Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | ATRECA, INC. | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001532346 | ||
Amendment Flag | false | ||
Entity Public Float | $ 304.6 | ||
Title of 12(b) Security | Class A Common Stock | ||
Trading Symbol | BCEL | ||
Security Exchange Name | NASDAQ | ||
Class A common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 30,115,715 | ||
Class B common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 6,715,441 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 60,789 | $ 157,954 |
Investments | 179,296 | 14,663 |
Prepaid expenses and other current assets (Note 5) | 9,037 | 3,502 |
Total current assets | 249,122 | 176,119 |
Property and equipment, net (Note 6) | 19,831 | 5,771 |
Long-term investments | 10,799 | |
Deposits and other | 3,111 | 3,026 |
Total assets | 272,064 | 195,715 |
Current Liabilities | ||
Accounts payable | 5,216 | 2,133 |
Accrued expenses (Note 7) | 10,302 | 5,395 |
Other current liabilities | 1,900 | 419 |
Total current liabilities | 17,418 | 7,947 |
Capital lease obligations, net of current portion | 4 | 53 |
Deferred rent | 12,585 | 763 |
Total liabilities | 30,007 | 8,763 |
Commitment and contingencies (Note 8) | ||
Stockholders’ equity | ||
Additional paid-in capital | 492,436 | 351,039 |
Accumulated other comprehensive income | 58 | 16 |
Accumulated deficit | (250,441) | (164,106) |
Total stockholders’ equity | 242,057 | 186,952 |
Total liabilities and stockholders’ equity | 272,064 | 195,715 |
Class A common stock | ||
Stockholders’ equity | ||
Common stock | 3 | 2 |
Class B common stock | ||
Stockholders’ equity | ||
Common stock | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class A common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 650,000,000 | 650,000,000 |
Common stock, shares issued | 30,089,162 | 22,035,976 |
Common stock, shares outstanding | 30,089,162 | 22,035,976 |
Class B common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 6,715,441 | 5,934,191 |
Common stock, shares outstanding | 6,715,441 | 5,934,191 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses | ||
Research and development | $ 62,045 | $ 54,726 |
General and administrative | 26,834 | 17,845 |
Total expenses | 88,879 | 72,571 |
Interest and other income (expense) | ||
Other income | 1,353 | 2,134 |
Interest income | 1,218 | 3,213 |
Interest expense | (4) | (6) |
Preferred stock warrant liability revaluation | (123) | |
Foreign exchange loss | (8) | |
Loss on disposal of property and equipment | (22) | (122) |
Loss before income tax expense | (86,334) | (67,483) |
Income tax expense | (1) | (1) |
Net loss | $ (86,335) | $ (67,484) |
Net loss per share, basic and diluted | $ (2.70) | $ (4.26) |
Weighted-average shares used in computing net loss per share, basic and diluted | 31,924,473 | 15,834,175 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (86,335) | $ (67,484) |
Other comprehensive income: | ||
Unrealized gain on fair value of investments | 42 | 16 |
Unrealized gain on currency translation | 4 | |
Comprehensive loss | $ (86,293) | $ (67,464) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Convertible preferred stock | Total |
Balances at beginning at Dec. 31, 2018 | $ 209,668 | |||||
Balances at beginning (in shares) at Dec. 31, 2018 | 17,248,259 | |||||
Balances at beginning at Dec. 31, 2018 | $ 3,593 | $ (4) | $ (96,622) | $ (93,033) | ||
Balances at beginning (in shares) at Dec. 31, 2018 | 2,119,872 | |||||
Conversion of convertible preferred stock | $ (209,668) | |||||
Conversion of convertible preferred stock (in shares) | (17,248,259) | |||||
Conversion of convertible preferred stock | $ 2 | 209,666 | 209,668 | |||
Conversion of convertible preferred stock (in shares) | 17,248,259 | |||||
Issuance of common stock upon initial public offering, net | $ 1 | 130,785 | 130,786 | |||
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 | 288 | 288 | ||||
Issuance of common stock upon exercise of options (in shares) | 77,368 | |||||
Vesting of early exercised stock options | 15 | 15 | ||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 503 | 503 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 133 | 133 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 9,232 | |||||
Stock-based compensation | 6,056 | 6,056 | ||||
Unrealized gain on fair value of investments | 16 | 16 | ||||
Unrealized currency exchange gain | 4 | 4 | ||||
Net loss | (67,484) | (67,484) | ||||
Balances at end at Dec. 31, 2019 | $ 3 | 351,039 | 16 | (164,106) | 186,952 | |
Balances at end (in shares) at Dec. 31, 2019 | 27,970,167 | |||||
Issuance of common stock upon initial public offering, net | $ 1 | 126,053 | 126,054 | |||
Issuance of common stock upon initial public offering, net (in shares) | 8,423,375 | |||||
Issuance of common stock upon exercise of options | 1,852 | 1,852 | ||||
Issuance of common stock upon exercise of options (in shares) | 334,897 | |||||
Vesting of early exercised stock options | 4 | 4 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 1,012 | 1,012 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 76,164 | |||||
Stock-based compensation | 12,476 | 12,476 | ||||
Unrealized gain on fair value of investments | 42 | 42 | ||||
Net loss | (86,335) | (86,335) | ||||
Balances at end at Dec. 31, 2020 | $ 4 | $ 492,436 | $ 58 | $ (250,441) | $ 242,057 | |
Balances at end (in shares) at Dec. 31, 2020 | 36,804,603 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net loss | $ (86,335) | $ (67,484) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,377 | 1,697 |
Loss on disposal of property and equipment | 22 | 122 |
Stock-based compensation | 12,476 | 6,056 |
Preferred stock warrant liability revaluation | 123 | |
Amortization (accretion) of investments | 304 | (800) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (5,377) | (2,394) |
Accounts payable | (74) | 826 |
Accrued expenses | 752 | 2,465 |
Other current liabilities | 829 | 160 |
Deferred rent | 8,355 | 691 |
Net cash used in operating activities | (66,671) | (58,538) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (5,026) | (3,447) |
Purchase of investments | (249,850) | (99,646) |
Proceeds from maturities of investments | 95,754 | 75,000 |
Change in deposits | 127 | 189 |
Net cash used in investing activities | (158,995) | (27,904) |
Cash Flows from Financing Activities | ||
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan | 1,012 | 133 |
Proceeds from exercise of stock options | 1,852 | 303 |
Proceeds from public offering, net | 126,687 | 133,633 |
Principal payments on capital lease obligations | (47) | (47) |
Payments of initial offering costs | (633) | (2,848) |
Net cash provided by financing activities | 128,871 | 131,174 |
Net change in cash, cash equivalents and restricted cash | (96,795) | 44,732 |
Cash, cash equivalents and restricted cash, beginning of period | 159,236 | 114,504 |
Cash, cash equivalents and restricted cash, end of period | 62,441 | 159,236 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest | 4 | 6 |
Cash paid for income taxes | 1 | 1 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Conversion of redeemable convertible preferred stock to common stock | 209,668 | |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 503 | |
Vesting of early exercised common stock options | 4 | $ 15 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 7,312 | |
Tenant improvement paid directly by landlord | $ 4,121 |
Business
Business | 12 Months Ended |
Dec. 31, 2020 | |
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 South San Francisco, California. In April 2016, the Company formed a wholly owned subsidiary, Atreca Pte. Ltd., in Singapore. 2020 Common Stock Offering In July 2020, the Company closed its follow-on stock offering of 7,642,125 shares of its Class A common stock and 781,250 shares of its Class B common stock at an offering price of $16.00 per share, including 610,875 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s Class A common stock. The Company received net proceeds of $126.1 million, after deducting underwriting discounts and commissions of $8.1 million and offering expenses of $0.6 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 subsidiary. All intercompany transactions and accounts have been eliminated. Prior period reclassification An immaterial reclassification of prior period amounts has been made to conform to the current period presentation. Principles of Consolidation The 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, the 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. 