Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Registrant Name | ATRECA, INC. | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001532346 | |
Amendment Flag | false | |
Entity Ex Transition Period | false | |
Class A common stock | ||
Entity Common Stock, Shares Outstanding | 22,013,578 | |
Class B common stock | ||
Entity Common Stock, Shares Outstanding | 5,934,191 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 154,959 | $ 114,504 |
Investments | 64,703 | |
Prepaid expenses and other current assets | 2,589 | 2,721 |
Total current assets | 222,251 | 117,225 |
Property and equipment, net | 4,155 | 4,143 |
Deposits and other | 974 | 316 |
Total assets | 227,380 | 121,684 |
Current Liabilities | ||
Accounts payable | 3,942 | 1,307 |
Accrued expenses | 4,299 | 3,008 |
Other current liabilities | 158 | 247 |
Capital lease obligations, current portion | 45 | |
Total current liabilities | 8,399 | 4,562 |
Capital lease obligations, net of current portion | 77 | 100 |
Deferred rent | 22 | 6 |
Preferred stock warrant liability | 380 | |
Total liabilities | 8,498 | 5,048 |
Stockholders’ equity (deficit) | ||
Additional paid-in capital | 346,915 | 3,593 |
Accumulated other comprehensive loss | 86 | (4) |
Accumulated deficit | (128,122) | (96,622) |
Total stockholders’ equity (deficit) | 218,882 | (93,033) |
Total liabilities and stockholders’ equity (deficit) | 227,380 | 121,684 |
Series A convertible preferred stock | ||
Current Liabilities | ||
Convertible preferred stock | 55,030 | |
Series B convertible preferred stock | ||
Current Liabilities | ||
Convertible preferred stock | 34,333 | |
Series C1 convertible preferred stock | ||
Current Liabilities | ||
Convertible preferred stock | 65,691 | |
Series C2 convertible preferred stock | ||
Current Liabilities | ||
Convertible preferred stock | $ 54,615 | |
Class A common stock | ||
Stockholders’ equity (deficit) | ||
Common stock | 2 | |
Class B common stock | ||
Stockholders’ equity (deficit) | ||
Common stock | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Series A convertible preferred stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 100,000,000 | 32,133,287 |
Convertible preferred stock, shares issued | 0 | 5,305,513 |
Convertible preferred stock, shares outstanding | 0 | 5,305,513 |
Convertible preferred stock, aggregate liquidation preference | $ 58,892 | $ 58,892 |
Series B convertible preferred stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 100,000,000 | 18,008,749 |
Convertible preferred stock, shares issued | 0 | 3,001,421 |
Convertible preferred stock, shares outstanding | 0 | 3,001,421 |
Convertible preferred stock, aggregate liquidation preference | $ 35,000 | $ 35,000 |
Series C1 convertible preferred stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 50,000,000 | 54,184,549 |
Convertible preferred stock, shares issued | 0 | 5,007,134 |
Convertible preferred stock, shares outstanding | 0 | 5,007,134 |
Convertible preferred stock, aggregate liquidation preference | $ 70,000 | $ 70,000 |
Series C2 convertible preferred stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 50,000,000 | 23,605,150 |
Convertible preferred stock, shares issued | 0 | 3,934,191 |
Convertible preferred stock, shares outstanding | 0 | 3,934,191 |
Convertible preferred stock, aggregate liquidation preference | $ 55,000 | $ 55,000 |
Class A common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 650,000,000 | 191,398,492 |
Common stock, shares issued | 22,013,010 | 2,119,872 |
Common stock, shares outstanding | 22,013,010 | 2,119,872 |
Class B common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 23,605,150 |
Common stock, shares issued | 5,934,191 | 0 |
Common stock, shares outstanding | 5,934,191 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Expenses | ||||
Research and development | $ 15,922 | $ 7,419 | $ 27,635 | $ 14,062 |
General and administrative | 3,537 | 1,632 | 6,055 | 2,932 |
Total expenses | 19,459 | 9,051 | 33,690 | 16,994 |
Interest and other income (expense) | ||||
Other income | 1,021 | 347 | 1,186 | 560 |
Interest income | 594 | 33 | 1,139 | 90 |
Interest expense | (2) | (2) | (4) | (5) |
Preferred stock warrant liability revaluation | (73) | 7 | (123) | 27 |
Loss on disposal of property and equipment | (2) | (1) | (7) | (1) |
Loss before income tax expense | (17,921) | (8,667) | (31,499) | (16,323) |
Income tax expense | (1) | (1) | (1) | |
Net loss | $ (17,921) | $ (8,668) | $ (31,500) | $ (16,324) |
Net loss per share, basic and diluted | $ (3.67) | $ (4.13) | $ (8.97) | $ (7.79) |
Weighted-average shares used in computing net loss per share, basic and diluted | 4,888,987,000 | 2,097,296,000 | 3,512,606 | 2,095,363 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (17,921) | $ (8,668) | $ (31,500) | $ (16,324) |
Other comprehensive income (loss); | ||||
Unrealized gain (loss) on fair value of investments | 61 | 16 | 89 | 21 |
Unrealized gain on currency translation | 2 | (17) | 1 | (24) |
Comprehensive loss | $ (17,858) | $ (8,669) | $ (31,410) | $ (16,327) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Convertible preferred stock (as converted) | Total |
Balances at beginning at Dec. 31, 2017 | $ 89,362,000 | |||||
Balances at beginning (in shares) at Dec. 31, 2017 | 8,306,934 | |||||
Balances at beginning at Dec. 31, 2017 | $ 2,130,000 | $ (14,000) | $ (58,682,000) | $ (56,566,000) | ||
Balances at beginning (in shares) at Dec. 31, 2017 | 2,092,040 | |||||
Issuance of common stock upon initial public offering, net (in shares) | 18,500 | |||||
Issuance of common stock upon exercise of options | 9,000 | 9,000 | ||||
Stock-based compensation | 490,000 | 490,000 | ||||
Unrealized gain (loss) on fair value of investments | 21,000 | 21,000 | ||||
Unrealized gain on currency translation | (24,000) | (24,000) | ||||
Net loss | (16,324,000) | (16,324,000) | ||||
Balances at end at Jun. 30, 2018 | $ 89,362,000 | |||||
Balances at end (in shares) at Jun. 30, 2018 | 8,306,934 | |||||
Balances at end at Jun. 30, 2018 | 2,629,000 | (17,000) | (75,006,000) | (72,394,000) | ||
Balances at end (in shares) at Jun. 30, 2018 | 2,110,540 | |||||
Balances at beginning at Mar. 31, 2018 | $ 89,362,000 | |||||
Balances at beginning (in shares) at Mar. 31, 2018 | 8,306,934 | |||||
Balances at beginning at Mar. 31, 2018 | 2,243,000 | (16,000) | (66,338,000) | (64,111,000) | ||
Balances at beginning (in shares) at Mar. 31, 2018 | 2,093,473 | |||||
Issuance of common stock upon exercise of options | $ 17,067 | 9,000 | 9,000 | |||
Stock-based compensation | 377,000 | 377,000 | ||||
Unrealized gain (loss) on fair value of investments | 16,000 | 16,000 | ||||
Unrealized gain on currency translation | (17,000) | (17,000) | ||||
Net loss | (8,668,000) | (8,668,000) | ||||
Balances at end at Jun. 30, 2018 | $ 89,362,000 | |||||
Balances at end (in shares) at Jun. 30, 2018 | 8,306,934 | |||||
Balances at end at Jun. 30, 2018 | 2,629,000 | (17,000) | (75,006,000) | (72,394,000) | ||
Balances at end (in shares) at Jun. 30, 2018 | 2,110,540 | |||||
Balances at beginning at Dec. 31, 2018 | $ 209,668,000 | |||||
Balances at beginning (in shares) at Dec. 31, 2018 | 17,248,259 | |||||
Balances at beginning at Dec. 31, 2018 | 3,593,000 | (4,000) | (96,622,000) | (93,033,000) | ||
Balances at beginning (in shares) at Dec. 31, 2018 | 2,119,872 | |||||
Conversion of convertible preferred stock | $ (209,668,000) | 209,669,000 | ||||
Conversion of convertible preferred stock (in shares) | (17,248,259) | |||||
Conversion of convertible preferred stock | $ 2,000 | 209,666,000 | 209,668,000 | |||
Conversion of convertible preferred stock (in shares) | 17,248,259 | |||||
Issuance of common stock upon initial public offering, net | $ 1,000 | 130,785,000 | 130,786,000 | |||
Issuance of common stock upon initial public offering, net (in shares) | 8,452,500 | |||||
Exercise of warrants (in shares) | 62,936 | |||||
Issuance of common stock upon exercise of options | 231,000 | 231,000 | ||||
Issuance of common stock upon exercise of options (in shares) | 63,634 | |||||
Vesting of early exercised stock options | 2,000 | 2,000 | ||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 503,000 | 503,000 | ||||
Stock-based compensation | 2,135,000 | 2,135,000 | ||||
Unrealized gain (loss) on fair value of investments | 89,000 | 89,000 | ||||
Unrealized gain on currency translation | 1,000 | 1,000 | ||||
Net loss | (31,500,000) | (31,500,000) | ||||
Balances at end at Jun. 30, 2019 | $ 3,000 | 346,915,000 | 86,000 | (128,122,000) | 218,882,000 | |
Balances at end (in shares) at Jun. 30, 2019 | 27,947,201 | |||||
Balances at beginning at Mar. 31, 2019 | $ 209,668,000 | |||||
Balances at beginning (in shares) at Mar. 31, 2019 | 17,248,259 | |||||
Balances at beginning at Mar. 31, 2019 | 4,383,000 | 23,000 | (110,201,000) | (105,795,000) | ||
Balances at beginning (in shares) at Mar. 31, 2019 | 2,123,257 | |||||
Conversion of convertible preferred stock | $ (209,668,000) | |||||
Conversion of convertible preferred stock (in shares) | (17,248,259) | |||||
Conversion of convertible preferred stock | $ 2,000 | 209,666,000 | 209,668,000 | |||
Conversion of convertible preferred stock (in shares) | 17,248,259 | |||||
Issuance of common stock upon initial public offering, net | $ 1,000 | 130,785,000 | 130,786,000 | |||
Issuance of common stock upon initial public offering, net (in shares) | 8,452,500 | |||||
Exercise of warrants (in shares) | 62,936 | |||||
Issuance of common stock upon exercise of options | 217,000 | 217,000 | ||||
