Nkarta, Inc.
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
NKTX$1.73+10.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001193125-25-178964
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001193125-25-274304
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 94 current paragraphs.
71 unchanged; 19 reworded; 4 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
In November 2025, we announced that deep B-cell depletion was observed in all patients treated to date who received NKX019 with LD using Flu and Cy versus partial B-cell depletion in patients receiving only Cy. At the same time, we reported the implementation of a streamlined enrollment process that allows participant data from both the Ntrust-1 and Ntrust-2 clinical trials to be reviewed by a combined independent Data Safety Monitoring Board (“iDSMB”) to inform dose-escalation decisions. This update followed engagement with the U.S. Food and Drug Administration (“FDA”) and authorization by the iDSMB to initiate enrollment in the second dose-escalation cohort.
Current report
The decrease of $5.1 million for the three months ended September 30, 2025 was primarily due to the following:
Current report
The decrease of $8.5 million for the nine months ended September 30, 2025 was primarily due to the following:
Current report
Other income (expense), net. Other income (expense), net was $1.7 million and $2.2 million for the three and nine months ended September 30, 2025, respectively, and immaterial for the three and nine months ended September 30, 2024. The increase of $1.7 million and $2.2 million for the three and nine months ended September 30, 2025, respectively, were primarily due to $1.7 million of recognition of employee retention tax credits received under the CARES Act.
Removed paragraphs (4)
Previous report
Leadership
Previous report
On June 6, 2025, the Company announced the appointment of Shawn Rose, M.D. Ph.D as the Company’s Chief Medical Officer and Head of Research and Development, effective June 23, 2025.
Previous report
The decrease of $2.4 million for the three months ended June 30, 2025 was primarily due to the following:
Previous report
The decrease of $3.4 million for the six months ended June 30, 2025 was primarily due to the following:
Reworded paragraphs (19)
Previous wording
The following table summarizes our research and development expenses for the three and six months ended June 30, 2025 and 2024. The direct external development program expenses reflect external costs attributable to our clinical development candidates and preclinical candidates selected for further development. Such expenses include third-party contract costs relating to manufacturing, clinical trial activities, translational medicine and toxicology activities. The unallocated internal research and development costs include personnel, facility costs, laboratory consumables and discovery and research related activities associated with our pipeline.
Current wording
The following table summarizes our research and development expenses for the three and nine months ended September 30, 2025 and 2024. The direct external development program expenses reflect external costs attributable to our clinical development candidates and preclinical candidates selected for further development. Such expenses include third-party contract costs relating to manufacturing, clinical trial activities, translational medicine and toxicology activities. The unallocated internal research and development costs include personnel, facility costs, laboratory consumables and discovery and research related activities associated with our pipeline.
Previous wording
Research and development expenses. Research and development expenses were $20.8 million and $23.1 million for the three months ended June 30, 2025 and 2024, respectively. Research and development expenses were $45.0 million and $48.4 million for the six months ended June 30, 2025 and 2024, respectively.
Current wording
Research and development expenses. Research and development expenses were $20.2 million and $25.3 million for the three months ended September 30, 2025 and 2024, respectively. Research and development expenses were $65.1 million and $73.6 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
a $4.0 million decrease in personnel costs primarily from lower salaries and wages, bonus expense, and share based compensation expense recognized due to lower headcount as a result of the reduction in force in March 2025;
Current wording
a $3.2 million decrease in personnel costs primarily from lower salaries and wages and share based compensation expense recognized due to lower headcount as a result of the reduction in force in March 2025;
Previous wording
a $0.4 million increase in program costs primarily from higher clinical spending related to NKX019 to support Phase I clinical trials in autoimmune diseases, which was partially offset by lower manufacturing and materials expenses; and
Current wording
a $1.2 million decrease in program costs primarily from lower manufacturing and materials expenses, which was partially offset by higher clinical spending related to NKX019 to support Phase I clinical trials in autoimmune diseases; and
Previous wording
a $0.3 million increase in other research costs, primarily consisting of higher consulting expenses, equipment maintenance costs, and depreciation expense, which was partially offset by lower laboratory supplies due to lower headcount.
Current wording
a $0.7 million decrease in other research costs, primarily consisting of lower laboratory supplies and facilities expenses due to lower headcount, which was partially offset by higher consulting expenses, equipment maintenance costs, and depreciation expense.
