10-Q

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, 2023

OR

☐ 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 001-37695

KINETA, INC.

(Exact name of Registrant as specified in its Charter)

Delaware	20-8436652
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
219 Terry Ave. N., Suite 300 Seattle, WA	98109
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (206) 378-0400

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, par value $0.001 per share	KA	The Nasdaq Capital Market

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 ☒ 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 ☒ 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 the 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	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
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 ☐ No ☒

The number of shares of Registrant’s Common Stock outstanding as of May 9, 2023 was 9,490,302.

Table of Contents

		Page
	Special Note Regarding Forward-Looking Statements	1
PART I	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Shareholders' Equity (Deficit)	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28
PART II	OTHER INFORMATION	29
Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
Signatures		33

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EXPLANATORY NOTE

On December 16, 2022, Yumanity Therapeutics, Inc. (“Yumanity”) completed its previously announced merger transaction with Kineta Operating, Inc. (formerly Kineta, Inc.) (“Private Kineta”) in accordance with the terms of the Agreement and Plan of Merger, dated as of June 5, 2022, as amended on December 5, 2022 (the “Merger Agreement”), by and among Yumanity, Private Kineta and Yacht Merger Sub, Inc., a wholly-owned subsidiary of Yumanity (“Merger Sub”), pursuant to which Merger Sub merged with and into Private Kineta, with Private Kineta surviving such merger as a wholly-owned subsidiary of Yumanity (the “Merger”). The surviving corporation from the Merger subsequently merged with and into Kineta Operating, LLC, with Kineta Operating, LLC being the surviving corporation. On December 16, 2022, in connection with, and prior to the completion of, the Merger, Yumanity effected a 1-for-7 reverse stock split of its common stock. Immediately following the Merger, Yumanity changed its name to “Kineta, Inc.”

Unless the context otherwise requires, references to the “Company,” “Kineta,” the “combined organization,” “we,” “our” or “us” in this Quarterly Report on Form 10-Q refer to Private Kineta and its subsidiaries prior to completion of the Merger and to Kineta, Inc. and its subsidiaries after completion of the Merger. In addition, references to “Yumanity” refer to the registrant prior to the completion of the Merger.

The Merger has been accounted for as a reverse merger and asset acquisition in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Under this method of accounting, Private Kineta was deemed to be the accounting acquirer for financial reporting purposes. Following the Merger, the business conducted by Private Kineta became the Company’s primary business.

Except as otherwise noted, references to “common stock” in this report refer to common stock, $0.001 par value per share, of the Company.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains certain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” “believe,” “estimate,” “aim,” “project,” “intend,” “should,” “is to be,” or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this Quarterly Report on Form 10-Q. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements:

•the timing, progress and results of preclinical studies and clinical trials for our programs and product candidates, including statements regarding the timing of initiation and completion of studies or trials and related preparatory work, the period during which the results of the trials will become available and our research and development programs;

•our ability to recruit and enroll suitable patients in our clinical trials;

•the potential attributes and benefits of our product candidates;

•our ability to develop and advance product candidates into, and successfully complete, clinical studies;

•the timing, scope or likelihood of regulatory filings and approvals;

•our ability to obtain and maintain regulatory approval for our product candidates, and any related restrictions, limitations or warnings in the label of an approved product candidate;

•the implementation of our business model and our strategic plans for our business, product candidates, technology and our discovery engine;

•our commercialization, marketing and manufacturing capabilities and strategy;

•the pricing and reimbursement of our product candidates, if approved;

•the rate and degree of market acceptance of our product candidates, if approved;

•our ability to establish or maintain collaborations or strategic relationships or obtain additional funding;

•our ability to contract with and rely on third parties to assist in conducting our clinical trials and manufacturing our product candidates;

•the size and growth potential of the markets for our product candidates, and our ability to serve those markets, either alone or in partnership with others;

•our ability to obtain funding for our operations, including funding necessary to complete further development, approval and, if approved, commercialization of our product candidates;

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•the period over which we anticipate our existing cash and cash equivalents will be sufficient to fund our operating expenses and capital expenditure requirements;

•the potential for our business development efforts to maximize the potential value of our portfolio;

•our ability to compete with other companies currently marketing or engaged in the development of treatments for the indications that we are pursuing for our product candidates;

•our expectations regarding our ability to obtain and maintain intellectual property protection for our product candidates;

•our financial performance;

•our ability to retain the continued service of our key professionals and to identify, hire and retain additional qualified professionals;

•any statements of the plans, strategies and objectives of management for future operations, including the execution of integration plans and the anticipated timing of filings;

•our expectations related to the use of our cash reserves;

•our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;

•our ability to remediate the material weaknesses in our internal control over financial reporting;

•the impact of laws and regulations, including without limitation recently enacted tax reform legislation;

•the impact of global economic and political developments on our business, including rising inflation and capital market disruptions, the current conflict in Ukraine, economic sanctions and economic slowdowns or recessions that may result from such developments, which could harm our research and development efforts as well as the value of our common stock and our ability to access capital markets;

•the effect of COVID-19 on the foregoing; and

•other risks and uncertainties, including those listed under the caption “Risk Factors” in Part II, Item 1A.

The forward-looking statements contained in this Quarterly Report on Form 10-Q and the documents incorporated herein by reference are based on our current expectations and beliefs concerning future developments and their potential effects on our business. There can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the caption “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q and under similar headings in the documents that are incorporated by reference herein. Moreover, we operate in a very competitive and rapidly changing environment.

New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

The forward-looking statements made by us in this Quarterly Report on Form 10-Q and the documents incorporated herein by reference speak only as of the date of such statement. Except to the extent required under the federal securities laws and rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), we disclaim any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law, you are advised to consult any additional disclosures we make in the documents that we file with the SEC.

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

KINETA, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

	March 31,			December 31,
	2023			2022
Assets
Current assets:
Cash	$	9,238		$	13,143
Prepaid expenses and other current assets		331			457
Total current assets		9,569			13,600
Property and equipment, net		72			249
Operating right-of-use asset		1,034			1,211
Rights from Private Placement		2,250			2,250
Restricted cash		125			125
Total assets	$	13,050		$	17,435
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	9,835		$	6,635
Accrued expenses and other current liabilities		1,052			3,527
Deferred revenue		161			442
Operating lease liability, current portion		871			843
Finance lease liabilities, current portion		41			40
Total current liabilities		11,960			11,487
Notes payable		754			748
Operating lease liability, net of current portion		319			547
Finance lease liabilities, net of current portion		73			83
Total liabilities		13,106			12,865
Commitments and contingencies (Note 6)
Stockholders’ equity (deficit):
Common stock, $0.001 par value; 125,000 shares authorized as of March 31, 2023 and    December 31, 2022; 8,531 and 8,318 shares issued and outstanding as of    March 31, 2023 and December 31, 2022, respectively		9			8
Additional paid-in capital		157,959			156,106
Accumulated deficit		(158,141	)		(151,690	)
Total stockholders’ equity (deficit) attributable to Kineta, Inc.		(173	)		4,424
Noncontrolling interest		117			146
Total stockholders’ equity (deficit)		(56	)		4,570
Total liabilities and stockholders’ equity (deficit)	$	13,050		$	17,435

See the accompanying notes to the unaudited condensed consolidated financial statements.

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KINETA, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2023			2022
Revenues:
Collaboration revenues	$	281		$	—
Licensing revenues		—			358
Grant revenues		—			75
Total revenues		281			433
Operating expenses:
Research and development		2,843			4,023
General and administrative		3,924			1,609
Total operating expenses		6,767			5,632
Loss from operations		(6,486	)		(5,199	)
Other (expense) income:
Interest expense (with related parties $0 for the three months ended    March 31, 2023 and $489 for the three months ended    March 31, 2022)		(23	)		(584	)
Change in fair value measurement of notes payable		(6	)		142
Gain on extinguishments of debt, net		—			669
Other (expense) income, net		35			(3	)
Total other expense, net		6			224
Net loss	$	(6,480	)	$	(4,975	)
Net (loss) income attributable to noncontrolling interest		(29	)		1
Net loss attributable to Kineta, Inc.	$	(6,451	)	$	(4,976	)
Net loss per share, basic and diluted	$	(0.77	)	$	(1.07	)
Weighted-average shares outstanding, basic and diluted		8,361			4,663

See the accompanying notes to the unaudited condensed consolidated financial statements.

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KINETA, INC.

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(in thousands)

(Unaudited)

	Common Stock				Additional Paid-In Capital		Accumulated			Total Stockholders’ Deficit Attributable			Noncontrolling		Total Stockholders’
	Shares		Amount		Amount		Deficit			to Kineta			Interest		Deficit
Balance as of December 31, 2021		4,656	$	5		76,137	$	(88,282	)	$	(12,140	)	$	191	$	(11,949	)
Issuance of common stock		3		—		98	—				98			—		98
Issuance of common stock upon    extinguishment of notes payable and accrued interest		9		—		235	—				235			—		235
Issuance of common stock upon    exercise of warrants		1		—		—		—			—			—		—
Stock-based compensation		—		—		285		—			285			—		285
Net loss		—		—		—		(4,976	)		(4,976	)		1		(4,975	)
Balance as of March 31, 2022		4,669	$	5	$	76,755	$	(93,258	)	$	(16,498	)	$	192	$	(16,306	)

	Common Stock				Additional Paid-In Capital		Accumulated			Total Shareholders’ Equity (Deficit) Attributable			Noncontrolling			Total Shareholders’
	Shares		Amount		Amount		Deficit			to Kineta			Interest			Equity (Deficit)
Balance as of December 31, 2022		8,318	$	8	$	156,106	$	(151,690	)	$	4,424		$	146		$	4,570
Issuance of common stock		127		1		751	—				752		—				752
Issuance of common stock upon   exercise of warrants		51	—			7	—				7			—			7
Issuance of common stock upon    vesting of RSUs		23	—			—	—				—			—			—
Issuance of common stock for services		12	—			41	—				41			—			41
Stock-based compensation		—		—		1,054		—			1,054			—			1,054
Net loss		—		—		—		(6,451	)		(6,451	)		(29	)		(6,480	)
Balance as of March 31, 2023		8,531	$	9	$	157,959	$	(158,141	)	$	(173	)	$	117		$	(56	)

See the accompanying notes to the unaudited condensed consolidated financial statements.

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KINETA, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

	Three Months Ended March 31,
	2023			2022
Operating activities:
Net loss	$	(6,480	)	$	(4,975	)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of notes payable		6			(142	)
Non-cash stock-based compensation		1,054			285
Non-cash operating lease expense		177			159
Depreciation and amortization		2			16
Warrants issued for services		41			—
Gain on extinguishments of debt, net		—			(669	)
Non-cash interest expense		10			107
Gain on disposal of asset		(110	)		—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		126			(109	)
Accounts payable		3,200			1,084
Accrued expenses and other current liabilities		(2,485	)		(600	)
Operating lease liability		(200	)		(174	)
Deferred revenue		(281	)		(358	)
Net cash used in operating activities		(4,940	)		(5,376	)
Investing activities:
Purchases of property and equipment		—			(15	)
Proceeds from sale of property and equipment		285			—
Net cash provided by (used in) investing activities		285			(15	)
Financing activities:
Proceeds from notes payable		—			2,400
Proceeds from issuance of common stock		752			98
Proceeds from exercise of warrants		7			—
Repayments of notes payable		—			(4,000	)
Repayments of finance lease liabilities		(9	)		(7	)
Net cash provided by (used in) financing activities		750			(1,509	)
Net change in cash and restricted cash		(3,905	)		(6,900	)
Cash and restricted cash at beginning of year		13,268			11,219
Cash and restricted cash at end of year	$	9,363		$	4,319
Components of cash and restricted cash:
Cash	$	9,238		$	4,244
Restricted cash		125			75
Total cash and restricted cash	$	9,363		$	4,319
Supplemental disclosure of cash flow information:
Cash paid for interest	$	13		$	477

See the accompanying notes to the unaudited condensed consolidated financial statements.

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KINETA, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1.Organization and Liquidity

Description of Business

Kineta, Inc. (formerly Yumanity Therapeutics, Inc.) (together with its subsidiaries, the “Company”) is headquartered in Seattle, Washington.

The Company is a clinical-stage biotechnology company focused on developing new innovative therapies in the field of immuno-oncology and cancer. The Company also has drug programs in neurology (chronic pain) and an antiviral drug program in development for arenaviruses such as Lassa fever. Kineta Chronic Pain, LLC (“KCP”) was formed to develop new innovative therapies for pain management. Kineta Viral Hemorrhagic Fever, LLC (“KVHF”) was formed to develop a direct acting anti-viral therapy for the treatment of emerging diseases.

As of March 31, 2023 and December 31, 2022, the Company owns a majority interest of the outstanding issued equity of KCP and all of the outstanding issued equity of KVHF.

Private Placement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, the Company entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023 (such financing agreement, as amended, the “Securities Purchase Agreement”), to sell shares of the Company’s common stock in a private placement (the “Private Placement”). The first closing of the Private Placement occurred on December 16, 2022, and the Company issued 649,346 shares of its common stock and received net proceeds of $7.4 million. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023.

Liquidity

The Company has incurred recurring net losses and negative cash flows from operations since inception and, as of March 31, 2023, had an accumulated deficit of $158.1 million. The net loss attributable to the Company was $6.5 million for the three months ended March 31, 2023. As of March 31, 2023, the Company had unrestricted cash of $9.2 million. The Company’s cash as of March 31, 2023, together with the $5.5 million net proceeds received in April 2023 from the registered direct offering plus the committed proceeds of $22.5 million pursuant to the second closing of the Private Placement, will be sufficient to fund operating expenses and capital expenditure requirements into early 2025.

The Company will need to raise additional capital to support its long-term plans and to complete clinical trials. The Company intends to raise additional debt and equity financings from its current investors as well as prospective investors and may receive milestone payments from its license agreements, or other sources. However, there is no guarantee that any of these additional financings or opportunities will be executed or realized on acceptable terms, if at all. The Company’s ability to raise additional capital through either the issuance of equity or debt is dependent on a number of factors including, but not limited to, Company prospects, which itself is subject to a number of development and business risks and uncertainties, as well as uncertainty about whether the Company would be able to raise such additional capital at a price or on terms that are acceptable.

Geopolitical Developments

Geopolitical developments, such as the Russian invasion of Ukraine or deterioration in the bilateral relationship between the United States and China, may impact government spending, international trade and market stability, and cause weaker macro-economic conditions. The impact of these developments, including any resulting sanctions, export controls or other restrictive actions that may be imposed against governmental or other entities in, for example, Russia, have in the past contributed and may in the future contribute to disruption, instability and volatility in the global markets, which in turn could adversely impact the Company’s operations and weaken the Company’s financial results. Certain political developments may also lead to uncertainty to regulations and rules that may materially affect the Company’s business.

2.Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The unaudited condensed consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed consolidated financial statements, as of March 31, 2023 and for the three months ended March 31, 2023, are unaudited and have been prepared by the Company pursuant to the rules and regulations of the SEC for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures are adequate to make the information presented not misleading. There have been no changes to the Company’s significant accounting policies described in the Company’s Annual Report on Form 10-K

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for the year ended December 31, 2022, filed with the SEC on March 31, 2023 (the “2022 Annual Report on Form 10-K”). These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2022 included in the 2022 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position as of March 31, 2023 and condensed consolidated results of operations and cash flows for the three months ended March 31, 2023 and 2022 have been made. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2023.

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and applicable SEC rules regarding annual financial reporting. The condensed consolidated financial statements include all accounts of the Company, its majority owned subsidiary KCP, and its wholly owned subsidiary, KVHF. All intercompany transactions and balances have been eliminated upon consolidation.

Noncontrolling interest in the accompanying condensed consolidated financial statements represents the proportionate share of equity which is not held by the Company. Net income (loss) of the non-wholly owned consolidated subsidiary is allocated to the Company and the holder(s) of the noncontrolling interests in proportion to their percentage ownership considering any preferences specific to the form of equity of the subsidiaries.

Revenue Recognition

Collaboration Revenues

In connection with the Merger, the Company became the successor in interest to an exclusive license and research collaboration agreement (the “Merck Collaboration Agreement”) with Merck & Co., Inc. to support research, development and commercialization of products for treatment of amyotrophic lateral sclerosis and frontotemporal lobar dementia. As of March 31, 2023, the Company had $161,000 in deferred revenue under the Merck Collaboration Agreement. The Company recognizes revenue using the cost-to-cost method, which it believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recognized as a percentage of actual cost incurred to the estimated costs to complete.

Accounting Pronouncements Recently Adopted

Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2020-08, “Codification Improvements to Subtopic 718-740, Compensation—Stock Compensation”. This ASU makes several improvements to the guidance in Subtopic 718-740, which addresses stock compensation. The adoption of ASU 2020-08 did not have a material impact on the consolidated financial statements.

3.Fair Value Measurements

The carrying amounts of the Company’s financial instruments, including cash, restricted cash, and accounts payable, approximate fair value due to the short-term nature of those instruments.

2022 & 2020 Notes Payable

The Company elected the fair value option to account for certain convertible notes payable and notes payable, referred to as the 2022 convertible notes, 2020 convertible notes and 2020 notes (see Note 5), respectively, and collectively the 2022 & 2020 notes payable. The 2020 convertible notes and 2020 notes are referred to as the 2020 notes payable. Upon the closing of the Merger in December 2022, the 2022 convertible notes and 2020 convertible notes were settled with shares of the Company’s common stock (see Note 5).

2020 Notes

The 2020 notes were valued using a discounted cash flow model based on the contractual payment dates, a discount rate and the contractual maturity date. The significant unobservable inputs used in the fair value measurement of the 2020 note for the three months ended March 31, 2023 were as follows: discount rate of 15.0% and contractual payment date of 1.3 years, which resulted in a fair value range for the 2020 note of $225,000.

The significant unobservable inputs used in the fair value measurement of the 2020 notes for the three months ended March 31, 2022 were as follows: discount rate of 19.5% and contractual payment dates ranging from 0.3 to 1.2 years, which resulted in a fair value for the 2020 notes of $1.6 million.

2020 Convertible Notes

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The 2020 convertible notes were valued using a scenario-based analysis and a discounted cash flow model. Two primary scenarios were considered: the qualified financing scenario and the repayment scenario. The value of the 2020 convertible notes under each scenario was probability weighted to arrive at the estimated fair value for the notes. The qualified financing scenario considers the value impact of conversion at the stated discount to the

issue price if the Company completes a qualifying financing event before the maturity date. The repayment scenario considers payment of principal at the contractual maturity dates.

The significant unobservable inputs used in the fair value measurement of the 2020 convertible notes for the three months ended March 31, 2022 were as follows: discount rate of 13.0% and contractual payment dates ranging from of 0.5 to 1.0 years, which resulted in a fair value for the 2020 convertible notes ranging from $0.9 million to $5.8 million.

2022 Convertible Notes

The 2022 convertible notes were valued using a scenario-based analysis and a discounted cash flow model. Two primary scenarios were considered: the qualified financing scenario and the automatic conversion scenario. The value of the 2022 convertible notes under each scenario was probability weighted to arrive at the estimated fair value for the notes. The qualified financing scenario considers the value impact of conversion at the stated discount to the issue price if the Company completes a qualifying financing event before the maturity date. The automatic conversion scenario estimates the timing of such conversion.

The significant unobservable inputs used in the fair value measurement of the 2020 notes for the three months ended March 31, 2022 were as follows: discount rate of 33.6% and contractual payment dates ranging from 0.3 years to 1.0 years, which resulted in a fair value of the 2022 convertible notes of $2.5 million.

The following table provides a summary of the changes in the fair value of the Company’s 2022 & 2020 notes payable measured using Level 3 inputs:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Balance at beginning of period	$	748	$	17,830
Issuance of 2022 convertible notes		—		2,400
Change in fair value of 2022 & 2020 notes payable		6		(142	)
Change in fair value of debt extinguishment		—		(669	)
Partial settlement of 2020 notes payable		—		(4,000	)
Balance at end of period	$	754	$	15,419

4.Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
Laboratory equipment	$	60	$	779
Computer and software		72		73
Leasehold improvements		14		14
Total property and equipment		146		866
Less: Accumulated depreciation and amortization		74		617
Total property and equipment, net	$	72	$	249

Depreciation and amortization expense was $2,000 for the three months ended March 31, 2023 and $16,000 for the three months ended March 31, 2022. The Company has acquired certain laboratory equipment under agreements that are classified as finance leases. The carrying value of the equipment under finance leases included in the balance sheet as property and equipment was zero as of March 31, 2023 and $0.1 million as of December 31, 2022, net of accumulated depreciation. During the three months ended March 31, 2023, the Company disposed of assets with a net carrying value of $175,000 and received proceeds of $285,000. The Company recorded a gain on disposal of fixed assets, which is recorded in other income (expense) in the Statement of Operations.

Rights from Private Placement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, the Company entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023, to sell shares of the Company’s common stock in a private

9

placement (the “Private Placement”). The first closing of the Private Placement occurred on December 16, 2022, and the Company issued 649,346 shares of its common stock and received net proceeds of $7.4 million. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023. With respect to the second closing, the Company is obligated to sell and issue a number of shares of its common stock and the investors are obligated to buy such shares by the specified date and price equal to the volume-weighted average price of Company common stock for the five trading days prior to July 25, 2023 (“VWAP”) plus 10% of the VWAP. The Company has recorded a $2.3 million rights from Private Placement asset as of December 31, 2022 for the future right associated with the second closing.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of the periods presented:

	March 31, 2023		December 31, 2022
	(in thousands)
Compensation and benefits	$	486	$	745
Professional services		336		2,176
Accrued interest		141		132
Accrued clinical trial and preclinical costs		22		404
Other		67		70
Total accrued expenses and other current liabilities	$	1,052	$	3,527

5.Notes Payable

Notes payable outstanding consisted of the following as of the periods presented:

	March 31, 2023				December 31, 2022
	Principal		Fair Value		Principal		Fair Value
	(in thousands)
Notes payable:
2020 notes	$	250	$	225	$	250	$	219
Other notes payable		379		379		379		379
Small Business Administration loan		150		150		150		150
Total notes payable	$	779		754	$	779		748
Less: current portion				—				—
Notes payable, net of current portion			$	754			$	748

The Company elected the fair value option for the 2020 notes (see Note 3). The other notes payable and Small Business Administration loan approximate their fair value because interest rates are at prevailing market rates.

