Nkarta(NKTX) - 2022 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section details Nkarta, Inc.'s financial performance and position, including statements, notes, management's analysis, market risk, and controls Item 1. Financial Statements This section presents Nkarta, Inc.'s unaudited condensed financial statements for the period ended March 31, 2022, including balance sheets, statements of operations and comprehensive loss, stockholders' equity, and cash flows, along with detailed notes. The company reported an increased net loss and accumulated deficit, but maintains sufficient liquidity for the next 12 months, bolstered by a recent public offering Condensed Balance Sheets Presents Nkarta's financial position, detailing assets, liabilities, and equity as of March 31, 2022, and December 31, 2021 | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Total Assets | $306,299 | $273,903 | | Total Liabilities | $77,593 | $22,936 | | Total Stockholders' Equity | $228,706 | $250,967 | | Operating Lease Right-of-Use Assets | $65,469 | $11,678 | | Operating Lease Liabilities, net of current portion | $66,740 | $9,975 | Condensed Statements of Operations and Comprehensive Loss Details Nkarta's financial performance, including operating expenses, net loss, and net loss per share for the three months ended March 31, 2022 and 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Research and development | $19,568 | $13,539 | | General and administrative | $6,530 | $5,942 | | Total operating expenses | $26,098 | $19,481 | | Net loss | $(25,987) | $(19,373) | | Net loss per share, basic and diluted | $(0.79) | $(0.59) | Condensed Statements of Stockholders' Equity Outlines changes in Nkarta's stockholders' equity, including net loss and share-based compensation, for the period ending March 31, 2022 | Metric | December 31, 2021 (in thousands) | March 31, 2022 (in thousands) | | :-------------------------------- | :------------------------------- | :---------------------------- | | Total Stockholders' Equity | $250,967 | $228,706 | | Net Loss | $(204,096) (Accumulated Deficit) | $(230,083) (Accumulated Deficit) | | Share-based compensation expense | N/A | $4,097 | | Unrealized loss on short-term investments | $(150) (Accumulated Other Comprehensive Loss) | $(606) (Accumulated Other Comprehensive Loss) | Condensed Statements of Cash Flows Summarizes Nkarta's cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2022 and 2021 | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | $(18,258) | $(14,647) | | Net cash used in investing activities | $(1,026) | $(20,194) | | Net cash provided by financing activities | $79 | $757 | | Net decrease in cash and cash equivalents | $(19,205) | $(34,084) | | Cash, cash equivalents, and restricted cash end of period | $43,709 | $63,021 | Notes to Unaudited Condensed Financial Statements Provides detailed explanations and additional information supporting the unaudited condensed financial statements Note 1. Organization and Description of Business Describes Nkarta's business as a biopharmaceutical company developing NK cell therapies and its financial status, including accumulated deficit and liquidity - Nkarta, Inc. is a biopharmaceutical company focused on developing engineered natural killer ("NK") cells to treat cancer, aiming for off-the-shelf NK cell therapy product candidates[30] - The company has incurred significant operating losses since inception, with an accumulated deficit of $230.1 million as of March 31, 2022[31] - Management believes current cash, cash equivalents, restricted cash, and short-term investments ($219.1 million as of March 31, 2022) will provide sufficient funds for at least twelve months[31][32] - On April 28, 2022, the company issued and sold 15,333,334 shares of common stock in a public offering, generating approximately $215.5 million in net proceeds[33] Note 2. Basis of Presentation and Significant Accounting Policies Explains the basis of financial statement preparation, impact of COVID-19, and the use of estimates in Nkarta's accounting policies - Unaudited condensed financial statements are prepared in accordance with U.S. GAAP for interim financial information, including normal and recurring adjustments[34] - The extent of the COVID-19 pandemic's impact on operational and financial performance is uncertain, but the CARES Act had no impact on the 2021 income tax provision[36] - Management uses estimates and assumptions (e.g., preclinical studies, fair value, share-based compensation, income taxes) based on historical experience and current events; actual results may differ[37] Note 3. Net Loss Per Share Details the calculation of Nkarta's net loss per share, including the impact of potentially anti-dilutive securities | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss | $(25,987) | $(19,373) | | Weighted average shares used to compute net loss per share, basic and diluted | 32,992,582 | 32,739,610 | | Net loss per share, basic and diluted | $(0.79) | $(0.59) | - Potentially dilutive securities (common stock options, restricted stock units, unvested common stock) were excluded