Previous wording
a $3.1 million decrease in personnel costs primarily from lower salaries and wages, bonus expense, and share based compensation expense recognized due to lower headcount as a result of the reduction in force in March 2025;
Current wording
a $7.2 million decrease in personnel costs primarily from lower salaries and wages, bonus expense, and share based compensation expense recognized due to lower headcount as a result of the reduction in force in March 2025;
Previous wording
a $0.8 million decrease in program costs primarily from lower manufacturing, materials, and clinical expenses related to NKX101 as the program was deprioritized, which was partially offset by higher manufacturing, materials, and clinical spending related to NKX019 to support Phase I clinical trials in autoimmune diseases; and
Current wording
a $2.0 million decrease in program costs primarily from lower manufacturing, materials, and clinical expenses related to NKX101 as the program was deprioritized and lower manufacturing and materials expenses related to NKX019, which was partially offset by higher clinical spending related to NKX019 to support Phase I clinical trials in autoimmune diseases; and
Previous wording
a $1.4 million increase in other research costs, primarily consisting of higher consulting expenses, equipment maintenance costs, and depreciation expense.
Current wording
a $0.7 million increase in other research costs, primarily consisting of higher consulting expenses, equipment maintenance costs, and depreciation expense.
Previous wording
General and administrative expenses. General and administrative expenses were $6.4 million and $7.6 million for the three months ended June 30, 2025 and 2024, respectively, and $18.8 million and $15.1 million for the six months ended June 30, 2025 and 2024, respectively. The decrease of $1.2 million for the three months ended June 30, 2025 was primarily due to a $1.4 million decrease in personnel and facilities expenses, which was partially offset by a $0.3 million increase in legal and consulting expenses. The increase of $3.7 million for the six months ended June 30, 2025 was primarily due to the $5.1 million severance expenses resulting from the reduction in force completed in March 2025 and a $0.7 million increase in legal and consulting expenses, which was partially offset by a $2.0 million decrease in personnel and facilities expenses.
Current wording
General and administrative expenses. General and administrative expenses were $7.1 million and $8.5 million for the three months ended September 30, 2025 and 2024, respectively, and $25.9 million and $23.7 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease of $1.5 million for the three months ended September 30, 2025 was primarily due to a $1.9 million decrease in personnel expenses and a $0.6 million decrease in legal and consulting expenses, which was partially offset by a $0.8 million ROU asset impairment expense recorded in September 2025 and a $0.2 million increase in facilities expenses allocated to general and administrative expenses. The increase of $2.2 million for the nine months ended September 30, 2025 was primarily due to the $5.0 million severance expenses resulting from the reduction in force completed in March 2025 and a $0.8 million ROU asset impairment expense recorded in September 2025, which was partially offset by a $3.6 million decrease in personnel and facilities expenses.
Previous wording
Interest income. Interest income was $4.0 million and $5.7 million for the three months ended June 30, 2025 and 2024, respectively, and $8.3 million and $9.0 million for the six months ended June 30, 2025 and 2024, respectively. The decrease of $1.8 million and $0.6 million for the three and six months ended June 30, 2025, respectively, were primarily due to lower average investment balances and lower average interest rates in the current period. Interest income includes interest earned from investments, partially offset by amortization of purchase premiums and accretion of discounts of investments.
Current wording
Interest income. Interest income was $3.9 million and $5.5 million for the three months ended September 30, 2025 and 2024, respectively, and $12.2 million and $14.4 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease of $1.6 million and $2.2 million for the three and nine months ended September 30, 2025, respectively, were primarily due to lower average investment balances and lower average interest rates in the current period. Interest income includes interest earned from investments, partially offset by amortization of purchase premiums and accretion of discounts of investments.
Previous wording
As of June 30, 2025, we had cash, cash equivalents, restricted cash and investments of $334.0 million. We estimate that all $265.1 million in net proceeds from our July 2020 initial public offering have been spent. On April 28, 2022, we received $215.3 million in net proceeds, after deducting underwriting discounts, commissions and other offering expenses, in connection with our secondary offering of our common stock. On March 27, 2024, we received $225.1 million in net proceeds from an underwritten public offering, after deducting underwriting discounts, commissions and expenses, described further below.
Current wording
As of September 30, 2025, we had cash, cash equivalents, restricted cash and investments of $316.5 million. We estimate that all $265.1 million in net proceeds from our July 2020 initial public offering have been spent. On April 28, 2022, we received $215.3 million in net proceeds, after deducting underwriting discounts, commissions and other offering expenses, in connection with our secondary offering of our common stock. On March 27, 2024, we received $225.1 million in net proceeds from an underwritten public offering, after deducting underwriting discounts, commissions and expenses, described further below.
Previous wording
We have incurred net losses and negative cash flows from operations since our inception. As of June 30, 2025, we had an accumulated deficit of $599.2 million and anticipate that we will continue to incur net losses for the foreseeable future. We expect to incur substantial expenditures as we develop our product pipeline and advance our drug candidates through clinical development, undergo the regulatory approval process and, if approved, launch commercial activities. Specifically, in the near term we expect to incur substantial expenses relating to initiating and completing our clinical trials, the development and validation of our manufacturing processes, and other development activities.
