Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MOLECULAR TEMPLATES, INC. | ||
Entity Central Index Key | 0001183765 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-32979 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-3409596 | ||
Entity Address, Address Line One | 9301 Amberglen Blvd | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Austin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78729 | ||
City Area Code | 512 | ||
Local Phone Number | 869-1555 | ||
Entity Public Float | $ 29,380,632 | ||
Entity Common Stock, Shares Outstanding | 56,351,647 | ||
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share | ||
Trading Symbol | MTEM | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Austin, Texas | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for the registrant’s 2023 annual meeting of stockholders to be filed pursuant to Regulation 14A within 120 days of the registrant’s fiscal year ended December 31, 2022 are incorporated herein by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 32,190 | $ 24,983 |
Marketable securities, current | 28,859 | 118,061 |
Prepaid expenses | 3,459 | 3,917 |
Other current assets | 3,790 | 1,254 |
Total current assets | 68,298 | 148,215 |
Marketable securities, non-current | 0 | 8,986 |
Operating lease right-of-use assets | 11,132 | 8,608 |
Property and equipment, net | 14,632 | 19,309 |
Other assets | 3,486 | 7,244 |
Total assets | 97,548 | 192,362 |
Current liabilities: | ||
Accounts payable | 504 | 1,612 |
Accrued liabilities | 8,823 | 9,515 |
Deferred revenue, current | 45,573 | 32,937 |
Other current liabilities | 2,182 | 2,606 |
Total current liabilities | 57,082 | 46,670 |
Deferred revenue, long-term | 5,904 | 33,350 |
Long-term debt, net of current portion | 36,168 | 35,491 |
Operating lease liabilities | 12,231 | 9,564 |
Other liabilities | 1,295 | 1,625 |
Total liabilities | 112,680 | 126,700 |
Commitments and contingencies (Note 10) | 0 | 0 |
Stockholders’ equity | ||
Preferred stock, $0.001 par value: Authorized: 2,000,000 shares at December 31, 2022 and December 31, 2021; issued and outstanding: 250 shares at December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.001 par value: Authorized: 150,000,000 shares at December 31, 2022 and December 31, 2021; issued and outstanding: 56,351,647 shares at December 31, 2022 and 56,305,049 shares at December 31, 2021 | 56 | 56 |
Additional paid-in capital | 429,646 | 417,704 |
Accumulated other comprehensive loss | (66) | (48) |
Accumulated deficit | (444,768) | (352,050) |
Total stockholders’ (deficit) equity | (15,132) | 65,662 |
Total liabilities and stockholders’ (deficit) equity | $ 97,548 | $ 192,362 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 250 | 250 |
Preferred stock, shares outstanding | 250 | 250 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 56,351,647 | 56,305,049 |
Common stock, shares outstanding | 56,351,647 | 56,305,049 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total revenue | $ 19,754 | $ 38,697 |
Operating expenses: | ||
Research and development | 82,425 | 84,665 |
General and administrative | 26,200 | 34,106 |
Total operating expenses | 108,625 | 118,771 |
Loss from operations | 88,871 | 80,074 |
Interest and other income, net | 988 | 434 |
Interest and other expense, net | (4,782) | (3,369) |
Loss before provision for income taxes | 92,665 | 83,009 |
Provision for income taxes | 53 | 0 |
Net loss | 92,718 | 83,009 |
Net loss attributable to common shareholders | $ 92,718 | $ 83,009 |
Net loss per share attributable to common shareholders: | ||
Basic | $ 1.65 | $ 1.50 |
Diluted | $ 1.65 | $ 1.50 |
Weighted average number of shares used in net loss per share calculations: | ||
Basic | 56,334,456 | 55,297,798 |
Diluted | 56,334,456 | 55,297,798 |
Provision for income taxes | $ (53) | $ 0 |
Research And Development Revenue, Related Party | ||
Total revenue | 0 | 13,136 |
Research And Development Revenue, Other | ||
Total revenue | $ 19,754 | $ 25,561 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ 92,718 | $ 83,009 |
Other comprehensive income: | ||
Unrealized loss on available-for-sale securities | (18) | (65) |
Comprehensive loss | $ 92,736 | $ 83,074 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' (Deficit) Equity - USD ($) $ in Thousands | Total | At-the-market Offering | Preferred Stock | Preferred Stock At-the-market Offering | Common Stock | Common Stock At-the-market Offering | Additional Paid-In Capital | Additional Paid-In Capital At-the-market Offering | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) At-the-market Offering | Accumulated Deficit | Accumulated Deficit At-the-market Offering |
Balances, value at Dec. 31, 2020 | $ 59,340 | $ 0 | $ 50 | $ 328,314 | $ 17 | $ (269,041) | ||||||
Balances, shares at Dec. 31, 2020 | 250 | 49,984,333 | ||||||||||
Issuance of common stock pursuant to stock plans | 1,620 | $ 0 | $ 0 | 1,620 | 0 | 0 | ||||||
Issuance of common stock pursuant to stock plans, shares | 320,716 | |||||||||||
Issuance of common stock, net of issuance costs | $ 71,145 | $ 0 | $ 6 | $ 71,139 | $ 0 | $ 0 | ||||||
Issuance of common stock, net of issuance costs, shares | 6,000,000 | |||||||||||
Stock-based compensation | 16,631 | 0 | $ 0 | 16,631 | 0 | 0 | ||||||
Other comprehensive loss | (65) | 0 | 0 | 0 | (65) | 0 | ||||||
Net loss | (83,009) | 0 | 0 | 0 | 0 | (83,009) | ||||||
Balances, value at Dec. 31, 2021 | 65,662 | $ 0 | $ 56 | 417,704 | (48) | (352,050) | ||||||
Balances, shares at Dec. 31, 2021 | 250 | 56,305,049 | ||||||||||
Issuance of common stock pursuant to stock plans | 33 | $ 0 | $ 0 | 33 | 0 | 0 | ||||||
Issuance of common stock pursuant to stock plans, shares | 46,598 | |||||||||||
Stock-based compensation | 11,909 | 0 | $ 0 | 11,909 | 0 | 0 | ||||||
Other comprehensive loss | (18) | 0 | 0 | 0 | (18) | 0 | ||||||
Net loss | (92,718) | 0 | 0 | 0 | 0 | (92,718) | ||||||
Balances, value at Dec. 31, 2022 | $ (15,132) | $ 0 | $ 56 | $ 429,646 | $ (66) | $ (444,768) | ||||||
Balances, shares at Dec. 31, 2022 | 250 | 56,351,647 |
Consolidated Statements of Co_2
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
At-the-market Offering | |
Issuance of common stock | $ 4.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ 92,718 | $ 83,009 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and other | 7,383 | 6,630 |
Loss on disposal of property and equipment | 66 | 442 |
Stock-based compensation expense | 11,909 | 16,631 |
Interest due on long-term debt | 121 | 146 |
Amortization of debt discount and accretion related to debt | 975 | 737 |
Impairment of fixed assets and intangibles | 430 | 0 |
Accretion of asset retirement obligations | 124 | 135 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 458 | 223 |
Accounts receivable, related party | 0 | 234 |
Other assets | (438) | (289) |
Operating lease right-of-use assets and liabilities | (550) | 243 |
Accounts payable | (1,108) | (757) |
Accrued liabilities | (866) | (3,268) |
Other liabilities, related party | 0 | (11,853) |
Other liabilities | 0 | (472) |
Deferred revenue | (14,810) | 47,735 |
Deferred revenue, related party | 0 | (3,895) |
Net cash used in operating activities | (89,024) | (30,387) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,198) | (3,996) |
Purchase of marketable securities | (55,525) | (210,994) |
Sales of marketable securities | 154,040 | 152,550 |
Net cash provided by/(used in) investing activities | 95,317 | (62,440) |
Cash flows from financing activities: | ||
Payments of capital and finance lease obligations | 0 | (1) |
Proceeds from issuance of long-term debt and warrants, net | 0 | 19,828 |
Proceeds from stock option exercises | 33 | 1,620 |
Proceeds from issuance of common stock and warrants, net offering expenses | 0 | 71,145 |
Fees paid on loan modification | (298) | 0 |
Net cash provided by/(used in) financing activities | (265) | 92,592 |
Net increase/(decrease) in cash, cash equivalents, and restricted cash | 6,028 | (235) |
Cash, cash equivalents and restricted cash, beginning of period | 28,651 | 28,886 |
Cash, cash equivalents and restricted cash, end of period | 34,679 | 28,651 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 32,190 | 24,983 |
Restricted cash included in Other assets | $ 2,489 | $ 3,668 |
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Cash, cash equivalents and restricted cash, end of period | $ 34,679 | $ 28,651 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 3,495 | 2,248 |
Non-cash right-of-use asset obtained in exchange for operating lease obligation | 4,517 | 0 |
Non-Cash Investing and Financing Activities | ||
Fixed asset additions in accounts payable and accrued expenses | $ 53 | $ 81 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | NOTE 1—ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of the Business Molecular Templates, Inc. (the “Company”) is a clinical stage biopharmaceutical company formed in 2001, with a biologic therapeutic platform for the development of novel targeted therapeutics for cancer and other serious diseases, headquartered in Austin, Texas. The Company’s focus is on the research and development of therapeutic compounds for a variety of cancers. The Company operates its business as a single segment, as defined by U.S. generally accepted accounting principles (“U.S. GAAP”). Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiary and reflect the elimination of intercompany accounts and transactions . Going Concern The Company has adopted as required the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern, which requires that management contemplate the realization of assets and liquidation of liabilities in the normal course of business, and evaluate whether there are relevant conditions and events that in aggregate raise substantial doubt about the entity’s ability to continue as a going concern and to meet its obligations as they become due within one year after the date that the financial statements are issued. Under this standard, management’s assessment shall not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. There is substantial doubt about the Company’s ability to continue as a going concern as of the date of this Annual Report on Form 10-K. This substantial doubt relates to the Company’s future compliance with the financial covenant in its Loan and Security Agreement with K2 HealthVentures LLC (the “K2 Loan and Security Agreement”), which requires the Company to certify monthly that its has cash, cash equivalents and marketable securities of at least five times the Company’s cash monthly burn as defined in the agreement (the “Financial Covenant”), as well as the Company’s ability to avoid triggering an event of default related to its solvency (an “Insolvency Event of Default”) under the K2 Loan and Security Agreement. Currently, based on anticipated cost-savings from the restructuring, discussed in Note 15 “Subsequent Events,” the Company anticipates continued compliance with, and the ability to avoid triggering an event of default related to, an Insolvency Event of Default or the Financial Covenant into the fourth quarter 2023. However, t he Company will require additional funding in order to meet its covenant requirements and ongoing operations. If the Company cannot raise additional capital to maintain its compliance thereafter or negotiate an amendment to the Financial Covenant or the Insolvency Events of Default, then the Company will be in default of the K2 Loan and Security Agreement and the repayment of the Company’s indebtedness may be accelerated in full by K2 HealthVentures LLC. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to provide sufficient certainty that it will continue as a going concern. As of December 31, 2022, the Company had an accumulated deficit of $444.8 million. At December 31, 2022, the Company had cash, cash equivalents, and marketable securities of $61.0 million, including borrowings of $35.0 million under the K2 Loan and Security Agreement whose scheduled maturity date for repayment is June 1, 2024, but a default of the Financial Covenant or an Insolvency Event of Default would potentially trigger accelerated repayment. There can be no assurances that the Company will be able to raise sufficient capital to fund ongoing operations and maintain compliance with, and avoid triggering an event of default related to, an Insolvency Event of Default or the Financial Covenant beyond the fourth quarter of 2023 and/or be successful at negotiating an amendment to the K2 Loan and Security Agreement. If the Company is unable to obtain additional capital and continue as a going concern, it might have to liquidate its assets, and the values it receives for its assets in liquidation or dissolution could be significantly lower than the values reflected in its financial statements These financial statements do not give effect to any adjustments which will be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements. Reclassifications The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the recorded amounts reported therein. A change in facts or circumstances surrounding the estimates could result in a change to estimates and impact future operating results. Certain accounts in the prior financial statements have been reclassified for comparative purposes to conform to the presentation in the current financial statements. These reclassifications have no material effect on previously reported financials. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America as defined by the FASB ASC requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Net Loss per Share Basic net loss per share is calculated by dividing the net loss applicable to common stockholders by the weighted average number of shares of Common Stock outstanding during the period without consideration of Common Stock equivalents. Since the Company was in a loss position for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods, as the inclusion of all potential common shares outstanding is anti-dilutive. Cash and Cash Equivalents The Company considers temporary investments with original maturities of three months or less from date of purchase to be cash equivalents. Restricted cash is recorded in other assets, based on when the restrictions expire. Other assets include $2.5 million and $3.7 million of restricted cash at December 31, 2022 and December 31, 2021, respectively, related to letters of credit in lieu of a cash deposit for the Company’s leases. Fair Value Measurement The Company accounts for its marketable securities in accordance with ASC 820 “Fair Value Measurements and Disclosures.” Level 1 —Quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. For Level 2 securities that have market prices from multiples sources, a “consensus price” or a weighted average price for each of these securities can be derived from a distribution-curve-based algorithm which includes market prices obtained from a variety of industrial standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. Level 2 securities with short maturities and infrequent secondary market trades are typically priced using mathematical calculations adjusted for observable inputs when available. Marketable Securities The Company classifies its marketable securities as “available-for-sale.” Such marketable securities are recorded at fair value and unrealized gains and losses are recorded as a separate component of stockholders’ equity until realized. Realized gains and losses on sale of all such securities are reported in net loss, computed using the specific identification cost method. The Company places its marketable securities primarily in U.S. government securities, money market funds, corporate debt securities, commercial paper and certificates of deposit. The Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time and extent to which the fair value has been less than the Company’s cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market value. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash and cash equivalents, investments, long term debt and accounts receivable. The Company’s cash and cash equivalents are with two major financial institutions in the United States. The Company performs an ongoing credit evaluation of its strategic partners’ financial conditions and generally does not require collateral to secure accounts receivable from its strategic partners. The Company’s exposure to credit risk associated with non-payment will be affected principally by conditions or occurrences within Millennium Pharmaceuticals, Inc., a wholly-owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”), Vertex Pharmaceuticals Incorporated (“Vertex”) and Bristol Myers Squibb Company (“Bristol Myers Squibb”) Bristol Myers Squibb Drug or biologic candidates developed by the Company may require approvals or clearances from the U.S. Food and Drug Administration (“FDA”) or international regulatory agencies prior to commercial sales. There can be no assurance that the Company’s drug or biologic candidates will receive any of the required approvals or clearances. If the Company were to be denied approval or clearance or any such approval or clearance were to be delayed, it would have a material adverse impact on the Company. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Major additions and improvements are capitalized while maintenance and repairs that do not improve or extend the useful life of the respective asset are expensed. