Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ELOX | |
Entity Registrant Name | ELOXX PHARMACEUTICALS, INC. | |
Entity Central Index Key | 0001035354 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,152,883 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-31326 | |
Entity Tax Identification Number | 84-1368850 | |
Entity Address, Address Line One | 950 Winter Street | |
Entity Address, City or Town | Waltham | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02451 | |
City Area Code | 781 | |
Local Phone Number | 577-5300 | |
Entity Incorporation State Country Code | DE | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Security12b Title | Common Stock, $0.01 par value per share | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 30,592 | $ 22,493 |
Marketable securities | 33,783 | |
Restricted cash | 52 | 43 |
Prepaid expenses and other current assets | 1,568 | 1,390 |
Total current assets | 32,212 | 57,709 |
Property and equipment, net | 149 | 201 |
Operating lease right-of-use asset | 551 | 924 |
Other long-term assets | 30 | 113 |
Total assets | 32,942 | 58,947 |
Current liabilities: | ||
Accounts payable | 638 | 1,871 |
Accrued expenses | 3,091 | 4,655 |
Current portion of long-term debt | 4,917 | 4,336 |
Advances from collaboration partners | 805 | 403 |
Current portion of operating lease liability | 496 | 499 |
Taxes payable | 38 | 43 |
Total current liabilities | 9,985 | 11,807 |
Long-term debt | 7,823 | 10,502 |
Operating lease liability | 56 | 425 |
Total liabilities | 17,864 | 22,734 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued or outstanding as of September 30, 2020 and December 31, 2019 | ||
Common stock, $0.01 par value per share, 500,000,000 shares authorized, 40,343,181 and 40,186,469 shares issued, and 40,150,530 and 40,030,763 shares outstanding as of September 30, 2020 and December 31, 2019, respectively | 403 | 402 |
Common stock in treasury, at cost, 192,651 and 155,706 shares as of September 30, 2020 and December 31, 2019, respectively | (1,825) | (1,703) |
Additional paid-in capital | 181,969 | 174,515 |
Accumulated other comprehensive income | 18 | |
Accumulated deficit | (165,469) | (137,019) |
Total stockholders’ equity | 15,078 | 36,213 |
Total liabilities and stockholders’ equity | $ 32,942 | $ 58,947 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 40,343,181 | 40,186,469 |
Common stock, shares outstanding | 40,150,530 | 40,030,763 |
Common stock, treasury shares | 192,651 | 155,706 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 3,231 | $ 6,801 | $ 11,308 | $ 20,160 |
General and administrative | 3,065 | 5,978 | 12,347 | 18,907 |
Restructuring charges | 3,994 | |||
Total operating expenses | 6,296 | 12,779 | 27,649 | 39,067 |
Loss from operations | (6,296) | (12,779) | (27,649) | (39,067) |
Other expense, net | 321 | 96 | 801 | 174 |
Net loss | $ (6,617) | $ (12,875) | $ (28,450) | $ (39,241) |
Net loss per share, basic and diluted | $ (0.16) | $ (0.32) | $ (0.71) | $ (1.05) |
Weighted average number of shares of common stock used in computing net loss per share, basic and diluted | 40,142,178 | 39,944,324 | 40,115,351 | 37,394,310 |
Comprehensive loss: | ||||
Net loss | $ (6,617) | $ (12,875) | $ (28,450) | $ (39,241) |
Other comprehensive income (loss): | ||||
Change in unrealized gain (loss) on available-for-sale securities | (13) | (12) | (18) | 12 |
Comprehensive loss | $ (6,630) | $ (12,887) | $ (28,468) | $ (39,229) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (28,450) | $ (39,241) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 7,385 | 8,631 |
Depreciation | 52 | 68 |
Amortization of operating lease right-of-use asset | 373 | 350 |
Amortization of debt discount | 438 | 378 |
Amortization, net, of premiums and discounts on investments | 15 | (228) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (137) | (150) |
Advances from collaboration partners | 403 | |
Accounts payable | (1,233) | 940 |
Accrued expenses | (1,564) | (856) |
Operating lease liabilities | (372) | (350) |
Taxes payable | (5) | (79) |
Net cash used in operating activities | (23,498) | (30,134) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (56,041) | |
Proceeds from maturities of marketable securities | 33,750 | 13,500 |
Purchase of property and equipment | (40) | |
Cash received (paid) for long-term deposits | 42 | (22) |
Net cash provided by (used in) investing activities | 33,792 | (42,603) |
Cash flows from financing activities: | ||
Proceeds from underwritten public offering, net of issuance costs | 455 | |
Proceeds from debt financing obligation | 797 | 15,000 |
Payment of debt issuance costs | (276) | |
Repayment of term loan principal | (3,333) | |
Proceeds from exercises of stock options | 70 | 148 |
Payment for settlement of taxes upon vesting of restricted stock units | (122) | (1,215) |
Proceeds from advances from collaboration partners | 402 | |
Net cash (used in) provided by financing activities | (2,186) | 46,281 |
Increase (decrease) in cash, cash equivalents and restricted cash | 8,108 | (26,456) |
Cash, cash equivalents and restricted cash at the beginning of the period | 22,536 | 48,651 |
Cash, cash equivalents and restricted cash at the end of the period | 30,644 | 22,195 |
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets: | ||
Cash and cash equivalents | 30,592 | 22,155 |
Restricted cash | 52 | 40 |
Cash, cash equivalents and restricted cash at the end of the period | 30,644 | 22,195 |
Supplemental disclosure of cash flow activities: | ||
Cash paid for interest | 665 | 703 |
Cash paid for income taxes | $ 5 | 79 |
Supplemental disclosure of non-cash financing activities: | ||
Non-cash acquisition of treasury stock | 46 | |
Non-cash issuance of common stock upon exercise of warrants | 178 | |
Fair value of warrants issued in connection with long-term debt | 421 | |
Underwritten Public Offering | ||
Cash flows from financing activities: | ||
Proceeds from underwritten public offering, net of issuance costs | $ 32,169 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | At-the-market Sale Agreement [Member] | Public Offering [Member] | Common Stock [Member] | Common Stock [Member]At-the-market Sale Agreement [Member] | Common Stock [Member]Public Offering [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]At-the-market Sale Agreement [Member] | Additional Paid-in Capital [Member]Public Offering [Member] | Accumulated Other Comprehensive Income [Member] | Treasury stock [Member] | Accumulated deficit [Member] |
Balance at Dec. 31, 2018 | $ 42,911 | $ 360 | $ 129,825 | $ (1,129) | $ (86,145) | |||||||
Balance, shares at Dec. 31, 2018 | 35,860,114 | (91,423) | ||||||||||
Exercise of stock options | 25 | 25 | ||||||||||
Exercise of stock options, shares | 25,000 | |||||||||||
Issuance of common stock under at-the-market sales agreement | $ 455 | $ 1 | $ 454 | |||||||||
Issuance of common stock under at-the-market sales agreement, shares | 35,362 | |||||||||||
