ProKidney Corp.（納斯達克：PROK）今日提交截至2026年3月31日的第一季度10-Q報告。

10-Q
 
 
 
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 

  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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, 2026
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: 001-40560
 
ProKidney Corp.
(Exact Name of Registrant as Specified in its Charter)
 
 

 
 
 
 
 

 
 Delaware

 98-1586514

 

 
 ( State or other jurisdiction of
incorporation or organization)

 (I.R.S. Employer
Identification No.)

 

 
 2000 Frontis Plaza Blvd., Suite 250
Winston-Salem, NC

 27103

 

 
 (Address of principal executive offices)

 (Zip Code)

 

 (336) 999-7019
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act: 
 

 
 
 
 
 
 
 
 

 
 Title of each class

  

 Trading
Symbol(s)

  

 Name of each exchange on which registered

 

 
 Class A common stock, $0.0001 par value per share

  

 PROK

  

 The Nasdaq Stock 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 ☒
 

 
 
 
 
 
 

 
 Class of Stock

  

 Shares Outstanding as of May 15, 2026

 

 
 Class A common stock, par value $0.0001 per share

  

 205,199,713

 

 
 Class B common stock, par value $0.0001 per share

  

 96,859,913

 

 \`

  

 
  

 Table of Contents
 

 
 
 
 
 
 

 
 

 

 Page

 

 
 PART I.

 Financial Information (Unaudited)

 2

 

 
 Item 1.

 Financial Statements

 2

 

 
 

 Condensed Consolidated Balance Sheets

 2

 

 
 

 Condensed Consolidated Statements of Operations

 3

 

 
  

 Condensed Consolidated Statements of Comprehensive Loss

 4

 

 
  

 Condensed Consolidated Statements of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit

 5

 

 
 

 Condensed Consolidated Statements of Cash Flows

 7

 

 
 

 Notes to Unaudited Condensed Consolidated Financial Statements

 8

 

 
 Item 2.

 Management’s Discussion and Analysis of Financial Condition and Results of Operations

 23

 

 
 Item 3.

 Quantitative and Qualitative Disclosures About Market Risk

 29

 

 
 Item 4.

 Controls and Procedures

 29

 

 
 PART II.

 Other Information

 30

 

 
 Item 1.

 Legal Proceedings

 30

 

 
 Item 1A.

 Risk Factors

 30

 

 
 Item 2.

 Unregistered Sales of Equity Securities and Use of Proceeds

 30

 

 
 Item 3.

 Defaults Upon Senior Securities

 30

 

 
 Item 4.

 Mine Safety Disclosures

 30

 

 
 Item 5.

 Other Information

 30

 

 
 Item 6.

 Exhibits

 30

 

 
 Signatures

 32

 

  

 i

 
  

 PART I—FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements.
ProKidney Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
 

 
 
 
 
 
 
 
 
 
 
 

 
  

 March 31, 2026

  

  

 December 31, 2025

  

 

 
  

 (Unaudited)

  

  

  

  

 

 
 Assets

  

  

  

  

  

 

 
 Cash and cash equivalents

 $

 101,895

  

  

 $

 108,537

  

 

 
 Marketable securities

  

 123,049

  

  

  

 161,480

  

 

 
 Interest receivable

  

 1,032

  

  

  

 1,127

  

 

 
 Prepaid assets

  

 3,083

  

  

  

 2,808

  

 

 
 Prepaid clinical

  

 4,049

  

  

  

 3,923

  

 

 
 Other current assets

  

 1,794

  

  

  

 2,804

  

 

 
 Total current assets

  

 234,902

  

  

  

 280,679

  

 

 
  

  

  

  

  

  

 

 
 Fixed assets, net

  

 54,441

  

  

  

 51,231

  

 

 
 Right of use assets, net

  

 3,441

  

  

  

 3,664

  

 

 
 Total assets

 $

 292,784

  

  

 $

 335,574

  

 

 
  

  

  

  

  

  

 

 
 Liabilities and Stockholders' Deficit

  

  

  

  

  

 

 
 Accounts payable

 $

 2,592

  

  

 $

 940

  

 

 
 Lease liabilities

  

 1,108

  

  

  

 1,071

  

 

 
 Accrued expenses and other

  

 22,231

  

  

  

 28,731

  

 

