Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Metacrine, Inc. | |
Entity Central Index Key | 0001634379 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 42,468,810 | |
Security12b Title | Common Stock, par value $0.0001 per share | |
Trading Symbol | MTCR | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-39512 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2297384 | |
Entity Address, Address Line One | 4225 Executive Square | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92037 | |
City Area Code | 858 | |
Local Phone Number | 369-7800 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 33,035 | $ 48,910 |
Short-term investments | 29,654 | 27,517 |
Prepaid expenses and other current assets | 4,047 | 2,313 |
Total current assets | 66,736 | 78,740 |
Property and equipment, net | 347 | |
Operating lease right-of-use asset | 902 | |
Total assets | 66,736 | 79,989 |
Current liabilities: | ||
Accounts payable | 264 | 368 |
Accrued liabilities | 5,209 | 6,567 |
Current portion of operating lease liability | 825 | |
Total current liabilities | 5,473 | 7,760 |
Operating lease liability, net of current portion | 181 | |
Long-term debt, net of debt discount | 13,425 | 13,303 |
Other long-term liabilities | 1,388 | 1,390 |
Commitments and contingencies (Note 3) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; authorized shares – 10,000,000 at March 31, 2022 and December 31, 2021, respectively; issued and outstanding shares – none at March 31, 2022 and December 31, 2021 | ||
Common stock, $0.0001 par value; authorized shares – 200,000,000 at March 31, 2022 and December 31, 2021, respectively; issued shares – 42,163,510 and 42,110,560 at March 31, 2022 and December 31, 2021, respectively; outstanding shares – 42,163,510 and 42,108,428 at March 31, 2022 and December 31, 2021, respectively | 4 | 4 |
Additional paid-in-capital | 242,322 | 240,309 |
Accumulated other comprehensive loss | (43) | (5) |
Accumulated deficit | (195,833) | (182,953) |
Total stockholders’ equity | 46,450 | 57,355 |
Total liabilities and stockholders’ equity | $ 66,736 | $ 79,989 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 42,163,510 | 42,110,560 |
Common stock, outstanding shares | 42,163,510 | 42,108,428 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating expenses: | ||
Research and development | $ 6,680 | $ 10,857 |
General and administrative | 5,482 | 3,696 |
Restructuring charges | 858 | |
Gain from lease termination and asset sale | (508) | |
Total operating expenses | 12,512 | 14,553 |
Loss from operations | (12,512) | (14,553) |
Other income (expense): | ||
Interest income | 23 | 36 |
Interest expense | (414) | (244) |
Other income (expense) | 23 | (7) |
Total other income (expense) | (368) | (215) |
Net loss | (12,880) | (14,768) |
Other comprehensive loss: | ||
Unrealized loss on available-for-sale securities, net | (38) | (2) |
Comprehensive loss | $ (12,918) | $ (14,770) |
Net loss per share, basic and diluted | $ (0.31) | $ (0.57) |
Weighted average shares of common stock outstanding, basic and diluted | 42,125,693 | 26,007,692 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities: | ||
Net loss | $ (12,880) | $ (14,768) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 68 | 79 |
Stock-based compensation | 2,010 | 1,520 |
Non-cash interest expense | 122 | 62 |
Amortization of premiums/discounts on investments, net | 1 | 170 |
Amortization of right-of-use asset | 179 | 164 |
Gain from lease termination and asset sale | (508) | |
Changes in operating assets and liabilities | ||
Prepaid expenses and other current assets | (1,034) | (410) |
Accounts payable and accrued liabilities | (1,461) | 1,189 |
Lease liability | (196) | (176) |
Net cash used in operating activities | (13,699) | (12,170) |
Investing activities: | ||
Purchases of short-term investments | (12,676) | (12,784) |
Sales and maturities of short-term investments | 10,500 | 19,395 |
Net cash (used in) provided by investing activities | (2,176) | 6,611 |
Financing activities: | ||
Proceeds from exercise of common stock options | 623 | |
Net cash provided by financing activities | 623 | |
Net decrease in cash and cash equivalents | (15,875) | (4,936) |
Cash and cash equivalents at beginning of period | 48,910 | 24,393 |
Cash and cash equivalents at end of period | 33,035 | 19,457 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 291 | 181 |
Receivable from asset sale | 700 | |
Supplemental non-cash investing and financing activities: | ||
Vesting of common stock | $ 3 | $ 8 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 31, 2020 | $ 89,279 | $ 3 | $ 210,021 | $ 1 | $ (120,746) |
Balance, shares at Dec. 31, 2020 | 25,969,442 | ||||
Stock-based compensation | 1,520 | 1,520 | |||
Exercise of stock options | 623 | 623 | |||
Exercise of stock options, shares | 228,678 | ||||
Vesting of common stock | 8 | 8 | |||
Vesting of early exercised stock options, shares | 11,207 | ||||
Unrealized loss on available-for-sale securities, net | (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, 2021 | 26,209,327 | ||||
Balance at Dec. 31, 2021 | $ 57,355 | $ 4 | 240,309 | (5) | (182,953) |
Balance, shares at Dec. 31, 2021 | 42,108,428 | 42,108,428 | |||
Stock-based compensation | $ 2,010 | 2,010 | |||
Vesting of common stock | $ 3 | 3 | |||
Vesting of early exercised stock options, shares | 2,132 | 2,132 | |||
Vesting of restricted stock units, shares | 52,950 | ||||
Unrealized loss on available-for-sale securities, net | $ (38) | (38) | |||
Net loss | (12,880) | (12,880) | |||
Balance at Mar. 31, 2022 | $ 46,450 | $ 4 | $ 242,322 | $ (43) | $ (195,833) |
