Ikena Oncology(IKNA) - 2025 Q1 - Quarterly Report

Special Note Regarding Forward-Looking Statements This section highlights that the Quarterly Report on Form 10-Q contains forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially Forward-Looking Statements Overview This section highlights that the Quarterly Report on Form 10-Q contains forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual results to differ materially - The report contains forward-looking statements regarding strategy, future operations, financial position, revenue, costs, prospects, plans, and market growth[9] - Key forward-looking statements include the timing and completion of the proposed merger with Inmagene Biopharmaceuticals, employee retention, clinical trial progress and cost, manufacturing capabilities, funding, regulatory approval, commercialization, intellectual property, and future financial performance[10] - Readers are cautioned not to place undue reliance on forward-looking statements, as actual results could differ materially due to factors discussed, particularly in the 'Risk Factors' section[11] Summary of the Material and Other Risks Associated with Our Business This section provides a high-level summary of the significant risks facing the company, including those related to the proposed merger with Inmagene Biopharmaceuticals, the company's limited operating history and financial position, and the challenges inherent in developing oncology therapeutics Key Business Risks This section provides a high-level summary of the significant risks facing the company, including those related to the proposed merger with Inmagene Biopharmaceuticals, the company's limited operating history and financial position, and the challenges inherent in developing oncology therapeutics - Failure to complete or delays in the proposed merger with Inmagene Biopharmaceuticals could materially and adversely affect the company's operations, financial results, and stock price[15] - If the merger or another strategic transaction is not consummated, the board may pursue dissolution and liquidation, with uncertain cash distribution to stockholders[15] - The company is a targeted oncology company with a limited operating history, no products approved for commercial sale, and has incurred significant net losses, anticipating continued losses[15] - Additional capital may be required, which might not be available on acceptable terms, potentially forcing delays or elimination of development efforts[15] - Clinical product development is lengthy, expensive, and uncertain, with no guarantee of successful completion of trials or regulatory approval for product candidates[15] PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for Ikena Oncology, Inc., including the balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, and statements of cash flows, along with accompanying notes Condensed Consolidated Balance Sheets The condensed consolidated balance sheets show a decrease in total assets and stockholders' equity from December 31, 2024, to March 31, 2025, primarily driven by reductions in cash, cash equivalents, and marketable securities, alongside an increase in accumulated deficit Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $36,763 | $39,393 | | Marketable securities | $77,288 | $84,993 | | Total current assets | $116,999 | $127,169 | | Total assets | $130,838 | $141,510 | | Total current liabilities | $8,793 | $10,778 | | Total liabilities | $12,588 | $15,576 | | Total stockholders' equity | $118,250 | $125,934 | | Accumulated deficit | $(340,238) | $(331,619) | - Total assets decreased by $10.672 million from $141.510 million at December 31, 2024, to $130.838 million at March 31, 2025[20] - Total stockholders' equity decreased by $7.684 million from $125.934 million at December 31, 2024, to $118.250 million at March 31, 2025[20] Condensed Consolidated Statements of Operations and Comprehensive Loss The company reported a reduced net loss for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to significant decreases in research and development expenses and restructuring charges, partially offset by lower investment income Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Research and development | $3,715 | $9,645 | | General and administrative | $5,644 | $5,999 | | Restructuring and other charges | $1,435 | $2,582 | | Total operating expenses | $10,794 | $18,226 | | Loss from operations | $(10,794) | $(18,226) | | Investment income | $1,418 | $2,114 | | Net loss | $(8,619) | $(16,146) | | Net loss per share, basic and diluted | $(0.18) | $(0.33) | - Net loss decreased by 46.6% from $(16.146) million in Q1 2024 to $(8.619) million in Q1 2025[23] - Research and development expenses decreased by 61.4% from $9.645 million in Q1 2024 to $3.715 million in Q1 2025[23] Condensed Consolidated Statements of Stockholders' Equity The statements of stockholders' equity show a decrease in total stockholders' equity from $125.934 million at December 31, 2024, to $118.250 million at March 31, 2025, primarily due to the net loss incurred during the period, partially offset by stock-based compensation and other comprehensive income Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric | December 31, 2024 (in thousands) | March 31, 2025 (in thousands) | | :-------------------------- | :----------------------------- | :---------------------------- | | Total Stockholders' Equity | $125,934 | $118,250 | | Stock-based compensation | N/A | $904 | | Other comprehensive income | N/A | $31 | | Net loss | N/A | $(8,619) | | Accumulated Deficit | $(331,619) | $(340,238) | - Total stockholders' equity decreased by $7.684 million from December 31, 2024, to March 31, 2025[26] - Accumulated deficit increased by $8.619 million, reflecting the net loss for the three months ended March 31, 2025[26] Condensed Consolidated Statements of Cash Flows The company's net cash used in operating activities significantly decreased for the three months ended March 31, 2025, compared to the same period in 2024, while investing activities provided net cash in 2025, a reversal from cash usage in 2024, leading to a smaller overall net decrease in cash Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | $(10,562) | $(18,304) | | Net cash provided by (used in) investing activities | $7,932 | $(48,738) | | Net decrease in cash, cash equivalents and restricted cash | $(2,630) | $(67,042) | | Cash, cash equivalents and restricted cash, end of period | $37,635 | $54,130 | - Net cash used in operating activities decreased by $7.742 million (42.3%) from $18.304 million in Q1 2024 to $10.562 million in Q1 2025[29] - Investing activities shifted from using $48.738 million in Q1 20