exercise is the largest live-fire event in the European theater, involving approximately 6,900 personnel from NATO member states [4]. - The exercise includes live-fire events against various unmanned and manned targets, enhancing interoperability among allied forces [2][4]. Group 2: Company Contributions - Kratos' Aegis Readiness Assessment Vehicle Type B (ARAV-B) participated in the exercise, successfully demonstrating its capabilities by being engaged and intercepted by U.S. guided missile destroyers [3]. - The company has been supporting the Formidable Shield Exercise since its inception in 2017, providing aerial drone and ballistic missile targets to improve NATO's integrated air and missile defense [4]. Group 3: Company Strategy and Vision - The leadership of Kratos emphasizes the importance of delivering mission-relevant products and systems, focusing on affordability and rapid development rather than traditional dividend payouts [4]. - Kratos positions itself as an innovative change agent in the defense industry, aiming to reduce costs and risks while being first to market with effective solutions [5].

HOUSTON, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Aravive, Inc. (NASDAQ:ARAV, "the Company"))), announced today that the Company intends to voluntarily terminate the listing of its common stock on the Nasdaq Global Select Market ("Nasdaq")  and, based upon ownership of its shares by fewer than 300 holders of record, deregister its common stock under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and suspend its public reporting obligations. As previously disclosed, at the Company's 2023 annua ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q3 2023 financial statements reflect significant distress and substantial doubt about the company's ability to continue as a going concern [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, the company's financial position significantly weakened, marked by plummeting cash and total assets Condensed Consolidated Balance Sheet Highlights (in thousands) | Financial Metric | Sep 30, 2023 (unaudited) | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $8,535 | $53,689 | | Total current assets | $9,562 | $57,970 | | Total assets | $13,049 | $62,153 | | **Liabilities & Equity** | | | | Total current liabilities | $9,777 | $22,112 | | Warrant liability | $1,265 | $26,881 | | Total liabilities | $11,348 | $51,496 | | Accumulated deficit | $(626,849) | $(616,127) | | Total stockholders' equity | $1,701 | $10,657 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter of 2023, Aravive reported net income primarily due to a non-cash gain from warrant liability, masking a substantial operating loss Operating Results (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Collaboration Revenue | $2,756 | $4,956 | $5,520 | $7,663 | | Research and development | $8,730 | $18,668 | $35,435 | $48,985 | | General and administrative | $2,940 | $2,836 | $9,499 | $9,651 | | Loss from operations | $(8,914) | $(16,548) | $(39,414) | $(50,973) | | Change in fair value of warrant liability | $29,231 | $— | $25,616 | $1,410 | | Net income (loss) | $21,226 | $(15,663) | $(10,722) | $(47,197) | | Basic EPS | $0.28 | $(0.51) | $(0.14) | $(1.72) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash used in operating activities was $45.2 million, with negligible financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(45,216) | $(50,843) | | Net cash provided by financing activities | $25 | $19,320 | | Net change in cash, cash equivalents, and restricted cash | $(45,191) | $(31,523) | | Cash, cash equivalents, and restricted cash at end of period | $10,943 | $30,332 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical details, including the failure of the Phase 3 AXLerate-OC trial, leading to substantial doubt about going concern - In August 2023, the company's **Phase 3 AXLerate-OC trial** for its sole product candidate, **batiraxcept**, failed to meet its primary endpoint. This led to a **significant reduction in force** and the company is now exploring **strategic alternatives**, including potential **liquidation or bankruptcy**[21](index=21&type=chunk) - The company has concluded there is **substantial doubt about its ability to continue as a going concern**. Its cash balance of **$5.1 million** as of October 31, 2023, is not sufficient to fund operations, and if additional capital is not raised, it will be forced to cease operations and liquidate[26](index=26&type=chunk) - Due to the termination of the Phase 3 PROC trial in August 2023, all remaining deferred revenue associated with the 3D Medicines agreement was recognized during the third quarter[94](index=94&type=chunk) - On August 18, 2023, the Board approved a **workforce reduction of approximately 70%**, incurring costs of about **$1.2 million** in severance and accrued paid time off[103](index=103&type=chunk)[105](index=105&type=chunk) - On October 2, 2023, stockholders approved proposals to potentially transfer all assets through an **assignment for the benefit of creditors** or to voluntarily **dissolve and liquidate the company**[135](index=135&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion confirms the company's dire situation following the Phase 3 trial failure, leading to workforce reduction and going concern doubt [Recent Clinical Developments](index=29&type=section&id=Recent%20Clinical%20Developments) In August 2023, the Phase 3 AXLerate-OC trial for batiraxcept failed, leading to program termination and exploration of strategic alternatives - The **Phase 3 AXLerate-OC trial** for batiraxcept in PROC did not meet its primary endpoint of progression-free survival (PFS)[138](index=138&type=chunk) - To preserve cash, the company has **terminated its P1b/P2 trials** in ccRCC and pancreatic adenocarcinoma and will not continue these programs without additional capital[140](index=140&type=chunk) - On August 18, 2023, the company implemented a **workforce reduction of approximately 70%** to conserve cash following the clinical trial failure[143](index=143&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Comparing Q3 2023 to Q3 2022, collaboration revenue decreased, R&D expenses fell, and total other income significantly increased due to