Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Decibel Therapeutics, Inc. | |
Entity Central Index Key | 0001656536 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,923,363 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-40030 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4198709 | |
Entity Address, Address Line One | 1325 Boylston Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02215 | |
City Area Code | 617 | |
Local Phone Number | 370-8701 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | DBTX | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 51,413 | $ 27,742 |
Available-for-sale securities | 92,477 | 26,568 |
Accounts receivable from related party | 3,142 | 1,237 |
Prepaid expenses and other current assets | 2,835 | 2,281 |
Total current assets | 149,867 | 57,828 |
Available-for-sale securities, long-term | 28,494 | |
Property and equipment, net | 5,798 | 6,337 |
Other assets | 1,128 | 3,120 |
Total assets | 185,287 | 67,285 |
Current liabilities: | ||
Accounts payable | 1,814 | 2,131 |
Accrued expenses and other current liabilities | 7,552 | 5,665 |
Deferred collaboration liability, current | 6,459 | 10,968 |
Deferred rent and lease incentive obligation, current | 674 | 610 |
Total current liabilities | 16,499 | 19,374 |
Long-term liabilities: | ||
Deferred collaboration liability, long term | 8,459 | 4,177 |
Deferred rent and lease incentive obligation, long term | 4,389 | 4,901 |
Other long-term liabilities | 1,785 | 523 |
Total liabilities | 31,132 | 28,975 |
Commitments and contingencies (Note 6) | ||
Convertible preferred stock | 93,091 | |
Stockholders’ (deficit) equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized, no shares issued and outstanding at September 30, 2021; no shares authorized, issued and outstanding at December 31, 2020 | ||
Common stock, $0.001 par value; 200,000,000 shares authorized, 24,920,599 shares issued and 24,899,200 outstanding at September 30, 2021; 115,000,000 shares authorized, 573,793 shares issued and 521,052 shares outstanding at December 31, 2020 | 25 | 1 |
Additional paid-in capital | 355,731 | 107,908 |
Accumulated other comprehensive income (loss) | 8 | (1) |
Accumulated deficit | (201,609) | (162,689) |
Total stockholders’ equity (deficit) | 154,155 | (54,781) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ 185,287 | 67,285 |
Series A convertible preferred stock | ||
Long-term liabilities: | ||
Convertible preferred stock | 16,176 | |
Series B convertible preferred stock | ||
Long-term liabilities: | ||
Convertible preferred stock | 5,700 | |
Series C convertible preferred stock | ||
Long-term liabilities: | ||
Convertible preferred stock | 16,759 | |
Series D convertible preferred stock | ||
Long-term liabilities: | ||
Convertible preferred stock | $ 54,456 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Convertible preferred stock, Shares authorized | 0 | 155,398,078 |
Convertible preferred stock, Shares issued | 0 | 139,527,869 |
Convertible preferred stock, Shares outstanding | 0 | 139,527,869 |
Convertible preferred stock, Liquidation preference | $ 157,584 | |
Preferred stock, Par value | $ 0.001 | $ 0.001 |
Preferred stock, Shares authorized | 5,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, Shares outstanding | 0 | 0 |
Common stock, Par value | $ 0.001 | $ 0.001 |
Common stock, Shares authorized | 200,000,000 | 115,000,000 |
Common stock, Shares issued | 24,920,599 | 573,793 |
Common stock, Shares outstanding | 24,899,200 | 521,052 |
Series A convertible preferred stock | ||
Convertible preferred stock, Par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, Shares authorized | 0 | 57,758,734 |
Convertible preferred stock, Shares issued | 0 | 57,758,734 |
Convertible preferred stock, Shares outstanding | 0 | 57,758,734 |
Convertible preferred stock, Liquidation preference | $ 40,284 | |
Series B convertible preferred stock | ||
Convertible preferred stock, Par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, Shares authorized | 0 | 12,500,000 |
Convertible preferred stock, Shares issued | 0 | 12,500,000 |
Convertible preferred stock, Shares outstanding | 0 | 12,500,000 |
Convertible preferred stock, Liquidation preference | $ 16,334 | |
Preferred stock, shares issued | 12,500,000 | |
Series C convertible preferred stock | ||
Convertible preferred stock, Par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, Shares authorized | 0 | 37,528,581 |
Convertible preferred stock, Shares issued | 0 | 37,528,581 |
Convertible preferred stock, Shares outstanding | 0 | 37,528,581 |
Convertible preferred stock, Liquidation preference | $ 45,457 | |
Preferred stock, shares issued | 14,000,000 | |
Series D convertible preferred stock | ||
Convertible preferred stock, Par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, Shares authorized | 0 | 47,610,763 |
Convertible preferred stock, Shares issued | 0 | 31,740,554 |
Convertible preferred stock, Shares outstanding | 0 | 31,740,554 |
Convertible preferred stock, Liquidation preference | $ 55,509 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating expenses: | ||||
Research and development | $ 9,020,000 | $ 4,691,000 | $ 21,867,000 | $ 17,426,000 |
General and administrative | 5,680,000 | 2,397,000 | 15,462,000 | 9,130,000 |
Total operating expenses | 14,700,000 | 7,088,000 | 37,329,000 | 26,556,000 |
Loss from operations | (14,700,000) | (7,088,000) | (37,329,000) | (26,556,000) |
Other income: | ||||
Interest income | 33,000 | 2,000 | 141,000 | 103,000 |
Other income, net | (25,000) | |||
Total other income, net | 33,000 | (23,000) | 141,000 | 103,000 |
Net loss before provision for income taxes | (14,667,000) | (7,111,000) | (37,188,000) | (26,453,000) |
Provision for income taxes | (1,732,000) | 0 | (1,732,000) | 0 |
Net loss | (16,399,000) | (7,111,000) | (38,920,000) | (26,453,000) |
Cumulative dividends on convertible preferred stock | (2,779,000) | (8,277,000) | ||
Net loss attributable to common stockholders | $ (16,399,000) | $ (9,890,000) | $ (41,229,000) | $ (34,730,000) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.66) | $ (20.28) | $ (2) | $ (74.11) |
Weighted average shares of common stock outstanding, basic and diluted | 24,874,738 | 487,658 | 20,661,879 | 468,641 |
Comprehensive loss: | ||||
Net loss | $ (16,399,000) | $ (7,111,000) | $ (38,920,000) | $ (26,453,000) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax of $0 | 3,000 | 9,000 | (10,000) | |
Total other comprehensive income (loss) | 3,000 | 9,000 | (10,000) | |
Comprehensive loss | $ (16,396,000) | $ (7,111,000) | $ (38,911,000) | $ (26,463,000) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Unrealized gain (loss) on available-for-sale securities, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Series A convertible preferred stock | Series B convertible preferred stock | Series C convertible preferred stock | Series D convertible preferred stock |
Balance at Dec. 31, 2019 | $ (121,796) | $ 1,546 | $ 10 | $ (123,352) | |||||
Balance, Shares at Dec. 31, 2019 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Dec. 31, 2019 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Dec. 31, 2019 | 434,942 | ||||||||
Vesting of restricted common stock | 11 | 11 | |||||||
Vesting of restricted common stock, Shares | 21,872 | ||||||||
Stock-based compensation expense | 225 | 225 | |||||||
Unrealized gain (loss) on available-for-sale securities | (9) | (9) | |||||||
Net loss | (11,535) | (11,535) | |||||||
Balance at Mar. 31, 2020 | (133,104) | 1,782 | 1 | (134,887) | |||||
Balance, Shares at Mar. 31, 2020 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Mar. 31, 2020 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Mar. 31, 2020 | 456,814 | ||||||||
Balance at Dec. 31, 2019 | (121,796) | 1,546 | 10 | (123,352) | |||||
Balance, Shares at Dec. 31, 2019 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Dec. 31, 2019 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Dec. 31, 2019 | 434,942 | ||||||||
Unrealized gain (loss) on available-for-sale securities | (10) | ||||||||
Net loss | (26,453) | ||||||||
Balance at Sep. 30, 2020 | (147,638) | 2,167 | (149,805) | ||||||
Balance, Shares at Sep. 30, 2020 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Sep. 30, 2020 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Sep. 30, 2020 | 493,417 | ||||||||
Balance at Mar. 31, 2020 | (133,104) | 1,782 | 1 | (134,887) | |||||
Balance, Shares at Mar. 31, 2020 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Mar. 31, 2020 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Mar. 31, 2020 | 456,814 | ||||||||
Vesting of restricted common stock | 16 | 16 | |||||||
Vesting of restricted common stock, Shares | 20,324 | ||||||||
Stock-based compensation expense | 179 | 179 | |||||||
Unrealized gain (loss) on available-for-sale securities | (1) | (1) | |||||||
Net loss | (7,807) | (7,807) | |||||||
Balance at Jun. 30, 2020 | (140,717) | 1,977 | (142,694) | ||||||
Balance, Shares at Jun. 30, 2020 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Jun. 30, 2020 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Jun. 30, 2020 | 477,138 | ||||||||
Vesting of restricted common stock | 5 | 5 | |||||||
Vesting of restricted common stock, Shares | 16,279 | ||||||||
Stock-based compensation expense | 185 | 185 | |||||||
Net loss | (7,111) | (7,111) | |||||||
Balance at Sep. 30, 2020 | (147,638) | 2,167 | (149,805) | ||||||
Balance, Shares at Sep. 30, 2020 | 57,758,734 | 12,500,000 | 27,528,581 | ||||||
Balance at Sep. 30, 2020 | $ 57,682 | $ 24,957 | $ 55,005 | ||||||
Balance, Shares at Sep. 30, 2020 | 493,417 | ||||||||
Balance at Dec. 31, 2020 | $ (54,781) | $ 1 | 107,908 | (1) | (162,689) | ||||
Balance, Shares at Dec. 31, 2020 | 139,527,869 | 57,758,734 | 12,500,000 | 37,528,581 | 31,740,554 | ||||
Balance at Dec. 31, 2020 | $ 93,091 | $ 16,176 | $ 5,700 | $ 16,759 | $ 54,456 | ||||
Balance, Shares at Dec. 31, 2020 | 521,052 | ||||||||
Issuance of common stock upon exercise of stock options | 17 | 17 | |||||||
Issuance of common stock upon exercise of stock options, Shares | 3,773 | ||||||||
Vesting of restricted common stock | 4 | 4 | |||||||
Vesting of restricted common stock, Shares | 10,202 | ||||||||
Stock-based compensation expense | 646 | 646 | |||||||
Issuance of Series D convertible preferred stock | $ 27,400 | ||||||||
Issuance of Series D convertible preferred stock, Shares | 15,870,209 | ||||||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering | 120,491 | $ 17 | 120,474 | ||||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering, Shares | (57,758,734) | (12,500,000) | (37,528,581) | (47,610,763) | |||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering | $ (16,176) | $ (5,700) | $ (16,759) | $ (81,856) | |||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering, Shares | 16,662,011 | ||||||||
Issuance of common stock upon completion of initial public offering, net of commissions, underwriting discounts and offering costs | 124,779 | $ 7 | 124,772 | ||||||
Issuance of common stock upon completion of initial public offering, net of commissions, underwriting discounts and offering costs, Shares | 7,662,000 | ||||||||
Unrealized gain (loss) on available-for-sale securities | (20) | (20) | |||||||
Net loss | (10,870) | (10,870) | |||||||
Balance at Mar. 31, 2021 | 180,266 | $ 25 | 353,821 | (21) | (173,559) | ||||
Balance, Shares at Mar. 31, 2021 | 24,859,038 | ||||||||
Balance at Dec. 31, 2020 | $ (54,781) | $ 1 | 107,908 | (1) | (162,689) | ||||
Balance, Shares at Dec. 31, 2020 | 139,527,869 | 57,758,734 | 12,500,000 | 37,528,581 | 31,740,554 | ||||
Balance at Dec. 31, 2020 | $ 93,091 | $ 16,176 | $ 5,700 | $ 16,759 | $ 54,456 | ||||
