Athersys, Inc / New (ATHXQ) 10-Q 12 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-33876
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-4864095
Entity Address, Address Line One	3201 Carnegie Avenue,
Entity Address, City or Town	Cleveland,
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44115-2634
City Area Code	216
Local Phone Number	431-9900
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ATHX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		275,109,746
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	ATHERSYS, INC / NEW
Entity Central Index Key	0001368148
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 13,378	$ 37,407
Accounts receivable from Healios	600
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
Current liabilities:
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
Total current liabilities	33,221	29,861
Operating lease liabilities, non-current	8,284	8,755
Other long-term liabilities	238	0
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	0	0
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
Consolidated entity, excluding related party
Current liabilities:
Accounts payable	23,784	15,781
Healios
Current assets:
Accounts receivable from Healios	3,594	1,414
Unbilled accounts receivable from Healios	0	3,000
Current liabilities:
Accounts payable to Healios	1,119	1,119
Deferred revenue - Healios	0	3,340
Advance from Healios	$ 5,199	$ 5,199

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Stockholders’ equity:
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	275,109,746	242,844,180
Common stock, shares outstanding (in shares)	275,109,746	242,844,180

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues
Total revenues	$ 2,316	$ 0	$ 5,228	$ 0
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 (in dollars per share)	$ (90)	$ (0.10)	$ (0.18)	$ (0.23)
Net loss per share, diluted (in dollars per share)	$ (90)	$ (0.10)	$ (0.18)	$ (0.23)
Weighted average shares outstanding, basic (in shares)	259,570	222,436	251,926	215,353
Weighted average shares outstanding, diluted (in shares)	259,570	222,436	251,926	215,353
Healios
Revenues
Contract revenue from Healios	$ 2,316	$ 0	$ 5,228	$ 0