Current wording
We have incurred net losses and negative cash flows from operations since our inception. As of September 30, 2025, we had an accumulated deficit of $620.9 million and anticipate that we will continue to incur net losses for the foreseeable future. We expect to incur substantial expenditures as we develop our product pipeline and advance our drug candidates through clinical development, undergo the regulatory approval process and, if approved, launch commercial activities. Specifically, in the near term we expect to incur substantial expenses relating to initiating and completing our clinical trials, the development and validation of our manufacturing processes, and other development activities.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2025 was $48.4 million primarily due to a net loss of $55.0 million adjusted for a decrease in net change in operating assets and liabilities of $1.1 million, which was offset by net non-cash charges of $7.6 million. The change in net operating assets and liabilities was primarily due to an increase in accounts payable and prepaid expenses, and a decrease in operating lease liability. Cash flows from operations are generally impacted by the timing of payments to vendors and vendor payment terms. The non-cash charges primarily consisted of stock-based compensation of $4.9 million, depreciation and amortization of $4.6 million, which was offset by investment accretion and amortization of $2.8 million.
Current wording
Net cash used in operating activities for the nine months ended September 30, 2025 was $67.1 million primarily due to a net loss of $76.7 million adjusted for a decrease in net change in operating assets and liabilities of $2.4 million, which was offset by net non-cash charges of $12.0 million. The change in net operating assets and liabilities was primarily due to an increase in accounts payable and prepaid expenses, and a decrease in operating lease liability. Cash flows from operations are generally impacted by the timing of payments to vendors and vendor payment terms. The non-cash charges primarily consisted of stock-based compensation of $6.7 million, depreciation and amortization of $6.9 million, which was offset by investment accretion and amortization of $3.7 million.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2024 was $50.4 million primarily due to a net loss of $54.5 million adjusted for a decrease in net change in operating assets and liabilities of $7.3 million, which was offset by net non-cash charges of $11.4 million. The change in net operating assets and liabilities was primarily due to an increase in interest receivable and prepaid expenses for the maintenance of laboratory equipment, and a decrease in accruals and operating lease liability. The non-cash charges primarily consisted of stock-based compensation of $8.8 million, depreciation and amortization of $4.5 million, which was offset by investment accretion and amortization of $3.0 million.
Current wording
Net cash used in operating activities for the nine months ended September 30, 2024 was $74.9 million primarily due to a net loss of $82.9 million adjusted for a decrease in net change in operating assets and liabilities of $8.5 million, which was offset by an increase in net of non-cash charges of $16.4 million. The change in net operating assets and liabilities was primarily due to an increase in prepaid expenses for the maintenance of laboratory equipment, interest receivable, and accruals, and a decrease in accounts payable and operating lease liability. The non-cash charges primarily consisted of stock-based compensation of $12.8 million, depreciation and amortization of $6.9 million, which was offset by investment accretion and amortization of $5.0 million.
Previous wording
Net cash provided by investing activities for the six months ended June 30, 2025 was $73.8 million, which consisted primarily of proceeds from the maturities of marketable securities of $163.9 million, partially offset by the purchase of marketable securities of $89.4 million and the purchase of property and equipment of $0.7 million.
Current wording
Net cash provided by investing activities for the nine months ended September 30, 2025 was $99.2 million, which consisted primarily of proceeds from the sales and maturities of marketable securities of $247.0 million, partially offset by the purchase of marketable securities of $147.1 million and the purchase of property and equipment of $0.6 million.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2024 was $86.1 million, which consisted primarily of the purchase of marketable securities of $214.3 million and the purchase of property and equipment of $2.5 million, partially offset by proceeds from the maturities of marketable securities of $130.7 million.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2024 was $125.0 million, which consisted primarily of the purchase of marketable securities of $320.7 million and the purchase of property and equipment of $3.3 million, partially offset by proceeds from the maturities of marketable securities of $198.9 million.
Previous wording
There was immaterial cash provided by financing activities for the six months ended June 30, 2025.
Current wording
There was immaterial cash provided by financing activities for the nine months ended September 30, 2025.
Previous wording
Net cash provided by financing activities for the six months ended June 30, 2024, was $225.9 million, which primarily consisted of net proceeds from our underwritten public offering of $225.1 million that closed in March 2024.
Current wording
Net cash provided by financing activities for the nine months ended September 30, 2024, was $225.9 million, which primarily consisted of net proceeds from our underwritten public offering of $225.1 million that closed in March 2024.
Previous wording
Other than our policy for restructuring as discussed in Notes 1 and 12 to our condensed financial statements, there have been no significant changes in our critical accounting policies and estimates during the three and six months ended June 30, 2025, as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K.
Current wording
Other than our policy for restructuring as discussed in Notes 1 and 12 to our condensed financial statements, there have been no significant changes in our critical accounting policies and estimates during the three and nine months ended September 30, 2025, as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K.