Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 22, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40551 | ||
Entity Registrant Name | Acumen Pharmaceuticals, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4108129 | ||
Entity Address, Address Line One | 427 Park St. | ||
Entity Address, City or Town | Charlottesville | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22902 | ||
City Area Code | 434 | ||
Local Phone Number | 297-1000 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | ABOS | ||
Security Exchange Name | NASDAQ | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 135.4 | ||
Entity Common Stock, Shares Outstanding | 41,025,062 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2023 annual meeting of the shareholders, or the 2023 Proxy Statement, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001576885 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Tysons, Virginia |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 130,101 | $ 122,162 |
Marketable securities, short-term | 47,504 | 72,075 |
Prepaid expenses and other current assets | 2,724 | 4,424 |
Total current assets | 180,329 | 198,661 |
Marketable securities, long-term | 15,837 | 31,619 |
Property and equipment, net | 165 | 36 |
Right-of-use asset | 105 | 0 |
Other assets | 151 | 14 |
Total assets | 196,587 | 230,330 |
Current liabilities | ||
Accounts payable | 1,640 | 1,088 |
Accrued clinical trial expenses | 2,717 | 147 |
Accrued expenses and other current liabilities | 3,350 | 3,912 |
Operating lease liability, current portion | 105 | 0 |
Total current liabilities | 7,812 | 5,147 |
Total liabilities | 7,812 | 5,147 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and no shares issued and outstanding as of December 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.0001 par value; 300,000,000 shares authorized and 41,025,062 and 40,473,270 shares issued and outstanding as of December 31, 2022 and 2021, respectively | 4 | 4 |
Additional paid-in capital | 359,949 | 352,981 |
Accumulated deficit | (170,427) | (127,571) |
Accumulated other comprehensive loss | (751) | (231) |
Total stockholders’ equity | 188,775 | 225,183 |
Total liabilities and stockholders’ equity | $ 196,587 | $ 230,330 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 41,025,062 | 40,473,270 |
Common stock, shares outstanding (in shares) | 41,025,062 | 40,473,270 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses | ||
Research and development | $ 32,361 | $ 12,305 |
General and administrative | 12,876 | 7,279 |
Total operating expenses | 45,237 | 19,584 |
Loss from operations | (45,237) | (19,584) |
Other income (expense) | ||
Interest income, net | 2,392 | 84 |
Other income (expense), net | (11) | 51 |
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | 0 | (81,157) |
Total other income (expense) | 2,381 | (81,022) |
Net loss | (42,856) | (100,606) |
Other comprehensive loss | ||
Unrealized loss on marketable securities | (520) | (231) |
Comprehensive loss | $ (43,376) | $ (100,837) |
Net loss per common share, basic (in dollars per share) | $ (1.06) | $ (5.02) |
Net loss per common share, diluted (in dollars per share) | $ (1.06) | $ (5.02) |
Weighted-average shares outstanding, basic (in shares) | 40,601,936 | 20,057,534 |
Weighted-average shares outstanding diluted (in shares) | 40,601,936 | 20,057,534 |
Statements of Changes in Conver
Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Series A Convertible Preferred Stock | Series A-1 Convertible Preferred Stock | Series B Convertible Preferred Stock |
Beginning balance (in shares) at Dec. 31, 2020 | 477,297 | 7,537,879 | 11,862,043 | |||||
Beginning balance at Dec. 31, 2020 | $ 1,067 | $ 16,333 | $ 39,253 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Issuance of milestone shares for cash, net of issuance costs (in shares) | 7,908,027 | |||||||
Issuance of milestone shares for cash, net of issuance costs | $ 30,031 | |||||||
Exercise of preferred stock warrant (in shares) | 447,426 | |||||||
Exercise of preferred stock warrant | $ 1,250 | |||||||
Reclassification of preferred stock tranche rights liability upon issuance of milestone shares | $ 81,190 | $ 81,190 | ||||||
Reclassification of warrant liability upon exercise of preferred stock warrant | 5,380 | $ 5,380 | ||||||
Conversion of convertible preferred stock into common stock upon initial public offering (in shares) | (477,297) | (7,985,305) | (19,770,070) | |||||
Conversion of convertible preferred stock into common stock upon initial public offering | $ (1,067) | $ (22,963) | $ (150,474) | |||||
Ending balance at Dec. 31, 2021 | $ 0 | $ 0 | $ 0 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | 0 | 0 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 419,124 | |||||||
Beginning balance at Dec. 31, 2020 | (18,591) | $ 0 | $ 8,374 | $ (26,965) | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of common stock warrants (in shares) | 137,446 | |||||||
Exercise of common stock warrants | 614 | 614 | ||||||
Conversion of convertible preferred stock into common stock upon initial public offering (in shares) | 28,232,672 | |||||||
Conversion of convertible preferred stock into common stock upon initial public offering | 174,504 | $ 3 | 174,501 | |||||
Issuance of common stock for cash, net of issuance costs (in shares) | 11,499,998 | |||||||
Issuance of common stock for cash, net of issuance costs | 168,556 | $ 1 | 168,555 | |||||
Cashless exercise of common stock warrants (in shares) | 178,847 | |||||||
Stock options exercised (in shares) | 5,183 | |||||||
Stock options exercised | 15 | 15 | ||||||
Unrealized loss on marketable securities | (231) | (231) | ||||||
Stock-based compensation | 922 | 922 | ||||||
Net loss | $ (100,606) | (100,606) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 40,473,270 | 40,473,270 | ||||||
Ending balance at Dec. 31, 2021 | $ 225,183 | $ 4 | 352,981 | (127,571) | (231) | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Reclassification of preferred stock tranche rights liability upon issuance of milestone shares | 0 | |||||||
Reclassification of warrant liability upon exercise of preferred stock warrant | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock for cash, net of issuance costs (in shares) | 422,160 | |||||||
Issuance of common stock for cash, net of issuance costs | $ 3,792 | 3,792 | ||||||
Cashless exercise of common stock warrants (in shares) | 4,746 | |||||||
Stock options exercised (in shares) | 131,626 | 124,886 | ||||||
Stock options exercised | $ 115 | 115 | ||||||
Unrealized loss on marketable securities | (520) | (520) | ||||||
Stock-based compensation | 3,061 | 3,061 | ||||||
Net loss | $ (42,856) | (42,856) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 41,025,062 | 41,025,062 | ||||||
Ending balance at Dec. 31, 2022 | $ 188,775 | $ 4 | $ 359,949 | $ (170,427) | $ (751) |
Statements of Changes in Conv_2
Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock | ||
Stock issuance costs | $ 412 | $ 15,445 |
Series B Convertible Preferred Stock | ||
Stock issuance costs | $ 16 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (42,856) | $ (100,606) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 32 | 4 |
Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | 0 | 81,157 |
Stock-based compensation expense | 3,061 | 922 |
Amortization of premiums and accretion of discounts on marketable securities, net | 487 | 155 |
Amortization of right-of-use asset | 137 | 0 |
Other non-cash expense | 0 | 109 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 1,700 | (3,881) |
Other assets | (137) | (14) |
Accounts payable | 552 | 557 |
Accrued clinical trial expenses | 2,570 | 147 |
Operating lease liability | (137) | 0 |
Accrued expenses and other current liabilities | (562) | 3,489 |
Net cash used in operating activities | (35,153) | (17,961) |
Cash flows from investing activities | ||
Purchases of marketable securities | (41,514) | (104,080) |
Proceeds from maturities and sales of marketable securities | 80,860 | 0 |
Purchases of property and equipment | (161) | (40) |
Net cash provided by (used in) investing activities | 39,185 | (104,120) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net of issuance costs | 3,792 | 168,556 |
Proceeds from exercise of stock options | 115 | 15 |
Proceeds from issuance of Series B milestone shares, net of issuance costs | 0 | 30,031 |
Proceeds from exercise of Series A-1 warrant | 0 | 1,250 |
Proceeds from exercise of common stock warrants | 0 | 614 |
Net cash provided by financing activities | 3,907 | 200,466 |
Net change in cash and cash equivalents | 7,939 | 78,385 |
Cash and cash equivalents at the beginning of the period | 122,162 | 43,777 |
Cash and cash equivalents at the end of the period | 130,101 | 122,162 |
Supplemental disclosure of cash flow information | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | 0 | 0 |
Supplemental disclosure of noncash financing activities | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 242 | 0 |
Conversion of convertible preferred stock into common stock upon IPO | 0 | 174,504 |
Reclassification of preferred stock tranche rights liability upon share issuance | 0 | 81,190 |
Reclassification of warrant liability upon exercise of preferred stock warrant | $ 0 | $ 5,380 |
Description of Organization and
Description of Organization and Business Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Organization and Business Operations | DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Acumen Pharmaceuticals, Inc. (“Acumen” or the “Company”) was incorporated in 1996 in the state of Delaware. Acumen is a clinical-stage biopharmaceutical company developing a novel disease-modifying approach to target what the Company believes to be a key underlying cause of Alzheimer’s disease (“AD”). Alzheimer’s disease is a progressive neurodegenerative disease of the brain that leads to loss of memory and cognitive functions and ultimately results in death. The Company’s scientific founders pioneered research on soluble amyloid-beta oligomers (“AßOs”), which are globular assemblies of the amyloid-beta (“Aß”) peptide that are distinct from Aß monomers and amyloid plaques. Based on decades of research and supporting evidence, AßOs have gained increasing scientific acceptance as a primary toxin involved in the initiation and propagation of AD pathology. The Company is currently focused on advancing a targeted immunotherapy drug candidate, ACU193, through clinical proof of mechanism trials in early AD patients. ACU193 is a recombinant humanized immunoglobin gamma 2 (“IgG2”) monoclonal antibody (“mAb”) that was designed to selectively target AßOs , has demonstrated functional and protective effects in in vitro assays, and has demonstrated in vivo safety and pharmacologic activity in multiple animal species, including transgenic models for AD. The Company is subject to the uncertainty of whether its intellectual property will develop into successful commercial products. June 2021 Reverse Stock Split The Company’s Board of Directors (“Board”) approved a reverse split of shares of the Company’s common stock and convertible preferred stock on a 1-for-1.49 basis (the “June 2021 Reverse Stock Split”), which was effected on June 23, 2021. The par value and the number of authorized shares of the convertible preferred stock and common stock were not adjusted in connection with the June 2021 Reverse Stock Split. All references to common stock, convertible preferred stock, warrants to purchase common stock, warrants to purchase convertible preferred stock, options to purchase common stock, share data, per share data and related information contained in the financial statements have been retrospectively adjusted to reflect the effect of the June 2021 Reverse Stock Split for all periods presented. No fractional shares of the Company’s common stock were issued in connection with the June 2021 Reverse Stock Split. Any fractional share resulting from the June 2021 Reverse Stock Split was rounded down to the nearest whole share, and any stockholder entitled to a fractional share as a result of the June 2021 Reverse Stock Split received a cash payment in lieu of receiving fractional shares. Initial Public Offering On July 6, 2021, the Company issued 9,999,999 shares of common stock in an initial public offering (“IPO”), and on July 8, 2021, the Company issued an additional 1,499,999 shares of common stock that were purchased by the underwriters pursuant to the underwriters’ option to purchase additional shares at the public offering price less underwriting discounts and commissions. The price to the public for each share was $16.00. The aggregate net proceeds from the Company’s IPO, after underwriting discounts and commissions and other offering expenses of $15.4 million, were $168.6 million. On July 6, 2021, in connection with the closing of the IPO, 477,297 shares of Series A, 7,985,305 shares of Series A-1, and 19,770,070 shares of Series B convertible preferred stock, respectively, automatically converted into an equal number of shares of common stock. Warrants to purchase shares of common stock were automatically net exercised for the purchase of an aggregate of 178,847 shares of common stock. As a result of the IPO, the underwriters’ exercise of their option, the conversions of the Series A, A-1 and B convertible preferred stock, and the exercise of the warrants, the Company’s total number of outstanding common shares increased by 39,911,517 immediately following the closing of the IPO. Liquidity and Capital Resources The Company has incurred operating losses since inception and expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. As of December 31, 2022 and 2021, the Company had an accumulated deficit of $170.4 million and $127.6 million, respectively, and working capital of $172.5 million and $193.5 million, respectively. Management believes that the Company has sufficient cash to continue operating activities for beyond 12 months from issuance of these financial statements. In October 2022, the Company issued 422,160 shares of common stock for net proceeds of $3.8 million, at a weighted average price of $10.06 per share. See additional discussion in Note 8. Future capital requirements will depend upon many factors, including the timing and extent of spending on research and development and market acceptance of the Company’s products. The Company may need to obtain additional financing to complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. Until such time, if ever, the Company can generate revenue sufficient to achieve profitability, the Company expects to finance its operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and licensing arrangements. There can be no assurance that such financing will be available on terms acceptable to the Company, or at all. To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, the ownership interest of its stockholders will be diluted, and the terms of these securities may include liquidation of other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting the Company’s ability to take specific actions, such as incurring additional debt, making acquisitions or capital expenditures or declaring dividends. If the Company is unable to maintain sufficient financial resources, its business, financial condition and results of operations will be materially and adversely affected. The Company may be required to delay, limit, reduce or terminate its product discovery and development activities or future commercialization efforts. The Company initiated a Phase 1 clinical trial of ACU193 in the second quarter of 2021, which the Company named “INTERCEPT-AD.” This trial enrolled patients with mild dementia or mild cognitive impairment (“MCI”), due to AD, conditions referred to as “early AD.” INTERCEPT-AD is a U.S.