10-Q

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 March 31, 2023

☐ 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 May 10, 2023 was 1,692,175.

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.	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	30
Item 4	Controls and Procedures.	30
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	31
Item 1A.	Risk Factors.	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	31
Item 3.	Defaults Upon Senior Securities.	31
Item 4.	Mine Safety Disclosures.	31
Item 5.	Other Information.	31
Item 6.	Exhibits.	32

PART 1. - FINANCIAL INFORMATION

Item 1. Financial Statements.

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Financial Statements

(Unaudited)

For the nine months ended March 31, 2023

(expressed in US dollars unless otherwise noted)

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Balance Sheets

(In thousands, except par value amounts)


			March 31, 2023			June 30, 2022
	Note		$			$
			(unaudited)
Assets
Current assets
Cash and cash equivalents				3,045			11,780
Prepaid expenses, deposits and other				821			1,478
Clinical trial deposit		3		2,150			—
Total current assets				6,016			13,258
Clinical trial deposit		3		—			2,600
Property and equipment, net		4		724			90
Total assets				6,740			15,948
Liabilities
Current liabilities
Accounts payable and accrued liabilities				2,610			3,269
Related party payables		5		180			721
Total current liabilities				2,790			3,990
Milestone payment liability		8		164			163
Total liabilities				2,954			4,153
Stockholders' equity
Preferred stock
Authorized
5,000 shares, $0.001 par value
Issued and outstanding
279 Series A shares at March 31, 2023 (June 30, 2022 – 279)		6		279			279
14 Series C shares at March 31, 2023 (June 30, 2022 – 17)		6		10,366			12,275
Common stock
Authorized
5,500 shares at March 31, 2023 (June 30, 2022 - 5,500), $0.001 par value
Issued and outstanding
1,692 issued at March 31, 2023 (June 30, 2022 – 1,311)		6		2			1
Additional paid-in capital		6		141,156			135,575
Accumulated deficit				(148,038	)		(136,356	)
Accumulated other comprehensive income				21			21
Total stockholders’ equity				3,786			11,795
Total liabilities and stockholders’ equity				6,740			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.

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Operations

(Unaudited)

(In thousands, except per share amounts)


				Three months ended March 31,								Nine months ended March 31,
	Note			2023				2022				2023				2022
Expenses
Research and development			$		2,005		$		3,474		$		7,235		$		11,169
General and administrative					1,297				1,884				4,212				6,055
					(3,302	)			(5,358	)			(11,447	)			(17,224	)
Other income (loss)
Foreign exchange					(1	)			1				10				6
Interest, net					39				1				123				3
					38				2				133				9
Net loss for the period					(3,264	)			(5,356	)			(11,314	)			(17,215	)
Computation of basic loss per share
Net loss for the period					(3,264	)			(5,356	)			(11,314	)			(17,215	)
Series A Preferred cash dividend		6			(2	)			(2	)			(6	)			(6	)
Series C Preferred stock dividend		6			—				—				(362	)			(2,462	)
Net loss for the period attributable to common stockholders			$		(3,266	)	$		(5,358	)	$		(11,682	)	$		(19,683	)
Basic and fully diluted loss per share			$		(1.94	)	$		(5.45	)	$		(7.32	)	$		(22.39	)
Basic and fully diluted weighted average number of shares					1,681				983				1,596				879

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

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Stockholders’ Equity

(Unaudited)

For the nine months ended March 31, 2023

(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

Conversion of Series C Preferred stock to common stock		3		—		131		—		(131	)		—			—
Issuance of shares for services		16		—		110		—		—			—			110
Stock option expense		—		—		290		—		—			—			290
Restricted stock unit expense		—		—		54		—		—			—			54
Series A Preferred cash dividend		—		—		—		—		—			(2	)		(2	)
Loss for the period		—		—		—		—		—			(3,264	)		(3,264	)
Balance - March 31, 2023		1,692		2		141,156		21		10,645			(148,038	)		3,786

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

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Statements of Stockholders’ Equity

(Unaudited)

For the nine months ended March 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, 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		—