Expected future minimum principal payments under the Company’s notes payables as of March 31, 2023 were as follows:

	Total
	(in thousands)
Years
2023	$	—
2024		629
2025		—
2026		—
2027		2
Thereafter		148
Total notes payable	$	779
Less: current portion		—
Notes payable, net of current portion	$	779

2020 Notes

In October 2020, the Company refinanced certain notes payable (the “2020 notes”), with an aggregate principal amount of $3.0 million with various investors, including one investor that is a related party (see Note 14). The interest rate was reduced on the 2020 notes from 16.0% to 6.0% from October 2020 until the earlier of (i) the Company raises at least $25.0 million in a single transaction or series of transactions after October 2020 and (ii) the original maturity dates (that is, various dates in the first quarter of 2022), after which the interest rate increases to 16.0%. The outstanding principal is due upon demand of the majority of the lenders with respect to (i) 50% on or after nine months after the original maturity date (or on or after various dates in the fourth quarter of 2022) and (ii) 50% on or after fifteen months after the original maturity date (or on or after various dates in

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the second quarter of 2023). The Company may repay the 2020 notes at any time without penalty. Upon bankruptcy the lender can accelerate all amounts due immediately.

In August 2022, the Company settled $1.4 million in outstanding principal and accrued interest by issuing 59,000 shares of the Company’s non-voting common stock at a 15% discount. The Company extended the maturity date for the remaining 2020 notes with a principal balance of $250,000 to July 31, 2024 and reduced the interest rate to 6%, which was accounted for as a modification.

Other Notes Payable

The Company issued several other notes payable in 2019 and early 2020 at a 12.0% interest rate per annum, with the principal amounts due in full at maturity and interest due monthly or quarterly. The other notes payable were due to mature at various dates between December 2020 through early 2022.

The other notes payable were amended in October 2020 to increase the interest rate to 13.0% and extend the maturity date to be on demand by a majority of the holders on or after April 7, 2022, which resulted in a modification of the other notes payable. The Company may prepay the other notes payable at any time without penalty. In April 2022, the Company extended the maturity date for the remaining other notes payable with a principal balance of $0.4 million to June 30, 2024 and decreased the interest rate to 6.0% interest, which was accounted for as a modification.

Small Business Administration Loan

In August 2020, the Company received a U.S. Small Business Administration loan of $150,000 at a 3.75% interest rate and maturing in August 2050. Repayments of principal are due monthly beginning in June 2027 and interest is due monthly.

6.Commitments and Contingencies

Leases

Operating Lease

The Company leases office and laboratory premises in Seattle, Washington pursuant to a lease agreement that commenced in April 2011 and expires in July 2024. The agreement requires monthly lease payments, is subject to annual rent escalations during the lease term, and contains two five-year options to extend the lease term. In June 2020, the Company amended the lease agreement to reduce the leased space for the premises from approximately 22,064 square feet to approximately 14,870 square feet, which was accounted for as a lease modification and partial termination of the lease.

Under the lease agreement, the Company is required to pay certain operating costs, in addition to rent, such as common area maintenance, taxes, utilities and insurance. Such additional charges are considered variable lease costs and are recognized in the period in which they are incurred. Rent expense for the three months ended March 31, 2023 was $237,000 and variable costs were $172,000. Rent expense for the three months ended March 31, 2022 was $208,000 and variable costs were $137,000.

The Company’s operating leases include various covenants, indemnities, defaults, termination rights, security deposits and other provisions customary for lease transactions of this nature.

Future undiscounted payments due under the operating lease as of March 31, 2023 were as follows:

Years	(in thousands)
Remainder of 2023	$	705
2024		561
Total undiscounted lease payments		1,266
Less: Imputed interest		(76	)
Operating lease liability		1,190
Less: Operating lease liability, current portion		(871	)
Operating lease liability, net of current portion	$	319

Supplemental information on the Company’s operating leases was as follows:

	Three Months Ended March 31,
	2023			2022
Cash paid for operating lease agreement (in thousands)	$	231		$	224
Remaining lease term (in years)		1.3			2.3
Incremental borrowing rate		10	%		10	%

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The Company subleases portions of its premises in Seattle, Washington to third parties. Under the first sublease agreement, which commenced in December 2017, the Company subleases approximately 1,850 square feet. In October 2020 the sublease expiration date was extended from December 2020 to December 2022. In September 2022, the sublease expiration date was extended from December 2022 to December 2023. Under the second sublease agreement, which commenced in January 2019 and expired in June 2020, the Company subleased approximately 7,194 square feet. Sublease income was $49,000 for the three months ended March 31, 2023 and $46,000 for three months ended March 31, 2022 and recorded within operating expenses. As of March 31, 2023, the total minimum rentals to be received under the remaining noncancelable sublease was $120,000.

Finance Leases

Future undiscounted payments due under finance lease liabilities as of March 31, 2023 were as follows:

Years	(in thousands)
Remainder of 2023	$	37
2024		50
2025		32
2026		10
Total undiscounted lease payments		129
Less: Imputed interest		(15	)
Financing lease liabilities		114
Less: Financing lease liabilities, current portion		(41	)
Financing lease liabilities, net of current portion	$	73

Supplemental information on the Company’s financing leases was as follows (cash paid for finance lease agreements was not material):

	March 31, 2023			December 31, 2022
Weighted average remaining lease term (in years)		2.7			3.2
Incremental borrowing rate		9.3	%		9.3	%

Indemnification

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted under the Delaware General Corporation Law. The Company currently has directors’ and officers’ insurance.

Other Commitments

The Company has various manufacturing, clinical, research and other contracts with vendors in the conduct of the normal course of its business. Such contracts are generally terminable with advanced written notice and payment for any products or services received by the Company through the effective time of termination and any noncancelable and nonrefundable obligations incurred by the vendor at the effective time of the termination. In the case of terminating a clinical trial agreement at a particular site, the Company would also be obligated to provide continued support for appropriate medical procedures at that site until completion or termination.

Executive Employment Agreements

On September 20, 2022, the Company entered into an at-will employment agreement (“Baker Employment Agreement”), which became effective on October 3, 2022, with Keith Baker, its Chief Financial Officer. On September 28, 2022, the Company entered into at-will employment agreements (together with the Baker Employment Agreement, the “Executive Employment Agreements”), which became effective on December 16, 2022 upon the closing of the Merger, with Shawn Iadonato, its Chief Executive Officer, Craig Philips, its President and Pauline Kenny, its General Counsel.

The Executive Employment Agreements provide that, if the executive’s employment is terminated without Cause (as defined in the Executive Employment Agreements) or the executive resigns for Good Reason (as defined in the Executive Employment Agreements), provided that the executive signs the Release (as defined in the Executive Employment Agreement), the executive will be entitled to (i) accrued compensation, (ii) 39 weeks of pay (52 weeks in the case of Chief Executive Officer) (currently estimated at approximately $1.3 million in the aggregate), (iii) nine (9) months of COBRA benefits (12 months in the case of Chief Executive Officer) for executive and eligible dependents, and (iv) three (3) additional months of vesting of unvested and outstanding equity awards. If executive’s employment is terminated without Cause or the executive resigns for Good Reason within the Change in Control Protection Period (as defined in the Executive Employment Agreements), then in addition to (i)-(iv) above, executive will receive current year pro-rated cash bonus.

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7.Strategic License Agreements

Anti-VISTA Antibody Program License Agreement

In connection with the Company’s research into innovative immuno-oncology drug targets, the Company acquired rights to a group of fully human antibodies from Gigagen, Inc., a wholly owned subsidiary of Grifols, S.A. (“Gigagen”). Pursuant to a material transfer agreement with Gigagen dated August 2019 (the “2019 MTA”), the Company performed research activities to assess Gigagen’s anti-VISTA antibodies. Under an option and license agreement effective as of August 10, 2020, and as amended in November 2020, the parties agreed to terminate the 2019 MTA and Gigagen granted the Company a research license to continue additional evaluation of certain anti-VISTA antibodies. Gigagen also granted the Company an exclusive option to obtain an exclusive license to develop, manufacture and commercialize certain anti-VISTA antibodies during the option term commencing on the effective date and ended on December 31, 2020. The option and license agreement provides for a payment to Gigagen of $0.2 million within five days after the effective date. In addition, upon the Company’s exercise of its option during the option term, within 60 days after such date the Company is obligated to, among other things, (i) pay Gigagen an upfront option exercise fee of $0.4 million, and (ii) issue Gigagen non-voting common stock of the Company having an aggregate then-current fair market value of $0.25 million. The Company is also obligated to pay Gigagen (i) development and regulatory milestones up to an aggregate of $20.3 million based on achievement of certain predetermined milestones, (ii) sales milestones up to an aggregate of $8.0 million based on net sales thresholds, and (iii) royalties in the low-single digits on net sales for each licensed product sold by the Company during the term of the agreement. The Company accounted for the acquisition of rights as an asset acquisition because it did not meet the definition of a business. The Company recorded the upfront payment to Gigagen as research and development expense in the consolidated statements of operations because the acquired rights represented in-process research and development that have no alternative future use. From inception of the 2019 MTA through March 31, 2023, the Company has incurred $0.25 million in milestone expense and zero in royalties under the 2019 MTA.

Anti-CD27 Agonist Antibody Program License Agreement

In connection with the Company’s research into innovative immuno-oncology drug targets, the Company acquired rights to a group of fully human antibodies from Gigagen directed to CD27. Pursuant to a material transfer agreement with Gigagen dated October 28, 2020, as amended in April 2021 (the “2020 MTA”), the Company performed research activities to assess Gigagen’s anti-CD27 agonist antibodies. Under an option and license agreement effective as of June 9, 2021, as amended in August 2022, the parties agreed to terminate the 2020 MTA, Gigagen granted the Company a research license to continue additional evaluation of certain anti-CD27 agonist antibodies and also granted the Company an exclusive option to obtain an exclusive license to develop, manufacture and commercialize certain antibodies targeting CD27 during the option term commencing on the effective date and ending on December 31, 2022. The option and license agreement provides for the Company to pay Gigagen (i) an insignificant exclusivity payment within 60 days after the effective date, and (ii) an insignificant evaluation payment due by March 16, 2022. In addition, upon the Company’s exercise of its option, within 60 days after such option exercise date, the Company is obligated to, among other things, (i) pay Gigagen an upfront option exercise fee of $0.4 million, and (ii) issue Gigagen non-voting common stock of the Company having an aggregate then-current fair market value of $0.25 million. The Company is also obligated to pay Gigagen (i) development and regulatory milestones up to an aggregate of $20.0 million based on achievement of certain predetermined milestones, (ii) sales milestones up to an aggregate of $8.0 million based on net sales thresholds, and (iii) royalties in the low-single digits on net sales for each licensed product sold by the Company during the term of the agreement.

The Company accounted for the acquisition of rights as an asset acquisition because it did not meet the definition of a business. From inception of the 2020 MTA through March 31, 2023, none of the milestones have been achieved and no royalties were due under the agreement.

8.Stockholders’ Equity

Warrants to Purchase Common Stock

As of March 31, 2023, the Company had issued and outstanding warrants to purchase shares of the Company’s common stock as follows, which all met the condition for equity classification (in thousands):

Year Issued	Expiration Date	Number Outstanding as of December 31, 2022		Issued		Exercised			Cancelled/Expired		Number Outstanding as of March 31, 2023		Range of Exercise Price
2013	April 2023		12		—		—			—		12	$	10.17
2017	November 2023 - June 2025		131		—		—			—		131	$0.14 - $21.80
2019	March 2025 - April 2027		44		—		—			—		44	$0.14 - $21.80
2020	June 2023 - October 2023		45		—		—			—		45	$0.14 - $26.88
2022	August 2025 - December 2029		301		—		(51	)		—		250	$0.14 - $168.35
Total number of shares    underlying warrants			533		—		(51	)		—		482

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During the three months ended March 31, 2023, the Company issued 51,000 shares of its common stock upon exercise of warrants and received proceeds of $7,000. The exercise price of all shares exercised was $0.14.

As of March 31, 2022, the Company had issued and outstanding warrants to purchase shares of the Company’s common stock as follows, which all met the condition for equity classification (in thousands):

Year Issued	Expiration Date	Number Outstanding as of December 31, 2021		Issued			Exercised		Cancelled/Expired		Number Outstanding as of March 31, 2022		Range of Exercise Price
2013	April 2023		12		—			—		—		12	$	10.17
2017	November 2023 - June 2025		203		—			—		—		203	$0.14 - $21.80
2019	March 2025 - April 2027		50		—			—		—		50	$0.14 - $21.80
2020	June 2023 - October 2023		73		(1	)		—		—		72	$0.14 - $26.88
Total number of shares    underlying warrants			338		(1	)		—		—		337

During the three months ended March 31, 2022, the Company issued 1,175 shares of its common stock upon exercise of warrants and received proceeds of $171. The exercise price of all shares exercised was $0.14.

Common Stock

As of March 31, 2023, there were 8,531,000 shares of common stock issued and outstanding.

Common stock reserved for future issuance consisted of the following as the period presented:

	March 31, 2023
	(in thousands)
Shares reserved for stock options and restricted stock units to purchase    common stock under equity incentive plans		860
Shares reserved for future issuance of equity awards		2,316
Shares reserved for exercise of warrants		482
Total		3,658

During the three months ended March 31, 2023, the Company sold 126,503 shares of its common stock to individual investors under the Sales Agreement (as defined below) and received net proceeds of $0.8 million in connection with the ATM (as defined below) equity offering program.

During the three months ended March 31, 2023, the Company issued 23,000 shares of its common stock upon vesting of restricted stock units. 19,000 shares were issued to members of the Company’s executive management, 2,000 shares were issued to directors of the Company and 2,000 were issued to other employees.

During the three months ended March 31, 2023, the Company issued 12,000 shares of its common stock for professional services and recorded $41,000 as consulting expense within general and administrative expense.

During the three months ended March 31, 2022, outstanding principal and accrued interest under the other notes payable of $235,000 was settled by issuing 9,000 shares of the Company’s common stock at fair value (based on a recent valuation) to the holders.

During the three months ended March 31, 2022, the Company sold 3,000 shares of its common stock to individual investors and received net proceeds of $98,000.

During the three months ended March 31, 2022, the Company issued 1,175 shares of its common stock upon exercise of warrants and received proceeds of $171. The exercise price of all shares exercised was $0.14.

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Private Placement

The Private Placement (see Note 1) provides for the issuance of shares of the Company’s common stock in two closings, one of which occurred immediately following the closing of the Merger and one of which is expected to occur on July 25, 2023. The first closing of the Private Placement occurred on December 16, 2022 and the Company issued 649,346 shares of its common stock and received net proceeds of $7.4 million to investors that are related parties.

In connection with the Private Placement in December 2022, the Company issued 104,000 warrants to purchase shares of the Company’s non-voting common stock to investors in the Private Placement, each at an exercise price of $0.14, with exercise contingent upon the Merger closing and exercisable following the first closing of the Private Placement. The Company determined the contingent exercise provisions were indexed to the Company’s operations and the warrants qualified for equity classification.

The second closing of the Private Placement is expected to occur on July 25, 2023, at which time the Company will be obligated to issue a number of shares of its common stock based on the aggregate purchase price of $22.5 million divided by the purchase price equal to (a) the volume-weighted average price of Company common stock for the five trading days prior to July 25, 2023 (“VWAP”), plus (b) 10% of the VWAP. The Company determined that its obligation to issue additional shares of its common stock in the second closing at a premium to the VWAP was a freestanding financial instrument and a future right, which is subject to fair value. Accordingly, at inception the future right was recorded as an other asset in the Company’s consolidated balance sheet at its fair value equal to 10% of the second closing amount, or $2.3 million. The remaining proceeds from the first closing were allocated to the shares of common stock issued in the first closing and to the warrants as such instruments are equity-classified. The future right is subject to remeasurement at each reporting date, however, as the fair value will always equal 10% of the value of the future second closing until settlement, no changes in fair value are expected to be recorded in the Company’s consolidated statements of operations. The Company incurred insignificant issuance costs related to the Private Placement.

9.Collaboration Agreement

The following table shows the activity for the Company’s collaboration revenue agreement and deferred revenue (in thousands):

	March 31,
	2023			2022
	(in thousands)
Balance as of beginning of period	$	442		$	—
Decrease for provision of research services		(281	)		—
Balance as of end of period	$	161		$	—

Merck & Co., Inc.

In connection with the Merger, the Company became the successor in interest to an exclusive license and research collaboration agreement (the “Merck Collaboration Agreement”) with Merck & Co., Inc. to support research, development and commercialization of products for treatment of amyotrophic lateral sclerosis and frontotemporal lobar dementia. As of December 31, 2022, the Company had $442,000 in deferred revenue under the Merck Collaboration Agreement. The Company recognized $281,000 in revenue for the three months ended March 31, 2023 and zero for the three months ended March 31, 2022. As of March 31, 2023, the Company had $161,000 in deferred revenue under the Merck Collaboration Agreement.

10.Grant Agreements

National Institutes of Health

The Company was awarded a cost-reimbursable grant from the National Institutes of Health (the “NIH”), a federal medical research agency supporting scientific studies, to support the Company’s research studies for arenavirus hemorrhagic fever. This award was based on budgeted direct and indirect costs and may only be used for budgeted costs as allowable under certain government regulations and NIH’s policy and compliance requirements, subject to government audit. This award was $1.1 million for the budget period January 2021 to December 2021, which was later extended to December 31, 2022.

The Company recognized grant revenue under this grant of zero for the three months ended March 31, 2023, and $75,000 for the three months ended March 31, 2022.

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11.Licensing Revenue Agreement

The following table shows the activity for the Company’s licensing revenue agreement and deferred revenue (in thousands):

	March 31,
	2023		2022
	(in thousands)
Balance as of beginning of period	$	—	$	1,041
Decrease for provision of research services		—		(358	)
Balance as of end of period	$	—	$	683

Genentech, Inc.

In April 2018, the Company entered into an exclusive option and license agreement with Genentech, as amended in November 2019 and October 2020 (such agreement, as amended, the “Genentech Agreement”), to develop the Company’s α9/α10 nicotinic acetylcholine receptor (“nAChR”) antagonists for the treatment of chronic pain. On December 27, 2022, the Company through its subsidiary KCP, received written notice from Genentech of its termination of the Genentech Agreement.

The Company recognized license revenue over time of zero under the Genentech Agreement with Genentech for the three months ended March 31, 2023, and $358,000 for the three months ended March 31, 2022. There was no deferred revenue related to this license as of March 31, 2023 as the Genentech Agreement was terminated in December 2022.

12.Stock-Based Compensation

2008 Equity Incentive Plan

The Company’s 2008 Equity Incentive Plan (the “2008 Plan”) provided for the grant of incentive stock options, non-statutory stock options, restricted stock awards and restricted stock units to employees and non-employee service providers of the Company. Under the 2008 Plan, the exercise price of stock options granted were at 100% of the estimated fair market value of the Company’s common stock on the date of grant and the contractual term of stock options granted were between five and ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement.

In 2018, the 2008 Plan expired and only stock options granted prior to the 2008 Plan expiration remain outstanding as of March 31, 2023.

2010 Equity Incentive Plan

The Company’s 2010 Equity Incentive Plan (the “2010 Plan”) provided for the grant of incentive stock option, non-statutory stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards to employees and non-employee service providers of the Company. Under the 2010 Plan, the exercise price of stock options granted were at 100% of the estimated fair market value of the Company’s common stock on the date of grant and the contractual term of stock options granted did not exceed ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement. Stock appreciation rights (“SARs”) provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in cash. The rights granted have varying vesting terms, including SARs that vest immediately on the grant date and upon satisfaction of the service-based requirement, typically three to five years. The maximum fair value is limited to four times the exercise price.

In February 2020, the 2010 Plan expired and only stock options granted prior to the expiration remain outstanding as of March 31, 2023. As of March 31, 2023, there were no SARs outstanding.

2020 Equity Incentive Plan

The Company’s 2020 Equity Incentive Plan (the “2020 Plan”) authorizes the grant of equity awards for up to 206,000 shares of the Company’s voting common stock and 206,000 of the Company’s non-voting common stock.

The 2020 Plan provides for the grant of incentive stock options, non-statutory stock options and restricted stock to employees and non-employee service providers. Under the 2020 Plan, the contractual term of stock options shall not exceed ten years and the exercise price of stock options granted shall not be less than 100% of the estimated fair market value of the Company’s common stock on the date of grant. However, the exercise price of incentive stock options granted to a 10% stockholder shall not be less than 110% of the fair market value of the common stock on the date of grant and the contractual term shall not exceed ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement. Restricted stock has vesting terms that vest immediately on the grant date or upon satisfaction of the service-based requirement, typically

16

four years or the performance-based requirement. The Company has a repurchase right exercisable upon termination of continuous service with respect to restricted stock for any shares that are issued and unvested.

In December 2022, the 2020 Plan expired and only stock options granted prior to the 2020 Plan expiration remain outstanding as of March 31, 2023.

2022 Equity Incentive Plan

In December 2022, the Company approved the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan provides for the grant of incentive stock option, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), performance units and performance shares to employees, directors and independent contractors of the Company. Under the 2022 Plan, the exercise price of stock options grants shall be at 100% fair market value of the Company’s common stock on the date of grant and the contractual term of stock options granted shall not exceed ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement. SARs provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in cash or in shares of equivalent value.