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 $13,000 and $237,000 are included in prepaid expenses and other current assets as of December 31, 2020 and 2019, respectively Collaboration and Service Arrangements Historically, we have entered into a number of discovery collaborations as we developed our discovery platform. These collaborations have generally focused on identifying novel antibodies in areas of significant unmet medical need. In March 2016, the Company entered into a research collaboration agreement with Genome Institute of Singapore (GIS) for the development of a high-throughput microfluidic droplet system for single cell phenotyping and genotyping. Under the agreement, the Company contributes reimbursement of research expenses and certain reagents and other consumables to GIS. The Company accounts for the collaboration agreement with GIS in accordance with ASC 808—Collaborative Arrangements. The Company recognized zero and $36,000 of research and development expenses in 2020 and 2019, respectively, under the collaboration agreement, including wind-down costs. The Company exercised its right to early terminate the collaboration agreement in December 2018. In July 2020, the Company entered into a Collaboration and License Agreement with Xencor, Inc. (“Xencor Agreement”), to research, develop and commercialize novel CD3 bispecific antibodies as potential therapeutics in oncology. Under the Xencor Agreement, the Company and Xencor, Inc. will engage in a three-year research program in which the Company will provide antibodies against novel tumor targets through its discovery platform from which Xencor, Inc. will engineer XmAb bispecific antibodies that also bind to the CD3 receptor on T cells. Up to two joint programs are eligible to be mutually selected for further development and commercialization, with each partner sharing 50% of costs and profits. Each company has the option to lead development, regulatory and commercialization activities for one of the joint programs. In addition, the Xencor Agreement allows each partner the option to pursue up to two programs independently, with a mid-to high-single digit percent royalty payable on net sales to the other partner. For the cost-sharing related to the research program, the Company will follow the presentation and disclosure guidance of ASC 808 Collaboration Agreements . As of December 31, 2020, the Company had $128,000 of receivable under the research cost-sharing provision recorded in prepaid and other current assets on the accompanying balance sheet. The Company evaluated the Xencor Agreement under the provisions of Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and all related amendments (collectively, “ASC 606”). The Company concluded that Xencor, Inc. is not a customer as there are no distinct units of account that are reflective of a vendor-customer relationship or exchange of consideration for the research activities. Fair Value of Financial Instruments: The Company uses a three-level hierarchy, which prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Fair value focuses on an exit price and is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with those financial instruments. The three-level hierarchy for fair value measurements is defined as follows: Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Level 3: An asset or liability's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. 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 $1.7 million and $1.3 million as of December 31, 2020 and 2019, respectively. This amount as of December 31, 2020 is included in deposits and other in the accompanying consolidated balance sheets and is comprised solely of letters of credit required pursuant to leases for Company facilities. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands): December 31, December 31, 2020 2019 Cash and cash equivalents $ 60,789 $ 157,954 Restricted cash 1,652 1,282 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 62,441 $ 159,236 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 three financial institutions and were in excess of the Federal Deposit Insurance Corporation insurable limit at December 31, 2020, and 2019. 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. Property and Equipment Property and equipment are stated at cost less depreciation. Depreciation is computed using the straight-line method with the estimated useful lives of the assets ranging from two to five years. Leasehold improvements are amortized over the estimated useful life of the asset, or the remaining lease term, whichever is shorter. Expenditures for repairs and maintenance, which do not extend the useful life of the property and equipment, are expensed as incurred. Accounting for Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not recorded any impairment of long-lived assets in 2020 or 2019. Intellectual Property The legal and professional costs incurred by the Company to maintain its patent rights have been expensed as part of research and development costs since inception. As of December 31, 2020, and 2019, the Company has determined that these expenses have not met the criteria to be capitalized. Intellectual property-related expenses for the years ended December 31, 2020 and 2019 were $1.2 million and $1.3 million, respectively. Deferred Rent The Company has entered into lease agreements for its laboratory and office facilities. These leases qualify as and are accounted for as operating leases. Rent expense is recognized on a straight-line basis over the term of the lease and, accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. 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 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. Income Taxes The Company applies the provisions set forth in FASB ASC Topic 740, Income Taxes, to account for the uncertainty in income taxes. In the preparation of income tax returns in federal, foreign and state jurisdictions, the Company asserts certain income tax positions based on its understanding and interpretation of income tax laws. The taxing authorities may challenge such positions, and the resolution of such matters could result in recognition of income tax expense in the Company's consolidated financial statements. Management believes it has used reasonable judgments and conclusions in the preparation of its income tax returns. The Company accounts for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are recorded based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. A valuation allowance is provided against the Company's deferred income tax assets when realization is not reasonably assured. Net Loss Per Share The Company computes basic loss per share by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss assumes the conversion, exercise or issuance of all potential common stock equivalents, unless the effect of inclusion would be anti-dilutive. For purposes of this calculation, common stock equivalents include the Company's stock options, common stock warrants, convertible preferred stock warrants and convertible preferred stock, which are convertible into shares of the Company's common stock. No shares related to the convertible preferred stock were included in the diluted net loss calculation for the years ended December 31, 2020 or 2019 because the inclusion of such shares would have had an anti-dilutive effect. The shares to be issued upon exercise of certain outstanding stock options were also excluded from the diluted net loss calculation for the years ended December 31, 2020 and 2019 because such shares are anti-dilutive. 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, ASU 2018-11, and ASU 2019-01 (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, 2022. 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, ASU 2019-05, and ASU 2020-03 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. Topic 326 is effective for the Company as of January 1, 2023. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“Topic 740”) : which simplifies the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company as of January 1, 2021, including interim periods within those fiscal years. Early adoption is permitted but the Company did not elect early adoption. The Company does not expect the adoption of this guidance will have a material impact on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
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 (in thousands): December 31, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds $ 57,951 $ — $ — $ 57,951 U.S. Agency Bonds — 10,706 — 10,706 Certificates of deposit 941 — — 941 Corporate debt securities — 16,667 — 16,667 U.S. Treasury securities 150,982 — — 150,982 Total $ 209,874 $ 27,373 $ — $ 237,247 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds $ 152,770 $ — $ — $ 152,770 Certificates of deposit 1,950 — — 1,950 Corporate debt securities — 3,459 — 3,459 U.S. Treasury securities 20,053 — — 20,053 Total $ 174,773 $ 3,459 $ — $ 178,232 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. The Company measured the fair value of the corporate debt securities using Level 2 valuation inputs, which are based on quoted prices and market observable data of similar instruments. As of December 31, 2020 and 2019, 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 two years. 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. 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 | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 60,789 $ — $ — $ 60,789 U.S. Treasury securities 150,929 53 — 150,982 Corporate debt securities 16,668 — (1) 16,667 U.S. Agency bonds 10,704 2 — 10,706 Certificates of deposit 937 4 — 941 Total 240,027 59 (1) 240,085 Less amounts classified as cash and cash equivalents (60,789) — — (60,789) Total available-for-sale investments $ 179,238 $ 59 $ (1) $ 179,296 As of December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 157,954 $ — $ — $ 157,954 U.S. Treasury securities 20,037 16 — 20,053 Corporate debt securities 3,459 — — 3,459 Certificates of deposit 1,950 — — 1,950 Total 183,400 16 — 183,416 Less amounts classified as cash and cash equivalents (157,954) — — (157,954) Total available-for-sale investments $ 25,446 $ 16 $ — $ 25,462 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
