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MTCR Metacrine

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021May 06, 2021
Cover [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Registrant NameMetacrine, Inc.
Entity Central Index Key0001634379
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Current Fiscal Year End Date--12-31
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companytrue
Entity Ex Transition Periodtrue
Entity Shell Companyfalse
Entity Common Stock Shares Outstanding26,423,153
Security12b TitleCommon Stock, par value $0.0001 per share
Trading SymbolMTCR
Security Exchange NameNASDAQ
Entity File Number001-39512
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number47-2297384
Entity Address, Address Line One3985 Sorrento Valley Blvd.
Entity Address, Address Line TwoSuite C
Entity Address, City or TownSan Diego
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code92121
City Area Code858
Local Phone Number369-7800
Document Quarterly Reporttrue
Document Transition Reportfalse

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 19,457 $ 24,393
Short-term investments65,000 71,783
Prepaid expenses and other current assets6,257 5,847
Total current assets90,714 102,023
Property and equipment, net555 634
Operating lease right-of-use asset1,415 1,579
Total assets92,684 104,236
Current liabilities:
Accounts payable325 334
Accrued liabilities4,149 2,951
Current portion of operating lease liability762 741
Total current liabilities5,236 4,026
Operating lease liability, net of current portion810 1,007
Long-term debt, net of debt discount9,434 9,372
Other long-term liabilities544 552
Commitments and contingencies (Note 3)
Stockholders’ equity:
Preferred stock, $0.0001 par value; authorized shares - 10,000,000 at March 31, 2021 and December 31, 2020, respectively; issued and outstanding shares - none at March 31, 2021 and December 31, 2020, respectively.
Common stock, $0.0001 par value; authorized shares – 200,000,000 at March 31, 2021 and December 31, 2020, respectively; issued shares – 26,234,612 and 26,005,934 at March 31, 2021 and December 31, 2020, respectively; outstanding shares – 26,209,327 and 25,969,442 at March 31, 2021 and December 31, 2020, respectively.3 3
Additional paid-in-capital212,172 210,021
Accumulated other comprehensive income (loss)(1)1
Accumulated deficit(135,514)(120,746)
Total stockholders’ equity76,660 89,279
Total liabilities and stockholders’ equity $ 92,684 $ 104,236

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesMar. 31, 2021Dec. 31, 2020
Statement Of Financial Position [Abstract]
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, authorized shares10,000,000 10,000,000
Preferred stock, issued shares0 0
Preferred stock, outstanding shares0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, authorized shares200,000,000 200,000,000
Common stock, issued shares26,234,612 26,005,934
Common stock, outstanding shares26,209,327 25,969,442

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Operating expenses:
Research and development $ 10,857 $ 6,361
General and administrative3,696 1,601
Total operating expenses14,553 7,962
Loss from operations(14,553)(7,962)
Other income (expense):
Interest income36 229
Interest expense(244)(253)
Other expense(7)(126)
Total other income (expense)(215)(150)
Net loss(14,768)(8,112)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net(2)(68)
Comprehensive loss $ (14,770) $ (8,180)
Net loss per share, basic and diluted $ (0.57) $ (3.23)
Weighted average shares of common stock outstanding, basic and diluted26,007,692 2,509,319

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Operating activities:
Net loss $ (14,768) $ (8,112)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation79 68
Stock-based compensation1,520 503
Non-cash interest expense62 70
Amortization (accretion) of premiums/discounts on investments, net170 (59)
Amortization of right-of-use asset164 152
Change in fair value of warrant liability106
Changes in operating assets and liabilities
Prepaid expenses and other current assets(410)(6)
Accounts payable and accrued liabilities1,189 (1,190)
Lease liability(176)(134)
Net cash used in operating activities(12,170)(8,602)
Investing activities:
Purchases of property and equipment(73)
Purchases of short-term investments(12,784)(7,944)
Sale and maturities of short-term investments19,395 13,690
Net cash provided by investing activities6,611 5,673
Financing activities:
Proceeds from exercise of common stock options623 3
Repurchase of unvested common stock(2)
Payment of initial public offering costs(10)
Net cash provided by (used in) financing activities623 (9)
Net decrease in cash and cash equivalents(4,936)(2,938)
Cash and cash equivalents at beginning of period24,393 15,668
Cash and cash equivalents at end of period19,457 12,730
Supplemental disclosure of cash flow information:
Cash paid for interest181 183
Supplemental non-cash investing and financing activities:
Issuance costs in accounts payable and accrued liabilities229
Change in unpaid property and equipment purchases69
Vesting of common stock $ 8 $ 24

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in ThousandsTotalConvertible Preferred StockCommon StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Accumulated Deficit
Temporary equity, Balance at Dec. 31, 2019 $ 122,465
Temporary equity, Balance, shares at Dec. 31, 201985,093,688
Balance at Dec. 31, 2019 $ (78,237) $ 5,164 $ 41 $ (83,442)
Balance, shares at Dec. 31, 20192,484,848
Stock-based compensation503 503
Exercise of stock options3 3
Exercise of stock options, shares955
Vesting of early exercised stock options24 24
Vesting of early exercised stock options, shares48,766
Unrealized loss on investment securities(68)(68)
Net loss(8,112)(8,112)
Temporary equity, Balance at Mar. 31, 2020 $ 122,465
Temporary equity, Balance, shares at Mar. 31, 202085,093,688
Balance at Mar. 31, 2020(85,887)5,694 (27)(91,554)
Balance, shares at Mar. 31, 20202,534,569
Balance at Dec. 31, 2020 $ 89,279 $ 3 210,021 1 (120,746)
Balance, shares at Dec. 31, 202025,969,442 25,969,442
Stock-based compensation $ 1,520 1,520
Exercise of stock options $ 623 623
Exercise of stock options, shares228,678 228,678
Vesting of early exercised stock options $ 8 8
Vesting of early exercised stock options, shares11,207
Unrealized loss on investment securities(2)(2)
Net loss(14,768)(14,768)
Balance at Mar. 31, 2021 $ 76,660 $ 3 $ 212,172 $ (1) $ (135,514)
Balance, shares at Mar. 31, 202126,209,327 26,209,327