 
 Income taxes payable

  

 –

  

  

  

 –

  

 

 
 Total current liabilities

  

 25,931

  

  

  

 30,742

  

 

 
  

  

  

  

  

  

 

 
 Income tax payable, net of current portion

  

 1,074

  

  

  

 1,074

  

 

 
 Lease liabilities, net of current portion

  

 2,675

  

  

  

 2,965

  

 

 
 Total liabilities

  

 29,680

  

  

  

 34,781

  

 

 
 Commitments and contingencies

  

  

  

  

  

 

 
 Redeemable noncontrolling interest

  

 1,286,887

  

  

  

 1,311,990

  

 

 
  

  

  

  

  

  

 

 
 Stockholders’ deficit

  

  

  

  

  

 

 
 Class A common stock, $0.0001 par value; 700,000,000 
   shares authorized as of March 31, 2026 and 
   December 31, 2025; 141,980,643 and 141,807,277
   shares issued and outstanding as of March 31, 2026 and 
   December 31, 2025, respectively

  

 14

  

  

  

 14

  

 

 
 Class B common stock, $0.0001 par value; 500,000,000 shares
   authorized; 159,973,334 and 159,262,779 shares issued and
   outstanding as of March 31, 2026 and December 31, 2025, 
   respectively

  

 16

  

  

  

 16

  

 

 
 Additional paid-in capital

  

 266,112

  

  

  

 258,552

  

 

 
 Accumulated other comprehensive (loss) gain

  

 (53

 )

  

  

 56

  

 

 
 Accumulated deficit

  

 (1,289,872

 )

  

  

 (1,269,835

 )

 

 
 Total stockholders' deficit

  

 (1,023,783

 )

  

  

 (1,011,197

 )

 

 
 Total liabilities and stockholders' deficit

 $

 292,784

  

  

 $

 335,574

  

 

  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 2

 
  

 ProKidney Corp.
Condensed Consolidated Statements of Operations - Unaudited
(in thousands, except for share and per share data)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended March 31,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Revenue

  

 $

 226

  

  

 $

 230

  

 

 
  

  

  

  

  

  

  

 

 
 Operating expenses

  

  

  

  

  

  

 

 
 Research and development

  

  

 33,842

  

  

  

 27,263

  

 

 
 General and administrative

  

  

 11,317

  

  

  

 14,355

  

 

 
 Total operating expenses

  

  

 45,159

  

  

  

 41,618

  

 

 
 Operating loss

  

  

 (44,933

 )

  

  

 (41,388

 )

 

 
  

  

  

  

  

  

  

 

 
 Other income (expense):

  

  

  

  

  

  

 

 
 Interest income

  

  

 2,327

  

  

  

 4,027

  

 

 
 Interest expense

  

  

 (15

 )

  

  

 –

  

 

 
 Net loss before income taxes

  

  

 (42,621

 )

  

  

 (37,361

 )

 

 
 Income tax expense

  

  

 —

  

  

  

 591

  

 

 
 Net loss before noncontrolling
   interest

  

  

 (42,621

 )

  

  

 (37,952

 )

 

 
 Net loss attributable to noncontrolling interest

  

  

 (22,584

 )

  

  

 (21,218

 )

 

 
 Net loss available to Class A common stockholders

  

 $

 (20,037

 )

  

 $

 (16,734

 )

 

 
  

  

  

  

  

  

  

 

 
 Weighted average shares of Class A common stock outstanding:

  

  

  

  

  

  

 

 
 Basic and diluted

  

  

 141,925,099

  

  

  

 126,976,366

  

 

 
 Net loss per share attributable to Class A common stock:

  

  

  

  

  

  

 

 
 Basic and diluted

  

 $

 (0.14

 )

  

 $

 (0.13

 )

 

  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 3

 
  

 ProKidney Corp.
Condensed Consolidated Statements of Comprehensive Loss - Unaudited
(in thousands, except for share and per share data)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended March 31,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Net loss including noncontrolling interest

  

 $

 (42,621

 )

  

 $

 (37,952

 )

 

 
 Other comprehensive income:

  

  

  

  

  

  

 

 
 Unrealized income (loss) on marketable securities

  

  

 (232

 )

  

  

 (124

 )

 

 
 Other comprehensive income

  

  

 (232

 )

  

  

