athx-20220630

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, 2022


☐			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 1A.	Risk Factors	21
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
ITEM 6.	Exhibits	24
SIGNATURES


	June 30, 2022		December 31, 2021
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	13,378	$	37,407
Accounts receivable from Healios	3,594		1,414
Unbilled accounts receivable from Healios	—		3,000
Prepaid expenses and other	4,404		4,206


Total current assets	21,376		46,027
Operating right-of-use assets, net	8,448		8,960
Property and equipment, net	3,868		3,692
Deposits and other	1,512		1,505
Total assets	$	35,204	$	60,184
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	23,784	$	15,781
Accounts payable to Healios	1,119		1,119
Operating lease liabilities, current	979		1,011
Accrued compensation and related benefits	2,578		4,133
Accrued clinical trial related costs	3,830		3,773
Accrued expenses and other	931		704


Deferred revenue - Healios	—		3,340

Total current liabilities	33,221		29,861
Operating lease liabilities, non-current	8,284		8,755
Advance from Healios	5,199		5,199
Other long-term liabilities	238		—
Stockholders’ equity:
Preferred stock, at stated value; 10,000,000 shares authorized, and no shares issued and outstanding at June 30, 2022 and December 31, 2021	—		—
Common stock, $0.001 par value; 600,000,000 shares authorized with 275,109,746 and 242,844,180 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	275		243
Additional paid-in capital	617,195		599,470
Accumulated deficit	(629,208)		(583,344)
Total stockholders’ equity (deficit)	(11,738)		16,369
Total liabilities and stockholders’ equity	$	35,204	$	60,184


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Revenues
Contract revenue from Healios	$	2,316	$	—	$	5,228	$	—
Total revenues	2,316		—		5,228		—
Costs and expenses
Research and development	20,794		17,691		41,738		35,199
General and administrative	5,162		4,158		9,261		12,995
Depreciation	618		723		865		967
Total costs and expenses	26,574		22,572		51,864		49,161

Loss from operations	(24,258)		(22,572)		(46,636)		(49,161)

Other income (expense), net	610		(27)		772		94
Net loss and comprehensive loss	$	(23,648)	$	(22,599)	$	(45,864)	$	(49,067)
Net loss per share, basic and diluted	$	(0.09)	$	(0.10)	$	(0.18)	$	(0.23)
Weighted average shares outstanding, basic and diluted	259,570		222,436		251,926		215,353


	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, 2021	—	$	—	242,844,180	$	243	$	599,470	$	(583,344)	$	16,369
Stock-based compensation	—	—		—	—		1,410		—		1,410
Issuance of common stock	—	—		6,800,000	7		4,795		—		4,802
Issuance of common stock under equity compensation plan	—	—		148,611	—		(58)		—		(58)
Net and comprehensive loss	—	—		—	—		—		(22,216)		(22,216)
Balance at March 31, 2022	—	—		249,792,791	250		605,617		(605,560)		307
Stock-based compensation	—	—		—	—		1,945		—		1,945
Issuance of common stock	—	—		25,089,000	25		9,673		—		9,698
Issuance of common stock under equity compensation plan	—	—		227,955	—		(40)		—		$	(40)
Net and comprehensive loss	—	—		—	—		$	—	(23,648)		$	(23,648)
Balance at June 30, 2022	—	$	—	275,109,746	$	275	$	617,195	$	(629,208)	$	(11,738)


	For the periods ended
Property and equipment consists of (in thousands):	June 30, 2022		December 31, 2021
Laboratory equipment	$	9,303	$	9,352
Office equipment and leasehold improvements	4,210		4,000
Equipment and leasehold improvements not yet in service	1,310		458
	14,823		13,810
Accumulated depreciation and amortization	(10,955)		(10,118)
	$	3,868	$	3,692


	Three months ended June 30, 2022				Three months ended June 30, 2021
	Point in Time		Over Time		Point in Time		Over Time
Contract Revenue from Healios


Service revenue	$	—	$	2,316	$	—	$	—

Total disaggregated revenues	$	—	$	2,316	$	—	$	—


	Six months ended June 30, 2022				Six months ended June 30, 2021
	Point in Time		Over Time		Point in Time		Over Time
Contract Revenue from Healios
Service revenue	$	—	$	5,228	$	—	$	—
Total disaggregated revenues	$	—	$	5,228	$	—	$	—


	Accrual at		2022		Cash		Non-Cash		Accrual at
	March 31, 2022		Charges		(payments)		Transactions		June 30, 2022
Employee severance and benefits	$	—	$	2,538	$	(290)	$	—	$	2,248
Legal and professional fees	—		162		—		—		162
Other	—		15		—		—		15
	$	—	$	2,715	$	(290)	$	—	$	2,425


Date: August 11, 2022						/s/ Daniel Camardo
						Daniel Camardo
						Chief Executive Officer and Duly Authorized Officer


						ATHERSYS, INC.

SEC Form 10-Q filed by Athersys Inc.