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets. Patents The gross value of Patents was $0.7 million and $1.1 million at December 31, 2022 and December 31, 2021, respectively, and are recorded in Other assets. The Company recorded $0.1 million of amortization expense for the years ended December 31, 2022 and December 31, 2021, with estimated expense to remain $0.1 million for each of the four successive years subsequent to December 31, 2022. For the year ended December 31, 2022, the Company recorded impairments of $0.4 million related to patents, which is recorded in general and administrative expenses. Impairment of Long-Lived Assets When events, circumstances and/or operating results indicate that the carrying values of long-lived assets might not be recoverable through future operations, the Company prepares projections of the undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the projections indicate that the recorded amounts are not expected to be recoverable, such amounts are reduced to estimated fair value. Fair value is estimated based upon internal evaluation of each asset that includes quantitative analyses of net revenue and cash flows, review of recent sales of similar assets and market responses based upon discussions in connection with offers received from potential buyers. Certain factors used for these types of nonrecurring fair value measurements are considered Level 3 inputs. The Company had no material impairments recorded for the years ended December 31, 2022 and 2021. Long-term debt The Company records debt issuance costs related to its long-term debt as a deduction from the carrying amount. The costs are amortized to interest expense over the life of the debt. Revenue Recognition The Company’s revenue has consisted principally of collaboration agreements for research and development revenue and grant revenue. Grant revenue relates to the grants the Company has received from governmental bodies that are conditional cost reimbursement grants and we recognize revenue as allowable costs are incurred. Amounts collected in excess of revenue recognized are recorded as deferred revenue. The Company’s collaboration arrangements may include one or more of the following: licenses, or options to obtain licenses ; up-front fees; research and development activities and associated costs ; milestone payments related to the achievement of development, regulatory, or commercial goals; and royalties on net sales of licensed products. Each of these payments may result in collaboration revenues or an offset against research and development expense. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements The Company identifies the goods or services promised within each collaboration agreement and assesses whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires management to make judgments about the individual promised goods or services and whether such are separable from the other aspects of the contractual relationship. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. If a promised good or service is not distinct, an entity is required to combine that promised good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The allocation of the transaction price to the performance obligations in proportion to their standalone selling prices is determined at contract inception. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the promised goods or services to a customer. The Company determines the amount of variable consideration by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment. In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if there is a significant benefit of financing. The Company assessed its collaboration agreements and concluded that no significant financing components were present. If an arrangement contains customer options that allow the customer to acquire additional goods or services, including an exclusive license to the Company’s intellectual property, the goods and services underlying the customer options are evaluated to determine whether they are deemed to represent a material right. In determining whether the customer option has a material right, the Company assesses whether there is an option to acquire additional goods or services at a discount. If the customer option is determined not to represent a material right, the option is not considered to be performance obligations at the outset of the arrangement. If the customer option is determined to represent a material right, the material right is recognized as a separate performance obligation at the outset of the arrangement. The Company allocates the transaction price to material rights based on the relative standalone selling price, which is determined based on the identified discount and the probability that the customer will exercise the option. Amounts allocated to a material right are not recognized as revenue until the option is exercised. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation as each performance obligation is satisfied over time, with progress toward completion measured based on actual costs incurred relative to total estimated costs to be incurred over the life of the contract. Recorded revenue and costs are subject to revision as the contract progresses. Such revisions may result in increases or decreases to revenue and income and are reflected in the consolidated financial statements in the periods in which they are first identified. Estimating costs under the Company’s collaboration agreements is complex and involves significant judgment. Factors that must be considered in making estimates include labor productivity and availability, the nature and technical complexity of the work to be performed, potential performance delays, availability and timing of funding from the customer and progress toward completion. Adjustments to original estimates are often required as work progresses and additional information becomes known, even though the scope of the work required under the contract may not change. Any adjustment as a result of a change in estimates is made when facts develop, events become known, or an adjustment is otherwise warranted, such as in the case of contract change orders. The Company has procedures and processes in place to monitor the actual progress of a project against estimates and the Company’s estimates are updated if circumstances are warranted. Performance obligations may include research and development services to be performed by the Company on behalf of the collaboration partner. Revenue is recognized on research and development efforts as the services are performed and presented on a gross basis, since the Company is the principal. Under collaboration agreements, the timing of revenue recognition and contract billings may differ, and result in contract assets and contract liabilities. Contract assets represent revenues recognized in excess of amounts billed under collaboration agreements and are transferred to accounts receivable when billed or billing rights become unconditional. Contract liabilities represent billings in excess of revenues recognized under collaboration agreements. Lease Accounting At inception of a contract, the Company determines whether an arrangement is or contains a lease. For all leases, the Company determines the classification as either operating leases or finance leases. Operating leases are included in Operating lease right-of-use assets and Operating lease liabilities in our consolidated balance sheets. Lease recognition occurs at the commencement date and lease liability amounts are based on the present value of lease payments over the lease term. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. If a lease does not provide information to determine an implicit interest rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments under the lease. ROU assets also include any lease payments made prior to the commencement date and exclude lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Lease agreements with both lease and non-lease components, are generally accounted for together as a single lease component. Income Taxes Income taxes are recorded in accordance with ASC 740, Accounting for Income Taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in the financial statements and provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense. Stock-Based Compensation The Company recognizes stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation.” The Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. To determine the expected term of the Company’s employee stock options granted, the Company utilized the simplified approach as defined by SEC Staff Accounting Bulletin No. 107, “Share-Based Payment” Warrants In conjunction with certain financing transactions, the Company issued warrants to purchase the Company’s common stock. The Company determines whether the warrants should be classified as a liability or equity according to ASC 480, “ Distinguishing Liabilities from Equity Research and Development Costs Research and development expenses consist of costs such as salaries and benefits, laboratory supplies, facility costs, consulting fees and fees paid to contract research organizations (“CROs”), clinical trial sites, laboratories, other clinical service providers and contract manufacturing organizations (“CMOs”). Research and development costs are expensed as incurred. Comprehensive loss Comprehensive loss is comprised of the Company’s net loss and other comprehensive income (loss). Unrealized gain (loss) on available-for-sale marketable securities represents the only component of other comprehensive income (loss). Clinical Trial Accruals The Company’s preclinical and clinical trials are performed by third-party CROs and/or clinical investigators, and clinical supplies are manufactured by CMOs. Invoicing from these third parties may be monthly based upon services performed or based upon milestones achieved. The Company accrues these expenses based upon its assessment of the status of each clinical trial and the work completed, and upon information obtained from the CROs and CMOs. The Company’s estimates are dependent upon the timeliness and accuracy of data provided by the CROs and CMOs regarding the status and cost of the studies as well as management’s best estimate and may not match the actual services performed by the organizations. This could result in adjustments to the Company’s research and development expenses in future periods. To date the Company has had no significant adjustments. Bonus Accruals The Company has bonus programs for eligible employees. Bonuses are determined based on various criteria, including the achievement of corporate, departmental and individual goals. Bonus accruals are estimated based on various factors, including target bonus percentages per level of employee and probability of achieving the goals upon which bonuses are based. The Company’s management periodically reviews the progress made towards the goals under the bonus programs. As bonus accruals are dependent upon management’s judgments of the likelihood of achieving the various goals, it is possible for bonus expense to vary significantly in future periods if changes occur in those management estimates. Segments The Company has one reportable segment and uses one measurement of results of operations to manage its business. All long-lived assets are maintained in the United States of America. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Subtopic 470-20: Debt with Conversion and Other Options and Subtopic 815-40: Derivatives and Hedging - Contracts in Entity’s Own Equity). The new guidance simplifies accounting for convertible instruments by removing major separation models, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The amendment is effective for the Company for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements . In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance: Disclosures by Business Entities about Government Assistance”. The amendments in this Update improve financial reporting by requiring disclosures that increase the transparency of transactions with a government. The amendments require the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy (i) the type of transaction, (ii) the accounting for the transaction, and (iii) the effect of the transaction on the entity’s financial statements. The Company adopted this standard as of January 1, 2022, using a prospective approach and it did not have a material impact on the Company’s financial statements and related disclosures. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 2—NET LOSS PER SHARE Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period utilizing the two-class method. As discussed further in Note 11 “Stockholders’ Equity”, Preferred Stock Shareholders participate equally with Common Stock Shareholders in earnings, but do not participate in losses, and are excluded from the Basic net loss calculation. Diluted net loss per share is computed by giving effect to all potential dilutive common shares, including outstanding options , warrants and convertible preferred stock . More specifically, at December 31, 2022 and December 31, 2021 , stock options, warrants and if converted preferred stock totaling approximately 11,841,000 and 11,249,000 common shares, respectively, were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive. |
Research and Development Agreem
Research and Development Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Research And Development [Abstract] | |
Research and Development Agreements | NOTE 3 — RESEARCH AND DEVELOPMENT AGREEMENTS Disaggregated Research and Development Revenue Research and Development revenue is attributable to regions based on the location of our collaboration partner's parent company headquarters. Research and Development revenues disaggregated by location were as follows (in thousands): Year Ended December 31, 2022 2021 Japan $ 2,586 $ 13,136 United States 17,168 25,561 Total research and development revenue $ 19,754 $ 38,697 Bristol Myers Squibb Collaboration Agreement In February 2021, the Company entered into a Collaboration Agreement (the “BMS Collaboration Agreement”), as amended, with Bristol Myers Squibb to perform strategic research collaboration leveraging the Company’s ETB technology platform to discover and develop novel products containing ETBs directed to multiple targets. Pursuant to the terms of the BMS Collaboration Agreement, the Company granted Bristol Myers Squibb a series of exclusive options to obtain one or more exclusive licenses under the Company’s intellectual property to exploit products containing ETBs directed against certain targets designated by Bristol Myers Squibb. Bristol Myers Squibb paid the Company an upfront payment of $70.0 million. In addition to the upfront payment, the Company may receive near term and development and regulatory milestone payments of up to $874.5 million. The Company will also be eligible to receive up to an additional $450.0 million in payments upon the achievement of certain sales milestones, and subject to certain reductions, tiered royalties ranging from mid-single digits up to mid-teens as percentages of calendar year net sales, if any, on any licensed product. The Company will be responsible for conducting the research activities through the designation, if any, of one or more development candidates. Upon the exercise of its option for a development candidate, Bristol Myers Squibb will be responsible for all development, manufacturing, regulatory and commercialization activities with respect to that development candidate. Unless earlier terminated, the BMS Collaboration Agreement will expire (i) on a country-by-country basis and licensed product-by-licensed product basis, on the date of expiration of the royalty payment obligations under the BMS Collaboration Agreement with respect to such licensed product in such country and (ii) in its entirety upon the earlier of (a) the expiration of the royalty payment obligations under the BMS Collaboration Agreement with respect to all licensed products in all countries or (b) upon Bristol Myers Squibb’s decision not to exercise any option on or prior to the applicable option deadlines. Bristol Myers Squibb has the right to terminate the BMS Collaboration Agreement for convenience upon prior written notice to the Company. Either party has the right to terminate the BMS Collaboration Agreement (a) for the insolvency of the other party or (b) subject to specified cure periods, in the event of the other party’s uncured material breach. The Company has the right upon prior written notice to terminate the BMS Collaboration Agreement in the event that Bristol Myers Squibb or any of its affiliates asserts a challenge against the Company’s patents. The Company identified multiple performance obligations at the inception of the BMS Collaboration Agreement consisting of research and development services and material rights related to additional developmental targets. The transaction price of $70.0 million was allocated to the performance obligations based upon their relative stand-alone selling price and will be recognized over time as the underlying research and development services are performed. The Company recognizes revenue for research and development services under the BMS Collaboration Agreement using a cost-based input measure. In applying the cost-based input method of revenue recognition, the Company will use actual costs incurred relative to budgeted costs expected to be incurred. These costs consist primarily of internal employee efforts and third-party contract costs. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligation over the estimated service period. The Company had $45.3 million of deferred revenue, current and $5.9 million of deferred revenue, non-current, at December 31, 2022 related to the BMS Collaboration Agreement. The Company had $32.8 million of deferred revenue, current and $30.7 million of deferred revenue, non-current, at December 31, 2021 related to the BMS Collaboration Agreement. Vertex Collaboration Agreement In November 2019, the Company entered into a Master Collaboration Agreement (the “Vertex Collaboration Agreement”) with Vertex, to perform strategic research leveraging the Company’s ETB technology platform to discover and develop novel targeted biologic therapies for applications outside of oncology. In October 2021, the Company received a notice of termination from Vertex for the Vertex Collaboration Agreement. The termination of the Vertex Collaboration Agreement was effective in October 2021. There are no ongoing activities or economic obligations in connection with the Vertex Collaboration Agreement. With the termination of the agreement, the Company’s performance obligations under the were completed in the fourth quarter of 2021 and the remaining unrecognized transaction price of $14.6 million was recognized as research and development revenue. As of December 31, 2022 and December 31, 2021, there was no deferred revenue related to the Vertex Collaboration Agreement, respectively. Takeda Pharmaceutical Company Limited Collaboration Agreements Research and development revenue from a previously related party was with Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”) Year Ended December 31, 2022 2021 Takeda Development and License Agreement $ — $ 13,114 Takeda Multi-Target Agreement 2,586 22 Total research and development revenue, previously related party $ 2,586 $ 13,136 Takeda Development and License Agreement In September 2018, the Company entered into a Development Collaboration and Exclusive License Agreement, as amended, with Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda, for the development and commercialization of products incorporating or comprised of one or more CD38 SLT-A fusion proteins (“Licensed Products”) for the treatment of patients with diseases such as multiple myeloma (the “Takeda Development and License Agreement”). In April 2021, the Company received a notice of termination from Takeda for the Takeda Development and License Agreement. F . As of the same date, the Company assumed full rights to MT-0169, including full control of MT-0169 clinical development, per the terms of the terminated Takeda Development and License Agreement. Following the transfer of the full MT-0169 rights to the Company, the Company may owe low-single digit royalties on future net sales of MT-0169 to Takeda as well as to certain third-party licensors. The Company may also owe certain third-party licensors potential aggregate clinical and regulatory milestone payments of up to $22.25 million. The Company recognized revenue using a cost-based input measure. In applying the cost-based input method of revenue recognition, the Company used actual costs incurred relative to budgeted costs expected to be incurred for the combined performance obligation. These costs consist primarily of internal employee efforts and third-party contract costs. Revenue was recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligation over the estimated service period. As of December 31, 2022 and December 31, 2021, the Company had no deferred revenue related to the Takeda Development and License Agreement. Takeda Multi-Target Agreement In June 2017, the Company entered into a Multi-Target Collaboration and License Agreement with Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda (the “Takeda Multi-Target Agreement”), in which the Company agreed to collaborate with Takeda to identify and generate ETBs, against two targets designated by Takeda. In March 2022, following the Company’s request to bring the agreement to an end, the Company and Takeda mutually agreed to terminate the Takeda Multi-Target Agreement. As a result of the termination, the Company regained full rights to pursue the targets worked on under the Takeda Multi-Target Agreement. There are no ongoing activities or economic obligations in connection with the Takeda Multi-Target Agreement. As of December 31, 2022, there was no deferred revenue related to the performance obligation. As of December 31, 2021, deferred revenue was $2.6 million and the remaining unrecognized transaction price of $2.6 million was recognized as research and development revenue in the first quarter of 2022 Grant Agreements I n September 2018, the Company entered into a Cancer Research Agreement (the “CD38 CPRIT Agreement”) with the Cancer Prevention and Research Institute of Texas (“ was extended in September 2022, under which CPRIT awarded a to fund research of a cancer therapy involving a CD38 targeting ETB Pursuant to the CD38 CPRIT Agreement, the Company may also use such funds to develop a replacement CD38 targeting ETB, with or without a partner. During the twelve months ended December 31, 2022 and December 31, 2021, the Company recognized no grant revenue under these awards. Qualified expenditures submitted for reimbursement in excess of amounts received are recorded as receivables in Grant revenue receivable. At December 31, 2022 , the Company had no grant revenue receivable. |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Fair Value Measurements | NOTE 4—MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS The following table sets forth the Company’s financial assets (cash equivalents and available-for-sale marketable securities) at fair value on a recurring basis as of December 31, 2022 and 2021: Basis of Fair Value Measurements December 31, 2022 Level 1 Level 2 Level 3 Money market funds $ 24,546 $ 24,546 $ — $ — Commercial paper 21,134 — 21,134 — United States Treasury Bills 10,702 — 10,702 — Cash 2,500 2,500 — — Total $ 58,882 $ 27,046 $ 31,836 $ — Amounts included in: Cash and cash equivalents $ 30,023 Marketable securities, current 28,859 Total cash equivalents and marketable securities $ 58,882 Basis of Fair Value Measurements December 31, 2021 Level 1 Level 2 Level 3 Money market funds $ 24,058 $ 24,058 $ — $ — Commercial paper 103,113 — 103,113 — United States Treasury Bills 14,023 — 14,023 — Government-related debt securities 5,185 — 5,185 — Corporate Bonds 5,726 — 5,726 Total $ 152,105 $ 24,058 $ 128,047 $ — Amounts included in: Cash and cash equivalents $ 25,058 Marketable securities, current 118,061 Marketable securities, non-current 8,986 Total cash equivalents and marketable securities $ 152,105 The Company invests in highly-liquid, investment-grade securities. The following is a summary of the Company’s available-for-sale securities at December 31, 2022 and 2021: December 31, 2022 Cost Basis Unrealized Gain Unrealized Loss Fair Value Cash equivalents - money market funds, commercial paper $ 30,022 $ 1 $ — $ 30,023 Marketable securities, current - commercial paper, Treasury bills 28,926 — (67 ) 28,859 December 31, 2021 Cost Basis Unrealized Gain Unrealized Loss Fair Value Cash equivalents - money market funds, commercial paper and corporate bonds $ 25,058 $ — $ — $ 25,058 Marketable securities, current - commercial paper, Treasury bills and corporate bonds 118,084 6 (29 ) 118,061 Marketable securities, non-current - Treasury bills 9,011 — (25 ) 8,986 The following summarized the contractual maturities of the Company’s available-for-sale investments at December 31, 2022 and 2021: December 31, 2022 Cost Basis Fair Value Due in one year or less $ 58,948 $ 58,882 Due after one year through five years — — Total $ 58,948 $ 58,882 December 31, 2021 Cost Basis Fair Value Due in one year or less $ 143,142 $ 143,119 Due after one year through five years 9,011 8,986 Total $ 152,153 $ 152,105 The Company received no proceeds from the sale of available-for-sale securities for the years ended December 31, 2022 and 2021, respectively, with no realized gain for the years ended December 31, 2022 and 2021. The basis on which the cost of the security sold was determined is by specific share identification. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 5—PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): December 31, 2022 2021 Laboratory equipment $ 21,831 $ 19,211 Leasehold improvements 12,971 12,822 Furniture and fixtures 518 471 Computer and equipment 658 658 35,978 33,162 Less: Accumulated depreciation (21,346 ) (13,853 ) Total property and equipment, net $ 14,632 $ 19,309 Depreciation expense was $7.7 million and $6.6 million for the years ended December 31, 2022 and 2021, respectively. In connection with the continued expansion of the Company’s facilities, at December 31, 2022 and 2021, the Company had net Asset Retirement Obligation (ARO) assets totaling $0.3 million and $0.6 million, respectively. The ARO assets are included in Leasehold improvements. For the year ended December 31, 2022 and December 31, 2021 , the Company recorded a non-cash adjustment related to the ARO assets of $ 0.2 million and zero million, respectively. See Note 9 “Leases” for further discussion. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | NOTE 6—BALANCE SHEET COMPONENTS Accrued liabilities comprise the following (in thousands): December 31, 2022 December 31, 2021 Accrued liabilities: General and administrative $ 855 $ 794 Clinical trial related costs 1,327 1,134 Non-clinical research and manufacturing operations 1,779 2,153 Payroll related 4,828 5,388 Other accrued expenses 34 46 Total Accrued liabilities $ 8,823 $ 9,515 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 7 — RELATED PARTY TRANSACTIONS Takeda In connection with the Takeda Multi-Target Agreement described in Note 3, “Research and Development Collaboration Agreements”, T akeda became a related party, Refer to Note 11, “Stockholders’ Equity”, for more detail about the Takeda Stock Purchase Agreement. Additionally, Jonathan Lanfear, a director of the Company, was the Vice President and Global Head of Oncology and Neuroscience Business Development for Takeda until September 25, 2020. In August 2021, Takeda ceased to be a related party after a sale of the above-mentioned shares . |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | NOTE 8 — BORROWING ARRANGEMENTS K2 Health Ventures Loan and Security Agreement In May 2020, the Company entered into the K2 Loan and Security Agreement in the amount of $45.0 million. The K2 Loan and Security Agreement was drawable in three tranches and to date the Company has drawn down $35.0 million with the remaining tranche of $10.0 million having lapsed as of December 31, 2021 . Pursuant to the terms of the K2 Loan and Security Agreement, the principal accrues interest at an annual rate equal to the greater of 8.45 % or the sum of the Prime Rate plus 5.2%. In April 2022, the K2 Loan and Security Agreement was amended in exchange for a $0.3 million amendment fee so that (i) payments will be interest only until the loan’s maturity date of June 1, 2024 and (ii) the minimum cash covenant will apply for the entire term of the K2 Loan and Security Agreement. This amendment resulted in a debt modification with the $0.3 million amendment fee recorded as a debt discount. The K2 Loan and Security Agreement includes both financial and non-financial covenants . The Company was in compliance with the debt covenants at December 31, 2022. The Company recorded the debt net of $2.8 million comprised of deferred financing costs, debt discount and associated exit fee which are being accreted to interest expense over the term of the K2 Loan and Security Agreement using the effective interest method. Additionally, the Company incurred $0.2 million in facilities fee related to the second tranche which was previously classified as a prepaid asset. As of December 31, 2022 and December 31, 2021, the K2 Loan principal balance was $35.0 million and $35.0 million, respectively. As of December 31, 2022 and December 31, 2021, the carrying value of the long-term debt was $36.2 million and $35.5 million, respectively. Future required principal and final payments on the K2 Loan were as follows at December 31, 2022 ($ in thousands): 2023 $ — 2024 35,000 Total Principal Amounts 35,000 Final Fee Due at Maturity 2,357 Unamortized discount, deferred costs and final fee (1,189 ) Total Long-Term Debt, net 36,168 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | NOTE 9 – LEASES The Company has operating leases for administrative offices and research and development facilities, and certain finance leases for equipment. The operating leases have remaining terms of less than four years to less than seven years. Leases with an initial term of 12 months or less will not be recorded on the consolidated balance sheets as operating leases or finance leases, and the Company will recognize lease expense for these leases on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term for seven years. The exercise of lease renewal options for the Company’s existing leases is at the Company’s sole discretion and not included in the measurement of lease liability and ROU asset as they are not reasonably certain to be exercised. Certain finance leases also include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The leases do not contain any residual value guarantees or material restrictive covenants . In September 2021, the Company permanently vacated its office space of approximately 10,000 square feet in Jersey City, New Jersey. The space was vacated because employees have transitioned to long-term remote working arrangements or the Company’s office space in New York, New York. The abandonment of leased space is an indicator of impairment and the Company assessed the lease ROU asset for impairment. In July 2022, the Company exercised its option to extend the term for its lease of its principal executive office at 9301 Amberglen Blvd, Building J, Austin TX 78729 (the “Property”) for an additional five-year On October 18, 2022, the Company entered into that certain Fourth Amendment to Lease between the Company and NW Austin Office Partners LLC (the “Lease Amendment”) which amended the Lease Agreement to document the exercise of its option to extend the term of its lease of the Property for an additional six-year six-year Changes in the carrying amounts of the Company’s AROs for the years ended December 31, 2022 and 2021 are shown below (in thousands): 2022 2021 Balance at beginning of year $ 1,625 $ 1,490 Revisions in estimated cash flows (454 ) — Accretion expense 124 135 Balance at end of year $ 1,295 $ 1,625 In connection with the extension of the lease term for the Property, the original estimated cash flows for the related asset retirement obligation (ARO) was reduced by $0.5 million for the year ended December 31, 2022. Due to the change in estimated cash flows, the Company recorded a non-cash adjustment to the remaining ARO asset balance of $0.2 million, which is recorded within Leasehold Improvements, see Note 5 “Property and Equipment”. As the reduction of the ARO was greater than the ARO asset balance, the remainder of the non-cash adjustment was recorded to the ROU asset. For the year ended December 31, 2022, the Company recorded non-cash adjustment to the ROU assets for $0.3 million related to the decrease of the ARO. For the year ended December 31, 2021, the Company recorded a non-cash impairment charges related to the lease ROU assets of $0.6 million, which is recorded in general and administrative expenses. As of December 31, 2022, the Company did not have any operating and finance leases that have not yet commenced. The components of lease expense for the years ended December 31, 2022 and 2021 were as follows (in thousands): 2022 2021 Operating leases Operating lease expense $ 2,611 $ 2,778 Variable lease expense 524 476 Total operating lease expense $ 3,135 $ 3,254 The following table summarizes the balance sheet classification of leases at December 31, 2022 (in thousands): Operating leases Operating lease right-of-use assets $ 11,132 Operating lease liabilities, current 1 $ 2,182 Operating lease liabilities, non-current 12,231 Total operating lease liabilities $ 14,413 1. Included in other current liabilities. The following table presents other information on leases as of December 31, 2022 and December 31, 2021 (in thousands): 2022 2021 Weighted average remaining lease term, operating leases 5.54 years 5.65 years Weighted average discount rate, operating leases 8.21 % 7.02 % Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2022 (in thousands): Operating Leases 2023 3,255 2024 3,369 2025 3,299 2026 2,564 Thereafter 5,509 Total lease payments 17,996 Less: Imputed interest (3,583 ) Total lease liabilities $ 14,413 Supplemental cash flow information related to the Company’s leases were as follows for the years ended December 31, 2022 and 2021 (in thousands): 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows operating leases $ 3,252 $ 3,204 Financing cash flows finance leases $ — $ 1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10—COMMITMENTS AND CONTINGENCIES Commitments The Company has entered into project work orders for each of its clinical trials with CROs and related laboratory vendors. Under the terms of these agreements, the Company is required to pay certain upfront fees for direct services costs. Based on the particular agreement some of the fees may be for services yet to be rendered and are reflected as a current prepaid asset and have an unamortized balance of approximately $0.5 million at December 31, 2022. The Company has entered into agreements with CROs and other external service providers for services, primarily in connection with the clinical trials and development of the Company’s drug candidates. The Company was contractually obligated for up to approximately $46.7 million of future services under these agreements at December 31, 2022, for which amounts have not been accrued as services have not been performed. The Company’s actual contractual obligations will vary depending upon several factors, including the progress and results of the underlying services. The Company has entered into estimated purchase obligations which in total range from $4.9 million to $5.5 million and includes signed orders for capital equipment. Contingencies In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to vendors, suppliers, lessors, business partners, collaborators and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by or on behalf of the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements and may enter in the future with its directors and certain of its officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors and certain of its officers and employees, and former officers and directors in certain circumstances. The Company maintains product liability insurance, clinical trial insurance and comprehensive general liability insurance, which may cover certain liabilities arising from its indemnification obligations. It is not possible to determine the maximum potential amount of exposure under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular indemnification obligation. Such indemnification obligations may not be subject to maximum loss clauses. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations or cash flows of the Company. The Company believes that its product liability, clinical trial and comprehensive general liability insurance are adequate for current operations. However, the coverage limits of this insurance may not be adequate to cover all potential claims. Product liability, clinical trial and comprehensive general liability insurance is expensive and may be difficult to obtain or maintain on commercially reasonable terms. A successful claim against the Company in excess of the Company’s insurance coverage or outside the scope of an indemnity given by any vendors, lessors, business partners, collaborators and other parties in Company agreements could adversely affect the Company’s results of operations . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11—STOCKHOLDERS’ EQUITY Private Placement and Related Warrants On August 1, 2017, the Company entered into a securities purchase agreement with Longitude Venture Partners III, L.P. and certain other accredited investors (the “Longitude Securities Purchase Agreement”), pursuant to which the Company sold an aggregate of 5,793,063 units (the “Units”) having an aggregate purchase price of $40.0 million (“PIPE Financing”), each such Unit consisting of (i) one (1) share (the “Shares”) of our common stock and (ii) a warrant (the “Private Placement Warrants”) to purchase 0.5 shares of our common stock (the “Private Placement”). The Private Placement was pursuant to equity commitment letter agreements entered into by and between the Company and investors in March 2017 and June 2017. The purchase price per Unit was $6.9048. The Warrants are exercisable for a period of seven years from the date of their issuance at a per-share exercise price of $6.8423 (which exercise price shall be payable in cash or through a cashless exercise mechanic), subject to certain adjustments as specified in the Warrants. At December 31, 2022, there were warrants outstanding under this agreement to purchase 2,896,528 shares of common stock. The warrants were valued at $16.3 million using the Black-Scholes model and recorded in additional paid-in capital. The Black-Scholes inputs used were: expected dividend rate of 0%, expected volatility of 147%, risk free interest rate of 2.07%, and expected term of 7.0 years. The warrants were exercisable upon issuance and expire August 1, 2024. In December 2015, the Company entered into an agreement with Wedbush (“Wedbush Agreement”), which was subsequently amended in December 2017, related to Wedbush’s services associated with the equity financing under the Longitude Securities Purchase Agreement. As part of the Wedbush Agreement, the Company issued warrants to purchase 57,930 shares of its common stock (the “Wedbush Warrants”). The Wedbush Warrants are exercisable for a period of seven years from the date of their reissuance at a per-share exercise price of $6.8423 (which exercise price shall be payable in cash or through a cashless exercise mechanic), subject to certain adjustments as specified in the Warrants. At December 31, 2022, there were Wedbush Warrants outstanding to purchase 57,930 shares of common stock . The Wedbush Warrants were valued at $ million using the Black-Scholes model . The Black-Scholes inputs used were: expected dividend rate of 0 %, expected volatility of 108 %, risk free interest rate of %, and expected term of 7.0 years . The warrants were exercisable upon issuance and expire December 1, 2024 . Subsequent Private Placements In connection with the execution of the Takeda Multi-Target Agreement, the Company entered into a stock purchase agreement with Takeda (the “Takeda Stock Purchase Agreement”). Pursuant to the Takeda Stock Purchase Agreement, following the consummation of the Private Placement, Takeda purchased 2,922,993 shares of the Company common stock, at a price per share of $6.8423, for an aggregate purchase price of $20.0 million. In connection with the execution of the Vertex Collaboration Agreement, the Company entered into a stock purchase agreement with Vertex (the “Vertex Stock Purchase Agreement”). Pursuant to the Vertex Stock Purchase Agreement, Vertex purchased 1,666,666 shares of the Company common stock, at a price per share of $9.00, for an aggregate purchase price of $15.0 million. See Note 3, “ ” Public Offerings On September 25, 2018, the Company closed its underwritten public offering (the “2018 Public Offering”) of 9,430,000 shares of its common stock, which included the exercise in full by the underwriters of their option to purchase 1,230,000 additional shares of common stock, at a price to the public of per share. The net proceeds to the Company from the 2018 Public Offering, after deducting the underwriting discounts and commissions and offering expenses payable by the Company, were approximately . On November 25, 2019, the Company closed its underwritten public offering (the “2019 Public Offering”) of 6,900,000 shares of its common stock at a price to the public of per share, and 250 shares of newly designated Series A Convertible Preferred Stock (“Series A Preferred Stock”) at a price to the public of $8.00 per share. The offering included The net proceeds to the Company from the offering, after deducting the underwriting discounts and commissions and offering expenses payable by the Company, were approximately . Each share of Series A Preferred Stock is convertible to 1,000 shares of Common Stock, provided that the holder of Series A Preferred Stock will be prohibited from converting the Series A Preferred Stock into shares of common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 9.99% of the total number of shares of the Company’s common stock then issued and outstanding. In the event of the Company’s liquidation, dissolution, or winding up, holders of Series A Preferred Stock will receive a payment equal to $0.001 per share of Series A Preferred Stock before any proceeds are distributed to the holders of the Company’s common stock and pari passu with any distributions to the holders of the Company’s Series A Preferred Stock. Holders of Series A Preferred Stock participate in earnings equally with Common Stock shareholders, with the same dividend rate, but do not participate in losses as discussed in Note 2, “Net Loss per Common Share”. Based on the guidance in ASC 470-20-20, the Company determined that a BCF existed, as the effective conversion price for the Series A Preferred Stock at issuance was less than the fair value of the common stock which the preferred shares are convertible into. The BCF based on the intrinsic value of the date of issuances for the Series A Preferred Stock was $0.7 million . In July 2020, the Company raised gross proceeds of approximately $50.0 million and net proceeds of $48.5 million through at-the-market sales (“ATM”) of its common stock pursuant to its ATM facility. The Company sold approximately 3.6 million shares of the Company’s common stock at a purchase price of $12.00 per share and 0.5 million shares at a purchase price of $12.70, in each case the market price at the time of sale. These sales constituted the full available dollar amount under the Company’s current ATM facility, and with such completion, this ATM facility terminated. On August 7, 2020, the Company filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-3 for $300.0 million of securities (the “Shelf Registration Statement”), inclusive of a $100.0 million ATM program. This Shelf Registration Statement is in replacement of the Company’s existing registration statement on Form S-3 and incorporates the unsold balance remaining thereto. The SEC declared the Shelf Registration Statement effective on August 17, 2020 and the Company may make sales of securities from time to time, depending on market conditions, pursuant to the Shelf Registration Statement. In February 2021, t he Company, completed a public offering of 6.0 million shares of common stock at an offering price of $12.65 per share. The net proceeds to the Company were $71.1 million, after deducting underwriting discounts, commissions and other estimated offering expenses paid by the Company Subsequent Common Stock Warrants On February 28, 2018, in connection with the Perceptive Credit Facility, the Company issued warrants to purchase 190,000 shares of the Company’s common stock with an exercise price of $9.58 (the “2018 Warrants”). The 2018 Warrants are exercisable for a period of seven years from the date of issuance, subject to certain adjustments as specified in the Warrants. The 2018 Warrants were classified as equity and recorded in additional paid-in capital. They were valued at $1.5 million using the Black-Scholes model. The Black-Scholes inputs used were: expected dividend rate of 0%, expected volatility of 105%, risk free interest rate of 2.8%, and expected term of 7.0 years. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans and Stock Based Compensation | NOTE 12—EQUITY INCENTIVE PLANS AND STOCK-BASED COMPENSATION 2018 Equity Incentive Plan In May 2018, the Company adopted the 2018 Equity Incentive Plan (“2018 Plan”). The 2018 Plan serves as a successor to the 2004 Amended and Restated Equity Incentive Plan (“2004 Plan”) Stock Plan, as amended (“2009 Plan”) 2014 Equity Incentive Plan, as amended, 2004 Employee Stock Purchase Plan On January 1, 2017, an additional 9,091 shares were authorized for issuance under the 2004 Employee Stock Purchase Plan (“2004 Purchase Plan”) pursuant to the annual automatic increase to the authorized shares under the 2004 Purchase Plan. The 2004 Purchase Plan contains consecutive, overlapping 24 month offering periods. Each offering period includes four six-month Equity Incentive Plan The following table summarizes information about stock option activity for years ended December 31, 2022 and 2021: Outstanding Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions): Balances, December 31, 2020 6,697,927 $ 9.13 7.76 $ 13.79 Granted 2,683,818 $ 12.84 Exercised (320,716 ) $ 5.05 Cancelled (1,206,556 ) $ 11.46 Balances, December 31, 2021 7,854,473 $ 10.21 6.72 $ 0.95 Granted 2,920,189 $ 2.21 Exercised (46,598 ) $ 0.71 Cancelled (2,281,601 ) $ 9.44 Balances, December 31, 2022 8,446,463 $ 7.70 7.09 $ - Vested and expected to vest, December 31, 2022 8,446,463 $ 7.70 7.09 $ - Exercisable at December 31, 2022 4,852,746 $ 8.91 6.07 $ - At December 31, 2022, stock options outstanding and exercisable by exercise price were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.33-1.27 1,058,749 7.43 $ 0.92 298,909 $ 1.27 $ 1.70-2.35 87,053 8.97 $ 2.30 3,453 $ 1.85 $ 2.77-2.77 1,643,051 8.63 $ 2.77 232,303 $ 2.77 $ 3.08-5.81 815,521 6.29 $ 4.71 733,059 $ 4.75 $ 6.31-6.31 913,037 5.41 $ 6.31 913,037 $ 6.31 $ 6.52-9.40 1,082,012 6.08 $ 8.80 945,395 $ 8.95 $ 10.78-13.99 454,814 6.04 $ 12.35 310,753 $ 12.39 $ 14.05-14.05 1,259,793 7.63 $ 14.05 584,120 $ 14.05 $ 14.50-14.94 961,442 7.08 $ 14.57 685,157 $ 14.57 $ 15.43-61.27 170,991 7.12 $ 16.79 146,560 $ 16.89 $ 0.33-61.27 8,446,463 7.09 $ 7.70 4,852,746 $ 8.91 The total intrinsic value of stock options exercised during the years ended December 31, 2022 and 2021 was zero and $1.2 million, respectively, as determined at the date of the option exercise. Cash received from stock option exercises was zero and $1.6 million for the years ended December 31, 2022 and 2021, respectively. The Company issues new shares of common stock upon exercise of options. In connection with the exercises, there is no tax benefit realized by the Company due to the Company’s current loss position. Equity-Based Compensation Expense Stock-based compensation expense, which consists of the compensation cost for employee stock options and the value of options issued to non-employees for services rendered, was allocated to research and development and general and administrative in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2022 2021 Research and development $ 6,096 $ 8,839 General and administrative 5,813 7,792 Total stock-based compensation $ 11,909 $ 16,631 At December 31, 2022, the total unrecognized compensation cost related to unvested stock-based awards granted to employees under the Company’s 2018 equity incentive plan was approximately $17.0 million. This cost will be recorded as compensation expense on a ratable basis over the remaining weighted average requisite service period of approximately 2.24 years. Valuation Assumptions The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period. The fair value of employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2022 2021 Employee Stock Options: Risk-free interest rate 2.35 % 0.93 % Expected term (in years) 6.08 6.08 Dividend yield — — Volatility 88.59 % 113.25 % Weighted-average fair value of stock options granted $ 1.65 $ 10.81 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13—INCOME TAXES For the years ended December 31, 2022 and 2021, the Company recorded an income tax provision expense of $0.1 million and zero, respectively. A reconciliation of income taxes at the statutory federal income tax rate to net income taxes included in the accompanying statements of operations is as follows (in thousands): 2022 2021 U.S. federal taxes (benefit) at statutory rate $ (19,459 ) $ (17,431 ) State federal income tax benefit (8,653 ) (3,834 ) Permanent differences 3 15 Stock compensation 1,964 1,666 Research and development credits (2,494 ) (2,840 ) Change in valuation allowance due to operations 30,619 24,219 Change in state rate and carryovers (1,927 ) (1,795 ) Total $ 53 $ — The tax effects of temporary differences that give rise to significant components of the net deferred tax assets are as follows (in thousands): December 31, 2022 2021 Deferred tax assets Net operating loss carryforward $ 53,957 $ 63,372 Interest — 603 Research and development credits 15,235 12,422 Deferred stock compensation 8,086 5,916 Deferred revenue 16,127 699 Lease liability 4,516 3,095 Accrued expenses and other 1,846 1,636 Capitalized Research & Experimental Expenditures 19,764 — Total deferred tax assets 119,531 87,743 Total deferred tax liabilities Depreciable and amortizable assets (1,329 ) (1,459 ) Right-of-use asset (3,488 ) (2,189 ) Total deferred tax liabilities (4,817 ) (3,648 ) Less: Valuation allowance (114,714 ) (84,095 ) Net deferred tax assets $ — $ — At December 31, 2022, the Company had federal net operating loss carryforwards of approximately $506.7 million and state net operating loss carryforwards of approximately $13.0 million available to offset future taxable income. $286.7 million of the Company’s federal net operating loss carryforwards will begin to expire in 2025 through 2037, if not used before such time to offset future taxable income or tax liabilities. $220.0 million of the Company’s federal net operating loss has an indefinite life and will not expire. A portion of the Company’s net operating loss carryforward is subject to certain limitations on annual utilization in case of changes in ownership, as defined by federal and state tax laws. The annual limitation may result in the expiration of the net operating loss before utilization. The Company currently anticipates $253.2 million of NOLs to expire unutilized due to a previous section 382 limitation. At December 31, 2022, the Company had federal research and development tax credits available to offset future taxes of approximately $22.4 million, which expire in the year beginning 2022, and state research and development tax credits of approximately $2.9 million, which expire beginning 2033. The Company currently anticipates $9.5 million of federal research and development tax credits to expire unutilized due to a previous section 382 limitation. The Company has established a valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets. The valuation allowance increased by $30.6 million from continuing operations. The Company has no uncertain tax positions as of December 31, 2022 and 2021. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2022 and 2021, the Company had no accrued interest or penalties due to the Company’s net operating losses available to offset any tax adjustment. The Company currently has no federal or state tax examinations in progress nor has it had any federal or state tax examinations since its inception. As a result of the Company’s net operating loss carryforwards, all of its tax years are subject to federal and state tax examination. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | NOTE 14—EMPLOYEE BENEFIT PLAN The Company sponsors a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code covering all full-time employees (“Molecular Templates 401(k) Plan”). Participants meeting certain criteria, as defined in the plan document, are eligible for a matching contribution, in amounts determined at the discretion of the Company. Contributions to the Molecular Templates 401(k) Plan by the Company were $0.7 million and $0.8 million for the years ended December 31, 2022 and 2021, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15—SUBSEQUENT EVENTS Strategic Reprioritization On March 29, 2023, the Company’s Board of Directors approved a strategic reprioritization and corresponding reduction in workforce, designed to focus on the clinical development programs for MT-6402, MT-8421 and MT-0169, and preclinical activities related to the Company’s collaboration with Bristol Myers Squibb. The Restructuring will reduce the Company’s current workforce from approximately 222 full-time employees to approximately 50% of that number. The Restructuring will result in the cessation of the Company’s MT-5111 clinical development program, and will focus the majority of the Company’s pre-clinical efforts around activities related to the Bristol Myers Squibb collaboration. The Company estimates that it will incur approximately $0.4 million of costs in connection with the reduction in workforce related to severance pay and other related termination benefits. The Company communicated the workforce reduction on March 30, 2023 and expects the majority of the costs associated with the Restructuring to be incurred during the quarter ending June 30, 2023. The Company anticipates incurring additional costs related to the Restructuring, however, such costs cannot be reasonably estimated as of the time of the filing of this Annual Report on Form 10-K. Collaboration Agreements In March 2023, the research program for one of the collaboration’s targets has been completed and the related performance obligation has been deemed complete by the Company. At December 31, 2022, the Company had $25.8 million of deferred revenue, current related to the completed performance obligation. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiary and reflect the elimination of intercompany accounts and transactions . |
Going Concern | Going Concern The Company has adopted as required the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern, which requires that management contemplate the realization of assets and liquidation of liabilities in the normal course of business, and evaluate whether there are relevant conditions and events that in aggregate raise substantial doubt about the entity’s ability to continue as a going concern and to meet its obligations as they become due within one year after the date that the financial statements are issued. Under this standard, management’s assessment shall not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. There is substantial doubt about the Company’s ability to continue as a going concern as of the date of this Annual Report on Form 10-K. This substantial doubt relates to the Company’s future compliance with the financial covenant in its Loan and Security Agreement with K2 HealthVentures LLC (the “K2 Loan and Security Agreement”), which requires the Company to certify monthly that its has cash, cash equivalents and marketable securities of at least five times the Company’s cash monthly burn as defined in the agreement (the “Financial Covenant”), as well as the Company’s ability to avoid triggering an event of default related to its solvency (an “Insolvency Event of Default”) under the K2 Loan and Security Agreement. Currently, based on anticipated cost-savings from the restructuring, discussed in Note 15 “Subsequent Events,” the Company anticipates continued compliance with, and the ability to avoid triggering an event of default related to, an Insolvency Event of Default or the Financial Covenant into the fourth quarter 2023. However, t he Company will require additional funding in order to meet its covenant requirements and ongoing operations. If the Company cannot raise additional capital to maintain its compliance thereafter or negotiate an amendment to the Financial Covenant or the Insolvency Events of Default, then the Company will be in default of the K2 Loan and Security Agreement and the repayment of the Company’s indebtedness may be accelerated in full by K2 HealthVentures LLC. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and to provide sufficient certainty that it will continue as a going concern. As of December 31, 2022, the Company had an accumulated deficit of $444.8 million. At December 31, 2022, the Company had cash, cash equivalents, and marketable securities of $61.0 million, including borrowings of $35.0 million under the K2 Loan and Security Agreement whose scheduled maturity date for repayment is June 1, 2024, but a default of the Financial Covenant or an Insolvency Event of Default would potentially trigger accelerated repayment. There can be no assurances that the Company will be able to raise sufficient capital to fund ongoing operations and maintain compliance with, and avoid triggering an event of default related to, an Insolvency Event of Default or the Financial Covenant beyond the fourth quarter of 2023 and/or be successful at negotiating an amendment to the K2 Loan and Security Agreement. If the Company is unable to obtain additional capital and continue as a going concern, it might have to liquidate its assets, and the values it receives for its assets in liquidation or dissolution could be significantly lower than the values reflected in its financial statements These financial statements do not give effect to any adjustments which will be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements. |
Reclassifications | Reclassifications The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the recorded amounts reported therein. A change in facts or circumstances surrounding the estimates could result in a change to estimates and impact future operating results. Certain accounts in the prior financial statements have been reclassified for comparative purposes to conform to the presentation in the current financial statements. These reclassifications have no material effect on previously reported financials. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America as defined by the FASB ASC requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss applicable to common stockholders by the weighted average number of shares of Common Stock outstanding during the period without consideration of Common Stock equivalents. Since the Company was in a loss position for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods, as the inclusion of all potential common shares outstanding is anti-dilutive. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers temporary investments with original maturities of three months or less from date of purchase to be cash equivalents. Restricted cash is recorded in other assets, based on when the restrictions expire. Other assets include $2.5 million and $3.7 million of restricted cash at December 31, 2022 and December 31, 2021, respectively, related to letters of credit in lieu of a cash deposit for the Company’s leases. |
Fair Value Measurement | Fair Value Measurement The Company accounts for its marketable securities in accordance with ASC 820 “Fair Value Measurements and Disclosures.” Level 1 —Quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. For Level 2 securities that have market prices from multiples sources, a “consensus price” or a weighted average price for each of these securities can be derived from a distribution-curve-based algorithm which includes market prices obtained from a variety of industrial standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. Level 2 securities with short maturities and infrequent secondary market trades are typically priced using mathematical calculations adjusted for observable inputs when available. |
Marketable Securities | Marketable Securities The Company classifies its marketable securities as “available-for-sale.” Such marketable securities are recorded at fair value and unrealized gains and losses are recorded as a separate component of stockholders’ equity until realized. Realized gains and losses on sale of all such securities are reported in net loss, computed using the specific identification cost method. The Company places its marketable securities primarily in U.S. government securities, money market funds, corporate debt securities, commercial paper and certificates of deposit. The Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time and extent to which the fair value has been less than the Company’s cost basis, the financial condition and near-term prospects of the investee, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market value. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash and cash equivalents, investments, long term debt and accounts receivable. The Company’s cash and cash equivalents are with two major financial institutions in the United States. The Company performs an ongoing credit evaluation of its strategic partners’ financial conditions and generally does not require collateral to secure accounts receivable from its strategic partners. The Company’s exposure to credit risk associated with non-payment will be affected principally by conditions or occurrences within Millennium Pharmaceuticals, Inc., a wholly-owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”), Vertex Pharmaceuticals Incorporated (“Vertex”) and Bristol Myers Squibb Company (“Bristol Myers Squibb”) Bristol Myers Squibb Drug or biologic candidates developed by the Company may require approvals or clearances from the U.S. Food and Drug Administration (“FDA”) or international regulatory agencies prior to commercial sales. There can be no assurance that the Company’s drug or biologic candidates will receive any of the required approvals or clearances. If the Company were to be denied approval or clearance or any such approval or clearance were to be delayed, it would have a material adverse impact on the Company. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Major additions and improvements are capitalized while maintenance and repairs that do not improve or extend the useful life of the respective asset are expensed. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets. |
Patents | Patents The gross value of Patents was $0.7 million and $1.1 million at December 31, 2022 and December 31, 2021, respectively, and are recorded in Other assets. The Company recorded $0.1 million of amortization expense for the years ended December 31, 2022 and December 31, 2021, with estimated expense to remain $0.1 million for each of the four successive years subsequent to December 31, 2022. For the year ended December 31, 2022, the Company recorded impairments of $0.4 million related to patents, which is recorded in general and administrative expenses. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets When events, circumstances and/or operating results indicate that the carrying values of long-lived assets might not be recoverable through future operations, the Company prepares projections of the undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the projections indicate that the recorded amounts are not expected to be recoverable, such amounts are reduced to estimated fair value. Fair value is estimated based upon internal evaluation of each asset that includes quantitative analyses of net revenue and cash flows, review of recent sales of similar assets and market responses based upon discussions in connection with offers received from potential buyers. Certain factors used for these types of nonrecurring fair value measurements are considered Level 3 inputs. The Company had no material impairments recorded for the years ended December 31, 2022 and 2021. |
Long-term Debt | Long-term debt The Company records debt issuance costs related to its long-term debt as a deduction from the carrying amount. The costs are amortized to interest expense over the life of the debt. |
Revenue Recognition | Revenue Recognition The Company’s revenue has consisted principally of collaboration agreements for research and development revenue and grant revenue. Grant revenue relates to the grants the Company has received from governmental bodies that are conditional cost reimbursement grants and we recognize revenue as allowable costs are incurred. Amounts collected in excess of revenue recognized are recorded as deferred revenue. The Company’s collaboration arrangements may include one or more of the following: licenses, or options to obtain licenses ; up-front fees; research and development activities and associated costs ; milestone payments related to the achievement of development, regulatory, or commercial goals; and royalties on net sales of licensed products. Each of these payments may result in collaboration revenues or an offset against research and development expense. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements The Company identifies the goods or services promised within each collaboration agreement and assesses whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires management to make judgments about the individual promised goods or services and whether such are separable from the other aspects of the contractual relationship. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. If a promised good or service is not distinct, an entity is required to combine that promised good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The allocation of the transaction price to the performance obligations in proportion to their standalone selling prices is determined at contract inception. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the promised goods or services to a customer. The Company determines the amount of variable consideration by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment. In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if there is a significant benefit of financing. The Company assessed its collaboration agreements and concluded that no significant financing components were present. If an arrangement contains customer options that allow the customer to acquire additional goods or services, including an exclusive license to the Company’s intellectual property, the goods and services underlying the customer options are evaluated to determine whether they are deemed to represent a material right. In determining whether the customer option has a material right, the Company assesses whether there is an option to acquire additional goods or services at a discount. If the customer option is determined not to represent a material right, the option is not considered to be performance obligations at the outset of the arrangement. If the customer option is determined to represent a material right, the material right is recognized as a separate performance obligation at the outset of the arrangement. The Company allocates the transaction price to material rights based on the relative standalone selling price, which is determined based on the identified discount and the probability that the customer will exercise the option. Amounts allocated to a material right are not recognized as revenue until the option is exercised. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation as each performance obligation is satisfied over time, with progress toward completion measured based on actual costs incurred relative to total estimated costs to be incurred over the life of the contract. Recorded revenue and costs are subject to revision as the contract progresses. Such revisions may result in increases or decreases to revenue and income and are reflected in the consolidated financial statements in the periods in which they are first identified. Estimating costs under the Company’s collaboration agreements is complex and involves significant judgment. Factors that must be considered in making estimates include labor productivity and availability, the nature and technical complexity of the work to be performed, potential performance delays, availability and timing of funding from the customer and progress toward completion. Adjustments to original estimates are often required as work progresses and additional information becomes known, even though the scope of the work required under the contract may not change. Any adjustment as a result of a change in estimates is made when facts develop, events become known, or an adjustment is otherwise warranted, such as in the case of contract change orders. The Company has procedures and processes in place to monitor the actual progress of a project against estimates and the Company’s estimates are updated if circumstances are warranted. Performance obligations may include research and development services to be performed by the Company on behalf of the collaboration partner. Revenue is recognized on research and development efforts as the services are performed and presented on a gross basis, since the Company is the principal. Under collaboration agreements, the timing of revenue recognition and contract billings may differ, and result in contract assets and contract liabilities. Contract assets represent revenues recognized in excess of amounts billed under collaboration agreements and are transferred to accounts receivable when billed or billing rights become unconditional. Contract liabilities represent billings in excess of revenues recognized under collaboration agreements. |
