Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Neoleukin Therapeutics, Inc. | |
Trading Symbol | NLTX | |
Entity Central Index Key | 0001404644 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Common Stock, par value $0.000001 | |
Entity Incorporation, State or Country Code | DE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 41,894,382 | |
Entity File Number | 001-36327 | |
Entity Tax Identification Number | 98-0542593 | |
Entity Address, Address Line One | 360-1616 Eastlake Avenue East | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98102 | |
City Area Code | (206) | |
Local Phone Number | 732-2133 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed consolidated balance
Condensed consolidated balance sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 201,150 | $ 143,093 |
Other current assets | 5,439 | 503 |
Total current assets | 206,589 | 143,596 |
Property and equipment, net | 3,303 | 2,060 |
Operating lease right-of-use assets | 10,398 | 770 |
Intangible asset, net | 403 | 567 |
Other non-current assets | 997 | 30 |
Total assets | 221,690 | 147,023 |
Current liabilities | ||
Accounts payable and accrued liabilities | 9,522 | 4,125 |
Operating lease liabilities | 321 | 556 |
Finance lease liabilities | 49 | 62 |
Total current liabilities | 9,892 | 4,743 |
Non-current operating lease liabilities | 11,350 | 447 |
Non-current finance lease liabilities | 108 | 146 |
Total liabilities | 21,350 | 5,336 |
Stockholders’ equity | ||
Common stock - $0.000001 par value - authorized, 100,000,000 as of September 30, 2020 and December 31, 2019; issued and outstanding, 41,876,590 as of September 30, 2020 and 37,996,849 as of December 31, 2019. | ||
Preferred stock - $0.000001 par value - authorized, 5,000,000 as of September 30, 2020 and December 31, 2019; nil issued and outstanding as of September 30, 2020 and December 31, 2019. | ||
Additional paid-in capital | 520,506 | 441,216 |
Accumulated deficit | (320,166) | (299,529) |
Total stockholders’ equity | 200,340 | 141,687 |
Total liabilities and stockholders’ equity | $ 221,690 | $ 147,023 |
Condensed Consolidated balanc_2
Condensed Consolidated balance sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 41,876,590 | 37,996,849 |
Common stock, shares outstanding | 41,876,590 | 37,996,849 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed consolidated statemen
Condensed consolidated statements of operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating loss | ||||
Research and development | $ 6,216 | $ 1,420 | $ 16,557 | $ (471) |
Acquired in-process research and development | 47,716 | 47,716 | ||
General and administrative | 3,860 | 10,380 | 12,359 | 15,358 |
Gain on sale of Aquinox Canada | (7,826) | (7,826) | ||
Total operating loss | 2,250 | 59,516 | 21,090 | 62,603 |
Other income, net | 1 | 384 | 453 | 1,262 |
Net loss | $ (2,249) | $ (59,132) | $ (20,637) | $ (61,341) |
Net loss per common stock – basic and diluted | $ (0.04) | $ (2.26) | $ (0.41) | $ (2.51) |
Basic and diluted weighted average common shares outstanding | 54,121,676 | 26,185,839 | 50,896,014 | 24,429,893 |
Condensed consolidated statem_2
Condensed consolidated statements of cash flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net loss | $ (20,637) | $ (61,341) |
Adjustments to reconcile net cash used in operating activities: | ||
Stock-based compensation | 3,393 | 7,017 |
Acquired in-process research and development | 47,716 | |
Depreciation and amortization | 578 | 180 |
Loss on disposal of property and equipment | 180 | |
Amortization of operating lease right-of-use assets | 784 | 76 |
Write-off of right-of-use asset upon lease termination | 113 | |
Unrealized foreign exchange loss | 20 | |
Changes in operating assets and liabilities: | ||
Other current assets and other non-current assets | (5,026) | (453) |
Accounts payable and accrued liabilities | 5,125 | (3,828) |
Operating lease right-of-use assets | (169) | |
Operating lease liabilities | 313 | (145) |
Net cash used in operating activities | (15,346) | (10,758) |
Investing activities | ||
Acquisition of Former Neoleukin, net of cash acquired | 191 | |
Purchase of property and equipment | (1,566) | (97) |
Net cash provided by (used in) investing activities | (1,566) | 94 |
Financing activities | ||
Proceeds from issuance of common stock and pre-funded warrants, net of commissions of $4.6 million | 71,675 | |
Payment of offering costs | (355) | |
Proceeds from exercise of stock options | 4,576 | 40 |
Payment on finance lease obligations | (49) | (7) |
Net cash provided by financing activities | 75,847 | 33 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 9 | |
Net change in cash, cash equivalents and restricted cash during the period | 58,935 | (10,622) |
Cash, cash equivalents and restricted cash, beginning of period | 143,093 | 76,928 |
Cash, cash equivalents and restricted cash, end of period | 202,028 | 66,306 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Purchases of property and equipment unpaid at period-end | 271 | |
Operating lease liabilities arising from obtaining ROU asset | $ 10,618 | $ 515 |
Condensed consolidated statem_3
Condensed consolidated statements of cash flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Statement Of Cash Flows [Abstract] | |
Commission fee on public offering | $ 4.6 |
Condensed consolidated statem_4
Condensed consolidated statements of stockholders' equity - USD ($) $ in Thousands | Total | Underwritten Public Offering [Member] | Non-voting convertible preferred stock [Member] | Common Stock [Member] | Common Stock [Member]Underwritten Public Offering [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Underwritten Public Offering [Member] | Accumulated Deficit [Member] |
Balances at Dec. 31, 2018 | $ 72,672 | $ 302,759 | $ (230,087) | |||||
Balances, shares at Dec. 31, 2018 | 23,537,368 | |||||||
Stock-based compensation | 1,078 | 1,078 | ||||||
Net loss | (2,208) | (2,208) | ||||||
Balances at Mar. 31, 2019 | 71,542 | 303,837 | (232,295) | |||||
Balances, shares at Mar. 31, 2019 | 23,537,368 | |||||||
Balances at Dec. 31, 2018 | 72,672 | 302,759 | (230,087) | |||||
Balances, shares at Dec. 31, 2018 | 23,537,368 | |||||||
Net loss | (61,341) | |||||||
Balances at Sep. 30, 2019 | 66,875 | 358,303 | (291,428) | |||||
Balances, shares at Sep. 30, 2019 | 101,927 | 28,140,243 | ||||||
Balances at Mar. 31, 2019 | 71,542 | 303,837 | (232,295) | |||||
