Kiora Pharmaceuticals, Inc. (KPRX) Bundle
Understanding Kiora Pharmaceuticals, Inc. (KPRX) Revenue Streams
Understanding Kiora Pharmaceuticals, Inc. Revenue Streams
Kiora Pharmaceuticals, Inc. reported a total revenue of $16,020,000 for the nine months ended September 30, 2024, compared to $0 for the same period in 2023. This increase was primarily driven by collaboration revenue recognized from a strategic agreement.
Breakdown of Primary Revenue Sources
- Collaboration Revenue: $16,000,000 from an agreement with TOI.
- Grant Revenue: $20,000.
Year-over-Year Revenue Growth Rate
The year-over-year revenue growth rate can be calculated as follows:
| Year | Total Revenue | Growth Rate (%) |
|---|---|---|
| 2023 | $0 | N/A |
| 2024 | $16,020,000 | N/A |
Contribution of Different Business Segments to Overall Revenue
The collaboration revenue accounted for 99.87% of total revenue, while grant revenue contributed 0.13%.
Analysis of Significant Changes in Revenue Streams
The significant increase in revenue in 2024 can be attributed to:
- Recognition of $16 million collaboration revenue from the agreement with TOI.
- First-time grant revenue of $20,000.
Kiora Pharmaceuticals has historically not generated significant revenue. The substantial revenue for 2024 marks a pivotal change in its financial trajectory.
Revenue Summary Table
| Revenue Type | 2023 Revenue | 2024 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Collaboration Revenue | $0 | $16,000,000 | $16,000,000 | N/A |
| Grant Revenue | $0 | $20,000 | $20,000 | N/A |
| Total Revenue | $0 | $16,020,000 | $16,020,000 | N/A |
This comprehensive revenue analysis highlights the transformation in Kiora Pharmaceuticals' financial health as it moves towards commercialization of its products.
A Deep Dive into Kiora Pharmaceuticals, Inc. (KPRX) Profitability
A Deep Dive into Kiora Pharmaceuticals, Inc. (KPRX) Profitability Metrics
Gross Profit Margin: For the nine months ended September 30, 2024, the company reported a total revenue of $16,020,000 with total operating expenses of $8,945,030, resulting in a gross profit of $7,074,970. The gross profit margin can be calculated as follows:
| Metric | Amount |
|---|---|
| Total Revenue | $16,020,000 |
| Total Operating Expenses | $8,945,030 |
| Gross Profit | $7,074,970 |
| Gross Profit Margin | 44.1% |
Operating Profit Margin: The operating loss for the same period was $(3,602,237), leading to an operating profit margin of (22.5%).
Net Profit Margin: The net income for the nine months ended September 30, 2024, was $7,818,235, resulting in a net profit margin of 48.8%. This reflects a significant turnaround compared to a net loss of $(10,245,290) for the same period in 2023.
Trends in Profitability Over Time
Comparing the nine months ended September 30, 2024, with the same period in 2023:
| Year | Total Revenue | Total Operating Expenses | Net Income (Loss) |
|---|---|---|---|
| 2024 | $16,020,000 | $8,945,030 | $7,818,235 |
| 2023 | $0 | $10,468,247 | $(10,245,290) |
The shift from a net loss to net income indicates a substantial improvement in profitability metrics. The significant increase in revenue is attributed to collaboration revenue recognized from a strategic agreement.
Comparison of Profitability Ratios with Industry Averages
The industry average for gross profit margins in the biotechnology sector typically ranges between 70% to 80%. Kiora’s gross profit margin of 44.1% suggests that there is room for improvement in operational efficiency.
In terms of net profit margins, the average in the biotech industry can vary widely due to R&D expenditures; however, a net profit margin of 48.8% is notably high compared to the industry average, indicating effective cost management and revenue generation.
Analysis of Operational Efficiency
Operational efficiency can be assessed through the company's ability to manage costs relative to its revenue generation. The breakdown of operating expenses for the nine months ended September 30, 2024, is as follows:
| Expense Type | Amount |
|---|---|
| General and Administrative | $4,215,411 |
| Research and Development | $3,717,570 |
| In-Process R&D Impairment | $2,008,000 |
| Change in Fair Value of Contingent Consideration | $(995,951) |
| Total Operating Expenses | $8,945,030 |
The increase in R&D expenses, which rose by $802,178 compared to the previous year, demonstrates the company's continued investment in product development. However, with total operating expenses declining from the previous year's $10,468,247, operational efficiency appears to be improving.
