Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Dec. 10, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AVIR | |
Entity Registrant Name | ATEA PHARMACEUTICALS, INC. | |
Entity Central Index Key | 0001593899 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 82,616,937 | |
Entity Current Reporting Status | No | |
Entity Shell Company | false | |
Entity File Number | 001-39661 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0574869 | |
Entity Address, Address Line One | 125 Summer Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 | |
City Area Code | 857 | |
Local Phone Number | 284-8891 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 105,383 | $ 21,661 |
Prepaid expenses and other current assets | 3,030 | 249 |
Total current assets | 108,413 | 21,910 |
Property and equipment, net | 49 | 41 |
Other assets | 1,644 | 122 |
Total assets | 110,106 | 22,073 |
Current liabilities | ||
Accounts payable | 4,476 | 548 |
Accrued expenses and other current liabilities | 6,340 | 1,887 |
Total current liabilities | 10,816 | 2,435 |
Other liabilities | 56 | 95 |
Total liabilities | 10,872 | 2,530 |
Commitments and contingencies (see Note 6) | ||
Convertible preferred stock, $0.001 par value; 57,932,090 and 33,645,447 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 48,958,829 and 33,645,447 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively; liquidation preference of $178,106 and $70,606 as of September 30, 2020 and December 31, 2019, respectively | 175,745 | 69,114 |
Stockholders’ equity (deficit): | ||
Common stock, $0.001 par value; 80,529,575 and 53,070,161 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 10,109,847 and 10,091,100 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 10 | 10 |
Additional paid-in capital | 9,295 | 4,632 |
Accumulated deficit | (85,816) | (54,213) |
Total stockholders’ deficit | (76,511) | (49,571) |
Total liabilities, convertible preferred stock and stockholders’ deficit | $ 110,106 | $ 22,073 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 57,932,090 | 33,645,447 |
Convertible preferred stock, shares issued | 48,958,829 | 33,645,447 |
Convertible preferred stock, shares outstanding | 48,958,829 | 33,645,447 |
Convertible preferred stock, liquidation preference | $ 178,106 | $ 70,606 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 80,529,575 | 53,070,161 |
Common stock, shares issued | 10,109,847 | 10,091,100 |
Common stock, shares outstanding | 10,109,847 | 10,091,100 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating expenses | ||||
Research and development | $ 13,601 | $ 2,411 | $ 24,177 | $ 6,681 |
General and administrative | 4,028 | 1,358 | 7,500 | 3,178 |
Total operating expenses | 17,629 | 3,769 | 31,677 | 9,859 |
Loss from operations | (17,629) | (3,769) | (31,677) | (9,859) |
Interest income and other, net | 7 | 137 | 74 | 480 |
Net loss and comprehensive loss | $ (17,622) | $ (3,632) | $ (31,603) | $ (9,379) |
Net loss per share attributable to common stockholders—basic and diluted | $ (1.74) | $ (0.36) | $ (3.13) | $ (0.93) |
Weighted-average common shares outstanding—basic and diluted | 10,109,847 | 10,091,100 | 10,099,134 | 10,091,100 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Convertible Preferred Stock |
Balance at Dec. 31, 2018 | $ (36,161) | $ 10 | $ 4,008 | $ (40,179) | |
Balance, shares at Dec. 31, 2018 | 33,645,447 | ||||
Balance at Dec. 31, 2018 | $ 69,114 | ||||
Balance, shares at Dec. 31, 2018 | 10,091,100 | ||||
Stock-based compensation expense | 146 | 146 | |||
Net loss | (2,193) | (2,193) | |||
Balance at Mar. 31, 2019 | (38,208) | $ 10 | 4,154 | (42,372) | |
Balance, shares at Mar. 31, 2019 | 33,645,447 | ||||
Balance at Mar. 31, 2019 | $ 69,114 | ||||
Balance, shares at Mar. 31, 2019 | 10,091,100 | ||||
Balance at Dec. 31, 2018 | (36,161) | $ 10 | 4,008 | (40,179) | |
Balance, shares at Dec. 31, 2018 | 33,645,447 | ||||
Balance at Dec. 31, 2018 | $ 69,114 | ||||
Balance, shares at Dec. 31, 2018 | 10,091,100 | ||||
Net loss | (9,379) | ||||
Balance at Sep. 30, 2019 | (45,090) | $ 10 | 4,458 | (49,558) | |
Balance, shares at Sep. 30, 2019 | 33,645,447 | ||||
Balance at Sep. 30, 2019 | $ 69,114 | ||||
Balance, shares at Sep. 30, 2019 | 10,091,100 | ||||
Balance at Mar. 31, 2019 | (38,208) | $ 10 | 4,154 | (42,372) | |
Balance, shares at Mar. 31, 2019 | 33,645,447 | ||||
Balance at Mar. 31, 2019 | $ 69,114 | ||||
Balance, shares at Mar. 31, 2019 | 10,091,100 | ||||
Stock-based compensation expense | 147 | 147 | |||
Net loss | (3,554) | (3,554) | |||
Balance at Jun. 30, 2019 | (41,615) | $ 10 | 4,301 | (45,926) | |
Balance, shares at Jun. 30, 2019 | 33,645,447 | ||||
Balance at Jun. 30, 2019 | $ 69,114 | ||||
Balance, shares at Jun. 30, 2019 | 10,091,100 | ||||
Stock-based compensation expense | 157 | 157 | |||
Net loss | (3,632) | (3,632) | |||
Balance at Sep. 30, 2019 | (45,090) | $ 10 | 4,458 | (49,558) | |
Balance, shares at Sep. 30, 2019 | 33,645,447 | ||||
Balance at Sep. 30, 2019 | $ 69,114 | ||||
Balance, shares at Sep. 30, 2019 | 10,091,100 | ||||
Balance at Dec. 31, 2019 | $ (49,571) | $ 10 | 4,632 | (54,213) | |
Balance, shares at Dec. 31, 2019 | 33,645,447 | 33,645,447 | |||
Balance at Dec. 31, 2019 | $ 69,114 | $ 69,114 | |||
Balance, shares at Dec. 31, 2019 | 10,091,100 | ||||
Stock-based compensation expense | 189 | 189 | |||
Net loss | (3,988) | (3,988) | |||
Balance at Mar. 31, 2020 | (53,370) | $ 10 | 4,821 | (58,201) | |
Balance, shares at Mar. 31, 2020 | 33,645,447 | ||||
Balance at Mar. 31, 2020 | $ 69,114 | ||||
Balance, shares at Mar. 31, 2020 | 10,091,100 | ||||
Balance at Dec. 31, 2019 | $ (49,571) | $ 10 | 4,632 | (54,213) | |
Balance, shares at Dec. 31, 2019 | 33,645,447 | 33,645,447 | |||
Balance at Dec. 31, 2019 | $ 69,114 | $ 69,114 | |||
Balance, shares at Dec. 31, 2019 | 10,091,100 | ||||
Issuance of common stock for exercise of stock options, shares | 18,747 | ||||
Net loss | $ (31,603) | ||||
Balance at Sep. 30, 2020 | $ (76,511) | $ 10 | 9,295 | (85,816) | |
Balance, shares at Sep. 30, 2020 | 48,958,829 | 48,958,829 | |||
Balance at Sep. 30, 2020 | $ 175,745 | $ 175,745 | |||
Balance, shares at Sep. 30, 2020 | 10,109,847 | ||||
Balance at Mar. 31, 2020 | (53,370) | $ 10 | 4,821 | (58,201) | |
Balance, shares at Mar. 31, 2020 | 33,645,447 | ||||
Balance at Mar. 31, 2020 | $ 69,114 | ||||
Balance, shares at Mar. 31, 2020 | 10,091,100 | ||||
Issuance of Series D convertible preferred stock, net of issuance costs of $869 | $ 106,631 | ||||
Issuance of Series D convertible preferred stock, net of issuance costs of $869, shares | 15,313,382 | ||||
Issuance of common stock for exercise of stock options | 27 | 27 | |||
Issuance of common stock for exercise of stock options, shares | 18,747 | ||||
Stock-based compensation expense | 209 | 209 | |||
Net loss | (9,993) | (9,993) | |||
Balance at Jun. 30, 2020 | (63,127) | $ 10 | 5,057 | (68,194) | |
Balance, shares at Jun. 30, 2020 | 48,958,829 | ||||
Balance at Jun. 30, 2020 | $ 175,745 | ||||
Balance, shares at Jun. 30, 2020 | 10,109,847 | ||||
Stock-based compensation expense | 4,238 | 4,238 | |||
Net loss | (17,622) | (17,622) | |||
Balance at Sep. 30, 2020 | $ (76,511) | $ 10 | $ 9,295 | $ (85,816) | |
Balance, shares at Sep. 30, 2020 | 48,958,829 | 48,958,829 | |||
Balance at Sep. 30, 2020 | $ 175,745 | $ 175,745 | |||
Balance, shares at Sep. 30, 2020 | 10,109,847 |
Consolidated Statements of Co_2
Consolidated Statements of Convertible Preferred Stock and Stockholders' Deficit (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Series D Convertible Preferred Stock | |
Stock issuance costs | $ 869 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||||
Net loss | $ (31,603) | $ (9,379) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Stock-based compensation expense | 4,636 | 450 | ||
Depreciation and amortization expense | $ 5 | $ 4 | 13 | 13 |
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (2,781) | (41) | ||
Accounts payable | 3,689 | (290) | ||
Accrued expenses and other liabilities | 4,259 | 361 | ||
Net cash used in operating activities | (21,787) | (8,886) | ||
Cash flows from investing activities | ||||
Additions to property and equipment | (21) | (2) | ||
Net cash used in investing activities | (21) | (2) | ||
Cash flows from financing activities | ||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 106,631 | |||
Proceeds from issuance of common stock for exercise of stock options | 27 | |||
Payments of deferred offering costs | (1,128) | |||
Net cash provided by financing activities | 105,530 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 83,722 | (8,888) | ||
Cash, cash equivalents and restricted cash at the beginning of period | 21,768 | 34,599 | ||
Cash, cash equivalents and restricted cash at the end of period | 105,490 | 25,711 | 105,490 | 25,711 |
Cash, cash equivalents and restricted cash at the end of period | ||||
Cash and cash equivalents | 105,383 | 25,604 | 105,383 | 25,604 |
Restricted cash | 107 | 107 | 107 | 107 |
Cash, cash equivalents and restricted cash at the end of period | $ 105,490 | $ 25,711 | 105,490 | $ 25,711 |
Supplemental disclosure of noncash financing activities | ||||
