Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-39321 | ||
Entity Registrant Name | AVIDITY BIOSCIENCES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-1336960 | ||
Entity Address, Address Line One | 10578 Science Center Drive | ||
Entity Address, Address Line Two | Suite 125 | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92121 | ||
City Area Code | 858 | ||
Local Phone Number | 401-7900 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | RNA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 739 | ||
Entity Common Stock, Shares Outstanding | 70,807,973 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001599901 | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 243 |
Auditor Name | BDO USA, LLP |
Auditor Location | San Diego, California |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 340,396 | $ 320,448 |
Marketable securities | 270,331 | 85,095 |
Prepaid and other assets | 12,215 | 5,598 |
Total current assets | 622,942 | 411,141 |
Property and equipment, net | 6,254 | 4,805 |
Restricted cash | 251 | 251 |
Right-of-use assets | 8,755 | 10,784 |
Other assets | 598 | 599 |
Total assets | 638,800 | 427,580 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 32,572 | 14,085 |
Accrued compensation | 11,190 | 8,940 |
Lease liabilities, current portion | 3,105 | 1,769 |
Deferred revenue, current portion | 5,041 | 4,864 |
Total current liabilities | 51,908 | 29,658 |
Lease liabilities, net of current portion | 7,582 | 9,960 |
Deferred revenue, net of current portion | 1,235 | 6,532 |
Total liabilities | 60,725 | 46,150 |
Commitments and contingencies (Note 7) | 0 | 0 |
Stockholders’ equity: | ||
Common stock, $0.0001 par value; authorized shares – 400,000; issued and outstanding shares – 69,768 and 47,754 at December 31, 2022 and 2021, respectively | 7 | 5 |
Additional paid-in capital | 939,310 | 566,161 |
Accumulated other comprehensive loss | (2,698) | (187) |
Accumulated deficit | (358,544) | (184,549) |
Total stockholders’ equity | 578,075 | 381,430 |
Total liabilities and stockholders’ equity | $ 638,800 | $ 427,580 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 69,768,000 | 47,754,000 |
Common stock, shares outstanding (in shares) | 69,768,000 | 47,754,000 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Collaboration revenue | $ 9,224 | $ 9,326 | $ 6,787 |
Operating expenses: | |||
Research and development | 150,404 | 101,182 | 37,602 |
General and administrative | 37,733 | 26,195 | 13,462 |
Total operating expenses | 188,137 | 127,377 | 51,064 |
Loss from operations | (178,913) | (118,051) | (44,277) |
Other income (expense): | |||
Interest income | 4,975 | 104 | 206 |
Interest expense | 0 | 0 | (209) |
Other expense | (57) | (62) | (75) |
Total other income (expense) | 4,918 | 42 | (78) |
Net loss | (173,995) | (118,009) | (44,355) |
Other comprehensive loss: | |||
Net unrealized losses on marketable securities | (2,511) | (182) | (5) |
Comprehensive loss | $ (176,506) | $ (118,191) | $ (44,360) |
Net loss per share, basic (in dollars per share) | $ (3.34) | $ (2.85) | $ (2.05) |
Net loss per share, diluted (in dollars per share) | $ (3.34) | $ (2.85) | $ (2.05) |
Weighted-average shares outstanding, basic (in shares) | 52,162 | 41,428 | 21,663 |
Weighted-average shares outstanding, diluted (in shares) | 52,162 | 41,428 | 21,663 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2019 | 37,267,000 | ||||
Beginning balance at Dec. 31, 2019 | $ 134,720 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Issuance of Series C convertible preferred stock, net of issuance costs (in shares) | 538,000 | ||||
Issuance of Series C convertible preferred stock, net of issuance costs | $ 2,200 | ||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering (in shares) | (37,805,000) | ||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering | $ (136,920) | ||||
Ending balance (in shares) at Dec. 31, 2020 | 0 | ||||
Ending balance at Dec. 31, 2020 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 2,989,000 | ||||
Beginning balance at Dec. 31, 2019 | (65,357) | $ 0 | $ (43,172) | $ 0 | $ (22,185) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 16,560,000 | ||||
Issuance of common stock in initial public offering, net of issuance costs | 274,054 | $ 2 | 274,052 | ||
Conversion of convertible preferred stock into common stock upon completion of initial public offering (in shares) | 17,921,000 | ||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering | 136,920 | $ 2 | 136,918 | ||
Reclassification of warrant liability to equity due to adjustment from preferred stock warrant to common stock warrant upon completion of initial public offering | 120 | 120 | |||
Cashless exercise of common stock warrants (in shares) | 16,000 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 54,000 | ||||
Issuance of common stock upon exercise of stock options | 22 | 22 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 29,000 | ||||
Issuance of common stock under employee stock purchase plan | 444 | 444 | |||
Vesting of early exercise options | 70 | 70 | |||
Stock-based compensation | 4,310 | 4,310 | |||
Net loss | (44,355) | (44,355) | |||
Other comprehensive loss | (5) | (5) | |||
Ending balance (in shares) at Dec. 31, 2020 | 37,569,000 | ||||
Ending balance at Dec. 31, 2020 | $ 306,223 | $ 4 | 372,764 | (5) | (66,540) |
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||
Ending balance at Dec. 31, 2021 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 9,980,000 | ||||
Issuance of common stock in initial public offering, net of issuance costs | 174,677 | $ 1 | 174,676 | ||
Issuance of common stock upon exercise of stock options (in shares) | 172,000 | ||||
Issuance of common stock upon exercise of stock options | 930 | 930 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 33,000 | ||||
Issuance of common stock under employee stock purchase plan | 709 | 709 | |||
Vesting of early exercise options | 26 | 26 | |||
Stock-based compensation | 17,056 | 17,056 | |||
Net loss | (118,009) | (118,009) | |||
Other comprehensive loss | $ (182) | (182) | |||
Ending balance (in shares) at Dec. 31, 2021 | 47,754,000 | 47,754,000 | |||
Ending balance at Dec. 31, 2021 | $ 381,430 | $ 5 | 566,161 | (187) | (184,549) |
Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||
Ending balance at Dec. 31, 2022 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in initial public offering, net of issuance costs (in shares) | 21,572,000 | ||||
Issuance of common stock in initial public offering, net of issuance costs | $ 344,616 | $ 2 | 344,614 | ||
Issuance of common stock upon exercise of stock options (in shares) | 351,000 | 351,000 | |||
Issuance of common stock upon exercise of stock options | $ 470 | 470 | |||
Issuance of common stock under employee stock purchase plan (in shares) | 91,000 | ||||
Issuance of common stock under employee stock purchase plan | 922 | 922 | |||
Vesting of early exercise options | 4 | 4 | |||
Stock-based compensation | 27,139 | 27,139 | |||
Net loss | (173,995) | (173,995) | |||
Other comprehensive loss | $ (2,511) | (2,511) | |||
Ending balance (in shares) at Dec. 31, 2022 | 69,768,000 | 69,768,000 | |||
Ending balance at Dec. 31, 2022 | $ 578,075 | $ 7 | $ 939,310 | $ (2,698) | $ (358,544) |
Statements of Convertible Pre_2
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Convertible preferred stock issuance costs | $ 100 |
Public offering issuance costs | $ 24,026 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | 30 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Cash flows from operating activities | ||||
Net loss | $ (173,995) | $ (118,009) | $ (44,355) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation | 1,387 | 639 | 373 | |
Stock-based compensation expense | 27,139 | 17,056 | 4,310 | |
Amortization of premiums and discounts on marketable securities, net | (615) | 179 | 9 | |
Other non-cash adjustments | 0 | (16) | 214 | |
Changes in operating assets and liabilities: | ||||
Prepaid and other assets | (6,616) | (2,510) | (2,444) | |
Accounts payable and accrued liabilities | 18,315 | 6,043 | 5,749 | |
Accrued compensation | 2,250 | 5,788 | 1,838 | |
Operating lease right-of-use assets and liabilities, net | 987 | 461 | 289 | |
Deferred revenue | (5,120) | (4,444) | (3,100) | |
Net cash used in operating activities | (136,268) | (94,813) | (37,117) | |
Cash flows from investing activities | ||||
Purchases of marketable securities | (355,837) | (85,357) | (6,693) | |
Maturities of marketable securities | 168,705 | 6,580 | 0 | |
Purchases of property and equipment | (2,823) | (3,740) | (1,092) | |
Net cash used in investing activities | (189,955) | (82,517) | (7,785) | |
Cash flows from financing activities | ||||
Net proceeds from Issuance of common stock after deducting offering-related transaction costs and commissions | 344,779 | 174,677 | 274,054 | $ 519,300 |
Proceeds from the issuance of common stock under employee incentive equity plans | 1,392 | 1,639 | 466 | |
Payments on long-term debt | 0 | 0 | (4,683) | |
Proceeds from issuance of Series C convertible preferred stock, net of issuance costs | 0 | 0 | 2,200 | |
Net cash provided by financing activities | 346,171 | 176,316 | 272,037 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | 19,948 | (1,014) | 227,135 | |
Cash, cash equivalents and restricted cash at beginning of period | 320,699 | 321,713 | 94,578 | |
Cash, cash equivalents and restricted cash at end of period | 340,647 | 320,699 | 321,713 | $ 340,647 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 0 | 0 | 571 | |
Supplemental schedule of noncash investing and financing activities: | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | 0 | 12,074 | 936 | |
Costs incurred, but not paid, in connection with public offering included in accounts payable and accrued liabilities | 163 | 0 | 0 | |
Costs incurred, but not paid, in connection with purchases of property and equipment included in accounts payable and accrued liabilities | 233 | 220 | 118 | |