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): December 31, December 31, 2020 2019 Prepaid insurance $ 1,453 $ 1,265 Vendor prepayments and deposits 1,557 963 Prepaid rent 1,397 879 Tenant improvement receivables 3,732 — Non-trade receivables 336 242 Interest receivables and other current assets 562 153 Total prepaid expenses and other current assets $ 9,037 $ 3,502 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment, net | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment consists of the following (in thousands): December 31, December 31, 2020 2019 Laboratory equipment $ 11,287 $ 9,355 Furniture and fixtures 242 225 Computer hardware and software 919 785 Leasehold improvements 667 629 Construction-in-process 14,379 136 27,494 11,130 Less accumulated depreciation and amortization (7,663) (5,359) Total property and equipment, net $ 19,831 $ 5,771 Depreciation and amortization expense was $2.4 million and $1.7 million for the years ended December 31, 2020 and 2019, respectively. The net book value of property and equipment under capital leases was $49,000 and $94,000 at December 31, 2020 and 2019, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): December 31, December 31, 2020 2019 Compensation and related benefits $ 4,954 $ 4,435 Accrued Construction-in-progress 4,145 - Professional fees 82 214 Contract research fees 809 563 Other 312 183 Total accrued expenses $ 10,302 $ 5,395 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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 2033. 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 $10.1 million and $4.5 million for the years ended December 31, 2020 and 2019, 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 December 31, 2020 (in thousands): Capital Operating Leases Leases Years ending December 31: 2021 $ 51 $ 6,697 2022 4 7,336 2023 — 7,037 2024 — 7,248 2025 — 7,466 Thereafter — 61,625 Total minimum lease payments 55 $ 97,409 Less: amount representing interest (2) Present value of capital lease obligation 53 Less: current portion (49) Non-current portion $ 4 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 | 12 Months Ended |
Dec. 31, 2020 | |
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 as of both December 31, 2020 and 2019, respectively. Common Stock Warrant In connection with the issuance of the Company’s Series A preferred stock 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 was exercised in June 2019. 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. Sales Agreement In August 2020, the Company entered into a sales agreement (“Sales Agreement”) with Cowen and Company, LLC (“Cowen”), pursuant to which the Company may, upon the terms and subject to the conditions set forth therein, issue and sell through Cowen, acting as the Company’s sales agent and/or principal, shares of the Company’s Class A common stock, having an aggregate offering price of up to $100.0 million (the “ATM Shares”). The Company has no obligations to sell any ATM Shares under the Sales Agreement. The issuance and sale of the ATM Shares, if any, is subject to the continued effectiveness of the Company’s shelf registration statement on Form S-3, File No. 333-239652, initially filed with the SEC on July 2, 2020 and declared effective by the SEC on July 10, 2020. The Sales Agreement provides that Cowen will be entitled to compensation for its services in an amount equal to up to 3.0% of gross proceeds for each time we issue and sell ATM Shares under the Sales Agreement. The ATM Shares will be sold based on prevailing market prices at the time of the sale, and, as a result, prices may vary. Unless otherwise terminated earlier, the Sales Agreement continues until all shares available under the Sales Agreement have been sold. As of December 31, 2020, no ATM Shares have been sold under the Sales Agreement. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Equity Incentive Plans | |
Equity Incentive Plans | 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 (in thousands, except share and per share data and years): 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 8.9 $ 12,881 Granted 1,764,713 13.63 Exercised (77,368) 3.94 Cancelled (81,492) 9.80 Balances, December 31, 2019 3,742,144 $ 9.58 8.6 $ 22,910 Granted 1,498,850 21.08 Exercised (334,897) 5.53 Cancelled (93,874) 15.37 Balances, December 31, 2020 4,812,223 $ 13.33 8.2 $ 21,493 Vested and expected to vest at December 31, 2020 4,812,223 $ 13.33 8.2 $ 21,493 Exercisable at December 31, 2020 2,432,771 $ 9.80 7.6 $ 17,244 Vested at December 31, 2020 2,101,150 $ 10.54 7.7 $ 13,598 Additional information regarding the Company’s stock options outstanding and vested and exercisable as of December 31, 2020 is summarized below: Options Outstanding Options Vested and Exercisable Weighted- Average Weighted- Remaining Weighted- Average Number of Contractual Average Shares Subject Exercise Stock Options Life Exercise Price to Stock Price per Exercise Prices Outstanding (Years) per Share Options Share Up to $7.55 1,228,829 6.9 $ 4.90 1,211,936 $ 4.89 $7.56-$11.94 543,485 7.9 $ 10.19 286,912 $ 10.13 $11.95-$12.81 1,088,565 8.3 $ 12.24 476,967 $ 12.23 $12.82-$22.06 744,793 8.8 $ 16.96 183,866 $ 17.14 $22.07-$22.10 1,206,551 9.2 $ 22.07 273,090 $ 22.07 4,812,223 8.2 $ 13.33 2,432,771 $ 9.80 The weighted‑average grant date fair value of options granted to employees and non‑employees in the year ended December 31, 2020 and 2019 was $13.46 and $10.35, respectively. The intrinsic value of options exercised for the years ended December 31, 2020 and 2019 was determined to be $4.0 million, and $0.7 million, 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: Year Ended December 31, 2020 2019 Expected life (in years) 5.86 6.02 Volatility 86.0 % 80.8 % Risk-free interest rate 1.0 % 2.2 % 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. 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 year ended December 31, 2020 and 2019, the expense related to the ESPP were $0.8 million and $0.3 million, respectively. The fair value of each ESPP is estimated on the date of grant using the Black‑Scholes option pricing model, assuming no expected dividends and the following range of assumptions: Year Ended December 31, 2020 2019 Expected life (in years) 0.5 - 2.0 0.2 - 2.0 Volatility 91.4 - 114.6 % 74.6 - 101.6 % Risk-free interest rate 0.1 - 1.1 % 1.5 - 2.2 % The Company recognized $12.5 million and $6.1 million of stock‑based compensation expense related to options and the ESPP granted to employees and non‑employees for the years ended December 31, 2020 and 2019, respectively. The compensation expense is allocated on a departmental basis, based on the classification of the option holder as follows (in thousands): Year Ended December 31, 2020 2019 Research and development $ 5,871 $ 2,977 General and administrative 6,604 3,079 $ 12,475 $ 6,056 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 December 31, 2020. Unrecognized compensation expense as of December 31, 2020, totaled $27.6 million related to non‑vested stock options with a remaining weighted-average requisite service period of 2.6 years. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2020 | |
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 Internal Revenue Code of 1986, as amended, or 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 | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss Per Share | |
Net Loss Per Share | 12. Net Loss Per Share The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company considered all series of redeemable convertible preferred stock to have been participating securities as the holders were entitled to receive non-cumulative dividends on a pari passu basis in the event a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses. Under the two-class method, basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock, stock options to purchase common stock, early exercised stock options, and warrants to purchase redeemable convertible preferred stock and common stock are considered common shares equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is antidilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been antidilutive. The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net loss per share attributed to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss attributable to common stockholders for earnings per share, basic and diluted $ 86,335 $ 67,484 Denominator: Shares used to compute net loss per share, basic and diluted 31,924,473 15,834,175 Basic and diluted net loss attributable to common stockholders per share $ 2.70 $ 4.26 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: Year Ended December 31, 2020 2019 Common stock options 4,812,223 3,742,144 Convertible preferred stock warrants 49,997 49,997 Early exercised stock options — 913 4,862,220 3,793,054 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 13. Income Taxes For the years ended December 31, 2020 and 2019, the Company recorded income tax provision related to state minimum taxes due. A reconciliation of the federal statutory income tax rate and the Company's effective income tax rate is as follows: December 31, 2020 2019 Tax computed at federal statutory rate % % State income taxes, net of federal benefit % % Other % % Change in valuation allowance % % Credits % Effective income tax rate % % Deferred income taxes result from the tax effect of transactions that are recognized in different periods for financial statement and income tax reporting purposes, as well as operating loss and tax credit carryforwards. Significant components of the Company's deferred income tax assets and liabilities are as follows (in thousands): As of December 31, 2020 2019 Deferred tax assets: Net operating loss carryforward $ 45,791 $ 34,529 Tax credits 10,577 7,459 Intangibles 1,308 1,914 Other 3,846 1,379 Total deferred tax assets 61,522 45,281 Deferred tax liabilities: Fixed assets 136 233 Total deferred tax liabilities 136 233 Valuation allowance (61,386) (45,048) Total $ — $ — The Company uses the "more likely than not" criterion for recognizing the income tax benefit of uncertain income tax positions and establishing measurement criteria for income tax benefits. The Company has evaluated the impact of these positions and has reserved an unrecognized tax benefit of $3.4 million and $2.6 million as of December 31, 2020 and 2019, respectively. The following table summarizes the changes in the Company’s unrecognized tax benefits during the periods presented (in thousands): As of December 31, 2020 2019 Beginning of period $ 2,583 $ 1,396 Current period tax position increases 1,198 1,097 Prior period tax position changes (403) 90 End of period 3,378 2,583 The increase in the unrecognized tax benefit in 2020 is primarily additions based on tax positions related to 2020. In the event the Company should need to recognize interest and penalties related to unrecognized income tax liabilities, this amount will be recorded as an accrued liability and an increase to income tax expense. No amounts of interest or penalties were recognized in the Company's consolidated financial statements for 2020 or 2019. The Company is not currently under examination by income tax authorities in federal, state or other foreign jurisdictions. The Company does not anticipate any significant changes within 12 months of this reporting date of its uncertain tax positions. The net increase in the valuation allowance was $16.3 million and $20.5 million in 2020 and 2019, respectively. At December 31, 2020, the Company has federal and state net operating loss carryforwards of $46.5 million and $12.8 million, respectively, which begin to expire in 2030 and $165.2 million of federal net operating loss carryforwards which do not expire but are subject to the 80% taxable income limitation. Additionally, the Company had federal tax credits totaling $8.9 million and $5.7 million at December 31, 2020 and 2019, respectively, and state tax credits totaling $6.5 million and $5.3 million, at December 31, 2020 and 2019, respectively. The federal tax credits begin to expire in 2032. The state tax credits may be carried forward indefinitely. Section 382 of the Internal Revenue Code of 1986, as amended, limits the use of net operating losses and income tax credit carryforwards in certain situations where changes occur in stock ownership of a company. If the Company should have an ownership change of more than 50% of the value of the Company's capital stock, utilization of the carryforwards could be restricted. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions. The U.S. federal and state tax years from 2010 to 2020 remain open to examination due to the carryover of unused net operating loss carryforwards and tax credits. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the 2017 Tax Act. The GILTI provisions subject certain U.S. entities to current tax on GILTI earned by certain foreign subsidiaries. The Company has considered these new provisions as they are effective for tax years starting after December 31, 2017 and determined that none will likely apply for the years ended December 31, 2020 and 2019. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment date. The CARES Act, includes changes to the tax provisions that benefits business entities, and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses include a five-year net operating loss carryback, suspension of annual deduction limitation of 80% of taxable income from net operating losses generated in a tax year beginning after December 31, 2017, changes in the deductibility of interest, acceleration of alternative minimum tax credit refunds, payroll tax relief, and a technical correction to allow accelerated deductions for qualified improvement property. The CARES Act also provides other non-tax benefits to assist those impacted by the pandemic. The Company has evaluated the impact of the CARES Act and determined there was no material impact to the income tax provision for the year. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | |
Related Party Transactions | 1 The Company recorded other income of $202,000 and $611,000 for the years ended December 31, 2020 and 2019, respectively, under service contracts with a stockholder. The Company had a receivable from the stockholder as of December 31, 2020 and 2019 of $13,000 and $121,000, respectively. The Company recorded expense of $1.1 million and $1.4 million for the years ended December 31, 2020 and 2019, respectively, related to intellectual property and other legal services performed by a related party. The Company owed $69,000 to the related party for the years ended December 31, 2020 and 2019, respectively. The Company recorded expense of $1.7 million and $2.7 million for the years ended December 31, 2020 and 2019, respectively, related to legal services performed by a related party. The Company owed $250,000 and $186,000 to the related party at December 31, 2020 and 2019, respectively. The Company recorded research and development expenses of $251,000 and $400,000 for the years ended December 31, 2020 and 2019, respectively, under consulting agreements with two members of the Company’s board of directors. On August 22, 2019, one of the two members provided the Company with notice of his resignation from the Company’s board of directors. The Company owed $74,000 and $73,000 to the member of the Company’s board of directors as of December 31, 2020 and 2019, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 15. Subsequent Events The Company has evaluated subsequent events that may require adjustments to or disclosure in the consolidated financial statements through February 26, 2021, the date on which the consolidated financial statements were available to be issued. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | 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 subsidiary. All intercompany transactions and accounts have been eliminated. |
Prior period reclassification | Prior period reclassification An immaterial reclassification of prior period amounts has been made to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation The 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, the 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. |
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 $13,000 and $237,000 are included in prepaid expenses and other current assets as of December 31, 2020 and 2019, respectively |