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Summary of Significant Accounting PoliciesNote 1. Organization and Summary of Significant Accounting Policies Organization Metacrine, Inc. (the “Company”) was incorporated in the state of Delaware on September 17, 2014 and is based in San Diego, California. The Company is a clinical-stage biopharmaceutical company focused on building an innovative pipeline of differentiated drugs to treat liver and gastrointestinal diseases. Principles of Consolidation and Basis of Presentation In May 2019, the Company established a wholly-owned Australian subsidiary, Metacrine, Pty Ltd, in order to conduct various clinical activities for its product candidates. The unaudited condensed consolidated financial statements include the accounts of the Company and Metacrine, Pty Ltd. The functional currency of both the Company and Metacrine, Pty Ltd is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets, which are remeasured at historical foreign currency exchange rates in effect at the date of transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in other income (expense) in the unaudited condensed consolidated statements of operations and comprehensive loss. Intercompany accounts and transactions have been eliminated in consolidation. The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable regulations of the U.S. Securities and Exchange Commission (“SEC”). The Company’s unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed on March 18, 2021. Certain amounts in the unaudited condensed consolidated financial statements have been reclassified to conform to their current year presentation. Initial Public Offering On September 18, 2020, the Company closed its initial public offering (“IPO”) of 6,540,000 shares of common stock at a public offering price of $13.00 per share. The Company raised $76.9 million in net proceeds from the IPO after deducting underwriters’ discounts and commissions of $6.0 million and issuance costs of $2.2 million. Upon closing of the Company’s IPO, all of the Company’s outstanding preferred stock were automatically converted into 16,685,014 shares of common stock. Liquidity and Capital Resources From its inception through March 31, 2021, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital, researching, discovering and developing its pipeline in FXR and other drug targets, and general and administrative support for these operations and has funded its operations primarily with the net proceeds from the issuance of convertible preferred stock, common stock, and long-term debt. The Company has incurred net losses and negative cash flows from operations since inception and had an accumulated deficit of $135.5 million and $120.7 million as of March 31, 2021 and December 31, 2020, respectively. Management expects the Company will incur substantial operating losses for the foreseeable future in order to complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. The Company will need to raise additional capital through a combination of equity offerings, debt financings, collaborations, and other similar arrangements. The Company’s ability to raise additional capital may be adversely impacted by potential worsening of economic conditions in the United States and worldwide resulting from the COVID-19 pandemic. If the disruption persists and deepens, the Company could experience an inability to access additional capital. As of March 31, 2021, the Company had available cash, cash equivalents, and short-term investments of $84.5 million and working capital of $85.5 million to fund future operations. Management has prepared cash flow forecasts which indicate that, based on the Company’s current cash resources available and working capital, the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued. Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, and expenses and the disclosure of contingent assets and liabilities. Significant estimates in the Company’s unaudited condensed consolidated financial statements include accruals for research and development expenses and stock-based compensation. These estimates and assumptions are based on current facts, historical experience, and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, money market funds, and commercial paper. The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents are valued at cost, which approximates fair value. Short-Term Investments Short-term investments primarily consist of commercial paper, corporate debt securities, and U.S. government and agency bonds. The Company has classified these investments as available-for-sale securities, as the sale of such investments may be required prior to maturity to implement management strategies, and therefore has classified all short-term investments with maturity dates beyond three months at the date of purchase as current assets in the accompanying unaudited condensed consolidated balance sheets. Any premium or discount arising at purchase is amortized and/or accreted to interest income as an adjustment to yield using the straight-line method over the life of the instrument. Short-term investments are reported at their estimated fair value. The Company reviews its short-term investments in unrealized loss positions at each reporting date to assess whether the decline in their fair value is due to credit-related factors. The credit portion of unrealized losses and any subsequent improvements are recorded in other income (expense) through an allowance account. Unrealized gains and losses that are not credit-related are included in other comprehensive (income) loss as a component of stockholders’ equity until realized. Realized gains and losses are determined using the specific identification method and are included in other income (expense). Fair Value Measurement The Company accounts for certain assets and liabilities at their fair value. The Company uses the following fair value hierarchy to indicate the extent to which the inputs used to determine fair value are observable in the market:

Level 1: Inputs are based on quoted prices for identical assets in active markets.

Level 2: Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and short-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Property and Equipment, Net Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of the related assets (generally three to five years). Leasehold improvements are stated at cost and amortized on a straight-line basis over the lesser of the remaining lease term or the estimated useful life of the leasehold improvements. Repairs and maintenance costs are charged to expense as incurred. Leases At the inception of a contractual arrangement, the Company determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. Lease terms are determined at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. For its long-term operating leases, the Company recognizes a lease liability and a right-of-use (“ROU”) asset on its unaudited condensed consolidated balance sheets and recognizes lease expense on a straight-line basis over the lease term. The lease liability is determined as the present value of future lease payments using the discount rate implicit in the lease or, if the implicit rate is not readily determinable, an estimate of the Company’s incremental borrowing rate. The ROU asset is based on the lease liability, adjusted for any prepaid or deferred rent. The Company aggregates all lease and non-lease components for each class of underlying assets into a single lease component and variable charges for common area maintenance and other variable costs are recognized as expense as incurred. The Company has elected to not recognize a lease liability or ROU asset in connection with short-term operating leases and recognizes lease expense for short-term operating leases on a straight-line basis over the lease term. The Company does not have any financing leases. Impairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value would be assessed using discounted cash flows or other appropriate measures of fair value. The Company did not recognize any impairment losses during the three months ended March 31, 2021 and 2020. Research and Development Costs All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation, external research and development costs incurred under agreements with contract research organizations, investigative sites and consultants to conduct our preclinical, toxicology and clinical studies, laboratory supplies, costs related to compliance with regulatory requirements, costs related to manufacturing the Company’s product candidates for clinical trials and preclinical studies, facilities, depreciation, and other allocated expenses. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the related goods are delivered or services performed. The Company has entered into various research and development contracts with 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 unaudited condensed consolidated balance sheets as prepaid expenses. 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. Patent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expenses and expensed as incurred since recoverability of such expenditures is uncertain. Stock-Based Compensation Stock-based compensation expense represents the cost of the grant date fair value of stock option grants recognized over the requisite service period of the awards (usually the vesting period) on a straight-line basis. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model and recognizes forfeitures as they occur. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the consolidated 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. 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. The Company recognizes net deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby (1) management determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, management recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense. Any accrued interest and penalties are included within the related tax liability. Comprehensive Loss Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The only component of other comprehensive loss is unrealized gains (losses) on available-for-sale securities. Comprehensive gains (losses) have been reflected in the unaudited condensed consolidated statements of operations and comprehensive loss and as a separate component in the unaudited condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for all periods presented. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company and its chief operating decision-maker view the Company’s operations and manages its business in one operating segment. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses, to improve financial reporting by requiring timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance will become effective for the Company beginning January 1, 2023, with early adoption permitted. The Company early adopted ASU No. 2016-13 during the first quarter of 2021. The standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU No. 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also improves consistent application by clarifying and amending existing guidance. The Company adopted ASU No. 2019-12 during the first quarter of 2021. The standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. 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, without consideration for potentially dilutive securities. 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. Dilutive common stock equivalents are comprised of convertible preferred stock, preferred and common stock warrants, unvested common stock subject to repurchase, and options outstanding under the Company’s stock option plan. Potentially dilutive 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):
March 31,
2021
2020
Common stock options
3,688,965
1,769,104
Unvested common stock
25,285
144,514
Common stock warrant
23,122

Preferred stock warrant

23,122
Convertible preferred stock

16,685,014
Total
3,737,372
18,621,754

Balance Sheet Details

Balance Sheet Details3 Months Ended
Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Balance Sheet DetailsNote 2 . Balance Sheet Details Prepaid expenses and other current assets consist of the following (in thousands):
March 31,
December 31,
2021
2020
Prepaid research and development
$
4,770
$
4,473
Prepaid expenses
1,011
610
Other current assets
283
570
Interest receivable
193
194
Total prepaid expenses and other current assets
$
6,257
$
5,847
Property and equipment consist of the following (in thousands):
March 31,
December 31,
2021
2020
Laboratory equipment
$
1,104
$
1,104
Computer equipment and software
215
215
Furniture and fixtures
178
178
Leasehold improvements
146
146
Property and equipment, gross
1,643
1,643
Less accumulated depreciation and amortization
(1,088
)
(1,009
)
Property and equipment, net
$
555
$
634
Depreciation expense was $0.1 million for each of the three months ended March 31, 2021 and 2020. Accrued liabilities consist of the following (in thousands):
March 31,
December 31,
2021
2020
Accrued research and development
$
2,287
$
676
Accrued compensation
1,004
1,671
Other accrued liabilities
858
604
Total accrued liabilities
$
4,149
$
2,951