Conversion of convertible preferred stock into common stock upon completion of initial public offering | $ 0 | $ 0 | $ 136,920 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Avidity Biosciences, Inc. (the Company or Avidity) is a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs). The Company’s proprietary AOC platform is designed to combine the specificity of monoclonal antibodies with the precision of RNA therapeutics to target the root cause of diseases previously untreatable with such therapeutics. Initial Public Offering On June 16, 2020, the Company completed its initial public offering (IPO) in which it sold 16,560,000 shares of common stock at an offering price of $18.00 per share. Proceeds from the IPO, net of underwriting discounts, commissions and offering costs, were $274.1 million. In addition, each of the following occurred in connection with the completion of the IPO: • the conversion of all outstanding shares of convertible preferred stock into 17,921,069 shares of the Company’s common stock; • the adjustment of an outstanding warrant to purchase convertible preferred stock into a warrant to purchase 7,809 shares of the Company’s common stock; and • the amendment and restatement of the Company’s certificate of incorporation, authorizing 400,000,000 shares of common stock and 40,000,000 shares of undesignated preferred stock. Liquidity Subsequent to its IPO in 2020, the Company has raised an aggregate of $519.3 million in additional capital in the public markets through 2022. As of December 31, 2022, the Company has devoted substantially all of its resources to organizing and staffing the Company, business planning, raising capital, developing its proprietary AOC platform, identifying potential product candidates, establishing its intellectual property portfolio, conducting research, preclinical and clinical studies, and providing other general and administrative support for these operations. In addition, the Company has a limited operating history, has incurred operating losses since inception and expects that it will continue to incur net losses into the foreseeable future as it continues the development of its product candidates and development programs. As of December 31, 2022, the Company had an accumulated deficit of $358.5 million and cash, cash equivalents, and marketable securities of $610.7 million. The Company believes that existing cash, cash equivalents and marketable securities will be sufficient to fund the Company’s operations for at least 12 months from the date of the filing of this Form 10-K. The Company plans to finance its future cash needs through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. If the Company is not able to secure adequate additional funding, it may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or delay or reduce the scope of its planned development programs. Any of these actions could materially harm the Company’s business, results of operations, and future prospects. Basis of Presentation The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC). The financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these financial statements are not necessarily indicative of the results that may be expected for any future periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with GAAP requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to revenue recognition, stock-based compensation, and accrued research and development costs. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Restricted cash represents cash held as collateral for the letter of credit required under the Company’s facility lease and is reported as a long-term asset in the accompanying balance sheets. Marketable Securities The Company’s marketable securities primarily consist of U.S. Government and corporate debt securities. The Company classifies its marketable securities as available-for-sale and records such assets at estimated fair value in the balance sheets, with unrealized gains and losses, if any, reported as a component of other comprehensive income (loss) within the statements of operations and comprehensive loss and as a separate component of stockholders’ equity. The Company classifies marketable securities with remaining maturities greater than one year as current assets because such marketable securities are available to fund the Company’s current operations. Realized gains and losses are calculated on the specific identification method and recorded as interest income. There were no realized gains and losses for the years ended December 31, 2022, 2021, and 2020. At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is other-than-temporary. When the Company determines that a decline in the fair value below its cost basis is other-than-temporary, the Company recognizes an impairment loss in the period in which the other-than-temporary decline occurred. There have been no other-than-temporary impairments recognized for the years ended December 31, 2022, 2021, and 2020. See Note 4 (Marketable Securities) for further information. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has established guidelines regarding approved investments, credit quality, diversification, liquidity and maturities of investments, which are designed to maintain safety and liquidity. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash balances due to the financial position of the depository institutions in which those deposits are held. Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs, such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. None of the Company’s non-financial assets are recorded at fair value on a non-recurring basis. The carrying amounts reflected in the Company’s balance sheets for prepaid and other assets and accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. No transfers between levels have occurred during the periods presented. See Note 3 (Fair Value Measurements) for information on assets measured at fair value. Property and Equipment, net Property and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets, which ranges from three Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. An impairment loss is recorded if and when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company has not recognized any impairment losses in any of the periods presented in these financial statements. Accounts Payable and Accrued Liabilities (in thousands) December 31, 2022 2021 Accounts payable $ 4,637 $ 2,806 Accrued non-clinical liabilities 22,535 10,583 Accrued clinical liabilities 5,400 696 Total accounts payable and accrued liabilities $ 32,572 $ 14,085 Segment Information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by management in making decisions regarding resource allocation and assessing performance. The Company manages its operations as a single operating segment in the United States for the purposes of assessing performance and making operating decisions. Revenue Recognition To date, all the Company’s revenue has been derived from collaboration and research agreements. The terms of these arrangements include the following types of payments to the Company: non-refundable, upfront license fees; development, regulatory and commercial milestone payments; payments for research and development services provided by the Company or for manufacturing supply services the Company provides through its contract manufacturers; and royalties on net sales of licensed products. The Company performs the following steps in determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of these agreements: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when, or as, the Company satisfies each performance obligation. The Company receives payments from its collaborators based on billing schedules established in each contract. Upfront and other payments may require deferral of revenue recognition to a future period until the Company performs its obligations under its research and collaboration arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. See Note 5 (Collaboration, License and Research Agreements) for further information. Research and Development Costs and Accruals Research and development costs are expensed as incurred and include salaries, benefits and stock-based compensation associated with research and development personnel, third-party research and development expenses, license fees, laboratory supplies, facilities, overhead costs, and consultants. Nonrefundable advance payments for goods and services that will be used in future research and development activities are capitalized and recorded as expense in the period that the Company receives the goods or when services are performed. The Company has entered into various research and development contracts with research institutions, clinical research organizations, clinical manufacturing organizations and other companies. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and payments made in advance of performance are reflected in the accompanying consolidated balance sheets as prepaid and other assets or accrued liabilities. The Company records accruals for estimated costs incurred for ongoing research and development activities. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the services, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates may be made in determining the prepaid or accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront and milestone payments to acquire contractual rights to licensed technology are expensed when incurred if there is uncertainty in the Company receiving future economic benefit from the acquired contractual rights. Certain of these contractual rights may require the Company to make additional milestone payments upon initiation of a pivotal trial and the U.S. Food and Drug Administration approval, which are not expected to exceed $8.5 million. Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes , which provides for deferred taxes using the asset and liability method. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company is subject to taxation in the United States and various state jurisdictions. As of December 31, 2022, the Company’s tax years since conversion to a corporation in 2019 are subject to examination by taxing authorities. Leases The Company determines if an arrangement is a lease at inception. Lease right-of-use assets represent Company's right to use an underlying asset for the lease term and lease liabilities represent Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in most of our leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components, and costs related to leases with terms of less than 12 months are expensed as incurred. The Company has lease agreements that contain both lease and non-lease components. The Company does not separate lease components from non-lease components on its office and laboratory space leases. Stock-Based Compensation Stock-based compensation expense for stock option grants is recorded at the estimated fair value of the award as of the grant date and is recognized as expense on a straight-line basis over the requisite service period (usually the vesting period) of the stock-based award with forfeitures recognized as incurred. Stock-based compensation expense for employee stock purchases under the Company’s Employee Stock Purchase Plan (the ESPP) is recorded at the estimated fair value of the purchase as of the plan enrollment date and is recognized as expense on a straight-line basis over the applicable six-month ESPP offering period. The estimation of fair value for stock-based compensation requires management to make estimates and judgments about, among other things, the estimated life of options and volatility of the Company’s common stock. These judgments directly affect the amount of compensation expense that will be recognized. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on marketable securities. Comprehensive gains (losses) have been reflected in the statements of operations and comprehensive loss for all periods presented. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, adjusted for the weighted-average number of common shares outstanding that are subject to repurchase or forfeiture. The Company has excluded 10,168, 33,600, and 123,285 weighted-average shares subject to repurchase or forfeiture from the weighted-average number of common shares outstanding for the years ended December 31, 2022, 2021, and 2020, respectively. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the common stock equivalent securities would be anti-dilutive. Common stock equivalent securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in common stock equivalent shares; in thousands): December 31, 2022 2021 2020 Common stock options issued and outstanding 9,352 5,778 3,788 Common stock subject to repurchase or forfeiture 5 15 69 ESPP shares pending issuance 5 3 1 Total 9,362 5,796 3,858 Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Accounting Standards Not Yet Adopted |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe Company determines the fair value of its marketable securities based on one or more valuations from its investment and reporting service provider. The investment service provider values the securities using a hierarchical security pricing model that relies primarily on valuations provided by an industry-recognized valuation service. Such valuations may be based on trade prices in active markets for identical assets (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets, yield curves, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, and broker and dealer quotes, as well as other relevant economic measures. The following tables summarize the Company’s cash equivalents and marketable securities measured at fair value (in thousands): Fair Value Measurements Using As of December 31, 2022 Total Quoted Prices in Significant Significant Cash equivalents: U.S. Treasury securities $ 2,498 $ 2,498 $ — $ — Marketable securities: U.S. Treasury securities 244,945 244,945 — — U.S. Government agency securities 4,966 — 4,966 — Negotiable certificates of deposit 4,346 — 4,346 — Corporate debt securities 16,074 — 16,074 — Total $ 272,829 $ 247,443 $ 25,386 $ — Fair Value Measurements Using As of December 31, 2021 Total Quoted Prices in Significant Significant Marketable securities: U.S. Treasury securities $ 65,372 $ 65,372 $ — $ — Negotiable certificates of deposit 3,873 — 3,873 — Corporate debt securities 15,850 — 15,850 — Total $ 85,095 $ 65,372 $ 19,723 $ — |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The Company’s marketable securities, which consist of highly liquid marketable debt securities, are classified as available-for-sale and are stated at fair value. The following tables summarize the Company’s marketable securities (in thousands): As of December 31, 2022 Maturity Amortized Unrealized Unrealized Estimated U.S. Treasury securities 1 or less $ 230,349 $ 1 $ (2,283) $ 228,067 U.S. Government agency securities 1 or less 5,000 — (34) 4,966 Negotiable certificates of deposit 1 or less 3,911 1 (57) 3,855 Corporate debt securities 1 or less 16,360 — (286) 16,074 U.S. Treasury securities 1 - 2 16,919 — (41) 16,878 Negotiable certificates of deposit 1 - 2 490 1 — 491 Total $ 273,029 $ 3 $ (2,701) $ 270,331 As of December 31, 2021 Maturity Amortized Unrealized Unrealized Estimated U.S. Treasury securities 1 or less $ 2,492 $ — $ (1) $ 2,491 Negotiable certificates of deposit 1 or less 1,190 — (1) 1,189 U.S. Treasury securities 1 - 2 63,034 — (153) 62,881 Negotiable certificates of deposit 1 - 2 2,687 — (3) 2,684 Corporate debt securities 1 - 2 15,879 — (29) 15,850 Total $ 85,282 $ — $ (187) $ 85,095 |
Collaboration, License and Rese
Collaboration, License and Research Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Collaboration License And Research Agreements [Abstract] | |
Collaboration, License and Research Agreements | Collaboration, License and Research Agreements Research Collaboration and License Agreement with Eli Lilly and Company In April 2019, the Company entered into a Research Collaboration and License Agreement (the Lilly Agreement) with Eli Lilly and Company (Lilly) for the discovery, development and commercialization of AOC products directed against certain targets in immunology and other select indications on a worldwide basis. Under the Lilly Agreement, the Company granted Lilly an exclusive, worldwide, royalty-bearing license, with the right to sublicense (subject to certain conditions), under the Company’s technology to research, develop, manufacture and sell products containing AOCs that are directed to up to six mRNA targets. The Company retains the right to use its technology to perform its obligations under the Lilly Agreement and for all purposes not granted to Lilly. The Company agreed that it will not, itself or with a third party, research, develop, manufacture or commercialize or otherwise exploit any compound or product directed against targets subject to the Lilly Agreement. In consideration of the rights granted to Lilly under the Lilly Agreement, the Company received a one-time upfront fee of $20.0 million and is eligible to receive up to $60.0 million in development milestone payments, up to $140.0 million in regulatory milestone payments and up to $205.0 million in commercialization milestone payments per target. In addition, Lilly is obligated to reimburse the Company for research expenses, as defined in and incurred under the Lilly Agreement. Lilly is obligated to pay the Company a tiered royalty ranging from the mid-single to low-double digits on worldwide annual net sales of licensed products, subject to specified and capped reductions for the market entry of biosimilar products, loss of patent coverage of licensed products, and for payments owed to third parties for additional rights necessary to commercialize licensed products in the territory. Lilly’s royalty obligations and the Lilly Agreement will expire on a licensed product-by-licensed product and country-by-country basis on the later of ten years from the date of the first commercial sale or when there is no longer a valid patent claim covering such licensed product in such country. The Company has identified multiple promises to deliver goods and services, which include at inception of the agreement: (i) a license to technology and patents, information and know-how; and (ii) collaboration, including research services and technical and regulatory support provided by the Company. At inception and through December 31, 2022, the Company has identified one performance obligation for all the deliverables under the Lilly Agreement since the delivered elements are either not capable of being distinct or are not distinct within the context of the contract. Accordingly, the Company will recognize revenue for the fixed or determinable collaboration in an amount proportional to the collaboration expenses incurred and the total estimated collaboration expenses over the five-year period in which it expects to deliver its performance obligations. The Company periodically reviews and updates the estimated collaboration expenses, when appropriate, which adjusts the percentage of revenue that is recognized for the period. The Company recognized $1.0 million of additional revenue for the Lilly Agreement for the three months ended December 31, 2022 due to revisions in the total estimated collaboration expenses expected for the remaining collaboration period. In connection with the Lilly Agreement, the Company recognized revenue of $9.0 million, $9.1 million, and $6.8 million for the years ended December 31, 2022, 2021, and 2020, respectively. Collaboration receivables related to the Lilly Agreement were $2.1 million and $0.9 million as of December 31, 2022 and 2021, respectively, which are included in prepaid and other assets on the balance sheets. A reconciliation of the closing balance of deferred revenue related to the Lilly Agreement for the years ended December 31, 2022 and 2021 is as follows (in thousands): Balance at December 31, 2020 $ 15,840 Revenue recognized (4,732) Balance at December 31, 2021 11,108 Revenue recognized (4,933) Balance at December 31, 2022 $ 6,175 Research Agreement with MyoKardia, Inc. In December 2020, the Company entered into a research collaboration (the MyoKardia Agreement) with MyoKardia, Inc. (MyoKardia), a wholly-owned subsidiary of Bristol Myers Squibb, to demonstrate the potential utility of AOCs in cardiac tissue by leveraging MyoKardia’s genetic cardiomyopathy platform including, among other aspects, its novel target discovery engine and proprietary cardiac disease models. In connection with the MyoKardia Agreement, the Company recognized an immaterial amount of revenue in each of the periods presented. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment consist of the following (in thousands): December 31, 2022 2021 Laboratory equipment $ 7,217 $ 4,775 Computers and software 116 116 Office furniture and equipment 1,792 1,398 Leasehold improvements 249 249 Property and equipment, gross 9,374 6,538 Less accumulated depreciation (3,120) (1,733) Total property and equipment, net $ 6,254 $ 4,805 Depreciation expense related to property and equipment was $1.4 million, $0.6 million, and $0.4 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Agreements The Company determines if an arrangement is a finance lease, operating lease or short-term lease at inception and accounts for the arrangement under the relevant accounting literature. During the periods presented, the Company was party to various non-cancellable office and laboratory space operating leases and short-term leases. Under the relevant guidance, the Company recognizes operating lease right-of-use (ROU) assets and liabilities based on the present value of the future minimum lease payments over the lease term at the commencement date, using the Company’s assumed incremental borrowing rate, and amortizes the ROU assets and liabilities over the lease term. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Short-term leases are not subject to recognition of an ROU asset or liability or straight-line lease expense requirements. As of December 31, 2022, the Company’s ROU assets and liabilities related to the operating lease for the Company headquarters are as follows (in thousands): ROU assets $ 8,755 Lease liabilities, current portion $ 3,105 Lease liabilities, net of current portion 7,582 Total lease liabilities $ 10,687 As of December 31, 2022, maturities of the lease liabilities due under the operating lease are as follows (in thousands): Year ending December 31, 2023 $ 3,105 2024 3,199 2025 3,295 2026 3,111 Total lease payments 12,710 Less imputed interest (2,023) Total operating lease liabilities 10,687 Less lease liabilities, current portion (3,105) Lease liabilities, net of current portion $ 7,582 Supplemental cash flow and other information related to leases was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid included in operating cash flows $ 1,762 $ 234 $ 163 Weighted-average remaining lease term (in years) 3.9 4.9 — Weighted-average discount rate 5.5 % 5.5 % — % Rent expense was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Operating leases $ 2,749 $ 946 $ 453 Short-term leases 93 216 36 Total rent expense $ 2,842 $ 1,162 $ 489 Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. There are no matters currently outstanding for which any liabilities have been accrued. Contractual Obligations The Company enters into contracts in the normal course of business for contract research services, contract manufacturing services, professional services, and other services and products for operating purposes. These contracts may include certain provisions that could require payments for early termination. The amount of |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Amended and Restated Certificate of Incorporation On June 16, 2020, the Company’s certificate of incorporation was amended and restated to authorize 400,000,000 shares of common stock and 40,000,000 shares of undesignated preferred stock, each with a par value of $0.0001 per share. There was no preferred stock outstanding as of December 31, 2022, 2021, or 2020. Common Stock On June 16, 2020, the Company completed its IPO in which it sold 16,560,000 shares of common stock at an offering price of $18.00 per share. Proceeds