Collaboration and Service Arrangements | Collaboration and Service Arrangements Historically, we have entered into a number of discovery collaborations as we developed our discovery platform. These collaborations have generally focused on identifying novel antibodies in areas of significant unmet medical need. In March 2016, the Company entered into a research collaboration agreement with Genome Institute of Singapore (GIS) for the development of a high-throughput microfluidic droplet system for single cell phenotyping and genotyping. Under the agreement, the Company contributes reimbursement of research expenses and certain reagents and other consumables to GIS. The Company accounts for the collaboration agreement with GIS in accordance with ASC 808—Collaborative Arrangements. The Company recognized zero and $36,000 of research and development expenses in 2020 and 2019, respectively, under the collaboration agreement, including wind-down costs. The Company exercised its right to early terminate the collaboration agreement in December 2018. In July 2020, the Company entered into a Collaboration and License Agreement with Xencor, Inc. (“Xencor Agreement”), to research, develop and commercialize novel CD3 bispecific antibodies as potential therapeutics in oncology. Under the Xencor Agreement, the Company and Xencor, Inc. will engage in a three-year research program in which the Company will provide antibodies against novel tumor targets through its discovery platform from which Xencor, Inc. will engineer XmAb bispecific antibodies that also bind to the CD3 receptor on T cells. Up to two joint programs are eligible to be mutually selected for further development and commercialization, with each partner sharing 50% of costs and profits. Each company has the option to lead development, regulatory and commercialization activities for one of the joint programs. In addition, the Xencor Agreement allows each partner the option to pursue up to two programs independently, with a mid-to high-single digit percent royalty payable on net sales to the other partner. For the cost-sharing related to the research program, the Company will follow the presentation and disclosure guidance of ASC 808 Collaboration Agreements . As of December 31, 2020, the Company had $128,000 of receivable under the research cost-sharing provision recorded in prepaid and other current assets on the accompanying balance sheet. The Company evaluated the Xencor Agreement under the provisions of Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and all related amendments (collectively, “ASC 606”). The Company concluded that Xencor, Inc. is not a customer as there are no distinct units of account that are reflective of a vendor-customer relationship or exchange of consideration for the research activities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company uses a three-level hierarchy, which prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Fair value focuses on an exit price and is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with those financial instruments. The three-level hierarchy for fair value measurements is defined as follows: Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Level 3: An asset or liability's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
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. The Company maintained restricted cash of $1.7 million and $1.3 million as of December 31, 2020 and 2019, respectively. This amount as of December 31, 2020 is included in deposits and other in the accompanying consolidated balance sheets and is comprised solely of letters of credit required pursuant to leases for Company facilities. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands): December 31, December 31, 2020 2019 Cash and cash equivalents $ 60,789 $ 157,954 Restricted cash 1,652 1,282 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 62,441 $ 159,236 |
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 | 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 three financial institutions and were in excess of the Federal Deposit Insurance Corporation insurable limit at December 31, 2020, and 2019. 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less depreciation. Depreciation is computed using the straight-line method with the estimated useful lives of the assets ranging from two to five years. Leasehold improvements are amortized over the estimated useful life of the asset, or the remaining lease term, whichever is shorter. Expenditures for repairs and maintenance, which do not extend the useful life of the property and equipment, are expensed as incurred. |
Accounting for Impairment of Long-Lived Assets | Accounting for Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not recorded any impairment of long-lived assets in 2020 or 2019. |
Intellectual Property | Intellectual Property The legal and professional costs incurred by the Company to maintain its patent rights have been expensed as part of research and development costs since inception. As of December 31, 2020, and 2019, the Company has determined that these expenses have not met the criteria to be capitalized. Intellectual property-related expenses for the years ended December 31, 2020 and 2019 were $1.2 million and $1.3 million, respectively. |
Deferred Rent | Deferred Rent The Company has entered into lease agreements for its laboratory and office facilities. These leases qualify as and are accounted for as operating leases. Rent expense is recognized on a straight-line basis over the term of the lease and, accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. |
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. |
Stock Based Compensation | 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 | 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 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. |
Income Taxes | Income Taxes The Company applies the provisions set forth in FASB ASC Topic 740, Income Taxes, to account for the uncertainty in income taxes. In the preparation of income tax returns in federal, foreign and state jurisdictions, the Company asserts certain income tax positions based on its understanding and interpretation of income tax laws. The taxing authorities may challenge such positions, and the resolution of such matters could result in recognition of income tax expense in the Company's consolidated financial statements. Management believes it has used reasonable judgments and conclusions in the preparation of its income tax returns. The Company accounts for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are recorded based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. A valuation allowance is provided against the Company's deferred income tax assets when realization is not reasonably assured. |
Net Loss Per Share | Net Loss Per Share The Company computes basic loss per share by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss assumes the conversion, exercise or issuance of all potential common stock equivalents, unless the effect of inclusion would be anti-dilutive. For purposes of this calculation, common stock equivalents include the Company's stock options, common stock warrants, convertible preferred stock warrants and convertible preferred stock, which are convertible into shares of the Company's common stock. No shares related to the convertible preferred stock were included in the diluted net loss calculation for the years ended December 31, 2020 or 2019 because the inclusion of such shares would have had an anti-dilutive effect. The shares to be issued upon exercise of certain outstanding stock options were also excluded from the diluted net loss calculation for the years ended December 31, 2020 and 2019 because such shares are anti-dilutive. |
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, ASU 2018-11, and ASU 2019-01 (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, 2022. 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, ASU 2019-05, and ASU 2020-03 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. Topic 326 is effective for the Company as of January 1, 2023. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“Topic 740”) : which simplifies the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company as of January 1, 2021, including interim periods within those fiscal years. Early adoption is permitted but the Company did not elect early adoption. The Company does not expect the adoption of this guidance will have a material impact on our consolidated financial statements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of reconciliation of cash and cash equivalents and restricted cash | December 31, December 31, 2020 2019 Cash and cash equivalents $ 60,789 $ 157,954 Restricted cash 1,652 1,282 Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 62,441 $ 159,236 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments | |
Summary of financial assets and liabilities subject to fair value measurements on a recurring basis | 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 (in thousands): December 31, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds $ 57,951 $ — $ — $ 57,951 U.S. Agency Bonds — 10,706 — 10,706 Certificates of deposit 941 — — 941 Corporate debt securities — 16,667 — 16,667 U.S. Treasury securities 150,982 — — 150,982 Total $ 209,874 $ 27,373 $ — $ 237,247 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds $ 152,770 $ — $ — $ 152,770 Certificates of deposit 1,950 — — 1,950 Corporate debt securities — 3,459 — 3,459 U.S. Treasury securities 20,053 — — 20,053 Total $ 174,773 $ 3,459 $ — $ 178,232 |
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. (4) 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) | 12 Months Ended |
Dec. 31, 2020 | |
