life-10q_20220331.htm
false Q1 0001339970 --12-31 P1Y P6Y7D P5Y11M26D 0.017 0.006 P6Y29D P6Y7D 0.024 0.009 0.858 1.040 0.865 1.048 0001339970 2022-01-01 2022-03-31 xbrli:shares 0001339970 2022-05-04 iso4217:USD 0001339970 2022-03-31 0001339970 2021-12-31 iso4217:USD xbrli:shares 0001339970 life:ClassXConvertiblePreferredStockMember 2022-03-31 0001339970 life:ClassXConvertiblePreferredStockMember 2021-12-31 0001339970 2021-01-01 2021-03-31 0001339970 us-gaap:CommonStockMember 2021-12-31 0001339970 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001339970 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001339970 us-gaap:RetainedEarningsMember 2021-12-31 0001339970 us-gaap:NoncontrollingInterestMember 2021-12-31 0001339970 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001339970 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001339970 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001339970 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001339970 us-gaap:NoncontrollingInterestMember 2022-01-01 2022-03-31 0001339970 us-gaap:CommonStockMember 2022-03-31 0001339970 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001339970 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001339970 us-gaap:RetainedEarningsMember 2022-03-31 0001339970 us-gaap:NoncontrollingInterestMember 2022-03-31 0001339970 us-gaap:CommonStockMember 2020-12-31 0001339970 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001339970 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001339970 us-gaap:RetainedEarningsMember 2020-12-31 0001339970 us-gaap:NoncontrollingInterestMember 2020-12-31 0001339970 2020-12-31 0001339970 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001339970 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001339970 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001339970 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001339970 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001339970 us-gaap:CommonStockMember 2021-03-31 0001339970 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001339970 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001339970 us-gaap:RetainedEarningsMember 2021-03-31 0001339970 us-gaap:NoncontrollingInterestMember 2021-03-31 0001339970 2021-03-31 0001339970 us-gaap:EmployeeStockOptionMember 2022-01-01 2022-03-31 xbrli:pure 0001339970 country:HK life:PanguBioPharmaLimitedMember 2022-03-31 0001339970 life:WarrantsForCommonStockMember 2022-01-01 2022-03-31 0001339970 life:WarrantsForCommonStockMember 2021-01-01 2021-03-31 0001339970 life:CommonStockOptionsAndRestrictedStockUnitsMember 2022-01-01 2022-03-31 0001339970 life:CommonStockOptionsAndRestrictedStockUnitsMember 2021-01-01 2021-03-31 0001339970 life:EmployeeStockPurchasePlanMember 2022-01-01 2022-03-31 0001339970 life:EmployeeStockPurchasePlanMember 2021-01-01 2021-03-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001339970 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AvailableforsaleSecuritiesMember 2022-03-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AvailableforsaleSecuritiesMember 2022-03-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001339970 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CommercialPaperMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember us-gaap:AvailableforsaleSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:FairValueMeasurementsRecurringMember us-gaap:AvailableforsaleSecuritiesMember 2021-12-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:AvailableforsaleSecuritiesMember 2021-12-31 0001339970 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001339970 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:MunicipalBondsMember us-gaap:ShortTermInvestmentsMember 2022-03-31 0001339970 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:CorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 us-gaap:MunicipalBondsMember us-gaap:ShortTermInvestmentsMember 2021-12-31 0001339970 srt:MaximumMember 2022-01-01 2022-03-31 