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Consolidated entity, excluding related party	Preferred Stock	Common Stock	Common Stock Consolidated entity, excluding related party	Additional Paid-in Capital	Additional Paid-in Capital Consolidated entity, excluding related party	Accumulated Deficit
Preferred stock shares, beginning balance (in shares) at Dec. 31, 2020			0
Beginning balance at Dec. 31, 2020	$ 31,362		$ 0	$ 202		$ 527,549		$ (496,389)
Common stock, beginning balance (in shares) at Dec. 31, 2020				201,973,582
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3,903					3,903
Issuance of common stock (in shares)					15,200,000
Issuance of common stock		$ 30,495			$ 15		$ 30,480
Issuance of common stock under equity compensation plan (in shares)				437,925
Issuance of common stock under equity compensation plan	(611)			$ 1		(612)
Net and comprehensive loss	(26,468)							(26,468)
Preferred stock shares, ending balance (in shares) at Mar. 31, 2021			0
Ending balance at Mar. 31, 2021	38,681		$ 0	$ 218		561,320		(522,857)
Common stock, ending balance (in shares) at Mar. 31, 2021				217,611,507
Preferred stock shares, beginning balance (in shares) at Dec. 31, 2020			0
Beginning balance at Dec. 31, 2020	31,362		$ 0	$ 202		527,549		(496,389)
Common stock, beginning balance (in shares) at Dec. 31, 2020				201,973,582
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net and comprehensive loss	(49,067)
Preferred stock shares, ending balance (in shares) at Jun. 30, 2021			0
Ending balance at Jun. 30, 2021	31,046		$ 0	$ 226		576,276		(545,456)
Common stock, ending balance (in shares) at Jun. 30, 2021				226,255,093
Preferred stock shares, beginning balance (in shares) at Mar. 31, 2021			0
Beginning balance at Mar. 31, 2021	38,681		$ 0	$ 218		561,320		(522,857)
Common stock, beginning balance (in shares) at Mar. 31, 2021				217,611,507
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,788					1,788
Issuance of common stock (in shares)					8,500,000
Issuance of common stock		13,292			$ 8		13,284
Issuance of common stock under equity compensation plan (in shares)				143,586
Issuance of common stock under equity compensation plan	(116)					(116)
Net and comprehensive loss	(22,599)							(22,599)
Preferred stock shares, ending balance (in shares) at Jun. 30, 2021			0
Ending balance at Jun. 30, 2021	$ 31,046		$ 0	$ 226		576,276		(545,456)
Common stock, ending balance (in shares) at Jun. 30, 2021				226,255,093
Preferred stock shares, beginning balance (in shares) at Dec. 31, 2021	0		0
Beginning balance at Dec. 31, 2021	$ 16,369		$ 0	$ 243		599,470		(583,344)
Common stock, beginning balance (in shares) at Dec. 31, 2021	242,844,180			242,844,180
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 1,410					1,410
Issuance of common stock (in shares)					6,800,000
Issuance of common stock		4,802			$ 7		4,795
Issuance of common stock under equity compensation plan (in shares)				148,611
Issuance of common stock under equity compensation plan	(58)					(58)
Net and comprehensive loss	(22,216)							(22,216)
Preferred stock shares, ending balance (in shares) at Mar. 31, 2022			0
Ending balance at Mar. 31, 2022	$ 307		$ 0	$ 250		605,617		(605,560)
Common stock, ending balance (in shares) at Mar. 31, 2022				249,792,791
Preferred stock shares, beginning balance (in shares) at Dec. 31, 2021	0		0
Beginning balance at Dec. 31, 2021	$ 16,369		$ 0	$ 243		599,470		(583,344)
Common stock, beginning balance (in shares) at Dec. 31, 2021	242,844,180			242,844,180
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net and comprehensive loss	$ (45,864)
Preferred stock shares, ending balance (in shares) at Jun. 30, 2022	0		0
Ending balance at Jun. 30, 2022	$ (11,738)		$ 0	$ 275		617,195		(629,208)
Common stock, ending balance (in shares) at Jun. 30, 2022	275,109,746			275,109,746
Preferred stock shares, beginning balance (in shares) at Mar. 31, 2022			0
Beginning balance at Mar. 31, 2022	$ 307		$ 0	$ 250		605,617		(605,560)
Common stock, beginning balance (in shares) at Mar. 31, 2022				249,792,791
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,945					1,945
Issuance of common stock (in shares)					25,089,000
Issuance of common stock		$ 9,698			$ 25		$ 9,673
Issuance of common stock under equity compensation plan (in shares)				227,955
Issuance of common stock under equity compensation plan	(40)					(40)
Net and comprehensive loss	$ (23,648)							(23,648)
Preferred stock shares, ending balance (in shares) at Jun. 30, 2022	0		0
Ending balance at Jun. 30, 2022	$ (11,738)		$ 0	$ 275		$ 617,195		$ (629,208)
Common stock, ending balance (in shares) at Jun. 30, 2022	275,109,746			275,109,746

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities
Net loss	$ (45,864)	$ (49,067)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	865	967
Loss from impairment of assets	4,931	0
Stock-based compensation	3,355	5,691
Operating right-of-use assets, net	0	235
Changes in operating assets and liabilities:
Accounts receivable from Healios - billed and unbilled	820	0
Prepaid expenses, deposits and other	307	113
Accounts payable, accrued expenses and other	2,320	5,367
Accounts payable to Healios	0	(500)
Deferred revenue - Healios	(3,340)	0
Net cash used in operating activities	(36,606)	(37,194)
Investing activities
Purchases of equipment	(1,825)	(758)
Net cash used in investing activities	(1,825)	(758)
Financing activities
Proceeds from issuance of common stock, net of issuance cost	14,500	43,787
Shares retained for withholding tax payments on stock-based awards	(98)	(727)
Net cash provided by financing activities	14,402	43,060
(Decrease) Increase in cash and cash equivalents	(24,029)	5,108
Cash and cash equivalents at beginning of the period	37,407	51,546
Cash and cash equivalents at end of the period	$ 13,378	$ 56,654