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 | 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 December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 60,789 $ — $ — $ 60,789 U.S. Treasury securities 150,929 53 — 150,982 Corporate debt securities 16,668 — (1) 16,667 U.S. Agency bonds 10,704 2 — 10,706 Certificates of deposit 937 4 — 941 Total 240,027 59 (1) 240,085 Less amounts classified as cash and cash equivalents (60,789) — — (60,789) Total available-for-sale investments $ 179,238 $ 59 $ (1) $ 179,296 As of December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 157,954 $ — $ — $ 157,954 U.S. Treasury securities 20,037 16 — 20,053 Corporate debt securities 3,459 — — 3,459 Certificates of deposit 1,950 — — 1,950 Total 183,400 16 — 183,416 Less amounts classified as cash and cash equivalents (157,954) — — (157,954) Total available-for-sale investments $ 25,446 $ 16 $ — $ 25,462 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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): December 31, December 31, 2020 2019 Prepaid insurance $ 1,453 $ 1,265 Vendor prepayments and deposits 1,557 963 Prepaid rent 1,397 879 Tenant improvement receivables 3,732 — Non-trade receivables 336 242 Interest receivables and other current assets 562 153 Total prepaid expenses and other current assets $ 9,037 $ 3,502 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment, net | |
Summary of property and equipment | Property and equipment consists of the following (in thousands): December 31, December 31, 2020 2019 Laboratory equipment $ 11,287 $ 9,355 Furniture and fixtures 242 225 Computer hardware and software 919 785 Leasehold improvements 667 629 Construction-in-process 14,379 136 27,494 11,130 Less accumulated depreciation and amortization (7,663) (5,359) Total property and equipment, net $ 19,831 $ 5,771 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses | |
Summary of accrued expenses | Accrued expenses consist of the following (in thousands): December 31, December 31, 2020 2019 Compensation and related benefits $ 4,954 $ 4,435 Accrued Construction-in-progress 4,145 - Professional fees 82 214 Contract research fees 809 563 Other 312 183 Total accrued expenses $ 10,302 $ 5,395 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 (in thousands): Capital Operating Leases Leases Years ending December 31: 2021 $ 51 $ 6,697 2022 4 7,336 2023 — 7,037 2024 — 7,248 2025 — 7,466 Thereafter — 61,625 Total minimum lease payments 55 $ 97,409 Less: amount representing interest (2) Present value of capital lease obligation 53 Less: current portion (49) Non-current portion $ 4 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | Stock option activity under the Plan is as follow (in thousands, except share and per share data and years): 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 8.9 $ 12,881 Granted 1,764,713 13.63 Exercised (77,368) 3.94 Cancelled (81,492) 9.80 Balances, December 31, 2019 3,742,144 $ 9.58 8.6 $ 22,910 Granted 1,498,850 21.08 Exercised (334,897) 5.53 Cancelled (93,874) 15.37 Balances, December 31, 2020 4,812,223 $ 13.33 8.2 $ 21,493 Vested and expected to vest at December 31, 2020 4,812,223 $ 13.33 8.2 $ 21,493 Exercisable at December 31, 2020 2,432,771 $ 9.80 7.6 $ 17,244 Vested at December 31, 2020 2,101,150 $ 10.54 7.7 $ 13,598 |
Schedule of Share-based Payment Arrangement, Option, Exercise Price Range | Options Outstanding Options Vested and Exercisable Weighted- Average Weighted- Remaining Weighted- Average Number of Contractual Average Shares Subject Exercise Stock Options Life Exercise Price to Stock Price per Exercise Prices Outstanding (Years) per Share Options Share Up to $7.55 1,228,829 6.9 $ 4.90 1,211,936 $ 4.89 $7.56-$11.94 543,485 7.9 $ 10.19 286,912 $ 10.13 $11.95-$12.81 1,088,565 8.3 $ 12.24 476,967 $ 12.23 $12.82-$22.06 744,793 8.8 $ 16.96 183,866 $ 17.14 $22.07-$22.10 1,206,551 9.2 $ 22.07 273,090 $ 22.07 4,812,223 8.2 $ 13.33 2,432,771 $ 9.80 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Year Ended December 31, 2020 2019 Expected life (in years) 5.86 6.02 Volatility 86.0 % 80.8 % Risk-free interest rate 1.0 % 2.2 % |
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): Year Ended December 31, 2020 2019 Research and development $ 5,871 $ 2,977 General and administrative 6,604 3,079 $ 12,475 $ 6,056 |
2019 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Year Ended December 31, 2020 2019 Expected life (in years) 0.5 - 2.0 0.2 - 2.0 Volatility 91.4 - 114.6 % 74.6 - 101.6 % Risk-free interest rate 0.1 - 1.1 % 1.5 - 2.2 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss attributable to common stockholders for earnings per share, basic and diluted $ 86,335 $ 67,484 Denominator: Shares used to compute net loss per share, basic and diluted 31,924,473 15,834,175 Basic and diluted net loss attributable to common stockholders per share $ 2.70 $ 4.26 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Year Ended December 31, 2020 2019 Common stock options 4,812,223 3,742,144 Convertible preferred stock warrants 49,997 49,997 Early exercised stock options — 913 4,862,220 3,793,054 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of Effective Income Tax Rate Reconciliation | December 31, 2020 2019 Tax computed at federal statutory rate % % State income taxes, net of federal benefit % % Other % % Change in valuation allowance % % Credits % Effective income tax rate % % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities are as follows (in thousands): As of December 31, 2020 2019 Deferred tax assets: Net operating loss carryforward $ 45,791 $ 34,529 Tax credits 10,577 7,459 Intangibles 1,308 1,914 Other 3,846 1,379 Total deferred tax assets 61,522 45,281 Deferred tax liabilities: Fixed assets 136 233 Total deferred tax liabilities 136 233 Valuation allowance (61,386) (45,048) Total $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the changes in the Company’s unrecognized tax benefits during the periods presented (in thousands): As of December 31, 2020 2019 Beginning of period $ 2,583 $ 1,396 Current period tax position increases 1,198 1,097 Prior period tax position changes (403) 90 End of period 3,378 2,583 |
Business (Details)
Business (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020segment | |
Business | ||
Number of Operating Segments | segment | 1 | |
Offering price | $ / shares | $ 16 | |
Net proceeds from IPO | $ | $ 126.1 | |
Underwriting discounts and commissions | $ | 8.1 | |
Offering expenses | $ | $ 0.6 | |
Class A common stock | ||
Business | ||
Shares issued | shares | 7,642,125 | |
Class A common stock | Underwriters option | ||
Business | ||
Shares issued | shares | 610,875 | |
Class B common stock | ||
Business | ||
Shares issued | shares | 781,250 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2020USD ($)Institutionshares | Dec. 31, 2019USD ($)Institution | Dec. 31, 2018USD ($) | |
Other Income | |||||
Expected service period | 18 months | ||||
Cash and cash equivalents and restricted cash reported within the condensed balance sheets | |||||
Cash and cash equivalents | $ 60,789,000 | $ 157,954,000 | |||
Restricted cash | $ 1,652,000 | 1,282,000 | |||
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Deposits and Others | ||||
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 62,441,000 | 159,236,000 | $ 114,504,000 | ||
Convertible Preferred Stock Warrants | |||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 503,000 | ||||
Concentration of credit risk | |||||
Number of financial institutions holding cash and cash and cash equivalents | Institution | 3 | 3 | |||
Research Cost Sharing Provision Receivable | $ 128,000 | ||||
Prepaid expenses and other current assets | |||||
Other Income | |||||
Receivables under service agreements | 13,000 | $ 237,000 | |||
Other current liabilities | |||||
Other Income | |||||
Contract liabilities | 800,000 | $ 0 | |||
Xencor Inc [Member] | Collaboration And License Agreement | |||||
Concentration of credit risk | |||||
Percentage of costs and profit shared by partners | 50.00% | ||||
Preferred Stock Warrants | |||||
Convertible Preferred Stock Warrants | |||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 500,000 | ||||
Preferred Stock Warrants Converted To Common Stock Warrants [Member] | |||||
Convertible Preferred Stock Warrants | |||||
Warrants outstanding | shares | 49,997 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Collaboration and Service Arrangements (Details) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2020Program | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Research and development | $ | $ 62,045,000 | $ 54,726,000 | |
Xencor Inc [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Maximum number of joint programs eligible for further development and commercialization | Program | 2 | ||
Research collaboration agreement | Genome Institute Of Singapore | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Research and development | $ | $ 0 | $ 36,000 | |
Collaboration And License Agreement | Xencor Inc [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Term of the research program (in years) | 3 years | ||
Maximum number of independent programs each partner may pursue | Program | 2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Property and Equipment | |
Estimated useful lives | 2 years |
Maximum | |
Property and Equipment | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Intellectual Property (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Intellectual property-related expenses | $ 1.2 | $ 1.3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Anti-dilutive securities not included in diluted net loss per share (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 4,862,220 | 3,793,054 |
Convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 0 | 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Maximum | ||
