Kairos Pharma, LTD. - 10-Q Summary (Q2 2025)
Business Context and Reporting Period
Kairos Pharma, LTD. (KAPA) is a clinical-stage biopharmaceutical company focused on developing immunotherapy and cell therapy treatments for oncology. The company operates as a single segment and is classified as a smaller reporting company and an emerging growth company. This report covers the quarterly period ended June 30, 2025.
Key Financial Metrics
| Metric | Q2 2025 (3 Months) | YTD 2025 (6 Months) | YTD 2024 (6 Months) |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Net Loss | $(1,422) thousand | $(2,684) thousand | $(576) thousand |
| Operating Expenses | $1,456 thousand | $2,722 thousand | $514 thousand |
| Cash and Equivalents (End of Period) | $3,034 thousand | $3,034 thousand | $21 thousand |
| Shareholders' Equity | $5,997 thousand | $5,997 thousand | $(2,654) thousand |
| Weighted Avg. Shares Outstanding | 17.21 million | 16.31 million | 10.56 million |
Note: All financial figures are in thousands unless otherwise noted. The company has no debt obligations listed on the balance sheet as of June 30, 2025.
Material Changes vs. Prior Period
- Expense Surge: Total operating expenses increased significantly from $514 thousand in the first half of 2024 to $2,722 thousand in the first half of 2025. This 429% increase was driven by:
- R&D: Increased from $228 thousand to $989 thousand, primarily due to the initiation of Phase 2 clinical trials for prostate cancer (ENV 105).
- G&A: Increased from $286 thousand to $1,733 thousand. A major driver was the amortization of vendor advances ($1,298 thousand non-cash expense) and increased insurance and professional fees.
- Liquidity Improvement: Cash and cash equivalents grew from $1,272 thousand at year-end 2024 to $3,034 thousand at June 30, 2025, following successful capital raises.
- Capital Structure: The company issued significant equity during the period, including a private placement (PIPE) and draws from an Equity Line of Credit (ELOC), increasing outstanding shares from 13.7 million to 17.7 million.
Outlook, Risks, and Management Commentary
- Liquidity Runway: Management expects current cash reserves to fund operations for at least 12 months from the filing date. However, the company remains dependent on raising additional capital to continue as a going concern.
- Financing Activity:
- PIPE Offering: Closed in January 2025, raising net proceeds of approximately $3.06 million.
- ELOC: An agreement with Helena Global Investment Opportunities allows for up to $30 million in funding. The company drew $223 thousand during the period and an additional $3.69 million in July 2025 (subsequent event).
- Operational Focus: The company is advancing Phase 1 and Phase 2 trials for ENV 105 (carotuximab) and a Phase 1 trial for KROS 201.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness regarding segregation of duties and lack of sufficient review procedures.
- Risks: Significant risks include the inability to raise future capital, the uncertainty of clinical trial outcomes, and potential dilution to shareholders from future equity financings.
Investor Verification Checklist
- Cash Burn Rate: Verify the sustainability of the $1.52 million cash used in operating activities over six months against the $3.03 million cash balance.
- Vendor Advance Amortization: Review the $1.298 million non-cash amortization of vendor advances to understand the true cash cost of operations versus accounting expenses.
- Dilution Impact: Assess the impact of the ELOC and PIPE offerings on shareholder value, noting the issuance of over 4 million new shares in the first half of 2025.
- Internal Control Remediation: Monitor the company's progress in addressing the material weakness in internal controls over financial reporting.
- Clinical Milestones: Track the progress of the Phase 2 prostate cancer trial, which is the primary driver of increased R&D spend.