Revenue and Financial Performance - The company recognized $7.9 million in license revenue under the Kyorin Agreement for the three months ended March 31, 2020[96]. - Revenues for the three months ended March 31, 2020, were $8.1 million, a significant increase from $0 in the same period of 2019[111]. - The company reported a net income of $2.1 million for the three months ended March 31, 2020, compared to a net loss of $6.1 million in the same period of 2019[121]. - As of March 31, 2020, the company had an accumulated deficit of $320.6 million and expected to continue incurring net losses for the foreseeable future[114]. - The company had cash, cash equivalents, and available-for-sale investments totaling $49.8 million as of March 31, 2020, which is expected to meet cash requirements for at least one year[114]. - Net cash provided by operating activities for the three months ended March 31, 2020, was $2.1 million, compared to net cash used of $6.0 million in the same period of 2019[121]. - The company completed a follow-on public offering in February 2020, raising approximately $20.7 million in gross proceeds[120]. Research and Development - The company is currently enrolling a proof-of-concept Phase 1b/2a clinical trial for ATYR1923 in patients with pulmonary sarcoidosis[85]. - The company anticipates increased research and development expenses primarily related to the ATYR1923 clinical trials and other potential therapeutics[103]. - Research and development expenses increased to $3.6 million for the three months ended March 31, 2020, up from $3.3 million in 2019, primarily due to the progression of the Phase 1b/2a clinical trial for ATYR1923[112]. - The company is investigating ATYR1923's potential as a treatment for COVID-19 patients with severe respiratory complications, with a Phase 2 clinical trial expected to provide data this year[86]. - The company has received a grant of approximately $750,000 to develop a high-throughput platform for bi-specific antibodies, funded by the Hong Kong government's Innovation and Technology Commission[89]. Agreements and Collaborations - The company has entered into a research collaboration with CSL Behring, which includes potential payments of up to $4.25 million per tRNA synthetase program, totaling $17.0 million if all four programs advance[98]. - The company has entered into a license agreement with Kyorin for the development and commercialization of ATYR1923 in Japan, with Kyorin funding all related activities[87]. - The company is eligible to receive an additional $167.0 million in aggregate upon achieving certain development, regulatory, and sales milestones under the Kyorin Agreement[87]. Operational Challenges - The company has experienced delays in clinical trial enrollment and operations due to the COVID-19 pandemic, impacting the timeline for top-line results[104]. Financial Risks and Exposures - The company has financed operations primarily through equity securities and convertible debt, with no revenues generated from product sales to date[115][126]. - The company is exposed to interest rate risk, with Term Loans bearing interest at variable rates, which could increase expenses by approximately $0.1 million annually with a 1% rate increase[133]. - The company incurs expenses in foreign currencies, including Pounds Sterling, Euro, Hong Kong dollar, and Australian dollar, which may affect its financial position due to exchange rate fluctuations[134]. - The company does not engage in foreign currency hedging transactions, leaving it exposed to foreign currency exchange risks[134]. - A 10% movement in the U.S. dollar to Pounds Sterling or Euro exchange rates would not have a material effect on the company's results of operations or financial condition[134]. - Inflation has increased costs related to labor, manufacturing, clinical trials, and research and development, but has not materially affected the company's financial results[135]. Future Projections - The company anticipates significant commercialization expenses if marketing approval is obtained for any product candidates, necessitating substantial additional funding[125].
aTyr Pharma, Inc.(ATYR) - 2020 Q1 - Quarterly Report