Kintara Therapeutics(KTRA) - 2024 Q2 - Quarterly Report

PART I. - FINANCIAL INFORMATION Item 1. Financial Statements. This section presents Kintara Therapeutics, Inc.'s unaudited condensed consolidated interim financial statements for the period ended December 31, 2023, including balance sheets, statements of operations, statements of stockholders' equity, and statements of cash flows, along with comprehensive notes detailing the company's operations, accounting policies, and financial position Condensed Consolidated Interim Balance Sheets The company's financial position deteriorated significantly from June 30, 2023, to December 31, 2023, with substantial decreases in cash, total assets, and a shift to negative stockholders' equity, indicating a challenging financial outlook | Metric (in thousands) | December 31, 2023 | June 30, 2023 | Change | % Change | | :-------------------- | :------------------ | :------------ | :----- | :------- | | Cash and cash equivalents | $658 | $1,535 | $(877) | -57.1% | | Total current assets | $1,186 | $3,270 | $(2,084) | -63.7% | | Total assets | $1,885 | $3,979 | $(2,094) | -52.6% | | Total current liabilities | $1,870 | $3,082 | $(1,212) | -39.3% | | Total liabilities | $2,049 | $3,248 | $(1,199) | -36.9% | | Total stockholders' equity | $(164) | $731 | $(895) | -122.4% | Condensed Consolidated Interim Statements of Operations For the six months ended December 31, 2023, Kintara Therapeutics significantly reduced its net loss and expenses compared to the prior year, primarily driven by substantial decreases in research and development and general and administrative costs | Metric (in thousands, except per share) | Six months ended Dec 31, 2023 | Six months ended Dec 31, 2022 | Change | % Change | | :------------------------------------ | :---------------------------- | :---------------------------- | :----- | :------- | | Research and development | $1,970 | $5,230 | $(3,260) | -62.3% | | General and administrative | $2,011 | $2,915 | $(904) | -31.0% | | Total Expenses | $(3,981) | $(8,145) | $4,164 | -51.1% | | Net loss for the period | $(3,985) | $(8,050) | $4,065 | -50.5% | | Net loss attributable to common stockholders | $(4,162) | $(8,416) | $4,254 | -50.5% | | Basic and fully diluted loss per share | $(1.37) | $(5.42) | $4.05 | -74.7% | Condensed Consolidated Interim Statements of Stockholders' Equity (Deficiency) The company's stockholders' equity shifted from a positive balance of $731 thousand at June 30, 2023, to a deficiency of $(164) thousand by December 31, 2023, primarily due to the net loss for the period, partially offset by proceeds from common stock issuances | Metric (in thousands) | June 30, 2023 | December 31, 2023 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total stockholders' equity (deficiency) | $731 | $(164) | $(895) | | Accumulated deficit | $(151,375) | $(155,537) | $(4,162) | | Additional paid-in capital | $141,438 | $145,090 | $3,652 | | Common stock (shares) | 1,692 | 10,167 | 8,475 | | Preferred stock | $10,645 | $10,252 | $(393) | Condensed Consolidated Interim Statements of Cash Flows Kintara Therapeutics significantly reduced cash used in operating activities for the six months ended December 31, 2023, compared to the prior year, while increasing cash provided by financing activities, primarily through equity issuances, despite a net decrease in cash and cash equivalents | Metric (in thousands) | Six months ended Dec 31, 2023 | Six months ended Dec 31, 2022 | Change | | :-------------------- | :---------------------------- | :---------------------------- | :----- | | Net cash used in operating activities | $(3,434) | $(8,530) | $5,096 | | Net cash used in investing activities | $(20) | $(232) | $212 | | Net cash provided by financing activities | $2,577 | $1,856 | $721 | | Decrease in cash and cash equivalents | $(877) | $(6,906) | $6,029 | | Cash and cash equivalents – end of period | $658 | $4,874 | $(4,216) | Notes to Condensed Consolidated Interim Financial Statements The notes provide critical context to the financial statements, detailing the company's clinical-stage operations, significant accounting policies, and the substantial doubt about its ability to continue as a going concern. Key developments include the termination of VAL-083 development, the re-initiation of the REM-001 program with grant funding, and ongoing efforts to secure additional financing through equity issuances 1 