Stock Option Activity

The following table summarizes stock option activity under the Company’s equity incentive plans:

	Outstanding Stock Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
	(in thousands, except per share amounts and years)
December 31, 2022		734		$	22.67		5.4	$	—
Forfeited		(17	)	$	25.56
Expired		(9	)	$	10.90
Outstanding as of March 31, 2023		708		$	22.75		5.2	$	—
Exercisable as of March 31, 2023		573		$	21.73		4.5	$	—

Fair Value of Stock Options

The fair value of stock options granted for employee and non-employee awards was estimated at the grant date using the Black-Scholes option pricing model based on the following assumptions:

	Three Months Ended March 31,
	2023	2022
Expected volatility		84.2%-84.7%
Expected term (years)		5.8-6.6
Risk-free interest rate		1.6%-2.2%
Expected dividend yield		0%-0%

The Company did not grant any stock options during the three months ended March 31, 2023.

Restricted Stock

The Company has granted restricted stock units (“RSUs”) under its equity incentive plans with both service-based and performance-based vesting conditions. As of March 31, 2023, the Company’s outstanding RSUs all related to RSUs with performance-based conditions that vest based on meeting certain liquidity events, with a grant date fair value of $4.1 million.

The following table summarizes the Company’s restricted stock activity consisting of RSUs:

	Number of Restricted Stock (RSUs)			Weighted-Average Grant Date Fair Value Per Share
	(in thousands, excepts per share amounts)
Outstanding and unvested as of December 31, 2022		175		$	26.89
Released		(23	)	$	27.03
Outstanding and unvested as of March 31, 2023		152		$	26.87

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Stock-Based Compensation

The following table summarizes total stock-based compensation included in the Company’s consolidated statements of operations:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Research and development	$	77	$	165
General and administrative		977		120
Total stock-based compensation	$	1,054	$	285

As of March 31, 2023, there was $2.4 million of unrecognized stock-based compensation related to stock options and RSUs outstanding, which is expected to be recognized over a weighted-average remaining service period of 1.1 years.

13.Net Loss Per Share

The following table summarizes the computation of basic and diluted net loss per share:

	Three Months Ended March 31,
	2023			2022
	(in thousands, excepts per share amounts)
Numerator:
Net loss attributable to Kineta, Inc.	$	(6,451	)	$	(4,976	)
Denominator:
Weighted-average common shares outstanding, basic and diluted		8,361			4,663
Net loss per share, basic and diluted	$	(0.77	)	$	(1.07	)

1. Included in the denominator for the three months ended March 31, 2023 and 2022, were 520,000 and 234,000 weighted-average shares of common stock warrants, respectively, with an exercise price of $0.14 issued for nominal consideration.

The following outstanding potentially dilutive common stock equivalents were excluded from the computation of diluted net loss per share as of the periods presented because including them would have been antidilutive:

	March 31, 2023		December 31, 2022
	(in thousands)
Common stock options		708		733
Unvested restricted stock subject to repurchase		152		175
Warrants to purchase common stock		482		533
Vested restricted stock subject to recall		56		56
Total		1,398		1,497

Defined Contribution Plan

The Company sponsors a 401(k) Plan whereby all employees are eligible to participate in the 401(k) Plan after meeting certain eligibility requirements. Participants may elect to have a portion of their salary deferred and contributed to the 401(k) plan, subject to certain limitations. The Company provided matching contributions of $40,000 for the three months ended March 31, 2023 and $41,000 for the three months ended March 31, 2022.

14.Related Party Transactions

RSU Vesting

During the three months ended March 31, 2023, the Company issued 23,000 shares of its common stock upon vesting of restricted stock units. 19,000 shares were issued to members of the Company’s executive management and 2,000 shares were issued to directors of the Company.

Notes Payable

During the three months ended March 31, 2022, the Company made a $4.0 million cash payment of principal to one of its creditors that is a director of the Company as a partial repayment for a note issued pursuant to the 2020 convertible notes and recognized a $669,000 gain on extinguishment.

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15.Subsequent Events

The Company evaluated subsequent events through the date these consolidated financial statements were issued.

Employee and Director Equity Awards

On April 12, 2023, the Company’s board of directors (the “Board”) granted to various employees and Board members stock options to purchase an aggregate of 1,171,920 shares of common stock at an exercise price of $3.28 per share. Included in the grant were an option to purchase 207,000 shares of common stock to Shawn Iadonato, Chief Executive Officer; an option to purchase 165,600 shares of common stock to Craig Philips, President; an option to purchase 120,060 shares of common stock to Keith Baker, Chief Financial Officer; an option to purchase 120,060 shares of common stock to Pauline Kenny, General Counsel; an option to purchase 120,060 shares of common stock to Thierry Guillaudeux, Chief Scientific Officer; an option to purchase 20,000 shares of common stock to each of David Arkowitz and Richard Peters, each a member of the Board, pursuant to his appointment to the Board; an option to purchase 12,500 shares of common stock to each of Raymond Bartoszek, Marion R. Foote, David Arkowitz and Richard Peters, each a member of the Board, pursuant to an annual Board award grant; and 349,140 shares of common stock to other employees. These stock option grants were issued under the 2022 Equity Incentive Plan. The option awards granted to Dr. Iadonato, Mr. Philips, Mr. Baker, Ms. Kenny and Dr. Guillaudeux vested 25% on the date of grant and the remaining shares vest 1/36th monthly over 36 months beginning May 1, 2023. The option awards granted to Mr. Arkowitz and Dr. Peters pursuant to their appointment to the Board vest 1/36th monthly over 36 months beginning February 1, 2023. The option awards granted to Mr. Bartoszek, Ms. Foote, Mr. Arkowitz and Dr. Peters for their annual Board award grant vest 1/12th monthly over 12 months beginning July 7, 2023.

Equity Raise - Registered Direct Offering

On April 20, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an institutional investor (the “Investor”), pursuant to which the Company issued and sold, in a registered direct offering priced at-the-market under the rules of The Nasdaq Stock Market (the “Registered Offering”), (i) an aggregate of 948,000 shares of its common stock, at a purchase price of $4.21 per share and (ii) pre-funded warrants exercisable for up to 477,179 shares of its common stock (the “Pre-Funded Warrants”) to the Investor at a purchase price of $4.209 per Pre-Funded Warrant, for aggregate gross proceeds from the Offerings (as defined below) of approximately $6.0 million before deducting the placement agent fee (as described in greater detail below) and related offering expenses.

Each Pre-Funded Warrant represents the right to purchase one share of common stock at an exercise price of $0.001 per share. The Pre-Funded Warrants are exercisable immediately and may be exercised at any time until the Pre-Funded Warrants are exercised in full.

In a concurrent private placement (the “Private Placement” and, together with the Registered Offering, the “Offering”), the Company issued to the Investor warrants to purchase up to 1,425,179 shares of common stock (the “Common Warrants”) at an exercise price of $4.08 per share. The Common Warrants are exercisable immediately and will expire five and one-half years from the initial exercise date. In connection with the Offering, the Company entered into an engagement letter (the “Engagement Letter”) with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which Wainwright agreed to serve as the exclusive placement agent for the issuance and sale of securities of the Company pursuant to the Purchase Agreement. As compensation for such placement agent services, the Company paid Wainwright an aggregate cash fee equal to $420,000, a non-accountable expense of $35,000 and $50,000 for legal and other expenses as actually incurred. The total offering-related fees were approximately $520,000, which resulted in net proceeds to the Company of $5.5 million. On April 24, 2023, the Company also issued to Wainwright or its designees warrants to purchase 71,259 shares of common stock (the “Wainwright Warrants”). The Wainwright Warrants have a term of five years from the commencement of sales in the Offering, and have an exercise price of $5.2625 per share.

Amendment No. 4 to the Securities Purchase Agreement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, the Company entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023 (such financing agreement, as amended, the “Securities Purchase Agreement”), to sell shares of the Company’s common stock to certain institutional investors in a private placement (the “Private Placement”). The Company and the investors entered into the amendment to the Securities Purchase Agreement on May 1, 2023 to, among other things, extend the date of the second closing. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the “Risk Factors” section of this Quarterly Report on Form 10-Q, our actual results could differ materially from the results described in, or implied by, the forward-looking statements contained in the following discussion and analysis.

Overview

We are a clinical-stage biotechnology company with a mission to develop next-generation immunotherapies that transform patients’ lives. We have leveraged our expertise in innate immunity and are focused on discovering and developing potentially differentiated immunotherapies that address the major challenges with current cancer therapy.

We have established our Innate Immunity Development Platform aimed at developing fully human antibodies to address the major mechanisms of cancer immune resistance:

•Immuno-suppression;

•Exhausted T cells; and

•Poor tumor immunogenicity

Utilization of our Innate Immunity Development Platform is designed to result in novel, well-characterized immuno-oncology lead antibody therapeutics that can be efficiently advanced into investigational new drug (“IND”)-enabling preclinical studies and clinical trials.

Our pipeline of assets and research interests includes (i) KVA12123 (formerly referred to as KVA12.1), a monoclonal antibody (“mAb”) immunotherapy targeting VISTA (V-domain Ig suppressor of T cell activation), (ii) an anti-CD27 agonist mAb immunotherapy and (iii) an anti-CD24 antagonist mAb immunotherapy discovery program. These immunotherapies have the potential to address disease areas with unmet medical needs and significant commercial potential.

We initiated a Phase 1 clinical trial of KVA12123 in the United States in the fourth quarter of 2022. KVA12123 is engineered to be a differentiated VISTA blocking immunotherapy to address the problem of immunosuppression in the tumor microenvironment. It is a fully human engineered IgG1 monoclonal antibody that was designed to bind to VISTA through a unique epitope. KVA12123 may be an effective immunotherapy for many types of cancer including non-small cell lung cancer (“NSCLC”), colorectal cancer (“CRC”), ovarian cancer (“OC”), renal cell carcinoma (“RCC”) and head and neck squamous cell carcinoma (“HNSCC”). These indications represent a significant unmet medical need with a large worldwide commercial opportunity for KVA12123.

We are also conducting preclinical studies on our lead anti-CD27 agonist mAb immunotherapy that was discovered utilizing our Innate Immunity Development Platform. This lead candidate is a fully human mAb that demonstrates low nanomolar (“nM”) binding affinity to CD27 in humans. In preclinical studies, our lead anti-CD27 agonist mAb was observed to induce T cell proliferation and secretion of cytokines involved in T cell priming and recruitment, suggesting the ability to potentiate new anti-tumor responses. CD27 is a clinically validated target that may be an effective immunotherapy for advanced solid tumors including RCC, CRC and OC. We continue to conduct preclinical studies to optimize its lead anti-CD27 agonist mAb clinical candidate.

According to Market Data Forecast, the immuno-oncology market generated sales of approximately $99 billion in 2022 and is forecast to reach $179 billion in 2027. If we successfully complete the clinical trial program for KVA12123 and we subsequently obtain regulatory approval for KVA12123, we will focus on initial target indications in NSCLC, CRC and OC. Clinical development of KVA12123 will be as a second-line therapy in these indications. These three cancer therapy segments represent a forecasted $48 billion market opportunity in 2027 according to GlobalData.

We are a leader in the field of innate immunity and are focused on developing potentially differentiated immunotherapies. With drug candidates expected to enter the clinic and additional immuno-oncology assets in preclinical development, we believe we are positioned to achieve multiple value-driving catalysts. We have assembled an experienced management team, a seasoned research and development team, an immuno-oncology focused scientific advisory board, an enabling technology platform and a leading intellectual property position to advance our pipeline of potential novel immunotherapies for cancer patients.

Since our inception in 2007, we have devoted substantially all of our resources to raising capital, licensing certain technology and intellectual property rights, identifying and developing potential product candidates, conducting research and development activities, including preclinical studies and clinical trials, organizing and staffing operations and providing general and administrative support for these operations.

We have no products approved for commercial sale and have not generated any revenue from product sales. To date, revenue has been generated from the out-licensing of certain rights to third parties, providing research services under licensing and collaboration agreements as well as revenue from government grants.

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We have never been profitable and have incurred operating losses in each period since inception. Our net losses were $6.5 million for the three months ended March 31, 2023 and $5.0 million for the three months ended March 31, 2022. As of March 31, 2023 we had an accumulated deficit of $158.1 million.

We expect to incur significant expenses and continued operating losses for at least the next several years as we initiate and continue the clinical development of, and seek regulatory approval for, our product candidates and add personnel necessary to advance our pipeline of clinical-stage product candidates. In addition, operating as a publicly-traded company will involve the hiring of additional financial and other personnel, and the incurrence of substantial other costs associated with operating as a public company. We expect that our operating losses will fluctuate significantly from quarter to quarter and year to year due to timing of clinical development programs and efforts to achieve regulatory approval.

From inception to March 31, 2023, we have raised cash from sales and issuances of common stock and borrowings under notes payable. As of March 31, 2023, we had cash of $9.2 million. Our current capital resources, together with the $5.5 million net proceeds received in April 2023 from the registered direct offering plus the committed proceeds of $22.5 million pursuant to the second closing of the Private Placement, will be sufficient to fund operating expenses and capital expenditure requirements into early 2025. Our long term plans will require us to raise substantial additional capital to continue our clinical development and potential commercialization activities. Accordingly, we will need to raise substantial additional capital to continue to fund our long-term plans. The amount and timing of our future funding requirements will depend on many factors, including the pace and results of our clinical development efforts. Failure to raise capital as and when needed, on favorable terms or at all, would have a negative impact on our financial condition and our ability to develop our product candidates.

Private Placement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, we entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023 (such financing agreement, as amended, the “Securities Purchase Agreement”), with certain investors to sell shares of our common stock to such investors in a private placement (the “Private Placement”). We and the investors entered into the amendment to the Securities Purchase Agreement on May 1, 2023 to, among other things: (i) extend the date of the second closing from May 31, 2023 to July 25, 2023.

The first closing of the Private Placement occurred on December 16, 2022 and we issued 649,346 shares of our common stock and received net proceeds of $7.4 million. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023.

The Merger has been accounted for as a reverse merger and asset acquisition in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Under this method of accounting, Private Kineta was deemed to be the accounting acquirer for financial reporting purposes, primarily based on the fact that, immediately following the Merger: (i) Private Kineta’s shareholders own a majority (80%) of the common stock of the Company, (ii) Private Kineta designated a majority of the members of the initial board of directors of the combined organization and (iii) Private Kineta’s senior management hold all key positions in the senior management of the combined organization.

Geopolitical Developments

Geopolitical developments, such as the Russian invasion of Ukraine or deterioration in the bilateral relationship between the United States and China, may impact government spending, international trade and market stability, and cause weaker macro-economic conditions. The impact of these developments, including any resulting sanctions, export controls or other restrictive actions that may be imposed against governmental or other entities in, for example, Russia, have in the past contributed and may in the future contribute to disruption, instability and volatility in the global markets, which in turn could adversely impact our operations and weaken our financial results. Certain political developments may also lead to uncertainty to regulations and rules that may materially affect our business.

At-the-Market Offering Program

In February 2023, we entered into a sales agreement (the “Sales Agreement”) with Jefferies with respect to an at-the-market (“ATM”) offering program under which we may issue and sell, from time to time and at our sole discretion, shares of our common stock, in an aggregate offering amount of up to $17.5 million, subject to the offering limits in General Instruction I.B.6 to Form S-3. Jefferies acts as our sales agent and will use commercially reasonable efforts to sell shares of common stock from time to time, based upon instruction from us. We will pay Jefferies 3.0% of the gross proceeds from the sales of any common stock sold pursuant to the Sales Agreement.

On April 19, 2023, we delivered written notice to Jefferies that we were suspending and terminating the prospectus supplement (the “ATM Prospectus Supplement”) related to our common stock issuable pursuant to the Sales Agreement. We will not make any sales of our securities pursuant to the Sales Agreement, unless and until a new prospectus supplement is filed. Other than the termination and suspension of the ATM Prospectus Supplement, the Sales Agreement remains in full force and effect.

During the three months ended March 31, 2023, we sold 126,503 shares of our common stock to individual investors under the Sales Agreement and received net proceeds of $0.8 million in connection with the ATM equity offering program.

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Registered Direct Offering

On April 20, 2023, we entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an institutional investor (the “Investor”), pursuant to which we issued and sold, in a registered direct offering priced at-the-market under the rules of The Nasdaq Stock Market (the “Registered Offering”), (i) an aggregate of 948,000 shares of our common stock, at a purchase price of $4.21 per share and (ii) pre-funded warrants exercisable for up to 477,179 shares of our common stock (the “Pre-Funded Warrants”) to the Investor at a purchase price of $4.209 per Pre-Funded Warrant, for aggregate gross proceeds from the Offering (as defined below) of approximately $6.0 million before deducting the placement agent fee (as described in greater detail below) and related offering expenses.

Each Pre-Funded Warrant represents the right to purchase one share of common stock at an exercise price of $0.001 per share. The Pre-Funded Warrants are exercisable immediately and may be exercised at any time until the Pre-Funded Warrants are exercised in full.

In a concurrent private placement (the “Private Placement” and, together with the Registered Offering, the “Offering”), we issued to the Investor warrants to purchase up to 1,425,179 shares of common stock (the “Common Warrants”) at an exercise price of $4.08 per share. The Common Warrants are exercisable immediately and will expire five and one-half years from the initial exercise date.

In connection with the Offering, we entered into an engagement letter (the “Engagement Letter”) with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which Wainwright agreed to serve as the exclusive placement agent for the issuance and sale of securities of the Company pursuant to the Purchase Agreement. As compensation for such placement agent services, we paid Wainwright an aggregate cash fee equal to $420,000, a non-accountable expense of $35,000 and $50,000 for legal and other expenses as actually incurred. On April 24, 2023, we also issued to Wainwright or its designees warrants to purchase 71,259 shares of common stock (the “Wainwright Warrants”). The Wainwright Warrants have a term of five years from the commencement of sales in the Offering, and have an exercise price of $5.2625 per share.

Financial Operations Overview

Revenues

To date, we have not generated any revenue from product sales and do not expect to generate any revenue from product sales in the near future. Our revenues have been primarily derived from our collaboration, research and license agreements as well as grants awarded by government agencies.

Collaboration Revenues

In connection with the Merger, we became the successor in interest to an exclusive license and research collaboration agreement (the “Merck Collaboration Agreement”) with Merck & Co., Inc. to support research, development and commercialization of products for treatment of amyotrophic lateral sclerosis and frontotemporal lobar dementia. We recognize revenue using the cost-to-cost method, which we believe best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recognized as a percentage of actual cost incurred to the estimated costs to complete.

Licensing Revenues

Our license agreements may include the transfer of intellectual property rights in the form of licenses, promises to provide research and development services and promises to participate on certain development committees with the collaboration party. The terms of such agreements include payment to us of one or more of the following: nonrefundable upfront fees, payment for research and development services, development, regulatory and commercial milestone payments and sales-based milestones and royalties on net sales of licensed products.

Revenue associated with nonrefundable upfront license fees where the license fees and research and development activities cannot be accounted for as separate performance obligations is deferred and recognized as revenue over the expected period of performance based on a cost-based input method. Revenue from contingent development, regulatory and commercial milestones, when not deemed probable of significant reversal of cumulative revenue, is also recognized over the performance period based on a similar method. Where we have no remaining performance obligations, revenue from such milestones is recognized when the accomplishment of the milestones is deemed probable. Our license agreement with Genentech was terminated in December 2022 and we do not expect to recognize any revenue from the Genentech Agreement during 2023.

Grant Revenues

Under our grant agreements with government-sponsored and charitable organizations, we receive payment for providing research and development services. Revenue associated with grant arrangements is based on a cost-based reimbursement model that recognizes revenue over time as we perform work under the grants and incur qualifying research and development costs.

We have completed research and development services under the grant agreements and do not expect to recognize any revenue during 2023.

Operating Expenses

Research and Development Expenses

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Research and development expenses represent costs incurred in connection with the discovery, research, preclinical and clinical development, and manufacture of our product candidates. We recognize all research and development costs as they are incurred. Research and development expenses consist primarily of the following:

•salaries, bonuses, benefits, stock-based compensation, research and consulting arrangements and other related costs for individuals involved in research and development activities;

•external clinical trial costs to enroll clinical sites and patients to conduct phase 1 clinical trials;

•external research and development expenses incurred under agreements with contract research organizations, investigative sites and other scientific development services;

•costs incurred under agreements with contracted research and manufacturing organizations for developing and manufacturing materials for preclinical studies, clinical trials and laboratory supplies;

•licensing agreements and associated costs;

•costs related to compliance with regulatory requirements;

•facilities and other allocated expenses for rent and insurance; and

•other expenses incurred to advance research and development activities including manufacturing costs associated with production, scale up, testing and optimization of methods associated with the production of materials.

The largest component of our operating expenses has historically been our investment in research and development activities. We expect our research and development expenses will increase in the future as we advance our product candidates into and through clinical trials and pursue regulatory approvals, which will require a significant investment in costs of clinical trials, regulatory support and contract manufacturing. In addition, we continue to evaluate opportunities to acquire or in-license other product candidates and technologies, which may result in higher research and development expenses due to license fee and/or milestone payments, as well as added clinical development costs.

As we are working on multiple research and development programs at any one time, we track our external expenses by the stage of program, clinical or preclinical. However, our internal expenses, including unallocated costs, personnel costs and infrastructure costs, are not directly related to any one program and are deployed across multiple programs. As such, we do not track internal expenses on a specific program basis.

The process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming. We may never succeed in timely developing and achieving regulatory approval for our product candidates. The probability of success of our product candidates may be affected by numerous factors, including clinical data, competition, manufacturing capability and commercial viability. As a result, we are unable to determine the duration and completion costs of our development projects or when and to what extent we will generate revenue from the commercialization and sale of any of our future product candidates.