Issuance of warrants | 421 | 421 | ||||||||||
Vesting of restricted stock units | (121) | $ (121) | ||||||||||
Vesting of restricted stock units, shares | 25,132 | (10,467) | ||||||||||
Stock-based compensation expense | 2,658 | 2,658 | ||||||||||
Change in unrealized gain (loss) on investments | 1 | $ 1 | ||||||||||
Net loss | (11,917) | (11,917) | ||||||||||
Balance at Mar. 31, 2019 | 34,433 | $ 361 | 133,383 | 1 | $ (1,250) | (98,062) | ||||||
Balance, shares at Mar. 31, 2019 | 35,945,608 | (101,890) | ||||||||||
Balance at Dec. 31, 2018 | 42,911 | $ 360 | 129,825 | $ (1,129) | (86,145) | |||||||
Balance, shares at Dec. 31, 2018 | 35,860,114 | (91,423) | ||||||||||
Change in unrealized gain (loss) on investments | 12 | |||||||||||
Net loss | (39,241) | |||||||||||
Balance at Sep. 30, 2019 | 45,228 | $ 404 | 171,783 | 12 | $ (1,585) | (125,386) | ||||||
Balance, shares at Sep. 30, 2019 | 39,977,654 | (139,532) | ||||||||||
Balance at Mar. 31, 2019 | 34,433 | $ 361 | 133,383 | 1 | $ (1,250) | (98,062) | ||||||
Balance, shares at Mar. 31, 2019 | 35,945,608 | (101,890) | ||||||||||
Exercise of stock options | 90 | 90 | ||||||||||
Exercise of stock options, shares | 36,790 | |||||||||||
Issuance of common stock under at-the-market sales agreement, shares | 3,833,334 | |||||||||||
Issuance of common stock upon exercise of warrants | 178 | $ (178) | ||||||||||
Issuance of common stock upon exercise of warrants, shares | 44,814 | (14,893) | ||||||||||
Vesting of restricted stock units | (111) | $ 3 | (3) | $ (111) | ||||||||
Vesting of restricted stock units, shares | 54,122 | (11,914) | ||||||||||
Issuance of common stock upon public offering | $ 32,222 | $ 38 | $ 32,184 | |||||||||
Stock-based compensation expense | 3,016 | 3,016 | ||||||||||
Change in unrealized gain (loss) on investments | 23 | 23 | ||||||||||
Net loss | (14,449) | (14,449) | ||||||||||
Balance at Jun. 30, 2019 | 55,224 | $ 402 | 168,848 | 24 | $ (1,539) | (112,511) | ||||||
Balance, shares at Jun. 30, 2019 | 39,914,668 | (128,697) | ||||||||||
Exercise of stock options | 28 | 28 | ||||||||||
Exercise of stock options, shares | 29,537 | |||||||||||
Vesting of restricted stock units | (44) | $ 2 | $ (46) | |||||||||
Vesting of restricted stock units, shares | 33,449 | (10,835) | ||||||||||
Equity financing issuance costs | (50) | (50) | ||||||||||
Stock-based compensation expense | 2,957 | 2,957 | ||||||||||
Change in unrealized gain (loss) on investments | (12) | (12) | ||||||||||
Net loss | (12,875) | (12,875) | ||||||||||
Balance at Sep. 30, 2019 | 45,228 | $ 404 | 171,783 | 12 | $ (1,585) | (125,386) | ||||||
Balance, shares at Sep. 30, 2019 | 39,977,654 | (139,532) | ||||||||||
Balance at Dec. 31, 2019 | $ 36,213 | $ 402 | 174,515 | 18 | $ (1,703) | (137,019) | ||||||
Balance, shares at Dec. 31, 2019 | 40,030,763 | 40,030,763 | (155,706) | |||||||||
Exercise of stock options | $ 64 | 64 | ||||||||||
Exercise of stock options, shares | 10,636 | |||||||||||
Vesting of restricted stock units | (116) | $ 1 | (1) | $ (116) | ||||||||
Vesting of restricted stock units, shares | 84,055 | (34,874) | ||||||||||
Stock-based compensation expense | 3,995 | 3,995 | ||||||||||
Change in unrealized gain (loss) on investments | 47 | 47 | ||||||||||
Net loss | (13,946) | (13,946) | ||||||||||
Balance at Mar. 31, 2020 | 26,257 | $ 403 | 178,573 | 65 | $ (1,819) | (150,965) | ||||||
Balance, shares at Mar. 31, 2020 | 40,125,454 | (190,580) | ||||||||||
Balance at Dec. 31, 2019 | $ 36,213 | $ 402 | 174,515 | 18 | $ (1,703) | (137,019) | ||||||
Balance, shares at Dec. 31, 2019 | 40,030,763 | 40,030,763 | (155,706) | |||||||||
Exercise of stock options, shares | 16,037 | |||||||||||
Issuance of warrants | $ 400 | |||||||||||
Change in unrealized gain (loss) on investments | (18) | |||||||||||
Net loss | (28,450) | |||||||||||
Balance at Sep. 30, 2020 | $ 15,078 | $ 403 | 181,969 | $ (1,825) | (165,469) | |||||||
Balance, shares at Sep. 30, 2020 | 40,150,530 | 40,150,530 | (192,651) | |||||||||
Balance at Mar. 31, 2020 | $ 26,257 | $ 403 | 178,573 | 65 | $ (1,819) | (150,965) | ||||||
Balance, shares at Mar. 31, 2020 | 40,125,454 | (190,580) | ||||||||||
Vesting of restricted stock units | (3) | $ (3) | ||||||||||
Vesting of restricted stock units, shares | 9,836 | (1,036) | ||||||||||
Stock-based compensation expense | 1,976 | 1,976 | ||||||||||
Change in unrealized gain (loss) on investments | (52) | (52) | ||||||||||
Net loss | (7,887) | (7,887) | ||||||||||
Balance at Jun. 30, 2020 | 20,291 | $ 403 | 180,549 | 13 | $ (1,822) | (158,852) | ||||||
Balance, shares at Jun. 30, 2020 | 40,135,290 | (191,616) | ||||||||||
Exercise of stock options | 5 | 5 | ||||||||||
Exercise of stock options, shares | 5,401 | |||||||||||
Vesting of restricted stock units | (3) | $ (3) | ||||||||||
Vesting of restricted stock units, shares | 9,839 | (1,035) | ||||||||||
Stock-based compensation expense | 1,415 | 1,415 | ||||||||||
Change in unrealized gain (loss) on investments | (13) | $ (13) | ||||||||||
Net loss | (6,617) | (6,617) | ||||||||||
Balance at Sep. 30, 2020 | $ 15,078 | $ 403 | $ 181,969 | $ (1,825) | $ (165,469) | |||||||
Balance, shares at Sep. 30, 2020 | 40,150,530 | 40,150,530 | (192,651) |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business | 1. Nature of the Business Eloxx Pharmaceuticals, Inc., together with its subsidiaries (collectively “Eloxx” or the “Company”), is a clinical-stage biopharmaceutical company developing novel ribonucleic acid (RNA)-modulating drug candidates, each designed to be a eukaryotic ribosomal selective glycoside (ERSG), formulated to treat rare and ultra-rare premature stop codon diseases. Premature stop codons are point mutations that disrupt the stability of the impacted messenger RNA (mRNA) and the protein synthesis from that mRNA. As a consequence, patients with premature stop codon diseases have reduced levels of, or no, protein from a gene whose product performs an essential function. This type of mutation accounts for some of the most severe phenotypes across genetic diseases. Nonsense mutations have been identified in over 1,800 rare and ultra-rare diseases. Read-through therapeutic development is focused on increasing functional protein synthesis by enabling the cytoplasmic ribosome to read through premature stop codons to produce full-length proteins. As opposed to a typical gene therapy approach of targeting a single, unique mutation in a target disease, this small molecule strategy enables targeting an entire class of mutations across the rare disease landscape. The small molecule approach has the potential to address a range of different premature stop codons in a single gene since the ERSG compounds are targeted to the ribosomes. ELX-02, the Company’s lead investigational drug product candidate, is a small molecule designed to restore production of full-length functional proteins. ELX-02 is in clinical development for systemic administration for cystic fibrosis. ELX-02 is an investigational