Balance, shares at Mar. 31, 2022 | 42,163,510 | 42,163,510 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 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 currently focused on developing differentiated therapies for patients with gastrointestinal (“GI”) 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. All 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, 2021 filed on March 30, 2022. Liquidity and Capital Resources From its inception through March 31, 2022, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital, researching, discovering and developing its pipeline in farnesoid X receptor 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. The most significant estimates in the Company’s unaudited condensed consolidated financial statements relate to 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 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 factor s . 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. The Company sold its property and equipment on March 31, 2022 in connection with the termination of the facility lease for its former corporate headquarters. Refer to Note 3 in the unaudited condensed consolidated financial statements for further discussion. 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, 2022 and 2021. 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, milestone payments resulting from license agreements, 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 and other current assets . 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 The Company recognizes stock-based compensation expense related to stock options, restricted stock units, and shares granted under the Company’s 2 020 Employee Stock Purchase Plan (the “ESPP”). 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 unaudited condensed consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the unaudited condensed 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 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 August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Topic 815). ASU No. 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock and amending the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. The Company adopted ASU No. 2020-06 during the first quarter of 2022 using the modified retrospective method . The standard did no t 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 common stock warrants, unvested common stock subject to repurchase, and stock options and unvested restricted stock units outstanding under the Company’s equity incentive plans. 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, 2022 2021 Common stock options 4,319,278 3,688,965 Unvested restricted stock units 1,676,417 — Unvested common stock — 25,285 Common stock warrant 154,240 23,122 Total 6,149,935 3,737,372 |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Note 2 . Balance Sheet Details Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2022 2021 Prepaid research and development $ 2,404 $ 1,241 Prepaid expenses 738 578 Receivable from asset sale 700 — Other current assets 196 468 Interest receivable 9 26 Total prepaid expenses and other current assets $ 4,047 $ 2,313 Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued research and development $ 2,918 $ 4,250 Accrued compensation 1,418 1,653 Other accrued liabilities 873 664 Total accrued liabilities $ 5,209 $ 6,567 |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 3 . Commitments and Contingencies Operating Leases The Company entered into a five-year On March 11, 2022, the Company entered into an Agreement for Termination of Lease and Voluntary Surrender of Premises (“Lease Termination Agreement”) with ARE-SD Region No. 30, LLC (“Landlord”) to accelerate the termination of the facility lease for its former corporate headquarters. Under the terms of the Lease Termination Agreement, the Company’s lease would terminate on the later of March 31, 2022 and the date that Landlord notifies the Company that it has executed a lease agreement with a third party for the premises. On March 31, 2022 (“Lease Termination Date”), Landlord notified the Company that its lease had been terminated pursuant to the terms of the Lease Termination Agreement. As consideration for Landlord’s agreement to enter into the Lease Termination Agreement and accelerate the expiration date of the term of the lease, the Company surrendered certain items of personal property to Landlord and agreed to sell certain items of personal property to Belharra Therapeutics, Inc. (“Belharra”) for $0.7 million. The personal property was sold to Belharra on an “as is, where is” condition via a bill of sale that contained no representations or warranties. Jeffrey Jonker, a member of the Company’s Board of Directors, is the Chief Executive Officer of Belharra. The personal property was sold to Belharra on the Lease Termination Date, and after the Lease Termination Date, the Company did not report any property and equipment. On the Lease Termination Date, the Company derecognized the right-of-use asset of $0.7 million and current and noncurrent operating lease liabilities of $0.8 million in the unaudited condensed consolidated balance sheets in connection with the termination of its facility lease pursuant to the Lease Termination Agreement. The Company also derecognized net property and equipment of $0.3 million and recorded a receivable from asset sale of $0.7 million in connection with the asset sale to Belharra discussed above. The Company recognized a gain from lease termination and asset sale of $0.5 million in the unaudited condensed consolidated statements of operations. Prior to the Lease Termination Date, the Company recognized depreciation expense of $0.1 million during each of the three months ended March 31, 2022 and 2021. Information related to the Company’s operating lease prior to the Lease Termination Date is as follows (in thousands): Three Months Ended March 31, 2022 2021 Operating lease expense (including variable costs of $96 and $88 during the three months ended March 31, 2022 and 2021, respectively. $ 294 $ 285 Cash paid for amounts included in the measurement of lease liabilities $ 215 $ 209 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, 2022. 