General and Administrative Expenses

General and administrative expenses consist primarily of employee-related expenses, including salaries, benefits and stock-based compensation for personnel in executive, finance and accounting, and other administrative functions, as well as fees paid for legal, accounting and tax services, consulting fees and facilities costs not otherwise included in research and development expenses. Legal costs include general corporate legal fees and patent costs. We expect to incur additional expenses as a result of operating as a public company, including expenses related to compliance with the rules and regulations of the SEC and Nasdaq, additional insurance, investor relations and other administrative expenses and professional services.

Other (Expense) Income

Interest Expense

Interest expense consists of interest charged on outstanding borrowings associated with our debt arrangements primarily consisting of borrowings under several notes payable agreements.

Change in Fair Value Measurement of Notes Payable

Change in fair value of notes payable relates to the remeasurement of the notes payable that we elected to account for under the fair value option. Until settlement, these notes payable are remeasured at fair value at each reporting period with the changes in fair value recorded through the statement of operations.

(Loss) Gain on Extinguishments of Debt, Net

(Loss) gain on extinguishments of debt, net consists of the (loss) gain upon settlement of our notes payable and other debt.

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Other (Expense) Income, Net

Other (expense) income, net consists of items that are of a non-recurring nature and primarily relate to items that are immaterial.

Net (Loss) Income Attributable to Noncontrolling Interest

Net (loss) income attributable to noncontrolling interest reflects investors’ share of net (loss) income in our majority owned subsidiaries.

Results of Operations

Comparison of the Three Months Ended March 31, 2023 and 2022

The following table summarizes our results of operations for the periods presented:

	Three Months Ended March 31,
	2023			2022			Change
	(in thousands)
Revenues:
Collaboration revenues	$	281		$	—		$	281
Licensing revenues		—			358			(358	)
Grant revenues		—			75			(75	)
Total revenues		281			433			(152	)
Operating expenses:
Research and development		2,843			4,023			(1,180	)
General and administrative		3,924			1,609			2,315
Total operating expenses		6,767			5,632			1,135
Loss from operations		(6,486	)		(5,199	)		(1,287	)
Other (expense) income:
Interest expense		(23	)		(584	)		561
Change in fair value of measurement of notes payable		(6	)		142			(148	)
Gain on extinguishments of debt expense		—			669			(669	)
Other income (expense), net		35			(3	)		38
Total other (expense) income, net		6			224			(218	)
Net loss		(6,480	)		(4,975	)		(1,505	)
Net income (loss) attributable to noncontrolling interest		(29	)		1			(30	)
Net loss attributable to Kineta, Inc.	$	(6,451	)	$	(4,976	)	$	(1,475	)

Revenues

Collaboration revenues were $281,000 for the three months ended March 31, 2023 and zero for the three months ended March 31, 2022 as a result of research services provided under the Merck Collaboration Agreement pursuant to which the Company became a successor in interest in connection with the Merger. Upon completion of the Merger, we had $442,000 in deferred revenue under the Merck Collaboration Agreement. As of March 31, 2023, we had $161,000 in deferred revenue under the Merck Collaboration Agreement and expect to provide services to complete this project and recognize the remaining $161,000 of revenue during the three months ending June 30, 2023.

Licensing revenues were zero for the three months ended March 31, 2023 and $358,000 for the three months ended March 31, 2022 as this license agreement was terminated in December 2022.

Grant revenues were zero for the three months ended March 31, 2023 and $75,000 three months ended March 31, 2022 as this grant was concluded in December 2022.

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Research and Development Expenses

The following table summarizes our research and development expenses by program and category for the periods presented:

	Three Months Ended March 31,
	2023		2022		Change
	(in thousands)
Direct external program expenses:
KVA12123 program	$	1,784	$	2,504	$	(720	)
CD27 program		271		185		86
KCP-506 program		104		34		70
Other programs		—		94		(94	)
Internal and unallocated expenses:
Personnel-related costs		349		890		(541	)
Facilities and related costs		300		222		78
Other costs		35		94		(59	)
Total research and development expenses	$	2,843	$	4,023	$	(1,180	)

Research and development expenses decreased by $1.2 million, or 29%, to $2.8 million for the three months ended March 31, 2023 from $4.0 million for the three months ended March 31, 2022. The decrease in direct external program expenses of $0.7 million was primarily due to lower activities for KVA12123 as we began securing clinical trial sites and enrolling patients in advance of enrolling the first patient, which occurred in April 2023. We expect our direct external program expenses to increase over time this year as we enroll and dose additional patients. The decrease in our internal and unallocated research and development expenses of $0.5 million was primarily due to lower personnel costs as a result of reducing research and development staff in December 2022 as we transition to clinical trials.

General and Administrative Expenses

General and administrative expenses increased by $2.3 million, or 144%, to $3.9 million for the three months ended March 31, 2023 from $1.6 million for the three months ended March 31, 2022. The increase was primarily attributable to an increase of $1.1 million in personnel costs driven by stock-based compensation expense from RSUs with performance conditions contingent upon the closing of the Merger and higher headcount. There was $643,000 in stock-based compensation expense from RSUs for the three months ended March 31, 2023 and zero for the three months ended March 31, 2022 since performance conditions of closing the Merger were not met until December 2022. In addition, we incurred higher professional services and consultant fees, primarily driven by legal, accounting and consulting costs as we became a public company.

Interest Expense

Interest expense decreased by $563,000, or 96%, to $23,000 for the three months ended March 31, 2023 from $586,000 for the three months ended March 31, 2022, due to a significantly lower balance of notes in 2023 as the majority of notes were converted to equity in December 2022.

Change in Fair Value Measurement of Notes Payable

Change in fair value of notes payable was a $6,000 loss for the three months ended March 31, 2023 and was a gain of $142,000 for the three months ended March 31, 2022, due to a significantly lower balance of notes in 2023 as the majority of notes were converted to equity in December 2022.

Gain on Extinguishments of Debt

Gain on extinguishments of debt was zero for the three months ended March 31, 2023 and $669,000 for the three months ended March 31, 2022 due to the settlement of notes payable accounted for under the fair value election. There was no settlement of notes payable during the three months ended March 31, 2022.

Liquidity and Capital Resources

Sources of Liquidity

Since our inception through March 31, 2023, our operations have been financed primarily by net cash proceeds from the sale and issuance of our common stock and borrowings under notes payable. We have also received upfront payments from our license agreements. As of March 31, 2023, we had $9.2 million in cash and an accumulated deficit of $158.1 million. We expect that our operating expenses will increase, and, as a result, anticipate that we will continue to incur increasing losses for the foreseeable future. Therefore, we will need to raise additional capital to fund our operations, which may be through the issuance of additional equity or through borrowings.

During the three months ended March 31, 2023, we issued 127,000 shares of our common stock to individual investors and received net proceeds of $0.8 million in connection with the ATM equity offering program.

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Future Funding Requirements

Our revenues to date have been primarily derived from our collaboration, research and license agreements as well as grants awarded by government agencies. We, however, have not generated any revenue from product sales, and do not know when, or if, we will generate any revenue from product sales. We do not expect to generate any revenue from product sales unless and until we obtain regulatory approval of and commercialize any of our product candidates. At the same time, we expect our expenses to increase in connection with our ongoing development activities, particularly as we continue the research, development and clinical trials of, and seeks regulatory approval for, our product candidates. In addition, subject to obtaining regulatory approval of any of our product candidates, we anticipate that we will need substantial additional funding in connection with our continuing operations. We plan to continue to fund our operations and capital requirements through equity and/or debt financing, but there are no assurances that we will be able to raise sufficient amounts of funding in the future on acceptable terms, or at all.

Our future funding requirements will depend on many factors, including:

•the progress, timing, scope, results and costs of the clinical trials of VISTA and preclinical studies or clinical trials of other potential product candidates we may choose to pursue in the future, including the ability to enroll patients in a timely manner for our clinical trials;

•the costs and timing of obtaining clinical and commercial supplies and validating the commercial manufacturing process for VISTA and any other product candidates we may identify and develop;

•the cost, timing and outcomes of regulatory approvals;

•the timing and amount of any milestone, royalty or other payments we are required to make pursuant to current or any future collaboration or license agreements;

•costs of acquiring or in-licensing other product candidates and technologies;

•the terms and timing of establishing and maintaining collaborations, licenses and other similar arrangements;

•the costs associated with attracting, hiring and retaining existing and additional qualified personnel as our business grows;

•efforts to enhance operational systems and hire additional personnel to satisfy our obligations as a public company, including enhanced internal controls over financial reporting; and

•the cost of preparing, filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights.

As of March 31, 2023, we had cash of $9.2 million. Our current capital resources, together with the $5.5 million net proceeds received in April 2023 from the registered direct offering plus the committed proceeds of $22.5 million pursuant to the second closing of the Private Placement, will be sufficient to fund our operating expenses and capital expenditure requirements into early 2025.

However, until we can generate a sufficient amount of product revenue to finance our cash requirements, we expect to finance our future cash needs primarily through the issuance of additional equity, borrowings and strategic alliances with partner companies. To the extent that we raise additional capital through the issuance of additional equity or convertible debt securities, the ownership interest of our shareholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of existing shareholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise additional funds through marketing and distribution arrangements or other collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate our product development or commercialization efforts or grant rights to develop and market product candidates to third parties that we would otherwise prefer to develop and market ourselves.

Cash Flows

The following table summarizes our cash flows for the periods indicated:

	Three Months Ended March 31,
	2023			2022
	(in thousands)
Net cash provided by (used in):
Operating activities	$	(4,940	)	$	(5,376	)
Investing activities		285			(15	)
Financing activities		750			(1,509	)
Net change in cash and cash equivalents	$	(3,905	)	$	(6,900	)

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Operating Activities

Cash used in operating activities for the three months ended March 31, 2023 was $4.9 million, consisting of a net loss of $6.5 million, partially offset by noncash charges of $1.2 million and a change in other net operating assets and liabilities of $0.4 million. The noncash charges primarily consisted of $1.1 million in stock-based compensation and $0.2 million noncash operating lease expense, partially offset by a $0.1 million gain on disposal of fixed assets. Our change in net operating assets and liabilities primarily resulted from a $3.2 million increase in accounts payable, partially offset by a $2.5 million reduction in accrued expenses and other current liabilities, a $0.2 million decrease in operating lease liability and a $0.3 million decrease in deferred revenue due to recognition of collaboration revenue in connection with the Merck Collaboration Agreement.

Cash used in operating activities for the three months ended March 31, 2022 was $5.4 million, consisting of a net loss of $5.0 million and noncash charges of $0.2 million and a change in other net operating assets and liabilities of $0.2 million. The noncash charges primarily consisted of a $0.7 million gain on debt extinguishment and $0.1 million in change in fair value measurement of notes payable, partially offset by $0.3 million in stock-based compensation and $0.2 million in noncash operating lease expense. The change in net operating assets and liabilities primarily resulted from a $0.6 million reduction in accrued expenses, $0.4 million decrease in deferred revenue due to recognition of license revenue in connection with the Genentech Agreement and a $0.2 million decrease in operating lease liability, partially offset by a $1.1 million increase in accounts payable due to the timing of payments.

Investing Activities

Cash provided by investing activities for the three months ended March 31, 2023 was $0.3 million, consisting primarily of cash received from the sale of certain property and equipment. Cash used in investing activitites for the three months ended March 31, 2022 was insignificant.

Financing Activities

Cash provided by financing activities for the three months ended March 31, 2023 was $0.8 million, primarily related to net proceeds from the issuance of our common stock to investors pursuant to the Sale Agreement.

Cash used in financing activities for the three months ended March 31, 2022 was $1.5 million, primarily related to $4.0 million for partial repayment of notes payable, partially offset by $2.4 million in borrowing of notes payable.

Debt Obligations

Notes Payable

As of March 31, 2023, we had outstanding notes payable in an aggregate principal amount of $0.8 million at interest rates that range from 3.75% to 6%, of which no payments are due within the next 12 months. The principal amount of each note payable is due at a specified periodic repayment date and/or at maturity, with such dates ranging from June 2024 to on or after September 2050.

See Note 5 to our consolidated financial statements included in this Quarterly Report for additional information regarding our notes payable.

Other Contractual Obligations and Commitments

Our cash requirements greater than 12 months are related to other contractual obligations and commitments related to license agreements and leases.

We have entered into a number of strategic license agreements pursuant to which we have acquired rights to specific assets, technology and intellectual property. In accordance with these agreements, we are obligated to pay, among other items, future contingent payments that are dependent upon future events such as our achievement of certain development, regulatory and commercial milestones royalties, and sublicensing revenue in the future, as applicable. As of March 31, 2023, the timing and likelihood of achieving the milestones and generating future product sales, and therefore payments that may become payable to these third parties, are uncertain.

We lease office and laboratory space for our corporate headquarters in Seattle, Washington under a lease agreement that expires in July 2024. As of March 31, 2023, undiscounted future minimum lease payments of $1.3 million remain pursuant to the lease agreement.

In addition, we enter into agreements in the normal course of business with various third parties for preclinical research studies, clinical trials, testing and other research and development services. Such agreements generally provide for termination upon notice, although obligate us to reimburse vendors for any time or costs incurred through the date of termination.

Critical Accounting Estimates

Our management’s discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses, and related disclosures. Our estimates are based on historical experience and on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual

27

results may differ materially from these estimates. Our critical accounting estimates used in the preparation of our financial statements for the three months ended March 31, 2023 were consistent with those in Part II, Item 7 of our Annual Report on Form 10-K.

We believe that the accounting principles used in the preparation of our financial statements for the three months ended March 31, 2023 were consistent with those in Part II, Item 7 of our Annual Report on Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company, as defined in Rule 12b-2 under the Exchange Act, for this reporting period and are not required to provide the information required under this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Prior to completion of the Merger, we were a private company and had limited accounting and financial reporting personnel and other resources with which to address our internal controls and related procedures. In connection with the audit of our financial statements for the years ended December 31, 2022 and 2021, our management and our independent registered public accounting firm identified material weaknesses in our internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and by the Public Company Accounting Oversight Board (United States), such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness for the year ended December 31, 2022 relates to accounting for complex financial instruments related to warrants issued to certain existing stockholders. The material weaknesses for the year ended December 31, 2021 relate to segregation of duties in finance and internal technical resources for complex transactions.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the fiscal quarter ended March 31, 2023. Based on this evaluation and for the reasons set forth above, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2023.

We are in the process of implementing measures designed to improve our internal control over financial reporting to remediate the material weaknesses. For example, we began to address the material weaknesses by implementing certain Sarbanes-Oxley controls during the first half of 2022. In October 2022, we hired a Chief Financial Officer to enhance internal controls and address the material weaknesses and other control deficiencies identified during the 2021 audit of the financial statements. We also plan to design and implement improved processes and internal controls, including ongoing senior management review and audit committee oversight. Additionally, we plan to further develop and implement formal policies, processes and documentation procedures relating to our financial reporting, including the oversight of third-party service providers. Our actions are subject to ongoing executive management review and will also be subject to audit committee oversight.

Notwithstanding the material weaknesses in internal control over financial reporting described above, our management has concluded that our consolidated financial statements included in this Quarterly Report on Form 10-Q are fairly stated in all material respects in accordance with accounting principles generally accepted in the United States of America.

Changes in Internal Control over Financial Reporting

Except as disclosed above, there has been no change in our internal control over financial reporting that occurred during the first quarter of 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over current or future financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, Kineta may be a party to litigation or subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, Kineta currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on Kineta’s business. Regardless of the outcome, litigation can have an adverse impact on Kineta because of defense and settlement costs, diversion of management resources and other factors. Kineta is currently not a party to any material legal proceedings.

Item 1A. Risk Factors.

There have been no material changes to our risk factors included in our 2022 Annual Report on Form 10-K, other than the following:

Kineta has a limited operating history, has incurred net losses since its inception, and anticipates that it will continue to incur significant losses for the foreseeable future. Kineta may never generate any revenue or become profitable or, if Kineta achieves profitability, may not be able to sustain it.

Kineta is a clinical-stage biotechnology company with a limited operating history that may make it difficult to evaluate the success of Kineta’s business to date and to assess its future viability. Kineta’s operations to date have been limited to organizing and staffing its company, business planning, raising capital, developing and optimizing its technology platform, identifying potential product candidates, undertaking research, preclinical studies and clinical trials for its product candidates, establishing and enhancing its intellectual property portfolio, and providing general and administrative support for these operations. Kineta’s KVA12123, KCP506 and LHF535 programs are in early clinical development, and Kineta’s CD27 program is in preclinical development. None of Kineta’s product candidates have been approved for commercial sale. Kineta has never generated any revenue from product sales and has incurred net losses each year since Kineta commenced operations. Kineta’s net losses were $6.5 million for the three months ended March 31, 2023 and $5.0 million for the three months ended March 31, 2022. Kineta expects that it will be several years, if ever, before it has a product candidate ready for regulatory approval and commercialization. Kineta expects to incur increasing levels of operating losses over the next several years and for the foreseeable future as Kineta advances its product candidates through clinical development. Kineta’s prior losses, combined with expected future losses, have had and will continue to have an adverse effect on Kineta’s stockholders’ deficit and working capital.

To become and remain profitable, Kineta must develop and eventually commercialize a product or products with significant market potential. This will require Kineta to be successful in a range of challenging activities, including completing preclinical studies and clinical trials of its product candidates, obtaining marketing approval for these product candidates, manufacturing, marketing and selling those products for which Kineta may obtain marketing approval and satisfying any post-marketing requirements. Kineta may never succeed in these activities and, even if Kineta succeeds in commercializing one or more of its product candidates, Kineta may never generate revenue that is significant or large enough to achieve profitability. In addition, as a young business, Kineta may encounter unforeseen expenses, difficulties, complications, delays and other known and unknown challenges. If Kineta does achieve profitability, it may not be able to sustain or increase profitability on a quarterly or annual basis and Kineta will continue to incur substantial research and development and other expenditures to develop and market additional product candidates. Kineta’s failure to become and remain profitable would decrease the value of its company and could impair its ability to raise capital, maintain its research and development efforts, expand its business or continue its operations. A decline in the value of the company could also cause Kineta’s stockholders to lose all or part of their investment.

Kineta has incurred recurring net losses and negative cash flows from operations since inception and, as of March 31, 2023, had an accumulated deficit of $158.1 million. The net loss attributable to Kineta was $6.5 million for the three months ended March 31, 2023. As of March 31, 2023, Kineta had unrestricted cash of $9.2 million. Kineta’s cash as of March 31, 2023, together with the $5.5 million net proceeds received in April 2023 from the registered direct offering plus the committed proceeds of $22.5 million pursuant to the second closing of the Private Placement, will be sufficient to fund operating expenses and capital expenditure requirements into early 2025. Kineta will need to raise additional capital to support its long-term plans and to complete clinical trials. Kineta intends to raise additional debt and equity financing from its current investors as well as prospective investors and intends to continue to pursue federal grant funding and may receive milestone payments from its license agreements, or other sources. However, there is no guarantee that any of these additional financing or opportunities will be executed or realized on acceptable terms, if at all. Kineta’s ability to raise additional capital through either the issuance of equity or debt is dependent on a number of factors including, but not limited to, Company prospects, which itself is subject to a number of development and business risks and uncertainties, as well as uncertainty about whether Kineta would be able to raise such additional capital at a price or on terms that are acceptable.

If Kineta continues to experience operating losses, and it is not able to generate additional liquidity through a capital raise or other cash infusion, Kineta might need to secure additional sources of funds, which may or may not be available to it. If Kineta is unable to raise additional capital in sufficient amounts or on terms acceptable to it, Kineta may have to significantly delay, scale back or discontinue the development of its product candidates or other research and development initiatives or take initial steps to cease operations.

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Kineta will need to obtain substantial additional funding to complete the development and commercialization of its product candidates. If Kineta is unable to raise this capital when needed, Kineta may be forced to delay, reduce or eliminate its product development programs or other operations.

Since its inception, Kineta has used substantial amounts of cash to fund its operations and expects its expenses to increase substantially during the next few years. The development of biopharmaceutical product candidates, especially immuno-oncology product candidates, is capital intensive. As Kineta’s product candidates enter and advance through preclinical studies and clinical trials, Kineta will need substantial additional funds to expand its clinical, regulatory, quality and manufacturing capabilities. In addition, if Kineta obtains marketing approval for any of its product candidates, Kineta expects to incur significant commercialization expenses related to marketing, sales, manufacturing and distribution. Furthermore, Kineta expects to incur additional costs associated with operating as a public company.

As of March 31, 2023, Kineta had $9.2 million in cash. Based upon Kineta’s current operating plan, Kineta estimates that its existing cash as of March 31, 2023, together with the $5.5 million net proceeds received in April 2023 from the registered direct offering plus the committed proceeds of $22.5 million pursuant to the second closing of the Private Placement expected to occur on July 25, 2023, will be sufficient to fund operating expenses and capital expenditure requirements into early 2025. However, the expected net proceeds from the second closing of the Private Placement may not be sufficient to fund any of Kineta’s product candidates through regulatory approval, and Kineta may need to raise substantial additional capital to complete the development and commercialization of its product candidates.