Nature of operations, corporate history, and going concern and management plans Kintara Therapeutics is a clinical-stage drug development company focused on novel cancer therapies, particularly REM-001 for CMBC. The company faces substantial doubt about its ability to continue as a going concern due to recurring losses, negative operating cash flows, and an accumulated deficit, necessitating ongoing efforts to secure additional financing - Kintara Therapeutics is a clinical-stage drug development company focused on novel cancer therapies, with REM-001 for cutaneous metastatic breast cancer (CMBC) as its late-stage therapeutic candidate[23] - The company reported a loss of $3,985 thousand and negative cash flow from operations of $3,434 thousand for the six months ended December 31, 2023, with an accumulated deficit of $155,537 thousand and cash of $658 thousand as of December 31, 2023[29] - These financial circumstances indicate substantial doubt about the company's ability to continue as a going concern within one year, leading management to pursue various financing alternatives including new equity, ATM facility, debt, and strategic partnerships[29][30] 2 Significant accounting policies This section outlines the significant accounting policies applied in preparing the condensed consolidated interim financial statements, including the retrospective restatement for a 1:50 reverse stock split, adherence to U.S. GAAP, consolidation principles, and the use of estimates for items like equity instruments, milestone liabilities, and clinical trial accruals. It also clarifies the calculation of loss per share and the treatment of government assistance - A 1:50 reverse stock split was effected on November 10, 2022, with all common share and per share data retrospectively restated for all periods presented[33] - The financial statements are prepared in accordance with U.S. GAAP and include estimates for valuation of equity instruments, milestone payment liability, and clinical trial accruals, which could differ from actual results[34][37] - Government grants are recognized when there is reasonable assurance of meeting program requirements and receipt, offsetting research and development expenses[40] 3 Clinical trial deposit Kintara Therapeutics terminated the development of VAL-083 due to unfavorable preliminary topline results from its glioblastoma study, settling the remaining deposit with the CRO. Concurrently, the company made a new deposit for the re-initiated REM-001 clinical trial for CMBC - The company terminated the development of VAL-083 after preliminary topline results from its registrational study for glioblastoma did not perform better than current standards of care[43] - The remaining $1,075 thousand deposit for the VAL-083 study was offset against amounts owed to the CRO, with an additional final cost of $1,000 thousand[43] - A $114 thousand deposit was paid to a CRO for the management of the 15-patient study of REM-001 for cutaneous metastatic breast cancer (CMBC)[44] 4 Clinical trials grant Kintara Therapeutics was awarded a $2.0 million Small Business Innovation Research grant from the NIH to support the clinical development of REM-001 for CMBC, leading to the re-initiation of the 15-patient clinical trial. The grant is received as reimbursement for incurred expenditures - The company received a $2,000 thousand Small Business Innovation Research grant from the NIH to support the clinical development of REM-001 for cutaneous metastatic breast cancer (CMBC), to be received over two years[45] - The grant funding led to the re-initiation of the REM-001 15-patient clinical trial[45] - During the six months ended December 31, 2023, the company received $210 thousand in grant proceeds against research and development expenditures[45] 5 Property and equipment, net The net property and equipment decreased slightly to $699 thousand at December 31, 2023, from $709 thousand at June 30, 2023, reflecting minor additions and depreciation expense | Metric (in thousands) | June 30, 2023 | December 31, 2023 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Balance, Property and equipment, net | $709 | $699 | $(10) | | Additions | - | $20 | $20 | | Depreciation | - | $(30) | $(30) | 6 Related party transactions Dr. Brown, a principal of Valent Technologies, LLC, was terminated as CSO but remains a consultant. The company assigned all rights to VAL-083 patents back to Valent, retaining