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 Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 4 . Long-Term Debt Long-term debt consists of the following (in thousands): March 31, 2022 December 31, 2021 Long-term debt $ 15,000 $ 15,000 Unamortized debt discount (1,575 ) (1,697 ) Long-term debt, net of debt discount $ 13,425 $ 13,303 On August 27, 2019, the Company entered into a Loan and Security Agreement with a lender (the “Lender”). The Company borrowed $10.0 million at the inception of the Loan and Security Agreement. On October 4, 2021, the Company entered into the second amendment to the Loan Agreement (“Second Amendment” or “Loan Agreement”) pursuant to which the existing term loan tranches were replaced and superseded by new term loan tranches (“Term Loans”) under which the Company could borrow up to an aggregate principal amount of $45.0 million subject to the achievement of certain milestones. The Company borrowed $15.0 million under the Term Loans on October 1, 2021. As of March 31, 2022 , $20.0 million in term loan tranches were available to the Company to borrow under the terms of the Loan Agreement, subject to the achievement of certain milestones. Prior to the Second Amendment, the Term Loans accrued interest at a floating annual rate equal to the greater of (i) the prime rate used by the Lender plus 2% and (ii) 7.25%. Subsequent to the Second Amendment, the Term Loans accrue interest at a floating annual rate equal to the greater of (i) the prime rate used by the Lender plus 4.5% and (ii) and 7.75%. The Company is only required to make monthly interest payments on amounts borrowed under the Term Loans from the applicable funding date through July 1, 2023 (“Interest Only Period”). Subsequent to the Interest Only Period, the Term Loans are payable in equal monthly installments of principal plus accrued and unpaid interest through the maturity date of April 1, 2025 (“Maturity Date”). In addition, the Company is required to make final fee payments equal to $0.5 million on September 1, 2023 and 5.75% of the aggregate original principal amount of the Term Loans made pursuant to the Second Amendment on the Maturity Date. As of both March 31, 2022 and December 31, 2021, the Company recorded final payment fees of $1.4 million in other long-term liabilities in the unaudited condensed consolidated balance sheets. The Company may elect to prepay all, but not less than all, of the Term Loans prior to the Maturity Date, subject to a prepayment fee of up to 3% 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, 2022 and December 31, 2021, 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 Lender Warrant was subsequently converted into a warrant to purchase 23,122 shares of common stock upon completion of the Company’s initial public offering ( The Lender, at its option, may elect to convert up to an aggregate principal amount of $3.0 million into shares of the Company’s common stock at any time after the effective date of the Second Amendment and prior to the full payment of the Term Loans at a conversion price of $3.86 per share. The embedded conversion option met the derivative accounting scope exception since the embedded conversion option is indexed to the Company’s own common stock and qualifies for classification within stockholders’ equity. The Company concluded that the Second Amendment was considered a debt modification for accounting purposes. The Company recognized additional debt issuance costs of $0.2 million, final payment fees of $0.9 million, and the fair value of the common stock warrant of $0.4 million resulting from the Second Amendment as debt discount. These amounts are being combined with the unamortized debt discount before the Second Amendment and are being amortized over the remaining term of the Loan Agreement under the effective interest method. For the three months ended March 31, 2022 and 2021, the Company recognized $0.4 million and $0.2 million of interest expense, including $0.1 million of debt discount amortization in connection with the Loan Agreement. As of March 31, 2022 and December 31, 2021, the Company had an outstanding Term Loan of $15.0 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, 2022 are as follows (in thousands): March 31, 2022 Remaining in 2022 $ 860 2023 5,543 2024 8,824 2025 3,825 Total principal and interest payments 19,052 Less interest and final payment fee (4,052 ) Long-term debt $ 15,000 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5. Fair Value of Financial Instruments The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis (in thousands): 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, 2022 Assets: Commercial paper $ 18,400 $ — $ 18,400 $ — U.S. government and agency securities 11,254 — 11,254 — Total assets measured at fair value $ 29,654 $ — $ 29,654 $ — As of December 31, 2021 Assets: Commercial paper $ 16,987 $ — $ 16,987 $ — U.S. government and agency securities 10,530 — 10,530 — Total assets measured at fair value $ 27,517 $ — $ 27,517 $ — |
Short-Term Investments
Short-Term Investments | 3 Months Ended |
Mar. 31, 2022 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Short-Term Investments | Note 6. Short-Term Investments The following tables summarize short-term investments (in thousands): As of March 31, 2022 Unrealized Amortized Cost Gains Losses Estimated Fair Value Commercial paper $ 18,433 $ — $ (33 ) $ 18,400 U.S. government and agency securities 11,265 — (11 ) 11,254 Total short-term investments $ 29,698 $ — $ (44 ) $ 29,654 As of December 31, 2021 Unrealized Amortized Cost Gains Losses Estimated Fair Value Commercial paper $ 16,991 $ 1 $ (5 ) $ 16,987 U.S. government and agency securities 10,531 — (1 ) 10,530 Total short-term investments $ 27,522 $ 1 $ (6 ) $ 27,517 The following table summarizes the maturities of the Company’s short-term investments at March 31, 2022 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 29,698 $ 29,654 Total short-term investments $ 29,698 $ 29,654 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7 . Stockholders’ Equity Sales Agreement On October 4, 2021, the Company entered into a sales agreement (the “Sales Agreement”) with SVB Leerink LLC (“SVB Leerink”) to sell shares of common stock from time to time through an “at-the-market” equity offering program (the “ATM”) under which SVB Leerink will act as the Company’s agent. The Company has no obligation to sell any shares of common stock under the Sales Agreement and may at any time suspend solicitation and offers under the Sales Agreement. 