Kazia Therapeutics(KZIA) - 2026 Q2 - Quarterly Report

Financial Performance - The loss for Kazia Therapeutics Limited for the half-year ended 31 December 2025 was $12,552,490, compared to a loss of $10,453,811 for the same period in 2024, representing an increase of approximately 20%[4] - The total comprehensive loss for the half-year was $13,412,383, compared to $10,279,476 in the previous year, reflecting an increase of approximately 30%[29] - Kazia Therapeutics reported a loss after income tax of $12,552,490 for the half-year ended December 31, 2025, compared to a loss of $10,453,811 for the same period in 2024, representing an increase of approximately 20%[38] - The basic loss per share for December 2025 was (0.805) cents, a decrease from (2.459) cents in December 2024[77] Cash and Funding - Total cash resources at 31 December 2025 amounted to $69,459,980, a significant increase from $4,344,691 at 30 June 2025[6][30] - The company raised $46.51 million through a PIPE transaction on 2 December 2025, contributing to the current cash balance[9] - The company raised $65,248,181 through the issuance of shares during the half-year, significantly up from $16,387,602 in the previous half-year[32] - Cash and cash equivalents at the end of the financial half-year stood at $69,459,980, a substantial increase from $4,344,691 at the beginning of the period[32] - The net proceeds from the December 2025 PIPE were US$46.51 million after deducting offering expenses, with 4,530,854,000 ordinary shares sold at a price of $0.01 per share[54] - The company raised total proceeds of US$1,397,016 using the ATM facility from July to December 2025, with a remaining capacity of US$35.19 million[61] Research and Development - Research and development expenses for the half-year were $4,992,238, up from $4,282,101 in the previous year, indicating a year-over-year increase of approximately 17%[29] - Kazia Therapeutics expanded its clinical development of paxalisib into multiple breast cancer settings, including a Phase 1b study in metastatic triple-negative breast cancer[10] - The company reported an 86% reduction in overall tumor burden in a case treated with a combination immunotherapy/chemotherapy regimen plus paxalisib[13] Compliance and Governance - The company regained compliance with Nasdaq listing standards on 18 December 2025, ensuring continued trading of its ADSs[9] - The company continued to comply with Nasdaq listing requirements, regaining compliance with the minimum market value of listed securities[39] - The directors are responsible for preparing the half-year financial report in accordance with Australian Accounting Standards and the Corporations Act 2001[85] - The financial report must give a true and fair view of the Group's financial position as of December 31, 2025, and its performance for the half-year ended on that date[87] - The auditor's responsibility includes expressing a conclusion on the half-year financial report based on a review, not an audit, which is less comprehensive[89] Assets and Liabilities - The net current asset position improved to $45,612,689 as of 31 December 2025, compared to a net current liability of $9,119,727 at 30 June 2025[7] - The company had a net current asset position of $45,612,689 as of December 31, 2025, a significant improvement from a net current liability of $9,119,727 as of June 30, 2025[38] - Trade payables increased to $6,127,338 from $5,644,797, reflecting higher operational liabilities[49] - Employee benefits provisions increased to US$445,975 in December 2025 from US$426,786 in June 2025[57] - The foreign currency translation reserve showed a negative balance of US$1,633,404 in December 2025, compared to a negative balance of US$773,511 in June 2025[73] - The share-based payments reserve increased to US$6,737,860 in December 2025 from US$3,873,198 in June 2025[73] - The deferred tax liability associated with the licensing agreement remained unchanged at US$271,629 from June 2025 to December 2025[58] Employee Compensation - Kazia Therapeutics' employee share-based payment expense increased to $4,634,705 for the half-year, compared to $290,053 in the previous year[42] - The company incurred transaction costs of A$5,278,293 related to the PIPE, allocated between equity and derivative liability components[54]