drug that has not been approved by any global regulatory body. The Company is also conducting investigational new drug (IND) enabling preclinical studies of ERSG compounds for autosomal dominant polycystic kidney disease (ADPKD) and in rare inherited retinal disorders (IRDs) by intravitreal administration with an initial focus on Usher Syndrome. The Company’s preclinical candidate pool consists of a library of novel ERSG drug candidates identified based on read-through potential and cytoplasmic ribosomal selectivity. The Company is headquartered in Waltham, Massachusetts, with additional offices in Morristown, New Jersey and Rehovot, Israel. The Company’s research and development strategy is to target rare or ultra-rare diseases where a high unmet medical need exists, a nonsense mutation-bearing patient population is established, preclinical read-through can be established in predictive personalized medicine models, and a defined path through Orphan Drug development, regulatory approval, patient access and commercialization is identified. The Company believes patient advocacy is an important element of patient focused drug development and seeks opportunities to collaborate with patient advocacy groups throughout the discovery and development process. The Company’s current clinical program for its lead investigational drug product candidate, ELX-02, includes Phase 2 studies in cystic fibrosis in Europe, Israel and the United States. On March 25, 2020, the Company announced that enrollment in its Phase 2 clinical trials for ELX-02 in cystic fibrosis had been temporarily paused in response to the COVID-19 pandemic in order to avoid unnecessary exposure in at-risk populations, to maintain the integrity of study data and to support global healthcare providers in their commitment to ensure patient safety. On June 17, 2020, the Company announced that enrollment in its Phase 2 clinical trial in cystic fibrosis had been resumed in Israel and Europe, and on August 12, 2020, the Company announced that enrollment in its Phase 2 clinical trial in cystic fibrosis had been resumed in the U.S. The extent and severity of the impact of the current global health crisis on the Company’s business and clinical trials will be determined largely by the ability of patients and prospective patients in its clinical trials to access trial sites, the ability of personnel from clinical research organizations (“CROs”) to oversee the administration of the Company’s drug in accordance with trial protocols and the Company’s ability to monitor and communicate effectively with CROs, staff at clinical trial sites and principal investigators. In addition, the impact of the COVID-19 pandemic on the operations of the U.S. Food and Drug Administration (the “FDA”) and other health authorities may delay potential advancement of the Company’s product candidates. During 2019, the Company announced that the Cystic Fibrosis Foundation (the “CF Foundation”) is providing funding for a portion of the U.S. Phase 2 cystic fibrosis clinical trial. The Company has since formed a joint program advisory group with the CF Foundation focused on the development of ELX-02 for cystic fibrosis. The Cystic Fibrosis Therapeutics Development Network (“TDN”) has sanctioned the Phase 2 study protocol, which is being conducted at TDN member sites. On August 4, 2020, the Company announced that the FDA granted orphan drug designation for ELX-02 for the treatment of cystic fibrosis. The FDA’s Office of Orphan Drug Products grants orphan status to support the development of medicines for underserved patient populations, or rare disorders, that affect fewer than 200,000 people in the U.S. Orphan drug designation qualifies Eloxx for certain benefits, including seven years of market exclusivity upon regulatory approval (if received), exemption from FDA application fees, tax credits on qualified U.S. clinical trials and eligibility for grant funding opportunities that can be used for clinical trial costs. Liquidity The Company has a history of net losses and negative cash flows from operating activities since inception, and as of September 30, 2020, had an accumulated deficit of $(165.5) million. The Company expects to continue to incur net losses and use cash in its operations for the foreseeable future. To date, the Company has not generated revenue from the sale of any product or service and does not expect to generate significant revenue unless and until it obtains marketing approval for and commercializes one or more of its product candidates currently in development. Successful transition to profitable operations is dependent upon achieving a level of revenue adequate to support the Company’s cost structure. The Company has financed its operations primarily from the sale of equity securities and to a lesser extent, loans and grants. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital to fund its operations. As discussed in Note 14, on February 24, 2020, the Company’s Board of Directors approved a leadership and organizational realignment, aimed at supporting the Company’s efforts to improve operating performance, and concentrate development efforts on the Company’s core programs. The Company believes that its cash and cash equivalents of $30.6 million at September 30, 2020 will enable it to meet anticipated cash needs required to maintain its current and planned operations . |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies The Company has prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) promulgated by the Financial Accounting Standards Board (“FASB”). The Company has reclassified certain items from the prior year’s condensed consolidated financial statements to conform to the current year’s presentation. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2019, and the notes thereto, which are included in the Company’s 2019 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 6, 2020. The significant accounting policies used in the preparation of these condensed consolidated financial statements are consistent with those described in the Company’s audited financial statements as of and for the year ended December 31, 2019, and the notes thereto, in the Company’s 2019 Annual Report on Form 10-K, except as follows. Due to its adoption of ASU No. 2016-13 (further described below under the heading “Recent Accounting Pronouncements – Adopted” Marketable Securities The Company classifies all investment instruments with an original maturity date, when purchased, in excess of three months but less than one year as current marketable securities. Marketable securities are classified as available-for-sale and are carried at fair value. The Company periodically assesses its portfolio of securities to determine whether to record any estimated allowances for credit losses in the statement of operations. This assessment includes considering whether the Company intends to sell a security, whether it is more likely than not that the Company will have to sell a security before recovery of its amortized cost, and whether a decline in a security’s fair value below its amortized cost is credit-related or non-credit-related. The Company records non-credit-related unrealized gains and losses on available-for-sale securities in accumulated other comprehensive income, which is a separate component of stockholders’ equity on its consolidated balance sheet. Gains or losses realized upon sales of available-for-sale securities are recorded in other income. The cost of securities sold is based on the specific identification method. To date, the Company has recorded no allowances for credit losses, and no realized gains or losses upon sales of securities. Recent Accounting Pronouncements – Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid And Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 3. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Research and development $ 743 $ 448 Other 534 699 Insurance 256 217 VAT receivables 35 26 Total $ 1,568 $ 1,390 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment, net as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Computers and software $ 124 $ 166 Office furniture and equipment 164 164 Leasehold improvements 158 158 446 488 Less: Accumulated depreciation (297 ) (287 ) Property and equipment, net $ 149 $ 201 Depreciation expense was $16 thousand and $18 thousand for the three months ended September 30, 2020 and 2019 and $52 thousand and $68 thousand for the nine months ended September 30, 2020 and 2019, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Research and development expenses $ 990 $ 1,560 Payroll, bonus and other employee-related expenses 1,028 2,200 Restructuring 577 — Professional services 414 664 Other 22 137 Interest on debt 60 94 Total $ 3,091 $ 4,655 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Term Loan On January 30, 2019, the Company entered into a Loan and Security Agreement (the “SVB Loan Agreement”) in the amount of $15.0 million with Silicon Valley Bank (“SVB”) and WestRiver Innovation Lending Fund VIII, L.P. (“WestRiver”, and together with SVB, the “Lenders”). Outstanding principal on the loan accrues interest at a floating rate equal to the greater of (i) 5.25% per annum and (ii) the sum of 2.5% plus the prime rate, as published in the Wall Street Journal. Interest payments are payable monthly following the funding of the loan. On September 30, 2020, the interest rate was 5.75%. The Company commenced making payments on the outstanding principal In conjunction with the initial loan advance, the Company issued warrants (the “Warrants”) to SVB and WestRiver to purchase an aggregate of 40,834 shares of the Company’s common stock at a warrant exercise price of $11.02 (subject to certain adjustments), which price was calculated using the 10-day average bid price of the Company’s common stock prior to the date of the SVB Loan Agreement. The Company may prepay the outstanding principal balance of the loans advanced by SVB in whole but not in part, subject to a prepayment fee ranging from 1% to 3% of any amount prepaid, depending upon when the prepayment occurs. The Company will also pay a final payment fee equal to 6% of the total loans advanced, due upon the earlier of maturity or termination of the SVB Loan Agreement. Under the terms of the SVB Loan Agreement, the Company granted first priority liens and security interests in substantially all of the Company’s assets (excluding all of its intellectual property, which is subject to a negative pledge) and a pledge by the Company of the shares of one of its wholly-owned subsidiaries as collateral for the obligations thereunder. The SVB Loan Agreement also contains representations and warranties by the Company and SVB and indemnification provisions in favor of SVB and customary covenants (including limitations on other indebtedness, liens, acquisitions, investments and dividends, but no financial covenants), and events of default (including payment defaults, breaches of covenants following any applicable cure period, a material impairment in the perfection or priority of SVB’s security interest in the collateral, and events relating to bankruptcy or insolvency). As of September 30, 2020, the carrying value of the outstanding loan consists of $11.7 million in principal less the unamortized debt discount of approximately $0.6 million. The debt issuance costs, the valuation of the Warrants, and the final maturity payment of $0.9 million, have been recorded as a debt discount which are being accreted to interest expense through the maturity date of the loan. Interest expense relating to the loan for the three months ended September 30, 2020 and 2019 was $0.4 million and $0.4 million, respectively, and for the nine months ended September 30, 2020 and 2019 was $1.1 million and $1.2 million, respectively. Interest expense is calculated using the effective interest method and is inclusive of non-cash amortization of the debt discount. At September 30, 2020, the effective interest rate was 10.85%. PPP Loan In April 2020, the Company entered into a loan agreement with SVB under the U.S. Small Business Administration (the “SBA”) Paycheck Protection Program (the “PPP”) pursuant to the Coronavirus Aid, Relief and Economic Security Act of 2020 (the “CARES Act”) and received loan proceeds of $0.8 million (the “PPP Loan”). The Company expects to use the loan proceeds for payroll and other covered costs in accordance with the relevant terms and conditions of the CARES Act. The Company issued a promissory note for the PPP Loan with a maturity date of April 21, 2022 and an interest rate of 1.0% per annum. Monthly payments of principal and interest will be due beginning on September 21, 2021, although interest accrues from the issuance date. The Company may prepay the PPP Loan without penalty or premium, and the promissory note provides for customary events of default. A PPP loan may be partially or entirely forgiven based on employee retention for the 24-week period starting on the loan date through October 2020, and the use of loan proceeds for payroll or other specified costs during the same period. Forgiveness is also based on the employer maintaining or restoring headcount and maintaining salary levels. Forgiveness is reduced if headcount declines or if salaries decrease. Any loan forgiveness will be made subject to SVB approval in accordance with SBA requirements. The Company’s scheduled future principal payments for the long-term debt are as follows (in thousands): September 30, 2020 Remainder of 2020 $ 1,250 2021 5,398 2022 5,398 2023 417 Total future principal payments 12,463 Less: unamortized discount (623 ) Carrying value of long-term debt 11,840 Less: current portion (4,917 ) Add: Final fee due at maturity in 2023 900 Long-term portion $ 7,823 |
Legal and Other Contingencies
