ATAI Life Sciences(US:ATAI)2025-08-14 20:14PART I. FINANCIAL INFORMATION Financial Statements This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, highlighting a net loss of $27.7 million for Q2 2025 and total assets of $189.2 million Condensed Consolidated Balance Sheets | Financial Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 61,940 | 17,505 | | Total current assets | 102,681 | 80,125 | | Total assets | 189,204 | 159,387 | | Liabilities & Equity | | | | Total current liabilities | 25,547 | 24,951 | | Total liabilities | 45,279 | 42,833 | | Total stockholders' equity | 143,925 | 116,554 | Condensed Consolidated Statements of Operations | Metric ($ thousands, except per share) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | 719 | 273 | 2,274 | 273 | | Research and development | 11,092 | 12,605 | 22,420 | 24,136 | | General and administrative | 14,900 | 13,397 | 25,497 | 25,952 | | Loss from operations | (25,273) | (25,729) | (45,643) | (49,815) | | Net loss attributable to ATAI | (27,729) | (57,312) | (54,160) | (84,025) | | Net loss per share — basic and diluted | (0.14) | (0.36) | (0.29) | (0.53) | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity ($ thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (31,935) | (38,801) | | Net cash provided by (used in) investing activities | (1,230) | 27,772 | | Net cash provided by financing activities | 67,362 | 326 | Notes to Condensed Consolidated Financial Statements - In June 2025, the company entered into a share purchase agreement to acquire the entire issued share capital of Beckley Psytech Limited not already owned. The transaction is expected to close in Q4 202537 - As of June 30, 2025, the company had cash and cash equivalents of $61.9 million and short-term securities of $34.0 million, which are expected to be sufficient to fund operations for at least the next 12 months4041 - In February 2025, the company raised net proceeds of approximately $59.1 million from a public offering of common shares. In June 2025, it raised aggregate gross proceeds of approximately $29.9 million through a PIPE financing of common shares and pre-funded warrants215216 - In May 2025, the company voluntarily prepaid and terminated its Hercules Loan Agreement, paying off the outstanding $21.8 million and recognizing a $1.3 million loss on extinguishment of debt209 - The company invested approximately $5.0 million in Bitcoin in February 2025 as part of its treasury reserve diversification strategy186 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition and operations, covering business overview, pipeline progress, strategic initiatives, and comparative financial results for Q2 and H1 2025 versus 2024 Business Overview - atai is a clinical-stage biopharmaceutical company focused on developing effective mental health treatments, with a pipeline of psychedelic and non-psychedelic product candidates293295 - Key strategic initiatives include the pending acquisition of Beckley Psytech, expected to close in Q4 2025, and a planned corporate redomiciliation from the Netherlands to Delaware302303 - The company is prioritizing clinical-phase programs with near-term data readouts, including BPL-003 for TRD, VLS-01 for TRD, and EMP-01 for Social Anxiety Disorder306309 Results of Operations | Metric ($ thousands) | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 719 | 273 | 163% | | Research and development | 11,092 | 12,605 | (12%) | | General and administrative | 14,900 | 13,397 | 11% | | Loss from operations | (25,273) | (25,729) | (2%) | | Net loss | (27,746) | (57,369) | (52%) | | Metric ($ thousands) | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 2,274 | 273 | 733% | | Research and development | 22,420 | 24,136 | (7%) | | General and administrative | 25,497 | 25,952 | (2%) | | Loss from operations | (45,643) | (49,815) | (8%) | | Net loss | (54,211) | (84,747) | (36%) | - R&D expenses for Q2 2025 decreased by $1.5 million year-over-year, primarily due to a $2.6 million reduction in personnel expenses, partially offset by a $1.6 million increase in clinical development costs for the EMP-01 program358360 - G&A expenses for Q2 2025 increased by $1.5 million year-over-year, driven by a $4.3 million increase in legal and professional fees related to the Beckley Psytech transaction and redomiciliation365 Liquidity and Capital Resources - As of June 30, 2025, the company had cash, cash equivalents, and short-term securities totaling $95.9 million434 - Management believes the current cash position is sufficient to fund operations into the second half of 2027434 - Net cash used in operating activities for the first six months of 2025 was $31.9 million, a decrease from $38.8 million in the same period of 2024440441442 - Net cash provided by financing activities was $67.3 million for the first six months of 2025, primarily from equity offerings, compared to $0.3 million in the prior-year period440445 Quantitative and Qualitative Disclosures About Market Risk The company's market risks include interest rate sensitivity and foreign currency exchange risk, neither of which is expected to materially impact financial statements - The company's main market risks are interest rate sensitivity on its cash and investments, and foreign currency exchange risk from its international operations461 - Due to the nature of its cash and investment portfolio, a hypothetical 100 basis point change in interest rates is not expected to materially affect their fair value462 - A hypothetical 10% change in the U.S. dollar's value relative to other currencies would not have had a material effect on the consolidated financial statements for the periods presented466 Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025468 - There were no material changes in the company's internal control over financial reporting during the fiscal quarter ended June 30, 2025469 PART II. OTHER INFORMATION Legal Proceedings The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial condition - The company is not currently involved in any legal proceedings that are expected to have a material adverse effect on its business or financial condition470 Risk Factors New risk factors include those related to the Beckley Psytech acquisition and corporate redomiciliation, such as transaction completion and integration challenges - New risks have been introduced related to the strategic combination with Beckley Psytech, including potential failure to complete the deal, reduced ownership for existing atai shareholders, and challenges in realizing anticipated benefits472473478 - The company highlights risks associated with its planned redomiciliation to Delaware, such as the possibility that the expected benefits may not be realized or that the process could be delayed or abandoned481482 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - The company reported no unregistered sales of equity securities for the period485 Other Information Disclosures include a $10.0 million unsecured promissory note issued to Beckley Psytech and confirmation of no Rule 10b5-1 trading plan changes - On August 13, 2025, the company issued a $10.0 million unsecured promissory note to Beckley Psytech to fund product development milestones, bearing interest at 12% per annum487488 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the six months ended June 30, 2025491 Exhibits This section lists all exhibits filed with the Form 10-Q, including agreements for the Beckley Psytech transaction and PIPE financings - Key exhibits filed include the Share Purchase Agreement with Beckley Psytech, various subscription and voting agreements, and the Senior Promissory Note issued to Beckley Psytech492493