10-Q
--12-310001620463Q3false0001620463us-gaap:RestrictedStockUnitsRSUMember2021-12-3100016204632022-01-012022-09-300001620463us-gaap:AdditionalPaidInCapitalMember2021-06-300001620463us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-3000016204632022-01-012022-03-310001620463srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember2021-01-012021-09-300001620463us-gaap:RetainedEarningsMember2022-07-012022-09-300001620463atha:SharesIssuableUponTheExerciseOfOutstandingCommonStockOptionsAndTheVestingOfOutstandingCommonRestrictedStockUnitsGrantedMember2021-12-310001620463us-gaap:RetainedEarningsMember2021-07-012021-09-300001620463atha:WangVAthiraPharmaIncMember2022-01-012022-09-300001620463srt:MaximumMemberatha:LaboratoryAndOfficeFacilitiesMemberatha:BothellWashingtonMember2022-09-300001620463atha:NationalInstitutesOfHealthGrantMember2022-09-300001620463us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100016204632022-09-300001620463atha:LaboratoryEquipmentMember2021-12-310001620463us-gaap:CommonStockMember2021-01-012021-03-310001620463atha:LaboratoryAndOfficeFacilitiesMemberatha:BothellWashingtonMember2022-09-300001620463us-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001620463us-gaap:FairValueInputsLevel2Memberatha:LongTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463us-gaap:RetainedEarningsMember2022-09-300001620463atha:TowThousandAndTwentyEmployeeStockPurchasePlanMember2022-01-010001620463atha:SharesAvailableForFutureGrantUnderEmployeeStockPurchasePlanMember2021-12-3100016204632022-11-070001620463atha:StockOptionsToPurchaseCommonStockMember2021-01-012021-09-300001620463us-gaap:CommonStockMember2021-06-300001620463us-gaap:CommonStockMember2022-04-012022-06-300001620463atha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463atha:ExercisePriceOneMember2022-09-3000016204632021-12-310001620463atha:EmployeeStockPurchasePlanMember2021-01-012021-09-300001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001620463us-gaap:CommonStockMember2021-04-012021-06-300001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001620463srt:MaximumMemberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-09-300001620463atha:WashingtonStateUniversityLicenseAgreementMemberatha:PhaseTwoClinicalTrailInitiationOfLicenseAgreementMember2020-01-012020-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001620463us-gaap:RetainedEarningsMember2021-04-012021-06-300001620463atha:TowThousandAndTwentyEmployeeStockPurchasePlanMember2022-01-012022-09-300001620463srt:MaximumMemberatha:ExercisePriceTwoMember2022-01-012022-09-300001620463srt:MaximumMemberatha:ExercisePriceOneMember2022-01-012022-09-300001620463atha:WashingtonStateUniversityLicenseAgreementMemberatha:LicensedProductsMember2022-01-012022-09-300001620463us-gaap:RestrictedStockUnitsRSUMember2022-09-300001620463us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001620463atha:LongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberatha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463atha:FurnitureFixturesAndComputerEquipmentMember2022-09-300001620463us-gaap:FairValueInputsLevel2Memberatha:USGovernmentDebtMunicipalBondsAndAgencySecuritiesMemberatha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001620463us-gaap:CommonStockMember2021-07-012021-09-300001620463us-gaap:ConstructionInProgressMember2022-09-3000016204632022-06-300001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001620463atha:SlyneVAthiraPharmaIncMember2022-01-012022-09-300001620463srt:MinimumMemberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-09-300001620463atha:NationalInstituteOnAgingOfTheNationalInstitutesOfHealthMember2020-12-310001620463us-gaap:CommonStockMember2022-03-310001620463us-gaap:ConstructionInProgressMember2021-12-3100016204632021-04-012021-06-3000016204632021-09-300001620463us-gaap:RetainedEarningsMember2020-12-310001620463us-gaap:AdditionalPaidInCapitalMember2021-03-310001620463atha:LaboratoryAndOfficeFacilitiesMemberatha:BothellWashingtonMember2022-01-012022-09-300001620463us-gaap:CommonStockMember2022-09-300001620463us-gaap:RetainedEarningsMember2021-01-012021-03-310001620463us-gaap:RestrictedStockUnitsRSUMember2022-06-012022-06-300001620463atha:NationalInstitutesOfHealthGrantMember2021-07-012021-09-300001620463srt:MinimumMemberatha:LaboratoryAndOfficeFacilitiesMemberatha:BothellWashingtonMember2022-09-300001620463atha:SharesAvailableForFutureGrantUnderTwoThousandTwentyEquityIncentivePlanMember2021-12-310001620463us-gaap:AdditionalPaidInCapitalMember2021-12-310001620463us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001620463atha:NonVestedRestrictedStockUnitsMember2022-01-012022-09-300001620463us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001620463us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001620463atha:TwoThousandAndTwentyEquityIncentivePlanMember2022-01-012022-09-300001620463us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463us-gaap:CommonStockMember2021-03-310001620463atha:LongTermInvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001620463us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberatha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463srt:MinimumMemberatha:ExercisePriceTwoMember2022-01-012022-09-300001620463atha:SharesIssuableUponTheExerciseOfOutstandingCommonStockOptionsAndTheVestingOfOutstandingCommonRestrictedStockUnitsGrantedMember2022-09-300001620463us-gaap:AdditionalPaidInCapitalMember2022-09-300001620463us-gaap:RetainedEarningsMember2022-01-012022-03-310001620463atha:WashingtonStateUniversityLicenseAgreementMember2022-09-300001620463us-gaap:RetainedEarningsMember2022-04-012022-06-300001620463us-gaap:CommonStockMember2020-12-310001620463atha:PhaseThreeClinicalTrailInitiationOfLicenseAgreementMemberatha:WashingtonStateUniversityLicenseAgreementMember2015-12-310001620463us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001620463us-gaap:RetainedEarningsMember2021-09-300001620463us-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463atha:StockOptionsToPurchaseCommonStockMember2022-01-012022-09-300001620463us-gaap:FairValueInputsLevel2Memberatha:USGovernmentDebtMunicipalBondsAndAgencySecuritiesMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463atha:NationalInstitutesOfHealthGrantMember2021-12-310001620463us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberatha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016204632021-01-012021-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001620463us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001620463atha:TwoThousandAndTwentyEquityIncentivePlanMember2022-01-010001620463atha:NationalInstitutesOfHealthGrantMember2022-07-012022-09-300001620463us-gaap:RetainedEarningsMember2021-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001620463atha:SharesAvailableForFutureGrantUnderEmployeeStockPurchasePlanMember2022-09-300001620463us-gaap:AdditionalPaidInCapitalMember2022-03-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001620463us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-3000016204632021-07-012021-09-300001620463atha:EmployeeStockPurchasePlanMember2022-01-012022-09-3000016204632021-03-310001620463srt:MinimumMemberatha:ExercisePriceOneMember2022-01-012022-09-300001620463atha:ExercisePriceThreeMembersrt:MinimumMember2022-01-012022-09-3000016204632021-01-012021-03-3100016204632022-03-310001620463us-gaap:CommonStockMember2022-01-012022-03-310001620463us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016204632020-12-310001620463us-gaap:CommonStockMember2021-12-310001620463atha:ExercisePriceThreeMember2022-09-300001620463us-gaap:LeaseholdImprovementsMember2022-09-300001620463atha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463atha:NationalInstitutesOfHealthGrantMember2021-01-012021-09-300001620463us-gaap:LeaseholdImprovementsMember2021-12-310001620463us-gaap:RetainedEarningsMember2021-03-310001620463us-gaap:AdditionalPaidInCapitalMember2021-09-300001620463us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001620463atha:NationalInstitutesOfHealthGrantMember2022-01-012022-09-300001620463us-gaap:FairValueInputsLevel2Memberatha:LongTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463us-gaap:CommonStockMember2022-06-300001620463us-gaap:CommonStockMember2021-09-300001620463us-gaap:AdditionalPaidInCapitalMember2022-06-300001620463atha:ExercisePriceThreeMembersrt:MaximumMember2022-01-012022-09-300001620463atha:JawandhaVAthiraPharmaIncMember2022-01-012022-09-300001620463us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-3000016204632021-01-012021-09-300001620463us-gaap:AdditionalPaidInCapitalMember2020-12-310001620463us-gaap:RetainedEarningsMember2021-06-300001620463us-gaap:FairValueInputsLevel2Memberatha:USGovernmentDebtMunicipalBondsAndAgencySecuritiesMemberatha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-3000016204632021-06-300001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001620463srt:ScenarioPreviouslyReportedMember2021-01-012021-09-3000016204632022-07-012022-09-300001620463us-gaap:FairValueInputsLevel2Memberatha:LongTermInvestmentsMemberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016204632022-04-012022-06-300001620463us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001620463atha:ExercisePriceTwoMember2022-09-300001620463us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001620463us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberatha:ShortTermInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001620463us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001620463atha:LaboratoryEquipmentMember2022-09-300001620463us-gaap:RetainedEarningsMember2022-03-310001620463atha:WashingtonStateUniversityLicenseAgreementMember2015-01-012015-12-310001620463atha:FurnitureFixturesAndComputerEquipmentMember2021-12-310001620463us-gaap:RetainedEarningsMember2022-06-300001620463us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001620463atha:WashingtonStateUniversityLicenseAgreementMember2015-12-310001620463us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001620463atha:SharesAvailableForFutureGrantUnderTwoThousandTwentyEquityIncentivePlanMember2022-09-30xbrli:purexbrli:sharesatha:Segmentiso4217:USDxbrli:sharesiso4217:USD