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Background Athersys, Inc., including its consolidated subsidiaries (collectively, “we,” “us,” “our,” “Athersys,” and the “Company”), is a biotechnology company focused in the field of regenerative medicine and operates in one business segment. Our operations consist of research, clinical development activities, manufacturing and manufacturing process development activities, and our most advanced program is in a pivotal Phase 3 clinical trial for the treatment of ischemic stroke. Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments, consisting of normal recurring adjustments and disclosures that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Our critical accounting policies, estimates and assumptions are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is included in this Quarterly Report on Form 10-Q.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	Going Concern We have prepared our unaudited condensed consolidated financial statements on a going concern basis, which assumes that we will realize our assets and satisfy our liabilities in the normal course of business. However, we have incurred net losses since our inception in 1995 and have negative operating cash flows. These factors, among others, raise substantial doubt about our ability to continue as a going concern within one year after the date that these financial statements are issued. The accompanying unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of the uncertainty concerning our ability to continue as a going concern. At June 30, 2022, we had cash and cash equivalents of $13.4 million. We will need substantial additional funding to develop our MultiStem product candidate and to continue our operations. To conserve cash, we have been delaying payments to most of our suppliers and service providers. In the near term, we will need to obtain significant capital through public or private equity offerings, debt financings, collaborations and licensing arrangements or other sources to continue to fund our operations. However, there can be no assurance that we will be able to obtain adequate funding on terms acceptable to us, on a timely basis or at all, particularly in light of our current stock price and liquidity. If we are unable to obtain funding, we may be required to further delay, reduce or eliminate our MultiStem product candidate approval efforts, which could adversely affect our business prospects, and we may be unable to continue operations.

Accounting Standards Not Yet Ad

Accounting Standards Not Yet Adopted	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) . This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326): Effective Dates

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic and diluted net loss per share have been computed using the weighted-average number of shares of our common stock outstanding during the period. We have outstanding stock-based awards that are not used in the calculation of diluted net loss per share because to do so would be anti-dilutive. We have two warrants outstanding to purchase an aggregate of 10,000,000 shares of our common stock that were issued to HEALIOS K.K. (“Healios”) in August 2021. The warrants are not yet exercisable according to their terms. Refer to Note 8 for additional details. The following instruments were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Three months ended Six months ended 2022 2021 2022 2021 Stock-based awards 32,357,666 25,773,110 32,357,666 25,773,110 Healios warrants – see Note 8 10,000,000 — 10,000,000 — Total 42,357,666 25,773,110 42,357,666 25,773,110

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net For the periods ended Property and equipment consists of (in thousands): June 30, December 31, 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 Long-lived assets are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. In June 2022, we announced a restructuring of our organization, with the intention of significantly reducing expenses, conserving cash, improving the focus of the Company’s activities and becoming more attractive to potential financial and strategic partners. This restructuring plan (the “Plan”) includes a significant reduction in our workforce and changes to the management team. The Plan also includes the reduction of our internal research function, decommissioning certain equipment beginning in July 2022 and pausing our manufacturing and process development efforts toward commercializing our MultiStem product candidate. As a result of these actions, we recorded an impairment charge of approximately $4.9 million in the second quarter of 2022 to adjust the carrying amount of certain equipment assets to the estimated market value of similar assets. The impairment charge is included in research and development costs and expenses on the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2022. In June 2022, as a result of the Plan, we determined certain office equipment, leasehold improvements and equipment assets were no longer necessary to support future activities. We reduced the useful lives of such equipment resulting in additional depreciation of $0.4 million, which was recorded in the second quarter of 2022.