Balances, shares at Mar. 31, 2019 | 23,537,368 | |||||||
Stock-based compensation | 788 | 788 | ||||||
Net loss | (1) | (1) | ||||||
Balances at Jun. 30, 2019 | 72,329 | 304,625 | (232,296) | |||||
Balances, shares at Jun. 30, 2019 | 23,537,368 | |||||||
Options exercised | 40 | 40 | ||||||
Options exercised, shares | 13,104 | |||||||
Stock-based compensation | 5,151 | 5,151 | ||||||
Net loss | (59,132) | (59,132) | ||||||
Balances at Sep. 30, 2019 | 66,875 | 358,303 | (291,428) | |||||
Balances, shares at Sep. 30, 2019 | 101,927 | 28,140,243 | ||||||
Issuance of common stock for Former Neoleukin common stock | 15,055 | 15,055 | ||||||
Issuance of common stock for Former Neoleukin common stock, shares | 4,589,771 | |||||||
Issuance of convertible preferred stock for Former Neoleukin common stock | 33,432 | 33,432 | ||||||
Issuance of convertible preferred stock for Former Neoleukin common stock, shares | 101,927 | |||||||
Issuance of convertible preferred stock for Former Neoleukin common stock, shares | 101,927 | |||||||
Balances at Dec. 31, 2019 | 141,687 | 441,216 | (299,529) | |||||
Balances, shares at Dec. 31, 2019 | 37,996,849 | |||||||
Options exercised | 3,392 | 3,392 | ||||||
Options exercised, shares | 376,311 | |||||||
Restricted stock units vested, shares | 13,000 | |||||||
Stock-based compensation | 683 | 683 | ||||||
Net loss | (8,642) | (8,642) | ||||||
Balances at Mar. 31, 2020 | 137,120 | 445,291 | (308,171) | |||||
Balances, shares at Mar. 31, 2020 | 38,386,160 | |||||||
Balances at Dec. 31, 2019 | $ 141,687 | 441,216 | (299,529) | |||||
Balances, shares at Dec. 31, 2019 | 37,996,849 | |||||||
Options exercised, shares | 581,270 | |||||||
Net loss | $ (20,637) | |||||||
Balances at Sep. 30, 2020 | 200,340 | 520,506 | (320,166) | |||||
Balances, shares at Sep. 30, 2020 | 41,876,590 | |||||||
Balances at Mar. 31, 2020 | 137,120 | 445,291 | (308,171) | |||||
Balances, shares at Mar. 31, 2020 | 38,386,160 | |||||||
Options exercised | 303 | 303 | ||||||
Options exercised, shares | 98,882 | |||||||
Restricted stock units vested, shares | 1,500 | |||||||
Stock-based compensation | 1,022 | 1,022 | ||||||
Net loss | (9,746) | (9,746) | ||||||
Balances at Jun. 30, 2020 | 128,699 | 446,616 | (317,917) | |||||
Balances, shares at Jun. 30, 2020 | 38,486,542 | |||||||
Issuance of common stock and pre-fundedwarrants, net of commissions andoffering expenses | $ 71,320 | $ 71,320 | ||||||
Issuance of common stock and pre-funded warrants, net of commisions and offering expenses, shares | 3,262,471 | |||||||
Options exercised | 882 | 882 | ||||||
Options exercised, shares | 106,077 | |||||||
Restricted stock units vested, shares | 21,500 | |||||||
Stock-based compensation | 1,688 | 1,688 | ||||||
Net loss | (2,249) | (2,249) | ||||||
Balances at Sep. 30, 2020 | $ 200,340 | $ 520,506 | $ (320,166) | |||||
Balances, shares at Sep. 30, 2020 | 41,876,590 |
Nature of operations
Nature of operations | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of operations | 1. Nature of operations Neoleukin Therapeutics, Inc. (“Neoleukin” or “the Company”) is a biopharmaceutical company creating next generation immunotherapies for cancer, inflammation and autoimmunity using de novo protein design technology. Neoleukin uses sophisticated computational methods to design proteins that demonstrate specific pharmaceutical properties that provide potentially superior therapeutic benefit over native proteins. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of presentation The accompanying unaudited condensed consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 12, 2020. In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments (including reclassifications and normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2020, and results of operations and cash flows for all periods presented. The interim results presented are not necessarily indicative of results that can be expected for a full year. (b) Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring estimates include valuation and recognition of stock-based compensation, leases, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical and other accruals. Actual results could differ from those estimates. (c) Reclassification The Company reclassified prior year amortization of operating lease right-of-use assets, depreciation and amortization, and changes in operating lease liabilities in the condensed consolidated statements of cash flows to conform to current year presentation. This reclassification had no effect on net cash used in operating activities. (d) Leases At contract inception, the Company determines if the contract is a lease or contains a lease. Operating leases are recorded as operating lease right-of-use assets, operating lease liabilities and non-current operating lease liabilities. Finance leases are recorded as finance lease right-of-use assets, finance lease liabilities and non-current finance lease liabilities. Right-of-use assets and lease liabilities are recognized on the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of the lease payments, the Company utilizes its estimated incremental borrowing rate based on information available at the lease commencement date as the rate implicit in the lease is not readily determinable. The right-of-use assets are recorded net of any lease incentives received. Variable lease cost primarily includes building operating expenses as charged to the Company by its landlords. For leases of office space with a lease term 12 months or less and which do not include an option to purchase the underlying asset, the Company has elected to recognize the lease payments in the statement of operations on a straight-line basis over the lease term. For leases of office space, the Company has elected to not separate the lease components from the non-lease components. (e) Fair value of financial instruments The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, receivables, accounts payable and other liabilities, approximate their fair values because of their nature and/or short maturities. At September 30, 2020, and December 31, 2019, the Company had $108.3 million and $40.0 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at fair value, which is the closing price reported by the fund sponsor from an actively traded exchange. (f) Earnings (loss) per share Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Common stock equivalents such as outstanding stock options and unvested restricted stock units are included in the calculation of diluted earnings per share only in periods of net income. Such common stock equivalents are excluded in the calculation of diluted net loss per share in periods of net loss as inclusion of such amounts would be anti-dilutive. Outstanding pre-funded warrants of 12,663,010 are considered outstanding as of their issuance date and are included in the basic and diluted net loss per share calculation because they are fully vested and exercisable at any time for a nominal cash consideration. (g) Asset acquisitions At the time of acquisition, the Company determines if a transaction should be accounted for as a business combination or acquisition of assets. For an acquisition of assets, the cost of acquiring the asset group, including transaction costs, is allocated to the acquired assets and assumed liabilities based on their relative fair values without giving rise to goodwill. Acquired in-process research and development assets are expensed if management determines that the assets do not have an alternative future use. Other long-lived intangible assets are recorded at the acquired cost and amortized using the straight-line method over their estimated useful life. The intangible asset is tested for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company recognizes an impairment loss when carrying amount is not recoverable and the estimated fair value of the intangible asset is less than its carrying value. (h) Recently issued and recently adopted accounting standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12 “Simplifying the Accounting for Income Taxes.” The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020. The Company has incurred net losses since its inception and maintains a full valuation allowance on the net deferred tax assets. As such, the Company does not expect the adoption of this standard to have a material impact on the financial condition, results of operations and cash flows, or financial statement disclosures. In August 2018, the FASB issued “ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The objective of the standard is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard on January 1, 2020 on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations, cash flows, and financial statement disclosures. |
Merger of Neoleukin Therapeutic
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. | 9 Months Ended |
Sep. 30, 2020 | |
Acquisition Of Assets [Abstract] | |
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. | 3. Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. On August 8, 2019, Aquinox Pharmaceuticals, Inc. (“Aquinox”) and Neoleukin Therapeutics, Inc. (“Former Neoleukin”) completed a transaction pursuant to the Agreement and Plan of Merger dated August 5, 2019. Former Neoleukin became a wholly owned subsidiary of Aquinox and Aquinox subsequently changed its name to Neoleukin Therapeutics, Inc. All of the outstanding shares of common stock of the Former Neoleukin were exchanged for 4,589,771 shares of common stock of the Company and 101,927 shares of non-voting convertible preferred stock of the Company. The total consideration paid was $51.6 million and consists of: (in thousands) Fair value of 4,589,771 shares of Aquinox common stock $ 15,054 Fair value of 101,927 shares of Aquinox convertible preferred stock 33,432 Cash consideration for fractional shares 5 Transaction costs 3,087 Total consideration $ 51,578 The fair value of the Aquinox securities issued to stockholders of Former Neoleukin was based on the closing stock price on August 7, 2019, the last day of trading prior to the completion of the transaction. The transaction was accounted for as an asset acquisition as Former Neoleukin did not meet the definition of a business under Accounting Standard Codification Topic 805, Business Combinations (“ASC 805”) as substantially all of the value was in the In Process Research & Development (“IPR&D”) asset. The estimated fair value of the IPR&D asset was expensed as the Company determined that the asset has no alternative future use in accordance with ASC 730 “Research and Development”. The following table summarizes the assets acquired and liabilities assumed: (in thousands) Assets acquired: Cash and cash equivalents $ 3,282 Receivables, prepayments and deposits 560 Property and equipment, net 1,034 In process research and development asset 47,716 Intangible asset 659 Total assets acquired 53,251 Liabilities assumed: Accounts payable and other liabilities 1,472 Financing lease liability 201 Total liabilities assumed 1,673 Total consideration $ 51,578 |
Cash, cash equivalents and rest
Cash, cash equivalents and restricted cash | 9 Months Ended |
Sep. 30, 2020 | |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
Cash, cash equivalents and restricted cash | 4. Cash, cash equivalents and restricted cash Restricted cash, included in other assets in the condensed consolidated balance sheets, includes $0.9 million in cash deposits the Company maintains with its bank as collateral for the irrevocable letters of credits related to its lease obligations. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): (in thousands) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 201,150 $ 143,093 Restricted cash 878 — Total cash, cash equivalents, and restricted cash $ 202,028 $ 143,093 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases. T he Company has a lease agreement for approximately 33,300 square feet of office space in Seattle, Washington, for the Company’s future principal executive offices, a laboratory for research and development and related uses. In January 2020, the Company issued an irrevocable letter of credit in the amount of $0.5 million for the security deposit in accordance with the terms of the lease. The lease commenced on January 15, 2020 and rent obligations are scheduled to commence on December 1, 2020. The Company will also be responsible for the payment of additional rent to cover the Company’s share of the annual operating and tax expenses and utilities costs for the building. The lease expires on December 1, 2028, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of $8.0 million, which is included in the base rent, and an optional additional tenant