Athira Pharma(ATHA) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity, and cash flows, along with notes, reflecting significant losses and decreased cash and investments Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $19,888 | $48,438 | | Short-term investments | $9,935 | $2,837 | | Total current assets | $32,218 | $54,841 | | Total assets | $35,545 | $58,779 | | Total current liabilities | $2,981 | $13,135 | | Total liabilities | $3,559 | $13,938 | | Total stockholders' equity | $31,986 | $44,841 | - Total assets decreased from $58.8 million at December 31, 2024, to $35.5 million at June 30, 2025, primarily due to a significant reduction in cash and cash equivalents[13] - Total liabilities decreased from $13.9 million to $3.6 million, mainly driven by a decrease in accrued liabilities[13] Condensed Consolidated Statements of Operations and Comprehensive Loss Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $3,661 | $22,154 | $7,963 | $43,390 | | General and administrative | $3,630 | $5,874 | $8,864 | $12,325 | | Total operating expenses | $7,291 | $28,028 | $16,827 | $55,715 | | Net loss | $(6,966) | $(26,859) | $(16,109) | $(53,196) | | Net loss per share (basic and diluted) | $(0.18) | $(0.70) | $(0.41) | $(1.39) | - Net loss significantly decreased by 74% for the three months ended June 30, 2025, to $6.966 million from $26.859 million in the prior year, and by 70% for the six months ended June 30, 2025, to $16.109 million from $53.196 million[15] - Research and development expenses decreased by 83% for the three months and 82% for the six months, primarily due to pausing the fosgonimeton program and reduced personnel-related costs[15] Condensed Consolidated Statements of Stockholders' Equity Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | Balance as of Jan 1, 2025 | Balance as of June 30, 2025 | | :-------------------- | :------------------------ | :-------------------------- | | Common Stock Shares | 39,040,945 | 39,439,326 | | Additional Paid-In Capital | $450,982 | $454,240 |\ | Accumulated Deficit | $(406,146) | $(422,255) | | Total Stockholders' Equity | $44,841 | $31,986 | - Total stockholders' equity decreased from $44.841 million at January 1, 2025, to $31.986 million at June 30, 2025, primarily due to net losses[18] - Issuance of common stock upon vesting of restricted stock units and under the employee stock purchase plan contributed to an increase in common stock shares and additional paid-in capital[18] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- |\ | Net cash used in operating activities | $(21,664) | $(48,134) | | Net cash (used in) provided by investing activities | $(6,910) | $39,603 | | Net cash provided by financing activities | $24 | $148 | | Net decrease in cash, cash equivalents and restricted cash | $(28,550) | $(8,383) | | Cash, cash equivalents and restricted cash, end of period | $20,519 | $82,832 | - Net cash used in operating activities decreased significantly from $48.1 million in H1 2024 to $21.7 million in H1 2025, primarily due to a reduced net loss and changes in operating assets and liabilities[20][129][130] - Investing activities shifted from providing $39.6 million in H1 2024 to using $6.9 million in H1 2025, mainly due to changes in purchases and maturities of available-for-sale securities[20][131][132] Notes to Unaudited Condensed Consolidated Financial Statements 1. Description of Business Athira Pharma is a clinical-stage biopharmaceutical company focused on developing small molecules to restore neuronal health and slow neurodegeneration - Athira Pharma, Inc. is a clinical-stage biopharmaceutical company focused on developing small molecules to restore neuronal health and slow neurodegeneration[22] - The company has funded operations primarily through equity sales, raising $407.4 million net cash proceeds since inception through June 30, 2025[23][99] - As of June 30, 2025, cash, cash equivalents, and investments totaled $29.8 million, estimated to fund operations for at least the next 12 months[24][25][101] 2. Significant Accounting Policies This section details the company's significant accounting policies, including financial statement preparation, restricted cash, R&D costs, and recent accounting pronouncement adoption - Financial statements are prepared in conformity with U.S. GAAP and include operations of its wholly-owned Australian subsidiary[26] - Restricted cash of $631 thousand at June 30, 2025, and December 31, 2024, serves as collateral for corporate credit cards[30][31] - Research and development costs are expensed as incurred, including direct and indirect costs for drug discovery and development[35][38] - The company adopted ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, in fiscal year 2025, with no material impact expected[50] 3. Fair Value This section outlines the fair value measurements of financial assets, primarily consisting of Level 1 and Level 2 instruments Financial Assets Measured at Fair Value (in thousands) | Financial Asset (in thousands) | Level | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :----------------------------- | :---- | :----------------------- | :--------------------------- | | Money market fund | 1 | $31 | $30 | | U.S. government debt and agency securities | 2 | $2,584 | $10,299 | | Commercial paper | 2 | $11,692 | $19,393 | | Total cash equivalents | | $14,307 | $29,722 | | Short-term investments: Commercial paper | 2 | $500 | $1