life-10q_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 September 30, 2020

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: 001-37378

 

ATYR PHARMA, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

20-3435077

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

3545 John Hopkins Court, Suite #250, San Diego, CA

92121

(Address of principal executive offices)

(Zip Code)

(858) 731-8389

(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, par value $0.001 per share

LIFE

The Nasdaq Capital 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, 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 6, 2020, there were 10,124,027 shares of the registrant’s common stock, par value $0.001 per share, outstanding.

 

 


 

 

ATYR PHARMA, INC.

FORM 10-Q

TABLE OF CONTENTS

 

 

Page

PART I. FINANCIAL INFORMATION

 

 

Item 1. Financial Statements

 

3

Condensed Consolidated Balance Sheets as of September 30, 2020 (unaudited) and December 31, 2019

 

3

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019 (unaudited)

 

4

Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019 (unaudited)

 

5

Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2020 and 2019 (unaudited)

 

6

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited)

 

8

Notes to Condensed Consolidated Financial Statements (unaudited)

 

9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

17

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

24

Item 4. Controls and Procedures

 

25

PART II. OTHER INFORMATION

 

 

Item 1. Legal Proceedings

 

25

Item 1A. Risk Factors

 

25

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

59

Item 3. Defaults Upon Senior Securities

 

59

Item 4. Mine Safety Disclosures

 

59

Item 5. Other Information

 

59

Item 6. Exhibits

 

60

SIGNATURES

 

62

 

2


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

aTyr Pharma, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

18,151

 

 

$

9,210

 

Available-for-sale investments

 

 

17,995

 

 

 

21,934

 

Other receivables

 

 

245

 

 

 

100

 

Prepaid expenses

 

 

1,827

 

 

 

681

 

Total current assets

 

 

38,218

 

 

 

31,925

 

Property and equipment, net

 

 

1,004

 

 

 

1,270

 

Right-of-use assets

 

 

2,274

 

 

 

2,821

 

Other assets

 

 

140

 

 

 

172

 

Total assets

 

$

41,636

 

 

$

36,188

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,352

 

 

$

847

 

Accrued expenses

 

 

2,733

 

 

 

2,376

 

Contract liability

 

 

53

 

 

 

208

 

Current portion of operating lease liability

 

 

834

 

 

 

755

 

Term loans, net of issuance costs and discount (Note 4)

 

 

3,061

 

 

 

8,737

 

Total current liabilities

 

 

8,033

 

 

 

12,923

 

Long-term operating lease liability, net of current portion

 

 

1,605

 

 

 

2,239

 

Commitments and contingencies (Note 4)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value per share; 5,000,000 undesignated authorized shares; Class X Convertible Preferred Stock issued and outstanding shares – 0 and 1,643,961 as of September 30, 2020 (unaudited) and December 31, 2019, respectively

 

 

 

 

 

2

 

Common stock, $0.001 par value per share; 21,425,000 and 10,714,286 authorized shares as of September 30, 2020 and December 31, 2019, respectively; issued and outstanding shares – 9,990,962 and 3,891,787 as of September 30, 2020 (unaudited) and December 31, 2019, respectively

 

 

10

 

 

 

4

 

Additional paid-in capital

 

 

365,789

 

 

 

343,524

 

Accumulated other comprehensive loss

 

 

(42

)

 

 

(40

)

Accumulated deficit

 

 

(333,596

)

 

 

(322,304

)

Total aTyr Pharma stockholders’ equity

 

 

32,161

 

 

 

21,186

 

Noncontrolling interest in Pangu BioPharma Limited

 

 

(163

)

 

 

(160

)

Total stockholders' equity

 

 

31,998

 

 

 

21,026

 

Total liabilities and stockholders’ equity

 

$

41,636

 

 

$

36,188

 

 

See accompanying notes.