Kineta has based these estimates on assumptions that may prove to be incorrect or require adjustment as a result of business decisions, and Kineta could utilize its available capital resources sooner than it currently expects. Kineta’s future capital requirements will depend on many factors, some of which are outside of its control, including:

•the initiation, design, progress, timing, costs and results of drug discovery, preclinical studies and clinical trials of Kineta’s product candidates;

•the number and characteristics of product candidates that Kineta pursues;

•the number of clinical trials needed for regulatory approvals from the FDA, the European Commission (based on recommendation from the EMA), and any other regulatory authority;

•the length of Kineta’s clinical trials, including, among other things, as a result of delays in enrollment, difficulties enrolling sufficient subjects or delays or difficulties in clinical trial site initiations;

•increased costs associated with conducting Kineta’s clinical trials;

•successfully complete ongoing pre-clinical studies and clinical trials;

•the outcome, timing and costs of seeking regulatory approvals from the FDA, the European Commission, and any other regulatory authority;

•the costs of manufacturing Kineta’s product candidates, in particular for clinical trials in preparation for marketing approval and in preparation for commercialization;

•the costs of any third-party products used in Kineta’s combination clinical trials that are not covered by such third party or other sources;

•the costs associated with hiring additional personnel and consultants as Kineta’s preclinical, manufacturing and clinical activities increase;

•the receipt of marketing approval and revenue received from any commercial sales of any of Kineta’s product candidates, if approved;

•the cost of commercialization activities for any of Kineta’s product candidates, if approved, including marketing, sales and distribution costs;

•the emergence of competing therapies and other adverse market developments;

•the ability to establish and maintain strategic collaboration, licensing or other arrangements and the financial terms of such agreements;

•the extent to which Kineta in-licenses or acquires other products and technologies;

•the amount and timing of any payments Kineta may be required to make pursuant to its current or future license agreements;

•the costs involved in preparing, filing, prosecuting, maintaining, expanding, defending and enforcing patent claims, including litigation costs and the outcome of such litigation;

•Kineta’s need and ability to retain key management and hire scientific, technical and business personnel;

•Kineta’s implementation of additional internal systems and infrastructure, including operational, financial and management information systems;

•Kineta’s costs associated with expanding its facilities or building out its laboratory space;

•the effects of the disruptions to and volatility in the credit and financial markets in the United States and worldwide from the

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COVID-19 pandemic and the conflict between Russia and Ukraine; and

•the costs of operating as a public company.

Kineta will require additional capital to achieve its business objectives. Additional funds may not be available on a timely basis, on favorable terms, or at all, and such funds, if raised, may not be sufficient to enable Kineta to continue to implement its long-term business strategy. Further, Kineta’s ability to raise additional capital may be adversely impacted by potential worsening global economic conditions and the disruptions to and volatility in the credit and financial markets in the United States and worldwide resulting from the ongoing COVID-19 pandemic. If Kineta is unable to raise sufficient additional capital, Kineta could be forced to curtail its planned operations and the pursuit of its growth strategy.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On March 29, 2023, the Company issued 12,295 shares of its common stock to a consultant in consideration for services under a consulting agreement. The shares were valued at $6.10 per share, the closing price of the common stock on the day prior to the execution date of the consulting agreement. The Company issued the shares of common stock in reliance on an exemption from registration provided by Section 4(a)(2) of the Securities Act for transactions not involving any public offering.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.

Exhibit Number	Description
2.1++	Agreement and Plan of Merger, dated June 5, 2022, by and among the Company, Kineta Operating, Inc. and Yacht Merger Sub, Inc. (filed as Exhibit 2.2 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on June 6, 2022 and incorporated herein by reference).
2.2	Form of Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 5, 2022, by and among the Company, Kineta Operating, Inc. and Yacht Merger Sub, Inc. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on December 5, 2022 and incorporated herein by reference).
3.1	Fifth Amended and Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 to the Company’s Registration Statement on Form S-3 (File No. 333-228529) as filed with the SEC on November 23, 2018 and incorporated herein by reference).
3.2	Certificate of Amendment of Fifth Amended and Restated Certificate of Incorporation of the Company, dated December 22, 2020 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on December 30, 2020 and incorporated herein by reference).
3.3	Certificate of Amendment of Fifth Amended and Restated Certificate of Incorporation of the Company, dated December 22, 2020 (filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on December 30, 2020 and incorporated herein by reference).
3.4	Certificate of Amendment of Fifth Amended and Restated Certificate of Incorporation of the Company, dated December 16, 2022 (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on December 22, 2022 and incorporated herein by reference).
3.5	Certificate of Amendment of Fifth Amended and Restated Certificate of Incorporation of the Company, dated December 16, 2022 (filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on December 22, 2022 and incorporated herein by reference).
3.6	Fourth Amended and Restated By-laws of the Company, dated December 16, 2022 (filed as Exhibit 3.3 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on December 22, 2022 and incorporated herein by reference).
4.1	Form of Pre-Funded Warrant (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on April 21, 2023 and incorporated herein by reference).
4.2	Form of Common Warrant (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on April 21, 2023 and incorporated herein by reference).
4.3	Form of Wainwright Warrant (filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on April 21, 2023 and incorporated herein by reference).
10.1	Form of Securities Purchase Agreement, dated as of April 20, 2023 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on April 21, 2023 and incorporated herein by reference).
10.2	Form of Amendment No. 4 to the Securities Purchase Agreement dated May 1, 2023, by and among the Company and each of the institutional investors named therein (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-37695) as filed with the SEC on May 2, 2023 and incorporated herein by reference).
31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

++ Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Kineta, Inc.
Date: May 11, 2023	By:	/s/ Shawn Iadonato
		Shawn Iadonato, Ph.D.
		Chief Executive Officer and Director
		(Principal Executive Officer)
Date: May 11, 2023	By:	/s/ Keith A. Baker
		Keith A. Baker
		Chief Financial Officer
		(Principal Financial Officer)

33

EX-31

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Shawn Iadonato, certify that:

(1)I have reviewed this Quarterly Report on Form 10-Q of Kineta, Inc.;

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 11, 2023	/s/ Shawn Iadonato
	Shawn Iadonato
	Chief Executive Officer (Principal Executive Officer)

EX-31

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Keith A. Baker, certify that:

(1)I have reviewed this Quarterly Report on Form 10-Q of Kineta, Inc.;

(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4)The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5)The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 11, 2023	/s/ Keith A. Baker
	Keith A. Baker
	Chief Financial Officer (Principal Financial Officer)

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Kineta, Inc. (the “Company”) for the three months ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 11, 2023	/s/ Shawn Iadonato
	Shawn Iadonato
	Chief Executive Officer
Date: May 11, 2023	/s/ Keith A. Baker
	Keith A. Baker
	Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 09, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Entity Central Index Key	0001445283
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity File Number	001-37695
Entity Registrant Name	KINETA, INC./DE
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	20-8436652
Entity Address Address Line1	219 Terry Ave. N.
Entity Address Address Line 2	Suite 300
Entity Address City Or Town	Seattle
Entity Address State Or Province	WA
Entity Address Postal Zip Code	98109
City Area Code	206
Local Phone Number	378-0400
Security12b Title	Common Stock, par value $0.001 per share
Trading Symbol	KA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,490,302

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 9,238	$ 13,143
Prepaid expenses and other current assets	331	457
Total current assets	9,569	13,600
Property and equipment, net	72	249
Operating right-of-use asset	1,034	1,211
Rights from Private Placement	2,250	2,250
Restricted cash	125	125
Total assets	13,050	17,435
Current liabilities:
Accounts payable	9,835	6,635
Accrued expenses and other current liabilities	1,052	3,527
Deferred revenue	161	442
Operating lease liability, current portion	871	843
Finance lease liabilities, current portion	41	40
Total current liabilities	11,960	11,487
Notes payable	754	748
Operating lease liability, net of current portion	319	547
Finance lease liabilities, net of current portion	73	83
Total liabilities	13,106	12,865
Commitments and contingencies (Note 6)
Shareholders' equity (deficit):
Common stock, $0.001 par value; 125,000 shares authorized as of March 31, 2023 and December 31, 2022; 8,531 and 8,318 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	9	8
Additional paid-in capital	157,959	156,106
Accumulated deficit	(158,141)	(151,690)
Total stockholders' equity (deficit) attributable to Kineta, Inc.	(173)	4,424
Noncontrolling interest	117	146
Total stockholders' equity (deficit)	(56)	4,570
Total liabilities and stockholders' equity (deficit)	$ 13,050	$ 17,435

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	8,531,000	8,318,000
Common stock, shares outstanding	8,531,000	8,318,000

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Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Total revenues	$ 281,000	$ 433,000
Operating expenses:
Research and development	2,843,000	4,023,000
General and administrative	3,924,000	1,609,000
Total operating expenses	6,767,000	5,632,000
Loss from operations	(6,486,000)	(5,199,000)
Other (expense) income:
Interest expense (with related parties $xx for the three months ended March31,2023 and $xx for the three months ended March 31, 2022)	(23,000)	(584,000)
Change in fair value measurement of notes payable	(6,000)	142,000
Gain on extinguishments of debt, net	0	669,000
Other (expense) income, net	35,000	(3,000)
Total other expense,net	6,000	224,000
Net loss	(6,480,000)	(4,975,000)
Net (loss) income attributable to noncontrolling interest	(29,000)	1,000
Net loss attributable to Kineta, Inc.	$ (6,451,000)	$ (4,976,000)
Net loss per share, basic	$ (0.77)	$ (1.07)
Net loss per share, diluted	$ (0.77)	$ (1.07)
Weighted-average shares outstanding, basic	8,361,000	4,663,000
Weighted-average shares outstanding, diluted	8,361,000	4,663,000
Collaboration revenue [Member]
Revenues:
Total revenues	$ 281,000	$ 0
Licensing revenues [Member]
Revenues:
Total revenues	0	358,000
Grant revenues [Member]
Revenues:
Total revenues	$ 0	$ 75,000

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Condensed Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Interest expense, related party	$ 0	$ 489

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Condensed Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total Shareholders' Equity (Deficit) Attributable to Kineta [Member]	Noncontrolling Interests [Member]
Balance at Dec. 31, 2021	$ (11,949)	$ 5	$ 76,137	$ (88,282)	$ (12,140)	$ 191
Balance, Shares at Dec. 31, 2021		4,656
Issuance of common stock	98		98		98
Issuance of common stock, Shares		3
Issuance of common stock upon extinguishment of notes payable and accrued interest	235		235		235
Issuance of common stock upon extinguishment of notes payable and accrued interest, Shares		9
Issuance of common stock upon exercise of warrants, Shares		1
Stock-based compensation	285		285		285
Net loss	(4,975)			(4,976)	(4,976)	1
Balance at Mar. 31, 2022	(16,306)	$ 5	76,755	(93,258)	(16,498)	192
Balance, Shares at Mar. 31, 2022		4,669
Balance at Dec. 31, 2022	4,570	$ 8	156,106	(151,690)	4,424	146
Balance, Shares at Dec. 31, 2022		8,318
Issuance of common stock	752	$ 1	751		752
Issuance of common stock, Shares		127
Issuance of common stock upon exercise of warrants	7		7		7
Issuance of common stock upon exercise of warrants, Shares		51
Issuance of common stock upon vesting of RSUs, Shares		23
Issuance of common stock for services	41		41		41
Issuance of common stock for services, Shares		12
Stock-based compensation	1,054		1,054		1,054
Net loss	(6,480)			(6,451)	(6,451)	(29)
Balance at Mar. 31, 2023	$ (56)	$ 9	$ 157,959	$ (158,141)	$ (173)	$ 117
Balance, Shares at Mar. 31, 2023		8,531

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net loss	$ (6,480)	$ (4,975)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of notes payable	6	(142)
Non-cash stock-based compensation	1,054	285
Non-cash operating lease expense	177	159
Depreciation and amortization	2	16
Warrants issued for services	41	0
Gain on extinguishments of debt, net	0	(669)
Non-cash interest expense	10	107
Gain on disposal of asset	(110)	0
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	126	(109)
Accounts payable	3,200	1,084
Accrued expenses and other current liabilities	(2,485)	(600)
Operating lease liability	(200)	(174)
Deferred revenue	(281)	(358)
Net cash used in operating activities	(4,940)	(5,376)
Investing activities:
Purchases of property and equipment	0	(15)
Proceeds from sale of property and equipment	285	0
Net cash provided by (used in) investing activities	285	(15)
Financing activities:
Proceeds from notes payable	0	2,400
Proceeds from issuance of common stock	752	98
Proceeds from exercise of warrants	7	0
Repayments of notes payable	0	(4,000)
Repayments of finance lease liabilities	(9)	(7)
Net cash provided by (used in) financing activities	750	(1,509)
Net change in cash and restricted cash	(3,905)	(6,900)
Cash and restricted cash at beginning of year	13,268	11,219
Cash and restricted cash at end of year	9,363	4,319
Components of cash and restricted cash:
Cash	9,238	4,244
Restricted cash	125	75
Total cash and restricted cash	9,363	4,319
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 13	$ 477

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Organization and Liquidity

3 Months Ended

Mar. 31, 2023

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Liquidity

1.Organization and Liquidity

Description of Business

Kineta, Inc. (formerly Yumanity Therapeutics, Inc.) (together with its subsidiaries, the “Company”) is headquartered in Seattle, Washington.

The Company is a clinical-stage biotechnology company focused on developing new innovative therapies in the field of immuno-oncology and cancer. The Company also has drug programs in neurology (chronic pain) and an antiviral drug program in development for arenaviruses such as Lassa fever. Kineta Chronic Pain, LLC (“KCP”) was formed to develop new innovative therapies for pain management. Kineta Viral Hemorrhagic Fever, LLC (“KVHF”) was formed to develop a direct acting anti-viral therapy for the treatment of emerging diseases.

As of March 31, 2023 and December 31, 2022, the Company owns a majority interest of the outstanding issued equity of KCP and all of the outstanding issued equity of KVHF.

Private Placement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, the Company entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023 (such financing agreement, as amended, the “Securities Purchase Agreement”), to sell shares of the Company’s common stock in a private placement (the “Private Placement”). The first closing of the Private Placement occurred on December 16, 2022, and the Company issued 649,346 shares of its common stock and received net proceeds of $7.4 million. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023.

Liquidity

The Company has incurred recurring net losses and negative cash flows from operations since inception and, as of March 31, 2023, had an accumulated deficit of $158.1 million. The net loss attributable to the Company was $6.5 million for the three months ended March 31, 2023. As of March 31, 2023, the Company had unrestricted cash of $9.2 million. The Company’s cash as of March 31, 2023, together with the $5.5 million net proceeds received in April 2023 from the registered direct offering plus the committed proceeds of $22.5 million pursuant to the second closing of the Private Placement, will be sufficient to fund operating expenses and capital expenditure requirements into early 2025.

The Company will need to raise additional capital to support its long-term plans and to complete clinical trials. The Company intends to raise additional debt and equity financings from its current investors as well as prospective investors and may receive milestone payments from its license agreements, or other sources. However, there is no guarantee that any of these additional financings or opportunities will be executed or realized on acceptable terms, if at all. The Company’s ability to raise additional capital through either the issuance of equity or debt is dependent on a number of factors including, but not limited to, Company prospects, which itself is subject to a number of development and business risks and uncertainties, as well as uncertainty about whether the Company would be able to raise such additional capital at a price or on terms that are acceptable.

Geopolitical Developments

Geopolitical developments, such as the Russian invasion of Ukraine or deterioration in the bilateral relationship between the United States and China, may impact government spending, international trade and market stability, and cause weaker macro-economic conditions. The impact of these developments, including any resulting sanctions, export controls or other restrictive actions that may be imposed against governmental or other entities in, for example, Russia, have in the past contributed and may in the future contribute to disruption, instability and volatility in the global markets, which in turn could adversely impact the Company’s operations and weaken the Company’s financial results. Certain political developments may also lead to uncertainty to regulations and rules that may materially affect the Company’s business.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The unaudited condensed consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed consolidated financial statements, as of March 31, 2023 and for the three months ended March 31, 2023, are unaudited and have been prepared by the Company pursuant to the rules and regulations of the SEC for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures are adequate to make the information presented not misleading. There have been no changes to the Company’s significant accounting policies described in the Company’s Annual Report on Form 10-K

for the year ended December 31, 2022, filed with the SEC on March 31, 2023 (the “2022 Annual Report on Form 10-K”). These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto for the year ended December 31, 2022 included in the 2022 Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position as of March 31, 2023 and condensed consolidated results of operations and cash flows for the three months ended March 31, 2023 and 2022 have been made. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2023.

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and applicable SEC rules regarding annual financial reporting. The condensed consolidated financial statements include all accounts of the Company, its majority owned subsidiary KCP, and its wholly owned subsidiary, KVHF. All intercompany transactions and balances have been eliminated upon consolidation.

Noncontrolling interest in the accompanying condensed consolidated financial statements represents the proportionate share of equity which is not held by the Company. Net income (loss) of the non-wholly owned consolidated subsidiary is allocated to the Company and the holder(s) of the noncontrolling interests in proportion to their percentage ownership considering any preferences specific to the form of equity of the subsidiaries.

Revenue Recognition

Collaboration Revenues

In connection with the Merger, the Company became the successor in interest to an exclusive license and research collaboration agreement (the “Merck Collaboration Agreement”) with Merck & Co., Inc. to support research, development and commercialization of products for treatment of amyotrophic lateral sclerosis and frontotemporal lobar dementia. As of March 31, 2023, the Company had $161,000 in deferred revenue under the Merck Collaboration Agreement. The Company recognizes revenue using the cost-to-cost method, which it believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recognized as a percentage of actual cost incurred to the estimated costs to complete.

Accounting Pronouncements Recently Adopted

Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2020-08, “Codification Improvements to Subtopic 718-740, Compensation—Stock Compensation”. This ASU makes several improvements to the guidance in Subtopic 718-740, which addresses stock compensation. The adoption of ASU 2020-08 did not have a material impact on the consolidated financial statements.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

3.Fair Value Measurements

The carrying amounts of the Company’s financial instruments, including cash, restricted cash, and accounts payable, approximate fair value due to the short-term nature of those instruments.

2022 & 2020 Notes Payable

The Company elected the fair value option to account for certain convertible notes payable and notes payable, referred to as the 2022 convertible notes, 2020 convertible notes and 2020 notes (see Note 5), respectively, and collectively the 2022 & 2020 notes payable. The 2020 convertible notes and 2020 notes are referred to as the 2020 notes payable. Upon the closing of the Merger in December 2022, the 2022 convertible notes and 2020 convertible notes were settled with shares of the Company’s common stock (see Note 5).

2020 Notes

The 2020 notes were valued using a discounted cash flow model based on the contractual payment dates, a discount rate and the contractual maturity date. The significant unobservable inputs used in the fair value measurement of the 2020 note for the three months ended March 31, 2023 were as follows: discount rate of 15.0% and contractual payment date of 1.3 years, which resulted in a fair value range for the 2020 note of $225,000.

The significant unobservable inputs used in the fair value measurement of the 2020 notes for the three months ended March 31, 2022 were as follows: discount rate of 19.5% and contractual payment dates ranging from 0.3 to 1.2 years, which resulted in a fair value for the 2020 notes of $1.6 million.

2020 Convertible Notes

The 2020 convertible notes were valued using a scenario-based analysis and a discounted cash flow model. Two primary scenarios were considered: the qualified financing scenario and the repayment scenario. The value of the 2020 convertible notes under each scenario was probability weighted to arrive at the estimated fair value for the notes. The qualified financing scenario considers the value impact of conversion at the stated discount to the

issue price if the Company completes a qualifying financing event before the maturity date. The repayment scenario considers payment of principal at the contractual maturity dates.

The significant unobservable inputs used in the fair value measurement of the 2020 convertible notes for the three months ended March 31, 2022 were as follows: discount rate of 13.0% and contractual payment dates ranging from of 0.5 to 1.0 years, which resulted in a fair value for the 2020 convertible notes ranging from $0.9 million to $5.8 million.

2022 Convertible Notes

The 2022 convertible notes were valued using a scenario-based analysis and a discounted cash flow model. Two primary scenarios were considered: the qualified financing scenario and the automatic conversion scenario. The value of the 2022 convertible notes under each scenario was probability weighted to arrive at the estimated fair value for the notes. The qualified financing scenario considers the value impact of conversion at the stated discount to the issue price if the Company completes a qualifying financing event before the maturity date. The automatic conversion scenario estimates the timing of such conversion.

The significant unobservable inputs used in the fair value measurement of the 2020 notes for the three months ended March 31, 2022 were as follows: discount rate of 33.6% and contractual payment dates ranging from 0.3 years to 1.0 years, which resulted in a fair value of the 2022 convertible notes of $2.5 million.

The following table provides a summary of the changes in the fair value of the Company’s 2022 & 2020 notes payable measured using Level 3 inputs:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Balance at beginning of period	$	748	$	17,830
Issuance of 2022 convertible notes		—		2,400
Change in fair value of 2022 & 2020 notes payable		6		(142	)
Change in fair value of debt extinguishment		—		(669	)
Partial settlement of 2020 notes payable		—		(4,000	)
Balance at end of period	$	754	$	15,419

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Balance Sheet Components

3 Months Ended

Mar. 31, 2023

Statement Of Financial Position [Abstract]

Balance Sheet Components

4.Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
Laboratory equipment	$	60	$	779
Computer and software		72		73
Leasehold improvements		14		14
Total property and equipment		146		866
Less: Accumulated depreciation and amortization		74		617
Total property and equipment, net	$	72	$	249

Depreciation and amortization expense was $2,000 for the three months ended March 31, 2023 and $16,000 for the three months ended March 31, 2022. The Company has acquired certain laboratory equipment under agreements that are classified as finance leases. The carrying value of the equipment under finance leases included in the balance sheet as property and equipment was zero as of March 31, 2023 and $0.1 million as of December 31, 2022, net of accumulated depreciation. During the three months ended March 31, 2023, the Company disposed of assets with a net carrying value of $175,000 and received proceeds of $285,000. The Company recorded a gain on disposal of fixed assets, which is recorded in other income (expense) in the Statement of Operations.