a 5% royalty on future net sales. Dividends on Series A Preferred Stock, held by Valent, continued to be recorded, and related party payables to officers and directors decreased - Dr. Brown, a principal of Valent Technologies, LLC, was terminated as Chief Scientific Officer due to cost-cutting measures but continues as a consultant[49] - The company assigned all rights to VAL-083 patents back to Valent, retaining a 5% royalty on Valent's subsequent commercialization of VAL-083[50][99] - Series A Preferred Stock dividends of $4 thousand were recorded for the six months ended December 31, 2023, payable to Valent[51] - Related party payables to officers and directors decreased from $298 thousand at June 30, 2023, to $148 thousand at December 31, 2023[52] 7 Stockholders' equity This section details changes in the company's equity, including preferred stock conversions and dividends, common stock issuances through ATM and equity line facilities, and activity related to stock options, restricted stock units, and warrants. Significant common stock issuances occurred in the latter half of 2023 and early 2024 to raise capital - The company issued 8,013 shares of common stock for $2,579 thousand in net proceeds under its ATM Facility from October 31 to December 31, 2023, with an additional $6,108 thousand raised from 28,870 shares from January 1 to February 12, 2024[61][64][94] - Series C Preferred Stock dividends of $173 thousand were recorded for the six months ended December 31, 2023, payable in common stock[55][140] - Stock option expense for the six months ended December 31, 2023, was $325 thousand, with $603 thousand in unrecognized compensation expense remaining[81] 8 Supplementary statement of cash flows information This section provides details on non-cash investing and financing transactions, including Series C Preferred Stock common stock dividends and subscriptions receivable, which are important for a complete understanding of the company's cash flow activities | Non-Cash Transaction (in thousands) | Six months ended Dec 31, 2023 | Six months ended Dec 31, 2022 | | :---------------------------------- | :---------------------------- | :---------------------------- | | Series C Preferred Stock common stock dividend | $173 | $362 | | Non-cash issue costs | — | $289 | | Subscriptions receivable | $103 | — | | Equipment additions reclassified from prepaid expenses | — | $447 | 9 Financial instruments The company's financial instruments, including cash, receivables, and payables, are measured at fair value. The milestone payment liability, related to the REM-001 program, is classified as a Level 3 liability, indicating the use of unobservable inputs in its valuation - The company's milestone payment liability, related to the REM-001 program, is measured using Level 3 inputs, reflecting the use of unobservable estimates and assumptions[91] | Milestone Payment Liability (in thousands) | June 30, 2023 | December 31, 2023 | Change | | :--------------------------------------- | :------------ | :---------------- | :----- | | Balance | $166 | $179 | $13 | | Change in fair value estimate | - | $13 | $13 | 10 Subsequent events Subsequent events include significant capital raises through the ATM facility, the final payment to a CRO following the termination of the VAL-083 study, the initiation of the REM-001 clinical study, and the assignment of VAL-083 rights to Valent with a retained royalty - From January 1, 2024, to February 12, 2024, the company raised an additional $6,108 thousand in net proceeds from the sale of 28,870 shares of common stock under its ATM Facility[94] - On January 9, 2024, a final payment of $400 thousand was made to the CRO following the termination agreement for the VAL-083 study[97] - On February 12, 2024, the company announced the initiation of a 15-patient clinical trial for REM-001 in CMBC patients[98] - On February 13, 2024, the company assigned all rights to VAL-083 patents to Valent, retaining a 5% royalty on Valent's subsequent commercialization[99] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. This section provides management's perspective on Kintara Therapeutics' financial condition and operational results for the period ended December 31, 2023. It highlights the company's focus on REM-001 development, the termination of VAL-083, recent financing activities, and ongoing concerns about liquidity and Nasdaq listing compliance Background