Balance, Shares at Dec. 31, 2020 | 521,052 | ||||||||
Conversion of convertible preferred stock into common stock upon completion of initial public offering, Shares | 16,662,011 | ||||||||
Unrealized gain (loss) on available-for-sale securities | $ 9 | ||||||||
Net loss | (38,920) | ||||||||
Balance at Sep. 30, 2021 | $ 154,155 | $ 25 | 355,731 | 8 | (201,609) | ||||
Balance, Shares at Sep. 30, 2021 | 0 | 0 | 0 | 0 | 0 | ||||
Balance, Shares at Sep. 30, 2021 | 24,899,200 | ||||||||
Balance at Mar. 31, 2021 | $ 180,266 | $ 25 | 353,821 | (21) | (173,559) | ||||
Balance, Shares at Mar. 31, 2021 | 24,859,038 | ||||||||
Issuance of common stock upon exercise of stock options | 1 | 1 | |||||||
Issuance of common stock upon exercise of stock options, Shares | 354 | ||||||||
Vesting of restricted common stock | 5 | 5 | |||||||
Vesting of restricted common stock, Shares | 9,425 | ||||||||
Stock-based compensation expense | 764 | 764 | |||||||
Unrealized gain (loss) on available-for-sale securities | 26 | 26 | |||||||
Net loss | (11,651) | (11,651) | |||||||
Balance at Jun. 30, 2021 | 169,411 | $ 25 | 354,591 | 5 | (185,210) | ||||
Balance, Shares at Jun. 30, 2021 | 24,868,817 | ||||||||
Issuance of common stock upon exercise of stock options | 100 | 100 | |||||||
Issuance of common stock upon exercise of stock options, Shares | 22,265 | ||||||||
Vesting of restricted common stock | 4 | 4 | |||||||
Vesting of restricted common stock, Shares | 8,118 | ||||||||
Stock-based compensation expense | 1,036 | 1,036 | |||||||
Unrealized gain (loss) on available-for-sale securities | 3 | 3 | |||||||
Net loss | (16,399) | (16,399) | |||||||
Balance at Sep. 30, 2021 | $ 154,155 | $ 25 | $ 355,731 | $ 8 | $ (201,609) | ||||
Balance, Shares at Sep. 30, 2021 | 0 | 0 | 0 | 0 | 0 | ||||
Balance, Shares at Sep. 30, 2021 | 24,899,200 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Payments of stock issuance costs | $ 13,137 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (38,920) | $ (26,453) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,446 | 589 |
Depreciation | 1,104 | 1,297 |
Amortization (accretion) of available-for-sale securities | 659 | (26) |
Changes in operating assets and liabilities: | ||
Accounts receivable from related party | (1,905) | |
Prepaid expenses and other current assets | (554) | (257) |
Other assets | (37) | |
Accounts payable | (317) | 186 |
Accrued expenses and other current liabilities | 3,137 | (424) |
Deferred rent and lease incentive | (448) | (381) |
Deferred collaboration liability | (227) | (2,397) |
Other long-term liabilities | 1,420 | 391 |
Net cash used in operating activities | (33,605) | (27,512) |
Investing activities | ||
Purchases of available-for-sale securities | (165,721) | |
Proceeds from maturities and redemptions of available-for-sale securities | 70,668 | 13,750 |
Proceeds from sale of property and equipment | 42 | 92 |
Purchases of property and equipment | (420) | (161) |
Net cash (used in) provided by investing activities | (95,431) | 13,681 |
Financing activities | ||
Proceeds from the issuance of Series D convertible preferred stock | 27,400 | |
Proceeds from issuance of common stock upon completion of initial public offering net of commissions and underwriting discounts | 128,240 | |
Payment of initial public offering costs | (3,255) | |
Proceeds from the exercise of stock options | 118 | |
Proceeds from equipment financing | 499 | |
Principal payments on equipment financing | (143) | (30) |
Repurchases of unvested restricted stock | (1) | (3) |
Net cash provided by financing activities | 152,359 | 466 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 23,323 | (13,365) |
Cash, cash equivalents and restricted cash at beginning of period | 29,218 | 20,039 |
Cash, cash equivalents and restricted cash at end of period | 52,541 | 6,674 |
Supplemental disclosure of non-cash activities: | ||
Fixed asset purchases in accrued expenses | 187 | |
Vesting of early exercised restricted stock | $ (13) | (32) |
Deferred issuance costs for Series D convertible preferred stock in accrued expenses | $ (60) |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | 1. Nature of the Business Decibel Therapeutics, Inc. (the “Company”) was formed on November 26, 2013. The Company is a clinical-stage biotechnology company dedicated to discovering and developing transformative treatments for hearing and balance disorders, one of the largest areas of unmet need in medicine. The Company aims to restore and improve hearing and balance through the restoration and regeneration of functional hair cells and non-sensory support cells within the inner ear. On October 30, 2020, the Company’s board of directors approved a 1-for- 10 reverse stock split of the Company’s common stock, par value $ 0.001 per share. On February 5, 2021, the Company’s board of directors approved a 1-for- 5.3 reverse stock split of the Company’s common stock. All share and per share amounts in the condensed consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to both reverse stock splits. Initial Public Offering On February 17, 2021, the Company completed an initial public offering (the “IPO”), issuing and selling 7,062,000 shares of common stock at a public offering price of $ 18.00 per share, and on February 24, 2021, the Company issued and sold an additional 600,000 shares pursuant to the underwriters’ partial exercise of their option to purchase additional shares. The aggregate net proceeds received by the Company from the offering were approximately $ 124.8 million. Upon closing of the IPO, all outstanding shares of convertible preferred stock automatically converted into shares of common stock. Liquidity Since its inception, the Company’s operations have been focused on organizing and staffing, business planning, raising capital, establishing the Company’s intellectual property portfolio and performing research and development of its product candidates, programs and platform. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including but not limited to, risks associated with completing preclinical studies and clinical trials, obtaining regulatory approvals for product candidates, development by competitors of new biopharmaceutical products, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Our current programs will require significant additional research and development efforts, including preclinical and clinical testing and will need to obtain regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize revenue from product sales. As of September 30, 2021, the Company had cash, cash equivalents and available-for-sale securities of $ 172.4 million . The Company has determined that its existing capital resources will be sufficient to meet its projected operating expenses and capital expenditure requirements for at least twelve months from the date of issuance of these condensed consolidated financial statements. The Company expects to experience negative cash flows from operations and net losses for the foreseeable future as it continues to invest significantly in research and development of its product candidates, preclinical and clinical development and platform. Management’s conclusion with respect to its ability to fund its operations is based on estimates that are subject to risks and uncertainties that may prove to be incorrect. If actual results differ from management’s estimates, the Company may be required to seek additional funding or curtail planned activities to reduce operating expenses, which may have an adverse impact on the Company’s ability to achieve its business objectives. Impact of the COVID-19 Pandemic The worldwide COVID-19 pandemic has affected and may affect in the future the Company’s ability to initiate and complete preclinical studies, delay the initiation and completion of the Company’s current and planned clinical trials, disrupt regulatory activities or have other adverse effects on the Company’s business, results of operations, financial condition and prospects. In addition, the pandemic has caused substantial disruption to global supply chains and may adversely impact economies worldwide, both of which could adversely affect the Company’s business, operations and ability to raise funds to support its operations. The Company is following, and plans to continue to follow recommendations from federal, state and local governments regarding workplace policies, practices and procedures. Screening and enrollment in the Company’s ongoing Phase 1b clinical trial of DB-020 in Australia and the United States have been adversely impacted by the COVID-19 pandemic. Patient screening and enrollment were paused in the second quarter of 2020 in both Australia and the United States, and screening for enrollment did not resume until early in the third quarter of 2020 in Australia and early in the fourth quarter of 2020 in the United States. The Company has also experienced delays in site start-up and the withdrawal of some sites in the United States. In addition, the Company and the third-party manufacturers, contract research organizations and academic collaborators that the Company engages have faced in the past and may face in the future disruptions that could affect its ability to initiate and complete preclinical studies or clinical trials, including disruptions in procuring items that are essential for its research and development activities, such as, for example, raw materials used in the manufacture of its product candidates, laboratory supplies for its preclinical studies and clinical trials, or animals that are used for preclinical testing, in each case, for which there may be shortages because of ongoing efforts to address, and the impact of, the COVID-19 pandemic. The Company cannot be certain what the overall impact of the COVID-19 pandemic will be on its business. The extent of the impact of COVID-19 on the Company’s business will depend on the length and severity of this pandemic, including the extent there is any resurgence of the COVID-19 virus or any variant strains of the virus, the availability and effectiveness of vaccines and the impact of the foregoing on the Company’s preclinical studies, current and planned clinical trials, employees and vendors, which is uncertain and cannot be predicted. The pandemic has the potential to adversely affect the Company’s business, financial condition, results of operations and prospects. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements have been prepared in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim consolidated financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). Unaudited Interim Condensed Consolidated Financial Information The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2021 and 2020, the condensed consolidated statements of convertible preferred stock and stockholders’ (deficit) equity for the nine months ended September 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 are unaudited. The financial data and other information contained in the notes thereto as of and for the three and nine months ended September 30, 2021 and 2020 are also unaudited. The condensed consolidated balance sheet data as of December 31, 2020 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2020. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s financial position as of September 30, 2021, the results of its operations for the three and nine months ended September 30, 2021 and 2020 and cash flows for the nine months ended September 30, 2021 and 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021 , or any other interim periods, or any future year or period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of common stock awards prior to the IPO, the estimated cost to perform research which is an input into the measurement of research and development expenses recognized under the Company’s collaboration agreement with Regeneron Pharmaceuticals, Inc. (“Regeneron”), as described below, and the accrual of research and development expenses. Estimates are periodically reviewed considering changes in circumstances, facts and historical experience. Actual results may differ from the Company’s estimates. Cash, Cash Equivalents and Restricted Cash Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with original maturities of three months or less. Cash equivalents are mainly comprised of corporate debt securities and money market accounts invested in U.S. Treasury securities. Restricted cash is comprised of deposits with a financial institution used to collateralize letters of credit related to the Company’s lease arrangements. Restricted cash is presented as a component of other assets on the condensed consolidated balance sheets. Cash, cash equivalents and restricted cash consisted of the following (in thousands): September 30, 2021 2020 Cash and cash equivalents $ 51,413 $ 5,198 Restricted cash 1,128 1,476 Total cash, cash equivalents and restricted cash as shown on the statement $ 52,541 $ 6,674 Restricted cash decreased by $ 0.3 million during the nine months ended September 30, 2021 due to a reduction in deposits with a financial institution used to collateralize letters of credit related to the Company’s lease arrangements. Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. The fair values of the Company’s financial assets and liabilities reflect the Company’s estimate of the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. To the extent 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 condensed consolidated balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. Items measured at fair value on a recurring basis include cash equivalents and available-for-sales securities as of September 30, 2021 and December 31, 2020 . Deferred Offering Costs The Company capitalizes certain legal, professional, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until the related financings are consummated. After consummation of the equity financing, such costs are reclassified as a reduction to additional paid-in capital generated as a result of the related financing. Should an in-process equity financing be abandoned, the deferred offering costs would be expensed immediately as a charge to operating expenses in the condensed consolidated statements of operations and comprehensive loss. Deferred offering costs are presented as a component of other assets on the condensed consolidated balance sheets. The Company had no deferred offering costs as of September 30, 2021. As of December 31, 2020, the Company capitalized $ 1.6 million of deferred offering costs related to the IPO. Income Taxes The Company applies a two-step process to determine the amount of tax benefit to be recognized, if any. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more likely than not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the condensed consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Derecognition of a tax position that was previously recognized occurs when a company subsequently determines that a tax position no longer meets the more likely than not threshold. To the extent an income tax provision is necessary, the provision for income taxes would include the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases ( Topic 842 ), Amendments to the FASB Accounting Standards Codification ( “ASU 2016-02”), which replaces the existing guidance for leases. ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and a lease liability will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. The guidance is effective for annual reporting periods beginning after December 15, 2021 and interim periods beginning after December 15, 2022, and early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements and related disclosures. While the Company continues to evaluate the impact of adopting the new standard, the Company currently anticipates applying the modified retrospective approach effective January 1, 2022. The Company currently expects to elect the package of practical expedients which allows entities to not reassess (i) whether an arrangement is or contains a lease, (ii) the classification of its leases, and (iii) the accounting for initial direct costs. Further, the Company currently anticipates electing, by class of underlying asset, the short-term lease exception for leases with terms of twelve months or less. In doing so, the Company will not recognize a lease liability or right-of-use asset on its balance sheets for such short-term leases. Finally, the Company currently expects to elect, by class of underlying asset, the practical expedient to not separate lease and non-lease components. The Company expects the impact of adoption to include: (i) the recognition of right-of-use assets and lease liabilities arising from its leases of office and laboratory space; (ii) the derecognition of deferred rent and unamortized tenant incentives; and (iii) new and expanded disclosure requirements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for annual reporting periods beginning after December 15, 2021. The Company does not expect that the adoption of ASU 2019-12 will have a material impact on its consolidated financial statements and related disclosures. Refer to Note 2 of the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 for the Company’s summary of recently issued accounting pronouncements that have not yet been adopted. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company measures the following financial assets at fair value on a recurring basis. The fair value of these assets was determined as follows (in thousands): Balance at September 30, 2021 Quoted Prices Significant Significant Cash equivalents: Money market mutual funds $ 47,518 $ 47,518 $ — $ — Total cash equivalents $ 47,518 $ 47,518 $ — $ — Available-for-sale securities: Corporate debt securities $ 36,569 $ — $ 36,569 $ — Commercial paper 24,895 — 24,895 — US Treasury securities 15,866 — 15,866 — Agency bonds 15,148 — 15,148 — Total available-for-sale securities $ 92,477 $ — $ 92,477 $ — Available-for-sale securities, long-term: US Treasury securities $ 28,494 $ — $ 28,494 $ — Total available-for-sale securities, long-term $ 28,494 $ — $ 28,494 $ — Balance at Quoted Prices Significant Significant Cash equivalents: Money market mutual funds $ 7,962 $ 7,962 $ — $ — Corporate debt securities 4,001 — 4,001 — Commercial paper 12,499 — 12,499 — Total cash equivalents $ 24,462 $ 7,962 $ 16,500 $ — Available-for-sale securities: Corporate debt securities $ 1,286 $ — $ 1,286 $ — Commercial paper 19,481 — 19,481 — US Treasury securities 3,027 — 3,027 — Certificates of deposit 2,774 — 2,774 — Total available-for-sale securities $ 26,568 $ — $ 26,568 $ — Money market funds were valued by the Company using quoted prices in active markets for identical securities, which represent a Level 1 measurement within the fair value hierarchy. During the three and nine months ended September 30, 2021 and the year ended December 31, 2020 there were no transfers between Level 1, Level 2 and Level 3. |
Available-for-sale Securities
Available-for-sale Securities | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | 4. Available-For-Sale Securities The following table summarizes the Company’s available-for-sale securities (in thousands): September 30, 2021 Amortized Gross Gross Fair Value Available-for-sale securities: Corporate debt securities $ 36,570 $ — $ ( 1 ) $ 36,569 Commercial paper 24,890 5 — 24,895 US Treasury securities 15,863 3 — 15,866 Agency bonds 15,142 6 — 15,148 Total available-for-sale securities $ 92,465 $ 13 $ ( 1 ) $ 92,477 Available-for-sale securities, long-term: US Treasury securities $ 28,498 $ 1 $ ( 5 ) $ 28,494 Total available-for-sale securities, long-term $ 28,498 $ 1 $ ( 5 ) $ 28,494 December 31, 2020 Amortized Gross Gross Fair Value Available-for-sale securities: Corporate debt securities $ 1,286 $ — $ — $ 1,286 Commercial paper 19,481 1 ( 1 ) 19,481 US Treasury securities 3,027 — — 3,027 Certificates of deposit 2,775 — ( 1 ) 2,774 Total available-for-sale securities $ 26,569 $ 1 $ ( 2 ) $ 26,568 The Company had 17 investments in available-for-sale securities in an unrealized loss position as of September 30, 2021 with a fair value of $ 57.3 million. The Company had eight investments in available-for-sale securities in an unrealized loss position as of December 31, 2020 with a fair value of $ 17.1 million. These investments were in a loss position for less than 12 months and the Company considered the loss to be temporary in nature. The Company considered the decline in market value for these securities to be primarily attributable to economic and market conditions. As of September 30, 2021 and December 31, 2020 , the Company did not intend to sell, and it was not more likely than not that the Company would be required to sell the investments that were in an unrealized loss position before recovery of their amortized cost basis. Accordingly, the Company did no t recognize any other-than-temporary impairments related to its available-for-sale securities in an unrealized loss position. As of September 30, 2021 , the Company did not hold any investments that matured beyond five years . During the three and nine months ended September 30, 2021 and the year ended December 31, 2020 , the Company did no t sell any available-for-sale securities and therefore did no t recognize any realized gains or losses. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities: Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued research and development expense $ 3,689 $ 680 Accrued payroll and related expenses 2,171 2,381 Accrued other and other current liabilities 836 557 Accrued professional fees 648 1,854 Equipment financing, current 208 193 $ 7,552 $ 5,665 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies License Agreements The Company is a party to a number of license agreements related to certain patent rights used in developing its product candidates. Under such license agreements, the Company paid nominal upfront fees and is obligated to pay certain nominal annual license maintenance fees. The Company is also obligated to make certain payments based on specified clinical and regulatory milestones and royalty payments based on sales volume and milestones. The Company may terminate these agreements by providing prior written notice to the respective counterparty. All payments made have been expensed as research and development expenses in the condensed consolidated statements of operations and comprehensive loss. The condensed consolidated balance sheets as of September 30, 2021 and December 31, 2020 do not include liabilities with respect to these license agreements as the Company has not yet generated revenue and the achievement of the milestones is not probable. Indemnification Agreements The Company enters into standard indemnification agreements and/or indemnification sections in other agreements in the ordinary course of business. Pursuant to the agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements and/or sections is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements and/or sections. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it had not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of September 30, 2021 or December 31, 2020 . |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 7. Restructuring In January and May 2020, the Company conducted a reduction in force that resulted in the termination of 45 full-time employees. Accordingly, during the nine months ended September 30, 2020, the Company recorded restructuring charges of $ 3.5 million , which were comprised of termination benefits including severance, benefits and other payroll-related charges. The Company did no t record any restructuring charges during the three months ended September 30, 2020. The following table summarizes the restructuring activity during the three and nine months ended September 30, 2020 and the three months ended March 31, 2021 (in thousands): Accrued Balance at December 31, 2019 $ — Restructuring costs incurred 2,919 Termination benefits paid ( 1,496 ) Balance at March 31, 2020 $ 1,423 Restructuring costs incurred 554 Termination benefits paid ( 920 ) Balance at June 30, 2020 $ 1,057 Restructuring costs incurred — Termination benefits paid ( 863 ) Balance at September 30, 2020 $ 194 Balance at December 31, 2020 $ 8 Restructuring costs incurred — Termination benefits paid ( 8 ) Balance at March 31, 2021 $ — There were no additional restructuring costs incurred or termination benefits paid after March 31, 2021. The following table summarizes the classification of restructuring expense in the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ — $ — $ — $ 2,723 General and administrative — — — 750 Total restructuring expense $ — $ — $ — $ 3,473 During the first quarter of 2020, the Company entered into retention agreements with certain key employees. Under the terms of these agreements, the Company agreed to make three retention payments to each key employee totaling $ 1.6 million in the aggregate if they remained employed at the Company through specified milestones. The first payments of $ 0.7 million in the aggregate were paid upon execution of the retention agreements. The second payments of $ 0.4 million in the aggregate were paid to the key employees upon the closing of the Series D convertible preferred stock financing in November 2020. The third payments of $ 0.5 million in the aggregate were paid to employees in January 2021, including payments to certain employees who are required to remain employed through January 1, 2022 in order to retain the first and third payments. These prepayments are being amortized over the remaining employee service terms under the retention agreements. During the second quarter of 2020, the Company established additional employee bonuses in the aggregate amount of $ 0.4 million for the majority of employees who were not party to a retention agreement. The bonuses became due upon the closing of the Series D financing in November 2020. All amounts owed related to the additional employee bonuses were paid prior to December 31, 2020. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity As of September 30, 2021 , the Company's Certificate of Incorporation (the “Certificate of Incorporation”) authorized the Company to issue 200,000,000 shares of common stock, $ 0.001 par value per share and 5,000,000 shares of undesignated preferred stock, $ 0.001 par value per share. As of December 31, 2020 , the Company’s Fourth Amended and Restated Certificate of Incorporation authorized the Company to issue 115,000,000 shares of common stock $ 0.001 par value per share. Common Stock Reserved The Company had the following shares of common stock reserved for future issuance: September 30, December 31, Series A convertible preferred stock — 3,719,410 Series B convertible preferred stock — 989,299 Series C convertible preferred stock — 2,970,149 Series D convertible preferred stock — 5,988,773 Shares reserved for exercise of outstanding stock options under the 2015 Stock 2,588,796 2,686,120 Shares reserved for exercise of outstanding stock options under the 2021 Stock 414,200 — Shares reserved for future awards under the 2015 Stock Incentive Plan — 790,596 Shares reserved for future awards under the 2021 Stock Incentive Plan 1,300,649 — Shares reserved for future awards under the 2021 Employee Stock Purchase Plan 566,037 — Total common stock reserved 4,869,682 17,144,347 |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | 9. Convertible Preferred Stock Immediately prior to the closing of the IPO, the Company had an aggregate of 155,398,078 shares of convertible preferred stock issued and outstanding which automatically converted into 16,662,011 shares of common stock upon the closing of the IPO. Subsequent to the closing of the IPO, no shares of convertible preferred stock were authorized, issued or outstanding. As of December 31, 2020, the Company’s Series A convertible preferred stock (“Series A Preferred Stock”), Series B convertible preferred stock (“Series B Preferred Stock”), Series C convertible preferred stock (“Series C Preferred Stock”) and Series D convertible preferred stock (“Series D Preferred Stock,” and collectively with the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, the “Convertible Preferred Stock”) consisted of the following (in thousands, except share data): December 31, 2020 Preferred Preferred Carrying Liquidation Common Stock Series A Preferred Stock 57,758,734 57,758,734 $ 16,176 $ 40,284 3,719,410 Series B Preferred Stock 12,500,000 12,500,000 5,700 16,334 989,299 Series C Preferred Stock 37,528,581 37,528,581 16,759 45,457 2,970,149 Series D Preferred Stock 47,610,763 31,740,554 54,456 55,509 5,988,773 155,398,078 139,527,869 $ 93,091 $ 157,584 13,667,631 Cumulative accrued dividends on the Company’s Convertible Preferred Stock consisted of the following (in thousands): December 31, Series A Preferred Stock $ 10,399 Series B Preferred Stock 3,398 Series C Preferred Stock 6,623 Series D Preferred Stock 709 $ 21,129 During the nine months ended September 30, 2021, $ 2.3 million of dividends accrued prior to completion of the IPO. Subsequent to the completion of the IPO, no shares of Convertible Preferred Stock were issued or outstanding and therefore no dividends accrued. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation 2015 Stock Incentive Plan As of December 31, 2020 , there were 3,930,701 shares of common stock authorized for issuance under the 2015 Stock Incentive Plan (the “2015 Plan”) under which the Company could grant equity awards to eligible employees, officers, directors, consultants and advisors. Subsequent to the pricing of the Company’s IPO on February 11, 2021, no further awards were to be made under the 2015 Plan; however, awards outstanding under the 2015 Plan continue to be governed by the 2015 Plan. 2021 Stock Incentive Plan In connection with the IPO, the Company adopted the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. The number of shares of our common stock reserved for issuance under the 2021 Plan is the sum of (1) 849,056 ; plus (2) the number of shares (up to a maximum of 3,529,250 shares) as is equal to the sum of (x) the number of shares of our common stock reserved for issuance under the 2015 Plan that remained available for grant under the 2015 Plan immediately prior to the effectiveness of the registration statement for the IPO, which occurred on February 11, 2021, and (y) the number of shares of our common stock subject to outstanding awards granted under the 2015 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by us at their original issuance price pursuant to a contractual repurchase right; plus (3) an annual increase, to be added on the first day of each fiscal year, commencing on January 1, 2022 and continuing for each fiscal year until, and including, January 1, 2031, equal to the least of (i) 4 % of the number of shares of our common stock outstanding on such date, and (ii) an amount determined by the Company’s board of directors. As of September 30, 2021 , 414,200 shares were reserved for outstanding awards granted under the 2021 Plan and 1,300,649 shares remained available for issuance. 2021 Employee Stock Purchase Plan In connection with the IPO, the Company adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”). Under the 2021 ESPP, the Company is authorized to issue 566,037 shares of our common stock, subject to annual increases, and eligible employees are able to purchase shares of common stock at a specified discount. As of September 30, 2021 , no shares have been issued under the 2021 ESPP and as such, 566,037 shares remained available for issuance under the 2021 ESPP. Restricted Stock A summary of the Company’s restricted stock activity and related information is as follows: Number of Weighted Unvested as of December 31, 2020 52,741 $ 19.10 Vested ( 27,745 ) 16.34 Repurchased ( 777 ) 0.53 Canceled/Forfeited ( 3,488 ) 19.57 Unvested as of September 30, 2021 20,731 $ 23.40 The aggregate fair value of restricted stock awards that vested during the nine months ended September 30, 2021 was $ 0.3 million. The aggregate fair value of restricted stock awards that vested during the nine months ended September 30, 2020 was $ 1.3 million. As of September 30, 2021, total unrecognized compensation cost related to unvested restricted stock awards was approximate ly $ 0.5 million, which is expected to be recognized over a weighted-average period of 0.9 years. Stock Options A summary of the Company’s stock option activity and related information is as follows: Number of Weighted Weighted Aggregate (In years) (In thousands) Outstanding as of December 31, 2020 2,686,120 $ 4.53 9.9 $ 3,781 Granted 568,700 9.83 Exercised ( 26,392 ) 4.40 Cancelled/forfeited ( 225,432 ) 6.43 Outstanding as of September 30, 2021 3,002,996 $ 5.39 9.2 $ 8,499 Exercisable as of September 30, 2021 1,053,711 $ 4.86 9.2 $ 3,323 Vested and expected to vest as of September 30, 2021 3,002,996 $ 5.39 9.2 $ 8,499 As of September 30, 2021, total unrecognized compensation cost related to unvested stock options was approximately $ 8.0 million, which is expected to be recognized over a weighted-average period of 2.9 years. The weighted-average grant-date fair value per share of stock options granted during the nine months ended September 30, 2021 w as $ 5.99 . Stock-Based Compensation Expense The following table presents the components and classification of stock-based compensation expense (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 586 $ 117 $ 1,169 $ 352 General and administrative 450 68 1,277 237 Total stock-based compensation expense $ 1,036 $ 185 $ 2,446 $ 589 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 11. Net Loss per Share The following table sets forth the outstanding shares of common stock equivalents, presented based on amounts outstanding at each period end, that were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended 2021 2020 2021 2020 Series A Preferred Stock — 1,089,785 — 1,089,785 Series B Preferred Stock — 235,849 — 235,849 Series C Preferred Stock — 519,396 — 519,396 Outstanding stock options 3,002,996 15,767 3,002,996 15,767 Unvested restricted stock 20,731 65,480 20,731 65,480 3,023,727 1,926,277 3,023,727 1,926,277 |
License and Collaboration Agree
License and Collaboration Agreement with Regeneron | 9 Months Ended |
Sep. 30, 2021 | |
License And Collaboration Agreement With Regeneron [Abstract] | |