Issuance of common stock upon exercise of options (in shares) | 60,249 | |||||
Vesting of early exercised stock options | 2,000 | 2,000 | ||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 503,000 | 503,000 | ||||
Stock-based compensation | 1,359,000 | 1,359,000 | ||||
Unrealized gain (loss) on fair value of investments | 61,000 | 61,000 | ||||
Unrealized gain on currency translation | 2,000 | 2,000 | ||||
Net loss | (17,921,000) | (17,921,000) | ||||
Balances at end at Jun. 30, 2019 | $ 3,000 | $ 346,915,000 | $ 86,000 | $ (128,122,000) | $ 218,882,000 | |
Balances at end (in shares) at Jun. 30, 2019 | 27,947,201 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net loss | $ (31,500) | $ (16,324) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 792 | 667 |
Loss on disposal of property and equipment | 7 | 1 |
Stock-based compensation | 2,135 | 490 |
Preferred stock warrant liability revaluation | 123 | (27) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 160 | (400) |
Accounts payable | 1,935 | 43 |
Accrued expenses | (231) | (598) |
Other current liabilities | (136) | |
Deferred rent | (13) | 24 |
Net cash used in operating activities | (26,728) | (16,124) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (810) | (618) |
Purchase of investments | (84,613) | |
Proceeds from maturities of investments | 20,000 | 14,899 |
Change in deposits | 66 | 9 |
Net cash provided by (used in) investing activities | (65,357) | 14,290 |
Cash Flows from Financing Activities | ||
Proceeds from exercise of stock options | 248 | 9 |
Proceeds from the initial public offering, net | 133,618 | |
Principal payments on capital lease obligations | (25) | (23) |
Payments of initial offering costs | (577) | |
Net cash provided by (used in) financing activities | 133,264 | (14) |
Net change in cash, cash equivalents and restricted stock | 41,179 | (1,848) |
Cash, cash equivalents and restricted cash, beginning of period | 114,504 | 8,242 |
Cash, cash equivalents and restricted cash, end of period | 155,683 | 6,394 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest | 3 | $ 4 |
Cash paid for income taxes | 1 | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Costs related to initial public offering included in accounts payable and accrued liabilities | 2,271 | |
Conversion of redeemable convertible preferred stock to common stock | 209,669 | |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | (503) | |
Vesting of early exercised common stock options | $ 2 |
Business
Business | 6 Months Ended |
Jun. 30, 2019 | |
Business | |
Business | 1. Business Nature of Business Atreca, Inc. (“the Company”) was incorporated in the State of Delaware on June 11, 2010 (“inception date”), and is located in Redwood City, California. In April 2016, the Company formed a wholly owned subsidiary, Atreca Pte. Ltd., in Singapore. The Company is a biopharmaceutical company utilizing its differentiated platform to discover and develop novel antibody-based immunotherapeutics to treat a range of solid tumor types. The Company's lead product candidate, ATRC-101, is a monoclonal antibody in preclinical development with a novel mechanism of action and target derived from an antibody identified using its discovery platform. The Company operates in a single segment. Since inception, the Company has been primarily engaged in research and development, raising capital, building its management team and building its intellectual property portfolio. Reverse Stock Split On June 7, 2019, the Company effected a 1-for-6 reverse stock split of all classes of its capital stock. Upon the effectiveness of the reverse stock split, (i) every one share of the Company’s outstanding capital stock was combined into one-sixth of one share of the same class and series of capital stock, (ii) the number of shares of its Class A common stock and its Series A preferred stock for which each outstanding option or warrant, to purchase its Class A common stock and its Series A preferred stock is exercisable was proportionally decreased on a 1-for-6 basis and (iii) the exercise price of each outstanding option or warrant to purchase its Class A common stock and its Series A preferred stock was proportionately increased on a 1-for-6 basis. The par value per share of its common stock and preferred stock were not adjusted as a result of the reverse stock split. Initial Public Offering In June 2019, the Company closed its initial public offering (“IPO”) of 6,452,500 shares of its Class A common stock and 2,000,000 shares of its Class B common stock at an offering price of $17.00 per share, including 1,102,500 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s Class A common stock. The Company received net proceeds of $130.8 million, after deducting underwriting discounts and commissions of $10.1 million and offering expenses of $2.8 million. Immediately prior to the closing of the IPO, all outstanding shares of the Company’s convertible Series A preferred stock, convertible Series B preferred stock and convertible Series C1 preferred stock automatically converted into 13,314,068 shares of the Company’s Class A common stock and all outstanding shares of the Company’s convertible Series C2 preferred stock automatically converted into 3,934,191 shares of the Company’s Class B common stock. Immediately prior to the closing of the IPO, the Company issued 62,936 shares of Class A common stock upon the exercise of an outstanding warrant. The Company reclassified $209.7 million from temporary equity to Class A common stock, Class B common stock, and additional paid-in-capital on its consolidated balance sheet. Deferred Offering Cost Deferred offering cost of $2.8 million, consisting of legal, accounting and other fees and costs related to the IPO, were reclassified to additional paid-in capital as a reduction of the proceeds upon the closing of the IPO in June 2019. During the six months ended June 30, 2019, $0.6 million of the deferred offering costs were paid. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s final prospectus for its IPO dated as of June 19, 2019 and filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on June 20, 2019. Prior period reclassification An immaterial reclassification of prior period amounts has been made to conform to the current period presentation. Principles of Consolidation The condensed consolidated financial statements include accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions are eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of income and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates in the consolidated financial statements include estimated useful lives of property and equipment, impairment of long-lived assets, accrued expenses, valuation of deferred income tax assets, fair value of warrants issued to purchasers of shares of preferred stock and common stock and fair value of options granted under the Company's stock option plan. Unaudited Interim Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements are unaudited. The unaudited interim condensed financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair statement of the Company’s financial position as of June 30, 2019 and its results of operations and cash flows for the six months ended June 30, 2018 and 2019. The financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three-month and six-month periods are also unaudited. The condensed results of operations for the three months ended and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any other future annual or interim period. The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited consolidated financial statements as of that date. Other Income Other income is comprised of amounts earned from services performed under service agreements. Beginning January 1, 2018, the Company follows the provisions of Accounting Standards Update 2014-09 Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). The guidance provides a unified model to determine how income is recognized. In determining the appropriate amount of other income to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identifies the promised goods or services in the contract; (ii) determines whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measures the transaction price, including the constraint on variable consideration; (iv) allocates the transaction price to the performance obligations based on estimated selling prices; and (v) recognizes other income when (or as) the Company satisfies each performance obligation. Upon adoption of Topic 606, there was no change to the units of accounting previously identified with respect to existing service agreements under legacy Generally Accepted Accounting Principles (“GAAP”), which are now considered performance obligations under Topic 606, and there was no change to the revenue recognition pattern for the performance obligations. Accordingly, the adoption of the new standard resulted in no cumulative effect change to the Company's opening accumulated deficit balance. The Company generally allocates the transaction price to distinct performance obligations at their stand-alone selling prices, determined by their estimated costs plus some margin. Performance obligations are generally delivered over time and recognized based upon observable inputs as the related research services are performed, which are recorded as research and development expenses. Amounts due under service agreements are generally billed monthly as services are delivered and do not generally result in contract liabilities or assets. Receivables under service agreements of $440,000 and $282,000 are included in prepaid expenses and other current assets as of June 30, 2019 and December 31, 2018, respectively. Contract liabilities of $64,000 and $200,000 are included in other current liabilities as of June 30, 2019 and December 31, 2018, respectively. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all cash balances and highly liquid investments purchased with an original maturity of three months or less. The Company maintained restricted cash of $724,000 and $0 as of June 30, 2019 and December 31, 2018, respectively. This amount as of June 30, 2019 is included in deposits and other in the accompanying condensed consolidated balance sheets and is comprised solely of a letter of credit required pursuant to a lease for Company facilities. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows. June 30, December 31, 2019 2018 Cash and cash equivalents $ 154,959 $ 114,504 Restricted cash 724 — Cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 155,683 $ 114,504 Investments The Company considers securities purchased with original maturities greater than three months to be investments. The Company’s policy is to protect the value of its investment portfolio and minimize principal risk by earning returns based on current interest rates. The Company’s intent is to convert all investments into cash to be used for operations and has classified them as available for sale. For purposes of determining realized gains and losses, the cost of securities sold is based on specific identification. Interest and dividends on securities classified as available-for-sale are included in interest income. Convertible Preferred Stock Warrants The Company issued convertible preferred stock warrants, which were exercisable into series A preferred stock with liquidation preference. The conversion feature was evaluated under ASC Topic 480 Distinguishing liabilities from equity and the warrants were determined to be debt instruments and classified prior to the IPO as liabilities on the consolidated balance sheets. The Company recorded these warrant liabilities at fair value and adjusted the carrying value to their estimated fair value at each reporting date with the increases or decreases in the fair value recorded as a gain (loss) on revaluation of the warrant liability in the consolidated statements of operations. Upon the IPO, t he 49,997 preferred stock warrants were converted to common stock warrants of Class A shares and the warrant liability of $0.5 million was reclassified to additional paid-in capital as a result of the conversion. The warrants were not subject to further remeasurement for fair value. Risks and Uncertainties The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from similar services and larger companies, volatility of the industry, ability to obtain regulatory clearance, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company and general economic conditions. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents, investments and other receivables. Cash and cash equivalents are held at one financial institution and were in excess of the Federal Deposit Insurance Corporation insurable limit at June 30, 2019 and December 31, 2018. Additionally, cash and cash equivalents and investments are maintained at a brokerage firm for which amounts are insured by the Securities Investor Protection Corporation subject to legal limits. The Company has not experienced any losses on its deposits to date. The Company does not require collateral or other security for other receivables; however, credit risk is mitigated by the Company’s ongoing evaluations of its debtors’ credit worthiness. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist primarily of salaries and benefits, consultant fees, stock-based compensation, certain facility costs, legal costs and other costs associated with preclinical development. A substantial portion of the Company’s ongoing research and development activities are conducted by third-party service providers in connection with preclinical development activities and contract manufacturing organizations in connection with the production of materials for clinical trials. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the research or development objectives. Such estimates are subject to change as additional information becomes available. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs. Stock‑Based Compensation The Company generally grants stock options to its employees for a fixed number of shares with an exercise price equal to the fair value of the underlying shares at the date of grant. The Company accounts for stock option grants using the fair value method. The fair value of options is calculated using the Black‑Scholes option pricing model. Stock‑based compensation is recognized as the underlying options vest using the straight‑line attribution approach, and forfeitures are recorded as they occur. Emerging Growth Company Status The Company is an “emerging growth company,” (“EGC”) as defined in the Jumpstart Our Business Startups Act, (“JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs. The Company may take advantage of these exemptions until it is no longer an EGC under Section 107 of the JOBS Act, which provides that an EGC can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards, and as a result of this election, the Company’s condensed consolidated financial statements may not be comparable to companies that comply with public company Financial Accounting Standards Board (“FASB”) standards’ effective dates. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of the IPO or such earlier time that the Company is no longer an EGC. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02 and subsequent amendments to the initial guidance under ASU 2017-13, ASU 2018-10 and ASU 2018-11 (collectively, “Topic 842” ), which modifies the accounting by lessees for all leases with a term greater than 12 months. This standard will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Topic 842 is effective for the Company as of January 1, 2020. Early adoption is permitted. The Company’s most significant lease is its operating lease for its corporate headquarters, and, while the Company has not yet estimated the amounts by which its financial statements will be affected by the adoption of this guidance, it expects that the overall recognition of expense will be similar to current guidance, but that there will be a significant change in the balance sheet due to the recognition of right of use assets and the corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses ( “Topic 326” ): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05, which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables. The amendment replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. For available-for-sale debt securities, credit losses should be recorded through an allowance for credit losses. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ( “Topic 230” ). The standard clarifies how certain cash receipts and cash payments will be presented and classified in the statement of cash flows. Topic 230 is effective for the Company as of January 1, 2019. The adoption of this update had no material effect on the Company’s consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows: June 30, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds 150,477 — — 150,477 U.S. Treasury securities 64,703 — — 64,703 Total $ 215,180 $ — $ — $ 215,180 December 31, 2018 Level 1 Level 2 Level 3 Total Assets Money market funds $ 109,630 $ — $ — $ 109,630 Total $ 109,630 $ — $ — $ 109,630 Liabilities Warrant liability $ — $ — $ $ Total $ — $ — $ $ The Company utilized the market approach and Level 1 valuation inputs to value its money market funds and U.S. government treasury securities because published net asset values were readily available. As of June 30, 2019 and December 31, 2018, gross unrealized gains and unrealized losses for cash equivalents and short-term investments were not material, and the contractual maturity of all marketable securities was less than one year. The fair value of the warrants was calculated using the Black-Scholes option pricing model and was revalued to fair value at the end of each reporting period until the warrants were converted to common stock warrants effective with the closing of the IPO on June 24, 2019. The liability was valued using the following assumptions: December 31, 2018 Exercise price (1) $ 14.46 Stock price (2) $ 13.20 Time to maturity (in years) 3.64 Volatility (3) 83.7 % Risk-free interest rate (4) 2.50 % Expected dividend $ — (1) Based upon terms provided in the warrant agreement. (2) Based upon an independently prepared valuation as of December 31, 2018, adjusted for the one-for-six reverse stock split . (3) Based upon the historical daily volatility of a group of peer public company closing prices. (4) Based upon interest rate for U.S. Treasury Bonds, as published by the U.S. Federal Reserve. The preferred stock warrants were previously valued at Level 3 as there were no observable inputs supported by market activity. The Company estimated the fair value of the preferred stock warrants using the Black-Scholes model which considers various potential liquidity outcomes and assigned probabilities to each to arrive at the weighted equity value. Upon the IPO, t he 49,997 preferred stock warrants were revalued and converted to common stock warrants of Class A shares and the warrant liability of $0.5 million was reclassified to additional paid-in capital as a result of the conversion. Revaluation upon IPO was performed using the following assumptions: expected life of 3.17 years; fair value of Series A of $17.00 per share; risk-free interest rate of 1.69%; volatility of 83.61% and no expected dividends. For further information regarding convertible preferred stock warrants, refer to Note 9, Capital Stock . |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 6 Months Ended |
