Financial Performance - The company reported a net loss of $83.6 million for the year ended December 31, 2024, compared to a net loss of $81.2 million for 2023, reflecting an increase in losses of $2.4 million [532]. - The company has an accumulated deficit of $266.6 million as of December 31, 2024, indicating ongoing financial challenges [532]. - The company has incurred an accumulated deficit of $266.6 million as of December 31, 2024, and anticipates continued significant operating losses and negative cash flows [552]. - Net cash used in operating activities was $60.1 million in 2024, compared to $67.3 million in 2023, reflecting a decrease in cash outflow [559][560]. - Total other income, net rose to $8.5 million in 2024 from $3.4 million in 2023, driven by a $5.1 million increase in interest income from cash and marketable securities [550]. Research and Development - Research and development expenses increased to $63.6 million in 2024 from $57.2 million in 2023, primarily due to a $19.3 million rise in external expenses related to the KRRO-110 program [547]. - The KRRO-110 program is currently in a Phase 1/2a clinical trial, with the first participants dosed in January 2025, and interim data expected in the second half of 2025 [530]. - The company expects to continue incurring significant expenses related to its genetic medicine discovery efforts and clinical trials [555]. - The company anticipates significant increases in both research and development and general administrative expenses as it expands its operations and headcount [542]. Revenue and Collaboration - The company recognized $2.3 million in collaboration revenue during the year ended December 31, 2024, from a research collaboration with Novo Nordisk, while no collaboration revenue was recognized in 2023 [545]. - The company has not generated any revenue from product sales and does not expect to do so in the near future, relying on external funding for operations [534]. Operating Expenses - The total operating expenses for 2024 were $94.2 million, up from $84.5 million in 2023, marking an increase of $9.6 million [544]. - General and administrative expenses increased to $30.5 million in 2024 from $27.3 million in 2023, a rise of $3.3 million, primarily due to a $1.9 million increase in IT and other costs, and a $1.1 million increase in professional fees [549]. Cash Flow and Financing - Net cash used in investing activities was $123.3 million in 2024, primarily due to $146.3 million spent on marketable securities [561]. - Net cash provided by financing activities was $69.4 million in 2024, mainly from a private placement of common stock [563]. - The company has raised approximately $223.6 million from the sale of convertible preferred stock and $117.3 million from common stock sales prior to a business combination in November 2023 [531]. - The company entered into a sales agreement allowing for the issuance of up to $100.0 million in common stock through at-the-market offerings, with no shares sold as of December 31, 2024 [553]. Future Outlook - Future capital requirements will depend on various factors, including the progress of clinical trials and regulatory approvals, with potential dilution of stockholder interests if additional capital is raised [556]. - The FDA granted orphan drug designation to KRRO-110 for the treatment of AATD in March 2025, enhancing its development prospects [530]. - Future operations may be adversely affected by inflation [576]. - Inflation has increased costs related to labor, research, manufacturing, and development, but has not materially affected financial statements to date [576]. Currency and Economic Factors - The company has minimal exposure to foreign currency exchange rate fluctuations due to short transaction durations [575].
Korro Bio(KRRO) - 2024 Q4 - Annual Report