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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2022

or

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-37823

 

Kintara Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

 

99-0360497

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

9920 Pacific Heights Blvd, Suite 150
San Diego, CA

 

92121

(Address of principal executive offices)

 

(zip code)

 

(858) 350-4364

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

Common Stock

 

KTRA

 

The Nasdaq Capital Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No

Number of shares of common stock outstanding as of February 13, 2023 was 1,675,305.

 

 


TABLE OF CONTENTS

 

 

 

 

 

Page No.

 

 

PART I. - FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements.

 

1

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

18

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk.

 

31

Item 4

 

Controls and Procedures.

 

31

 

 

PART II - OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings.

 

32

Item 1A.

 

Risk Factors.

 

32

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds.

 

32

Item 3.

 

Defaults Upon Senior Securities.

 

32

Item 4.

 

Mine Safety Disclosures.

 

32

Item 5.

 

Other Information.

 

32

Item 6.

 

Exhibits.

 

33

 

i


PART 1. - FINANCIAL INFORMATION

Item 1. Financial Statements.

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Financial Statements

(Unaudited)

For the six months ended December 31, 2022

(expressed in US dollars unless otherwise noted)

1


Kintara Therapeutics, Inc.

Condensed Consolidated Interim Balance Sheets

(In thousands, except par value amounts)

 

 

 

 

 

 

December 31,
2022

 

 

June 30,
2022

 

 

 

Note

 

 

$

 

 

$

 

 

 

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

4,874

 

 

 

11,780

 

Prepaid expenses, deposits and other

 

 

 

 

 

1,079

 

 

 

1,478

 

Clinical trial deposit

 

 

3

 

 

 

3,225

 

 

 

 

Total current assets

 

 

 

 

 

9,178

 

 

 

13,258

 

Clinical trial deposit

 

 

3

 

 

 

 

 

 

2,600

 

Property and equipment, net

 

 

4

 

 

 

739

 

 

 

90

 

Total assets

 

 

 

 

 

9,917

 

 

 

15,948

 

Liabilities

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

 

 

 

2,691

 

 

 

3,269

 

Related party payables

 

5,6

 

 

 

548

 

 

 

721

 

Total current liabilities

 

 

 

 

 

3,239

 

 

 

3,990

 

Milestone payment liability

 

 

8

 

 

 

80

 

 

 

163

 

Total liabilities

 

 

 

 

 

3,319

 

 

 

4,153

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Authorized

 

 

 

 

 

 

 

 

 

5,000 shares, $0.001 par value

 

 

 

 

 

 

 

 

 

Issued and outstanding

 

 

 

 

 

 

 

 

 

279 Series A shares at December 31, 2022 (June 30, 2022 – 279)

 

5,6

 

 

 

279

 

 

 

279

 

14 Series C shares at December 31, 2022 (June 30, 2022 – 17)

 

 

6

 

 

 

10,497

 

 

 

12,275

 

Common stock

 

 

 

 

 

 

 

 

 

Authorized

 

 

 

 

 

 

 

 

 

5,500 shares at December 31, 2022 (June 30, 2022 - 5,500), $0.001 par value

 

 

 

 

 

 

 

 

 

Issued and outstanding

 

 

 

 

 

 

 

 

 

1,673 issued at December 31, 2022 (June 30, 2022 – 1,311)

 

 

6

 

 

 

2

 

 

 

1

 

Additional paid-in capital

 

 

6

 

 

 

140,571

 

 

 

135,575

 

Accumulated deficit

 

 

 

 

 

(144,772

)

 

 

(136,356

)

Accumulated other comprehensive income

 

 

 

 

 

21

 

 

 

21

 

Total stockholders’ equity

 

 

 

 

 

6,598

 

 

 

11,795

 

Total liabilities and stockholders’ equity

 

 

 

 

 

9,917

 

 

 

15,948

 

Nature of operations, corporate history, going concern and management plans (note 1)

 

 

 

 

 

 

 

 

 

Subsequent events (note 9)

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

2


Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

 

 

 

 

 

 

Three months ended
December 31,

 

 

Six months ended
December 31,

 

 

 

Note

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

2,059

 

 

 

3,902

 

$

 

5,230

 

$

 

7,695

 

General and administrative

 

 

 

 

 

1,440

 

 

 

1,993

 

 

 

2,915

 

 

 

4,171

 

 

 

 

 

 

 

(3,499

)

 

 

(5,895

)

 

 

(8,145

)

 

 

(11,866

)

Other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange

 

 

 

 

 

 

 

 

1

 

 

 

11

 

 

 

5

 

Interest, net

 

 

 

 

 

45

 

 

 

1

 

 

 

84

 

 

 

2

 

 

 

 

 

 

 

45

 

 

 

2

 

 

 

95

 

 

 

7

 

Net loss for the period

 

 

 

 

 

(3,454

)

 

 

(5,893

)

 

 

(8,050

)

 

 

(11,859

)

Computation of basic loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

 

 

 

 

 

(3,454

)

 

 

(5,893

)

 

 

(8,050

)

 

 

(11,859

)

Series A Preferred cash dividend

 

 

6

 

 

 

(2

)

 

 

(2

)

 

 

(4

)

 

 

(4

)

Series C Preferred stock dividend

 