License and Collaboration Agreement with Regeneron | 12. License and Collaboration Agreement with Regeneron Agreement Overview In November 2017, the Company entered into a license and collaboration agreement with Regeneron (the “Regeneron Agreement”) under which Regeneron made an upfront, nonrefundable $ 25.0 million payment to the Company. The parties were to undertake specified activities with respect to the discovery or development of new potential therapies directed to a set of defined collaboration targets. Each party was responsible for its own respective costs and agreed to use commercially reasonable efforts to complete the activities as designated in the agreed-upon research plan. The Company was primarily responsible for the direction and conduct of the research program whereas Regeneron was primarily responsible for the contribution of various technologies and expertise of its own as well as contribution of employees and research services. In October 2020, the parties amended the Regeneron Agreement (the “Amended Agreement”) pursuant to which, among other things, ATOH1, the target of the DB-ATO program, was removed as a collaboration target and the terms and plans for the DB-OTO and AAV.103 programs were modified. The primary responsibilities of each party remain consistent with those under the Regeneron Agreement. In connection with the amendment, the Company issued 10,000,000 shares of Series C Preferred Stock to Regeneron in consideration for its entry into the amendment. Pursuant to the Amended Agreement, Regeneron agreed to pay the Company $ 0.3 million to fund the Company’s ongoing research plan and $ 0.5 million to help secure the services of a contract development and manufacturing organization (the “CDMO Initiation Fee”). The $ 0.5 million payment was creditable against the milestone associated with the initiation of manufacturing to support GLP toxicology studies of DB-OTO. Additionally, Regeneron agreed to reimburse the Company for up to $ 10.5 million of third-party costs related to investigational new drug (“IND”) enabling studies for DB-OTO as such costs are incurred. The Company achieved its first pre-IND milestone of $ 4.4 million and its second pre-IND milestone of $ 1.1 million in November 2020 and October 2021, respectively. Accounting Analysis The Company accounted for the Regeneron Agreement in accordance with FASB ASC Topic ASC 808, Collaborative Arrangements (“ASC 808”), and applied ASC 606, Revenue from Contracts with Customers (“ASC 606”), by analogy. All research activities under the Regeneron Agreement were considered a single performance obligation and the transaction price consisted of the $ 25.0 million upfront payment. Future milestones were considered variable consideration and fully constrained until such time as the achievement of such milestone was considered probable. The Company satisfied its promises under the agreement over time as Regeneron received the benefit of the research services as the services were performed and measured progress towards completion of the performance obligation using an input method that was based on costs incurred. The Amended Agreement increased the transaction price to $ 35.8 million consisting of (i) $ 25.0 million received pursuant to the Regeneron Agreement, (ii) $ 0.3 million received to fund the ongoing research plan, (iii) $ 4.4 million for the first pre-IND milestone achieved in November 2020, $ 0.5 million of which was received as the CDMO Initiation Fee in October 2020, and (iv) $ 10.5 million in reimbursements for third-party costs related to IND-enabling studies for DB-OTO, partially offset by the fair value of the Series C Preferred Stock issued to Regeneron of approximately $ 4.4 million. Future milestones continue to be fully constrained, with the exception of the second pre-IND milestone of $ 1.1 million. The Company continues to satisfy its single performance obligation over time and measures progress towards completion using an input method based on costs incurred. The Company concluded the consideration received under the Regeneron Agreement and the Amended Agreement represented reimbursements of the Company’s cost incurred and should therefore be accounted for as contra-research and development in the Company’s condensed consolidated statements of operations and comprehensive income (loss). Deferred collaboration liability is classified in the condensed consolidated balance sheets based on the expected timing of when the costs will be recognized in the future. The Company recognized $ 2.4 million and $ 0.5 million as contra-research and development expenses for the three months ended September 30, 2021 and 2020, respectively. The Company recognized $ 8.1 million and $ 2.4 million as contra-research and development expenses for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and December 31, 2020 , there was deferred collaboration liability classified in current liabilities of $ 6.5 million and $ 11.0 million, respectively, and classified in long term liabilities of $ 8.5 million and $ 4.2 million, respectively. As of September 30, 2021, and December 31, 2020 , the Company had $ 3.1 million and $ 1.2 million of unbilled accounts receivable due from Regeneron, respectively. Unbilled and billed accounts receivable are classified in accounts receivable from related party on the condensed consolidated balance sheets and relate to reimbursements of third-party costs incurred related to the Company’s IND-enabling study for DB-OTO. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions As of September 30, 2021 , Regeneron held 2,097,314 shares of common stock. As of December 31, 2020 , Regeneron held 12,500,000 shares of Series B Preferred Stock and 14,000,000 shares of Series C Preferred Stock. During the three months ended September 30, 2021 and 2020 , the Company recognized $ 2.4 million and $ 0.5 million as contra-research and development expense, respectively, in its condensed consolidated statements of operations and comprehensive loss based on its progress towards completion of its research activities under the research plan for the Company’s collaboration with Regeneron. During the nine months ended September 30, 2021 and 2020 , the Company recognized $ 8.1 million and $ 2.4 million as contra-research and development expense, respectively, in its condensed consolidated statements of operations and comprehensive loss based on its progress towards completion of its research activities under the research plan for the collaboration. As of September 30, 2021 , the Company had $ 3.1 million of unbilled accounts receivable due from Regeneron. As of December 31, 2020 , the Company had $ 1.2 million of unbilled accounts receivable due from Regeneron. During the three and nine months ended September 30, 2021 , the Company collected $ 1.7 million and $ 5.9 million of reimbursements for third-party costs related to IND-enabling studies for DB-OTO from Regeneron. As of September 30, 2021 and December 31, 2020 , the Company did no t have any amounts due to Regeneron. |
Tax Provision
Tax Provision | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Tax Provision | 14. Tax Provision The Company’s provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items arising in that quarter. The Company’s effective tax rate differs from the U.S. statutory tax rate primarily due to recording a reserve for an uncertain tax position in the current period as well as valuation allowances on its deferred tax assets as it is more likely-than-not that some or all of the Company’s deferred tax assets will not be realized. The effective tax rate for the three months ending September 30, 2021 and the nine months ending September 30, 2021 was ( 11.8 %) and ( 4.7 %), respectively. During both the three and nine months ended September 30, 2021, the Company recorded an income tax expense of $ 1.7 million. There was no income tax expense for the three and nine months ended September 30, 2020. The Company continues to maintain a full valuation allowance for its U.S. federal and state deferred tax assets. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets in the United States. Management reevaluates the positive and negative evidence at each reporting period. Realization of the future tax benefits is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended, certain substantial changes in the Company’s ownership, including a sale of the Company, or significant changes in ownership due to sales of equity, may have limited, or may limit in the future, the amount of net operating loss carryforwards, which could be used annually to offset future taxable income. The Company has not conducted an analysis to determine if an ownership change has occurred. As of September 30, 2021 and 2020, the Company had $ 2.1 million and $ 0 of gross unrecognized tax benefits, respectively. As of September 30, 2021 the gross unrecognized tax benefits included $ 0.9 million of deferred tax asset previously offset by a full valuation allowance. The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. As of September 30, 2021 and 2020, the Company had accrued $ 0.3 million and $ 0 for interest and penalties, respectively. A reconciliation of the gross unrecognized tax benefits is as follows: For the year ended December 31, 2021 2020 Unrecognized tax benefits at the beginning of the period $ — $ — Increases for current tax positions — — Increases for previous tax positions 2,084 — Decreases for previous tax positions — — Unrecognized tax benefits at the end of the period $ 2,084 $ — The Company files its corporate income tax returns in the United States, Australia and Massachusetts. All tax years since the date of incorporation remain open to examination by the major taxing jurisdictions (federal, foreign and state) to which the Company is subject, as carryforward attributes generated in years past may still be adjusted upon examination by the various jurisdictions if they have or will be used in a future period. The Company is not currently under examination by any jurisdiction for any tax year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim consolidated financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). |
Unaudited Interim Condensed Consolidated Financial Information | Unaudited Interim Condensed Consolidated Financial Information The accompanying condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2021 and 2020, the condensed consolidated statements of convertible preferred stock and stockholders’ (deficit) equity for the nine months ended September 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020 are unaudited. The financial data and other information contained in the notes thereto as of and for the three and nine months ended September 30, 2021 and 2020 are also unaudited. The condensed consolidated balance sheet data as of December 31, 2020 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2020. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements, and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s financial position as of September 30, 2021, the results of its operations for the three and nine months ended September 30, 2021 and 2020 and cash flows for the nine months ended September 30, 2021 and 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto. The results for the three and nine months ended September 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021 , or any other interim periods, or any future year or period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of common stock awards prior to the IPO, the estimated cost to perform research which is an input into the measurement of research and development expenses recognized under the Company’s collaboration agreement with Regeneron Pharmaceuticals, Inc. (“Regeneron”), as described below, and the accrual of research and development expenses. Estimates are periodically reviewed considering changes in circumstances, facts and historical experience. Actual results may differ from the Company’s estimates. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash equivalents are short-term, highly liquid investments that are readily convertible into cash, with original maturities of three months or less. Cash equivalents are mainly comprised of corporate debt securities and money market accounts invested in U.S. Treasury securities. Restricted cash is comprised of deposits with a financial institution used to collateralize letters of credit related to the Company’s lease arrangements. Restricted cash is presented as a component of other assets on the condensed consolidated balance sheets. Cash, cash equivalents and restricted cash consisted of the following (in thousands): September 30, 2021 2020 Cash and cash equivalents $ 51,413 $ 5,198 Restricted cash 1,128 1,476 Total cash, cash equivalents and restricted cash as shown on the statement $ 52,541 $ 6,674 Restricted cash decreased by $ 0.3 million during the nine months ended September 30, 2021 due to a reduction in deposits with a financial institution used to collateralize letters of credit related to the Company’s lease arrangements. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. The fair values of the Company’s financial assets and liabilities reflect the Company’s estimate of the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. To the extent 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 condensed consolidated balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. Items measured at fair value on a recurring basis include cash equivalents and available-for-sales securities as of September 30, 2021 and December 31, 2020 . |
