Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37687 | ||
Entity Registrant Name | EDITAS MEDICINE, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4097528 | ||
Entity Address, Address Line One | 11 Hurley Street | ||
Entity Address, City or Town | Cambridge | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02141 | ||
City Area Code | 617 | ||
Local Phone Number | 401-9000 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | EDIT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 671,127,999 | ||
Entity Common Stock, Shares Outstanding | 81,813,850 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2024 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days of the end of the registrant’s fiscal year ended December 31, 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001650664 | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 123,652 | $ 141,522 |
Marketable securities | 199,459 | 202,752 |
Accounts receivable | 10,187 | 5,145 |
Prepaid expenses and other current assets | 7,531 | 7,335 |
Total current assets | 340,829 | 356,754 |
Marketable securities | 104,024 | 93,097 |
Property and equipment, net | 12,032 | 15,569 |
Right-of-use assets | 33,680 | 43,648 |
Restricted cash and other non-current assets | 8,588 | 5,253 |
Total assets | 499,153 | 514,321 |
Current liabilities: | ||
Accounts payable | 8,269 | 9,511 |
Accrued expenses | 34,563 | 31,296 |
Deferred revenue, current | 8,221 | 8,221 |
Operating lease liabilities | 12,164 | 11,082 |
Total current liabilities | 63,217 | 60,110 |
Operating lease liabilities, net of current portion | 24,372 | 32,864 |
Deferred revenue, net of current portion | 60,667 | 60,667 |
Other non-current liabilities | 1,800 | 0 |
Total liabilities | 150,056 | 153,641 |
Stockholders’ equity | ||
Preferred stock, $0.0001 par value per share: 5,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value per share: 195,000,000 shares authorized; 81,767,263 and 68,847,382 shares issued, and 81,767,263 and 68,847,382 shares outstanding at December 31, 2023 and December 31, 2022, respectively | 8 | 7 |
Additional paid-in capital | 1,580,241 | 1,442,405 |
Accumulated other comprehensive income (loss) | 198 | (3,601) |
Accumulated deficit | (1,231,350) | (1,078,131) |
Total stockholders’ equity | 349,097 | 360,680 |
Total liabilities and stockholders’ equity | $ 499,153 | $ 514,321 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 195,000,000 | 195,000,000 |
Common stock, shares issued | 81,767,263 | 68,847,382 |
Common stock, shares outstanding | 81,767,263 | 68,847,382 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Collaboration and other research and development revenues | $ 78,123 | $ 19,712 | $ 25,544 |
Revenue type | Service [Member] | Service [Member] | Service [Member] |
Operating expenses: | |||
Research and development | $ 177,651 | $ 174,958 | $ 142,507 |
General and administrative | 69,653 | 70,704 | 76,183 |
Total operating expenses | 247,304 | 245,662 | 218,690 |
Operating loss | (169,181) | (225,950) | (193,146) |
Other income, net: | |||
Other income, net | (1,604) | 0 | 37 |
Interest income, net | 17,566 | 5,518 | 607 |
Total other income, net | 15,962 | 5,518 | 644 |
Net loss | $ (153,219) | $ (220,432) | $ (192,502) |
Net loss per share, basic (in dollars per share) | $ (2.02) | $ (3.21) | $ (2.85) |
Net loss per share, diluted (in dollars per share) | $ (2.02) | $ (3.21) | $ (2.85) |
Weighted-average common shares outstanding, basic (in shares) | 75,965,633 | 68,664,822 | 67,619,388 |
Weighted-average common shares outstanding, diluted (in shares) | 75,965,633 | 68,664,822 | 67,619,388 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net loss | $ (153,219) | $ (220,432) | $ (192,502) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on marketable debt securities | 3,799 | (3,108) | (447) |
Comprehensive loss | $ (149,420) | $ (223,540) | $ (192,949) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 62,563,457 | ||||
Balance, beginning of period at Dec. 31, 2020 | $ 393,586 | $ 6 | $ 1,058,823 | $ (665,197) | $ (46) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock for public offering (in shares) | 4,025,000 | ||||
Issuance of common stock for public offering | 249,459 | $ 1 | 249,458 | ||
Issuance of common stock for repayment of notes payable (in shares) | 303,599 | ||||
Issuance of common stock for repayment of notes payable | 27,500 | 27,500 | |||
Exercise of stock options (in shares) | 1,233,958 | ||||
Exercise of stock options | 31,495 | 31,495 | |||
Stock-based compensation expense | 43,399 | 43,399 | |||
Vesting of restricted common stock awards (in shares) | 267,268 | ||||
Purchase of common stock under benefits plans (in shares) | 41,975 | ||||
Purchase of common stock under benefit plan | 1,152 | 1,152 | |||
Unrealized gain (loss) on marketable debt securities | (447) | (447) | |||
Net loss | (192,502) | (192,502) | |||
Balance, end of period (in shares) at Dec. 31, 2021 | 68,435,257 | ||||
Balance, end of period at Dec. 31, 2021 | 553,642 | $ 7 | 1,411,827 | (857,699) | (493) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 19,769 | ||||
Exercise of stock options | 305 | 305 | |||
Stock-based compensation expense | 29,294 | 29,294 | |||
Vesting of restricted common stock awards (in shares) | 286,642 | ||||
Purchase of common stock under benefits plans (in shares) | 105,714 | ||||
Purchase of common stock under benefit plan | 979 | 979 | |||
Unrealized gain (loss) on marketable debt securities | (3,108) | (3,108) | |||
Net loss | (220,432) | (220,432) | |||
Balance, end of period (in shares) at Dec. 31, 2022 | 68,847,382 | ||||
Balance, end of period at Dec. 31, 2022 | 360,680 | $ 7 | 1,442,405 | (1,078,131) | (3,601) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock for public offering (in shares) | 12,500,000 | ||||
Issuance of common stock for public offering | 117,079 | $ 1 | 117,078 | ||
Exercise of stock options (in shares) | 6,587 | ||||
Exercise of stock options | 41 | 41 | |||
Stock-based compensation expense | 19,798 | 19,798 | |||
Vesting of restricted common stock awards (in shares) | 297,934 | ||||
Purchase of common stock under benefits plans (in shares) | 115,360 | ||||
Purchase of common stock under benefit plan | 919 | 919 | |||
Unrealized gain (loss) on marketable debt securities | 3,799 | 3,799 | |||
Net loss | (153,219) | (153,219) | |||
Balance, end of period (in shares) at Dec. 31, 2023 | 81,767,263 | ||||
Balance, end of period at Dec. 31, 2023 | $ 349,097 | $ 8 | $ 1,580,241 | $ (1,231,350) | $ 198 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow from operating activities | |||
Net loss | $ (153,219) | $ (220,432) | $ (192,502) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 19,798 | 29,294 | 43,399 |
Depreciation | 6,064 | 6,337 | 5,053 |
Net amortization of premiums and discounts on marketable securities | (4,823) | (724) | 1,657 |
Other non-cash items, net | 1,596 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,042) | (4,878) | 5,781 |
Prepaid expenses and other current assets | (197) | (137) | 3,731 |
Right-of-use assets | 9,968 | (17,475) | 9,691 |
Other non-current assets | (3,335) | 1,558 | (2,108) |
Accounts payable | (1,492) | 4,368 | (1,139) |
Accrued expenses | 4,114 | 10,505 | (4,166) |
Deferred revenue | 0 | (3,333) | (22,706) |
Operating lease liabilities | (7,410) | 17,568 | (10,494) |
Other current and non-current liabilities | 1,800 | 0 | 0 |
Net cash used in operating activities | (132,178) | (177,349) | (163,803) |
Cash flow from investing activities | |||
Purchases of property and equipment | (4,719) | (4,118) | (7,977) |
Proceeds from the sale of equipment | 0 | 18 | 0 |
Purchases of marketable securities | (258,517) | (315,186) | (408,891) |
Proceeds from maturities of marketable securities | 259,505 | 433,354 | 362,402 |
Net cash provided by (used in) investing activities | (3,731) | 114,068 | (54,466) |
Cash flow from financing activities | |||
Proceeds from offering of common stock, net of issuance costs | 117,079 | 0 | 249,459 |
Proceeds from exercise of stock options | 41 | 305 | 31,495 |
Issuance of common stock under benefit plans | 919 | 979 | 1,152 |
Net cash provided by financing activities | 118,039 | 1,284 | 282,106 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (17,870) | (61,997) | 63,837 |
Cash, cash equivalents, and restricted cash, beginning of period | 145,399 | 207,396 | 143,559 |
Cash, cash equivalents, and restricted cash, end of period | 127,529 | 145,399 | 207,396 |
Supplemental disclosure of cash and non-cash activities: | |||
Fixed asset additions included in accounts payable and accrued expenses | 845 | 1,440 | 749 |
Cash paid in connection with operating lease liabilities | 12,428 | 14,851 | 13,094 |
Right-of-use assets obtained in exchange of operating lease obligations | $ 2,752 | $ 29,861 | $ 10,736 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Editas Medicine, Inc. (the “Company”) is a clinical stage genome editing company dedicated to developing potentially transformative genomic medicines to treat a broad range of serious diseases. The Company was incorporated in the state of Delaware in September 2013. Its principal offices are in Cambridge, Massachusetts. Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, and raising capital. The Company has primarily financed its operations through various equity financings, payments received under a research collaboration with Juno Therapeutics, a wholly-owned subsidiary of the Bristol-Myers Squibb Company (“BMS”), payments received under a strategic alliance and option agreement with Allergan Pharmaceuticals International Limited (together with its affiliates, “Allergan”) and payments received in conjunction with the Company’s license agreement with Vertex Pharmaceuticals, Inc (“Vertex”). The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations and ability to transition from pilot-scale manufacturing to large-scale production of products. Liquidity As of December 31, 2023, the Company has raised an aggregate of $1.0 billion in net proceeds through the sale of shares of its common stock in public offerings and at-the-market offerings. The Company also has funded its business from payments received under its license agreement with Vertex, its research collaboration with BMS and its former strategic alliance with Allergan. As of December 31, 2023, the Company had cash, cash equivalents and marketable securities of $427.1 million. In May 2021, the Company entered into a common stock sales agreement with Cowen and Company, LLC (“Cowen”), under which the Company from time to time can issue and sell shares of its common stock through Cowen in at-the-market offerings for aggregate gross sale proceeds of up to $300.0 million (the “ATM Facility”). As of December 31, 2023 the Company has not sold any shares of its common stock under the ATM Facility. The Company has incurred annual net operating losses in every year since its inception. The Company has an accumulated deficit of $1.2 billion at December 31, 2023. As of February 28, 2024, the issuance date of the consolidated financial statements, the Company expects that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the issuance date of the consolidate financial statements. The Company has never generated any product revenue. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Editas Medicine, Inc. and its wholly owned subsidiaries, Editas Securities Corporation, which is a Delaware subsidiary created to buy, sell and hold securities, and Editas Medicine, LLC, a Delaware limited liability company. All intercompany transactions and balances have been eliminated. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates its estimates, which include, but are not limited to, estimates related to revenue recognition, stock-based compensation expense, the accrual for research and development expenses, valuations of in-process research and development assets and deferred tax valuation allowances. The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as the exchange price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: • Level 1 – Quoted market prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates, and yield curves. • Level 3 – Unobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, restricted cash, marketable securities, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and other current liabilities approximate their fair values, due to their short-term nature. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include cash held in banks and amounts held in money market funds. The Company has restricted cash of $3.9 million held as collateral for the Company’s office and lab facilities and credit card program. The restricted funds are maintained in a traditional bank account. The following table presents cash, cash equivalents, and restricted cash as reported on the consolidated balance sheets that equal the total amounts on the consolidated statements of cash flows (in thousands): Year Ended 2023 2022 Cash and cash equivalents $ 123,652 $ 141,522 Restricted cash included in "Restricted cash and other non-current assets" 3,877 3,877 Total cash, cash equivalents, and restricted cash $ 127,529 $ 145,399 Marketable Securities The Company classifies marketable securities with a remaining maturity when purchased of greater than three months and less than one year from the balance sheet date as current. Marketable securities are classified as long-term assets on the consolidated balance sheets if the contractual maturity exceeds one year and the Company does not intend to utilize the marketable securities to fund current operations. For the years ended December 31, 2023 and 2022, the Company’s marketable securities consisted of investments in available-for-sale debt securities and corporate equity securities. Available-for-sale debt securities are carried at fair value with the unrealized gains and losses included in accumulated other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the of the underlying security. Realized gains and losses are included in other income (expense). At each reporting date, the Company records an allowance for credit losses and reports it as credit loss expense which is included in “Other income (expense), net” in the Company’s consolidated statement of operations. The estimate for credit losses includes a measure of the expected risk of credit loss even if the risk is remote. When assessing financial assets for credit losses, the Company pools financial assets with similar risk characteristics and performs a collective evaluation. A credit loss on an available-for-sale debt security is limited to the difference in fair value and the amortized cost. A previously recognized credit loss may be increased or decreased in subsequent periods if the Company’s estimate of fair value changes. To determine whether to record a credit loss, the Company considers issuer or vendor specific credit ratings and historical losses as well as current economic conditions and its expectations for future economic conditions. To date, the Company has not had any credit losses, and the Company did not have an allowance for credit losses as of December 31, 2023 and 2022. The Company classified investments in equity securities that had a readily determinable fair value as marketable securities in the Company’s consolidated balance sheets. The fair value of these securities were based on a quoted price for an identical equity security. If the equity security had a restriction that was determined to be an attribute of the security that would transfer to a market participant, the fair value of the security was measured based on the quoted price for an otherwise identical unrestricted equity security, adjusted for the effect of the restriction. The adjustment reflects the discount that a market participant would demand for the risk relating to the inability to dispose of the security for a specified period of time. The Company recorded changes in the fair value of its equity securities in “Other income (expense), net” in the Company’s consolidated statement of operations. Accounts Receivable The Company makes judgments as to its ability to collect outstanding receivables and provides an allowance for receivables when collection becomes doubtful. The Company's receivables primarily relate to amounts reimbursed under its collaboration agreements. The Company believes that credit risk associated with its collaborations partners is not significant. To date, the Company has not had any write-offs of bad debt, and the Company did not have an allowance for doubtful accounts as of December 31, 2023 and 2022. Concentrations of Credit Risk and Off-Balance Sheet Risk The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially subject the Company to a concentration of credit risk are cash, cash equivalents, marketable securities and receivables owed to the Company from collaboration partners. The Company’s cash, cash equivalents and marketable securities are held in accounts at a financial institution that may exceed federally insured limits. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. Property and Equipment Property and equipment consists of computers, laboratory equipment, furniture and office equipment, and leasehold improvements and is stated at cost, less accumulated depreciation. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred, while costs of major additions and betterments are capitalized. Depreciation is calculated over the estimated useful lives of the assets using the straight-line method. The Company capitalizes laboratory equipment used for research and development if it has alternative future use in research and development or otherwise. Asset: Estimated Useful life Labratory and manufacturing equipment 5 years Computer equipment and software 3 years Furniture and equipment 5 years Leasehold improvements Shorter of useful life or remaining lease term Impairment of Long-lived Assets The Company evaluates long-lived assets for potential impairment when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparing the book values of the assets to the expected future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book values of the assets exceed their fair value. The Company has not recognized any impairment losses from inception through December 31, 2023. Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company enters into collaboration agreements and certain other agreements that are within the scope of ASC 606, under which the Company licenses, may license or grants an option to license rights to certain of the Company’s product candidates and performs research and development services in connection with such arrangements. The terms of these arrangements typically include payment of one or more of the following: non-refundable, up-front fees; reimbursement of research and development costs; development, clinical, regulatory and commercial sales milestone payments; and royalties on net sales of licensed products. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The promised goods or services in the Company’s arrangements typically consist of a license, or option to license, rights to the Company’s intellectual property or research and development services. The Company provides options to additional items in such arrangements, which are accounted for as separate contracts when the customer elects to exercise such options, unless the option provides a material right to the customer. Performance obligations are promised goods or services in a contract to transfer a distinct good or service to the customer and are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised good or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on its own or whether the required expertise is readily available and whether the goods or services are integral or dependent to other goods or services in the contract. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include fixed consideration or variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected value method to estimate the amount expected to be received based on which method best predicts the amount expected to be received. The amount of variable consideration that is included in the transaction price may be constrained and is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company’s contracts often include development and regulatory milestone payments that are as assessed under the most likely amount method and constrained if it is probable that a significant revenue reversal would occur. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of such development and clinical milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration and other research and development revenues in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of the Company’s collaboration or strategic alliance arrangements. The Company allocates the transaction price based on the estimated standalone selling price. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs. Variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated are consistent with the amounts the Company would expect to receive for the satisfaction of each performance obligation. The consideration allocated to each performance obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company receives payments from its customers based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. Research and Development Expenses Research and development expenses are charged to expense as incurred in performing research and development activities. The costs include employee-related expenses including salaries, benefits, and stock-based compensation expense, costs of funding research performed by third parties that conduct research and development and preclinical and clinical activities on the Company’s behalf, the cost of purchasing lab supplies and non-capital equipment used in preclinical and clinical activities and in manufacturing preclinical and clinical study materials, consultant fees, facility costs including rent, depreciation, and maintenance expenses, and fees for acquiring and maintaining licenses under third party licensing agreements which are typically expensed when incurred if the technology licensed has no alternate future uses, including any sublicensing or success payments made to the Company’s licensors. In accruing service fees, the Company estimates the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the Company’s estimate, the accrual or prepaid is adjusted accordingly. The Company defers and capitalizes non-refundable advance payments made by the Company for research and development activities until the related goods are received or the related services are performed. In circumstances where amounts have been paid in excess of costs incurred, the Company records a prepaid expense. In-process Research and Development Assets In-process research and development assets that are acquired in a transaction that does not qualify as a business combination under GAAP and that do not have an alternative future use are expensed in the period in which the assets are acquired. Patent Costs The Company expenses patent and patent application costs and related legal costs for the prosecution and maintenance of such patents and patent applications, including patents and patent applications the Company in-licenses, as incurred, and classifies such costs as general and administrative expenses in the accompanying consolidated statements of operations. Leases The Company accounts for leases in accordance with ASC 842. At the inception of an arrangement the Company determines whether the arrangement contains a lease. If a lease is identified in an arrangement, the Company recognizes a right-of-use asset and liability on its balance sheet and determines whether the lease should be classified as a finance or operating lease. The Company does not recognize assets or liabilities for leases with lease terms of less than 12 months. Lease payments for short-term leases are recorded to operating expense on a straight-line basis over the lease term and variable lease payments are recorded in the period in which the obligation for those payments is incurred. A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: (i) there is a transfer of ownership of the leased asset to the Company by the end of the lease term, (ii) the Company holds an option to purchase the leased asset that it is reasonably certain to exercise, (iii) the lease term is for a major part of the remaining economic life of the leased asset, (iv) the present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset, and (v) the nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are recorded as operating leases. Finance and operating lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term using the discount rate implicit in the lease. If the rate is not readily determinable, the Company utilizes its incremental borrowing rate at the lease commencement date. Operating lease assets are further adjusted for prepaid or accrued lease payments. Operating lease payments are expensed using the straight-line method as an operating expense over the lease term. Finance lease assets are amortized to depreciation expense using the straight-line method over the shorter of the useful life of the related asset or the lease term. Finance lease payments are bifurcated into (i) a portion that is recorded as imputed interest expense and (ii) a portion that reduces the finance liability associated with the lease. The Company does not separate lease and non-lease components when determining which lease payments to include in the calculation of its lease assets and liabilities. Variable lease payments are expensed as incurred. If a lease includes an option to extend or terminate the lease, the Company reflects the option in the lease term if it is reasonably certain it will exercise the option. Stock-based Compensation Expense The Company accounts for all stock-based awards granted to employees and non-employees as stock-based compensation expense at fair value in accordance with FASB ASC Topic 718 Compensation—Stock Compensation (“ASC 718”). The Company estimates the grant date fair value of restricted stock based on the market value of the Company’s common stock on the date of the grant. The Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The Black-Scholes option pricing model requires the input of certain assumptions, including (1) the expected stock price volatility, (2) the calculation of expected term of the award, (3) the risk-free interest rate, and (4) the expected dividend yield. The Company used its own historical volatility data for its estimates of expected volatility. The Company calculates historical volatility based on a period of time commensurate with the expected term. The Company uses the simplified method as prescribed by the Securities and Exchange Commission’s Staff Accounting Bulletin No. 107, Share-Based Payment, to calculate the expected term for options granted to employees as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. For options granted to non-employees, the Company utilizes the contractual term of the arrangement as the basis for the expected term. The Company determines the risk-free interest rate based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company uses an assumed dividend yield of zero as the Company has never paid dividends and does not have current plans to pay any dividends on its common stock. Restricted stock awards (“RSAs”) are subject to repurchase rights. Accordingly, the Company has recorded the proceeds from the issuance of RSAs as a liability in the consolidated balance sheets. The restricted stock liability is reclassified into stockholders’ equity as the restricted stock vests. Service-Based Awards For stock-based awards issued to employees, non-employee service providers and members of the Company’s board of directors (the “Board”), the Company recognizes the grant date fair value of the service-based options, RSAs or restricted stock unit awards (“RSUs”) on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. If an employee or non-employee service requirement is concluded to be non-substantive, the stock-based compensation expense would be expensed immediately. Market-Based Awards For market-based awards, the Company recognizes the grant date fair value of the market-based options over the earlier of the derived service period, pursuant to a Monte-Carlo simulation model, or when the market-based vesting conditions are met. The Company estimates an award's derived service period based on the best estimate of the period over which an award's vesting condition(s) will be achieved. If the market-based vesting conditions are met ahead of the derived service period, the expense will be accelerated. If the market-based vesting conditions are not met and the market-based award is cancelled, the expense will not be reversed unless the market-based award is forfeited. Performance-Based Awards For performance-based awards, the Company recognizes the grant date fair value of the performance-based options or RSUs over the requisite service period using the accelerated attribution method to the extent achievement of the performance condition is probable. Certain awards are subject to both performance and continued service conditions. The Company classifies stock-based compensation expense in its consolidated statement of operations and comprehensive loss in the same manner in which the award recipient’s salary or service payments are classified. Forfeitures are recorded as they occur. If factors change or different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. Success Payments, Research Funding Payments and Notes Payables Certain arrangements require the Company to make payments, if and when, the Company’s market capitalization reaches specified thresholds for a specific period of time or upon a sale of the Company for consideration in excess of those thresholds or above a specific amount. The payments are accounted for under the provisions of ASC 718, whereby the Company recognizes the expense and liability when it becomes probable that the amounts will become due. The Company records this expense as a research and development expense in its consolidated statements of operations. The arrangements and payments are described more fully in Note 8. The payments are payable in either cash, common stock or promissory notes payable, depending upon the licensor and the Company’s election. If the Company elects to issue a promissory note relating to contractual obligations, the promissory note bears interest at 4.8% per annum. Outstanding principal and accrued interest on the promissory notes are typically payable on the earlier of five months or a specified period of time following a Company sale or change of control event, subject to certain exceptions. Income taxes Income taxes are recorded in accordance with ASC Topic 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the weight of available evidence, it is more likely than not that the deferred tax assets will be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company assesses the impact of various tax reform proposals and modifications to existing tax treaties in all jurisdictions where they have operations to determine the potential effect on the Company’s business and any assumptions they have made about their future taxable income. The Company cannot predict whether any specific proposals will be enacted, the terms of any such proposals or what effect, if any, such proposals would have on the Company if they were to be enacted. Beginning in 2022, the Tax Cut and Jobs Act of 2017 eliminates the currently available option to deduct research and development expenditures and requires taxpayers to amortize them over five years. The U.S. Congress is considering legislation that would defer the amortization requirement to future periods, however, the Company has no assurance that the provision will be repealed or otherwise modified. Comprehensive Loss Comprehensive loss currently consists of net loss and changes in unrealized gains and losses on marketable securities. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company and the Company’s chief operating decision maker, the Company’s Chief Executive Officer, view the Company’s operations and manage the Company’s business as a single operating segment, which is the business of developing and commercializing genome editing technology. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the United States and in foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statement disclosures. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities Cash equivalents and marketable securities consisted of the following at December 31, 2023 (in thousands): December 31, 2023 Amortized Allowance Gross Gross Fair Cash equivalents and marketable securities: Money market funds $ 123,652 $ — $ — $ — $ 123,652 U.S. Treasuries 168,858 — 611 169,469 Government agency securities 103,507 — — (327) 103,180 Corporate notes/bonds 30,920 — — (86) 30,834 Total $ 426,937 $ — $ 611 $ (413) $ 427,135 Cash equivalents and marketable securities consisted of the following at December 31, 2022 (in thousands): December 31, 2022 Amortized Allowance Gross Gross Fair Cash equivalents and marketable securities: Money market funds $ 141,522 $ — $ — $ — $ 141,522 U.S. Treasuries 50,019 — 3 (229) 49,793 Government agency securities 161,902 — 11 (2,556) 159,357 Commercial paper 29,954 — 3 (141) 29,816 Corporate notes/bonds 57,575 — 2 (694) 56,883 Total $ 440,972 $ — $ 19 $ (3,620) $ 437,371 The Company's available-for-sale securities are subject to a periodic impairment review. A debt security is considered to be impaired when its fair value is less than its carrying cost, in which case the Company would further review the investment to determine whether it is other-than-temporarily impaired. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, intent to sell, and whether it is more likely than not we will be required to sell the investment before the recovery of its cost basis. If an investment is other-than-temporarily impaired or subject to credit losses, the Company writes it down through the statement of operations and comprehensive loss to its fair value and establishes that value as a new cost basis for the investment. We determined that none of our available-for-sale securities were other-than-temporarily impaired as of December 31, 2023 and 2022, and we did not hold any marketable securities that had been in an unrealized loss position for more than twelve months. As such, the Company believes that it is more likely than not that the investments will be held until maturity or a forecasted recovery of fair value. one |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets measured at fair value on a recurring basis as of December 31, 2023 were as follows (in thousands): Financial Assets December 31, Quoted Prices Significant Significant Cash equivalents: Money market funds $ 123,652 $ 123,652 $ — $ — Marketable securities: Government agency securities 103,180 — 103,180 — Corporate bonds 30,834 — 30,834 — U.S. Treasuries 169,469 169,469 — — Restricted cash and other non-current assets: Money market funds 3,877 3,877 — — Total financial assets $ 431,012 $ 296,998 $ 134,014 $ — Assets measured at fair value on a recurring basis as of December 31, 2022 were as follows (in thousands): Financial Assets December 31, Quoted Prices Significant Significant Cash equivalents: Money market funds $ 141,522 $ 141,522 $ — $ — Marketable securities: Government agency securities 159,357 — 159,357 — Corporate bonds 56,883 — 56,883 — U.S. Treasuries 49,793 49,793 — — Commercial paper 29,816 — 29,816 — Restricted cash and other non-current assets: Money market funds 3,877 3,877 — — Total financial assets $ 441,248 $ 195,192 $ 246,056 $ — |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): As of December 31, December 31, Laboratory and manufacturing equipment $ 25,043 $ 24,407 Leasehold improvements 9,648 9,761 Construction-in-progress 2,060 1,573 Computer equipment 1,062 875 Furniture and office equipment 264 264 Software 215 215 Total property and equipment 38,292 37,095 Less: accumulated depreciation (26,260) (21,526) Property and equipment, net $ 12,032 $ 15,569 The Company recorded $6.1 million, $6.3 million, and $5.1 million in depreciation expense during the years ended December 31, 2023, 2022 and 2021, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following (in thousands): As of 2023 2022 External research and development expenses $ 16,204 $ 16,452 Employee related expenses 11,280 10,140 Sublicense and license fees 5,063 559 Intellectual property and patent related fees 983 1,809 Professional service expenses 750 1,260 Other expenses 283 1,076 Total accrued expenses $ 34,563 $ 31,296 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has multiple lease agreements for office, laboratory and manufacturing space with varying contractual terms set to expire between 2024 and 2028. Typically, base rent payments commence at the beginning of each lease term and continue through the term of the respective lease. The Company’s lease agreements have escalating rent clauses, which require higher rent payments in future years. The Company has two significant leases for office and laboratory space located in Cambridge, Massachusetts that are summarized below. The Company’s leases are included on its consolidated balance sheet as follows (in thousands): As of December 31, December 31, Right-of-use assets $ 33,680 $ 43,648 Operating lease liabilities, current $ (12,164) $ (11,082) Operating lease liabilities, noncurrent $ (24,372) $ (32,864) During the years ended December 31, 2023, 2022 and 2021, the Company recorded $15.2 million, $13.6 million and $10.9 million related to operating lease costs and $3.3 million, $3.0 million and $2.1 million related to variable costs associated with the Company’s operating leases. Maturities of the Company’s lease liabilities as of December 31, 2023 were as follows (in thousands): Maturity of lease liabilities: Year Ended 2024 $ 14,847 2025 $ 8,391 2026 $ 7,134 2027 $ 7,076 2028 $ 6,000 Thereafter $ — Total minimum lease payments $ 43,448 Less: imputed interest $ (6,912) Total operating lease liabilities at December 31, 2023 $ 36,536 The weighted-average remaining lease term is 3.8 years and the weighted-average discount rate is 8.9%. In the second quarter of 2023, the Company entered into a license and service agreement pursuant to which it will lease manufacturing space for our continued research and development activities. As of December 31, 2023, the lease has not commenced for accounting purposes and it is not expected to commence until the first half of 2024. The license and service agreement provides for total remaining lease payments of up to $85.4 million over a 10-year lease term. The Company may terminate the license and service agreement in the Company's discretion upon twelve months' prior written notice. Hurley Street In 2016, the Company entered into a lease agreement for 59,783 square feet of office and laboratory space located on Hurley Street in Cambridge, Massachusetts. The term of the lease began on October 1, 2016 and continues until October 2028. In November 2022, the Company entered into an amendment to the lease agreement to extend the term of its existing facility space to October 31, 2028 under the same terms as its existing agreement except for the terms of payment. As a result of this amendment, the Company recognized an additional right-of-use asset and corresponding lease liability of $24.6 million. In connection with the lease and as a security deposit, the Company holds, with the landlord, a letter of credit in the amount of approximately $1.6 million. Subject to the terms of the lease and certain reduction requirements specified therein, the $1.6 million security deposit may decrease over time. The letter of credit, which is collateralized by the Company, is recorded in restricted cash and other non-current assets in the accompanying consolidated balance sheets as of December 31, 2023 and December 31, 2022. One Main Street In 2019, the Company entered into a lease agreement for 31,571 square feet of office space located on One Main Street in Cambridge, Massachusetts. The term of the lease began on January 15, 2020 and continues until January 2025. In connection with the lease and as a security deposit, the Company issued a letter of credit in the amount of approximately $0.8 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is a party to a number of license agreements under which the Company licenses patents, patent applications and other intellectual property from third parties. As such, the Company is obligated to reimburse licensors for various costs including upfront licenses fees, annual license fees, certain licensor expense reimbursements, success payments, research funding payments, and milestones triggerable upon certain development, regulatory, and commercial events as well as royalties on future products. These contracts are generally cancellable, with notice, at the Company’s option and do not have significant cancellation penalties. Broad Sponsored Research Agreement In 2018, the Company entered into a sponsored research agreement (the “Sponsored Research Agreement”) with The Broad Institute, Inc. (“Broad”). The Sponsored Research Agreement provides for Broad to conduct research useful or relevant to genome editing in the field of genomic medicines for the prevention or treatment of human disease with funding from the Company. Under the Sponsored Research Agreement, Broad granted to the Company an exclusive right of first negotiation for licenses from Broad with respect to patentable inventions developed by Broad in the course of the sponsored research, subject to certain limitations and retained rights (“Sponsored Invention Licenses”). Under the Sponsored Research Agreement, the Company is obligated to make payments (“Market Cap Research Funding”) in the event the Company’s market capitalization reaches certain amounts for a specified period of time. Unless the Company has undergone a change in control, Market Cap Research Funding is payable by the Company in cash, in shares of common stock, or in the form of promissory notes, which may be settled in shares of common stock at the election of the Company. In aggregate, the Company has triggered $25.0 million in Market Cap Research Funding and has primarily settled these amounts through the issuance of shares of its common stock. The remaining $100.0 million in Market Cap Research Funding may be triggered when the Company’s market capitalization reaches various low-ten to eleven dollar amounts or in the event of a Company sale. The Company is not required to make additional Market Cap Research Funding payments if the Company, whether directly or through its affiliates or sublicensees, is not researching, developing, or commercializing products based on or incorporating inventions exclusively licensed to the Company from Broad subject to certain exclusions. The Sponsored Research Agreement is terminable by each party upon the occurrence of specified bankruptcy events of the other party and otherwise will continue in effect until the remaining Market Cap Research Funding payments are received by Broad and such time as the Company has no further rights of first negotiation for Sponsored Invention Licenses, unless otherwise mutually agreed between the parties. Broad & Harvard License Agreements The Company has entered into agreements with Broad and the President and Fellows of Harvard College (“Harvard”) to license certain patent rights owned or co-owned by the institutions. The foundational patent rights that were in-licensed by the Company include Cas9-I (“Cas9-I License Agreement”), Cas12a (formerly known as Cpf1) (“Cpf1 License Agreement”), and Cas9-II (“Cas9-II License Agreement”) (collectively referred to herein as the “License Agreements”). The Company received exclusive, worldwide, royalty-bearing, sublicensable licenses to certain patent rights to develop and commercialize licensed product and a non-exclusive, worldwide, royalty-bearing sublicensable license under the same patent rights for all other purposes, subject to certain limitations and retained rights. The Company is obligated to use commercially reasonable efforts to research, develop, and commercialize licensed products. The Company is also required to achieve certain development milestones within specified time periods for products covered by the License Agreements, with Broad or Harvard, as applicable, having the right to terminate the License Agreements, on a license agreement-by-license agreement basis, if the Company fails to achieve these milestones within the required time periods. Broad or Harvard may grant licenses under specified circumstances to third parties that wish to develop and commercialize products that target a particular gene that otherwise would fall within the scope of the exclusive licenses granted to the Company, provided that the Company is not, directly or through any of its affiliates, sublicensees, or collaborators, researching, developing, or commercializing a product directed toward the same gene target, or can demonstrate to Broad’s and/or Harvard’s, as applicable, reasonable satisfaction that the Company is interested in researching, developing, and commercializing a product directed toward the same gene target, that the Company has a commercially reasonable research, development, and commercialization plan to do so, and the Company commences and continues reasonable commercial efforts under such plan . The Company has the right to terminate each of the License Agreements at will with four months written notice to Broad. Unless terminated earlier, the term of each of the License Agreements will expire on a country-by-country basis, upon the expiration of the last to expire valid claim of the licensed patent rights in such country. Milestones In aggregate, the Company may pay up to $14.8 million, $20.0 million, and $3.7 million in clinical and regulatory milestones under the Cas9-I License Agreement, Cpf1 License Agreement, and Cas9-II License Agreement, respectively. In addition, the Company owes aggregate sales milestones totaling $54.0 million, $54.0 million, and $13.5 million under the Cas9-I License Agreement, Cpf1 License Agreement, and Cas9-II License Agreement, respectively. If the licensed product or service prevents or treats a human disease that afflicts fewer than a specified number of patients in the aggregate in the United States (“U.S.”) or a specified number of patients per year in the U.S., the clinical and regulatory milestones reduce to $4.1 million, $5.5 million, and $1.1 million under the Cas9-I License Agreement, Cpf1 License Agreement, and Cas9-II License Agreement, respectively. In addition, the aggregated sales milestones reduce to $36.0 million, $36.0 million, and $9.0 million under the Cas9-I License Agreement, Cpf1 License Agreement, and Cas9-II License Agreement, respectively. Certain clinical and regulatory milestones are subject to a multiplier payout equivalent to a double-digit percentage in the event of a change of control. Royalties The Company is required to pay on a product-by-product and country-by-country basis, a mid single-digit percentage royalty on net sales of licensed products made by the Company, its affiliates, or its sublicensees. The royalty percentage depends on the product and service, and whether such licensed product or licensed service is covered by a valid claim. If the Company is legally required to pay royalties to a third party on net sales of the Company’s products because such third party holds patent rights that cover such licensed product, then the Company can credit up to a specified percentage of the amount paid to such third party against the royalties due to the institutions. Such credit may not exceed 50% of the applicable royalties paid by the Company to the applicable third party. The Company’s obligation to pay royalties will expire on a product-by-product and country-by-country basis upon the later of the expiration of the last to expire valid claim of the patent rights that covers each licensed product or service in each country or the tenth anniversary of the date of the first commercial sale of the licensed product or licensed service. Licensor Expense Reimbursements The Company is obligated to reimburse to Broad and Harvard for expenses incurred by each of them associated with the prosecution and maintenance of the patent rights that the Company licenses from them pursuant to the license agreement by and among the Company, Broad and Harvard, including the interference and opposition proceedings involving patents licensed to the Company under the license agreement, and other license agreements between the Company and Broad. As such, the Company anticipates that it has a substantial commitment in connection with these proceedings until such time as these proceedings have been resolved, but the amount of such commitment is not determinable. The Company incurred an aggregate of $7.5 million, $8.8 million, and $10.6 million in expense during the years ended December 31, 2023, 2022 and 2021, respectively, for such reimbursement. Success Payments Under the Cpf1 License Agreement and Cas9-II License Agreement, the Company is obligated to make payments (“Success Payments”) in the event the Company’s market capitalization reaches certain thresholds for a specified period of time, or in the event of a change in control of the Company, if the consideration is in excess of those thresholds. Unless the Company has undergone a change in control, Success Payments are payable by the Company in cash or in the form of promissory notes, which may be settled in shares of common stock at the election of the Company. In the event of a change in control of the Company, the Success Payments are required to be paid in cash. The Success Payments under the Cpf1 License Agreement are triggered when the Company’s market capitalization reaches certain amounts ranging from $750.0 million to $10.0 billion for a specified period of time. The Success Payments under the Cas9-II License Agreement are triggered when the Company’s market capitalization reaches certain amounts ranging from $1.0 billion to $9.0 billion for a specified period of time. In aggregate, the Company has triggered $25.0 million and $7.5 million of Success Payments under the Cpf1 License Agreement and Cas9-II License Agreement, respectively. The Company has primarily settled these amounts through the issuance of shares of its common stock. The remaining $100.0 million and $22.5 million in Success Payments under the Cpf1 License Agreement and Cas9-II License Agreement, respectively are only payable if the market capitalization threshold are met and the Company or any affiliate or sublicensee has at least one product candidate covered by a claim of a patent right licensed to the Company that is or was subject of a clinical trial. Other Payments The Company pays nominal annual license fees to the institutions. If the Company sublicenses any of the patent rights to a third party, the institutions have the right to receive sublicense income, which may be offset by the licensor expense reimbursement payments that the Company has made to the institution subject to certain limitations. Litigation The Company is not a party to any litigation and did not have contingency reserves established for any litigation liabilities as of December 31, 2023 or 2022. |
Collaboration Agreements
Collaboration Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Collaboration Agreements | |