 (124

 )

 

 
 Total comprehensive loss including noncontrolling interest

  

  

 (42,853

 )

  

  

 (38,076

 )

 

 
 Less: Total comprehensive loss attributable to noncontrolling interest

  

  

 (22,707

 )

  

  

 (21,287

 )

 

 
 Total comprehensive loss attributable to Class A common stockholders

  

 $

 (20,146

 )

  

 $

 (16,789

 )

 

  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 

 4

 
  

 ProKidney Corp.
Condensed Consolidated Statements of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit - Unaudited
(in thousands, except for share and per share data)
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 For the Three Months Ended March 31, 2026

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
  

  

  

  

  

  

 Class A Common Stock

  

  

 Class B Common Stock

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
  

  

 Redeemable Noncontrolling Interest

  

  

  

 Shares

  

  

 Amount

  

  

 Shares

  

  

 Amount

  

  

 Additional Paid-in Capital

  

  

 Accumulated Other Comprehensive Gain (Loss)

  

  

 Accumulated Deficit

  

  

 Total Stockholders' Deficit

  

 

 
 Balance as of January 1, 2026

  

 $

 1,311,990

  

  

  

  

 141,807,277

  

  

 $

 14

  

  

  

 159,262,779

  

  

 $

 16

  

  

 $

 258,552

  

  

 $

 56

  

  

 $

 (1,269,835

 )

  

 $

 (1,011,197

 )

 

 
 Equity-based compensation

  

  

 146

  

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 4,799

  

  

  

 –

  

  

  

 –

  

  

  

 4,799

  

 

 
 Issuance of Class A common stock, net of offering costs

  

  

 –

  

  

  

  

 2,798

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 7

  

  

  

 –

  

  

  

 –

  

  

  

 7

  

 

 
 Vesting of Class B restricted stock rights

  

  

 –

  

  

  

  

 –

  

  

  

 –

  

  

  

 723,163

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

 

 
 Exchange of Class B common stock for Class A common stock

  

  

 (27

 )

  

  

  

 12,608

  

  

  

 –

  

  

  

 (12,608

 )

  

  

 –

  

  

  

 27

  

  

  

 –

  

  

  

 –

  

  

  

 27

  

 

 
 Exercise of stock options

  

  

 –

  

  

  

  

 157,960

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 212

  

  

  

 –

  

  

  

 –

  

  

  

 212

  

 

 
 Impact of equity transactions on redeemable noncontrolling interest

  

  

 (2,515

 )

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 2,515

  

  

  

 –

  

  

  

 –

  

  

  

 2,515

  

 

 
 Unrealized loss on marketable securities

  

  

 (123

 )

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 (109

 )

  

  

 –

  

  

  

 (109

 )

 

 
 Net loss

  

  

 (22,584

 )

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 (20,037

 )

  

  

 (20,037

 )

 

 
 Balance as of March 31, 2026

  

 $

 1,286,887

  

  

  

  

 141,980,643

  

  

 $

 14

  

  

  

 159,973,334

  

  

 $

 16

  

  

 $

 266,112

  

  

 $

 (53

 )

  

 $

 (1,289,872

 )

  

 $

 (1,023,783

 )

 

  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 

 5

 
  

 ProKidney Corp.
Condensed Consolidated Statements of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit - Unaudited
(in thousands, except for share and per share data)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 For The Three Months Ended March 31, 2025

  

 

 
  

  

  

  

  

  

 Class A Common Stock

  

  

 Class B Common Stock

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
  

  

 Redeemable Noncontrolling Interest

  

  

  

 Shares

  

  

 Amount

  

  

 Shares

  

  

 Amount

  

  

 Additional Paid-in Capital

  

  

 Accumulated Other Comprehensive Gain (Loss)

  

  

 Accumulated Deficit

  

  

 Total Stockholders' Deficit

  

 

 
 Balance as of January 1, 2025

  

 $

 1,396,591

  

  

  

  

 128,054,417

  

  

 $

 13

  

  

  

 163,693,707

  

  

 $

 16

  

  

 $

 205,736

  

  

 $

 130

  

  

 $

 (1,200,849

 )

  

 $

 (994,954

 )

 

 
 Equity-based compensation

  

  

 817

  

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 5,599

  

  

  

 –

  

  

  

 –

  

  

  