Jun. 30, 2019 | |
Cash, Cash Equivalents and Investments | |
Cash, Cash Equivalents and Investments | 4 . Cash, Cash Equivalents and Investments The fair value and the amortized cost of cash, cash equivalents and available-for-sale investments by major security type consist of the following (in thousands): As of June 30, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash and money market funds $ 154,959 $ — $ — $ 154,959 U.S. Treasury securities 64,613 90 — 64,703 Total 219,572 90 — 219,662 Less amounts classified as cash and cash equivalents (154,959) — — (154,959) Total available-for-sale investments $ 64,613 $ 90 $ — $ 64,703 As of December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash and money market funds $ 114,504 $ — $ — $ 114,504 Total 114,504 — — 114,504 Less amounts classified as cash and cash equivalents (114,504) — — (114,504) Total available-for-sale investments $ — $ — $ — $ — |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2019 | |
Prepaid Expenses and Other Current Assets | |
Prepaid Expenses and Other Current Assets | 5 . Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, 2019 2018 Vendor prepayments and deposits $ 1,238 $ 2,045 Prepaid rent 626 394 Non-trade receivables 519 282 Interest receivables and other current assets 206 — Total prepaid expenses and other current assets $ 2,589 $ 2,721 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2019 | |
Property and Equipment, net | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment consists of the following (in thousands): June 30, December 31, 2019 2018 Laboratory equipment $ 8,304 $ 7,561 Furniture and fixtures 389 386 Computer hardware and software 559 580 Leasehold improvements 236 236 9,488 8,763 Less accumulated depreciation and amortization (5,333) (4,620) Total property and equipment, net $ 4,155 $ 4,143 Depreciation expense was $792,000 and $667,000 for the six months ended June 30, 2019 and 2018, respectively. The net book value of property and equipment under capital leases was $117,000 and $142,000 at June 30, 2019 and December 31, 2018, respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Expenses | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): June 30, December 31, 2019 2018 Compensation and related benefits $ 1,741 $ 2,568 Professional fees 1,173 183 Contract research fees 707 43 Other 678 214 Total accrued expenses $ 4,299 $ 3,008 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company leases its office facilities under non-cancellable operating lease agreements that expire at various dates through April 2022. Under the terms of the leases, the Company is responsible for certain insurance, property taxes and maintenance expenses. The office facilities lease agreements contain scheduled increases over the lease term. The related rent expense is calculated on a straight-line basis with the difference recorded as deferred rent. Rent expense was $1,260,000 and $625,000 for the six months ended June 30, 2019 and 2018, respectively. The Company leases certain property and equipment under capital leases. In 2017, the Company financed purchases of $226,000 under a capital lease agreement. Outstanding amounts under the capital lease agreements are generally secured by liens on the related property and equipment. Future minimum lease payments under non-cancelable operating and capital lease agreements consisted of the following at June 30, 2019 (in thousands): Capital Operating Leases Leases Years ending December 31: 2019 (remaining 6 months) $ 25 $ 1,752 2020 51 2,436 2021 51 2,310 2022 4 504 Total minimum lease payments 131 $ 7,002 Less: amount representing interest (9) Present value of capital lease obligation 122 Less: current portion (45) Non-current portion $ 77 Litigation The Company is not aware of any asserted or unasserted claims against it where it believes that an unfavorable resolution would have an adverse material impact on the operations or financial position of the Company. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2019 | |
Capital Stock | |
Capital Stock | 9. Capital Stock Class A and Class B Common Stock On June 2, 2019 the board of directors of the Company authorized the issuance of 650,000,000 shares of Class A common stock, $0.0001 par value per share, 50,000,000 shares of Class B common stock, $0.0001 par value per share and 300,000,000 shares of preferred stock, $0.0001 par value per share, upon the filing of the Company’s Amended and Restated Certificate of Incorporation in connection with the reverse stock split. Each holder of Class A common stock will be entitled to one vote and each holder of Class B common stock is not entitled to vote except as may be required by law and shall not be entitled to vote on the election of directors at any time. Convertible Preferred Stock Warrant Upon the IPO, t he 49,997 preferred stock warrants were revalued and converted to common stock warrants of Class A common stock shares and the warrant liability of $0.5 million was reclassified to additional paid-in capital as a result of the conversion. The warrants were not subject to further remeasurement for fair value. The balances of the preferred stock warrant liabilities were zero and $0.4 million, respectively, as of June 30, 2019 and December 31, 2018. Common Stock Warrant In connection with the issuance of Series A in August 2015, the Company issued a warrant to purchase an aggregate of 62,936 shares of common stock at $0.0001 per share. The warrant was immediately exercisable and expires, if not exercised, in August 2025. At issuance, the fair value of the warrant was determined to be $41,509, which was recorded as a Series A preferred stock issuance cost and additional paid-in capital. The warrant was exercised in full during the three months ended June 30, 2019 and the Company issued 62,936 shares of Class A common stock upon such exercise. |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2019 | |
Stock Option Plan | |
Stock Option Plan | 10. Equity Incentive Plans 2019 Equity Incentive Plan The Company’s board of directors adopted and our stockholders approved our 2019 Equity Incentive Plan, (the “2019 Plan”), on June 2, 2019, and June 7, 2019, respectively. The 2019 Plan became effective on June 19, 2019, and no further grants will be made under the Company’s 2010 Equity Incentive Plan. The purpose of the 2019 Plan, through the grant of stock awards including stock options and other stock-based awards, including restricted stock units (“RSUs”) , is to help us secure and retain the services of eligible award recipients, provide incentives for such persons to exert maximum efforts for our success and that of our affiliates, and provide a means by which the eligible recipients may benefit from increases in the value of our Class A common stock. Under the 2019 Plan, 6,141,842 shares of the Company’s Class A common stock have been reserved for issuance to employees, directors and consultants. Additionally, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on January 1 of each year, beginning on January 1, 2020 and continuing through and including January 1, 2029, by 4% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by our board of directors. Stock option activity under the Plan is as follow: Options Outstanding Weighted- Average Aggregate Weighted- Remaining Intrinsic Number Average Contractual Value of Shares Exercise Price Life (years) (in thousands) Balances, December 31, 2018 2,136,291 $ 6.06 $ 12,881 Granted 1,526,838 13.48 Exercised (63,633) 3.90 Cancelled (18,755) 10.56 Balances, June 30, 2019 3,580,741 $ 9.22 $ 34,447 Vested and expected to vest at June 30, 2019 3,580,741 $ 9.22 $ 34,447 Exerciseable at June 30, 2019 1,647,094 $ 5.26 $ 22,368 Vested at June 30, 2019 817,423 $ 5.45 $ 10,945 The weighted‑average grant date fair value of options granted to employees and non‑employees in the six months ended June 30, 2019 and 2018 was $10.37 and $3.57, respectively. The fair value of each option is estimated on the date of grant using the Black‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Expected life (in years) 6.02 6.02 6.02 6.01 Volatility 80.8 % 78.3 % 80.8 % % Risk-free interest rate 2.12 % 2.84 % 2.22 % % Expected volatility is based on volatilities of public companies operating in the Company’s industry. The expected life of the options is estimated using the simplified method detailed in SEC Staff Accounting Bulletin No. 107. The simplified method calculates the expected term as the mid-point between the weighted-average time to vesting and the contractual maturity. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The Company recognized $1,359,000 and $377,000 of stock‑based compensation expense related to options granted to employees and non‑employees for the three months ended June 30, 2019 and 2018, respectively. The Company recognized $2,135,000 and $490,000 of stock‑based compensation expense related to options granted to employees and non‑employees for the six months ended June 30, 2019 and 2018, respectively. The compensation expense is allocated on a departmental basis, based on the classification of the option holder as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Research and development $ 754 $ 133 $ 1,171 $ 210 General and administrative 605 244 964 280 $ 1,359 $ 377 $ 2,135 $ 490 No income tax benefits have been recognized in the statements of operations for stock‑based compensation arrangements and no stock‑based compensation costs have been capitalized as property and equipment as of June 30, 2019 (in thousands, except share and per share data). Unrecognized estimated compensation expense as of June 30, 2019 totaled $21.3 million related to non‑vested stock options with a remaining requisite service period of 3.5 years. 2019 Employee Stock Purchase Plan The Company’s board of directors adopted the 2019 Employee Stock Purchase Plan, (“ESPP”), on June 2, 2019, and the Company’s stockholders approved the ESPP on June 7, 2019. The ESPP became effective on June 19, 2019. The Company’s board of directors authorized 283,333 shares of Class A common stock to be reserved for future issuance under the ESPP. The number of shares of our Class A common stock reserved for issuance will automatically increase on January 1 of each calendar year, from January 1, 2020 through January 1, 2029, by the lesser of (1) 1% of the total number of shares of our Class A common stock outstanding on December 31 of the preceding calendar year, and (2) 416,666 shares; provided, that prior to the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). During the three months and six months ended June 30, 2019, the expense related to the 2019 ESPP was immaterial due to the short period since the effective of the plan. |
401(k) Plan
401(k) Plan | 6 Months Ended |
Jun. 30, 2019 | |
Net Loss Per Share | |
401 (k) Plan | 11. 401(k) Plan The Company has a 401(k) plan that qualifies as a deferred compensation arrangement under Section 401 of the Code. Eligible employees may elect to defer a portion of their pretax earnings subject to certain statutory limits. The Company has not made any matching contributions to date. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Net Loss Per Share | |
Earnings Per Share [Text Block] | 12. Net Loss Per Share The following outstanding potentially dilutive common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Convertible preferred stock (as converted) — 8,306,934 — 8,306,934 Common stock options 3,580,741 1,645,109 3,580,741 1,645,109 Common stock warrants 49,997 62,936 49,997 62,936 Convertible preferred stock warrants — 49,997 — 49,997 Early exercised stock options 3,655 — 3,655 — 3,634,393 10,064,976 3,634,393 10,064,976 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions | |
Related Party Transactions | 13. The Company recorded other income of $319,000 and $347,000 for the three months ended June 30, 2019 and 2018, respectively, and $484,000 and $495,000 for the six months ended June 30, 2019 and 2018, respectively, under service contracts with a stockholder. The Company had a receivable from the stockholder at June 30, 2019 and December 31, 2018 of $99,000 and $89,000, respectively. The Company recorded expense of $351,000 and $325,000 during the three months ended June 30, 2019 and 2018, respectively, and $732,000 and $613,000 during the six months ended June 30, 2019 and 2018, respectively, related to intellectual property and other legal services performed by a related party. The Company owed $410,000 and $134,000 to the related party at June 30, 2019 and December 31, 2018, respectively. The Company recorded expense of $1.6 million and $102,000 during the three months ended June 30, 2019 and 2018, respectively, and $2.0 million and $212,000 during the six months ended June 30, 2019 and 2018, respectively, related to legal services performed by a related party. The Company owed $1.6 million and $40,000 to the related party at June 30, 2019 and December 31, 2018, respectively. The Company recorded research and development expense of $106,000 and $100,000 during three months ended June 30, 2019 and 2018, respectively, and $213,000 and $200,000 during six months ended June 30, 2019 and 2018, respectively, under consulting agreements with two members of the Company’s board of directors . The Company owed $106,000 and zero to the members of the Company at June 30, 2019 and December 31, 2018, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | |
Subsequent Events | 14. Subsequent Events The Company has evaluated subsequent events that may require adjustments to or disclosure in the unaudited interim condensed consolidated financial statements through August 13, 2019, the date on which the unaudited interim condensed consolidated financial statements were available to be issued. In July 2019 the Company entered into a lease agreement, or the San Carlos Lease, for the lease of approximately 99,557 rentable square feet of office space located in San Carlos, California that is intended to serve as the Company’s permanent headquarters, office and laboratory space following the completion of construction and certain tenant improvements. The term of the San Carlos Lease will commence on the date that the landlord delivers the premises to the Company for construction of certain tenant improvements, which is estimated to be August 2020, and will end on the date that is 144 months from the first day of the first full month after rent commences. Base rent for the San Carlos Lease is $557,519 per month, with annual increases of 3%. The Company is obligated to provide a security deposit of $1.1 million in the form of a letter of credit. In July 2019, concurrently with the execution and delivery of the San Carlos Lease, the Company also entered into a lease agreement, or the Temporary Lease, for the lease of approximately 74,788 rentable square feet of office space located in South San Francisco, California, which is intended to serve as its temporary headquarters, office and laboratory space while the Company’s permanent headquarters is under construction. The Temporary Lease is expected to commence August 1, 2019 and is expected to end 90 days following the substantial completion of certain tenant improvements and construction on the space covered by the San Carlos Lease. Base rent for the Temporary Lease is $280,455 per month, with annual increases of 3%. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts have been eliminated. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s final prospectus for its IPO dated as of June 19, 2019 and filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on June 20, 2019. Prior period reclassification An immaterial reclassification of prior period amounts has been made to conform to the current period presentation. Principles of Consolidation The condensed consolidated financial statements include accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions are eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of income and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates in the consolidated financial statements include estimated useful lives of property and equipment, impairment of long-lived assets, accrued expenses, valuation of deferred income tax assets, fair value of warrants issued to purchasers of shares of preferred stock and common stock and fair value of options granted under the Company's stock option plan. |
Unaudited Interim Condensed Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements are unaudited. The unaudited interim condensed financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair statement of the Company’s financial position as of June 30, 2019 and its results of operations and cash flows for the six months ended June 30, 2018 and 2019. The financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three-month and six-month periods are also unaudited. The condensed results of operations for the three months ended and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any other future annual or interim period. The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited consolidated financial statements as of that date. |
Other Income | Other Income Other income is comprised of amounts earned from services performed under service agreements. Beginning January 1, 2018, the Company follows the provisions of Accounting Standards Update 2014-09 Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). The guidance provides a unified model to determine how income is recognized. In determining the appropriate amount of other income to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identifies the promised goods or services in the contract; (ii) determines whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measures the transaction price, including the constraint on variable consideration; (iv) allocates the transaction price to the performance obligations based on estimated selling prices; and (v) recognizes other income when (or as) the Company satisfies each performance obligation. Upon adoption of Topic 606, there was no change to the units of accounting previously identified with respect to existing service agreements under legacy Generally Accepted Accounting Principles (“GAAP”), which are now considered performance obligations under Topic 606, and there was no change to the revenue recognition pattern for the performance obligations. Accordingly, the adoption of the new standard resulted in no cumulative effect change to the Company's opening accumulated deficit balance. The Company generally allocates the transaction price to distinct performance obligations at their stand-alone selling prices, determined by their estimated costs plus some margin. Performance obligations are generally delivered over time and recognized based upon observable inputs as the related research services are performed, which are recorded as research and development expenses. Amounts due under service agreements are generally billed monthly as services are delivered and do not generally result in contract liabilities or assets. Receivables under service agreements of $440,000 and $282,000 are included in prepaid expenses and other current assets as of June 30, 2019 and December 31, 2018, respectively. Contract liabilities of $64,000 and $200,000 are included in other current liabilities as of June 30, 2019 and December 31, 2018, respectively. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all cash balances and highly liquid investments purchased with an original maturity of three months or less. |