 

6

 

 

 

 

 

 

 

 

 

(362

)

 

 

(2,462

)

Net loss for the period attributable to common stockholders

 

 

 

 

 

(3,456

)

 

 

(5,895

)

$

 

(8,416

)

$

 

(14,325

)

Basic and fully diluted loss per share

 

 

 

 

 

(2.10

)

 

 

(6.07

)

$

 

(5.42

)

$

 

(17.30

)

Basic and fully diluted weighted average number of shares

 

 

 

 

 

1,643

 

 

 

971

 

 

 

1,554

 

 

 

828

 

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

3


Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Stockholders’ Equity

(Unaudited)

For the six months ended December 31, 2022

(In thousands)

 

 

 

Number
of
shares

 

 

Common
stock
$

 

 

Additional
paid-in
capital
$

 

 

Accumulated
other
comprehensive
income
$

 

 

Preferred
stock
$

 

 

Accumulated
deficit
$

 

 

Total stockholders'
equity
$

 

Balance - June 30, 2022

 

 

1,311

 

 

 

1

 

 

 

135,575

 

 

 

21

 

 

 

12,554

 

 

 

(136,356

)

 

 

11,795

 

Issuance of shares - net of issue costs

 

 

262

 

 

 

1

 

 

 

1,902

 

 

 

 

 

 

 

 

 

 

 

 

1,903

 

Stock option expense

 

 

 

 

 

 

 

 

518

 

 

 

 

 

 

 

 

 

 

 

 

518

 

Series A Preferred cash dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

Series C Preferred stock dividend

 

 

43

 

 

 

 

 

 

362

 

 

 

 

 

 

 

 

 

(362

)

 

 

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,596

)

 

 

(4,596

)

Balance - September 30, 2022

 

 

1,616

 

 

 

2

 

 

 

138,357

 

 

 

21

 

 

 

12,554

 

 

 

(141,316

)

 

 

9,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of Series C Preferred stock to common stock

 

 

42

 

 

 

 

 

 

1,778

 

 

 

 

 

 

(1,778

)

 

 

 

 

 

 

Additional shares issued on reverse stock split

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock option expense

 

 

 

 

 

 

 

 

436

 

 

 

 

 

 

 

 

 

 

 

 

436

 

Series A Preferred cash dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,454

)

 

 

(3,454

)

Balance - December 31, 2022

 

 

1,673

 

 

 

2

 

 

 

140,571

 

 

 

21

 

 

 

10,776

 

 

 

(144,772

)

 

 

6,598

 

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

4


Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Stockholders’ Equity

(Unaudited)

For the six months ended December 31, 2021

(In thousands)

 

 

 

Number
of
shares

 

 

Common
stock
$

 

 

Additional
paid-in
capital
$

 

 

Accumulated
other
comprehensive
income
$

 

 

Preferred
stock
$

 

 

Accumulated
deficit
$

 

 

Total stockholders'
equity
$

 

Balance - June 30, 2021

 

 

655

 

 

 

1

 

 

 

106,853

 

 

 

21

 

 

 

14,931

 

 

 

(111,225

)

 

 

10,581

 

Issuance of shares and warrants - net of issue costs

 

 

144

 

 

 

 

 

 

13,634

 

 

 

 

 

 

 

 

 

 

 

 

13,634

 

Conversion of Series C Preferred stock to common stock

 

 

29

 

 

 

 

 

 

1,256

 

 

 

 

 

 

(1,256

)

 

 

 

 

 

 

Exercise of 2020 Investor Warrants for cash

 

 

1

 

 

 

 

 

 

69

 

 

 

 

 

 

 

 

 

 

 

 

69

 

Exercise of pre-funded warrants for cash

 

 

96

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

5

 

Warrants issued for services

 

 

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

31

 

Stock option expense

 

 

 

 

 

 

 

 

811

 

 

 

 

 

 

 

 

 

 

 

 

811

 

Series A Preferred cash dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

Series C Preferred stock dividend

 

 

34

 

 

 

 

 

 

2,462

 

 

 

 

 

 

 

 

 

(2,462

)

 

 

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,966

)

 

 

(5,966

)

Balance - September 30, 2021

 

 

959

 

 

 

1

 

 

 

125,121

 

 

 

21

 

 

 

13,675

 

 

 

(119,655

)

 

 

19,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of Series C Preferred stock to common stock

 

 

21

 

 

 

 

 

 

874

 

 

 

 

 

 

(874

)

 

 

 

 

 

 

Warrants issued for services

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Stock option expense

 

 

 

 

 

 

 

 

830

 

 

 

 

 

 

 

 

 

 

 

 

830

 

Series A Preferred cash dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,893

)

 

 

(5,893

)

Balance - December 31, 2021

 

 

980

 

 

 

1

 

 

 

126,829

 

 

 

21

 

 

 

12,801

 

 

 

(125,550

)

 

 

14,102

 

 

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

5


Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

 

 

 

Six months ended
December 31,

 

 

 

 

 

 

2022

 

 

2021

 

 

 

Note

 

 

$

 

 

$

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

 

 

(8,050

)

 

 

(11,859

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

 

Amortization of clinical trial deposit

 

 

3

 

 

 

1,075

 

 

 

 

Depreciation of property and equipment

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