Deferred Offering Costs | Deferred Offering Costs The Company capitalizes certain legal, professional, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until the related financings are consummated. After consummation of the equity financing, such costs are reclassified as a reduction to additional paid-in capital generated as a result of the related financing. Should an in-process equity financing be abandoned, the deferred offering costs would be expensed immediately as a charge to operating expenses in the condensed consolidated statements of operations and comprehensive loss. Deferred offering costs are presented as a component of other assets on the condensed consolidated balance sheets. The Company had no deferred offering costs as of September 30, 2021. As of December 31, 2020, the Company capitalized $ 1.6 million of deferred offering costs related to the IPO. |
Income Taxes | Income Taxes The Company applies a two-step process to determine the amount of tax benefit to be recognized, if any. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more likely than not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the condensed consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Derecognition of a tax position that was previously recognized occurs when a company subsequently determines that a tax position no longer meets the more likely than not threshold. To the extent an income tax provision is necessary, the provision for income taxes would include the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Recently Issued Accounting Pronouncement | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases ( Topic 842 ), Amendments to the FASB Accounting Standards Codification ( “ASU 2016-02”), which replaces the existing guidance for leases. ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and a lease liability will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. The guidance is effective for annual reporting periods beginning after December 15, 2021 and interim periods beginning after December 15, 2022, and early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements and related disclosures. While the Company continues to evaluate the impact of adopting the new standard, the Company currently anticipates applying the modified retrospective approach effective January 1, 2022. The Company currently expects to elect the package of practical expedients which allows entities to not reassess (i) whether an arrangement is or contains a lease, (ii) the classification of its leases, and (iii) the accounting for initial direct costs. Further, the Company currently anticipates electing, by class of underlying asset, the short-term lease exception for leases with terms of twelve months or less. In doing so, the Company will not recognize a lease liability or right-of-use asset on its balance sheets for such short-term leases. Finally, the Company currently expects to elect, by class of underlying asset, the practical expedient to not separate lease and non-lease components. The Company expects the impact of adoption to include: (i) the recognition of right-of-use assets and lease liabilities arising from its leases of office and laboratory space; (ii) the derecognition of deferred rent and unamortized tenant incentives; and (iii) new and expanded disclosure requirements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard will be effective for annual reporting periods beginning after December 15, 2021. The Company does not expect that the adoption of ASU 2019-12 will have a material impact on its consolidated financial statements and related disclosures. Refer to Note 2 of the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 for the Company’s summary of recently issued accounting pronouncements that have not yet been adopted. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash consisted of the following (in thousands): September 30, 2021 2020 Cash and cash equivalents $ 51,413 $ 5,198 Restricted cash 1,128 1,476 Total cash, cash equivalents and restricted cash as shown on the statement $ 52,541 $ 6,674 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | The Company measures the following financial assets at fair value on a recurring basis. The fair value of these assets was determined as follows (in thousands): Balance at September 30, 2021 Quoted Prices Significant Significant Cash equivalents: Money market mutual funds $ 47,518 $ 47,518 $ — $ — Total cash equivalents $ 47,518 $ 47,518 $ — $ — Available-for-sale securities: Corporate debt securities $ 36,569 $ — $ 36,569 $ — Commercial paper 24,895 — 24,895 — US Treasury securities 15,866 — 15,866 — Agency bonds 15,148 — 15,148 — Total available-for-sale securities $ 92,477 $ — $ 92,477 $ — Available-for-sale securities, long-term: US Treasury securities $ 28,494 $ — $ 28,494 $ — Total available-for-sale securities, long-term $ 28,494 $ — $ 28,494 $ — Balance at Quoted Prices Significant Significant Cash equivalents: Money market mutual funds $ 7,962 $ 7,962 $ — $ — Corporate debt securities 4,001 — 4,001 — Commercial paper 12,499 — 12,499 — Total cash equivalents $ 24,462 $ 7,962 $ 16,500 $ — Available-for-sale securities: Corporate debt securities $ 1,286 $ — $ 1,286 $ — Commercial paper 19,481 — 19,481 — US Treasury securities 3,027 — 3,027 — Certificates of deposit 2,774 — 2,774 — Total available-for-sale securities $ 26,568 $ — $ 26,568 $ — |
Available-for-sale Securities (
Available-for-sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Securities | The following table summarizes the Company’s available-for-sale securities (in thousands): September 30, 2021 Amortized Gross Gross Fair Value Available-for-sale securities: Corporate debt securities $ 36,570 $ — $ ( 1 ) $ 36,569 Commercial paper 24,890 5 — 24,895 US Treasury securities 15,863 3 — 15,866 Agency bonds 15,142 6 — 15,148 Total available-for-sale securities $ 92,465 $ 13 $ ( 1 ) $ 92,477 Available-for-sale securities, long-term: US Treasury securities $ 28,498 $ 1 $ ( 5 ) $ 28,494 Total available-for-sale securities, long-term $ 28,498 $ 1 $ ( 5 ) $ 28,494 December 31, 2020 Amortized Gross Gross Fair Value Available-for-sale securities: Corporate debt securities $ 1,286 $ — $ — $ 1,286 Commercial paper 19,481 1 ( 1 ) 19,481 US Treasury securities 3,027 — — 3,027 Certificates of deposit 2,775 — ( 1 ) 2,774 Total available-for-sale securities $ 26,569 $ 1 $ ( 2 ) $ 26,568 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued research and development expense $ 3,689 $ 680 Accrued payroll and related expenses 2,171 2,381 Accrued other and other current liabilities 836 557 Accrued professional fees 648 1,854 Equipment financing, current 208 193 $ 7,552 $ 5,665 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Activity | The following table summarizes the restructuring activity during the three and nine months ended September 30, 2020 and the three months ended March 31, 2021 (in thousands): Accrued Balance at December 31, 2019 $ — Restructuring costs incurred 2,919 Termination benefits paid ( 1,496 ) Balance at March 31, 2020 $ 1,423 Restructuring costs incurred 554 Termination benefits paid ( 920 ) Balance at June 30, 2020 $ 1,057 Restructuring costs incurred — Termination benefits paid ( 863 ) Balance at September 30, 2020 $ 194 Balance at December 31, 2020 $ 8 Restructuring costs incurred — Termination benefits paid ( 8 ) Balance at March 31, 2021 $ — |
Summary of Restructuring Expense | The following table summarizes the classification of restructuring expense in the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ — $ — $ — $ 2,723 General and administrative — — — 750 Total restructuring expense $ — $ — $ — $ 3,473 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of Common Stock Reserved for Future Issuance | The Company had the following shares of common stock reserved for future issuance: September 30, December 31, Series A convertible preferred stock — 3,719,410 Series B convertible preferred stock — 989,299 Series C convertible preferred stock — 2,970,149 Series D convertible preferred stock — 5,988,773 Shares reserved for exercise of outstanding stock options under the 2015 Stock 2,588,796 2,686,120 Shares reserved for exercise of outstanding stock options under the 2021 Stock 414,200 — Shares reserved for future awards under the 2015 Stock Incentive Plan — 790,596 Shares reserved for future awards under the 2021 Stock Incentive Plan 1,300,649 — Shares reserved for future awards under the 2021 Employee Stock Purchase Plan 566,037 — Total common stock reserved 4,869,682 17,144,347 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock | As of December 31, 2020, the Company’s Series A convertible preferred stock (“Series A Preferred Stock”), Series B convertible preferred stock (“Series B Preferred Stock”), Series C convertible preferred stock (“Series C Preferred Stock”) and Series D convertible preferred stock (“Series D Preferred Stock,” and collectively with the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, the “Convertible Preferred Stock”) consisted of the following (in thousands, except share data): December 31, 2020 Preferred Preferred Carrying Liquidation Common Stock Series A Preferred Stock 57,758,734 57,758,734 $ 16,176 $ 40,284 3,719,410 Series B Preferred Stock 12,500,000 12,500,000 5,700 16,334 989,299 Series C Preferred Stock 37,528,581 37,528,581 16,759 45,457 2,970,149 Series D Preferred Stock 47,610,763 31,740,554 54,456 55,509 5,988,773 155,398,078 139,527,869 $ 93,091 $ 157,584 13,667,631 |
Schedule of Cumulative Accrued Dividends | Cumulative accrued dividends on the Company’s Convertible Preferred Stock consisted of the following (in thousands): December 31, Series A Preferred Stock $ 10,399 Series B Preferred Stock 3,398 Series C Preferred Stock 6,623 Series D Preferred Stock 709 $ 21,129 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity and related information is as follows: Number of Weighted Unvested as of December 31, 2020 52,741 $ 19.10 Vested ( 27,745 ) 16.34 Repurchased ( 777 ) 0.53 Canceled/Forfeited ( 3,488 ) 19.57 Unvested as of September 30, 2021 20,731 $ 23.40 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity and related information is as follows: Number of Weighted Weighted Aggregate (In years) (In thousands) Outstanding as of December 31, 2020 2,686,120 $ 4.53 9.9 $ 3,781 Granted 568,700 9.83 Exercised ( 26,392 ) 4.40 Cancelled/forfeited ( 225,432 ) 6.43 Outstanding as of September 30, 2021 3,002,996 $ 5.39 9.2 $ 8,499 Exercisable as of September 30, 2021 1,053,711 $ 4.86 9.2 $ 3,323 Vested and expected to vest as of September 30, 2021 3,002,996 $ 5.39 9.2 $ 8,499 |