improvement allowance with a maximum amount of $1.5 million, which will result, if elected, in additional rent expense recognized over the term of the lease. In September 2020, the Company elected to utilize this additional tenant improvement allowance. This resulted in a remeasurement of the lease liability due to an increase in lease payments over the term of the lease. The Company recorded an increase to the lease liability and related right-of-use asset of $1.0 million. As of September 30, 2020, there was a tenant improvement allowance receivable of $4.2 million recorded in other current assets related to reimbursable build-out costs incurred by the Company, of which $3.9 million were unpaid and recorded in accounts payable and accrued liabilities in the condensed consolidated balance sheet. In November 2020, the Company executed an amendment to this lease that extends the scheduled rent commencement date to February 1, 2021 and the base term expiration to February 1, 2029. The amendment will not have an impact on total fixed lease payments over the base term. In addition, the amendment did not impact the associated operating lease liability or right-of-use asset as of September 30, 2020, as the event did not exist at, and arose subsequent to, September 30, 2020. The Company has a lease agreement for approximately 6,272 square feet of office space in Seattle, Washington, for the Company’s principal executive offices, a laboratory for research and development and related uses. In June 2020, the Company executed an amendment to this lease pursuant to which the Company has the option to terminate the lease, without penalty, at any point subsequent to November 1, 2020 with 45 days advance written notice. The Company determined that it is not reasonably certain to not exercise this termination option after December 15, 2020. On June 30, 2020, the Company terminated its lease agreement for 10,946 square feet of office space in Vancouver, Canada. The lease termination resulted in an extinguishment of the lease liability and the write-off of the related right-of-use asset. After incurring additional expenses included in the termination fee of $0.5 million, the Company recognized a loss of $0.3 million on the termination of the lease, which was recorded in general and administrative expenses in June 2020. In addition, the Company wrote-off leasehold improvements and other property and equipment associated with the lease and incurred a loss on disposal of $0.2 million in June 2020. As of September 30, 2020, and December 31, 2019, the Company’s operating lease right-of-use assets were $10.4 million and $0.8 million, respectively. As of September 30, 2020, and December 31, 2019, the Company’s finance lease right-of-use assets were $0.2 million and $0.3 million, respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | 6. Equity (a) Offering of common stock and pre-funded warrants On July 7, 2020, the Company completed an underwritten public offering of 3,262,471 shares of its common stock at a price of $15.25 per share and pre-funded warrants to purchase 1,737,529 shares of its common stock at a price of $15.249999 per pre-funded warrant. The pre-funded warrants can be exercised at any time after issuance for an exercise price of $0.000001 per share. The aggregate net proceeds received by the Company from the offering, net of underwriting discounts and commissions and offering costs of approximately $4.9 million, were $71.3 million. (b) Stock-based compensation expense Stock-based compensation expense is classified in the condensed consolidated statement of operations as follows: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development expenses $ 571 $ 98 $ 1,200 $ 178 General and administrative expenses 1,117 5,053 2,193 6,839 Total stock-based compensation expense $ 1,688 $ 5,151 $ 3,393 $ 7,017 Total unrecognized compensation cost for all stock-based compensation plans was $23.6 million as of September 30, 2020. This cost is expected to be recognized over a weighted average remaining vesting period of 3.31 years. The fair values of stock options granted are estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected volatility 94.84 % 90.00 % 93.86 % 90.00 % Expected dividends 0 % 0 % 0 % 0 % Expected terms (years) 6.07 6.00 6.02 6.00 Risk free rate 0.34 % 1.44 % 0.42 % 1.44 % (c) Stock options A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at December 31, 2019 5,840,538 $ 5.11 7.72 $ 45,037 Options granted 2,006,000 11.52 Options exercised (581,270 ) 7.88 Options cancelled/forfeited (497,338 ) 15.65 Outstanding at September 30, 2020 6,767,930 $ 5.99 8.70 $ 42,143 Exercisable as of September 30, 2020 1,840,302 $ 5.11 7.20 $ 13,694 During the nine months ended September 30, 2020, the Company granted stock options to purchase 1,781,000 shares of common stock to employees and 225,000 shares to non-employee directors. The stock options granted to employees have an exercise price per share ranging from $6.44 to $17.01. The stock options granted to non-employee directors during the nine months ended September 30, 2020 have an exercise price per share ranging from $12.25 and $13.58. (d) Restricted stock units A summary of the Company’s restricted stock unit activity and related information for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2019 72,000 $ 3.47 Restricted stock units granted 152,000 9.26 Restricted stock units vested (36,000 ) 3.47 Restricted stock units forfeited (1,500 ) 3.47 Non-vested at September 30, 2020 186,500 $ 8.19 (e) Employee stock purchase plan The Company’s 2020 Employee Stock Purchase Plan (“2020 ESPP”) was adopted by the Company’s Board of Directors in March 2020 and approved by the Company’s stockholders in May 2020. A total of 759,936 shares of common stock have been reserved for issuance under the 2020 ESPP. Subject to share and dollar limits as described in the plan, the 2020 ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their earnings for the purchase of the Company’s shares of common stock at the lower of 85% of the closing price of the Company’s common stock on the first trading day of the offering period or 85% of the closing price of the Company’s common stock on the last trading day of the offering period. There are two six-month offering periods during each fiscal year, ending on May 15 and November 15. The first offering period commenced on May 16, 2020. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 7. Restructuring In July 2018, the Company’s Board of Directors approved a restructuring plan to reduce operating costs and better align the Company’s workforce with the needs of its business following the June 27, 2018 announcement that its Phase 3 Leadership 301 clinical trial evaluating once-daily, oral rosiptor for the treatment of IC/BPS failed to meet its primary endpoint. The Company has halted all further development activities with rosiptor. In 2018 and 2019, the Company incurred and paid aggregate restructuring charges of $7.4 million related to clinical trial closing costs, contract cancellations, closing of its office in San Bruno, California, severance payments and other employee-related costs. During the second quarter of 2019, the Company revised its original estimate of aggregate restructuring charges lower by $2.0 million based upon updated information from its vendors related to a completed project. There were no amounts accrued as of September 30, 2020 or December 31, 2019. On November 6, 2018, the Company’s Board of Directors approved an additional restructuring plan to further reduce operating costs. The Company incurred and paid aggregate restructuring charges of $1.6 million related to severance payments and other employee-related costs. There were no amounts accrued as of September 30, 2020. For the nine months ended September 30, 2020, the Company incurred and paid an immaterial amount of restructuring charges. For the nine months ended September 30, 2019, restructuring recoveries of $ 1.9 |
Earnings (loss) per share
Earnings (loss) per share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | 8. Earnings (loss) per share The Company excluded the following potentially dilutive shares from diluted net loss per share as the effect would have been anti-dilutive for all periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Outstanding stock options 6,767,930 6,203,993 6,767,930 6,203,993 Restricted stock units 186,500 72,000 186,500 72,000 Common stock to be issued upon conversion of convertible preferred stock — 10,192,700 — 10,192,700 Shares issuable under 2020 ESPP 18,011 — 18,011 — 6,972,441 16,468,693 6,972,441 16,468,693 |
401(k) plan
401(k) plan | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) plan | 9. 401(k) plan In May 2020, the Company established a 401(k) plan that allows full-time employees to contribute a portion of their salary, subject to statutory limits. The Company makes matching cash contributions up to a pre-defined annual maximum contribution per employee per year. During the three and nine months ended September 30, 2020, the Company’s total expense for the matching contributions was immaterial. |
Sale of Aquinox Canada
Sale of Aquinox Canada | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Description Of Subsidiaries [Abstract] | |
Sale of Aquinox Canada | 10. Sale of Aquinox Canada On July 31, 2020, the Company sold all issued and outstanding capital stock of its Canadian subsidiary, Aquinox Pharmaceuticals (Canada) Inc. (“Aquinox Canada”) to an unrelated third party for cash consideration of $8.2 million. The Company concluded that the sale did not meet the criteria for discontinued operations reporting as it did not represent a strategic shift that had a major effect on the Company’s operations and financial results. As of the date of sale, Aquinox Canada’s remaining assets included intellectual property and other assets developed through past research and development activities, all of which had no book value. The transaction resulted in a net gain on sale of $7.8 million, after deducting $0.4 million in transaction costs, which is recorded as a reduction of operating expenses in the Company’s condensed consolidated statement of operations. The sale of Aquinox Canada will trigger a significant capital loss carryforward for tax purposes. However, the deferred tax asset related to the capital loss carryforward will be subject to a full valuation allowance as the Company has determined that it is more likely than not that the benefit of the loss will not be realized. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The accompanying unaudited condensed consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 12, 2020. In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments (including reclassifications and normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2020, and results of operations and cash flows for all periods presented. The interim results presented are not necessarily indicative of results that can be expected for a full year. |
Use of estimates and assumptions | (b) Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring estimates include valuation and recognition of stock-based compensation, leases, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical and other accruals. Actual results could differ from those estimates. |
Reclassification | (c) Reclassification The Company reclassified prior year amortization of operating lease right-of-use assets, depreciation and amortization, and changes in operating lease liabilities in the condensed consolidated statements of cash flows to conform to current year presentation. This reclassification had no effect on net cash used in operating activities. |
Leases | (d) Leases At contract inception, the Company determines if the contract is a lease or contains a lease. Operating leases are recorded as operating lease right-of-use assets, operating lease liabilities and non-current operating lease liabilities. Finance leases are recorded as finance lease right-of-use assets, finance lease liabilities and non-current finance lease liabilities. Right-of-use assets and lease liabilities are recognized on the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of the lease payments, the Company utilizes its estimated incremental borrowing rate based on information available at the lease commencement date as the rate implicit in the lease is not readily determinable. The right-of-use assets are recorded net of any lease incentives received. Variable lease cost primarily includes building operating expenses as charged to the Company by its landlords. For leases of office space with a lease term 12 months or less and which do not include an option to purchase the underlying asset, the Company has elected to recognize the lease payments in the statement of operations on a straight-line basis over the lease term. For leases of office space, the Company has elected to not separate the lease components from the non-lease components. |