warrant liability gain Comparison of Operating Results (in thousands) | Metric | Q3 2023 | Q3 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Collaboration Revenue | $2,756 | $4,956 | -44% | | Research and development | $8,730 | $18,668 | -53% | | General and administrative | $2,940 | $2,836 | 4% | | Loss from operations | $(8,914) | $(16,548) | -46% | - The decrease in R&D expenses was primarily driven by reduced CRO costs and manufacturing expenses after all clinical studies were terminated in August 2023[165](index=165&type=chunk) - Total other income increased by **$29.3 million** in Q3 2023, mainly due to a **$29.2 million gain on the fair value of warrant liabilities** resulting from a decrease in the company's stock price[169](index=169&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is critical, with cash insufficient to sustain operations beyond Q4 2023, raising substantial doubt about its going concern status - As of October 31, 2023, the company had cash and cash equivalents of approximately **$5.1 million**, which is not sufficient to sustain operations beyond Q4 2023[171](index=171&type=chunk) - The company's financial condition raises **substantial doubt about its ability to continue as a going concern**. If it cannot raise capital or find a strategic partner, it will be forced to cease operations and liquidate[172](index=172&type=chunk) - Net cash used in operating activities for the nine months ended September 30, 2023, was **$45.2 million**, funded by existing cash reserves as financing activities were negligible[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Aravive, Inc. is classified as a smaller reporting company and is therefore not required to provide the information requested under this item - As a smaller reporting company, Aravive is not required to provide quantitative and qualitative disclosures about market risk[179](index=179&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of September 30, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[180](index=180&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[181](index=181&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) As of the report date, Aravive, Inc. is not subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[184](index=184&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The risk factors highlight the company's precarious position due to the failure of its sole product candidate and substantial doubt about going concern [Risks Related To Clinical Trials and Strategic Alternatives](index=39&type=section&id=Risks%20Related%20To%20Clinical%20Trials%20and%20Strategic%20Alternatives) The company's viability is at extreme risk following the failure of its only product candidate, leading to program cessation and uncertain strategic alternatives - Following the failure of the **Phase 3 PROC trial**, the company has terminated all clinical programs for its only product candidate, **batiraxcept**, and cannot fund further development[187](index=187&type=chunk)[189](index=189&type=chunk) - The company is exploring strategic alternatives, but if it fails to raise capital or engage a partner, it will be forced to cease operations, liquidate assets, and possibly seek bankruptcy[188](index=188&type=chunk) - If a strategic transaction is not completed, the Board may pursue dissolution and liquidation, and the cash available for distribution to stockholders is uncertain and could be zero[197](index=197&type=chunk) [Risks Related to Financial Position and Capital Requirements](index=43&type=section&id=Risks%20Related%20to%20Financial%20Position%20and%20Capital%20Requirements) The company faces a severe liquidity crisis, with substantial doubt about its ability to continue as a going concern and insufficient cash reserves - There is **substantial doubt about the company's ability to continue as a going concern**, as it does not have adequate financial resources to fund operations for the next twelve months[201](index=201&type=chunk) - Existing cash is not sufficient to fund operations beyond the **fourth quarter of 2023**, and the company will need to raise additional capital to avoid a wind-down and dissolution[203](index=203&type=chunk) - As of September 30, 2023, the company had an **accumulated deficit of approximately $626.8 million** and expects to continue incurring significant losses[206](index=206&type=chunk) [Risks Related to Stock Listing and Ownership](index=44&type=section&id=Risks%20Related%20to%20Stock%20Listing%20and%20Ownership) The company is at risk of Nasdaq delisting due to non-compliance with listing requirements and faces high stock ownership concentration - On September 15, 2023, the company received three non-compliance notices from Nasdaq for failing to meet continued listing requirements, including the **$1.00 minimum bid price**[210](index=210&type=chunk) - As of November 3, 2023, the Executive Chairman, **Dr. Fredric N. Eshelman**, beneficially owns **47.1% of the company's common stock**, giving him significant influence over all matters submitted to stockholders[216](index=216&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate bylaws and CEO/CFO certifications - The exhibits filed with the report include corporate governance documents and certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[218](index=218&type=chunk) [Signatures](index=47&type=section&id=Signatures) The quarterly report was duly signed and authorized on November 9, 2023, by the Chief Executive Officer and Chief Financial Officer - The report was signed on November 9, 2023, by the company's Chief Executive Officer and Chief Financial Officer[220](index=220&type=chunk)

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 June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36361 Aravive, Inc. (Exact name of registrant as specified in its charter) Delaware 26-4106690 (State or other jurisdicti ...

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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36361 Aravive, Inc. (Exact name of registrant as specified in its charter) Delaware 26-4106690 (State or other jurisdict ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.0001 per share ARAV Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PE ...