Commitment and Contingencies

Commitment and Contingencies3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and ContingenciesNote 3 . Commitments and Contingencies Operating Leases The Company entered into a five-year noncancelable operating lease in June 2017 for its corporate headquarters in San Diego, California under an agreement that commenced in March 2018. Under the terms of the agreement, there is no option to extend the lease and the Company is subject to additional charges for common area maintenance and other costs. Monthly rental payments due under the lease commenced in March 2018 and escalate throughout the lease term. Information related to the Company’s operating lease is as follows (in thousands):
Three Months Ended March 31,
2021
2020
Operating lease expense (including variable costs of $88 and $82 during the three months ended March 31, 2021 and 2020)
$
285
$
279
Cash paid for amounts included in the measurement of lease liabilities
$
209
$
180
As of March 31, 2021 and December 31, 2020, the remaining lease term of the Company’s operating lease was 24 months and 27 months, respectively. As of March 31, 2021 and December 31, 2020, the discount rate on the Company’s operating lease was 8.0%. Future minimum noncancelable operating lease payments and information related to the lease liability are as follows (in thousands):
March 31, 2021
Remaining during 2021
$
645
2022
876
2023
183
Total lease payments
1,704
Imputed interest
(132
)
Lease liability
1,572
Less current portion of lease liability
762
Lease liability, net of current portion
$
810
License Agreement with the Salk Institute In November 2016, the Company and The Salk Institute for Biological Studies (“The Salk”) entered into the Amended and Restated Exclusive FXR License Agreement, which was amended in February 2017 and July 2018, pursuant to which The Salk granted the Company an exclusive, worldwide license to certain FXR related intellectual property to make, use, offer for sale, import, export, and distribute products covered by such intellectual property (“FXR Licensed Products”) and a non-exclusive, worldwide license to use certain technical information to research, develop, test, make, use, offer for sale, import, export and distribute FXR Licensed Products. The Company is required to use commercially reasonable efforts to achieve certain diligence milestones with respect to the FXR Licensed Products, including with respect to developing, producing and selling FXR Licensed Products. The Company is also required to pay The Salk up to $6.5 million in milestone payments upon the completion of certain clinical and regulatory milestones, certain of which payments the Company may defer under certain circumstances. The Company is also obligated to pay The Salk a low single-digit percentage royalty on net sales, with a minimum annual royalty payment due beginning with the first commercial sale of each FXR Licensed Product. The applicable minimum annual royalty payment amount depends on the number of years that have elapsed since the first commercial sale of an FXR Licensed Product and is in the hundreds-of-thousands-of-dollars range. In addition, if the Company chooses to sublicense the FXR Licensed Product to any third parties, the Company must pay to The Salk a low single-digit percentage of all sublicensing revenue. In addition, in the event of a change of control, the Company is required to pay The Salk a low single-digit percentage of any payments and consideration that it receives in consideration of the change of control. The Company has accrued $0.4 million in milestone payments based upon the achievement of certain regulatory milestones as of March 31, 2021. Contingencies In the event the Company becomes subject to claims or suits arising in the ordinary course of business, the Company would accrue a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.

Long-Term Debt

Long-Term Debt3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Long-Term DebtNote 4 . Long-Term Debt Long-term debt –consists of the following (in thousands):
March 31, 2021
December 31, 2020
Long-term debt
$
10,000
$
10,000
Unamortized debt discount
(566
)
(628
)
Long-term debt, net of debt discount
$
9,434
$
9,372
On August 27, 2019, the Company entered into a Loan and Security Agreement (the “Loan Agreement”, and all amounts borrowed thereunder the “Term Loan”) with a lender (the “Lender”). The Company borrowed $10.0 million under the Term Loan at the inception of the Loan Agreement. The remaining borrowings available under the Loan Agreement have expired. The Term Loan bears interest at a floating annual rate equal to the greater of (i) the prime rate used by the Lender plus 2% (5.25% at March 31, 2021 and December 31, 2020, respectively), and (ii) 7.25%. The monthly payments are interest-only until September 1, 2022. Subsequent to the interest-only period, the Term Loan will be payable in equal monthly installments of principal plus accrued and unpaid interest, through the maturity date of September 1, 2023 (“Maturity Date”). In addition, the Company is obligated to pay a final payment fee of 5.25% of the original principal amount of the Term Loan on the Maturity Date. As of March 31, 2021 and December 31, 2020, the final payment fee of $0.5 million has been recorded as a long-term liability. The Company may elect to prepay all, but not less than all, of the Term Loan prior to the Maturity Date, subject to a prepayment fee of up to 3.0% of the then outstanding principal balance. After repayment, no Term Loan amounts may be borrowed again. The Company’s obligations under the Loan Agreement are secured by a security interest in substantially all of its assets, other than its intellectual property. The Loan Agreement includes customary affirmative and negative covenants and also includes standard events of default, including an event of default based on the occurrence of a material adverse event, and a default under any agreement with a third party resulting in a right of such third party to accelerate the maturity of any debt in excess of $0.3 million. The negative covenants include, among others, restrictions on the Company transferring collateral, incurring additional indebtedness, engaging in mergers or acquisitions, paying cash dividends or making other distributions, making investments, creating liens, selling assets and making any payment on subordinated debt, in each case subject to certain exceptions. Upon the occurrence and continuance of an event of default, the Lender may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the Loan Agreement. As of March 31, 2021 and December 31, 2020, the Company was in compliance with all applicable covenants under the Loan Agreement. In connection with the Loan Agreement, the Company issued the Lender a warrant (the “Lender Warrant”) to purchase shares of the Company’s Series C convertible preferred stock at an exercise price of $10.812 per share and expiring on August 27, 2029. The number of Series C convertible preferred shares issuable upon exercise of the warrant is an amount equal to (i) 2.5% of the aggregate Term Loan funded under the Loan Agreement divided by (ii) $10.812. Upon the funding of the Term Loan, the Lender Warrant was initially exercisable for 117,924 shares of Series C convertible preferred stock. The Lender Warrant was automatically converted into a warrant to purchase 23,122 shares of common stock upon completion of the Company’s IPO. The initial $0.2 million fair value of the Lender Warrant, $0.5 million final payment fee, and $0.3 million of debt issuance costs were recorded as a debt discount and are being amortized to interest expense using the effective interest method over the term of the Term Loan. For the three months ended March 31, 2021 and 2020, the Company recognized $0.2 million and $0.3 million of interest expense, including $0.1 million and $0.1 million of debt discount amortization, respectively, in connection with the Loan Agreement. As of March 31, 2021 and December 31, 2020, the Company had an outstanding Term Loan of $10.0 million and accrued interest of $0.1 million, respectively. Future minimum principal and interest payments under the Term Loan, including the final payment fee, as of March 31, 2021 are as follows (in thousands):
March 31, 2021
Remaining in 2021
$
554
2022
4,438
2023
6,949
Total principal and interest payments
11,941
Less interest and final payment fee
(1,941
)
Long-term debt
$
10,000

