10-Q

美國

證券交易委員會

華盛頓特區20549

表格 10-Q

(標一)


☒	根據1934年證券交易法第13或15(d)節的季度報告

截至季度結束日期的財務報告9月30日， 2024

或者


☐	根據1934年證券交易法第13或15(d)節的轉型報告書

過渡期從到

委員會文件號 001-40360

Mind Medicine (MindMed) 公司。

（註冊人的確切姓名如其章程所示）


不列顛哥倫比亞省，加拿大	98-1582438
（國家或其他管轄區的公司成立或組織）	（IRS僱主唯一識別號碼）
One World Trade Center, 8500套房紐約,紐約	10007
，（主要行政辦公地址）	(郵政編碼)

公司電話號碼，包括區號：（212) 220-6633

在法案第12(b)條的規定下注冊的證券：

    每一類的名稱

    交易
符號:

    在其上註冊的交易所的名稱

    普通股份，每股無面值

    MNMD

    納斯達克證券交易所 LLC
（納斯達克全球精選市場）

請在以下複選框中打勾，指示註冊人：(1)在前12個月(或註冊人被要求提交這些報告的更短期間內)已經提交了1934年證券交易法第13或15(d)條規定需要提交的所有報告；以及(2)在過去的90天內一直受到了此類文件提交要求的限制。Yes ☒ 沒有 ☐

請在以下複選框中打勾，指示註冊人是否已經電子提交了根據Regulation S-T規則405條(本章節的§232.405條)需要提交的所有互動數據文件在過去的12個月內(或註冊人被要求提交這些文件的更短期間內)。Yes ☒ 沒有 ☐

請勾選標記以說明註冊人是大型快速申報人、加速申報人、非加速申報人、較小的報告公司還是新興成長型公司。請查看《交易所法》第120億.2條中「大型快速申報人」、「加速申報人」、「較小的報告公司」和「新興成長型公司」的定義。


大型加速報告人	☐	加速文件提交人	☐

非加速文件提交人	☒	較小的報告公司	☒

新興成長公司	☒

如果是新興成長型企業，請勾選複選標記，表明註冊者已選擇不使用延長過渡期來符合根據證券交易法第13(a)條規定提供的任何新財務會計準則。 ☐

請在檢查標記處說明申報人是否爲外殼公司 (見交易所法案 Rule 12b-2 定義)。是☐ 沒有 ☒

正如《華盛頓郵報》今年早些時候所指出的那樣，數據中心在2022年消費的全國電力總量超過了4％。鑑於人工智能和各種數字創新的爆炸性需求，這並不令人驚訝。然而，這些技術對電網造成了巨大壓力。2024年10月28日，註冊人擁有 73,331,690 Common股股份。



第一部分	財務信息	4
項目1。	基本報表	4
	彙編的綜合資產負債表	4
	聯合綜合收益及損失簡明合併報表	5
	股東權益簡明合併報表	6
	簡明的綜合現金流量表	7
	簡明合併財務報表註釋	8
事項二	分銷計劃	18
第3項。	有關市場風險的定量和定性披露	26
事項4。	控制和程序	26

第II部分	其他信息	28

項目1。	法律訴訟	28
項目1A。	風險因素	28
事項二	未註冊的股票股權銷售和籌款用途	28
第3項。	對優先證券的違約	28
事項4。	礦山安全披露	28
項目5。	其他信息	28
項目6。	展示資料	29
簽名		30

有關前瞻性聲明之特別說明

本季度報告10-Q中包含有關我們和我們所在行業的前瞻性聲明，涉及重大風險和不確定性。除了本季度報告中所包含的歷史性陳述外，本季度報告中的所有其他陳述，包括有關我們未來業務、財務狀況、業務策略、計劃和管理層下一階段的目標的陳述，均爲前瞻性陳述。在某些情況下，您可以通過這些陳述中包含的諸如「預計」、「相信」、「思考」、「繼續」、「可能」、「估計」、「期望」、「打算」、「可能」、「計劃」、「潛在」、「預測」、「項目」、「應該」、「目標」、「將」或「將會」等字眼來識別前瞻性陳述，或這些詞的否定形式或其他類似的術語或表述方式。這些前瞻性陳述包括但不限於有關以下內容的陳述：

•

關於我們的研究項目MM120和MM402的時間、進展和結果，這兩種是我們專有的藥用優化形式麥角酸D酒石酸酯(LSD)和R(-)-MDMA(統稱爲「我們的首選藥品候選人」)以及其他藥品候選人(與我們的首選藥品候選人一起，稱爲「我們的藥品候選人」)的聲明，包括涉及試驗或研究啓動和完成的時間，以及相關的準備工作，試驗結果的可得性週期，以及我們的研究和開發項目;

•

我們對我們的調查性MM120產品候選者的成功依賴;

•

關於我們現金流的預期；

•

我們提議的MM120口服片在廣泛性焦慮障礙（「GAD」）的第三期臨床試驗計劃的啓動和數據可用性的協議和時機；

•

我們在重性抑鬱症（MDD）中，爲MM120提出第三期臨床方案的協議和時間安排，以及可用數據的時間安排；

•

監管申報和批准的時機、範圍或可能性，以及我們獲得和保持用於任何適應症的產品候選藥物的監管批准的能力。

•

關於我們的首選產品候選藥物，一旦獲批准並商業化，符合條件的患者群體規模的預期。

•

我們能夠識別第三方治療場所進行試驗，以及能夠識別和培訓適當的合格醫療保健專業人員（「HCPs」）來施行我們的治療；

•

我們實施業務模式和產品候選者的戰略計劃的能力;

•

我們有能力在目前的主要關注領域之外，發現我們領先的產品候選者的新適應症。

•

我們有能力識別、開發或收購數字技術，以提升我們對產品候選物的管理，如果獲批准並商業化；

•

我們能夠實現盈利並保持這樣的盈利能力；

•

我們的商業化、市場營銷、生產能力和策略；

•

如果我們的主要候選產品獲得批准並商業化，其定價、覆蓋和報銷將會如何。

•

我們的首席產品候選及控制物質，特別是臨床效用的市場接受率和水平；

•

未來對我們業務的投資，我們預期的資本支出以及我們對資本需求的估計；

•

我們建立或維護合作關係、戰略關係或獲得額外資金的能力。

•

我們對領先產品候選藥潛在益處的期望；

•

我們維護產品候選的有效專利權和其他知識產權保護的能力，以及防止競爭對手使用我們認為在成功開發和推廣我們的產品候選人所必需的技術；

•

侵犯或被指侵犯第三方知識產權；

•

美國，包括各州，加拿大，英國和其他司法管轄區的立法和監管發展；

•

我們財務報告內部控制的有效性；

•

激進股東針對我們的行動可能會造成破壞性和高昂的影響，並可能導致訴訟，對我們的業務和股票價格產生不利影響；

•

對我們的財務狀況和運營產生的全球經濟情況不良影響，包括公共衛生危機、地緣政治衝突、利率期貨波動、供應鏈中斷和通脹。

•

我們的貸款協議（如此處所定義）含有某些契約，可能會對我們的業務產生負面影響，如果發生違約事件，我們可能會被迫提前償還所有未還債務，可能在我們沒有足夠的資本滿足這一義務的時候償還。

•

對於我們的營業收入、費用和其他營運結果的期望；

•

我們的市場推廣成本和成功情況，以及我們推廣品牌的能力；

•

我們對關鍵人員的依賴以及我們識別、招聘和留住熟練人員的能力；

•

我們有效管理業務擴張的能力；和

•

我們與現有競爭對手和新市場進入者競爭的能力。

請勿將前瞻性聲明視為未來事件的預測。我們主要基於目前對未來可能影響我們業務、財務狀況和營運結果的事件和趨勢的期望和預測，對本季報告中包含的前瞻性聲明進行了製作。這些前瞻性聲明所描述事件的結果取決於風險、不確定因素和其他因素的影響，詳見本公司2023 年 2 月 28 日提交給美國證券交易委員會（“SEC”）的10-K表中披露的第I部分“風險因素”和本季報告的第II部分第1A項。此外，我們業務環境極度競爭且變化迅速，不斷出現新的風險和不確定因素。因此我們無法預測所有可能對本季報告中包含的前瞻性聲明產生影響的風險和不確定因素。前瞻性聲明中所反映的結果、事件和情況可能無法實現或發生，實際結果、事件或情況可能與前瞻性聲明中描述的有所差異。

此外，諸如「我們相信」等語句反映了我們對相關主題的信念和觀點。這些語句是基於本季度報告之發佈日期為止可得的資訊。儘管我們相信這些資訊為這些語句提供了合理的基礎，但這些資訊可能有所限制或不完整。我們的語句不應被理解為表明我們對所有相關信息已進行了全面的調查或審查。這些語句本質上是不確定的，投資者應當謹慎地不過度依賴這些語句。

本季報告所做之前瞻性陳述僅涉及資料陳述之日後發生的事件，我們不承諾對任何前瞻性陳述進行更新以反映本季報告之後的事件或情況或反映新情報或出現未預期的事件，除非法律要求，我們可能實際上未能實現向前看的陳述中披露的計劃、意圖或期望，您不應對我們的前瞻性陳述抱有不當的依賴，我們的前瞻性陳述不反映任何未來收購、合併、處置、合資或投資的潛在影響。

我們可能會透過我們的投資人關係網站（https://ir.mindmed.co/）向投資者發佈重要業務和財務訊息。因此，我們建議投資者和其他對我們公司感興趣的人查閱我們網站提供的信息，此外還應跟隨我們向證券交易委員會的報告、網絡廣播、新聞稿和電話會議。我們網站中包含或鏈接的信息並不是本季度報告的一部分。除非另有說明或上下文顯示，本季度報告中提到的“公司”、“MindMed”、“我們”、“我們的”均指Mind Medicine（MindMed）股份有限公司及其一致的子公司。