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2022

 

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: 001-39503

 

Athira Pharma, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

45-3368487

(State or other jurisdiction of
incorporation or organization)

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

 

18706 North Creek Parkway, Suite 104

Bothell, Washington 98011

(Address of principal executive offices)

(425) 620-8501

(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

Common Stock, $0.0001 par value per share

ATHA

The Nasdaq Stock Market LLC

 

 

(The Nasdaq Global Select 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 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, a 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

As of November 7, 2022, there were 37,829,305 shares of registrant’s common stock, $0.0001 par value per share, outstanding.

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

5

Item 1.

Financial Statements (Unaudited)

5

 

Condensed Consolidated Balance Sheets

5

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

6

 

Condensed Consolidated Statements of Stockholders’ Equity

7

 

Condensed Consolidated Statements of Cash Flows

9

 

Notes to Unaudited Condensed Consolidated Financial Statements

10

Item 2.

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

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

PART II.

OTHER INFORMATION

39

Item 1.

Legal Proceedings

39

Item 1A.

Risk Factors

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

94

Item 3.

Defaults Upon Senior Securities

94

Item 4.

Mine Safety Disclosures

94

Item 5.

Other Information

94

Item 6.

Exhibits

95

Signatures

96

 

This report includes our trademarks and registered trademarks, including Athira, Athira Pharma, the Athira logo, and other trademarks or service marks of Athira. Each other trademark, trade name or service mark appearing in this report belongs to its holder.

 

2


 

SUMMARY RISK FACTORS

 

Our business is subject to numerous risks and uncertainties, including those highlighted in the section of this report captioned “Risk Factors.” The following is a summary of the principal risks we face:

