--- title: "Oruka reports $410,875 thousand in cash at September 30, 2024" url: "https://aibio.space/news/oruka-reports-410-875-thousand-cash-september-30-2024/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2024-11-13" section: "Distress" tickers: "NASDAQ:ORKA" source: "https://www.sec.gov/Archives/edgar/data/907654/000121390024097443/ea0216929-10q_oruka.htm" summary: "A separate exhibit carries an audited balance sheet dated February 6, 2024, the company's inception. The auditor's report on it raises going-concern doubt." --- By the aibio.space news desk. Sources - [Oruka Therapeutics, Inc. 10-Q (2024-11-13)](https://www.sec.gov/Archives/edgar/data/907654/000121390024097443/ea0216929-10q_oruka.htm) - [ea022136201ex99-1_oruka.htm](https://www.sec.gov/Archives/edgar/data/907654/000121390024098530/ea022136201ex99-1_oruka.htm) [ORKA](https://aibio.space/companies/oruka-therapeutics/) 2024-11-13 # Oruka reports $410,875 thousand in cash at September 30, 2024 Tickers [ORKA](https://aibio.space/companies/oruka-therapeutics/) A separate exhibit carries an audited balance sheet dated February 6, 2024, the company's inception. The auditor's report on it raises going-concern doubt. ## Key facts - **Company**: Oruka Therapeutics, Inc. (NASDAQ: ORKA) - **News type**: Distress - **Primary source**: [Oruka Therapeutics, Inc. 10-Q (2024-11-13)](https://www.sec.gov/Archives/edgar/data/907654/000121390024097443/ea0216929-10q_oruka.htm) *A columned courthouse. Photo: Carol M Highsmith, CC0, via rawpixel. The picture shows the field, not the companies named.* Oruka Therapeutics, Inc. (Nasdaq: [ORKA](https://aibio.space/companies/oruka-therapeutics/)) filed its quarterly report on Form 10-Q on November 13, 2024, for the quarter ended September 30, 2024. The report shows cash and cash equivalents of $410,875 thousand and total assets of $414,090 thousand. The company also filed an exhibit with an audited balance sheet dated February 6, 2024, the date of its inception. That balance sheet shows total assets of $1 thousand, a subscription receivable. The auditor's report on that balance sheet includes a going-concern paragraph. ## The going-concern language and what it covers The PricewaterhouseCoopers LLP report on the February 6, 2024 balance sheet says the company has not generated any revenue from product sales or other sources, and that it has incurred significant operating losses and negative cash flows since inception. Those conditions, the auditor says, raise substantial doubt about its ability to continue as a going concern. The notes to that balance sheet say the company had no cash on February 6, 2024, and will need substantial additional funding. PricewaterhouseCoopers dates its report May 13, 2024, with later dates for the effects of a reverse stock split (September 5, 2024) and the reverse merger exchange ratio (November 13, 2024). The warning is attached to that opening balance sheet, not to the September 30, 2024 figures in the quarterly report. The September figures are a different date, after the company raised its money. ## How the cash arrived The company became public through a reverse recapitalization with ARCA, under an agreement and plan of merger dated April 3, 2024. The cash-flow statement in the 10-Q shows the sources. A pre-closing financing provided net proceeds of $228,127 thousand. A PIPE financing provided $189,087 thousand net. Notes payable to related parties provided $24,980 thousand, and cash acquired in the reverse recapitalization was $4,940 thousand. Net cash provided by financing activities totaled $450,065 thousand. ## Losses and burn The net loss for the three months ended September 30, 2024 was $28.6 million. From inception on February 6, 2024 to September 30, 2024, the net loss was $57.9 million, and the company used $39,019 thousand in operations. The company had no product revenue in that period. The company says its existing cash and cash equivalents will be sufficient to fund operating expenses and capital expenditures for at least 12 months from the date the quarterly statements were issued. It also says that if it cannot raise more capital when needed, that could raise substantial doubt about its ability to continue as a going concern. The 12-month statement and the going-concern risk are both in the filing. ## The share count The company had 34,998,550 shares of common stock outstanding as of October 31, 2024. The 10-Q's own figures show the company's total assets, almost all of them cash, sitting well above its liabilities of $18,881 thousand. ## The reading The filing contains two statements that point in different directions. The first is the company's view that its cash will last at least a year, which is supported by the September 30 balance. The second is the auditor's warning about the opening balance sheet, which describes a company with no cash at inception and no revenue. The 12-month statement covers the period after the filing and nothing beyond it. The cover page checks the smaller reporting company box and leaves the emerging growth company box unchecked. Readers weighing the going-concern warning should keep in mind that it refers to a balance sheet before the financings closed, while the cash figures describe the company after them. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story ORKA Oruka Therapeutics, Inc. 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Cite as: aibio.space, "Oruka reports $410,875 thousand in cash at September 30, 2024", 2024-11-13, https://aibio.space/news/oruka-reports-410-875-thousand-cash-september-30-2024/