Rights from Private Placement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, the Company entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023, to sell shares of the Company’s common stock in a private

placement (the “Private Placement”). The first closing of the Private Placement occurred on December 16, 2022, and the Company issued 649,346 shares of its common stock and received net proceeds of $7.4 million. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023. With respect to the second closing, the Company is obligated to sell and issue a number of shares of its common stock and the investors are obligated to buy such shares by the specified date and price equal to the volume-weighted average price of Company common stock for the five trading days prior to July 25, 2023 (“VWAP”) plus 10% of the VWAP. The Company has recorded a $2.3 million rights from Private Placement asset as of December 31, 2022 for the future right associated with the second closing.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of the periods presented:

	March 31, 2023		December 31, 2022
	(in thousands)
Compensation and benefits	$	486	$	745
Professional services		336		2,176
Accrued interest		141		132
Accrued clinical trial and preclinical costs		22		404
Other		67		70
Total accrued expenses and other current liabilities	$	1,052	$	3,527

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Notes Payable

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Note Payable

5.Notes Payable

Notes payable outstanding consisted of the following as of the periods presented:

	March 31, 2023				December 31, 2022
	Principal		Fair Value		Principal		Fair Value
	(in thousands)
Notes payable:
2020 notes	$	250	$	225	$	250	$	219
Other notes payable		379		379		379		379
Small Business Administration loan		150		150		150		150
Total notes payable	$	779		754	$	779		748
Less: current portion				—				—
Notes payable, net of current portion			$	754			$	748

The Company elected the fair value option for the 2020 notes (see Note 3). The other notes payable and Small Business Administration loan approximate their fair value because interest rates are at prevailing market rates.

Expected future minimum principal payments under the Company’s notes payables as of March 31, 2023 were as follows:

	Total
	(in thousands)
Years
2023	$	—
2024		629
2025		—
2026		—
2027		2
Thereafter		148
Total notes payable	$	779
Less: current portion		—
Notes payable, net of current portion	$	779

2020 Notes

In October 2020, the Company refinanced certain notes payable (the “2020 notes”), with an aggregate principal amount of $3.0 million with various investors, including one investor that is a related party (see Note 14). The interest rate was reduced on the 2020 notes from 16.0% to 6.0% from October 2020 until the earlier of (i) the Company raises at least $25.0 million in a single transaction or series of transactions after October 2020 and (ii) the original maturity dates (that is, various dates in the first quarter of 2022), after which the interest rate increases to 16.0%. The outstanding principal is due upon demand of the majority of the lenders with respect to (i) 50% on or after nine months after the original maturity date (or on or after various dates in the fourth quarter of 2022) and (ii) 50% on or after fifteen months after the original maturity date (or on or after various dates in

the second quarter of 2023). The Company may repay the 2020 notes at any time without penalty. Upon bankruptcy the lender can accelerate all amounts due immediately.

In August 2022, the Company settled $1.4 million in outstanding principal and accrued interest by issuing 59,000 shares of the Company’s non-voting common stock at a 15% discount. The Company extended the maturity date for the remaining 2020 notes with a principal balance of $250,000 to July 31, 2024 and reduced the interest rate to 6%, which was accounted for as a modification.

Other Notes Payable

The Company issued several other notes payable in 2019 and early 2020 at a 12.0% interest rate per annum, with the principal amounts due in full at maturity and interest due monthly or quarterly. The other notes payable were due to mature at various dates between December 2020 through early 2022.

The other notes payable were amended in October 2020 to increase the interest rate to 13.0% and extend the maturity date to be on demand by a majority of the holders on or after April 7, 2022, which resulted in a modification of the other notes payable. The Company may prepay the other notes payable at any time without penalty. In April 2022, the Company extended the maturity date for the remaining other notes payable with a principal balance of $0.4 million to June 30, 2024 and decreased the interest rate to 6.0% interest, which was accounted for as a modification.

Small Business Administration Loan

In August 2020, the Company received a U.S. Small Business Administration loan of $150,000 at a 3.75% interest rate and maturing in August 2050. Repayments of principal are due monthly beginning in June 2027 and interest is due monthly.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

6.Commitments and Contingencies

Leases

Operating Lease

The Company leases office and laboratory premises in Seattle, Washington pursuant to a lease agreement that commenced in April 2011 and expires in July 2024. The agreement requires monthly lease payments, is subject to annual rent escalations during the lease term, and contains two five-year options to extend the lease term. In June 2020, the Company amended the lease agreement to reduce the leased space for the premises from approximately 22,064 square feet to approximately 14,870 square feet, which was accounted for as a lease modification and partial termination of the lease.

Under the lease agreement, the Company is required to pay certain operating costs, in addition to rent, such as common area maintenance, taxes, utilities and insurance. Such additional charges are considered variable lease costs and are recognized in the period in which they are incurred. Rent expense for the three months ended March 31, 2023 was $237,000 and variable costs were $172,000. Rent expense for the three months ended March 31, 2022 was $208,000 and variable costs were $137,000.

The Company’s operating leases include various covenants, indemnities, defaults, termination rights, security deposits and other provisions customary for lease transactions of this nature.

Future undiscounted payments due under the operating lease as of March 31, 2023 were as follows:

Years	(in thousands)
Remainder of 2023	$	705
2024		561
Total undiscounted lease payments		1,266
Less: Imputed interest		(76	)
Operating lease liability		1,190
Less: Operating lease liability, current portion		(871	)
Operating lease liability, net of current portion	$	319

Supplemental information on the Company’s operating leases was as follows:

	Three Months Ended March 31,
	2023			2022
Cash paid for operating lease agreement (in thousands)	$	231		$	224
Remaining lease term (in years)		1.3			2.3
Incremental borrowing rate		10	%		10	%

The Company subleases portions of its premises in Seattle, Washington to third parties. Under the first sublease agreement, which commenced in December 2017, the Company subleases approximately 1,850 square feet. In October 2020 the sublease expiration date was extended from December 2020 to December 2022. In September 2022, the sublease expiration date was extended from December 2022 to December 2023. Under the second sublease agreement, which commenced in January 2019 and expired in June 2020, the Company subleased approximately 7,194 square feet. Sublease income was $49,000 for the three months ended March 31, 2023 and $46,000 for three months ended March 31, 2022 and recorded within operating expenses. As of March 31, 2023, the total minimum rentals to be received under the remaining noncancelable sublease was $120,000.

Finance Leases

Future undiscounted payments due under finance lease liabilities as of March 31, 2023 were as follows:

Years	(in thousands)
Remainder of 2023	$	37
2024		50
2025		32
2026		10
Total undiscounted lease payments		129
Less: Imputed interest		(15	)
Financing lease liabilities		114
Less: Financing lease liabilities, current portion		(41	)
Financing lease liabilities, net of current portion	$	73

Supplemental information on the Company’s financing leases was as follows (cash paid for finance lease agreements was not material):

	March 31, 2023			December 31, 2022
Weighted average remaining lease term (in years)		2.7			3.2
Incremental borrowing rate		9.3	%		9.3	%

Indemnification

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted under the Delaware General Corporation Law. The Company currently has directors’ and officers’ insurance.

Other Commitments

The Company has various manufacturing, clinical, research and other contracts with vendors in the conduct of the normal course of its business. Such contracts are generally terminable with advanced written notice and payment for any products or services received by the Company through the effective time of termination and any noncancelable and nonrefundable obligations incurred by the vendor at the effective time of the termination. In the case of terminating a clinical trial agreement at a particular site, the Company would also be obligated to provide continued support for appropriate medical procedures at that site until completion or termination.

Executive Employment Agreements

On September 20, 2022, the Company entered into an at-will employment agreement (“Baker Employment Agreement”), which became effective on October 3, 2022, with Keith Baker, its Chief Financial Officer. On September 28, 2022, the Company entered into at-will employment agreements (together with the Baker Employment Agreement, the “Executive Employment Agreements”), which became effective on December 16, 2022 upon the closing of the Merger, with Shawn Iadonato, its Chief Executive Officer, Craig Philips, its President and Pauline Kenny, its General Counsel.

The Executive Employment Agreements provide that, if the executive’s employment is terminated without Cause (as defined in the Executive Employment Agreements) or the executive resigns for Good Reason (as defined in the Executive Employment Agreements), provided that the executive signs the Release (as defined in the Executive Employment Agreement), the executive will be entitled to (i) accrued compensation, (ii) 39 weeks of pay (52 weeks in the case of Chief Executive Officer) (currently estimated at approximately $1.3 million in the aggregate), (iii) nine (9) months of COBRA benefits (12 months in the case of Chief Executive Officer) for executive and eligible dependents, and (iv) three (3) additional months of vesting of unvested and outstanding equity awards. If executive’s employment is terminated without Cause or the executive resigns for Good Reason within the Change in Control Protection Period (as defined in the Executive Employment Agreements), then in addition to (i)-(iv) above, executive will receive current year pro-rated cash bonus.

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Strategic License Agreements

3 Months Ended

Mar. 31, 2023

License Agreements Disclosure [Abstract]

Strategic License Agreements

7.Strategic License Agreements

Anti-VISTA Antibody Program License Agreement

In connection with the Company’s research into innovative immuno-oncology drug targets, the Company acquired rights to a group of fully human antibodies from Gigagen, Inc., a wholly owned subsidiary of Grifols, S.A. (“Gigagen”). Pursuant to a material transfer agreement with Gigagen dated August 2019 (the “2019 MTA”), the Company performed research activities to assess Gigagen’s anti-VISTA antibodies. Under an option and license agreement effective as of August 10, 2020, and as amended in November 2020, the parties agreed to terminate the 2019 MTA and Gigagen granted the Company a research license to continue additional evaluation of certain anti-VISTA antibodies. Gigagen also granted the Company an exclusive option to obtain an exclusive license to develop, manufacture and commercialize certain anti-VISTA antibodies during the option term commencing on the effective date and ended on December 31, 2020. The option and license agreement provides for a payment to Gigagen of $0.2 million within five days after the effective date. In addition, upon the Company’s exercise of its option during the option term, within 60 days after such date the Company is obligated to, among other things, (i) pay Gigagen an upfront option exercise fee of $0.4 million, and (ii) issue Gigagen non-voting common stock of the Company having an aggregate then-current fair market value of $0.25 million. The Company is also obligated to pay Gigagen (i) development and regulatory milestones up to an aggregate of $20.3 million based on achievement of certain predetermined milestones, (ii) sales milestones up to an aggregate of $8.0 million based on net sales thresholds, and (iii) royalties in the low-single digits on net sales for each licensed product sold by the Company during the term of the agreement. The Company accounted for the acquisition of rights as an asset acquisition because it did not meet the definition of a business. The Company recorded the upfront payment to Gigagen as research and development expense in the consolidated statements of operations because the acquired rights represented in-process research and development that have no alternative future use. From inception of the 2019 MTA through March 31, 2023, the Company has incurred $0.25 million in milestone expense and zero in royalties under the 2019 MTA.

Anti-CD27 Agonist Antibody Program License Agreement

In connection with the Company’s research into innovative immuno-oncology drug targets, the Company acquired rights to a group of fully human antibodies from Gigagen directed to CD27. Pursuant to a material transfer agreement with Gigagen dated October 28, 2020, as amended in April 2021 (the “2020 MTA”), the Company performed research activities to assess Gigagen’s anti-CD27 agonist antibodies. Under an option and license agreement effective as of June 9, 2021, as amended in August 2022, the parties agreed to terminate the 2020 MTA, Gigagen granted the Company a research license to continue additional evaluation of certain anti-CD27 agonist antibodies and also granted the Company an exclusive option to obtain an exclusive license to develop, manufacture and commercialize certain antibodies targeting CD27 during the option term commencing on the effective date and ending on December 31, 2022. The option and license agreement provides for the Company to pay Gigagen (i) an insignificant exclusivity payment within 60 days after the effective date, and (ii) an insignificant evaluation payment due by March 16, 2022. In addition, upon the Company’s exercise of its option, within 60 days after such option exercise date, the Company is obligated to, among other things, (i) pay Gigagen an upfront option exercise fee of $0.4 million, and (ii) issue Gigagen non-voting common stock of the Company having an aggregate then-current fair market value of $0.25 million. The Company is also obligated to pay Gigagen (i) development and regulatory milestones up to an aggregate of $20.0 million based on achievement of certain predetermined milestones, (ii) sales milestones up to an aggregate of $8.0 million based on net sales thresholds, and (iii) royalties in the low-single digits on net sales for each licensed product sold by the Company during the term of the agreement.

The Company accounted for the acquisition of rights as an asset acquisition because it did not meet the definition of a business. From inception of the 2020 MTA through March 31, 2023, none of the milestones have been achieved and no royalties were due under the agreement.

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Shareholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Shareholders' Equity

8.Stockholders’ Equity

Warrants to Purchase Common Stock

As of March 31, 2023, the Company had issued and outstanding warrants to purchase shares of the Company’s common stock as follows, which all met the condition for equity classification (in thousands):

Year Issued	Expiration Date	Number Outstanding as of December 31, 2022		Issued		Exercised			Cancelled/Expired		Number Outstanding as of March 31, 2023		Range of Exercise Price
2013	April 2023		12		—		—			—		12	$	10.17
2017	November 2023 - June 2025		131		—		—			—		131	$0.14 - $21.80
2019	March 2025 - April 2027		44		—		—			—		44	$0.14 - $21.80
2020	June 2023 - October 2023		45		—		—			—		45	$0.14 - $26.88
2022	August 2025 - December 2029		301		—		(51	)		—		250	$0.14 - $168.35
Total number of shares    underlying warrants			533		—		(51	)		—		482

During the three months ended March 31, 2023, the Company issued 51,000 shares of its common stock upon exercise of warrants and received proceeds of $7,000. The exercise price of all shares exercised was $0.14.

As of March 31, 2022, the Company had issued and outstanding warrants to purchase shares of the Company’s common stock as follows, which all met the condition for equity classification (in thousands):

Year Issued	Expiration Date	Number Outstanding as of December 31, 2021		Issued			Exercised		Cancelled/Expired		Number Outstanding as of March 31, 2022		Range of Exercise Price
2013	April 2023		12		—			—		—		12	$	10.17
2017	November 2023 - June 2025		203		—			—		—		203	$0.14 - $21.80
2019	March 2025 - April 2027		50		—			—		—		50	$0.14 - $21.80
2020	June 2023 - October 2023		73		(1	)		—		—		72	$0.14 - $26.88
Total number of shares    underlying warrants			338		(1	)		—		—		337

During the three months ended March 31, 2022, the Company issued 1,175 shares of its common stock upon exercise of warrants and received proceeds of $171. The exercise price of all shares exercised was $0.14.

Common Stock

As of March 31, 2023, there were 8,531,000 shares of common stock issued and outstanding.

Common stock reserved for future issuance consisted of the following as the period presented:

	March 31, 2023
	(in thousands)
Shares reserved for stock options and restricted stock units to purchase    common stock under equity incentive plans		860
Shares reserved for future issuance of equity awards		2,316
Shares reserved for exercise of warrants		482
Total		3,658

During the three months ended March 31, 2023, the Company sold 126,503 shares of its common stock to individual investors under the Sales Agreement (as defined below) and received net proceeds of $0.8 million in connection with the ATM (as defined below) equity offering program.

During the three months ended March 31, 2023, the Company issued 23,000 shares of its common stock upon vesting of restricted stock units. 19,000 shares were issued to members of the Company’s executive management, 2,000 shares were issued to directors of the Company and 2,000 were issued to other employees.

During the three months ended March 31, 2023, the Company issued 12,000 shares of its common stock for professional services and recorded $41,000 as consulting expense within general and administrative expense.

During the three months ended March 31, 2022, outstanding principal and accrued interest under the other notes payable of $235,000 was settled by issuing 9,000 shares of the Company’s common stock at fair value (based on a recent valuation) to the holders.

During the three months ended March 31, 2022, the Company sold 3,000 shares of its common stock to individual investors and received net proceeds of $98,000.

During the three months ended March 31, 2022, the Company issued 1,175 shares of its common stock upon exercise of warrants and received proceeds of $171. The exercise price of all shares exercised was $0.14.

Private Placement

The Private Placement (see Note 1) provides for the issuance of shares of the Company’s common stock in two closings, one of which occurred immediately following the closing of the Merger and one of which is expected to occur on July 25, 2023. The first closing of the Private Placement occurred on December 16, 2022 and the Company issued 649,346 shares of its common stock and received net proceeds of $7.4 million to investors that are related parties.

In connection with the Private Placement in December 2022, the Company issued 104,000 warrants to purchase shares of the Company’s non-voting common stock to investors in the Private Placement, each at an exercise price of $0.14, with exercise contingent upon the Merger closing and exercisable following the first closing of the Private Placement. The Company determined the contingent exercise provisions were indexed to the Company’s operations and the warrants qualified for equity classification.

The second closing of the Private Placement is expected to occur on July 25, 2023, at which time the Company will be obligated to issue a number of shares of its common stock based on the aggregate purchase price of $22.5 million divided by the purchase price equal to (a) the volume-weighted average price of Company common stock for the five trading days prior to July 25, 2023 (“VWAP”), plus (b) 10% of the VWAP. The Company determined that its obligation to issue additional shares of its common stock in the second closing at a premium to the VWAP was a freestanding financial instrument and a future right, which is subject to fair value. Accordingly, at inception the future right was recorded as an other asset in the Company’s consolidated balance sheet at its fair value equal to 10% of the second closing amount, or $2.3 million. The remaining proceeds from the first closing were allocated to the shares of common stock issued in the first closing and to the warrants as such instruments are equity-classified. The future right is subject to remeasurement at each reporting date, however, as the fair value will always equal 10% of the value of the future second closing until settlement, no changes in fair value are expected to be recorded in the Company’s consolidated statements of operations. The Company incurred insignificant issuance costs related to the Private Placement.

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Collaboration Agreement

3 Months Ended

Mar. 31, 2023

Revenue Recognition And Deferred Revenue [Abstract]

Collaboration Agreement

9.Collaboration Agreement

The following table shows the activity for the Company’s collaboration revenue agreement and deferred revenue (in thousands):

	March 31,
	2023			2022
	(in thousands)
Balance as of beginning of period	$	442		$	—
Decrease for provision of research services		(281	)		—
Balance as of end of period	$	161		$	—

Merck & Co., Inc.

In connection with the Merger, the Company became the successor in interest to an exclusive license and research collaboration agreement (the “Merck Collaboration Agreement”) with Merck & Co., Inc. to support research, development and commercialization of products for treatment of amyotrophic lateral sclerosis and frontotemporal lobar dementia. As of December 31, 2022, the Company had $442,000 in deferred revenue under the Merck Collaboration Agreement. The Company recognized $281,000 in revenue for the three months ended March 31, 2023 and zero for the three months ended March 31, 2022. As of March 31, 2023, the Company had $161,000 in deferred revenue under the Merck Collaboration Agreement.

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Grants Agreements

3 Months Ended

Mar. 31, 2023

Research And Development [Abstract]

Grant Agreements

10.Grant Agreements

National Institutes of Health

The Company was awarded a cost-reimbursable grant from the National Institutes of Health (the “NIH”), a federal medical research agency supporting scientific studies, to support the Company’s research studies for arenavirus hemorrhagic fever. This award was based on budgeted direct and indirect costs and may only be used for budgeted costs as allowable under certain government regulations and NIH’s policy and compliance requirements, subject to government audit. This award was $1.1 million for the budget period January 2021 to December 2021, which was later extended to December 31, 2022.

The Company recognized grant revenue under this grant of zero for the three months ended March 31, 2023, and $75,000 for the three months ended March 31, 2022.

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Licensing Revenue Agreement

3 Months Ended

Mar. 31, 2023

Revenue Recognition And Deferred Revenue [Abstract]

Licensing Revenue Agreement

11.Licensing Revenue Agreement

The following table shows the activity for the Company’s licensing revenue agreement and deferred revenue (in thousands):

	March 31,
	2023		2022
	(in thousands)
Balance as of beginning of period	$	—	$	1,041
Decrease for provision of research services		—		(358	)
Balance as of end of period	$	—	$	683

Genentech, Inc.

In April 2018, the Company entered into an exclusive option and license agreement with Genentech, as amended in November 2019 and October 2020 (such agreement, as amended, the “Genentech Agreement”), to develop the Company’s α9/α10 nicotinic acetylcholine receptor (“nAChR”) antagonists for the treatment of chronic pain. On December 27, 2022, the Company through its subsidiary KCP, received written notice from Genentech of its termination of the Genentech Agreement.

The Company recognized license revenue over time of zero under the Genentech Agreement with Genentech for the three months ended March 31, 2023, and $358,000 for the three months ended March 31, 2022. There was no deferred revenue related to this license as of March 31, 2023 as the Genentech Agreement was terminated in December 2022.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

12.Stock-Based Compensation

2008 Equity Incentive Plan

The Company’s 2008 Equity Incentive Plan (the “2008 Plan”) provided for the grant of incentive stock options, non-statutory stock options, restricted stock awards and restricted stock units to employees and non-employee service providers of the Company. Under the 2008 Plan, the exercise price of stock options granted were at 100% of the estimated fair market value of the Company’s common stock on the date of grant and the contractual term of stock options granted were between five and ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement.

In 2018, the 2008 Plan expired and only stock options granted prior to the 2008 Plan expiration remain outstanding as of March 31, 2023.

2010 Equity Incentive Plan

The Company’s 2010 Equity Incentive Plan (the “2010 Plan”) provided for the grant of incentive stock option, non-statutory stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards to employees and non-employee service providers of the Company. Under the 2010 Plan, the exercise price of stock options granted were at 100% of the estimated fair market value of the Company’s common stock on the date of grant and the contractual term of stock options granted did not exceed ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement. Stock appreciation rights (“SARs”) provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in cash. The rights granted have varying vesting terms, including SARs that vest immediately on the grant date and upon satisfaction of the service-based requirement, typically three to five years. The maximum fair value is limited to four times the exercise price.

