10-Q
--12-3100000Q1http://fasb.org/us-gaap/2022#OtherAssetsNoncurrent00-0000000http://fasb.org/us-gaap/2022#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesCurrent0001840904false0001840904atai:TwoThousandAndEighteenConvertiblePromissoryNotesMember2023-01-012023-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:CommonStockMemberus-gaap:SeriesAPreferredStockMember2023-01-012023-03-310001840904us-gaap:NoncontrollingInterestMember2022-03-310001840904atai:ShareBasedPaymentArrangementTrancheOneBMemberatai:HerculesLoanAgreementMember2022-08-310001840904atai:AdditionalTermLoanReceivableMemberatai:IntelgenxCorpMemberatai:FirstTrancheMemberatai:AmendedAndRestatedLoanAgreementMember2021-09-140001840904us-gaap:GeneralAndAdministrativeExpenseMemberatai:OptionsAndRestrictedStockAwardsMemberatai:AtaiHsopMember2022-01-012022-03-310001840904atai:MeasurementInputDiscountRateForRoyaltiesOnMilestonesMembersrt:MinimumMemberatai:DiscountedCashFlowWithSbmMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2023-03-310001840904atai:MrAngermayerMemberatai:ConsultingAgreementMember2022-01-012022-03-310001840904us-gaap:ValuationTechniqueDiscountedCashFlowMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberus-gaap:MeasurementInputDiscountRateMember2023-03-310001840904us-gaap:SeriesAPreferredStockMemberatai:DemerxNbOptionsMember2021-09-300001840904atai:MeasurementInputDiscountRateForRoyaltiesOnMilestonesMembersrt:MaximumMemberatai:DiscountedCashFlowWithSbmMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2022-12-310001840904atai:HerculesLoanAgreementMemberatai:ShareBasedPaymentArrangementTrancheOneCMember2022-08-310001840904atai:GabaOptionsMember2023-03-310001840904atai:HerculesLoanAgreementMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2022-08-310001840904atai:PerceptionMember2022-12-310001840904atai:NeuronasalInc.Member2022-01-012022-12-310001840904us-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:InvyxisEslaMember2022-01-310001840904us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMemberatai:InitialWarrantsMemberatai:NeuronasalIncMember2023-03-310001840904atai:ContingentConsiderationLabilityRelatedPartiesMember2021-12-310001840904us-gaap:RestrictedStockUnitsRSUMember2023-03-310001840904atai:TwentyTwentyIncentivePlanMemberus-gaap:EmployeeStockOptionMember2023-03-310001840904us-gaap:AdditionalPaidInCapitalMember2021-12-310001840904us-gaap:RestrictedStockMember2023-01-012023-03-310001840904atai:ChibaLicenseMember2022-01-012022-03-310001840904atai:InnarisbioMember2022-12-310001840904atai:KuresMember2022-03-310001840904atai:OptionsAndRestrictedStockAwardsMemberus-gaap:GeneralAndAdministrativeExpenseMemberatai:OtherSubsidiariesEquityPlanMember2022-01-012022-03-310001840904atai:OtherSubsidiariesEquityPlanMember2022-01-012022-03-310001840904atai:ApeironMemberus-gaap:CommonStockMember2023-01-012023-03-3100018409042022-01-012022-09-300001840904us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:DalriadaLicenseAgreementMember2021-01-012021-12-310001840904us-gaap:ParentMember2023-03-310001840904atai:TryptagenixIncMember2023-03-3100018409042021-12-310001840904atai:DemerxPromissoryNoteAgreementMemberatai:DemerxMember2020-01-030001840904us-gaap:CommercialPaperMember2022-12-310001840904us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:IntelgenxCorpMember2021-01-012021-12-310001840904us-gaap:RetainedEarningsMember2023-01-012023-03-310001840904atai:RecognifyLifeSciencesInc.Member2022-01-012022-12-310001840904us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904us-gaap:CommonStockMemberatai:IntelgenxSpaMember2021-12-310001840904atai:GabaTherapeuticsIncMember2020-12-310001840904atai:RecognifyLifeSciencesInc.Member2023-01-012023-03-310001840904us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:NeuronasalInc.Member2022-11-012022-11-300001840904us-gaap:WarrantMemberatai:UnitMemberatai:IntelgenxSpaMember2021-12-310001840904atai:AccelerateLicenseAgreementMember2023-01-012023-03-310001840904us-gaap:MeasurementInputSharePriceMemberus-gaap:FairValueInputsLevel3Memberatai:IntelgenxMemberatai:AdditionalWarrantsMember2022-12-310001840904atai:HerculesLoanAgreementMember2022-08-310001840904atai:StrategicDevelopmentAgreementMemberatai:IntelgenxSpaMember2022-09-300001840904us-gaap:AdditionalPaidInCapitalMember2023-03-310001840904atai:CompassPathwaysPlcMember2023-03-310001840904srt:MinimumMemberus-gaap:CommonStockMemberatai:SecuritiesPurchaseAgreementMemberatai:IntelgenxSpaMember2021-05-140001840904srt:MaximumMemberatai:DiscountedCashFlowWithSbmMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:MeasurementInputDiscountRateForRoyaltiesMember2023-03-310001840904atai:OptionsAndRestrictedStockAwardsMemberatai:AtaiHsopMember2022-01-012022-03-310001840904atai:DemerxIbMember2023-03-310001840904atai:CompassPathwaysPlcTwoMember2023-01-012023-03-310001840904atai:RoyaltyLiabilitiesMember2023-03-310001840904atai:PsyberMember2023-03-310001840904us-gaap:WarrantMemberatai:IntelgenxMember2021-05-140001840904us-gaap:CommonStockMemberatai:IntelgenxMember2021-05-140001840904atai:HsopSharesMemberatai:HsopPlanMember2023-03-310001840904atai:EntheogenixBiosciencesInc.Member2022-01-012022-12-310001840904atai:InnoplexusAgMemberatai:InnoplexusSpaMember2021-02-012021-02-280001840904us-gaap:FairValueInputsLevel3Memberatai:IntelgenxMemberus-gaap:MeasurementInputPriceVolatilityMemberatai:AdditionalWarrantsMember2023-03-310001840904us-gaap:CommonStockMember2022-12-310001840904atai:NeuronasalInc.Memberus-gaap:CommonStockMember2020-10-310001840904atai:MrAngermayerMemberatai:ConsultingAgreementMember2023-01-012023-03-310001840904us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904us-gaap:AdditionalPaidInCapitalMember2022-12-310001840904us-gaap:ShareBasedCompensationAwardTrancheTwoMemberatai:HerculesLoanAgreementMember2022-08-310001840904atai:InnoplexusAgMember2023-01-012023-03-310001840904atai:ValueOfUnderlyingMemberus-gaap:FairValueInputsLevel3Memberatai:InitialWarrantsMemberatai:NeuronasalIncMember2022-12-310001840904atai:DalriadaLicenseAgreementMemberus-gaap:ServiceOtherMember2023-01-012023-03-310001840904us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904us-gaap:RestrictedStockMember2023-01-012023-03-310001840904atai:CompassPathwaysPlcTwoMember2022-12-310001840904atai:OptionsAndRestrictedStockAwardsMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310001840904us-gaap:CommonStockMemberatai:TwoThousandAndEighteenConvertiblePromissoryNotesMember2023-01-012023-03-310001840904atai:TwentyTwentyIncentivePlanMemberatai:OneYearAnniversaryMember2023-03-310001840904atai:OptionsAndRestrictedStockAwardsMemberus-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-03-310001840904us-gaap:ReceivablesFromStockholderMember2023-01-012023-03-310001840904us-gaap:MoneyMarketFundsMember2022-12-310001840904us-gaap:EmployeeSeveranceMember2023-01-012023-03-310001840904us-gaap:NoncontrollingInterestMember2022-12-310001840904atai:ColumbiaStockPurchaseAndLicenseAgreementMember2023-01-012023-03-310001840904atai:TwoThousandAndTwentyIncentivePlanMemberatai:ServiceAndPerformanceBasedOptionsMember2023-03-310001840904atai:GabaTherapeuticsIncMember2022-01-012022-03-310001840904atai:DemerxPromissoryNoteAgreementMember2020-01-032020-01-030001840904atai:HerculesLoanAgreementMemberatai:PrepaymentOccursAfterTheSecondAnniversaryMember2022-08-012022-08-310001840904atai:AdditionalSharesMembersrt:MinimumMemberatai:SecuritiesPurchaseAgreementMemberatai:IntelgenxSpaMember2021-05-140001840904us-gaap:RestrictedStockMember2022-01-012022-03-310001840904us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:PerceptionNeuroscienceHoldingsInc.Member2023-01-012023-03-310001840904atai:TwoThousandAndTwentyIncentivePlanMemberatai:ServiceAndPerformanceBasedOptionsMember2022-01-012022-12-310001840904us-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:AccelerateLicenseAgreementMember2022-01-012022-03-3100018409042022-01-012022-12-310001840904atai:AtaiLifeSciencesN.v.Member2020-10-310001840904atai:PromissoryNoteAgreementMemberatai:DemerxMember2020-01-030001840904us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:AtaiEsopMemberatai:OptionsAndRestrictedStockAwardsMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-03-310001840904atai:ConvertibleNotesIssuedInOctober2020Member2023-03-310001840904atai:AtaiFormationMemberatai:GalaxyNycBasedMultiStrategyInvestmentFirmMember2022-12-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:GabaTherapeuticsIncMember2023-01-012023-03-310001840904atai:InnoplexusAgMember2022-12-310001840904us-gaap:ReceivablesFromStockholderMember2022-12-310001840904atai:AdditionalTermLoanReceivableMemberatai:IntelgenxCorpMember2021-03-080001840904atai:HerculesLoanAgreementMember2022-08-012022-08-310001840904atai:OptionsAndRestrictedStockAwardsMember2022-01-012022-03-3100018409042022-01-012022-03-310001840904atai:DemerxPromissoryNoteAgreementMember2023-03-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:SpecifiedPerformancebasedVestingMember2023-03-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:TwoThousandAndTwentyIncentivePlanMember2023-01-012023-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:CommonStockMemberus-gaap:SeriesAPreferredStockMember2023-03-310001840904atai:IntelgenxCorpMemberatai:AmendedAndRestatedLoanAgreementMemberatai:TermLoanReceivableMember2021-09-140001840904atai:ColumbiaStockPurchaseAndLicenseAgreementMember2022-01-012022-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2021-05-312021-05-310001840904us-gaap:GeneralAndAdministrativeExpenseMemberatai:OptionsAndRestrictedStockAwardsMember2022-01-012022-03-310001840904atai:DemerxIbInc.Member2022-01-012022-12-310001840904us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:InnoplexusAgMemberatai:InnoplexusSpaMember2023-01-012023-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:CommonStockMemberus-gaap:SeriesAPreferredStockMember2021-05-152021-05-150001840904us-gaap:ParentMember2022-01-012022-03-310001840904us-gaap:SeriesAPreferredStockMemberatai:DemerxNbOptionsMember2019-12-310001840904us-gaap:PreferredStockMemberatai:NeuronasalInc.Member2021-05-310001840904atai:PsyberInc.Member2022-01-012022-12-310001840904us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember2023-03-310001840904atai:TwentyTwentyIncentivePlanMember2022-01-012022-03-310001840904srt:MaximumMemberatai:ProbabilityOfSuccessRateMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:DiscountedCashFlowWithSbmMember2023-03-310001840904us-gaap:RetainedEarningsMember2022-12-310001840904us-gaap:CommonStockMemberatai:IntelgenxSpaMember2022-09-300001840904us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:TwentyTwentyIncentivePlanMember2023-01-012023-03-310001840904atai:IntelgenxCorpMemberatai:MarchTermLoanReceivableMember2021-03-0800018409042023-01-012023-03-310001840904us-gaap:CommonClassAMember2021-06-222021-06-220001840904us-gaap:NoncontrollingInterestMember2023-03-310001840904us-gaap:StockCompensationPlanMember2022-01-012022-03-310001840904atai:KuresInc.Member2023-01-012023-03-310001840904atai:GabaTherapeuticsIncMember2022-12-310001840904us-gaap:PreferredStockMemberatai:NeuronasalInc.Member2019-12-310001840904us-gaap:CommonStockMember2022-03-310001840904atai:TwoThousandAndTwentyOneIncentiveAwardPlanMember2023-03-310001840904us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:OptionsAndRestrictedStockAwardsMember2023-01-012023-03-310001840904us-gaap:MeasurementInputSharePriceMemberus-gaap:FairValueInputsLevel3Memberatai:IntelgenxMemberatai:AdditionalWarrantsMember2023-03-310001840904atai:IntelgenxCorpMemberatai:UnitMember2021-05-140001840904atai:TryptagenixIncMember2023-01-012023-03-310001840904atai:TwoThousandEighteenConvertibleNotesMember2022-12-310001840904atai:InnarisbioInc.Member2022-01-012022-12-310001