Collaborative Arrangements and

Collaborative Arrangements and Revenue Recognition	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Arrangements and Revenue Recognition	Collaborative Arrangements and Revenue Recognition Healios Collaboration We have a licensing agreement with Healios to primarily develop and commercialize our cell therapy technologies for certain disease indications in Japan, pursuant to which we received nonrefundable license fee payments and are entitled to royalties on net sales. We also have the right to receive development and commercial milestone payments from Healios, subject to certain potential credits that have been negotiated from time-to-time and are associated with modifications to the arrangement. Healios is responsible for the development and commercialization of the licensed products in the licensed territories, and we provide certain services to Healios for which we are paid. In August 2021, the Company and Healios entered into the Framework Agreement, which provides for clarification under and modifies the existing agreements between the parties. It also provides Healios with deferral of certain milestone payments during the expensive initial commercial launch period. Under the Framework Agreement, the Company is entitled to a $3.0 million milestone payment from Healios and payments for reimbursable services of which $0.6 million are included in accounts receivable from Healios at June 30, 2022. To date, we have not received the $3.0 million milestone payment and we may not receive such payment in the near term. In addition, under the Framework Agreement, the Company is obligated to pay Healios $1.1 million by December 31, 2022. In August 2021, we also issued two warrants (together, the “2021 Warrants”) to Healios in connection with the Framework Agreement to purchase up to a total of 10,000,000 shares of our common stock. The 2021 Warrants are being accounted for as consideration paid or payable to a customer according to Topic 606, Revenue from Contracts with Customers , and Topic 718, Compensation Stock Compensation , under which the recognition of such equity instruments is required at the time that the underlying performance conditions become probable or are satisfied. As of June 30, 2022, the 2021 Warrants have not been recorded as the underlying performance conditions have not been satisfied and are not yet considered probable. Refer to Note 8 for further information. Healios Revenue Recognition At the inception of the Healios arrangement and again each time that the arrangement is modified, all material performance obligations are identified, which currently include one performance obligation for services necessary for regulatory approvals, manufacturing readiness, and commercial launch in Japan. At the inception of the Healios arrangement, we determined the transaction price included estimated payments for reimbursable services to be performed by us for Healios and the $3.0 million milestone payment. We allocated the total transaction price to this one performance obligation. We began recognizing this revenue beginning in the third quarter of 2021 as the services were being performed. At June 30, 2022, the services related to this performance obligation are largely complete, and we expect the remaining services, which consist of minimal activities, to be completed by the end of 2022. During our evaluation of variable consideration in the second quarter of 2022, we increased our estimated transaction price due to changes in the estimated cost of the reimbursable services. During the three months ended June 30, 2022, we recognized revenue of approximately $2.3 million associated with this performance obligation. We recognized no revenue for the three months ended June 30, 2022, and June 30, 2021 from performance obligations satisfied in previous periods. Accounts receivable from Healios Accounts receivable from Healios are related to our contracts and are recorded when the right to consideration is unconditional at the amount that management expects to collect. Accounts receivable from Healios do not bear interest if paid when contractually due, and payments are generally due within thirty Unbilled Accounts Receivable Unbilled accounts receivable from Healios represent amounts due to us under contractual arrangements and for which we have an unconditional right to consideration, but for which we have not yet invoiced Healios. At June 30, 2022, we had no unbilled accounts receivable from Healios. Deferred Revenue - Healios Amounts included in deferred revenue - Healios on the condensed consolidated balance sheets are considered a contract liability. During the six months ended June 30, 2022 revenue recognized from contract liabilities as of the beginning of the respective period was $2.8 million. No revenue was recognized from contract liabilities during the six months ended June 30, 2021. Advance from Healios In 2017, we amended the clinical trial supply agreement for the manufacturing of clinical product for TREASURE to clarify a cost-sharing arrangement. The proceeds from Healios that relate specifically to the cost-sharing arrangement may either (i) result in a reduction in the proceeds we receive from Healios upon the achievement of two potential milestones and an increase to a commercial milestone under the license agreement for stroke or (ii) be repaid to Healios at our election, as defined. The cost-sharing proceeds received are recognized in advance from Healios on the unaudited condensed consolidated balance sheets until the earlier of the milestones being achieved or such amounts being repaid to Healios at our election, at which time the culmination of the earnings process or the repayment will be complete. Disaggregation of Revenues We recognize service revenue when earned over time. The following table presents our contract revenues disaggregated by timing of revenue recognition (in thousands): Three months ended Three months ended Point in Over Time Point in Over Time Contract Revenue from Healios Service revenue $ — $ 2,316 $ — $ — Total disaggregated revenues $ — $ 2,316 $ — $ — Six months ended Six months ended Point in Over Time Point in Over Time Contract Revenue from Healios Service revenue $ — $ 5,228 $ — $ — Total disaggregated revenues $ — $ 5,228 $ — $ —

