Financial Performance - For the nine months ended September 30, 2025, the company reported a net loss of $23.3 million compared to a net loss of $15.7 million for the same period in 2024, reflecting an increase in operating losses [109]. - As of September 30, 2025, the company had an accumulated deficit of $134.4 million and cash and cash equivalents of $2.7 million [109][113]. - The company has not generated any revenue from product sales and does not expect to do so in the near future [125]. - The company has incurred significant operating losses since inception, with a net loss of $22.6 million for the year ended December 31, 2024 [109]. - The net loss attributable to common shareholders for the three months ended September 30, 2025, was $7.10 million, compared to a loss of $6.54 million in 2024, an increase of 8.4% [136]. - Net losses for the nine months ended September 30, 2025, and 2024, were $23.3 million and $15.7 million, respectively, with an accumulated deficit of $134.4 million as of September 30, 2025 [153]. - Stock-based compensation expense for the nine months ended September 30, 2025, was $4.3 million, contributing to the overall net loss [160]. Operating Expenses - Research and development expenses increased to $4.97 million for the three months ended September 30, 2025, compared to $2.95 million for the same period in 2024, representing a 68.5% increase [136]. - General and administrative expenses rose to $1.76 million for the three months ended September 30, 2025, up from $0.78 million in 2024, marking a 124.8% increase [138]. - Total operating expenses for the three months ended September 30, 2025, were $6.73 million, compared to $3.73 million in 2024, reflecting an increase of 80.4% [136]. - For the nine months ended September 30, 2025, research and development expenses totaled $14.48 million, up from $9.36 million in 2024, an increase of 54.7% [145]. - General and administrative expenses for the nine months ended September 30, 2025, were $9.15 million, compared to $2.60 million in 2024, indicating a 250.0% increase [147]. Financing Activities - The company completed a private placement on June 2, 2025, raising approximately $12.6 million by issuing 4,759,309 shares of common stock and warrants [114]. - The company entered into a Secured Promissory Note and Loan Agreement on October 27, 2025, for up to $3 million to support working capital [122]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $13.4 million, including $12.1 million from the issuance of common stock [163]. - The company raised approximately $41.6 million through preferred stock sales and $36.0 million through convertible notes since inception [155]. - The company issued 4,759,309 shares of common stock in a private placement for an aggregate offering amount of $12.6 million on June 2, 2025 [157]. Product Development - The company initiated a Phase 3 trial for its lead product candidate IFx-2.0 in June 2025, targeting advanced or metastatic Merkel cell carcinoma patients [105]. - The company is planning to investigate TBS-2025 in a randomized Phase 2 trial for mutated NPM1 acute myeloid leukemia [106]. - The company expects to incur significant pre-commercialization and commercialization expenses if it obtains marketing approval for any product candidate [110]. - The company plans to substantially increase research and development expenses in the foreseeable future to support ongoing product development [128]. Acquisitions and Mergers - The company acquired rights to TBS-2025, a novel VISTA-inhibiting monoclonal antibody, through the acquisition of Kineta, Inc. on June 30, 2025 [106]. - The Kineta acquisition was completed on June 30, 2025, through a cash and stock transaction, with Kineta becoming a wholly-owned subsidiary [177]. - Each share of Kineta was converted into the right to receive approximately 0.185298 shares of common stock, totaling about 2,868,169 shares [178]. - Goodwill and other intangible assets related to the Kineta Merger were recorded on the balance sheet as of September 30, 2025 [180]. - Indefinite-lived intangible assets from acquired IPR&D will not be amortized until regulatory approval is received [181]. - A third-party valuation firm will assist in valuing the acquired IPR&D, which has significant measurement uncertainty [182]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $2.7 million, with an additional $1.5 million received from a bridge loan in October 2025 [154]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $22.1 million, primarily due to a net loss of $23.3 million [160]. - The company expects to incur additional costs associated with operating as a public company and anticipates needing substantial additional funding for development programs [165]. Market Risks - The company is exposed to market risks, including interest rate and inflation risks, but does not believe inflation has materially affected operations [186][188].
Kintara Therapeutics(KTRA) - 2026 Q1 - Quarterly Report