0001339970 life:DevelopmentRegulatoryAndSalesMilestoneMember life:KyorinPharmaceuticalCoLtdMember 2020-01-01 2020-01-31 0001339970 2020-01-01 2020-01-31 0001339970 2021-01-01 2021-01-31 0001339970 life:ResearchCollaborationAndLicenseAgreementMember life:KyorinPharmaceuticalCoLtdMember life:CollaborationRevenueMember 2020-01-01 2020-01-31 0001339970 life:ResearchCollaborationAndLicenseAgreementMember life:KyorinPharmaceuticalCoLtdMember life:CollaborationRevenueMember 2020-06-01 2020-06-30 0001339970 life:ResearchCollaborationAndLicenseAgreementMember life:CollaborationRevenueMember life:KyorinPharmaceuticalCoLtdMember 2022-01-01 2022-03-31 0001339970 life:ResearchCollaborationAndLicenseAgreementMember life:CollaborationRevenueMember life:KyorinPharmaceuticalCoLtdMember 2021-01-01 2021-03-31 0001339970 life:HongKongUniversityOfScienceAndTechnologyMember 2020-03-01 2020-03-31 0001339970 life:HongKongUniversityOfScienceAndTechnologyMember 2022-01-01 2022-03-31 0001339970 life:HongKongUniversityOfScienceAndTechnologyMember 2021-01-01 2021-03-31 0001339970 us-gaap:CommonStockMember life:PublicOfferingsMember 2021-01-01 2021-09-30 0001339970 us-gaap:CommonStockMember life:PublicOfferingsMember 2021-09-30 0001339970 life:PublicOfferingsMember 2021-01-01 2021-09-30 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember life:SalesAgreementMember srt:MaximumMember 2021-03-31 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember us-gaap:CommonStockMember 2021-01-01 2021-12-31 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember 2021-12-31 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember 2022-03-31 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember 2021-01-01 2021-12-31 0001339970 life:ATMOfferingProgramMember life:JonesTradingInstitutionalServicesLLCMember 2022-01-01 2022-03-31 0001339970 life:AspireCapitalMember 2020-09-01 2020-09-30 0001339970 life:AspireCapitalMember 2021-01-01 2021-03-31 0001339970 life:AspireCapitalMember 2021-03-31 0001339970 life:InducementPoolNonQualifiedOptionMember 2022-03-31 0001339970 us-gaap:CommonStockMember life:InducementPoolNonQualifiedOptionMember srt:MaximumMember 2022-03-01 2022-03-31 0001339970 us-gaap:CommonStockMember life:InducementPoolNonQualifiedOptionMember 2022-03-01 2022-03-31 0001339970 us-gaap:CommonStockMember life:InducementPoolNonQualifiedOptionMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2022-03-01 2022-03-31 0001339970 us-gaap:CommonStockMember life:InducementPoolNonQualifiedOptionMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2022-03-01 2022-03-31 0001339970 life:WarrantsForCommonStockMember 2022-03-31 0001339970 life:CommonStockOptionsAndRestrictedStockUnitsMember 2022-03-31 0001339970 life:TwoThousandFifteenStockPlanMember 2022-03-31 0001339970 life:TwoThousandTwentyTwoInducementPlanMember 2022-03-31 0001339970 life:EmployeeStockPurchasePlanMember 2022-03-31 0001339970 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2022-01-01 2022-03-31 0001339970 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-03-31 0001339970 srt:MaximumMember us-gaap:EmployeeStockOptionMember 2022-01-01 2022-03-31 0001339970 srt:MaximumMember us-gaap:EmployeeStockOptionMember 2021-01-01 2021-03-31 0001339970 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-03-31 0001339970 us-gaap:RestrictedStockUnitsRSUMember 2021-12-31 0001339970 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 2022-03-31 0001339970 us-gaap:RestrictedStockUnitsRSUMember 2022-03-31 0001339970 us-gaap:ResearchAndDevelopmentExpenseMember 2022-01-01 2022-03-31 0001339970 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-03-31 0001339970 us-gaap:GeneralAndAdministrativeExpenseMember 2022-01-01 2022-03-31 0001339970 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-03-31 0001339970 life:SalesAgreementMember life:ATMOfferingProgramMember life:JefferiesLLCMember srt:MaximumMember us-gaap:SubsequentEventMember 2022-04-30 0001339970 us-gaap:SubsequentEventMember 2022-04-30