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Our 2019 Equity and Incentive Compensation Plan (the “EICP”) authorized at inception an aggregate of approximately 18,500,000 shares of our common stock for awards to employees, directors and consultants. The EICP authorizes the issuance of stock-based compensation in the form of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) , performance shares and units, and other stock-based awards. Under the EICP, in the three months ended June 30, 2022, we granted 674,000 stock options and 738,338 RSUs to our employees. As an inducement to Mr. Camardo’s acceptance of employment with us, Mr. Camardo was granted an initial equity award (the “Inducement Award”) to purchase 10,000,000 shares of our common stock at a per share exercise price of $0.86. With regard to 4,000,000 shares, vesting of the Inducement Award will occur over a four-year period, with 25% of such portion of the award generally vesting on the first anniversary of the grant date and the remainder generally vesting monthly in substantially equal installments over the remaining 36 months. With regard to 6,000,000 shares, vesting of the Inducement Award will generally occur upon achievement of certain Company milestones. The Inducement Award has up to a 10-year term. On June 17, 2022, the Board of Directors of Athersys (the “Board”) appointed Ms. Maia Hansen as the Company’s Chief Operating Officer. To reflect her level of responsibility and leadership in the Company, and in connection with her promotion, Ms. Hansen received grants of 50,000 stock options and 33,333 RSUs. In addition, in recognition of continued service, in the second quarter of 2022, we granted stock options and RSUs to all then-current employees who would continue to be employed with the Company after June 30, 2022. All stock options and RSUs granted in the second quarter of 2022 generally vest one-half one year from the grant date and the remaining one-half vesting two years from the grant date. As of June 30, 2022, a total of 4,935,412 shares were available for issuance under the EICP, and stock-based awards representing 21,620,166 shares of our common stock were outstanding under our current and former equity incentive plans, and inducement awards granted outside of our equity incentive plans to purchase 10,737,500 shares of our common stock were outstanding. For the three months ended June 30, 2022 and 2021, stock-based compensation expense was approximately $1.9

Stockholders_ Equity and Warran

Stockholders’ Equity and Warrants	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Stockholders’ Equity and Warrants	Stockholders’ Equity and Warrants Equity Purchase Agreement We previously had equity purchase agreements in place since 2011 with Aspire Capital Fund, LLC (“Aspire Capital”) that provided us the ability to sell shares to Aspire Capital from time to time. On May 12, 2022, we entered into an agreement (the “2022 Equity Facility”) that included Aspire Capital’s commitment to purchase up to an aggregate of $100.0 million of shares of our common stock over a defined timeframe. The terms of the 2022 Equity Facility were similar to the previous equity facilities with Aspire Capital. Our prior equity facility that was entered into in 2021 (the “2021 Equity Facility”) was fully utilized and terminated during the second quarter of 2022. On July 6, 2022, Aspire Capital terminated the 2022 Equity Facility. Aspire Capital had the right to terminate the 2022 Equity Facility at the time or any time after any of the Company’s then current executive officers ceased to be an executive officer or full-time employee of the Company, which right was triggered in connection with the departures of Mr. William Lehmann, former president and Chief Operating Officer, Dr. Harrington, former Executive Vice President and Chief Scientific Officer, and Mr. MacLeod, former Chief Financial Officer. During the quarter ended June 30, 2022, we sold 25,089,000 shares of our common stock to Aspire Capital at an average price of $0.39 per share. During the quarter ended June 30, 2021, we sold 8,500,000 shares of our common stock to Aspire Capital at an average price of $1.58 per share. Healios 2021 Warrants In August 2021, we issued the 2021 Warrants to Healios to purchase up to an aggregate of 10,000,000 shares of our common stock. One of the 2021 Warrants is for the purchase of up to 3,000,000 shares at an exercise price of $1.80 per share, subject to specified increases, and generally is only exercisable within 60 days of receipt of either conditional or full marketing approval from the Pharmaceuticals and Medical Devices Agency in Japan (the “PMDA”) for the intravenous administration of MultiStem to treat patients who are suffering from acute respiratory distress syndrome. The other 2021 Warrant is for the purchase of up to 7,000,000 shares at an exercise price of $2.40 per share, subject to specified increases, and generally is only exercisable within 60 days of receipt of either conditional or full marketing approval from the PMDA for the intravenous administration of MultiStem to treat patients who are suffering from ischemic stroke. The 2021 Warrants may be terminated by us under certain conditions and have an exercise cap triggered at Healios’ ownership of 19.9% of our common stock. Increase Shares of Authorized Common Stock

