Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36327 | |
Entity Registrant Name | Neoleukin Therapeutics, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0542593 | |
Entity Address, Address Line One | 188 East Blaine Street | |
Entity Address, Address Line Two | Suite 450 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98102 | |
City Area Code | 866 | |
Local Phone Number | 245-0312 | |
Title of 12(b) Security | Common Stock, par value $0.000001 | |
Trading Symbol | NLTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,428,134 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001404644 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated_Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 154,924 | $ 192,556 |
Other current assets | 1,574 | 1,966 |
Total current assets | 156,498 | 194,522 |
Property and equipment, net | 6,257 | 3,570 |
Operating lease right-of-use assets | 11,008 | 10,154 |
Intangible asset, net | 183 | 347 |
Other non-current assets | 1,988 | 1,926 |
Total assets | 175,934 | 210,519 |
Current liabilities | ||
Accounts payable and accrued liabilities | 7,774 | 7,181 |
Operating lease liabilities | 1,118 | 659 |
Finance lease liabilities | 104 | 49 |
Total current liabilities | 8,996 | 7,889 |
Non-current operating lease liabilities | 12,004 | 11,306 |
Non-current finance lease liabilities | 68 | 108 |
Total liabilities | 21,068 | 19,303 |
Stockholders’ equity | ||
Common stock - $0.000001 par value - authorized, 100,000,000 as of September 30, 2021 and December 31, 2020; issued and outstanding, 42,428,134 as of September 30, 2021 and 42,196,296 as of December 31, 2020. | 0 | 0 |
Preferred stock - $0.000001 par value - authorized, 5,000,000 as of September 30, 2021 and December 31, 2020; issued and outstanding, 0 as of September 30, 2021 and December 31, 2020. | 0 | 0 |
Additional paid-in capital | 533,197 | 524,022 |
Accumulated deficit | (378,331) | (332,806) |
Total stockholders’ equity | 154,866 | 191,216 |
Total liabilities and stockholders’ equity | $ 175,934 | $ 210,519 |
Condensed Consolidated_Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 42,428,134 | 42,196,296 |
Common stock, shares outstanding (in shares) | 42,428,134 | 42,196,296 |
Preferred stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating loss | ||||
Research and development | $ 9,896 | $ 6,216 | $ 29,402 | $ 16,557 |
General and administrative | 5,556 | 3,860 | 16,122 | 12,359 |
Gain on sale of Aquinox Canada | 0 | (7,826) | 0 | (7,826) |
Total operating loss | 15,452 | 2,250 | 45,524 | 21,090 |
Other income (loss), net | 6 | 1 | (1) | 453 |
Net loss | $ (15,446) | $ (2,249) | $ (45,525) | $ (20,637) |
Net loss per share – basic (in dollars per share) | $ (0.28) | $ (0.04) | $ (0.83) | $ (0.41) |
Net loss per share – diluted (in dollars per share) | $ (0.28) | $ (0.04) | $ (0.83) | $ (0.41) |
Basic weighted average common shares outstanding (in shares) | 55,087,777 | 54,121,676 | 55,020,059 | 50,896,014 |
Diluted weighted average common shares outstanding (in shares) | 55,087,777 | 54,121,676 | 55,020,059 | 50,896,014 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (45,525) | $ (20,637) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 8,548 | 3,393 |
Depreciation and amortization | 916 | 578 |
Amortization of operating lease right-of-use assets | 730 | 784 |
Loss on disposal of property and equipment | 0 | 180 |
Write-off of right-of-use asset upon lease termination | 0 | 113 |
Changes in operating assets and liabilities: | ||
Other current assets and other non-current assets | 36 | (5,026) |
Accounts payable and accrued liabilities | 332 | 5,125 |
Operating lease right-of-use assets | 0 | (169) |
Operating lease liabilities | (427) | 313 |
Net cash used in operating activities | (35,390) | (15,346) |
Investing activities | ||
Purchase of property and equipment | (2,867) | (1,566) |
Net cash used in investing activities | (2,867) | (1,566) |
Financing activities | ||
Proceeds from issuance of common stock and pre-funded warrants, net of commissions of $4.6 million | 0 | 71,675 |
Payment of offering costs | 0 | (355) |
Proceeds from exercise of stock options | 408 | 4,576 |
Proceeds from the issuance of common stock under Employee Stock Purchase Plan | 219 | 0 |
Payment on finance lease obligations | (2) | (49) |
Net cash provided by financing activities | 625 | 75,847 |
Net change in cash, cash equivalents, and restricted cash during the period | (37,632) | 58,935 |
Cash, cash equivalents, and restricted cash, beginning of period | 193,434 | 143,093 |
Cash, cash equivalents, and restricted cash, end of period | 155,802 | 202,028 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Operating lease liabilities arising from obtaining ROU asset | 1,584 | 10,618 |