Equity issuance costs included in accounts payable and accrued expenses | $ 394 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Background Atea Pharmaceuticals, Inc., together with its subsidiary Atea Pharmaceuticals Securities Corporation, is referred to on a consolidated basis as the “Company”. The Company is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing antiviral therapeutics to improve the lives of patients suffering from life-threatening viral infections. The accompanying unaudited consolidated financial statements are presented as of September 30, 2020 and for the three-month and nine-month periods then ended. As discussed further in Note 13, there were several material events that occurred after September 30, 2020 which are described below: Series D-1 Convertible Preferred Stock In October 2020, the Company issued 8,973,261 shares of Series D-1 Convertible Preferred Stock at a purchase price of $11.98 per share for gross proceeds of $107,500 (the “Series D-1 Closing”). Roche License Agreement In October 2020, the Company entered into the Roche License Agreement, granting Roche an exclusive license to develop and commercialize AT-527 outside of the United States (other than for certain use in connection with the hepatitis C indication). The Company also granted Roche a global license to manufacture AT-527 and agreed that Roche would manufacture the global commercial supply of AT-527 for uses other than the hepatitis C indication. As part of the consideration, Roche agreed to pay the Company an upfront payment of $350,000 (the “Roche Upfront Payment”), which was received in November 2020. Initial Public Offering In November 2020, the Company completed an initial public offering of its common stock (the “IPO”). In connection with the IPO, the Company issued 14,375,000 shares of its common stock, including the exercise in full of the underwriters’ option to purchase up to 1,875,000 shares, at $24.00 per share for aggregate gross proceeds of $345,000 before deducting underwriting discounts and commissions of $24,150 and offering expenses of approximately $3,200. As a result of the IPO, all shares of Series A, B, C, D and D-1 convertible preferred stock converted into 57,932,090 shares of common stock. Risks and Uncertainties The Company is subject to risks and uncertainties common to clinical stage biopharmaceutical companies. These risks include, but are not limited to, potential failure of preclinical and clinical studies, uncertainties associated with research and development activities generally, competition from technical innovations of others, dependence upon key personnel, compliance with governmental regulations, the need to obtain marketing approval for any product candidate that the Company may discover and develop, the need to gain broad acceptance among patients, payers and health care providers to successfully commercialize any product for which marketing approval is obtained and the need to secure and maintain adequate intellectual property protection for the Company’s proprietary technology and products. Further, the Company is currently dependent on third-party service providers for much of its preclinical research, clinical development and manufacturing activities. Product candidates currently under development will require significant amounts of additional capital, additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval, prior to commercialization. Even if the Company is able to generate revenues from the sale of its product candidates, if approved, it may not become profitable. If the Company fails to become profitable or is unable to sustain profitability on a continuing basis, then it may be unable to continue its operations at planned levels and be forced to reduce its operations. The Company is also subject to risks associated with the COVID-19 global pandemic, including actual and potential delays associated with certain of its ongoing and anticipated trials, and potential negative impacts on the Company’s business operations and its ability to raise additional capital to finance its operations. Through September 30, 2020, the Company financed its operations from the sale of convertible preferred stock. Since its inception, the Company has incurred recurring operating losses and negative cash flows from operations. As of September 30, 2020, the Company had an accumulated deficit of $85,816. The Company expects to continue to generate operating losses for the foreseeable future. The Company believes that its cash and cash equivalents of $105,383 as of September 30, 2020, together with the net proceeds from the Series D-1 Closing, the Roche Upfront Payment and the net proceeds from the IPO will be sufficient to fund its operations as currently planned through at least 2023. The Company may seek additional capital through one or more of a combination of financing through the sale of additional equity securities, debt financing, or funding in connection with any additional collaborative relationships it may enter into or other arrangements. There can be no assurance that the Company will be able to obtain such additional funding, on terms acceptable to the Company, on a timely basis or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s existing shareholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed The preparation of unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in these accompanying notes. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors and assumptions that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, which include but are not limited to estimates of accrued research and development expenses and the valuation of common stock in connection with the issuance of stock-based awards. Changes in estimates are recorded in the period in which they become known. Principles of Consolidation The unaudited consolidated financial statements include the accounts of Atea Pharmaceuticals, Inc. and its wholly owned subsidiary, Atea Pharmaceuticals Securities Corporation. All intercompany amounts have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying consolidated balance sheet as of September 30, 2020, the consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2020, the consolidated statements of convertible preferred stock and stockholders’ deficit for the three and nine months ended September 30, 2020 and 2019, and the consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2020, the results of its operations for the three and nine months ended September 30, 2020 and 2019 and its cash flows for the nine months ended September 30, 2020 and 2019. The results for the nine months ended September 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods, or any future year or period. Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include bank demand deposits and money market funds that invest in U.S. government and U.S. government agency obligations. Cash equivalents are reported at fair value. Concentrations of Credit Risk and Significant Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company maintains its cash and cash equivalents with a financial institution that management believes is creditworthy. The Company’s investment policy includes guidelines on the quality of the financial institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company is dependent on third-party manufacturers to supply products for its research and development activities. In particular, the Company relies and expects to continue to rely on a small number of manufacturers to supply it with its requirements for the active pharmaceutical ingredients and formulated drugs related to its research and development activities. These activities could be adversely affected by a significant interruption in the supply of active pharmaceutical ingredients and formulated drugs. Fair Value Measurements Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Observable inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determination of fair value of the assets or liabilities. Cash, cash equivalents and restricted cash are Level 1 assets which are comprised of funds held in checking and money market accounts. Cash, cash equivalents and restricted cash were recorded at fair value as disclosed in Note 3. The carrying amounts of accounts payable and accrued expenses approximate their fair values due to their short-term maturities. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the asset. The Company estimates the useful life of its assets as follows: Asset Estimated useful life Laboratory equipment Five years Office furniture and fixtures Five years Computer hardware Two years Leasehold improvements Shorter of useful life or remaining lease term Maintenance and repairs that do not improve or extend the life of the respective asset are expensed to operations as incurred. Upon disposal of an asset, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Other Assets The Company capitalizes incremental legal, professional, accounting and other third-party fees that are directly associated with its financing activities as deferred financing costs included in other non-current assets until a particular financing is consummated. After consummation of a financing, the applicable costs will be recorded in stockholders’ equity as a reduction of additional paid-in-capital generated as a result of the financing. As of September 30, 2020, IPO-related equity issuance costs of $1,537 were included in Other assets in the accompanying consolidated balance sheet. Also included in Other assets is restricted cash of $107, to collateralize a letter of credit. Impairment of Long-lived Assets The Company reviews long-lived assets when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparing the book value of the assets to the estimated undiscounted future net cash flows that the asset is expected to generate. If the estimated undiscounted future net cash flows are less than the book value, the asset is impaired, and the impairment loss to be recognized in the statement of operations is measured as the amount by which the book value of the asset exceeds its fair value, which is measured based on the estimated discounted future net cash flows that the asset is expected to generate. No impairment losses were recorded during the three and nine months ended September 30, 2020 and 2019. Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses consist principally of costs associated with outsourced research and development activities, including preclinical and clinical development, manufacturing and research conducted by contract research organizations and academic institutions, employee compensation and consulting expenses together with related expenses, professional fees and facility and overhead costs. Facility and overhead costs primarily include the allocation of rent, utility and office-related expenses attributable to research and development personnel. In circumstances where amounts have been paid in advance or in excess of costs incurred, the Company records a prepaid expense, which is expensed as services are performed or goods are delivered. The Company has entered into various research and development contracts with third parties. These agreements are generally cancelable, and related payments are recorded as research and development expenses as incurred. 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 of completion of events, invoices received and contracted costs. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. The Company’s historical accrual estimates have not been materially different from the actual costs. Patent Costs Costs to secure and maintain the Company’s patents are expensed as incurred and are classified as general and administrative expenses in the Company’s consolidated statements of operations. Stock-based Compensation Stock-based compensation expense is classified in the consolidated statement of operations in the same manner in which the award recipient’s payroll costs or service payments are classified. Stock-based awards granted to employees and non-employees are measured based on the estimated fair value of the awards using the Black-Scholes option pricing model (“Black-Scholes”). Stock-based compensation expense with respect to awards with service conditions is recognized using the straight-line method over the service period. Stock-based compensation with respect to awards with performance conditions is recognized when satisfaction of the performance conditions is probable. Stock-based compensation is based on awards ultimately expected to vest and, as such, it is reduced by forfeitures. The Company accounts for forfeitures as they occur. Black-Scholes requires the use of subjective assumptions which determine the fair value of stock-based awards. These assumptions include: Fair value of common stock —Through September 30, 2020, because there was no public market for the Company’s common stock, the fair value of the Company’s common stock underlying stock-based awards was estimated on each grant date by the board of directors. Risk-free interest rate —The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of a stock-based award. Expected term —The expected term represents the period that stock-based awards are expected to be outstanding. Given the Company’s lack of specific history, the expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards. Expected volatility —Since the Company was privately held through September 30, 2020 and did not have any trading history for its common stock, the expected volatility was estimated based on the average volatility for comparable publicly traded biotechnology companies over a period equal to the expected term of the stock-based awards. The comparable companies were chosen based on their similar size, stage in the life cycle or area of specialty. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Expected dividend yield —The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base. Deferred tax assets, which relate primarily to the carrying amount of the Company’s net operating loss carryforwards, are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities. Valuation allowances are established to reduce deferred tax assets where, based upon the available evidence, the Company concludes that it is more-likely-than-not that the deferred tax assets will not be realized. In evaluating its ability to recover deferred tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income. Reserves are provided for tax benefits for which realization is uncertain. Such benefits are only recognized when the underlying tax position is considered more-likely-than-not to be sustained on examination by a taxing authority. Interest and penalties related to uncertain tax positions are recognized in the provision of income taxes. Comprehensive Loss Comprehensive income (loss) includes net income (loss) as well as other changes in stockholder equity (deficit) that result from transactions and economic events other than those with equity holders. The Company did not have any items of comprehensive income or loss other than net loss for the three and nine months ended September 30, 2020 and 2019. Net Loss Per Share Attributable to Common Stockholders The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities. The Company considers its convertible preferred stock to be participating securities as, in the event a dividend is paid on common stock, the holders of convertible preferred stock would be entitled to receive dividends on a basis consistent with the common stockholders. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holders of the convertible preferred stock do not have a contractual obligation to share in losses. Since inception, the Company has incurred recurring operating losses and, as such, under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock. Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net loss per common share is computed by using the weighted-average number of shares of common stock outstanding. Due to net losses for the three and nine months ended September 30, 2020 and 2019, basic and diluted net loss per share attributable to common stockholders were the same, as the effect of all potentially dilutive securities would have been anti-dilutive. Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the chief operating decision maker (the “CODM”), in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its chief executive officer, who manages and allocates resources to the operations on a total company basis. Accordingly, there is a single operating segment and one reportable segment. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”) . Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurements, |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 96,609 $ — $ — $ 96,609 Total cash equivalents $ 96,609 $ — $ — $ 96,609 Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 21,038 $ — $ — $ 21,038 Total cash equivalents $ 21,038 $ — $ — $ 21,038 The Company’s assets with fair value categorized as Level 1 within the fair value hierarchy include money market funds. Money market funds are publicly traded mutual funds and are presented as cash equivalents on the consolidated balance sheets as of September 30, 2020 and December 31, 2019. There were no transfers among Level 1, Level 2 or Level 3 categories in the three and nine months ended September 30, 2020 and 2019. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, net | 4. Property and Equipment, net Property and equipment, net, consist of the following: September 30, 2020 December 31, 2019 Laboratory equipment $ 5 $ 5 Office furniture and fixtures 13 13 Computer hardware 32 11 Leasehold improvements 125 125 Total property and equipment, at cost 175 154 Less: accumulated depreciation and amortization (126 ) (113 ) Property and equipment, net $ 49 $ 41 Depreciation and amortization expense was $5 and $4 for the three months ended September 30, 2020 and 2019, respectively. Depreciation and amortization expense was $13 and $13 for the nine months ended September 30, 2020 and 2019, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: September 30, 2020 December 31, 2019 Research and development $ 4,892 $ 1,326 License fees (Note 6) — 200 Professional fees and other 626 361 Payroll and payroll related 822 — Total accrued expenses and other current liabilities $ 6,340 $ 1,887 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Operating Lease Agreements The Company leases an office facility under a non-cancelable operating lease that expires July 2022. The office lease includes commitments obligating the Company to pay a pro rata share of certain building operating costs and annual rent escalations which will result in higher lease payments in future years. Rent expense is recognized on a straight-line basis over the term of the lease with the difference between expense and the payments recorded as deferred rent, which is included in accrued expenses and other current liabilities and other liabilities. As of September 30, 2020, future minimum payments for operating leases are as follows: 2020 $ 85 2021 340 2022 200 Total future minimum lease payments $ 625 Rent expense recognized under all operating leases was $70 and $70 for the three months ended September 30, 2020 and 2019, respectively. Rent expense recognized under all operating leases was $211 and $211 for the nine months ended September 30, 2020 and 2019, respectively. The Company is required to maintain a letter of credit for the duration of the office lease. The Company maintains bank deposits of $107 to collateralize the letter of credit which are classified as restricted cash and a long-term asset in the consolidated balance sheet as of September 30, 2020. License Agreement with NovaMedica LLC In May 2014, the Company entered into an exclusive license agreement with NovaMedica LLC, an affiliated entity of a stockholder, pursuant to which the Company granted NovaMedica a license to certain intellectual property rights for commercialization of a potential product for the treatment of hepatitis C. In connection with the license, the Company received a license fee of $200 in partial consideration for the grant of the license. Recognition of the license fee was deferred and recorded in other liabilities pending finalization by the Company and NovaMedica of certain other terms and conditions of the license agreement