PARt I—財務資訊

項目1. 財務報表。財務報表。

心靈醫學（MindMed）股份有限公司。

縮表合併資產負債表

（以千為單位，股份數額除外）


	2024年9月30日（未經查核）			2023年12月31日
資產
流動資產:
現金及現金等價物	$	295,284		$	99,704
預付及其他流動資產		4,074			4,168
全部流動資產		299,358			103,872
商譽		19,918			19,918
無形資產，扣除累計攤銷		—			527
其他非流動資產		493			224
資產總額	$	319,769		$	124,541

負債及股東權益
流動負債：
應付賬款	$	2,149		$	4,136
應計費用		8,796			11,634
2022 美元指數融資認股權證		22,320			16,476
流動負債合計		33,265			32,246
長期授信設施		24,311			14,129
其他長期負債		—			32
總負債		57,576			46,407

合約和可能負債（註9）
股東權益：
普通股，無，無限制的截至2024年9月30日和2023年12月31日，授權日期為。 81,590,491以及 41,101,303發行日期為2024年9月30日和2023年12月31日，以及尚未發行的。		—			—
資本公積額額外增資		625,510			367,991
其他綜合收益累計額		821			343
累積虧損		(364,138	)		(290,200	)
股東權益總額		262,193			78,134
總負債及股東權益	$	319,769		$	124,541

請參閱未經審計的簡明合併基本報表所附註釋。

心靈醫學（MindMed）股份有限公司。

綜合損益總表摘要綜合損失摘要

(未經查核)

(以千為單位，股份和每股數據除外)


	結束於三個月的期間九月三十日，						九個月結束了九月三十日，
	2024			2023			2024			2023
營業費用：
研發費用	$	17,188		$	13,203		$	43,538		$	40,578
總務與行政		7,604			8,413			27,916			31,083
營業費用總計		24,792			21,616			71,454			71,661
營運虧損		(24,792	)		(21,616	)		(71,454	)		(71,661	)
其他收益/(費用):
利息收入		3,507			1,491			8,279			4,240
利息費用		(727	)		(328	)		(1,627	)		(481	)
匯率期貨損失，淨額		(32	)		(439	)		(589	)		(244	)
2022年美元指數定向增發權益公允價值之變動		8,360			3,020			(11,088	)		(3,671	)
彌補應付出資款項之收益		—			—			2,541			—
其他費用		—			(51	)		—			(51	)
其他收益/(費用)，淨額		11,108			3,693			(2,484	)		(207	)
淨損失		(13,684	)		(17,923	)		(73,938	)		(71,868	)
其他全面損失
匯率期貨翻譯的(虧損)/收益		(12	)		415			478			150
全面損失	$	(13,696	)	$	(17,508	)	$	(73,460	)	$	(71,718	)
每股普通股基本淨損失	$	(0.18	)	$	(0.45	)	$	(1.12	)	$	(1.85	)
每股普通股稀釋淨損失	$	(0.27	)	$	(0.45	)	$	(1.12	)	$	(1.85	)
基本加權平均普通股份		77,909,441			39,720,007			65,938,025			38,798,374
稀釋加權平均普通股份		80,238,688			39,720,007			65,938,025			38,798,374

請參閱未經審計的簡明合併基本報表所附註釋。

心靈醫學（MindMed）股份有限公司。

縮短的合併財務報表股東權益

(未經查核)

（以千為單位，股份數額除外）


	公司
	股份		金額		資本公積金			累積OCI		累積虧損			總計

2023年12月31日結餘		41,101,303	$	—	$	367,991		$	343	$	(290,200	)	$	78,134
發行普通股和warrants，扣除股份發行成本		38,624,064		—		234,267			—		—			234,267
對應員工限制股份單位獎励計劃行使，扣除支付稅款後發行普通股		650,801		—		(54	)		—		—			(54	)
行使2022年美元融資認股權		1,042,523		—		9,675			—		—			9,675
以股份為基礎之報酬支出		—		—		12,960			—		—			12,960
行使股票期權，扣除用於繳稅的期權		171,800		—		671			—		—			671
綜合損益淨額		—		—		—			478		(73,938	)		(73,460	)

2024年9月30日結餘		81,590,491	$	—	$	625,510		$	821	$	(364,138	)	$	262,193

2022年12月31日的結存		37,979,136	$	—	$	344,758		$	627	$	(194,468	)	$	150,917
發行普通股，扣除股份發行成本		1,402,598		—		4,943			—		—			4,943
執行2022美元指數融資warrants		27,000		—		178			—		—			178
行使股票期權		13,333		—		49			—		—			49
解除受限股份獎勵計劃		672,641		—		—			—		—			—
以股份為基礎之報酬支出		—		—		11,610			—		—			11,610
綜合損益淨額		—		—		—			150		(71,868	)		(71,718	)
2023年9月30日的餘額		40,094,708	$	—	$	361,538		$	777	$	(266,336	)	$	95,979


	Common Shares
	Shares		Amount		Additional Paid-In Capital		Accumulated OCI			Accumulated Deficit			Total

Balance, June 30, 2024		72,075,076	$	—	$	551,668	$	833		$	(350,454	)	$	202,047
Issuance of common shares and warrants, net of share issuance costs		9,285,511		—		69,969		—			—			69,969
Issuance of common shares upon settlement of restricted share unit awards, net of shares withheld for tax		205,999		—		—		—			—			—
Stock-based compensation expense		—		—		3,841		—			—			3,841
Exercise of stock options, net of options withheld for tax		23,905		—		32		—			—			32
Net loss and comprehensive loss		—		—		—		(12	)		(13,684	)		(13,696	)
Balance, September 30, 2024		81,590,491		—		625,510		821			(364,138	)		262,193

Balance, June 30, 2023		38,807,159	$	—	$	354,023	$	362		$	(248,413	)	$	105,972
Issuance of common shares, net of share issuance costs		800,700		—		3,086		—			—			3,086
Settlement of restricted share unit awards		446,516		—		—		—			—			—
Exercise of 2022 USD Financing Warrants		27,000		—		178		—			—			178
Exercise of stock options		13,333		—		49		—			—			49
Stock-based compensation expense		—		—		4,202		—			—			4,202
Net loss and comprehensive loss		—		—		—		415			(17,923	)		(17,508	)
Balance, September 30, 2023		40,094,708	$	—	$	361,538	$	777		$	(266,336	)	$	95,979

See accompanying notes to unaudited condensed consolidated financial statements.

Mind Medicine (MindMed) Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)


	Nine Months Ended September 30,
	2024			2023
Cash flows from operating activities
Net loss	$	(73,938	)	$	(71,868	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		13,468			11,818
Amortization of intangible assets		527			2,372
Change in fair value of 2022 USD Financing Warrants		11,088			3,671
Gain on extinguishment of contribution payable		(2,541	)		—
Unrealized foreign exchange		509			—
Other non-cash adjustments		228			128
Changes in operating assets and liabilities:
Prepaid and other current assets		(532	)		1,575
Other noncurrent assets		115			60
Accounts payable		(1,987	)		5,535
Accrued expenses		(683	)		3,742
Other liabilities, long-term		(32	)		(835	)
Net cash used in operating activities		(53,778	)		(43,802	)
Cash flows from financing activities
Proceeds from the August Offering		74,999			—
Payment of issuance costs from the August Offering		(5,030	)		—
Proceeds from the March Offering and Private Placement		175,000			—
Payment of issuance costs from the March Offering and Private Placement		(11,060	)		—
Proceeds from credit facility		10,000			15,000
Payment of credit facility issuance costs		(128	)		(802	)
Proceeds from the 2022 ATM net of issuance costs		984			4,943
Payment of deferred financing fees related to 2024 ATM		(424	)		—
Proceeds from exercise of 2022 USD Financing Warrants		4,431			114
Proceeds from exercise of options		671			—
Withholding taxes paid on vested RSUs		(54	)		—
Net cash provided by financing activities		249,389			19,255
Effect of exchange rate changes on cash		(31	)		104
Net increase/(decrease) in cash and cash equivalents		195,580			(24,443	)
Cash and cash equivalents, beginning of period		99,704			142,142
Cash and cash equivalents, end of period	$	295,284		$	117,699

Supplemental Cash Flow Information
Cash paid for interest	$	1,541		$	100
Supplemental Noncash Disclosures
Conversion of 2022 USD Financing Warrants to common shares upon exercise of warrants	$	5,244		$	64
Deferred financing fees related to 2024 ATM included in accrued expenses	$	6		$	—
Reclass of deferred financing fees related to 2022 ATM to additional paid-in capital	$	332		$	—
Unpaid issuance costs for credit facility	$	—		$	170
Proceeds from exercise of options in prepaid and other current assets	$	—		$	49

See accompanying notes to unaudited condensed consolidated financial statements.

Mind Medicine (MindMed) Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

(In thousands, except share and per share amounts)

DESCRIPTION OF THE BUSINESS

Mind Medicine (MindMed) Inc. (the “Company” or “MindMed”) is incorporated under the laws of the Province of British Columbia. Its wholly owned subsidiaries, Mind Medicine, Inc. (“MindMed US”), HealthMode, Inc., MindMed Pty Ltd., and MindMed GmbH are incorporated in Delaware, Delaware, Australia and Switzerland respectively. MindMed US was incorporated on May 30, 2019.

MindMed is a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders. The Company’s mission is to be the global leader in the development and delivery of treatments for brain health disorders that unlock new opportunities to improve patient outcomes. The Company is developing a pipeline of innovative product candidates, with and without acute perceptual effects, targeting neurotransmitter pathways that play key roles in brain health disorders. This specifically includes pharmaceutically optimized product candidates derived from the psychedelic and empathogen drug classes, including MM120 and MM402, the Company’s lead product candidates.

As of September 30, 2024, the Company had an accumulated deficit of $364.1 million. Through September 30, 2024, the Company’s financial support has primarily been provided by proceeds from the issuance of its common shares, no par value per share (“Common Shares”), warrants to purchase Common Shares, and the Company’s credit facility.

As the Company continues its expansion, it may seek additional financing and/or strategic investments; however, there can be no assurance that any additional financing or strategic investments will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does not obtain additional funding, it will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on the Company’s ability to achieve its intended business objectives. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if it were unable to continue as a going concern. Management believes that it has sufficient working capital on hand to fund operations through at least the next twelve months from the date of the issuance of these financial statements.