In conclusion, Kiora Pharmaceuticals, Inc. has shown notable improvements in profitability metrics, with strategic revenue generation and managed costs paving the way for enhanced financial health in 2024.
Debt vs. Equity: How Kiora Pharmaceuticals, Inc. (KPRX) Finances Its Growth
Debt vs. Equity: How Kiora Pharmaceuticals Finances Its Growth
Overview of Debt Levels:
As of September 30, 2024, Kiora Pharmaceuticals reported total liabilities of $8,478,302, which includes both long-term and short-term debt. The company had $2,000,000 in long-term debt and $6,478,302 in current liabilities.
Debt-to-Equity Ratio:
The debt-to-equity ratio stands at 0.28, calculated using total liabilities of $8,478,302 and total stockholders’ equity of $30,030,052. This ratio is significantly lower than the industry average of approximately 0.5, indicating a conservative approach to leveraging.
Recent Debt Issuances and Credit Ratings:
In February 2024, the company raised net proceeds of approximately $13.8 million through a private placement offering. The company has not publicly rated its debt; however, it has maintained a stable financial outlook based on recent cash flows and equity positions.
Balancing Debt Financing and Equity Funding:
Kiora Pharmaceuticals has strategically balanced its financing through a mix of debt and equity. The company has raised capital through both private placements and public offerings, with the most recent public offering yielding $5.6 million in June 2023. The company’s financing activities reflect a reliance on equity to minimize debt burdens, particularly as it aims to fund ongoing research and development efforts.
| Type | Amount |
|---|---|
| Total Liabilities | $8,478,302 |
| Long-Term Debt | $2,000,000 |
| Current Liabilities | $6,478,302 |
| Total Stockholders’ Equity | $30,030,052 |
| Debt-to-Equity Ratio | 0.28 |
| Net Proceeds from Recent Financing | $13.8 million |
| Public Offering Proceeds (June 2023) | $5.6 million |
Assessing Kiora Pharmaceuticals, Inc. (KPRX) Liquidity
Assessing Kiora Pharmaceuticals, Inc.'s Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated as follows:
| Current Assets | Current Liabilities | Current Ratio |
|---|---|---|
| $29,681,153 | $3,527,664 | 8.41 |
Quick Ratio: The quick ratio, which excludes inventories from current assets, is:
| Quick Assets | Current Liabilities | Quick Ratio |
|---|---|---|
| $29,681,153 | $3,527,664 | 8.41 |
Analysis of Working Capital Trends
The working capital position shows significant strength, with a total working capital of:
| Total Current Assets | Total Current Liabilities | Working Capital |
|---|---|---|
| $29,681,153 | $3,527,664 | $26,153,489 |
Cash Flow Statements Overview
For the nine months ended September 30, 2024, the cash flow activities are summarized as follows:
| Cash Flow Activity | 2024 ($) | 2023 ($) |
|---|---|---|
| Net Cash Provided by Operating Activities | 10,811,473 | (6,975,610) |
| Net Cash Used in Investing Activities | (23,145,294) | 0 |
| Net Cash Provided by Financing Activities | 15,498,155 | 6,452,487 |
| Net Increase (Decrease) in Cash | 3,182,588 | (609,287) |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company's liquidity position is bolstered by:
- Unrestricted Cash and Cash Equivalents: $5,637,019
- Restricted Cash: $4,520
- Short-term Investments: $23,324,411
Total liquidity resources amount to:
| Total Liquidity Resources ($) |
|---|
| 29,965,950 |
Despite the positive liquidity position, the company has an accumulated deficit of:
| Accumulated Deficit ($) |
|---|
| (139,158,620) |
This indicates ongoing operational challenges that may affect future liquidity if additional financing is not secured.
Is Kiora Pharmaceuticals, Inc. (KPRX) Overvalued or Undervalued?