840904atai:OptionsAndRestrictedStockAwardsMemberatai:OtherSubsidiariesEquityPlanMember2023-01-012023-03-310001840904atai:MeasurementInputDiscountRateForRoyaltiesOnMilestonesMembersrt:MaximumMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:DiscountedCashFlowWithSbmMember2023-03-310001840904atai:MeasurementInputDiscountRateForRoyaltiesOnMilestonesMembersrt:MinimumMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:DiscountedCashFlowWithSbmMember2022-12-310001840904atai:IntelgenxCorpMemberatai:TermLoanReceivableMember2021-09-140001840904us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-03-310001840904us-gaap:RetainedEarningsMember2022-01-012022-03-310001840904us-gaap:ParentMember2022-12-310001840904srt:MinimumMemberatai:ProbabilityOfSuccessRateMemberatai:DiscountedCashFlowWithSbmMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2023-03-310001840904atai:GabaOptionsMember2022-12-310001840904atai:PsyberMember2022-12-310001840904atai:AllerganLicenseAgreementMember2023-01-012023-03-310001840904atai:HsopOptionsToPurchaseCommonStockMember2023-01-012023-03-310001840904atai:GabaTherapeuticsIncMemberatai:OmnibusAmendmentAgreementMember2020-11-012020-11-300001840904us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001840904atai:HsopSharesMemberatai:HsopPlanMember2023-01-012023-03-310001840904atai:EntheogenixMember2023-03-310001840904us-gaap:CommonStockMember2021-12-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberatai:AdditionalSharesMemberus-gaap:SeriesAPreferredStockMember2021-05-310001840904us-gaap:CommonStockMember2022-01-012022-03-310001840904us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001840904us-gaap:RestrictedStockUnitsRSUMember2022-12-310001840904atai:KuresMember2023-01-012023-03-3100018409042021-06-072021-06-070001840904atai:AmendedAndRestatedLoanAgreementMember2021-09-142021-09-140001840904atai:TryptagenixIncMember2022-01-012022-12-310001840904us-gaap:ValuationTechniqueDiscountedCashFlowMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberus-gaap:MeasurementInputDiscountRateMember2022-12-310001840904atai:AtaiEsopMemberatai:OptionsAndRestrictedStockAwardsMember2022-01-012022-03-310001840904atai:TryptagenixIncMember2022-12-310001840904us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMemberatai:InitialWarrantsMemberatai:NeuronasalIncMember2022-12-310001840904atai:CompassPathwaysPlcTwoMember2022-01-012022-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:CommonStockMemberus-gaap:SeriesAPreferredStockMember2021-04-132021-04-130001840904atai:DemerxNbIncMember2022-12-310001840904atai:PsyprotixMember2023-03-310001840904us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100018409042022-08-012022-08-310001840904us-gaap:FairValueInputsLevel3Memberatai:IntelgenxMemberus-gaap:MeasurementInputPriceVolatilityMemberatai:AdditionalWarrantsMember2022-12-310001840904atai:TwoThousandAndTwentyIncentivePlanMemberatai:ServiceAndPerformanceBasedOptionsMember2022-01-012022-03-310001840904us-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMember2022-12-310001840904atai:OtherSubsidiariesEquityPlanMember2023-01-012023-03-310001840904us-gaap:IPOMember2021-01-012021-06-300001840904us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001840904atai:FounderMemberatai:AtaiFormationMember2022-12-310001840904atai:IntelgenxCorpMember2021-09-300001840904atai:KuresMember2021-12-310001840904atai:RoyaltyLiabilitiesMember2022-12-310001840904us-gaap:CommercialPaperMember2023-03-310001840904atai:ChibaLicenseMember2023-01-012023-03-310001840904us-gaap:CorporateBondSecuritiesMember2022-12-310001840904srt:MaximumMemberatai:TwoThousandEighteenConvertibleNoteAgreementMember2018-11-300001840904us-gaap:ParentMember2022-03-310001840904atai:HerculesLoanAgreementMember2022-12-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:HsopPlanMember2023-01-012023-03-310001840904atai:CompassPathwaysPlcTwoMember2022-12-310001840904us-gaap:GeneralAndAdministrativeExpenseMemberatai:OptionsAndRestrictedStockAwardsMemberatai:OtherSubsidiariesEquityPlanMember2023-01-012023-03-310001840904atai:InvyxisEslaMember2022-01-012022-03-310001840904us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001840904atai:AtaiFormationMemberatai:GalaxyNycBasedMultiStrategyInvestmentFirmMember2023-03-310001840904us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001840904atai:NeuronasalInc.Memberus-gaap:CommonStockMember2021-03-310001840904us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-03-310001840904atai:TwoThousandEighteenConvertibleNotesMember2023-03-310001840904atai:FounderMemberatai:AtaiFormationMember2023-03-310001840904atai:InnoplexusAgMember2020-12-310001840904atai:TwoThousandEighteenConvertibleNoteAgreementMember2022-01-012022-12-310001840904atai:CompassPathwaysPlcTwoMember2021-12-070001840904atai:HerculesLoanAgreementMember2023-03-310001840904atai:RecognifyMember2022-01-012022-03-310001840904atai:CompassPathwaysPlcTwoMember2022-01-012022-03-310001840904atai:InitialWarrantsMember2023-01-012023-03-310001840904atai:JuvenescenceLimitedMember2022-12-310001840904atai:EntheogenixMember2022-12-310001840904atai:JuvenescenceLimitedMember2023-03-310001840904srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2023-01-010001840904atai:KuresMember2022-01-012022-03-310001840904atai:ContingentConsiderationLabilityRelatedPartiesMember2023-03-310001840904atai:IntelgenxCorpMemberatai:AdditionalTermLoanAndMarchTermLoanMember2021-05-112021-05-1100018409042023-05-010001840904atai:AllerganLicenseAgreementMember2022-01-012022-03-310001840904atai:ValueOfUnderlyingMemberus-gaap:FairValueInputsLevel3Memberatai:InitialWarrantsMemberatai:NeuronasalIncMember2023-03-310001840904us-gaap:RetainedEarningsMember2022-03-310001840904atai:DemerxIbInc.Memberatai:DemerxPromissoryNoteAgreementMember2020-01-030001840904us-gaap:NoncontrollingInterestMember2021-12-310001840904atai:TwoThousandAndTwentyIncentivePlanMemberatai:ServiceAndPerformanceBasedOptionsMember2023-01-012023-03-310001840904us-gaap:LicenseAgreementTermsMemberatai:AtaiKuresIncMember2020-06-300001840904us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001840904atai:AtaiEsopMemberatai:OptionsAndRestrictedStockAwardsMember2023-01-012023-03-310001840904atai:PrepaymentOccursAfterTheFirstAnniversaryAndOnOrPriorToTheSecondAnniversaryMemberatai:HerculesLoanAgreementMember2022-08-012022-08-310001840904atai:RecognifyMember2022-12-310001840904atai:CompassPathwaysPlcTwoMember2023-01-012023-03-310001840904us-gaap:RetainedEarningsMember2023-03-310001840904atai:AtaiEsopMemberus-gaap:GeneralAndAdministrativeExpenseMemberatai:OptionsAndRestrictedStockAwardsMember2023-01-012023-03-310001840904atai:RecognifyMember2022-03-310001840904atai:SecuritiesPurchaseAgreementMemberatai:IntelgenxSpaMember2021-09-300001840904us-gaap:PreferredStockMemberatai:NeuronasalInc.Member2020-10-310001840904atai:InvyxisEslaMember2023-01-012023-03-310001840904atai:TryptagenixIncMember2023-03-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:OptionsAndRestrictedStockAwardsMemberatai:OtherSubsidiariesEquityPlanMemberus-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001840904atai:TwentyTwentyIncentivePlanMember2023-03-310001840904atai:TwoThousandAndTwentyIncentivePlanMemberatai:ServiceAndPerformanceBasedOptionsMember2022-12-310001840904srt:MinimumMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:DiscountedCashFlowWithSbmMemberatai:MeasurementInputDiscountRateForRoyaltiesMember2023-03-310001840904atai:KuresMember2022-12-310001840904us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904us-gaap:RestrictedStockMember2022-01-012022-03-310001840904atai:ContingentConsiderationLabilityRelatedPartiesMember2022-01-012022-03-310001840904atai:CompassPathwaysPlcTwoMember2023-03-310001840904srt:MaximumMemberatai:ProbabilityOfSuccessRateMemberatai:DiscountedCashFlowWithSbmMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2022-12-310001840904atai:CompassPathwaysPlcTwoMember2023-03-310001840904atai:PerceptionMember2023-03-310001840904atai:InnarisbioInc.Member2023-01-012023-03-310001840904us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001840904atai:IntelgenxCorpMemberatai:SecuritiesPurchaseAgreementMember2021-05-140001840904atai:ContingentConsiderationLabilityRelatedPartiesMember2022-12-310001840904us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001840904atai:HerculesLoanAgreementMember2023-01-012023-03-310001840904atai:DemerxIbInc.Member2023-01-012023-03-310001840904atai:AtaiEsopMemberatai:OptionsAndRestrictedStockAwardsMemberus-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001840904us-gaap:RetainedEarningsMember2021-12-310001840904us-gaap:LoansReceivableMember2023-01-012023-03-310001840904atai:SecondTrancheMemberatai:AdditionalTermLoanReceivableMemberatai:IntelgenxCorpMemberatai:AmendedAndRestatedLoanAgreementMember2021-09-140001840904us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMemberatai:MeasurementInputProbabilityOfTheMilestoneMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2023-03-310001840904us-gaap:WarrantMember2021-12-310001840904us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:IntelgenxSpaMember2022-01-012022-03-310001840904us-gaap:CorporateBondSecuritiesMember2023-03-310001840904us-gaap:AdditionalPaidInCapitalMember2022-03-310001840904atai:PerceptionMember2022-03-310001840904atai:DalriadaLicenseAgreementMemberus-gaap:ServiceOtherMember2022-01-012022-03-3100018409042022-12-310001840904atai:HsopSharesMemberatai:HsopPlanMember2022-12-310001840904us-gaap:RestrictedStockMember2023-03-310001840904atai:IntelgenxMemberatai:AdditionalWarrantsMember2021-05-140001840904atai:TwentyTwentyIncentivePlanMemberus-gaap:EmployeeStockOptionMember2023-01-012023-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:CommonStockMemberus-gaap:SeriesAPreferredStockMember2022-09-302022-09-300001840904atai:HerculesLoanAgreementMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-08-310001840904srt:MaximumMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:DiscountedCashFlowWithSbmMemberatai:MeasurementInputDiscountRateForRoyaltiesMember2022-12-310001840904atai:GabaTherapeuticsIncMember2022-12-310001840904atai:HsopOptionsToPurchaseCommonStockMember2022-01-012022-03-310001840904atai:PsyprotixInc.Member2023-01-012023-03-310001840904us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:GabaTherapeuticsIncMember2023-01-012023-03-310001840904atai:GabaTherapeuticsIncMember2022-01-012022-03-310001840904atai:OtsukaMemberatai:OtsukaAgreementMemberatai:DevelopmentAndRegulatoryMilestonesMember2023-03-310001840904us-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:OtsukaMemberatai:OtsukaAgreementMember2021-12-310001840904atai:TwoThousandEighteenConvertibleNoteAgreementMember2021-12-310001840904atai:GabaIncMember2022-06-300001840904atai:IntelgenxSpaMember2021-05-1400018409042023-02-282023-02-280001840904atai:PsyprotixInc.Member2022-01-012022-12-310001840904srt:MinimumMemberatai:ProbabilityOfSuccessRateMemberatai:DiscountedCashFlowWithSbmMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2022-12-310001840904us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904us-gaap:WarrantMember2021-02-160001840904us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:PerceptionMember2023-01-012023-03-310001840904atai:InnoplexusAgMember2023-03-3100018409042022-01-010001840904atai:ContingentConsiderationLabilityRelatedPartiesMember2022-03-310001840904atai:RecognifyMember2021-12-310001840904us-gaap:IPOMember2021-06-222021-06-220001840904atai:DemerxPromissoryNoteAgreementMember2022-12-310001840904us-gaap:IPOMemberus-gaap:CommonClassAMember2021-06-222021-06-220001840904us-gaap:ParentMember2023-01-012023-03-3100018409042022-03-310001840904atai:CompassPathwaysPlcTwoMember2021-11-232021-12-070001840904atai:IntelgenxCorpMemberatai:TermLoanReceivableMember2021-01-012021-09-300001840904atai:PerceptionMember2022-01-012022-03-310001840904us-gaap:LeaseAgreementsMember2022-05-012022-05-310001840904atai:ConvertibleNotesIssuedInOctober2020Member2022-12-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904us-gaap:GeneralAndAdministrativeExpenseMemberatai:OptionsAndRestrictedStockAwardsMemberatai:AtaiHsopMember2023-01-012023-03-310001840904us-gaap:ValuationTechniqueDiscountedCashFlowMemberatai:MeasurementInputProbabilityOfTheMilestoneMembersrt:MinimumMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2022-12-310001840904us-gaap:IPOMember2021-06-300001840904us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001840904us-gaap:DeferredCompensationShareBasedPaymentsMember2023-01-012023-03-310001840904us-gaap:OverAllotmentOptionMember2021-01-012021-06-300001840904atai:TwoThousandEighteenConvertibleNoteAgreementMember2021-01-012021-12-310001840904srt:MinimumMemberatai:ContingentConsiderationLabilityRelatedPartiesMemberatai:DiscountedCashFlowWithSbmMemberatai:MeasurementInputDiscountRateForRoyaltiesMember2022-12-310001840904us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001840904atai:TwoThousandEighteenConvertibleNoteAgreementMember2018-11-300001840904atai:PerceptionMember2021-12-310001840904us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:AtaiEsopMemberatai:OptionsAndRestrictedStockAwardsMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310001840904atai:InnarisbioMember2023-03-310001840904atai:TermLoanReceivableMember2023-01-012023-03-310001840904atai:DemerxPromissoryNoteAgreementMember2023-01-012023-01-010001840904us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001840904atai:RecognifyMember2023-03-310001840904atai:KuresInc.Member2022-01-012022-12-310001840904srt:MaximumMemberatai:TwoThousandEighteenConvertibleNoteAgreementMember2018-10-310001840904us-gaap:SeriesAPreferredStockMemberatai:DemerxNbOptionsMember2019-01-012019-12-310001840904atai:OptionsAndRestrictedStockAwardsMemberatai:OtherSubsidiariesEquityPlanMember2022-01-012022-03-310001840904atai:GabaTherapeuticsIncMember2023-03-310001840904atai:AdditionalWarrantsMember2023-01-012023-03-310001840904us-gaap:IPOMemberus-gaap:CommonClassAMember2021-06-220001840904atai:GabaTherapeuticsIncMember2023-03-310001840904us-gaap:MoneyMarketFundsMember2023-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2019-08-3100018409042021-05-142021-05-140001840904atai:HsopPlanMember2023-03-310001840904atai:IntelgenxCorpMemberatai:UnitMemberatai:IntelgenxMember2021-05-140001840904atai:PrepaymentOccursOnOrPriorToTheFirstAnniversaryMemberatai:HerculesLoanAgreementMember2022-08-012022-08-310001840904atai:OptionsAndRestrictedStockAwardsMemberus-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001840904atai:OptionsAndRestrictedStockAwardsMemberatai:OtherSubsidiariesEquityPlanMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310001840904atai:AmendedGabaPspaMemberatai:GabaTherapeuticsIncMemberus-gaap:PreferredStockMemberus-gaap:SeriesAPreferredStockMember2019-08-012019-08-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904atai:IntelgenxSpaMember2023-01-012023-03-310001840904atai:HsopPlanMember2022-01-012022-03-310001840904us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904us-gaap:CommonStockMember2023-03-310001840904atai:SecuritiesPurchaseAgreementMember2021-05-142021-05-140001840904us-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMemberatai:MeasurementInputProbabilityOfTheMilestoneMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2022-12-310001840904atai:NeuronasalInc.Member2022-12-310001840904us-gaap:CommonStockMember2023-01-012023-03-310001840904atai:ContingentConsiderationLabilityRelatedPartiesMember2023-01-012023-03-310001840904atai:TwoThousandAndEighteenConvertiblePromissoryNotesMember2022-01-012022-03-310001840904atai:EntheogenixBiosciencesInc.Member2023-01-012023-03-310001840904atai:TryptagenixIncMember2022-12-310001840904atai:TwoThousandAndTwentyIncentivePlanMemberatai:MrAngermayerMemberatai:ConsultingAgreementMember2021-03-012021-03-310001840904atai:HsopSharesMemberatai:HsopPlanMember2022-01-012022-12-310001840904atai:IntelgenxCorpMemberatai:AdditionalTermLoanReceivableMemberatai:AmendedAndRestatedLoanAgreementMember2021-09-140001840904atai:PerceptionNeuroscienceHoldingsInc.Member2022-01-012022-12-310001840904atai:PsyberInc.Member2023-01-012023-03-3100018409042021-06-070001840904us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesShorttermDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001840904atai:SecuritiesPurchaseAgreementMemberatai:IntelgenxSpaMember2021-05-142021-05-140001840904atai:OtherShareholderMemberatai:TwoThousandEighteenConvertibleNoteAgreementMember2018-11-300001840904atai:PsyprotixMember2022-12-310001840904us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001840904us-gaap:ValuationTechniqueDiscountedCashFlowMemberatai:MeasurementInputProbabilityOfTheMilestoneMembersrt:MinimumMemberatai:ContingentConsiderationLabilityRelatedPartiesMember2023-03-310001840904atai:ApeironMemberatai:TwoThousandEighteenConvertibleNoteAgreementMember2018-11-300001840904us-gaap:ParentMember2021-12-3100018409042023-03-310001840904atai:RecognifyMember2023-01-012023-03-310001840904atai:DemerxIbMember2022-12-310001840904atai:KuresMember2023-03-310001840904atai:OptionsAndRestrictedStockAwardsMemberatai:AtaiHsopMember2023-01-012023-03-310001840904atai:DemerxNbIncMember2023-03-310001840904atai:GabaTherapeuticsIncMemberatai:AdditionalSharesMember2020-11-302020-11-300001840904us-gaap:StockCompensationPlanMember2023-01-012023-03-310001840904atai:OtsukaMemberatai:OtsukaAgreementMemberatai:CommercialMilestonesMember2023-03-310001840904atai:OtherSubsidiariesEquityPlanMember2023-03-31iso4217:EURxbrli:sharesiso4217:EURxbrli:purexbrli:sharesiso4217:USDxbrli:sharesiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