Emerging Growth Company Status

The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use the extended transition period for complying with new or revised accounting standards, and as a result of this election, the unaudited condensed consolidated financial statements may not be comparable to companies that comply with public company Financial Accounting Standards Board (“FASB”) standards’ effective dates. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of the first sale of its common equity securities under an effective Securities Act of 1933 (the "Securities Act") registration statement or such earlier time that it is no longer an emerging growth company.

In the opinion of management, these unaudited interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of our financial position and results of operations and cash flows for the periods presented.

BASIS OF pRESENTATION AND Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2023, which are included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC on February 28, 2024 (the “2023 Annual Report”). The Company’s significant accounting policies are disclosed in the audited financial statements for the periods ended December 31, 2023 and 2022, included in the 2023 Annual Report. Since the date of those financial statements, there have been no changes to the Company's significant accounting policies.

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification and as amended by Accounting Standards Updates of FASB.

The preparation of financial statements in conformity with U.S. GAAP requires management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates under different assumptions or conditions.

Intercompany balances and transactions, and any unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the unaudited condensed consolidated financial statements.

Foreign Currency

Prior to April 1, 2024, the Company’s functional currency was the Canadian dollar (“CAD”). Translation gains and losses from the application of the U.S. dollar (“USD”) as the reporting currency during the period that the Canadian dollar was the functional currency were included as part of cumulative currency translation adjustment, which is reported as a component of shareholders’ equity as accumulated other comprehensive income.

Following the Company’s voluntary delisting from Cboe Canada in April 2024, the Company reassessed its functional currency and determined that, as of April 1, 2024, its functional currency had changed from the CAD to the USD. The Company's analysis included various factors, including: the Company’s cash flows and expenses denominated primarily in USD, and the primary market for the Company’s Common Shares trading in USD. The change in functional currency was accounted for prospectively from April 1, 2024, and the unaudited condensed consolidated financial statements prior to and including the period ended March 31, 2024 were not restated for the change in functional currency.

For periods commencing April 1, 2024, monetary assets and liabilities denominated in currencies other than USD are remeasured at period-end using the period-end exchange rate. Opening balances related to non-monetary assets and liabilities are based on prior period translated amounts, and non-monetary assets acquired, and non-monetary liabilities incurred after April 1, 2024, are translated at the approximate exchange rate prevailing at the date of the transaction. Income and expense accounts are translated at the average rates in effect during the fiscal year. Foreign exchange gains and losses are included in the unaudited condensed consolidated statements of operations and comprehensive loss.

Cash and Cash Equivalents

The Company considers all investments with an original maturity date at the time of purchase of three months or less to be cash and cash equivalents. As of September 30, 2024, the Company’s cash equivalents consisted of U.S. government money market funds at a high-credit quality and federally insured financial institution. The Company’s accounts, at times, may exceed federally insured limits. The Company had cash equivalents of $293.3 million as of September 30, 2024, and $96.7 million as of December 31, 2023.

Net Loss per Share

For the three-month period ended September 30, 2024, the Company determined that the 2022 USD Financing Warrants had a dilutive impact to the calculation of net loss per share. As a result, the Company calculated diluted net loss per Common Share for the three months ended September 30, 2024 as follows:


	Three Months Ended September 30,
	2024
Numerator:
Net loss attributable to common shareholders, basic	$	(13,684	)
Change in fair value of 2022 USD Financing Warrants		(8,360	)
Net loss attributable to common shareholders, diluted	$	(22,044	)

Denominator:
Weighted-average shares used in computing net loss per share attributable to common shareholders, basic		77,909,441
Incremental shares from 2022 USD Financing Warrants		2,329,247
Weighted-average shares used in computing net loss per share attributable to common shareholders, diluted		80,238,688

The following potentially dilutive securities have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Options issued and outstanding under stock option plan		3,698,252		2,234,288		3,698,252		2,234,288
Restricted Share Units		1,552,862		2,524,721		1,552,862		2,524,721
CAD Compensation Warrants		—		125,890		—		125,890
CAD Financing Warrants		—		1,286,282		—		1,286,282
Conversion Shares		997,506		—		997,506		—
2022 USD Financing Warrants		—		7,031,823		5,989,300		7,031,823
Estimated shares issuable under the ESPP		37,370		—		37,370		—
Total		6,285,990		13,203,004		12,275,290		13,203,004

Recently Issued Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position, results of operations, or cash flows upon adoption.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within the segment measure of profit or loss. This guidance will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company does not expect implementation of the new guidance to have a material impact on its consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09"). ASU 2023-09 requires annual disclosures of specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold and a disaggregation of income taxes paid, net of refunds. ASU 2023-09 also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. ASU 2023-09 is effective for the annual reporting periods in fiscal years beginning after December 31, 2024. Early adoption is permitted. ASU 2023-09 should be applied prospectively. Retrospective adoption is permitted. The Company is currently assessing the impact this standard will have on the Company’s consolidated financial statements.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 (in thousands), and the fair value hierarchy of the valuation techniques utilized. The Company classifies its assets and liabilities as either short- or long-term based on maturity and anticipated realization dates.


	September 30, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents	$	293,259	$	—	$	—	$	293,259
Financial liabilities:
Directors' Deferred Share Unit Liability	$	878	$	—	$	—	$	878
2022 USD Financing Warrant Liability	$	—	$	—	$	22,320	$	22,320
	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash equivalents	$	96,682	$	—	$	—	$	96,682
Financial liabilities:
Directors' Deferred Share Unit Liability	$	387	$	—	$	—	$	387
2022 USD Financing Warrant Liability	$	—	$	—	$	16,476	$	16,476

There were no transfers into or out of Level 1, Level 2, or Level 3 during the nine months ended September 30, 2024 and the year ended December 31, 2023.

The fair value of the warrant liability is measured at fair value on a recurring basis. The warrants to purchase Common Shares issued in our underwritten public offering that closed on September 30, 2022 (the “2022 USD Financing Warrants”) are classified as Level 3 in the fair value hierarchy and are determined using the Black-Scholes option pricing model using the following assumptions:


	As of September 30, 2024	As of December 31, 2023
Share price	$5.69	$3.66
Expected volatility	91.77%	94.72%
Risk-free rate	3.52%	3.87%
Expected life	3.00 years	3.75 years

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

During the nine months ended September 30, 2024, the Company has made no additions to its outstanding goodwill. There were no triggering events identified, no indication of impairment of the Company’s goodwill and long-lived assets, and no impairment charges recorded during the three and nine months ended September 30, 2024 and 2023, respectively.

Intangible assets, net

As of December 31, 2023, the Company’s developed technology intangible assets had a gross carrying value of $9.5 million, accumulated amortization of $9.0 million, and a net carrying value of $0.5 million. The Company's developed technology intangible assets were fully amortized as of March 31, 2024.

Amortization expense included in research and development expense was $0.5 million and $2.4 million for the nine months ended September 30, 2024 and 2023, respectively, and $0 and $0.8 million for the three months ended September 30, 2024 and 2023, respectively.

ACCRUED EXPENSES

At September 30, 2024 and December 31, 2023, accrued expenses consisted of the following (in thousands):


	September 30, 2024		December 31, 2023
Accrued compensation	$	3,839	$	4,139
Accrued clinical and manufacturing costs		2,458		1,884
Professional services		1,310		2,022
Directors' Deferred Share Unit Liability		878		387
Other accruals		311		361
Contribution payable		—		2,841
Total accrued expenses	$	8,796	$	11,634

In June 2024, the Company made a lump sum payment of $0.3 million in full satisfaction of its remaining obligations of the contribution payable liability. As a result, both parties were subsequently released from any further commitments from the agreement. The difference between the fair value of the lump sum payment of $0.3 million, and the carrying value of the contribution payable prior to the settlement of $2.8 million, resulted in a gain on extinguishment of $2.5 million recognized by the Company in the unaudited condensed consolidated statements of operations and comprehensive loss during the nine months ended September 30, 2024.

SHAREHOLDERS’ EQUITY

Common Shares

The Company is authorized to issue an unlimited number of Common Shares, which have no par value. As of September 30, 2024, the Company had 81,590,491 Common Shares issued and outstanding.

At-The-Market Facilities

2022 ATM

On May 4, 2022, the Company filed a shelf registration statement on Form S-3 (the “2022 Registration Statement”), as well as an accompanying prospectus supplement ("Prior ATM Prospectus"). In connection with the filing of the 2022 Registration Statement, the Company also entered into a sales agreement (the “Prior Sales Agreement”) with Cantor Fitzgerald & Co. and Oppenheimer & Co. Inc. as sales agents (together, the “Prior Agents”), pursuant to which the Company could issue and sell Common Shares for an aggregate offering price of up to $100.0 million in accordance with the Prior ATM Prospectus under an at-the-market offering program (the “2022 ATM”). Pursuant to the 2022 ATM, the Company paid the Prior Agents a commission rate equal to 3.0% of the gross proceeds from the sale of any Common Shares. The Company was not obligated to make any sales of its Common Shares under the 2022 ATM. During the nine months ended September 30, 2024, the Company sold 171,886 Common Shares for net proceeds of $0.7 million under the 2022 ATM. As of March 7, 2024, the Company had raised an aggregate of $40.9 million under the 2022 ATM and had the remaining availability of $59.1 million. On March 7, 2024, the Company announced that it had delivered written notice to the Prior Agents that it was suspending and terminating the 2022 ATM prospectus, dated May 16, 2022. On May 28, 2024, the Company delivered written notice to the Prior Agents that it was terminating the Prior Sales Agreement.

