Kiora Pharmaceuticals (KPRX) risk factors, FY2025 10-K

Risks Related to Our Financial Position and Need for Additional Capital

1. 01We have incurred significant operating losses since our inception. We expect to incur losses for the foreseeable future and may never achieve or maintain profitability35% rewritten
2. 02We anticipate that our expenses will continue to be significant with the clinical trials for the ongoing development of our KIO-104 and KIO-301 products
3. 03We will need substantial additional funding. If we are unable to raise capital when needed, we could be forced to delay, reduce, or eliminate our product development programs or commercialization efforts
4. 04As of December 31, 2025, we had cash and cash equivalents of $8.7 million and short-term investments of $8.4 million for a total of $17.1 million
5. 05Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates
6. 06Our limited operating history may make it difficult for investors to evaluate the success of our business to date and to assess our future viability
7. 07Taxing authorities could reallocate our taxable income among our subsidiaries, which could increase our overall tax liability
8. 08Foreign currency exchange rate fluctuations may have a negative impact on our financial results

Risks Related to the Discovery and Development of Our Product Candidates

1. 09We depend heavily on the success of KIO-104 and KIO-301. If we are unable to successfully obtain marketing approval for KIO-104 and KIO-301, or experience significant delays in doing so, or if after obtaining marketing approvals, we fail to commercialize KIO-104 and KIO-301, our business will be materially harmed
2. 10We cannot accurately predict when or if KIO-104 or KIO-301 will prove effective or safe in humans or whether it will receive marketing approval. Our ability to generate product revenues, which may never occur, will depend heavily on obtaining marketing approval to commercialize KIO-104 and KIO-301
3. 11If we do not achieve one or more of these factors in a timely manner or at all, we could experience significant delays or an inability to successfully commercialize KIO-104 and KIO-301, which would materially harm our business
4. 12If we experience any of a number of possible unforeseen events in connection with our clinical trials, potential marketing approval or commercialization of our product candidates could be delayed or prevented
5. 13If we experience delays or difficulties in the enrollment of patients in clinical trials, our receipt of necessary regulatory approvals could be delayed or prevented
6. 14If serious adverse or unacceptable side effects are identified during the development of our product candidates, we may need to abandon or limit our development of such product candidates
7. 15We may expend our limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates or indications that may be more profitable or for which there is a greater likelihood of success

Risks Related to the Commercialization of Our Product Candidates

1. 16If KIO-104, KIO-301, or any other product candidate that we develop receives marketing approval, it may nonetheless fail to gain sufficient market acceptance by physicians, patients, third-party payors, and others in the medical community
2. 17If we are unable to establish sales, marketing and distribution capabilities, we may not be successful in KIO-104, KIO-301, or any other product candidates that we may develop if and when they are approved
3. 18We face substantial competition, which may result in others discovering, developing, or commercializing products before or more successfully than we do
4. 19Even if we are able to commercialize KIO-104, KIO-301, or any other product candidate that we may develop, the products may become subject to unfavorable pricing regulations, third-party coverage or reimbursement practices, or healthcare reform initiatives, which could harm our business
5. 20pricing limitations may hinder our ability to recoup our investment in one or more product candidates, even if our product candidates obtain marketing approvalNew
6. 21Our strategy of obtaining rights to product candidates and approved products through in-licenses and acquisitions may not be successful57% rewritten
7. 22Product liability lawsuits against us could cause us to incur substantial liabilities and limit commercialization of any products that we develop

Risks Related to Our Dependence on Third Parties

1. 23We may enter into collaborations with other third parties for the development or commercialization of our product candidates. If our collaborations are not successful, we may not be able to capitalize on the market potential of these product candidates62% rewritten
2. 24We are dependent on TOI for the successful co-development and commercialization of KIO-301. If TOI does not devote sufficient resources to the co-development and commercialization of KIO-301, are unsuccessful in their efforts, or chooses to terminate their agreement with us, the potential revenue may not materialize53% rewritten
3. 25discontinue the development of the KIO-301. These decisions may occur for many reasons, including internal business reasons, results from clinical trials or because of unfavorable regulatory feedbackNew
4. 26If we are not able to establish additional collaborations, we may have to alter our development and commercialization plans and our business could be adversely affected
5. 27We rely, and expect to continue to rely, on third parties to conduct our clinical trials, and those third parties may not perform satisfactorily, including failing to meet deadlines for the completion of such trials42% rewritten

Risks Related to Our Intellectual Property

1. 28We may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time consuming, and unsuccessful
2. 29Third parties may initiate legal proceedings alleging that we are infringing their intellectual property rights, the outcome of which would be uncertain and could have a material adverse effect on the success of our business
3. 30If we fail to comply with our obligations in our intellectual property licenses and funding arrangements with third parties, we could lose rights that are important to our business
4. 31We may be subject to claims by third parties asserting that our employees or we have misappropriated their intellectual property or claiming ownership of what we regard as our own intellectual property
5. 32Intellectual property litigation could cause us to spend substantial resources and distract our personnel from their normal responsibilities
6. 33If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed

Risks Related to Regulatory Approval of Our Product Candidates and Other Legal Compliance Matters

1. 34Failure to obtain marketing approval in international jurisdictions would prevent our product candidates from being marketed abroad
2. 35We may be subject to substantial penalties if we fail to comply with regulatory requirements or if we experience unanticipated problems with our products
3. 36Previously enacted and future legislation may affect our ability to commercialize and the prices we obtain for any products that are approved in the U.S. or foreign jurisdictions78% rewritten
4. 37If we or our third-party manufacturers fail to comply with environmental, health, and safety laws and regulations, we could become subject to fines or penalties or incur significant costs
5. 38Although we maintain workers’ compensation insurance to cover us for costs and expenses we may incur due to injuries to our employees, this insurance may not provide adequate coverage against potential liabilities

Risks Related to Employee Matters and Managing Growth

1. 39Our future success depends on our ability to retain key executives and to attract, retain, and motivate qualified personnel
2. 40We expect to expand our development capabilities and potentially implement sales, marketing, and distribution capabilities, and as a result, we may encounter difficulties in managing our growth, which could disrupt our operations
3. 41We may fail to realize any benefits and incur losses related to any acquisition

Risks Related to Our Common Stock

1. 42Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain
2. 43The price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our common stock
3. 44If we fail to comply with the continued listing requirements of the Nasdaq Capital Market, our common stock may be delisted and the price of our common stock and our ability to access the capital markets could be negatively impactedNew
4. 45Laws and regulations governing international operations may preclude us from developing, manufacturing, and selling certain products outside of the U.S. and require us to develop and implement costly compliance programs20% rewritten
5. 46Our business and operations would suffer in the event of system failures
6. 47Provisions in our corporate charter documents and under Delaware law could make an acquisition of our company, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management
7. 48Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
8. 49Sales of a substantial number of shares of our common stock by our existing stockholders in the public market could cause our stock price to fall
9. 50We are a smaller reporting company and the reduced disclosure requirements applicable to smaller reporting companies may make our common stock less attractive to investors
10. 51We incur increasing costs as a result of operating as a public company, and our management is required to devote substantial time to new compliance initiatives and corporate governance practices
11. 52A material amount of our assets represents intangible assets, and our net income would be reduced if our intangible assets become impaired21% rewritten