from the IPO, net of underwriting discounts, commissions and offering costs of $24.0 million, were $274.1 million. On July 2, 2021, the Company entered into a sales agreement (the 2021 Sales Agreement) with Cowen and Company, LLC (the Sales Agent), under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $150.0 million through the Sales Agent. Sales of the Company’s common stock made pursuant to the 2021 Sales Agreement are made under the Company’s shelf registration statement on Form S-3, which became automatically effective upon filing on July 2, 2021 (the Shelf Registration Statement). During the years ended December 31, 2022 and 2021, the Company sold 7,771,812 and 780,549 shares of its common stock, respectively, pursuant to the 2021 Sales Agreement and received net proceeds of $121.1 million and $19.6 million, respectively, after deducting offering-related transaction costs and commissions of $3.7 million and $0.7 million, respectively. On August 6, 2021, the Company completed a public offering of 9,200,000 shares of its common stock at a public offering price of $18.00 per share. The net proceeds from the offering were $155.1 million, after deducting underwriting discounts, commissions and offering costs of $10.5 million. The shares sold in the offering were registered pursuant to the Company’s Shelf Registration Statement. On November 8, 2022, the Company entered into a sales agreement (the 2022 Sales Agreement) with the Sales Agent, with substantially similar terms as the 2021 Sales Agreement. Under the 2022 Sales Agreement, the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $200.0 million through the Sales Agent. Sales of the shares of common stock, if any, will be made at prevailing market prices at the time of sale, or as otherwise agreed with the Sales Agent. The Company is not obligated to sell, and the Sales Agent is not obligated to buy or sell, any shares of common stock under the 2022 Sales Agreement. Upon entry into the 2022 Sales Agreement, the 2021 Sales Agreement was terminated. See Note 10 (Subsequent Events) for information on additional shares sold after December 31, 2022. On December 15, 2022, the Company completed a public offering of 13,800,000 shares of its common stock at a public offering price of $17.25 per share. The net proceeds from the offering were $223.8 million, after deducting underwriting discounts, commissions and offering costs of $14.3 million. The shares sold in the offering were registered pursuant to the Company’s Shelf Registration Statement. Convertible Preferred Stock Through December 2019, the company issued an aggregate of 37,267,331 shares of convertible preferred stock and issued an additional 537,232 shares of convertible preferred stock in January 2020. In connection with the completion of the IPO in June 2020, all of the outstanding shares of convertible preferred stock were converted into 17,921,069 shares of the Company’s common stock. Equity Incentive Plans The Company's board of directors adopted, and the company's shareholders approved, the 2013 Equity Incentive Plan (the 2013 Plan) and the 2020 Incentive Award Plan (the 2020 Plan). Under the plans, the Company may grant stock options, restricted stock, dividend equivalents, restricted stock units, stock appreciation rights, and other stock or cash-based awards to individuals who are then employees, officers, non- employee directors or consultants of the Company. The Company ceased granting awards under the 2013 Plan in June 2020 upon adopting the 2020 Plan. A total of 3,900,000 shares of common stock were initially reserved for issuance under the 2020 Plan. The number of shares of common stock available for issuance under the 2020 Plan will be increased annually on the first day of each fiscal year during the term of the 2020 Plan, beginning with the 2021 fiscal year, by an amount equal to the lesser of (a) 5% of the shares of common stock outstanding on the final day of the immediately preceding calendar year or (b) such smaller number of shares as determined by the Company’s board of directors. Through December 31, 2022, 4,266,161 additional shares were reserved for issuance under the 2020 Plan. In December 2022, the Company’s board of directors adopted the 2022 Employment Inducement Incentive Award Plan (the Inducement Plan). Under the Inducement Plan, the Company may grant non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock or cash-based awards to an employee in connection with his or her commencement of employment with the Company or an affiliate. A total of 1,500,000 shares of common stock were reserved for issuance under the Inducement Plan. Stock Options Options granted from the 2013 Plan, 2020 Plan, and the Inducement Plan are exercisable at various dates and will expire no more than ten years from their date of grant. Options generally vest over a four-year period. Prior to the IPO, the exercise price of options was determined by the Company’s board of directors. Following the IPO, the Company grants options with an exercise price equal to the fair market value of the Company’s stock on the date of the option grant. Stock option activity in 2022 for employee and non-employee awards and related information is as follows (in thousands, except per share and contractual term data): Shares Available for Grant Number of Outstanding Options Weighted- Weighted- Aggregate Balance at December 31, 2021 2,575 5,778 $ 14.49 Additional shares authorized under 2020 Plan 2,387 — Shares authorized under Inducement Plan 1,500 — Granted (4,450) 4,450 15.42 Exercised — (351) 1.34 Forfeited/expired 525 (525) 17.05 Balance at December 31, 2022 2,537 9,352 $ 15.28 8.34 $ 72,280 Vested and expected to vest at December 31, 2022 9,352 $ 15.28 8.34 $ 72,280 Exercisable at December 31, 2022 3,659 $ 13.42 7.64 $ 36,120 The aggregate intrinsic values presented in the table above were calculated as the difference between the closing price of the Company’s common stock at December 31, 2022 and the exercise price of stock options that had strike prices below the closing price. The following summarizes additional information regarding stock options (in thousands, except per share data): Year Ended December 31, 2022 2021 2020 Cash received from options exercised $ 470 $ 930 $ 53 Intrinsic value of options exercised $ 6,724 $ 3,436 $ 516 Weighted-average grant date fair value per share $ 11.11 $ 16.78 $ 11.63 The total intrinsic values of options exercised were calculated as the difference between the fair value of the Company’s common stock at the time of the option exercise and the exercise price of that stock option. Employee Stock Purchase Plan In June 2020, the Company adopted the ESPP, which permits participants to contribute up to 15% of their eligible compensation during defined rolling six-month offering periods to purchase the Company’s common stock. The purchase price of the shares will be 85% of the lower of the fair market value of the Company’s common stock on the first day of trading of the offering period or on the applicable purchase date. The Company issued 90,535, 33,147, and 28,979 shares of common stock under the ESPP during the years ended December 31, 2022, 2021, and 2020, respectively. The Company had an outstanding liability of $78 thousand at December 31, 2022, which is included in accounts payable and accrued liabilities on the balance sheet, for employee contributions to the ESPP for shares pending issuance at the end of the current offering period. As of December 31, 2022, 548,028 shares of common stock were available for issuance under the ESPP. Stock-Based Compensation Expense The assumptions used in the Black-Scholes model to determine the fair value of stock option grants and shares purchasable under the ESPP were as follows: Options ESPP Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 Risk-free interest rate 1.5% - 4.2% 0.5% - 1.3% 0.3% - 1.5% 2.2% - 4.7% 0.1% 0.1% - 0.2% Expected volatility 85% 86% - 88% 88% - 92% 78% - 79% 69% - 75% 75% - 96% Expected term (in years) 5.5 - 6.1 5.5 - 6.1 5.4 - 6.1 0.5 0.5 0.5 Expected dividend yield —% —% —% —% —% —% Risk-Free Interest Rate. The Company bases the risk-free interest rate assumption for equity awards on the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. Expected Volatility. Due to the limited trading history of the Company’s common stock, the expected volatility assumption is based on volatilities of a peer group of similar companies whose share prices are publicly available. The peer group was developed based on companies in the biotechnology industry. 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 Term. The Company's limited option exercise history does not provide a reasonable basis for estimating expected term, therefore the Company has estimated the expected life of its stock options using the simplified method, whereby the expected life equals the average of the vesting term and the original contractual term of the option. The expected life assumption for employee stock purchases under the ESPP is six months to conform with the six-month ESPP offering period. Expected Dividend Yield. The Company’s expected dividend yield assumption is zero as it has never paid dividends and has no present intention to do so in the future. The allocation of stock-based compensation expense was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Research and development expense $ 15,222 $ 9,228 $ 1,895 General and administrative expense 11,917 7,828 2,415 Total stock-based compensation expense $ 27,139 $ 17,056 $ 4,310 As of December 31, 2022, the unrecognized compensation cost related to outstanding time-based options was $65.1 million, which is expected to be recognized over a weighted-average period of 2.6 years. As of December 31, 2022, the unrecognized compensation cost related to stock purchase rights under the ESPP was $0.4 million, which is expected to be recognized over a weighted-average period of 0.5 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company operated as a nontaxable partnership until its conversion on March 31, 2019. The Company had deferred tax assets in existence on March 31, 2019 when the Company became a taxable entity. The Company has retained a valuation allowance on these deferred tax assets due to the uncertainty that such assets will be realized. No provision for income taxes was recorded for the years ended December 31, 2022, 2021, and 2020. A reconciliation of income taxes to the amount computed by applying the statutory federal income tax rate to the net loss is summarized as follows (in thousands): Year Ended December 31, 2022 2021 2020 Income tax expense (benefit) at statutory rates $ (36,539) $ (24,784) $ (9,315) State income tax, net of federal benefit (11,821) (7,868) (3,004) Permanent items 1,078 210 1 Reserve for uncertain tax positions 2,583 1,170 398 Research and development tax credits (9,983) (4,792) (1,639) Valuation allowance 54,093 35,326 13,488 Other 589 738 71 Income tax expense (benefit) $ — $ — $ — Significant components of the Company’s deferred tax assets as of December 31, 2022, and 2021 are shown below (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 56,854 $ 41,443 Section 174 R&E capitalization 25,039 — Research and development tax credits 12,947 5,586 Deferred revenue 1,762 3,117 Accrued expenses 3,909 477 Intangibles and fixed assets 1,822 2,137 Lease liability 3,000 3,291 Stock-based compensation 8,614 3,668 Total deferred tax assets 113,947 