kron-20240630

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 June 30, 2024

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

For the transition period from _______to _______

Commission file number: 001-39592

Kronos Bio, Inc.

(Exact name of registrant as specified in its charter)


Delaware			82-1895605
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

1300 So. El Camino Real, Suite 400

San Mateo, California 94402

(650) 781-5200

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

(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, $0.001 par value per share	KRON	The Nasdaq Stock Market LLC

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 or ☐ 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 or ☐ No.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See 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	☐	Smaller reporting company	☒
Non-accelerated filer	☒	Accelerated filer	☐
		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 or ☒ No

As of August 2, 2024 the registrant had 60,294,610 shares of common stock, $0.001 par value per share, outstanding.

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements (unaudited):
	Condensed Balance Sheets	3
	Condensed Statements of Operations and Comprehensive Loss	4
	Condensed Statements of Stockholders’ Equity	5
	Condensed Statements of Cash Flows	7
	Notes to Condensed Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	97
Item 5.	Other Information	97
Item 6.	Exhibits	98
	Signatures	99

PART 1. FINANCIAL INFORMATION

ITEM 1. CONDENSED FINANCIAL STATEMENTS

KRONOS BIO, INC.

Condensed Balance Sheets

(Unaudited)

(in thousands, except share and per share data)


	June 30, 2024		December 31, 2023(1)
Assets
Current assets:
Cash and cash equivalents	$	70,207	$	64,326
Short-term investments	66,439		108,671
Prepaid expenses and other current assets	4,539		5,781
Total current assets	141,185		178,778
Long-term investments	—		1,989
Property and equipment, net	7,655		10,252
Operating lease right-of-use assets	12,830		19,657
Restricted cash	2,026		2,026
Other noncurrent assets	577		577
Total assets	$	164,273	$	213,279
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	990	$	883
Accrued expenses and other liabilities	4,503		11,335
Current portion of operating lease liabilities	3,618		2,893
Current portion of deferred revenue	7,528		9,584
Total current liabilities	16,639		24,695
Noncurrent operating lease liabilities	23,514		25,379
Noncurrent deferred revenue	974		4,127

Total liabilities	$	41,127	$	54,201
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000 authorized; no shares issued and outstanding.
Common stock, $0.001 par value, 200,000 shares authorized as of June 30, 2024 and December 31, 2023; 60,272 and 58,946 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.	60		59
Additional paid-in capital	678,141		667,861
Accumulated deficit	(555,019)		(508,861)
Accumulated other comprehensive income (loss)	(36)		19
Total stockholders' equity	123,146		159,078
Total liabilities and stockholders’ equity	$	164,273	$	213,279

(1) The balance sheet as of December 31, 2023 is derived from the audited financial statements as of that date.

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

KRONOS BIO, INC.

Condensed Statements of Operations and Comprehensive Loss

(Unaudited)

(in thousands, except share and per share data)


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Revenue	$	2,688	$	1,864	$	5,208	$	3,084
Operating expenses:
Research and development	13,765		20,809		27,987		40,467
General and administrative	6,368		10,307		13,874		20,363
Impairment of long-lived assets and restructuring	578		2,916		13,364		2,916
Total operating expenses	20,711		34,032		55,225		63,746
Loss from operations	(18,023)		(32,168)		(50,017)		(60,662)
Other income (expense), net:
Interest income and other expense	1,823		2,427		3,860		4,683
Total other income (expense), net	1,823		2,427		3,860		4,683
Net loss	$	(16,200)	$	(29,741)	(46,157)		(55,979)
Other comprehensive loss:
Net unrealized gain (loss) on available-for-sale securities	13		(109)		(55)		323
Comprehensive loss	$	(16,187)	$	(29,850)	$	(46,212)	$	(55,656)
Net loss per share, basic and diluted	$	(0.27)	$	(0.52)	$	(0.77)	$	(0.98)
Weighted-average shares of common stock, basic and diluted	60,099,651		57,397,931		59,810,229		57,273,284

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

KRONOS BIO, INC.

Condensed Statements of Stockholders’ Equity

(Unaudited)

(in thousands)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2023	58,946	$	59	$	667,861	$	19	$	(508,861)	$	159,078
Issuance of common stock upon vesting and exercise of options and vesting of restricted stock	1,143	1		209		—		—		210
Stock-based compensation expense	—	—		7,706		—		—		7,706
Net unrealized loss on available-for-sale securities	—	—		—		(68)		—		(68)
Net loss	—	—		—		—		(29,958)		(29,958)
Balance at March 31, 2024	60,089	$	60	$	675,776	$	(49)	$	(538,819)	$	136,968
Issuance of common stock upon vesting and exercise of options and vesting of restricted stock	24	—		—		—		—		—
Stock-based compensation expense	—	—		2,203		—		—		2,203
Employee stock purchase plan	159	—		162						162
Net unrealized gain (loss) on available-for-sale securities	—	—		—		13		—		13
Net loss	—	—		—		—		(16,200)		(16,200)
Balance at June 30, 2024	60,272	60		678,141		(36)		(555,019)		123,146

Balance at December 31, 2022	56,967	$	57	$	641,422	$	(792)	$	(396,188)	$	244,499
Issuance of common stock upon vesting and exercise of options and vesting of restricted stock	386	—		305		—		—		305
Stock-based compensation expense	—	—		6,607		—		—		6,607
Net unrealized gain on available-for-sale securities	—	—		—		432		—		432
Net loss	—	—		—		—		(26,238)		(26,238)

KRONOS BIO, INC.

Condensed Statements of Stockholders’ Equity

(Unaudited)

(in thousands)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at March 31, 2023	57,354	$	57	$	648,334	$	(360)	$	(422,426)	$	225,605
Issuance of common stock upon vesting and exercise of options and vesting of restricted stock	521	1		332		—		—		333
Stock-based compensation expense	—	—		6,906		—		—		6,906
Employee stock purchase plan	247	—		348		—		—		348
Net unrealized gain (loss) on available-for-sale securities	—	—		—		(109)		—		(109)
Net loss	—	—		—		—		(29,741)		(29,741)
Balance at June 30, 2023	58,122	$	58	$	655,920	$	(469)	$	(452,167)	$	203,342

SEC Form 10-Q filed by Kronos Bio Inc.