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, 2022, there were 2,189,082 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, 2021 2,132 $ 3 Vested shares (2,132 ) (3 ) Balance at March 31, 2022 — $ — 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, 2021 3,425,285 $ 6.17 7.82 $ 6 Granted 1,263,317 $ 0.47 Exercised — $ — Cancelled (369,324 ) $ 3.85 Balance at March 31, 2022 4,319,278 $ 4.70 7.60 $ 181 Vested and expected to vest at March 31, 2022 4,319,278 $ 4.70 7.60 $ 181 Exercisable at March 31, 2022 1,340,204 $ 5.97 5.78 $ 4 The weighted average grant date fair value per share of stock option grants for the three months ended March 31, 2022 and 2021 was $0.34 and $7.34, respectively. The total intrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021 was none and $1.2 million, 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, 2022 2021 Risk-free interest rate 1.9% 0.6% – 1.0% Expected volatility 87.5% 88.7% – 89.5% Expected term (in years) 5.6 5.8 – 6.1 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 in the biotechnology industry whose share prices are publicly available. 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 sufficient 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. Restricted Stock Units A summary of the Company’s restricted stock units activity is as follows (in thousands, except share and per share amounts): Number of Outstanding Awards Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Balance at December 31, 2021 468,500 $ 4.09 $ 314 Granted 1,263,317 $ 0.47 Released (55,400 ) $ 4.09 Cancelled — $ — Balance at March 31, 2022 1,676,417 $ 1.36 $ 429 Vested and expected to vest at March 31, 2022 1,676,417 $ 1.36 $ 429 In June 2021, the Company granted 359,100 restricted stock units to certain executives and employees that vest in full upon the achievement of a specified development milestone related to the Company’s FXR program. The Company assesses the probability the development milestone will be achieved on a quarterly basis and recognizes stock-based compensation cost ratably over the requisite service period. 287,750 restricted stock units vested in April 2022 upon the achievement of the development milestone. The fair value of restricted stock units that vested during the three months ended March 31, 2022 was $27 thousand. Employee Stock Purchase Plan In September 2020, the Company’s Board of Directors and stockholders adopted and approved the 2020 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. As of March 31, 2022, there were 1,004,710 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, 2022 2021 General and administrative $ 1,889 $ 1,026 Research and development 121 494 Total stock-based compensation $ 2,010 $ 1,520 As of March 31, 2022, unrecognized stock-based compensation expense was $11.6 million, which is expected to be recognized over a remaining weighted average period of approximately 2.0 years. Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following: March 31, December 31, 2022 2021 Common stock options outstanding 4,319,278 3,425,285 Shares available for issuance under equity incentive plans 2,189,082 2,661,970 Restricted stock units outstanding 1,676,417 468,500 Shares available for issuance under the ESPP 1,004,710 583,605 Common stock warrant 154,240 154,240 Total common stock reserved for future issuance 9,343,727 7,293,600 |
401 (k) Plan
401 (k) Plan | 3 Months Ended |
Mar. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
401 (k) Plan | Note 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, 2022, no contributions to the 401(k) plan have been made by the Company. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | Note 9. Restructuring Charges On February 10, 2022, the Company implemented a restructuring plan (the “Restructuring Plan”) designed to reduce the Company’s operating expenses, preserve cash and align its resources to support the ongoing clinical development of MET642 in inflammatory bowel disease. As part of the Restructuring Plan, the Company discontinued preclinical development of its hydroxysteroid dehydrogenase (“HSD”) program and implemented a staff reduction of approximately 50%, primarily consisting of the Company’s research organization. The Company recognized restructuring charges of $0.9 million in the unaudited condensed consolidated statement of operations during the three months ended March 31, 2022 that primarily consisted of one-time payments relating to severance obligations and customary employee benefits in connection with the staff reduction. The accelerated vesting of certain equity awards and the third-party costs associated with the discontinuation of the Company’s HSD program were immaterial during the three months ended March 31, 2022. Substantially all of the committed actions under the Restructuring Plan have been completed. The estimates of the costs the Company expects to incur, and the successful implementation of the restructuring activities pursuant to the Restructuring Plan, are subject to a number of assumptions, risks and uncertainties, and actual results may differ from the above-described estimates. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the Restructuring Plan. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 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. All 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, 2021 filed on March 30, 2022. |
Liquidity and Capital Resources | Liquidity and Capital Resources From its inception through March 31, 2022, the Company has devoted substantially all its efforts to organizing and staffing, business planning, raising capital, researching, discovering and developing its pipeline in farnesoid X receptor |