Purchases of property and equipment unpaid at period-end | $ 297 | $ 271 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance, beginning (in shares) at Dec. 31, 2019 | 37,996,849 | |||
Balance, beginning at Dec. 31, 2019 | $ 141,687 | $ 441,216 | $ (299,529) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 376,311 | |||
Shares issued upon exercises of stock options | 3,392 | 3,392 | ||
Shares issued upon vesting of restricted stock units (in shares) | 13,000 | |||
Stock-based compensation | 683 | 683 | ||
Net loss | (8,642) | (8,642) | ||
Balance, ending (in shares) at Mar. 31, 2020 | 38,386,160 | |||
Balance, ending at Mar. 31, 2020 | 137,120 | 445,291 | (308,171) | |
Balance, beginning (in shares) at Dec. 31, 2019 | 37,996,849 | |||
Balance, beginning at Dec. 31, 2019 | $ 141,687 | 441,216 | (299,529) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 581,270 | |||
Net loss | $ (20,637) | |||
Balance, ending (in shares) at Sep. 30, 2020 | 41,876,590 | |||
Balance, ending at Sep. 30, 2020 | 200,340 | 520,506 | (320,166) | |
Balance, beginning (in shares) at Mar. 31, 2020 | 38,386,160 | |||
Balance, beginning at Mar. 31, 2020 | 137,120 | 445,291 | (308,171) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 98,882 | |||
Shares issued upon exercises of stock options | 303 | 303 | ||
Shares issued upon vesting of restricted stock units (in shares) | 1,500 | |||
Stock-based compensation | 1,022 | 1,022 | ||
Net loss | (9,746) | (9,746) | ||
Balance, ending (in shares) at Jun. 30, 2020 | 38,486,542 | |||
Balance, ending at Jun. 30, 2020 | 128,699 | 446,616 | (317,917) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock and pre-funded warrants, net of commissions and offering expenses (in shares) | 3,262,471 | |||
Issuance of common stock and pre-funded warrants, net of commissions and offering expenses | 71,320 | 71,320 | ||
Shares issued upon exercises of stock options (in shares) | 106,077 | |||
Shares issued upon exercises of stock options | 882 | 882 | ||
Shares issued upon vesting of restricted stock units (in shares) | 21,500 | |||
Stock-based compensation | 1,688 | 1,688 | ||
Net loss | (2,249) | (2,249) | ||
Balance, ending (in shares) at Sep. 30, 2020 | 41,876,590 | |||
Balance, ending at Sep. 30, 2020 | 200,340 | 520,506 | (320,166) | |
Balance, beginning (in shares) at Dec. 31, 2020 | 42,196,296 | |||
Balance, beginning at Dec. 31, 2020 | 191,216 | 524,022 | (332,806) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 91,737 | |||
Shares issued upon exercises of stock options | 282 | 282 | ||
Shares issued upon vesting of restricted stock units (in shares) | 38,000 | |||
Stock-based compensation | 2,420 | 2,420 | ||
Net loss | (14,950) | (14,950) | ||
Balance, ending (in shares) at Mar. 31, 2021 | 42,326,033 | |||
Balance, ending at Mar. 31, 2021 | 178,968 | 526,724 | (347,756) | |
Balance, beginning (in shares) at Dec. 31, 2020 | 42,196,296 | |||
Balance, beginning at Dec. 31, 2020 | $ 191,216 | 524,022 | (332,806) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 124,366 | |||
Net loss | $ (45,525) | |||
Balance, ending (in shares) at Sep. 30, 2021 | 42,428,134 | |||
Balance, ending at Sep. 30, 2021 | 154,866 | 533,197 | (378,331) | |
Balance, beginning (in shares) at Mar. 31, 2021 | 42,326,033 | |||
Balance, beginning at Mar. 31, 2021 | 178,968 | 526,724 | (347,756) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 25,124 | |||
Shares issued upon exercises of stock options | 95 | 95 | ||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 22,972 | |||
Issuance of shares under Employee Stock Purchase Plan | 219 | 219 | ||
Shares issued upon vesting of restricted stock units (in shares) | 45,000 | |||
Stock-based compensation | 2,918 | 2,918 | ||
Net loss | (15,129) | (15,129) | ||
Balance, ending (in shares) at Jun. 30, 2021 | 42,419,129 | |||
Balance, ending at Jun. 30, 2021 | 167,071 | 529,956 | (362,885) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued upon exercises of stock options (in shares) | 7,505 | |||
Shares issued upon exercises of stock options | 31 | 31 | ||
Shares issued upon vesting of restricted stock units (in shares) | 1,500 | |||
Stock-based compensation | 3,210 | 3,210 | ||
Net loss | (15,446) | (15,446) | ||
Balance, ending (in shares) at Sep. 30, 2021 | 42,428,134 | |||
Balance, ending at Sep. 30, 2021 | $ 154,866 | $ 533,197 | $ (378,331) |
Sale of Aquinox Canada
Sale of Aquinox Canada | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Description Of Subsidiaries [Abstract] | |