Fair value of financial instruments | (e) Fair value of financial instruments The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, receivables, accounts payable and other liabilities, approximate their fair values because of their nature and/or short maturities. At September 30, 2020, and December 31, 2019, the Company had $108.3 million and $40.0 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at fair value, which is the closing price reported by the fund sponsor from an actively traded exchange. |
Earnings (loss) per share | (f) Earnings (loss) per share Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Common stock equivalents such as outstanding stock options and unvested restricted stock units are included in the calculation of diluted earnings per share only in periods of net income. Such common stock equivalents are excluded in the calculation of diluted net loss per share in periods of net loss as inclusion of such amounts would be anti-dilutive. Outstanding pre-funded warrants of 12,663,010 are considered outstanding as of their issuance date and are included in the basic and diluted net loss per share calculation because they are fully vested and exercisable at any time for a nominal cash consideration. |
Asset acquisitions | (g) Asset acquisitions At the time of acquisition, the Company determines if a transaction should be accounted for as a business combination or acquisition of assets. For an acquisition of assets, the cost of acquiring the asset group, including transaction costs, is allocated to the acquired assets and assumed liabilities based on their relative fair values without giving rise to goodwill. Acquired in-process research and development assets are expensed if management determines that the assets do not have an alternative future use. Other long-lived intangible assets are recorded at the acquired cost and amortized using the straight-line method over their estimated useful life. The intangible asset is tested for impairment when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company recognizes an impairment loss when carrying amount is not recoverable and the estimated fair value of the intangible asset is less than its carrying value. |
Recently issued and recently adopted accounting standards | (h) Recently issued and recently adopted accounting standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12 “Simplifying the Accounting for Income Taxes.” The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020. The Company has incurred net losses since its inception and maintains a full valuation allowance on the net deferred tax assets. As such, the Company does not expect the adoption of this standard to have a material impact on the financial condition, results of operations and cash flows, or financial statement disclosures. In August 2018, the FASB issued “ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The objective of the standard is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard on January 1, 2020 on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s financial condition, results of operations, cash flows, and financial statement disclosures. |
Merger of Neoleukin Therapeut_2
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Acquisition Of Assets [Abstract] | |
Schedule of Total Consideration Paid | The total consideration paid was $51.6 million and consists of: (in thousands) Fair value of 4,589,771 shares of Aquinox common stock $ 15,054 Fair value of 101,927 shares of Aquinox convertible preferred stock 33,432 Cash consideration for fractional shares 5 Transaction costs 3,087 Total consideration $ 51,578 |
Summary of the Assets Acquired and Liabilities Assumed | The following table summarizes the assets acquired and liabilities assumed: (in thousands) Assets acquired: Cash and cash equivalents $ 3,282 Receivables, prepayments and deposits 560 Property and equipment, net 1,034 In process research and development asset 47,716 Intangible asset 659 Total assets acquired 53,251 Liabilities assumed: Accounts payable and other liabilities 1,472 Financing lease liability 201 Total liabilities assumed 1,673 Total consideration $ 51,578 |
Cash, cash equivalents and re_2
Cash, cash equivalents and restricted cash (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): (in thousands) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 201,150 $ 143,093 Restricted cash 878 — Total cash, cash equivalents, and restricted cash $ 202,028 $ 143,093 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Stock-based Compensation Expense | Stock-based compensation expense is classified in the condensed consolidated statement of operations as follows: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development expenses $ 571 $ 98 $ 1,200 $ 178 General and administrative expenses 1,117 5,053 2,193 6,839 Total stock-based compensation expense $ 1,688 $ 5,151 $ 3,393 $ 7,017 |
Schedule of Weighted Average Assumptions | The fair values of stock options granted are estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected volatility 94.84 % 90.00 % 93.86 % 90.00 % Expected dividends 0 % 0 % 0 % 0 % Expected terms (years) 6.07 6.00 6.02 6.00 Risk free rate 0.34 % 1.44 % 0.42 % 1.44 % |
Schedule of Stock Options Activity | A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at December 31, 2019 5,840,538 $ 5.11 7.72 $ 45,037 Options granted 2,006,000 11.52 Options exercised (581,270 ) 7.88 Options cancelled/forfeited (497,338 ) 15.65 Outstanding at September 30, 2020 6,767,930 $ 5.99 8.70 $ 42,143 Exercisable as of September 30, 2020 1,840,302 $ 5.11 7.20 $ 13,694 |