In February 2020, the 2010 Plan expired and only stock options granted prior to the expiration remain outstanding as of March 31, 2023. As of March 31, 2023, there were no SARs outstanding.

2020 Equity Incentive Plan

The Company’s 2020 Equity Incentive Plan (the “2020 Plan”) authorizes the grant of equity awards for up to 206,000 shares of the Company’s voting common stock and 206,000 of the Company’s non-voting common stock.

The 2020 Plan provides for the grant of incentive stock options, non-statutory stock options and restricted stock to employees and non-employee service providers. Under the 2020 Plan, the contractual term of stock options shall not exceed ten years and the exercise price of stock options granted shall not be less than 100% of the estimated fair market value of the Company’s common stock on the date of grant. However, the exercise price of incentive stock options granted to a 10% stockholder shall not be less than 110% of the fair market value of the common stock on the date of grant and the contractual term shall not exceed ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement. Restricted stock has vesting terms that vest immediately on the grant date or upon satisfaction of the service-based requirement, typically

four years or the performance-based requirement. The Company has a repurchase right exercisable upon termination of continuous service with respect to restricted stock for any shares that are issued and unvested.

In December 2022, the 2020 Plan expired and only stock options granted prior to the 2020 Plan expiration remain outstanding as of March 31, 2023.

2022 Equity Incentive Plan

In December 2022, the Company approved the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan provides for the grant of incentive stock option, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights (“SARs”), performance units and performance shares to employees, directors and independent contractors of the Company. Under the 2022 Plan, the exercise price of stock options grants shall be at 100% fair market value of the Company’s common stock on the date of grant and the contractual term of stock options granted shall not exceed ten years. Options become vested and, if applicable, exercisable based on terms determined by the Company’s board of directors or other plan administrator on the date of grant, which is continued employment or service as defined in each option agreement. SARs provide a participant with the right to receive the aggregate appreciation in stock price over the market price of the Company’s common stock at the date of grant, payable in cash or in shares of equivalent value.

Stock Option Activity

The following table summarizes stock option activity under the Company’s equity incentive plans:

	Outstanding Stock Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
	(in thousands, except per share amounts and years)
December 31, 2022		734		$	22.67		5.4	$	—
Forfeited		(17	)	$	25.56
Expired		(9	)	$	10.90
Outstanding as of March 31, 2023		708		$	22.75		5.2	$	—
Exercisable as of March 31, 2023		573		$	21.73		4.5	$	—

Fair Value of Stock Options

The fair value of stock options granted for employee and non-employee awards was estimated at the grant date using the Black-Scholes option pricing model based on the following assumptions:

	Three Months Ended March 31,
	2023	2022
Expected volatility		84.2%-84.7%
Expected term (years)		5.8-6.6
Risk-free interest rate		1.6%-2.2%
Expected dividend yield		0%-0%

The Company did not grant any stock options during the three months ended March 31, 2023.

Restricted Stock

The Company has granted restricted stock units (“RSUs”) under its equity incentive plans with both service-based and performance-based vesting conditions. As of March 31, 2023, the Company’s outstanding RSUs all related to RSUs with performance-based conditions that vest based on meeting certain liquidity events, with a grant date fair value of $4.1 million.

The following table summarizes the Company’s restricted stock activity consisting of RSUs:

	Number of Restricted Stock (RSUs)			Weighted-Average Grant Date Fair Value Per Share
	(in thousands, excepts per share amounts)
Outstanding and unvested as of December 31, 2022		175		$	26.89
Released		(23	)	$	27.03
Outstanding and unvested as of March 31, 2023		152		$	26.87

Stock-Based Compensation

The following table summarizes total stock-based compensation included in the Company’s consolidated statements of operations:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Research and development	$	77	$	165
General and administrative		977		120
Total stock-based compensation	$	1,054	$	285

As of March 31, 2023, there was $2.4 million of unrecognized stock-based compensation related to stock options and RSUs outstanding, which is expected to be recognized over a weighted-average remaining service period of 1.1 years.

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Net Loss Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

13.Net Loss Per Share

The following table summarizes the computation of basic and diluted net loss per share:

	Three Months Ended March 31,
	2023			2022
	(in thousands, excepts per share amounts)
Numerator:
Net loss attributable to Kineta, Inc.	$	(6,451	)	$	(4,976	)
Denominator:
Weighted-average common shares outstanding, basic and diluted		8,361			4,663
Net loss per share, basic and diluted	$	(0.77	)	$	(1.07	)

1. Included in the denominator for the three months ended March 31, 2023 and 2022, were 520,000 and 234,000 weighted-average shares of common stock warrants, respectively, with an exercise price of $0.14 issued for nominal consideration.

The following outstanding potentially dilutive common stock equivalents were excluded from the computation of diluted net loss per share as of the periods presented because including them would have been antidilutive:

	March 31, 2023		December 31, 2022
	(in thousands)
Common stock options		708		733
Unvested restricted stock subject to repurchase		152		175
Warrants to purchase common stock		482		533
Vested restricted stock subject to recall		56		56
Total		1,398		1,497

Defined Contribution Plan

The Company sponsors a 401(k) Plan whereby all employees are eligible to participate in the 401(k) Plan after meeting certain eligibility requirements. Participants may elect to have a portion of their salary deferred and contributed to the 401(k) plan, subject to certain limitations. The Company provided matching contributions of $40,000 for the three months ended March 31, 2023 and $41,000 for the three months ended March 31, 2022.

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Related Party Transactions

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

14.Related Party Transactions

RSU Vesting

During the three months ended March 31, 2023, the Company issued 23,000 shares of its common stock upon vesting of restricted stock units. 19,000 shares were issued to members of the Company’s executive management and 2,000 shares were issued to directors of the Company.

Notes Payable

During the three months ended March 31, 2022, the Company made a $4.0 million cash payment of principal to one of its creditors that is a director of the Company as a partial repayment for a note issued pursuant to the 2020 convertible notes and recognized a $669,000 gain on extinguishment.

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Subsequent Events

3 Months Ended

Mar. 31, 2023

Subsequent Events

15.Subsequent Events

The Company evaluated subsequent events through the date these consolidated financial statements were issued.

Employee and Director Equity Awards

On April 12, 2023, the Company’s board of directors (the “Board”) granted to various employees and Board members stock options to purchase an aggregate of 1,171,920 shares of common stock at an exercise price of $3.28 per share. Included in the grant were an option to purchase 207,000 shares of common stock to Shawn Iadonato, Chief Executive Officer; an option to purchase 165,600 shares of common stock to Craig Philips, President; an option to purchase 120,060 shares of common stock to Keith Baker, Chief Financial Officer; an option to purchase 120,060 shares of common stock to Pauline Kenny, General Counsel; an option to purchase 120,060 shares of common stock to Thierry Guillaudeux, Chief Scientific Officer; an option to purchase 20,000 shares of common stock to each of David Arkowitz and Richard Peters, each a member of the Board, pursuant to his appointment to the Board; an option to purchase 12,500 shares of common stock to each of Raymond Bartoszek, Marion R. Foote, David Arkowitz and Richard Peters, each a member of the Board, pursuant to an annual Board award grant; and 349,140 shares of common stock to other employees. These stock option grants were issued under the 2022 Equity Incentive Plan. The option awards granted to Dr. Iadonato, Mr. Philips, Mr. Baker, Ms. Kenny and Dr. Guillaudeux vested 25% on the date of grant and the remaining shares vest 1/36th monthly over 36 months beginning May 1, 2023. The option awards granted to Mr. Arkowitz and Dr. Peters pursuant to their appointment to the Board vest 1/36th monthly over 36 months beginning February 1, 2023. The option awards granted to Mr. Bartoszek, Ms. Foote, Mr. Arkowitz and Dr. Peters for their annual Board award grant vest 1/12th monthly over 12 months beginning July 7, 2023.

Equity Raise - Registered Direct Offering

On April 20, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an institutional investor (the “Investor”), pursuant to which the Company issued and sold, in a registered direct offering priced at-the-market under the rules of The Nasdaq Stock Market (the “Registered Offering”), (i) an aggregate of 948,000 shares of its common stock, at a purchase price of $4.21 per share and (ii) pre-funded warrants exercisable for up to 477,179 shares of its common stock (the “Pre-Funded Warrants”) to the Investor at a purchase price of $4.209 per Pre-Funded Warrant, for aggregate gross proceeds from the Offerings (as defined below) of approximately $6.0 million before deducting the placement agent fee (as described in greater detail below) and related offering expenses.

Each Pre-Funded Warrant represents the right to purchase one share of common stock at an exercise price of $0.001 per share. The Pre-Funded Warrants are exercisable immediately and may be exercised at any time until the Pre-Funded Warrants are exercised in full.

In a concurrent private placement (the “Private Placement” and, together with the Registered Offering, the “Offering”), the Company issued to the Investor warrants to purchase up to 1,425,179 shares of common stock (the “Common Warrants”) at an exercise price of $4.08 per share. The Common Warrants are exercisable immediately and will expire five and one-half years from the initial exercise date. In connection with the Offering, the Company entered into an engagement letter (the “Engagement Letter”) with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which Wainwright agreed to serve as the exclusive placement agent for the issuance and sale of securities of the Company pursuant to the Purchase Agreement. As compensation for such placement agent services, the Company paid Wainwright an aggregate cash fee equal to $420,000, a non-accountable expense of $35,000 and $50,000 for legal and other expenses as actually incurred. The total offering-related fees were approximately $520,000, which resulted in net proceeds to the Company of $5.5 million. On April 24, 2023, the Company also issued to Wainwright or its designees warrants to purchase 71,259 shares of common stock (the “Wainwright Warrants”). The Wainwright Warrants have a term of five years from the commencement of sales in the Offering, and have an exercise price of $5.2625 per share.

Amendment No. 4 to the Securities Purchase Agreement

In connection and concurrently with the execution of the Merger Agreement, on June 5, 2022, the Company entered into a financing agreement, as amended on October 24, 2022, December 5, 2022, March 29, 2023 and May 1, 2023 (such financing agreement, as amended, the “Securities Purchase Agreement”), to sell shares of the Company’s common stock to certain institutional investors in a private placement (the “Private Placement”). The Company and the investors entered into the amendment to the Securities Purchase Agreement on May 1, 2023 to, among other things, extend the date of the second closing. The second closing of the Private Placement for an aggregate purchase price of $22.5 million is expected to occur on July 25, 2023.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and applicable SEC rules regarding annual financial reporting. The condensed consolidated financial statements include all accounts of the Company, its majority owned subsidiary KCP, and its wholly owned subsidiary, KVHF. All intercompany transactions and balances have been eliminated upon consolidation.

Noncontrolling interest in the accompanying condensed consolidated financial statements represents the proportionate share of equity which is not held by the Company. Net income (loss) of the non-wholly owned consolidated subsidiary is allocated to the Company and the holder(s) of the noncontrolling interests in proportion to their percentage ownership considering any preferences specific to the form of equity of the subsidiaries.

Revenue Recognition

Revenue Recognition

Collaboration Revenues

In connection with the Merger, the Company became the successor in interest to an exclusive license and research collaboration agreement (the “Merck Collaboration Agreement”) with Merck & Co., Inc. to support research, development and commercialization of products for treatment of amyotrophic lateral sclerosis and frontotemporal lobar dementia. As of March 31, 2023, the Company had $161,000 in deferred revenue under the Merck Collaboration Agreement. The Company recognizes revenue using the cost-to-cost method, which it believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recognized as a percentage of actual cost incurred to the estimated costs to complete.

Accounting Pronouncements Recently Adopted

Accounting Pronouncements Recently Adopted

Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2020-08, “Codification Improvements to Subtopic 718-740, Compensation—Stock Compensation”. This ASU makes several improvements to the guidance in Subtopic 718-740, which addresses stock compensation. The adoption of ASU 2020-08 did not have a material impact on the consolidated financial statements.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Summary of Changes in Fair Value of 2022 & 2020 Notes Payable Measured Using Level 3 Inputs

The following table provides a summary of the changes in the fair value of the Company’s 2022 & 2020 notes payable measured using Level 3 inputs:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Balance at beginning of period	$	748	$	17,830
Issuance of 2022 convertible notes		—		2,400
Change in fair value of 2022 & 2020 notes payable		6		(142	)
Change in fair value of debt extinguishment		—		(669	)
Partial settlement of 2020 notes payable		—		(4,000	)
Balance at end of period	$	754	$	15,419

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Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2023

Statement Of Financial Position [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
Laboratory equipment	$	60	$	779
Computer and software		72		73
Leasehold improvements		14		14
Total property and equipment		146		866
Less: Accumulated depreciation and amortization		74		617
Total property and equipment, net	$	72	$	249

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of the periods presented:

	March 31, 2023		December 31, 2022
	(in thousands)
Compensation and benefits	$	486	$	745
Professional services		336		2,176
Accrued interest		141		132
Accrued clinical trial and preclinical costs		22		404
Other		67		70
Total accrued expenses and other current liabilities	$	1,052	$	3,527

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Notes Payable (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable outstanding consisted of the following as of the periods presented:

	March 31, 2023				December 31, 2022
	Principal		Fair Value		Principal		Fair Value
	(in thousands)
Notes payable:
2020 notes	$	250	$	225	$	250	$	219
Other notes payable		379		379		379		379
Small Business Administration loan		150		150		150		150
Total notes payable	$	779		754	$	779		748
Less: current portion				—				—
Notes payable, net of current portion			$	754			$	748

Schedule of Expected Future Minimum Principal

Expected future minimum principal payments under the Company’s notes payables as of March 31, 2023 were as follows:

	Total
	(in thousands)
Years
2023	$	—
2024		629
2025		—
2026		—
2027		2
Thereafter		148
Total notes payable	$	779
Less: current portion		—
Notes payable, net of current portion	$	779

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments And Contingencies Disclosure [Abstract]

Schedule of Operating Lease Future Undiscounted Payments

Future undiscounted payments due under the operating lease as of March 31, 2023 were as follows:

Years	(in thousands)
Remainder of 2023	$	705
2024		561
Total undiscounted lease payments		1,266
Less: Imputed interest		(76	)
Operating lease liability		1,190
Less: Operating lease liability, current portion		(871	)
Operating lease liability, net of current portion	$	319

Schedule of Operating Leases Supplemental Information

Supplemental information on the Company’s operating leases was as follows:

	Three Months Ended March 31,
	2023			2022
Cash paid for operating lease agreement (in thousands)	$	231		$	224
Remaining lease term (in years)		1.3			2.3
Incremental borrowing rate		10	%		10	%

Schedule of Finance Lease Future Undiscounted Payments

Future undiscounted payments due under finance lease liabilities as of March 31, 2023 were as follows:

Years	(in thousands)
Remainder of 2023	$	37
2024		50
2025		32
2026		10
Total undiscounted lease payments		129
Less: Imputed interest		(15	)
Financing lease liabilities		114
Less: Financing lease liabilities, current portion		(41	)
Financing lease liabilities, net of current portion	$	73

Schedule of Finance Leases Supplemental Information

Supplemental information on the Company’s financing leases was as follows (cash paid for finance lease agreements was not material):

	March 31, 2023			December 31, 2022
Weighted average remaining lease term (in years)		2.7			3.2
Incremental borrowing rate		9.3	%		9.3	%

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Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of Warrants to Purchase

As of March 31, 2023, the Company had issued and outstanding warrants to purchase shares of the Company’s common stock as follows, which all met the condition for equity classification (in thousands):

Year Issued	Expiration Date	Number Outstanding as of December 31, 2022		Issued		Exercised			Cancelled/Expired		Number Outstanding as of March 31, 2023		Range of Exercise Price
2013	April 2023		12		—		—			—		12	$	10.17
2017	November 2023 - June 2025		131		—		—			—		131	$0.14 - $21.80
2019	March 2025 - April 2027		44		—		—			—		44	$0.14 - $21.80
2020	June 2023 - October 2023		45		—		—			—		45	$0.14 - $26.88
2022	August 2025 - December 2029		301		—		(51	)		—		250	$0.14 - $168.35
Total number of shares    underlying warrants			533		—		(51	)		—		482

Schedule of Common Stock for Future Issuance

Common stock reserved for future issuance consisted of the following as the period presented:

	March 31, 2023
	(in thousands)
Shares reserved for stock options and restricted stock units to purchase    common stock under equity incentive plans		860
Shares reserved for future issuance of equity awards		2,316
Shares reserved for exercise of warrants		482
Total		3,658

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Collaboration Agreement (Tables)

3 Months Ended

Mar. 31, 2023

Revenue Recognition And Deferred Revenue [Abstract]

Summary of collaboration revenue agreement and deferred revenue

The following table shows the activity for the Company’s collaboration revenue agreement and deferred revenue (in thousands):

	March 31,
	2023			2022
	(in thousands)
Balance as of beginning of period	$	442		$	—
Decrease for provision of research services		(281	)		—
Balance as of end of period	$	161		$	—

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Licensing Revenue Agreement - (Tables)

3 Months Ended

Mar. 31, 2023

Revenue Recognition And Deferred Revenue [Abstract]

Summary of Licensing Revenue Agreements And Deferred Revenue

The following table shows the activity for the Company’s licensing revenue agreement and deferred revenue (in thousands):

	March 31,
	2023		2022
	(in thousands)
Balance as of beginning of period	$	—	$	1,041
Decrease for provision of research services		—		(358	)
Balance as of end of period	$	—	$	683

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity

The following table summarizes stock option activity under the Company’s equity incentive plans:

	Outstanding Stock Options			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
	(in thousands, except per share amounts and years)
December 31, 2022		734		$	22.67		5.4	$	—
Forfeited		(17	)	$	25.56
Expired		(9	)	$	10.90
Outstanding as of March 31, 2023		708		$	22.75		5.2	$	—
Exercisable as of March 31, 2023		573		$	21.73		4.5	$	—

Summary of Fair Value of Stock Options Granted for Employee and Non-Employee Awards

The fair value of stock options granted for employee and non-employee awards was estimated at the grant date using the Black-Scholes option pricing model based on the following assumptions:

	Three Months Ended March 31,
	2023	2022
Expected volatility		84.2%-84.7%
Expected term (years)		5.8-6.6
Risk-free interest rate		1.6%-2.2%
Expected dividend yield		0%-0%

Summary of Companies Restricted Stock Activity

The following table summarizes the Company’s restricted stock activity consisting of RSUs:

	Number of Restricted Stock (RSUs)			Weighted-Average Grant Date Fair Value Per Share
	(in thousands, excepts per share amounts)
Outstanding and unvested as of December 31, 2022		175		$	26.89
Released		(23	)	$	27.03
Outstanding and unvested as of March 31, 2023		152		$	26.87

Summary of Total Stock-Based Compensation

The following table summarizes total stock-based compensation included in the Company’s consolidated statements of operations:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Research and development	$	77	$	165
General and administrative		977		120
Total stock-based compensation	$	1,054	$	285

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Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss per Share

The following table summarizes the computation of basic and diluted net loss per share:

	Three Months Ended March 31,
	2023			2022
	(in thousands, excepts per share amounts)
Numerator:
Net loss attributable to Kineta, Inc.	$	(6,451	)	$	(4,976	)
Denominator:
Weighted-average common shares outstanding, basic and diluted		8,361			4,663
Net loss per share, basic and diluted	$	(0.77	)	$	(1.07	)

1. Included in the denominator for the three months ended March 31, 2023 and 2022, were 520,000 and 234,000 weighted-average shares of common stock warrants, respectively, with an exercise price of $0.14 issued for nominal consideration.