Sale of Aquinox Canada | Sale of Aquinox CanadaOn 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 was recorded as a reduction of operating loss in the Company’s condensed consolidated statement of operations. The sale of Aquinox Canada triggered a significant capital loss carryforward for tax purposes. However, most of the capital loss carryforward was limited by the prior ownership change under Section 382 of the Internal Revenue Code. The remaining unlimited portion of the capital loss carryforward was subject to a full valuation allowance as the Company had determined that it was more likely than not that the benefit of the loss would not be realized. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Statement of Cash Flows [Abstract] | |
Commissions | $ 4.6 |
Nature of operations
Nature of operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operationsNeoleukin 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, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 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, 2020, filed with the Securities and Exchange Commission on March 25, 2021. On December 31, 2020, Neoleukin Corporation, the Company's wholly owned subsidiary, was merged into the Company. As a result, the Company has consisted of a single operating company since December 31, 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 of the Company as of September 30, 2021, 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, the incremental borrowing rate utilized in the measurement of operating and finance lease liabilities, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical, clinical, and other accruals. Actual results could differ from those estimates. (c) Leases At contract inception, the Company determines if the contract is or contains a lease. 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 interest rate implicit in the lease is typically not readily determinable. The related 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 and payments for lessor-owned assets that are not covered by a tenant improvement allowance. The Company includes options to extend the lease in its lease liability and right-of-use asset when it is reasonably certain that it will exercise that option. None of the Company's options to extend the rental term of any of its existing leases were considered reasonably certain as of September 30, 2021. For leases of office space and equipment, the Company has elected to not separate the lease components from the non-lease components. For leases with a lease term of 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. (d) 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, 2021, and December 31, 2020, the Company had $152.4 million and $108.3 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at the closing price reported by the fund sponsor from an actively traded exchange. (e) 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 as of September 30, 2021 and September 30, 2020 were 12,663,010 and 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 after 61 days' notice for nominal cash consideration. (f) Accounting for stock-based compensation The Company has issued stock options and restricted stock units (“RSUs”). The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Awards subject to performance-based vesting requirements are expensed utilizing a graded vesting model if achievement of the performance criteria is determined to be probable. The Company accounts for forfeitures as they occur. The Company utilizes newly issued shares to satisfy option exercises and the vesting of RSUs. The Company estimates the fair value of options using the Black-Scholes option pricing model on the grant date. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, the Company has based its expected term for awards issued to employees on the simplified method, which represents the average period from vesting to the expiration of the stock option. In addition, the Company does not have sufficient trading history for the Company’s common stock, and therefore, the expected stock price volatility for the Company’s common stock was estimated by taking the average historical price volatility for industry peers. The Company has never declared or paid any cash dividends to common stockholders and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The risk-free interest rate was based on the yields of treasury securities with maturities similar to the expected term of the options for each option group. The fair value of each RSU is measured using the closing price of the Company’s common stock on the date of grant. (g) 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 this ASU 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 became effective for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021 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. |
Cash, cash equivalents, and res