Summary of Nonvested Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit activity and related information for the nine months ended September 30, 2020 is as follows: Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2019 72,000 $ 3.47 Restricted stock units granted 152,000 9.26 Restricted stock units vested (36,000 ) 3.47 Restricted stock units forfeited (1,500 ) 3.47 Non-vested at September 30, 2020 186,500 $ 8.19 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially dilutive shares from diluted net loss per share | The Company excluded the following potentially dilutive shares from diluted net loss per share as the effect would have been anti-dilutive for all periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Outstanding stock options 6,767,930 6,203,993 6,767,930 6,203,993 Restricted stock units 186,500 72,000 186,500 72,000 Common stock to be issued upon conversion of convertible preferred stock — 10,192,700 — 10,192,700 Shares issuable under 2020 ESPP 18,011 — 18,011 — 6,972,441 16,468,693 6,972,441 16,468,693 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Money market funds at fair value | $ 108,300 | $ 40,000 |
Class of warrant or right, outstanding | 12,663,010 |
Merger of Neoleukin Therapeut_3
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. - Additional information (Detail) - shares | Aug. 08, 2019 | Sep. 30, 2019 |
Non-voting convertible preferred stock [Member] | Aquinox [Member] | ||
Acquisition Of Assets [Line Items] | ||
Stock issued for acquisition | 101,927 | |
Common Stock [Member] | ||
Acquisition Of Assets [Line Items] | ||
Stock issued for acquisition | 4,589,771 | |
Common Stock [Member] | Aquinox [Member] | ||
Acquisition Of Assets [Line Items] | ||
Stock issued for acquisition | 4,589,771 |
Merger of Neoleukin Therapeut_4
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. - Schedule of Total Consideration Paid (Detail) $ in Thousands | Aug. 08, 2019USD ($) |
Acquisition Of Assets [Line Items] | |
Cash consideration for fractional shares | $ 5 |
Transaction costs | 3,087 |
Total consideration | 51,578 |
Aquinox [Member] | Common Stock [Member] | |
Acquisition Of Assets [Line Items] | |
Fair Value | 15,054 |
Convertible Preferred Stock [Member] | Aquinox [Member] | |
Acquisition Of Assets [Line Items] | |
Fair Value | $ 33,432 |
Merger of Neoleukin Therapeut_5
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. - Schedule of Total Consideration Paid (Parenthetical) (Detail) - USD ($) $ in Thousands | Aug. 08, 2019 | Sep. 30, 2019 |
Acquisition Of Assets [Line Items] | ||
Assets of acquisitions consideration | $ 51,578 | |
Non-voting convertible preferred stock [Member] | Aquinox [Member] | ||
Acquisition Of Assets [Line Items] | ||
Stock issued for acquisition | 101,927 | |
Common Stock [Member] | ||
Acquisition Of Assets [Line Items] | ||
Stock issued for acquisition | 4,589,771 | |
Common Stock [Member] | Aquinox [Member] | ||
Acquisition Of Assets [Line Items] | ||
Stock issued for acquisition | 4,589,771 |
Merger of Neoleukin Therapeut_6
Merger of Neoleukin Therapeutics, Inc. and Aquinox Pharmaceuticals, Inc. - Summary of the Assets Acquired and Liabilities Assumed (Detail) $ in Thousands | Aug. 08, 2019USD ($) |
Assets acquired: | |
Cash and cash equivalents | $ 3,282 |
Receivables, prepayments and deposits | 560 |
Property and equipment, net | 1,034 |
In process research and development asset | 47,716 |
Intangible asset | 659 |
Total assets acquired | 53,251 |
Liabilities assumed: | |
Accounts payable and other liabilities | 1,472 |
Financing lease liability | 201 |
Total liabilities assumed | 1,673 |
Total consideration | $ 51,578 |
Cash, cash equivalents and re_3
Cash, cash equivalents and restricted cash - Additional Information (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
Cash deposit | $ 0.9 |
Cash, cash equivalents and re_4
Cash, cash equivalents and restricted cash - Schedule of cash, cash equivalents, and restricted cash (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 201,150 | $ 143,093 | ||
Restricted cash | 878 | |||
Total cash, cash equivalents, and restricted cash | $ 202,028 | $ 143,093 | $ 66,306 | $ 76,928 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | Nov. 09, 2020 | Sep. 30, 2020USD ($)ft² | Jun. 30, 2020USD ($)ft² | Sep. 30, 2020USD ($)ft²Option | Dec. 31, 2019USD ($) |
Lessee Lease Description [Line Items] | |||||
Square feet of office space leased | ft² | 33,300 | 33,300 | |||
Tenant improvements | $ 8,000 | ||||
Additional tenant improvements | $ 1,500 | 1,500 | |||
Cash deposit | 900 | 900 | |||
Tenant improvement allowance receivable reimbursable by the landlord | 4,200 | ||||
Accounts Payable and Accrued Liabilities | 3,900 | 3,900 | |||
Termination fees for lease termination | 500 | ||||
Operating lease right of use asset | $ 300 | ||||
Leasehold improvements, gross | $ 200 | ||||
Operating lease right-of-use assets | 10,398 | 10,398 | $ 770 | ||
Finance lease right-of-use assets | 200 | 200 | $ 300 | ||
Irrevocable Letters of Credit [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Cash deposit | $ 500 | $ 500 | |||
USA [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Lease agreement, commencement date | Jan. 15, 2020 | ||||
Lease agreement, expiration date | Dec. 1, 2028 | ||||
Number of option to extend leases | Option | 2 | ||||
Lease agreement option to extend lease term | five-year | ||||
USA [Member] | Subsequent Event [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Lease agreement, commencement date | Feb. 1, 2021 | ||||
Lease agreement, expiration date | Feb. 1, 2029 | ||||
Washington [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Square feet of office space leased | ft² | 6,272 | 6,272 | |||
Amortization of right-of-use assets | $ 1,000 | ||||
Reduction in lease obligation | $ 1,000 | ||||
Canada [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Square feet of office space leased | ft² | 10,946 |
Equity - Additional Information
Equity - Additional Information (Details) | Jul. 07, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)Offering$ / sharesshares |
Offering costs | $ | $ 4,900,000 | $ 355,000 |
Proceeds from offering, net of underwriting discounts and commissions | $ | $ 71,300,000 | |
Unrecognized stock-based compensation cost | $ | $ 23,600 | |
Unrecognized stock-based compensation cost, weighted-average period recognized | 3 years 3 months 21 days | |
Options granted, Number of Shares | shares | 2,006,000 | |
Options granted, Weighted Average Exercise Price | $ 11.52 | |
Common stock shares reserved for issuance under employee stock purchase plan | shares | 759,936 | |
Employee stock ownership plan (ESOP), plan description | eligible employees to contribute, through payroll deductions, up to 15% of their earnings for the purchase of the Company’s shares of common stock at the lower of 85% of the closing price of the Company’s common stock on the first trading day of the offering period or 85% of the closing price of the Company’s common stock on the last trading day of the offering period | |