Fair Value of Financial Instrum

Fair Value of Financial Instruments3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial InstrumentsNote 5. Fair Value of Financial Instruments The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis:
Fair Value Measurements At Reporting Date Using
Total
Quoted Prices in Active Markets For Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
As of March 31, 2021
Assets:
Commercial paper
$
27,387
$

$
27,387
$

Corporate debt securities
16,467

16,467

U.S. government and agency securities
21,146

21,146

Total assets measured at fair value
$
65,000
$

$
65,000
$

As of December 31, 2020
Assets:
Commercial paper
$
27,136
$

$
27,136
$

Corporate debt securities
26,506

26,506

U.S. government and agency securities
18,141

18,141

Total assets measured at fair value
$
71,783
$

$
71,783
$

Short-Term Investments

Short-Term Investments3 Months Ended
Mar. 31, 2021
Cash And Cash Equivalents [Abstract]
Short-Term InvestmentsNote 6. Short-Term Investments The following tables summarize short-term investments (in thousands):
As of March 31, 2021
Unrealized
Amortized Cost
Gains
Losses
Estimated Fair Value
Commercial paper
$
27,387
$

$

$
27,387
Corporate debt securities
16,472

(5
)
16,467
U.S. government and agency securities
21,141
5

21,146
Total short-term investments
$
65,000
$
5
$
(5
)
$
65,000
As of December 31, 2020
Unrealized
Amortized Cost
Gains
Losses
Estimated Fair Value
Commercial paper
$
27,136
$

$

$
27,136
Corporate debt securities
26,510

(4
)
26,506
U.S. government and agency securities
18,136
5

18,141
Total short-term investments
$
71,782
$
5
$
(4
)
$
71,783
The following table summarizes the maturities of the Company’s short-term investments at March 31, 2021:
Amortized Cost
Estimated Fair Value
Due in one year or less
$
55,696
$
55,693
Due after one year through two years
9,304
9,307
Total short-term investments
$
65,000
$
65,000

Stockholders' Equity

Stockholders' Equity3 Months Ended
Mar. 31, 2021
Equity [Abstract]
Stockholders' EquityNote 7 . Stockholders’ Equity Equity Incentive Plan In January 2015, the Company adopted the Metacrine, Inc. 2015 Equity Incentive Plan (as amended, the “2015 Plan”), which provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock unit awards, and stock appreciation rights to its employees, members of its board of directors, and consultants. In August 2020, the Company’s Board of Directors approved the 2020 Equity Incentive Plan (the “2020 Plan”), which is the successor and continuation of the 2015 Plan. No additional awards may be granted under the 2015 Plan and all outstanding awards under the 2015 Plan remain subject to the terms of the 2015 Plan. As of March 31, 2021, there were 3,166,412 shares authorized and available for issuance under the 2020 Plan. Recipients of incentive stock options are eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of options granted under the 2015 and 2020 Plans (or collectively, the “Equity Plans”) is ten years and, in general, the options issued under the Equity Plans vest over a four-year period from the vesting commencement date. The 2015 Plan allows for early exercise of stock options, which may be subject to repurchase by the Company at the lower of (i) the fair market value at the repurchase date or (ii) the original exercise price. The early exercise of stock options is not permitted under the 2020 Plan. A summary of the Company’s unvested shares and unvested stock liability is as follows (in thousands, except share data):
Number of Unvested Shares
Unvested Stock Liability
Balance at December 31, 2020
36,492
$
27
Vested shares
(11,207
)
(8
)
Balance at March 31, 2021
25,285
$
19
A summary of the Company’s stock option activity is as follows (in thousands, except share and per share data):
Number of Outstanding Options
Weighted Average Exercise Price
Weighted Average Remaining Contractual Term (In Years)
Aggregate Intrinsic Value
Balance at December 31, 2020
3,136,076
$
5.23
7.95
$
8,963
Granted
783,405
$
10.00
Exercised
(228,678
)
$
2.73
Cancelled
(1,838
)
$
3.01
Balance at March 31, 2021
3,688,965
$
6.40
8.46
$
4,132
Vested and expected to vest at March 31, 2021
3,688,965
$
6.40
8.46
$
4,132
Exercisable at March 31, 2021
871,203
$
2.60
6.26
$
3,152
The weighted average grant date fair value per share of stock option grants for the three months ended March 31, 2021 and 2020 was $7.34 and $8.01, respectively. The total intrinsic value of stock options exercised during the three months ended March 31, 2021 and 2020 was $1.2 million and $1 thousand, respectively. The assumptions used in the Black-Scholes option pricing model to determine the fair value of stock option grants were as follows:
Three Months Ended March 31,
2021
2020
Risk-free interest rate
0.6% - 1.0%
0.6% – 0.7%
Expected volatility
88.7% - 89.5%
82.4% – 84.0%
Expected term (in years)
5.8 – 6.07
5.8 – 10.0
Expected dividend yield
0%
0%
Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities similar to the expected term of the awards. Expected volatility. Since the Company recently completed its IPO and does not have sufficient trading history for its 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 expected term represents the period of time that options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determines the expected life assumption using the simplified method, for employees, which is an average of the contractual term of the option and its vesting period. The expected term for nonemployee options is equal to the contractual term. Expected dividend yield. The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends and, therefore, used an expected dividend yield of zero. Employee Stock Purchase Plan In September 2020, the Company’s Board of Directors and stockholders adopted and approved the 2020 Employee Stock Purchase Plan (the “ESPP”). The ESPP permits eligible employees, who elect to participate in an offering under the ESPP, to contribute up to 15% of their eligible gross compensation towards the purchase of shares of common stock. Eligible employees can purchase up to 20,000 shares of common stock on a given purchase date. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the Company’s common stock on the commencement date of each offering period or the relevant purchase date, whichever is lower. Offerings under the ESPP are approximately two years in duration and consist of four purchase periods that are approximately six months in duration. The ESPP is considered a compensatory plan as defined by the authoritative guidance for stock-based compensation. Stock-based compensation expense attributable to the ESPP was $30 thousand for the three months ended March 31, 2021. As of March 31, 2021, there were 665,059 shares of common stock available for future issuance under the ESPP. Stock-Based Compensation Expense Stock-based compensation expense recognized for all equity awards has been reported in the unaudited condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
Three Months Ended March 31,
2021
2020
General and administrative
$
1,026
$
285
Research and development
494
218
Total stock-based compensation
$
1,520
$
503
As of March 31, 2021, unrecognized stock-based compensation cost was $18.7 million, which is expected to be recognized over a remaining weighted average period of approximately 3.1 years. Common Stock Reserved For Future Issuance Common stock reserved for future issuance consists of the following:
March 31,
December 31,
2021
2020
Common stock options outstanding
3,688,965
3,136,076
Shares available for issuance under equity incentive plans
3,166,412
2,907,742
Shares available for issuance under the ESPP
665,059
405,000
Common stock warrant
23,122
23,122
Total
7,543,558
6,471,940