Investments | Investments The Company considers securities purchased with original maturities greater than three months to be investments. The Company’s policy is to protect the value of its investment portfolio and minimize principal risk by earning returns based on current interest rates. The Company’s intent is to convert all investments into cash to be used for operations and has classified them as available for sale. For purposes of determining realized gains and losses, the cost of securities sold is based on specific identification. Interest and dividends on securities classified as available-for-sale are included in interest income. Convertible Preferred Stock Warrants The Company issued convertible preferred stock warrants, which were exercisable into series A preferred stock with liquidation preference. The conversion feature was evaluated under ASC Topic 480 Distinguishing liabilities from equity and the warrants were determined to be debt instruments and classified prior to the IPO as liabilities on the consolidated balance sheets. The Company recorded these warrant liabilities at fair value and adjusted the carrying value to their estimated fair value at each reporting date with the increases or decreases in the fair value recorded as a gain (loss) on revaluation of the warrant liability in the consolidated statements of operations. Upon the IPO, t he 49,997 preferred stock warrants were converted to common stock warrants of Class A shares and the warrant liability of $0.5 million was reclassified to additional paid-in capital as a result of the conversion. The warrants were not subject to further remeasurement for fair value. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from similar services and larger companies, volatility of the industry, ability to obtain regulatory clearance, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company and general economic conditions. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents, investments and other receivables. Cash and cash equivalents are held at one financial institution and were in excess of the Federal Deposit Insurance Corporation insurable limit at June 30, 2019 and December 31, 2018. Additionally, cash and cash equivalents and investments are maintained at a brokerage firm for which amounts are insured by the Securities Investor Protection Corporation subject to legal limits. The Company has not experienced any losses on its deposits to date. The Company does not require collateral or other security for other receivables; however, credit risk is mitigated by the Company’s ongoing evaluations of its debtors’ credit worthiness. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist primarily of salaries and benefits, consultant fees, stock-based compensation, certain facility costs, legal costs and other costs associated with preclinical development. A substantial portion of the Company’s ongoing research and development activities are conducted by third-party service providers in connection with preclinical development activities and contract manufacturing organizations in connection with the production of materials for clinical trials. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the research or development objectives. Such estimates are subject to change as additional information becomes available. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs. |
Preferred Stock Warrant Liability | Stock‑Based Compensation The Company generally grants stock options to its employees for a fixed number of shares with an exercise price equal to the fair value of the underlying shares at the date of grant. The Company accounts for stock option grants using the fair value method. The fair value of options is calculated using the Black‑Scholes option pricing model. Stock‑based compensation is recognized as the underlying options vest using the straight‑line attribution approach, and forfeitures are recorded as they occur. |
Net Loss Per Share | The following outstanding potentially dilutive common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Convertible preferred stock (as converted) — 8,306,934 — 8,306,934 Common stock options 3,580,741 1,645,109 3,580,741 1,645,109 Common stock warrants 49,997 62,936 49,997 62,936 Convertible preferred stock warrants — 49,997 — 49,997 Early exercised stock options 3,655 — 3,655 — 3,634,393 10,064,976 3,634,393 10,064,976 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02 and subsequent amendments to the initial guidance under ASU 2017-13, ASU 2018-10 and ASU 2018-11 (collectively, “Topic 842” ), which modifies the accounting by lessees for all leases with a term greater than 12 months. This standard will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Topic 842 is effective for the Company as of January 1, 2020. Early adoption is permitted. The Company’s most significant lease is its operating lease for its corporate headquarters, and, while the Company has not yet estimated the amounts by which its financial statements will be affected by the adoption of this guidance, it expects that the overall recognition of expense will be similar to current guidance, but that there will be a significant change in the balance sheet due to the recognition of right of use assets and the corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses ( “Topic 326” ): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05, which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables. The amendment replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. For available-for-sale debt securities, credit losses should be recorded through an allowance for credit losses. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016‑15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ( “Topic 230” ). The standard clarifies how certain cash receipts and cash payments will be presented and classified in the statement of cash flows. Topic 230 is effective for the Company as of January 1, 2019. The adoption of this update had no material effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of reconciliation of cash and cash equivalents and restricted cash | June 30, December 31, 2019 2018 Cash and cash equivalents $ 154,959 $ 114,504 Restricted cash 724 — Cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 155,683 $ 114,504 |
Summary of unaudited pro forma net loss per share | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Convertible preferred stock (as converted) — 8,306,934 — 8,306,934 Common stock options 3,580,741 1,645,109 3,580,741 1,645,109 Common stock warrants 49,997 62,936 49,997 62,936 Convertible preferred stock warrants — 49,997 — 49,997 Early exercised stock options 3,655 — 3,655 — 3,634,393 10,064,976 3,634,393 10,064,976 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value of Financial Instruments | |
Summary of financial assets and liabilities subject to fair value measurements on a recurring basis | June 30, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds 150,477 — — 150,477 U.S. Treasury securities 64,703 — — 64,703 Total $ 215,180 $ — $ — $ 215,180 December 31, 2018 Level 1 Level 2 Level 3 Total Assets Money market funds $ 109,630 $ — $ — $ 109,630 Total $ 109,630 $ — $ — $ 109,630 Liabilities Warrant liability $ — $ — $ $ Total $ — $ — $ $ |
Summary of fair value of the warrants were calculated using the Black-Scholes option pricing model | December 31, 2018 Exercise price (1) $ 14.46 Stock price (2) $ 13.20 Time to maturity (in years) 3.64 Volatility (3) 83.7 % Risk-free interest rate (4) 2.50 % Expected dividend $ — (1) Based upon terms provided in the warrant agreement. (2) Based upon an independently prepared valuation as of December 31, 2018, adjusted for the one-for-six reverse stock split . (3) Based upon the historical daily volatility of a group of peer public company closing prices. Based upon interest rate for U.S. Treasury Bonds, as published by the U.S. Federal Reserve. |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Cash, Cash Equivalents and Investments | |
Summary of fair value and the amortized cost of cash, cash equivalents and available-for-sale investments by major security type | As of June 30, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash and money market funds $ 154,959 $ — $ — $ 154,959 U.S. Treasury securities 64,613 90 — 64,703 Total 219,572 90 — 219,662 Less amounts classified as cash and cash equivalents (154,959) — — (154,959) Total available-for-sale investments $ 64,613 $ 90 $ — $ 64,703 As of December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash and money market funds $ 114,504 $ — $ — $ 114,504 Total 114,504 — — 114,504 Less amounts classified as cash and cash equivalents (114,504) — — (114,504) Total available-for-sale investments $ — $ — $ — $ — |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Prepaid Expenses and Other Current Assets | |