Kintara Therapeutics, Inc. is a clinical-stage biopharmaceutical company dedicated to developing novel cancer therapies for unmet medical needs, with a primary focus on its lead candidate, REM-001, a photodynamic therapy for cutaneous metastatic breast cancer (CMBC) - Kintara Therapeutics is a clinical-stage biopharmaceutical company focused on developing new cancer therapies for patients with unmet medical needs[104][107] - The company's lead candidate is REM-001, a late-stage photodynamic therapy (PDT) for the treatment of cutaneous metastatic breast cancer (CMBC)[108] Recent Events Recent events include securing a $2.0 million NIH grant for the REM-001 CMBC study, receiving Nasdaq notices for non-compliance with stockholders' equity and minimum bid price requirements, terminating the VAL-083 development due to poor study results, and initiating a strategic alternatives review process - Kintara was awarded a $2.0 million NIH grant effective July 1, 2023, to fund the majority of expenses for the REM-001 CMBC 15-patient clinical study[110] - The company received Nasdaq notices for non-compliance with the Stockholders' Equity Requirement ($2,500,000 minimum) and the Minimum Bid Price Requirement ($1 per share minimum) (December 13, 2023), with deadlines to regain compliance by March 18, 2024, and June 10, 2024, respectively[110][117] - Preliminary topline results for VAL-083 from the GBM AGILE study did not show better performance than current standards of care, leading to the termination of VAL-083 development and a shift in focus to the REM-001 program[110] - In December 2023, the Board of Directors initiated a process to explore strategic alternatives to maximize stockholder value[117] Upcoming Clinical Milestones Following the receipt of the NIH grant, Kintara Therapeutics re-initiated its REM-001 program and expects to begin enrolling patients in the REM-001 Study in the first quarter of calendar year 2024 - The REM-001 program has been re-initiated, with patient enrollment in the REM-001 Study expected to begin in the first quarter of calendar year 2024[111] REM-001 REM-001 is a late-stage photodynamic therapy for cutaneous metastatic breast cancer (CMBC), showing an 80% complete response rate in prior studies. The program was re-initiated in July 2023 with a $2.0 million NIH grant, and a 15-patient Phase 2 study was initiated in February 2024 to optimize design for a future Phase 3 trial Background REM-001 is a photodynamic therapy (PDT) for rare, unmet medical needs, specifically cutaneous metastatic breast cancer (CMBC). It consists of a laser light source, light delivery device, and the SnET2 drug product. Previous Phase 2/3 studies in CMBC patients showed an approximately 80% complete response rate, indicating its promise for local tumor elimination with minimal systemic effects - REM-001 is a photodynamic therapy (PDT) for cutaneous metastatic breast cancer (CMBC), consisting of a laser light source, light delivery device, and the SnET2 drug product[112][115] - Analysis of data from four Phase 2/3 clinical studies in CMBC patients indicated an approximately 80% complete response rate in evaluable tumor sites treated with REM-001 Therapy[113] - REM-001 Therapy offers advantages such as high tumor site direction, minimal systemic effects, compatibility with other therapies, and repeatability[114] REM-001 Regulatory Filings Kintara received a 'Study May Proceed' letter from the FDA for its 15-patient REM-001 study in CMBC and has been granted Fast Track Designation for the program - The FDA granted a 'Study May Proceed' letter for the 15-patient REM-001 study in CMBC on August 9, 2022[118] - REM-001 has received Fast Track Designation (FTD) from the FDA for CMBC[118] VAL-083 Kintara terminated the development of VAL-083 after preliminary topline results from the GBM AGILE study showed no improvement over current glioblastoma standards of care. The company subsequently assigned all rights to VAL-083 patents to Valent, retaining a 5% royalty on future net sales - Development of VAL-083 was terminated due to preliminary topline results from the GBM AGILE study indicating it did not perform better than current standards of care for glioblastoma[119] - All rights, title, and interest in VAL-083 patents were assigned to Valent, with Kintara retaining a 5% royalty on Valent's subsequent commercialization of VAL-083[119] Corporate History Kintara Therapeutics, Inc. was