401 (k) Plan

401 (k) Plan3 Months Ended
Mar. 31, 2021
Compensation And Retirement Disclosure [Abstract]
401 (k) PlanNote 8 . 401(k) Plan The Company maintains a defined contribution 401(k) plan available to eligible employees. Employee contributions are voluntary and are determined on an individual basis, limited to the maximum amount allowable under federal tax regulations. The Company, at its discretion, may make certain matching contributions to the 401(k) plan. As of March 31, 2021, no contributions to the 401(k) plan have been made by the Company.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Principles of Consolidation and Basis of PresentationPrinciples of Consolidation and Basis of Presentation In May 2019, the Company established a wholly-owned Australian subsidiary, Metacrine, Pty Ltd, in order to conduct various clinical activities for its product candidates. The unaudited condensed consolidated financial statements include the accounts of the Company and Metacrine, Pty Ltd. The functional currency of both the Company and Metacrine, Pty Ltd is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets, which are remeasured at historical foreign currency exchange rates in effect at the date of transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in other income (expense) in the unaudited condensed consolidated statements of operations and comprehensive loss. Intercompany accounts and transactions have been eliminated in consolidation. The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and applicable regulations of the U.S. Securities and Exchange Commission (“SEC”). The Company’s unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed on March 18, 2021. Certain amounts in the unaudited condensed consolidated financial statements have been reclassified to conform to their current year presentation.
Initial Public OfferingInitial Public Offering On September 18, 2020, the Company closed its initial public offering (“IPO”) of 6,540,000 shares of common stock at a public offering price of $13.00 per share. The Company raised $76.9 million in net proceeds from the IPO after deducting underwriters’ discounts and commissions of $6.0 million and issuance costs of $2.2 million. Upon closing of the Company’s IPO, all of the Company’s outstanding preferred stock were automatically converted into 16,685,014 shares of common stock.
Liquidity and Capital ResourcesLiquidity and Capital Resources From its inception through March 31, 2021, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital, researching, discovering and developing its pipeline in FXR and other drug targets, and general and administrative support for these operations and has funded its operations primarily with the net proceeds from the issuance of convertible preferred stock, common stock, and long-term debt. The Company has incurred net losses and negative cash flows from operations since inception and had an accumulated deficit of $135.5 million and $120.7 million as of March 31, 2021 and December 31, 2020, respectively. Management expects the Company will incur substantial operating losses for the foreseeable future in order to complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. The Company will need to raise additional capital through a combination of equity offerings, debt financings, collaborations, and other similar arrangements. The Company’s ability to raise additional capital may be adversely impacted by potential worsening of economic conditions in the United States and worldwide resulting from the COVID-19 pandemic. If the disruption persists and deepens, the Company could experience an inability to access additional capital. As of March 31, 2021, the Company had available cash, cash equivalents, and short-term investments of $84.5 million and working capital of $85.5 million to fund future operations. Management has prepared cash flow forecasts which indicate that, based on the Company’s current cash resources available and working capital, the Company will have sufficient resources to fund its operations for at least one year after the date the financial statements are issued.
Use of EstimatesUse of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, and expenses and the disclosure of contingent assets and liabilities. Significant estimates in the Company’s unaudited condensed consolidated financial statements include accruals for research and development expenses and stock-based compensation. These estimates and assumptions are based on current facts, historical experience, and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected.
Cash and Cash EquivalentsCash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, money market funds, and commercial paper. The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents are valued at cost, which approximates fair value.
Short-Term InvestmentsShort-Term Investments Short-term investments primarily consist of commercial paper, corporate debt securities, and U.S. government and agency bonds. The Company has classified these investments as available-for-sale securities, as the sale of such investments may be required prior to maturity to implement management strategies, and therefore has classified all short-term investments with maturity dates beyond three months at the date of purchase as current assets in the accompanying unaudited condensed consolidated balance sheets. Any premium or discount arising at purchase is amortized and/or accreted to interest income as an adjustment to yield using the straight-line method over the life of the instrument. Short-term investments are reported at their estimated fair value. The Company reviews its short-term investments in unrealized loss positions at each reporting date to assess whether the decline in their fair value is due to credit-related factors. The credit portion of unrealized losses and any subsequent improvements are recorded in other income (expense) through an allowance account. Unrealized gains and losses that are not credit-related are included in other comprehensive (income) loss as a component of stockholders’ equity until realized. Realized gains and losses are determined using the specific identification method and are included in other income (expense).
Fair Value MeasurementFair Value Measurement The Company accounts for certain assets and liabilities at their fair value. The Company uses the following fair value hierarchy to indicate the extent to which the inputs used to determine fair value are observable in the market:

Level 1: Inputs are based on quoted prices for identical assets in active markets.

Level 2: Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Concentration of Credit RiskConcentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and short-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.
Property and Equipment, NetProperty and Equipment, Net Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of the related assets (generally three to five years). Leasehold improvements are stated at cost and amortized on a straight-line basis over the lesser of the remaining lease term or the estimated useful life of the leasehold improvements. Repairs and maintenance costs are charged to expense as incurred.
LeasesLeases At the inception of a contractual arrangement, the Company determines whether the contract contains a lease by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. Lease terms are determined at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. For its long-term operating leases, the Company recognizes a lease liability and a right-of-use (“ROU”) asset on its unaudited condensed consolidated balance sheets and recognizes lease expense on a straight-line basis over the lease term. The lease liability is determined as the present value of future lease payments using the discount rate implicit in the lease or, if the implicit rate is not readily determinable, an estimate of the Company’s incremental borrowing rate. The ROU asset is based on the lease liability, adjusted for any prepaid or deferred rent. The Company aggregates all lease and non-lease components for each class of underlying assets into a single lease component and variable charges for common area maintenance and other variable costs are recognized as expense as incurred. The Company has elected to not recognize a lease liability or ROU asset in connection with short-term operating leases and recognizes lease expense for short-term operating leases on a straight-line basis over the lease term. The Company does not have any financing leases.
Impairment of Long-Lived AssetsImpairment of Long-Lived Assets The Company reviews long-lived assets, such as property and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value would be assessed using discounted cash flows or other appropriate measures of fair value. The Company did not recognize any impairment losses during the three months ended March 31, 2021 and 2020.
Research and Development CostsResearch and Development Costs All costs of research and development are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation, external research and development costs incurred under agreements with contract research organizations, investigative sites and consultants to conduct our preclinical, toxicology and clinical studies, laboratory supplies, costs related to compliance with regulatory requirements, costs related to manufacturing the Company’s product candidates for clinical trials and preclinical studies, facilities, depreciation, and other allocated expenses. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the related goods are delivered or services performed. The Company has entered into various research and development contracts with 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 unaudited condensed consolidated balance sheets as prepaid expenses. 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.
Patent CostsPatent Costs Costs related to filing and pursuing patent applications are recorded as general and administrative expenses and expensed as incurred since recoverability of such expenditures is uncertain.
Stock-Based CompensationStock-Based Compensation Stock-based compensation expense represents the cost of the grant date fair value of stock option grants recognized over the requisite service period of the awards (usually the vesting period) on a straight-line basis. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model and recognizes forfeitures as they occur.
Income TaxesIncome Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the consolidated 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. 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. The Company recognizes net deferred tax assets to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If management determines that the Company would be able to realize its deferred tax assets in the future in excess of their net recorded amount, management would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby (1) management determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, management recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense. Any accrued interest and penalties are included within the related tax liability.
Comprehensive LossComprehensive Loss Comprehensive loss is defined as a change in equity during a period from transactions and other events and circumstances from non-owner sources. The only component of other comprehensive loss is unrealized gains (losses) on available-for-sale securities. Comprehensive gains (losses) have been reflected in the unaudited condensed consolidated statements of operations and comprehensive loss and as a separate component in the unaudited condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for all periods presented.
Segment ReportingSegment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company and its chief operating decision-maker view the Company’s operations and manages its business in one operating segment.
Recent Accounting PronouncementsRecent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses, to improve financial reporting by requiring timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance will become effective for the Company beginning January 1, 2023, with early adoption permitted. The Company early adopted ASU No. 2016-13 during the first quarter of 2021. The standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU No. 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and also improves consistent application by clarifying and amending existing guidance. The Company adopted ASU No. 2019-12 during the first quarter of 2021. The standard did not have a material impact on the Company’s unaudited condensed consolidated financial statements.
Net Loss Per ShareNet 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, without consideration for potentially dilutive securities. 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. Dilutive common stock equivalents are comprised of convertible preferred stock, preferred and common stock warrants, unvested common stock subject to repurchase, and options outstanding under the Company’s stock option plan. Potentially dilutive 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):
March 31,
2021
2020
Common stock options
3,688,965
1,769,104
Unvested common stock
25,285
144,514
Common stock warrant
23,122