employee stock purchase plan number of offering per year | Offering | 2 | |
employee stock purchase plan offering commencement date | May 16, 2020 | |
Employee Director [Member] | ||
Options granted, Number of Shares | shares | 1,781,000 | |
Employee Director [Member] | Minimum [Member] | ||
Options granted, Weighted Average Exercise Price | $ 6.44 | |
Employee Director [Member] | Maximum [Member] | ||
Options granted, Weighted Average Exercise Price | $ 17.01 | |
Non employee directors [Member] | ||
Options granted, Number of Shares | shares | 225,000 | |
Non employee directors [Member] | Minimum [Member] | ||
Options granted, Weighted Average Exercise Price | $ 12.25 | |
Non employee directors [Member] | Maximum [Member] | ||
Options granted, Weighted Average Exercise Price | $ 13.58 | |
Underwritten Public Offering [Member] | ||
Issuance of common stock and pre-funded warrants, net of commisions and offering expenses, shares | shares | 3,262,471 | |
Common stock shares issued, price per share | $ 15.25 | |
Prefunded Warrants [Member] | ||
Warrant to purchase common stock | shares | 1,737,529 | |
Warrant to purchase common stock, exercise price per share | $ 15.249999 | |
Warrant to purchase common stock after issuance, exercise price per share | $ 0.000001 |
Equity - Summary of Stock-based
Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total stock-based compensation expense | $ 1,688 | $ 5,151 | $ 3,393 | $ 7,017 |
Research and Development Expense [Member] | ||||
Total stock-based compensation expense | 571 | 98 | 1,200 | 178 |
General and Administrative Expense [Member] | ||||
Total stock-based compensation expense | $ 1,117 | $ 5,053 | $ 2,193 | $ 6,839 |
Equity - Schedule of Weighted A
Equity - Schedule of Weighted Average Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Expected volatility | 94.84% | 90.00% | 93.86% | 90.00% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Expected terms (years) | 6 years 25 days | 6 years | 6 years 7 days | 6 years |
Risk free rate | 0.34% | 1.44% | 0.42% | 1.44% |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Equity [Abstract] | ||
Options Outstanding, Number of Shares, beginning balance | shares | 5,840,538 | |
Options granted, Number of Shares | shares | 2,006,000 | |
Options exercised, Number of Shares | shares | (581,270) | |
Options cancelled/ forfeited, Number of Shares | shares | (497,338) | |
Options Outstanding, Number of Shares, ending balance | shares | 6,767,930 | 5,840,538 |
Exercisable, Number of Shares, ending balance | shares | 1,840,302 | |
Options Outstanding, Weighted Average Exercise Price, beginning balance | $ / shares | $ 5.11 | |
Options granted, Weighted Average Exercise Price | $ / shares | 11.52 | |
Options exercised, Weighted Average Exercise Price | $ / shares | 7.88 | |
Options cancelled/forfeited, Weighted Average Exercise Price | $ / shares | 15.65 | |
Options Outstanding, Weighted Average Exercise Price, ending balance | $ / shares | 5.99 | $ 5.11 |
Options Exercisable, Weighted Average Exercise Price, ending balance | $ / shares | $ 5.11 | |
Weighted average remaining contractual life, options outstanding | 8 years 8 months 12 days | 7 years 8 months 19 days |
Weighted average remaining contractual life, options exercisable | 7 years 2 months 12 days | |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 42,143 | $ 45,037 |
Exercisable, Aggregate Intrinsic Value | $ | $ 13,694 |
Equity - Summary of Nonvested R
Equity - Summary of Nonvested Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock units, Number of Shares, beginning balance | shares | 72,000 |
Restricted stock units granted, Number of Shares | shares | 152,000 |
Restricted stock units vested, Number of Shares | shares | (36,000) |
Restricted stock units forfeited, Number of Shares | shares | (1,500) |
Restricted stock units, Number of Shares, ending balance | shares | 186,500 |
Restricted stock units, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 3.47 |
Restricted stock units granted, weighted average grant date fair value (per share) | $ / shares | 9.26 |
Restricted stock units vested, weighted average grant date fair value (per share) | $ / shares | 3.47 |
Restricted stock units forfeited, weighted average grant date fair value (per share) | $ / shares | 3.47 |
Restricted stock units, Weighted Average Grant Date Fair Value, ending balance | $ / shares | $ 8.19 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Research and Development Expense [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 1,900,000 | |||
General and Administrative Expense [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges | $ 600,000 | |||
Restructuring Plan, July 2018 [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges incurred | $ 7,400 | |||
Revised estimates during the year/ period | $ 2,000 | |||
Amounts accrued | 0 | $ 0 | ||
Restructuring Plan, November 6, 2018 [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring charges incurred | $ 1,600 | |||
Amounts accrued | $ 0 |
Earnings (loss) per share - Sch
Earnings (loss) per share - Schedule of basic and diluted net loss per common stock (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Securities excluded from computation of earnings per share | 6,972,441 | 16,468,693 | 6,972,441 | 16,468,693 |
Outstanding stock options [Member] | ||||
Securities excluded from computation of earnings per share | 6,767,930 | 6,203,993 | 6,767,930 | 6,203,993 |
Restricted stock units [Member] | ||||
Securities excluded from computation of earnings per share | 186,500 | 72,000 | 186,500 | 72,000 |
Convertible Preferred Stock [Member] | ||||
Securities excluded from computation of earnings per share | 10,192,700 | 10,192,700 | ||
Shares issuable under 2020 ESPP [Member] | ||||
Securities excluded from computation of earnings per share | 18,011 | 18,011 |
Sale of Aquinox Caanada - Addit
Sale of Aquinox Caanada - Additional Information (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2020 |
Subsidiary Sale Of Stock [Line Items] | |||
Gain on sale of asset | $ 7,826 | $ 7,826 | |
Acqinox Pharmaceuticals [Member] | |||
Subsidiary Sale Of Stock [Line Items] | |||
Consideration from sale of assets | $ 8,200 | ||
Gain on sale of asset | 7,800 | ||
Transaction cost on sale of asset | $ 400 |