at which time the technology access fee was to have been evaluated, along with the license agreement broadly, for revenue recognition. If the Company and NovaMedica failed to agree on the terms of an amendment to the license agreement covering certain terms and conditions, and the license agreement was thereafter terminated, such termination was to be subject to a payment by the Company of a termination fee of $400. This agreement was terminated in May 2020, and the Company paid a termination fee of $400. Business Development Consulting Agreements The Company is a party to a consulting agreement that provides for the payment by the Company of consideration, consisting of cash, up to a maximum of $1,750, and the vesting of equity awards, if a business development transaction that meets or exceeds certain thresholds is successfully concluded on or before December 31, 2020 (Note 9). As of September 30, 2020, the performance conditions were not yet probable of being met and, as a result, no expense has yet to be recognized in connection with the consulting agreement in the consolidated statement of operations. In February 2020, the Company entered into an agreement with a consultant that requires payment of a success fee calculated as a percentage of certain product sales, subject to a cumulative maximum payout of $5,000. Indemnification The Company enters into certain types of contracts that contingently require the Company to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company’s bylaws, under which the Company must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers and consultants for liabilities arising out of their relationship, and (iii) procurement, service or license agreements under which the Company may be required to indemnify vendors, service providers or licensees for certain claims, including claims that may be brought against them arising from the Company’s acts or omissions with respect to the Company’s products, technology, intellectual property or services. From time to time, the Company may receive indemnification claims under these contracts in the normal course of business. In the event that one or more of these matters were to result in a claim against the Company, an adverse outcome, including a judgment or settlement, may cause a material adverse effect on the Company’s future business, operating results or financial condition. It is not possible to determine the maximum potential amount potentially payable under these contracts since the Company has no history of prior indemnification claims and the unique facts and circumstances involved in each particular claim will be determinative. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Convertible Preferred Stock | 7. Convertible Preferred Stock In May 2020, the Company filed an amendment to its certificate of incorporation to authorize 15,313,382 shares of Series D convertible preferred stock (“Series D Preferred”) and 8,973,261 shares of Series D-1 convertible preferred stock (“Series D-1 Preferred”). The Company entered into a stock purchase agreement with certain investors and issued 15,313,382 shares of Series D Preferred for gross proceeds of approximately $107,500. The Series D investors had the option to purchase up to 8,973,261 shares of Series D-1 Preferred at a price of $11.98 per share, including 2,991,087 shares which the Series D investors had an obligation to purchase if certain milestones were achieved. The Company concluded that the tranche features were not freestanding financing instruments as the right to purchase the future tranches was not legally detachable from the shares of Series D Preferred. Additionally, the Company concluded that no beneficial conversion features were present at initial issuance. As discussed in Note 13, the Series D investors purchased all 8,973,261 shares of Series D-1 at a price of $11.98 per share for aggregate gross proceeds of $107,500 in October 2020. As of September 30, 2020, the Company had 57,932,090 shares of convertible preferred stock (“Convertible Preferred Stock”) authorized, of which 20,000,000 shares were designated as Series A convertible preferred stock, (“Series A Preferred”); 7,592,830 shares were designated as Series B convertible preferred stock (“Series B Preferred”); 6,052,617 shares were designated as Series C convertible preferred stock (“Series C Preferred”); 15,313,382 shares were designated as Series D Preferred; and 8,973,261 shares were designated as Series D-1 Preferred. The Company’s Series A Preferred, Series B Preferred, Series C Preferred and Series D Preferred were issued at $1.00, $3.03, $4.56 and $7.02 per share, respectively. The following table summarizes the Company’s outstanding Convertible Preferred Stock as of September 30, 2020: Preferred Stock Authorized Preferred Stock Issued and Outstanding Carrying Value Liquidation Preference Common Stock Issuable Upon Conversion Series A Preferred 20,000,000 20,000,000 $ 19,136 $ 20,000 20,000,000 Series B Preferred 7,592,830 7,592,830 22,619 23,006 7,592,830 Series C Preferred 6,052,617 6,052,617 27,359 27,600 6,052,617 Series D Preferred 15,313,382 15,313,382 106,631 107,500 15,313,382 Series D-1 Preferred 8,973,261 — — — — 57,932,090 48,958,829 $ 175,745 $ 178,106 48,958,829 The Company classifies Convertible Preferred Stock outside of stockholders’ deficit because the shares contain deemed liquidation rights in the event of a merger, consolidation, or reorganization involving the Company or a subsidiary or upon the sale, lease, transfer, exclusive license or other disposition by the Company or a subsidiary of all or substantially all assets of the Company that could trigger a distribution of cash or assets and therefore a contingent redemption feature not solely within the Company’s control. Upon the closing of the Company’s IPO in November 2020, all outstanding Convertible Preferred Stock, including the Series D-1 Preferred issued in October 2020, automatically converted into 57,932,090 shares of common stock. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Common Stock | 8. Common Stock At September 30, 2020, the authorized capital of the Company included 80,529,575 shares of common stock, of which 10,109,847 shares of common stock were considered issued and outstanding for accounting purposes. As discussed in Note 9, restricted stock awards for an aggregate of 200,000 shares are excluded from issued and outstanding shares for accounting purposes. On all matters to be voted upon by the holders of common stock, holders of common stock are entitled to one vote per share. The holders of common stock are entitled to receive dividends, when declared by the board, and to share ratably in the Company’s assets legally available for distribution to the holders of the Company’s stock in the event of liquidation subject to the rights and preferences applicable to the outstanding shares of Convertible Preferred Stock prior to the conversion of the Convertible Preferred Stock in November 2020. The holders of common stock have no preemptive, redemption or conversion rights. The Company had the following reserved shares of common stock: September 30, 2020 Series A Preferred 20,000,000 Series B Preferred 7,592,830 Series C Preferred 6,052,617 Series D Preferred 15,313,382 Outstanding options 7,001,747 Options available for future grant 514,477 56,475,053 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 9. Stock-based Compensation As of September 30, 2020, the Atea Pharmaceuticals 2013 Equity Incentive Plan, as amended (the “2013 Plan”), provided for the grant of incentive stock options, non-qualified stock options, restricted common stock awards and other awards for up to 10,979,971 shares of common stock to employees, officers, directors and consultants of the Company. As of September 30, 2020, options to purchase 7,095,494 shares of common stock and 3,370,000 shares of restricted common stock had been granted under the 2013 Plan, and there were 514,477 shares of common stock remaining available for future issuance. Restricted Common Stock Restricted stock awards generally include vesting and risk of forfeiture provisions that lapse upon satisfaction of performance conditions or over time periods commencing on the grant date and concluding on the third or fourth anniversary of the grant date. The Company has granted awards totaling 200,000 shares of restricted common stock to a consultant pursuant to the 2013 Plan for consulting and business development services. The consultant paid $1.21 per share and an aggregate of $121 for 100,000 of the shares of restricted common stock in 2016 and $1.24 per share and an aggregate of $124 for 100,000 of the shares of restricted common stock in 2018. These awards of restricted common stock will vest, and the risk of forfeiture will lapse upon satisfaction of performance conditions detailed in each award. As of September 30, 2020, the performance conditions were not yet probable of being met and, as a result, no compensation expense has yet been recognized for these performance-based awards. The unvested and forfeitable common stock as of September 30, 2020, though legally issued, are excluded from issued and outstanding shares for accounting purposes. Amounts received for the unvested and forfeitable common stock totaling $245 are included in additional paid-in capital within stockholders’ deficit in the consolidated balance sheets. At September 30, 2020, total unrecognized compensation expense related to unvested restricted common stock was $370. Stock Options The following summarizes stock option activity: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2020 3,911,633 $ 1.50 8.5 $ 3,915 Granted 3,408,861 $ 6.38 Exercised (18,747 ) $ 1.43 Cancelled (300,000 ) $ 6.83 Outstanding at September 30, 2020 7,001,747 $ 3.65 8.7 $ 22,406 Options exercisable at September 