Kineta(KA) - 2024 Q4 - Annual Report

Financial Performance - As of December 31, 2024, the company reported a net loss of $17.1 million, with an accumulated deficit of$182.9 million[685]. - The net loss attributable to Kineta, Inc. increased to $17.1 million for the year ended December 31, 2024, compared to a net loss of$14.1 million in 2023[714]. - The company did not generate any revenue for the year ended December 31, 2024, compared to $5.0 million in licensing revenues and$442,000 in collaboration revenues for the year ended December 31, 2023, resulting in a total revenue decrease of $5.4 million[713][715][716]. - Interest income decreased from$325,000 in 2023 to $111,000 in 2024, a decline of$214,000 due to lower balances in interest-bearing accounts[719]. - Cash used in operating activities for the year ended December 31, 2024 was $11.6 million, consisting of a net loss of$17.1 million, partially offset by noncash charges of $6.0 million[732]. - Cash used in operating activities for the year ended December 31, 2023 was$16.2 million, consisting of a net loss of $14.1 million, a change in other net operating assets and liabilities of$5.3 million, partially offset by noncash charges of $3.1 million[733]. Corporate Restructuring - The company completed a significant corporate restructuring, reducing its workforce by approximately 64$111 billion in 2023 and is forecast to reach $201 billion by 2028[680]. - The company is developing KVA12123, a VISTA blocking immunotherapy, with a potential market opportunity of$48 billion in 2027 for its initial target indications[681]. Funding and Cash Flow - The company has raised cash of $634,000 as of December 31, 2024, raising substantial doubt about its ability to continue as a going concern[687]. - Cash provided by financing activities was$6.3 million for the year ended December 31, 2024, primarily related to advances received from TuHURA of $5.995 million[735]. - Cash provided by financing activities for the year ended December 31, 2023 was$8.5 million, primarily related to $8.0 million in net proceeds from the Private Placement[736]. - The company has no commitments for future funding or additional capital other than the Private Placement[730]. Clinical Trials and Development - The ongoing Phase 1/2 clinical trial of KVA12123 is expected to complete enrollment by the end of the first quarter of 2025[674]. - Research and development expenses are expected to increase as the company advances its product candidates through clinical trials and seeks regulatory approvals[701]. - The company has entered into a Merger Agreement with TuHURA Biosciences, Inc., which includes a Clinical Trial Funding Agreement for up to$900,000 to fund research and development expenses[688][690]. Stock-Based Compensation - Stock-based compensation was $1.2 million for the year ended December 31, 2024, compared to$3.9 million for the year ended December 31, 2023[771]. - As of December 31, 2024, the company had $0.9 million of total unrecognized stock-based compensation related to stock options, expected to be recognized over a weighted-average period of 1.6 years[771]. - The company recognizes noncash stock-based compensation related to stock-based awards based on the fair value on the grant date using the Black-Scholes option pricing model[765]. Trading and Market Status - The company’s common stock was suspended from trading on The Nasdaq Capital Market and is now trading on the OTC Pink Market under the symbol "KANT"[694]. - As of December 31, 2024, the company had outstanding notes payable in an aggregate principal amount of$629,000 at an interest rate of 6%[737]. Other Financial Metrics - Total operating expenses decreased by $7.6 million, from$21.2 million in 2023 to $13.5 million in 2024, primarily due to a reduction in research and development expenses by 40$5.4 million[714][717]. - General and administrative expenses decreased by $4.0 million, or 33$12.1 million in 2023 to $8.1 million in 2024, mainly due to lower personnel costs[718]. - The change in fair value of rights from Private Placement resulted in a loss of$3.8 million for the year ended December 31, 2024, compared to a gain of $1.6 million in 2023[721]. - Interest expense was a credit of$138,000 for the year ended December 31, 2024, compared to an expense of $337,000 in 2023, primarily due to previously accrued vendor invoices not required to be paid[720].