Schedule of Components and Classification of Stock-Based Compensation Expense | The following table presents the components and classification of stock-based compensation expense (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 586 $ 117 $ 1,169 $ 352 General and administrative 450 68 1,277 237 Total stock-based compensation expense $ 1,036 $ 185 $ 2,446 $ 589 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | The following table sets forth the outstanding shares of common stock equivalents, presented based on amounts outstanding at each period end, that were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended 2021 2020 2021 2020 Series A Preferred Stock — 1,089,785 — 1,089,785 Series B Preferred Stock — 235,849 — 235,849 Series C Preferred Stock — 519,396 — 519,396 Outstanding stock options 3,002,996 15,767 3,002,996 15,767 Unvested restricted stock 20,731 65,480 20,731 65,480 3,023,727 1,926,277 3,023,727 1,926,277 |
Tax Provision (Tables)
Tax Provision (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summarry of Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of the gross unrecognized tax benefits is as follows: For the year ended December 31, 2021 2020 Unrecognized tax benefits at the beginning of the period $ — $ — Increases for current tax positions — — Increases for previous tax positions 2,084 — Decreases for previous tax positions — — Unrecognized tax benefits at the end of the period $ 2,084 $ — |
Nature of the Business - Additi
Nature of the Business - Additional Information (Details) $ / shares in Units, $ in Millions | Feb. 24, 2021USD ($)shares | Feb. 17, 2021$ / sharesshares | Feb. 05, 2021 | Oct. 30, 2020$ / shares | Mar. 31, 2021shares | Sep. 30, 2021USD ($)$ / shares | Dec. 31, 2020$ / shares |
Nature Of Business Disclosure [Line Items] | |||||||
Common stock par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Aggregate proceeds from initial public offering | $ | $ 124.8 | ||||||
Cash, cash equivalents and available-for-sale securities | $ | $ 172.4 | ||||||
Initial Public Offering | |||||||
Nature Of Business Disclosure [Line Items] | |||||||
Number of shares issued and sold | 7,062,000 | ||||||
Stock issued, price per share | $ / shares | $ 18 | ||||||
Underwriters | |||||||
Nature Of Business Disclosure [Line Items] | |||||||
Number of shares issued and sold | 600,000 | ||||||
Common Stock | |||||||
Nature Of Business Disclosure [Line Items] | |||||||
Reverse stock-split, description | On October 30, 2020, the Company’s board of directors approved a 1-for-10 reverse stock split of the Company’s common stock, par value $0.001 per share. On February 5, 2021, the Company’s board of directors approved a 1-for-5.3 reverse stock split of the Company’s common stock. | ||||||
Reverse stock-split ratio | 0.1886 | 0.10 | |||||
Number of shares issued and sold | 7,662,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 51,413 | $ 27,742 | $ 5,198 | |
Restricted cash | 1,128 | 1,476 | ||
Total cash, cash equivalents and restricted cash as shown on the statement of cash flows | $ 52,541 | $ 29,218 | $ 6,674 | $ 20,039 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies [Line Items] | ||
Decrease in restricted cash | $ 300,000 | |
Deferred offering costs | $ 0 | |
Initial Public Offering | ||
Summary of Significant Accounting Policies [Line Items] | ||
Deferred offering costs | $ 1,600,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 92,477 | $ 26,568 |
Available-for-sale securities, long-term | 28,494 | |
Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 47,518 | 24,462 |
Available-for-sale securities | 92,477 | 26,568 |
Available-for-sale securities, long-term | 28,494 | |
Fair Value, Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 47,518 | 7,962 |
Fair Value, Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 16,500 | |
Available-for-sale securities | 92,477 | 26,568 |
Available-for-sale securities, long-term | 28,494 | |
Money Market Funds | Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 47,518 | 7,962 |
Money Market Funds | Fair Value, Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 47,518 | 7,962 |
Corporate debt securities | Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 4,001 | |
Available-for-sale securities | 36,569 | 1,286 |
Corporate debt securities | Fair Value, Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 4,001 | |
Available-for-sale securities | 24,895 | 1,286 |
Commercial paper | Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 12,499 | |
Available-for-sale securities | 24,895 | 19,481 |
Commercial paper | Fair Value, Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Total cash equivalents | 12,499 | |
Available-for-sale securities | 36,569 | 19,481 |
Agency bonds | Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | 15,148 | |
Agency bonds | Fair Value, Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | 15,148 | |
US Treasury securities | Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | 15,866 | 3,027 |
Available-for-sale securities, long-term | 28,494 | |
US Treasury securities | Fair Value, Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | 15,866 | 3,027 |
Available-for-sale securities, long-term | $ 28,494 | |
Certificates of deposit | Fair Value, Measurements | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | 2,774 | |
Certificates of deposit | Fair Value, Measurements | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Available-for-sale securities | $ 2,774 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | $ 0 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 | 0 |
Fair value, assets transfers into level 3, amount | 0 | 0 | 0 |
Fair value, assets transfers out of level 3, amount | $ 0 | $ 0 | $ 0 |
Available-for-Sale Securities -
Available-for-Sale Securities - Summary of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 92,465 | $ 26,569 |
Gross Unrealized Gain | 13 | 1 |
Gross Unrealized Loss | (1) | (2) |
Fair Value | 92,477 | 26,568 |
Noncurrent | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,498 | |
Gross Unrealized Gain | 1 | |
Gross Unrealized Loss | (5) | |
Fair Value | 28,494 | |
Corporate debt securities | Current | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 36,570 | 1,286 |
Gross Unrealized Loss | (1) | |
Fair Value | 36,569 | 1,286 |
Commercial paper | Current | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,890 | 19,481 |
Gross Unrealized Gain | 5 | 1 |
Gross Unrealized Loss | (1) | |
Fair Value | 24,895 | 19,481 |
US Treasury securities | Current | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,863 | 3,027 |
Gross Unrealized Gain | 3 | |
Fair Value | 15,866 | 3,027 |
US Treasury securities | Noncurrent | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,498 | |
Gross Unrealized Gain | 1 | |
Gross Unrealized Loss | (5) | |
Fair Value | 28,494 | |
Agency bonds | Current | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,142 | |
Gross Unrealized Gain | 6 | |
Fair Value | $ 15,148 | |
Certificates of deposit | Current | ||
Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,775 | |
Gross Unrealized Loss | (1) | |
Fair Value | $ 2,774 |
Available-for-Sale Securities_2
Available-for-Sale Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)Investment | Sep. 30, 2021USD ($)Investment | Dec. 31, 2020USD ($)Investment | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of investments in available-for-sale securities in unrealized loss position | Investment | 17 | 17 | 8 |
Available-for-sale securities, unrealized loss position | $ 57,300,000 | $ 57,300,000 | $ 17,100,000 |
Other-than-temporary impairments related to available-for-sale securities in an unrealized loss position | 0 | $ 0 | |
Investments matured | 5 years | ||
Available-for-sale securities, realized gains loss | $ 0 | $ 0 | $ 0 |
Accrued Expenses Other Current
Accrued Expenses Other Current Liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued research and development expense | $ 3,689 | $ 680 |
Accrued payroll and related expenses | 2,171 | 2,381 |
Accrued other and other current liabilities | 836 | 557 |
Accrued professional fees | 648 | 1,854 |
Equipment financing, current | 208 | 193 |
Accrued Expenses and Other Current Liabilities | $ 7,552 | $ 5,665 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) | Apr. 01, 2021USD ($) | Jan. 31, 2021USD ($) | Nov. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | May 31, 2020Employee |
Restructuring Cost And Reserve [Line Items] | |||||||||
Termination of full-time employees | Employee | 45 | ||||||||
Restructuring charges | $ 0 | $ 0 | $ 554,000 | $ 2,919,000 | $ 3,473,000 | ||||
Retention cost | 400,000 | 1,600,000 | |||||||
Termination benefits paid | $ 0 | $ (8,000) | $ (863,000) | $ (920,000) | (1,496,000) | ||||
First Payment Upon Execution of Retention Agreement | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Retention cost | $ 700,000 | ||||||||
Second Payment Upon Closing of Series D Convertible Preferred Stock Financing | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Retention cost | $ 400,000 | ||||||||
Third Payment Upon Execution of Retention Agreement | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Retention cost | $ 500,000 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Activity (Details) - USD ($) | Apr. 01, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 |
Restructuring and Related Activities [Abstract] | ||||||
Balance | $ 8,000 | $ 1,057,000 | $ 1,423,000 | |||
Restructuring charges | $ 0 | 0 | 554,000 | $ 2,919,000 | $ 3,473,000 | |
Termination benefits paid | $ 0 | $ (8,000) | (863,000) | (920,000) | (1,496,000) | |
Balance | $ 194,000 | $ 1,057,000 | $ 1,423,000 | $ 194,000 |
Restructuring - Summary of Re_2
Restructuring - Summary of Restructuring Expense (Details) - USD ($) | Apr. 01, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 0 | $ 554,000 | $ 2,919,000 | $ 3,473,000 |
Research and Development | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | 2,723,000 | ||||
General and Administrative | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 750,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 | Oct. 30, 2020 |
Equity [Abstract] | |||
Common stock, Shares authorized | 200,000,000 | 115,000,000 | |
Common stock, Par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, Shares authorized | 5,000,000 | 0 | |
Preferred stock, Par value | $ 0.001 | $ 0.001 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 4,869,682 | 17,144,347 |
2015 Stock Incentive Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 790,596 | |
Shares reserved for exercise of outstanding stock options | 2,588,796 | 2,686,120 |
2021 Stock Incentive Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 1,300,649 | |
Shares reserved for exercise of outstanding stock options | 414,200 | |
2021 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 566,037 | |
Series A convertible preferred stock | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 3,719,410 | |
Series B convertible preferred stock | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 989,299 | |
Series C convertible preferred stock | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 2,970,149 | |