30, 2020 2,857,918 $ 1.47 7.4 $ 15,371 Vested or expected to vest at September 30, 2020 7,001,747 $ 3.65 8.7 $ 22,406 The aggregate intrinsic value of options granted is calculated as the difference between the exercise price of the options and the estimated fair value of the Company’s common stock for those options that had exercise prices lower than the fair value of the Company’s common stock. Option grants generally vest over a service period of three or four years and have a contractual term of ten years. As of September 30, 2020, total unrecognized compensation expense related to stock option awards was $14,923, which amount is being recognized over a remaining weighted average period of 3.7 years. Stock-based Compensation Expense Stock-based compensation expense is classified as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development expense $ 2,469 $ 63 $ 2,627 $ 188 General and administrative 1,769 94 2,009 262 Total stock-based compensation expense $ 4,238 $ 157 $ 4,636 $ 450 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 10. Net Loss Per Share Attributable to Common Stockholders The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Convertible Preferred Stock 48,958,829 33,645,447 48,958,829 33,645,447 Stock options to purchase common stock 7,001,747 3,011,891 7,001,747 3,011,891 Non-vested restricted stock 200,000 200,000 200,000 200,000 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company incurred net operating losses and recorded a full valuation allowance against net deferred tax assets for all periods presented. Accordingly, the Company has not recorded a provision for federal or state income taxes. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions The Company recorded expense of $3 and $34 for the three months ended September 30, 2020 and 2019, respectively, for consulting services provided by an entity affiliated with its former interim Chief Financial Officer. This expense was $43 and $34 for the nine months ended September 30, 2020 and 2019, respectively. Except as disclosed in Note 6 in the notes to the accompanying consolidated financial statements, there were no other material transactions with related parties. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Series D-1 Convertible Preferred Stock The holders of the Series D Preferred had an option to purchase up to 8,973,261 shares of Series D-1 Preferred at a price of $11.98 per share. In October 2020, the investors exercised their option in full resulting in the issuance of 8,973,261 shares of Series D-1 Preferred at a purchase price of $11.98 per share for aggregate gross proceeds of $107,500. Roche License Agreement In October 2020, the Company entered into a license agreement, (the “Roche License Agreement”) with F. Hoffmann-La Roche Ltd and Genentech, Inc. (collectively “Roche”), granting Roche an exclusive license to develop and commercialize AT-527 outside of the United States for all indications other than HCV. The Company is responsible for completing certain ongoing non-clinical and clinical activities at its own expense and supplying certain clinical trial material under the Roche License Agreement. The parties will work collaboratively on a global development plan intended to support regulatory approval and will share joint development costs equally. In connection with the Roche License Agreement, Roche paid the Company an upfront payment of $350,000. The License Agreement further provides that Roche is obligated to pay the Company up to an additional $330,000 in the aggregate upon the achievement of certain development and regulatory milestone events; up to an additional $320,000 in the aggregate upon the achievement of certain sales based milestone events and tiered royalties based on annual net sales of the products covered by the Roche License Agreement, ranging between low double-digit and mid-twenties, subject to certain adjustments and limitations. Roche has the right to terminate the Roche License Agreement for convenience pursuant to the terms of the agreement. In connection with the Roche License Agreement, the Company became obligated to pay a $7,000 fee to a financial advisor for their services. The fee was paid in December 2020. Initial Public Offering In November 2020, the Company completed its IPO and issued 14,375,000 shares of its common stock, including the exercise in full of the underwriters’ option to purchase up to 1,875,000 shares at $24.00 per share for aggregate gross proceeds of $345,000 before deducting underwriting discounts and commissions of $24,150 and offering expenses of approximately $3,200. In connection with the IPO, all shares of Series A, B, C, D and D-1 Preferred converted into 57,932,090 shares of common stock. In addition, the Company filed a restated certificate of incorporation to increase the authorized number of shares of common stock to 300,000,000 shares and authorize 10,000,000 shares of undesignated preferred stock that may be issued from time to time by the Company’s board of directors in one or more series. 2020 Plans In October 2020, the Company’s shareholders approved the Company’s 2020 Incentive Award Plan (the “2020 Plan”), which became effective on October 29, 2020. The 2020 Plan provides for the issuance of up to 7,924,000 shares of common stock. In October 2020, the Company’s shareholders approved the 2020 Employee Stock Purchase Plan (the “ESPP”), which became effective on October 29, 2020. The ESPP provides for the issuance of up to 1,187,000 shares of common stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed The preparation of unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in these accompanying notes. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors and assumptions that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, which include but are not limited to estimates of accrued research and development expenses and the valuation of common stock in connection with the issuance of stock-based awards. Changes in estimates are recorded in the period in which they become known. |
Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements include the accounts of Atea Pharmaceuticals, Inc. and its wholly owned subsidiary, Atea Pharmaceuticals Securities Corporation. All intercompany amounts have been eliminated in consolidation. |
Unaudited Interim Financial Information and Emerging Growth Company Status | Unaudited Interim Financial Information The accompanying consolidated balance sheet as of September 30, 2020, the consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2020, the consolidated statements of convertible preferred stock and stockholders’ deficit for the three and nine months ended September 30, 2020 and 2019, and the consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2020, the results of its operations for the three and nine months ended September 30, 2020 and 2019 and its cash flows for the nine months ended September 30, 2020 and 2019. The results for the nine months ended September 30, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods, or any future year or period. Emerging Growth Company Status The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include bank demand deposits and money market funds that invest in U.S. government and U.S. government agency obligations. Cash equivalents are reported at fair value. |
Concentrations of Credit Risk and Significant Suppliers | Concentrations of Credit Risk and Significant Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company maintains its cash and cash equivalents with a financial institution that management believes is creditworthy. The Company’s investment policy includes guidelines on the quality of the financial institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company is dependent on third-party manufacturers to supply products for its research and development activities. In particular, the Company relies and expects to continue to rely on a small number of manufacturers to supply it with its requirements for the active pharmaceutical ingredients and formulated drugs related to its research and development activities. These activities could be adversely affected by a significant interruption in the supply of active pharmaceutical ingredients and formulated drugs. |
Fair Value Measurements | Fair Value Measurements Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Observable inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determination of fair value of the assets or liabilities. Cash, cash equivalents and restricted cash are Level 1 assets which are comprised of funds held in checking and money market accounts. Cash, cash equivalents and restricted cash were recorded at fair value as disclosed in Note 3. The carrying amounts of accounts payable and accrued expenses approximate their fair values due to their short-term maturities. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the asset. The Company estimates the useful life of its assets as follows: Asset Estimated useful life Laboratory equipment Five years Office furniture and fixtures Five years Computer hardware Two years Leasehold improvements Shorter of useful life or remaining lease term Maintenance and repairs that do not improve or extend the life of the respective asset are expensed to operations as incurred. Upon disposal of an asset, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. |