formed in 2009, underwent a reverse acquisition in 2013, and merged with Adgero Biopharmaceuticals Holdings, Inc. in 2020, subsequently changing its name and listing on Nasdaq. The company operates through several wholly-owned subsidiaries focused on cancer drug development - Kintara Therapeutics, Inc. was formed in 2009, completed a reverse acquisition in 2013, and merged with Adgero Biopharmaceuticals Holdings, Inc. in 2020, leading to its current name and Nasdaq listing[120][121] - The company operates as the parent of several clinical-stage subsidiaries, including Del Mar (BC) and Adgero, focused on cancer drug development[121][105] Outstanding Securities As of February 12, 2024, Kintara Therapeutics had 39,038 thousand shares of common stock outstanding, along with various warrants, stock options, restricted stock units, and convertible Series C Preferred Stock, representing potential future dilution | Security Type | Quantity (in thousands) | | :-------------------------- | :---------------------- | | Common stock outstanding | 39,038 | | Common stock warrants | 700 | | Series C Preferred Stock warrants | 2,444 (convertible into 42 common shares) | | Stock options | 237 | | Restricted stock units | 66 | | Series C Preferred Stock | 13,668 (convertible into 235 common shares) | Selected Quarterly Information This section provides selected financial data from the balance sheets and statements of operations, highlighting key financial metrics and their changes over the reported periods Selected Balance Sheet Data Kintara's balance sheet data shows a significant decline in cash and total assets, and a shift to negative working capital and stockholders' equity from June 30, 2023, to December 31, 2023, reflecting ongoing financial challenges | Metric (in thousands) | December 31, 2023 | June 30, 2023 | Change | | :-------------------- | :------------------ | :------------ | :----- | | Cash and cash equivalents | $658 | $1,535 | $(877) | | Working capital | $(684) | $188 | $(872) | | Total assets | $1,885 | $3,979 | $(2,094) | | Total stockholders' equity | $(164) | $731 | $(895) | Selected Statement of Operations Data For both the three and six months ended December 31, 2023, Kintara Therapeutics reported significantly reduced net losses and lower research and development and general and administrative expenses compared to the prior year, leading to improved basic and fully diluted loss per share | Metric (in thousands, except per share) | 3 months ended Dec 31, 2023 | 3 months ended Dec 31, 2022 | 6 months ended Dec 31, 2023 | 6 months ended Dec 31, 2022 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Research and development | $111 | $2,059 | $1,970 | $5,230 | | General and administrative | $908 | $1,440 | $2,011 | $2,915 | | Net loss for the period | $(1,023) | $(3,454) | $(3,985) | $(8,050) | | Basic and fully diluted loss per share | $(0.24) | $(2.10) | $(1.37) | $(5.42) | Expenses, net of non-cash, share-based compensation expense – non-GAAP This non-GAAP disclosure provides a cash-basis view of research and development and general and administrative expenses, excluding non-cash, share-based compensation. For both the three and six months ended December 31, 2023, these net expenses were significantly lower than the prior year, reflecting reduced cash outlays for operations | Metric (in thousands) | 3 months ended Dec 31, 2023 | 3 months ended Dec 31, 2022 | 6 months ended Dec 31, 2023 | 6 months ended Dec 31, 2022 | | :-------------------------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Research and development net of non-cash, share-based compensation | $88 | $1,925 | $1,861 | $4,956 | | General and administrative net of non-cash, share-based compensation | $728 | $1,138 | $1,710 | $2,235 | Results of Operations Kintara Therapeutics significantly reduced its net loss and operating expenses for both the three and six months ended December 31, 2023, compared to the prior year, primarily due to lower clinical development costs, reduced non-cash share-based compensation, and decreased professional fees and personnel costs Comparison of the three months ended December 31, 2023, and December 31, 2022 For the three months ended December 31, 2023, Kintara Therapeutics saw a substantial reduction in net loss and expenses, driven by a 95% decrease in R&D and a 37% decrease in G&A, largely due to lower clinical development costs and reduced share-based compensation | Metric (in thousands) | Dec 31, 2023 | Dec 31, 2022 | Change ($) | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | :--------- | | Research and development | $111 | $2,059 | $(1,948) | -95% | | General and administrative | $908 | $1,440 | $(532) | -37% | | Net loss | $(1,023) | $(3,454) | $2,431 | -70.4% | - The decrease in R&D expenses was primarily due to lower clinical development costs for the GBM AGILE Study and reduced non-cash, share-based compensation, partially offset by $198 thousand in grant proceeds[131][132] - The reduction in G&A expenses was mainly attributed to lower non-cash, share-based compensation, decreased professional fees, and reduced personnel costs[133] Comparison of the six months ended December 31, 2023, and December 31, 2022 For the six months ended December 31, 2023, Kintara Therapeutics achieved a 50.5% reduction in net loss, driven by a 62% decrease in R&D expenses and a 31% decrease in G&A expenses, reflecting lower clinical development costs, reduced share-based compensation, and decreased personnel costs | Metric (in thousands) | Dec 31, 2023 | Dec 31, 2022 | Change ($) | Change (%) | | :-------------------- | :----------- | :----------- | :--------- | :--------- | | Research and development | $1,970 | $5,230 | $(3,260) | -62% | | General and administrative | $2,011 | $2,915 | $(904) | -31% | | Net loss | $(3,985) | $(8,050) | $4,065 | -50.5% | - The decrease in R&D expenses was primarily due to lower clinical development costs for the GBM AGILE Study and reduced non-cash, share-based compensation, partially offset by $210 thousand in grant proceeds[136][137] - The reduction in G&A expenses was mainly attributed to lower non-cash, share-based compensation and decreased personnel costs[139] - Preferred share dividends, including Series C Preferred stock dividends, decreased from $362 thousand in 2022 to $173 thousand in 2023[140] Liquidity and Capital Resources Kintara Therapeutics significantly improved its cash flow from operating activities for the six months ended December 31, 2023, while increasing cash from financing activities through equity sales and grant funding. However, the company still faces substantial doubt about its ability to continue as a going concern, necessitating ongoing efforts to secure additional funding Six months ended December 31, 2023, compared to the six months ended December 31, 2022 For the six months ended December 31, 2023, Kintara Therapeutics significantly reduced cash used in operating activities by 60% and increased cash provided by financing activities by 39%, primarily through ATM facility sales and the Lincoln Park Purchase Agreement | Cash Flow Activity (in thousands) | Dec 31, 2023 | Dec 31, 2022 | Change ($) | Change (%) | | :-------------------------------- | :----------- | :----------- | :--------- | :--------- | | Operating activities | $(3,434) | $(8,530) | $5,096 | -60% | | Investing activities | $(20) | $(232) | $212 | 100% | | Financing activities | $2,577 | $1,856 | $721 | 39% | - Net cash used in operating activities decreased due to a lower net loss and changes in working capital, including the use of clinical trial deposits and settlement of accounts payable[142] - Net cash provided by financing activities increased due to $2,476 thousand from ATM facility sales and $105 thousand from the Lincoln Park Purchase Agreement, along with $210 thousand in clinical grant funding[144] Going Concern and Management Plans Kintara Therapeutics faces substantial doubt about its ability to continue as a going concern due to recurring losses, negative operating cash flows, and an accumulated deficit. Management is actively pursuing various financing alternatives, including equity offerings, grant funding, and strategic partnerships, while also exploring strategic alternatives to maximize shareholder value - The company reported a loss of $3,985 thousand and negative cash flow from operations of $3,434 thousand for the six months ended December 31, 2023, with an accumulated deficit of $155,537 thousand and cash of $658 thousand[146] - Substantial doubt exists about the company's ability to continue as a going concern within one year, necessitating significant additional funding for clinical trials, R&D, and general operations[148] - Management is pursuing financing through the ATM Facility (raising an additional $6,108 thousand from Jan 1 to Feb 12, 2024), Lincoln Park Purchase Agreement, grant