Collaboration Agreements | Collaboration Agreements The Company has entered into multiple collaborations, out-licenses and strategic alliances with third parties that typically involve payments to or from the Company, including up-front payments, payments for research and development services, option payments, milestone payments and royalty payments to or from the Company. Collaboration Revenue As of December 31, 2023, the Company’s contract liabilities were primarily related to the Company’s collaboration with BMS and the Company's license agreement with Vertex. The following table presents changes in the Company’s accounts receivable and contract liabilities for the year ended December 31, 2023 (in thousands): For the year ended December 31, 2023 Balance at December 31, 2022 Additions Deductions Balance at December 31, 2023 Accounts receivable $ 5,145 $ 14,864 $ (9,822) $ 10,187 Contract liabilities: Deferred revenue $ 68,888 $ — $ — $ 68,888 BMS Collaboration Agreement In 2019, the Company entered into an amended and restated collaboration agreement (“BMS Collaboration Agreement”) and license agreement (“BMS License Agreement”) with BMS to focus on the research, development, and commercialization of autologous and allogenic alpha-beta T cell medicines for the treatment of all diseases, subject to certain exceptions. The Company and BMS started their collaboration in 2015 and have amended the agreement twice. The Company received a $70.0 million up-front, non-refundable, non-creditable cash payment (“Amendment Fee”) in connection with the execution of the 2019 amendment. The Company may develop genome editing tools, specific to a gene target and enzyme combination (or a “Program”) that, following the exercise of its option and the Company’s grant of a license, BMS may use in its development of gene edited alpha-beta T-cell therapies and certain other T-cell derived from pluripotent stem cells or any other precursor cell for the treatment of all diseases, subject to certain exceptions (the “BMS Field”). To assess the Programs prior to opt-in, the Company granted BMS a non-exclusive perpetual research license in the BMS Field. If BMS exercises their option to the Program, they receive an exclusive, worldwide, development and commercialization license in the BMS Field for a nominal option exercise fee. The BMS License Agreement provided that the Company would manufacture clinical grade materials through a Phase 1 clinical trial if requested by BMS at an incremental cost to be negotiated by the parties. However, BMS has sole responsibility, at its own cost, for the worldwide research, development, manufacturing, and commercialization of its products. They must use commercially reasonable efforts and meet certain regulatory and commercial diligence requirements. The first development and commercialization license was delivered to BMS at the onset of the amended arrangement for which the Company received $0.5 million in consideration for the license (the “First Development and Commercialization License). On a product-by-product basis, the Company is eligible to receive up to $27.5 million in development milestones and $107.5 million in regulatory milestones. The Company is also eligible to receive up to an aggregate of $60.0 million for the first two licensed products to reach certain sales milestones. The Company is entitled to a high-single digit to low double-digit percentage of royalties on net sales of licensed products, subject to reductions in certain circumstances, through the later of the expiration of the patent(s) related to the licensed products or six years post-first commercial sale of such licensed products. The amended term of the BMS Collaboration Agreement is five years, which is subject to two one-year extension periods. During the term, including the extension periods, the Company may not alone, or with a third party, research, develop, manufacture, or commercialize a product in the BMS Field. BMS has the right to terminate the BMS Collaboration Agreement at any time upon no less than six months prior written notice. Per the termination provisions of the BMS License Agreement, BMS has the right to terminate the License Agreement either on a licensed product-by-product basis or in its entirety for any reason at any time upon ninety days prior written notice. If BMS terminates the license agreement without cause, the exclusive licenses granted to BMS automatically revert back to the Company. Accounting Assessment The Company concluded that the BMS Collaboration Agreement and the BMS License Agreement qualify as a contract with a customer under ASC 606 as one combined arrangement. The contract modification was accounted for on a prospective basis as if it were a termination of the existing contract and the creation of a new contract since the promised goods and services were distinct from the goods and services that were transferred on or before the effective date of the amendment. The Company identified the following performance obligations: (i) First Development and Commercialization License and (ii) seventeen material rights for additional development and commercialization licenses for other Programs. The Company also evaluated the (i) the research license, (ii) contract term extensions, (iii) clinical supply arrangement, (iv) participation by employees on the oversight committee, alliance and technology transfer teams and (v) certain intellectual property rights and concluded that none of these met the definition of a performance obligation as a result of the promise being quantitively and qualitatively immaterial in the context of the arrangement or the promise did not convey a material right to BMS. The Company also concluded that there was not an implicit promise to perform research and development services. As of December 31, 2023 the total transaction price was approximately $118.0 million comprised of the following: (i) $70.0 million Amendment Fee, (ii) $32.0 million in remaining deferred revenue balance that was not recognized pursuant the 2018 amendment agreement (iii) $6.0 million related to option exercise fees for delivered licenses and (iv) $10.0 million related to development milestone payments that were received by the Company. The outstanding milestone payments and extension term fees were fully constrained as of December 31, 2023, as a result of the uncertainty of whether any of the milestones will be achieved or the term would be extended. The assessment of the constraint utilizing the most likely amount method considers the stage of development and the risks associated with the remaining development required to achieve the milestones, as well as whether the achievement of the milestone is outside the control of the Company or BMS. The Company has determined that any commercial milestones and sales-based royalties will be recognized when the related sales occur. The Company reevaluates the transaction price at the end of each reporting period and as uncertain events are resolved or other changes in circumstances occur. The Company concluded that rights and attributes of each of the development and commercialization licenses are identical for both the license granted at inception and the licenses that may be issued in the future upon exercise of the associated option. The Company has considered the early stage of the science and the uncertainty of success and concluded that the probability of scientific success and opt-in is equal amongst all Programs. In addition, each Program is multi-functional, and a combination of Programs can be utilized in the development of a product candidate. As such, the Company concluded that the standalone selling price of each material right is the same. The Company will recognize the transaction price allocated to each material right when the material right is exercised, lapsed or expired. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $4.5 million, $18.8 million and $24.7 million of revenue related to BMS. As of December 31, 2023, the Company recorded $56.7 million of deferred revenue, of which $56.7 million is classified as long-term on the Company's consolidated balance sheets. There were no material sublicense fees paid to licensors in connection with the consideration received pursuant to the BMS Collaboration Agreement for the years ended December 31, 2023 and 2022. Beam Therapeutics License Agreement In 2018, the Company entered into a license agreement with Beam Therapeutics Inc. (“Beam,” and such agreement, the “Beam License Agreement”). Pursuant to the Beam License Agreement, the Company granted to Beam a worldwide, exclusive (subject to certain exceptions), sublicensable (subject to certain conditions), development and commercialization license under certain intellectual property controlled by the Company for the use of base editing therapies for the treatment of any field of human diseases and conditions, such to certain exceptions. Additionally, the Company granted Beam a non-exclusive research license. Lastly, the Company provided to Beam with an exclusive option to obtain three development and commercialization licenses to additional groups of intellectual property owned or controlled by the Company, on a group-by-group basis, during the specified option period, subject to certain exceptions. The Company received preferred stock valued at $3.6 million and received a nominal upfront cash payment. The Company subsequently sold its equity investment in Beam following Beam’s initial public offering in 2022. The Company is also eligible to receive additional consideration if Beam exercises its option to obtain additional licenses for a fee ranging from a mid-teen million-dollar amount to a low to mid-eight-digit dollar amount per license, depending on the timing of the option exercise. To the extent that any products are commercialized, the Company would be entitled to receive tiered low single-digit royalty payments, plus any royalties that would be due from the Company to any applicable licensors related to the sale of such licensed products. Unless earlier terminated by either party pursuant to the terms of the agreement, the Beam License Agreement will continue in full force and effect and will expire on a licensed product-by-licensed product and country-by-country basis upon the expiration of the royalty term with respect to such licensed product in such country. Beam has the right, at its sole discretion, at any time to terminate the Beam License Agreement in its entirety or on a group-by-group of intellectual property basis, upon ninety days written notice to the Company. Upon termination, all rights and licenses granted by the Company will immediately terminate. Accounting Assessment The Company identified the following performance obligations (i) the research license and (ii) the initial development and commercialization license. In addition, the Company concluded that the three options for the additional development and commercialization licenses are not discounted and therefore they do not represent material rights. The total transaction price at the inception of the arrangement was determined to be approximately $3.8 million, consisting of the upfront cash payment and the non-cash value of the preferred shares received by the Company. The consideration associated with the exercise of the option(s) will be accounted for if and when Beam elects to exercise their options. The other forms of consideration, including nominal cost reimbursement for past patent and license fees and sublicense income reimbursement are based on the most-likely amount and were excluded from the initial transaction price as the most likely amount was estimated to be zero or the amount was otherwise fully constrained due to the significant uncertainties surrounding each payment. The commercial-based milestone reimbursement and the sales-based royalty payments will be recognized when the related sales occur as they were determined to relate predominantly to the licenses granted and therefore have also been excluded from the transaction price. Since both of the performance obligations were delivered at the inception of the arrangement and the licenses were made available for Beam’s use and benefit, the Company recognized the total transaction price at the inception of the agreement. During the years ended December 31, 2023, 2022 and 2021, the Company recognized revenue under the Beam License Agreement of approximately $0.2 million, $0.3 million and $0.3 million, respectively. Vertex Pharmaceuticals License Agreement On December 12, 2023, the Company and Vertex Pharmaceuticals entered into a license agreement. Under terms of the agreement, Vertex obtained a non-exclusive license for Editas Medicine’s Cas9 gene editing technology for ex vivo gene editing medicines targeting the BC11A gene in the fields of sickle cell disease and beta thalassemia, including exagamglogene autotemcel (exa-cel). In connection with the License Agreement, the Company received an upfront payment of $50.0 million. The Company is also eligible to receive annual license fees ranging from $10.0 million to $40.0 million annually, inclusive of certain sales-based annual license fee increases, through 2034 and other contingent fees of $50.0 million. Accounting Assessment The Company assessed this arrangement in accordance with Topic 606 and concluded that the contract counterparty, Vertex Pharmaceuticals, is a customer. The Company identified a single performance obligation, which is the non-exclusive license to certain Cas9-I patents. The total transaction price at the inception of the arrangement was determined to be $60.0 million, consisting of an upfront cash payment and the first annual license fee installment. The remaining annual license fees and contingent fees represent variable consideration that was evaluated under the most likely amount method, and excluded from the initial transaction price because the amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the annual license fees and contingent fees are outside the control of the Company. They will be recognized when each payment is determined to be probable. The Company will re-evaluate the transaction price in each reporting period, as uncertain events are resolved, or as other changes in circumstances occur. Since the single performance obligation was delivered at the inception of the arrangement and the license was made available for Vertex’s use and benefit, the Company recognized the total transaction price at the inception of the agreement. During the year ended December 31, 2023, the Company recognized revenue under the Vertex License Agreement of $60.0 million. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Preferred Stock | Preferred Stock The Company’s amended and restated certificate of incorporation authorized 5,000,000 shares of undesignated preferred stock that may be issued from time to time by the Company’s board of directors in one or more series. As of December 31, 2023, the Company had no shares of preferred stock issued or outstanding. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Common Stock | Common Stock The voting, dividend, and liquidation rights of the holders of the common stock are subject to and qualified by the rights, powers, and preferences of holders of the preferred stock that may be issued from time to time. The common stock had the following characteristics as of December 31, 2023: Voting The holders of shares of common stock are entitled to one vote for each share of common stock held at any meeting of stockholders and at the time of any written action in lieu of a meeting. Dividends The holders of shares of common stock are entitled to receive dividends, if and when declared by the Company’s board of directors. Cash dividends may not be declared or paid to holders of shares of common stock until all unpaid dividends on any outstanding redeemable convertible preferred stock have been paid in accordance with their terms. No dividends have been declared or paid by the Company since its inception. 2013 Stock Incentive Plan In September 2013, the board of directors adopted the 2013 Stock Incentive Plan, which was subsequently amended (as amended, the “2013 Plan”), which provides for the grant of incentive stock options and nonqualified stock options or other awards including restricted stock awards, unrestricted stock awards, and restricted stock units to the Company’s employees, officers, directors, advisors, and consultants for the purchase of up to 1,057,692 shares of the Company’s common stock, which has been amended several times, and as of July 2015, a total of 6,317,769 shares were reserved. The terms of stock awards agreements, including vesting requirements, are determined by the board of directors and are subject to the provisions of the 2013 Plan. The stock options granted to employees generally vest over a four-year period and expire ten years from the date of grant. Certain awards contain performance based vesting criteria. There has only been one such award to date. Certain options provide for accelerated vesting in the event of a change in control, as defined in the applicable options. Awards granted to non-employee consultants generally vest monthly over a period of one to four years. In connection with the Company’s initial public offering (“IPO”), the Company’s board of directors determined to grant no further awards under the 2013 Plan. 2015 Stock Incentive Plan The Company’s board of directors adopted and the Company’s stockholders approved the 2015 stock incentive plan (the “2015 Plan”). The 2015 Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock units, stock appreciation rights and other stock-based awards. The Company’s employees, officers, directors and consultants and advisors are eligible to receive awards under the 2015 Plan. The number of shares reserved for issuance under the 2015 Plan is subject to further increases for (a) any additional shares of the Company’s common stock subject to outstanding awards under the 2013 Plan that expire, terminate, or are otherwise surrendered, cancelled, forfeited, or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right and (b) annual increases, to be added as of the first day of each fiscal year, from January 1, 2017 until, and including, January 1, 2026, equal to the lowest of 2,923,076 shares of common stock, 4% of the number of shares of common stock outstanding on such first day of the fiscal year in question and an amount determined by the Company’s board of directors. In January 2024, the shares under the 2015 Plan increased by 3,270,691 shares pursuant to the annual increase described in the prior sentence. 