Legal and Other Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal and Other Contingencies | 7. Legal and Other Contingencies From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. The Company is currently unaware of any material pending legal proceedings to which it is a party or of which its property is the subject. However, the Company may at times in the future become involved in litigation in the ordinary course of business, which may include actions related to or based on its intellectual property and its use, customer claims, product liability claims, employment practices and employee complaints and other events arising out of its operations. When appropriate in management’s estimation, the Company will record adequate reserves in its financial statements for pending litigation. Litigation is subject to inherent uncertainties, and an adverse result in any such matters could adversely impact its reputation, operations, and its financial operating results or overall financial condition. Additionally, any litigation to which the Company may become subject could also require significant involvement of its senior management and may divert management’s attention from the Company’s business and operations. The Company accounts for its contingent liabilities in accordance with ASC Topic 450 , “Contingencies”. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. For the periods ended September 30, 2020 and 2019 , the Company was not a party to any litigation that is reasonably possible to have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Warrants In connection with the January 2019 issuance of debt, the Company granted warrants to purchase 40,834 shares of common stock and recorded a charge in additional paid-in-capital in the amount of $0.4 million reflecting the fair value of the warrants on the date of issuance. Transactions related to warrants to purchase the Company’s common stock during the nine months ended September 30, 2020, were as follows: Shares Weighted average exercise price Weighted average remaining contractual life (years) Warrants outstanding at December 31, 2019 323,894 $ 4.32 3.74 Granted — Exercised — Forfeited — Warrants outstanding at September 30, 2020 323,894 $ 4.32 2.99 Warrants exercisable at September 30, 2020 323,894 $ 4.32 2.99 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Summary of Option Activity Transactions related to stock options awarded to employees and directors during the nine months ended September 30, 2020 were as follows: Shares Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Options outstanding at December 31, 2019 4,737,670 $ 11.17 8.54 $ 3,629,073 Granted 1,400,010 3.52 Exercised (16,037 ) 4.31 Forfeited (1,166,026 ) 10.03 Options outstanding at September 30, 2020 4,955,617 $ 10.05 6.78 $ 723,236 Options exercisable at September 30, 2020 2,672,234 $ 12.44 4.78 $ 689,501 The aggregate intrinsic value represents the total intrinsic value (the difference between the fair value of the Company’s common stock as of September 30, 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2020. This amount is impacted by changes in the fair value of the Company’s common stock. Summary of Restricted Stock Unit Activity Transactions related to restricted stock units awarded to employees during the nine months ended September 30, 2020 were as follows: Shares Weighted average grant date fair value per share Unvested at December 31, 2019 463,945 $ 9.45 Granted 300,000 3.59 Vested (140,675 ) 10.19 Forfeited (266,977 ) 8.65 Unvested at September 30, 2020 356,293 $ 5.06 Stock-based Compensation Expense Stock-based compensation relates to stock options granted to employees, non-employee directors and non-employees, time-based restricted stock units granted to employees and performance-based stock options and restricted stock units granted to an employee. On February 24, 2020, the Company’s Board of Directors approved a leadership and organizational realignment, which accelerated the vesting of certain awards, resulting in additional stock-based compensation of $2.1 million recorded in restructuring charges. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 285 $ 718 $ 766 $ 1,987 General and administrative 1,129 2,239 4,495 6,644 Restructuring charges — — 2,124 — Total stock-based compensation expense $ 1,414 $ 2,957 $ 7,385 $ 8,631 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 10. Marketable Securities Below is a summary of cash, cash equivalents and marketable securities at September 30, 2020 (in thousands): Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 30,592 $ — $ — $ 30,592 Marketable securities - U.S. treasuries — — — — Total cash, cash equivalents and marketable securities $ 30,592 $ — $ — $ 30,592 Below is a summary of cash, cash equivalents and marketable securities at December 31, 2019 (in thousands): Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 22,493 $ — $ — $ 22,493 Marketable securities - U.S. treasuries 33,765 19 (1 ) 33,783 Total cash, cash equivalents and marketable securities $ 56,258 $ 19 $ (1 ) $ 56,276 As of September 30, 2020 and December 31, 2019, no credit losses were identified related to the cash equivalents or marketable securities. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 11. Fair Value of Financial Instruments At September 30, 2020 and December 31, 2019, the Company’s financial assets valued based on Level 1 inputs consisted of cash, cash equivalents and marketable securities (U.S. treasuries). During the three and nine months ended September 30, 2020, the Company did not have any transfers of financial assets between Level 2 and 3. Some assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis. The carrying amounts of current financial instruments, which include accounts payable, accrued expenses, lease obligation liability and debt, approximate their fair values due to the short-term nature of these instruments. |
Other Expense, Net
Other Expense, Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Expense, Net | 12. Other Expense, Net Other expense, net consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest and other income $ (23 ) $ (272 ) $ (336 ) $ (766 ) Foreign currency exchange losses (gains), net 11 28 32 (3 ) Investment income, net 6 (106 ) 15 (240 ) Interest and other expense 327 446 1,090 1,183 Total other expense, net $ 321 $ 96 $ 801 $ 174 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 13. Net Loss Per Share The loss and the weighted average number of shares used in computing basic and diluted net loss per share for the periods, are as follows (amounts in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (6,617 ) $ (12,875 ) $ (28,450 ) $ (39,241 ) Denominator: Weighted average number of shares of common stock used in computing net loss per share, basic and diluted 40,142,178 39,944,324 40,115,351 37,394,310 Net loss per share, basic and diluted $ (0.16 ) $ (0.32 ) $ (0.71 ) $ (1.05 ) The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as their effect would be anti-dilutive: Nine Months Ended September 30, 2020 2019 Options to purchase common