Other Assets | Other Assets The Company capitalizes incremental legal, professional, accounting and other third-party fees that are directly associated with its financing activities as deferred financing costs included in other non-current assets until a particular financing is consummated. After consummation of a financing, the applicable costs will be recorded in stockholders’ equity as a reduction of additional paid-in-capital generated as a result of the financing. As of September 30, 2020, IPO-related equity issuance costs of $1,537 were included in Other assets in the accompanying consolidated balance sheet. Also included in Other assets is restricted cash of $107, to collateralize a letter of credit. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparing the book value of the assets to the estimated undiscounted future net cash flows that the asset is expected to generate. If the estimated undiscounted future net cash flows are less than the book value, the asset is impaired, and the impairment loss to be recognized in the statement of operations is measured as the amount by which the book value of the asset exceeds its fair value, which is measured based on the estimated discounted future net cash flows that the asset is expected to generate. No impairment losses were recorded during the three and nine months ended September 30, 2020 and 2019. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses consist principally of costs associated with outsourced research and development activities, including preclinical and clinical development, manufacturing and research conducted by contract research organizations and academic institutions, employee compensation and consulting expenses together with related expenses, professional fees and facility and overhead costs. Facility and overhead costs primarily include the allocation of rent, utility and office-related expenses attributable to research and development personnel. In circumstances where amounts have been paid in advance or in excess of costs incurred, the Company records a prepaid expense, which is expensed as services are performed or goods are delivered. The Company has entered into various research and development contracts with third parties. These agreements are generally cancelable, and related payments are recorded as research and development expenses as incurred. 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 of completion of events, invoices received and contracted costs. Significant judgments and estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. The Company’s historical accrual estimates have not been materially different from the actual costs. |
Patent Costs | Patent Costs Costs to secure and maintain the Company’s patents are expensed as incurred and are classified as general and administrative expenses in the Company’s consolidated statements of operations. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation expense is classified in the consolidated statement of operations in the same manner in which the award recipient’s payroll costs or service payments are classified. Stock-based awards granted to employees and non-employees are measured based on the estimated fair value of the awards using the Black-Scholes option pricing model (“Black-Scholes”). Stock-based compensation expense with respect to awards with service conditions is recognized using the straight-line method over the service period. Stock-based compensation with respect to awards with performance conditions is recognized when satisfaction of the performance conditions is probable. Stock-based compensation is based on awards ultimately expected to vest and, as such, it is reduced by forfeitures. The Company accounts for forfeitures as they occur. Black-Scholes requires the use of subjective assumptions which determine the fair value of stock-based awards. These assumptions include: Fair value of common stock —Through September 30, 2020, because there was no public market for the Company’s common stock, the fair value of the Company’s common stock underlying stock-based awards was estimated on each grant date by the board of directors. Risk-free interest rate —The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of a stock-based award. Expected term —The expected term represents the period that stock-based awards are expected to be outstanding. Given the Company’s lack of specific history, the expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards. Expected volatility —Since the Company was privately held through September 30, 2020 and did not have any trading history for its common stock, the expected volatility was estimated based on the average volatility for comparable publicly traded biotechnology companies over a period equal to the expected term of the stock-based awards. The comparable companies were chosen based on their similar size, stage in the life cycle or area of specialty. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Expected dividend yield —The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax base. Deferred tax assets, which relate primarily to the carrying amount of the Company’s net operating loss carryforwards, are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities. Valuation allowances are established to reduce deferred tax assets where, based upon the available evidence, the Company concludes that it is more-likely-than-not that the deferred tax assets will not be realized. In evaluating its ability to recover deferred tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income. Reserves are provided for tax benefits for which realization is uncertain. Such benefits are only recognized when the underlying tax position is considered more-likely-than-not to be sustained on examination by a taxing authority. Interest and penalties related to uncertain tax positions are recognized in the provision of income taxes. |
Comprehensive Loss | Comprehensive Loss Comprehensive income (loss) includes net income (loss) as well as other changes in stockholder equity (deficit) that result from transactions and economic events other than those with equity holders. The Company did not have any items of comprehensive income or loss other than net loss for the three and nine months ended September 30, 2020 and 2019. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The Company calculates basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for participating securities. The Company considers its convertible preferred stock to be participating securities as, in the event a dividend is paid on common stock, the holders of convertible preferred stock would be entitled to receive dividends on a basis consistent with the common stockholders. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the holders of the convertible preferred stock do not have a contractual obligation to share in losses. Since inception, the Company has incurred recurring operating losses and, as such, under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock. Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net loss per common share is computed by using the weighted-average number of shares of common stock outstanding. Due to net losses for the three and nine months ended September 30, 2020 and 2019, basic and diluted net loss per share attributable to common stockholders were the same, as the effect of all potentially dilutive securities would have been anti-dilutive. |
Segments | Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the chief operating decision maker (the “CODM”), in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its chief executive officer, who manages and allocates resources to the operations on a total company basis. Accordingly, there is a single operating segment and one reportable segment. |
Recently Issued Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”) . Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurements, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Asset Estimated useful life Laboratory equipment Five years Office furniture and fixtures Five years Computer hardware Two years Leasehold improvements Shorter of useful life or remaining lease term |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 96,609 $ — $ — $ 96,609 Total cash equivalents $ 96,609 $ — $ — $ 96,609 Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 21,038 $ — $ — $ 21,038 Total cash equivalents $ 21,038 $ — $ — $ 21,038 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net, consist of the following: September 30, 2020 December 31, 2019 Laboratory equipment $ 5 $ 5 Office furniture and fixtures 13 13 Computer hardware 32 11 Leasehold improvements 125 125 Total property and equipment, at cost 175 154 Less: accumulated depreciation and amortization (126 ) (113 ) Property and equipment, net $ 49 $ 41 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 30, 2020 December 31, 2019 Research and development $ 4,892 $ 1,326 License fees (Note 6) — 200 Professional fees and other 626 361 Payroll and payroll related 822 — Total accrued expenses and other current liabilities $ 6,340 $ 1,887 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Payments for Operating Leases | As of September 30, 2020, future minimum payments for operating leases are as follows: 2020 $ 85 2021 340 2022 200 Total future minimum lease payments $ 625 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Outstanding Convertible Preferred Stock | The following table summarizes the Company’s outstanding Convertible Preferred Stock as of September 30, 2020: Preferred Stock Authorized Preferred Stock Issued and Outstanding Carrying Value Liquidation Preference Common Stock Issuable Upon Conversion Series A Preferred 20,000,000 20,000,000 $ 19,136 $ 20,000 20,000,000 Series B Preferred 7,592,830 7,592,830 22,619 23,006 7,592,830 Series C Preferred 6,052,617 6,052,617 27,359 27,600 6,052,617 Series D Preferred 15,313,382 15,313,382 106,631 107,500 15,313,382 Series D-1 Preferred 8,973,261 — — — — 57,932,090 48,958,829 $ 175,745 $ 178,106 48,958,829 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Reserved Shares of Common Stock | The Company had the following reserved shares of common stock: September 30, 2020 Series A Preferred 20,000,000 Series B Preferred 7,592,830 Series C Preferred 6,052,617 Series D Preferred 15,313,382 Outstanding options 7,001,747 Options available for future grant 514,477 56,475,053 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | The following summarizes stock option activity: Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2020 3,911,633 $ 1.50 8.5 $ 3,915 Granted 3,408,861 $ 6.38 Exercised (18,747 ) $ 1.43 Cancelled (300,000 ) $ 6.83 Outstanding at September 30, 2020 7,001,747 $ 3.65 8.7 $ 22,406 Options exercisable at September 30, 2020 2,857,918 $ 1.47 7.4 $ 15,371 Vested or expected to vest at September 30, 2020 7,001,747 $ 3.65 8.7 $ 22,406 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is classified as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development expense $ 2,469 $ 63 $ 2,627 $ 188 General and administrative 1,769 94 2,009 262 Total stock-based compensation expense $ 4,238 $ 157 $ 4,636 $ 450 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Outstanding Anti-dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share | The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Convertible Preferred Stock 48,958,829 33,645,447 48,958,829 33,645,447 Stock options to purchase common stock 7,001,747 3,011,891 7,001,747 3,011,891 Non-vested restricted stock 200,000 200,000 200,000 200,000 |