2024 ATM

On June 28, 2024, the Company filed a shelf registration statement on Form S-3 (the “2024 Registration Statement”), as well as an accompanying prospectus supplement (“New ATM Prospectus”). In connection with the filing of the 2024 Registration Statement and the New ATM Prospectus, the Company entered into a sales agreement (the "Sales Agreement") with Leerink Partners LLC (the “Agent”) pursuant to which the Company may issue and sell from time to time Common Shares for an aggregate offering price of up to $150.0 million in accordance with the New ATM Prospectus under an at-the-market offering program (the "2024 ATM"). Pursuant to the 2024 ATM, the Company will pay the Sales Agent a commission rate of up to 3.0% of the gross proceeds from the sale of any Common Shares. The Company is not obligated to make any sales of its Common Shares under the 2024 ATM. The Company has not sold any Common Shares under the 2024 ATM as of September 30, 2024.

The March Offering and Private Placement

On March 7, 2024, the Company entered into an underwriting agreement with Leerink Partners LLC and Cantor Fitzgerald & Co., as representatives of the underwriters named therein, in connection with the issuance and sale by the Company in an underwritten offering (the “March Offering”) of 16,666,667 Common Shares (the “Offering Shares”), at an offering price of $6.00 per Offering Share, less underwriting discounts and commissions.

The net proceeds to the Company from the March Offering were $93.5 million, after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company.

Also on March 7, 2024, the Company entered into a securities purchase agreement with certain investors, pursuant to which the investors agreed to purchase, and the Company agreed to sell 12,500,000 Common Shares (the “Private Placement Shares”), at a price of $6.00 per Private Placement Share, in a private placement transaction (the “Private Placement”).

The net proceeds to the Company from the Private Placement were $70.1 million, after deducting fees and expenses payable by the Company.

The Company intends to use the net proceeds from the March Offering and the Private Placement for (i) the research and development of the Company’s product candidates and (ii) working capital and general corporate purposes.

The March Offering and the Private Placement both closed on March 11, 2024.

The August Offering

On August 9, 2024, the Company entered into an underwriting agreement with Leerink Partners LLC and Evercore Group L.L.C., as representatives of the several underwriters named therein, in connection with an underwritten public offering (the “August Offering”) of (i) 9,285,511 Common Shares (the “Shares”), and (ii) to certain investors, pre-funded warrants (the “Pre-Funded Warrants”) to purchase 1,428,775 Common Shares (the "Pre-Funded Warrant Shares"). The offering price for the Shares was $7.00 per share, less underwriting discounts and commissions. The offering price for the Pre-Funded Warrants was $6.999 per Pre-Funded Warrant, which represents the per share public offering price for the Shares less a $0.001 per share exercise price for each such Pre-Funded Warrant.

The net proceeds to the Company from the August Offering were approximately $70.0 million, after deducting underwriting discounts and commissions and other offering expenses payable by the Company. The August Offering closed on August 12, 2024.

The Company intends to use the net proceeds from the August Offering to fund the research and development of its product candidates and for working capital and general corporate purposes.

The Pre-Funded Warrants are exercisable at any time after the date of issuance. The exercise price and the number of Pre-Funded Warrant Shares are subject to appropriate adjustment in the event of certain share dividends and distributions, share splits, share combinations, reclassifications or similar events affecting the Common Shares as well as upon any distribution of assets, including cash, securities or other property, to the Company’s shareholders. The Pre-Funded Warrants will not expire and are exercisable in cash or by means of a cashless exercise. A holder of Pre-Funded Warrants may not exercise such Pre-Funded Warrants if the aggregate number of Common Shares beneficially owned by such holder, together with its affiliates, would exceed more than 4.99% or 9.99% (at the initial election of the holder) of the number of Common Shares outstanding following such exercise, as such percentage ownership is determined in accordance with the terms of the Pre-Funded Warrants. A holder of Pre-Funded Warrants may increase or decrease this percentage not in excess of 19.99% by providing at least 61 days’ prior notice to the Company. As of September 30, 2024, there were no exercises of the Pre-Funded Warrants.

WARRANTS

CAD Financing Warrants and CAD Compensation Warrants

Between 2020 through 2021, in conjunction with equity offerings, the Company issued units at varying prices per unit in CAD, with each unit comprised of one Common Share and one-half of one Common Share financing warrant (each whole warrant, a “CAD Financing Warrant”). The Company also issued compensation warrants to its underwriters (the “CAD Compensation Warrants”). All CAD Financing Warrants and the CAD Compensation Warrants expired as of March 9, 2024.

2022 USD Financing Warrants

On September 30, 2022, the Company closed an underwritten public offering of 7,058,823 Common Shares and accompanying 2022 USD Financing Warrants to purchase 7,058,823 Common Shares. Each 2022 USD Financing Warrant is immediately exercisable for one Common Share at an initial exercise price of $4.25 per Common Share, subject to certain adjustments, and will expire on September 30, 2027.

The below table represents the activity associated with the Company's 2022 USD Financing Warrants for the nine months ended September 30, 2024:


	2022 USD Financing Warrants
Balance at December 31, 2023		7,031,823
Exercised		(1,042,523	)
Expired		—
Balance at September 30, 2024		5,989,300

Under the guidance in ASC 815-40, the Company's 2022 USD Financing Warrants do not meet the criteria for equity treatment. Therefore, the Company accounts for the 2022 USD Financing Warrants as liabilities and recognized them at fair value upon issuance and adjusts them to fair value at the end of each reporting period. Any change in fair value is recognized on the condensed consolidated statements of operations and comprehensive loss.

The below table summarizes the activity of the outstanding liability for the 2022 USD Financing Warrants for the nine months ended September 30, 2024 (in thousands):


	As of September 30, 2024
Balance at December 31, 2023	$	16,476
Warrant exercise		(5,244	)
Change in fair value of the warrant liability		11,088
Balance at September 30, 2024	$	22,320

STOCK-BASED COMPENSATION

Stock Incentive Plans

Effective March 7, 2023, the Company amended the definitions of “Fair Market Value” and “Market Value” under the MindMed Stock Option Plan (the “Stock Option Plan”) and the Performance and Restricted Share Unit Plan (the “RSU Plan”), respectively, to be based upon the closing price of the Company's Common Shares as traded on the Nasdaq Stock Market on the last trading day on which Common Shares traded prior to the day on which an equity award is granted (the “Amendments”). This change is only applicable for equity compensation awards granted subsequent to the Amendments. Accordingly, stock options granted after March 7, 2023 ("USD Options") are denominated in USD, and the grant date fair value of restricted share units granted after March 7, 2023 ("USD RSUs") is denominated in USD. The fair value of both USD Options and USD RSUs is based upon the closing price of the Company's Common Shares as traded on the Nasdaq Stock Market.

As of September 30, 2024, in conjunction with the voluntary Cboe Canada delisting on April 1, 2024, all of the Company's Common Shares are only traded on the Nasdaq Stock Market. All equity awards have their exercise prices denominated in USD based upon the USD value on the day on which the equity award was granted.

Stock Options

On February 27, 2020, the Company adopted the Stock Option Plan to advance the interests of the Company by providing employees, contractors and directors of the Company a performance incentive for continued and improved service with the Company. The Stock Option Plan sets out the framework for determining eligibility as well as the terms of any stock-based compensation granted. The Stock Option Plan was approved by the shareholders as part of the terms of an arrangement agreement (the “Arrangement”) entered into by the Company on October 15, 2019, in connection with the completion of its reverse acquisition, which completed on February 27, 2020. The Company is authorized to issue such number of stock options equal to 15% of the Company’s issued and outstanding Common Shares under the terms of the Stock Option Plan, together with Common Shares that are issuable pursuant to outstanding awards or grants under any other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares, including the RSU Plan and ESPP.

The following table summarizes the Company’s stock option activity:


	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Options outstanding at December 31, 2023		2,161,734		$	18.67		—	$	—
Issued		2,068,580			5.51		—		—
Exercised		(204,395	)		4.24		—		—
Forfeited		(300,059	)		7.24		—		—
Expired		(27,608	)		18.60		—		—
Options outstanding at September 30, 2024		3,698,252		$	13.04		6.3	$	1,685,167
Options vested and exercisable at September 30, 2024		1,671,885		$	19.30		3.7	$	633,304

The expense recognized related to stock options was $1.9 million and $1.7 million for the three months ended September 30, 2024 and 2023, respectively, and $6.2 million and $5.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Restricted Share Units

The Company adopted the RSU Plan to advance the interests of the Company by providing employees, contractors and directors of the Company a performance incentive for continued and improved service with the Company. The RSU Plan sets out the framework for determining eligibility as well as the terms of any stock-based compensation granted. The RSU Plan was approved by the shareholders as part of the Arrangement. The Company is authorized to issue such number of RSUs equal to 15% of the Company’s issued and outstanding Common Shares under the terms of the RSU Plan, together with Common Shares that are issuable pursuant to outstanding awards or grants under any other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares, including the Option Plan and ESPP. The fair value has been estimated based on the closing price of the Common Shares on the day prior to the grant.


	Number of RSUs			Weighted Average Grant Date Fair Value
Balance at December 31, 2023		2,288,726		$	7.20
Granted		216,800			7.99
Vested and issued		(651,031	)		9.58
Cancelled		(301,633	)		5.48
Balance at September 30, 2024		1,552,862		$	6.65

The expense recognized related to RSUs was $2.0 million and $2.5 million for the three months ended September 30, 2024 and 2023, respectively, and $6.8 million and $6.6 million for the nine months ended September 30, 2024 and 2023, respectively.

Directors' Deferred Share Unit Plan

On April 16, 2021, the Company adopted the MindMed Director's Deferred Share Unit Plan (the "DDSU Plan"). The DDSU Plan sets out a framework to grant non-executive directors deferred share units (“DDSUs”) which are cash settled awards. Effective June 8, 2023, the Company amended the definition of “Fair Market Value” under the DDSU Plan to be based upon the volume weighted average trading price of the Company’s Common Shares as traded on the Nasdaq Stock Market for the five business days on which Common Shares are traded on Nasdaq immediately preceding the applicable date. This change is only applicable for DDSUs granted subsequent to June 8, 2023. Accordingly, DDSUs granted after June 8, 2023 are denominated in USD. The DDSUs generally vest ratably over twelve months after grant and are settled within 90 days of the date the director ceases service to the Company.