2015 Employee Stock Purchase Plan The Company’s board of directors adopted and the Company’s stockholders approved the 2015 employee stock purchase plan (the “2015 ESPP”). The number of shares reserved for issuance under the 2015 ESPP is subject to annual increases, to be added as of the first day of each fiscal year, from January 1, 2017 until, and including, January 1, 2026, in an amount equal to the least of (a) 769,230 shares of common stock, (b) 1% of the total number of shares of common stock outstanding on the first day of the applicable year, and (c) an amount determined by the board of directors. The first offering under the 2015 ESPP opened on December 1, 2017. In January 2024, the board of directors determined that there should be no increase in shares available under the 2015 ESPP for 2024. Inducement Awards From time to time the Company’s board of directors approves inducement awards to certain employees outside of the existing equity compensation plans in connection with such employees commencing employment with the Company. Inducement awards are typically a service-based option and a restricted stock unit and are subject to the Company’s typical vesting terms and the employee’s continued service relationship with the Company through the applicable vesting dates. In May 2023, July 2023 and September 2023, the Company’s board of directors approved three inducement grants to the Company’s recently hired Chief Financial Officer, Chief Scientific and Chief Commercial and Strategy Officer, respectively. Shares Reserved for Future Issuance As of December 31, 2023 2022 Shares reserved for outstanding stock option awards under the 2013 Stock Incentive Plan, as amended 115,942 143,055 Shares reserved for outstanding stock option awards and restricted stock units under the 2015 Stock Incentive Plan 6,450,615 5,253,299 Shares reserved for outstanding inducement stock option award and restricted stock units 1,690,235 1,378,864 Remaining shares reserved, but unissued, for future awards under the 2015 Stock Incentive Plan 9,100,247 7,812,540 Remaining shares reserved, but unissued, for future awards under the 2015 Employee Stock Purchase Plan 3,185,493 3,300,853 20,542,532 17,888,611 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Total compensation cost recognized for all stock-based compensation awards in the consolidated statements of operations was as follows (in thousands): Year Ended 2023 2022 Research and development $ 9,842 $ 12,425 General and administrative 9,956 16,869 Total stock-based compensation expense $ 19,798 $ 29,294 Restricted Stock and Restricted Stock Unit Awards The following table summarizes restricted stock and restricted stock unit awards activity for the instruments discussed above as of December 31, 2023 and 2022 is as follows: Shares Weighted Unvested restricted stock and restricted stock unit awards as of December 31, 2022 1,499,070 $ 18.70 Issued 1,375,602 $ 8.70 Vested (297,934) $ 20.08 Forfeited (469,591) $ 18.77 Unvested restricted stock and restricted stock unit awards as of December 31, 2023 2,107,147 $ 11.96 The expense related to restricted stock and restricted stock unit awards granted for the years ended December 31, 2023, 2022 and 2021 was $5.1 million, $7.9 million, and $14.6 million, respectively. The restricted stock and restricted stock units granted in the year ended December 31, 2023 include 437,842 units granted to certain employees that contain performance-based vesting provisions. The expense related to the performance-based vesting of restricted stock units was $0.5 million and $4.4 million for the years ended December 31, 2023 and December 31, 2022, respectively. As of December 31, 2023, total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards was $13.8 million, which the Company expects to recognize over a remaining weighted-average period of 2.3 years. Stock Options The following is a summary of stock option activity for the year ended December 31, 2023: Shares Weighted Average Remaining Aggregate Intrinsic Outstanding at December 31, 2022 5,276,148 $ 23.99 8.00 $ 402 Granted 2,393,380 $ 8.70 Exercised (6,587) $ 6.14 Cancelled (1,513,296) $ 30.45 Outstanding at December 31, 2023 6,149,645 $ 16.47 6.89 $ 3,195 Exercisable at December 31, 2023 2,708,255 $ 22.27 5.39 $ 773 The total intrinsic value of options exercised for the years ended December 31, 2023, 2022 and 2021 was $0.03 million, $0.09 million, and $27.2 million, respectively. Using the Black-Scholes option pricing model, the weighted average fair value of options containing service-based vesting granted during the years ended December 31, 2023, 2022, and 2021 was $6.04, $15.87, and $17.54, respectively. The expense related to options containing service-based vesting was $13.9 million, $14.1 million, and $18.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. The fair value of each service-based vesting option issued was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended 2023 2022 2021 Expected volatility 75.2 % 64.2 % 61.2 % Expected option term (in years) 6.19 6.25 6.25 Risk free interest rate 4.2 % 1.7 % 1.5 % Expected dividend yield — — — As of December 31, 2023, total unrecognized compensation expense related to stock options was $25.8 million, which the Company expects to recognize over a remaining weighted-average period of 2.57 years. |
401(k) Savings Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Savings Plan | 401(k) Savings Plan The Company has a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “401(k) Plan”). The 401(k) Plan covers all employees who meet defined minimum age and service requirements, and allows participants to defer a portion of their annual compensation on a pretax basis. Effective in 2017, the Company will provide a 200% match of employee contributions up to a limit on the Company’s contributions of the lesser of $6,000 and 3% of the employee’s salary. The Company made $1.2 million, $1.4 million, and $1.2 million in contributions to the 401(k) Plan for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company had no income tax expense due to operating losses incurred for the years ended December 31, 2023 and 2022. A reconciliation of the income tax expense computed using the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended 2023 2022 Income tax computed at federal statutory tax rate 21.0 % 21.0 % State taxes, net of federal benefit 6.0 % 6.9 % General business credit carryovers 2.5 % (2.0) % 162m limitation — % — % Stock options (4.3) % (2.3) % Non-deductible expenses (0.2) % (0.1) % Tax rate changes (4.5) % (3.3) % Change in valuation allowance (21.8) % (20.0) % Other 1.3 % (0.2) % — % — % The principal components of the Company’s deferred tax assets and liabilities consist of the following at December 31, 2023 and 2022 (in thousands): Year Ended 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 153,365 $ 144,849 Tax credit carryforwards 25,646 20,077 Accrued expenses 3,975 2,869 Capitalized patent costs 56,955 58,387 Capitalized research 60,891 41,915 Lease liabilities 9,966 12,627 Deferred revenue 18,791 17,495 Depreciation and amortization 905 299 Other 7,323 10,119 Total deferred tax assets 337,817 308,637 Less valuation allowance (328,630) (296,095) Net deferred tax assets 9,187 12,542 Deferred tax liabilities (9,187) (12,542) Depreciation and amortization — — Right-of-use assets (9,187) (12,542) Net deferred taxes $ — $ — For taxable years beginning after December 31, 2021, the Tax Cuts and Jobs Act (the "Tax Act”) eliminated the option to deduct research and development expenditures in the current year and requires taxpayers to capitalize such expenses pursuant to Internal Revenue Code ( "IRC" ) Section 174. As a result of this provision of the Tax Act, deferred tax assets related to capitalized research expenses pursuant to IRC Section 174 increased to $60.9 million for the year ended December 31, 2023. The Company has incurred net operating losses (“NOL”) since inception. At December 31, 2023 and 2022, the Company had federal net operating loss carryforwards of $546.7 million and $517.5 million, respectively. Of the amount as of December 31, 2023, $472.0 million will carryforward indefinitely while $74.8 million will expire beginning in 2035 and will continue to expire through 2037. As of December 31, 2023, and 2022, the Company also had state net operating loss carryforwards of approximately $648.0 million and $609.5 million, respectively, which may be available to offset future income tax liabilities and will expire beginning in 2035 and will continue to expire through 2043. Under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), the NOL and tax credit carryforward are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. NOL and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Code, respectively, as well as other similar state provisions. The Company conducted an analysis under Section 382 to determine if historical changes in ownership through December 31, 2019 would limit or otherwise restrict its ability to utilize its NOL and research and development credit carryforwards. As a result of this analysis, the Company does not believe there are any significant limitations on its ability to utilize these carryforwards. However, future changes in ownership occurring after December 31, 2019 could affect the limitation in future years, and any limitation may result in expiration of a portion of the NOL or research and development credit carryforwards before utilization. Management has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which principally comprise of NOL carryforwards, research and development credit carryforwards and capitalized license and patent costs. The Company’s management has determined that it is more likely than not that the Company will not recognize the benefits of its federal and state deferred tax assets, and as a result, a valuation allowance of $328.6 million and $296.1 million has been established at December 31, 2023 and 2022, respectively. The increase in the valuation allowance of $32.5 million for the year ended December 31, 2023 was primarily due to current period pre-tax losses incurred and research tax credits generated. The Company applies ASC 740 related to accounting for uncertainty in income taxes. The Company’s reserves related to income taxes are based on a determination of whether, and how much of, a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits at the beginning and end of the years ended December 31, 2023 and 2022 (in thousands): Year Ended Balance as of December 31, 2022 $ 11,797 Gross increases for tax positions related to current year 1,384 Gross increases for tax positions related to prior year 478 Balance as of December 31, 2023 $ 13,659 At December 31, 2023 and 2022, the Company had unrecognized tax benefits of $13.7 million and $11.8 million, respectively. The Company will recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2023 and 2022, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts have been recognized in the Company’s statement of operations. The company does not anticipate a material change to unrecognized tax benefits in the next twelve months. The Company has not as of yet conducted a study of its research and development credit carry forwards. This study may result in an adjustment to the Company’s research and development credit carryforwards; however, until a study is completed and any adjustment is known, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s research and development credits, and if an adjustment is required, this adjustment would be offset by an adjustment to the valuation allowance. Thus, there would be no impact to the consolidated balance sheets or statements of operations if an adjustment were required. The Company files income tax returns in the U.S. federal tax jurisdiction, the Massachusetts state jurisdiction, the California state jurisdiction and the Colorado state jurisdiction. Since the Company is in a loss carryforward position, the Company is generally subject to examination by the U.S. federal, state and local income tax authorities for all tax years in which a loss carryforward is available. The Company did not have any international operations as of December 31, 2023. An examination by the Internal Revenue Service (“IRS”) for the period ended December 31, 2018 related to its R&D tax credits concluded in December 31, 2022 and resulted in a reduction to the Company’s deferred tax assets. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury stock and if converted methods. Contingently issuable shares are included in the calculation of basic loss per share as of the beginning of the period in which all the necessary conditions have been satisfied. Contingently issuable shares are included in diluted loss per share based on the number of shares, if any, that would be issuable under the terms of the arrangement if the end of the reporting period was the end of the contingency period, if the results are dilutive. For purposes of the diluted net loss per share calculation, stock options are considered to be common stock equivalents, but they were excluded from the Company’s calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive. Therefore, basic and diluted net loss per share applicable to common stockholders was the same for all periods presented. The following common stock equivalents were excluded from the calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive: As of December 31, 2023 2022 Unvested restricted stock and restricted stock unit awards 2,107,147 1,499,070 Outstanding stock options 6,149,645 5,276,148 Total 8,256,792 6,775,218 The table above reflects restricted stock issued upon exercise of unvested stock options as exercised on the dates that the shares are no longer subject to repurchase. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events None. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (153,219) | $ (220,432) | $ (192,502) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates its estimates, which include, but are not limited to, estimates related to revenue recognition, stock-based compensation expense, the accrual for research and development expenses, valuations of in-process research and development assets and deferred tax valuation allowances. The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances. ASC 820 identifies fair value as the exchange price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: • Level 1 – Quoted market prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates, and yield curves. • Level 3 – Unobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of 90 days or less at acquisition to be cash equivalents. Cash and cash equivalents include cash held in banks and amounts held in money market funds. |
Marketable Securities | Marketable Securities The Company classifies marketable securities with a remaining maturity when purchased of greater than three months and less than one year from the balance sheet date as current. Marketable securities are classified as long-term assets on the consolidated balance sheets if the contractual maturity exceeds one year and the Company does not intend to utilize the marketable securities to fund current operations. For the years ended December 31, 2023 and 2022, the Company’s marketable securities consisted of investments in available-for-sale debt securities and corporate equity securities. Available-for-sale debt securities are carried at fair value with the unrealized gains and losses included in accumulated other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the of the underlying security. Realized gains and losses are included in other income (expense). At each reporting date, the Company records an allowance for credit losses and reports it as credit loss expense which is included in “Other income (expense), net” in the Company’s consolidated statement of operations. The estimate for credit losses includes a measure of the expected risk of credit loss even if the risk is remote. When assessing financial assets for credit losses, the Company pools financial assets with similar risk characteristics and performs a collective evaluation. A credit loss on an available-for-sale debt security is limited to the difference in fair value and the amortized cost. A previously recognized credit loss may be increased or decreased in subsequent periods if the Company’s estimate of fair value changes. To determine whether to record a credit loss, the Company considers issuer or vendor specific credit ratings and historical losses as well as current economic conditions and its expectations for future economic conditions. To date, the Company has not had any credit losses, and the Company did not have an allowance for credit losses as of December 31, 2023 and 2022. The Company classified investments in equity securities that had a readily determinable fair value as marketable securities in the Company’s consolidated balance sheets. The fair value of these securities were based on a quoted price for an identical equity security. If the equity security had a restriction that was determined to be an attribute of the security that would transfer to a market participant, the fair value of the security was measured based on the quoted price for an otherwise identical unrestricted equity security, adjusted for the effect of the restriction. The adjustment reflects the discount that a market participant would demand for the risk relating to the inability to dispose of the security for a specified period of time. The Company recorded changes in the fair value of its equity securities in “Other income (expense), net” in the Company’s consolidated statement of operations. |
Accounts Receivable | Accounts Receivable The Company makes judgments as to its ability to collect outstanding receivables and provides an allowance for receivables when collection becomes doubtful. The Company's receivables primarily relate to amounts reimbursed under its collaboration agreements. The Company believes that credit risk associated with its collaborations partners is not significant. To date, the Company has not had any write-offs of bad debt, and the Company did not have an allowance for doubtful accounts as of December 31, 2023 and 2022. |
Concentrations of Credit Risk and Off-Balance Sheet Risk | Concentrations of Credit Risk and Off-Balance Sheet Risk The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially subject the Company to a concentration of credit risk are cash, cash equivalents, marketable securities and receivables owed to the Company from collaboration partners. The Company’s cash, cash equivalents and marketable securities are held in accounts at a financial institution that may exceed federally insured limits. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. |