Nature of Business - Additional
Nature of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 03, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Nature of Business [Line Items] | ||||||
Shares issued | 48,958,829 | 33,645,447 | ||||
Gross proceeds from issuance of preferred stock | $ 106,631 | |||||
Convertible preferred stock converted into shares | 48,958,829 | |||||
Accumulated deficit | $ 85,816 | $ 54,213 | ||||
Cash and cash equivalents | $ 105,383 | $ 21,661 | $ 25,604 | |||
Subsequent Event | IPO | ||||||
Nature of Business [Line Items] | ||||||
Share price | $ 24 | $ 24 | ||||
Aggregated gross proceeds from initial public offering ("IPO") | $ 345,000 | $ 345,000 | ||||
Underwriting discounts and commissions | 24,150 | 24,150 | ||||
Offering expenses | $ 3,200 | $ 3,200 | ||||
Subsequent Event | IPO | Common Stock | ||||||
Nature of Business [Line Items] | ||||||
Shares issued | 14,375,000 | 14,375,000 | ||||
Subsequent Event | Over-Allotment Option | Maximum | ||||||
Nature of Business [Line Items] | ||||||
Shares issued | 1,875,000 | 1,875,000 | ||||
Subsequent Event | Roche License Agreement | ||||||
Nature of Business [Line Items] | ||||||
Upfront payment received | $ 350,000 | |||||
Series D-1 Convertible Preferred Stock | Subsequent Event | ||||||
Nature of Business [Line Items] | ||||||
Shares issued | 8,973,261 | |||||
Share price | $ 11.98 | |||||
Gross proceeds from issuance of preferred stock | $ 107,500 | |||||
Series A, B, C, D and D-1 Convertible Preferred Stock | Subsequent Event | IPO | Common Stock | ||||||
Nature of Business [Line Items] | ||||||
Convertible preferred stock converted into shares | 57,932,090 | 57,932,090 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Estimated Useful Life (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Laboratory Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Office Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer Hardware | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | 2 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful life | Shorter of useful life or remaining lease term |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | |
Accounting Policies [Line Items] | ||||
Restricted cash | $ 107,000 | $ 107,000 | $ 107,000 | $ 107,000 |
Impairment losses | 0 | 0 | $ 0 | 0 |
Expected dividend yield | 0.00% | |||
Comprehensive income or loss | 0 | $ 0 | $ 0 | $ 0 |
Number of reportable segments | Segment | 1 | |||
Other Assets | ||||
Accounting Policies [Line Items] | ||||
Restricted cash | 107,000 | $ 107,000 | ||
Other Assets | IPO | ||||
Accounting Policies [Line Items] | ||||
Equity issuance costs | $ 1,537,000 | $ 1,537,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash equivalents | ||
Total cash equivalents | $ 96,609 | $ 21,038 |
Level 1 | ||
Cash equivalents | ||
Total cash equivalents | 96,609 | 21,038 |
Money Market Funds | ||
Cash equivalents | ||
Total cash equivalents | 96,609 | 21,038 |
Money Market Funds | Level 1 | ||
Cash equivalents | ||
Total cash equivalents | $ 96,609 | $ 21,038 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, at cost | $ 175 | $ 154 |
Less: accumulated depreciation and amortization | (126) | (113) |
Property and equipment, net | 49 | 41 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, at cost | 5 | 5 |
Office Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, at cost | 13 | 13 |
Computer Hardware | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, at cost | 32 | 11 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, at cost | $ 125 | $ 125 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 5 | $ 4 | $ 13 | $ 13 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Research and development | $ 4,892 | $ 1,326 |
License fees (Note 6) | 200 | |
Professional fees and other | 626 | 361 |
Payroll and payroll related | 822 | |
Total accrued expenses and other current liabilities | $ 6,340 | $ 1,887 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | May 31, 2014 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Loss Contingencies [Line Items] | ||||||||
Lease expiration date | Jul. 31, 2022 | |||||||
Rent expense | $ 70,000 | $ 70,000 | $ 211,000 | $ 211,000 | ||||
Restricted cash | 107,000 | $ 107,000 | 107,000 | $ 107,000 | ||||
License Agreement | NovaMedica LLC | ||||||||
Loss Contingencies [Line Items] | ||||||||
License fee received | $ 200,000 | |||||||
Termination fee payable upon termination of agreement | $ 400,000 | |||||||
Payment for termination fee | $ 400,000 | |||||||
Business Development Consulting Agreements | ||||||||
Loss Contingencies [Line Items] | ||||||||
Expense recognized | 0 | |||||||
Business Development Consulting Agreements | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Success fee | $ 5,000,000 | |||||||
Business Development Consulting Agreements | Maximum | Forecast | ||||||||
Loss Contingencies [Line Items] | ||||||||
Consideration payable upon achievement of objectives | $ 1,750,000 | |||||||
Other Assets | Letter of Credit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Restricted cash | $ 107,000 | $ 107,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments for Operating Leases (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 85 |
2021 | 340 |
2022 | 200 |
Total future minimum lease payments | $ 625 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2020 | May 31, 2020 | Sep. 30, 2020 | Nov. 30, 2020 | Nov. 03, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | ||||||
Shares authorized | 57,932,090 | 33,645,447 | ||||
Shares issued | 48,958,829 | 33,645,447 | ||||
Gross proceeds from issuance of preferred stock | $ 106,631 | |||||
Convertible preferred stock converted into shares | 48,958,829 | |||||
Subsequent Event | IPO | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock purchase price | $ 24 | $ 24 | ||||
Series D Preferred | ||||||
Class Of Stock [Line Items] | ||||||
Shares authorized | 15,313,382 | 15,313,382 | ||||
Shares issued | 15,313,382 | 15,313,382 | ||||
Gross proceeds from issuance of preferred stock | $ 107,500 | |||||
Preferred stock purchase price | $ 7.02 | |||||
Convertible preferred stock converted into shares | 15,313,382 | |||||
Series D-1 Preferred | ||||||
Class Of Stock [Line Items] | ||||||
Shares authorized | 8,973,261 | 8,973,261 | ||||
Right to purchase price, per share | $ 11.98 | |||||
Number of shares obligated to purchase upon milestone | 2,991,087 | |||||
Series D-1 Preferred | Subsequent Event | ||||||
Class Of Stock [Line Items] | ||||||
Shares issued | 8,973,261 | |||||
Gross proceeds from issuance of preferred stock | $ 107,500 | |||||
Preferred stock purchase price | $ 11.98 | |||||
Series D-1 Preferred | Subsequent Event | Maximum | ||||||
Class Of Stock [Line Items] | ||||||
Options to purchase shares | 8,973,261 | |||||
Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Shares authorized | 57,932,090 | |||||
Series A Preferred | ||||||
Class Of Stock [Line Items] | ||||||
Shares authorized | 20,000,000 | |||||
Shares issued | 20,000,000 | |||||
Preferred stock purchase price | $ 1 | |||||
Convertible preferred stock converted into shares | 20,000,000 | |||||
Series B Preferred | ||||||
Class Of Stock [Line Items] | ||||||
Shares authorized | 7,592,830 | |||||
Shares issued | 7,592,830 | |||||
Preferred stock purchase price | $ 3.03 | |||||
Convertible preferred stock converted into shares | 7,592,830 | |||||
Series C Preferred | ||||||
Class Of Stock [Line Items] | ||||||
Shares authorized | 6,052,617 | |||||
Shares issued | 6,052,617 | |||||
Preferred stock purchase price | $ 4.56 | |||||
Convertible preferred stock converted into shares | 6,052,617 | |||||
Common Stock | Subsequent Event | IPO | ||||||
Class Of Stock [Line Items] | ||||||
Convertible preferred stock converted into shares | 57,932,090 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Summary of Outstanding Convertible Preferred Stock (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | May 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | |||
Preferred Stock Authorized | 57,932,090 | 33,645,447 | |
Preferred Stock Issued | 48,958,829 | 33,645,447 | |
Preferred Stock Outstanding | 48,958,829 | 33,645,447 | |
Carrying Value | $ 175,745 | ||
Liquidation Preference | $ 178,106 | $ 70,606 | |
Common Stock Issuable Upon Conversion | 48,958,829 | ||
Series A Preferred | |||
Class Of Stock [Line Items] | |||
Preferred Stock Authorized | 20,000,000 | ||
Preferred Stock Issued | 20,000,000 | ||
Preferred Stock Outstanding | 20,000,000 | ||
Carrying Value | $ 19,136 | ||
Liquidation Preference | $ 20,000 | ||
Common Stock Issuable Upon Conversion | 20,000,000 | ||