59,719 Less valuation allowance (111,489) (56,693) Net deferred tax assets 2,458 3,026 Deferred tax liabilities: Right-of-use asset (2,458) (3,026) Total deferred tax liabilities (2,458) (3,026) Net deferred tax assets $ — $ — The Company has established a full valuation allowance against its net deferred tax assets due to the uncertainty that such assets will be realized. The Company periodically evaluates the recoverability of the deferred tax assets. At such time as it is determined that it is more likely than not that the deferred tax assets will be realizable, the valuation allowance will be released. The change in the valuation allowance was an increase of $54.8 million and $35.4 million for the years ended December 31, 2022 and 2021, respectively. At December 31, 2022, the Company had federal and state net operating loss (NOL) carryforwards of $172.9 million and $293.2 million, respectively. The state NOLs begin to expire in 2039 unless previously utilized. At December 31, 2022, the Company had federal and state research and development tax credits of $9.0 million and $4.8 million, respectively. The federal research and development tax credits begin to expire in 2039 unless previously utilized, and the state credits carry forward indefinitely. At December 31, 2022, the Company had federal orphan drug tax credits of $4.6 million, which begin to expire in 2041. Pursuant to IRC Section 382 and Section 383, the Company’s ability to use NOL and R&D tax credit carryforwards (tax attribute carryforwards) to offset future taxable income is limited if the Company experiences a cumulative change in ownership of more than 50% within a three-year testing period. The Company is in the process of completing an ownership change analysis pursuant to IRC Section 382 through December 31, 2022. The analysis is expected to be completed in 2023. If ownership changes within the meaning of IRC Section 382 have occurred, the amount of remaining tax attribute carryforwards available to offset future taxable income and income taxes in future years may be significantly restricted or eliminated. Further, the Company’s deferred tax assets, along with the corresponding valuation allowance, associated with such tax attributes could be significantly reduced upon an ownership change within the meaning of IRC Section 382. Due to the existence of the valuation allowance, changes in the Company’s deferred tax assets from any such limitation will not impact the Company’s effective tax rate. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Gross unrecognized tax benefits at the beginning of the year $ 1,996 $ 671 $ 156 Increases related to current year positions 2,614 1,283 446 Increases related to prior year positions 161 42 62 Other true up — — 7 Gross unrecognized tax benefits at the end of the year $ 4,771 $ 1,996 $ 671 The unrecognized tax benefit amounts are reflected in the determination of the Company’s deferred tax assets. If recognized, none of these amounts would affect the Company’s effective tax rate, since it would be offset by a corresponding adjustment to the deferred tax asset valuation allowance. The Company does not foresee material changes to its liability for uncertain tax benefits within the next twelve months. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties as of December 31, 2022 or 2021. As of December 31, 2022, the Company’s tax years since conversion to a corporation in 2019 are subject to examination by U.S. federal and various state taxing authorities. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsFrom January 1, 2023 through February 28, 2023, the Company sold 943,461 shares of its common stock pursuant to the 2022 Sales Agreement and received net proceeds of $22.3 million, after deducting offering-related transaction costs and commissions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC). The financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these financial statements are not necessarily indicative of the results that may be expected for any future periods. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. The most significant estimates in the Company’s financial statements relate to revenue recognition, stock-based compensation, and accrued research and development costs. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Restricted cash represents cash held as collateral for the letter of credit required under the Company’s facility lease and is reported as a long-term asset in the accompanying balance sheets. |
Marketable Securities | Marketable Securities The Company’s marketable securities primarily consist of U.S. Government and corporate debt securities. The Company classifies its marketable securities as available-for-sale and records such assets at estimated fair value in the balance sheets, with unrealized gains and losses, if any, reported as a component of other comprehensive income (loss) within the statements of operations and comprehensive loss and as a separate component of stockholders’ equity. The Company classifies marketable securities with remaining maturities greater than one year as current assets because such marketable securities are available to fund the Company’s current operations. Realized gains and losses are calculated on the specific identification method and recorded as interest income. There were no realized gains and losses for the years ended December 31, 2022, 2021, and 2020. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and marketable securities. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has established guidelines regarding approved investments, credit quality, diversification, liquidity and maturities of investments, which are designed to maintain safety and liquidity. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash balances due to the financial position of the depository institutions in which those deposits are held. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs, such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. None of the Company’s non-financial assets are recorded at fair value on a non-recurring basis. The carrying amounts reflected in the Company’s balance sheets for prepaid and other assets and accounts payable and accrued liabilities approximate their fair values due to their short-term nature. The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. No transfers between levels have occurred during the periods presented. |
Property and Equipment, net | Property and Equipment, net Property and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets, which ranges from three |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. An impairment loss is recorded if and when events and circumstances indicate that assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company has not recognized any impairment losses in any of the periods presented in these financial statements. |
Segment Information | Segment InformationOperating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by management in making decisions regarding resource allocation and assessing performance. The Company manages its operations as a single operating segment in the United States for the purposes of assessing performance and making operating decisions. |
Revenue Recognition | Revenue Recognition To date, all the Company’s revenue has been derived from collaboration and research agreements. The terms of these arrangements include the following types of payments to the Company: non-refundable, upfront license fees; development, regulatory and commercial milestone payments; payments for research and development services provided by the Company or for manufacturing supply services the Company provides through its contract manufacturers; and royalties on net sales of licensed products. The Company performs the following steps in determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of these agreements: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when, or as, the Company satisfies each performance obligation. The Company receives payments from its collaborators based on billing schedules established in each contract. Upfront and other payments may require deferral of revenue recognition to a future period until the Company performs its obligations under its research and collaboration arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. |
Research and Development Costs and Accruals | Research and Development Costs and Accruals Research and development costs are expensed as incurred and include salaries, benefits and stock-based compensation associated with research and development personnel, third-party research and development expenses, license fees, laboratory supplies, facilities, overhead costs, and consultants. Nonrefundable advance payments for goods and services that will be used in future research and development activities are capitalized and recorded as expense in the period that the Company receives the goods or when services are performed. The Company has entered into various research and development contracts with research institutions, clinical research organizations, clinical manufacturing organizations and other companies. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and payments made in advance of performance are reflected in the accompanying consolidated balance sheets as prepaid and other assets or accrued liabilities. The Company records accruals for estimated costs incurred for ongoing research and development activities. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the services, including the phase or completion of events, invoices received and contracted costs. Significant judgments and estimates may be made in determining the prepaid or accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. Upfront and milestone payments to acquire contractual rights to licensed technology are expensed when incurred if there is uncertainty in the Company receiving future economic benefit from the acquired contractual rights. Certain of these contractual rights may require the Company to make additional milestone payments upon initiation of a pivotal trial and the U.S. Food and Drug Administration approval, which are not expected to exceed $8.5 million. |