Preferred stock warrant

23,122
Convertible preferred stock

16,685,014
Total
3,737,372
18,621,754

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies (Tables)3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per SharePotentially dilutive 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):
March 31,
2021
2020
Common stock options
3,688,965
1,769,104
Unvested common stock
25,285
144,514
Common stock warrant
23,122

Preferred stock warrant

23,122
Convertible preferred stock

16,685,014
Total
3,737,372
18,621,754

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)3 Months Ended
Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Schedule of Prepaid Expenses and Other Current AssetsPrepaid expenses and other current assets consist of the following (in thousands):
March 31,
December 31,
2021
2020
Prepaid research and development
$
4,770
$
4,473
Prepaid expenses
1,011
610
Other current assets
283
570
Interest receivable
193
194
Total prepaid expenses and other current assets
$
6,257
$
5,847
Schedule of Property and EquipmentProperty and equipment consist of the following (in thousands):
March 31,
December 31,
2021
2020
Laboratory equipment
$
1,104
$
1,104
Computer equipment and software
215
215
Furniture and fixtures
178
178
Leasehold improvements
146
146
Property and equipment, gross
1,643
1,643
Less accumulated depreciation and amortization
(1,088
)
(1,009
)
Property and equipment, net
$
555
$
634
Schedule of Accrued LiabilitiesAccrued liabilities consist of the following (in thousands):
March 31,
December 31,
2021
2020
Accrued research and development
$
2,287
$
676
Accrued compensation
1,004
1,671
Other accrued liabilities
858
604
Total accrued liabilities
$
4,149
$
2,951

Commitments and Contingencies (

Commitments and Contingencies (Tables)3 Months Ended
Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Information Related to Operating LeaseInformation related to the Company’s operating lease is as follows (in thousands):
Three Months Ended March 31,
2021
2020
Operating lease expense (including variable costs of $88 and $82 during the three months ended March 31, 2021 and 2020)
$
285
$
279
Cash paid for amounts included in the measurement of lease liabilities
$
209
$
180
Schedule of Future Minimum Noncancelable Operating Lease Payments and Lease LiabilityFuture minimum noncancelable operating lease payments and information related to the lease liability are as follows (in thousands):
March 31, 2021
Remaining during 2021
$
645
2022
876
2023
183
Total lease payments
1,704
Imputed interest
(132
)
Lease liability
1,572
Less current portion of lease liability
762
Lease liability, net of current portion
$
810

Long-Term Debt (Tables)

Long-Term Debt (Tables)3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Long-Term DebtLong-term debt –consists of the following (in thousands):
March 31, 2021
December 31, 2020
Long-term debt
$
10,000
$
10,000
Unamortized debt discount
(566
)
(628
)
Long-term debt, net of debt discount
$
9,434
$
9,372
Schedule of Future Minimum Principal and Interest Payments under Term LoanFuture minimum principal and interest payments under the Term Loan, including the final payment fee, as of March 31, 2021 are as follows (in thousands):
March 31, 2021
Remaining in 2021
$
554
2022
4,438
2023
6,949
Total principal and interest payments
11,941
Less interest and final payment fee
(1,941
)
Long-term debt
$
10,000

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Summary of Financial Instruments Measured at Fair Value on Recurring BasisThe following tables summarize the Company’s financial instruments measured at fair value on a recurring basis:
Fair Value Measurements At Reporting Date Using
Total
Quoted Prices in Active Markets For Identical Assets (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
As of March 31, 2021
Assets:
Commercial paper
$
27,387
$

$
27,387
$

Corporate debt securities
16,467

16,467

U.S. government and agency securities
21,146

21,146

Total assets measured at fair value
$
65,000
$

$
65,000
$

As of December 31, 2020
Assets:
Commercial paper
$
27,136
$

$
27,136
$

Corporate debt securities
26,506

26,506

U.S. government and agency securities
18,141

18,141

Total assets measured at fair value
$
71,783
$

$
71,783
$

Short-Term Investments (Tables)

Short-Term Investments (Tables)3 Months Ended
Mar. 31, 2021
Cash And Cash Equivalents [Abstract]
Summary of Short-Term InvestmentsThe following tables summarize short-term investments (in thousands):
As of March 31, 2021
Unrealized
Amortized Cost
Gains
Losses
Estimated Fair Value
Commercial paper
$
27,387
$

$

$
27,387
Corporate debt securities
16,472

(5
)
16,467
U.S. government and agency securities
21,141
5

21,146
Total short-term investments
$
65,000
$
5
$
(5
)
$
65,000
As of December 31, 2020
Unrealized
Amortized Cost
Gains
Losses
Estimated Fair Value
Commercial paper
$
27,136
$

$

$
27,136
Corporate debt securities
26,510

(4
)
26,506
U.S. government and agency securities
18,136
5

18,141
Total short-term investments
$
71,782
$
5
$
(4
)
$
71,783
Summary of Maturities of Short-Term InvestmentsThe following table summarizes the maturities of the Company’s short-term investments at March 31, 2021:
Amortized Cost
Estimated Fair Value
Due in one year or less
$
55,696
$
55,693
Due after one year through two years
9,304
9,307
Total short-term investments
$
65,000
$
65,000

