Financial Performance - The company reported net losses of $1,262,000 for the three months ended March 31, 2025, compared to $323,000 for the same period in 2024, indicating a significant increase in losses [103]. - Total operating expenses for the three months ended March 31, 2025, were $1,266,000, compared to $287,000 for the same period in 2024, reflecting a substantial rise in operational costs [103]. - As of March 31, 2025, the company had an accumulated deficit of $10,077,000, highlighting ongoing financial challenges [83]. - The company incurred a net loss of $1,262 million in Q1 2025, compared to a net loss of $323 million in Q1 2024, with cash used in operations amounting to $714 million in 2025 versus $36 million provided in 2024 [107][112]. Research and Development - Research and development expenses increased to $493,000 for the three months ended March 31, 2025, from $165,000 in the same period of 2024, primarily due to the initiation of a Phase 2 trial in prostate cancer [104]. - The company anticipates continued significant operating losses as it advances its product candidates through clinical development and seeks regulatory approvals [83]. - The successful development and commercialization of product candidates remain highly uncertain due to various risks and uncertainties associated with the process [99]. - The company has entered into multiple agreements for clinical research and advisory services, including a $900 advance payment to Prevail Infoworks for clinical research services [118][120]. Financing Activities - The company entered into an Equity Line of Credit Agreement with Helena Global Investment Opportunities I LTD for up to $30,000,000 in common stock purchases [86]. - The January 2025 PIPE Offering raised a total of $3,498,000, with the issuance of 2,500,000 pre-funded units [91]. - Cash provided by financing activities was $3,058 million in Q1 2025, significantly up from $89 million used in Q1 2024, primarily due to gross proceeds from a private financing of $3,500 million [111][114]. - The company relies on equity and debt financings for funding, with potential dilution of ownership interest for current stockholders if additional capital is raised [117]. Expenses and Operational Costs - General and administrative expenses are expected to increase as the company expands its headcount and incurs additional costs related to being a public company [102]. - General and administrative expenses increased to $773 million in Q1 2025 from $122 million in Q1 2024, primarily due to a $132 million rise in stock-related and officer compensation expenses and a $240 million increase in vendor advance amortization expense [105]. - The company expects substantial increases in expenses related to ongoing research activities and public company operations, with funding requirements dependent on various factors including clinical trial progress and regulatory approvals [115][116]. Cash Position - The company had cash and cash equivalents of $3,616 million as of March 31, 2025, and expects these reserves to fund operations for at least 12 months [108][116]. - Non-cash expenses included stock-related expenses of $76 million in Q1 2025, compared to $20 million in Q1 2024 [112]. - The net change in operating assets and liabilities provided cash of $432 million in Q1 2025, compared to $299 million in Q1 2024, mainly due to a decrease in vendor advances of $636 million [113]. Licensing Agreements - The company has entered into exclusive license agreements with Cedars for patent rights related to cancer treatment and other medical applications [123][125].
Kairos Pharma, Ltd.(KAPA) - 2025 Q1 - Quarterly Report