Restructuring Charges

Restructuring Charges	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring Charges	Restructuring Charges In June 2022, we announced a restructuring of our organization, including an approximate 70% reduction in our workforce. As part of the Plan we also announced changes to our executive team. Mr. Lehmann left the Company on May 31, 2022. Dr. Harrington and Mr. Macleod left the Company on June 30, 2022. The Company’s restructuring efforts are intended to preserve cash and reduce operating expenses going forward. In addition to the workforce reductions, the Company’s restructuring efforts include the reduction of our internal research function, the decommissioning of certain equipment beginning in July 2022 and pausing our manufacturing and process development efforts toward commercializing our MultiStem product candidate, if approved, as discussed below. The following table sets forth certain details associated with the restructuring charges incurred in the second quarter of 2022 and the obligations recorded for the expenses associated with the Plan (in thousands). It is anticipated the Plan will be completed by mid-2023. 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 The current portion of our restructuring accrual is included in accrued compensation and related benefits and accounts payable and the long-term portion of our restructuring accrual is included in other liabilities. Restructuring charges of $1.5 million and $1.2 million are included in research and development costs and expenses and general and administrative costs and expenses, respectively, for the six months ended June 30, 2022.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesWe have United States (“U.S.”) federal net operating loss and research and development tax credit carryforwards, as well as state and city net operating loss carryforwards, which may be used to reduce future taxable income and tax liabilities. We also have foreign net operating loss and tax credit carryforwards, and the foreign net operating loss carryforwards do not expire. Substantially all of our deferred tax assets have been fully offset by a valuation allowance due to our cumulative losses. The carrying value of our deferred tax assets and liabilities is determined by the enacted U.S. corporate income tax rate. Consequently, any changes in the U.S. corporate income tax rate impacts the carrying value of our deferred tax assets and liabilities. Also, there are significant limitations on our ability to utilize our net operating loss and tax credit carryforwards under Section 382 of the Internal Revenue Code of 1986, as amended.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsInterim CFOOn August 4, 2022, the Company entered into an agreement with Ankura Consulting Group, LLC (“Ankura”), and in connection with the engagement, the Company announced the appointment of Kasey Rosado as interim Chief Financial Officer of the Company effective July 29, 2022. In connection with the engagement of Ankura and the appointment of Ms. Rosado, the Company expects to incur expenses of approximately $0.1 million per month.