n

(Mark One)

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

 

For the quarterly period ended March 31, 2023 or

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: 001-40493

 

 

ATAI Life Sciences N.V.

(Exact name of registrant as specified in its charter)

 

The Netherlands

Not Applicable

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

ATAI Life Sciences N.V.

Wallstraße 16, 10179

Berlin, Germany

Not Applicable

(Address of principal executive offices)

(Zip Code)

 

+49 89 2153 9035

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

 

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

 

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Common shares, par value €0.10 per share

ATAI

The Nasdaq Stock Market LLC
(Nasdaq Global Market)

 

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.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

As of May 1, 2023, the registrant had 166,010,476 common shares, par value €0.10 per share, outstanding.

 

 

 


 

ATAI Life Sciences N.V.

 

FORM 10-Q

 

Table of Contents

 

Page

Forward-Looking Statements

1

PART I. FINANCIAL INFORMATION

3

Item 1.

Financial Statements (Unaudited)

3

 

Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022

3

 

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2023 and 2022

4

 

Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2023 and 2022

5

 

Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2023 and 2022

6

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022

7

 

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

35

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

49

Item 4.

Controls and Procedures

50

PART II. OTHER INFORMATION

51

Item 1.

Legal Proceedings

51

Item 1A.

Risk Factors

51

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

51

Item 3.

Defaults Upon Senior Securities

51

Item 4.

Mine Safety Disclosures

51

Item 5.

Other Information

51

Item 6.

Exhibits

53

Signatures

54

 


 

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (the “Quarterly Report) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). AAll statements contained in this Quarterly Report other than statements of historical fact should be considered forward-looking statements, including without limitation statements regarding our future operating results and financial position; the success, cost, and timing of development of our product candidates, including the progress of preclinical studies and clinical trials and related milestones; the commercialization of our current product candidates and any other product candidates we may identify and pursue, if approved, including our ability to successfully build a specialty sales force and commercial infrastructure to market our current product candidates and any other product candidates we may identify and pursue; the timing of and our ability to obtain and maintain regulatory approvals; our business strategy and plans, including the benefits of our corporate restructuring; potential acquisitions, partnerships and other strategic arrangements; the sufficiency of our cash and cash equivalents and short-term investments to fund our operations; available funding under the Hercules Capital, Inc. loan facility; and the plans and objectives of management for future operations and capital expenditures. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “preliminary,” “likely,” and similar expressions are intended to identify forward-looking statements.