f+

 

 

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 March 31, 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: 001-37378

 

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 May 4, 2022, there were 28,056,249 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 March 31, 2022 (unaudited) and December 31, 2021

 

3

Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 (unaudited)

 

4

Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2022 and 2021 (unaudited)

 

5

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2022 and 2021 (unaudited)

 

6

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)

 

7

Notes to Condensed Consolidated Financial Statements (unaudited)

 

8

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

 

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

21

Item 4. Controls and Procedures

 

21

PART II. OTHER INFORMATION

 

 

Item 1. Legal Proceedings

 

21

Item 1A. Risk Factors

 

22

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

 

56

Item 3. Defaults Upon Senior Securities

 

56

Item 4. Mine Safety Disclosures

 

56

Item 5. Other Information

 

56

Item 6. Exhibits

 

57

SIGNATURES

 

59

 

2


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

aTyr Pharma, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,324

 

 

$

2,336

 

Available-for-sale investments

 

 

90,342

 

 

 

105,575

 

Other receivables

 

 

426

 

 

 

435

 

Prepaid expenses

 

 

4,025

 

 

 

5,223

 

Total current assets

 

 

103,117

 

 

 

113,569

 

Property and equipment, net

 

 

433

 

 

 

543

 

Right-of-use assets

 

 

1,050

 

 

 

1,267

 

Other assets

 

 

176

 

 

 

158

 

Total assets

 

$

104,776

 

 

$

115,537

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,563

 

 

$

1,031

 

Accrued expenses

 

 

3,694

 

 

 

4,002

 

Current portion of operating lease liability

 

 

1,012

 

 

 

980

 

Total current liabilities

 

 

6,269

 

 

 

6,013

 

Long-term operating lease liability, net of current portion

 

 

133

 

 

 

398

 

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 as of March 31, 2022 (unaudited) and December 31, 2021, respectively

 

 

 

 

 

 

Common stock, $0.001 par value per share; 42,500,000 authorized shares as of March 31, 2022 and December 31, 2021, respectively; issued and outstanding shares – 28,056,249 (unaudited) and 27,793,035 as of March 31, 2022 and December 31, 2021, respectively

 

 

28

 

 

 

28

 

Additional paid-in capital

 

 

483,730

 

 

 

481,832

 

Accumulated other comprehensive loss

 

 

(759

)

 

 

(263

)

Accumulated deficit

 

 

(384,449

)

 

 

(372,296

)

Total aTyr Pharma, Inc. stockholders’ equity

 

 

98,550

 

 

 

109,301

 

Noncontrolling interest in Pangu BioPharma Limited

 

 

(176

)

 

 

(175

)

Total stockholders’ equity

 

 

98,374

 

 

 

109,126

 

Total liabilities and stockholders’ equity

 

$

104,776

 

 

$

115,537

 

 

See accompanying notes.

 

 

3


 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

$

8,896

 

 

$

4,516

 

General and administrative

 

 

3,482

 

 

 

2,686

 

Total operating expenses

 

 

12,378

 

 

 

7,202

 

Loss from operations

 

 

(12,378

)

 

 

(7,202

)

Total other income (expense), net

 

 

224

 

 

 

47

 

Consolidated net loss

 

 

(12,154

)

 

 

(7,155

)

Net loss attributable to noncontrolling interest in Pangu BioPharma Limited

 

 

1

 

 

 

4

 

Net loss attributable to aTyr Pharma, Inc.

 

$

(12,153

)

 

$

(7,151

)

Net loss per share, basic and diluted

 

$

(0.44

)

 

$

(0.51

)

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

 

 

27,818,379

 

 

 

14,103,783

 

See accompanying notes.

 

 

4


 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

Consolidated net loss

 

$

(12,154

)

 

$

(7,155

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

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

 

 

(496

)

 

 

(14

)

Comprehensive loss

 

 

(12,650

)

 

 

(7,169

)

Comprehensive loss attributable to noncontrolling interest in Pangu BioPharma Limited

 

 

1

 

 

 

4

 

Comprehensive loss attributable to aTyr Pharma, Inc. common stockholders

 

$

(12,649

)

 

$

(7,165

)

 

See accompanying notes.

 

 

 

5


 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands, except share data)

 

 

Three months ended March 31, 2022 (unaudited)

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Noncontrolling

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain/(Loss)

 

 

Deficit

 

 

Interest

 

 

Equity

 

Balance as of December 31, 2021

 

 

27,793,035

 

 

$

28

 

 

$

481,832

 

 

$

(263

)

 

$

(372,296

)

 

$

(175

)

 

$

109,126

 

Issuance of common stock upon release of restricted stock units

 

 

2,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock upon exercise of stock options

 

 

259

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

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

 

 

260,455

 

 

 

 

 

 

1,480

 

 

 

 

 

 

 

 

 

 

 

 

1,480

 

Stock-based compensation

 

 

 

 

 

 

 

 

417

 

 

 

 

 

 

 

 

 

 

 

 

417

 

Net unrealized loss on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

(496

)

 

 

 

 

 

 

 

 