 5,599

  

 

 
 Vesting of Class B restricted stock rights

  

  

 –

  

  

  

  

 –

  

  

  

 –

  

  

  

 949,678

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

 

 
 Exchange of Class B common stock for Class A common stock

  

  

 (2,418

 )

  

  

  

 1,481,704

  

  

  

 –

  

  

  

 (1,481,704

 )

  

  

 –

  

  

  

 2,418

  

  

  

 –

  

  

  

 –

  

  

  

 2,418

  

 

 
 Impact of equity transactions on redeemable noncontrolling interest

  

  

 (5,173

 )

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 5,173

  

  

  

 –

  

  

  

 –

  

  

  

 5,173

  

 

 
 Unrealized loss on marketable securities

  

  

 (69

 )

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 (55

 )

  

  

 –

  

  

  

 (55

 )

 

 
 Net loss

  

  

 (21,218

 )

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 –

  

  

  

 (16,734

 )

  

  

 (16,734

 )

 

 
 Balance as of March 31, 2025

  

 $

 1,368,530

  

  

  

  

 129,536,121

  

  

 $

 13

  

  

  

 163,161,681

  

  

 $

 16

  

  

 $

 218,926

  

  

 $

 75

  

  

 $

 (1,217,583

 )

  

 $

 (998,553

 )

 

  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 
 
 
 
 

 6

 
  

 ProKidney Corp.
Condensed Consolidated Statements of Cash Flows – Unaudited
(in thousands)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended March 31,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Cash flows from operating activities

  

  

  

  

  

  

 

 
 Net loss before noncontrolling interest

  

 $

 (42,621

 )

  

 $

 (37,952

 )

 

 
 Adjustments to reconcile net loss before noncontrolling interest to net cash flows used 
   in operating activities:

  

  

  

  

  

  

 

 
 Depreciation and amortization

  

  

 1,658

  

  

  

 1,600

  

 

 
 Equity-based compensation

  

  

 4,945

  

  

  

 6,416

  

 

 
 Gain on marketable securities, net

  

  

 (413

 )

  

  

 (1,069

 )

 

 
 Loss on disposal of equipment

  

  

 –

  

  

  

 300

  

 

 
 Changes in operating assets and liabilities

  

  

  

  

  

  

 

 
 Interest receivable

  

  

 95

  

  

  

 695

  

 

 
 Prepaid and other assets

  

  

 609

  

  

  

 5,729

  

 

 
 Accounts payable and accrued expenses

  

  

 (5,957

 )

  

  

 (5,902

 )

 

 
 Income taxes payable

  

  

 –

  

  

  

 591

  

 

 
 Net cash flows used in operating activities

  

  

 (41,684

 )

  

  

 (29,592

 )

 

 
  

  

  

  

  

  

  

 

 
 Cash flows from investing activities

  

  

  

  

  

  

 

 
 Purchases of marketable securities

  

  

 (44,754

 )

  

  

 (55,449

 )

 

 
 Sales and maturities of marketable securities

  

  

 83,366

  

  

  

 84,873

  

 

 
 Purchase of equipment and facility expansion

  

  

 (3,785

 )

  

  

 (1,135

 )

 

 
 Net cash flows provided by investing activities

  

  

 34,827

  

  

  

 28,289

  

 

 
  

  

  

  

  

  

  

 

 
 Cash flows from financing activities

  

  

  

  

  

  

 

 
 Proceeds from sales of Class A common stock, net of offering costs

  

  

 7

  

  

  

 –

  

 

 
 Payments on finance leases

  

  

 (3

 )

  

  

 (12

 )

 

 
 Exercise of stock options

  

  

 211

  

  

  

 –

  

 

 
 Net cash flows provided by (used in) financing activities

  

  

 215

  

  

  

 (12

 )

 

 
  

  

  

  

  

  

  

 

 
 Net change in cash and cash equivalents

  

  

 (6,642

 )

  

  

 (1,315

 )

 

 
 Cash, beginning of period

  

  

 108,537

  

  

  

 99,120

  

 

 
 Cash, end of period

  

 $

 101,895

  

  

 $

 97,805

  

 

 
  

  

  

  

  

  

  

 

 
 Supplemental disclosure of non-cash investing and financing activities:

  

  

  

  

  

  

 