Valuation Analysis
The valuation of a company is critical for investors seeking to understand whether it is overvalued or undervalued in the market. In the case of Kiora Pharmaceuticals, Inc. (KPRX), we will analyze key metrics including price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, and analyst consensus.
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, Kiora Pharmaceuticals reported a net income of $7,818,235. With an average share price of approximately $3.66, the P/E ratio can be calculated as follows:
- P/E Ratio = Price per Share / Earnings per Share
- Earnings per Share (EPS) = Net Income / Weighted Average Shares Outstanding
- EPS = $7,818,235 / 4,214,950 = $1.85
- P/E Ratio = $3.66 / $1.85 = 1.98
Price-to-Book (P/B) Ratio
The book value per share can be determined from the total stockholders' equity, which stood at approximately $30,030,052 as of September 30, 2024. The P/B ratio is calculated as:
- Book Value per Share = Total Stockholders' Equity / Total Shares Outstanding
- Book Value per Share = $30,030,052 / 4,214,950 = $7.12
- P/B Ratio = Price per Share / Book Value per Share = $3.66 / $7.12 = 0.51
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value (EV) is calculated as market capitalization plus total debt minus cash and cash equivalents. As of September 30, 2024, the company had:
- Market Capitalization = Price per Share Total Shares Outstanding = $3.66 4,214,950 = $15,420,157
- Total Debt = $4,133,008 (contingent consideration)
- Cash and Cash Equivalents = $5,637,019
- EV = $15,420,157 + $4,133,008 - $5,637,019 = $13,916,146
EBITDA is not explicitly provided, but we can estimate it from the net income:
- EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
- Assuming minimal interest and no taxes, EBITDA is approximated at $7,818,235 for simplicity.
- EV/EBITDA = $13,916,146 / $7,818,235 = 1.78
Stock Price Trends
Over the last 12 months, KPRX's stock price has experienced fluctuations. The following table summarizes the stock price movements:
| Date | Closing Price |
|---|---|
| September 2023 | $2.50 |
| January 2024 | $3.00 |
| April 2024 | $4.00 |
| July 2024 | $3.80 |
| September 2024 | $3.66 |
Dividend Yield and Payout Ratios
Kiora Pharmaceuticals does not currently pay a dividend, indicating a dividend yield of 0%. The company has been focused on reinvesting in research and development rather than returning capital to shareholders.
Analyst Consensus
As of the latest reports, analysts have provided the following consensus on Kiora Pharmaceuticals:
- Buy: 2 Analysts
- Hold: 1 Analyst
- Sell: 0 Analysts
This consensus indicates a generally positive outlook among analysts, suggesting that investors may find the stock undervalued based on current financial metrics.
Key Risks Facing Kiora Pharmaceuticals, Inc. (KPRX)
Key Risks Facing Kiora Pharmaceuticals, Inc. (KPRX)
Industry Competition: The pharmaceutical industry is highly competitive, with numerous established players and new entrants. As of September 30, 2024, Kiora has incurred cumulative losses of $139.16 million since inception, which raises concerns regarding its ability to compete effectively without significant revenue generation.
Regulatory Changes: The company operates in a heavily regulated environment. Any changes in regulations or compliance requirements could impact operational costs and timelines for product approvals. Recent developments include regulatory approval for a Phase 2 clinical trial for KIO-301, expected to begin in the first half of 2025, which underscores the importance of regulatory compliance in driving future revenues.
Market Conditions: Fluctuations in market conditions can affect the availability of capital and investment interest. As of September 30, 2024, Kiora had unrestricted cash and cash equivalents of $5.64 million and short-term investments totaling $23.4 million. These figures highlight the company's current liquidity position but also indicate reliance on future financing.
Operational Risks
Developmental Challenges: The company faces risks associated with the development of its pipeline products. Notably, the full impairment of KIO-201, resulting in a $2.01 million impairment charge, reflects strategic decisions to cease pursuing certain development opportunities.
Financial Risks: Kiora has experienced significant operating losses, with a net loss of $3.41 million reported for the three months ended September 30, 2024. This trend raises concerns about financial sustainability and the need for additional funding to support ongoing operations.
Strategic Risks
Partnerships and Collaborations: The company's strategy includes seeking partnerships for product development. The recent collaboration agreement with TOI generated $16 million in collaboration revenue, but reliance on partnerships can lead to potential loss of control over product development and revenue streams.