(496

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,153

)

 

 

(1

)

 

 

(12,154

)

Balance as of March 31, 2022

 

 

28,056,249

 

 

$

28

 

 

$

483,730

 

 

$

(759

)

 

$

(384,449

)

 

$

(176

)

 

$

98,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2021 (unaudited)

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Other

Comprehensive

 

 

Accumulated

 

 

Noncontrolling

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain/(Loss)

 

 

Deficit

 

 

Interest

 

 

Equity

 

Balance as of December 31, 2020

 

 

11,018,954

 

 

$

11

 

 

$

370,210

 

 

$

(43

)

 

$

(338,528

)

 

$

(166

)

 

$

31,484

 

Issuance of common stock upon release of restricted stock units

 

 

4,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1,988,254

 

 

 

2

 

 

 

9,619

 

 

 

 

 

 

 

 

 

 

 

 

9,621

 

Issuance of common stock from committed purchase agreement, net of offering costs

 

 

3,000,000

 

 

 

3

 

 

 

15,233

 

 

 

 

 

 

 

 

 

 

 

 

15,236

 

Stock-based compensation

 

 

 

 

 

 

 

 

360

 

 

 

 

 

 

 

 

 

 

 

 

360

 

Net unrealized loss on investments, net of tax

 

 

 

 

 

 

 

 

 

 

 

(14

)

 

 

 

 

 

 

 

 

(14

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,151

)

 

 

(4

)

 

 

(7,155

)

Balance as of March 31, 2021

 

 

16,011,385

 

 

$

16

 

 

$

395,422

 

 

$

(57

)

 

$

(345,679

)

 

$

(170

)

 

$

49,532

 

See accompanying notes.

6


 

 

aTyr Pharma, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

Cash flows from operating activities:

 

 

 

Consolidated net loss

 

$

(12,154

)

 

$

(7,155

)

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

81

 

 

 

121

 

Stock-based compensation

 

 

417

 

 

 

360

 

Amortization of premium of available-for-sale investment securities

 

 

237

 

 

 

51

 

Amortization of right-of-use assets

 

 

217

 

 

 

176

 

Gain on disposal of property and equipment

 

 

(89

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Other receivables

 

 

9

 

 

 

1,950

 

Prepaid expenses and other assets

 

 

1,180

 

 

 

395

 

Accounts payable and accrued expenses

 

 

216

 

 

 

(1,521

)

Operating lease liability

 

 

(233

)

 

 

(204

)

Net cash used in operating activities

 

 

(10,119

)

 

 

(5,827

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(43

)

 

 

(17

)

Purchases of available-for-sale investment securities

 

 

 

 

 

(25,678

)

Maturities of available-for-sale investment securities

 

 

14,500

 

 

 

2,300

 

Proceeds from sale of property and equipment

 

 

169

 

 

 

 

Net cash provided by (used in) investing activities

 

 

14,626

 

 

 

(23,395

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock through option exercises

 

 

1

 

 

 

 

Proceeds from issuance of common stock from at-the-market offerings, net of offering costs

 

 

1,480

 

 

 

9,621

 

Proceeds from issuance of common stock from committed purchase agreement, net of offering costs

 

 

 

 

 

15,236

 

Net cash provided by financing activities

 

 

1,481

 

 

 

24,857

 

Net change in cash and cash equivalents

 

 

5,988

 

 

 

(4,365

)

Cash and cash equivalents at beginning of period

 

 

2,336

 

 

 

16,952

 

Cash and cash equivalents at the end of period

 

$

8,324

 

 

$

12,587

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes.

 

7


 

aTyr Pharma, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

1. Organization, Business, Basis of Presentation and Summary of Significant Accounting Policies

Organization and Business

aTyr Pharma, Inc. (we, us, and our) was incorporated in the State of Delaware on September 8, 2005. We are a biotherapeutics company engaged in the discovery and development of innovative medicines based on our proprietary tRNA synthetase biology platform.

Principles of Consolidation

Our condensed consolidated financial statements include our accounts and our 98% majority-owned subsidiary in Hong Kong, Pangu BioPharma Limited (Pangu BioPharma). All intercompany transactions and balances are eliminated in consolidation.