 
 Right of use assets obtained in exchange for lease obligations

  

 $

 –

  

  

 $

 322

  

 

 
 Exchange of Class B common stock

  

 $

 26

  

  

 $

 2,418

  

 

 
 Impact of equity transactions and compensation on redeemable noncontrolling interest

  

 $

 2,366

  

  

 $

 4,426

  

 

 
 Equipment and facility expansion included in accounts payable and
   accrued expenses

  

 $

 859

  

  

 $

 1,653

  

 

  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
 

 7

 
  

 ProKidney Corp.
Notes to Unaudited Condensed Consolidated Financial Statements
 
Note 1: Description of Business and Basis of Presentation
Description of Business
ProKidney Corp. (the “Company”, “ProKidney Delaware” or “ProKidney”) was originally incorporated as Social Capital Suvretta Holdings Corp. III (“SCS”). SCS was a blank check company incorporated as a Cayman Islands exempted company on February 25, 2021. SCS was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. 
On January 18, 2022, SCS executed a definitive business combination agreement (the “Business Combination Agreement”), with ProKidney LP (“PKLP”), a limited partnership under the laws and regulations of Ireland. Pursuant to the terms of the Business Combination Agreement, PKLP became a subsidiary of SCS and was organized in an umbrella partnership corporation (“Up-C”) structure, which would provide potential future tax benefits for SCS when the equity holders ultimately exchanged their pass-through interests for Class A common stock. The business combination between SCS and PKLP (the “Business Combination”) closed (the “Closing”) on July 11, 2022 (the “Closing Date”). Upon consummation of the transaction, SCS changed its name to ProKidney Corp.
The Business Combination was accounted for as a reverse recapitalization transaction between entities under common control, through which PKLP was considered the accounting acquiror and predecessor entity. The Business Combination was reflected as the equivalent of PKLP issuing stock for the net assets of SCS accompanied by a recapitalization with no goodwill or intangible assets recognized.
Effective July 1, 2025 (the “Domestication Date”), ProKidney Corp., the Cayman Islands exempted company (“ProKidney Cayman”) completed a domestication process through which it changed its jurisdiction of incorporation from the Cayman Islands to the State of Delaware (the “Domestication”). In connection with the Domestication, the Company also completed certain other restructuring transactions (such transactions, together with the Domestication, the “Restructuring”) on the Domestication Date. Prior to the Restructuring, ProKidney Cayman conducted its business indirectly through PKLP and its subsidiaries. Immediately following the Domestication, ProKidney (“ProKidney-KY”), then a wholly owned subsidiary of PK Holdings and a Cayman Islands exempted company, domesticated and continued for purposes of the Delaware Limited Liability Company Act as a Delaware limited liability company named ProKidney IPCo, LLC (“ProKidney IPCo.”). As a result of the consummation of the Domestication and the other transactions involved in the Restructuring, the Company and the other former limited partners of PKLP are now members of ProKidney Holdings, LLC, a Delaware limited liability company (“PK Holdings”), and PK Holdings owns all of the subsidiaries that conduct the Company’s business, including ProKidney IPCo.
After completing the Domestication and other Restructuring transactions, the Company also underwent a series of transactions to streamline its operating subsidiaries from a tax perspective (the “Post-Domestication Reorganization”). The Post-Domestication Reorganization was finalized effective as of September 1, 2025. 
The Domestication represents a transaction between entities under common control. Assets and liabilities transferred between entities under common control are accounted for at cost. Accordingly, the assets and liabilities of ProKidney Corp. (Delaware) and its subsidiaries will be reflected at their historical carrying amounts of ProKidney Corp. (Cayman) as of the Domestication Date. 
For presentation purposes, unless otherwise noted, references to common stock refer to “ordinary shares” before the Domestication and “common stock” subsequent to the Domestication. Similarly, unless otherwise noted, references to PK Holdings herein refers to PKLP prior to the Domestication and PK Holdings subsequent to the Domestication and references to ProKidney IPCo. herein refer to ProKidney-KY prior to the Domestication and ProKidney IPCo. subsequent to the Domestication.
ProKidney Corp., through its operating subsidiaries, is focused on the development of rilparencel, which has the potential to preserve kidney function in patients with advanced CKD and type 2 diabetes.
Principles of Consolidation
ProKidney is a holding company, and its principal asset is a controlling equity interest in PK Holdings and its wholly-owned operating subsidiaries ProKidney IPCo. and ProKidney-US. The Company has determined that PK Holdings is a variable-interest entity for accounting purposes and that ProKidney is the primary beneficiary of PK Holdings because (through its managing member interest in PK Holdings and the fact that the senior management of ProKidney is also the senior management of PK Holdings) it has the power and benefits to direct all of the activities of PK Holdings, which include those that most significantly impact PK Holdings’ economic performance. The Company has therefore consolidated PK Holdings’ results pursuant to Accounting Standards Codification Topic 810, “Consolidation” in its Condensed Consolidated Financial Statements. As of March 31, 2026, various holders own non-voting interests in PK Holdings, representing a 53.0% economic interest in PK Holdings, effectively restricting ProKidney’s interest to 47.0% of PK Holdings’ economic results, subject to increase in the future, should ProKidney purchase additional non-voting common 