Use of Estimates | 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. The most significant estimates in the Company’s unaudited condensed consolidated financial statements relate to 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 | 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 Short-term investments primarily consist of commercial paper 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 factor s . 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 | 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 | 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, 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. The Company sold its property and equipment on March 31, 2022 in connection with the termination of the facility lease for its former corporate headquarters. Refer to Note 3 in the unaudited condensed consolidated financial statements for further discussion. |
Leases | 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 | 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, 2022 and 2021. |
Research and Development Costs | 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, milestone payments resulting from license agreements, 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 and other current assets . 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 | 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 The Company recognizes stock-based compensation expense related to stock options, restricted stock units, and shares granted under the Company’s 2 020 Employee Stock Purchase Plan (the “ESPP”). |
Income Taxes | 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 unaudited condensed consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the unaudited condensed 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 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 for all periods presented. |
Segment Reporting | 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 | Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Topic 815). ASU No. 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock and amending the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. The Company adopted ASU No. 2020-06 during the first quarter of 2022 using the modified retrospective method . The standard did no t have a material impact on the Company’s unaudited condensed consolidated financial statements. |
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, 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 common stock warrants, unvested common stock subject to repurchase, and stock options and unvested restricted stock units outstanding under the Company’s equity incentive plans. 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, 2022 2021 Common stock options 4,319,278 3,688,965 Unvested restricted stock units 1,676,417 — Unvested common stock — 25,285 Common stock warrant 154,240 23,122 Total 6,149,935 3,737,372 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per Share | 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, 2022 2021 Common stock options 4,319,278 3,688,965 Unvested restricted stock units 1,676,417 — Unvested common stock — 25,285 Common stock warrant 154,240 23,122 Total 6,149,935 3,737,372 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2022 2021 Prepaid research and development $ 2,404 $ 1,241 Prepaid expenses 738 578 Receivable from asset sale 700 — Other current assets 196 468 Interest receivable 9 26 Total prepaid expenses and other current assets $ 4,047 $ 2,313 |
Schedule of Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Accrued research and development $ 2,918 $ 4,250 Accrued compensation 1,418 1,653 Other accrued liabilities 873 664 Total accrued liabilities $ 5,209 $ 6,567 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Information Related to Operating Lease Prior to Lease Termination Date | Information related to the Company’s operating lease prior to the Lease Termination Date is as follows (in thousands): Three Months Ended March 31, 2022 2021 Operating lease expense (including variable costs of $96 and $88 during the three months ended March 31, 2022 and 2021, respectively. $ 294 $ 285 Cash paid for amounts included in the measurement of lease liabilities $ 215 $ 209 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (in thousands): March 31, 2022 December 31, 2021 Long-term debt $ 15,000 $ 15,000 Unamortized debt discount (1,575 ) (1,697 ) Long-term debt, net of debt discount $ 13,425 $ 13,303 |
Schedule of Future Minimum Principal and Interest Payments under Term Loan | Future minimum principal and interest payments under the Term Loan, including the final payment fee, as of March 31, 2022 are as follows (in thousands): March 31, 2022 Remaining in 2022 $ 860 2023 5,543 2024 8,824 2025 3,825 Total principal and interest payments 19,052 Less interest and final payment fee (4,052 ) Long-term debt $ 15,000 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial instruments measured at fair value on a recurring basis (in thousands): 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, 2022 Assets: Commercial paper $ 18,400 $ — $ 18,400 $ — U.S. government and agency securities 11,254 — 11,254 — Total assets measured at fair value $ 29,654 $ — $ 29,654 $ — As of December 31, 2021 Assets: Commercial paper $ 16,987 $ — $ 16,987 $ — U.S. government and agency securities 10,530 — 10,530 — Total assets measured at fair value $ 27,517 $ — $ 27,517 $ — |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Short Term Investments [Abstract] | |
Summary of Short-Term Investments | The following tables summarize short-term investments (in thousands): As of March 31, 2022 Unrealized Amortized Cost Gains Losses Estimated Fair Value Commercial paper $ 18,433 $ — $ (33 ) $ 18,400 U.S. government and agency securities 11,265 — (11 ) 11,254 Total short-term investments $ 29,698 $ — $ (44 ) $ 29,654 As of December 31, 2021 Unrealized Amortized Cost Gains Losses Estimated Fair Value Commercial paper $ 16,991 $ 1 $ (5 ) $ 16,987 U.S. government and agency securities 10,531 — (1 ) 10,530 Total short-term investments $ 27,522 $ 1 $ (6 ) $ 27,517 |