funding, new equity, and strategic partnerships, while also exploring strategic alternatives[147][149] Critical Accounting Policies and Estimates Kintara Therapeutics' critical accounting policies involve significant estimates for the fair value of financial instruments, particularly stock-based awards using the Black-Scholes model, and accruals for research and development expenses and clinical trials. These estimates require management judgment and are subject to potential material adjustments if actual results differ - The fair value of stock-based awards is estimated using the Black-Scholes option-pricing model, which relies on variables like expected volatility, exercise behavior, interest rates, and dividend yields, requiring significant management judgment[156] - Accruals for research and development expenses and clinical trials are estimated based on contract terms, discussions with personnel, and progress of trials, with adjustments made if actual results differ from estimates[158] Off-Balance Sheet Arrangements Kintara Therapeutics does not have any off-balance sheet arrangements - The company does not have any off-balance sheet arrangements[159] Item 3. Quantitative and Qualitative Disclosures About Market Risk. As a smaller reporting company, Kintara Therapeutics is not required to provide quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk as it is a smaller reporting company[160] Item 4. Controls and Procedures. Kintara Therapeutics' principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of December 31, 2023. There were no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[161] - No material changes in internal control over financial reporting occurred during the quarter ended December 31, 2023[163] PART II - OTHER INFORMATION Item 1. Legal Proceedings. Kintara Therapeutics is not currently a party to any legal proceedings, nor is any of its property subject to such proceedings - There are no legal proceedings to which the company is a party or any of its property is subject[166] Item 1A. Risk Factors. Kintara Therapeutics faces significant risks related to its non-compliance with Nasdaq's stockholders' equity and minimum bid price requirements. Failure to regain compliance by the respective deadlines could lead to delisting, reduced liquidity, and hinder the company's ability to raise additional capital - The company is not in compliance with Nasdaq's Stockholders' Equity Requirement ($2,500,000 minimum) and Minimum Bid Price Requirement ($1 per share minimum)[169] - Deadlines to regain compliance are March 18, 2024, for stockholders' equity and June 10, 2024, for the minimum bid price[170][171] - Failure to regain compliance could result in delisting from The Nasdaq Capital Market, which would negatively impact stock price, liquidity, and the ability to raise capital[172][173] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities. Kintara Therapeutics reported no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities during the period - There were no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities[174] Item 3. Defaults Upon Senior Securities. Kintara Therapeutics reported no defaults upon senior securities during the period - There were no defaults upon senior securities[175] Item 4. Mine Safety Disclosures. Mine safety disclosures are not applicable to Kintara Therapeutics - Mine safety disclosures are not applicable to the company[176] Item 5. Other Information. On February 13, 2024, Kintara Therapeutics assigned all rights to VAL-083 patents to Valent, granting Valent a non-exclusive, fully-paid, royalty-free, perpetual, worldwide, and non-transferable license, while retaining a 5% royalty on Valent's subsequent net sales of VAL-083 - On February 13, 2024, the company assigned all rights to VAL-083 patents to Valent, granting a non-exclusive, fully-paid, royalty-free, perpetual, worldwide, and non-transferable license[177] - Kintara Therapeutics is entitled to receive royalties from Valent's subsequent commercialization of VAL-083, equal to 5% of Valent Net Sales[177] Item 6. Exhibits. This section lists the exhibits filed or furnished as part of the Quarterly Report on Form 10-Q, including certifications, XBRL documents, and other required filings - The exhibit index includes certifications from the principal executive and financial officers (Sarbanes-Oxley Act Sections 302 and 906) and various Inline XBRL documents[181]