-based, multi-center, randomized, double-blind, placebo-controlled clinical trial with overlapping single ascending dose and multiple ascending dose cohorts involving a total of approximately 65 patients with early AD. |
Basis of Presentation, Summary
Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements | BASIS OF PRESENTATION, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Basis of Presentation The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the Company’s financial position, and the results of its operations and its cash flows. Emerging Growth Company From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial statements upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended, the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of expenses during the reporting periods. These estimates and assumptions are based on the Company’s historical experience, and on various other factors that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. Accrued clinical trial expenses are presented as a separate line on the balance sheets and statements of cash flows, whereas these accrued expenses were previously included in accrued expenses and other current liabilities. These reclassifications had no effect on the reported results of operations. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist of funds held in several money market accounts. The Company had $129.1 million and $121.2 million in cash equivalents as of December 31, 2022 and 2021, respectively. Marketable Securities The Company’s marketable securities portfolio consists primarily of investments in money market funds, commercial paper, asset-backed securities, U.S. treasury securities and short-term highly liquid, high credit quality corporate debt securities. The Company considers its marketable securities to be available-for-sale. Available-for-sale securities are classified as cash equivalents, or as short-term or long-term marketable securities based on the maturity date at time of purchase and their availability to meet current operating requirements. Available-for-sale securities that mature in three months or less from the date of purchase are classified as cash equivalents. Available-for-sale securities, excluding cash equivalents, that mature in one year or less are classified as short-term marketable securities and those that mature in more than one year are classified as long-term. Securities that are classified as available-for-sale are measured at fair value; see “ Fair Value of Financial Instruments ” below. Any premium arising at purchase is amortized to the earliest call date and any discount arising at purchase is accreted to maturity. Amortization and accretion of premiums and discounts are recorded along with interest income on investments in interest income, net in the statements of operations and comprehensive loss. Unrealized gains and losses are excluded from earnings and are reported as a component of other comprehensive income. The Company periodically evaluates whether declines in fair values of its available-for-sale securities below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss, as well as the Company’s ability and intent to hold the available-for-sale security until a forecasted recovery occurs. The Company does not generally intend to sell its available-for-sale securities; however, the Company assesses whether it is more likely than not that it will be required to sell any security before recovery of its amortized cost basis. Realized gains and losses and declines in fair value judged to be other-than-temporary on available-for-sale securities will be included in other expense, net. The cost of investments sold will be calculated using the specific-identification method. The Company did not record any other-than-temporary impairments related to available-for-sale securities for the years ended December 31, 2022 or 2021. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company maintains deposits in financial institutions in excess of government insured limits. Management believes that the Company is not exposed to significant credit risk as the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company has not experienced any losses due to credit risk on such accounts during any of the periods presented. Fair Value of Financial Instruments The Company’s financial assets and liabilities are accounted for in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels: Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the instrument’s anticipated life. Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgement. Accordingly, the degree of judgement exercised by management in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying values reported in the Company’s balance sheets for cash (excluding cash equivalents which are recorded at fair value on a recurring basis), accounts payable and accrued expenses are reasonable estimates of their fair values due to the short-term nature of these items. Property and Equipment Property and equipment consists primarily of computer equipment and furniture and fixtures and is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which is generally three years for computer-related assets and five years for furniture. Leases Effective as of January 1, 2022, the Company accounts for its leases under ASC 842, Leases . Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right-of-use asset and a lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and right-of-use assets are amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset results in straight-line rent expense over the lease term. Variable lease expenses are recorded when incurred and not included in the measurement of right-of-use assets and lease liabilities. ASC 842 provides practical expedients for an entity’s ongoing accounting. In calculating right-of-use assets and lease liabilities, the Company has elected to combine lease and non-lease components. Additionally, the Company has elected to apply the practical expedient related to short-term leases (i.e., leases having initial terms of 12 months or less at commencement date) as an accounting policy election. For short-term leases, the Company will not recognize a right-of-use asset or lease liability, but instead will recognize lease payments as an expense on a straight-line basis over the lease term. Prior to the adoption of ASC 842 on January 1, 2022, the Company accounted for its leases under ASC 840, Leases. Convertible Preferred Stock The Company recorded shares of convertible preferred stock at their respective fair values on the dates of issuance, net of issuance costs. The Company applied the guidance in ASC 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities , and therefore classified the Series A, Series A-1 and Series B convertible preferred stock as mezzanine equity. The convertible preferred stock was recorded outside of stockholders’ deficit because, in the event of certain deemed liquidation events considered not solely within the Company’s control, such as a merger, acquisition and sale of all or substantially all of the Company’s assets, the convertible preferred stock would have become redeemable at the option of the holders. In the event of a change of control of the Company, proceeds received from the sale of such shares would have been distributed in accordance with the corresponding liquidation preferences. The Company did not adjust the carrying values of the convertible preferred stock to the deemed liquidation values of such shares since a liquidation event was not probable at any of the reporting dates. As mentioned above in Note 1, in connection with the closing of the IPO, all of the outstanding shares of Series A, Series A-1 and Series B convertible preferred stock automatically converted into an equal number of shares of common stock on July 6, 2021. Preferred Stock Tranche Rights Liability The Company determined that its obligation to issue, and the Company’s investors’ right to purchase, additional shares of Series B convertible preferred stock pursuant to a subsequent closing, (deemed the “Milestone Closing” in Note 7) represented a freestanding financial instrument (the “tranche liability”), as it was legally detachable and separately exercisable from the initial closing of the Series B convertible preferred stock. The tranche liability was initially recorded at fair value. The proceeds from the sale of the convertible preferred stock were first allocated to the fair value of the tranche liability with the remaining proceeds from the sale of the convertible preferred stock allocated to the Series B convertible preferred stock. The tranche liability was remeasured at each reporting period and upon the exercise of the obligation, with gains and losses arising from subsequent changes in its fair value recognized in other income and expense Preferred Stock Warrant Liability The Company accounted for the warrant to purchase Series A-1 convertible preferred stock as a liability as this warrant was a freestanding financial instrument that required the Company to transfer assets upon exercise. The warrant liability was initially recorded at fair value. The warrant liability was remeasured at each reporting period and upon the exercise of the applicable warrant, with gains and losses arising from subsequent changes in its fair value recognized in other income and expense Common Stock Warrants The Company assesses whether warrants issued require accounting as derivatives. The Company determined that its common stock warrants were (1) indexed to the Company’s own stock and (2) classified in stockholders’ equity in accordance with FASB ASC Topic 815, Derivatives and Hedging . As such, the Company concluded the warrants met the scope exception for determining whether the instruments require accounting as derivatives and should be classified in stockholders’ equity. In June 2021, several holders of warrants to purchase the Company’s common stock exercised their warrants and purchased a total of 137,446 shares of common stock at an exercise price of $4.47. On July 6, 2021, in connection with the closing of the Company’s IPO, the Company issued 178,847 shares of common stock in exchange for the 248,247 outstanding common stock warrants at an exercise price of $4.47 and there were no common stock warrants outstanding following this issuance. Research and Development Expenses Research and development expenses primarily consist of consultants and materials, biologic storage, salaries and other personnel-related expenses related to research and development activities and are expensed as incurred. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected on the balance sheets as prepaid or accrued expenses. The Company records accruals for estimated ongoing research costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies, including the phase or completion of events, invoices received and contracted costs. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company accrues and expenses costs for clinical trial activities performed by third parties based upon the work completed to date for each clinical trial in accordance with established agreements. The Company determines its costs through discussions with internal clinical stakeholders and outside service providers as to the progress or stage of completion of clinical trials or services and the contracted fee to be paid for such services. In the event advance payments are made to an outside service provider, the payments are recorded within prepaid expenses and other current assets on the Balance Sheet and subsequently recognized as research and development expense in the Statement of Operations when the associated services have been performed. As actual costs become known, the Company adjusts its estimates, liabilities and assets. Inputs used in the determination of estimates discussed above may vary from actual, which will result in adjustments to research and development expense in future periods. Stock-based Compensation The Company expenses stock-based compensation to employees, non-employees and board members over the requisite service period based on the estimated grant date fair value of the awards and actual forfeitures. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, which requires the use of a number of complex assumptions including the fair value of the common stock, expected volatility, risk-free interest rate, expected dividends, and the expected term of the option. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. Stock-based awards with graded-vesting schedules are recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. All stock-based compensation costs are recorded in research and development expense or general and administrative expense in the statements of operations and comprehensive loss based upon the respective employee’s or non-employee’s roles within the Company. Forfeitures are recorded as they occur. See also Note 9 below. Income Taxes Income taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse, and net operating loss (“NOL”) carryforwards and research and development (“R&D”) tax credit carryforwards. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has recorded a full valuation allowance to reduce its net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize some or all of its deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would increase income in the period such determination was made. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company has not recorded any liabilities related to uncertain tax positions as of December 31, 2022 and 2021. The Company’s policy is to record interest and penalties, if any, as part of income tax benefit. No interest or penalties were recorded during the years ended December 31, 2022 and 2021. Net Loss Per Share of Common Stock Basic net loss per share of common stock is calculated using the two-class method under which earnings are allocated to both common shares and participating securities based on their participation rights. Net loss attributable to common stockholders was not allocated to the convertible preferred stock as the holders of the convertible preferred stock did not have a contractual obligation to share in any losses. Basic net loss per share is calculated by dividing the net loss attributable to common shares by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. For the year ended December 31, 2022, potential common shares consisted of stock options. For the year ended December 31, 2021, potential common shares consisted of stock options and warrants to purchase common stock (using the treasury stock method), and the conversion of convertible preferred stock and the preferred warrant (using the if-converted method). See Note 12 below. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. Recently Adopted Accounting Pronouncements ASC 842 requires lessees to recognize the liabilities related to all leases, including operating leases, with a term greater than 12 months on the balance sheet and also requires lessees and lessors to disclose key information about their leasing transactions. The Company adopted this guidance on January 1, 2022, using the modified retrospective method and the Company elected the package of practical expedients upon transition, which retained the lease classification for leases that existed prior to the adoption of this guidance. The Company recorded both a right-of-use asset and a lease liability of approximately $0.2 million on its balance sheet upon the adoption of ASC 842. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted this guidance on January 1, 2022 with no material impact to the Company’s financial statements upon adoption. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was codified with its subsequent amendments as ASC 326. ASC 326 seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for the Company on January 1, 2023. The Company’s marketable securities portfolio consists entirely of available-for-sale debt securities and, as such, the adoption of this guidance did not have a material impact on its financial statements and disclosures upon adoption. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES The Company’s marketable securities consisted of the following (in thousands): December 31, 2022 Amortized Gross Gross Fair Value Available-for-sale securities, short-term Corporate debt securities $ 30,174 $ — $ (249) $ 29,925 Asset-backed securities 3,006 — (102) 2,904 U.S. treasury securities 15,032 — (357) 14,675 Total available-for-sale securities, short-term 48,212 — (708) 47,504 Available-for-sale securities, long-term Corporate debt securities 15,880 — (43) 15,837 Total available-for-sale securities, long-term 15,880 — (43) 15,837 Total available-for-sale securities $ 64,092 $ — $ (751) $ 63,341 December 31, 2021 Amortized Gross Gross Fair Value Available-for-sale securities, short-term Commercial paper $ 47,939 $ — $ — $ 47,939 Corporate debt securities 7,992 — (11) 7,981 Asset-backed securities 16,177 — (22) 16,155 Total available-for-sale securities, short-term 72,108 — (33) 72,075 Available-for-sale securities, long-term Corporate debt securities 16,816 — (103) 16,713 Asset-backed securities 3,013 — (25) 2,988 U.S. treasury securities 11,988 — (70) 11,918 Total available-for-sale securities, long-term 31,817 — (198) 31,619 Total available-for-sale securities $ 103,925 $ — $ (231) $ 103,694 As of December 31, 2022, the Company’s available-for-sale securities classified as short-term mature in one year or less and the Company’s available-for-sale securities classified as long-term mature within two years. Certain of the Company’s available-for-sale marketable securities that were in an unrealized loss position as of December 31, 2022 have been in a loss position for between 12 to 15 months; however, unrealized losses on available-for-sale securities as of December 31, 2022 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. Accordingly, no other-than-temporary impairment was recorded for the years ended December 31, 2022 and 2021. There were no realized gains or losses for the years ended December 31, 2022 and 2021. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows (in thousands): Fair value measurements at reporting date using Quoted Prices in Significant Other Significant Fair Value at Assets included in: Cash and cash equivalents Money market securities $ 129,100 $ — $ — $ 129,100 Marketable securities Corporate debt securities — 45,762 — 45,762 Asset-backed securities — 2,904 — 2,904 U.S. treasury securities — 14,675 — 14,675 Total fair value $ 129,100 $ 63,341 $ — $ 192,441 Fair value measurements at reporting date using Quoted Prices in Significant Other Significant Fair Value at Assets included in: Cash and cash equivalents Money market securities $ 121,162 $ — $ — $ 121,162 Marketable securities Commercial paper — 47,939 — 47,939 Corporate debt securities — 24,694 — 24,694 Asset-backed securities — 19,143 — 19,143 U.S. treasury securities — 11,918 — 11,918 Total fair value $ 121,162 $ 103,694 $ — $ 224,856 The fair value of the Company’s money market funds is determined using quoted market prices in active markets for identical assets. The fair value for the available-for-sale marketable securities is determined based on valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. Series B Convertible Preferred Stock Tranche Rights Liability The fair value for the tranche liability was estimated as a forward contract using a valuation model, calibrated at issuance. The valuation model at issuance estimated the implied value of the Series B stock as of the expected milestone date utilizing the probability of milestone achievement, expected timing of milestone achievement, and risk-free rate. The model was calibrated such that the value of the initial tranche and the forward contract were equal to the initial tranche proceeds at issuance. Subsequently, the fair value of the liability was discounted to the valuation date and adjusted for probability of the achievement of the milestone event. The calibrated valuation model was updated as of the end of each reporting period and in the Stay Private scenario utilized in the hybrid methodology as of June 17, 2021 (the date of the Milestone Closing, as further discussed in Note 7). Significant estimates and assumptions impacting fair value include the discount rate, expected time to the Milestone Closing, and probability of the Milestone Closing. The discount rate was equal to the risk-free rate commensurate with the estimated timing of the Milestone Closing. The following assumptions were used in the estimation of the fair value of the tranche liability as a forward contract as of each of the dates indicated: June 17, December 31, Risk-free interest rate 0.07% 0.12% Expected time to Milestone Closing (in years) 0.8 1.3 Probability of achievement of Milestone Closing 100% 65% For the other portion of the hybrid method used as of June 17, 2021, the fair value for the tranche liability was estimated based upon an allocation of the underlying equity value, which was determined using an IPO value as estimated through analysis of IPOs for comparable guideline companies, to arrive at a value per share in the IPO scenario. The estimated fair value of the tranche liability was $81.2 million and $5.0 million as of the Milestone Closing on June 17, 2021 and December 31, 2020, respectively. The significant increase in the June 17, 2021 valuation stemmed from both a shift in methodology from an option pricing method (“OPM”) to a Hybrid Model where the concluded value of the forward tranche was derived by the sum of the probability weighted present value of the forward tranche in the Stay Private and IPO scenarios (with the former including all other potential exit scenarios other than an imminent IPO), as well as the increase in the probability of achievement of the Milestone Closing. The resulting difference in estimated fair value was recognized as a change in fair value within other income in the accompanying statements of operations. The tranche liability was revalued each reporting period with the change in fair value recorded in the accompanying statements of operations through the issuance of the Milestone Shares on June 17, 2021. Following the Milestone Closing, the remaining tranche liability was reclassified to convertible preferred stock on the balance sheet. Series A-1 Convertible Preferred Stock Warrant Liability On October 19, 2018, the Company issued a ten-year warrant (the “Series A-1 Warrant”) to purchase up to an aggregate of 447,426 shares of Series A-1 convertible preferred stock at an exercise price of $2.794 on or before October 18, 2028. The warrant liability met the definition of a freestanding financial instrument, as it was legally detachable and separately exercisable from the initial closing of the Series A-1 convertible preferred stock. As such, it was revalued each reporting period with the change in fair value recorded in the accompanying statements of operations until the warrant was exercised on June 22, 2021. The fair value of the warrant liability was estimated using the OPM backsolve method as of December 31, 2020 and using a hybrid method, which included an OPM backsolve in the Stay Private scenario as of June 22, 2021. The following assumptions were used in the estimation of the fair value of the warrant liability using the OPM backsolve method as of each of the dates indicated: June 22, December 31, Risk-free interest rate 0.25% 0.13% Expected term (in years) 2.0 2.0 Expected volatility 90% 90% Expected dividend yield 0% 0% The hybrid method used to value the warrant liability at June 22, 2021 considered both the underlying equity value determined using the OPM backsolve method in a Stay Private scenario, as well as the underlying equity value that was determined using an expected IPO value as estimated through analysis of IPOs for comparable guideline companies, to arrive at a value per share in the IPO scenario. The underlying equity values from each approach were probability weighted based upon the expected likelihood of each scenario. The fair value of the warrant liability was estimated to be $12.02 and $0.85 as of June 22, 2021 and December 31, 2020, respectively. The following table provides a reconciliation of the tranche liability and warrant liability measured at fair value using Level 3 significant unobservable inputs (in thousands): Series A-1 Preferred Series B Tranche Total Balance, January 1, 2021 $ 380 $ 5,033 $ 5,413 Change in fair value 5,000 76,157 81,157 Settlement of tranche liability due to issuance of Milestone Shares — (81,190) (81,190) Settlement of warrant liability upon exercise of warrant (5,380) — (5,380) Balance, December 31, 2021 $ — $ — $ — |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid insurance $ 1,106 $ 1,514 Research and development service agreements 1,077 2,591 Prepaid raw materials 199 83 Dues and subscriptions 105 96 Other 237 140 Total prepaid expenses and other current assets $ 2,724 $ 4,424 Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2022 2021 Research and development $ 1,211 $ 2,476 Compensation and other employee liabilities 2,008 1,102 Legal — 130 Other 131 204 Total accrued expenses and other current liabilities $ 3,350 $ 3,912 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has been subleasing space in Carmel, Indiana since March 1, 2020. The Company executed a new sublease for this space that was effective on February 1, 2021 and expires on August 30, 2023. The sublease does not provide the Company with any renewal options. The Company allows others to sublease a portion of the space from the Company for less than a one-year period. The Company recognizes sublease income in other income (expense) on its statements of operations and comprehensive loss. The Company expects to recognize approximately $9,000 in sublease income during 2023. On September 28, 2022, the Company entered into a lease for office space in Charlottesville, Virginia with a lease term of 15 months beginning October 1, 2022. On December 1, 2022, the Company entered into a lease for additional office space in the same building in Charlottesville, Virginia with a lease term of 12 months beginning on January 1, 2023. There is no automatic renewal for either of the Charlottesville, Virginia leases, but any holdover tenancy shall be on a month-to-month basis thereafter. The following table summarizes quantitative information about the Company’s operating leases for the year ended December 31, 2022 (in thousands): Operating leases Operating lease cost $ 154 Less: sublease income (43) Operating lease expense 111 Short-term lease rent expense 13 Total rent expense $ 124 Supplemental information related to leases for the year ended December 31, 2022 was as follows (dollar amounts in thousands): Operating cash flows from operating leases $154 Right-of-use assets obtained in exchange for operating lease liabilities $242 Weighted-average remaining lease term – operating leases (in years) 0.7 Weighted-average discount rate – operating leases 10.0% As of December 31, 2022, the present value of maturities of the Company’s operating lease liabilities were as follows (in thousands): Year ended December 31, 2023 $ 109 Less: present value discount (4) Operating lease liabilities $ 105 Prior to the adoption of ASC 842, and for the year ended December 31, 2021, the Company recognized rent expense on a straight-line basis over the lease period and recorded deferred rent expense for rent expense incurred but not yet paid. During the year ended December 31, 2021, the Company recognized total rent expense of approximately $147,000, and recognized sublease income of approximately $66,000. |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Preferred Stock Tranche Liability and Warrant Liability [Abstract] | |