Summary of Maturities of Short-Term Investments | The following table summarizes the maturities of the Company’s short-term investments at March 31, 2022 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 29,698 $ 29,654 Total short-term investments $ 29,698 $ 29,654 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Unvested Shares and Unvested Stock Liability | 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, 2021 2,132 $ 3 Vested shares (2,132 ) (3 ) Balance at March 31, 2022 — $ — |
Summary of Stock Option Activity | 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, 2021 3,425,285 $ 6.17 7.82 $ 6 Granted 1,263,317 $ 0.47 Exercised — $ — Cancelled (369,324 ) $ 3.85 Balance at March 31, 2022 4,319,278 $ 4.70 7.60 $ 181 Vested and expected to vest at March 31, 2022 4,319,278 $ 4.70 7.60 $ 181 Exercisable at March 31, 2022 1,340,204 $ 5.97 5.78 $ 4 |
Summary of Fair Value of Stock Option Grants | 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, 2022 2021 Risk-free interest rate 1.9% 0.6% – 1.0% Expected volatility 87.5% 88.7% – 89.5% Expected term (in years) 5.6 5.8 – 6.1 Expected dividend yield 0 % 0 % |
Summary of Restricted Stock Units Activity | A summary of the Company’s restricted stock units activity is as follows (in thousands, except share and per share amounts): Number of Outstanding Awards Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Balance at December 31, 2021 468,500 $ 4.09 $ 314 Granted 1,263,317 $ 0.47 Released (55,400 ) $ 4.09 Cancelled — $ — Balance at March 31, 2022 1,676,417 $ 1.36 $ 429 Vested and expected to vest at March 31, 2022 1,676,417 $ 1.36 $ 429 |
Summary of Stock-Based Compensation Expense Recognized | 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, 2022 2021 General and administrative $ 1,889 $ 1,026 Research and development 121 494 Total stock-based compensation $ 2,010 $ 1,520 |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consists of the following: March 31, December 31, 2022 2021 Common stock options outstanding 4,319,278 3,425,285 Shares available for issuance under equity incentive plans 2,189,082 2,661,970 Restricted stock units outstanding 1,676,417 468,500 Shares available for issuance under the ESPP 1,004,710 583,605 Common stock warrant 154,240 154,240 Total common stock reserved for future issuance 9,343,727 7,293,600 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Accumulated deficit | $ (195,833,000) | $ (182,953,000) | |
Cash, cash equivalents and short-term investments | 62,700,000 | ||
Working capital | 61,300,000 | ||
Long-lived assets, impairment losses | $ 0 | $ 0 | |
ASU No. 2020-06 | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adopted | true | ||
Change in accounting principle, accounting standards update, immaterial effect | true | ||
Minimum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years | ||
Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 5 years |
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) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 6,149,935 | 3,737,372 |
Common Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 4,319,278 | 3,688,965 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 1,676,417 | |
Unvested Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 25,285 | |
Common Stock Warrant | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 154,240 | 23,122 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid research and development | $ 2,404 | $ 1,241 |
Prepaid expenses | 738 | 578 |
Receivable from asset sale | 700 | |
Other current assets | 196 | 468 |
Interest receivable | 9 | 26 |
Total prepaid expenses and other current assets | $ 4,047 | $ 2,313 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities Current [Abstract] | ||
Accrued research and development | $ 2,918 | $ 4,250 |
Accrued compensation | 1,418 | 1,653 |
Other accrued liabilities | 873 | 664 |
Total accrued liabilities | $ 5,209 | $ 6,567 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 11, 2022 | Mar. 31, 2018 | Mar. 31, 2022 | Mar. 31, 2021 |
Lessor Lease Description [Line Items] | ||||
Operating lease term | 5 years | |||
Operating lease commencement period | 2018-03 | |||
Operating lease option to extend | Under the terms of the agreement, there was no option to extend | |||
Lessee, Operating Lease, Existence of Option to Extend [true false] | false | |||
Right of use asset derecognized | $ 700 | |||
Current and noncurrent operating lease liabilities | 800 | |||
Property and equipment derecognized | 300 | |||
Receivable from asset sale | 700 | |||
Gain from lease termination and asset sale | 500 | $ 508 | ||
Depreciation | $ 68 | $ 79 | ||
Belharra Therapeutics | ||||
Lessor Lease Description [Line Items] | ||||
Property agreed to sale | $ 700 |
Commitments and Contingencies_2
Commitments and Contingencies - Information Related to Operating Lease Prior to Lease Termination Date (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease expense (including variable costs of $96 and $88 during the three months ended March 31, 2022 and 2021, respectively. | $ 294 | $ 285 |
Cash paid for amounts included in the measurement of lease liabilities | $ 215 | $ 209 |
Commitments and Contingencies_3
Commitments and Contingencies - Information Related to Operating Lease Prior to Lease Termination Date (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Variable lease cost | $ 96 | $ 88 |
Commitments and Contingencies_4
Commitments and Contingencies - Additional Information 1 (Details) - License Agreement with Salk Institute | Mar. 31, 2022USD ($) |
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 Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Long-term debt | $ 15,000 | $ 15,000 |
Unamortized debt discount | (1,575) | (1,697) |