Funding Requirements: Kiora anticipates needing additional financing to support product development and commercialization efforts. The company raised approximately $13.8 million in a private placement offering that closed on February 5, 2024, but the ability to secure future funding remains uncertain.
Mitigation Strategies
Kiora Pharmaceuticals has outlined several strategies to mitigate these risks:
- Cost Management: The company is actively managing operating expenses, with total operating expenses of $8.95 million for the nine months ended September 30, 2024, down from $10.47 million during the same period in 2023.
- Diversification of Funding Sources: Kiora plans to pursue various funding avenues, including equity offerings, debt financing, and non-dilutive grants.
- Regulatory Compliance: The company is focused on adhering to regulatory requirements to facilitate timely product approvals.
| Risk Factor | Description | Financial Impact |
|---|---|---|
| Industry Competition | High competition from established and new entrants | Potential revenue loss due to market share erosion |
| Regulatory Changes | Changes in compliance requirements | Increased operational costs |
| Market Conditions | Fluctuations affecting capital availability | Reliance on external funding sources |
| Developmental Challenges | Risk of project impairments and failures | Losses from impaired assets (e.g., KIO-201) |
| Financial Risks | Ongoing operating losses | Negative cash flow impacting operations |
| Partnerships | Dependency on collaboration for revenue | Loss of control over products and revenues |
| Funding Requirements | Need for additional financing | Uncertainty in securing favorable terms |
Future Growth Prospects for Kiora Pharmaceuticals, Inc. (KPRX)
Future Growth Prospects for Kiora Pharmaceuticals
In 2024, Kiora Pharmaceuticals is positioned to leverage several key growth drivers that may significantly enhance its financial health and operational capacity. The following sections outline the primary opportunities for growth.
Product Innovations
The company is actively developing its product pipeline, with a focus on KIO-301 and KIO-104. KIO-301, which targets degenerative retinal diseases, has recently received an upfront payment of $16 million from a collaboration agreement with TOI. This agreement includes potential milestone payments of up to $285 million and tiered royalties that could reach the low 20% range on net sales.
KIO-104 is being developed as a treatment for retinal inflammatory diseases, including Posterior Non-Infectious Uveitis. Previous studies indicated significant improvements in visual acuity, paving the way for a Phase 2 clinical trial expected to start in early 2025.
Market Expansions
Kiora has plans to expand its market reach, particularly focusing on gaining regulatory approvals for KIO-301 outside the territories already partnered with TOI. The company is also poised to establish a sales and marketing infrastructure to support the commercialization of KIO-301 and KIO-104, should they receive approval.
Future Revenue Growth Projections
For the nine months ending September 30, 2024, Kiora reported a total revenue of $16.02 million, primarily attributed to collaboration revenue. As the company progresses with clinical trials and potential product approvals, revenue growth is projected to increase significantly, especially if successful in achieving developmental and regulatory milestones.
Strategic Initiatives and Partnerships
The agreement with TOI is a cornerstone of Kiora's strategy, providing both financial backing and a pathway to market for its products. The collaboration not only enhances Kiora's revenue stream but also allows for shared expertise and resources, facilitating faster product development and market entry.
Competitive Advantages
Kiora's innovative approach to drug development, particularly with its focus on retinal diseases, positions it favorably in a niche market. The company’s ability to secure substantial upfront payments and milestone agreements showcases its potential to attract significant partnerships, which is crucial for its growth.
Financial Overview
As of September 30, 2024, Kiora's unrestricted cash and cash equivalents totaled $5.6 million with short-term investments of $23.4 million. This financial cushion is expected to support operations into 2027.
| Financial Metric | Value |
|---|---|
| Collaboration Revenue (2024) | $16,000,000 |
| Potential Milestone Payments | $285,000,000 |
| Royalties on Net Sales | Low 20% |
| Unrestricted Cash and Cash Equivalents | $5,600,000 |
| Short-term Investments | $23,400,000 |
Kiora Pharmaceuticals, Inc. (KPRX) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Kiora Pharmaceuticals, Inc. (KPRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kiora Pharmaceuticals, Inc. (KPRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kiora Pharmaceuticals, Inc. (KPRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.