Schedule of Antidilutive Securities Excluded from Computation of Diluted Weighted-average Shares Outstanding

The following outstanding potentially dilutive common stock equivalents were excluded from the computation of diluted net loss per share as of the periods presented because including them would have been antidilutive:

	March 31, 2023		December 31, 2022
	(in thousands)
Common stock options		708		733
Unvested restricted stock subject to repurchase		152		175
Warrants to purchase common stock		482		533
Vested restricted stock subject to recall		56		56
Total		1,398		1,497

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Organization and Liquidity - Additional Information (Details) - USD ($)			1 Months Ended	3 Months Ended
	Jul. 25, 2023	Dec. 16, 2022	Apr. 30, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Organization And Liquidity [Line Items]
Proceeds from issuance of common stock				$ 752,000	$ 98,000
Accumulated deficit				158,141,000		$ 151,690,000
Net loss				6,451,000	4,976,000
Net loss				(6,480,000)	(4,975,000)
Cash				9,238,000	$ 4,244,000	$ 13,143,000
Proceeds From Sale Of Other Assets 1				285,000,000
Private Placement [Member]
Organization And Liquidity [Line Items]
Proceeds from issuance of common stock		$ 7,400,000
Private Placement [Member] | Subsequent Event
Organization And Liquidity [Line Items]
Proceeds from issuance of common stock			$ 5,500,000
Rights from Private Placement	$ 22,500,000
Net proceeds from Private Placement			$ 22,500
Merger Agreement
Organization And Liquidity [Line Items]
Issuance of common stock, Shares		649,346
Proceeds from issuance of common stock		$ 7,400,000
Rights from Private Placement				$ 22,500,000

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Summary Of Significant Accounting Policies [Line Items]
Deferred Revenue	$ 161,000
Accounting Standards Update 2021-04
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle accounting standards update, adopted		true
Change in accounting principle accounting standards update, immaterial effect		true

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Reverse Merger (Additional Information) (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Common Stock Shares Authorized	125,000,000	125,000,000
Common Stock Par Or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock Shares Outstanding	8,531,000	8,318,000

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Fair Value Measurements - Additional Information (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Notes payable	$ 754	$ 748
2022 Convertible Notes | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, term			3 months 18 days
2022 Convertible Notes | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, term			1 year
Convertible debt			$ 2,500
2020 Convertible Notes | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, term			6 months
Convertible debt			$ 900
2020 Convertible Notes | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, term			1 year
Convertible debt			$ 5,800
2020 Notes | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, term			3 months 18 days
2020 Notes | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, term	1 year 3 months 18 days		1 year 2 months 12 days
Convertible debt	$ 225,000		$ 1,600
Discount Rate | 2022 Convertible Notes | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, measurement input			0.336
Discount Rate | 2020 Convertible Notes | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, measurement input	0.130
Discount Rate | 2020 Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, measurement input			0.195
Discount Rate | 2020 Notes | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Long-term debt, measurement input	0.150

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Fair Value Measurements - Summary of Changes in Fair Value of 2022 & 2020 Notes Payable Measured Using Level 3 Inputs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance at beginning of period	$ 748	$ 17,830
Issuance of 2022 convertible notes	0	2,400
Change in fair value of 2022 & 2020 notes payable	6	(142)
Change in fair value of debt extinguishment	0	(669)
Partial settelement of 2020 notes payable	0	(4,000)
Balance at end of period	$ 754	$ 15,419

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Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Components [Line Items]
Total property and equipment	$ 146	$ 866
Less: Accumulated depreciation and amortization	74	617
Total property and equipment, net	72	249
Laboratory Equipment
Balance Sheet Components [Line Items]
Total property and equipment	60	779
Computer and Software
Balance Sheet Components [Line Items]
Total property and equipment	72	73
Leasehold Improvements
Balance Sheet Components [Line Items]
Total property and equipment	$ 14	$ 14

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Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Balance Sheet Components [Abstract]
Professional services	$ 336	$ 2,176
Compensation and benefits	486	745
Accrued clinical trial and preclinical costs	22	404
Accrued interest	141	132
Other	67	70
Total accured expense and other current liabilities	$ 1,052	$ 3,527

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Balance Sheet Components (Additional Information) (Details) - USD ($) $ in Thousands			3 Months Ended		12 Months Ended
	May 31, 2023	Dec. 16, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Balance Sheet Components [Line Items]
Property and equipment, net			$ 72		$ 249
Proceeds from disposal of assets			175,000
Proceeds From Sale Of Other Assets 1			285,000
Depreciation and amortization expense			$ 2,000	$ 16,000
Common stock, shares issued			8,531,000		8,318,000
Proceeds From Issuance Of Common Stock			$ 752	$ 98
Private Placement
Balance Sheet Components [Line Items]
Future Right Recorded as Other Asset					$ 2,300
Sell and purchase of its common stock, description					With respect to the second closing, the Company is obligated to sell and issue a number of shares of its common stock and the investors are obligated to buy such shares by the specified date and price equal to the volume-weighted average price of Company common stock for the five trading days prior to July 25, 2023 (“VWAP”) plus 10% of the VWAP.
Common stock, shares issued		649,346
Proceeds From Issuance Of Common Stock		$ 7,400
Private Placement | Forecast [Member]
Balance Sheet Components [Line Items]
aggregate purchase price	$ 22,500
Future Right Recorded as Other Asset	$ 2,300
Equipment
Balance Sheet Components [Line Items]
Property and equipment, net			$ 100		$ 100

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Notes Payable - Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total notes payable	$ 779	$ 779
Fair Value	754	748
Less: current portion	0
Notes payable, net of current portion	754	748
2020 Notes Payable
Debt Instrument [Line Items]
Total notes payable	250	250
Fair Value	225	219
Other Notes Payable
Debt Instrument [Line Items]
Total notes payable	379	379
Fair Value	379	379
Small Business Administration Loan
Debt Instrument [Line Items]
Total notes payable	150	150
Fair Value	$ 150	$ 150

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Notes Payable - Schedule of Expected Future Minimum Principal (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instruments [Abstract]
2023	$ 0
2024	629
2025	0
2026	0
2027	2
Thereafter	148
Total notes payable	779
Less: current portion	0
Notes payable, net of current portion	$ 779	$ 779

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Notes Payable - Additional Information (Details) - USD ($)		1 Months Ended			3 Months Ended
	Aug. 31, 2022	Jun. 30, 2022	Oct. 31, 2020	Aug. 31, 2020	Mar. 31, 2023	Mar. 31, 2022	Aug. 10, 2020
Debt Instrument [Line Items]
Gain on extinguishments of debt, net					$ 0	$ 669,000
Commercial revenues					$ 281,000	$ 433,000
Debt instrument, maturity date				Aug. 31, 2050
2020 Notes
Debt Instrument [Line Items]
Convertible debt			$ 25,000,000.0
Debt instrument, interest rate, effective percentage			16.00%				50.00%
Refinanced notes payable			$ 3,000,000.0
Debt instrument revised interest rate			6.00%		50.00%
Debt instrument, interest rate, increase (decrease)			16.00%
2020 Notes
Debt Instrument [Line Items]
Debt Instrument Outstanding Principal And Accrued Interest	$ 1,400,000
Non-voting common stock percentage	15.00%
Long-term debt, gross	$ 250,000
Debt instrument,outstanding principal and accrued interest	$ 1,400,000
Non-voting common, shares, issued	59,000
Debt instrument, interest rate, increase (decrease)	6.00%
Other Notes Payable
Debt Instrument [Line Items]
Long-term debt, gross		$ 400,000
Fixed interest rate					12.00%
Debt instrument, interest rate, increase (decrease)		6.00%	13.00%
Small Business Administration Loan
Debt Instrument [Line Items]
Fixed interest rate				3.75%
Loan proceeds				$ 150,000,000

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Commitments and Contingencies (Additional Information) (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Sep. 20, 2022 USD ($)	Jun. 30, 2020 ft²	May 31, 2020 ft²	Jan. 31, 2019 ft²	Dec. 31, 2017 ft²
Lease Agreement [Member]
Long-Term Purchase Commitment [Line Items]
Lessee, Operating Lease, Option to Extend	contains two five-year options to extend the lease term.
Area of land | ft²				14,870	22,064
Lease Expiration Date	Jul. 31, 2024
Payments for rent	$ 237,000	$ 208,000
Variable lease, cost	$ 172,000	137,000
Accrued Compensation			$ 1,300,000
Sublease Agreement [Member]
Long-Term Purchase Commitment [Line Items]
Area of land | ft²						7,194	1,850
Lease term extend, description	In October 2020 the sublease expiration date was extended from December 2020 to December 2022.
Sublease income	$ 49,000,000	$ 46,000,000
Proceeds from rent	$ 120,000

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Commitments and Contingencies - Schedule of Operating Lease Future Undiscounted Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Lease [Abstract]
Remainder of 2023	$ 705
2024	561
Total undiscounted lease payments	1,266
Less: Imputed interest	(76)
Operating lease liability	1,190
Less: Operating lease liability, current portion	(871)	$ (843)
Operating lease liability, net of current portion	$ 319	$ 547

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Commitments and Contingencies - Schedule of Operating Leases Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Lease:
Cash paid for operating lease agreement (in thousands)	$ 231	$ 224
Remaining lease term (in years)	1 year 3 months 18 days	2 years 3 months 18 days
Incremental borrowing rate	10.00%	10.00%

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Commitments and Contingencies - Schedule of Finance Lease Future Undiscounted Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finance Lease [Abstract]
Remainder of 2023	$ 37
2024	50
2025	32
2026	10
Total undiscounted lease payments	129
Less: Imputed interest	(15)
Financing lease liabilities	114
Less: Financing lease liabilities, current portion	(41)	$ (40)
Finance lease liabilities, net of current portion	$ 73	$ 83

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Commitments and Contingencies - Schedule of Finance Leases Supplemental Information (Details)	Mar. 31, 2023	Mar. 31, 2022
Finance Leases:
Weighted average remaining lease term (in years)	2 years 8 months 12 days	3 years 2 months 12 days
Incremental borrowing rate	9.30%	9.30%

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Strategic License Agreements - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended	44 Months Ended
	Jun. 09, 2021	Aug. 10, 2020	Mar. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
License Agreements Disclosure [Line Items]
Aggregate fair market value			$ 9	$ 9	$ 8
Number of shares issued			8,531,000	8,531,000	8,318,000
Milestones achieved			$ 0
Royalties due			$ 0
Option and License Agreement | Gigagen, Inc
License Agreements Disclosure [Line Items]
Payments for option and license agreement		$ 200
Upfront option exercise fee	$ 400	400
Development and regulatory milestones, aggregate amount payable	20,000	20,300
Sales milestone, aggregate amount payable	8,000	8,000
Milestone expenses				$ 250
Royalties due				$ 0
Option and License Agreement | Gigagen, Inc | Non-voting Common Stock
License Agreements Disclosure [Line Items]
Aggregate fair market value	$ 250	$ 250

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Shareholders' Equity - Schedule of Warrants to Purchase (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Class Of Warrant Or Right [Line Items]
Number Outstanding as of December 31, 2022	533	338
Issued		(1)
Exercised	(51)
Number Outstanding as of March 31, 2023	482	337
2013
Class Of Warrant Or Right [Line Items]
Expiration Date	2023-04	2023-04
Number Outstanding as of December 31, 2022	12	12
Number Outstanding as of March 31, 2023	12	12
Range of Exercise Price	$ 10.17	$ 10.17
2017
Class Of Warrant Or Right [Line Items]
Expiration Date	2023-11	2023-11
Expiration Date	2025-06	2025-06
Number Outstanding as of December 31, 2022	131	203
Number Outstanding as of March 31, 2023	131	203
2017 | Minimum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 0.14	$ 0.14
2017 | Maximum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 21.80	$ 21.80
2019
Class Of Warrant Or Right [Line Items]
Expiration Date	2025-03	2025-03
Expiration Date	2027-04	2027-04
Number Outstanding as of December 31, 2022	44	50
Number Outstanding as of March 31, 2023	44	50
2019 | Minimum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 0.14	$ 0.14
2019 | Maximum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 21.80	$ 21.80
2020
Class Of Warrant Or Right [Line Items]
Expiration Date	2023-06	2023-06
Expiration Date	2023-10	2023-10
Number Outstanding as of December 31, 2022	45	73
Issued		(1)
Number Outstanding as of March 31, 2023	45	72
2020 | Minimum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 0.14	$ 0.14
2020 | Maximum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 26.88	$ 26.88
2022
Class Of Warrant Or Right [Line Items]
Expiration Date	2025-08
Expiration Date	2029-12
Number Outstanding as of December 31, 2022	301
Exercised	(51)
Number Outstanding as of March 31, 2023	250
2022 | Minimum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 0.14
2022 | Maximum
Class Of Warrant Or Right [Line Items]
Range of Exercise Price	$ 168.35

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Shareholders' Equity - Additional Information (Details) - USD ($)			3 Months Ended		12 Months Ended
	May 31, 2023	Dec. 16, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Common stock purchased for professional services			41,000,000
Proceeds from exercise of warrants			$ 7,000	$ 0
Proceeds from issuance of common stock			$ 752,000	98,000
Common stock, shares issued			8,531,000		8,318,000
Common stock, shares authorized			125,000,000		125,000,000
Common stock, par value			$ 0.001		$ 0.001
Common stock, shares outstanding			8,531,000		8,318,000
Merger [Member]
Common stock, shares issued			8,531,000
Common stock, shares outstanding			8,531,000
Service [Member]
Common stock, shares issued			12,000
Private Placement
Future Right Recorded as Other Asset					$ 2,300,000
Proceeds from issuance of common stock		$ 7,400,000
Common stock, shares issued		649,346
Private Placement | Investors
Proceeds from issuance of common stock		$ 7,400,000
Common stock, shares issued		649,346
Restricted Stock Units R S U [Member]
Common stock, shares issued			23,000
Individual Counterparty [Member]
Proceeds from issuance of common stock			$ 800,000	$ 98,000
Share sold			126,503	3,000
Forecast [Member] | Private Placement
Common stock purchase price	$ 22,500,000
Future Right Recorded as Other Asset	$ 2,300,000
Non-voting Common Stock | Private Placement
Common stock warrants issued					104,000
Warrants exercise price					$ 0.14
Executive Officer [Member]
Common stock, shares issued			19,000
Director [Member]
Common stock, shares issued			2,000
Other Employees [Member]
Common stock, shares issued			2,000
Warrant [Member]
Warrants exercise price			$ 0.14	$ 0.14
Common stock upon exercise of warrants			51,000	1,175
Proceeds from exercise of warrants			$ 7,000	$ 171
Proceeds from issuance of common stock				$ 171
Common stock, shares issued				9,000
Warrant expense				$ 235,000,000

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Shareholder's Equity - Schedule of Common Stock for Future Issuance (Details) shares in Thousands	Mar. 31, 2023 shares
Class Of Stock [Line Items]
Shares reserved for stock options and restricted stock units to purchase common stock under equity incentive plans	3,658
Stock Options And Restricted Stock Units
Class Of Stock [Line Items]
Shares reserved for stock options and restricted stock units to purchase common stock under equity incentive plans	860
Equity Securities
Class Of Stock [Line Items]
Shares reserved for stock options and restricted stock units to purchase common stock under equity incentive plans	2,316
Warrant
Class Of Stock [Line Items]
Shares reserved for stock options and restricted stock units to purchase common stock under equity incentive plans	482

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Collaboration Agreement - Summary of collaboration revenue agreement and deferred revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition And Deferred Revenue [Abstract]
Balance as of beginning of period	$ 442
Decrease for provision of researchs services	(281)
Balance as of end of period	$ 161

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Collaboration Agreement (Additional Information) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 161,000	$ 442,000
Merck Co Inc [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue	161,000	$ 442,000
Revenue	$ 281,000

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Grant Agreements - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Research And Development Arrangement Contract To Perform For Others [Line Items]
Recognized grant revenue from federal agencies	$ 0	$ 75,000
National Institutes Of Health | Grant revenues [Member]
Research And Development Arrangement Contract To Perform For Others [Line Items]
Grant Received for Research And Development			$ 1,100,000

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Licensing Revenue Agreement - Summary Of Licensing Revenue Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition And Deferred Revenue [Abstract]
Balance as of December 31, 2022	$ 0	$ 1,041
Decrease for provision of research services	0	(358)
Balance as of March 31, 2023	$ 0	$ 683

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Licensing Revenue Agreement - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Deferred Revenue Arrangement [Line Items]
Deferred revenue	$ 161,000		$ 442,000
Genentech,Inc.
Deferred Revenue Arrangement [Line Items]
Deferred revenue	0
Genentech,Inc. | License And Research Collaboration Agreement
Deferred Revenue Arrangement [Line Items]
License revenue recognized	$ 0	$ 358,000

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Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2020	Dec. 31, 2010	Dec. 31, 2008
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expense recognized	$ 1,054	$ 285
Amount of cost not yet recognized	$ 2,400
Compensation cost not yet recognized, period for recognition	1 year 1 month 6 days
2008 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted, percentage					100.00%
2010 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted, percentage				100.00%
2020 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted, percentage			100.00%
Incentive stock options granted, description			However, the exercise price of incentive stock options granted to a 10% stockholder shall not be less than 110% of the fair market value of the common stock on the date of grant and the contractual term shall not exceed ten years.
2020 Equity Incentive Plan [Member] | Voting Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted	206,000
2020 Equity Incentive Plan [Member] | Nonvoting Common Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted	206,000
2022 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted, percentage	100.00%
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value	$ 4,100
Stock Appreciation Rights (SARs) | 2010 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Outstanding	0

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Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding Stock Options as of December 31, 2022	734
Outstanding Stock Options, Forfeited	(17)
Outstanding Stock Options, Expired	(9)
Outstanding Stock Options as of March 31, 2023	708	734
Outstanding Stock Options, Exercisable as of March 31, 2023	573
Weighted- Average Exercise Price Per Share, Beginning Balance	$ 22.67
Weighted- Average Exercise Price Per Share, Forfeited	25.56
Weighted- Average Exercise Price Per Share, Expired	10.90
Weighted- Average Exercise Price Per Share, Ending Balance	22.75	$ 22.67
Weighted- Average Exercise Price Per Share, Exercisable as of March 31, 2023	$ 21.73
Weighted Average Remaining Contractual Term, Outstanding	5 years 2 months 12 days	5 years 4 months 24 days
Weighted Average Remaining Contractual Term, Exercisable as of March 31, 2023	4 years 6 months
Aggregate Intrinsic Value, Outstanding	$ 0	$ 0
Aggregate Intrinsic Value, Exercisable as of March 31, 2023	$ 0

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Stock-Based Compensation - Summary of Fair Value of Stock Options Granted for Employee and Non-Employee Awards (Details)	3 Months Ended
	Mar. 31, 2022
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	84.20%
Expected term (years)	5 years 9 months 18 days
Risk-free interest rate	1.60%
Expected dividend yield	0.00%
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	84.70%
Expected term (years)	6 years 7 months 6 days
Risk-free interest rate	2.20%
Expected dividend yield	0.00%

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Stock-Based Compensation - Summary of Companies Restricted Stock Activity (Detail)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Restricted Stock, Beginning Balance | shares	175,000
Number of Restricted Stock, Released | shares	(23,000)
Number of Restricted Stock, ending Balance | shares	152,000
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance | $ / shares	$ 26.89
Weighted-Average Grant Date Fair Value Per Share, Released | $ / shares	27.03
Weighted-Average Grant Date Fair Value Per Share, Ending Balance | $ / shares	$ 26.87

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Stock-Based Compensation - Summary of Total Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 1,054	$ 285
Research and development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	77	165
General and administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 977	$ 120

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Net Loss Per Share - Summary of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss attributable to Kineta, Inc.	$ (6,451)	$ (4,976)
Denominator:
Weighted-average shares outstanding, basic	8,361,000	4,663,000
Weighted-average shares outstanding, diluted	8,361,000	4,663,000
Net loss per share, basic	$ (0.77)	$ (1.07)
Net loss per share, diluted	$ (0.77)	$ (1.07)

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Net Loss Per Share - Summary of Basic and Diluted Net Loss per Share (Parenthetical) (Details) - Common Stock [Member] - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted Average Number of Shares, Contingently Issuable	520,000	234,000
Share price	$ 0.14

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Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Weighted-average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	1,398	1,497
Common Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	708	733
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	152	175
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	482	533
Vested Restricted Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total	56	56

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Net Loss Per Share (Additional Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Defined contribution plan	$ 40,000	$ 41,000

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Related Party Transactions - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transaction [Line Items]
Cash payment of creditors	$ 4,000,000.0
Gain on extinguishments of debt, net	$ 0	$ 669,000
Executive management
Related Party Transaction [Line Items]
Number of shares issued	19,000
Directors
Related Party Transaction [Line Items]
Number of shares issued	2,000
Common Stock [Member]
Related Party Transaction [Line Items]
Conversion Price	$ 0.14
Number of shares issued	23,000

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Subsequent Events - Additional Information (Details) - USD ($)					3 Months Ended
	Jul. 25, 2023	May 01, 2023	Apr. 30, 2023	Apr. 12, 2023	Mar. 31, 2023	Mar. 31, 2022
Common Stock
Subsequent Event [Line Items]
Share price					$ 0.14
Shares issued, shares					127,000	3,000
Warrant
Subsequent Event [Line Items]
Warrants exercise price					$ 0.14	$ 0.14
Subsequent Event
Subsequent Event [Line Items]
Stock vested, description				The option awards granted to Dr. Iadonato, Mr. Philips, Mr. Baker, Ms. Kenny and Dr. Guillaudeux vested 25% on the date of grant and the remaining shares vest 1/36th monthly over 36 months beginning May 1, 2023. The option awards granted to Mr. Arkowitz and Dr. Peters pursuant to their appointment to the Board vest 1/36th monthly over 36 months beginning February 1, 2023. The option awards granted to Mr. Bartoszek, Ms. Foote, Mr. Arkowitz and Dr. Peters for their annual Board award grant vest 1/12th monthly over 12 months beginning July 7, 2023.
Stock vested, percentage		25.00%
Subsequent Event | Private Placement
Subsequent Event [Line Items]
Total offering-related fees			$ 520,000,000
Net proceeds			$ 5,500,000
Payments for private placement	$ 22,500,000
Subsequent Event | Securities Purchase Agreement
Subsequent Event [Line Items]
Share price			$ 4.21
Shares issued, shares			948,000
Warrants exercisable			477,179
Warrants exercise price			$ 0.001
Subsequent Event | Securities Purchase Agreement | Private Placement
Subsequent Event [Line Items]
Warrants to purchase shares of common stock			1,425,179
Warrants exercise price			$ 4.08
Subsequent Event | Securities Purchase Agreement | Private Placement | Wainwright & Co., LLC
Subsequent Event [Line Items]
Warrants to purchase shares of common stock			71,259
Warrant term			5 years
Warrants exercise price			$ 5.2625
Payments to related party			$ 420,000
Non-accountable expense			35,000
Legal fees			$ 50,000
Subsequent Event | Board of Directors
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				1,171,920
Share price				$ 3.28
Subsequent Event | Shawn Iadonato | Chief Executive Officer
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				207,000
Subsequent Event | Craig Philips | President
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				165,600
Subsequent Event | Keith Baker | Chief Financial Officer
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				120,060
Subsequent Event | Pauline Kenny | General Counsel
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				120,060
Subsequent Event | Thierry Guillaudeux | Chief Scientific Officer
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				120,060
Subsequent Event | David Arkowitz
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				12,500
Subsequent Event | David Arkowitz | Board Member
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				20,000
Subsequent Event | Richard Peters
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				12,500
Subsequent Event | Richard Peters | Board Member
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				20,000
Subsequent Event | Raymond Bartoszek
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				12,500
Subsequent Event | Marion R. Foote
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				12,500
Subsequent Event | Other Employees [Member] | Board Member
Subsequent Event [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number				349,140
Subsequent Event | Investors | Securities Purchase Agreement
Subsequent Event [Line Items]
Share price			$ 4.209
Gross proceeds from offerings			$ 6,000,000.0