 

 

3


 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License revenues

 

$

148

 

 

$

184

 

 

$

8,402

 

 

$

278

 

Total revenues

 

 

148

 

 

 

184

 

 

 

8,402

 

 

 

278

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

4,616

 

 

 

3,799

 

 

 

12,593

 

 

 

10,458

 

General and administrative

 

 

2,044

 

 

 

1,883

 

 

 

6,780

 

 

 

6,836

 

Total operating expenses

 

 

6,660

 

 

 

5,682

 

 

 

19,373

 

 

 

17,294

 

Loss from operations

 

 

(6,512

)

 

 

(5,498

)

 

 

(10,971

)

 

 

(17,016

)

Total other expense, net

 

 

(88

)

 

 

(147

)

 

 

(324

)

 

 

(614

)

Consolidated net loss

 

$

(6,600

)

 

$

(5,645

)

 

$

(11,295

)

 

$

(17,630

)

Net loss attributable to noncontrolling interest in Pangu BioPharma Limited

 

 

1

 

 

 

 

 

 

3

 

 

 

 

Net loss attributable to aTyr Pharma, Inc.

 

$

(6,599

)

 

$

(5,645

)

 

$

(11,292

)

 

$

(17,630

)

Net loss per share, basic and diluted

 

$

(0.68

)

 

$

(1.47

)

 

$

(1.31

)

 

$

(5.55

)

Shares used in computing net loss per share, basic and diluted

 

 

9,648,534

 

 

 

3,846,249

 

 

 

8,632,972

 

 

 

3,175,177

 

See accompanying notes.

 

 

4


 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

Consolidated net loss

 

$

(6,600

)

 

$

(5,645

)

 

$

(11,295

)

 

$

(17,630

)

Other comprehensive gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized gain (loss) on available-for-sale investments, net of tax

 

 

2

 

 

 

(1

)

 

 

(2

)

 

 

27

 

Comprehensive loss

 

$

(6,598

)

 

$

(5,646

)

 

$

(11,297

)

 

$

(17,603

)

Comprehensive loss attributable to noncontrolling interest Pangu BioPharma Limited

 

 

1

 

 

 

 

 

 

3

 

 

 

 

Comprehensive loss attributable to aTyr Pharma, Inc. common stockholders

 

$

(6,597

)

 

$

(5,646

)

 

$

(11,294

)

 

$

(17,603

)

 

See accompanying notes.

 

 

 

5


 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands, except share data)

 

 

Three and Nine Months Ended September 30, 2020 (unaudited)

 

 

 

Convertible

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Noncontrolling

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain/(Loss)

 

 

Deficit

 

 

Interest

 

 

Equity

 

Balance as of December 31, 2019

 

 

1,643,961

 

 

$

2

 

 

 

3,891,787

 

 

$

4

 

 

$

343,524

 

 

$

(40

)

 

$

(322,304

)

 

$

(160

)

 

$

21,026

 

Conversion of preferred stock to common stock

 

 

(1,643,961

)

 

 

(2

)

 

 

587,444

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon release of restricted stock units

 

 

 

 

 

 

 

 

2,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock from underwritten follow-on offering, net of offering costs

 

 

 

 

 

 

 

 

4,870,588

 

 

 

4

 

 

 

18,775

 

 

 

 

 

 

 

 

 

 

 

 

18,779

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

423

 

 

 

 

 

 

 

 

 

 

 

 

423

 

Net unrealized loss on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

 

 

 

 

 

 

(13

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,753

 

 

 

(1

)

 

 

1,752

 

Balance as of March 31, 2020

 

 

 

 

 

 

 

 

9,352,498

 

 

 

9

 

 

 

362,723

 

 

 

(53

)

 

 

(320,551

)

 

 

(161

)

 

 

41,967

 

Issuance of common stock upon release of restricted stock units

 

 

 

 

 

 

 

 

5,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock pursuant to employee stock purchase plan

 

 

 

 

 

 

 

 

1,780

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Issuance of common stock from at the market offerings, net of offering costs

 

 

 

 

 

 

 

 

23,148

 

 

 

 

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

25

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

378

 

 

 

 

 

 

 

 

 

 

 

 

378

 

Net unrealized gain on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

 

9

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,446

)

 

 

(1

)

 

 

(6,447

)

Balance as of June 30, 2020

 

 

 

 

 

 

 

 

9,383,425

 

 

 

9

 

 

 

363,132

 

 

 

(44

)

 

 

(326,997

)

 

 

(162

)

 

 

35,938

 

Issuance of common stock from at the market offerings, net of offering costs

 

 

 

 

 

 

 

 

607,537

 

 

 

1

 

 

 

2,333

 

 

 

 

 

 

 

 

 

 

 

 

2,334

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324

 

 

 

 

 