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)3 Months Ended
Mar. 31, 2021
Equity [Abstract]
Summary of Unvested Shares and Unvested Stock LiabilityA summary of the Company’s unvested shares and unvested stock liability is as follows (in thousands, except share data):
Number of Unvested Shares
Unvested Stock Liability
Balance at December 31, 2020
36,492
$
27
Vested shares
(11,207
)
(8
)
Balance at March 31, 2021
25,285
$
19
Summary of Stock Option ActivityA summary of the Company’s stock option activity is as follows (in thousands, except share and per share data):
Number of Outstanding Options
Weighted Average Exercise Price
Weighted Average Remaining Contractual Term (In Years)
Aggregate Intrinsic Value
Balance at December 31, 2020
3,136,076
$
5.23
7.95
$
8,963
Granted
783,405
$
10.00
Exercised
(228,678
)
$
2.73
Cancelled
(1,838
)
$
3.01
Balance at March 31, 2021
3,688,965
$
6.40
8.46
$
4,132
Vested and expected to vest at March 31, 2021
3,688,965
$
6.40
8.46
$
4,132
Exercisable at March 31, 2021
871,203
$
2.60
6.26
$
3,152
Summary of Fair Value of Stock Option GrantsThe assumptions used in the Black-Scholes option pricing model to determine the fair value of stock option grants were as follows:
Three Months Ended March 31,
2021
2020
Risk-free interest rate
0.6% - 1.0%
0.6% – 0.7%
Expected volatility
88.7% - 89.5%
82.4% – 84.0%
Expected term (in years)
5.8 – 6.07
5.8 – 10.0
Expected dividend yield
0%
0%
Summary of Stock-Based Compensation Expense RecognizedStock-based compensation expense recognized for all equity awards has been reported in the unaudited condensed consolidated statements of operations and comprehensive loss as follows (in thousands):
Three Months Ended March 31,
2021
2020
General and administrative
$
1,026
$
285
Research and development
494
218
Total stock-based compensation
$
1,520
$
503
Schedule of Common Stock Reserved for Future IssuanceCommon stock reserved for future issuance consists of the following:
March 31,
December 31,
2021
2020
Common stock options outstanding
3,688,965
3,136,076
Shares available for issuance under equity incentive plans
3,166,412
2,907,742
Shares available for issuance under the ESPP
665,059
405,000
Common stock warrant
23,122
23,122
Total
7,543,558
6,471,940

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)Sep. 18, 2020Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Organization And Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit $ (135,514,000) $ (120,746,000)
Cash, cash equivalents and short-term investments84,500,000
Working capital85,500,000
Long-lived assets, impairment losses $ 0 $ 0
Minimum
Organization And Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful life3 years
Maximum
Organization And Summary Of Significant Accounting Policies [Line Items]
Property and equipment, estimated useful life5 years
IPO | Common Stock
Organization And Summary Of Significant Accounting Policies [Line Items]
Shares issued6,540,000
Shares issued, offering price per share $ 13
Net proceeds from issuance $ 76,900,000
Underwriter's discounts and commissions6,000,000
Stock issuance costs $ 2,200,000
Preferred stock automatically converted into Common Stock16,685,014

Organization and Summary of S_5

Organization and Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per Share (Details) - shares3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total3,737,372 18,621,754
Common Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total3,688,965 1,769,104
Unvested Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total25,285 144,514
Common Stock Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total23,122
Preferred Stock Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total23,122
Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total16,685,014

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Prepaid research and development $ 4,770 $ 4,473
Prepaid expenses1,011 610
Other current assets283 570
Interest receivable193 194
Total prepaid expenses and other current assets $ 6,257 $ 5,847

Balance Sheet Details - Sched_2

Balance Sheet Details - Schedule of Property and Equipment (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross $ 1,643 $ 1,643
Less accumulated depreciation and amortization(1,088)(1,009)
Property and equipment, net555 634
Laboratory Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross1,104 1,104
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Property and equipment, gross215 215
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross178 178
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross $ 146 $ 146

Balance Sheet Details - Additio

Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Depreciation $ 79 $ 68

Balance Sheet Details - Sched_3

Balance Sheet Details - Schedule of Accrued Liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Accrued research and development $ 2,287 $ 676
Accrued compensation1,004 1,671
Other accrued liabilities858 604
Total accrued liabilities $ 4,149 $ 2,951

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)1 Months Ended3 Months Ended
Mar. 31, 2018Mar. 31, 2021Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Operating lease term5 years
Operating lease commencement period2018-03
Operating lease option to extendUnder the terms of the agreement, there is no option to extend
Lessee, Operating Lease, Existence of Option to Extend [true false]false
Operating lease, remaining lease term24 months27 months
Operating lease, discount rate8.00%8.00%

Commitments and Contingencies_2

Commitments and Contingencies - Information Related to Operating Lease (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Operating lease expense (including variable costs of $88 and $82 during the three months ended March 31, 2021 and 2020) $ 285 $ 279
Cash paid for amounts included in the measurement of lease liabilities $ 209 $ 180

Commitments and Contingencies_3

Commitments and Contingencies - Information Related to Operating Lease (Parenthetical) (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Variable lease cost $ 88 $ 82

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Future Minimum Noncancelable Operating Lease Payments and Lease Liability (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Remaining during 2021 $ 645
2022876
2023183
Total lease payments1,704
Imputed interest(132)
Lease liability1,572
Current portion of operating lease liability762 $ 741
Operating lease liability, net of current portion $ 810 $ 1,007

Commitments and Contingencies_5

Commitments and Contingencies - Additional Information 1 (Details) - License Agreement with Salk InstituteMar. 31, 2021USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Payments based upon the achievement of certain regulatory milestones $ 400,000
Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone payments payable $ 6,500,000

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Disclosure [Abstract]
Long-term debt $ 10,000 $ 10,000
Unamortized debt discount(566)(628)
Long-term debt, net of debt discount $ 9,434 $ 9,372

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)Aug. 27, 2019Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Debt Instrument [Line Items]
Long-term debt $ 10,000,000 $ 10,000,000
Lender Warrant
Debt Instrument [Line Items]
Warrant to purchase number of shares of common stock upon completion of IPO23,122
Lender Warrant | Series C Convertible Preferred Stock
Debt Instrument [Line Items]
Warrant exercise price per share $ 10.812
Warrant expiration dateAug. 27,
2029
Percentage of preferred shares issuable on aggregate term loans upon exercise of warrant2.50%
Number of preferred stock shares initially exercisable upon funding of first tranche term loan117,924
Fair value of liabilities $ 200,000
Term Loans
Debt Instrument [Line Items]
Loan agreement dateAug. 27,
2019
Long-term debt $ 10,000,000 $ 10,000,000 10,000,000
Debt instrument, interest rate termsThe Term Loan bears interest at a floating annual rate equal to the greater of (i) the prime rate used by the Lender plus 2% (5.25% at March 31, 2021 and December 31, 2020, respectively), and (ii) 7.25%.
Debt instrument, payment termsThe monthly payments are interest-only until September 1, 2022. Subsequent to the interest-only period, the Term Loan will be payable in equal monthly installments of principal plus accrued and unpaid interest, through the maturity date of September 1, 2023 (“Maturity Date”).
Debt instrument, frequency of periodic paymentmonthly
Debt instrument, final payment fee percentage5.25%
Debt instrument, final payment fee $ 500,000 $ 500,000
Debt instrument, prepayment fee percentage3.00%3.00%
Debt instrument, subjective acceleration clauseThe Loan Agreement includes customary affirmative and negative covenants and also includes standard events of default, including an event of default based on the occurrence of a material adverse event, and a default under any agreement with a third party resulting in a right of such third party to accelerate the maturity of any debt in excess of $0.3 million.
Debt instrument, acceleration of maturity of debt, threshold amount $ 300,000
Debt instrument, covenant complianceAs of March 31, 2021 and December 31, 2020, the Company was in compliance with all applicable covenants under the Loan Agreement.
Debt issuance costs $ 300,000
Debt interest expense $ 200,000 $ 300,000
Debt discount amortization100,000 $ 100,000
Accrued interest $ 100,000 $ 100,000
Term Loans | Prime Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate2.00%
Debt instrument, variable rate5.25%5.25%
Term Loans | Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate7.25%
Term Loans | Maximum
Debt Instrument [Line Items]
Debt instrument, prepayment fee percentage3.00%
First Tranche Term Loan
Debt Instrument [Line Items]
Debt instrument, maturity dateSep. 1,
2023