We are a late clinical-stage biopharmaceutical company with a limited operating history.
Our ability to generate revenue and achieve profitability depends significantly on our ability to achieve a number of objectives.
Our development of fosgonimeton may never lead to a marketable product.
Our approach to targeting brain growth factors through the use of small molecules is based on a novel therapeutic approach, which exposes us to unforeseen risks. We have limited data from our Phase 1a/1b and Phase 2 clinical trials to date, and we cannot be certain that future trials will yield data in support of the safety, efficacy, and tolerability of our product candidates.
We have concentrated our research and development efforts on the treatment of central nervous system and peripheral degenerative disorders, a field that has seen very limited success in product development.
An independent special committee of our board of directors engaged in a review of papers co-authored by our former chief executive officer in connection with her doctoral research at Washington State University (WSU). The special committee’s findings included that (i) our former chief executive officer altered images in her 2011 doctoral dissertation and at least four research papers that she co-authored while a graduate student at Washington State University, and published from 2011 to 2014, (ii) that we cited challenged research papers in certain communications and applications, and (iii) that WSU’s dihexa patent, exclusively licensed to us, incorporated certain of these altered images. Washington State University has undertaken a review of claims of potential research misconduct involving our former chief executive officer’s doctoral research at Washington State University. We cannot predict when WSU’s investigation will be completed or what conclusions WSU will reach.
Clinical development involves a lengthy and expensive process with an uncertain outcome, and results of early, smaller-scale preclinical studies and clinical trials with a single or few clinical trial sites may not be predictive of eventual safety or effectiveness in large-scale potentially pivotal clinical trials across multiple clinical trial sites. We may encounter substantial delays in clinical trials, or may not be able to conduct or complete clinical trials on the expected timelines, if at all.
If we experience delays or difficulties in the enrollment and/or retention of patients in clinical trials, our regulatory submissions or receipt of necessary marketing approvals could be delayed or prevented.
The loss of any of our key personnel could significantly harm our business, results of operations and competitive position.
We face significant competition, and if our competitors develop and market technologies or products more rapidly than we do or that are more effective, safer, or less expensive than the product candidates we develop, our commercial opportunities will be negatively impacted.
We 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.
The continuing effects of the novel coronavirus disease, or COVID-19, pandemic could adversely impact our business, including our nonclinical studies and clinical trials.
We have incurred significant losses since our inception and anticipate that we will continue to incur significant losses for the foreseeable future.
We will require substantial additional funding to finance our operations, complete the development and commercialization of fosgonimeton, and develop and commercialize other and future product candidates. If we are unable to raise this funding when needed, we may be forced to delay, reduce, or eliminate our product development programs or other operations.
The regulatory approval processes of the U.S. Food and Drug Administration and other comparable foreign regulatory authorities are lengthy, time consuming and inherently unpredictable. If we are not able to obtain, or if there are delays in obtaining, required regulatory approvals for our product candidates, we will not be able to

3


 

commercialize, or will be delayed in commercializing, our product candidates, and our ability to generate revenue will be materially impaired.
We rely on third parties to conduct our nonclinical studies and clinical trials. If these third parties do not properly and successfully carry out their contractual duties or meet expected deadlines, we may not be able to obtain regulatory approval of or commercialize our product candidates.
Even if approved, our product candidates may not achieve adequate market acceptance among physicians, patients, healthcare payors and others in the medical community necessary for commercial success.
We have never commercialized a product candidate before and may lack the necessary expertise, personnel and resources to successfully commercialize any products on our own or together with suitable collaborators.
Our success depends on our ability to protect our intellectual property and our proprietary technologies.
If the scope of any patent protection we obtain is not sufficiently broad, or if we lose any of our patent protection, our ability to prevent our competitors from commercializing similar or identical product candidates would be adversely affected.
The market price of our common stock has been and may continue to be volatile, which could result in substantial losses for investors.
We and certain of our directors and executive officers have been named as defendants in lawsuits that could result in substantial costs and divert management’s attention.
Actions by activist stockholders have in the past been, and may in the future be, disruptive and could cause uncertainty about the strategic direction of our business.

Our Risk Factors are not guarantees that no such conditions exist as of the date of this report and should not be interpreted as an affirmative statement that such risks or conditions have not materialized, in whole or in part.

4


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Athira Pharma, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

 

 

 

September 30, 2022

 

 

December 31, 2021

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

87,049

 

 

$

110,537

 

Short-term investments

 

 

133,913

 

 

 

143,222

 

Unbilled grant receivable

 

 

1,700

 

 

 

2,336

 

Prepaid expenses and other current assets

 

 

6,310

 

 

 

4,704

 

Total current assets

 

 

228,972

 

 

 

260,799

 

Restricted cash

 

 

210

 

 

 

 

Property and equipment, net

 

 

4,291

 

 

 

3,757

 

Operating lease right-of-use asset

 

 

1,586

 

 

 

1,460

 

Long-term investments

 

 

39,071

 

 

 

65,936

 

Other long-term assets

 

 

55

 

 

 

56

 

Total assets

 