 

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are neither promises nor guarantees, and are subject to a number of important factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements, including without limitation: we are a clinical-stage biopharmaceutical company and have incurred significant losses since our inception, and we expect to incur losses for the foreseeable future and may never be profitable; if we are unable to obtain funding when needed and on acceptable terms, we could be forced to delay, limit or discontinue our product development efforts; our limited operating history may make it difficult to evaluate the success of our business and to assess our future viability; we rely on third parties to assist in conducting our clinical trials and some aspects of our research and preclinical testing, and those third parties may not perform satisfactorily, including failing to meet deadlines for the completion of such trials, research, or testing; we currently rely on qualified therapists working at third-party clinical trial sites to administer certain of our product candidates in our clinical trials and we expect this to continue upon approval, if any, of our current or future product candidates, and if third-party sites fail to recruit and retain a sufficient number of therapists or effectively manage their therapists, our business, financial condition and results of operations would be materially harmed; our product candidates are in preclinical or clinical development, which is a lengthy and expensive process with uncertain outcomes, and we cannot give any assurance that any of our product candidates will receive regulatory approval, which is necessary before they can be commercialized; research and development of drugs targeting the central nervous system, or CNS, is particularly difficult, and it can be difficult to predict and understand why a drug has a positive effect on some patients but not others; the production and sale of our product candidates may be considered illegal or may otherwise be restricted due to the use of controlled substances, which may also have consequences for the legality of investments from foreign jurisdictions; we face significant competition in an environment of rapid technological and scientific change, and there is a possibility that our competitors may achieve regulatory approval before we do or develop therapies that are safer, more advanced or more effective than ours, which may negatively impact our ability to successfully market or commercialize any product candidates we may develop and ultimately harm our financial condition; if we are unable to obtain and maintain sufficient intellectual property protection for our existing product candidates or any other product candidates that we may identify, or if the scope of the intellectual property protection we currently have or obtain in the future is not sufficiently broad, our competitors could develop and commercialize product candidates similar or identical to ours, and our ability to successfully commercialize our existing product candidates and any other product candidates that we may pursue may be impaired; third parties may claim that we are infringing, misappropriating or otherwise violating their intellectual property rights, the outcome of which would be uncertain and may prevent or delay our development and commercialization efforts; our future success depends on our ability to retain key employees, directors, consultants and advisors and to attract, retain and motivate qualified personnel; as a result of covenants to our loan agreement with Hercules Capital, Inc., our operating activities may be restricted and we may be required to repay the outstanding indebtedness in the event of a breach by us, or an event of default thereunder, which could have a materially adverse effect on our business; if we fail to maintain an effective system of disclosure controls and internal control over financial reporting our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired; our business is subject to economic, political, regulatory and other risks associated with international operations; a pandemic, epidemic, or outbreak of an infectious disease, such as the COVID-19 pandemic, may materially and adversely affect our business, including our preclinical studies, clinical trials, third parties on whom we rely, our supply chain, our ability to raise capital, our ability to conduct regular business and our financial results, and other risks, uncertainties, and assumptions described under “Risk Factors” in Item 1A of Part I, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of Part II and elsewhere in our Form 10-K for the year ended December 31, 2022 (the "Form 10-K") as further updated in this Quarterly Report, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of this Quarterly Report, and elsewhere in our filings with the Securities and Exchange Commission (“SEC”).

 

1


 

Any forward-looking statements made herein speak only as of the date of this Quarterly Report, and you should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or achievements reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update any of these forward-looking statements for any reason after the date of this Quarterly Report or to conform these statements to actual results or revised expectations.

 

GENERAL

 

Unless the context otherwise requires, all references in this Quarterly Report to “we,” “us,” “our,” “atai” or the “Company” refer to ATAI Life Sciences N.V. and its consolidated subsidiaries. References to "Quarterly Report" herein refer to this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 and references to “Form 10-K” and “Annual Report” herein refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

 

All reports we file with the SEC are available for download free of charge via the Electronic Data Gathering Analysis and Retrieval (EDGAR) System on the SEC’s website at www.sec.gov. We also make electronic copies of our reports available for download, free of charge, through our investor relations website at ir.atai.life as soon as reasonably practicable after filing such material with the SEC.

We may announce material business and financial information to our investors using our investor relations website at ir.atai.life. We therefore encourage investors and others interested in atai to review the information that we make available on our website, in addition to following our filings with the SEC, webcasts, press releases and conference calls. Information contained on our website is not incorporated into, and does not form a part of this Quarterly Report.

2


 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

 

ATAI LIFE SCIENCES N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share and per share amounts)

 

 

 

March 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

185,885

 

 

$

190,613

 

Securities carried at fair value

 

 

63,998

 

 

 

82,496

 

Prepaid expenses and other current assets

 

 

9,199

 

 

 

14,036

 

Short term notes receivable - related parties, net

 

 

8,851

 

 

 

 

Total current assets

 

 

267,933

 

 

 

287,145

 

Property and equipment, net

 

 

1,114

 

 

 

928

 

Operating lease right-of-use asset, net

 

 

1,489

 

 

 

226

 

Other investments

 

 

5,846

 

 

 

6,755

 

Long term notes receivable - related parties, net

 

 

1,155

 

 

 

7,262

 

Other assets

 

 

3,180

 

 

 

3,125

 

Total assets

 

$

280,717

 

 

$

305,441

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

 

4,915

 

 

 

2,399

 

Accrued liabilities

 

 

13,819

 

 

 

17,306

 

Current portion of lease liability

 

 

317

 

 

 

180

 

Other current liabilities

 

 

902

 

 

 

12

 

Total current liabilities

 

 

19,953

 

 

 

19,897

 

Non-current portion of contingent consideration liability - related parties

 

 

918

 

 

 

953

 

Non-current portion of lease liability

 

 

1,185

 

 

 

44

 

Convertible promissory notes - related parties, net of discounts and deferred issuance costs

 

 

422

 

 

 

415

 

Long-term debt, net

 

 

14,783

 

 

 

14,702

 

Other liabilities

 

 

2,816

 

 

 

3,664

 

Total liabilities

 

$

40,077

 

 

$

39,675

 

Commitments and contingencies (Note 16)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, €0.10 par value ($0.12 par value at March 31, 2023 and December 31, 2022, respectively); 750,000,000 shares authorized at March 31, 2023 and December 31, 2022, respectively; 166,010,476 and 165,935,914 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

18,571

 

 

 

18,562

 

Additional paid-in capital

 

 

782,926

 

 

 

774,092

 

Share subscription receivable

 

 

 

 

 

(24

)

Accumulated other comprehensive loss

 

 

(20,823

)

 

 

(21,702

)

Accumulated deficit

 

 

(543,849

)

 

 

(510,188

)

Total stockholders’ equity attributable to ATAI Life Sciences N.V. stockholders

 

 

236,825

 

 

 

260,740

 

Noncontrolling interests

 

 

3,815

 

 

 

5,026

 

Total stockholders’ equity

 

 

240,640

 

 

 

265,766

 

Total liabilities and stockholders’ equity

 

$

280,717

 

 

$

305,441

 

 

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements.