Lease Accounting | Lease Accounting At inception of a contract, the Company determines whether an arrangement is or contains a lease. For all leases, the Company determines the classification as either operating leases or finance leases. Operating leases are included in Operating lease right-of-use assets and Operating lease liabilities in our consolidated balance sheets. Lease recognition occurs at the commencement date and lease liability amounts are based on the present value of lease payments over the lease term. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. If a lease does not provide information to determine an implicit interest rate, the Company uses its incremental borrowing rate in determining the present value of lease payments. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments under the lease. ROU assets also include any lease payments made prior to the commencement date and exclude lease incentives received. Operating lease expense is recognized on a straight-line basis over the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Lease agreements with both lease and non-lease components, are generally accounted for together as a single lease component. |
Income Taxes | Income Taxes Income taxes are recorded in accordance with ASC 740, Accounting for Income Taxes ASC 740 clarifies the accounting for uncertainty in income taxes recognized in the financial statements and provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company’s policy for recording interest and penalties associated with uncertain tax positions is to record such items as a component of tax expense. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation in accordance with ASC 718, “Compensation—Stock Compensation.” The Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the common stock. To determine the expected term of the Company’s employee stock options granted, the Company utilized the simplified approach as defined by SEC Staff Accounting Bulletin No. 107, “Share-Based Payment” |
Warrants | Warrants In conjunction with certain financing transactions, the Company issued warrants to purchase the Company’s common stock. The Company determines whether the warrants should be classified as a liability or equity according to ASC 480, “ Distinguishing Liabilities from Equity |
Research and Development Costs | Research and Development Costs Research and development expenses consist of costs such as salaries and benefits, laboratory supplies, facility costs, consulting fees and fees paid to contract research organizations (“CROs”), clinical trial sites, laboratories, other clinical service providers and contract manufacturing organizations (“CMOs”). Research and development costs are expensed as incurred. |
Comprehensive Loss | Comprehensive loss Comprehensive loss is comprised of the Company’s net loss and other comprehensive income (loss). Unrealized gain (loss) on available-for-sale marketable securities represents the only component of other comprehensive income (loss). |
Clinical Trial Accruals | Clinical Trial Accruals The Company’s preclinical and clinical trials are performed by third-party CROs and/or clinical investigators, and clinical supplies are manufactured by CMOs. Invoicing from these third parties may be monthly based upon services performed or based upon milestones achieved. The Company accrues these expenses based upon its assessment of the status of each clinical trial and the work completed, and upon information obtained from the CROs and CMOs. The Company’s estimates are dependent upon the timeliness and accuracy of data provided by the CROs and CMOs regarding the status and cost of the studies as well as management’s best estimate and may not match the actual services performed by the organizations. This could result in adjustments to the Company’s research and development expenses in future periods. To date the Company has had no significant adjustments. |
Bonus Accruals | Bonus Accruals The Company has bonus programs for eligible employees. Bonuses are determined based on various criteria, including the achievement of corporate, departmental and individual goals. Bonus accruals are estimated based on various factors, including target bonus percentages per level of employee and probability of achieving the goals upon which bonuses are based. The Company’s management periodically reviews the progress made towards the goals under the bonus programs. As bonus accruals are dependent upon management’s judgments of the likelihood of achieving the various goals, it is possible for bonus expense to vary significantly in future periods if changes occur in those management estimates. |
Segments | Segments The Company has one reportable segment and uses one measurement of results of operations to manage its business. All long-lived assets are maintained in the United States of America. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (Subtopic 470-20: Debt with Conversion and Other Options and Subtopic 815-40: Derivatives and Hedging - Contracts in Entity’s Own Equity). The new guidance simplifies accounting for convertible instruments by removing major separation models, removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The amendment is effective for the Company for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements . In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance: Disclosures by Business Entities about Government Assistance”. The amendments in this Update improve financial reporting by requiring disclosures that increase the transparency of transactions with a government. The amendments require the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy (i) the type of transaction, (ii) the accounting for the transaction, and (iii) the effect of the transaction on the entity’s financial statements. The Company adopted this standard as of January 1, 2022, using a prospective approach and it did not have a material impact on the Company’s financial statements and related disclosures. |
Research and Development Agre_2
Research and Development Agreements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Research And Development [Abstract] | |
Schedule of Research and Development Revenues Disaggregated by Location | Research and Development revenue is attributable to regions based on the location of our collaboration partner's parent company headquarters. Research and Development revenues disaggregated by location were as follows (in thousands): Year Ended December 31, 2022 2021 Japan $ 2,586 $ 13,136 United States 17,168 25,561 Total research and development revenue $ 19,754 $ 38,697 |
Schedule of Research and Development Revenue from Related Party Relates to Revenue from Research and Development Agreements | Research and development revenue from a previously related party was with Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of Takeda Pharmaceutical Company Limited (“Takeda”) Year Ended December 31, 2022 2021 Takeda Development and License Agreement $ — $ 13,114 Takeda Multi-Target Agreement 2,586 22 Total research and development revenue, previously related party $ 2,586 $ 13,136 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets (cash equivalents and available-for-sale marketable securities) at fair value on a recurring basis as of December 31, 2022 and 2021: Basis of Fair Value Measurements December 31, 2022 Level 1 Level 2 Level 3 Money market funds $ 24,546 $ 24,546 $ — $ — Commercial paper 21,134 — 21,134 — United States Treasury Bills 10,702 — 10,702 — Cash 2,500 2,500 — — Total $ 58,882 $ 27,046 $ 31,836 $ — Amounts included in: Cash and cash equivalents $ 30,023 Marketable securities, current 28,859 Total cash equivalents and marketable securities $ 58,882 Basis of Fair Value Measurements December 31, 2021 Level 1 Level 2 Level 3 Money market funds $ 24,058 $ 24,058 $ — $ — Commercial paper 103,113 — 103,113 — United States Treasury Bills 14,023 — 14,023 — Government-related debt securities 5,185 — 5,185 — Corporate Bonds 5,726 — 5,726 Total $ 152,105 $ 24,058 $ 128,047 $ — Amounts included in: Cash and cash equivalents $ 25,058 Marketable securities, current 118,061 Marketable securities, non-current 8,986 Total cash equivalents and marketable securities $ 152,105 |
Summary of Company's Available-for-Sale Securities | The Company invests in highly-liquid, investment-grade securities. The following is a summary of the Company’s available-for-sale securities at December 31, 2022 and 2021: December 31, 2022 Cost Basis Unrealized Gain Unrealized Loss Fair Value Cash equivalents - money market funds, commercial paper $ 30,022 $ 1 $ — $ 30,023 Marketable securities, current - commercial paper, Treasury bills 28,926 — (67 ) 28,859 December 31, 2021 Cost Basis Unrealized Gain Unrealized Loss Fair Value Cash equivalents - money market funds, commercial paper and corporate bonds $ 25,058 $ — $ — $ 25,058 Marketable securities, current - commercial paper, Treasury bills and corporate bonds 118,084 6 (29 ) 118,061 Marketable securities, non-current - Treasury bills 9,011 — (25 ) 8,986 |
Summary of Contractual Maturities of Available-for-Sale-Investments | The following summarized the contractual maturities of the Company’s available-for-sale investments at December 31, 2022 and 2021: December 31, 2022 Cost Basis Fair Value Due in one year or less $ 58,948 $ 58,882 Due after one year through five years — — Total $ 58,948 $ 58,882 December 31, 2021 Cost Basis Fair Value Due in one year or less $ 143,142 $ 143,119 Due after one year through five years 9,011 8,986 Total $ 152,153 $ 152,105 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consists of the following (in thousands): December 31, 2022 2021 Laboratory equipment $ 21,831 $ 19,211 Leasehold improvements 12,971 12,822 Furniture and fixtures 518 471 Computer and equipment 658 658 35,978 33,162 Less: Accumulated depreciation (21,346 ) (13,853 ) Total property and equipment, net $ 14,632 $ 19,309 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities comprise the following (in thousands): December 31, 2022 December 31, 2021 Accrued liabilities: General and administrative $ 855 $ 794 Clinical trial related costs 1,327 1,134 Non-clinical research and manufacturing operations 1,779 2,153 Payroll related 4,828 5,388 Other accrued expenses 34 46 Total Accrued liabilities $ 8,823 $ 9,515 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Required Future Principal Payments | Future required principal and final payments on the K2 Loan were as follows at December 31, 2022 ($ in thousands): 2023 $ — 2024 35,000 Total Principal Amounts 35,000 Final Fee Due at Maturity 2,357 Unamortized discount, deferred costs and final fee (1,189 ) Total Long-Term Debt, net 36,168 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Changes in Carrying Amount of Company's AROs | Changes in the carrying amounts of the Company’s AROs for the years ended December 31, 2022 and 2021 are shown below (in thousands): 2022 2021 Balance at beginning of year $ 1,625 $ 1,490 Revisions in estimated cash flows (454 ) — Accretion expense 124 135 Balance at end of year $ 1,295 $ 1,625 |
Components of Lease Expense | The components of lease expense for the years ended December 31, 2022 and 2021 were as follows (in thousands): 2022 2021 Operating leases Operating lease expense $ 2,611 $ 2,778 Variable lease expense 524 476 Total operating lease expense $ 3,135 $ 3,254 |
Schedule of Balance Sheets Classification of Leases | The following table summarizes the balance sheet classification of leases at December 31, 2022 (in thousands): Operating leases Operating lease right-of-use assets $ 11,132 Operating lease liabilities, current 1 $ 2,182 Operating lease liabilities, non-current 12,231 Total operating lease liabilities $ 14,413 1. Included in other current liabilities. |
Schedule of Leases Information | The following table presents other information on leases as of December 31, 2022 and December 31, 2021 (in thousands): 2022 2021 Weighted average remaining lease term, operating leases 5.54 years 5.65 years Weighted average discount rate, operating leases 8.21 % 7.02 % |
Schedule of Future Minimum Payments Under Operating Leases | Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2022 (in thousands): Operating Leases 2023 3,255 2024 3,369 2025 3,299 2026 2,564 Thereafter 5,509 Total lease payments 17,996 Less: Imputed interest (3,583 ) Total lease liabilities $ 14,413 |
Supplemental Cash Flow Information | Supplemental cash flow information related to the Company’s leases were as follows for the years ended December 31, 2022 and 2021 (in thousands): 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows operating leases $ 3,252 $ 3,204 Financing cash flows finance leases $ — $ 1 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Equity Incentive Plan | The following table summarizes information about stock option activity for years ended December 31, 2022 and 2021: Outstanding Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions): Balances, December 31, 2020 6,697,927 $ 9.13 7.76 $ 13.79 Granted 2,683,818 $ 12.84 Exercised (320,716 ) $ 5.05 Cancelled (1,206,556 ) $ 11.46 Balances, December 31, 2021 7,854,473 $ 10.21 6.72 $ 0.95 Granted 2,920,189 $ 2.21 Exercised (46,598 ) $ 0.71 Cancelled (2,281,601 ) $ 9.44 Balances, December 31, 2022 8,446,463 $ 7.70 7.09 $ - Vested and expected to vest, December 31, 2022 8,446,463 $ 7.70 7.09 $ - Exercisable at December 31, 2022 4,852,746 $ 8.91 6.07 $ - |
Stock Options Outstanding and Exercisable by Exercise Price | At December 31, 2022, stock options outstanding and exercisable by exercise price were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 0.33-1.27 1,058,749 7.43 $ 0.92 298,909 $ 1.27 $ 1.70-2.35 87,053 8.97 $ 2.30 3,453 $ 1.85 $ 2.77-2.77 1,643,051 8.63 $ 2.77 232,303 $ 2.77 $ 3.08-5.81 815,521 6.29 $ 4.71 733,059 $ 4.75 $ 6.31-6.31 913,037 5.41 $ 6.31 913,037 $ 6.31 $ 6.52-9.40 1,082,012 6.08 $ 8.80 945,395 $ 8.95 $ 10.78-13.99 454,814 6.04 $ 12.35 310,753 $ 12.39 $ 14.05-14.05 1,259,793 7.63 $ 14.05 584,120 $ 14.05 $ 14.50-14.94 961,442 7.08 $ 14.57 685,157 $ 14.57 $ 15.43-61.27 170,991 7.12 $ 16.79 146,560 $ 16.89 $ 0.33-61.27 8,446,463 7.09 $ 7.70 4,852,746 $ 8.91 |
Stock-Based Compensation Expense | Stock-based compensation expense, which consists of the compensation cost for employee stock options and the value of options issued to non-employees for services rendered, was allocated to research and development and general and administrative in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2022 2021 Research and development $ 6,096 $ 8,839 General and administrative 5,813 7,792 Total stock-based compensation $ 11,909 $ 16,631 |
Weighted-Average Fair Value Valuation Assumptions | The fair value of employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2022 2021 Employee Stock Options: Risk-free interest rate 2.35 % 0.93 % Expected term (in years) 6.08 6.08 Dividend yield — — Volatility 88.59 % 113.25 % Weighted-average fair value of stock options granted $ 1.65 $ 10.81 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Income Taxes at Statutory Federal Income Tax Rate to Net Income Taxes | A reconciliation of income taxes at the statutory federal income tax rate to net income taxes included in the accompanying statements of operations is as follows (in thousands): 2022 2021 U.S. federal taxes (benefit) at statutory rate $ (19,459 ) $ (17,431 ) State federal income tax benefit (8,653 ) (3,834 ) Permanent differences 3 15 Stock compensation 1,964 1,666 Research and development credits (2,494 ) (2,840 ) Change in valuation allowance due to operations 30,619 24,219 Change in state rate and carryovers (1,927 ) (1,795 ) Total $ 53 $ — |
Schedule of Significant Components of Net Deferred Tax Assets | The tax effects of temporary differences that give rise to significant components of the net deferred tax assets are as follows (in thousands): December 31, 2022 2021 Deferred tax assets Net operating loss carryforward $ 53,957 $ 63,372 Interest — 603 Research and development credits 15,235 12,422 Deferred stock compensation 8,086 5,916 Deferred revenue 16,127 699 Lease liability 4,516 3,095 Accrued expenses and other 1,846 1,636 Capitalized Research & Experimental Expenditures 19,764 — Total deferred tax assets 119,531 87,743 Total deferred tax liabilities Depreciable and amortizable assets (1,329 ) (1,459 ) Right-of-use asset (3,488 ) (2,189 ) Total deferred tax liabilities (4,817 ) (3,648 ) Less: Valuation allowance (114,714 ) (84,095 ) Net deferred tax assets $ — $ — |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Segment shares | Dec. 31, 2021 USD ($) shares | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Accumulated deficit | $ (444,768) | $ (352,050) |
Cash, cash equivalents, and marketable securities | 61,000 | |
Restricted cash included in Other assets | $ 2,489 | $ 3,668 |
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Impairment of long lived assets | $ 0 | $ 0 |
Warrants issued | shares | 0 | 0 |
Reportable segment | Segment | 1 | |
ASU No. 2021-10 | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Change In Accounting Principle Accounting Standards Update Adopted | true | |