Convertible Preferred Stock | CONVERTIBLE PREFERRED STOCK Convertible Preferred Stock On June 9, 2021, the Board and the holders of more than 67% of the then-outstanding shares of Series B convertible preferred stock held by the Series B purchasers (the “Requisite Investors”) elected to waive the achievement of the milestone subject to the terms and conditions of the Series B Preferred Stock Purchase Agreement (the “Series B Agreement”) and consummate the subsequent closing (the “Milestone Closing”). On June 17, 2021, the Milestone Closing for the Series B convertible preferred stock occurred, resulting in the sale of 7,908,027 shares of Series B convertible preferred stock at $3.80 per share for gross proceeds of $30.0 million, bringing the total number of Series B convertible preferred shares outstanding to 19,770,070. See “ Series B Convertible Preferred Stock Tranche Rights Liability ” above in Note 4. On June 22, 2021, a warrant to purchase 447,426 shares of Series A-1 convertible preferred stock at an exercise price of $2.794 per share was exercised (see “Series A-1 Convertible Preferred Stock Warrant Liability” above in Note 4), bringing the total number of Series A-1 convertible preferred shares outstanding to 7,985,305. Conversion rights Shares of all series of convertible preferred stock were convertible into such number of fully paid and non-assessable shares of common stock as determined by dividing the original issuance price for such series by the applicable conversion price for such series then in effect. The initial conversion price per share for each series of convertible preferred stock was the original issue price applicable to such series as shown in the table above, subject to adjustment in the event of certain dilutive issuances. The convertible preferred stock original issuance price and conversion price were each subject to adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the convertible preferred stock. Each share of convertible preferred stock was convertible at any time at the option of the holder at the conversion ratio then in effect. In addition, each share of convertible preferred stock was to be automatically converted into common stock at the conversion ratio then in effect upon either (a) the closing of an underwritten public offering resulting in gross proceeds to the Company of at least $75 million and at a price per share equal to at least two times the Series B original issuance price, or $7.60 (subject to adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series B convertible preferred stock), or (b) the date and time, or the occurrence of an event, specified in such vote or written consent of at least 67% of the holders of the then-outstanding shares of Series B convertible preferred stock. On July 6, 2021, in connection with the closing of the IPO, 477,297 shares of Series A, 7,985,305 shares of Series A-1, and 19,770,070 shares of Series B convertible preferred stock, respectively, automatically converted into an equal number of shares of common stock. There were no shares of convertible preferred stock outstanding as of December 31, 2022 or 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Authorized Shares On July 6, 2021, the Company issued 9,999,999 shares of common stock in the IPO, and on July 8, 2021, the Company issued an additional 1,499,999 shares of common stock that were purchased by the underwriters pursuant to the underwriters’ option to purchase additional shares at the public offering price less underwriting discounts and commissions. The price to the public for each share was $16.00. The aggregate net proceeds from the Company’s IPO, after underwriting discounts and commissions and other offering expenses of $15.4 million, were $168.6 million. Effective upon the closing of the IPO on July 6, 2021, the Company amended its certificate of incorporation such that the total number of shares of all classes of capital stock authorized to be issued was increased to 310,000,000, with 10,000,000 shares designated as preferred stock with a par value of $0.0001, and 300,000,000 shares designated as common stock with a par value of $0.0001. Common Stock As of December 31, 2022, the Company’s Amended and Restated Certificate of Incorporation authorized the issuance of 300,000,000 shares of common stock, $0.0001 par value per share. Each share of common stock is entitled to one voting right. Shelf Registration and At-The-Market Equity Offering On July 1, 2022, the Company filed a shelf registration statement on Form S-3 (the “Registration Statement”). Pursuant to the Registration Statement, the Company may offer and sell securities having an aggregate public offering price of up to $200.0 million. In connection with the filing of the Registration Statement, the Company also entered into a sales agreement with BofA Securities, Inc. and Stifel, Nicolaus & Company, Incorporated (the “Sales Agents”), as sales agents, pursuant to which the Company may issue and sell shares of its common stock for an aggregate offering price of up to $50.0 million under an at-the-market offering program (the “ATM”), which is included in the $200.0 million of securities that may be offered pursuant to the Registration Statement. Pursuant to the ATM, the Company will pay the Sales Agents a commission rate of up to 3.0% of the gross proceeds from the sale of any shares of common stock. The Company is not obligated to make any sales of shares of its common stock under the ATM. In October 2022, the Company issued 422,160 shares of common stock under the ATM for net proceeds of $3.8 million, at a weighted average price of $10.06 per share. Common Stock Warrants In accordance with ASC 815, the common stock warrants issued in 2014 through 2017 did not meet the definition of a derivative and were classified in stockholders’ equity (deficit) in the consolidated balance sheets. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION 2021 Equity Incentive Plan The 2021 Equity Incentive Plan (the “2021 Plan”), which provides for the grant of incentive stock options to employees, and the grant of nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards and other forms of stock awards to employees, directors and consultants, became effective on June 30, 2021. The 2021 Plan is a successor to the Company’s Amended and Restated Stock Performance Plan that was adopted by the Board and stockholders on April 8, 2013 (as amended from time to time, most recently on November 20, 2020, the “2013 Plan”). Following the effectiveness of the 2021 Plan, no further grants may be made under the 2013 Plan; however, any outstanding equity awards granted under the 2013 Plan continue to be governed by the 2013 Plan. As of December 31, 2022, there were 3,326,220 options outstanding under the 2013 Plan. Initially, the maximum number of shares of the Company’s common stock that may be issued under the 2021 Plan was 7,698,282 shares, which is the sum of (1) 3,550,000 new shares, plus (2) 667,104 shares that remained available for issuance under the Company’s 2013 Plan at the time the 2021 Plan became effective, plus (3) any shares subject to outstanding stock options or other stock awards that were granted under the 2013 Plan that, on or after the 2021 Plan became effective, terminate or expire prior to exercise or settlement, are settled in cash, are forfeited or repurchased because of the failure to vest, or are reacquired or withheld to satisfy a tax withholding obligation or the purchase or exercise price in accordance with the terms of the 2013 Plan. In addition, the number of shares of the Company’s common stock reserved for issuance under the 2021 Plan will automatically increase on January 1 of each calendar year, starting on January 1, 2022 through January 1, 2031, in an amount equal to 5% of the total number of shares of the Company’s common stock outstanding on December 31 of the fiscal year before the date of each automatic increase, or a lesser number of shares determined by the Board prior to the applicable January 1. On January 1, 2022, the Board increased the number of shares of common stock reserved for issuance under the 2021 Plan by 2,023,663 shares. The maximum number of shares of the Company’s common stock that may be issued upon the exercise of incentive stock options under the 2021 Plan is 12,000,000. As of December 31, 2022, 9,721,945 shares were authorized for issuance under the 2021 Plan and 3,976,237 shares remained available for issuance under the 2021 Plan. Stock Options The Black-Scholes option-pricing model was used to estimate the fair value of stock options granted during the years ended December 31, 2022 and 2021 with the following weighted average assumptions: Year Ended December 31, 2022 2021 Risk-free interest rate 1.7% – 4.2% 0.4% – 1.3% Expected term (in years) 5.8 – 6.1 5.3 – 6.1 Expected volatility 90% 90% Expected dividend yield 0% 0% The weighted average grant date fair value of options granted during the years ended December 31, 2022 and 2021 was $3.79 per share and $1.93 per share, respectively. Prior to the Company’s IPO, the fair value of the Company’s common stock underlying the stock options was historically determined by the Board with assistance from management and, occasionally with input from an independent third-party valuation firm. For the year ended December 31, 2020, management engaged an independent third-party valuation firm to provide an estimate of the fair value of its common stock, which was utilized as an input to the Company’s Black-Scholes options pricing model for stock options awarded during the first quarter of 2021. The December 31, 2020 fair value of common stock was determined considering a number of objective and subjective factors, including valuations of comparable companies, sales of convertible preferred stock, operating and financial performance, the lack of liquidity of the Company’s common stock and the general and industry-specific economic outlook. The fair value of the Company’s common stock as of June 30, 2021 was estimated based upon the per share offering price of the Company’s common stock to the public in its IPO which closed on July 6, 2021. The June 30, 2021 fair value for the Company’s common stock was utilized as an input for options granted by the Company to its Board on June 30, 2021, which was immediately prior to the IPO. As of June 30, 2021 and December 31, 2020, management estimated the fair value of a share of common stock to be $16.00 and $0.83, respectively. As of December 31, 2020, management, with the assistance of an independent third-party valuation firm, estimated the fair value of a share of common stock utilizing the following assumptions: Risk-free interest rate 0.13% Expected time to liquidity event (in years) 2.0 Expected volatility 90% Expected dividend yield 0% The stock options granted after December 31, 2017 vest monthly over a range of 12 to 36 months or vest monthly over a total of 48 months following a one-year cliff and all have a ten-year contractual term. Stock options granted prior to December 31, 2017 were either fully vested upon grant or generally vested monthly over a range of three The following table reflects summarized stock option activity: Stock Options Weighted Average Weighted Average Aggregate Intrinsic Outstanding at January 1, 2022 3,835,618 $ 2.51 Granted 1,999,050 $ 5.04 Exercised (131,626) $ 0.93 Forfeited (79,872) $ 6.35 Expired (12,277) $ 16.00 Outstanding at December 31, 2022 5,610,893 $ 3.36 8.1 $ 14,980 Vested and exercisable at December 31, 2022 2,188,874 $ 2.03 7.1 $ 8,714 The intrinsic value of stock options exercised during the years ended December 31, 2022 and 2021was approximately $0.6 million and $0.1 million. As of December 31, 2022, total unrecognized compensation costs related to unvested stock option awards granted was approximately $8.9 million, which the Company expects to recognize over a weighted-average period of approximately 2.6 years. The Company recorded stock-based compensation expense related to stock options in the following expense categories of its statements of operations and comprehensive loss for the periods shown (in thousands): Year Ended December 31, 2022 2021 General and administrative $ 2,163 $ 690 Research and development 898 232 Total stock-based compensation $ 3,061 $ 922 Employee Stock Purchase Plan The 2021 Employee Stock Purchase Plan (the “ESPP”), which permits employees to purchase shares of the Company’s common stock, became effective on June 30, 2021. A total of 375,000 shares of the Company’s common stock were initially reserved for sale under the ESPP. The number of shares of the Company’s common stock reserved for issuance will automatically increase on January 1 of each calendar year, beginning on January 1, 2022 through January 1, 2031, by the lesser of (1) 1% of the total number of shares of the Company’s common stock outstanding on the last day of the fiscal year before the date of the automatic increase, and (2) 800,000 shares; provided that before the date of any such increase, the Board may determine that such increase will be less than the amount set forth in clauses (1) and (2). As of December 31, 2022, there are 779,732 shares authorized for issuance under the ESPP and have been no purchases of shares under the ESPP. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES The Company has not recorded any tax provision or benefit for federal income taxes for the years ended December 31, 2022 and 2021. Current income taxes are based upon the year’s income taxable for federal and state tax reporting purposes. Deferred income taxes (benefits) are provided for certain income and expenses, which are recognized in different periods for tax and financial reporting purposes. Deferred tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the period in which the differences are expected to affect taxable income, and NOL and R&D tax credit carryforwards. A reconciliation of the expected tax computed at the U.S. statutory federal income tax rate to the total benefit for income taxes for the years ended December 31, 2022 and 2021 is as follows: Year Ended December 31, 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % State tax, net of federal benefit 2.7 0.7 Non-deductible stock compensation (0.5) — Rate change (1.1) (0.2) Change in fair value of tranche and warrant liabilities — (16.9) Non-deductible expense — (0.1) R&D credit — (0.3) Other — 0.1 Change in valuation allowance (22.1) (4.3) Income tax provision (benefit) 0.0 % 0.0 % Significant components of the Company’s deferred tax assets as of December 31, 2022 and 2021 were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss $ 13,125 $ 10,819 R&D credit 1,381 1,381 Capitalized R&D 6,788 — Stock compensation 675 263 Accruals and other temporary differences 179 58 Gross deferred tax assets 22,148 12,521 Valuation allowance (22,118) (12,520) Total deferred tax assets 30 1 Deferred tax liabilities: Depreciation (30) (1) Total deferred tax liabilities (30) (1) Net deferred tax assets $ — $ — In assessing the realizability of deferred tax assets as of December 31, 2022 and 2021, management considered whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or the NOL carryforwards and R&D tax credit carryforwards will be used. The Company has determined that it is not more likely than not that its deferred tax assets will be realized. Accordingly, a valuation allowance for the full amount of the net deferred tax assets has been recorded as of December 31, 2022 and 2021. The change in the valuation allowance as of December 31, 2022 from December 31, 2021 is due to the pretax loss incurred for the year ended December 31, 2022. As of December 31, 2022, the Company had approximately $52.7 million of NOL carryforwards available for federal tax purposes which a portion begins to expire on December 31, 2028. As a result of the Tax Act of 2017, for U.S. income tax purposes, NOLs generated prior to December 31, 2017 can still be carried forward for up to 20 years, but NOLs generated after December 31, 2017 carryforward indefinitely, but are limited to 80% utilization against taxable income. Of the total federal NOL of $52.7 million, $6.4 million will begin to expire in 2028 and $46.2 million will not expire. As of December 31, 2022, the Company also had approximately $61.3 million of state NOL carryforwards. The state NOLs begin to expire on December 31, 2028. As of December 31, 2022, the Company had approximately $1.4 million of R&D credit carryforwards available for federal tax purposes, which begin to expire on December 31, 2023. Utilization of the NOL and R&D credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state provisions. These ownership changes may limit the amount of NOL and R&D credit carryforwards that can be used annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50% of the outstanding stock of a company by certain stockholders. The Company has not completed a formal analysis of the potential impact of Section 382 on its deferred tax assets as of December 31, 2022. Until this analysis has been completed, the Company has not adjusted any of its deferred tax assets, including NOLs or R&D credits. The Company will reassess the amount of NOLs and credits subject to limitation under Section 382 when a study is complete. Due to the existence of the valuation allowance, future changes in the deferred tax assets related to these tax attributes will not impact the Company’s effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. In November 2022, the Company entered into a License Agreement (“Agreement”) with Lonza Sales AG (“Lonza”) for a worldwide non-exclusive license to use certain Lonza technology in its research and development and drug manufacturing activities. Under the terms of the Agreement, in consideration of the licenses and consents granted to the Company, the Company is required to make an annual payment to Lonza (i) in Swiss Francs in the low six-digits where the Company manufactures ACU193 and (ii) in Swiss Francs in the mid six-digits per sublicense upon the anniversary date of the Agreement where a third party manufactures ACU193. In addition, if the Company generates Net Sales, as defined in the Agreement, of ACU193, the Company will be obligated to pay Lonza a royalty of low single digits based upon what entity manufactures ACU193 at that time. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NET LOSS PER SHARE The Company computes net loss per common share using the two-class method required for participating securities. Basic and diluted loss per share was the same for each period presented as the inclusion of all potential common stock outstanding would have been anti-dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per common share, because to do so would be anti-dilutive, include shares issuable upon the exercise of stock options of 5,610,893 and 3,835,618 for the years ended December 31, 2022 and 2021, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT Failure of Silicon Valley Bank On March 10, 2023, the Company became aware that the Federal Deposit Insurance Corporation (“FDIC”) issued a press release (the “FDIC press release”) stating that Silicon Valley Bank, Santa Clara, California (“SVB”) was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. On March 12, 2023, the Treasury Department announced that depositors of SVB would have access to all of their money starting March 13, 2023. The Company had approximately $1.8 million cash deposited with SVB as of December 31, 2022. On March 14, 2023, the Company regained access to the full amount of its cash that was deposited with SVB. |
Basis of Presentation, Summar_2
Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the Company’s financial position, and the results of its operations and its cash flows. |
Emerging Growth Company | Emerging Growth CompanyFrom time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial statements upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended, the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of expenses during the reporting periods. These estimates and assumptions are based on the Company’s historical experience, and on various other factors that management believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. Accrued clinical trial expenses are presented as a separate line on the balance sheets and statements of cash flows, whereas these accrued expenses were previously included in accrued expenses and other current liabilities. These reclassifications had no effect on the reported results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist of funds held in several money market accounts. |
Marketable Securities | Marketable Securities The Company’s marketable securities portfolio consists primarily of investments in money market funds, commercial paper, asset-backed securities, U.S. treasury securities and short-term highly liquid, high credit quality corporate debt securities. The Company considers its marketable securities to be available-for-sale. Available-for-sale securities are classified as cash equivalents, or as short-term or long-term marketable securities based on the maturity date at time of purchase and their availability to meet current operating requirements. Available-for-sale securities that mature in three months or less from the date of purchase are classified as cash equivalents. Available-for-sale securities, excluding cash equivalents, that mature in one year or less are classified as short-term marketable securities and those that mature in more than one year are classified as long-term. Securities that are classified as available-for-sale are measured at fair value; see “ Fair Value of Financial Instruments |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company maintains deposits in financial institutions in excess of government insured limits. Management believes that the Company is not exposed to significant credit risk as the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company has not experienced any losses due to credit risk on such accounts during any of the periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial assets and liabilities are accounted for in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels: Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the instrument’s anticipated life. Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgement. Accordingly, the degree of judgement exercised by management in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Property and Equipment | Property and Equipment Property and equipment consists primarily of computer equipment and furniture and fixtures and is stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which is generally three years for computer-related assets and five years for furniture. |
Leases | Leases Effective as of January 1, 2022, the Company accounts for its leases under ASC 842, Leases . Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the balance sheet as both a right-of-use asset and a lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and right-of-use assets are amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset results in straight-line rent expense over the lease term. Variable lease expenses are recorded when incurred and not included in the measurement of right-of-use assets and lease liabilities. ASC 842 provides practical expedients for an entity’s ongoing accounting. In calculating right-of-use assets and lease liabilities, the Company has elected to combine lease and non-lease components. Additionally, the Company has elected to apply the practical expedient related to short-term leases (i.e., leases having initial terms of 12 months or less at commencement date) as an accounting policy election. For short-term leases, the Company will not recognize a right-of-use asset or lease liability, but instead will recognize lease payments as an expense on a straight-line basis over the lease term. Prior to the adoption of ASC 842 on January 1, 2022, the Company accounted for its leases under ASC 840, Leases. |
Convertible Preferred Stock | Convertible Preferred Stock The Company recorded shares of convertible preferred stock at their respective fair values on the dates of issuance, net of issuance costs. The Company applied the guidance in ASC 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities , and therefore classified the Series A, Series A-1 and Series B convertible preferred stock as mezzanine equity. The convertible preferred stock was recorded outside of stockholders’ deficit because, in the event of certain deemed liquidation events considered not solely within the Company’s control, such as a merger, acquisition and sale of all or substantially all of the Company’s assets, the convertible preferred stock would have become redeemable at the option of the holders. In the event of a change of control of the Company, proceeds received from the sale of such shares would have been distributed in accordance with the corresponding liquidation preferences. The Company did not adjust the carrying values of the convertible preferred stock to the deemed liquidation values of such shares since a liquidation event was not probable at any of the reporting dates. As mentioned above in Note 1, in connection with the closing of the IPO, all of the outstanding shares of Series A, Series A-1 and Series B convertible preferred stock automatically converted into an equal number of shares of common stock on July 6, 2021. |