For the nine months ended September 30, 2024, stock-based compensation expense of $0.5 million was recognized relating to the revaluation of the vested DDSUs, recorded in general and administrative expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. The Company recognized a decrease of stock-based compensation expense of $0.1 million relating to the revaluation of the vested DDSUs for the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company did not issue any additional DDSUs. There were 148,729 DDSUs vested as of September 30, 2024. The liability associated with the outstanding vested DDSU’s was $0.9 million as of September 30, 2024, and was recorded to accrued expenses in the accompanying unaudited condensed consolidated balance sheets.

Employee Share Purchase Plan

On April 16, 2024, the Company’s Board of Directors approved the Mind Medicine (MindMed) Inc. Employee Share Purchase Plan (the “ESPP”), subject to its approval by the Company’s shareholders. On June 10, 2024, the Company's shareholders approved the ESPP at the Company’s 2024 Annual General and Special Meeting of Shareholders. A total of 750,000 Common Shares were reserved for future issuance under the ESPP.

As of August 15, 2024, the Company commenced the first offering under the ESPP. The fair value of Common Shares to be issued under the ESPP was estimated using the following assumptions:


		Three and Nine Months Ended September 30, 2024
Expected term		0.5 years
Expected volatility		100.78%
Risk-free rate		5.04%
Weighted average grant date fair value per share		$2.79

Stock-based Compensation Expense

Stock-based compensation expense for all equity arrangements for the three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Research and development	$	1,110	$	2,023	$	4,747	$	5,600
General and administrative		2,660		2,203		8,721		6,218
Total share-based compensation expense	$	3,770	$	4,226	$	13,468	$	11,818

As of September 30, 2024, there was approximately $11.7 million of total unrecognized stock-based compensation expense related to unvested options granted to employees under the Stock Option Plan that is expected to be recognized over a weighted average period of 2.4 years. As of September 30, 2024, there was approximately $9.4 million of total unrecognized stock-based compensation expense related to RSUs granted to employees under the RSU Plan that is expected to be recognized over a weighted average period of 2.4 years.

COMMITMENTS AND CONTINGENCIES

As of September 30, 2024, the Company had obligations to make future payments, representing significant research and development contracts and other commitments that are known and committed in the amount of approximately $70.2 million. Most of these agreements are cancelable by the Company with notice. These commitments include agreements related to the conduct of the Company's clinical trials, sponsored research, manufacturing and preclinical studies.

The Company enters into research, development and license agreements in the ordinary course of business where the Company receives research services and rights to proprietary technologies. Milestone and royalty payments that may become due under various agreements are dependent on, among other factors, clinical trials, regulatory approvals and ultimately the successful development of a new drug, the outcome and timing of which are uncertain.

The Company periodically enters into research and license agreements with third parties that include indemnification provisions customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of claims arising from research and development activities undertaken by or on behalf of the Company. In some cases, the maximum potential amount of future payments that could be required under these indemnification provisions could be unlimited. These indemnification provisions generally survive termination of the underlying agreement. The nature of the indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay. Historically, the Company has not made any indemnification payments under such agreements and no amount has been accrued in the unaudited condensed consolidated financial statements with respect to these indemnification obligations.

10.

CREDIT FACILITY

On August 11, 2023 (the “Closing Date”), the Company and certain of its subsidiaries party thereto, as co-borrowers (together

with the Company, the “Borrowers”) entered into a Loan and Security Agreement (the “Loan Agreement”) with K2 HealthVentures LLC (“K2HV”), as administrative agent and Canadian collateral agent for lenders thereunder (K2HV, together with any other lender from time to time, the "Lenders"), and Ankura Trust Company, LLC, as collateral trustee for the Lenders. The Loan Agreement provides for up to an aggregate principal amount of $50.0 million in term loans (the “Term Loan”) consisting of a first tranche term loan of $15.0 million funded on the Closing Date, subsequent tranches of term loans totaling $20.0 million to be funded upon the achievement of certain time-based, clinical and regulatory milestones, and an additional tranche term loan of up to $15.0 million upon the Company’s request, subject to review by the Lenders of certain information from the Company and discretionary approval by the Lenders. On the Closing Date, the Company paid a facility fee of $0.3 million to K2HV. The second milestone-based tranche of $10.0 million was achieved and funded in the second quarter of 2024.

The Term Loan matures on August 1, 2027, and the obligations of the Company under the Loan Agreement are secured by substantially all of the assets of the Company, excluding intellectual property.

The Term Loan bears a variable interest rate equal to the greater of (i) 10.95% and (ii) the sum of (a) the prime rate as reported in The Wall Street Journal plus (b) 2.95%. The Company may prepay, at its option, all, but not less than all, of the outstanding principal balance and all accrued and unpaid interest with respect to the principal balance being prepaid of the Term Loan, subject to certain prepayment notice requirements; provided that such prepayment notice may be conditioned upon the effectiveness of a refinancing or any other transaction, in which case such prepayment notice may be revoked by the Company. Principal payments were postponed from March 2025 to March 2026 as the interest only extension event per the Loan Agreement was met.

The Lenders may elect at any time following the Closing Date and prior to the full repayment of the Term Loan to convert any portion of the principal amount of the term loans then outstanding, up to an aggregate principal amount of $4.0 million, into the Company’s Common Shares (the “Conversion Shares”), at a conversion price equal to $4.01 per Conversion Share, subject to certain limitations. The embedded conversion option qualifies for a scope exception from derivative accounting because it is both indexed to the Company’s own Common Shares and meets the conditions for equity classification. As of September 30, 2024, the Company estimated the fair value of the Conversion Shares to be $3.7 million using the Black-Scholes option pricing model.

The Loan Agreement contains customary representations and warranties and affirmative and negative covenants, including covenants that limit or restrict the Company's ability to, among other things: dispose of assets; make changes to the Company's business, management, ownership or business locations; merge or consolidate; incur additional indebtedness, encumbrances or liens; pay dividends or other distributions or repurchase equity; make investments; and enter into certain transactions with affiliates, in each case subject to certain exceptions. The Company is in compliance with the Loan Agreement as of September 30, 2024.

The Company recorded $0.7 million and $1.5 million in interest expense for the three and nine months ended September 30, 2024, respectively.

Future expected repayments of principal amount due on the credit facility as of September 30, 2024 are as follows (in thousands):


Remainder of 2024	$	-
2025		-
2026		13,369
2027		11,631
Total principal repayments	$	25,000
Unamortized debt issuance costs		(689	)
Total credit facility, non-current, net	$	24,311

As of September 30, 2024, the Company estimated the fair value of the credit facility to be $24.7 million, assuming the full $4.0 million of principal is converted into Conversion Shares.

11. SUBSEQUENT EVENTS

On October 17, 2024, the Company entered into an exchange agreement (the “Exchange Agreement”) with Commodore Capital Master LP and Deep Track Biotechnology Master Fund, LTD (collectively, the “Holders”) pursuant to which the Holders exchanged an aggregate of 8,000,000 of the Private Placement Shares for pre-funded warrants to purchase an aggregate of 8,000,000 Common Shares of the Company with an exercise price of $0.001 per share.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report. This Quarterly Report, including the following sections, contains forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those expressed or implied by such forward-looking statements. For a detailed discussion of these risks and uncertainties, see Item 1A “Risk Factors” in our 2023 Annual Report and this Quarterly Report. See also “Special Note Regarding Forward-Looking Statements.” We caution the reader not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date of this Quarterly Report. We undertake no obligation to update forward-looking statements, which reflect events or circumstances occurring after the date of this Quarterly Report.

Our U.S. GAAP accounting policies are referred to in Note 2 of the Unaudited Condensed Consolidated Financial Statements in this Quarterly Report as well as the Consolidated Financial Statements included in our 2023 Annual Report. All amounts are in U.S. dollars, unless otherwise indicated.

Overview

We are a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders. Our mission is to be the global leader in the development and delivery of treatments for brain health disorders that unlock new opportunities to improve patient outcomes. We are developing a pipeline of innovative product candidates, with and without acute perceptual effects, targeting neurotransmitter pathways that play key roles in brain health disorders. This specifically includes pharmaceutically optimized product candidates derived from the psychedelic and empathogen drug classes including MM120 and MM402, our lead product candidates.

Our lead product candidate, MM120, is a proprietary, pharmaceutically optimized form of lysergide D-tartrate (LSD) that we are developing for the treatment of generalized anxiety disorder (“GAD”). We have also evaluated MM120 in a subperceptual repeat administration dosing regimen for the treatment of attention deficit hyperactivity disorder (“ADHD”). In December 2023, we announced positive topline results from our Phase 2b clinical trial of MM120 for the treatment of GAD. The trial met its primary endpoint, with MM120 demonstrating statistically significant and clinically meaningful dose-dependent improvements on the Hamilton Anxiety Rating Scale ("HAM-A") compared to placebo at Week 4. In January 2024, we announced that our Phase 2a trial of a sub-perceptual dose of MM120 in ADHD did not meet its primary endpoint. In conjunction with the findings from our clinical trial of MM120 in GAD, we believe that these results support the critical role of perceptual effects of MM120 in mediating a clinical response. In March 2024, we announced that the FDA granted breakthrough designation to our MM120 program for the treatment of GAD. We also announced in March 2024 that our Phase 2b trial of MM120 in GAD met its key secondary endpoint, and 12-week topline data demonstrated clinically and statistically significant durability of activity observed through Week 12.