 8

 
  

 units (“PK Holdings Units”) of PK Holdings, or should the holders of PK Holdings Units decide to exchange such units (together with shares of Class B common stock) for Class A common stock (or cash) pursuant to the Exchange Agreement (as defined in Note 6). The Company will not be required to provide financial or other support for PK Holdings. However, ProKidney will control its business and other activities through its managing member interest in PK Holdings, and its management is the management of PK Holdings. Nevertheless, because ProKidney will have no material assets other than its interests in PK Holdings and its subsidiaries, any financial difficulties at PK Holdings could result in ProKidney recognizing a loss.

All intercompany transactions and balances have been eliminated. 

Note 2: Significant Accounting Policies
Unaudited Interim Financial Statements
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying Condensed Consolidated Balance Sheet as of March 31, 2026, Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025, Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2026 and 2025, Condensed Consolidated Statement of Changes in Redeemable Noncontrolling Interest and Stockholders’ Deficit for the three months ended March 31, 2026 and 2025 and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 are unaudited. These unaudited financial statements have been prepared in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. 
The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments (consisting of normal recurring adjustments) necessary to state fairly the Company’s financial position as of March 31, 2026, the results of operations for the three months ended March 31, 2026 and 2025 and cash flows for the three months ended March 31, 2026 and 2025. Certain prior year amounts have been reclassified to conform to the current year presentation. The December 31, 2025 Condensed Consolidated Balance Sheet included herein was derived from the audited financial statements but does not include all disclosures or notes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the audited financial statements and the accompanying notes for the year ended December 31, 2025, contained in the Company’s Annual Report on Form 10-K filed with the SEC on March 18, 2026. 
Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). These unaudited consolidated financial statements are presented in U.S. Dollars.
Interim results are not necessarily indicative of results for an entire year.

Use of Estimates
The preparation of unaudited condensed consolidated financial statements, in accordance with GAAP, requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the amounts of expenses during the reported periods. Certain estimates in these condensed consolidated financial statements have been made in connection with the calculation of research and development expenses, equity-based compensation expense and the provision for or benefit from income taxes. The Company bases its estimates on historical experience and various other assumptions, including in certain circumstances future projections, which management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Changes in estimates are reflected in reported results in the period in which they become known. 

Cash Equivalents and Marketable Securities
The Company considers all highly liquid investments with an original maturity of 90 days or less on the date of purchase to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these items.
The Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale. The Company classifies its marketable debt securities as short-term due to its availability for use in its current operations. The cost of securities sold is determined using the specific identification method.
The Company considers all available evidence to evaluate if a credit loss exists, and if so, recognizes an allowance for credit loss. 

 9

 
  

 Concentrations of Credit Risk
Cash and equivalents are the primary financial instruments held by the Company that are potentially subject to concentrations of credit risk. The Company’s cash and equivalents are deposited in accounts at large financial institutions, and such amounts may exceed federally insured limits. 

