Kiora Pharmaceuticals(US:KPRX)2025-08-08 11:01PART I - FINANCIAL INFORMATION Item 1. Financial Statements The company's financial statements show decreased total assets due to cash used in operations and a net loss for H1 2025, contrasting with a net income in H1 2024 which included significant collaboration revenue Condensed Consolidated Balance Sheets Total assets decreased to $31.9 million as of June 30, 2025, driven by a reduction in cash and short-term investments Condensed Consolidated Balance Sheet Highlights (unaudited) | Balance Sheet Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Current Assets | | | | Cash and Cash Equivalents | 1,028,324 | 3,792,322 | | Short-Term Investments | 19,637,812 | 22,999,760 | | Total Current Assets | 24,737,255 | 29,706,012 | | Total Assets | 31,945,683 | 36,484,484 | | Current Liabilities | | | | Total Current Liabilities | 3,185,982 | 6,008,713 | | Total Liabilities | 9,818,207 | 10,724,708 | | Total Stockholders' Equity | 22,127,476 | 25,759,776 | Condensed Consolidated Statements of Operations The company reported a $4.3 million net loss for H1 2025, a significant shift from an $11.2 million net income in H1 2024, due to the recognition of $16.0 million in collaboration revenue in the prior year Condensed Consolidated Statements of Operations Highlights (unaudited) | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | — | 20,000 | — | 16,020,000 | | Research and Development | 2,590,489 | 2,048,665 | 5,122,376 | 3,732,877 | | Collaboration and Research Credits | (1,685,917) | (1,141,985) | (3,652,040) | (1,332,538) | | Operating (Loss) Income | (2,396,197) | (2,544,887) | (4,726,550) | 10,677,207 | | Net (Loss) Income | (2,152,459) | (2,221,646) | (4,345,439) | 11,231,561 | | Net (Loss) Income per Share - Basic | (0.54) | (0.53) | (1.10) | 3.19 | Condensed Consolidated Statements of Cash Flows Net cash used in operations was $6.5 million for H1 2025, a reversal from cash provided in H1 2024, which had benefited from a large upfront payment Condensed Consolidated Statements of Cash Flows Highlights (unaudited, Six Months Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | (6,507,633) | 9,891,416 | | Net Cash Provided by (Used in) Investing Activities | 3,336,954 | (21,224,904) | | Net Cash Provided by Financing Activities | 265,359 | 15,498,155 | | Net (Decrease) Increase in Cash | (2,763,595) | 4,120,622 | Notes to Condensed Consolidated Financial Statements The company is a clinical-stage pharmaceutical firm with sufficient cash to fund operations into late 2027, supported by key collaboration agreements and a new credit facility - The company is a clinical-stage specialty pharmaceutical company focused on developing and commercializing therapies for ophthalmic diseases23 - As of June 30, 2025, the company had $1.0 million in cash and cash equivalents and $19.6 million in short-term investments, and anticipates having sufficient cash to fund planned operations into late 202728 - In May 2025, the company entered into an exclusive option agreement with Senju Pharmaceutical, receiving a nonrefundable upfront payment of $1.25 million for the rights to KIO-301 in key Asian countries8384 - In January 2024, the company entered a license agreement with Théa Open Innovation (TOI) for KIO-301, recognizing a $16.0 million upfront payment as revenue in the first quarter of 20248687 - In March 2025, the company established a $10.0 million revolving line of credit with UBS, secured by its marketable securities104 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses its focus on ophthalmic disease treatments, key partnerships, and financial results, highlighting increased R&D spending on advancing clinical trials and a cash runway into late 2027 Executive Summary Kiora is advancing its lead ophthalmic candidates, KIO-301 and KIO-104, through Phase 2 trials supported by strategic partnerships and sufficient funding into late 2027 - KIO-301 is a potential vision-restoring small molecule designed for patients with inherited and age-related degenerative retinal diseases, such as Retinitis Pigmentosa119 - The company has a strategic development and commercialization agreement with TOI for KIO-301, which included a $16 million upfront payment and potential for up to $285 million in milestones plus royalties121 - In May 2025, Kiora entered an exclusive option agreement with Senju for KIO-301 development and commercialization rights in key Asian markets, receiving a $1.25 million upfront payment124 - The ABACUS-2 Phase 2 clinical trial for KIO-301 and a Phase 2 trial for KIO-104 in retinal inflammation both began enrollment in the second quarter of 2025122125 Results of Operations The H1 2025 net loss was driven by the absence of a large 2024 collaboration payment, while increased R&D expenses from clinical trial activities were largely offset by partner reimbursements Comparison of Operations for the Three Months Ended June 30 | Metric | 2025 ($) | 2024 ($) | Change ($) | | :--- | :--- | :--- | :--- | | Research and Development | 2,590,489 | 2,048,665 | 541,825 | | Collaboration and Research Credits | (1,685,917) | (1,141,985) | (543,932) | | Net (Loss) Income | (2,152,459) | (2,221,646) | 69,187 | Comparison of Operations for the Six Months Ended June 30 | Metric | 2025 ($) | 2024 ($) | Change ($) | | :--- | :--- | :--- | :--- | | Total Revenue | — | 16,020,000 | (16,020,000) | | Research and Development | 5,122,376 | 3,732,877 | 1,389,500 | | Collaboration and Research Credits | (3,652,040) | (1,332,538) | (2,319,502) | | Net (Loss) Income | (4,345,439) | 11,231,561 | (15,577,000) | Liquidity and Capital Resources With approximately $20.6 million in cash and investments, the company has sufficient funds for operations into late 2027, though future financing will be required for long-term plans - Based on cash and short-term investments of approximately $1.0 million and $19.6 million, respectively, at June 30, 2025, the company anticipates having sufficient cash to fund planned operations into late 2027142149 - Net cash used in operating activities for H1 2025 was $6.5 million, compared to $9.9 million provided by operations in H1 2024, with the difference primarily due to the $16 million TOI collaboration revenue in 2024143 - Net cash provided by financing activities decreased by $15.2 million year-over-year, as H1 2024 included $13.8 million in net proceeds from a private offering145 Quantitative and Qualitative Disclosures about Market Risk This item is not applicable for the reporting period - The company has indicated that Quantitative and Qualitative Disclosures About Market Risk are not applicable154 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective157 - No changes in internal control over financial reporting occurred during the three months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls158 PART II - OTHER INFORMATION Legal Proceedings As of June 30, 2025, the company is not currently a party to any legal proceedings - The company is not currently a party to any legal proceedings as of June 30, 2025159 Risk Factors There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - The company does not believe there have been any material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024160 Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities during the reporting period161 Other Information The company terminated its Employee Stock Purchase Plan (ESPP) effective April 30, 2025 - In May 2025, the company terminated its Employee Stock Purchase Plan (ESPP) effective as of April 30, 2025166 Exhibits This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including agreements and officer certifications