·

Atara reported a net loss of $5.9 million, or $4.20 per share, for the third quarter of 2014, compared to a net loss of $2.5 million, or $2.59 per share, for the third quarter of 2013.

·

Research and development expenses, including costs paid to Amgen, increased to $4.2 million for the third quarter of 2014, compared to $1.7 million for the third quarter of 2013, driven primarily by the option and related costs paid to Memorial Sloan Kettering Cancer Center in September 2014 and higher costs related to expanded clinical development activities and increased headcount.

·

General and administrative expenses increased to $1.7 million for the third quarter of 2014, compared to $0.9 million for the third quarter of 2013, primarily related to increased headcount and higher professional service fees.

·

Operating expenses as described above include non-cash stock-based compensation expense of $0.5 million for the third quarter of 2014, compared to $0.3 million for the third quarter of 2013.

·

As of September 30, 2014, Atara had approximately $51.7 million in cash and cash equivalents and short-term available-for-sale investments. This amount excludes $55.8 million of net proceeds from the sale of 5.8 million shares of common stock from Atara’s initial public offering in October 2014.

September 30,

December 31,

2014

2013

Assets

Current assets

Cash and cash equivalents

$

25,703

$

51,615

Short-term available-for-sale investments

25,996

—

Prepaid expenses and other current assets

323

193

Total current assets

52,022

51,808

Property and equipment, net

14

8

Other assets

2,084

12

Total assets

$

54,120

$

51,828

Liabilities, convertible preferred stock and stockholders’ deficit

Current liabilities:

Accounts payable

$

569

$

606

Accrued compensation

500

331

Income tax payable

63

155

Other accrued liabilities

1,280

432

Total current liabilities

2,412

1,524

Other long-term liabilities

165

230

Total liabilities

2,577

1,754

Commitments and contingencies (Note 5)

Series A convertible preferred stock—$0.0001 par value, liquidation preference of

   $20,088

19,909

19,909

Series A-1 convertible preferred stock—$0.0001 par value, liquidation preference

   of  $3,000

2,768

2,768

Series B convertible preferred stock—$0.0001 par value, liquidation preference of

   $52,000

51,895

38,414

Stockholders’ deficit

Common stock—$0.0001 par value, 12,003,891 and 1,509,712 shares issued and

   outstanding as of December 31, 2013 and September 30, 2014, respectively

—

1

Additional paid-in capital

7,344

2,200

Notes receivable from stockholder

-

(335

)

Accumulated other comprehensive loss

(11

)

—

Accumulated deficit

(30,362

)

(12,883

)

Total stockholders’ deficit

(23,029

)

(11,017

)

Total liabilities, convertible preferred stock and stockholders’ deficit

$

54,120

$

51,828

Three months ended

Nine months ended

September 30,

September 30,

2014

2013

2014

2013

Expenses:

Research and development

$

4,241

$

1,134

$

9,332

$

2,057

Research and development costs paid to

   Amgen

—

550

1,066

550

General and administrative

1,708

868

7,162

2,591

Total operating expenses

5,949

2,552

17,560

5,198

Loss from operations

(5,949

)

(2,552

)

(17,560

)

(5,198

)

Interest income

30

3

59

8

Loss before provision for income taxes

(5,919

)

(2,549

)

(17,501

)

(5,190

)

Provision (benefit) for income taxes

-

(13

)

(22

)

27

Net loss

$

(5,919

)

$

(2,536

)

$

(17,479

)

$

(5,217

)

Other comprehensive loss, net of tax:

Unrealized losses on investments

(11

)

—

(11

)

—

Other comprehensive loss

(11

)

—

(11

)

—

Comprehensive loss

$

(5,930

)

$

(2,536

)

$

(17,490

)

$

(5,217

)

Net loss per common share:

Basic and diluted net loss per common share

$

(4.20

)

$

(2.59

)

$

(13.07

)

$

(5.73

)

Weighted-average common shares outstanding - basic and diluted

1,410,507

977,778

1,337,501

910,839