Cash, cash equivalents, and restricted cash | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash Restricted cash, included in other non-current 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 credit related to its lease obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets t hat sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 154,924 $ 192,556 Restricted cash 878 878 Total cash, cash equivalents, and restricted cash $ 155,802 $ 193,434 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases. The Company has a lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 square feet of office space in Seattle, Washington for the Company’s principal executive offices, a laboratory for research and development, and related uses. The lease commenced on January 15, 2020 and expires on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million, which had been fully utilized as of September 30, 2021. The Company has a lease agreement for approximately 6,272 square feet of office space in Seattle, Washington, for additional office and laboratory space for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million. The Company had a lease agreement for approximately 10,946 square feet of office space in Vancouver, Canada. On June 30, 2020, the Company entered into a lease amendment agreement. Under the amended agreement, the lease term expired on June 30, 2020, and the Company paid an early termination fee of $0.5 million. The Company accounted for the lease amendment as a lease termination which 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, the Company recognized a loss of $0.3 million on the termination of the lease, which was recorded in general and administrative expenses in the nine months ended September 30, 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 the nine months ended September 30, 2020. |
Leases | Leases The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases. The Company has a lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 square feet of office space in Seattle, Washington for the Company’s principal executive offices, a laboratory for research and development, and related uses. The lease commenced on January 15, 2020 and expires on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million, which had been fully utilized as of September 30, 2021. The Company has a lease agreement for approximately 6,272 square feet of office space in Seattle, Washington, for additional office and laboratory space for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million. The Company had a lease agreement for approximately 10,946 square feet of office space in Vancouver, Canada. On June 30, 2020, the Company entered into a lease amendment agreement. Under the amended agreement, the lease term expired on June 30, 2020, and the Company paid an early termination fee of $0.5 million. The Company accounted for the lease amendment as a lease termination which 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, the Company recognized a loss of $0.3 million on the termination of the lease, which was recorded in general and administrative expenses in the nine months ended September 30, 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 the nine months ended September 30, 2020. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity (a) Common stock and pre-funded warrants The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.000001 as of September 30, 2021 and December 31, 2020. As of September 30, 2021 and December 31, 2020, the total number of shares of common stock issued and outstanding was 42,428,134 and 42,196,296, respectively. As of September 30, 2021, the Company had pre-funded warrants outstanding to purchase an aggregate of 12,663,010 shares of common stock. The pre-funded warrants are exercisable at any time, with 61 days' notice, for an exercise price of $0.000001, except that the pre-funded warrants cannot be exercised by the holders if, after giving effect thereto, the holders would beneficially own more than 9.99% of the outstanding common stock, subject to certain exceptions. The holders of the pre-funded warrants will not have the right to vote on any matter except to the extent required by Delaware law. 