Patent Costs | Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expense and expensed as incurred since recoverability of such expenditures is uncertain. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification (ASC) 740, Income Taxes , which provides for deferred taxes using the asset and liability method. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company is subject to taxation in the United States and various state jurisdictions. As of December 31, 2022, the Company’s tax years since conversion to a corporation in 2019 are subject to examination by taxing authorities. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Lease right-of-use assets represent Company's right to use an underlying asset for the lease term and lease liabilities represent Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in most of our leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components, and costs related to leases with terms of less than 12 months are expensed as incurred. The Company has lease agreements that contain both lease and non-lease components. The Company does not separate lease components from non-lease components on its office and laboratory space leases. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for stock option grants is recorded at the estimated fair value of the award as of the grant date and is recognized as expense on a straight-line basis over the requisite service period (usually the vesting period) of the stock-based award with forfeitures recognized as incurred. Stock-based compensation expense for employee stock purchases under the Company’s Employee Stock Purchase Plan (the ESPP) is recorded at the estimated fair value of the purchase as of the plan enrollment date and is recognized as expense on a straight-line basis over the applicable six-month ESPP offering period. The estimation of fair value for stock-based compensation requires management to make estimates and judgments about, among other things, the estimated life of options and volatility of the Company’s common stock. These judgments directly affect the amount of compensation expense that will be recognized. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on marketable securities. Comprehensive gains (losses) have been reflected in the statements of operations and comprehensive loss for all periods presented. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, adjusted for the weighted-average number of common shares outstanding that are subject to repurchase or forfeiture. The Company has excluded 10,168, 33,600, and 123,285 weighted-average shares subject to repurchase or forfeiture from the weighted-average number of common shares outstanding for the years ended December 31, 2022, 2021, and 2020, respectively. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the common stock equivalent securities would be anti-dilutive. |
Recently Issued Accounting Pronouncements and Accounting Standards Not Yet Adopted | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Accounting Standards Not Yet Adopted |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities (in thousands) December 31, 2022 2021 Accounts payable $ 4,637 $ 2,806 Accrued non-clinical liabilities 22,535 10,583 Accrued clinical liabilities 5,400 696 Total accounts payable and accrued liabilities $ 32,572 $ 14,085 |
Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss Per Share/Unit | Common stock equivalent securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in common stock equivalent shares; in thousands): December 31, 2022 2021 2020 Common stock options issued and outstanding 9,352 5,778 3,788 Common stock subject to repurchase or forfeiture 5 15 69 ESPP shares pending issuance 5 3 1 Total 9,362 5,796 3,858 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash Equivalents and Marketable Securities Measured at Fair Value | The following tables summarize the Company’s cash equivalents and marketable securities measured at fair value (in thousands): Fair Value Measurements Using As of December 31, 2022 Total Quoted Prices in Significant Significant Cash equivalents: U.S. Treasury securities $ 2,498 $ 2,498 $ — $ — Marketable securities: U.S. Treasury securities 244,945 244,945 — — U.S. Government agency securities 4,966 — 4,966 — Negotiable certificates of deposit 4,346 — 4,346 — Corporate debt securities 16,074 — 16,074 — Total $ 272,829 $ 247,443 $ 25,386 $ — Fair Value Measurements Using As of December 31, 2021 Total Quoted Prices in Significant Significant Marketable securities: U.S. Treasury securities $ 65,372 $ 65,372 $ — $ — Negotiable certificates of deposit 3,873 — 3,873 — Corporate debt securities 15,850 — 15,850 — Total $ 85,095 $ 65,372 $ 19,723 $ — |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | The Company’s marketable securities, which consist of highly liquid marketable debt securities, are classified as available-for-sale and are stated at fair value. The following tables summarize the Company’s marketable securities (in thousands): As of December 31, 2022 Maturity Amortized Unrealized Unrealized Estimated U.S. Treasury securities 1 or less $ 230,349 $ 1 $ (2,283) $ 228,067 U.S. Government agency securities 1 or less 5,000 — (34) 4,966 Negotiable certificates of deposit 1 or less 3,911 1 (57) 3,855 Corporate debt securities 1 or less 16,360 — (286) 16,074 U.S. Treasury securities 1 - 2 16,919 — (41) 16,878 Negotiable certificates of deposit 1 - 2 490 1 — 491 Total $ 273,029 $ 3 $ (2,701) $ 270,331 As of December 31, 2021 Maturity Amortized Unrealized Unrealized Estimated U.S. Treasury securities 1 or less $ 2,492 $ — $ (1) $ 2,491 Negotiable certificates of deposit 1 or less 1,190 — (1) 1,189 U.S. Treasury securities 1 - 2 63,034 — (153) 62,881 Negotiable certificates of deposit 1 - 2 2,687 — (3) 2,684 Corporate debt securities 1 - 2 15,879 — (29) 15,850 Total $ 85,282 $ — $ (187) $ 85,095 |
Collaboration, License and Re_2
Collaboration, License and Research Agreements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Collaboration License And Research Agreements [Abstract] | |
Summary of Reconciliation of Deferred Revenue Related to Lilly Agreement | A reconciliation of the closing balance of deferred revenue related to the Lilly Agreement for the years ended December 31, 2022 and 2021 is as follows (in thousands): Balance at December 31, 2020 $ 15,840 Revenue recognized (4,732) Balance at December 31, 2021 11,108 Revenue recognized (4,933) Balance at December 31, 2022 $ 6,175 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2022 2021 Laboratory equipment $ 7,217 $ 4,775 Computers and software 116 116 Office furniture and equipment 1,792 1,398 Leasehold improvements 249 249 Property and equipment, gross 9,374 6,538 Less accumulated depreciation (3,120) (1,733) Total property and equipment, net $ 6,254 $ 4,805 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Leases Recorded On Balance Sheet | As of December 31, 2022, the Company’s ROU assets and liabilities related to the operating lease for the Company headquarters are as follows (in thousands): ROU assets $ 8,755 Lease liabilities, current portion $ 3,105 Lease liabilities, net of current portion 7,582 Total lease liabilities $ 10,687 |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2022, maturities of the lease liabilities due under the operating lease are as follows (in thousands): Year ending December 31, 2023 $ 3,105 2024 3,199 2025 3,295 2026 3,111 Total lease payments 12,710 Less imputed interest (2,023) Total operating lease liabilities 10,687 Less lease liabilities, current portion (3,105) Lease liabilities, net of current portion $ 7,582 |
Lease, Cost | Supplemental cash flow and other information related to leases was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid included in operating cash flows $ 1,762 $ 234 $ 163 Weighted-average remaining lease term (in years) 3.9 4.9 — Weighted-average discount rate 5.5 % 5.5 % — % Rent expense was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Operating leases $ 2,749 $ 946 $ 453 Short-term leases 93 216 36 Total rent expense $ 2,842 $ 1,162 $ 489 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Stock Option Activity | Stock option activity in 2022 for employee and non-employee awards and related information is as follows (in thousands, except per share and contractual term data): Shares Available for Grant Number of Outstanding Options Weighted- Weighted- Aggregate Balance at December 31, 2021 2,575 5,778 $ 14.49 Additional shares authorized under 2020 Plan 2,387 — Shares authorized under Inducement Plan 1,500 — Granted (4,450) 4,450 15.42 Exercised — (351) 1.34 Forfeited/expired 525 (525) 17.05 Balance at December 31, 2022 2,537 9,352 $ 15.28 8.34 $ 72,280 Vested and expected to vest at December 31, 2022 9,352 $ 15.28 8.34 $ 72,280 Exercisable at December 31, 2022 3,659 $ 13.42 7.64 $ 36,120 Year Ended December 31, 2022 2021 2020 Cash received from options exercised $ 470 $ 930 $ 53 Intrinsic value of options exercised $ 6,724 $ 3,436 $ 516 Weighted-average grant date fair value per share $ 11.11 $ 16.78 $ 11.63 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the Black-Scholes model to determine the fair value of stock option grants and shares purchasable under the ESPP were as follows: Options ESPP Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 Risk-free interest rate 1.5% - 4.2% 0.5% - 1.3% 0.3% - 1.5% 2.2% - 4.7% 0.1% 0.1% - 0.2% Expected volatility 85% 86% - 88% 88% - 92% 78% - 79% 69% - 75% 75% - 96% Expected term (in years) 5.5 - 6.1 5.5 - 6.1 5.4 - 6.1 0.5 0.5 0.5 Expected dividend yield —% —% —% —% —% —% |
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The assumptions used in the Black-Scholes model to determine the fair value of stock option grants and shares purchasable under the ESPP were as follows: Options ESPP Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 Risk-free interest rate 1.5% - 4.2% 0.5% - 1.3% 0.3% - 1.5% 2.2% - 4.7% 0.1% 0.1% - 0.2% Expected volatility 85% 86% - 88% 88% - 92% 78% - 79% 69% - 75% 75% - 96% Expected term (in years) 5.5 - 6.1 5.5 - 6.1 5.4 - 6.1 0.5 0.5 0.5 Expected dividend yield —% —% —% —% —% —% |
Schedule of Allocated Stock-based Compensation Expense | The allocation of stock-based compensation expense was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Research and development expense $ 15,222 $ 9,228 $ 1,895 General and administrative expense 11,917 7,828 2,415 Total stock-based compensation expense $ 27,139 $ 17,056 $ 4,310 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Taxes Computed by Applying Statutory Federal Income Tax Rate | A reconciliation of income taxes to the amount computed by applying the statutory federal income tax rate to the net loss is summarized as follows (in thousands): Year Ended December 31, 2022 2021 2020 Income tax expense (benefit) at statutory rates $ (36,539) $ (24,784) $ (9,315) State income tax, net of federal benefit (11,821) (7,868) (3,004) Permanent items 1,078 210 1 Reserve for uncertain tax positions 2,583 1,170 398 Research and development tax credits (9,983) (4,792) (1,639) Valuation allowance 54,093 35,326 13,488 Other 589 738 71 Income tax expense (benefit) $ — $ — $ — |
Components of Deferred Tax Assets | Significant components of the Company’s deferred tax assets as of December 31, 2022, and 2021 are shown below (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 56,854 $ 41,443 Section 174 R&E capitalization 25,039 — Research and development tax credits 12,947 5,586 Deferred revenue 1,762 3,117 Accrued expenses 3,909 477 Intangibles and fixed assets 1,822 2,137 Lease liability 3,000 3,291 Stock-based compensation 8,614 3,668 Total deferred tax assets 113,947 59,719 Less valuation allowance (111,489) (56,693) Net deferred tax assets 2,458 3,026 Deferred tax liabilities: Right-of-use asset (2,458) (3,026) Total deferred tax liabilities (2,458) (3,026) Net deferred tax assets $ — $ — |
Summarizes of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Gross unrecognized tax benefits at the beginning of the year $ 1,996 $ 671 $ 156 Increases related to current year positions 2,614 1,283 446 Increases related to prior year positions 161 42 62 Other true up — — 7 Gross unrecognized tax benefits at the end of the year $ 4,771 $ 1,996 $ 671 |
Description of Business and B_2
Description of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 30 Months Ended | |||
Jun. 16, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||
Preferred stock, shares authorized (in shares) | 40,000,000 | |||||
Net proceeds from Issuance of common stock after deducting offering-related transaction costs and commissions | $ 344,779 | $ 174,677 | $ 274,054 | $ 519,300 | ||