Summary of Prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following (in thousands): June 30, December 31, 2019 2018 Vendor prepayments and deposits $ 1,238 $ 2,045 Prepaid rent 626 394 Non-trade receivables 519 282 Interest receivables and other current assets 206 — Total prepaid expenses and other current assets $ 2,589 $ 2,721 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property and Equipment, net | |
Summary of property and equipment | Property and equipment consists of the following (in thousands): June 30, December 31, 2019 2018 Laboratory equipment $ 8,304 $ 7,561 Furniture and fixtures 389 386 Computer hardware and software 559 580 Leasehold improvements 236 236 9,488 8,763 Less accumulated depreciation and amortization (5,333) (4,620) Total property and equipment, net $ 4,155 $ 4,143 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Expenses | |
Summary of accrued expenses | Accrued expenses consist of the following (in thousands): June 30, December 31, 2019 2018 Compensation and related benefits $ 1,741 $ 2,568 Professional fees 1,173 183 Contract research fees 707 43 Other 678 214 Total accrued expenses $ 4,299 $ 3,008 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments under non-cancelable operating and capital lease agreements | Future minimum lease payments under non-cancelable operating and capital lease agreements consisted of the following at June 30, 2019 (in thousands): Capital Operating Leases Leases Years ending December 31: 2019 (remaining 6 months) $ 25 $ 1,752 2020 51 2,436 2021 51 2,310 2022 4 504 Total minimum lease payments 131 $ 7,002 Less: amount representing interest (9) Present value of capital lease obligation 122 Less: current portion (45) Non-current portion $ 77 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stock Option Plan | |
Schedule of stock-based compensation expense | The compensation expense is allocated on a departmental basis, based on the classification of the option holder as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Research and development $ 754 $ 133 $ 1,171 $ 210 General and administrative 605 244 964 280 $ 1,359 $ 377 $ 2,135 $ 490 |
Schedule of stock option activity | Options Outstanding Weighted- Average Aggregate Weighted- Remaining Intrinsic Number Average Contractual Value of Shares Exercise Price Life (years) (in thousands) Balances, December 31, 2018 2,136,291 $ 6.06 $ 12,881 Granted 1,526,838 13.48 Exercised (63,633) 3.90 Cancelled (18,755) 10.56 Balances, June 30, 2019 3,580,741 $ 9.22 $ 34,447 Vested and expected to vest at June 30, 2019 3,580,741 $ 9.22 $ 34,447 Exerciseable at June 30, 2019 1,647,094 $ 5.26 $ 22,368 Vested at June 30, 2019 817,423 $ 5.45 $ 10,945 |
Schedule of weighted average assumptions | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Expected life (in years) 6.02 6.02 6.02 6.01 Volatility 80.8 % 78.3 % 80.8 % % Risk-free interest rate 2.12 % 2.84 % 2.22 % % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Net Loss Per Share | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Convertible preferred stock (as converted) — 8,306,934 — 8,306,934 Common stock options 3,580,741 1,645,109 3,580,741 1,645,109 Common stock warrants 49,997 62,936 49,997 62,936 Convertible preferred stock warrants — 49,997 — 49,997 Early exercised stock options 3,655 — 3,655 — 3,634,393 10,064,976 3,634,393 10,064,976 |
Business (Details)
Business (Details) $ / shares in Units, $ in Thousands | Jun. 07, 2019 | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018 |
Business | ||||
Reverse stock split | 0.167 | 0.167 | ||
Proceeds from Issuance Initial Public Offering | $ | $ 133,618 | |||
underwriting discounts and commissions | $ | $ 10,100 | |||
Offering expenses | $ | $ 2,800 | |||
Warrants to purchase (in shares) | shares | 49,997 | 49,997 | ||
Conversion of redeemable convertible preferred stock to common stock | $ | $ 209,700 | $ 209,669 | ||
Deferred offering cost | $ | $ 2,800 | 2,800 | ||
Payment of deferred offering cost | $ | $ 577 | |||
IPO | ||||
Business | ||||
Offering price | $ / shares | $ 17 | $ 17 | ||
Proceeds from Issuance Initial Public Offering | $ | $ 130,800 | |||
Class A common stock | ||||
Business | ||||
Number of shares issued up on conversion | shares | 13,314,068 | |||
Warrants to purchase (in shares) | shares | 62,936 | 62,936 | ||
Class A common stock | IPO | ||||
Business | ||||
Shares issued | shares | 6,452,500 | |||
Class A common stock | underwriters option | ||||
Business | ||||
Shares issued | shares | 1,102,500 | |||
Class B common stock | ||||
Business | ||||
Number of shares issued up on conversion | shares | 3,934,191 | |||
Class B common stock | IPO | ||||
Business | ||||
Shares issued | shares | 2,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Cash and cash equivalents and restricted cash reported within the condensed balance sheets | |||||
Cash and cash equivalents | $ 154,959,000 | $ 154,959,000 | $ 114,504,000 | ||
Restricted cash | 724,000 | 724,000 | 0 | ||
Cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 155,683,000 | $ 155,683,000 | 114,504,000 | $ 6,394,000 | $ 8,242,000 |
Convertible Preferred Stock Warrants | |||||
Warrants to purchase (in shares) | 49,997 | 49,997 | |||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 503,000 | $ 503,000 | |||
Prepaid expenses and other current assets | |||||
Other Income | |||||
Receivables under service agreements | 440,000 | 440,000 | 282,000 | ||
Other current liabilities | |||||
Other Income | |||||
Contract liabilities | $ 64,000 | $ 64,000 | $ 200,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial assets and liabilities (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Total assets | $ 215,180 | $ 109,630 |
Liabilities | ||
Total liabilities | 380 | |
Common stock warrants | ||
Liabilities | ||
Total liabilities | 380 | |
Cash and money market funds | ||
Assets | ||
Total assets | 150,477 | 109,630 |
U.S. Treasury securities | ||
Assets | ||
Total assets | 64,703 | |
Level 1 | ||
Assets | ||
Total assets | 215,180 | 109,630 |
Level 1 | Cash and money market funds | ||
Assets | ||
Total assets | 150,477 | 109,630 |
Level 1 | U.S. Treasury securities | ||
Assets | ||
Total assets | $ 64,703 | |
Level 3 | ||
Liabilities | ||
Total liabilities | 380 | |
Level 3 | Common stock warrants | ||
Liabilities | ||
Total liabilities | $ 380 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair value of the warrants (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)itemshares | Jun. 30, 2019USD ($)itemshares | Dec. 31, 2018item | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 17 | 17 | |
Warrants to purchase (in shares) | shares | 49,997 | 49,997 | |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ | $ 503 | $ 503 | |
Expected life | 3 years 2 months 1 day | 3 years 2 months 1 day | 3 years 7 months 21 days |
Exercise price (1) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 14.46 | ||
Stock price (2) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 13.20 | ||
Volatility (3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 0.8361 | 0.8361 | 0.837 |
Risk-free interest rate (4) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 0.0169 | 0.0169 | 0.0250 |
Expected dividend | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 0 | 0 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Fair value and Amortized cost (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and money market funds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 154,959 | $ 114,504 |
Estimated Fair Value | 154,959 | 114,504 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 64,613 | |
Gross Unrealized Gains | 90 | |
Estimated Fair Value | 64,703 | |
Total | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 219,572 | 114,504 |
Gross Unrealized Gains | 90 | |
Estimated Fair Value | 219,662 | 114,504 |
Less amounts classified as cash and cash equivalents | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 154,959 | 114,504 |
Estimated Fair Value | $ 114,504 | |
Total available-for-sale investments | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 64,613 | |
Gross Unrealized Gains | 90 | |
Estimated Fair Value | $ 64,703 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets | ||
Vendor prepayments and deposits | $ 1,238 | $ 2,045 |
Prepaid rent | 626 | 394 |
Non-trade receivables | 519 | 282 |
Interest receivables and other current assets | 206 | |
Prepaid expenses and other current assets | $ 2,589 | $ 2,721 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, Plant and Equipment, Gross | $ 9,488,000 | $ 8,763,000 | |
Less accumulated depreciation and amortization | (5,333,000) | (4,620,000) | |
Property and equipment, net | 4,155,000 | 4,143,000 | |
Depreciation expense | 792,000 | $ 667,000 | |
Net book value of property and equipment under capital leases | 117,000 | 142,000 | |
Laboratory equipment | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, Plant and Equipment, Gross | 8,304,000 | 7,561,000 | |
Furniture and fixtures | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, Plant and Equipment, Gross | 389,000 | 386,000 | |
Computer hardware and software | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, Plant and Equipment, Gross | 559,000 | 580,000 | |
