Merger and Acquisition - The merger between Kintara and TuHURA resulted in TuHURA stockholders owning approximately 96.0% of the combined company post-merger[4]. - The Exchange Ratio for the merger was calculated to be 0.1789 following a 1-35 reverse share split[6]. - The merger transaction was completed on April 2, 2024, with TuHURA continuing as a wholly owned subsidiary of Kintara[16]. - The pro forma financial statements reflect the merger as if it had been consummated on January 1, 2023, with no historical operating relationship between the companies prior to the merger[5]. - The pro forma combined entity reflects a reverse share split of 1-35, impacting the number of shares outstanding[17]. - TuHURA's existing shareholders will own approximately 96.0% of the combined company post-merger, while Kintara's existing public stockholders will own about 4.0%[18]. Financial Performance - Total assets held by TuHURA and Kintara as of June 30, 2024, were $14,093 thousand and $6,202 thousand, respectively, with cash and cash equivalents of $12,311 thousand and $4,909 thousand[4]. - As of June 30, 2024, TuHURA's total current assets amounted to $23,069,000, with cash and cash equivalents at $22,043,000[9]. - Total liabilities for TuHURA as of June 30, 2024, were reported at $5,124,000, with current liabilities at $4,813,000[10]. - For the six months ended June 30, 2024, TuHURA reported total operating expenses of $12,694,000, with research and development expenses at $7,105,000[12]. - The net loss for TuHURA for the same period was $12,494,000, resulting in a net loss per share of $0.30[12]. - TuHURA's total stockholders' equity (deficit) was reported at $3,757,000 as of June 30, 2024[11]. - Total operating expenses for the pro forma combined entity amounted to $49,525,000, with research and development expenses contributing $20,753,000[14]. - The net loss for the pro forma combined entity was $49,011,000, resulting in a net loss per share of $1.17[14]. Research and Development - TuHURA plans to launch the REM-001 Study, a second-generation PDT photosensitizer agent, to test a 0.8 mg dose and optimize study design ahead of a Phase 3 trial initiation[4]. - TuHURA anticipates successful enrollment of ten CMBC patients for the REM-001 Study, with no significant value expected from Kintara's in-process research and development assets at the time of the merger[4]. - Kintara entered into a Contingent Value Rights Agreement, allowing holders to receive shares based on achieving a milestone related to the REM-001 study[20]. - Initial results from KVA12123 showed partial response and stable disease in combination cohorts, with durable stable disease in monotherapy cohorts[31]. - As of August 19, 2024, 30 out of a projected 39 patients have been enrolled in the ongoing VISTA-101 Phase 1/2 clinical trial[31]. - KVA12123 has cleared five of six monotherapy dose levels and two of four cohorts in combination with Merck's KEYTRUDA® therapy[31]. Financing and Debt - The convertible promissory notes issued by TuHURA were increased to an aggregate principal amount of $35 million, with a simple interest rate of 20% per annum[7]. - TuHURA's board approved a private offering of Convertible Debt, increasing the aggregate principal amount to $35 million, primarily for clinical development and corporate expenses[19]. - The Convertible Debt bears simple interest at a rate of 20% per annum, computed on a 365-day year[30]. - The company plans to convert Convertible Debt of $22,242,770 into 55,489,176 shares upon merger completion[34]. - The company recorded a reversal of interest expense on Convertible Debt of $1,612,610 for the six months ended June 30, 2024[34]. - The fair value of the derivative liability related to the Convertible Debt was recorded at $2,884,000[34]. Agreements and Transactions - TuHURA has entered into an Exclusivity Agreement with Kineta for the potential acquisition of the KVA12123 anti-VISTA antibody and related assets[7]. - TuHURA paid Kineta a total fee of $5,000,000 under the Exclusivity Agreement, with $2,500,000 paid at signing and another $2,500,000 due on July 15, 2024[8]. - The company has not allocated any of the $5,000,000 purchase price consideration to the royalty agreement due to uncertainties surrounding regulatory approval of KVA12123[8]. - TuHURA made nonrefundable payments of $5,000,000 for exclusive rights to acquire Kineta's patents and related assets[33]. - Estimated transaction costs related to the merger amount to $3,827,530, including a one-time special bonus of $327,030[34]. - The issuance of 4,009,623 shares in July 2024 Private Placement generated proceeds of $5,000,000, netting $4,695,990 after costs[32].
Kintara Therapeutics(KTRA) - 2025 Q1 - Quarterly Results