Long-Term Debt - Schedule of Fu

Long-Term Debt - Schedule of Future Minimum Principal and Interest Payments under Term Loan (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Disclosure [Abstract]
Remaining in 2021 $ 554
20224,438
20236,949
Total principal and interest payments11,941
Less interest and final payment fee(1,941)
Long-term debt $ 10,000 $ 10,000

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - Fair Value Recurring - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Assets:
Total assets measured at fair value $ 65,000 $ 71,783
Commercial Paper
Assets:
Short-term investments27,387 27,136
Corporate Debt Securities
Assets:
Short-term investments16,467 26,506
U.S. Government and Agency Securities
Assets:
Short-term investments21,146 18,141
Significant Other Observable Inputs (Level 2)
Assets:
Total assets measured at fair value65,000 71,783
Significant Other Observable Inputs (Level 2) | Commercial Paper
Assets:
Short-term investments27,387 27,136
Significant Other Observable Inputs (Level 2) | Corporate Debt Securities
Assets:
Short-term investments16,467 26,506
Significant Other Observable Inputs (Level 2) | U.S. Government and Agency Securities
Assets:
Short-term investments $ 21,146 $ 18,141

Short-Term Investments - Summar

Short-Term Investments - Summary of Short-Term Investments (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost $ 65,000 $ 71,782
Unrealized Gains5 5
Unrealized Losses(5)(4)
Estimated Fair Value65,000 71,783
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost27,387 27,136
Estimated Fair Value27,387 27,136
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost16,472 26,510
Unrealized Losses(5)(4)
Estimated Fair Value16,467 26,506
U.S. Government and Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost21,141 18,136
Unrealized Gains5 5
Estimated Fair Value $ 21,146 $ 18,141

Short-Term Investments - Summ_2

Short-Term Investments - Summary of Maturities of Short-Term Investments (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost $ 65,000 $ 71,782
Estimated Fair Value65,000 $ 71,783
Due in One Year or Less
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost55,696
Estimated Fair Value55,693
Due After One Year Through Two Years
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost9,304
Estimated Fair Value $ 9,307

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands1 Months Ended3 Months Ended
Sep. 30, 2020Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant date fair value per share of option grants $ 7.34 $ 8.01
Total intrinsic value of stock options exercised $ 1,200 $ 1
Common stock available for future issuance7,543,558 6,471,940
Stock-based compensation expense $ 1,520 $ 503
Unrecognized stock-based compensation cost $ 18,700
Remaining weighted average period of unrecognized stock-based compensation cost3 years 1 month 6 days
2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized for issuance3,166,412
Number of shares available for issuance3,166,412
Equity Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option vesting period termOptions issued under the Equity Plans vest over a four-year period from the vesting commencement date
Equity Plans | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum term of options granted10 years
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum contribution percentage of eligible gross compensation15.00%
Maximum number of common stock shares purchase by eligible employees20,000
Percentage of fair market value of common stock85.00%
Offering period2 years
Offering period termOfferings under the ESPP are approximately two years in duration and consist of four purchase periods that are approximately six months in duration
Common stock available for future issuance665,059
Stock-based compensation expense $ 30

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Unvested Shares and Unvested Stock Liability (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)shares
Equity [Abstract]
Number of Unvested Shares, Beginning balance | shares36,492
Number of Unvested Shares, Vested shares | shares(11,207)
Number of Unvested Shares, Ending balance | shares25,285
Unvested Stock Liability, Beginning balance | $ $ 27
Unvested Stock Liability, Vested shares | $(8)
Unvested Stock Liability, Ending balance | $ $ 19

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Number of Outstanding Options
Balance at December 31, 20203,136,076
Granted783,405
Exercised(228,678)
Cancelled(1,838)
Balance at March 31, 20213,688,965 3,136,076
Vested and expected to vest at March 31, 20213,688,965
Exercisable at March 31, 2021871,203
Weighted Average Exercise Price
Balance at December 31, 2020 $ 5.23
Granted10
Exercised2.73
Cancelled3.01
Balance at March 31, 20216.40 $ 5.23
Vested and expected to vest at March 31, 20216.40
Exercisable at March 31, 2021 $ 2.60
Weighted Average Remaining Contractual Term (In Years)
Balance8 years 5 months 15 days7 years 11 months 12 days
Vested and expected to vest at March 31, 20218 years 5 months 15 days
Exercisable at March 31, 20216 years 3 months 3 days
Aggregate Intrinsic Value
Balance $ 4,132 $ 8,963
Vested and expected to vest at March 31, 20214,132
Exercisable at March 31, 2021 $ 3,152

Stockholders' Equity - Summar_3

Stockholders' Equity - Summary of Fair Value of Stock Option Grants (Details)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, minimum0.60%0.60%
Risk-free interest rate. maximum1.00%0.70%
Expected volatility, minimum88.70%82.40%
Expected volatility, maximum89.50%84.00%
Expected dividend yield0.00%0.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)5 years 9 months 18 days5 years 9 months 18 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)6 years 25 days10 years

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation $ 1,520 $ 503
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation1,026 285
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation $ 494 $ 218

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - sharesMar. 31, 2021Dec. 31, 2020
Class Of Stock [Line Items]
Common stock available for future issuance7,543,558 6,471,940
Common Stock Options Outstanding
Class Of Stock [Line Items]
Common stock available for future issuance3,688,965 3,136,076
Equity Incentive Plans
Class Of Stock [Line Items]
Common stock available for future issuance3,166,412 2,907,742
ESPP
Class Of Stock [Line Items]
Common stock available for future issuance665,059 405,000
Common Stock Warrant
Class Of Stock [Line Items]
Common stock available for future issuance23,122 23,122

401 (k) Plan - Additional Infor

401 (k) Plan - Additional Information (Details)3 Months Ended
Mar. 31, 2021USD ($)
Compensation And Retirement Disclosure [Abstract]
Defined contribution plan, descriptionThe Company maintains a defined contribution 401(k) plan available to eligible employees. Employee contributions are voluntary and are determined on an individual basis, limited to the maximum amount allowable under federal tax regulations. The Company, at its discretion, may make certain matching contributions to the 401(k) plan.
Defined contribution plan, plan name [Extensible List]mtcr:Plan401KMember
Contributions to plan made by company $ 0