Accrued Expenses
Accrued expenses as presented in the Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 

 
  

 March 31, 2026

  

  

 December 31, 2025

  

 

 
 Compensation

 $

 4,561

  

  

 $

 11,388

  

 

 
 Severance

  

 183

  

  

  

 449

  

 

 
 Clinical study related costs

  

 14,352

  

  

  

 13,655

  

 

 
 Facility related costs

  

 1,000

  

  

  

 1,151

  

 

 
 Accrued legal costs

  

 174

  

  

  

 204

  

 

 
 Accrued consulting and professional fees

  

 584

  

  

  

 1,217

  

 

 
 Other accrued expenses

  

 1,377

  

  

  

 667

  

 

 
 Total accrued expenses and other

 $

 22,231

  

  

 $

 28,731

  

 

 

 
Research and Development Costs
Research and development costs are expensed as incurred. Research and development expenses are comprised of costs incurred in performing research and development activities, including salaries, benefits, third party license fees, and external costs of outside vendors engaged to conduct manufacturing and preclinical development activities and clinical trials. 
The Company records accruals based on estimates of services received, efforts expended, and amounts owed pursuant to contracts with numerous contract research organizations. In the normal course of business, the Company contracts with third parties to perform various clinical study activities in the ongoing development of potential products. The financial terms of these agreements are subject to negotiation and variation from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events and the completion of portions of the clinical study or similar conditions. The objective of the Company’s accrual policy is to match the recording of expenses in its financial statements to the actual services received and efforts expended. As such, expense accruals related to clinical studies are recognized based on the company’s estimate of the degree of completion of the event or events specified in the specific clinical study.
The Company records nonrefundable advance payments it makes for future research and development activities as prepaid expenses. Prepaid expenses are recognized as expense in the Condensed Consolidated Statement of Operations and Comprehensive Loss as the Company receives the related goods or services.
Costs incurred in obtaining technology licenses are charged to research and development expense as purchased in-process research and development if the technology licensed has not reached technological feasibility and has no alternative future use.

Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Generally, expenditures for maintenance and repairs are charged to expense and major improvements or replacements are capitalized. The Company computes depreciation and amortization using the straight-line method over the estimated useful life of the asset. Leasehold improvements are amortized over the lesser of the life of the lease or the estimated useful life of the leasehold improvement. The estimated useful lives are as follows:
 

 
 
 
 
 

 
 Buildings

 25-30 years

 

 
 Computer equipment and software

 3-5 years

 

 
 Furniture and equipment

 5-7 years

 

 
 Leasehold improvements

 remainder of lease term

 

 
 

 10

 
  

 Fixed assets consisted of the following (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 

 
  

 March 31, 2026

  

  

 December 31, 2025

  

 

 
 Land

 $

 1,405

  

  

 $

 1,405

  

 

 
 Buildings

  

 21,095

  

  

  

 21,095

  

 

 
 Leasehold improvements

  

 22,263

  

  

  

 22,263

  

 

 
 Furniture and equipment

  

 7,055

  

  

  

 7,031

  

 

 
 Computer equipment and software

  

 1,284

  

  

  

 1,284

  

 

 
 Construction in progress

  

 19,326

  

  

  

 14,705

  

 

 
 Less: accumulated depreciation

  

 (17,987

 )

  

  

 (16,552

 )

 

 
 Total fixed assets, net

 $

 54,441

  

  

 $

 51,231

  

 

 
 
 Depreciation expense for the three months ended March 31, 2026 and 2025 was $1,435,000 and $1,384,000, respectively.

Impairment of Long-Lived Assets and Assets Held for Sale
Long-lived assets such as fixed assets and intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. 

Income Taxes
The Company uses the liability method in accounting for income taxes as required by ASC Topic 740 — Income Taxes, under which deferred tax assets and liabilities are recorded for the future tax consequences attributable to the differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, available taxes in the carryback periods, projected future taxable income and tax planning strategies in making this assessment. Accordingly, the Company has provided a full valuation allowance to offset the net deferred tax assets at March 31, 2026 and December 31, 2025. 
Interest and penalties related to income taxes are included in the expense for income taxes in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company has not incurred any significant interest or penalties related to income taxes in any of the periods presented.

 
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy that prioritizes the inputs used to measure fair value is described below. The three levels of inputs used to measure fair value are as follows:
 
•Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities

•Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable through correlation with market data

•Level 3 – Unobservable inputs that are supported by little or no market data, which require the reporting entity to develop its own assumptions

For assets and liabilities recorded at fair value, it is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data are based primarily upon estimates and are often calculated based on the economic and competitive environment, the characteristics of the asset or liability and other factors. Therefore, fair value measurements cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique and changes in the underlying assumptions used, including