Concentrations of Credit Risk and Off-Balance Sheet Risk | Concentrations of Credit Risk and Off-Balance Sheet Risk The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially subject the Company to a concentration of credit risk are cash, cash equivalents, marketable securities and receivables owed to the Company from collaboration partners. The Company’s cash, cash equivalents and marketable securities are held in accounts at a financial institution that may exceed federally insured limits. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. |
Property and Equipment | Property and Equipment Property and equipment consists of computers, laboratory equipment, furniture and office equipment, and leasehold improvements and is stated at cost, less accumulated depreciation. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed to operations as incurred, while costs of major additions and betterments are capitalized. Depreciation is calculated over the estimated useful lives of the assets using the straight-line method. The Company capitalizes laboratory equipment used for research and development if it has alternative future use in research and development or otherwise. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company evaluates long-lived assets for potential impairment when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparing the book values of the assets to the expected future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book values of the assets exceed their fair value. The Company has not recognized any impairment losses from inception through December 31, 2023. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company enters into collaboration agreements and certain other agreements that are within the scope of ASC 606, under which the Company licenses, may license or grants an option to license rights to certain of the Company’s product candidates and performs research and development services in connection with such arrangements. The terms of these arrangements typically include payment of one or more of the following: non-refundable, up-front fees; reimbursement of research and development costs; development, clinical, regulatory and commercial sales milestone payments; and royalties on net sales of licensed products. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The promised goods or services in the Company’s arrangements typically consist of a license, or option to license, rights to the Company’s intellectual property or research and development services. The Company provides options to additional items in such arrangements, which are accounted for as separate contracts when the customer elects to exercise such options, unless the option provides a material right to the customer. Performance obligations are promised goods or services in a contract to transfer a distinct good or service to the customer and are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised good or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on its own or whether the required expertise is readily available and whether the goods or services are integral or dependent to other goods or services in the contract. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include fixed consideration or variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates the amount of potential payment and the likelihood that the payments will be received. The Company utilizes either the most likely amount method or expected value method to estimate the amount expected to be received based on which method best predicts the amount expected to be received. The amount of variable consideration that is included in the transaction price may be constrained and is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company’s contracts often include development and regulatory milestone payments that are as assessed under the most likely amount method and constrained if it is probable that a significant revenue reversal would occur. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of such development and clinical milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration and other research and development revenues in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of the Company’s collaboration or strategic alliance arrangements. The Company allocates the transaction price based on the estimated standalone selling price. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs. Variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated are consistent with the amounts the Company would expect to receive for the satisfaction of each performance obligation. The consideration allocated to each performance obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company receives payments from its customers based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. |
Research and Development Expenses | Research and Development Expenses Research and development expenses are charged to expense as incurred in performing research and development activities. The costs include employee-related expenses including salaries, benefits, and stock-based compensation expense, costs of funding research performed by third parties that conduct research and development and preclinical and clinical activities on the Company’s behalf, the cost of purchasing lab supplies and non-capital equipment used in preclinical and clinical activities and in manufacturing preclinical and clinical study materials, consultant fees, facility costs including rent, depreciation, and maintenance expenses, and fees for acquiring and maintaining licenses under third party licensing agreements which are typically expensed when incurred if the technology licensed has no alternate future uses, including any sublicensing or success payments made to the Company’s licensors. In accruing service fees, the Company estimates the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the Company’s estimate, the accrual or prepaid is adjusted accordingly. The Company defers and capitalizes non-refundable advance payments made by the Company for research and development activities until the related goods are received or the related services are performed. In circumstances where amounts have been paid in excess of costs incurred, the Company records a prepaid expense. |
In-process Research and Development Assets | In-process Research and Development Assets In-process research and development assets that are acquired in a transaction that does not qualify as a business combination under GAAP and that do not have an alternative future use are expensed in the period in which the assets are acquired. |
Patent Costs | Patent Costs The Company expenses patent and patent application costs and related legal costs for the prosecution and maintenance of such patents and patent applications, including patents and patent applications the Company in-licenses, as incurred, and classifies such costs as general and administrative expenses in the accompanying consolidated statements of operations. |
Leases | Leases The Company accounts for leases in accordance with ASC 842. At the inception of an arrangement the Company determines whether the arrangement contains a lease. If a lease is identified in an arrangement, the Company recognizes a right-of-use asset and liability on its balance sheet and determines whether the lease should be classified as a finance or operating lease. The Company does not recognize assets or liabilities for leases with lease terms of less than 12 months. Lease payments for short-term leases are recorded to operating expense on a straight-line basis over the lease term and variable lease payments are recorded in the period in which the obligation for those payments is incurred. A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: (i) there is a transfer of ownership of the leased asset to the Company by the end of the lease term, (ii) the Company holds an option to purchase the leased asset that it is reasonably certain to exercise, (iii) the lease term is for a major part of the remaining economic life of the leased asset, (iv) the present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset, and (v) the nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are recorded as operating leases. Finance and operating lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term using the discount rate implicit in the lease. If the rate is not readily determinable, the Company utilizes its incremental borrowing rate at the lease commencement date. Operating lease assets are further adjusted for prepaid or accrued lease payments. Operating lease payments are expensed using the straight-line method as an operating expense over the lease term. Finance lease assets are amortized to depreciation expense using the straight-line method over the shorter of the useful life of the related asset or the lease term. Finance lease payments are bifurcated into (i) a portion that is recorded as imputed interest expense and (ii) a portion that reduces the finance liability associated with the lease. The Company does not separate lease and non-lease components when determining which lease payments to include in the calculation of its lease assets and liabilities. Variable lease payments are expensed as incurred. If a lease includes an option to extend or terminate the lease, the Company reflects the option in the lease term if it is reasonably certain it will exercise the option. |
Stock-based Compensation Expense | Stock-based Compensation Expense The Company accounts for all stock-based awards granted to employees and non-employees as stock-based compensation expense at fair value in accordance with FASB ASC Topic 718 Compensation—Stock Compensation (“ASC 718”). The Company estimates the grant date fair value of restricted stock based on the market value of the Company’s common stock on the date of the grant. The Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The Black-Scholes option pricing model requires the input of certain assumptions, including (1) the expected stock price volatility, (2) the calculation of expected term of the award, (3) the risk-free interest rate, and (4) the expected dividend yield. The Company used its own historical volatility data for its estimates of expected volatility. The Company calculates historical volatility based on a period of time commensurate with the expected term. The Company uses the simplified method as prescribed by the Securities and Exchange Commission’s Staff Accounting Bulletin No. 107, Share-Based Payment, to calculate the expected term for options granted to employees as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. For options granted to non-employees, the Company utilizes the contractual term of the arrangement as the basis for the expected term. The Company determines the risk-free interest rate based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company uses an assumed dividend yield of zero as the Company has never paid dividends and does not have current plans to pay any dividends on its common stock. Restricted stock awards (“RSAs”) are subject to repurchase rights. Accordingly, the Company has recorded the proceeds from the issuance of RSAs as a liability in the consolidated balance sheets. The restricted stock liability is reclassified into stockholders’ equity as the restricted stock vests. Service-Based Awards For stock-based awards issued to employees, non-employee service providers and members of the Company’s board of directors (the “Board”), the Company recognizes the grant date fair value of the service-based options, RSAs or restricted stock unit awards (“RSUs”) on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. If an employee or non-employee service requirement is concluded to be non-substantive, the stock-based compensation expense would be expensed immediately. Market-Based Awards For market-based awards, the Company recognizes the grant date fair value of the market-based options over the earlier of the derived service period, pursuant to a Monte-Carlo simulation model, or when the market-based vesting conditions are met. The Company estimates an award's derived service period based on the best estimate of the period over which an award's vesting condition(s) will be achieved. If the market-based vesting conditions are met ahead of the derived service period, the expense will be accelerated. If the market-based vesting conditions are not met and the market-based award is cancelled, the expense will not be reversed unless the market-based award is forfeited. Performance-Based Awards For performance-based awards, the Company recognizes the grant date fair value of the performance-based options or RSUs over the requisite service period using the accelerated attribution method to the extent achievement of the performance condition is probable. Certain awards are subject to both performance and continued service conditions. The Company classifies stock-based compensation expense in its consolidated statement of operations and comprehensive loss in the same manner in which the award recipient’s salary or service payments are classified. Forfeitures are recorded as they occur. If factors change or different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. |
Success Payments, Research Funding Payments and Notes Payables | Success Payments, Research Funding Payments and Notes Payables Certain arrangements require the Company to make payments, if and when, the Company’s market capitalization reaches specified thresholds for a specific period of time or upon a sale of the Company for consideration in excess of those thresholds or above a specific amount. The payments are accounted for under the provisions of ASC 718, whereby the Company recognizes the expense and liability when it becomes probable that the amounts will become due. The Company records this expense as a research and development expense in its consolidated statements of operations. The arrangements and payments are described more fully in Note 8. |
Income taxes | Income taxes Income taxes are recorded in accordance with ASC Topic 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and the tax reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the weight of available evidence, it is more likely than not that the deferred tax assets will be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company assesses the impact of various tax reform proposals and modifications to existing tax treaties in all jurisdictions where they have operations to determine the potential effect on the Company’s business and any assumptions they have made about their future taxable income. The Company cannot predict whether any specific proposals will be enacted, the terms of any such proposals or what effect, if any, such proposals would have on the Company if they were to be enacted. Beginning in 2022, the Tax Cut and Jobs Act of 2017 eliminates the currently available option to deduct research and development expenditures and requires taxpayers to amortize them over five years. The U.S. Congress is considering legislation that would defer the amortization requirement to future periods, however, the Company has no assurance that the provision will be repealed or otherwise modified. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss currently consists of net loss and changes in unrealized gains and losses on marketable securities. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company and the Company’s chief operating decision maker, the Company’s Chief Executive Officer, view the Company’s operations and manage the Company’s business as a single operating segment, which is the business of developing and commercializing genome editing technology. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This guidance is intended to enhance the transparency and decision-usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to disclosure regarding rate reconciliation and income taxes paid both in the United States and in foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis, with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table presents cash, cash equivalents, and restricted cash as reported on the consolidated balance sheets that equal the total amounts on the consolidated statements of cash flows (in thousands): Year Ended 2023 2022 Cash and cash equivalents $ 123,652 $ 141,522 Restricted cash included in "Restricted cash and other non-current assets" 3,877 3,877 Total cash, cash equivalents, and restricted cash $ 127,529 $ 145,399 |
