Kiora Pharmaceuticals reported a net income of $26,806 for the third quarter of 2025, a dramatic turnaround from the $2.2 million loss recorded in Q2 2025 and the $3.4 million loss in the same quarter a year earlier. The shift to profitability is largely attributable to non‑operational factors, including favorable tax impacts from the OBBBA, non‑cash gains from the remeasurement of contingent consideration liabilities, and disciplined operating costs. R&D expenses for the quarter were $2.7 million, offset by $1.7 million in reimbursable expenses from Théa, while general and administrative costs remained steady at $1.4 million.
The company’s liquidity remains strong, with $19.4 million in cash, cash equivalents, and short‑term investments. Collaboration receivables from Théa total $1.2 million, and tax and research credit receivables amount to $1.5 million—$1.0 million from an income‑tax receivable under the OBBBA and $0.5 million from research‑tax credits. These balances support a projected cash runway that extends into late 2027, providing a cushion for ongoing clinical development and potential future financing needs.
Recognized revenue for the quarter was $0, reflecting the company’s pre‑commercial status. The absence of revenue underscores that the earnings improvement is driven by tax and accounting items rather than commercial sales.
Kiora’s pipeline continues to advance. The KLARITY Phase 2 study of KIO‑104 for retinal inflammation and the ABACUS‑2 Phase 2 study of KIO‑301 for retinitis pigmentosa are both actively recruiting and dosing patients. The company highlighted its partnership with Théa, which will play a key role in global commercialization of KIO‑301 outside Asia, and its collaboration with Senju Pharmaceutical, which holds an exclusive option for development and commercialization of KIO‑301 in Japan and China contingent on trial outcomes.
Management emphasized the significance of the cash runway and tax‑benefit support. CFO Melissa Tosca noted that the income‑tax receivable provides “greater flexibility in applying prior R&D expenses against net income,” while CEO Brian M. Strem highlighted the continued recruitment and expansion of screening centers for both trials, indicating confidence in the clinical program’s progress.
The earnings turnaround, while impressive on paper, is driven by non‑operational items and does not signal a shift to commercial revenue generation. The robust cash position and extended runway, coupled with active clinical trials and strategic partnerships, position Kiora to navigate the next phases of development and potential commercialization, but the company remains in a pre‑commercial stage with no revenue to date.
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