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 Nine Months Ended 2021 2020 2021 2020 Research and development expenses $ 1,423 $ 571 $ 3,850 $ 1,200 General and administrative expenses 1,787 1,117 4,698 2,193 Total stock-based compensation expense $ 3,210 $ 1,688 $ 8,548 $ 3,393 Total unrecognized compensation expense for all stock-based compensation plans was $35.9 million as of September 30, 2021. This expense is expected to be recognized over a weighted average remaining vesting period of 2.97 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 Nine Months Ended 2021 2020 2021 2020 Expected volatility 89.17 % 94.84 % 89.18 % 93.86 % Expected dividends 0 % 0 % 0 % 0 % Expected terms (years) 6.07 6.07 6.03 6.02 Risk free rate 0.83 % 0.34 % 0.89 % 0.42 % (c) Stock options A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2021 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2020 6,846,289 $ 6.42 8.71 $ 53,127 Options granted 3,019,749 $ 8.85 Options exercised (124,366) $ 3.28 Options cancelled/forfeited (122,534) $ 11.14 Outstanding at September 30, 2021 9,619,138 $ 7.16 8.53 $ 18,377 Exercisable as of September 30, 2021 3,134,157 $ 5.90 7.58 $ 9,339 During the nine months ended September 30, 2021, 124,366 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $1.3 million. During the nine months ended September 30, 2020, 581,270 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $2.8 million. The weighted-average grant date fair value of options granted during the nine months ended September 30, 2021 and September 30, 2020 was $6.49 and $8.69 per share, respectively. (d) Restricted stock units A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2021 is as follows: Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 186,500 $ 8.19 Restricted stock units granted 70,000 $ 12.94 Restricted stock units vested (84,500) $ 7.20 Restricted stock units forfeited (1,500) $ 12.00 Non-vested at September 30, 2021 170,500 $ 10.59 During the nine months ended September 30, 2021, the Company granted 50,000 RSUs which vest based on certain performance conditions in two equal tranches. Each RSU entitles the holder to receive one share of the Company's common stock when the RSU vests. Twenty-five thousand of such performance-based RSUs vested during the nine months ended September 30, 2021 as the related performance condition was met. Related stock-based compensation expense recognized was $0.3 million. The remaining 25,000 RSUs are not currently considered probable to vest. As such, expense of $0.3 million related to this tranche remained unrecognized as of September 30, 2021. (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 shares of the Company’s 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. For the nine months ended September 30, 2021, the Company issued 22,972 shares of common stock at a purchase price per share of $9.53 under the 2020 ESPP. Cash received from the purchases under the 2020 ESPP for the nine months ended September 30, 2021 was $0.2 million. As of September 30, 2021, $0.2 million of employee contributions are included in accounts payable and accrued liabilities in the accompanying condensed consolidated balance sheet. |
Earnings (loss) per share
Earnings (loss) per share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | Earnings (loss) per shareThe 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 Nine Months Ended 2021 2020 2021 2020 Outstanding stock options 9,619,138 6,767,930 9,619,138 6,767,930 Restricted stock units 170,500 186,500 170,500 186,500 Shares issuable under 2020 ESPP 24,965 18,011 24,965 18,011 9,814,603 6,972,441 9,814,603 6,972,441 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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, 2020, filed with the Securities and Exchange Commission on March 25, 2021. On December 31, 2020, Neoleukin Corporation, the Company's wholly owned subsidiary, was merged into the Company. As a result, the Company has consisted of a single operating company since December 31, 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 of the Company as of September 30, 2021, 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 | Use of estimates and assumptionsThe 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, the incremental borrowing rate utilized in the measurement of operating and finance lease liabilities, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical, clinical, and other accruals. Actual results could differ from those estimates. |
Leases | Leases At contract inception, the Company determines if the contract is or contains a lease. 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 interest rate implicit in the lease is typically not readily determinable. The related 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 and payments for lessor-owned assets that are not covered by a tenant improvement allowance. The Company includes options to extend the lease in its lease liability and right-of-use asset when it is reasonably certain that it will exercise that option. None of the Company's options to extend the rental term of any of its existing leases were considered reasonably certain as of September 30, 2021. For leases of office space and equipment, the Company has elected to not separate the lease components from the non-lease components. For leases with a lease term of 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. |