Long-term debt, net of debt discount | $ 13,425 | $ 13,303 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Sep. 01, 2023 | Oct. 01, 2021 | Aug. 27, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 15,000,000 | $ 15,000,000 | |||||
Lender Warrant | Series C Convertible Preferred Stock | |||||||
Debt Instrument [Line Items] | |||||||
Warrant exercise price per share | $ 10.812 | ||||||
Warrant expiration date | Aug. 27, 2029 | ||||||
Warrant to purchase number of shares of common stock | 23,122 | ||||||
Second Amendment To Loan Agreement | Lender Warrant | |||||||
Debt Instrument [Line Items] | |||||||
Warrants issued to purchase shares of common stock | $ 400,000 | ||||||
Second Amendment To Loan Agreement | Lender Warrant | Common Stock | |||||||
Debt Instrument [Line Items] | |||||||
Warrant exercise price per share | $ 2.86 | ||||||
Warrant expiration date | Oct. 1, 2031 | ||||||
Percentage of common shares issuable on aggregate term loans upon exercise of warrant | 2.50% | ||||||
Fair value of liabilities | $ 400,000 | ||||||
Term Loans | |||||||
Debt Instrument [Line Items] | |||||||
Loan agreement date | Aug. 27, 2019 | ||||||
Long-term debt | $ 10,000,000 | $ 15,000,000 | 15,000,000 | ||||
Debt instrument, interest rate terms | Prior to the Second Amendment, the Term Loans accrued interest at a floating annual rate equal to the greater of (i) the prime rate used by the Lender plus 2% and (ii) 7.25%. Subsequent to the Second Amendment, the Term Loans accrue interest at a floating annual rate equal to the greater of (i) the prime rate used by the Lender plus 4.5% and (ii) and 7.75%. | ||||||
Debt instrument, frequency of periodic payment | monthly | ||||||
Debt instrument, final payment fee percentage | 5.75% | ||||||
Debt instrument, final payment fee | $ 1,400,000 | 1,400,000 | |||||
Debt instrument, prepayment fee percentage | 3.00% | 3.00% | |||||
Debt instrument, subjective acceleration clause | 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. | ||||||
Debt instrument, acceleration of maturity of debt, threshold amount | $ 300,000 | ||||||
Debt instrument, covenant compliance | As of March 31, 2022 and December 31, 2021, the Company was in compliance with all applicable covenants under the Loan Agreement. | ||||||
Debt interest expense | $ 400,000 | $ 200,000 | |||||
Debt discount amortization | 100,000 | $ 100,000 | |||||
Accrued interest | $ 100,000 | $ 100,000 | |||||
Term Loans | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||
Term Loans | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, variable rate | 7.25% | ||||||
Term Loans | Second Amendment To Loan Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maximum borrowing capacity | $ 45,000,000 | ||||||
Debt instrument, final payment fee | $ 500,000 | $ 900,000 | |||||
Debt issuance costs | $ 200,000 | ||||||
Term Loans | Second Amendment To Loan Agreement | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 4.50% | ||||||
Term Loans | Second Amendment To Loan Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, variable rate | 7.75% | ||||||
Debt instrument, prepayment fee percentage | 3.00% | ||||||
Term Loans | Second Amendment | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, convertible outstanding principal | $ 3,000,000 | ||||||
Debt instrument, convertible, conversion price | $ 3.86 | ||||||
First Tranche Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, maturity date | Apr. 1, 2025 | ||||||
First Tranche Term Loan | Second Amendment To Loan Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 15,000,000 | ||||||
Second Tranche Term Loan | Second Amendment To Loan Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, borrowing amount available | $ 20,000,000 |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Minimum Principal and Interest Payments under Term Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Remaining in 2022 | $ 860 | |
2023 | 5,543 | |
2024 | 8,824 | |
2025 | 3,825 | |
Total principal and interest payments | 19,052 | |
Less interest and final payment fee | (4,052) | |
Long-term debt | $ 15,000 | $ 15,000 |
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 Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Total assets measured at fair value | $ 29,654 | $ 27,517 |
Commercial Paper | ||
Assets: | ||
Short-term investments | 18,400 | 16,987 |
U.S. Government and Agency Securities | ||
Assets: | ||
Short-term investments | 11,254 | 10,530 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets measured at fair value | 29,654 | 27,517 |
Significant Other Observable Inputs (Level 2) | Commercial Paper | ||
Assets: | ||
Short-term investments | 18,400 | 16,987 |
Significant Other Observable Inputs (Level 2) | U.S. Government and Agency Securities | ||
Assets: | ||
Short-term investments | $ 11,254 | $ 10,530 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-Term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 29,698 | $ 27,522 |
Unrealized Gains | 1 | |
Unrealized Losses | (44) | (6) |
Estimated Fair Value | 29,654 | 27,517 |
Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 18,433 | 16,991 |
Unrealized Gains | 1 | |
Unrealized Losses | (33) | (5) |
Estimated Fair Value | 18,400 | 16,987 |
U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 11,265 | 10,531 |
Unrealized Losses | (11) | (1) |
Estimated Fair Value | $ 11,254 | $ 10,530 |
Short-Term Investments - Summ_2
Short-Term Investments - Summary of Maturities of Short-Term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 29,698 | $ 27,522 |
Estimated Fair Value | 29,654 | $ 27,517 |
Due in One Year or Less | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 29,698 | |
Estimated Fair Value | $ 29,654 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Oct. 04, 2021 | Apr. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average grant date fair value per share of option grants | $ 0.34 | $ 7.34 | |||||
Total intrinsic value of stock options exercised | $ 0 | $ 1,200,000 | |||||
Common stock available for future issuance | 9,343,727 | 7,293,600 | |||||