On June 20, 2024, we announced the completion of our End-of-Phase 2 meeting with the FDA, supporting the advancement of MM120 into pivotal trials for the treatment of adults with GAD. Our Phase 3 clinical program for MM120 orally disintegrating tablet (“ODT”) is expected to consist of two clinical trials: the Voyage Study (MM120-300) and the Panorama Study (MM120-301). Both trials are comprised of two parts: Part A, which is a 12-week, randomized, double-blind, placebo-controlled, parallel-group trial assessing the efficacy and safety of MM120 ODT versus placebo; and Part B, which is a 40-week extension period during which participants will be eligible for open-label treatment with MM120 ODT, subject to certain conditions for re-treatment eligibility. The Voyage Study is anticipated to enroll approximately 200 participants (randomized 1:1 to receive MM120 ODT 100 µg or placebo) and the Panorama Study is anticipated to enroll approximately 240 participants (randomized 5:2:5 to receive MM120 ODT 100 µg, MM120 ODT 50 µg or placebo). We expect both trials will utilize an adaptive trial design with a blinded interim sample size re-estimation, allowing for an increase in sample size by up to 50% in each trial in the case of certain parameters. We expect the primary endpoint for each trial is the change from baseline in HAM-A score at Week 12 between MM120 ODT 100 µg and placebo. We expect to initiate Voyage in the second half of 2024 with an anticipated topline readout (Part A results) in the first half of 2026 and we expect to initiate Panorama in the first half of 2025 with an anticipated topline readout (Part A results) in the second half of 2026. Both trials are subject to ongoing regulatory review and discussions, which could result in changes to trial design, including of the Phase 3 clinical trials.

In addition to our Phase 3 clinical program for GAD, we are developing MM120 for the treatment of Major Depressive Disorder (“MDD”). In the first quarter of 2024, we held a pre-IND meeting with FDA to discuss the initiation of our Phase 3 clinical program for MM120 ODT in MDD and the trial design for our planned Emerge Study (MM120-310), which like our pivotal trials in GAD, we anticipate will be comprised of two parts: Part A, which is a 12-week, randomized, double-blind, placebo-controlled, parallel group trial assessing the efficacy and safety of MM120 ODT versus placebo; and Part B, which is a 40-week extension period during which participants will be eligible for open-label treatment with MM120 ODT, subject to certain conditions for treatment eligibility. Emerge is anticipated to enroll at least 140 participants (randomized 1:1 to receive MM120 ODT 100 µg or placebo). The primary endpoint is

the change from baseline in Montgomery Åsberg Depression Rating Scale (MADRS) score at Week 6 between MM120 ODT 100 µg and placebo. We expect to initiate Emerge in the first half of 2025 with an anticipated topline readout (Part A results) in the second half of 2026. We expect to conduct a second Phase 3 registrational trial in MDD, with the trial design and timing to be informed by the progress from Emerge and additional regulatory discussions.

Our second lead product candidate, MM402, also referred to as R(-)-MDMA, is our proprietary form of the R-enantiomer of 3,4-methylenedioxymethamphetamine (“MDMA”), which we are developing for the treatment of autism spectrum disorder (“ASD”). MDMA is a synthetic molecule that is often referred to as an empathogen because it is reported to increase feelings of connectedness and compassion. Preclinical studies of R(-)-MDMA demonstrated its acute pro-social and empathogenic effects, while its diminished dopaminergic activity suggests that it has the potential to exhibit less stimulant activity, neurotoxicity, hyperthermia and abuse liability compared to racemic MDMA or the S(+)-enantiomer. In October, we completed our first clinical trial of MM402, a single-ascending dose trial in adult healthy volunteers. The data from this Phase 1 clinical trial was intended to characterize the tolerability, pharmacokinetics and pharmacodynamics of MM402. We expect to initiate further trials of MM402 for the treatment of ASD, with the exact timing and scope of such trials to be determined.

Beyond our clinical stage product candidates, we are pursuing a number of programs, primarily through external collaborations, through which we seek to expand our drug development pipeline and broaden the potential applications of our lead product candidates. These research and development programs include non-clinical, pre-clinical and human clinical trials and IITs of additional product candidates and research compounds with our collaborators. Our research partnerships and IITs facilitate the advancement of our early-stage pipeline and support the potential identification of product candidates for additional company-sponsored drug development programs.

Our drug development program is complemented by digital medicine projects to develop products intended to help facilitate the adoption and scalability of our product candidates, if and when they are approved. Our digital medicine projects and product roadmaps strategies, and investments are based on the projected development and commercialization strategies of our product candidates, with timelines and investments for each project contingent on the progression of the related drug program.

Our business is premised on a growing body of research supporting the use of novel psychoactive compounds to treat a myriad of brain health disorders. For all product candidates, we intend to proceed through research and development, and with marketing of the product candidates that may ultimately be approved pursuant to the regulations of the FDA and the legislation in other jurisdictions. This entails, among other things, conducting clinical trials with research scientists, using internal and external clinical drug development teams, producing and supplying drugs according to current Good Manufacturing Practices, and conducting all trials and development in accordance with the regulations of the FDA, and other legislation in other jurisdictions.

We were incorporated under the laws of the Province of British Columbia. Our wholly owned subsidiary, Mind Medicine, Inc. (“MindMed US”) was incorporated in Delaware. Prior to February 27, 2020, our operations were conducted through MindMed US.

Since inception, we have incurred losses while advancing the research and development of our products and processes. Our net losses were $13.7 million and $73.9 million for the three and nine months ended September 30, 2024, respectively, and $17.9 million and $71.9 million for the three and nine months ended September 30, 2023, respectively. As of September 30, 2024, we had an accumulated deficit of $364.1 million and cash and cash equivalents of $295.3 million.Our Product Candidate Pipeline

The following table summarizes the status of our portfolio of product candidates:

1. Full trial details and clinicaltrials.gov links available at mindmed.co/clinical-digital-trials/

2. Studies in exploration and/or planning stage.

LSD: lysergide; R(-)-MDMA: rectus-3,4-methylenedioxymethamphetamine

Recent Developments

Underwritten Public Offering

On August 9, 2024, we entered into an underwriting agreement with Leerink Partners LLC and Evercore Group L.L.C., as representatives of the several underwriters named therein, in connection with an underwritten public offering (the “August Offering”) of (i) 9,285,511 common shares (the “Shares”), no par value per share (“Common Shares”), and (ii) to certain investors, pre-funded warrants (the “Pre-Funded Warrants”) to purchase 1,428,775 Common Shares (the “Pre-Funded Warrant Shares”). The offering price for the Shares was $7.00 per share, less underwriting discounts and commissions. The offering price for the Pre-Funded Warrants was $6.999 per Pre-Funded Warrant, which represents the per share public offering price for the Shares less a $0.001 per share exercise price for each such Pre-Funded Warrant.

The net proceeds from the August Offering were approximately $70.0 million, after deducting underwriting discounts and commissions and other offering expenses payable by us. The August Offering closed on August 12, 2024.

The Pre-Funded Warrants are exercisable at any time after the date of issuance. The exercise price and the number of Pre-Funded Warrant Shares are subject to appropriate adjustment in the event of certain share dividends and distributions, share splits, share combinations, reclassifications or similar events affecting the Common Shares as well as upon any distribution of assets, including cash, securities or other property, to our shareholders. The Pre-Funded Warrants will not expire and are exercisable in cash or by means of a cashless exercise. A holder of Pre-Funded Warrants may not exercise such Pre-Funded Warrants if the aggregate number of Common Shares beneficially owned by such holder, together with its affiliates, would exceed more than 4.99% or 9.99% (at the initial election of the holder) of the number of Common Shares outstanding following such exercise, as such percentage ownership is determined in accordance with the terms of the Pre-Funded Warrants. A holder of Pre-Funded Warrants may increase or decrease this percentage not in excess of 19.99% by providing at least 61 days’ prior notice to us.

Components of Operating Results

Operating Expenses

Research and Development

Research and development expenses account for a significant portion of our operating expenses. Research and development expenses consist primarily of direct and indirect costs incurred for the development of our product candidates.

External expenses include:

•

payments to third parties in connection with the clinical development of our product candidates, including licensing fees and fees to contract research organizations and consultants;

•

the cost of manufacturing products for use in our preclinical studies and clinical trials, including payments to contract manufacturing organizations and consultants;

•

payments to third parties in connection with the preclinical development of our product candidates, including outsourced professional scientific development services, consulting research fees and sponsored research arrangements with third parties; and

•

allocated operational expenses, which include direct or allocated expenses for information technologies and human resources.

We may also incur in-process research and development expenses as we acquire or in-license assets from other parties. Technology acquisitions are expensed or capitalized based upon the asset achieving technological feasibility in accordance with management’s assessment regarding the ultimate recoverability of the amounts paid and the potential for alternative future use. Acquired in-process research and development costs that have no alternative future use are immediately expensed.

Internal expenses include employee-related costs such as salaries, related benefits and non-cash stock-based compensation expense for employees engaged in research and development functions.

We expect our research and development expenses to increase for the foreseeable future as we continue the clinical development of our product candidates and other preclinical programs in GAD, MDD, ASD and other potential or future indications, including initiating additional and larger clinical trials.

General and Administrative

General and administrative expenses consist primarily of compensation costs, including stock-based compensation, for executive management and administrative employees, including finance and accounting, legal, human resources and other administrative functions, professional services fees, advisory and professional service fees in connection with financing transactions, insurance expenses and allocated expenses.

We expect our general and administrative expenses to continue to increase for the foreseeable future as we continue to advance our research and development programs, grow our business and, if any of our product candidates receive marketing approval, commence commercialization activities.