Unaudited Interim Financial Information

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) and follow the requirements of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. In our opinion, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial position and our results of operations and cash flows for periods presented. These statements do not include all disclosures required by GAAP and should be read in conjunction with our financial statements and accompanying notes for the fiscal year ended December 31, 2021, contained in our Annual Report on Form 10-K filed with the SEC on March 15, 2022. The results of the interim periods are not necessarily indicative of the results expected for the full fiscal year or any other interim period or any future year or period.

Risks and Uncertainties

The impact of the ongoing COVID-19 pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Impacts to our business have included delayed enrollment of our now completed Phase 1b/2a clinical trial in patients with pulmonary sarcoidosis and the discontinuation of some patients in that trial, temporary closures of portions of our facilities and those of our licensees and collaborators, disruptions or restrictions on our employee’s ability to travel and delays in certain research and development activities. Other potential impacts to our business include, but are not limited to disruptions to or delays in planned clinical trials, third-party manufacturing supply and other operations, inflation, the potential diversion of healthcare resources away from the conduct of clinical trials to focus on pandemic concerns, interruptions or delays in the operations of the U.S. Food and Drug Administration or other regulatory authorities, and our ability to raise capital and conduct business development activities.

Liquidity and Financial Condition

We have incurred net losses in each year since our inception in 2005, including a consolidated net loss of $12.2 million for the three months ended March 31, 2022. As of March 31, 2022, we had an accumulated deficit of $384.4 million. We believe that our existing cash, cash equivalents and available-for-sale investments of $98.7 million as of March 31, 2022 will be sufficient to meet our material cash requirements from known contractual and other obligations for a period of at least one year from the filing date of this Quarterly Report on Form 10-Q.

We do not expect to generate any revenues from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates, which we expect will take a number of years at a minimum. If we obtain regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. Accordingly, we will need to raise substantial additional capital to fund our operations. The amount and timing of our future funding requirements will depend on many factors, including the pace and results of our preclinical and clinical development efforts and the timing and nature of the regulatory approval process for our product candidates. We anticipate that we will seek to fund our operations through equity offerings, grant funding, collaborations, strategic partnerships and/or licensing arrangements, and when we are closer to commercialization of our product candidates potentially through debt financings. However, we may be unable to raise additional capital or enter into such arrangements when needed on favorable terms or at all. Our failure to raise capital or enter into such arrangements when needed would have a negative impact on our financial condition and ability to develop our product candidates.

8


Use of Estimates

Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of our condensed consolidated financial statements requires us to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure for these items in our condensed consolidated financial statements and accompanying notes. The most significant estimates in our condensed consolidated financial statements relate to clinical trial and research and development expenses. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ materially from these estimates and assumptions.

Leases

We determine if an arrangement is a lease at inception. Short-term leases with an initial term of 12 months or less are not recorded on our balance sheet. For long-term operating leases with an initial term of greater than 12 months, we recognize an operating right-of-use asset (ROU) and a lease liability based on the present value of future lease payments using an estimated rate of interest that we would pay to borrow equivalent funds on a collateralized basis at the lease commencement date. We determine the lease term at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. Rent expense for the operating lease is recognized on a straight-line basis over the lease term and is included in operating expenses in our condensed consolidated statements of operations.

If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification is determined to be a separate contract when the modification grants the lessee an additional ROU that is not included in the original lease and the lease payments increase commensurate with the standalone price for the additional ROU. A lease modification that results in a separate contract will be accounted for in the same manner as a new lease. For a modification that is not a separate contract, we reassess the lease classification using the modified terms and conditions and the facts and circumstances as of the effective date of the modification and recognize the amount of the remeasurement of the lease liability for the modified lease as an adjustment to the corresponding operating lease ROU asset.

Our ROU asset consists of an operating lease for our facility headquarters. We have a noncancelable operating lease that includes certain tenant improvement allowances and is subject to base lease payments, which escalate over the term of the lease, additional charges for common area maintenance and other costs. We currently do not have any finance leases.

We do not separate lease and non-lease components of our long-term leases.

Rent expense for the operating lease is recognized on a straight-line basis over the lease term and is included in our condensed consolidated statement of operations. Variable lease payments, including lease operating expenses, are recorded as incurred.

Revenue Recognition

We evaluate our agreements under Accounting Standard Codification (ASC) Topic 606, Revenue from Contracts with Customers and ASC Topic 808, Collaborative Arrangements. We recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under our agreement, we perform the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) we satisfy each performance obligation. As part of the accounting for these arrangements, we must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. We use key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success.