Unrecognized stock-based compensation cost | $ 11,600,000 | ||||||
Remaining weighted average period of unrecognized stock-based compensation cost | 2 years | ||||||
Unvested Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares granted | 359,100 | 1,263,317 | |||||
Fair value of restricted stock units vested | $ 27,000 | ||||||
Unvested Restricted Stock Units | Subsequent Event | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares vested | 287,750 | ||||||
2020 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance | 2,189,082 | ||||||
Number of shares available for issuance | 2,189,082 | ||||||
Equity Plans | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Option vesting period term | options 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 granted | 10 years | ||||||
ESPP | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum contribution percentage of eligible gross compensation | 15.00% | ||||||
Maximum number of common stock shares purchase by eligible employees | 20,000 | ||||||
Percentage of fair market value of common stock | 85.00% | ||||||
Offering period | 2 years | ||||||
Offering period term | Offerings 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 issuance | 1,004,710 | ||||||
Sales Agreement | At-The-Market Offering | SVB Leerink LLC | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Sale of stock under sales agreement, description | The Company has no obligation to sell any shares of common stock under the Sales Agreement and may at any time suspend solicitation and offers under the Sales Agreement. | ||||||
Sale of stock, agreement date | Oct. 4, 2021 | ||||||
Sale of stock, agent compensation percentage | 3.00% | ||||||
Common stock value available for future issuance | $ 50,000,000 | ||||||
Potential proceeds from additional shares to be sold in transaction | $ 27,300,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Unvested Shares and Unvested Stock Liability (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)shares | |
Equity [Abstract] | |
Number of Unvested Shares, Beginning balance | shares | 2,132 |
Number of Unvested Shares, Vested shares | shares | (2,132) |
Unvested Stock Liability, Beginning balance | $ | $ 3 |
Unvested Stock Liability, Vested shares | $ | $ (3) |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Outstanding Options | ||
Balance at December 31, 2021 | 3,425,285 | |
Granted | 1,263,317 | |
Cancelled | (369,324) | |
Balance at March 31, 2022 | 4,319,278 | 3,425,285 |
Vested and expected to vest at March 31, 2022 | 4,319,278 | |
Exercisable at March 31, 2022 | 1,340,204 | |
Weighted Average Exercise Price | ||
Balance at December 31, 2021 | $ 6.17 | |
Granted | 0.47 | |
Cancelled | 3.85 | |
Balance at March 31, 2022 | 4.70 | $ 6.17 |
Vested and expected to vest at March 31, 2022 | 4.70 | |
Exercisable at March 31, 2022 | $ 5.97 | |
Weighted Average Remaining Contractual Term (In Years) | ||
Balance | 7 years 7 months 6 days | 7 years 9 months 25 days |
Vested and expected to vest at March 31, 2022 | 7 years 7 months 6 days | |
Exercisable at March 31, 2022 | 5 years 9 months 10 days | |
Aggregate Intrinsic Value | ||
Balance | $ 181 | $ 6 |
Vested and expected to vest at March 31, 2022 | 181 | |
Exercisable at March 31, 2022 | $ 4 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Fair Value of Stock Option Grants (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.90% | |
Risk-free interest rate, minimum | 0.60% | |
Risk-free interest rate. maximum | 1.00% | |
Expected volatility | 87.50% | |
Expected volatility, minimum | 88.70% | |
Expected volatility, maximum | 89.50% | |
Expected term (in years) | 5 years 7 months 6 days | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 5 years 9 months 18 days | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Outstanding Awards | |||
Number of Unvested Shares, Beginning balance | 2,132 | ||
Restricted Stock Units | |||
Number of Outstanding Awards | |||
Number of Unvested Shares, Beginning balance | 468,500 | ||
Granted | 359,100 | 1,263,317 | |
Released | (55,400) | ||
Number of Unvested Shares, Ending balance | 1,676,417 | ||
Vested and expected to vest at March 31, 2022 | 1,676,417 | ||
Weighted Average Grant Date Fair Value | |||
Balance at December 31, 2021 | $ 4.09 | ||
Granted | 0.47 | ||
Released | 4.09 | ||
Balance at March 31, 2022 | 1.36 | ||
Vested and expected to vest at March 31, 2022 | $ 1.36 | ||
Aggregate Intrinsic Value | |||
Balance | $ 429 | $ 314 | |
Vested and expected to vest at March 31, 2022 | $ 429 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 2,010 | $ 1,520 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 1,889 | 1,026 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 121 | $ 494 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Class Of Stock [Line Items] | ||
Common stock available for future issuance | 9,343,727 | 7,293,600 |
Common Stock Options Outstanding | ||
Class Of Stock [Line Items] | ||
Common stock available for future issuance | 4,319,278 | 3,425,285 |
Equity Incentive Plans | ||
Class Of Stock [Line Items] | ||
Common stock available for future issuance | 2,189,082 | 2,661,970 |
Restricted Stock Units Outstanding | ||
Class Of Stock [Line Items] | ||
Common stock available for future issuance | 1,676,417 | 468,500 |
ESPP | ||
Class Of Stock [Line Items] | ||
Common stock available for future issuance | 1,004,710 | 583,605 |
Common Stock Warrant | ||
Class Of Stock [Line Items] | ||
Common stock available for future issuance | 154,240 | 154,240 |
401 (k) Plan - Additional Infor
401 (k) Plan - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Defined contribution plan, description | 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. |
Contributions to plan made by company | $ 0 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Feb. 10, 2022 | |
Subsequent Events [Abstract] | ||
Percentage of staff reduction due To discontinued HSD program | 50.00% | |
Restructuring charges | $ 858 |