ATAI Life Sciences(US:ATAI)2025-05-14 20:18PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents the unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, operations, and cash flows Condensed Consolidated Balance Sheets Total assets grew to $195.8 million, driven by a significant increase in cash from a recent equity offering Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $48,287 | $17,505 | | Total current assets | $115,978 | $80,125 | | Digital assets | $4,788 | $— | | Total assets | $195,783 | $159,387 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | $28,501 | $24,951 | | Total liabilities | $43,509 | $42,833 | | Total stockholders' equity | $152,274 | $116,554 | | Total liabilities and stockholders' equity | $195,783 | $159,387 | Condensed Consolidated Statements of Operations The company reported its first-ever revenue of $1.6 million and a stable net loss of $26.4 million for Q1 2025 Condensed Consolidated Statements of Operations (in thousands, except per share data) | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $1,555 | $— | | Research and development | $11,328 | $11,530 | | General and administrative | $10,597 | $12,555 | | Loss from operations | ($20,370) | ($24,085) | | Net loss attributable to ATAI Life Sciences N.V. stockholders | ($26,431) | ($26,713) | | Net loss per share — basic and diluted | ($0.15) | ($0.17) | Condensed Consolidated Statements of Cash Flows Financing activities provided $59.6 million, leading to a net cash increase of $30.8 million for the quarter Condensed Consolidated Statements of Cash Flows (in thousands) | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($17,841) | ($22,573) | | Net cash provided by (used in) investing activities | ($11,014) | $11,471 | | Net cash provided by financing activities | $59,605 | $— | | Net increase (decrease) in cash, cash equivalents and restricted cash | $30,782 | ($11,166) | Notes to Condensed Consolidated Financial Statements Details key events including the IGX acquisition, a $59.1M equity offering, and a corporate restructuring - The acquisition of IntelGenx Corp (IGX) in October 2024 is the source of the company's newly reported license and R&D revenue3839 - The company invested approximately $5.0 million in Bitcoin in March 2025 as part of a treasury reserve diversification strategy47169 - A public offering of common shares in February 2025 resulted in net proceeds of approximately $59.1 million199200 - A corporate restructuring in March 2025 eliminated approximately 25% of the global workforce, incurring $1.1 million in related costs247248 - Management expects existing cash and securities of $108.2 million will be sufficient to fund operations for at least the next 12 months3940 - On May 2, 2025, the company paid off its outstanding loan with Hercules Capital of approximately $21.8 million, terminating the loan agreement260384 Management's Discussion and Analysis of Financial Condition and Results of Operations Discusses pipeline advancements, financial results including first-ever revenue, and an extended cash runway to 2027 - The company is advancing its pipeline with key programs VLS-01 (DMT for TRD) and EMP-01 (R-MDMA for SAD) now in Phase 2 trials, with topline data expected in Q1 2026280 - Strategic investments are expected to yield near-term data, with topline results from Beckley Psytech's BPL-003 and Recognify's RL-007 Phase 2b studies anticipated in mid-2025280282 - The company's cash, cash equivalents, and short-term securities are expected to fund operations into 2027, bolstered by the ~$59.2 million net proceeds from the February 2025 equity offering360361 Comparison of Operating Results (in thousands) | | For the three months ended March 31, 2025 | For the three months ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $1,555 | $— | | Research and development | $11,328 | $11,530 | | General and administrative | $10,597 | $12,555 | | Net loss | ($26,465) | ($27,378) | Our Pipeline Outlines the clinical pipeline, highlighting key programs in Phase 2 and anticipated data readouts in 2025 Key Clinical Program Status & Milestones | Program | Indication | Status | Anticipated Milestone | | :--- | :--- | :--- | :--- | | VLS-01 (DMT) | TRD | Phase 2 | Topline data in Q1 2026 | | EMP-01 (R-MDMA) | SAD | Phase 2 | Topline data in Q1 2026 | | BPL-003 (Beckley) | TRD | Phase 2b | Topline data in mid-2025 | | RL-007 (Recognify) | CIAS | Phase 2b | Topline data in mid-2025 | Results of Operations Details Q1 2025 results, including $1.6M in revenue, reduced operating expenses, and a loss on investments - Revenue of $1.6 million in Q1 2025 was generated by the IGX subsidiary, with $1.4 million from R&D services and $0.2 million from licensing321322 - General and administrative expenses decreased by $2.0 million (16%) YoY, mainly due to a $1.3 million reduction in personnel costs and lower professional fees331 - Change in fair value of assets and liabilities resulted in a net loss of $5.5 million, driven by a $6.3 million loss on the COMPASS investment338 Research and Development Expenses by Category (in thousands) | Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Direct Program Costs | $6,287 | $5,782 | $505 | | Unallocated R&D Expenses | $5,041 | $5,743 | ($702) | | Total R&D Expenses | $11,328 | $11,530 | ($202) | Liquidity and Capital Resources The company's liquidity was bolstered by a $59.2M offering, ensuring a cash runway into 2027 - The company raised net proceeds of approximately $59.2 million from a public offering of common shares in February 2025358360 - Based on the current operating plan, the company estimates its existing capital will be sufficient to fund operations into 2027361 - On May 2, 2025, the company voluntarily prepaid and terminated its Hercules Loan Agreement, paying off the outstanding amount of approximately $21.8 million384 Liquidity Position as of March 31, 2025 (in millions) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $48.3 | | Restricted cash | $10.0 | | Short-term securities | $49.9 | | Total | $108.2 | Quantitative and Qualitative Disclosures About Market Risk Primary market risks from interest rates and foreign currency are not expected to have a material impact - The company's main market risks are interest rate sensitivity on its cash and securities portfolio and foreign currency exchange risk from its international operations390 - A hypothetical 100 basis point change in interest rates or a 10% change in foreign exchange rates would not have a material effect on the company's financial position391395 Controls and Procedures Management concluded that disclosure controls and procedures were effective with no material changes in the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025398 - No material changes in internal control over financial reporting occurred during the first quarter of 2025399 PART II. OTHER INFORMATION Legal Proceedings Ongoing legal proceedings are not expected to have a material adverse effect on the company's financials - The company is party to various claims and legal proceedings arising in the ordinary course of business, but does not anticipate a material adverse effect from them400 Risk Factors No material changes have been made to the risk factors disclosed in the company's latest Form 10-K - There have been no material changes to the risk factors described in the company's Form 10-K for the year ended December 31, 2024402 Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities during the period - The company did not conduct any unregistered sales of equity securities during the period404 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025406 Exhibits Lists all exhibits filed with the report, including officer certifications and XBRL data files - Key exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents407