athx-20210630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number: 001-33876

Athersys, Inc.

(Exact name of registrant as specified in its charter)


Delaware						20-4864095
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

3201 Carnegie Avenue,

Cleveland,

Ohio

44115-2634

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (216) 431-9900

Former name, former address and former fiscal year, if changed since last report: Not Applicable

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.001 per share	ATHX	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements	4
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	20
ITEM 4.	Controls and Procedures	20
PART II. OTHER INFORMATION
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
ITEM 5.	Other Information	20
ITEM 6.	Exhibits	22
SIGNATURES


	June 30, 2021		December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	56,654	$	51,546
Accounts receivable from Healios	89		89

Prepaid expenses and other	2,696		2,926


Total current assets	59,439		54,561
Operating right-of-use assets, net	9,447		648
Property and equipment, net	2,946		3,155
Deposits and other	1,468		1,350
Total assets	$	73,300	$	59,714
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	18,764	$	11,337
Accounts payable to Healios	1,205		1,705
Operating lease liabilities, current	942		480
Accrued compensation and related benefits	2,768		1,779
Accrued clinical trial related costs	3,341		6,870
Accrued expenses and other	1,218		718


Deferred revenue - Healios	65		65

Total current liabilities	28,303		22,954
Operating lease liabilities, non-current	8,750		197
Advance from Healios	5,201		5,201

Stockholders’ equity:
Preferred stock, at stated value; 10,000,000 shares authorized, and no shares issued and outstanding at June 30, 2021 and December 31, 2020	—		—
Common stock, $0.001 par value; 600,000,000 shares authorized, and 226,255,093 issued and outstanding at June 30, 2021 and 300,000,000 shares authorized, and 201,973,582 shares issued and outstanding at December 31, 2020	226		202
Additional paid-in capital	576,276		527,549
Accumulated deficit	(545,456)		(496,389)
Total stockholders’ equity	31,046		31,362
Total liabilities and stockholders’ equity	$	73,300	$	59,714


	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Revenues
Contract revenue from Healios	$	—	$	77	$	—	$	77
Grant revenue	—		7		—		7
Total revenues	—		84		—		84
Costs and expenses
Research and development	17,691		13,767		35,199		25,862
General and administrative	4,158		4,432		12,995		7,906
Depreciation	723		222		967		412
Total costs and expenses	22,572		18,421		49,161		34,180

Loss from operations	(22,572)		(18,337)		(49,161)		(34,096)

Other (expense) income, net	(27)		(35)		94		80
Net loss and comprehensive loss	$	(22,599)	$	(18,372)	$	(49,067)	$	(34,016)
Net loss per share, basic and diluted	$	(0.10)	$	(0.10)	$	(0.23)	$	(0.19)
Weighted average shares outstanding, basic and diluted	222,436		191,317		215,353		177,016


	Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Total Stockholders’ Equity
	Number of Shares	Stated Value		Number of Shares	Par Value
Balance at December 31, 2020	—	$	—	201,973,582	$	202	$	527,549	$	(496,389)	$	31,362
Stock-based compensation	—	—		—	—		3,903		—		3,903
Issuance of common stock	—	—		15,200,000	15		30,480		—		30,495
Issuance of common stock under equity compensation plan	—	—		437,925	1		(612)		—		(611)
Net comprehensive loss	—	—		—	—		—		(26,468)		(26,468)
Balance at March 31, 2021	—	—		217,611,507	218		561,320		(522,857)		38,681
Stock-based compensation	—	—		—	—		1,788		—		1,788
Issuance of common stock, net of issuance cost	—	—		8,500,000	8		13,284		—		13,292
Issuance of common stock under equity compensation plan	—	—		143,586	—		(116)		—		(116)
Net comprehensive loss	—	—		—	—		—		(22,599)		(22,599)
Balance at June 30, 2021	—	$	—	226,255,093	$	226	$	576,276	$	(545,456)	$	31,046


	Preferred Stock			Common Stock			Stock Subscription Receivable		Additional Paid-in Capital		Accumulated Deficit		Total Stockholders’ Equity
	Number of Shares	Stated Value		Number of Shares	Par Value
Balance at December 31, 2019	—	$	—	159,791,585	$	160	$	—	$	440,735	$	(417,624)	$	23,271
Stock-based compensation	—	—		—	—		—		1,280		—		1,280
Stock subscription receivable from Healios warrant exercise	—	—		4,000,000	4		(7,040)		7,036		—		—
Issuance of common stock	—	—		6,825,000	7		—		10,243		—		10,250
Issuance of common stock under equity compensation plan	—	—		153,504	—		—		(149)		—		(149)
Net comprehensive loss	—	—		—	—		—		—		(15,644)		(15,644)
Balance at March 31, 2020	—	—		170,770,089	171		(7,040)		459,145		(433,268)		19,008
Stock-based compensation	—	—		—	—		—		2,579		—		2,579
Stock subscription receivable from Healios warrant exercise	—	—		—	—		7,040		—		—		7,040
Issuance of common stock, net of issuance cost	—	—		25,587,500	26		—		53,665		—		53,691
Issuance of common stock to Healios	—	—		310,526	—		—		534		—		534
Issuance of common stock under equity compensation plan	—	—		340,447	—		—		(302)		—		(302)
Net comprehensive income	—	—		—	—		—		—		(18,372)		(18,372)
Balance at June 30, 2020	—	$	—	197,008,562	$	197	$	—	$	515,621	$	(451,640)	$	64,178


	For the periods ended
Property and equipment consists of (in thousands):	June 30, 2021		December 31, 2020
Laboratory equipment	$	8,998	$	9,225
Office equipment and leasehold improvements	3,376		3,336
Process development equipment not yet in service	646		294
	13,020		12,855
Accumulated depreciation	(10,074)		(9,700)
	$	2,946	$	3,155


						ATHERSYS, INC.

Date: August 9, 2021						/s/ William Lehmann
						William Lehmann
						Interim Chief Executive Officer
						(principal executive officer authorized to sign on behalf of the registrant)


Date: August 9, 2021						/s/ Ivor Macleod
						Ivor Macleod
						Chief Financial Officer
						(principal financial officer authorized to sign on behalf of the registrant)

SEC Form 10-Q filed by Athersys, Inc.