Series B Preferred | |||
Class Of Stock [Line Items] | |||
Preferred Stock Authorized | 7,592,830 | ||
Preferred Stock Issued | 7,592,830 | ||
Preferred Stock Outstanding | 7,592,830 | ||
Carrying Value | $ 22,619 | ||
Liquidation Preference | $ 23,006 | ||
Common Stock Issuable Upon Conversion | 7,592,830 | ||
Series C Preferred | |||
Class Of Stock [Line Items] | |||
Preferred Stock Authorized | 6,052,617 | ||
Preferred Stock Issued | 6,052,617 | ||
Preferred Stock Outstanding | 6,052,617 | ||
Carrying Value | $ 27,359 | ||
Liquidation Preference | $ 27,600 | ||
Common Stock Issuable Upon Conversion | 6,052,617 | ||
Series D Preferred | |||
Class Of Stock [Line Items] | |||
Preferred Stock Authorized | 15,313,382 | 15,313,382 | |
Preferred Stock Issued | 15,313,382 | 15,313,382 | |
Preferred Stock Outstanding | 15,313,382 | ||
Carrying Value | $ 106,631 | ||
Liquidation Preference | $ 107,500 | ||
Common Stock Issuable Upon Conversion | 15,313,382 | ||
Series D-1 Preferred | |||
Class Of Stock [Line Items] | |||
Preferred Stock Authorized | 8,973,261 | 8,973,261 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 80,529,575 | 53,070,161 |
Common stock, shares issued | 10,109,847 | 10,091,100 |
Common stock, shares outstanding | 10,109,847 | 10,091,100 |
Common stock voting rights per share | On all matters to be voted upon by the holders of common stock, holders of common stock are entitled to one vote per share. | |
Restricted Stock | Consultant | 2013 Equity Incentive Plan | ||
Class Of Stock [Line Items] | ||
Shares excluded from issued and outstanding | 200,000 |
Common Stock - Summary of Reser
Common Stock - Summary of Reserved Shares of Common Stock (Details) | Sep. 30, 2020shares |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 56,475,053 |
Series A Preferred | |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 20,000,000 |
Series B Preferred | |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 7,592,830 |
Series C Preferred | |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 6,052,617 |
Series D Preferred | |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 15,313,382 |
Outstanding options | |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 7,001,747 |
Options available for future grant | |
Class Of Stock [Line Items] | |
Common stock, capital shares reserved for future issuance | 514,477 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, capital shares reserved for future issuance | 56,475,053 | 56,475,053 | |||||
Share-based compensation expense | $ 4,238,000 | $ 157,000 | $ 4,636,000 | $ 450,000 | |||
Unrecognized compensation expense | $ 14,923,000 | $ 14,923,000 | |||||
Remaining weighted average period for recognize compensation expense | 3 years 8 months 12 days | ||||||
Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting contractual term | 10 years | ||||||
2013 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, capital shares reserved for future issuance | 514,477 | 514,477 | |||||
2013 Equity Incentive Plan | Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares, granted | 7,095,494 | 7,095,494 | |||||
2013 Equity Incentive Plan | Restricted Stock | Consultant | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares, granted | 100,000 | 100,000 | 200,000 | ||||
Price paid per share | $ 1.24 | $ 1.21 | $ 1.24 | ||||
Aggregate amount received for shares | $ 124,000 | $ 121,000 | |||||
Total amounts received for unvested and forfeitable common stock | $ 245,000 | ||||||
2013 Equity Incentive Plan | Restricted Stock | Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares, granted | 3,370,000 | 3,370,000 | |||||
2013 Equity Incentive Plan | Performance-based Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 0 | ||||||
2013 Equity Incentive Plan | Non-vested Restricted Common Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | $ 370,000 | $ 370,000 | |||||
Minimum | Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting service period | 3 years | ||||||
Maximum | Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting service period | 4 years | ||||||
Maximum | 2013 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for grant | 10,979,971 | 10,979,971 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Number of Shares, Outstanding | 3,911,633 | |
Number of Shares, Granted | 3,408,861 | |
Number of Shares, Exercised | (18,747) | |
Number of Shares, Cancelled | (300,000) | |
Number of Shares, Outstanding | 7,001,747 | 3,911,633 |
Number of Shares, Options exercisable | 2,857,918 | |
Number of Shares, Vested or expected to vest | 7,001,747 | |
Weighted Average Exercise Price Per Share | ||
Weighted Average Exercise Price Per Share, Outstanding | $ 1.50 | |
Weighted Average Exercise Price Per Share, Granted | 6.38 | |
Weighted Average Exercise Price Per Share, Exercised | 1.43 | |
Weighted Average Exercise Price Per Share, Cancelled | 6.83 | |
Weighted Average Exercise Price Per Share, Outstanding | 3.65 | $ 1.50 |
Weighted Average Exercise Price Per Share, Options exercisable | 1.47 | |
Weighted Average Exercise Price Per Share, Vested or expected to vest | $ 3.65 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Weighted Average Remaining Contractual Term (years), Outstanding | 8 years 8 months 12 days | 8 years 6 months |
Weighted Average Remaining Contractual Term (years), Options exercisable | 7 years 4 months 24 days | |
Weighted Average Remaining Contractual Term (years), Vested or expected to vest | 8 years 8 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 22,406 | $ 3,915 |
Aggregate Intrinsic Value, Options exercisable | 15,371 | |
Aggregate Intrinsic Value, Vested or expected to vest | $ 22,406 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 4,238 | $ 157 | $ 4,636 | $ 450 |
Research and Development Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2,469 | 63 | 2,627 | 188 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,769 | $ 94 | $ 2,009 | $ 262 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Summary of Outstanding Anti-dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from calculation of diluted net loss per share | 48,958,829 | 33,645,447 | 48,958,829 | 33,645,447 |
Stock Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from calculation of diluted net loss per share | 7,001,747 | 3,011,891 | 7,001,747 | 3,011,891 |
Non-vested Restricted Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from calculation of diluted net loss per share | 200,000 | 200,000 | 200,000 | 200,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Provision for federal income taxes | $ 0 |
Provision for state income taxes | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consulting Services | Former Chief Financial Officer | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expense | $ 3 | $ 34 | $ 43 | $ 34 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | Nov. 03, 2020 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | May 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||||
Shares issued | 48,958,829 | 33,645,447 | |||||
Gross proceeds from issuance of preferred stock | $ 106,631,000 | ||||||
Convertible preferred stock converted into shares | 48,958,829 | ||||||
Common stock, shares authorized | 80,529,575 | 53,070,161 | |||||
Roche License Agreement | Scenario Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Financial advisor fee paid | $ 7,000,000 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, shares authorized | 300,000,000 | ||||||
Subsequent Event | 2020 Incentive Award Plan | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, shares authorized | 7,924,000 | ||||||
Stock option plan, effective date | Oct. 29, 2020 | ||||||
Subsequent Event | 2020 Employee Stock Purchase Plan | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, shares authorized | 1,187,000 | ||||||
Stock option plan, effective date | Oct. 29, 2020 | ||||||
Subsequent Event | IPO | |||||||
Subsequent Event [Line Items] | |||||||
Share price | $ 24 | $ 24 | |||||
Aggregated gross proceeds from initial public offering ("IPO") | $ 345,000,000 | $ 345,000,000 | |||||
Underwriting discounts and commissions | 24,150,000 | 24,150,000 | |||||
Offering expenses | $ 3,200,000 | $ 3,200,000 | |||||
Subsequent Event | Common Stock | IPO | |||||||
Subsequent Event [Line Items] | |||||||
Shares issued | 14,375,000 | 14,375,000 | |||||
Subsequent Event | Undesignated Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, shares authorized | 10,000,000 | ||||||
Subsequent Event | Roche License Agreement | |||||||
Subsequent Event [Line Items] | |||||||
Upfront payment received | $ 350,000,000 | ||||||
Maximum | Subsequent Event | Over-Allotment Option | |||||||
Subsequent Event [Line Items] | |||||||
Shares issued | 1,875,000 | 1,875,000 | |||||
Maximum | Subsequent Event | Roche License Agreement | Development and Regulatory | |||||||
Subsequent Event [Line Items] | |||||||
Milestones receivable upon achievement aggregate | $ 330,000,000 | ||||||
Maximum | Subsequent Event | Roche License Agreement | Sales Based | |||||||
Subsequent Event [Line Items] | |||||||
Milestones receivable upon achievement aggregate | $ 320,000,000 | ||||||
Series D-1 Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Right to purchase price, per share | $ 11.98 | ||||||
Series D-1 Preferred Stock | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Shares issued | 8,973,261 | ||||||
Share price | $ 11.98 | ||||||
Gross proceeds from issuance of preferred stock | $ 107,500,000 | ||||||
Series D-1 Preferred Stock | Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Options to purchase shares | 8,973,261 | ||||||
Series A, B, C, D and D-1 Convertible Preferred Stock | Subsequent Event | Common Stock | IPO | |||||||
Subsequent Event [Line Items] | |||||||
Convertible preferred stock converted into shares | 57,932,090 | 57,932,090 |