Preferred Stock Tranche Rights Liability | Preferred Stock Tranche Rights Liability The Company determined that its obligation to issue, and the Company’s investors’ right to purchase, additional shares of Series B convertible preferred stock pursuant to a subsequent closing, (deemed the “Milestone Closing” in Note 7) represented a freestanding financial instrument (the “tranche liability”), as it was legally detachable and separately exercisable from the initial closing of the Series B convertible preferred stock. The tranche liability was initially recorded at fair value. The proceeds from the sale of the convertible preferred stock were first allocated to the fair value of the tranche liability with the remaining proceeds from the sale of the convertible preferred stock allocated to the Series B convertible preferred stock. The tranche liability was remeasured at each reporting period and upon the exercise of the obligation, with gains and losses arising from subsequent changes in its fair value recognized in other income and expense |
Preferred Stock Warrant Liability | Preferred Stock Warrant Liability The Company accounted for the warrant to purchase Series A-1 convertible preferred stock as a liability as this warrant was a freestanding financial instrument that required the Company to transfer assets upon exercise. The warrant liability was initially recorded at fair value. The warrant liability was remeasured at each reporting period and upon the exercise of the applicable warrant, with gains and losses arising from subsequent changes in its fair value recognized in other income and expense |
Common Stock Warrants | Common Stock Warrants The Company assesses whether warrants issued require accounting as derivatives. The Company determined that its common stock warrants were (1) indexed to the Company’s own stock and (2) classified in stockholders’ equity in accordance with FASB ASC Topic 815, Derivatives and Hedging |
Research and Development Expenses | Research and Development Expenses Research and development expenses primarily consist of consultants and materials, biologic storage, salaries and other personnel-related expenses related to research and development activities and are expensed as incurred. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected on the balance sheets as prepaid or accrued expenses. The Company records accruals for estimated ongoing research costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies, including the phase or completion of events, invoices received and contracted costs. Clinical trial costs are a significant component of research and development expenses and include costs associated with third-party contractors. The Company accrues and expenses costs for clinical trial activities performed by third parties based upon the work completed to date for each clinical trial in accordance with established agreements. The Company determines its costs through discussions with internal clinical stakeholders and outside service providers as to the progress or stage of completion of clinical trials or services and the contracted fee to be paid for such services. In the event advance payments are made to an outside service provider, the payments are recorded within prepaid expenses and other current assets on the Balance Sheet and subsequently recognized as research and development expense in the Statement of Operations when the associated services have been performed. As actual costs become known, the Company adjusts its estimates, liabilities and assets. Inputs used in the determination of estimates discussed above may vary from actual, which will result in adjustments to research and development expense in future periods. |
Stock-based Compensation | Stock-based Compensation The Company expenses stock-based compensation to employees, non-employees and board members over the requisite service period based on the estimated grant date fair value of the awards and actual forfeitures. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, which requires the use of a number of complex assumptions including the fair value of the common stock, expected volatility, risk-free interest rate, expected dividends, and the expected term of the option. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. Stock-based awards with graded-vesting schedules are recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award. All stock-based compensation costs are recorded in research and development expense or general and administrative expense in the statements of operations and comprehensive loss based upon the respective employee’s or non-employee’s roles within the Company. Forfeitures are recorded as they occur. |
Income Taxes | Income Taxes Income taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse, and net operating loss (“NOL”) carryforwards and research and development (“R&D”) tax credit carryforwards. Valuation allowances are provided if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has recorded a full valuation allowance to reduce its net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize some or all of its deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would increase income in the period such determination was made. |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock Basic net loss per share of common stock is calculated using the two-class method under which earnings are allocated to both common shares and participating securities based on their participation rights. Net loss attributable to common stockholders was not allocated to the convertible preferred stock as the holders of the convertible preferred stock did not have a contractual obligation to share in any losses. Basic net loss per share is calculated by dividing the net loss attributable to common shares by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. For the year ended December 31, 2022, potential common shares consisted of stock options. For the year ended December 31, 2021, potential common shares consisted of stock options and warrants to purchase common stock (using the treasury stock method), and the conversion of convertible preferred stock and the preferred warrant (using the if-converted method). |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASC 842 requires lessees to recognize the liabilities related to all leases, including operating leases, with a term greater than 12 months on the balance sheet and also requires lessees and lessors to disclose key information about their leasing transactions. The Company adopted this guidance on January 1, 2022, using the modified retrospective method and the Company elected the package of practical expedients upon transition, which retained the lease classification for leases that existed prior to the adoption of this guidance. The Company recorded both a right-of-use asset and a lease liability of approximately $0.2 million on its balance sheet upon the adoption of ASC 842. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The Company adopted this guidance on January 1, 2022 with no material impact to the Company’s financial statements upon adoption. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which was codified with its subsequent amendments as ASC 326. ASC 326 seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The amendments require an entity to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects current expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for the Company on January 1, 2023. The Company’s marketable securities portfolio consists entirely of available-for-sale debt securities and, as such, the adoption of this guidance did not have a material impact on its financial statements and disclosures upon adoption. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Summary of Marketable Securities | The Company’s marketable securities consisted of the following (in thousands): December 31, 2022 Amortized Gross Gross Fair Value Available-for-sale securities, short-term Corporate debt securities $ 30,174 $ — $ (249) $ 29,925 Asset-backed securities 3,006 — (102) 2,904 U.S. treasury securities 15,032 — (357) 14,675 Total available-for-sale securities, short-term 48,212 — (708) 47,504 Available-for-sale securities, long-term Corporate debt securities 15,880 — (43) 15,837 Total available-for-sale securities, long-term 15,880 — (43) 15,837 Total available-for-sale securities $ 64,092 $ — $ (751) $ 63,341 December 31, 2021 Amortized Gross Gross Fair Value Available-for-sale securities, short-term Commercial paper $ 47,939 $ — $ — $ 47,939 Corporate debt securities 7,992 — (11) 7,981 Asset-backed securities 16,177 — (22) 16,155 Total available-for-sale securities, short-term 72,108 — (33) 72,075 Available-for-sale securities, long-term Corporate debt securities 16,816 — (103) 16,713 Asset-backed securities 3,013 — (25) 2,988 U.S. treasury securities 11,988 — (70) 11,918 Total available-for-sale securities, long-term 31,817 — (198) 31,619 Total available-for-sale securities $ 103,925 $ — $ (231) $ 103,694 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows (in thousands): Fair value measurements at reporting date using Quoted Prices in Significant Other Significant Fair Value at Assets included in: Cash and cash equivalents Money market securities $ 129,100 $ — $ — $ 129,100 Marketable securities Corporate debt securities — 45,762 — 45,762 Asset-backed securities — 2,904 — 2,904 U.S. treasury securities — 14,675 — 14,675 Total fair value $ 129,100 $ 63,341 $ — $ 192,441 Fair value measurements at reporting date using Quoted Prices in Significant Other Significant Fair Value at Assets included in: Cash and cash equivalents Money market securities $ 121,162 $ — $ — $ 121,162 Marketable securities Commercial paper — 47,939 — 47,939 Corporate debt securities — 24,694 — 24,694 Asset-backed securities — 19,143 — 19,143 U.S. treasury securities — 11,918 — 11,918 Total fair value $ 121,162 $ 103,694 $ — $ 224,856 |
Fair Value Measurement Inputs and Valuation Techniques | The following assumptions were used in the estimation of the fair value of the tranche liability as a forward contract as of each of the dates indicated: June 17, December 31, Risk-free interest rate 0.07% 0.12% Expected time to Milestone Closing (in years) 0.8 1.3 Probability of achievement of Milestone Closing 100% 65% June 22, December 31, Risk-free interest rate 0.25% 0.13% Expected term (in years) 2.0 2.0 Expected volatility 90% 90% Expected dividend yield 0% 0% As of December 31, 2020, management, with the assistance of an independent third-party valuation firm, estimated the fair value of a share of common stock utilizing the following assumptions: Risk-free interest rate 0.13% Expected time to liquidity event (in years) 2.0 Expected volatility 90% Expected dividend yield 0% |
Summary of the Tranche Liability and Warrant Liability Measured at Fair Value using Level 3 Significant Unobservable Inputs | The following table provides a reconciliation of the tranche liability and warrant liability measured at fair value using Level 3 significant unobservable inputs (in thousands): Series A-1 Preferred Series B Tranche Total Balance, January 1, 2021 $ 380 $ 5,033 $ 5,413 Change in fair value 5,000 76,157 81,157 Settlement of tranche liability due to issuance of Milestone Shares — (81,190) (81,190) Settlement of warrant liability upon exercise of warrant (5,380) — (5,380) Balance, December 31, 2021 $ — $ — $ — |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Financial Information [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid insurance $ 1,106 $ 1,514 Research and development service agreements 1,077 2,591 Prepaid raw materials 199 83 Dues and subscriptions 105 96 Other 237 140 Total prepaid expenses and other current assets $ 2,724 $ 4,424 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): December 31, 2022 2021 Research and development $ 1,211 $ 2,476 Compensation and other employee liabilities 2,008 1,102 Legal — 130 Other 131 204 Total accrued expenses and other current liabilities $ 3,350 $ 3,912 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease, Cost | The following table summarizes quantitative information about the Company’s operating leases for the year ended December 31, 2022 (in thousands): Operating leases Operating lease cost $ 154 Less: sublease income (43) Operating lease expense 111 Short-term lease rent expense 13 Total rent expense $ 124 Supplemental information related to leases for the year ended December 31, 2022 was as follows (dollar amounts in thousands): Operating cash flows from operating leases $154 Right-of-use assets obtained in exchange for operating lease liabilities $242 Weighted-average remaining lease term – operating leases (in years) 0.7 Weighted-average discount rate – operating leases 10.0% |
Summary of Lessee, Operating Lease, Liability, Maturity | As of December 31, 2022, the present value of maturities of the Company’s operating lease liabilities were as follows (in thousands): Year ended December 31, 2023 $ 109 Less: present value discount (4) Operating lease liabilities $ 105 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Assumptions Used for Valuation of Fair Value of Stock Options | The Black-Scholes option-pricing model was used to estimate the fair value of stock options granted during the years ended December 31, 2022 and 2021 with the following weighted average assumptions: Year Ended December 31, 2022 2021 Risk-free interest rate 1.7% – 4.2% 0.4% – 1.3% Expected term (in years) 5.8 – 6.1 5.3 – 6.1 Expected volatility 90% 90% Expected dividend yield 0% 0% |
Fair Value Measurement Inputs and Valuation Techniques | The following assumptions were used in the estimation of the fair value of the tranche liability as a forward contract as of each of the dates indicated: June 17, December 31, Risk-free interest rate 0.07% 0.12% Expected time to Milestone Closing (in years) 0.8 1.3 Probability of achievement of Milestone Closing 100% 65% June 22, December 31, Risk-free interest rate 0.25% 0.13% Expected term (in years) 2.0 2.0 Expected volatility 90% 90% Expected dividend yield 0% 0% As of December 31, 2020, management, with the assistance of an independent third-party valuation firm, estimated the fair value of a share of common stock utilizing the following assumptions: Risk-free interest rate 0.13% Expected time to liquidity event (in years) 2.0 Expected volatility 90% Expected dividend yield 0% |
