Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, focusing on medium and small-cap markets, as well as blue-chip companies and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology to enhance workflows, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%2E%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) The unaudited financial statements show a net loss of $81.9 million for the nine months ended September 30, 2024, with cash and investments of $68.9 million, reflecting restructuring and legal expenses [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial position shows a decrease in total assets from $160.2 million at year-end 2023 to $86.2 million as of September 30, 2024 Condensed Consolidated Balance Sheet Data (in thousands) | | September 30, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $82,002 | $154,729 | | **Total Assets** | $86,246 | $160,245 | | **Total Current Liabilities** | $27,751 | $28,840 | | **Total Liabilities** | $28,663 | $30,057 | | **Total Stockholders' Equity** | $57,583 | $130,188 | Condensed Consolidated Statements of Operations Data (in thousands, except per share data) | | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | **Total Operating Expenses** | $29,621 | $85,336 | | **Loss from Operations** | $(29,621) | $(85,336) | | **Net Loss** | $(28,741) | $(81,937) | | **Net Loss Per Share** | $(0.75) | $(2.13) | Condensed Consolidated Statements of Cash Flows Data (in thousands) | | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(71,157) | $(74,460) | | **Net cash provided by investing activities** | $57,642 | $88,698 | | **Net cash provided by financing activities** | $160 | $341 | | **Net (decrease) increase in cash** | $(13,355) | $14,579 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's financial condition, including $68.9 million in cash, a 70% workforce reduction, and significant legal expenses for settlements and investigations - As of September 30, 2024, the company had **$68.9 million** in cash, cash equivalents, and investments[17](index=17&type=chunk)[18](index=18&type=chunk) - Management estimates this will be sufficient to fund operations and capital expenditures for at least the next **12 months**[17](index=17&type=chunk)[18](index=18&type=chunk) - On September 15, 2024, the company initiated a restructuring to terminate approximately **70% of its workforce**, expecting to incur about **$2.8 million** in severance costs[40](index=40&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - As of September 30, 2024, a liability of **$2.3 million** was accrued for severance costs[40](index=40&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - The company recorded a **$10.0 million** legal settlement expense for a securities class action, with an expected **$1.6 million** insurance recovery[69](index=69&type=chunk)[76](index=76&type=chunk) - An additional **$4.1 million** legal expense was recorded in Q3 2024 related to a government investigation[69](index=69&type=chunk)[76](index=76&type=chunk) - The company's license agreement with WSU includes potential future milestone payments of **$300,000** upon initiation of a Phase 3 trial and **$600,000** upon marketing approval for the first licensed product[54](index=54&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift to ATH-1105 for ALS, a 70% workforce reduction, decreased R&D expenses, and $68.9 million in cash and investments [Overview & Recent Developments](index=26&type=section&id=Overview%20%26%20Recent%20Developments) The company shifted focus to ATH-1105 for ALS after fosgonimeton's trial failure, initiating a strategic review and a 70% workforce reduction - Following the failure of the LIFT-AD trial for fosgonimeton to meet its endpoints, the company has paused its development and shifted focus to the clinical development of **ATH-1105 for Amyotrophic Lateral Sclerosis (ALS)**[112](index=112&type=chunk)[116](index=116&type=chunk) - The company is exploring strategic alternatives, which may include an acquisition, merger, sale of assets, or other transactions, to maximize stockholder value[123](index=123&type=chunk)[132](index=132&type=chunk) - On September 15, 2024, the company committed to a workforce reduction of approximately **70%** to decrease costs and support strategic priorities, including the development of ATH-1105[134](index=134&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total operating expenses decreased to $85.3 million for the nine months ended September 30, 2024, driven by reduced R&D and G&A, despite new legal expenses Comparison of Results of Operations (in thousands) | | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Research and development** | $61,312 | $70,110 | $(8,798) | (13%) | | **General and administrative** | $19,897 | $26,342 | $(6,445) | (24%) | | **Legal expense** | $4,127 | $— | $4,127 | 100% | | **Total operating expenses** | $85,336 | $96,452 | $(11,116) | (12%) | | **Net loss** | $(81,937) | $(90,387) | $8,450 | (9%) | - The decrease in R&D expenses for the nine months ended Sep 30, 2024 was primarily due to a **$12.1 million** decrease in fosgonimeton program costs, partially offset by a **$6.8 million** increase in ATH-1105 program costs associated with its Phase 1 trial[153](index=153&type=chunk) - A legal expense of **$4.1 million** was recorded during the third quarter of 2024 in connection with the Department of Justice investigation[149](index=149&type=chunk)[155](index=155&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, the company had $68.9 million in cash and investments, deemed sufficient for 12 months, with an unutilized $75.0 million ATM program - As of September 30, 2024, the company had **$68.9 million** in cash, cash equivalents and investments[159](index=159&type=chunk) - The company estimates that its existing cash and investments are sufficient to fund operating expenses and capital expenditure requirements through at least the next **12 months**[161](index=161&type=chunk) - The company has an active sales agreement for an "at the market" (ATM) equity offering of up to **$75.0 million**, but has not sold any securities under this program as of the report date[161](index=161&type=chunk) Summary of Cash Flows (in thousands) | | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(71,157) | $(74,460) | | **Net cash provided by investing activities** | $57,642 | $88,698 | | **Net cash provided by financing activities** | $160 | $341 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Athira Pharma, Inc. is not required to provide the information for this item - The company is not required to provide information for this item as it qualifies as a smaller reporting company[178](index=178&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2024, with no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[180](index=180&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II%2E%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company