kron-20220331

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, 2022

☐ 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 April 27, 2022 the registrant had 56,732,201 shares of common stock, $0.001 par value per share, outstanding.

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Condensed Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021	3
	Condensed Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2022 and 2021 (unaudited)	4
	Condensed Statements of Stockholders’ Equity for the Three Months Ended March 31, 2022 and 2021 (unaudited)	5
	Condensed Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)	7
	Notes to Condensed Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	98
Item 6.	Exhibits	99
	Signatures	100

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

KRONOS BIO, INC.

Condensed Balance Sheets

(Unaudited)

(in thousands, except share and per share amounts)


	March 31, 2022		December 31, 2021
Assets			(1)
Current assets:
Cash and cash equivalents	$	148,979	$	198,270
Short-term investments	154,157		141,239
Prepaid expenses and other current assets	7,455		8,045
Total current assets	310,591		347,554
Long-term investments	12,246		—
Property and equipment, net	14,510		14,880
Operating lease right-of-use assets	26,370		26,904
Restricted cash	2,026		2,026
Other noncurrent assets	113		112
Total assets	$	365,856	$	391,476
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	4,719	$	998
Accrued expenses	8,328		9,063
Current portion of operating lease liabilities	2,502		2,109
Current portion of other liabilities	1,529		1,456
Total current liabilities	17,078		13,626
Noncurrent operating lease liabilities	30,963		31,653
Other noncurrent liabilities	795		1,100
Total liabilities	48,836		46,379
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.001 par value, 200,000,000 authorized as of March 31, 2022 and December 31, 2021; 56,064,509 and 55,703,327 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.	56		56
Preferred stock, $0.001 par value; 10,000,000 authorized; no shares issued and outstanding.
Additional paid-in capital	616,381		608,064
Accumulated deficit	(299,247)		(262,984)
Accumulated other comprehensive income (loss)	(170)		(39)
Total stockholders' equity	317,020		345,097
Total liabilities and stockholders’ equity	$	365,856	$	391,476

(1) The balance sheet as of December 31, 2021 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 amounts)


	Three months ended March 31,
	2022		2021
Operating expenses:
Research and development	$	24,438	$	17,594
General and administrative	11,927		8,584
Total operating expenses	36,365		26,178
Loss from operations	(36,365)		(26,178)
Other income (expense), net:


Interest and other income, net	102		92
Total other income (expense), net	102		92
Net loss	(36,263)		(26,086)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities	(131)		(4)
Net comprehensive loss	$	(36,394)	$	(26,090)
Net loss per share, basic and diluted	$	(0.65)	$	(0.48)
Weighted-average shares of common stock, basic and diluted	55,839,336		54,152,656

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

KRONOS BIO, INC.

Condensed Statements of Stockholders’ Equity (Deficit)

(Unaudited)

(in thousands, except share and per share data)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
	Shares	Amount
Balance at December 31, 2021	55,703,327	$	56	$	608,064	$	(39)	$	(262,984)	$	345,097
Issuance of common stock upon vesting and exercise of options and vesting of restricted stock	361,182	—		529		—		—		529
Stock-based compensation expense	—	—		7,788		—		—		7,788
Net unrealized gain (loss) on available-for-sale securities	—	—		—		(131)		—		(131)
Net loss	—	—		—		—		(36,263)		(36,263)
Balance at March 31, 2022	56,064,509	$	56	$	616,381	$	(170)	$	(299,247)	$	317,020

SEC Form 10-Q filed by Kronos Bio Inc.