 

 

 

 

 

 

 

324

 

Net unrealized gain on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,599

)

 

 

(1

)

 

 

(6,600

)

Balance as of September 30, 2020

 

 

 

 

$

 

 

 

9,990,962

 

 

$

10

 

 

$

365,789

 

 

$

(42

)

 

$

(333,596

)

 

$

(163

)

 

$

31,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three and Nine Months Ended September 30, 2019 (unaudited)

 

 

 

Convertible

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Noncontrolling

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain/(Loss)

 

 

Deficit

 

 

Interest

 

 

Equity

 

Balance as of December 31, 2018

 

 

2,285,952

 

 

$

2

 

 

 

2,186,389

 

 

$

2

 

 

$

332,407

 

 

$

(60

)

 

$

(298,701

)

 

$

 

 

$

33,650

 

Conversion of preferred stock to common stock

 

 

(641,991

)

 

 

 

 

 

229,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock from at the market offerings, net of offering costs

 

 

 

 

 

 

 

 

193,670

 

 

 

 

 

 

1,381

 

 

 

 

 

 

 

 

 

 

 

 

1,381

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

571

 

 

 

 

 

 

 

 

 

 

 

 

571

 

Net unrealized gain on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

20

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,137

)

 

 

 

 

 

(6,137

)

Balance as of March 31, 2019

 

 

1,643,961

 

 

 

2

 

 

 

2,609,342

 

 

 

2

 

 

 

334,359

 

 

 

(40

)

 

 

(304,838

)

 

 

 

 

 

29,485

 

Issuance of common stock upon release of restricted stock units

 

 

 

 

 

 

 

 

7,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock pursuant to employee stock purchase plan

 

 

 

 

 

 

 

 

1,515

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

8

 

6


 

Issuance of common stock from at the market offerings, net of offering costs

 

 

 

 

 

 

 

 

252,872

 

 

 

 

 

 

1,146

 

 

 

 

 

 

 

 

 

 

 

 

1,146

 

Issuance of common stock from registered direct offering, net of offering costs

 

 

 

 

 

 

 

 

660,154

 

 

 

1

 

 

 

4,917

 

 

 

 

 

 

 

 

 

 

 

 

4,918

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

509

 

 

 

 

 

 

 

 

 

 

 

 

509

 

Net unrealized gain on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

8

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,848

)

 

 

 

 

 

(5,848

)

Balance as of June 30, 2019

 

 

1,643,961

 

 

 

2

 

 

 

3,531,370

 

 

 

3

 

 

 

340,939

 

 

 

(32

)

 

 

(310,686

)

 

 

 

 

 

30,226

 

Issuance of common stock from at the market offerings, net of offering costs

 

 

 

 

 

 

 

 

358,815

 

 

 

1

 

 

 

1,877

 

 

 

 

 

 

 

 

 

 

 

 

1,878

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

278

 

 

 

 

 

 

 

 

 

 

 

 

278

 

Net unrealized loss on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,645

)

 

 

 

 

 

(5,645

)

Balance as of September 30, 2019

 

 

1,643,961

 

 

$

2

 

 

 

3,890,185

 

 

$

4

 

 

$

343,094

 

 

$

(33

)

 

$

(316,331

)

 

$

 

 

$

26,736

 

 

 

See accompanying notes.

7


 

 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

(unaudited)

 

Consolidated net loss

 

$

(11,295

)

 

$

(17,630

)

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

441

 

 

 

478

 

Stock-based compensation

 

 

1,125

 

 

 

1,358

 

Debt discount accretion and non-cash interest expense

 

 

324

 

 

 

556

 

Accretion of discount of available-for-sale investment securities

 

 

55

 

 

 

(245

)

Amortization of right-of-use assets

 

 

579

 

 

 

536

 

Loss (gain) on disposal of property and equipment

 

 

10

 

 

 

(28

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Other receivables

 

 

(145

)

 

 

101

 

Prepaid expenses and other assets

 

 

(1,146

)

 

 

(92

)

Accounts payable and accrued expenses

 

 

862

 

 

 

(159

)

Contract liability

 

 

(155

)

 

 

352

 

Operating lease liability

 

 

(555

)

 

 

(324

)

Net cash used in operating activities

 

 

(9,900

)

 

 

(15,097

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(197