from diluted net loss per share calculation as their inclusion would be anti-dilutive[38][40] Note 4. Fair Value of Financial Instruments Presents the fair value hierarchy and valuation of Nkarta's financial instruments, including money market funds and debt securities | Category | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Money market funds (Level 1) | $35,047 | $57,018 | | Corporate debt securities (Level 2) | $97,965 | $111,466 | | Commercial paper (Level 2) | $21,287 | $21,272 | | U.S. Government securities (Level 2) | $56,094 | $44,534 | | Total Fair Value | $210,393 | $234,290 | - Unrealized losses on available-for-sale securities ($610 thousand as of March 31, 2022) were caused by fluctuations in market value and interest rates, not credit risk[45][46] Note 5. Balance Sheet Components Provides a breakdown of specific balance sheet items, including prepaid expenses, property and equipment, and accrued liabilities | Asset/Liability | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Prepaid expenses and other current assets | $6,261 | $7,692 | | Property and equipment, net | $14,053 | $12,856 | | Accrued and other current liabilities | $6,321 | $9,347 | - Depreciation and amortization expense was $0.6 million for Q1 2022, up from $0.3 million for Q1 2021[49] Note 6. Leases Details Nkarta's lease obligations, including rent expense, remaining lease term, and future minimum lease payments - Rent expense increased to $2.6 million for Q1 2022 from $0.6 million for Q1 2021[51] - The weighted-average remaining lease term was 11.5 years as of March 31, 2022[51] | Year ending December 31, | Amount (in thousands) | | :----------------------- | :-------------------- | | 2022 (remaining nine months) | $4,144 | | 2023 | $9,278 | | 2024 | $9,269 | | 2025 | $9,533 | | 2026 | $9,877 | | 2027 and thereafter | $73,553 | | Total undiscounted future minimum lease payments | $115,654 | | Total operating lease liabilities | $69,245 | - Entered into an Additional Lease Agreement in July 2021 for corporate office, manufacturing, and laboratory space, with rent commencing in January 2022, including tenant improvement allowances up to approximately $25.2 million[56] Note 7. Commitments & Contingencies Outlines Nkarta's indemnification obligations for officers and directors and its letter of credit agreements - The company indemnifies its officers and directors for certain events, with potential unlimited future payments, but limited by a director and officer insurance policy[59] - As of March 31, 2022, the company has $2.1 million in letter of credit agreements as collateral for its corporate headquarters' operating lease and an additional facility[60] Note 8. CRISPR Collaboration Agreement Describes Nkarta's research collaboration with CRISPR Therapeutics AG for co-developing CAR-NK and NK+T product candidates - On May 5, 2021, Nkarta entered into a research collaboration agreement with CRISPR Therapeutics AG to co-develop and co-commercialize engineered CAR-NK and NK+T product candidates[61] - Nkarta and CRISPR share equally in all research and development costs and potential profits worldwide related to Collaboration Products[62] - Nkarta received licenses from CRISPR for two CRISPR-Cas9 gene editing targets and will receive licenses for up to three more for its own NK cell products, with potential future milestone and royalty payments[61][63] - As of March 31, 2022, Nkarta had a $1.0 million receivable under the research cost sharing provision from the CRISPR Agreement[62] Note 9. Share-Based Compensation Details Nkarta's share-based compensation plans, expenses, and stock option activity for the reporting period - The 2020 Performance Incentive Plan authorizes 5,945,002 shares for awards, with an automatic annual increase[65] | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Research and development | $1,855 | $1,570 | | General and administrative | $2,242 | $1,777 | | Total share-based compensation | $4,097 | $3,347 | - Total unrecognized compensation cost for unvested stock options was $38.9 million (expected over 2.51 years) and for unvested restricted stock awards was $2.6 million (expected over 3.79 years) as of March 31, 2022[71] | Stock Option Activity (Q1 2022) | Number of Shares | | :------------------------------ | :--------------- | | Outstanding at December 31, 2021 | 4,204,686 | | Granted | 1,007,090 | | Exercised | (21,067) | | Forfeited | (120,342) | | Outstanding at March 31, 2022 | 5,070,367 | | Exercisable at March 31, 2022 | 1,784,571 | Note 10. Income Taxes Explains Nkarta's income tax position, noting no provision for income taxes and a full valuation allowance against deferred tax assets - No provision for income taxes was recorded for the three months ended March 31, 2022, or 2021[72] - The company's deferred tax assets are fully offset by a valuation allowance[72] Note 11. Subsequent Events Reports on significant events occurring after the balance sheet date, specifically a public offering of common stock - On April 28, 2022, Nkarta issued and sold 15,333,334 shares of common stock in an underwritten public offering at $15.00 per share[73] - The total net proceeds to the company from the offering were approximately $215.5 million[73] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides an overview of Nkarta's financial condition and operational results, highlighting its focus on developing allogeneic CAR-NK cell therapies with co-lead candidates NKX101 and NKX019 in Phase 1 trials. The company continues to incur significant losses due to extensive R&D activities and public company costs, but a recent $215.5 million public offering has bolstered its liquidity. The COVID-19 pandemic has caused operational disruptions and delays in clinical trials and manufacturing. The discussion also covers critical accounting policies, market risk, and the company's status under the JOBS Act Overview Provides a high-level summary of Nkarta's business, product candidates, financial performance, recent public offering, and COVID-19 impact - Nkarta is a biopharmaceutical company developing allogeneic, off-the-shelf engineered natural killer ("NK") cell therapies to treat cancer[76] - Co-lead product candidates, NKX101 and NKX019, are in ongoing Phase 1 clinical trials for relapsed/refractory acute myeloid leukemia/higher-risk myelodysplastic syndromes and B-cell malignancies, respectively[76][78][79] - The company incurred a net loss of $26.0 million for the three months ended March 31, 2022, and an accumulated deficit of $230.1 million as of that date, expecting continued significant losses[81] - On April 28, 2022, Nkarta issued and sold 15,333,334 shares of common stock in a public offering, generating approximately $215.5 million in net proceeds[84] - The COVID-19 pandemic has caused disruptions in supply, clinical trial conduct and enrollment, construction of the GMP manufacturing facility, and internal research efforts[85] Financial Operations Overview Describes the primary components of Nkarta's research and development, general and administrative expenses, and interest income - Research and development costs primarily include employee-related expenses, preclinical studies, clinical trials, manufacturing, and regulatory compliance, expensed as incurred[86][88] - General and administrative expenses consist mainly of salaries, share-based compensation for executive and administrative functions, legal fees, professional fees, and facility-related costs[92] - Interest income is derived from cash, cash equivalents, and short-term investments, adjusted for amortization of purchase premiums and accretion of discounts[94] Results of Operations Analyzes Nkarta's operating expenses and net loss for the three months ended March 31, 2022, compared to the prior year | Operating Expense | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | Change (in thousands) | | :------------------------ | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | | Research and development | $19,568 | $13,539 | $6,029 | | General and administrative | $6,530 | $5,942 | $588 | | Total operating expenses | $26,098 | $19,481 | $6,617 | | Net loss | $(25,987) | $(19,373) | $(6,614) | - The increase in R&D expenses was primarily due to higher personnel costs ($1.8 million), program costs for NKX101 and NKX019 ($2.9 million), and other internal research costs ($2.4 million), partially offset by $1.0 million in partner cost sharing from the CRISPR Agreement[96] - The increase in G&A expenses was mainly due to higher personnel costs ($0.8 million, including $0.5 million in share-based compensation) and other G&A expenses, partially offset by a $0.4 million decrease in legal expenses[97] Liquidity and Capital Resources Discusses Nkarta's cash position, recent capital raise, funding sufficiency, and material cash requirements from operating leases - As of March 31, 2022, Nkarta had $219.1 million in cash, cash equivalents, restricted cash, and short-term investments[99] - The company received approximately $215.5 million in net proceeds from an underwritten public offering completed on April 28, 2022[101] - Management believes current financial resources are sufficient to fund operations for at least 12 months from the report's issuance date[104] | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | $(18,258) | $(14,647) | | Net cash used in investing activities | $(1,026) | $(20,194) | | Net cash provided by financing activities | $79 | $757 | - Material cash requirements include total undiscounted future minimum operating lease payments of $115.7 million as of March 31, 2022, with $4.1 million remaining for 2022[58][112] Critical Accounting Policies and Significant Judgments and Estimates Identifies Nkarta's key accounting policies and estimates, including those for preclinical studies, lease liabilities, and share-based compensation - Key estimates and judgments include preclinical studies and clinical trial accruals, incremental borrowing rate for lease liability, and share-based compensation[119] - No significant changes in critical accounting policies and estimates occurred during the three months ended March 31, 2022[120] Recently Issued Accounting Pronouncements Directs readers to Note 2 for details