provides updates on significant legal matters, including a $10.0 million securities class action settlement, dismissed derivative actions, and an ongoing government investigation - The securities class action lawsuit was settled for **$10.0 million**, with final court approval granted on November 1, 2024[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - The company recorded the expense in Q4 2022 and an associated **$1.6 million** insurance recovery in Q4 2023[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - The shareholder derivative actions were consolidated and settled, with final court approval granted on July 18, 2024, and the case dismissed[199](index=199&type=chunk)[200](index=200&type=chunk) - The company paid the related fee and expense award in Q3 2024[199](index=199&type=chunk)[200](index=200&type=chunk) - The company is cooperating with a Civil Investigative Demand from the Department of Justice received in November 2022, and a legal expense of **$4.1 million** was recorded in Q3 2024 based on developments[201](index=201&type=chunk)[202](index=202&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company faces extensive risks including clinical development uncertainty, financial needs, potential Nasdaq delisting, strategic review outcomes, and litigation [Risks Relating to Business and Drug Development](index=42&type=section&id=Risks%20Relating%20to%20Our%20Business%20and%20the%20Development%20of%20Our%20Drug%20Candidates) Business risks include limited operating history, high dependence on ATH-1105 success in neurodegenerative disorders, and potential harm from former CEO's research misconduct investigation - The company's prospects are highly dependent on the successful development of **ATH-1105**, as development of its previous lead candidate, fosgonimeton, was paused after the Phase 2/3 LIFT-AD trial failed to meet its primary and key secondary endpoints[210](index=210&type=chunk)[216](index=216&type=chunk) - The company's focus on neurodegenerative disorders is a high-risk field that has seen very limited success in product development[222](index=222&type=chunk)[223](index=223&type=chunk) - An independent special committee found that the former CEO altered images in her doctoral research, which, along with an ongoing review by WSU, could adversely affect the company's reputation, in-licensed patents, and grants[251](index=251&type=chunk)[253](index=253&type=chunk)[255](index=255&type=chunk) [Risks Relating to Financial Position and Capital Needs](index=52&type=section&id=Risks%20Relating%20to%20Our%20Financial%20Position%20and%20Capital%20Needs) The company has a history of significant losses and requires substantial additional funding, with future capital needs uncertain given the strategic review - The company will require substantial additional funding to finance operations and complete the development of ATH-1105, and failure to raise capital when needed may force delays or elimination of drug development programs[276](index=276&type=chunk) - The company has incurred significant losses since inception, with an accumulated deficit of **$391.1 million** as of September 30, 2024, and anticipates continued losses for the foreseeable future[286](index=286&type=chunk)[287](index=287&type=chunk) - The ability to use net operating loss (NOL) carryforwards to offset future taxable income may be subject to limitations due to past or future "ownership changes" under Section 382 of the Internal Revenue Code[299](index=299&type=chunk) [Risks Relating to Strategic Process](index=56&type=section&id=Risks%20Relating%20to%20Strategic%20Process%20and%20Potential%20Strategic%20Transaction) The ongoing strategic alternatives exploration offers no guarantee of success, is costly, and may lead to dissolution with uncertain stockholder distributions - There is no assurance that the company's exploration of strategic alternatives will result in a successful transaction, and the process is costly and time-consuming[303](index=303&type=chunk)[304](index=304&type=chunk) - If a strategic transaction is not completed, the board may decide to pursue a dissolution and liquidation, where the amount of cash available for distribution to stockholders is uncertain and depends on reserving for liabilities[312](index=312&type=chunk) [Risks Relating to Ownership of Our Common Stock](index=89&type=section&id=Risks%20Relating%20to%20Ownership%20of%20Our%20Common%20Stock) Risks to common stock ownership include potential Nasdaq delisting, price volatility, activist stockholder actions, and reduced disclosure as an emerging growth company - The company's common stock is at risk of being delisted from Nasdaq for failure to comply with the minimum **$1.00 per share** closing bid price requirement and the minimum **$50 million** market value of listed securities requirement[536](index=536&type=chunk)[537](index=537&type=chunk) - The market price of the company's common stock has been and may continue to be volatile due to factors such as clinical trial results, competitor announcements, and regulatory developments[542](index=542&type=chunk)[543](index=543&type=chunk) - Actions by activist stockholders have been disruptive in the past and could cause uncertainty about the company's strategic direction in the future[548](index=548&type=chunk) - In September 2024, the company initiated a workforce reduction of approximately **70%**, which carries risks including failure to achieve expected cost savings and negative impacts on morale and employee retention[571](index=571&type=chunk)[576](index=576&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=98&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period covered by this report - There were no recent sales of unregistered equity securities[594](index=594&type=chunk) [Item 5. Other Information](index=98&type=section&id=Item%205.%20Other%20Information) During the last fiscal quarter, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the last fiscal quarter[595](index=595&type=chunk) [Item 6. Exhibits](index=99&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including corporate governance documents, employment and separation agreements, and required SEC certifications - The report includes exhibits such as the Amended and Restated Certificate of Incorporation, employment and separation agreements for key personnel, and certifications by the CEO and CFO[597](index=597&type=chunk)

Exhibit 99.1 Athira Pharma Reports Third Quarter 2024 Financial Results and Pipeline and Business Updates Expects to complete healthy volunteer Phase 1 clinical study of ATH-1105 by year end and begin dosing ALS patients in 2025 BOTHELL, Wash., November 7, 2024 – Athira Pharma, Inc. (NASDAQ: ATHA), a clinical-stage biopharmaceutical company focused on developing small molecules to restore neuronal health and slow neurodegeneration, today reported financial results for the quarter ended September 30, 2024, a ...