Leasehold improvements | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property, Plant and Equipment, Gross | $ 236,000 | $ 236,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Expenses | ||
Compensation and related benefits | $ 1,741 | $ 2,568 |
Professional fees | 1,173 | 183 |
Contract research fees | 707 | 43 |
Other | 678 | 214 |
Total accrued expenses | $ 4,299 | $ 3,008 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | |
Operating leases | |||
Rent expenses | $ 1,260,000 | $ 625,000 | |
Capital lease | |||
Purchases under capital lease | $ 226,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments (Details) - K - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Future minimum capital leases: | ||
2019 (remaining 6 months) | $ 25 | |
2020 | 51 | |
2021 | 51 | |
2022 | 4 | |
Total minimum lease payments | 131 | |
Less: amount representing interest | (9) | |
Present value of capital lease obligation | 122 | |
Capital lease obligations, current portion | 45 | |
Capital Lease Obligations, Noncurrent | 77 | $ 100 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 (remaining 6 months) | 1,752 | |
2020 | 2,436 | |
2021 | 2,310 | |
2022 | 504 | |
Total minimum lease payments | $ 7,002 |
Capital Stock - Class A and Cla
Capital Stock - Class A and Class B Common Stock (Details) | Jun. 02, 2019Vote$ / sharesshares | Jun. 30, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Class of Stock [Line Items] | |||
Preferred Stock, Shares Authorized | shares | 300,000,000 | ||
Preferred stock par value | $ / shares | $ 0.0001 | ||
Class A common stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | shares | 650,000,000 | 650,000,000 | 191,398,492 |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Number of votes entitled per share | Vote | 1 | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | shares | 50,000,000 | 50,000,000 | 23,605,150 |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Capital Stock - Convertible Pre
Capital Stock - Convertible Preferred Stock Warrant (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Class of Warrant or Right [Line Items] | |||
Warrants to purchase (in shares) | 49,997 | 49,997 | |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 503 | $ 503 | |
Preferred stock warrant liability | $ 380 | ||
Preferred Stock Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrants to purchase (in shares) | 49,997 | 49,997 | |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 500 | ||
Preferred stock warrant liability | $ 400 | $ 400 | $ 0 |
Capital Stock - Common Stock Wa
Capital Stock - Common Stock Warrants (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Aug. 31, 2015 | Jun. 30, 2019 | |
Class of Warrant or Right [Line Items] | ||
Warrants to purchase (in shares) | 49,997 | |
Class A common stock | ||
Class of Warrant or Right [Line Items] | ||
Warrants to purchase (in shares) | 62,936 | |
Common Stock Warrants | Class A common stock | ||
Class of Warrant or Right [Line Items] | ||
Exercise of warrants | 62,936 | |
Common Stock Warrants | Series A convertible preferred stock | ||
Class of Warrant or Right [Line Items] | ||
Warrants to purchase (in shares) | 62,936 | |
Price per share (in dollars per share) | $ 0.0001 | |
Fair value of warrants | $ 41,509 |
Equity Incentive Plan - Narrati
Equity Incentive Plan - Narrative (Details) - 2019 Equity Incentive Plan | Jun. 19, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance | 6,141,842 |
Percentage of additional number of shares authorized annually | 4.00% |
Equity Incentive - Stock-based
Equity Incentive - Stock-based compensation expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,359,000 | $ 377,000 | $ 2,135,000 | $ 490,000 |
Income tax benefits for stock-based compensation | 0 | |||
Stock-based compensation costs capitalized | 0 | |||
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 754,000 | 133,000 | 1,171,000 | 210,000 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 605,000 | $ 244,000 | $ 964,000 | $ 280,000 |
Equity Incentive Plan - Stock o
Equity Incentive Plan - Stock option (Details) - 2019 Equity Incentive Plan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Number of Shares | ||
Balance at beginning of period (in shares) | shares | 2,136,291 | |
Granted (in shares) | shares | 1,526,838 | |
Exercised (in shares) | shares | (63,633) | |
Cancelled (in shares) | shares | (18,755) | |
Balance at end of period (in shares) | shares | 3,580,741 | 2,136,291 |
Vested and expected to vest at end of period (in shares) | shares | 3,580,741 | |
Exercisable at end of period (in shares) | shares | 1,647,094 | |
Vested at end of period (in shares) | shares | 817,423 | |
Weighted-Average Exercise Price | ||
Balance at beginning of period (in dollars per share) | $ / shares | $ 6.06 | |
Granted (in dollars per share) | $ / shares | 13.48 | |
Exercised (in dollars per share) | $ / shares | 3.90 | |
Cancelled (in dollars per share) | $ / shares | 10.56 | |
Balance at end of period (in dollars per share) | $ / shares | 9.22 | $ 6.06 |
Vested and expected to vest at end of period (in dollars per share) | $ / shares | 9.22 | |
Exercisable at end of period (in dollars per share) | $ / shares | 5.26 | |
Vested at end of period (in dollars per share) | $ / shares | $ 5.45 | |
Weighted-Average Remaining Contractual Life | ||
Weighted-Average Remaining Contractual Life | 9 years | 8 years 10 months 24 days |
Vested and expected to vest at end of period (in years) | 9 years | |
Exercisable at end of period (in years) | 8 years 2 months 12 days | |
Vested at end of period (in years) | 7 years 9 months 18 days | |
Weighted-Average Exercise Price | ||
Balance at end of period | $ | $ 34,447 | $ 12,881 |
Vested and expected to vest at end of period | $ | 34,447 | |
Exercisable at end of period | $ | 22,368 | |
Vested at end of period | $ | $ 10,945 |
Equity Incentive - Weighted-ave
Equity Incentive - Weighted-average grant date fair value (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
2019 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 10.37 | $ 3.57 |
Equity Incentive - Weighted ave
Equity Incentive - Weighted average assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (in years) | 6 years 7 days | 6 years 7 days | ||
Volatility | 80.80% | 78.30% | ||
Risk-free interest rate | 2.12% | 2.84% | ||
2019 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected dividend | 0.00% | 0.00% | ||
Expected life (in years) | 6 years 7 days | 6 years 4 days | ||
Volatility | 80.80% | 78.30% | ||
Risk-free interest rate | 2.22% | 2.88% |
Equity Incentive - Unrecognized
Equity Incentive - Unrecognized compensation (Details) - 2019 Equity Incentive Plan $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized estimated compensation expense | $ 21.3 |
Remaining requisite service period | 3 years 6 months |
Equity Incentive - 2019 Employe
Equity Incentive - 2019 Employee Stock Purchase Plan (Details) - Class A common stock - 2019 Employee Stock Purchase Plan | Jun. 19, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance | 283,333 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of additional number of shares authorized annually | 1.00% |
Additional number of shares authorized annually | 416,666 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the diluted net loss per share calculation | 3,634,393 | 10,064,976 | 3,634,393 | 10,064,976 |
Convertible preferred stock (as converted) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the diluted net loss per share calculation | 8,306,934 | 8,306,934 | ||
Common stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the diluted net loss per share calculation | 3,580,741 | 1,645,109 | 3,580,741 | 1,645,109 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the diluted net loss per share calculation | 49,997 | 62,936 | 49,997 | 62,936 |
Convertible preferred stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the diluted net loss per share calculation | 49,997 | 49,997 | ||
Early exercised stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the diluted net loss per share calculation | 3,655 | 3,655 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)director | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Other income | $ 319,000 | $ 347,000 | $ 484,000 | $ 495,000 | |
Receivable from stockholders | 99,000 | 99,000 | $ 89,000 | ||
Due to related party | 106,000 | 106,000 | 0 | ||
Research and development expense | $ 106,000 | 100,000 | 213,000 | 200,000 | |
Number of members under consulting agreements | director | 2 | ||||
Intellectual property related legal fees | |||||
Related Party Transaction [Line Items] | |||||
Legal fees | $ 351,000 | 325,000 | 732,000 | 613,000 | |
Due to related party | 410,000 | 410,000 | 134,000 | ||
Other legal fees | |||||
Related Party Transaction [Line Items] | |||||
Legal fees | 1,600,000 | $ 102,000 | 2,000,000 | $ 212,000 | |
Due to related party | $ 1,600,000 | $ 1,600,000 | $ 40,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event | 1 Months Ended |
Jul. 31, 2019USD ($)ft² | |
Office space located in San Carlos | |
Subsequent Event [Line Items] | |
Rentable square footage | ft² | 99,557 |
Lease term | 144 months |
Base rent | $ 557,519 |
Security deposit | $ 1,100,000 |
Percentage of annual increase of lease rent | 3.00% |
Office space located in South San Francisco | |
Subsequent Event [Line Items] | |
Rentable square footage | ft² | 74,788 |
Base rent | $ 280,455 |
Lease term after expiration of permanent lease | 90 days |
Percentage of annual increase of lease rent | 3.00% |