Fair value of financial instruments | 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, 2021, and December 31, 2020, the Company had $152.4 million and $108.3 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at the closing price reported by the fund sponsor from an actively traded exchange. |
Earnings (loss) per share | Earnings (loss) per shareBasic 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 as of September 30, 2021 and September 30, 2020 were 12,663,010 and 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 after 61 days' notice for nominal cash consideration. |
Accounting for stock-based compensation | Accounting for stock-based compensation The Company has issued stock options and restricted stock units (“RSUs”). The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award is recognized on a straight-line basis over the requisite service period, which is generally the vesting period. Awards subject to performance-based vesting requirements are expensed utilizing a graded vesting model if achievement of the performance criteria is determined to be probable. The Company accounts for forfeitures as they occur. The Company utilizes newly issued shares to satisfy option exercises and the vesting of RSUs. The Company estimates the fair value of options using the Black-Scholes option pricing model on the grant date. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, the Company has based its expected term for awards issued to employees on the simplified method, which represents the average period from vesting to the expiration of the stock option. In addition, the Company does not have sufficient trading history for the Company’s common stock, and therefore, the expected stock price volatility for the Company’s common stock was estimated by taking the average historical price volatility for industry peers. The Company has never declared or paid any cash dividends to common stockholders and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The risk-free interest rate was based on the yields of treasury securities with maturities similar to the expected term of the options for each option group. |
Recently issued and recently adopted accounting standards | 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 this ASU 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 became effective for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021 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. |
Cash, cash equivalents, and r_2
Cash, cash equivalents, and restricted cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets t hat sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 154,924 $ 192,556 Restricted cash 878 878 Total cash, cash equivalents, and restricted cash $ 155,802 $ 193,434 |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets t hat sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 154,924 $ 192,556 Restricted cash 878 878 Total cash, cash equivalents, and restricted cash $ 155,802 $ 193,434 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended 2021 2020 2021 2020 Research and development expenses $ 1,423 $ 571 $ 3,850 $ 1,200 General and administrative expenses 1,787 1,117 4,698 2,193 Total stock-based compensation expense $ 3,210 $ 1,688 $ 8,548 $ 3,393 |
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 Nine Months Ended 2021 2020 2021 2020 Expected volatility 89.17 % 94.84 % 89.18 % 93.86 % Expected dividends 0 % 0 % 0 % 0 % Expected terms (years) 6.07 6.07 6.03 6.02 Risk free rate 0.83 % 0.34 % 0.89 % 0.42 % |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2021 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2020 6,846,289 $ 6.42 8.71 $ 53,127 Options granted 3,019,749 $ 8.85 Options exercised (124,366) $ 3.28 Options cancelled/forfeited (122,534) $ 11.14 Outstanding at September 30, 2021 9,619,138 $ 7.16 8.53 $ 18,377 Exercisable as of September 30, 2021 3,134,157 $ 5.90 7.58 $ 9,339 |
Summary of RSU Activity | A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2021 is as follows: Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 186,500 $ 8.19 Restricted stock units granted 70,000 $ 12.94 Restricted stock units vested (84,500) $ 7.20 Restricted stock units forfeited (1,500) $ 12.00 Non-vested at September 30, 2021 170,500 $ 10.59 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Nine Months Ended 2021 2020 2021 2020 Outstanding stock options 9,619,138 6,767,930 9,619,138 6,767,930 Restricted stock units 170,500 186,500 170,500 186,500 Shares issuable under 2020 ESPP 24,965 18,011 24,965 18,011 9,814,603 6,972,441 9,814,603 6,972,441 |
Summary of significant accoun_3
Summary of significant accounting policies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||||
Warrants, notice period for nominal cash consideration | 61 days | ||||
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% | |