Schedule of Property and Equipment, Net | Asset: Estimated Useful life Labratory and manufacturing equipment 5 years Computer equipment and software 3 years Furniture and equipment 5 years Leasehold improvements Shorter of useful life or remaining lease term Property and equipment, net consisted of the following (in thousands): As of December 31, December 31, Laboratory and manufacturing equipment $ 25,043 $ 24,407 Leasehold improvements 9,648 9,761 Construction-in-progress 2,060 1,573 Computer equipment 1,062 875 Furniture and office equipment 264 264 Software 215 215 Total property and equipment 38,292 37,095 Less: accumulated depreciation (26,260) (21,526) Property and equipment, net $ 12,032 $ 15,569 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash Equivalents and Marketable Securities | Cash equivalents and marketable securities consisted of the following at December 31, 2023 (in thousands): December 31, 2023 Amortized Allowance Gross Gross Fair Cash equivalents and marketable securities: Money market funds $ 123,652 $ — $ — $ — $ 123,652 U.S. Treasuries 168,858 — 611 169,469 Government agency securities 103,507 — — (327) 103,180 Corporate notes/bonds 30,920 — — (86) 30,834 Total $ 426,937 $ — $ 611 $ (413) $ 427,135 Cash equivalents and marketable securities consisted of the following at December 31, 2022 (in thousands): December 31, 2022 Amortized Allowance Gross Gross Fair Cash equivalents and marketable securities: Money market funds $ 141,522 $ — $ — $ — $ 141,522 U.S. Treasuries 50,019 — 3 (229) 49,793 Government agency securities 161,902 — 11 (2,556) 159,357 Commercial paper 29,954 — 3 (141) 29,816 Corporate notes/bonds 57,575 — 2 (694) 56,883 Total $ 440,972 $ — $ 19 $ (3,620) $ 437,371 The Company's available-for-sale securities are subject to a periodic impairment review. A debt security is considered to be impaired when its fair value is less than its carrying cost, in which case the Company would further review the investment to determine whether it is other-than-temporarily impaired. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, intent to sell, and whether it is more likely than not we will be required to sell the investment before the recovery of its cost basis. If an investment is other-than-temporarily impaired or subject to credit losses, the Company writes it down through the statement of operations and comprehensive loss to its fair value and establishes that value as a new cost basis for the investment. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis as of December 31, 2023 were as follows (in thousands): Financial Assets December 31, Quoted Prices Significant Significant Cash equivalents: Money market funds $ 123,652 $ 123,652 $ — $ — Marketable securities: Government agency securities 103,180 — 103,180 — Corporate bonds 30,834 — 30,834 — U.S. Treasuries 169,469 169,469 — — Restricted cash and other non-current assets: Money market funds 3,877 3,877 — — Total financial assets $ 431,012 $ 296,998 $ 134,014 $ — Assets measured at fair value on a recurring basis as of December 31, 2022 were as follows (in thousands): Financial Assets December 31, Quoted Prices Significant Significant Cash equivalents: Money market funds $ 141,522 $ 141,522 $ — $ — Marketable securities: Government agency securities 159,357 — 159,357 — Corporate bonds 56,883 — 56,883 — U.S. Treasuries 49,793 49,793 — — Commercial paper 29,816 — 29,816 — Restricted cash and other non-current assets: Money market funds 3,877 3,877 — — Total financial assets $ 441,248 $ 195,192 $ 246,056 $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Asset: Estimated Useful life Labratory and manufacturing equipment 5 years Computer equipment and software 3 years Furniture and equipment 5 years Leasehold improvements Shorter of useful life or remaining lease term Property and equipment, net consisted of the following (in thousands): As of December 31, December 31, Laboratory and manufacturing equipment $ 25,043 $ 24,407 Leasehold improvements 9,648 9,761 Construction-in-progress 2,060 1,573 Computer equipment 1,062 875 Furniture and office equipment 264 264 Software 215 215 Total property and equipment 38,292 37,095 Less: accumulated depreciation (26,260) (21,526) Property and equipment, net $ 12,032 $ 15,569 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): As of 2023 2022 External research and development expenses $ 16,204 $ 16,452 Employee related expenses 11,280 10,140 Sublicense and license fees 5,063 559 Intellectual property and patent related fees 983 1,809 Professional service expenses 750 1,260 Other expenses 283 1,076 Total accrued expenses $ 34,563 $ 31,296 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Leases Included on its Consolidated Balance Sheet | The Company’s leases are included on its consolidated balance sheet as follows (in thousands): As of December 31, December 31, Right-of-use assets $ 33,680 $ 43,648 Operating lease liabilities, current $ (12,164) $ (11,082) Operating lease liabilities, noncurrent $ (24,372) $ (32,864) |
Summary of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities as of December 31, 2023 were as follows (in thousands): Maturity of lease liabilities: Year Ended 2024 $ 14,847 2025 $ 8,391 2026 $ 7,134 2027 $ 7,076 2028 $ 6,000 Thereafter $ — Total minimum lease payments $ 43,448 Less: imputed interest $ (6,912) Total operating lease liabilities at December 31, 2023 $ 36,536 |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Collaboration Agreements | |
Schedule of Accounts Receivable and Contract Liabilities | The following table presents changes in the Company’s accounts receivable and contract liabilities for the year ended December 31, 2023 (in thousands): For the year ended December 31, 2023 Balance at December 31, 2022 Additions Deductions Balance at December 31, 2023 Accounts receivable $ 5,145 $ 14,864 $ (9,822) $ 10,187 Contract liabilities: Deferred revenue $ 68,888 $ — $ — $ 68,888 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Shares Reserved for Future Issuance | As of December 31, 2023 2022 Shares reserved for outstanding stock option awards under the 2013 Stock Incentive Plan, as amended 115,942 143,055 Shares reserved for outstanding stock option awards and restricted stock units under the 2015 Stock Incentive Plan 6,450,615 5,253,299 Shares reserved for outstanding inducement stock option award and restricted stock units 1,690,235 1,378,864 Remaining shares reserved, but unissued, for future awards under the 2015 Stock Incentive Plan 9,100,247 7,812,540 Remaining shares reserved, but unissued, for future awards under the 2015 Employee Stock Purchase Plan 3,185,493 3,300,853 20,542,532 17,888,611 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Total compensation cost recognized for all stock-based compensation awards in the consolidated statements of operations was as follows (in thousands): Year Ended 2023 2022 Research and development $ 9,842 $ 12,425 General and administrative 9,956 16,869 Total stock-based compensation expense $ 19,798 $ 29,294 |
Schedule of Changes in Unvested Restricted Stock | The following table summarizes restricted stock and restricted stock unit awards activity for the instruments discussed above as of December 31, 2023 and 2022 is as follows: Shares Weighted Unvested restricted stock and restricted stock unit awards as of December 31, 2022 1,499,070 $ 18.70 Issued 1,375,602 $ 8.70 Vested (297,934) $ 20.08 Forfeited (469,591) $ 18.77 Unvested restricted stock and restricted stock unit awards as of December 31, 2023 2,107,147 $ 11.96 |
Schedule of Stock Option Activity | The following is a summary of stock option activity for the year ended December 31, 2023: Shares Weighted Average Remaining Aggregate Intrinsic Outstanding at December 31, 2022 5,276,148 $ 23.99 8.00 $ 402 Granted 2,393,380 $ 8.70 Exercised (6,587) $ 6.14 Cancelled (1,513,296) $ 30.45 Outstanding at December 31, 2023 6,149,645 $ 16.47 6.89 $ 3,195 Exercisable at December 31, 2023 2,708,255 $ 22.27 5.39 $ 773 |
Schedule of Assumptions Used to Value Stock Options | The fair value of each service-based vesting option issued was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended 2023 2022 2021 Expected volatility 75.2 % 64.2 % 61.2 % Expected option term (in years) 6.19 6.25 6.25 Risk free interest rate 4.2 % 1.7 % 1.5 % Expected dividend yield — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Effective Income Tax Rate | A reconciliation of the income tax expense computed using the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended 2023 2022 Income tax computed at federal statutory tax rate 21.0 % 21.0 % State taxes, net of federal benefit 6.0 % 6.9 % General business credit carryovers 2.5 % (2.0) % 162m limitation — % — % Stock options (4.3) % (2.3) % Non-deductible expenses (0.2) % (0.1) % Tax rate changes (4.5) % (3.3) % Change in valuation allowance (21.8) % (20.0) % Other 1.3 % (0.2) % — % — % |
Schedule of Components of Deferred Tax Assets and Liabilities | The principal components of the Company’s deferred tax assets and liabilities consist of the following at December 31, 2023 and 2022 (in thousands): Year Ended 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 153,365 $ 144,849 Tax credit carryforwards 25,646 20,077 Accrued expenses 3,975 2,869 Capitalized patent costs 56,955 58,387 Capitalized research 60,891 41,915 Lease liabilities 9,966 12,627 Deferred revenue 18,791 17,495 Depreciation and amortization 905 299 Other 7,323 10,119 Total deferred tax assets 337,817 308,637 Less valuation allowance (328,630) (296,095) Net deferred tax assets 9,187 12,542 Deferred tax liabilities (9,187) (12,542) Depreciation and amortization — — Right-of-use assets (9,187) (12,542) Net deferred taxes $ — $ — |
Schedule of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits at the beginning and end of the years ended December 31, 2023 and 2022 (in thousands): Year Ended Balance as of December 31, 2022 $ 11,797 Gross increases for tax positions related to current year 1,384 Gross increases for tax positions related to prior year 478 Balance as of December 31, 2023 $ 13,659 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-Dilutive Common Stock Equivalents | The following common stock equivalents were excluded from the calculation of diluted net loss per share allocable to common stockholders because their inclusion would have been anti-dilutive: As of December 31, 2023 2022 Unvested restricted stock and restricted stock unit awards 2,107,147 1,499,070 Outstanding stock options 6,149,645 5,276,148 Total 8,256,792 6,775,218 |
Nature of Business (Details)
Nature of Business (Details) - USD ($) $ in Thousands | 12 Months Ended | 32 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | May 31, 2021 | |
Liquidity | ||||
Aggregate net proceeds | $ 1,000,000 | |||
Cash, cash equivalents and marketable securities | 427,100 | $ 427,100 | ||
Accumulated deficit | $ 1,231,350 | $ 1,231,350 | $ 1,078,131 | |
At The Market Offering | ||||
Liquidity | ||||
Sales agreement amount of aggregate sale proceeds of common stock agreed to be issued | $ 300,000 | |||
Number of common stock issued | 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents, and Restricted Cash | ||
Cash and cash equivalents | $ 123,652 | $ 141,522 |
Restricted cash included in "Restricted cash and other non-current assets" | $ 3,877 | $ 3,877 |
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Restricted cash and other non-current assets | Restricted cash and other non-current assets |
Total cash, cash equivalents, and restricted cash | $ 127,529 | $ 145,399 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable | ||
Bad debt write-offs | $ 0 | $ 0 |
Allowance for doubtful accounts | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property And Equipment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Property and equipment policy | |
Impairment losses | $ 0 |
Labratory and manufacturing equipment | |
Property and equipment policy | |
Estimated useful life | 5 years |
Computer equipment and software | |
Property and equipment policy | |
Estimated useful life | 3 years |
Furniture and equipment | |
Property and equipment policy | |
Estimated useful life | 5 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Success Payments, Research Funding Payments and Notes Payables (Details) - Promissory Notes | 12 Months Ended |
Dec. 31, 2023 | |
Recent Accounting Pronouncements | |
Interest rate (as a percentage) | 4.80% |
Period of outstanding principal and accrued interest payable | 5 months |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
Cash Equivalents and Marketable Securities | ||
Amortized Cost | $ 426,937 | $ 440,972 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 611 | 19 |
Gross Unrealized Losses | (413) | (3,620) |
Fair Value | $ 427,135 | 437,371 |
Number of securities in an unrealized loss position for more than 12 months | security | 0 | |
Number of noncurrent securities | security | 23 | |
Noncurrent marketable securities | $ 104,024 | 93,097 |
Minimum | ||
Cash Equivalents and Marketable Securities | ||
Remaining maturity term | 1 year | |
Maximum | ||
Cash Equivalents and Marketable Securities | ||
Remaining maturity term | 2 years | |
Money market funds | ||
Cash Equivalents and Marketable Securities | ||
Amortized Cost | $ 123,652 | 141,522 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 123,652 | 141,522 |
U.S. Treasuries | ||
Cash Equivalents and Marketable Securities | ||
Amortized Cost | 168,858 | 50,019 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 611 | 3 |
Gross Unrealized Losses | (229) | |
Fair Value | 169,469 | 49,793 |
Government agency securities | ||
Cash Equivalents and Marketable Securities | ||
Amortized Cost | 103,507 | 161,902 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 0 | 11 |
Gross Unrealized Losses | (327) | (2,556) |
Fair Value | 103,180 | 159,357 |
Commercial paper | ||
Cash Equivalents and Marketable Securities | ||
Amortized Cost | 29,954 | |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (141) | |
Fair Value | 29,816 | |
Corporate bonds | ||
Cash Equivalents and Marketable Securities | ||
Amortized Cost | 30,920 | 57,575 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (86) | (694) |
Fair Value | $ 30,834 | $ 56,883 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Marketable securities | $ 427,135 | $ 437,371 |
Government agency securities | ||
Financial Assets | ||
Marketable securities | 103,180 | 159,357 |
Corporate bonds | ||
Financial Assets | ||
Marketable securities | 30,834 | 56,883 |
U.S. Treasuries | ||
Financial Assets | ||
Marketable securities | 169,469 | 49,793 |
Commercial paper | ||
Financial Assets | ||
Marketable securities | 29,816 | |
Fair Value, Recurring | ||
Financial Assets | ||
Total financial assets | 431,012 | 441,248 |
Fair Value, Recurring | Money market funds | ||
Financial Assets | ||
Cash and cash equivalents | 123,652 | 141,522 |
Restricted cash | 3,877 | 3,877 |
Fair Value, Recurring | Government agency securities | ||
Financial Assets | ||
Marketable securities | 103,180 | 159,357 |
Fair Value, Recurring | Corporate bonds | ||
Financial Assets | ||
Marketable securities | 30,834 | 56,883 |
Fair Value, Recurring | U.S. Treasuries | ||
Financial Assets | ||
Marketable securities | 169,469 | 49,793 |
Fair Value, Recurring | Commercial paper | ||
Financial Assets | ||
Marketable securities | 29,816 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets | ||
Total financial assets | 296,998 | 195,192 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Financial Assets | ||
Cash and cash equivalents | 123,652 | 141,522 |
Restricted cash | 3,877 | 3,877 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government agency securities | ||
Financial Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Financial Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries | ||
Financial Assets | ||
Marketable securities | 169,469 | 49,793 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Financial Assets | ||
Marketable securities | 0 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial Assets | ||
Total financial assets | 134,014 | 246,056 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government agency securities | ||
Financial Assets | ||
Marketable securities | 103,180 | 159,357 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Financial Assets | ||
Marketable securities | 30,834 | 56,883 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasuries | ||
Financial Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Financial Assets | ||
Marketable securities | 29,816 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial Assets | ||
Total financial assets | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Government agency securities | ||
Financial Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Financial Assets | ||
Marketable securities | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasuries | ||
Financial Assets | ||
Marketable securities | $ 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Financial Assets | ||
Marketable securities | $ 0 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment disclosures | |||
Total property and equipment | $ 38,292 | $ 37,095 | |
Less: accumulated depreciation | (26,260) | (21,526) | |
Property and equipment, net | 12,032 | 15,569 | |
Depreciation expense | 6,064 | 6,337 | $ 5,053 |
Labratory and manufacturing equipment | |||
Property and equipment disclosures | |||
Total property and equipment | 25,043 | 24,407 | |
Leasehold improvements | |||
Property and equipment disclosures | |||
Total property and equipment | 9,648 | 9,761 | |
Construction-in-progress | |||
Property and equipment disclosures | |||
Total property and equipment | 2,060 | 1,573 | |
Computer equipment | |||
Property and equipment disclosures | |||
Total property and equipment | 1,062 | 875 | |
Furniture and equipment | |||
Property and equipment disclosures | |||
Total property and equipment | 264 | 264 | |
Software | |||
Property and equipment disclosures | |||
Total property and equipment | $ 215 | $ 215 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
External research and development expenses | $ 16,204 | $ 16,452 |
Employee related expenses | 11,280 | 10,140 |
Sublicense and license fees | 5,063 | 559 |
Intellectual property and patent related fees | 983 | 1,809 |
Professional service expenses | 750 | 1,260 |
Other expenses | 283 | 1,076 |
Total accrued expenses | $ 34,563 | $ 31,296 |
Leases - Right of Use Asset and
Leases - Right of Use Asset and Lease Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases are included on its condensed consolidated balance sheet | |||
Right-of-use assets | $ 33,680 | $ 43,648 | |
Operating lease liabilities, current | (12,164) | (11,082) | |
Operating lease liabilities, noncurrent | (24,372) | (32,864) | |
Operating lease costs | 15,200 | 13,600 | $ 10,900 |