3


 

ATAI LIFE SCIENCES N.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

License revenue

 

$

37

 

 

$

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

19,281

 

 

 

15,460

 

General and administrative

 

 

13,970

 

 

 

17,982

 

Total operating expenses

 

 

33,251

 

 

 

33,442

 

Loss from operations

 

 

(33,214

)

 

 

(33,442

)

Other income (expense), net:

 

 

 

 

 

 

Interest income

 

 

275

 

 

 

98

 

Interest expense

 

 

(622

)

 

 

 

Change in fair value of contingent consideration liability - related parties

 

 

35

 

 

 

 

Change in fair value of securities carried at fair value

 

 

964

 

 

 

(740

)

Foreign exchange gain (loss), net

 

 

(837

)

 

 

2,163

 

Other income

 

 

243

 

 

 

 

Total other income (expense), net

 

 

58

 

 

 

1,521

 

Loss before income taxes

 

 

(33,156

)

 

 

(31,921

)

Provision for income taxes

 

 

(165

)

 

 

(41

)

Losses from investments in equity method investees, net of tax

 

 

(1,033

)

 

 

(5,596

)

Net loss

 

 

(34,354

)

 

 

(37,558

)

Net loss attributable to noncontrolling interests

 

 

(1,219

)

 

 

(689

)

Net loss attributable to ATAI Life Sciences N.V. stockholders

 

$

(33,135

)

 

$

(36,869

)

Net loss per share attributable to ATAI Life Sciences N.V. stockholders — basic and diluted

 

$

(0.21

)

 

$

(0.24

)

Weighted average common shares outstanding attributable to ATAI Life Sciences N.V. stockholders — basic and diluted

 

 

155,792,490

 

 

 

153,529,268

 

 

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements.

4


 

ATAI LIFE SCIENCES N.V.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

 

2023

 

 

2022

 

 

Net loss

 

$

(34,354

)

 

$

(37,558

)

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustments, net of tax

 

 

879

 

 

 

(4,373

)

 

Comprehensive loss:

 

$

(33,475

)

 

$

(41,931

)

 

Comprehensive loss attributable to noncontrolling interests

 

 

(1,219

)

 

 

(689

)

 

Foreign currency translation adjustments, net of tax attributable to noncontrolling interests

 

 

8

 

 

 

(11

)

 

Comprehensive loss attributable to noncontrolling interests

 

 

(1,211

)

 

 

(700

)

 

Comprehensive loss attributable to ATAI Life Sciences
   N.V. stockholders

 

$

(32,264

)

 

$

(41,231

)

 

 

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements.

5


 

ATAI LIFE SCIENCES N.V.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share and per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Stockholders’

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Share

 

 

Other

 

 

 

 

 

Equity Attributable to

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Subscriptions

 

 

Comprehensive

 

 

Accumulated

 

 

ATAI Life Sciences N.V.

 

 

Noncontrolling

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Receivable

 

 

Loss

 

 

Deficit

 

 

Stockholders

 

 

Interests

 

 

Equity

 

Balances at December 31, 2022

 

 

165,935,914

 

 

$

18,562

 

 

$

774,092

 

 

$

(24

)

 

$

(21,702

)

 

$

(510,188

)

 

$

260,740

 

 

$

5,026

 

 

$

265,766

 

Issuance of shares upon exercise of stock options

 

 

74,562

 

 

 

9

 

 

 

172

 

 

 

 

 

 

 

 

 

 

 

 

181

 

 

 

 

 

 

181

 

Settlement of issuance of shares upon
   exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

8,662

 

 

 

 

 

 

 

 

 

 

 

 

8,662

 

 

 

 

 

 

8,662

 

Adjustment to accumulated deficit
(pursuant to adoption of ASU 2016-13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(526

)

 

 

(526

)

 

 

 

 

 

(526

)

Foreign currency translation adjustment,
   net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

879

 

 

 

 

 

 

879

 

 

 

8

 

 

 

887

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,135

)

 

 

(33,135

)

 

 

(1,219

)

 

 

(34,354

)

Balances at March 31, 2023

 

 

166,010,476

 

 

$

18,571

 

 

$

782,926

 

 

$

 

 

$

(20,823

)

 

$

(543,849

)

 

$

236,825

 

 

$

3,815

 

 

$

240,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Stockholders’

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Share

 

 

Other

 

 

 

 

 

Equity Attributable to

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Subscriptions

 

 

Comprehensive

 

 

Accumulated

 

 

ATAI Life Sciences N.V.

 

 

Noncontrolling

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Receivable

 

 

Loss

 

 

Deficit

 

 

Stockholders

 

 

Interests

 

 

Equity

 

Balances at December 31, 2021

 

 

160,677,001

 

 

$

18,002

 

 

$

725,045

 

 

$

 

 

$

(8,336

)

 

$

(357,803

)

 

$

376,908

 

 

$

9,051

 

 

$

385,959

 

Issuance of shares upon exercise of stock options

 

 

42,827

 

 

 

5

 

 

 

127

 

 

 

 

 

 

 

 

 

 

 

 

132

 

 

 

 

 

 

132

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

10,208

 

 

 

 

 

 

 

 

 

 

 

 

10,208

 

 

 

 

 

 

10,208

 

Foreign currency translation adjustment,
   net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,373

)

 

 

 

 

 

(4,373

)

 

 

(11

)

 

 

(4,384

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,869

)

 

 

(36,869

)