Prefunded Warrants | |||||
Lessee, Lease, Description [Line Items] | |||||
Outstanding pre-funded warrants (in shares) | 12,663,010 | 12,663,010 | 12,663,010 | 12,663,010 | |
Warrants, notice period for nominal cash consideration | 61 days | 61 days | |||
Money market funds | |||||
Lessee, Lease, Description [Line Items] | |||||
Money market funds | $ 152.4 | $ 152.4 | $ 108.3 | ||
Maximum | Office space | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 12 months | 12 months |
Cash, cash equivalents, and r_3
Cash, cash equivalents, and restricted cash - Additional Information (Details) $ in Millions | Sep. 30, 2021USD ($) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash deposit | $ 0.9 |
Cash, cash equivalents, and r_4
Cash, cash equivalents, and restricted cash - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 154,924 | $ 192,556 | ||
Restricted cash | 878 | 878 | ||
Total cash, cash equivalents, and restricted cash | $ 155,802 | $ 193,434 | $ 202,028 | $ 143,093 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Jun. 30, 2020USD ($)ft² | Sep. 30, 2021USD ($)ft²option | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | ||||
Tenant improvements (up to) | $ 9,500 | |||
Increase in right-of-use asset | 0 | $ 169 | ||
Increase in lease liability | (427) | 313 | ||
Termination fee for lease termination | $ 500 | |||
Loss on termination of lease | 300 | |||
Loss on disposal of property and equipment | 0 | $ 180 | ||
Operating lease right-of-use assets | 11,008 | $ 10,154 | ||
Finance lease right-of-use assets | $ 200 | $ 300 | ||
Washington | Office space, principal executive offices and laboratory | ||||
Lessee, Lease, Description [Line Items] | ||||
Square feet of office space leased | ft² | 33,300 | |||
Number of option to extend leases | option | 2 | |||
Lease agreement extended period | 5 years | |||
Washington | Office Space, additional offices and laboratory | ||||
Lessee, Lease, Description [Line Items] | ||||
Square feet of office space leased | ft² | 6,272 | |||
Lease agreement extended period | 28 months | |||
Increase in right-of-use asset | $ 1,600 | |||
Increase in lease liability | $ 1,600 | |||
Canada | ||||
Lessee, Lease, Description [Line Items] | ||||
Square feet of office space leased | ft² | 10,946 |
Equity - Additional Information
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 07, 2020USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)shares | Sep. 30, 2021USD ($)offering$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.000001 | $ 0.000001 | $ 0.000001 | |||
Common stock, shares issued (in shares) | 42,428,134 | 42,428,134 | 42,196,296 | |||
Common stock, shares outstanding (in shares) | 42,428,134 | 42,428,134 | 42,196,296 | |||
Warrants, notice period for nominal cash consideration | 61 days | |||||
Percentage of outstanding stock per stockholder, maximum | 9.99% | |||||
Underwriting discounts, commissions, and offering costs for issuance of common stock and pre-funded warrants | $ | $ 4,900 | |||||
Proceeds from issuance of common stock and pre-funded warrants, net of costs | $ | $ 71,300 | $ 0 | $ 71,675 | |||
Unrecognized stock-based compensation cost | $ | $ 35,900 | $ 35,900 | ||||
Unrecognized stock-based compensation cost, weighted-average period recognized | 2 years 11 months 19 days | |||||
Shares issued upon exercises of stock options (in shares) | 124,366 | 581,270 | ||||
Aggregate intrinsic value of options exercised | $ | $ 1,300 | $ 2,800 | ||||
Weighted average grant date fair value for options granted in period (in dollars per share) | $ / shares | $ 6.49 | $ 8.69 | ||||
Number of common stock shares issued upon vesting of restricted stock unit (in shares) | 1 | 1 | ||||
Stock-based compensation expense | $ | $ 3,210 | $ 1,688 | $ 8,548 | $ 3,393 | ||
2020 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock shares reserved for issuance under employee stock purchase plan (in shares) | 759,936 | 759,936 | ||||
Issuance of shares under Employee Stock Purchase Plan (in shares) | 22,972 | |||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 9.53 | $ 9.53 | ||||
Proceeds from ESPP | $ | $ 200 | |||||
Accrued employee benefits | $ | $ 200 | $ 200 | ||||
Performance-based RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted (in shares) | 50,000 | |||||
Performance-based RSUs | Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units vested (in shares) | 25,000 | |||||
Stock-based compensation expense | $ | $ 300 | |||||
Performance-based RSUs | Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units not expected to vest (in shares) | 25,000 | 25,000 | ||||
Unrecognized stock-based compensation, excluding options | $ | $ 300 | $ 300 | ||||
Shares issuable under 2020 ESPP | 2020 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
