Financial Performance - Total revenue for the nine months ended September 30, 2024, was $16,020,000, compared to $20,000 for the same period in 2023[14]. - Net loss attributable to common shareholders for the nine months ended September 30, 2024, was $7,818,235, compared to a net loss of $10,776,275 for the same period in 2023[14]. - The company reported a net income per common share of $2.08 for the nine months ended September 30, 2024, compared to a net loss of $23.35 for the same period in 2023[14]. - Net income for the nine months ended September 30, 2024, was $7,818,235, compared to a net loss of $(10,245,290) for the same period in 2023, representing a significant turnaround[20]. - The company reported a comprehensive loss of $3,242,797 for the three months ended September 30, 2024, compared to a comprehensive loss of $5,803,251 for the same period in 2023[14]. - Net income for the three months ended September 30, 2024, was a loss of $3,413,326, improving by $2,349,615 from a loss of $5,762,941 in 2023[142]. Operating Expenses - Operating expenses for the nine months ended September 30, 2024, totaled $8,945,030, a decrease of 14.5% from $10,468,247 in the same period of 2023[14]. - Research and development expenses for the nine months ended September 30, 2024, were $3,717,570, up from $2,915,392 in the same period of 2023[14]. - The company reported stock-based compensation of $496,413 for the nine months ended September 30, 2024, down from $572,600 in the same period of 2023[20]. - General and administrative expenses for the three months ended September 30, 2024, decreased by $34,847 to $1,380,997, driven by reductions in proxy-related expenses and D&O insurance premiums[142]. - Total stock-based compensation expense for the three months ended September 30, 2024, was $171.176 million, a decrease of 35.3% from $264.865 million in the same period of 2023[98]. - For the nine months ended September 30, 2024, total stock-based compensation expense was $496.413 million, down 13.3% from $572.600 million in 2023[98]. Equity and Capital - Total stockholders' equity increased to $30,030,052 as of September 30, 2024, from $6,109,654 at the end of 2023[12]. - The company had 3,000,788 shares issued and outstanding as of September 30, 2024, compared to 856,182 shares at December 31, 2023[12]. - The total additional paid-in capital increased to $168,996,195 as of September 30, 2024, from $153,001,469 as of September 30, 2023[19]. - The company raised $14,998,865 from a private placement in 2024, with issuance costs of $(1,190,049)[20]. - The total net proceeds from a private placement on January 31, 2024, were approximately $13.8 million[80]. - The company completed a public offering on June 6, 2023, resulting in net proceeds of approximately $5.6 million[85]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2024, was $10,811,473, compared to cash used of $(6,975,610) in the prior year[20]. - The balance of cash, cash equivalents, and restricted cash at the end of the period was $5,641,539, compared to $5,404,529 at the end of September 30, 2023[20]. - Total cash, cash equivalents, and restricted cash increased to $5,641,539 as of September 30, 2024, from $2,458,951 as of December 31, 2023, representing a growth of approximately 129%[55]. - Cash on hand and short-term investments as of September 30, 2024, totaled approximately $29 million, providing sufficient liquidity to fund operations into 2027[153][161]. - The company anticipates having sufficient cash to fund planned operations into 2027, with cash on hand and short-term investments totaling approximately $29 million as of September 30, 2024[139]. Research and Development - The company incurred impairment of in-process R&D amounting to $2,008,000 for the nine months ended September 30, 2024, compared to $1,904,314 in the same period of 2023[20]. - Research and development expenses for the nine months ended September 30, 2024, increased by $802,178 to $3,717,570, primarily due to CMC expenses and licensing payments[149]. - The company has initiated a Phase 2 clinical trial (ABACUS-2) for KIO-301, expected to enroll the first patient in the first half of 2025[126]. - KIO-301 has received Orphan Drug Designation from the FDA and Orphan Medicinal Product Designation from the European Medicines Agency for treating retinal diseases[132]. - The company plans to develop KIO-104 for retinal inflammatory diseases and expects to initiate a Phase 2 clinical trial in early 2025[136]. Legal and Compliance - The company's disclosure controls and procedures were evaluated as effective as of September 30, 2024, by the Chief Executive Officer and Chief Financial Officer[170]. - There were no changes in the company's internal control over financial reporting during the three months ended September 30, 2024, that materially affected internal control[171]. - The company is not currently a party to any legal proceedings as of September 30, 2024[173]. Future Outlook - The company expects to continue focusing on its growth strategies and market expansion efforts in the upcoming quarters[8]. - Future financing needs will be supported through a combination of equity sales, debt financing, and collaborations, with no committed external sources of funds currently available[160]. - The Company has incurred annual losses and negative cash flows since inception, with future losses anticipated; however, management believes capital resources will be sufficient to fund operations for at least 12 months[27].
Kiora Pharmaceuticals(KPRX) - 2024 Q3 - Quarterly Report