Summary of Stock Option Activity | The following table reflects summarized stock option activity: Stock Options Weighted Average Weighted Average Aggregate Intrinsic Outstanding at January 1, 2022 3,835,618 $ 2.51 Granted 1,999,050 $ 5.04 Exercised (131,626) $ 0.93 Forfeited (79,872) $ 6.35 Expired (12,277) $ 16.00 Outstanding at December 31, 2022 5,610,893 $ 3.36 8.1 $ 14,980 Vested and exercisable at December 31, 2022 2,188,874 $ 2.03 7.1 $ 8,714 |
Summary of Share-Based Compensation Expense Related to Stock Options | The Company recorded stock-based compensation expense related to stock options in the following expense categories of its statements of operations and comprehensive loss for the periods shown (in thousands): Year Ended December 31, 2022 2021 General and administrative $ 2,163 $ 690 Research and development 898 232 Total stock-based compensation $ 3,061 $ 922 |
Income Taxes (Table)
Income Taxes (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected tax computed at the U.S. statutory federal income tax rate to the total benefit for income taxes for the years ended December 31, 2022 and 2021 is as follows: Year Ended December 31, 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % State tax, net of federal benefit 2.7 0.7 Non-deductible stock compensation (0.5) — Rate change (1.1) (0.2) Change in fair value of tranche and warrant liabilities — (16.9) Non-deductible expense — (0.1) R&D credit — (0.3) Other — 0.1 Change in valuation allowance (22.1) (4.3) Income tax provision (benefit) 0.0 % 0.0 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets as of December 31, 2022 and 2021 were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss $ 13,125 $ 10,819 R&D credit 1,381 1,381 Capitalized R&D 6,788 — Stock compensation 675 263 Accruals and other temporary differences 179 58 Gross deferred tax assets 22,148 12,521 Valuation allowance (22,118) (12,520) Total deferred tax assets 30 1 Deferred tax liabilities: Depreciation (30) (1) Total deferred tax liabilities (30) (1) Net deferred tax assets $ — $ — |
Description of Organization a_2
Description of Organization and Business Operations - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 08, 2021 shares | Jul. 06, 2021 USD ($) $ / shares shares | Jun. 23, 2021 | Oct. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Reverse stock split, conversion ratio | 0.671 | |||||
Common stock, shares, outstanding, increase (decrease) post transaction (in shares) | 39,911,517 | |||||
Accumulated deficit | $ | $ 170,427 | $ 127,571 | ||||
Working capital | $ | 172,500 | 193,500 | ||||
Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, stock issuance costs | $ | $ 412 | 15,445 | ||||
Common Stock Warrants | Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of securities called by warrants or rights (in shares) | 178,847 | |||||
Series A Convertible Preferred Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of stock, shares converted (in shares) | 477,297 | |||||
Series A-1 Convertible Preferred Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Conversion of stock, shares converted (in shares) | 7,985,305 | |||||
Series B Convertible Preferred Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, stock issuance costs | $ | $ 16 | |||||
Conversion of stock, shares converted (in shares) | 19,770,070 | |||||
Initial Public Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 9,999,999 | |||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 16 | |||||
Sale of stock, stock issuance costs | $ | $ 15,400 | |||||
Sale of stock, consideration received on transaction | $ | $ 168,600 | |||||
Over-Allotment Option | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 1,499,999 | |||||
At The Market Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 422,160 | |||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 10.06 | |||||
Sale of stock, consideration received on transaction | $ | $ 3,800 |
Basis of Presentation, Summar_3
Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Jul. 06, 2021 $ / shares shares | Jun. 30, 2021 $ / shares shares | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 USD ($) shares | Jan. 01, 2022 USD ($) | Jul. 07, 2021 shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash equivalents | $ 129,100,000 | $ 121,200,000 | ||||
Deferred tax assets, net | 0 | 0 | ||||
Uncertain tax positions | 0 | 0 | ||||
Uncertain tax positions, interest or penalties recorded | $ 0 | 0 | ||||
Number of operating segments | segment | 1 | |||||
Right-of-use asset | $ 105,000 | $ 0 | $ 200,000 | |||
Operating lease liabilities | $ 105,000 | $ 200,000 | ||||
Series A-1 Preferred Stock Warrant | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Change in fair value [Extensible Enumeration] | Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | ||||
Warrants outstanding (in shares) | shares | 0 | |||||
Common Stock Warrants | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Warrants outstanding (in shares) | shares | 0 | 0 | 0 | |||
Exercise price (in dollars per share) | $ / shares | $ 4.47 | $ 4.47 | ||||
Series B Tranche Rights | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Change in fair value [Extensible Enumeration] | Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | Change in fair value of preferred stock tranche rights liability and preferred stock warrant liability | ||||
Common Stock | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Exercise of common stock warrants (in shares) | shares | 137,446 | 137,446 | ||||
Cashless exercise of common stock warrants (in shares) | shares | 178,847 | 4,746 | 178,847 | |||
Common Stock | Common Stock Warrants | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Warrants outstanding (in shares) | shares | 248,247 | |||||
Computer-related assets | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of the assets | 3 years | |||||
Furniture | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of the assets | 5 years |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized cost, short term | $ 48,212 | $ 72,108 |
Gross unrealized gains, short term | 0 | 0 |
Gross unrealized losses, short term | (708) | (33) |
Fair value, short term | 47,504 | 72,075 |
Amortized cost, long term | 15,880 | 31,817 |
Gross unrealized gains, long term | 0 | 0 |
Gross unrealized losses, long term | (43) | (198) |
Fair value, long term | 15,837 | 31,619 |
Amortized cost, total | 64,092 | 103,925 |
Gross unrealized gains, total | 0 | 0 |
Gross unrealized losses, total | (751) | (231) |
Fair value, total | 63,341 | 103,694 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized cost, short term | 47,939 | |
Gross unrealized gains, short term | 0 | |
Gross unrealized losses, short term | 0 | |
Fair value, short term | 47,939 | |
Corporate debt securities | ||
Marketable Securities [Line Items] | ||
Amortized cost, short term | 30,174 | 7,992 |
Gross unrealized gains, short term | 0 | 0 |
Gross unrealized losses, short term | (249) | (11) |
Fair value, short term | 29,925 | 7,981 |
Amortized cost, long term | 15,880 | 16,816 |
Gross unrealized gains, long term | 0 | 0 |
Gross unrealized losses, long term | (43) | (103) |
Fair value, long term | 15,837 | 16,713 |
Asset-backed securities | ||
Marketable Securities [Line Items] | ||
Amortized cost, short term | 3,006 | 16,177 |
Gross unrealized gains, short term | 0 | 0 |
Gross unrealized losses, short term | (102) | (22) |
Fair value, short term | 2,904 | 16,155 |
Amortized cost, long term | 3,013 | |
Gross unrealized gains, long term | 0 | |
Gross unrealized losses, long term | (25) | |
Fair value, long term | 2,988 | |
U.S. treasury securities | ||
Marketable Securities [Line Items] | ||
Amortized cost, short term | 15,032 | |
Gross unrealized gains, short term | 0 | |
Gross unrealized losses, short term | (357) | |
Fair value, short term | $ 14,675 | |
Amortized cost, long term | 11,988 | |
Gross unrealized gains, long term | 0 | |
Gross unrealized losses, long term | (70) | |
Fair value, long term | $ 11,918 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Line Items] | |
Debt securities, available-for-sale, noncurrent, term | 2 years |
Minimum | |
Marketable Securities [Line Items] | |
Debt securities, available-for-sale, unrealized loss position period | 12 months |
Maximum | |
Marketable Securities [Line Items] | |
Debt securities, available-for-sale, current, term | 1 year |
Debt securities, available-for-sale, unrealized loss position period | 15 months |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Abstract] | ||
Total fair value | $ 192,441 | $ 224,856 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Marketable Securities [Abstract] | ||
Total fair value | 129,100 | 121,162 |
Significant Other Observable Inputs (Level 2) | ||
Marketable Securities [Abstract] | ||
Total fair value | 63,341 | 103,694 |
Significant Unobservable Inputs (Level 3) | ||
Marketable Securities [Abstract] | ||
Total fair value | 0 | 0 |
Commercial paper | ||
Marketable Securities [Abstract] | ||
Marketable securities | 47,939 | |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 47,939 | |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | |
Corporate debt securities | ||
Marketable Securities [Abstract] | ||
Marketable securities | 45,762 | 24,694 |
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | 0 |
Corporate debt securities | Significant Other Observable Inputs (Level 2) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 45,762 | 24,694 |
Corporate debt securities | Significant Unobservable Inputs (Level 3) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | 0 |
Asset-backed securities | ||
Marketable Securities [Abstract] | ||
Marketable securities | 2,904 | 19,143 |
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | 0 |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 2,904 | 19,143 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | ||
Marketable Securities [Abstract] | ||
Marketable securities | 14,675 | 11,918 |
U.S. treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | Significant Other Observable Inputs (Level 2) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 14,675 | 11,918 |
U.S. treasury securities | Significant Unobservable Inputs (Level 3) | ||
Marketable Securities [Abstract] | ||
Marketable securities | 0 | 0 |
Money market securities | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 129,100 | 121,162 |
Money market securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 129,100 | 121,162 |
Money market securities | Significant Other Observable Inputs (Level 2) | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Money market securities | Significant Unobservable Inputs (Level 3) | ||
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assumptions Used in Estimating the Fair Value of Preferred Stock Tranche Liability (Detail) - Series B Convertible Preferred Stock Tranche Rights Liability | Jun. 17, 2021 yr | Dec. 31, 2020 yr |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.0007 | 0.0012 |
Expected time to Milestone Closing (in years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.8 | 1.3 |
Probability of achievement of Milestone Closing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 1 | 0.65 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jun. 22, 2021 | Jun. 17, 2021 | Dec. 31, 2020 | Oct. 19, 2018 |
Series A -1 Warrant | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Class of warrants or rights term | 10 years | |||
Number of securities called by warrants or rights (in shares) | 447,426 | |||
Exercise price (in dollars per share) | $ 2.794 | |||
Fair value price (in dollars per share) | $ 12.02 | $ 0.85 | ||
Series B Convertible Preferred Stock Tranche Rights Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial liabilities at fair value | $ 81.2 | $ 5 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Fair Value of the Warrant Liability (Detail) - Series A-1 Convertible Preferred Stock Warrant Liability | Jun. 22, 2021 yr | Dec. 31, 2020 yr |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 0.0025 | 0.0013 |
Expected term (in years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 2 | 2 |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 0.90 | 0.90 |
Expected dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 0 | 0 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of the Tranche Liability and Warrant Liability Measured at Fair Value using Level 3 Significant Unobservable Inputs (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 5,413 |
Change in fair value | 81,157 |
Settlement of tranche liability due to issuance of Milestone Shares | (81,190) |
Settlement of warrant liability upon exercise of warrant | (5,380) |
Ending balance | 0 |
Series B Tranche Rights | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 5,033 |
Change in fair value | 76,157 |
Settlement of tranche liability due to issuance of Milestone Shares | (81,190) |
Ending balance | 0 |
Series A-1 Preferred Stock Warrant | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | 380 |
Change in fair value | 5,000 |
Settlement of warrant liability upon exercise of warrant | (5,380) |
Ending balance | $ 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental Financial Information [Abstract] | ||
Prepaid insurance | $ 1,106 | $ 1,514 |
Research and development service agreements | 1,077 | 2,591 |
Prepaid raw materials | 199 | 83 |
Dues and subscriptions | 105 | 96 |
Other | 237 | 140 |
Total prepaid expenses and other current assets | $ 2,724 | $ 4,424 |
Supplemental Financial Inform_4