Company's financial assets and liabilities subject to fair value measurements on a recurring basis | ||
Contractual maturity of marketable securities (in years) | 2 years | 2 years |
Recurring basis | ||
Assets | ||
Total assets | $ 237,247 | $ 178,232 |
Recurring basis | Cash, cash equivalents and money market funds | ||
Assets | ||
Total assets | 57,951 | 152,770 |
Recurring basis | Certificates of deposit | ||
Assets | ||
Total assets | 941 | 1,950 |
Recurring basis | Corporate debt securities | ||
Assets | ||
Total assets | 16,667 | 3,459 |
Recurring basis | U.S. Treasury securities | ||
Assets | ||
Total assets | 150,982 | 20,053 |
Recurring basis | U.S. Agency bonds | ||
Assets | ||
Total assets | 10,706 | |
Recurring basis | Level 1 | ||
Assets | ||
Total assets | 209,874 | 174,773 |
Recurring basis | Level 1 | Cash, cash equivalents and money market funds | ||
Assets | ||
Total assets | 57,951 | 152,770 |
Recurring basis | Level 1 | Certificates of deposit | ||
Assets | ||
Total assets | 941 | 1,950 |
Recurring basis | Level 1 | U.S. Treasury securities | ||
Assets | ||
Total assets | 150,982 | 20,053 |
Recurring basis | Level 2 | ||
Assets | ||
Total assets | 27,373 | 3,459 |
Recurring basis | Level 2 | Corporate debt securities | ||
Assets | ||
Total assets | 16,667 | $ 3,459 |
Recurring basis | Level 2 | U.S. Agency bonds | ||
Assets | ||
Total assets | $ 10,706 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair value of the warrants (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Reverse stock split | 0.167 | ||
Warrant liability, measurement input | 17 | ||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 503 | ||
Expected life | 3 years 2 months 1 day | ||
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 | ||
Time to maturity (in years) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Expected life | 3 years 7 months 21 days | ||
Volatility (3) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 83.61 | 83.7 | |
Risk-free interest rate (4) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 1.69 | 2.50 | |
Expected dividend | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrant liability, measurement input | 0 | ||
Preferred Stock Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 500 | ||
Preferred Stock Warrants Converted To Common Stock Warrants [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants outstanding | shares | 49,997 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Fair value and Amortized cost (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 60,789 | $ 157,954 |
Cash, cash equivalents and money market funds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 60,789 | 157,954 |
Estimated Fair Value | 60,789 | 157,954 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 150,929 | 20,037 |
Gross Unrealized Gains | 53 | 16 |
Estimated Fair Value | 150,982 | 20,053 |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 16,668 | 3,459 |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 16,667 | 3,459 |
U.S. Agency bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 10,704 | |
Gross Unrealized Gains | 2 | |
Estimated Fair Value | 10,706 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 937 | 1,950 |
Gross Unrealized Gains | 4 | |
Estimated Fair Value | 941 | 1,950 |
Total | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 240,027 | 183,400 |
Gross Unrealized Gains | 59 | 16 |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 240,085 | 183,416 |
Less amounts classified as cash and cash equivalents | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 60,789 | 157,954 |
Estimated Fair Value | 60,789 | 157,954 |
Total available-for-sale investments | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 179,238 | 25,446 |
Gross Unrealized Gains | 59 | 16 |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | $ 179,296 | $ 25,462 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets. | ||
Prepaid Insurance | $ 1,453 | $ 1,265 |
Vendor prepayments and deposits | 1,557 | 963 |
Prepaid rent | 1,397 | 879 |
Tenant improvement receivables | 3,732 | |
Non-trade receivables | 336 | 242 |
Interest receivables and other current assets | 562 | 153 |
Total prepaid expenses and other current assets | $ 9,037 | $ 3,502 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Gross | $ 27,494,000 | $ 11,130,000 |
Less accumulated depreciation and amortization | (7,663,000) | (5,359,000) |
Total property and equipment, net | 19,831,000 | 5,771,000 |
Depreciation expense | 2,400,000 | 1,700,000 |
Net book value of property and equipment under capital leases | 49,000 | 94,000 |
Laboratory equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Gross | 11,287,000 | 9,355,000 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Gross | 242,000 | 225,000 |
Computer hardware and software | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Gross | 919,000 | 785,000 |
Leasehold improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Gross | 667,000 | 629,000 |
Construction-in-process | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property, Plant and Equipment, Gross | $ 14,379,000 | $ 136,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Expenses | ||
Compensation and related benefits | $ 4,954 | $ 4,435 |
Accrued Construction-in-progress | 4,145 | |
Professional fees | 809 | 563 |
Contract research fees | 82 | 214 |
Other | 312 | 183 |
Total accrued expenses | $ 10,302 | $ 5,395 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Operating leases | |||
Rent expenses | $ 10,100,000 | $ 4,500,000 | |
Capital lease | |||
Purchases under capital lease | $ 226,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Future minimum capital leases: | ||
2021 | $ 51 | |
2022 | 4 | |
Total minimum lease payments | 55 | |
Less: amount representing interest | (2) | |
Present value of capital lease obligation | 53 | |
Less: current portion | (49) | |
Non-current portion | 4 | $ 53 |
Future minimum operating leases: | ||
2021 | 6,697 | |
2022 | 7,336 | |
2023 | 7,037 | |
2024 | 7,248 | |
2025 | 7,466 | |
Thereafter | 61,625 | |
Total minimum lease payments | $ 97,409 |
Capital Stock - Class A and Cla
Capital Stock - Class A and Class B Common Stock (Details) $ / shares in Units, $ in Millions | Jun. 02, 2019Vote$ / sharesshares | Aug. 31, 2020USD ($) | Jul. 31, 2020shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Class of Stock [Line Items] | |||||
Preferred Stock, Shares Authorized | 300,000,000 | ||||
Preferred stock par value | $ / shares | $ 0.0001 | ||||
At The Market Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Percentage of gross proceeds as compensation for services | 3.00% | ||||
Shares sold | 0 | ||||
Class A common stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 650,000,000 | 650,000,000 | 650,000,000 | ||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Number of votes entitled per share | Vote | 1 | ||||
Shares sold | 7,642,125 | ||||
Class A common stock | At The Market Offering [Member] | |||||
Class of Stock [Line Items] | |||||
Share offering price | $ | $ 100 | ||||
Class B common stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Shares sold | 781,250 |
Capital Stock - Convertible Pre
Capital Stock - Convertible Preferred Stock Warrant (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Warrant or Right [Line Items] | ||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 503 | |
Preferred Stock Warrants | ||
Class of Warrant or Right [Line Items] | ||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 500 | |
Preferred stock warrant liability | $ 0 | $ 0 |
Preferred Stock Warrants Converted To Common Stock Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding | 49,997 |
Capital Stock - Common Stock Wa
Capital Stock - Common Stock Warrants (Details) - Common Stock Warrants - Series A preferred stock | 1 Months Ended |
Aug. 31, 2015USD ($)$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrants to purchase (in shares) | shares | 62,936 |
Price per share (in dollars per share) | $ / shares | $ 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 Plan - Stock o
Equity Incentive Plan - Stock option (Details) - 2019 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Balance at beginning of period (in shares) | 3,742,144 | 2,136,291 | |
Granted (in shares) | 1,498,850 | 1,764,713 | |
Exercised (in shares) | (334,897) | (77,368) | |
Cancelled (in shares) | (93,874) | (81,492) | |
Balance at end of period (in shares) | 4,812,223 | 3,742,144 | 2,136,291 |
Vested and expected to vest at end of period (in shares) | 4,812,223 | ||
Exercisable at end of period (in shares) | 2,432,771 | ||
Vested at end of period (in shares) | 2,101,150 | ||
Weighted-Average Exercise Price | |||
Balance at beginning of period (in dollars per share) | $ 9.58 | $ 6.06 | |
Granted (in dollars per share) | 21.08 | 13.63 | |
Exercised (in dollars per share) | 5.53 | 3.94 | |
Cancelled (in dollars per share) | 15.37 | 9.80 | |
Balance at end of period (in dollars per share) | 13.33 | $ 9.58 | $ 6.06 |
Vested and expected to vest at end of period (in dollars per share) | 13.33 | ||
