ktra-10q_20211231.htm

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, 2021

☐ 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 9, 2022 was 49,057,271.

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.	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	37
Item 4	Controls and Procedures.	37
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings.	38
Item 1A.	Risk Factors.	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	38
Item 3.	Defaults Upon Senior Securities.	38
Item 4.	Mine Safety Disclosures.	39
Item 5.	Other Information.	39
Item 6.	Exhibits.	40

PART 1. - FINANCIAL INFORMATION

Item 1. Financial Statements.

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Financial Statements

(Unaudited)

For the six months ended December 31, 2021

(expressed in US dollars unless otherwise noted)

Kintara Therapeutics, Inc.

Condensed Consolidated Interim Balance Sheets

(In thousands, except par value amounts)

			December 31, 2021			June 30, 2021
	Note		$			$
			(unaudited)
Assets
Current assets
Cash and cash equivalents				14,064			10,537
Prepaid expenses, deposits and other				934			756
Clinical trial deposit		4		—			500
Total current assets				14,998			11,793
Clinical trial deposit		4		2,600			1,600
Property, equipment and intangibles, net				120			150
Total assets				17,718			13,543
Liabilities
Current liabilities
Accounts payable and accrued liabilities				2,895			2,219
Related party payables		5		543			561
Total current liabilities				3,438			2,780
Milestone payment liability		3		178			182
Total liabilities				3,616			2,962
Stockholders' equity
Preferred stock
Authorized
5,000 shares, $0.001 par value
Issued and outstanding
279 Series A shares at December 31, 2021 (June 30, 2021 – 279)	5,6			279			279
17 Series C shares at December 31, 2021 (June 30, 2021 – 20)		6		12,522			14,652
Common stock
Authorized
175,000 shares at December 31, 2021 and June 30, 2021, $0.001 par value
49,013 issued at December 31, 2021 (June 30, 2021 – 32,740)		6		49			33
Additional paid-in capital		6		126,781			106,821
Accumulated deficit				(125,550	)		(111,225	)
Accumulated other comprehensive income				21			21
Total stockholders’ equity				14,102			10,581
Total liabilities and stockholders’ equity				17,718			13,543
Nature of operations, corporate history, and 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 December 31,						Six months ended December 31,
	Note		2021			2020			2021			2020
			$			$			$			$
Expenses
Research and development				3,902			2,584			7,695			3,941
General and administrative				1,993			2,794			4,171			4,329
Merger costs		3		—			—			—			500
In-process research and development		3		—			—			—			16,094
				(5,895	)		(5,378	)		(11,866	)		(24,864	)
Other income (loss)
Foreign exchange				1			(3	)		5			(2	)
Amortization of deferred loan costs				—			(25	)		—			(51	)
Interest, net				1			(7	)		2			(14	)
				2			(35	)		7			(67	)
Net loss for the period				(5,893	)		(5,413	)		(11,859	)		(24,931	)
Computation of basic loss per share
Net loss for the period				(5,893	)		(5,413	)		(11,859	)		(24,931	)
Deemed dividend recognized on beneficial conversion features of Series C Preferred stock issuance		6		—			—			—			(3,181	)
Series A Preferred cash dividend		6		(2	)		(2	)		(4	)		(4	)
Series B Preferred stock dividend		6		—			(4	)		—			(9	)
Series C Preferred stock dividend		6		—			—			(2,462	)		—
Net loss for the period attributable to common stockholders				(5,895	)		(5,419	)		(14,325	)		(28,125	)
Basic and fully diluted loss per share				(0.12	)		(0.22	)		(0.35	)		(1.34	)
Basic and fully diluted weighted average number of shares				48,529			24,845			41,405			20,976

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 three and 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 $			Stockholders' equity $
Balance - June 30, 2021		32,740		33		106,821		21		14,931			(111,225	)		10,581
Issuance of shares and warrants - net of issue costs		7,200		7		13,627		—		—			—			13,634
Conversion of Series C Preferred stock to common stock		1,467		1		1,255		—		(1,256	)		—			—
Exercise of 2020 Investor Warrants for cash		69		—		69		—		—			—			69
Exercise of pre-funded warrants for cash		4,800		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		1,698		2		2,460		—		—			(2,462	)		—
Loss for the period		—		—		—		—		—			(5,966	)		(5,966	)
Balance - September 30, 2021		47,974		48		125,074		21		13,675			(119,655	)		19,163

Conversion of Series C Preferred stock to common stock		1,039		1		873		—		(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		49,013		49		126,781		21		12,801			(125,550	)		14,102

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 three and six months ended December 31, 2020

(In thousands)

	Number of shares		Common stock $		Additional paid-in capital $		Accumulated other comprehensive income $		Preferred stock $			Accumulated deficit $			Stockholders' equity $
Balance - June 30, 2020		11,458		11		65,148		21		4,804			(69,721	)		263
Adgero merger (note 3)		12,011		12		16,713		—		—			—			16,725
Issuance of Series C Preferred stock		—		—		—		—		25,028			—			25,028
Series C placement agent warrants		—		—		3,287		—		(3,287	)		—			—
Series C Preferred stock share issuance costs		—		—		—		—		(3,386	)		—			(3,386	)
Deemed dividend recognized on beneficial conversion features of Series C Preferred stock issuance		—		—		3,181		—		—			(3,181	)		—
Exercise of warrants		993		1		993		—		—			—			994
Warrants issued for services		—		—		45		—		—			—			45
Stock option expense		—		—		405		—		—			—			405
Series A Preferred cash dividend		—		—		—		—		—			(2	)		(2	)
Series B Preferred stock dividend		4		—		5		—		—			(5	)		—
Loss for the period		—		—		—		—		—			(19,518	)		(19,518	)
Balance - September 30, 2020		24,466		24