aTyr Pharma(LIFE) - 2023 Q3 - Quarterly Report

Financial Position - As of September 30, 2023, the company reported an accumulated deficit of $453.3 million and expects to continue incurring net losses for the foreseeable future[78]. - The company had cash, cash equivalents, restricted cash, and available-for-sale investments totaling $105.6 million as of September 30, 2023[78]. - As of September 30, 2023, financing lease liabilities totaled $1.9 million, with $2.7 million in cash collateral included in restricted cash[92]. Revenue and Income - The company has not generated any revenues from product sales to date and anticipates increased expenses related to ongoing clinical development and commercialization efforts[87]. - License and collaboration agreement revenues for Q3 2023 were $0.4 million, unchanged from Q3 2022, consisting of drug product material sold to Kyorin for the Japan portion of the EFZO-FIT study[102]. - For the nine months ended September 30, 2023, license and collaboration agreement revenues remained at $0.4 million, consistent with the same period in 2022[105]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2023, was $22.2 million, a decrease from $31.5 million in 2022, primarily due to a $10.0 million milestone payment received from Kyorin[84]. - Net cash used in investing activities for the nine months ended September 30, 2023, was $(37.9) million, compared to $45.2 million in 2022, influenced by timing differences in investment transactions[85]. - Net cash provided by financing activities for the nine months ended September 30, 2023, was $60.2 million, significantly higher than $4.5 million in 2022, mainly from a $48.1 million follow-on public offering[86]. - Total cash and cash equivalents increased by $92,000 as of September 30, 2023, compared to a $18.3 million increase in 2022[84]. - Other income (expense), net rose to $1.2 million in Q3 2023 from $0.2 million in Q3 2022, attributed to higher cash balances and increased interest rates[104]. - Other income (expense), net for the nine months ended September 30, 2023, increased to $3.3 million from $0.6 million in 2022, reflecting higher cash balances and interest rates[106]. Clinical Development - The company received a $10.0 million milestone payment from Kyorin Pharmaceutical in February 2023, following the dosing of the first patient in Japan for the EFZO-FIT study[83]. - The EFZO-FIT study is a 52-week clinical trial enrolling 264 subjects with pulmonary sarcoidosis, with the primary endpoint being steroid reduction[70]. - The company initiated the EFZO-CONNECT study in October 2023, targeting patients with systemic sclerosis-associated interstitial lung disease, with a total of 25 patients to be enrolled[71]. - Research and development expenses are expected to increase as the company advances clinical trials for efzofitimod and other potential therapies[96]. - Research and development expenses increased to $10.3 million in Q3 2023 from $9.9 million in Q3 2022, primarily due to a $1.1 million rise in manufacturing costs and a $0.6 million increase in clinical trial costs[103]. - Research and development expenses for the nine months ended September 30, 2023, were $29.5 million, up from $27.9 million in 2022, driven by a $5.0 million increase in clinical trial costs[106]. General and Administrative Expenses - General and administrative expenses decreased to $2.6 million in Q3 2023 from $3.6 million in Q3 2022, mainly due to a $0.7 million reduction in personnel-related expenses[103]. - General and administrative expenses for the nine months ended September 30, 2023, decreased to $9.8 million from $10.6 million in 2022, primarily due to a $0.8 million reduction in personnel-related expenses[106]. Strategic Focus - The company is actively monitoring the impact of geopolitical and macroeconomic conditions on its operations, including inflation and rising interest rates[74]. - The company is focused on advancing its discovery pipeline for tRNA synthetase-derived therapies, leveraging collaborations and internal research efforts[73]. - The company expects to incur significant commercialization expenses if marketing approval is obtained for any product candidates, necessitating substantial additional funding[89]. Capital Expenditures - The company has incurred $5.6 million in tenant improvement costs for its new corporate headquarters, with an allowance of up to $5.5 million for such improvements[91].