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 01, 2022 | |
Change In Accounting Principle Accounting Standards Update Immaterial Effect | true | |
Patents | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Amortization expense | $ 100 | $ 100 |
Estimated expense, next twelve months | 100 | |
Estimated expense, year two | 100 | |
Estimated expense, year three | 100 | |
Estimated expense, year four | 100 | |
Impairments | 400 | |
Other Assets | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Gross value of patents | $ 700 | $ 1,100 |
Leasehold Improvements | Minimum | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Leasehold Improvements | Maximum | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 7 years | |
Revenue | Concentration of Credit Risk and Other Risks and Uncertainties | Takeda Pharmaceuticals Inc | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of total revenues | 13% | 34% |
Revenue | Concentration of Credit Risk and Other Risks and Uncertainties | Vertex Pharmaceuticals Inc | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of total revenues | 0% | 48% |
Revenue | Concentration of Credit Risk and Other Risks and Uncertainties | Bristol Myers Squibb | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of total revenues | 87% | 18% |
K2 Loan and Security Agreement | ||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||
Borrowings | $ 35,000 | $ 35,000 |
Maturity date | Jun. 01, 2024 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options, Warrants and Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common shares excluded from the computation of diluted net loss per share on effect of anti-dilutive | 11,841,000 | 11,249,000 |
Research and Development Agre_3
Research and Development Agreements - Schedule of Research and Development Revenues Disaggregated by Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition [Line Items] | |||
Total research and development revenue | $ 2,600 | $ 19,754 | $ 38,697 |
JAPAN | |||
Revenue Recognition [Line Items] | |||
Total research and development revenue | 2,586 | 13,136 | |
UNITED STATES | |||
Revenue Recognition [Line Items] | |||
Total research and development revenue | $ 17,168 | $ 25,561 |
Research and Development Agre_4
Research and Development Agreements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2021 | Feb. 28, 2021 | Sep. 30, 2018 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research And Development Collaboration Agreements [Line Items] | |||||||
Research and development revenue recognized | $ 2,600,000 | $ 19,754,000 | $ 38,697,000 | ||||
Revenue from grant | 19,754,000 | 38,697,000 | |||||
Grant | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Revenue from grant | 0 | 0 | |||||
CPRIT Agreement | Cancer Prevention and Research Institute of Texas | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Product development grant awarded | $ 15,200,000 | ||||||
Grant Agreements | Grants Revenue Receivable | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Reimbursement amounts submitted in excess of amounts received are recorded as receivables | $ 0 | 0 | 0 | ||||
Bristol Myers Squibb Collaboration Agreement | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Upfront payment | $ 70,000,000 | ||||||
Milestone payments receivable if option is exercised | 874,500,000 | ||||||
Transaction price allocated to performance obligations | 70,000,000 | ||||||
Deferred revenue, current | 32,800,000 | 45,300,000 | 32,800,000 | ||||
Deferred revenue, non-current | 30,700,000 | 5,900,000 | 30,700,000 | ||||
Bristol Myers Squibb Collaboration Agreement | Sales Milestone | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Milestone payments receivable if option is exercised | $ 450,000,000 | ||||||
Vertex Collaboration Agreement | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Research and development revenue recognized | 14,600,000 | ||||||
Deferred revenue | 0 | 0 | 0 | ||||
Takeda Development Agreement | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Deferred revenue | 0 | 0 | 0 | ||||
Takeda Development Agreement | Maximum | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Clinical and regulatory milestone payments | $ 22,250,000 | ||||||
Takeda Multi Target Agreement | Takeda Pharmaceuticals Inc | |||||||
Research And Development Collaboration Agreements [Line Items] | |||||||
Deferred revenue | $ 2,600,000 | $ 0 | $ 2,600,000 |
Research and Development Agre_5
Research and Development Agreements - Schedule of Research and Development Revenue from Related Party Relates to Revenue from Research and Development Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition [Line Items] | |||
Research and development revenue recognized | $ 2,600 | $ 19,754 | $ 38,697 |
Millennium Pharmaceuticals, Inc. | |||
Revenue Recognition [Line Items] | |||
Research and development revenue recognized | 2,586 | 13,136 | |
Millennium Pharmaceuticals, Inc. | Takeda Development Agreement | |||
Revenue Recognition [Line Items] | |||
Research and development revenue recognized | 0 | 13,114 | |
Millennium Pharmaceuticals, Inc. | Takeda Multi Target Agreement | |||
Revenue Recognition [Line Items] | |||
Research and development revenue recognized | $ 2,586 | $ 22 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Financial Assets at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | $ 58,882 | $ 152,105 |
Cash and cash equivalents | 32,190 | 24,983 |
Marketable securities, current | 28,859 | 118,061 |
Marketable securities, non-current | 8,986 | |
Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 30,023 | 25,058 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 24,546 | 24,058 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 21,134 | 103,113 |
United States Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 10,702 | 14,023 |
Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,500 | |
Government-Related Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 5,185 | |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 5,726 | |
Basis of Fair Value Measurements, Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 27,046 | 24,058 |
Basis of Fair Value Measurements, Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 24,546 | 24,058 |
Basis of Fair Value Measurements, Level 1 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 1 | United States Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 1 | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 2,500 | |
Basis of Fair Value Measurements, Level 1 | Government-Related Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Basis of Fair Value Measurements, Level 1 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Basis of Fair Value Measurements, Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 31,836 | 128,047 |
Basis of Fair Value Measurements, Level 2 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 21,134 | 103,113 |
Basis of Fair Value Measurements, Level 2 | United States Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 10,702 | 14,023 |
Basis of Fair Value Measurements, Level 2 | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Basis of Fair Value Measurements, Level 2 | Government-Related Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 5,185 | |
Basis of Fair Value Measurements, Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 5,726 | |
Basis of Fair Value Measurements, Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 3 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 3 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 3 | United States Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | 0 |
Basis of Fair Value Measurements, Level 3 | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | $ 0 | |
Basis of Fair Value Measurements, Level 3 | Government-Related Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 0 | |
Basis of Fair Value Measurements, Level 3 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | $ 0 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Summary of Company's Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | $ 58,948 | $ 152,153 |
Fair Value | 28,859 | 118,061 |
Fair Value | 0 | 8,986 |
Money Market Funds And Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | 30,022 | |
Unrealized Gain | 1 | |
Unrealized Loss | 0 | |
Fair Value | 30,023 | |
Commercial Paper And Treasury Bills | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | 28,926 | |
Unrealized Gain | 0 | |
Unrealized Loss | (67) | |
Fair Value | $ 28,859 | |
Money Market Funds Commercial Paper And Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | 25,058 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Fair Value | 25,058 | |
Commercial Paper Treasury Bills And Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | 118,084 | |
Unrealized Gain | 6 | |
Unrealized Loss | (29) | |
Fair Value | 118,061 | |
Marketable Securities, Non-current - Treasury Bills | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gain | 0 | |
Unrealized Loss | (25) | |
Cost Basis | 9,011 | |
Fair Value | $ 8,986 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Summary of Contractual Maturities of Available-for-Sale-Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Cost Basis, Due in one year or less | $ 58,948 | $ 143,142 |
Cost Basis, Due after one year through five years | 0 | 9,011 |
Cost Basis | 58,948 | 152,153 |
Fair Value, Due in one year or less | 58,882 | 143,119 |
Fair Value, Due after one year through five years | 0 | 8,986 |
Fair Value, Total | $ 58,882 | $ 152,105 |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | ||
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 |
Available-for-sale securities, realized gain | $ 0 | $ 0 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | $ 35,978 | $ 33,162 |
Less: Accumulated depreciation | (21,346) | (13,853) |
Total property and equipment, net | 14,632 | 19,309 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | 21,831 | 19,211 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | 12,971 | 12,822 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | 518 | 471 |
Computer and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Gross | $ 658 | $ 658 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Depreciation expense | $ 7.7 | $ 6.6 |
Non cash adjustments related to asset retirement obligation | 0.2 | 0 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Asset retirement obligation, asset | $ 0.3 | $ 0.6 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued liabilities: | ||
General and administrative | $ 855 | $ 794 |
Clinical trial related costs | 1,327 | 1,134 |
Non-clinical research and manufacturing operations | 1,779 | 2,153 |
Payroll related | 4,828 | 5,388 |
Other accrued expenses | 34 | 46 |
Total Accrued liabilities | $ 8,823 | $ 9,515 |
Borrowing Arrangements - Additi
Borrowing Arrangements - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 04, 2022 | May 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Long-term debt, carrying value | $ 36,200 | $ 35,500 | ||
K2 Loan and Security Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity under loan | $ 45,000 | |||
Loan and security agreement | $ 35,000 | |||
Loan and security agreement, lapsed amount | 10,000 | |||
Interest rate | 8.45% | |||
Debt net | $ 2,800 | |||
Debt instrument, covenant compliance | The Company was in compliance with the debt covenants at December 31, 2022. | |||
Amendment fee | $ 300 | |||
Total debt | $ 35,000 | $ 35,000 | ||
Long-term debt, carrying value | $ 36,168 | |||
K2 Loan and Security Agreement | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.20% | |||
K2 Loan and Security Agreement | Tranche Two | ||||
Debt Instrument [Line Items] | ||||
Additionally incurred prepaid facilities fee | $ 200 |
Borrowing Arrangements - Schedu
Borrowing Arrangements - Schedule of Required Future Principal Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total Long-Term Debt, net | $ 36,200 | $ 35,500 |
K2 Loan and Security Agreement | ||
Debt Instrument [Line Items] | ||
2023 | 0 | |
2024 | 35,000 | |
Total Principal Amounts | 35,000 | $ 35,000 |
Final Fee Due at Maturity | 2,357 | |
Unamortized discount, deferred costs and final fee | (1,189) | |
Total Long-Term Debt, net | $ 36,168 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Oct. 18, 2022 USD ($) | Jul. 31, 2022 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 ft² | |
Lessee Lease Description [Line Items] | |||||
Lessee, operating leases renewal lease term | 7 years | ||||
Decrease in estimated cash flow related ARO | $ 454 | $ 0 | |||
Operating Lease, Impairment Loss | 600 | ||||
Leasehold Improvements | |||||
Lessee Lease Description [Line Items] | |||||
Decrease in estimated cash flow related ARO | 200 | ||||
ROU Assets | |||||
Lessee Lease Description [Line Items] | |||||
Decrease in estimated cash flow related ARO | $ 300 | ||||
Lease Amendment | |||||
Lessee Lease Description [Line Items] | |||||
Additional extended lease term | 6 years | ||||
Additional extended lease term beginning date | Aug. 31, 2023 | ||||
Additional extended lease term end date | Aug. 31, 2029 | ||||
Committed lease amount payment period | 6 years | ||||
Option to extend lease term | 7 years | ||||
Aggregated lease commitments | $ 6,700 | ||||
Amount abated in installments from the monthly lease commitments | $ 200 | ||||
New Jersey | |||||
Lessee Lease Description [Line Items] | |||||
Area of Land | ft² | 10,000 | ||||
Texas | |||||
Lessee Lease Description [Line Items] | |||||
Additional extended lease term | 5 years | ||||
Additional extended lease term beginning date | Aug. 31, 2023 | ||||
Additional extended lease term end date | Aug. 31, 2028 | ||||
Minimum | |||||
Lessee Lease Description [Line Items] | |||||
Lessee, operating leases remaining lease term. | 4 years | ||||
Maximum | |||||
Lessee Lease Description [Line Items] | |||||
Lessee, operating leases remaining lease term. | 7 years |
Leases - Changes in Carrying Am
Leases - Changes in Carrying Amount of AROs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 1,625 | $ 1,490 |
Revisions in estimated cash flows | (454) | 0 |
Accretion of asset retirement obligations | 124 | 135 |
Balance at end of year | $ 1,295 | $ 1,625 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 2,611 | $ 2,778 |
Variable lease expense | 524 | 476 |
Total operating lease expense | $ 3,135 | $ 3,254 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheets Classification of Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases | ||
Operating lease right-of-use assets | $ 11,132 | $ 8,608 |
Operating lease liabilities, current | $ 2,182 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | |
Operating lease liabilities, non-current | $ 12,231 | $ 9,564 |
Total operating lease liabilities | $ 14,413 |
Leases - Schedule of Leases Inf
Leases - Schedule of Leases Information (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating leases | 5 years 6 months 14 days | 5 years 7 months 24 days |
Weighted average discount rate, operating leases | 8.21% | 7.02% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Lease payments | |
2023 | $ 3,255 |
2024 | 3,369 |
2025 | 3,299 |
2026 | 2,564 |
Thereafter | 5,509 |
Total lease payments | 17,996 |
Less: Imputed interest | (3,583) |
Total lease liabilities | $ 14,413 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows operating leases | $ 3,252 | $ 3,204 |
Financing cash flows finance leases | $ 0 | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Other Commitments [Line Items] | |
Upfront fees unamortized balance included in prepaid asset | $ 0.5 |
Contractual obligation | 46.7 |
Minimum | |
Other Commitments [Line Items] | |
Estimated purchase obligation | 4.9 |
Maximum | |
Other Commitments [Line Items] | |
Estimated purchase obligation | $ 5.5 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 07, 2020 | Nov. 25, 2019 | Sep. 25, 2018 | Feb. 28, 2018 | Aug. 01, 2017 | Jun. 23, 2017 | Feb. 28, 2021 | Jul. 31, 2020 | Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Warrant Or Right [Line Items] | |||||||||||
Warrants to purchase shares of common stock | 0 | 0 | |||||||||
Net proceeds from common stock | $ 0 | $ 71,145 | |||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||
Sale of securities | $ 300,000 | ||||||||||
Series A Convertible Preferred Stock | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of shares sold | 250 | ||||||||||
Shares issued, price per share | $ 8 | ||||||||||
Preferred stock, conversion basis | Each share of Series A Preferred Stock is convertible to 1,000 shares of Common Stock, provided that the holder of Series A Preferred Stock will be prohibited from converting the Series A Preferred Stock into shares of common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 9.99% of the total number of shares of the Company’s common stock then issued and outstanding. | ||||||||||
Number of preferred stock converted into common stock | 1,000 | ||||||||||
Minimum holding percentage of common stock issued and outstanding upon conversion | 9.99% | ||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||
Preferred Stock , voting rights description | The Series A Preferred Stock has no voting rights, except as required by law and except that the consent of the Series A Preferred Stockholders will be required to amend the terms of the Series A Preferred Stock. | ||||||||||
Preferred stock beneficial conversion feature intrinsic value | $ 700 | ||||||||||
Common Stock | Term Loan Facility | Perceptive Credit Facility | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Warrant exercisable period | 7 years | ||||||||||