stock 4,955,617 4,797,040 Restricted stock units 356,293 508,228 Warrants 323,894 323,894 Total potential common stock equivalents 5,635,804 5,629,162 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 14. Restructuring On February 24, 2020, the Company’s Board of Directors approved a leadership and organizational realignment aimed at supporting its efforts to improve operating performance and concentrate development efforts on its core programs. The organizational realignment reduced managerial layers and consolidated roles across the organization, resulting in the elimination of 13 full-time positions during the first quarter of 2020. This resulted in a one-time charge of $4.0 million, including $2.1 million in stock-based compensation expense, with the severance portion being paid out over a one-year Beginning Balance Additions Deductions Ending Balance Severance and related costs $ — $ 1,705 $ (1,128 ) $ 577 Contract termination costs — 165 (165 ) — Total restructuring charges $ — $ 1,870 $ (1,293 ) $ 577 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Marketable Securities | Marketable Securities The Company classifies all investment instruments with an original maturity date, when purchased, in excess of three months but less than one year as current marketable securities. Marketable securities are classified as available-for-sale and are carried at fair value. The Company periodically assesses its portfolio of securities to determine whether to record any estimated allowances for credit losses in the statement of operations. This assessment includes considering whether the Company intends to sell a security, whether it is more likely than not that the Company will have to sell a security before recovery of its amortized cost, and whether a decline in a security’s fair value below its amortized cost is credit-related or non-credit-related. The Company records non-credit-related unrealized gains and losses on available-for-sale securities in accumulated other comprehensive income, which is a separate component of stockholders’ equity on its consolidated balance sheet. Gains or losses realized upon sales of available-for-sale securities are recorded in other income. The cost of securities sold is based on the specific identification method. To date, the Company has recorded no allowances for credit losses, and no realized gains or losses upon sales of securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – Adopted In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid And Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Research and development $ 743 $ 448 Other 534 699 Insurance 256 217 VAT receivables 35 26 Total $ 1,568 $ 1,390 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Computers and software $ 124 $ 166 Office furniture and equipment 164 164 Leasehold improvements 158 158 446 488 Less: Accumulated depreciation (297 ) (287 ) Property and equipment, net $ 149 $ 201 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued expenses | Accrued expenses as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Research and development expenses $ 990 $ 1,560 Payroll, bonus and other employee-related expenses 1,028 2,200 Restructuring 577 — Professional services 414 664 Other 22 137 Interest on debt 60 94 Total $ 3,091 $ 4,655 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments for Long-Term Debt | The Company’s scheduled future principal payments for the long-term debt are as follows (in thousands): September 30, 2020 Remainder of 2020 $ 1,250 2021 5,398 2022 5,398 2023 417 Total future principal payments 12,463 Less: unamortized discount (623 ) Carrying value of long-term debt 11,840 Less: current portion (4,917 ) Add: Final fee due at maturity in 2023 900 Long-term portion $ 7,823 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Warrants Outstanding | Transactions related to warrants to purchase the Company’s common stock during the nine months ended September 30, 2020, were as follows: Shares Weighted average exercise price Weighted average remaining contractual life (years) Warrants outstanding at December 31, 2019 323,894 $ 4.32 3.74 Granted — Exercised — Forfeited — Warrants outstanding at September 30, 2020 323,894 $ 4.32 2.99 Warrants exercisable at September 30, 2020 323,894 $ 4.32 2.99 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Transactions Related to Stock Options Awarded to Employees and Directors | Transactions related to stock options awarded to employees and directors during the nine months ended September 30, 2020 were as follows: Shares Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Options outstanding at December 31, 2019 4,737,670 $ 11.17 8.54 $ 3,629,073 Granted 1,400,010 3.52 Exercised (16,037 ) 4.31 Forfeited (1,166,026 ) 10.03 Options outstanding at September 30, 2020 4,955,617 $ 10.05 6.78 $ 723,236 Options exercisable at September 30, 2020 2,672,234 $ 12.44 4.78 $ 689,501 |
Transactions Related to Restricted Stock Units Awarded to Employees | Transactions related to restricted stock units awarded to employees during the nine months ended September 30, 2020 were as follows: Shares Weighted average grant date fair value per share Unvested at December 31, 2019 463,945 $ 9.45 Granted 300,000 3.59 Vested (140,675 ) 10.19 Forfeited (266,977 ) 8.65 Unvested at September 30, 2020 356,293 $ 5.06 |
Summary of Allocated Stock-based Compensation Expense | The total equity-based compensation expense related to all of the Company’s equity-based awards was recognized as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 285 $ 718 $ 766 $ 1,987 General and administrative 1,129 2,239 4,495 6,644 Restructuring charges — — 2,124 — Total stock-based compensation expense $ 1,414 $ 2,957 $ 7,385 $ 8,631 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Cash, Cash Equivalents and Marketable Securities | Below is a summary of cash, cash equivalents and marketable securities at September 30, 2020 (in thousands): Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 30,592 $ — $ — $ 30,592 Marketable securities - U.S. treasuries — — — — Total cash, cash equivalents and marketable securities $ 30,592 $ — $ — $ 30,592 Below is a summary of cash, cash equivalents and marketable securities at December 31, 2019 (in thousands): Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 22,493 $ — $ — $ 22,493 Marketable securities - U.S. treasuries 33,765 19 (1 ) 33,783 Total cash, cash equivalents and marketable securities $ 56,258 $ 19 $ (1 ) $ 56,276 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Expense, Net | Other expense, net consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest and other income $ (23 ) $ (272 ) $ (336 ) $ (766 ) Foreign currency exchange losses (gains), net 11 28 32 (3 ) Investment income, net 6 (106 ) 15 (240 ) Interest and other expense 327 446 1,090 1,183 Total other expense, net $ 321 $ 96 $ 801 $ 174 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Loss and Weighted Average Number of Shares Used in Computing Basic and Diluted Net Loss Per Share | The loss and the weighted average number of shares used in computing basic and diluted net loss per share for the periods, are as follows (amounts in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (6,617 ) $ (12,875 ) $ (28,450 ) $ (39,241 ) Denominator: Weighted average number of shares of common stock used in computing net loss per share, basic and diluted 40,142,178 39,944,324 40,115,351 37,394,310 Net loss per share, basic and diluted $ (0.16 ) $ (0.32 ) $ (0.71 ) $ (1.05 ) |
Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares Outstanding | The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as their effect would be anti-dilutive: Nine Months Ended September 30, 2020 2019 Options to purchase common stock 4,955,617 4,797,040 Restricted stock units 356,293 508,228 Warrants 323,894 323,894 Total potential common stock equivalents 5,635,804 5,629,162 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Summary of Accrued Charges and Associated Payments | The accrued charges and associated payments that occurred for the nine months ended September 30, 2020, are as follows (amounts in thousands): Beginning Balance Additions Deductions Ending Balance Severance and related costs $ — $ 1,705 $ (1,128 ) $ 577 Contract termination costs — 165 (165 ) — Total restructuring charges $ — $ 1,870 $ (1,293 ) $ 577 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)Disease | Dec. 31, 2019USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of rare diseases | Disease | 1,800 | |
Accumulated deficit | $ (165,469) | $ (137,019) |
Cash, cash equivalents and marketable securities | $ 30,592 | $ 56,276 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Line Items] | ||
Available-for-sale securities, allowance for credit losses | $ 0 | $ 0 |
Realized gains or losses on the sale of available-for-sale securities | $ 0 | |
ASU 2016-13 [Member] | ||
Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |
Change in accounting principle, accounting standards update, immaterial effect | true | |
ASU 2018-13 [Member] | ||
Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |
Change in accounting principle, accounting standards update, immaterial effect | true |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Research and development | $ 743 | $ 448 |
Other | 534 | 699 |
Insurance | 256 | 217 |
VAT receivables | 35 | 26 |
Total | $ 1,568 | $ 1,390 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 446 | $ 488 |
Less: Accumulated depreciation | (297) | (287) |
Property and equipment, net | 149 | 201 |
Computers and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 124 | 166 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 164 | 164 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 158 | $ 158 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expenses | $ 16 | $ 18 | $ 52 | $ 68 |
Accrued Expenses - Accrued Expe
Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Research and development expenses | $ 990 | $ 1,560 |
Payroll, bonus and other employee-related expenses | 1,028 | 2,200 |
Restructuring | 577 | |
Professional services | 414 | 664 |
Other | 22 | 137 |
Interest on debt | 60 | 94 |
Total | $ 3,091 | $ 4,655 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jan. 30, 2019USD ($)Installment$ / sharesshares | Apr. 30, 2020USD ($) | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 31, 2019$ / shares |
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of initial loan advance | $ 11,840 | $ 11,840 | |||||
Warrants issued to purchase shares of common stock | shares | 40,834 | 40,834 | |||||
Warrant exercise price | $ / shares | $ 4.32 | $ 4.32 | $ 4.32 | ||||
Loan, principal outstanding | $ 12,463 | $ 12,463 | |||||
Loan, unamortized debt discount | 623 | 623 | |||||
Loan, final maturity payment | $ 900 | $ 900 | |||||
Loan Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate terms | Outstanding principal on the loan accrues interest at a floating rate equal to the greater of (i) 5.25% per annum and (ii) the sum of 2.5% plus the prime rate, as published in the Wall Street Journal. Interest payments are payable monthly following the funding of the loan. | ||||||
Debt instrument, payment terms | The Company commenced making payments on the outstanding principal balance of the loan on February 1, 2020, which is payable in 36 equal monthly installments. | ||||||
Loan, floating interest rate | 5.25% | ||||||
Loan, interest rate | 5.75% | 5.75% | |||||
Loan, frequency of periodic payment | monthly | ||||||
Loan, number of repayment installments | Installment | 36 | ||||||
Loan, periodic principal and interest payment commencement date | Feb. 1, 2020 | ||||||
Loan, maturity date | Jan. 1, 2023 | ||||||
Warrant exercise price | $ / shares | $ 11.02 | ||||||
Common stock average closing bid price number of trading days | 10 days | ||||||
Loan, prepayment fee percentage | 6.00% | ||||||
Loan, principal outstanding | $ 11,700 | $ 11,700 | |||||
Loan, unamortized debt discount | 600 | 600 | |||||
Loan, interest expense | $ 400 | $ 400 | $ 1,100 | $ 1,200 | |||
Loan, effective interest rate | 10.85% | 10.85% | |||||
Loan, final maturity payment | $ 900 | $ 900 | |||||
Loan Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan, prepayment fee percentage | 1.00% | ||||||
Loan Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan, prepayment fee percentage | 3.00% | ||||||
Loan Agreement [Member] | Prime Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan, floating interest rate | 2.50% | ||||||
Loan Agreement [Member] | Initial Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of initial loan advance | $ 15,000 | ||||||
Warrants issued to purchase shares of common stock | shares | 40,834 | ||||||
Loan Agreement [Member] | PPP Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan, periodic principal and interest payment commencement date | Sep. 21, 2021 | ||||||
Loan, maturity date | Apr. 21, 2022 | ||||||
PPP Loan proceeds received | $ 800 | ||||||
Promissory note interest rate | 1.00% |
Debt - Schedule of Future Princ
Debt - Schedule of Future Principal Payments for Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Remainder of 2020 | $ 1,250 | |
2021 | 5,398 | |
2022 | 5,398 | |
2023 | 417 | |
Total future principal payments | 12,463 | |
Less: unamortized discount | (623) | |
Carrying value of long-term debt | 11,840 | |
Less: current portion | (4,917) | $ (4,336) |
Add: Final fee due at maturity in 2023 | 900 | |
Long-term portion | $ 7,823 | $ 10,502 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Sep. 30, 2020 | |
Stockholders Equity [Abstract] | ||
Number of common stock in warrant | 40,834 | |
Adjustment to additional paid-in-capital by warrants issued | $ 421 | $ 400 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Transaction Related to Warrants to Purchase Common Stock (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Stockholders Equity [Abstract] | ||