Results of Operations

Comparison of the Three and Nine months ended September 30, 2024 and 2023

The following tables summarize our results of operations for the periods presented (in thousands):


	For the Three Months Ended September 30,												For the Nine Months Ended September 30,
	2024			2023			$ Change			% Change			2024			2023			$ Change			% Change
Operating expenses:
Research and development	$	17,188		$	13,203		$	3,985			30	%	$	43,538		$	40,578		$	2,960			7	%
General and administrative		7,604			8,413			(809	)		(10	)%		27,916			31,083			(3,167	)		(10	)%
Total operating expenses		24,792			21,616			3,176			15	%		71,454			71,661			(207	)		(0	)%
Loss from operations		(24,792	)		(21,616	)		(3,176	)		15	%		(71,454	)		(71,661	)		207			(0	)%
Other income/(expense):
Interest income		3,507			1,491			2,016			135	%		8,279			4,240			4,039			95	%
Interest expense		(727	)		(328	)		(399	)		122	%		(1,627	)		(481	)		(1,146	)		238	%
Foreign exchange loss, net		(32	)		(439	)		407			(93	)%		(589	)		(244	)		(345	)		141	%
Change in fair value of 2022 USD Financing Warrants		8,360			3,020			5,340			177	%		(11,088	)		(3,671	)		(7,417	)		202	%
Gain on extinguishment of contribution payable		—			—			—			100	%		2,541			—			2,541			100	%
Other expense		—			(51	)		51			(100	)%		—			(51	)		51			(100	)%
Total other income/(expense), net		11,108			3,693			7,415			201	%		(2,484	)		(207	)		(2,277	)	*
Net loss		(13,684	)		(17,923	)		4,239			(24	)%		(73,938	)		(71,868	)		(2,070	)		3	%
Other comprehensive loss:
(Loss)/gain on foreign currency translation		(12	)		415			(427	)		(103	)%		478			150			328			219	%
Comprehensive loss	$	(13,696	)	$	(17,508	)	$	3,812			(22	)%	$	(73,460	)	$	(71,718	)	$	(1,742	)		2	%

* Represents a change greater than 300%

Operating Expenses

Research and Development (in thousands):


	For the Three Months Ended September 30,										For the Nine Months Ended September 30,
	2024		2023		$ Change			% Change			2024		2023		$ Change			% Change
External Costs
MM120 program	$	9,702	$	7,558	$	2,144			28	%	$	20,569	$	18,903	$	1,666			9	%
MM402 program		1,230		327		903			276	%		3,400		1,719		1,681			98	%
MM110 program**		2		8		(6	)		(75	)%		21		38		(17	)		(45	)%
External R&D collaborations		115		108		7			6	%		612		693		(81	)		(12	)%
Preclinical and other programs		385		27		358		*				1,435		3,610		(2,175	)		(60	)%
Total external costs		11,434		8,028		3,406			42	%		26,037		24,963		1,074			4	%
Internal Costs		5,754		5,175		579			11	%		17,501		15,615		1,886			12	%
Total research and development expenses	$	17,188	$	13,203	$	3,985			30	%	$	43,538	$	40,578	$	2,960			7	%

* Represents a change greater than 300%

** In the third quarter of 2022, we suspended our MM110 program for the treatment of opioid withdrawal and determined that any further clinical development of MM110 will be subject to the receipt of additional non-dilutive capital and/or collaborations with third parties.

Research and development expenses increased by $4.0 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The increase was primarily due to an increase of $2.1 million in expenses related to our MM120 program supporting the advancement into pivotal trials for the treatment of adults with GAD, an increase of $0.9 million in

expenses related to our MM402 program, an increase of $0.6 million in internal personnel costs as a result of increasing research and development capacities, and an increase of $0.4 million in expenses related to preclinical activities.

Research and development expenses increased by $3.0 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase was primarily due to an increase of $1.7 million in expenses related to our MM120 program supporting the advancement into pivotal trials for the treatment of adults with GAD, an increase of $1.7 million in expenses related to our MM402 program, and an increase of $1.9 million in internal personnel costs as a result of increasing research and development capacities, partially offset by a decrease of $2.2 million in expenses related to preclinical activities.

General and Administrative

General and administrative expenses decreased by $0.8 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease was primarily attributable to lower spending in legal and commercial activities, partially offset by increased stock-based compensation expense.

General and administrative expenses decreased by $3.2 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The decrease was primarily attributable to professional services fees and expenses during the nine months ended September 30, 2023 related to the proxy contest in connection with our 2023 annual general meeting of shareholders, partially offset by increased stock-based compensation expense and an increase in personnel-related expenses.

Other Income (Expense)

Interest Income

Interest income increased by $2.0 million and $4.0 million for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively. This was primarily due to interest earned on our cash and cash equivalents as a result of higher interest rates during the three and nine months ended September 30, 2024.

Interest Expense

Interest expense increased by $0.4 million and $1.1 million for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023. This was primarily due to interest expense related to our credit facility entered into on August 11, 2023.

Foreign Exchange Loss, Net

Foreign exchange loss decreased by $0.4 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, the decrease was primarily due to favorable changes in foreign exchange rates during the three months ended September 30, 2024. Foreign exchange loss increased by $0.3 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, the increase was primarily due to unfavorable changes in foreign exchange rates during the nine months ended September 30, 2024.

Change in fair value of 2022 USD Financing Warrants

Revaluation gain on the 2022 USD Financing Warrants liability was $8.4 million and $3.0 million for the three months ended September 30, 2024 and 2023, respectively, and revaluation loss on the 2022 USD Financing Warrants liability was $11.1 million and $3.7 million for the nine months ended September 30, 2024 and 2023, respectively. Change in fair value of 2022 USD Financing Warrants consists of revaluation gains and losses attributed to the change in the fair value of our 2022 USD Financing Warrants that were issued as part of our public equity offering which closed on September 30, 2022.

Gain on extinguishment of contribution payable

Gain on extinguishment of contribution payable was $2.5 million for the nine months ended September 30, 2024. In June 2024, we made a lump sum payment of $0.3 million in full satisfaction of our remaining obligations of the contribution payable liability. As a result, both parties were subsequently released from any further commitments from the agreement. The difference between the fair value of the lump sum payment of $0.3 million, and the carrying value of the contribution payable prior to the settlement of $2.8 million, resulted in the gain on extinguishment of $2.5 million.

Other Expense

Other expense for the three and nine months ended September 30, 2024 was consistent with the amount compared to the three and nine months ended September 30, 2023, respectively.

Liquidity and Capital Resources

Sources of Liquidity

Since inception, we have financed our operations primarily from the issuance of equity and our Loan Agreement (as defined below). Our primary capital needs are for funds to support our scientific research and development activities including staffing, manufacturing, preclinical studies, clinical trials, administrative costs and for working capital.

We have experienced operating losses and cash outflows from operations since inception and will require ongoing financing in order to continue our research and development activities. We have not earned any revenue or reached successful commercialization of our product candidates. Our future operations are dependent upon our ability to finance our cash requirements, which will allow us to continue our research and development activities and the commercialization of our product candidates, if approved. There can be no assurance that we will be successful in continuing to finance our operations.

Our cash and cash equivalents and our working capital at September 30, 2024 was $295.3 million and $266.1 million, respectively. We believe that our cash and cash equivalents as of September 30, 2024 will be sufficient to fund our operations into 2027. Based on our current operating plan and anticipated R&D milestones, we expect our cash runway to extend at least 12 months beyond the first Phase 3 topline data readout for MM120 in GAD.

On August 11, 2023 (the “Closing Date”), we and certain of our subsidiaries party thereto, as co-borrowers (together with us, the “Borrowers”) entered into a Loan and Security Agreement (the “Loan Agreement”) with K2 HealthVentures LLC (“K2HV”), as administrative agent and Canadian collateral agent for lenders thereunder (K2HV, and any other lender from time to time, the “Lenders”), and Ankura Trust Company, LLC, as collateral trustee for the Lenders. The Loan Agreement provides for up to an aggregate principal amount of $50.0 million in term loans (“Term Loans”) consisting of a first tranche term loan of $15.0 million funded on the Closing Date, subsequent tranches of term loans totaling $20.0 million to be funded upon the achievement of certain time-based, clinical and regulatory milestones, and an additional tranche term loan of up to $15.0 million upon our request, subject to review by the Lenders of certain information from us and discretionary approval by the Lenders. The second milestone-based tranche of $10.0 million was achieved and funded in the second quarter of 2024.

On March 7, 2024, we entered into an underwriting agreement with Leerink Partners LLC and Cantor Fitzgerald & Co., as representatives of the underwriters named therein, in connection with the issuance and sale by us in an underwritten offering (the “March Offering”) of 16,666,667 of our Common Shares at an offering price of $6.00 per share, less underwriting discounts and commissions.

The net proceeds from the March Offering were approximately $93.5 million, after deducting underwriting discounts and commissions and other estimated offering expenses payable by us.

Also on March 7, 2024, we entered into a securities purchase agreement with certain investors (the “Investors”), pursuant to which the Investors agreed to purchase, and we agreed to sell 12,500,000 of our Common Shares at a price of $6.00 per share, in a private placement transaction (the “Private Placement”).

The net proceeds from the Private Placement were approximately $70.1 million, after deducting fees and expenses payable by us.

The March Offering and the Private Placement both closed on March 11, 2024.

On June 28, 2024, we entered into the Sales Agreement with the Agent to create an at-the-market equity program under which we from time to time may offer and sell the ATM Shares (as defined below), through or to the Agent. We filed a prospectus supplement on June 28, 2024 allowing for up to $150.0 million of Common Shares (the "ATM Shares") to be sold under the Sales Agreement.

Subject to the terms and conditions of the Sales Agreement, the Agent will use its commercially reasonable efforts to sell the ATM Shares from time to time, based upon our instructions. The Agent will be entitled to a commission of up to 3.0% of the aggregate gross proceeds from each sale of the ATM Shares effectuated through or to the Agent.

We have no obligation to sell any of the ATM Shares and may at any time suspend offers under the Sales Agreement or terminate the Sales Agreement.

On August 9, 2024, we entered into an underwriting agreement with Leerink Partners LLC and Evercore Group L.L.C., as representatives of the several underwriters named therein, in connection with the August Offering of (i) the Shares, and (ii) to certain investors, the Pre-Funded Warrants to purchase the Pre-Funded Warrant Shares. The offering price for the Shares was $7.00 per share, less underwriting discounts and commissions. The offering price for the Pre-Funded Warrants was $6.999 per Pre-Funded Warrant, which represents the per share public offering price for the Shares less a $0.001 per share exercise price for each such Pre-Funded Warrant.

