SEC Filing | aTyr Pharma

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10-Q

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, 2022

☐ 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 8, 2022, there were 29,009,382 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, 2022 (unaudited) and December 31, 2021		3
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 (unaudited)		4
Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2022 and 2021 (unaudited)		5
Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021 (unaudited)		6
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (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		25
Item 4. Controls and Procedures		25
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		26
Item 1A. Risk Factors		26
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		63
Item 3. Defaults Upon Senior Securities		63
Item 4. Mine Safety Disclosures		63
Item 5. Other Information		63
Item 6. Exhibits		63
SIGNATURES		66

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,
	2022			2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	18,359		$	2,336
Available-for-sale investments		59,015			105,575
Other receivables		873			435
Prepaid expenses		6,386			5,223
Total current assets		84,633			113,569
Restricted cash		2,239			—
Property and equipment, net		1,275			543
Operating lease, right-of-use assets		6,971			1,267
Financing lease, right-of-use assets		768			—
Other assets		169			158
Total assets	$	96,055		$	115,537
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	3,129		$	1,031
Accrued expenses		7,269			4,002
Current portion of operating lease liability		657			980
Current portion of financing lease liability		158			—
Total current liabilities		11,213			6,013
Long-term operating lease liability, net of current portion		7,218			398
Long-term financing lease liability, net of current portion		618			—
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 5,000,000 undesignated authorized shares as of September 30, 2022 (unaudited) and December 31, 2021; no shares issued or outstanding as of September 30, 2022 (unaudited) and December 31, 2021		—			—
Common stock, $0.001 par value per share; 85,000,000 and 42,500,000 authorized shares as of September 30, 2022 (unaudited) and December 31, 2021, respectively; issued and outstanding shares – 29,009,382 and 27,793,035 as of September 30, 2022 (unaudited) and December 31, 2021, respectively		29			28
Additional paid-in capital		487,937			481,832
Accumulated other comprehensive loss		(669	)		(263	)
Accumulated deficit		(410,113	)		(372,296	)
Total aTyr Pharma, Inc. stockholders’ equity		77,184			109,301
Noncontrolling interest in Pangu BioPharma Limited		(178	)		(175	)
Total stockholders’ equity		77,006			109,126
Total liabilities and stockholders’ equity	$	96,055		$	115,537

See accompanying notes.

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,
	2022			2021			2022			2021
	(unaudited)
Operating expenses:
Research and development	$	9,867		$	5,138		$	27,898		$	17,309
General and administrative		3,625			2,590			10,556			8,066
Total operating expenses		13,492			7,728			38,454			25,375
Loss from operations		(13,492	)		(7,728	)		(38,454	)		(25,375	)
Total other income (expense), net		247			59			634			159
Consolidated net loss		(13,245	)		(7,669	)		(37,820	)		(25,216	)
Net loss attributable to noncontrolling interest in Pangu BioPharma Limited		1			2			3			7
Net loss attributable to aTyr Pharma, Inc.	$	(13,244	)	$	(7,667	)	$	(37,817	)	$	(25,209	)
Net loss per share, basic and diluted	$	(0.46	)	$	(0.42	)	$	(1.34	)	$	(1.56	)
Shares used in computing net loss per share, basic and diluted		28,663,047			18,159,231			28,184,698			16,145,351

See accompanying notes.

aTyr Pharma, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	(unaudited)
Consolidated net loss	$	(13,245	)	$	(7,669	)	$	(37,820	)	$	(25,216	)
Other comprehensive loss:
Change in unrealized gain (loss) on available-for-sale investments, net of tax		141			(8	)		(406	)		(26	)
Comprehensive loss		(13,104	)		(7,677	)	$	(38,226	)	$	(25,242	)
Comprehensive loss attributable to noncontrolling interest in Pangu BioPharma Limited		1			2			3			7
Comprehensive loss attributable to aTyr Pharma, Inc. common stockholders	$	(13,103	)	$	(7,675	)	$	(38,223	)	$	(25,235	)

See accompanying notes.

aTyr Pharma, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands, except share data)


	Three and Nine Months Ended September 30, 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
Issuance of common stock pursuant to employee stock purchase plan			1,958		—		5		—			—			—			5
Issuance of common stock from at-the-market offerings, net of offering costs			69,251		—		34		—			—			—			34
Stock-based compensation			—		—		517		—			—			—			517
Net unrealized loss on investments, net of tax			—		—		—		(51	)		—			—			(51	)
Net loss			—		—		—		—			(12,420	)		(1	)		(12,421	)
Balance as of June 30, 2022			28,127,458		28		484,286		(810	)		(396,869	)		(177	)		86,458
Issuance of common stock from at-the-market offerings, net of offering costs			881,924		1		3,036		—			—			—			3,037
Stock-based compensation			—		—		615		—			—			—			615
Net unrealized gain on investments, net of tax			—		—		—		141			—			—			141
Net loss			—		—		—		—			(13,244	)		(1	)		(13,245	)
Balance as of September 30, 2022			29,009,382	$	29	$	487,937	$	(669	)	$	(410,113	)	$	(178	)	$	77,006


	Three and Nine Months Ended September 30, 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
Issuance of common stock upon exercise of stock options			553		—		1		—			—			—			1
Issuance of common stock pursuant to employee stock purchase plan			1,602		—		5		—			—			—			5
Issuance of common stock from at-the-market offerings, net of offering costs			293,830		—