Accounting Standards Not Yet _2

Accounting Standards Not Yet Adopted (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial statements reflect all adjustments, consisting of normal recurring adjustments and disclosures that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim results are not necessarily indicative of results for a full year.
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Our critical accounting policies, estimates and assumptions are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is included in this Quarterly Report on Form 10-Q.
Recently Issued Accounting Standards	Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) . This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326): Effective Dates

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Instruments Excluded from Calculation of Diluted Net Loss Per Share	The following instruments were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Three months ended Six months ended 2022 2021 2022 2021 Stock-based awards 32,357,666 25,773,110 32,357,666 25,773,110 Healios warrants – see Note 8 10,000,000 — 10,000,000 — Total 42,357,666 25,773,110 42,357,666 25,773,110

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, net	For the periods ended Property and equipment consists of (in thousands): June 30, December 31, 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

Collaborative Arrangements an_2

Collaborative Arrangements and Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Contract Revenues Disaggregated by Timing of Revenue Recognition	The following table presents our contract revenues disaggregated by timing of revenue recognition (in thousands): Three months ended Three months ended Point in Over Time Point in Over Time Contract Revenue from Healios Service revenue $ — $ 2,316 $ — $ — Total disaggregated revenues $ — $ 2,316 $ — $ — Six months ended Six months ended Point in Over Time Point in Over Time Contract Revenue from Healios Service revenue $ — $ 5,228 $ — $ — Total disaggregated revenues $ — $ 5,228 $ — $ —

Restructuring Charges (Tables)

Restructuring Charges (Tables)	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Expenses	The following table sets forth certain details associated with the restructuring charges incurred in the second quarter of 2022 and the obligations recorded for the expenses associated with the Plan (in thousands). It is anticipated the Plan will be completed by mid-2023. 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

Background and Basis of Prese_2

Background and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments	1

Going Concern (Details)

Going Concern (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 13,378	$ 37,407

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Details)	Aug. 31, 2021 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares called by warrants (in shares)	10,000,000
Healios Framework Agreement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants outstanding (in shares)	2
Shares called by warrants (in shares)	10,000,000

Net Loss per Share - Instrument

Net Loss per Share - Instruments Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock-based awards (in shares)	42,357,666	25,773,110	42,357,666	25,773,110
Stock-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock-based awards (in shares)	32,357,666	25,773,110	32,357,666	25,773,110
Healios warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock-based awards (in shares)	10,000,000	0	10,000,000	0

Property and Equipment, net - S

Property and Equipment, net - Schedule of Property and Equipment, net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14,823	$ 13,810
Accumulated depreciation and amortization	(10,955)	(10,118)
Property and equipment, net	3,868	3,692
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,303	9,352
Office equipment and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,210	4,000
Equipment and leasehold improvements not yet in service
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,310	$ 458

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Impairment charge of equipment assets	$ 4,900		$ 4,931	$ 0
Accelerated depreciation	$ 400	$ 500

Collaborative Arrangements an_3

Collaborative Arrangements and Revenue Recognition - Additional Information (Details)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2021 USD ($) shares	Jun. 30, 2022 USD ($) performanceObligation	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) performanceObligation	Jun. 30, 2021 USD ($)	Dec. 31, 2017 milestone
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounts receivable from Healios		$ 600,000		$ 600,000
Shares called by warrants (in shares) | shares	10,000,000
Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounts receivable, payments due within period of invoicing		30 days		30 days
Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Accounts receivable, payments due within period of invoicing		45 days		45 days
Healios Framework Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Potential revenue from milestones	$ 3,000,000
Milestones obligated to pay		$ 1,100,000		$ 1,100,000
Warrants issued (in shares) | shares	2
Shares called by warrants (in shares) | shares	10,000,000
Number of material performance obligations | performanceObligation		1		1
Revenue recognized		$ 2,300,000
Revenue recognized from performance obligations satisfied in previous periods		0	$ 0
Unbilled accounts receivable		$ 0		$ 0
Healios
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue recognized				$ 2,800,000	$ 0
Healios | Regulatory and sales milestones
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of future milestones achieved | milestone						2

