Korsana Biosciences (KRSA) Q2 2024 earnings summary

Executive summary

• Q2 net loss from continuing operations narrowed to $1.3M from $1.8M YoY; H1 continuing-operations loss was $2.9M vs. $5.0M, while cash totaled $4.6M at quarter-end.

• Strategy centers on pursuing non-sGC assets, mainly in CNS, while seeking licensing opportunities for retained programs; substantial doubt remains about continuing as a going concern.

Financial highlights

• Q2 operating expenses were $1.4M, down 26% YoY; H1 expenses were $3.0M, down 42%, reflecting lower R&D and G&A.

• Q2 net loss was $1.3M vs. $4.2M in 2023; H1 net loss was $2.9M vs. $11.1M, with prior-year periods including discontinued-operation losses.

• Q2 R&D was $105K vs. $339K YoY; G&A was $1.3M vs. $1.5M. H1 R&D was $149K vs. $911K; G&A was $2.9M vs. $4.2M.

• Cash and cash equivalents were $4.6M at June 30, 2024, down from $7.6M at year-end 2023; total assets were $10.1M and stockholders’ equity was $8.8M.

Outlook and guidance

• June 30 cash is expected to fund operations into mid-2025; additional funding is needed as operating losses are expected to continue for the foreseeable future.

• Plans include reducing spending and pursuing additional capital; potential partnership, equity/debt funding and Akebia milestones are not considered probable mitigating plans.

• Expense levels are expected to fluctuate as licensing opportunities are pursued and the portfolio is broadened through in-licensing.