kron-20230630

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, 2023

☐ 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, 2023 the registrant had 58,316,520 shares of common stock, $0.001 par value per share, outstanding.

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements:
	Condensed Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022	3
	Condensed Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	4
	Condensed Statements of Stockholders’ Equity (Deficit) for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	5
	Condensed Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (unaudited)	7
	Notes to Condensed Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	93
Item 5.	Other Information	93
Item 6.	Exhibits	94
	Signatures	95

PART 1. FINANCIAL INFORMATION

ITEM 1. CONDENSED FINANCIAL STATEMENTS

KRONOS BIO, INC.

Condensed Balance Sheets

(Unaudited)

(in thousands, except share and per share amounts)


	June 30, 2023		December 31, 2022(1)
Assets
Current assets:
Cash and cash equivalents	$	44,396	$	75,973
Short-term investments	175,064		162,212
Prepaid expenses and other current assets	4,662		6,106
Total current assets	224,122		244,291
Long-term investments	244		9,762
Property and equipment, net	11,805		12,985
Operating lease right-of-use assets	21,251		24,707
Restricted cash	2,026		2,026
Other noncurrent assets	1,167		1,167
Total assets	$	260,615	$	294,938
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable	$	2,676	$	5,047
Accrued expenses	6,936		12,963
Current portion of operating lease liabilities	3,038		2,347
Current portion of deferred revenue	8,824		—
Current portion of other liabilities	581		1,129
Total current liabilities	22,055		21,486
Noncurrent operating lease liabilities	27,126		28,744
Deferred revenue, net of current portion	8,092		—
Other noncurrent liabilities	—		209
Total liabilities	57,273		50,439
Commitments and contingencies (Note 11)
Stockholders’ equity (deficit):
Common stock, $0.001 par value, 200,000,000 authorized as of June 30, 2023 and December 31, 2022; 58,122,299 and 56,967,436 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively.	58		57
Preferred stock, $0.001 par value; 10,000,000 authorized; no shares issued and outstanding.
Additional paid-in capital	655,920		641,422
Accumulated deficit	(452,167)		(396,188)
Accumulated other comprehensive income (loss)	(469)		(792)
Total stockholders' equity (deficit)	203,342		244,499
Total liabilities and stockholders’ equity (deficit)	$	260,615	$	294,938

(1) The balance sheet as of December 31, 2022 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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Revenue	$	1,864	$	—	$	3,084	$	—
Operating expenses:
Research and development	22,673		22,706		42,331		47,142
General and administrative	11,359		10,824		21,415		22,752
Total operating expenses	34,032		33,530		63,746		69,894
Loss from operations	(32,168)		(33,530)		(60,662)		(69,894)
Other income (expense), net:

Interest and other income, net	2,427		627		4,683		728
Total other income (expense), net	2,427		627		4,683		728
Net loss	$	(29,741)	(32,903)		(55,979)		(69,166)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities	(109)		(491)		323		(622)
Net comprehensive loss	$	(29,850)

SEC Form 10-Q filed by Kronos Bio Inc.