Variable lease costs | $ 3,300 | $ 3,000 | $ 2,100 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Maturity of lease liabilities: | |
2023 | $ 14,847 |
2024 | 8,391 |
2025 | 7,134 |
2026 | 7,076 |
2027 | 6,000 |
Thereafter | 0 |
Total minimum lease payments | 43,448 |
Less: imputed interest | (6,912) |
Total operating lease liabilities | $ 36,536 |
Weighted average remaining lease term | 3 years 9 months 18 days |
Weighted average discount rate | 8.90% |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) ft² | Oct. 01, 2016 USD ($) ft² | |
Leases | ||||||
Weighted average remaining lease term | 3 years 9 months 18 days | |||||
Weighted average discount rate | 8.90% | |||||
Right-of-use assets obtained in exchange of operating lease obligations | $ 2,752 | $ 29,861 | $ 10,736 | |||
Lease For Manufacturing Space | ||||||
Leases | ||||||
Weighted average remaining lease term | 10 years | |||||
Lease not yet commenced, amount | $ 85,400 | |||||
Hurley Street Lease | ||||||
Leases | ||||||
Leased space ( in square feet) | ft² | 59,783 | |||||
Right-of-use assets obtained in exchange of operating lease obligations | $ 24,600 | |||||
Security deposit | $ 1,600 | |||||
One Main Street | ||||||
Leases | ||||||
Leased space ( in square feet) | ft² | 31,571 | |||||
Security deposit | $ 800 | |||||
Lessee, Operating Lease, Existence of Option to Extend | true | |||||
Extended lease option (in years) | 5 years |
Commitments and Contingencies -
Commitments and Contingencies - Research Funding Payments (Details) - Sponsored Research Agreement - Broad - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2018 | |
Commitments and contingencies | ||
First research funding amount due and payable | $ 25,000,000 | |
Second research funding amount due and payable | 100,000,000 | |
Written notice period | 4 months | |
Minimum | ||
Commitments and contingencies | ||
Market cap research funding limit | 10 | |
Maximum | ||
Commitments and contingencies | ||
Market cap research funding limit | $ 11 |
Commitments and Contingencies_2
Commitments and Contingencies - Milestones (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Cas-9 License Agreement | |
Commitments and Contingencies [Line Items] | |
License agreement, sales milestone payments payable | $ 54 |
License agreement, reduction in clinical and regulatory milestone payments payable | 4.1 |
License agreement, reduction in sales milestone payments payable | 36 |
Cas-9 License Agreement | Maximum | |
Commitments and Contingencies [Line Items] | |
License agreement, clinical and regulatory milestone payments payable | 14.8 |
Cpf1 License Agreement | |
Commitments and Contingencies [Line Items] | |
License agreement, sales milestone payments payable | 54 |
License agreement, reduction in clinical and regulatory milestone payments payable | 5.5 |
License agreement, reduction in sales milestone payments payable | 36 |
Cpf1 License Agreement | Maximum | |
Commitments and Contingencies [Line Items] | |
License agreement, clinical and regulatory milestone payments payable | 20 |
Cas9-II License Agreement | |
Commitments and Contingencies [Line Items] | |
License agreement, sales milestone payments payable | 13.5 |
License agreement, reduction in clinical and regulatory milestone payments payable | 1.1 |
License agreement, reduction in sales milestone payments payable | 9 |
Cas9-II License Agreement | Maximum | |
Commitments and Contingencies [Line Items] | |
License agreement, clinical and regulatory milestone payments payable | $ 3.7 |
Commitments and Contingencies_3
Commitments and Contingencies - Licensor Expense Reimbursements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Licensor Expense Reimbursements | |||
Commitments and contingencies | |||
Expense for prosecution and maintenance of patent rights | $ 7.5 | $ 8.8 | $ 10.6 |
Commitments and Contingencies_4
Commitments and Contingencies - Royalties and Success Payments (Details) - Harvard $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) candidate | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Minimum number of product candidate covered by claim or patent right | candidate | 1 |
Maximum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Royalties credit paid to third party (as a percent) | 50% |
Cpf1 License Agreement | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Success payments | $ 25 |
Success payment accrued | 100 |
Cpf1 Success Payments | Minimum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Success payments | 750 |
Cpf1 Success Payments | Maximum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Success payments | 10,000 |
Cas9-II License Agreement | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Success payments | 7.5 |
Success payment accrued | 22.5 |
Cas9-II License Agreement | Minimum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Success payments | 1,000 |
Cas9-II License Agreement | Maximum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Success payments | $ 9,000 |
Collaboration Agreements - Reve
Collaboration Agreements - Revenue Recognition (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounts receivable | |
Accounts receivable, Balance at Beginning of Period | $ 5,145 |
Accounts Receivable, Additions | 14,864 |
Accounts Receivable, Deductions | (9,822) |
Accounts receivable, Balance at End of Period | 10,187 |
Contract liabilities: | |
Deferred Revenue, Balance at Beginning of Period | 68,888 |
Deferred revenue, Additions | 0 |
Deferred revenue, Deductions | 0 |
Deferred Revenue, Balance at End of Period | $ 68,888 |
Collaboration Agreements - BMS
Collaboration Agreements - BMS Collaboration Agreement (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) product extension_period | |
Deferred revenue | $ 68,888 | $ 68,888 | ||
Deferred revenue, long-term | 60,667 | 60,667 | ||
Amended Collaboration Agreement 2019 | Bristol Myers Squibb Company ("BMS") | ||||
Upfront fee received | $ 70,000 | |||
First development and commercialization license payment received | 500 | |||
Potential development milestone payments | 6,000 | 27,500 | ||
Potential regulatory milestone payments | 107,500 | |||
Potential licensed products milestone payments | $ 60,000 | |||
Agreement term | 5 years | |||
Extensions | extension_period | 2 | |||
Extension period | 1 year | |||
Total transaction price | 118,000 | |||
Amendment fee | 70,000 | |||
Exercise fee | 10,000 | |||
Deferred revenue | 56,700 | |||
Revenue recognized | 4,500 | 18,800 | $ 24,700 | |
Deferred revenue, long-term | 56,700 | |||
Sublicense fees paid | 0 | $ 0 | ||
Potential Number Of LIcensed Products | product | 2 | |||
Potential Period Of First Commercial Sale Of Potential Product | 6 years | |||
Written notice period | 90 days | |||
Amended Collaboration Agreement 2019 | Bristol Myers Squibb Company ("BMS") | Minimum | ||||
Written notice period | 6 months | |||
License Agreement, Number Of Material Rights | product | 17 | |||
Amended Collaboration Agreement 2018 | Bristol Myers Squibb Company ("BMS") | ||||
Deferred revenue | $ 32,000 |
Collaboration Agreements - Beam
Collaboration Agreements - Beam Therapeutics (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Collaboration and other research and development revenues | $ 78,123 | $ 19,712 | $ 25,544 | |
Beam Therapeutics, Inc | License Agreement | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Non-cash consideration aggregate fair value received | $ 3,600 | |||
Contract termination notice | 90 days | |||
Total transaction price | $ 3,800 | |||
Collaboration and other research and development revenues | $ 200 | $ 300 | $ 300 |
Collaboration Agreements - Vert
Collaboration Agreements - Vertex Pharmaceuticals License Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 13, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Collaboration and other research and development revenues | $ 78,123 | $ 19,712 | $ 25,544 | |
License Agreement | Vertex Pharmaceuticals | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Upfront fee received | $ 50,000 | |||
Contingent fee | 50,000 | |||
Upfront fees including license fee | 60,000 | |||
Collaboration and other research and development revenues | $ 60,000 | |||
License Agreement | Minimum | Vertex Pharmaceuticals | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
License fee | 10,000 | |||
License Agreement | Maximum | Vertex Pharmaceuticals | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
License fee | $ 40,000 |
Preferred Stock (Details)
Preferred Stock (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 08, 2016 |
Temporary Equity Disclosure [Abstract] | |||
Authorized preferred stock | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2024 shares | Dec. 31, 2023 USD ($) award grant Vote shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Sep. 30, 2023 shares | Jul. 31, 2015 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 20,542,532 | 17,888,611 | ||||
Number of inducement grants | grant | 3 | |||||
2013 Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares authorized | 1,057,692 | |||||
Shares reserved for future awards | 6,317,769 | |||||
2013 Plan | Stock Options | Share-Based Payment Arrangement, Employee | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Expiration period | 10 years | |||||
2013 Plan | Stock Options | Share-Based Payment Arrangement, Nonemployee | Minimum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
2013 Plan | Stock Options | Share-Based Payment Arrangement, Nonemployee | Maximum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2013 Plan | Performance Shares | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Number of awards with performance vesting criteria | award | 1 | |||||
2015 Plan | Subsequent Event [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Increase to number of shares authorized | 3,270,691 | |||||
2015 Plan | Maximum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 2,923,076 | |||||
Percent of shares outstanding reserved for future awards (as a percent) | 4% | |||||
2015 Employee Stock Purchase Plan | Maximum | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 769,230 | |||||
Percent of shares outstanding reserved for future awards (as a percent) | 1% | |||||
Common Stock | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Voting rights per share | Vote | 1 | |||||
Dividends declare or paid | $ | $ 0 | $ 0 | $ 0 | |||
Common Stock | 2013 Plan | Stock Options | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 115,942 | 143,055 | ||||
Common Stock | 2015 Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 9,100,247 | 7,812,540 | ||||
Common Stock | 2015 Plan | Stock Options | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 6,450,615 | 5,253,299 | ||||
Common Stock | 2015 Employee Stock Purchase Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for future awards | 3,185,493 | 3,300,853 |
Common Stock - Schedule of Shar
Common Stock - Schedule of Shares Reserved for Future Issuance (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 31, 2015 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 20,542,532 | 17,888,611 | |
Inducement stock option award and restricted stock units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 1,690,235 | 1,378,864 | |
2013 Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 6,317,769 | ||
2013 Plan | Stock Options | Common Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 115,942 | 143,055 | |
2015 Plan | Common Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 9,100,247 | 7,812,540 | |
2015 Plan | Stock Options | Common Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 6,450,615 | 5,253,299 | |
2015 Employee Stock Purchase Plan | Common Stock | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares reserved for future awards | 3,185,493 | 3,300,853 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 19,798 | $ 29,294 |
Research and development | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 9,842 | 12,425 |
General and administrative | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 9,956 | $ 16,869 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Grant Date Fair Value Per Share | |||
Compensation expense | $ 19,798 | $ 29,294 | |
Restricted Stock | |||
Shares | |||
Unvested restricted shares, beginning of period (in shares) | 1,499,070 | ||
Issued (in shares) | 1,375,602 | ||
Vested (in shares) | (297,934) | ||
Forfeited (in shares) | (469,591) | ||
Unvested restricted shares, end of period(in shares) | 2,107,147 | 1,499,070 | |
Weighted Average Grant Date Fair Value Per Share | |||
Balance, beginning of period (in dollars per share) | $ 18.70 | ||
Issued (in dollars per share) | 8.70 | ||
Vested (in dollars per share) | 20.08 | ||
Forfeited (in dollars per share) | 18.77 | ||
Balance, ending of period (in dollars per share) | $ 11.96 | $ 18.70 | |
Compensation expense | $ 5,100 | $ 7,900 | $ 14,600 |
Unrecognized stock-based compensation expense | $ 13,800 | ||
Period for recognition | 2 years 3 months 18 days | ||
Performance Shares | Share-Based Payment Arrangement, Employee | |||
Shares | |||
Issued (in shares) | 437,842 | ||
Weighted Average Grant Date Fair Value Per Share | |||
Compensation expense | $ 500 | 4,400 | |
Stock Options | |||
Weighted Average Grant Date Fair Value Per Share | |||
Compensation expense | 13,900 | $ 14,100 | 18,800 |
Unrecognized stock-based compensation expense | $ 25,800 | ||
Period for recognition | 2 years 6 months 25 days | ||
Shares | |||
Outstanding, beginning of period (in shares) | 5,276,148 | ||
Granted (in shares) | 2,393,380 | ||
Exercised (in shares) | (6,587) | ||
Cancelled (in shares) | (1,513,296) | ||
Outstanding, end of period (in shares) | 6,149,645 | 5,276,148 | |
Exercisable (in shares) | 2,708,255 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 23.99 | ||
Granted (in dollars per share) | 8.70 | ||
Exercised (in dollars per share) | 6.14 | ||
Cancelled (in dollars per share) | 30.45 | ||
Outstanding, end of period (in dollars per share) | 16.47 | $ 23.99 | |
Exercisable (in dollar per share) | $ 22.27 | ||
Stock Options Additional Disclosures | |||
Remaining contractual life | 6 years 10 months 20 days | 8 years | |
Exercisable, remaining contractual life | 5 years 4 months 20 days | ||
Aggregate intrinsic value | $ 3,195 | $ 402 | |
Exercisable, aggregated intrinsic value | 773 | ||
Intrinsic value of options exercised | $ 30 | $ 90 | $ 27,200 |
Weighted average fair value of options granted (per share) | $ 6.04 | $ 15.87 | $ 17.54 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) - Stock Options - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assumptions | |||
Expected volatility | 75.20% | 64.20% | 61.20% |
Expected option term (in years) | 6 years 2 months 8 days | 6 years 3 months | 6 years 3 months |
Risk free interest rate | 4.20% | 1.70% | 1.50% |
Expected dividend yield | 0% | 0% | 0% |
Unrecognized stock-based compensation expense | $ 25.8 | ||
Period for recognition | 2 years 6 months 25 days |
401(K) Savings Plan (Details)
401(K) Savings Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Employer match (as a percent) | 200% | ||
Maximum employee contributions eligible for matching contributions | $ 6,000 | ||
Maximum employee contributions eligible for matching contributions (as a percent) | 3% | ||
Contributions to the 401(k) Plan | $ 1,200,000 | $ 1,400,000 | $ 1,200,000 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Income tax computed at federal statutory tax rate | 21% | 21% |
State taxes, net of federal benefit | 6% | 6.90% |
General business credit carryovers | (2.50%) | 2% |
162m limitation | 0% | 0% |
Stock options | (4.30%) | (2.30%) |
Non-deductible expenses | (0.20%) | (0.10%) |
Tax rate changes | (4.50%) | (3.30%) |
Change in valuation allowance | (21.80%) | (20.00%) |
Other | 1.30% | (0.20%) |
Effective tax rate | 0% | 0% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 153,365 | $ 144,849 |
Tax credit carryforwards | 25,646 | 20,077 |
Accrued expenses | 3,975 | 2,869 |
Capitalized patent costs | 56,955 | 58,387 |
Capitalized research | 60,891 | 41,915 |
Lease liabilities | 9,966 | 12,627 |
Deferred revenue | 18,791 | 17,495 |
Depreciation and amortization | 905 | 299 |
Other | 7,323 | 10,119 |
Total deferred tax assets | 337,817 | 308,637 |
Less valuation allowance | (328,630) | (296,095) |
Net deferred tax assets | 9,187 | 12,542 |
Deferred tax liabilities | (9,187) | (12,542) |
Depreciation and amortization | 0 | 0 |
Right-of-use assets | (9,187) | (12,542) |
Net deferred taxes | 0 | $ 0 |
Increase in deferred tax assets related to capitalized research expenses | $ 60,900 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense | $ 0 | $ 0 |
Valuation allowance | 328,630,000 | 296,095,000 |
Change in the valuation allowance | 32,500,000 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | 546,700,000 | 517,500,000 |
Net operating losses carryforward indefinitely | 472,000,000 | |
Net operating losses with expiration | 74,800,000 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | $ 648,000,000 | $ 609,500,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning Balance | $ 11,797 |
Gross increases for tax positions related to current year | 1,384 |
Gross increases for tax positions related to prior year | 478 |
Ending Balance | $ 13,659 |
Net Loss per Share - Anti-dilut
Net Loss per Share - Anti-dilutive (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Potentially dilutive securities | ||
Anti-dilutive common stock equivalent shares | 8,256,792 | 6,775,218 |
Unvested restricted stock and restricted stock unit awards | ||
Potentially dilutive securities | ||
Anti-dilutive common stock equivalent shares | 2,107,147 | 1,499,070 |
Outstanding stock options | ||
Potentially dilutive securities | ||
Anti-dilutive common stock equivalent shares | 6,149,645 | 5,276,148 |