$

274,185

 

 

$

332,008

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

751

 

 

$

567

 

Accrued liabilities

 

 

9,197

 

 

 

8,437

 

Current operating lease liability

 

 

316

 

 

 

288

 

Total current liabilities

 

 

10,264

 

 

 

9,292

 

Operating lease liability, less current portion

 

 

1,672

 

 

 

1,632

 

Total liabilities

 

 

11,936

 

 

 

10,924

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $0.0001 par value; 900,000,000 shares
   authorized at September 30, 2022 and December 31, 2021,
   respectively;
37,817,724 and 37,379,077 shares issued
   and outstanding at September 30, 2022 and December 31,
   2021, respectively

 

 

4

 

 

 

4

 

Additional paid-in capital

 

 

426,116

 

 

 

417,363

 

Accumulated other comprehensive loss

 

 

(2,472

)

 

 

(388

)

Accumulated deficit

 

 

(161,399

)

 

 

(95,895

)

Total stockholders' equity

 

 

262,249

 

 

 

321,084

 

Total liabilities and stockholders' equity

 

$

274,185

 

 

$

332,008

 

 

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

5


 

Athira Pharma, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

16,965

 

 

$

10,707

 

 

$

46,228

 

 

$

30,176

 

General and administrative

 

 

7,168

 

 

 

7,119

 

 

 

24,861

 

 

 

15,068

 

Total operating expenses

 

 

24,133

 

 

 

17,826

 

 

 

71,089

 

 

 

45,244

 

Loss from operations

 

 

(24,133

)

 

 

(17,826

)

 

 

(71,089

)

 

 

(45,244

)

Grant income

 

 

2,959

 

 

 

2,079

 

 

 

3,934

 

 

 

6,499

 

Other income, net

 

 

985

 

 

 

73

 

 

 

1,651

 

 

 

231

 

Net loss

 

$

(20,189

)

 

$

(15,674

)

 

$

(65,504

)

 

$

(38,514

)

Unrealized loss on available-for-sale securities

 

 

(547

)

 

 

(33

)

 

 

(2,084

)

 

 

(29

)

Comprehensive loss attributable to common stockholders

 

$

(20,736

)

 

$

(15,707

)

 

$

(67,588

)

 

$

(38,543

)

Net loss per share attributable to common
   stockholders, basic and diluted

 

$

(0.53

)

 

$

(0.42

)

 

$

(1.74

)

 

$

(1.05

)

Weighted-average shares used in computing
   net loss per share attributable to common
   stockholders, basic and diluted

 

 

37,817,724

 

 

 

37,312,356

 

 

 

37,693,830

 

 

 

36,773,100

 

 

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

6


 

Athira Pharma, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2021

(in thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance as of January 1, 2021

 

 

32,485,784

 

 

$

3

 

 

$

315,288

 

 

$

33

 

 

$

(41,042

)

 

$

274,282

 

Issuance of common stock upon exercise of
   common stock options and vesting of
   restricted stock units

 

 

64,527

 

 

 

 

 

 

70

 

 

 

 

 

 

 

 

 

70

 

Proceeds from follow-on public offering, net
   of underwriters' discounts and commissions
   and issuance costs

 

 

4,600,000

 

 

 

1

 

 

 

96,761

 

 

 

 

 

 

 

 

 

96,762

 

Stock-based compensation

 

 

 

 

 

 

 

 

974

 

 

 

 

 

 

 

 

 

974

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

(5

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,866

)

 

 

(8,866

)

Balance as of March 31, 2021

 

 

37,150,311

 

 

$

4

 

 

$

413,093

 

 

$

28

 

 

$

(49,908

)

 

$

363,217

 

Issuance of common stock upon exercise of
   common stock options

 

 

85,593

 

 

 

 

 

 

119

 

 

 

 

 

 

 

 

 

119

 

Issuance of common stock under
   employee stock purchase plan

 

 

15,867

 

 

 

 

 

 

229

 

 

 

 

 

 

 

 

 

229

 

Stock-based compensation

 

 

 

 

 

 

 

 

1,109

 

 

 

 

 

 

 

 

 

1,109

 