Warrants outstanding beginning balance, Shares | 323,894 | |
Warrants outstanding ending balance, Shares | 323,894 | 323,894 |
Warrants exercisable, Shares | 323,894 | |
Warrants outstanding beginning balance, Weighted average exercise price | $ 4.32 | |
Warrants outstanding ending balance,Weighted average exercise price | 4.32 | $ 4.32 |
Warrants exercisable, Weighted average exercise price | $ 4.32 | |
Warrants outstanding, Weighted average remaining contractual life | 2 years 11 months 26 days | 3 years 8 months 26 days |
Warrants exercisable, Weighted average remaining contractual life | 2 years 11 months 26 days |
Stock-based Compensation - Tran
Stock-based Compensation - Transactions Related to Stock Options Awarded to Employees and Directors (Detail) | 9 Months Ended | |
Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Amount | ||
Options outstanding at December 31, 2019 | shares | 4,737,670 | |
Granted | shares | 1,400,010 | |
Exercised | shares | (16,037) | |
Forfeited | shares | (1,166,026) | |
Options outstanding at September 30, 2020 | shares | 4,955,617 | 4,737,670 |
Options exercisable at September 30, 2020 | shares | 2,672,234 | |
Weighted average exercise price | ||
Options outstanding at December 31, 2019 | $ / shares | $ 11.17 | |
Granted | $ / shares | 3.52 | |
Exercised | $ / shares | 4.31 | |
Forfeited | $ / shares | 10.03 | |
Options outstanding at September 30, 2020 | $ / shares | 10.05 | $ 11.17 |
Options exercisable at September 30, 2020 | $ / shares | $ 12.44 | |
Weighted average remaining contractual life | ||
Options outstanding | 6 years 9 months 10 days | 8 years 6 months 14 days |
Options exercisable | 4 years 9 months 10 days | |
Aggregate intrinsic value | ||
Options outstanding | $ | $ 723,236 | $ 3,629,073 |
Options exercisable | $ | $ 689,501 |
Stock-based Compensation - Tr_2
Stock-based Compensation - Transactions Related to Restricted Stock Units Awarded to Employees (Detail) - Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Amount | |
Unvested at December 31, 2019 | shares | 463,945 |
Granted | shares | 300,000 |
Vested | shares | (140,675) |
Forfeited | shares | (266,977) |
Unvested at September 30, 2020 | shares | 356,293 |
Weighted average grant date fair value price | |
Unvested at December 31, 2019 | $ / shares | $ 9.45 |
Granted | $ / shares | 3.59 |
Vested | $ / shares | 10.19 |
Forfeited | $ / shares | 8.65 |
Unvested at September 30, 2020 | $ / shares | $ 5.06 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 24, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Additional stock-based compensation | $ 1,414 | $ 2,957 | $ 7,385 | $ 8,631 | |
Restructuring Charges [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Additional stock-based compensation | $ 2,100 | $ 2,124 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Allocated Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | Feb. 24, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | $ 1,414 | $ 2,957 | $ 7,385 | $ 8,631 | |
Research and Development Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | 285 | 718 | 766 | 1,987 | |
General and Administrative Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | $ 1,129 | $ 2,239 | 4,495 | $ 6,644 | |
Restructuring Charges [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Stock-based compensation expense | $ 2,100 | $ 2,124 |
Marketable Securities - Summary
Marketable Securities - Summary of Cash, Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule Of Available For Sale Securities [Line Items] | |||
Cash and cash equivalents | $ 30,592 | $ 22,493 | $ 22,155 |
Cash and cash equivalents, Fair Value | 30,592 | 22,493 | |
Total cash, cash equivalents and marketable securities, Amortized Cost | 30,592 | 56,258 | |
Total cash, cash equivalents and marketable securities, Unrealized Gains | 19 | ||
Total cash, cash equivalents and marketable securities, Unrealized Losses | (1) | ||
Total cash, cash equivalents and marketable securities, Fair Value | $ 30,592 | 56,276 | |
U.S. treasuries [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Marketable securities, Amortized Cost | 33,765 | ||
Marketable securities, Unrealized Gains | 19 | ||
Marketable securities, Unrealized Losses | (1) | ||
Marketable securities, Fair Value | $ 33,783 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Credit losses related to the cash equivalents or marketable securities | $ 0 | $ 0 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||
Transfers of financial assets between level 2 and level 3 | the Company did not have any transfers of financial assets between Level 2 and 3 | the Company did not have any transfers of financial assets between Level 2 and 3 |
Other Expense, Net - Schedule o
Other Expense, Net - Schedule of Other Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | ||||
Interest and other income | $ (23) | $ (272) | $ (336) | $ (766) |
Foreign currency exchange losses (gains), net | 11 | 28 | 32 | (3) |
Investment income, net | 6 | (106) | 15 | (240) |
Interest and other expense | 327 | 446 | 1,090 | 1,183 |
Total other expense, net | $ 321 | $ 96 | $ 801 | $ 174 |
Net Loss Per Share - Weighted A
Net Loss Per Share - Weighted Average Number of Shares Used in Computing Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net loss | $ (6,617) | $ (7,887) | $ (13,946) | $ (12,875) | $ (14,449) | $ (11,917) | $ (28,450) | $ (39,241) |
Denominator: | ||||||||
Weighted average number of shares of common stock used in computing net loss per share, basic and diluted | 40,142,178 | 39,944,324 | 40,115,351 | 37,394,310 | ||||
Net loss per share, basic and diluted | $ (0.16) | $ (0.32) | $ (0.71) | $ (1.05) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares Outstanding (Detail) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential common stock equivalents | 5,635,804 | 5,629,162 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential common stock equivalents | 4,955,617 | 4,797,040 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential common stock equivalents | 356,293 | 508,228 |
Warrants [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential common stock equivalents | 323,894 | 323,894 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)Employee | |
Restructuring And Related Activities [Abstract] | |
Elimination of managerial full time positions | Employee | 13 |
Severance costs, one-time charge | $ 4 |
Severance costs, stock-based compensation expense | $ 2.1 |
Restructuring and related costs, severance cost payment period | 1 year |
Restructuring - Summary of Accr
Restructuring - Summary of Accrued Charges and Associated Payments (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Additions | $ 1,870 |
Deductions | (1,293) |
Ending Balance | 577 |
Severance and Related Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Additions | 1,705 |
Deductions | (1,128) |
Ending Balance | 577 |
Contract Termination Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Additions | 165 |
Deductions | $ (165) |