on recently issued accounting pronouncements relevant to Nkarta's financial statements - Refer to Note 2 to the financial statements for information on recently issued accounting pronouncements[121] Indemnification Explains Nkarta's indemnification of officers and directors, noting no recorded liabilities due to minimal fair value - The company indemnifies its officers and directors for certain events, with no liabilities recorded as of March 31, 2022, or December 31, 2021, as the fair value is considered minimal[122] Segment Information States that Nkarta operates in a single reportable business segment - The company operates in one reportable business segment[123] JOBS Act Describes Nkarta's status as an "emerging growth company" and "smaller reporting company" under the JOBS Act and its reliance on associated exemptions - Nkarta is an "emerging growth company" and "smaller reporting company" under the JOBS Act[124][125] - The company irrevocably opted out of the extended transition period for complying with new or revised financial accounting standards[124] - Nkarta intends to rely on other JOBS Act exemptions, including not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act[124] Item 3. Quantitative and Qualitative Disclosures About Market Risk Nkarta is exposed to market risks from interest rate fluctuations, foreign currency exchange rates, and inflation. The company's investment strategy prioritizes liquidity and principal preservation, and a 10% change in interest rates is not expected to materially impact its investment portfolio. Foreign currency risk is currently unhedged, and inflation has not had a material effect on operations - The company's financial instruments are subject to interest rate risk, but a 10% change in interest rates would not have a material effect on the fair value of its investment portfolio as of March 31, 2022[127] - Nkarta is exposed to foreign currency exchange rate risk from international vendors but does not currently hedge this risk[128] - Inflation has not had a material effect on the company's results of operations during the periods presented[129] Item 4. Controls and Procedures Management, including the CEO and CFO, assessed the effectiveness of Nkarta's disclosure controls and procedures as of March 31, 2022, concluding they were effective at a reasonable assurance level. No material changes in internal control over financial reporting occurred during the quarter - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2022[130] - No changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[131] PART II. OTHER INFORMATION This section covers non-financial disclosures, including legal proceedings, risk factors, equity sales, defaults, and exhibits Item 1. Legal Proceedings Nkarta is not currently involved in any legal proceedings expected to materially impact its business. However, the company is facing ex parte reexaminations against certain licensed patents, including those related to its NKX101 product candidate, which are costly and could potentially narrow or invalidate its intellectual property rights - No claims or actions are currently pending against Nkarta that are likely to have a material adverse effect on its business, results of operations, financial condition, or growth prospects[134] - Third-party requests for ex parte reexamination have been filed against U.S. Patent Nos. 10,774,309 and 10,829,737, which relate to the NKX101 product candidate, and U.S. Patent No. 9,511,092[135] - These reexamination proceedings are time-consuming and costly, and could result in the narrowing or loss of rights under the relevant patents[135] Item 1A. Risk Factors This section outlines significant risks associated with investing in Nkarta's common stock, covering its financial position, business operations, manufacturing, intellectual property, commercialization, and stock market performance. Key risks include a limited operating history, substantial ongoing losses, the need for additional capital, the novel and complex nature of its CAR-NK cell technology, potential delays in clinical development, intense competition, reliance on third-party manufacturers, challenges in protecting intellectual property, and uncertainties regarding market acceptance and reimbursement for its product candidates Risks Related to our Financial Position Highlights financial risks for Nkarta, including limited operating history, significant ongoing losses, and the need for additional capital, exacerbated by the COVID-19 pandemic - Nkarta has a limited operating history and no products approved for commercial sale, making predictions about future success speculative[138] - The company has incurred significant operating losses since inception, with a net loss of $26.0 million for Q1 2022 and an accumulated deficit of $230.1 million as of March 31, 2022, and expects to continue incurring losses[139] - Additional capital will be required, which may cause dilution to stockholders, restrict operations, or necessitate relinquishing rights to product candidates[147][148] - The COVID-19 pandemic has adversely affected business