Clinical Development & Pipeline Programs - Athira Pharma is advancing ATH-1105, a next-generation, orally administered small molecule drug candidate, as a potential treatment for ALS and other neurodegenerative diseases [2][4] - ATH-1105 has shown preclinical efficacy in reducing plasma neurofilament light chain (NfL) levels, improving motor and nerve function, enhancing neuronal survival, and improving biomarkers of inflammation and neurodegeneration in ALS models [2] - The company is conducting a Phase 1 trial (NCT 06432647) in healthy volunteers to evaluate the safety, tolerability, and pharmacokinetics of ATH-1105, with completion expected by year-end 2024 and plans to dose ALS patients in 2025 [5] - Fosgonimeton (ATH-1017), a drug candidate for Alzheimer's disease, did not meet primary or key secondary endpoints in the LIFT-AD Phase 2/3 trial, though biomarker and subgroup data were directionally consistent with its neuroprotective mechanism [6] Financial Results - Cash, cash equivalents, and investments totaled $68.9 million as of September 30, 2024, down from $147.4 million as of December 31, 2023 [8] - Net cash used in operations was $71.2 million for the nine months ended September 30, 2024, compared to $74.5 million for the same period in 2023 [8] - R&D expenses decreased to $17.9 million for Q3 2024 from $27.2 million in Q3 2023, while G&A expenses remained stable at $7.6 million compared to $7.8 million in the prior year [8] - The company accrued $4.1 million in legal expenses related to a U.S. Department of Justice investigative demand [8] - Net loss for Q3 2024 was $28.7 million ($0.75 per share), compared to a net loss of $33.0 million ($0.87 per share) in Q3 2023 [8] Strategic Initiatives - Following the topline results of the LIFT-AD trial, Athira is exploring strategic alternatives to maximize stockholder value, including potential partnerships, while pausing further development of fosgonimeton [7] - The company has engaged Cantor Fitzgerald & Co. as an advisor in the process of exploring strategic alternatives [7] Company Overview - Athira Pharma is a clinical-stage biopharmaceutical company focused on developing small molecules to restore neuronal health and slow neurodegeneration by modulating the neurotrophic HGF system [9]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - ATHA Energy Corp. has entered into definitive option agreements with Terra Uranium Ltd. allowing T92 to acquire a 70% interest in ATHA's Spire and Horizon properties, while ATHA can earn up to a 60% interest in T92's Pasfield Lake property [1] Spire Horizon Option - T92 is required to incur a minimum of $4,750,000 in exploration expenditures to earn a 70% interest in the Spire Horizon Projects, with specific expenditure milestones set for December 2024, September 2025, September 2026, September 2027, and September 2028 [2] - Upon meeting the first three expenditure milestones, a joint venture will be formed with T92 and ATHA each holding a 50% participating interest, which will adjust to 70% for T92 and 30% for ATHA after the fourth and fifth expenditures [3] Pasfield Option - T92 grants ATHA four separate options to acquire interests in the Pasfield Project, each requiring specific exploration expenditures or successful drilling activities to earn a 15% interest [4][5] - After exercising all Pasfield Options, ATHA can convert its interests into a 1% net smelter returns royalty, with a maximum of 4% [6] - A joint venture will be formed on the Pasfield Project upon completion of the fourth option, with T92 holding an initial 40% interest and ATHA holding 60% [6] Investor Relations Agreements - ATHA has extended its agreement with Hybrid Financial Inc. for an additional three months, and has also extended its agreement with Gold Standard Media LLC for three months, subject to TSX Venture Exchange approval [7] - The marketing campaign with Creative Direct Marketing Group Inc. has been deferred due to market conditions, with no additional costs incurred beyond an initial fee [7] Company Overview - ATHA Energy Corp. is focused on the acquisition, exploration, and development of uranium assets, holding a portfolio that includes three 100%-owned post-discovery uranium projects and the largest cumulative prospective exploration land package exceeding 8.5 million acres in prominent uranium basins [9]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2] Group 2 - The company specializes in various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [2] - Proactive adopts technology to enhance workflows and improve content production [3] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [3]