Supplemental Financial Information - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental Financial Information [Abstract] | ||
Research and development | $ 1,211 | $ 2,476 |
Compensation and other employee liabilities | 2,008 | 1,102 |
Legal | 0 | 130 |
Other | 131 | 204 |
Total accrued expenses and other current liabilities | $ 3,350 | $ 3,912 |
Lease - Additional Information
Lease - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Feb. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 01, 2022 | Sep. 28, 2022 | |
Lessee, Lease, Description [Line Items] | ||||||
Sublease income | $ 43 | $ 66 | ||||
Total rent expense | $ 147 | |||||
Carmel, Indiana | Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Sublease, term of contract | 1 year | |||||
Charlottesville, Virginia | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 15 months | |||||
Charlottesville, Virginia | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease term | 12 months | |||||
Forecast | Carmel, Indiana | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Sublease income | $ 9 |
Leases - Summary of Lease, Cost
Leases - Summary of Lease, Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating leases | ||
Operating lease cost | $ 154 | |
Less: sublease income | (43) | $ (66) |
Operating lease expense | 111 | |
Short-term lease rent expense | 13 | |
Total rent expense | $ 124 |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Information Related To Lease (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 154 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 242 | $ 0 |
Weighted-average remaining lease term – operating leases (in years) | 8 months 12 days | |
Weighted-average discount rate – operating leases | 10% |
Leases - Summary of Lessee, Ope
Leases - Summary of Lessee, Operating Lease, Liability, Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Leases [Abstract] | ||
Year ended December 31, 2023 | $ 109 | |
Less: present value discount | (4) | |
Operating lease liabilities | $ 105 | $ 200 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Detail) | 12 Months Ended | |||||||
Jul. 06, 2021 shares | Jun. 17, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) shares | Jun. 22, 2021 $ / shares shares | Jun. 09, 2021 | Dec. 31, 2020 shares | Oct. 19, 2018 $ / shares shares | |
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Proceeds from issuance of Series B milestone shares, net of issuance costs | $ | $ 0 | $ 30,031,000 | ||||||
Number of times the redeemable convertible preferred stock equal to the share issue price | 2 | |||||||
Sale of stock issue price per share (in dollars per share) | $ / shares | $ 7.60 | |||||||
Percentage of votes in terms of shareholding needed for conversion into permanent equity | 67% | |||||||
Minimum | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Proceeds from initial public offer | $ | $ 75,000,000 | |||||||
Series A -1 Warrant | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Number of securities called by warrants or rights (in shares) | 447,426 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 2.794 | |||||||
Series B Convertible Preferred Stock | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Percentage of stockholders elected to waive achievement of milestone | 67% | |||||||
Temporary equity shares issued during the period shares (in shares) | 7,908,027 | |||||||
Shares outstanding (in shares) | 19,770,070 | 0 | 11,862,043 | |||||
Conversion of convertible preferred stock into common stock upon initial public offering (in shares) | 19,770,070 | (19,770,070) | ||||||
Series B Convertible Preferred Stock | Closing of Milestone | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Temporary equity shares issued during the period shares (in shares) | 7,908,027 | |||||||
Temporary equity issue price per share (in dollars per share) | $ / shares | $ 3.80 | |||||||
Proceeds from issuance of Series B milestone shares, net of issuance costs | $ | $ 30,000,000 | |||||||
Series A-1 Convertible Preferred Stock | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Shares outstanding (in shares) | 7,985,305 | |||||||
Conversion of convertible preferred stock into common stock upon initial public offering (in shares) | 7,985,305 | |||||||
Series A-1 Convertible Preferred Stock | Series A -1 Warrant | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Number of securities called by warrants or rights (in shares) | 447,426 | |||||||
Exercise price (in dollars per share) | $ / shares | $ 2.794 | |||||||
Series A Convertible Preferred Stock | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Shares outstanding (in shares) | 0 | 477,297 | ||||||
Conversion of convertible preferred stock into common stock upon initial public offering (in shares) | 477,297 | (477,297) | ||||||
Convertible Preferred Stock | ||||||||
Convertible Preferred Stock Tranche Liability And Warrant Liability [Line Items] | ||||||||
Shares outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jul. 08, 2021 shares | Jul. 06, 2021 USD ($) $ / shares shares | Oct. 31, 2022 USD ($) $ / shares shares | Jun. 30, 2021 $ / shares shares | Dec. 31, 2022 USD ($) votingRight $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jul. 01, 2022 USD ($) | Jul. 07, 2021 shares | |
Class of Stock [Line Items] | ||||||||
Common stock and preferred stock, shares authorized (in shares) | 310,000,000 | |||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, number of voting rights | votingRight | 1 | |||||||
Sale of stock, commission rate to sales agents | 3% | |||||||
Common Stock Warrants | ||||||||
Class of Stock [Line Items] | ||||||||
Class of warrants or right exercise price per share (in dollars per share) | $ / shares | $ 4.47 | $ 4.47 | ||||||
Total warrants (in shares) | 0 | 0 | 0 | |||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, stock issuance costs | $ | $ 412 | $ 15,445 | ||||||
Exercise of common stock warrants (in shares) | 137,446 | 137,446 | ||||||
Cashless exercise of common stock warrants (in shares) | 178,847 | 4,746 | 178,847 | |||||
Common Stock | Common Stock Warrants | ||||||||
Class of Stock [Line Items] | ||||||||
Total warrants (in shares) | 248,247 | |||||||
Initial Public Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 9,999,999 | |||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 16 | |||||||
Sale of stock, stock issuance costs | $ | $ 15,400 | |||||||
Sale of stock, consideration received on transaction | $ | $ 168,600 | |||||||
Over-Allotment Option | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 1,499,999 | |||||||
Registration Statement | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, maximum authorized amount | $ | $ 200,000 | |||||||
At The Market Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction (in shares) | 422,160 | |||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 10.06 | |||||||
Sale of stock, consideration received on transaction | $ | $ 3,800 | |||||||
Sale of stock, maximum authorized amount | $ | $ 50,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options outstanding (in shares) | 5,610,893 | 5,610,893 | 3,835,618 | |||
Weighted average grant date fair value of options granted (in dollars per share) | $ 3.79 | $ 1.93 | ||||
Options, exercises in period, intrinsic value | $ 0.6 | $ 0.1 | ||||
Option, cost not yet recognized, amount | $ 8.9 | $ 8.9 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected dividend yield | 0% | 0% | 0% | |||
Weighted average period of recognition | 2 years 7 months 6 days | |||||
Stock Options | Granted after December 31, 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 48 months | |||||
Cliff period | 1 year | |||||
Contractual term | 10 years | |||||
Stock Options | Granted prior to December 31, 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual term | 10 years | |||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding stock maximum | 1% | |||||
Common stock, capital shares reserved for future issuance (in shares) | 375,000 | |||||
Number of shares authorized (in shares) | 779,732 | 779,732 | ||||
Shares of common stock outstanding maximum (in shares) | 800,000 | |||||
Shares issued in period (in shares) | 0 | |||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of a share (in dollars per share) | $ 16 | $ 0.83 | ||||
Minimum | Stock Options | Granted after December 31, 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 12 months | |||||
Minimum | Stock Options | Granted prior to December 31, 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 months | |||||
Maximum | Stock Options | Granted after December 31, 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 36 months | |||||
Maximum | Stock Options | Granted prior to December 31, 2017 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 24 months | |||||
2013 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options outstanding (in shares) | 3,326,220 | 3,326,220 | ||||
2013 Equity Incentive Plan | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant (in shares) | 667,104 | |||||
2021 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, capital shares reserved for future issuance (in shares) | 2,023,663 | |||||
Maximum threshold common stock issuable on exercise of incentive stock options (in shares) | 12,000,000 | |||||
2021 Equity Incentive Plan | Common Stock, New Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant (in shares) | 3,550,000 | |||||
2021 Equity Incentive Plan | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant (in shares) | 3,976,237 | 7,698,282 | 3,976,237 | |||
Percentage of outstanding stock maximum | 5% | |||||
Number of shares authorized (in shares) | 9,721,945 | 9,721,945 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Assumptions Used for Valuation of Fair Value of Stock (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common Stock | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Risk-free interest rate | 0.13% | ||
Expected time to liquidity event (in years) | 2 years | ||
Expected volatility | 90% | ||
Expected dividend yield | 0% | ||
Stock Options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Risk-free interest rate, minimum | 1.70% | 0.40% | |
Risk-free interest rate, maximum | 4.20% | 1.30% | |
Expected volatility | 90% | 90% | |
Expected dividend yield | 0% | 0% | 0% |
Minimum | Stock Options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Expected term (in years) | 5 years 9 months 18 days | 5 years 3 months 18 days | |
Maximum | Stock Options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Stock Options | |
Beginning balance (in shares) | shares | 3,835,618 |
Granted (in shares) | shares | 1,999,050 |
Exercised (in shares) | shares | (131,626) |
Forfeited (in shares) | shares | (79,872) |
Expired (in shares) | shares | (12,277) |
Ending balance (in shares) | shares | 5,610,893 |
Vested and exercisable (in shares) | shares | 2,188,874 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 2.51 |
Granted (in dollars per share) | $ / shares | 5.04 |
Exercised (in dollars per share) | $ / shares | 0.93 |
Forfeited (in dollars per share) | $ / shares | 6.35 |
Expired (in dollars per share) | $ / shares | 16 |
Ending balance (in dollars per share) | $ / shares | 3.36 |
Vested and exercisable (in dollars per share) | $ / shares | $ 2.03 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding balance (in years) | 8 years 1 month 6 days |
Vested and exercisable (in years) | 7 years 1 month 6 days |
Ending balance, aggregate intrinsic value | $ | $ 14,980 |
Vested and exercisable, aggregate intrinsic value | $ | $ 8,714 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Share-Based Compensation Expense Related to Stock Options (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 3,061 | $ 922 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 2,163 | 690 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 898 | $ 232 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | ||
Income tax expense (benefit) | $ 0 | $ 0 |
Research Tax Credit Carryforward | ||
Income Tax Contingency [Line Items] | ||
Tax credit carryforwards | 1,400,000 | |
Domestic Tax Authority | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | 52,700,000 | |
Operating loss carryforwards, subject to expiration | 6,400,000 | |
Operating loss carryforwards, not subject to expiration | 46,200,000 | |
State and Local Jurisdiction | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | $ 61,300,000 |
Income Taxes - Summary of U.S.
Income Taxes - Summary of U.S. Statutory Federal Income Tax Rate to the Total Benefit for Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21% | 21% |
State tax, net of federal benefit | 2.70% | 0.70% |
Non-deductible stock compensation | (0.50%) | 0% |
Rate change | (1.10%) | (0.20%) |
Change in fair value of tranche and warrant liabilities | 0% | (16.90%) |
Non-deductible expense | 0% | (0.10%) |
R&D credit | 0% | (0.30%) |
Other | 0% | 0.10% |
Change in valuation allowance | (22.10%) | (4.30%) |
Income tax provision (benefit) | (0.00%) | (0.00%) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of the Company's Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operating loss | $ 13,125,000 | $ 10,819,000 |
R&D credit | 1,381,000 | 1,381,000 |
Capitalized R&D | 6,788,000 | 0 |
Stock compensation | 675,000 | 263,000 |
Accruals and other temporary differences | 179,000 | 58,000 |
Gross deferred tax assets | 22,148,000 | 12,521,000 |
Valuation allowance | (22,118,000) | (12,520,000) |
Total deferred tax assets | 30,000 | 1,000 |
Depreciation | (30,000) | (1,000) |
Total deferred tax liabilities | (30,000) | (1,000) |
Net deferred tax assets | $ 0 | $ 0 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Exercise of Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,610,893 | 3,835,618 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Silicon Valley Bank | |
Subsequent Event [Line Items] | |
Cash | $ 1.8 |