operations, including supply chain disruptions, clinical trial delays (NKX101, NKX019), and increased costs[153] Risks Related to Our Business and Industry Addresses business and industry-specific risks, such as reliance on novel CAR-NK technology, lengthy clinical development, competition, and the need for organizational growth - Nkarta's business depends on the success of its novel CAR-NK cell technology platform, which faces significant challenges in development, commercialization, and manufacturing due to its novelty[159][161] - Clinical development is a lengthy, expensive, and uncertain process, with potential for substantial delays due to safety/efficacy issues, enrollment difficulties, or evolving regulatory requirements, especially for gene-edited therapies[169][170][172] - The business is highly dependent on the success of its co-lead product candidates, NKX101 and NKX019; failure of either could significantly impair development plans for other pipeline candidates[175][176] - Nkarta faces significant competition from academic institutions and other biopharmaceutical companies developing similar or alternative cellular immunotherapy product candidates[216] - The company needs to significantly increase the size of its organization and effectively manage growth, including attracting and retaining highly qualified management, clinical, and scientific personnel[217][219] Risks Related to Manufacturing Details manufacturing risks, including the complexity of cell therapy production, potential delays from process changes, reliance on third parties and sole suppliers, and challenges in commercial-scale freezing and thawing - The manufacturing process for genetically engineered human cells is novel, complex, and highly regulated, susceptible to product loss, failure, or variation[227][228] - Changes to the manufacturing process during development or after commercialization may require comparability studies and could significantly delay clinical development or commercialization[232] - Nkarta relies on third parties for manufacturing certain product candidates (NKX101) and critical materials (K562 cells, viral vectors), increasing risks of insufficient quantities or quality[234][235] - The company is reliant on a sole supplier (Miltenyi) for certain manufacturing steps and reagents, posing risks of supply disruptions[241] - Nkarta has not yet developed a validated methodology for freezing and thawing commercial-scale quantities of CAR-NK cells or demonstrated long-term stability, which could limit adoption and increase costs[250][251] Risks Related to Our Intellectual Property Covers intellectual property risks, including dependence on license agreements, potential for competitor products, challenges to existing patents, infringement claims, and changes in patent law - Nkarta's rights to key NK cell engineering platform components are dependent on a license agreement with the National University of Singapore and St. Jude Children's Research Hospital, which could be terminated[253] - If patent protection is not sufficiently robust, competitors could develop and commercialize products and technology similar or identical to Nkarta's[266] - Issued patents, even after issuance, may be challenged (e.g., ex parte reexaminations against NKX101-related patents), potentially narrowing, invalidating, or holding them unenforceable[270][272] - Claims of infringing third-party intellectual property rights would be costly and time-consuming, potentially leading to substantial damages or limiting commercialization[276][278] - Changes in U.S. or international patent law or their interpretation could decrease the certainty of obtaining patents and diminish their value[286][287] - The U.S. government could exercise certain rights (e.g., nonexclusive license, march-in rights, domestic manufacturing requirement) in technology developed under government-funded research, potentially limiting exclusive use[292][294] Risks Related to Commercialization Outlines commercialization risks, such as the need for marketing and sales capabilities, regulatory limitations, market acceptance, reimbursement uncertainties, and compliance with healthcare laws - If product candidates are approved, Nkarta will need to develop or secure marketing, sales, and distribution capabilities, which it currently lacks, to successfully commercialize them[296] - Approved product candidates, including NKX101 and NKX019, could be subject to regulatory limitations on use, labeling, marketing, and distribution, and may require post-approval clinical trials[297][298] - The commercial success of product candidates depends on market acceptance by physicians, patients, and third-party payors, which is uncertain[304] - Obtaining and maintaining adequate insurance coverage and reimbursement for product candidates, if approved, is crucial but uncertain, especially for novel cell therapies, and subject to increasing healthcare cost-containment efforts[308][309][310] - Healthcare reform initiatives (e.g., ACA) and other administrative and legislative proposals may harm Nkarta's business by controlling drug costs