ESPP max contribution rate | 15.00% | 15.00% | ||||
ESPP, purchase price of common stock, percent of market price | 85.00% | |||||
ESPP number of offerings per year | offering | 2 | |||||
ESPP offering period | 6 months | |||||
Prefunded Warrants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of pre-funded warrants (in dollars per share) | $ / shares | $ 0.000001 | |||||
Number of common stock in prefunded warrants (in shares) | 1,737,529 | |||||
Pre funded warrant issued (in dollars per share) | $ / shares | $ 15.249999 | |||||
Public Stock Offering | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Sale of shares under public offering (in shares) | 3,262,471 | |||||
Sale of shares under public offering (in dollars per share) | $ / shares | $ 15.25 | |||||
Prefunded Warrants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding pre-funded warrants (in shares) | 12,663,010 | 12,663,010 | 12,663,010 | 12,663,010 | ||
Warrants, notice period for nominal cash consideration | 61 days | 61 days | ||||
Exercise price of pre-funded warrants (in dollars per share) | $ / shares | $ 0.000001 | $ 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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 3,210 | $ 1,688 | $ 8,548 | $ 3,393 |
Research and development expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 1,423 | 571 | 3,850 | 1,200 |
General and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 1,787 | $ 1,117 | $ 4,698 | $ 2,193 |
Equity - Schedule of Weighted A
Equity - Schedule of Weighted Average Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||||
Expected volatility | 89.17% | 94.84% | 89.18% | 93.86% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Expected terms (years) | 6 years 25 days | 6 years 25 days | 6 years 10 days | 6 years 7 days |
Risk free rate | 0.83% | 0.34% | 0.89% | 0.42% |
Equity - Schedule of Stock Opti
Equity - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 6,846,289 | ||
Options granted (in shares) | 3,019,749 | ||
Options exercised (in shares) | (124,366) | (581,270) | |
Options cancelled/ forfeited (in shares) | (122,534) | ||
Outstanding, ending balance (in shares) | 9,619,138 | 6,846,289 | |
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 6.42 | ||
Options granted (in dollars per share) | 8.85 | ||
Options exercised (in dollars per share) | 3.28 | ||
Options cancelled/forfeited (in dollars per share) | 11.14 | ||
Outstanding, ending balance (in dollars per share) | $ 7.16 | $ 6.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Outstanding, Weighted Average Remaining Contractual Life (in Years) | 8 years 6 months 10 days | 8 years 8 months 15 days | |
Outstanding, Aggregate Intrinsic Value (in Thousands) | $ 18,377 | $ 53,127 | |
Exercisable, Number of Shares (in shares) | 3,134,157 | ||
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.90 | ||
Exercisable, Weighted Average Remaining Contractual Life (in Years) | 7 years 6 months 29 days | ||
Exercisable, Aggregate Intrinsic Value (in Thousands) | $ 9,339 |
Equity - Summary of Nonvested R
Equity - Summary of Nonvested Restricted Stock Unit Activity (Details) - Restricted stock units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares | |
Non-vested, beginning balance (in shares) | shares | 186,500 |
Restricted stock units granted (in shares) | shares | 70,000 |
Restricted stock units vested (in shares) | shares | (84,500) |
Restricted stock units forfeited (in shares) | shares | (1,500) |
Non-vested, ending balance (in shares) | shares | 170,500 |
Weighted Average Grant Date Fair Value | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 8.19 |
Restricted stock units granted (in dollars per share) | $ / shares | 12.94 |
Restricted stock units vested (in dollars per share) | $ / shares | 7.20 |
Restricted stock units forfeited (in dollars per share) | $ / shares | 12 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 10.59 |
Earnings (loss) per share - Sch
Earnings (loss) per share - Schedule of Potentially Dilutive Shares From Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 9,814,603 | 6,972,441 | 9,814,603 | 6,972,441 |
Outstanding stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 9,619,138 | 6,767,930 | 9,619,138 | 6,767,930 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 170,500 | 186,500 | 170,500 | 186,500 |
Shares issuable under 2020 ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 24,965 | 18,011 | 24,965 | 18,011 |
Sale of Aquinox Canada (Details
Sale of Aquinox Canada (Details) - USD ($) $ in Thousands | Jul. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsidiary, Sale of Stock [Line Items] | |||||
Gain on sale of asset | $ 0 | $ 7,826 | $ 0 | $ 7,826 | |
Acqinox Canada | |||||
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 |