Future Funding Requirements

To date, we have not generated any revenue. We do not expect to generate any meaningful revenue unless and until we obtain regulatory approval of and commercialize any of our product candidates, and we do not know when, or if at all, that will occur. We will continue to require substantial additional capital to develop our product candidates and fund operations for the foreseeable future. Moreover, we expect our expenses to increase in connection with our ongoing activities, particularly as we continue the development of and seek regulatory approvals for our product candidates. Further, we are subject to all the risks incident in the development of new pharmaceutical products, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may harm our business. Our expenses will increase if, and as, we:

•

advance our product candidates through preclinical and clinical development;

•

seek regulatory approvals for any product candidates that successfully complete clinical trials;

•

seek to discover and develop additional product candidates;

•

establish a sales, marketing, medical affairs and distribution infrastructure to commercialize any product candidates for which we may obtain marketing approval and intend to commercialize on our own or jointly; and

•

expand our operational, financial and management systems and increase personnel, including personnel to support our development, manufacturing and commercialization efforts and our operations as a public company.

We believe that our cash and cash equivalents as of September 30, 2024 will be sufficient to fund our operations into 2027. Based on our current operating plan and anticipated R&D milestones, we expect our cash runway to extend at least 12 months beyond the first Phase 3 topline data readout for MM120 in GAD. However, our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. In order to complete the development of our product candidates and to build the sales, marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates, if approved, we will require substantial additional funding. Until we can generate a sufficient amount of revenue from the commercialization of our product candidates, we may seek to raise any necessary additional capital through the sale of equity, debt financings or other capital sources, which could include income from collaborations, strategic partnerships or marketing, distribution or licensing arrangements with third parties or from grants. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our shareholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common shareholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, including restricting our operations and limiting our ability to incur liens, issue additional debt, pay dividends, repurchase our Common Shares, make certain investments or engage in merger, consolidation, licensing or asset sale transactions. If we raise funds through collaborations, strategic partnerships and other similar arrangements with third parties, we may be required to grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves. We may be unable to raise additional funds or enter into such agreements or arrangements on favorable terms, or at all. If we are unable to raise additional funds when needed, we may be required to delay, reduce or eliminate our product development or future commercialization efforts. We have based our projections of operating capital requirements on our current operating plan, which is based on several assumptions that may prove to be incorrect and we may use all of our available capital resources sooner than we expect. Because of the numerous risks and uncertainties associated with research, development and commercialization of product candidates, we are unable to estimate the exact amount and timing of our working capital requirements. Our future funding requirements will depend on many factors, including:

•

the scope, progress, results and costs of researching and developing our product candidates, and conducting preclinical studies and clinical trials;

•

the costs, timing and outcome of regulatory review of our product candidates;

•

the costs of future activities, including building a commercial organization, product sales, medical affairs, marketing, manufacturing and distribution, for any of our product candidates for which we receive marketing approval;

•

the costs of manufacturing commercial-grade products and sufficient inventory to support commercial launch;

•

the revenue, if any, received from commercial sale of our products, should any of our product candidates receive marketing approval;

•

the cost and timing of hiring new employees to support our continued growth;

•

the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims;

•

the ability to establish and maintain collaborations on favorable terms, if at all;

•

the extent to which we acquire or in-license other product candidates and technologies; and

•

the timing, receipt and amount of sales of, or milestone payments related to or royalties on, our product candidates.

Cash Flows (in thousands)


	For the Nine Months Ended September 30, 2024			For the Nine Months Ended September 30, 2023
Net cash used in operating activities	$	(53,778	)	$	(43,802	)
Net cash provided by financing activities		249,389			19,255
Foreign exchange impact on cash		(31	)		104
Net increase/(decrease) in cash	$	195,580		$	(24,443	)

Cash flows from operating activities

Cash used in operating activities for the nine months ended September 30, 2024 was $53.8 million, which consisted of a net loss of $73.9 million and a net change of $3.1 million in our net operating assets and liabilities, partially offset by $23.3 million in non-cash charges. The non-cash charges primarily consisted of share-based compensation of $13.5 million, a change in fair value on the 2022 USD Financing Warrants liability of $11.1 million, unrealized foreign exchange of $0.5 million, and amortization of intangible assets of $0.5 million, partially offset by a gain on extinguishment of the contribution payable of $2.5 million.

Cash used in operating activities for the nine months ended September 30, 2023 was $43.8 million, which consisted of a net loss of $71.9 million, partially offset by $18.0 million in non-cash charges and a net change of $10.1 million in our net operating assets and liabilities. The non-cash charges primarily consisted of share-based compensation of $11.8 million, a change in fair value on the 2022 USD Financing Warrants liability of $3.7 million, and amortization of intangible assets of $2.4 million.

Cash flows from financing activities

Cash provided by financing activities for the nine months ended September 30, 2024 was $249.4 million, which consisted of $175.0 million of gross proceeds from the March Offering and Private Placement, $75.0 million in proceeds from the August Offering, $10.0 million proceeds from our credit facility, $4.4 million of proceeds from the exercise of the 2022 USD Financing Warrants, $1.0 million net proceeds from the 2022 ATM, net of issuance costs, and $0.7 million in proceeds from the exercise of options, partially offset by $11.1 million of issuance costs related to the March Offering and Private Placement, $5.0 million of issuance costs related to the August Offering, $0.4 million payment of deferred financing fees related to the 2024 ATM, $0.1 million of our credit facility issuance costs and $0.1 million of withholding taxes paid on vested RSUs.

Cash provided by financing activities for the nine months ended September 30, 2023 was $19.3 million, which consisted of proceeds of $15.0 million from the credit facility partially offset by $0.8 million payment of credit facility issuance costs, $5.0 million of net proceeds from the issuance of Common Shares under our 2022 ATM, net of issuance costs, and $0.1 million of proceeds from the exercise of the 2022 USD Financing Warrants.

Contractual Obligations and Contingencies

See Note 9 to our unaudited condensed consolidated financial statements located in “Part I – Financial Information, Item 1. Notes to Condensed Consolidated Financial Statements” in this Quarterly Report for a description of our contractual obligations and contingencies.

Critical Accounting Policies and Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our unaudited condensed consolidated financial statements as of September 30, 2024, which have been prepared in accordance with U.S. GAAP, and on a basis consistent with those accounting principles followed by us and disclosed in Note 2 to our most recent annual audited consolidated financial statements in the 2023 Annual Report. The preparation of these unaudited condensed consolidated financial statements requires our management to make judgments and estimates that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenue generated and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these judgments and estimates under different assumptions or conditions and any such differences may be material.

Other than as described under Note 2 of our unaudited condensed consolidated financial statements in this Quarterly Report, there have been no material changes to our critical accounting policies from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our 2023 Annual Report.

Recent Accounting Pronouncements

See Note 2 to our unaudited condensed consolidated unaudited financial statements located in “Part I – Financial Information, Item 1. Notes to Condensed Consolidated Financial Statements” in this Quarterly Report for a description of recent accounting pronouncements applicable to our financial statements.

Emerging Growth Company Status

We are an “emerging growth company,” as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

We have elected to use this extended transition period to enable us to comply with new or revised accounting standards that have different effective dates for public and private companies until the last day of the fiscal year following the fifth anniversary of our first sale of common equity securities under an effective Securities Act registration statement or such earlier time that we no longer are an emerging growth company. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide the information required by this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time period specified in the SEC's rules and forms, and that such information is accumulated and communicated to management including our Chief Executive Officer and Principal Financial Officer as appropriate, to allow timely decisions regarding required disclosure. As of September 30, 2024, our Chief Executive Officer and Principal Financial Officer carried out an evaluation with the participation of management of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. Based upon that evaluation, our Chief Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2024.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Securities Exchange Act of 1934 that occurred during the quarter ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Internal Controls

A control system, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired control objectives. In reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. In addition, the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Part Ii

Item 1. Legal Proceedings

From time to time, we may become involved in litigation or other legal proceedings arising in the ordinary course of our business. We are not currently a party to any material litigation or legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business.

Item 1A. Risk Factors.

During the nine months ended September 30, 2024, there were no material changes to the "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2023. You should carefully consider the information described therein and in this Quarterly Report on Form 10-Q, which could materially affect our business condition, results of operations and cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a)

Recent Sales of Unregistered Equity Securities

None.

(b)

Use of Proceeds

None.

(c)

Issuer Purchases of Equity Securities

None.

For a description of certain working capital restrictions, including limitations upon the payment of dividends, see the description of our Loan Agreement in Note 10 to our unaudited condensed consolidated financial statements located in “Part I – Financial Information, Item 1. Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report.

Item 3. Defaults upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the fiscal quarter ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

Item 6. Exhibits.


Exhibit Number	Description	Incorporated by Reference
		Form	Exhibit No.	Filing Date	File No.
3.1	Amended and Restated Articles of Mind Medicine (MindMed) Inc., effective as of June 30, 2022.	10-K	3.1	March 9, 2023	001-40360
3.2	Notice of Articles, Incorporated on July 26, 2010, effective as of July 30, 2024.	10-Q	3.2	August 13, 2024	001-40360
4.1	Form of Pre-Funded Warrant	8-K	4.1	August 12, 2024	001-40360
4.2	Form of Pre-Funded Warrant	8-K	4.1	October 17, 2024	001-40360
4.3*	Form of Pre-Funded Warrant
10.1	Exchange Agreement, dated as of October 17, 2024, by and among Mind Medicine (MindMed) Inc., Commodore Capital Master LP and Deep Track Biotechnology Master Fund, LTD.	8-K	10.1	October 17, 2024	001-40360
10.2	Amendment No. 1 to the Registration Rights Agreement, dated as of October 17, 2024, by and among Mind Medicine (MindMed) Inc., Commodore Capital Master LP and Deep Track Biotechnology Master Fund, LTD.	8-K	10.2	October 17, 2024	001-40360
31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*+	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*+	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents
104	Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101)

* Filed herewith.

# Indicates management contract or compensatory plan.

+These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	Mind Medicine (MindMed) Inc.

Date: November 7, 2024	By:	/s/ Robert Barrow
		Robert Barrow
		Chief Executive Officer
Date: November 7, 2024	By:	/s/ Carrie F. Liao
		Carrie F. Liao, CPA
		Principal Financial Officer and Chief Accounting Officer