Unrealized gain on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

9

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,974

)

 

 

(13,974

)

Balance as of June 30, 2021

 

 

37,251,771

 

 

$

4

 

 

$

414,550

 

 

$

37

 

 

$

(63,882

)

 

$

350,709

 

Issuance of common stock upon exercise of
   common stock options and vesting of
   restricted stock units

 

 

99,333

 

 

 

 

 

 

130

 

 

 

 

 

 

 

 

 

130

 

Stock-based compensation

 

 

 

 

 

 

 

 

1,105

 

 

 

 

 

 

 

 

 

1,105

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(33

)

 

 

 

 

 

(33

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,674

)

 

 

(15,674

)

Balance as of September 30, 2021

 

 

37,351,104

 

 

$

4

 

 

$

415,785

 

 

$

4

 

 

$

(79,556

)

 

$

336,237

 

 

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

7


 

Athira Pharma, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2022

(in thousands, except share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balance as of January 1, 2022

 

 

37,379,077

 

 

$

4

 

 

$

417,363

 

 

$

(388

)

 

$

(95,895

)

 

$

321,084

 

Issuance of common stock upon exercise of
   common stock options

 

 

244,981

 

 

 

 

 

 

210

 

 

 

 

 

 

 

 

 

210

 

Stock-based compensation

 

 

 

 

 

 

 

 

2,731

 

 

 

 

 

 

 

 

 

2,731

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(1,068

)

 

 

 

 

 

(1,068

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,980

)

 

 

(20,980

)

Balance as of March 31, 2022

 

 

37,624,058

 

 

$

4

 

 

$

420,304

 

 

$

(1,456

)

 

$

(116,875

)

 

$

301,977

 

Issuance of common stock upon exercise of
   common stock options and vesting of
   restricted stock units

 

 

163,387

 

 

 

 

 

 

83

 

 

 

 

 

 

 

 

 

83

 

Issuance of common stock under
   employee stock purchase plan

 

 

30,279

 

 

 

 

 

 

214

 

 

 

 

 

 

 

 

 

214

 

Stock-based compensation

 

 

 

 

 

 

 

 

3,095

 

 

 

 

 

 

 

 

 

3,095

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(469

)

 

 

 

 

 

(469

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24,335

)

 

 

(24,335

)

Balance as of June 30, 2022

 

 

37,817,724

 

 

$

4

 

 

$

423,696

 

 

$

(1,925

)

 

$

(141,210

)

 

$

280,565

 

Stock-based compensation

 

 

 

 

 

 

 

 

2,420

 

 

 

 

 

 

 

 

 

2,420

 

Unrealized loss on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

(547

)

 

 

 

 

 

(547

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,189

)

 

 

(20,189

)

Balance as of September 30, 2022

 

 

37,817,724

 

 

$

4

 

 

$

426,116

 

 

$

(2,472

)

 

$

(161,399

)

 

$

262,249

 

 

8


 

Athira Pharma, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

Operating activities

 

 

 

 

 

 

Net loss

 

$

(65,504

)

 

$

(38,514

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Stock-based compensation

 

 

8,246

 

 

 

3,188

 

Depreciation expense

 

 

606

 

 

 

353

 

Non-cash lease expense

 

 

154

 

 

 

111

 

Amortization of premiums and accretion of discounts on
   available-for-sale securities, net

 

 

(67

)

 

 

347

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Unbilled grant receivable

 

 

636

 

 

 

(779

)

Prepaid expenses and other current assets

 

 

(1,605

)

 

 

5,152

 

Accounts payable and accrued liabilities

 

 

944

 

 

 

4,913

 

Operating lease liability

 

 

(212

)

 

 

308

 

Net cash used in operating activities

 

 

(56,802

)

 

 

(24,921

)

Investing activities

 

 

 

 

 

 

Purchases of available-for-sale securities

 

 

(85,117

)

 

 

(269,378

)

Maturities of available-for-sale securities

 

 

119,274

 

 

 

226,420

 

Proceeds from sales of available-for-sale securities

 

 

 

 

 

18,052

 

Purchases of property and equipment

 

 

(1,140

)

 

 

(546