Kinnate Biopharma(KNTE) - 2022 Q2 - Quarterly Report

Financial Performance - The company has not generated any revenue since inception and does not expect to do so in the foreseeable future[100] - The consolidated net loss for the six months ended June 30, 2022, was $54.0 million, with an accumulated deficit of $197.1 million[93] - The company reported a net loss of $54.0 million for the six months ended June 30, 2022, compared to a net loss of $38.9 million for the same period in 2021[133][134] - The total net decrease in cash, cash equivalents, and restricted cash for the six months ended June 30, 2022, was $85.2 million, compared to a decrease of $197.1 million in 2021[132] - The company experienced a net decrease in working capital of $1.4 million during the six months ended June 30, 2022, primarily due to a decrease in accounts payable and accrued expenses[133] Cash and Investments - As of June 30, 2022, the company had cash and cash equivalents and short-term and long-term investments totaling $279.6 million, excluding $29.4 million at Kinnjiu[92] - The company anticipates that its current cash and cash equivalents will be sufficient to fund operations into early 2024[124] - Net cash used in operating activities for the six months ended June 30, 2022, was $44.6 million, compared to $30.9 million for the same period in 2021, reflecting a consolidated net loss of $54.0 million[133][134] - Net cash used in investing activities during the six months ended June 30, 2022, was $41.3 million, primarily due to purchases of investments totaling $92.5 million, partially offset by sales and maturities totaling $53.7 million[135] - Net cash provided by financing activities for the six months ended June 30, 2022, was $0.8 million, a significant decrease from $35.5 million in the same period in 2021[137][138] Expenses - The company expects significant increases in expenses and capital requirements as it advances its RAF and FGFR programs through clinical development[94] - Research and development expenses increased to $19.8 million for the three months ended June 30, 2022, up from $16.2 million in the same period of 2021, representing a 21.7% increase[114] - For the six months ended June 30, 2022, research and development expenses totaled $39.4 million, compared to $28.9 million in 2021, marking a 36.4% increase[114] - General and administrative expenses rose to $7.6 million for the three months ended June 30, 2022, compared to $5.3 million in 2021, an increase of 43.4%[115] - For the six months ended June 30, 2022, general and administrative expenses were $15.0 million, up from $10.1 million in 2021, reflecting a 48.5% increase[115] Clinical Development - The company initiated the Phase 1 clinical trial KN-8701 for KIN-2787 in May 2021, with dosing beginning in the second half of 2021[85] - KIN-3248, an FGFR inhibitor, received FDA clearance for its IND in January 2022, with the Phase 1 clinical trial initiated in the first quarter of 2022[86] Funding and Capital Requirements - The company has not generated any revenue to date and expects to require substantial additional capital to fund operations and product development[120] - The company completed its IPO on December 7, 2020, raising gross proceeds of $276.0 million from the sale of 13,800,000 shares at $20.00 per share[118] - The company has filed a shelf registration for an at-the-market offering to sell up to $150.0 million of common stock, but no shares have been issued to date[118] - Future funding requirements will depend on various factors, including the costs of clinical development and establishing a sales and marketing infrastructure[125] Operational Risks - The ongoing COVID-19 pandemic may impact the company's business operations and development timelines, with uncertainties remaining[97] - The company relies on third parties for the manufacture of its product candidates and does not own or operate any manufacturing facilities[91] Other Financial Information - Other income, net increased to $0.3 million for the three months ended June 30, 2022, compared to $0.1 million in 2021, a 200% increase[116] - As of June 30, 2022, the company had no debt outstanding, thus eliminating exposure to interest rate risk related to debt[144] - Inflation has not had a material effect on the company's financial results during the periods presented[145] - Foreign currency transaction gains and losses have not been material to the company's financial statements, with a limited number of contracts denominated in foreign currencies[147] - The company had no off-balance sheet arrangements during the periods presented[140]