We recognize revenue in one of two ways, over time or at a point in time. We recognize revenue over time when we are executing on our performance obligation over time and our partner receives benefit over time. For example, we recognize revenue over time when we provide research and development services. We recognize revenue at a point in time when we transfer control of a distinct performance obligation to our partner. For example, if a license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license.

Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is calculated by dividing the net loss by the weighted average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Dilutive common stock equivalents are comprised

9


of warrants for common stock, options and restricted stock units outstanding under our stock option plan and estimated shares to be purchased under our employee stock purchase plan. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding, as the assumed exercise or settlement of stock options, restricted stock units, and warrants, or the conversion of preferred stock are anti-dilutive.

Potentially dilutive securities not considered for the calculation of diluted net loss per share are as follows (in common stock equivalents):

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Common stock warrants

 

 

13,760

 

 

 

13,760

 

Common stock options and restricted stock units

 

 

1,824,164

 

 

 

898,306

 

Employee stock purchase plan

 

 

2,045

 

 

 

1,602

 

Total

 

 

1,839,969

 

 

 

913,668

 

 

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326), to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in Topic 326 replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Topic 326 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. We expect the adoption of the amendments in Topic 326 to not have a material effect in our condensed consolidated financial position or results of operations when such amendment is adopted.

2. Fair Value Measurements

The carrying amounts of cash equivalents, prepaid and other assets, accounts payable and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. Investment securities are recorded at fair value.

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial assets measured at fair value on a recurring basis consist of investment securities. Investment securities are recorded at fair value, defined as the exit price in the principal market in which we would transact, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Level 2 securities are valued using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data, or discounted cash flow techniques and include our investments in commercial paper, corporate debt securities and asset-bask securities. We have no financial liabilities measured at fair value on a recurring basis. None of our non-financial assets and liabilities are recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented.

Assets measured at fair value on a recurring basis are as follows (in thousands):

 

10


 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

Total

 

 

Quoted Prices in

Active Markets

for Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

As of March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

8,088

 

 

$

8,088

 

 

$

 

 

$

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

26,828

 

 

 

 

 

 

26,828

 

 

 

 

Corporate debt securities

 

 

50,671

 

 

 

 

 

 

50,671

 

 

 

 

Municipal bonds

 

 

12,843

 

 

 

 

 

 

12,843

 

 

 

 

Total available-for-sale investments

 

 

90,342

 

 

 

 

 

 

90,342

 

 

 

 

Total assets measured at fair value

 

$

98,430

 

 

$

8,088

 

 

$

90,342

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

Total

 

 

Quoted Prices in

Active Markets

for Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

As of December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

2,052

 

 

$

2,052

 

 

$

 

 

$

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

36,921

 

 

 

 

 

 

36,921

 

 

 

 

Corporate debt securities

 

 

55,713

 

 

 

 

 

 

55,713

 

 

 

 

Municipal bonds

 

 

12,941

 

 

 

 

 

 

12,941

 

 

 

 

Total available-for-sale investments

 

 

105,575

 

 

 

 

 

 

105,575

 

 

 

 

Total assets measured at fair value

 

$

107,627

 

 

$

2,052

 

 

$

105,575

 

 

$

 

As of March 31, 2022 and December 31, 2021, available-for-sale investments are detailed as follows (in thousands):

 

 

 

 

 

March 31, 2022

 

 

 

Contractual Maturity

 

Gross

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Market Value

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Within 1 year

 

$

26,972

 

 

$

 

 

$

(144

)

 

$

26,828

 

Corporate debt securities

 

1 to 2 years

 

 

51,152

 

 

 

 

 

 

(481

)

 

 

50,671

 

Municipal bonds

 

1 to 2 years

 

 

12,927

 

 

 

 

 

 

(84

)

 

 

12,843

 

 

 

 

 

$

91,051

 

 

$

 

 

$

(709

)

 

$

90,342

 

 

 

 

 

 

December 31, 2021

 

 

 

Contractual Maturity

 

Gross

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Market Value

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

Within 1 year

 

$

36,956

 

 

$

 

 

$

(35

)

 

$

36,921

 

Corporate debt securities

 

1 to 2 years

 

 

55,859