Common stock exercise price | $ 9.58 | ||||||||||
Valuation of equity classified warrants recorded in additional paid-n capital | $ 1,500 | ||||||||||
Expected dividend rate | 0% | ||||||||||
Expected volatility | 105% | ||||||||||
Risk free interest rate | 2.80% | ||||||||||
Expected term | 7 years | ||||||||||
Number of shares to be issued upon exercise of warrant | 190,000 | ||||||||||
Wedbush Agreement | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Valuation of equity classified warrants recorded in additional paid-n capital | $ 400 | ||||||||||
Expected dividend rate | 0% | ||||||||||
Expected volatility | 108% | ||||||||||
Risk free interest rate | 2.30% | ||||||||||
Expected term | 7 years | ||||||||||
Takeda Pharmaceuticals Inc | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Aggregate purchase price | $ 20,000 | ||||||||||
Each unit of shares transaction of common stock | 2,922,993 | ||||||||||
Purchase price per share | $ 6.8423 | ||||||||||
Vertex Pharmaceuticals Inc | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Aggregate purchase price | $ 15,000 | ||||||||||
Each unit of shares transaction of common stock | 1,666,666 | ||||||||||
Purchase price per share | $ 9 | ||||||||||
Private Placement | Common Stock | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Valuation of equity classified warrants recorded in additional paid-n capital | $ 16,300 | ||||||||||
Expected dividend rate | 0% | ||||||||||
Expected volatility | 147% | ||||||||||
Risk free interest rate | 2.07% | ||||||||||
Expected term | 7 years | ||||||||||
Private Placement | Longitude Venture Partners III, L.P. | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of aggregate units sold | 5,793,063 | ||||||||||
Aggregate purchase price | $ 40,000 | ||||||||||
Each unit of shares transaction of common stock | 1 | ||||||||||
Warrants to purchase shares of common stock | 0.5 | ||||||||||
Sale of units, description and its composition | the Company sold an aggregate of 5,793,063 units (the “Units”) having an aggregate purchase price of $40.0 million (“PIPE Financing”), each such Unit consisting of (i) one (1) share (the “Shares”) of our common stock and (ii) a warrant (the “Private Placement Warrants”) to purchase 0.5 shares of our common stock (the “Private Placement”). | ||||||||||
Purchase price per unit | $ 6.9048 | ||||||||||
Warrant exercisable period | 7 years | ||||||||||
Common stock exercise price | $ 6.8423 | ||||||||||
Private Placement | Longitude Venture Partners III, L.P. | Common Stock | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Warrants to purchase shares of common stock | 2,896,528 | ||||||||||
Private Placement | Wedbush Agreement | Common Stock | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Warrants to purchase shares of common stock | 57,930 | 57,930 | |||||||||
Warrant exercisable period | 7 years | ||||||||||
Common stock exercise price | $ 6.8423 | ||||||||||
Underwritten Public Offering | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of shares sold | 9,430,000 | ||||||||||
Shares issued, price per share | $ 5.50 | ||||||||||
Net proceeds from common stock | $ 48,100 | ||||||||||
Over Allotment Option | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of shares sold | 900,000 | 1,230,000 | |||||||||
2019 Underwritten Public Offering | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of shares sold | 6,900,000 | ||||||||||
Shares issued, price per share | $ 8 | ||||||||||
Net proceeds from common stock | $ 53,400 | ||||||||||
At-the-market Offering | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Net proceeds from common stock | $ 100,000 | $ 48,500 | |||||||||
Gross proceeds from common stock | $ 50,000 | ||||||||||
Sale of securities | $ 71,145 | ||||||||||
At-the-market Offering | Common Stock | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of shares sold | 6,000,000 | ||||||||||
Sale of securities | $ 6 | ||||||||||
At-the-market Offering | Common Stock at Purchase Price of $12.00 Per Share | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Purchase price per share | $ 12 | ||||||||||
Number of shares sold | 3,600,000 | ||||||||||
At-the-market Offering | Common Stock at Purchase Price of $12.70 Per Share | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Purchase price per share | $ 12.70 | ||||||||||
Number of shares sold | 500,000 | ||||||||||
Public Offering | |||||||||||
Class Of Warrant Or Right [Line Items] | |||||||||||
Number of shares sold | 6,000,000 | ||||||||||
Shares issued, price per share | $ 12.65 | ||||||||||
Net proceeds from common stock | $ 71,100 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 01, 2017 | May 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total intrinsic value of stock options exercised | $ 0 | $ 1,200,000 | |||
Proceeds from stock option exercises | 33,000 | 1,620,000 | |||
Tax benefit realized upon exercise of option | 0 | $ 0 | |||
Unrecognized compensation cost related to unvested stock-based awards granted to employees under the equity incentive plans | $ 17,000,000 | ||||
Unrecognized compensation cost related to unvested stock-based awards granted to employees under the equity incentive plans, period for recognition | 2 years 2 months 26 days | ||||
2018 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Exercise price as a percentage of fair market value of common stock | 100% | ||||
Terms of stock options granted | 10 years | ||||
Terms of stock options vested | 4 years | ||||
Options to purchase shares of common stock available for future grants | 2,814,408 | ||||
Options reserved for issuance transferred to 2018 Equity Incentive Plan | 2,000,000 | ||||
Common stock additional shares may be added to plan in connection in forfeiture or expiration of awards outstanding | 2,885,121 | ||||
2018 Equity incentive plan annual evergreen provision to increase available for issuance description | Additionally, the number of shares of common stock that may be issued under the 2018 Plan shall increase on each January 1, beginning with January 1, 2019, and continuing through and including January 1, 2028 by an amount equal to the lesser of (i) 4% of the number of outstanding shares of common stock on that date and (ii) an amount determined by the Company’s board of directors or compensation committee; provided, however, that in no event will the number of shares available for issuance under the 2018 Plan be increased to the extent such increase, in addition to any other increases proposed by the board of directors in the number of shares available for issuance under all other employee or director stock plan would result in the total number of shares then available for issuance under all employee and director stock plans exceeding 20% of the outstanding shares of the Company’s common stock on the first day of the applicable fiscal year. | ||||
Annual evergreen provision to increase available for issuance not to exceed percentage of common stock shares outstanding on date of increase | 4% | ||||
2018 Equity Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Available for issuance for all plans not to exceed percentage of common stock outstanding on first day of fiscal year | 20% | ||||
2009 Stock Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options reserved for issuance transferred to 2018 Equity Incentive Plan | 104,184 | ||||
2014 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options reserved for issuance transferred to 2018 Equity Incentive Plan | 335,040 | ||||
2004 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options to purchase shares of common stock available for future grants | 8,636 | 8,636 | |||
Additional shares authorized for issuance | 9,091 | ||||
Offering period | 24 months | ||||
Purchase period | 6 months | ||||
Discount available to eligible employees related to employee stock purchase plan | 85% | ||||
Shares purchased by employees under purchase plan | 0 | 0 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock Based Compensation - Summary of Stock Option Activity Under Equity Incentive Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Outstanding Options Number of Shares, Beginning Balance | 7,854,473 | 6,697,927 | |
Number of Shares, Options granted | 2,920,189 | 2,683,818 | |
Number of Shares, Options exercised | (46,598) | (320,716) | |
Number of shares, Options cancelled | (2,281,601) | (1,206,556) | |
Outstanding Options Number of Shares, Ending Balance | 8,446,463 | 7,854,473 | 6,697,927 |
Outstanding Options Number of Shares, Vested and expected to vest, December 31, 2022 | 8,446,463 | ||
Outstanding Options Number of Shares, Exercisable at December 31, 2022 | 4,852,746 | ||
Weighted Average Exercise Price, Beginning Balance | $ 10.21 | $ 9.13 | |
Weighted Average Exercise Price, Options granted | 2.21 | 12.84 | |
Weighted Average Exercise Price, Options exercised | 0.71 | 5.05 | |
Weighted Average Exercise Price, Options cancelled | 9.44 | 11.46 | |
Weighted Average Exercise Price, Ending Balance | 7.70 | $ 10.21 | $ 9.13 |
Weighted Average Exercise Price, Vested and expected to vest, December 31, 2022 | 7.70 | ||
Weighted Average Exercise Price, Exercisable at December 31, 2022 | $ 8.91 | ||
Weighted-Average Remaining Contractual Term, Outstanding | 7 years 1 month 2 days | 6 years 8 months 19 days | 7 years 9 months 3 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest, December 31, 2022 | 7 years 1 month 2 days | ||
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2022 | 6 years 25 days | ||
Aggregate Intrinsic Value, Outstanding | $ 0 | $ 950 | $ 13,790 |
Aggregate Intrinsic Value, Vested and expected to vest, December 31, 2022 | 0 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2022 | $ 0 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock Based Compensation - Stock Options Outstanding and Exercisable by Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
$0.33-1.27 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | $ 0.33 |
Range of Exercise Prices | $ 1.27 |
Number Outstanding | shares | 1,058,749 |
Weighted Average Remaining Contractual Life (Years) | 7 years 5 months 4 days |
Weighted Average Exercise Price | $ 0.92 |
Number Exercisable | shares | 298,909 |
Weighted Average Exercise Price | $ 1.27 |
1.70-2.35 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 1.70 |
Range of Exercise Prices | $ 2.35 |
Number Outstanding | shares | 87,053 |
Weighted Average Remaining Contractual Life (Years) | 8 years 11 months 19 days |
Weighted Average Exercise Price | $ 2.30 |
Number Exercisable | shares | 3,453 |
Weighted Average Exercise Price | $ 1.85 |
2.77-2.77 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 2.77 |
Range of Exercise Prices | $ 2.77 |
Number Outstanding | shares | 1,643,051 |
Weighted Average Remaining Contractual Life (Years) | 8 years 7 months 17 days |
Weighted Average Exercise Price | $ 2.77 |
Number Exercisable | shares | 232,303 |
Weighted Average Exercise Price | $ 2.77 |
3.08-5.81 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 3.08 |
Range of Exercise Prices | $ 5.81 |
Number Outstanding | shares | 815,521 |
Weighted Average Remaining Contractual Life (Years) | 6 years 3 months 14 days |
Weighted Average Exercise Price | $ 4.71 |
Number Exercisable | shares | 733,059 |
Weighted Average Exercise Price | $ 4.75 |
6.31-6.31 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 6.31 |
Range of Exercise Prices | $ 6.31 |
Number Outstanding | shares | 913,037 |
Weighted Average Remaining Contractual Life (Years) | 5 years 4 months 28 days |
Weighted Average Exercise Price | $ 6.31 |
Number Exercisable | shares | 913,037 |
Weighted Average Exercise Price | $ 6.31 |
6.52-9.40 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 6.52 |
Range of Exercise Prices | $ 9.40 |
Number Outstanding | shares | 1,082,012 |
Weighted Average Remaining Contractual Life (Years) | 6 years 29 days |
Weighted Average Exercise Price | $ 8.80 |
Number Exercisable | shares | 945,395 |
Weighted Average Exercise Price | $ 8.95 |
10.78-13.99 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 10.78 |
Range of Exercise Prices | $ 13.99 |
Number Outstanding | shares | 454,814 |
Weighted Average Remaining Contractual Life (Years) | 6 years 14 days |
Weighted Average Exercise Price | $ 12.35 |
Number Exercisable | shares | 310,753 |
Weighted Average Exercise Price | $ 12.39 |
14.05-14.05 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 14.05 |
Range of Exercise Prices | $ 14.05 |
Number Outstanding | shares | 1,259,793 |
Weighted Average Remaining Contractual Life (Years) | 7 years 7 months 17 days |
Weighted Average Exercise Price | $ 14.05 |
Number Exercisable | shares | 584,120 |
Weighted Average Exercise Price | $ 14.05 |
14.50-14.94 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 14.50 |
Range of Exercise Prices | $ 14.94 |
Number Outstanding | shares | 961,442 |
Weighted Average Remaining Contractual Life (Years) | 7 years 29 days |
Weighted Average Exercise Price | $ 14.57 |
Number Exercisable | shares | 685,157 |
Weighted Average Exercise Price | $ 14.57 |
15.43-61.27 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 15.43 |
Range of Exercise Prices | $ 61.27 |
Number Outstanding | shares | 170,991 |
Weighted Average Remaining Contractual Life (Years) | 7 years 1 month 13 days |
Weighted Average Exercise Price | $ 16.79 |
Number Exercisable | shares | 146,560 |
Weighted Average Exercise Price | $ 16.89 |
0.33-61.27 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices | 0.33 |
Range of Exercise Prices | $ 61.27 |
Number Outstanding | shares | 8,446,463 |
Weighted Average Remaining Contractual Life (Years) | 7 years 1 month 2 days |
Weighted Average Exercise Price | $ 7.70 |
Number Exercisable | shares | 4,852,746 |
Weighted Average Exercise Price | $ 8.91 |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 11,909 | $ 16,631 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 6,096 | 8,839 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 5,813 | $ 7,792 |
Equity Incentive Plans and St_7
Equity Incentive Plans and Stock Based Compensation - Weighted-Average Fair Value Valuation Assumptions (Detail) - Employee Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.35% | 0.93% |
Expected term (in years) | 6 years 29 days | 6 years 29 days |
Dividend yield | 0% | 0% |
Volatility | 88.59% | 113.25% |
Weighted-average fair value of stock options granted | $ 1.65 | $ 10.81 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes Disclosure [Line Items] | ||
Income tax provision | $ 53,000 | $ 0 |
Increase in valuation allowance | 30,600,000 | |
Unrecognized benefits | 0 | 0 |
Accrued interest or penalties | 0 | $ 0 |
State | ||
Income Taxes Disclosure [Line Items] | ||
Research and development credits | $ 2,900,000 | |
Year research and development credits begin to expire | 2033 | |
State | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryforwards | $ 13,000,000 | |
Federal | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryforwards | 506,700,000 | |
Operating loss carryforward subject to expire | 286,700,000 | |
Operating loss carryforwards not subject to expire | 220,000,000 | |
Net operating loss carryforwards anticipated | 253,200,000 | |
Research and development credits | $ 22,400,000 | |
Year research and development credits begin to expire | 2022 | |
Research and development credits anticipated | $ 9,500,000 | |
Federal | Minimum | ||
Income Taxes Disclosure [Line Items] | ||
Year net operating loss carryforwards begin to expire | 2025 | |
Federal | Maximum | ||
Income Taxes Disclosure [Line Items] | ||
Year net operating loss carryforwards begin to expire | 2037 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes at Statutory Federal Income Tax Rate to Net Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal taxes (benefit) at statutory rate | $ (19,459) | $ (17,431) |
State federal income tax benefit | (8,653) | (3,834) |
Permanent differences | 3 | 15 |
Stock compensation | 1,964 | 1,666 |
Research and development credits | (2,494) | (2,840) |
Change in valuation allowance due to operations | 30,619 | 24,219 |
Change in state rate and carryovers | (1,927) | (1,795) |
Total | $ 53 | $ 0 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net operating loss carryforward | $ 53,957 | $ 63,372 |
Interest | 0 | 603 |
Research and development credits | 15,235 | 12,422 |
Deferred stock compensation | 8,086 | 5,916 |
Deferred revenue | 16,127 | 699 |
Lease liability | 4,516 | 3,095 |
Accrued expenses and other | 1,846 | 1,636 |
Capitalized Research & Experimental Expenditures | 19,764 | 0 |
Total deferred tax assets | 119,531 | 87,743 |
Total deferred tax liabilities | ||
Depreciable and amortizable assets | (1,329) | (1,459) |
Right-of-use asset | (3,488) | (2,189) |
Total deferred tax liabilities | (4,817) | (3,648) |
Less: Valuation allowance | (114,714) | (84,095) |
Net deferred tax assets | $ 0 | $ 0 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Molecular Templates 401(k) Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer discretionary contribution amount | $ 0.7 | $ 0.8 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | Mar. 29, 2023 USD ($) Employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Subsequent Event [Line Items] | |||
Deferred revenue, current | $ 45,573 | $ 32,937 | |
Collaboration Agreements | |||
Subsequent Event [Line Items] | |||
Deferred revenue, current | $ 25,800 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Current number of full-time employees | Employee | 222 | ||
Number of employees eliminated, percentage | 50% | ||
Severance costs | $ 400 |