Accumulated deficit | (358,544) | $ (184,549) | (358,544) | |||
Cash, cash equivalents and marketable securities | $ 610,700 | $ 610,700 | ||||
Initial Public Offering | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Sale of stock number of shares issued in transaction (in shares) | 16,560,000 | |||||
Sale of stock, price per share (in dollars per share) | $ 18 | |||||
Proceeds from the IPO, net of underwriting discounts, commissions and offering costs | $ 274,100 | |||||
Outstanding shares of convertible preferred stock converted into common stock (in shares) | 17,921,069 | |||||
Undesignated Preferred Stock | Initial Public Offering | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 40,000,000 | |||||
Common Stock | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Outstanding shares of convertible preferred stock converted into common stock (in shares) | 17,921,000 | |||||
Common Stock | Initial Public Offering | ||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||
Outstanding shares of convertible preferred stock converted into common stock (in shares) | 17,921,069 | |||||
Warrant to purchase of common stock (in shares) | 7,809 | |||||
Common stock, shares authorized (in shares) | 400,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Summary Of Significant Accounting Policies [Line Items] | |||
Realized gains and losses on marketable securities | $ 0 | $ 0 | $ 0 |
Other-than-temporary impairments on marketable securities | $ 0 | $ 0 | $ 0 |
Number of operating segments | Segment | 1 | ||
Weighted-average shares subject to repurchase or forfeiture (in shares) | shares | 10,168 | 33,600 | 123,285 |
Employee Stock | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Award offering period | 6 months | ||
License | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Contract with customer, liability | $ 8,500,000 | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of assets | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Accounts payable | $ 4,637 | $ 2,806 |
Accrued non-clinical liabilities | 22,535 | 10,583 |
Accrued clinical liabilities | 5,400 | 696 |
Total accounts payable and accrued liabilities | $ 32,572 | $ 14,085 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss Per Share/Unit (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total (in shares) | 9,362 | 5,796 | 3,858 |
Common stock options issued and outstanding | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total (in shares) | 9,352 | 5,778 | 3,788 |
Common stock subject to repurchase or forfeiture | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total (in shares) | 5 | 15 | 69 |
ESPP shares pending issuance | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Total (in shares) | 5 | 3 | 1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Cash Equivalents and Marketable Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | $ 270,331 | $ 85,095 |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 272,829 | 85,095 |
Recurring | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 2,498 | |
Recurring | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 244,945 | 65,372 |
Recurring | U.S. Government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 4,966 | |
Recurring | Negotiable certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 4,346 | 3,873 |
Recurring | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 16,074 | 15,850 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 247,443 | 65,372 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 2,498 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 244,945 | 65,372 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Negotiable certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 25,386 | 19,723 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 4,966 | |
Recurring | Significant Other Observable Inputs (Level 2) | Negotiable certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 4,346 | 3,873 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 16,074 | 15,850 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents: | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Negotiable certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities: | $ 0 | $ 0 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 273,029 | $ 85,282 |
Unrealized Gains | 3 | 0 |
Unrealized Losses | (2,701) | (187) |
Estimated Fair Value, current | 270,331 | 85,095 |
Estimated Fair Value | 270,331 | 85,095 |
U.S. Treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost, current | 230,349 | 2,492 |
Amortized Cost, noncurrent | 16,919 | 63,034 |
Estimated Fair Value, current | 228,067 | 2,491 |
Estimate Fair Value, noncurrent | 16,878 | 62,881 |
U.S. Treasury securities | 1 or less | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 1 | 0 |
Unrealized Losses | (2,283) | (1) |
U.S. Treasury securities | 1 - 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 0 | 0 |
Unrealized Losses | (41) | (153) |
U.S. Government agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost, current | 5,000 | |
Estimated Fair Value, current | 4,966 | |
U.S. Government agency securities | 1 or less | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 0 | |
Unrealized Losses | (34) | |
Negotiable certificates of deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost, current | 3,911 | 1,190 |
Amortized Cost, noncurrent | 490 | 2,687 |
Estimated Fair Value, current | 3,855 | 1,189 |
Estimate Fair Value, noncurrent | 491 | 2,684 |
Negotiable certificates of deposit | 1 or less | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 1 | 0 |
Unrealized Losses | (57) | (1) |
Negotiable certificates of deposit | 1 - 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | (3) |
Corporate debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost, current | 16,360 | |
Amortized Cost, noncurrent | 15,879 | |
Estimated Fair Value, current | 16,074 | |
Estimate Fair Value, noncurrent | 15,850 | |
Corporate debt securities | 1 or less | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 0 | |
Unrealized Losses | $ (286) | |
Corporate debt securities | 1 - 2 | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Gains | 0 | |
Unrealized Losses | $ (29) |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, available-for-sale, unrealized loss | $ (2.7) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer | $ 1.6 |
Collaboration, License and Re_3
Collaboration, License and Research Agreements - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 USD ($) Product | Dec. 31, 2022 USD ($) Obligation | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Collaboration revenue | $ 9,224,000 | $ 9,326,000 | $ 6,787,000 | |
Research Collaboration and License Agreement with Eli Lilly | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Upfront fees received | $ 20,000,000 | |||
License agreement expiry period | 10 years | |||
Number of performance obligation | Obligation | 1 | |||
Period for expects performance obligation | 5 years | |||
Contract with customer, asset, cumulative catch-up adjustment to revenue, change in measure of progress | $ 1,000,000 | |||
Collaboration revenue | 9,000,000 | 9,100,000 | $ 6,800,000 | |
Collaboration receivables | $ 2,100,000 | $ 900,000 | ||
Research Collaboration and License Agreement with Eli Lilly | Maximum | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Rights to antibody oligonucleotide conjugates for messengers RNA targets. | Product | 6 | |||
Development milestone payment eligible to receive per target | $ 60,000,000 | |||
Regulatory milestone payment eligible to receive per target | 140,000,000 | |||
Commercialization milestone payment eligible to receive | $ 205,000,000 |
Collaboration, License and Re_4
Collaboration, License and Research Agreements - Reconciliation of Deferred Revenue Related to Lilly Agreement (Details) - Research Collaboration and License Agreement with Eli Lilly - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 11,108 | $ 15,840 |
Revenue recognized | (4,933) | (4,732) |
Beginning balance | $ 6,175 | $ 11,108 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 9,374 | $ 6,538 |
Less accumulated depreciation | (3,120) | (1,733) |
Total property and equipment, net | 6,254 | 4,805 |
Laboratory equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,217 | 4,775 |
Computers and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 116 | 116 |
Office furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,792 | 1,398 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 249 | $ 249 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses related to property and equipment | $ 1,387 | $ 639 | $ 373 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule Of Leases Recorded On Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
ROU assets | $ 8,755 | $ 10,784 |
Lease liabilities, current portion | 3,105 | 1,769 |
Lease liabilities, net of current portion | 7,582 | $ 9,960 |
Total operating lease liabilities | $ 10,687 |
Commitments and Contingencies_2
Commitments and Contingencies - Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 3,105 | |
2024 | 3,199 | |
2025 | 3,295 | |
2026 | 3,111 | |
Total lease payments | 12,710 | |
Less imputed interest | (2,023) | |
Total operating lease liabilities | 10,687 | |
Less lease liabilities, current portion | (3,105) | $ (1,769) |
Lease liabilities, net of current portion | $ 7,582 | $ 9,960 |
Commitments and Contingencies_3
Commitments and Contingencies - Lessee Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Cash paid included in operating cash flows | $ 1,762 | $ 234 | $ 163 |
Weighted-average remaining lease term (in years) | 3 years 10 months 24 days | 4 years 10 months 24 days | 0 years |
Weighted-average discount rate | 5.50% | 5.50% | 0% |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases | $ 2,749 | $ 946 | $ 453 |
Short-term leases | 93 | 216 | 36 |
Total rent expense | $ 2,842 | $ 1,162 | $ 489 |
Commitments and Contingencies_5
Commitments and Contingencies - Additional Information (Details) | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingencies accrued | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 30 Months Ended | |||||||||||
Dec. 15, 2022 | Nov. 08, 2022 | Aug. 06, 2021 | Jul. 02, 2021 | Jun. 16, 2020 | Dec. 31, 2022 | Jun. 30, 2020 | Jan. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Common stock shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||
Preferred stock undesignated shares authorized (in shares) | 40,000,000 | |||||||||||||
Common stock par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Preferred stock par value per share (in dollars per share) | $ 0.0001 | |||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Public offering issuance costs | $ 18,230 | $ 11,262 | $ 24,026 | |||||||||||
Net proceeds from Issuance of common stock after deducting offering-related transaction costs and commissions | $ 344,779 | $ 174,677 | $ 274,054 | $ 519,300 | ||||||||||
Preferred stock, shares issued (in shares) | 37,267,331 | |||||||||||||
Issuance of Series C convertible preferred stock, net of issuance costs (in shares) | 537,232 | 538,000 | ||||||||||||
Shares reserved for future issuance (in shares) | 2,537,000 | 2,537,000 | 2,575,000 | 2,537,000 | 2,537,000 | |||||||||
Award vesting period | 4 years | |||||||||||||
Expected dividend yield | 0% | |||||||||||||
Employee Stock | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Shares reserved for future issuance (in shares) | 548,028 | 548,028 | 548,028 | 548,028 | ||||||||||