Collaborative Arrangements an_4

Collaborative Arrangements and Revenue Recognition - Schedule of Contract Revenues Disaggregated by Timing of Revenue Recognition (Details) - Healios - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Point in Time
Disaggregation of Revenue [Line Items]
Total disaggregated revenues	$ 0	$ 0	$ 0	$ 0
Point in Time | Service revenue
Disaggregation of Revenue [Line Items]
Total disaggregated revenues	0	0	0	0
Over Time
Disaggregation of Revenue [Line Items]
Total disaggregated revenues	2,316	0	5,228	0
Over Time | Service revenue
Disaggregation of Revenue [Line Items]
Total disaggregated revenues	$ 2,316	$ 0	$ 5,228	$ 0

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended
	Jun. 17, 2022	Feb. 14, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)			674,000
Restricted stock units granted (in shares)			738,338
Shares available for issuance (in shares)			4,935,412
Stock-based compensation expense			$ 1.9	$ 1.8
Unrecognized compensation cost of unvested stock awards			$ 7.7
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			50%
Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting period (in years)			2 years
Chief Executive Officer | The Inducement Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)		10,000,000
Award exercise price (in dollars per share)		$ 0.86
Award expiration period (in years)		10 years
Chief Executive Officer | The Inducement Award, Four-Year Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)		4,000,000
Awards vesting period (in years)		4 years
Chief Executive Officer | The Inducement Award, Four-Year Vesting | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25%
Chief Executive Officer | The Inducement Award, Four-Year Vesting | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vesting period (in years)		36 months
Chief Executive Officer | The Inducement Award, Performance Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)		6,000,000
Chief Operating Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	50,000
Restricted stock units granted (in shares)	33,333
2019 Equity And Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for equity incentive plan (in shares)					18,500,000
Shares of common stock outstanding (in shares)			21,620,166
Inducement Awards Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock outstanding (in shares)			10,737,500

Stockholders_ Equity and Warr_2

Stockholders’ Equity and Warrants (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	May 12, 2022	Aug. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	May 31, 2021
Class of Stock [Line Items]
Shares called by warrants (in shares)		10,000,000
Common stock, shares authorized (in shares)			600,000,000	600,000,000	600,000,000	300,000,000
Healios
Class of Stock [Line Items]
Ownership percentage in common stock for exercise cap to be triggered		19.90%
Warrant One
Class of Stock [Line Items]
Shares called by warrants (in shares)		3,000,000
Exercise price of warrant (in dollars per share)		$ 1.80
Exercise period (in days)		60 days
Warrant Two
Class of Stock [Line Items]
Shares called by warrants (in shares)		7,000,000
Exercise price of warrant (in dollars per share)		$ 2.40
Exercise period (in days)		60 days
Aspire Capital
Class of Stock [Line Items]
Equity purchase agreement, value	$ 100
Aspire Capital | Common Stock
Class of Stock [Line Items]
Issuance of common stock, new issues (in shares)			25,089,000	8,500,000
Sale of additional shares at an average price (in dollars per share)			$ 0.39	$ 1.58

Restructuring Charges - Additio

Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Percentage of reduction in workforce	70%
Restructuring charges		$ 2,715
Research and Development Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 1,500
General and Administrative Expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 1,200

Restructuring Charges - Schedul

Restructuring Charges - Schedule of Restructuring Reserve (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Accrual, beginning balance	$ 0
Charges	2,715
Cash payments	(290)
Non-Cash Transactions	0
Accrual, ending balance	2,425
Employee severance and benefits
Restructuring Reserve [Roll Forward]
Accrual, beginning balance	0
Charges	2,538
Cash payments	(290)
Non-Cash Transactions	0
Accrual, ending balance	2,248
Legal and professional fees
Restructuring Reserve [Roll Forward]
Accrual, beginning balance	0
Charges	162
Cash payments	0
Non-Cash Transactions	0
Accrual, ending balance	162
Other
Restructuring Reserve [Roll Forward]
Accrual, beginning balance	0
Charges	15
Cash payments	0
Non-Cash Transactions	0
Accrual, ending balance	$ 15

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ in Millions	Aug. 04, 2022 USD ($)
Chief Financial Officer | Subsequent Event
Subsequent Event [Line Items]
Expected compensation expense per month	$ 0.1