and restricting reimbursement[314][318][319] - Business operations and relationships are subject to evolving global privacy laws (e.g., GDPR, CCPA) and other healthcare fraud and abuse laws, which could expose the company to significant penalties[322][324][327] Risks Related to Our Common Stock Discusses risks specific to Nkarta's common stock, including price volatility, ownership concentration, potential for dilution, JOBS Act exemptions, and the absence of future cash dividends - The market price for Nkarta's common stock is likely to be highly volatile due to various factors, including clinical trial results, competitive products, and general economic conditions[328][329] - Concentration of ownership (42% as of May 9, 2022) among existing executive officers, directors, and principal stockholders may prevent new investors from influencing significant corporate decisions[332] - A significant portion of total outstanding shares is eligible to be sold into the market, which could cause the market price of common stock to drop significantly[334][335] - As an "emerging growth company" and "smaller reporting company," Nkarta relies on exemptions from certain disclosure and governance requirements, which may make its common stock less attractive to investors[336][338] - Severance and change in control agreements with executive officers may require substantial payments upon termination, potentially affecting financial condition[339] - The ability to use net operating loss carryovers and certain other tax attributes may be limited due to ownership changes under Sections 382 and 383 of the Code[341][342] - Nkarta does not expect to pay any cash dividends to common stockholders for the foreseeable future, with capital appreciation as the sole source of gain[343] General Risk Factors Addresses broader risks like potential acquisitions, litigation, increased public company costs, internal control failures, and cybersecurity threats - Any acquisitions or strategic collaborations may increase capital requirements, dilute stockholders, cause debt, or subject the company to other risks[353] - The company could be subject to securities class action litigation, which would result in substantial costs and diversion of management's attention[355] - Operating as a public company incurs significant increased costs, and management must devote substantial time to new compliance initiatives, including Sarbanes-Oxley Section 404[358][359] - Failure to maintain an effective system of internal control over financial reporting could lead to inaccurate financial results or fraud, eroding stockholder confidence[361] - Computer system interruptions or security breaches could significantly disrupt product development programs and business operations, leading to data loss or legal liabilities[365] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section confirms no unregistered sales of equity securities during the reporting period. Nkarta has utilized $50.8 million of its IPO net proceeds as of March 31, 2022, primarily for advancing product candidates, constructing its manufacturing facility, and general corporate purposes, with the remainder invested - There were no unregistered sales of equity securities during the period covered by this report[366] - As of March 31, 2022, Nkarta has used $50.8 million from the net proceeds of its July 2020 IPO[368] - Proceeds were primarily used to advance product candidates through preclinical studies and clinical trial programs, for the construction of its manufacturing facility, and for working capital and general corporate purposes[368] - The remaining IPO funds were invested in cash equivalents and other marketable securities[369] Item 3. Defaults Upon Senior Securities No defaults upon senior securities were reported for the period - No defaults upon senior securities were reported[371] Item 4. Mine Safety Disclosures This item is not applicable to Nkarta, Inc - Mine Safety Disclosures are not applicable[372] Item 5. Other Information No other information was reported for the period - No other information was reported[373] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, an amendment to the CRISPR Collaboration Agreement, officer certifications, and various Inline XBRL documents for financial data tagging - Key exhibits include the Amended and Restated Certificate of Incorporation (3.1), Amended and Restated Bylaws (3.2), and Amendment No. 1 to the Research Collaboration Agreement with CRISPR Therapeutics AG (10.1)[375] - Certifications of Principal Executive Officer (31.1) and Principal Financial Officer (31.2, 32) are included[375] - Inline XBRL Instance Document (101.INS) and other XBRL taxonomy extension documents (101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104) are filed[375] Signatures The report was signed on May 12, 2022, by Paul J. Hastings, Chief Executive Officer, and Nadir Mahmood, Chief Financial and Business Officer - The report was signed by Paul J. Hastings, Chief Executive Officer, and Nadir Mahmood, Chief Financial and Business Officer[381] - The signing date for the report was May 12, 2022[381]