Participant maximum contribution as percentage of eligible compensation | 15% | |||||||||||||
Award offering period | 6 months | |||||||||||||
Percentage of purchase price of shares of lower of fair market value | 85% | |||||||||||||
Shares issued under ESPP (in shares) | 90,535 | 33,147 | 28,979 | |||||||||||
Expected term (in years) | 6 months | 6 months | 6 months | |||||||||||
Expected dividend yield | 0% | 0% | 0% | |||||||||||
Unrecognized compensation cost | $ 400 | $ 400 | $ 400 | $ 400 | ||||||||||
Weighted-average period of unrecognized compensation cost | 6 months | |||||||||||||
Stock Options | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Expected dividend yield | 0% | 0% | 0% | |||||||||||
Unrecognized compensation cost | 65,100 | $ 65,100 | 65,100 | 65,100 | ||||||||||
Weighted-average period of unrecognized compensation cost | 2 years 7 months 6 days | |||||||||||||
Accounts Payable and Accrued Liabilities | Employee Stock | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Outstanding liability | $ 78 | $ 78 | $ 78 | $ 78 | ||||||||||
Maximum | Stock Options | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | |||||||||||
Minimum | Stock Options | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 4 months 24 days | |||||||||||
2013 Equity Incentive Plan | Maximum | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Expiration period | 10 years | |||||||||||||
2020 Incentive Award Plan | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Shares reserved for future issuance (in shares) | 3,900,000 | |||||||||||||
Percentage of shares of common stock outstanding on final day of immediately preceding calendar year | 5% | |||||||||||||
Additional shares reserved for future issuance (in shares) | 2,387,000 | 4,266,161 | ||||||||||||
2020 Incentive Award Plan | Maximum | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Expiration period | 10 years | |||||||||||||
2022 Employment Inducement Incentive Award Plan | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Additional shares reserved for future issuance (in shares) | 1,500,000 | 1,500,000 | ||||||||||||
2022 Employment Inducement Incentive Award Plan | Maximum | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Expiration period | 10 years | |||||||||||||
Common Stock | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Outstanding shares of convertible preferred stock converted into common stock (in shares) | 17,921,000 | |||||||||||||
Shares issued under ESPP (in shares) | 91,000 | 33,000 | 29,000 | |||||||||||
Public Offering | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Sale of stock number of shares issued in transaction (in shares) | 16,560,000 | |||||||||||||
Sale of stock, price per share (in dollars per share) | $ 18 | |||||||||||||
Public offering issuance costs | $ 24,000 | |||||||||||||
Proceeds from the IPO, net of underwriting discounts, commissions and offering costs | $ 274,100 | |||||||||||||
Outstanding shares of convertible preferred stock converted into common stock (in shares) | 17,921,069 | |||||||||||||
Public Offering | Common Stock | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Common stock shares authorized (in shares) | 400,000,000 | |||||||||||||
Outstanding shares of convertible preferred stock converted into common stock (in shares) | 17,921,069 | |||||||||||||
Private Placement, 2021 Sales Agreement | Sales Agent | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Sale of stock number of shares issued in transaction (in shares) | 7,771,812,000 | 780,549 | ||||||||||||
Public offering issuance costs | $ 3,700 | $ 700 | ||||||||||||
Sale of common stock maximum aggregate offering price | $ 150,000 | |||||||||||||
Net proceeds from Issuance of common stock after deducting offering-related transaction costs and commissions | $ 121,100 | $ 19,600 | ||||||||||||
Private Placement, 2022 Sales Agreement | Sales Agent | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Sale of common stock maximum aggregate offering price | $ 200,000 | |||||||||||||
Follow-on Public Offering | Common Stock | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Sale of stock number of shares issued in transaction (in shares) | 13,800,000 | 9,200,000 | ||||||||||||
Sale of stock, price per share (in dollars per share) | $ 17.25 | $ 18 | ||||||||||||
Public offering issuance costs | $ 14,300 | $ 10,500 | ||||||||||||
Proceeds from the follow-on public offering, net of underwriting discounts, commissions and offering costs | $ 223,800 | $ 155,100 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Additional Information Regarding Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 30 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Shares Available for Grant | ||||
Beginning balance (in shares) | 2,575,000 | |||
Granted (in shares) | (4,450,000) | |||
Forfeited/expired (in shares) | 525,000 | |||
Ending balance (in shares) | 2,537,000 | 2,537,000 | 2,575,000 | 2,537,000 |
Number of Outstanding Options | ||||
Beginning balance (in shares) | 5,778,000 | |||
Granted (in shares) | 4,450,000 | |||
Exercised (in shares) | (351,000) | |||
Forfeited/expired (in shares) | (525,000) | |||
Ending balance (in shares) | 9,352,000 | 9,352,000 | 5,778,000 | 9,352,000 |
Vested and expected to vest (in shares) | 9,352,000 | 9,352,000 | 9,352,000 | |
Exercisable (in shares) | 3,659,000 | 3,659,000 | 3,659,000 | |
Weighted- Average Exercise Price Per Share | ||||
Outstanding (in dollars per share) | $ 15.28 | $ 15.28 | $ 14.49 | $ 15.28 |
Granted (in dollars per share) | 15.42 | |||
Exercised (in dollars per share) | 1.34 | |||
Forfeited/expired (in dollars per share) | 17.05 | |||
Vested and expected to vest (in dollars per share) | 15.28 | 15.28 | 15.28 | |
Exercisable (in dollars per share) | $ 13.42 | $ 13.42 | $ 13.42 | |
Weighted- Average Remaining Contractual Term (in years) | ||||
Outstanding | 8 years 4 months 2 days | |||
Vested and expected to vest | 8 years 4 months 2 days | |||
Exercisable | 7 years 7 months 20 days | |||
Aggregate Intrinsic Value | ||||
Outstanding | $ 72,280 | $ 72,280 | $ 72,280 | |
Vested and expected to vest | 72,280 | 72,280 | 72,280 | |
Exercisable | $ 36,120 | $ 36,120 | $ 36,120 | |
2020 Incentive Award Plan | ||||
Shares Available for Grant | ||||
Beginning balance (in shares) | 3,900,000 | |||
Additional shares reserved for future issuance (in shares) | 2,387,000 | 4,266,161 | ||
2022 Employment Inducement Incentive Award Plan | ||||
Shares Available for Grant | ||||
Additional shares reserved for future issuance (in shares) | 1,500,000 | 1,500,000 |
Stockholders' Equity - Disclosu
Stockholders' Equity - Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Cash received from options exercised | $ 470 | $ 930 | $ 53 |
Intrinsic value of options exercised | $ 6,724 | $ 3,436 | $ 516 |
Weighted-average grant date fair value per share (in dollars per share) | $ 11.11 | $ 16.78 | $ 11.63 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Assumptions used in Black-Scholes Model to Determine Fair Value of Stock/Unit Option Grants and Shares Purchasable under ESPP (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 0% | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 1.50% | 0.50% | 0.30% |
Risk-free interest rate, Maximum | 4.20% | 1.30% | 1.50% |
Expected volatility | 85% | ||
Expected volatility, Minimum | 86% | 88% | |
Expected volatility, Maximum | 88% | 92% | |
Expected dividend yield | 0% | 0% | 0% |
Employee Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 0.001% | ||
Risk-free interest rate, Minimum | 2.20% | 0.10% | |
Risk-free interest rate, Maximum | 4.70% | 0.20% | |
Expected volatility, Minimum | 78% | 69% | 75% |
Expected volatility, Maximum | 79% | 75% | 96% |
Expected term (in years) | 6 months | 6 months | 6 months |
Expected dividend yield | 0% | 0% | 0% |
Minimum | Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 4 months 24 days |
Maximum | Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Allocated Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 27,139 | $ 17,056 | $ 4,310 |
Research and development expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 15,222 | 9,228 | 1,895 |
General and administrative expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 11,917 | $ 7,828 | $ 2,415 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes Disclosure [Line Items] | |||
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Increase in the valuation allowance | 54,800,000 | 35,400,000 | |
Unrecognized tax benefits that would impact effective tax rate | 0 | ||
Accruals for interest or penalties | 0 | $ 0 | |
Federal | |||
Income Taxes Disclosure [Line Items] | |||
Net operating loss (NOL) carryforwards | 172,900,000 | ||
Federal and state tax credit carryforwards | 9,000,000 | ||
Federal | Orphan Drug Tax Credits | |||
Income Taxes Disclosure [Line Items] | |||
Federal and state tax credit carryforwards | 4,600,000 | ||
State | |||
Income Taxes Disclosure [Line Items] | |||
Net operating loss (NOL) carryforwards | 293,200,000 | ||
Federal and state tax credit carryforwards | $ 4,800,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Computed by Applying Statutory Federal Income Tax Rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) at statutory rates | $ (36,539,000) | $ (24,784,000) | $ (9,315,000) |
State income tax, net of federal benefit | (11,821,000) | (7,868,000) | (3,004,000) |
Permanent items | 1,078,000 | 210,000 | 1,000 |
Reserve for uncertain tax positions | 2,583,000 | 1,170,000 | 398,000 |
Research and development tax credits | (9,983,000) | (4,792,000) | (1,639,000) |
Valuation allowance | 54,093,000 | 35,326,000 | 13,488,000 |
Other | 589,000 | 738,000 | 71,000 |
Income tax expense (benefit) | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 56,854 | $ 41,443 |
Section 174 R&E capitalization | 25,039 | 0 |
Research and development tax credits | 12,947 | 5,586 |
Deferred revenue | 1,762 | 3,117 |
Accrued expenses | 3,909 | 477 |
Intangibles and fixed assets | 1,822 | 2,137 |
Lease liability | 3,000 | 3,291 |
Stock-based compensation | 8,614 | 3,668 |
Total deferred tax assets | 113,947 | 59,719 |
Less valuation allowance | (111,489) | (56,693) |
Net deferred tax assets | 2,458 | 3,026 |
Deferred tax liabilities: | ||
Right-of-use asset | (2,458) | (3,026) |
Total deferred tax liabilities | (2,458) | (3,026) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Summarizes of Ac
Income Taxes - Summarizes of Activity Related to Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at the beginning of the year | $ 1,996 | $ 671 | $ 156 |
Increases related to current year positions | 2,614 | 1,283 | 446 |
Increases related to prior year positions | 161 | 42 | 62 |
Other true up | 0 | 0 | 7 |
Gross unrecognized tax benefits at the end of the year | $ 4,771 | $ 1,996 | $ 671 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | 30 Months Ended | ||
Feb. 28, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||||
Net proceeds from Issuance of common stock after deducting offering-related transaction costs and commissions | $ 344,779 | $ 174,677 | $ 274,054 | $ 519,300 | |
Subsequent Event | Common Stock | Private Placement, 2022 Sales Agreement | |||||
Subsequent Event [Line Items] | |||||
Sale of stock number of shares issued in transaction (in shares) | 943,461 | ||||
Net proceeds from Issuance of common stock after deducting offering-related transaction costs and commissions | $ 22,300 |