Exercisable at end of period (in dollars per share) | 9.80 | ||
Vested at end of period (in dollars per share) | $ 10.54 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life | 8 years 2 months 12 days | 8 years 7 months 6 days | 8 years 10 months 24 days |
Vested and expected to vest at end of period (in years) | 8 years 2 months 12 days | ||
Exercisable at end of period (in years) | 7 years 7 months 6 days | ||
Vested at end of period (in years) | 7 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Balance at beginning of period | $ 22,910 | $ 12,881 | |
Balance at end of period | 21,493 | $ 22,910 | $ 12,881 |
Vested and expected to vest at end of period | 21,493 | ||
Exercisable at end of period | 17,244 | ||
Vested at end of period | $ 13,598 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional information regarding stock option (Details) - 2019 Equity Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Number of Stock options outstanding | 4,812,223 | 3,742,144 | 2,136,291 |
Shares subject to stock options | 2,432,771 | ||
Weighted-Average Exercise Price | |||
Options Outstanding, weighted-Average Exercise Price per share | $ 13.33 | $ 9.58 | $ 6.06 |
Options Vested and Exercisable, weighted-average exercise Price per share | $ 9.80 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life of options outstanding | 8 years 2 months 12 days | 8 years 7 months 6 days | 8 years 10 months 24 days |
Up to $7.55 | |||
Number of Shares | |||
Number of Stock options outstanding | 1,228,829 | ||
Shares subject to stock options | 1,211,936 | ||
Weighted-Average Exercise Price | |||
Options Outstanding, weighted-Average Exercise Price per share | $ 4.90 | ||
Options Vested and Exercisable, weighted-average exercise Price per share | $ 4.89 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life of options outstanding | 6 years 10 months 24 days | ||
$7.56-$11.94 | |||
Number of Shares | |||
Number of Stock options outstanding | 543,485 | ||
Shares subject to stock options | 286,912 | ||
Weighted-Average Exercise Price | |||
Options Outstanding, weighted-Average Exercise Price per share | $ 10.19 | ||
Options Vested and Exercisable, weighted-average exercise Price per share | $ 10.13 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life of options outstanding | 7 years 10 months 24 days | ||
$11.95-$12.81 | |||
Number of Shares | |||
Number of Stock options outstanding | 1,088,565 | ||
Shares subject to stock options | 476,967 | ||
Weighted-Average Exercise Price | |||
Options Outstanding, weighted-Average Exercise Price per share | $ 12.24 | ||
Options Vested and Exercisable, weighted-average exercise Price per share | $ 12.23 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life of options outstanding | 8 years 3 months 18 days | ||
$12.82-$22.06 | |||
Number of Shares | |||
Number of Stock options outstanding | 744,793 | ||
Shares subject to stock options | 183,866 | ||
Weighted-Average Exercise Price | |||
Options Outstanding, weighted-Average Exercise Price per share | $ 16.96 | ||
Options Vested and Exercisable, weighted-average exercise Price per share | $ 17.14 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life of options outstanding | 8 years 9 months 18 days | ||
$22.07-$22.10 | |||
Number of Shares | |||
Number of Stock options outstanding | 1,206,551 | ||
Shares subject to stock options | 273,090 | ||
Weighted-Average Exercise Price | |||
Options Outstanding, weighted-Average Exercise Price per share | $ 22.07 | ||
Options Vested and Exercisable, weighted-average exercise Price per share | $ 22.07 | ||
Weighted-Average Remaining Contractual Life | |||
Weighted-Average Remaining Contractual Life of options outstanding | 9 years 2 months 12 days |
Equity Incentive Plan - Weighte
Equity Incentive Plan - Weighted-average grant date fair value (Details) - 2019 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 13.46 | $ 10.35 |
Intrinsic value of options exercised | $ 4 | $ 0.7 |
Expected dividend | 0.00% | 0.00% |
Equity Incentive Plan - Weigh_2
Equity Incentive Plan - Weighted average assumptions (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
2019 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life (in years) | 5 years 10 months 10 days | 6 years 7 days |
Volatility | 86.00% | 80.80% |
Risk-free interest rate | 1.00% | 2.20% |
2019 Employee Stock Purchase Plan | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life (in years) | 6 months | 2 months 12 days |
Volatility | 91.40% | 74.60% |
Risk-free interest rate | 0.10% | 1.50% |
2019 Employee Stock Purchase Plan | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life (in years) | 2 years | 2 years |
Volatility | 114.60% | 101.60% |
Risk-free interest rate | 1.10% | 2.20% |
Equity Incentive Plan - 2019 Em
Equity Incentive Plan - 2019 Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands | Jun. 19, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 12,475 | $ 6,056 | |
Class A common stock | 2019 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance | 283,333 | ||
Stock-based compensation expense | $ 800 | $ 300 | |
Expected dividend | 0.00% | ||
Class A common stock | 2019 Employee Stock Purchase Plan | 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 |
Equity Incentive Plan - Stock-b
Equity Incentive Plan - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 12,475 | $ 6,056 |
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 | 5,871 | 2,977 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 6,604 | $ 3,079 |
Equity Incentive Plan - Unrecog
Equity Incentive Plan - Unrecognized compensation (Details) - 2019 Equity Incentive Plan $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 27.6 |
Remaining weighted-average requisite service period | 2 years 7 months 6 days |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||
Net loss attributable to common stockholders for earnings per share, basic and diluted | $ 86,335 | $ 67,484 |
Denominator: | ||
Shares used to compute net loss per share, basic and diluted | 31,924,473 | 15,834,175 |
Basic and diluted net loss attributable to common stockholders per share | $ 2.70 | $ 4.26 |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive securities (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 4,862,220 | 3,793,054 |
Convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 0 | 0 |
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 | 4,812,223 | 3,742,144 |
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 | 913 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Mar. 27, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized Tax Benefits | $ 3,378 | $ 2,583 | $ 1,396 | |
Interest or penalties | 0 | 0 | ||
Net increase in valuation allowance | 16,300 | 20,500 | ||
Percentage of taxable income limitation of net operating loss carryforwards | 80.00% | |||
Period of operating loss carryback | 5 years | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 46,500 | |||
Operating Loss Carryforwards, Not Subject to Expiration | $ 165,200 | |||
Percentage of taxable income limitation of net operating loss carryforwards | 80.00% | |||
Tax Credit Carryforward | 8,900 | $ 5,700 | ||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 12,800 | |||
Tax Credit Carryforward | $ 6,500 | $ 5,300 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the federal statutory income tax rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the federal statutory income tax rate | ||
Tax computed at federal statutory rate | 21.00% | 21.00% |
State income taxes, net of federal benefit | (3.20%) | 8.30% |
Other | (1.70%) | (1.00%) |
Change in valuation allowance | (18.90%) | (30.40%) |
Credits | 2.90% | 2.10% |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes - Deferred income
Income Taxes - Deferred income tax assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets: | ||
Net operating loss carryforward | $ 45,791 | $ 34,529 |
Tax credits | 10,577 | 7,459 |
Intangibles | 1,308 | 1,914 |
Other | 3,846 | 1,379 |
Total deferred tax assets | 61,522 | 45,281 |
Fixed assets | 136 | 233 |
Total deferred tax liabilities | 136 | 233 |
Valuation allowance | (61,386) | (45,048) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||
Unrecognized benefit - beginning of period | 2,583 | 1,396 |
Current period tax position increases | 1,198 | 1,097 |
Prior period tax position increases | 90 | |
Prior period tax position decreases | (403) | |
Unrecognized benefit - end of period | $ 3,378 | $ 2,583 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)director | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Other income | $ 202,000 | $ 611,000 |
Receivable from stockholders | 13,000 | 121,000 |
Due to related party | 74,000 | 73,000 |
Research and development expense | $ 251,000 | 400,000 |
Number of members under consulting agreements | director | 2 | |
Intellectual property related legal fees | ||
Related Party Transaction [Line Items] | ||
Expense | $ 1,100,000 | 1,400,000 |
Due to related party | 69,000 | 69,000 |
Other legal fees | ||
Related Party Transaction [Line Items] | ||
Expense | 1,700,000 | 2,700,000 |
Due to related party | $ 250,000 | $ 186,000 |