Series D convertible preferred stock | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 5,988,773 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Feb. 17, 2021 | Dec. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |||
Convertible preferred stock, Shares authorized | 0 | 155,398,078 | |
Conversion of convertible preferred stock into common stock | 16,662,011 | ||
Dividends accrued | $ 2,300,000 | $ 0 | |
Preferred Stock Issued | 0 | 0 | 139,527,869 |
Preferred Stock Outstanding | 0 | 0 | 139,527,869 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Schedule of Convertible Preferred Stock (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Feb. 17, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Temporary Equity [Line Items] | |||||||
Preferred Stock Authorized | 0 | 155,398,078 | |||||
Preferred Stock Issued | 0 | 0 | 139,527,869 | ||||
Preferred Stock Outstanding | 0 | 0 | 139,527,869 | ||||
Carrying Value | $ 93,091 | ||||||
Liquidation Preference | $ 157,584 | ||||||
Common Stock Issuable Upon Conversion | 13,667,631 | ||||||
Series A convertible preferred stock | |||||||
Temporary Equity [Line Items] | |||||||
Preferred Stock Authorized | 0 | 57,758,734 | |||||
Preferred Stock Issued | 0 | 57,758,734 | |||||
Preferred Stock Outstanding | 0 | 57,758,734 | 57,758,734 | 57,758,734 | 57,758,734 | 57,758,734 | |
Carrying Value | $ 16,176 | $ 57,682 | $ 57,682 | $ 57,682 | $ 57,682 | ||
Liquidation Preference | $ 40,284 | ||||||
Common Stock Issuable Upon Conversion | 3,719,410 | ||||||
Series B convertible preferred stock | |||||||
Temporary Equity [Line Items] | |||||||
Preferred Stock Authorized | 0 | 12,500,000 | |||||
Preferred Stock Issued | 0 | 12,500,000 | |||||
Preferred Stock Outstanding | 0 | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | |
Carrying Value | $ 5,700 | $ 24,957 | $ 24,957 | $ 24,957 | $ 24,957 | ||
Liquidation Preference | $ 16,334 | ||||||
Common Stock Issuable Upon Conversion | 989,299 | ||||||
Series C convertible preferred stock | |||||||
Temporary Equity [Line Items] | |||||||
Preferred Stock Authorized | 0 | 37,528,581 | |||||
Preferred Stock Issued | 0 | 37,528,581 | |||||
Preferred Stock Outstanding | 0 | 37,528,581 | 27,528,581 | 27,528,581 | 27,528,581 | 27,528,581 | |
Carrying Value | $ 16,759 | $ 55,005 | $ 55,005 | $ 55,005 | $ 55,005 | ||
Liquidation Preference | $ 45,457 | ||||||
Common Stock Issuable Upon Conversion | 2,970,149 | ||||||
Series D convertible preferred stock | |||||||
Temporary Equity [Line Items] | |||||||
Preferred Stock Authorized | 0 | 47,610,763 | |||||
Preferred Stock Issued | 0 | 31,740,554 | |||||
Preferred Stock Outstanding | 0 | 31,740,554 | |||||
Carrying Value | $ 54,456 | ||||||
Liquidation Preference | $ 55,509 | ||||||
Common Stock Issuable Upon Conversion | 5,988,773 |
Convertible Preferred Stock -_2
Convertible Preferred Stock - Schedule of Cumulative Accrued Dividends on Convertible Preferred Stock (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Temporary Equity [Line Items] | |
Cumulative Accrued Dividends | $ 21,129 |
Series A convertible preferred stock | |
Temporary Equity [Line Items] | |
Cumulative Accrued Dividends | 10,399 |
Series B convertible preferred stock | |
Temporary Equity [Line Items] | |
Cumulative Accrued Dividends | 3,398 |
Series C convertible preferred stock | |
Temporary Equity [Line Items] | |
Cumulative Accrued Dividends | 6,623 |
Series D convertible preferred stock | |
Temporary Equity [Line Items] | |
Cumulative Accrued Dividends | $ 709 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for future issuance | 4,869,682 | 17,144,347 | |
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Aggregate fair value of awards vested | $ 0.3 | $ 1.3 | |
Unrecognized compensation cost related to unvested stock | $ 0.5 | ||
Weighted-average period of unvested stock | 10 months 24 days | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares reserved for outstanding awards granted | 568,700 | ||
Unrecognized compensation cost related to unvested stock | $ 8 | ||
Weighted-average period of unvested stock | 2 years 10 months 24 days | ||
Weighted average grant-date fair value of share options granted | $ 5.99 | ||
2015 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock, authorized for issuance | 3,930,701 | ||
Common stock reserved for future issuance | 790,596 | ||
2015 Stock Incentive Plan | Initial Public Offering | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for future issuance | 3,529,250 | ||
2021 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for future issuance | 1,300,649 | ||
2021 Stock Incentive Plan | Initial Public Offering | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for future issuance | 849,056 | ||
Number of shares reserved for outstanding awards granted | 414,200 | ||
Number of shares remained available for issuance | 1,300,649 | ||
Percentage of number of shares common stock outstanding | 4.00% | ||
2021 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for future issuance | 566,037 | ||
2021 Employee Stock Purchase Plan | Initial Public Offering | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock, authorized for issuance | 566,037 | ||
Number of shares remained available for issuance | 566,037 | ||
Number of shares issued | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Stock Outstanding, Beginning Balance | shares | 52,741 |
Number of Stock, Vested | shares | (27,745) |
Number of Stock, Repurchased | shares | (777) |
Number of Stock, Canceled/Forfeited | shares | (3,488) |
Number of Stock Outstanding, Ending Balance | shares | 20,731 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 19.10 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 16.34 |
Weighted Average Grant Date Fair Value, Repurchased | $ / shares | 0.53 |
Weighted Average Grant Date Fair Value, Canceled/Forfeited | $ / shares | 19.57 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 23.40 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Stock Options, Outstanding as of December 31, 2020 | shares | 2,686,120 | |
Number of Stock Options, Granted | shares | 568,700 | |
Number of Stock Options, Exercised | shares | (26,392) | |
Number of Stock Options, Cancelled/forfeited | shares | (225,432) | |
Number of Stock Options, Outstanding as of September 30, 2021 | shares | 3,002,996 | 2,686,120 |
Number of Stock Options, Exercisable as of September 30, 2021 | shares | 1,053,711 | |
Number of Stock Options, Vested and expected to vest as of September 30, 2021 | shares | 3,002,996 | |
Weighted Average Exercise Price, Outstanding as of December 31, 2020 | $ / shares | $ 4.53 | |
Weighted Average Exercise Price, Granted | $ / shares | 9.83 | |
Weighted Average Exercise Price, Exercised | $ / shares | 4.40 | |
Weighted Average Exercise Price, Cancelled/forfeited | $ / shares | 6.43 | |
Weighted Average Exercise Price, Outstanding as of September 30, 2021 | $ / shares | 5.39 | $ 4.53 |
Weighted Average Exercise Price, Exercisable as of September 30, 2021 | $ / shares | 4.86 | |
Weighted Average Exercise Price, Vested and expected to vest as of September 30, 2021 | $ / shares | $ 5.39 | |
Weighted Average Remaining Contractual Term, Outstanding as of December 31, 2020 | 9 years 2 months 12 days | 9 years 10 months 24 days |
Weighted Average Remaining Contractual Term, Exercisable as of September 30, 2021 | 9 years 2 months 12 days | |
Weighted Average Remaining Contractual Term, Vested and expected to vest as of September 30, 2021 | 9 years 2 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ | $ 8,499 | $ 3,781 |
Aggregate Intrinsic Value, Exercisable as of September 30, 2021 | $ | 3,323 | |
Aggregate Intrinsic Value, Vested and expected to vest as of September 30, 2021 | $ | $ 8,499 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Components and Classification of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 1,036 | $ 185 | $ 2,446 | $ 589 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 586 | 117 | 1,169 | 352 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 450 | $ 68 | $ 1,277 | $ 237 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 3,023,727 | 1,926,277 | 3,023,727 | 1,926,277 |
Outstanding stock options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 3,002,996 | 15,767 | 3,002,996 | 15,767 |
Unvested restricted stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 20,731 | 65,480 | 20,731 | 65,480 |
Series A Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 1,089,785 | 1,089,785 | ||
Series B Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 235,849 | 235,849 | ||
Series C Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 519,396 | 519,396 |
License and Collaboration Agr_2
License and Collaboration Agreement with Regeneron - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2021 | Nov. 30, 2020 | Oct. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Nov. 30, 2017 | |
License And Collaboration Agreement With Regeneron [Line Items] | |||||||||
Upfront nonrefundable payment | $ 25,000,000 | ||||||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||||
Ongoing research plan | $ 300,000 | $ 300,000 | |||||||
CDMO Initiation Fee | 500,000 | ||||||||
Milestone associated payment | $ 4,400,000 | 500,000 | 4,400,000 | ||||||
Upfront payment | 25,000,000 | ||||||||
Increase in transaction price | 35,800,000 | ||||||||
Received regeneron agreement amount | 25,000,000 | ||||||||
Preferred stock value issued | |||||||||
Contra-research and development expense | 2,400,000 | $ 500,000 | 8,100,000 | $ 2,400,000 | |||||
Deferred collaboration liability, current | 6,459,000 | 6,459,000 | 10,968,000 | ||||||
Deferred collaboration liability, long term | 8,459,000 | 8,459,000 | 4,177,000 | ||||||
Unbilled accounts receivable due from related party | 3,100,000 | 3,100,000 | $ 1,200,000 | ||||||
Subsequent Event | |||||||||
License And Collaboration Agreement With Regeneron [Line Items] | |||||||||
Milestone associated payment | $ 1,100,000 | ||||||||
Maximum | |||||||||
License And Collaboration Agreement With Regeneron [Line Items] | |||||||||
Third party costs related to investigational new drug | $ 10,500,000 | $ 10,500,000 | $ 10,500,000 | ||||||
Series C Preferred Stock | |||||||||
License And Collaboration Agreement With Regeneron [Line Items] | |||||||||
Preferred stock, shares issued | 10,000,000 | ||||||||
Preferred stock value issued | $ 4,400,000 | ||||||||
Series C Preferred Stock | Subsequent Event | |||||||||
License And Collaboration Agreement With Regeneron [Line Items] | |||||||||
Preferred stock value issued | $ 1,100,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Share of common stock held from Regeneron | 24,899,200 | 24,899,200 | 521,052 | ||
Shares held from Regeneron | 0 | 0 | 0 | ||
Unbilled accounts receivable due from Regeneron | $ 3,100,000 | $ 3,100,000 | $ 1,200,000 | ||
Amount due from Regeneron | 0 | 0 | $ 0 | ||
Contra-research and development expense | 2,400,000 | $ 500,000 | 8,100,000 | $ 2,400,000 | |
Reimbursements for third-party costs received from Regeneron | $ 1,700,000 | $ 5,900,000 | |||
Regeneron Agreement | |||||
Related Party Transaction [Line Items] | |||||
Share of common stock held from Regeneron | 2,097,314 | 2,097,314 | |||
Series B Preferred Stock | |||||
Related Party Transaction [Line Items] | |||||
Shares held from Regeneron | 12,500,000 | ||||
Series C Preferred Stock | |||||
Related Party Transaction [Line Items] | |||||
Shares held from Regeneron | 14,000,000 |
Tax Provision - Additional Info
Tax Provision - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
U.S. statutory effective tax rate | (11.80%) | (4.70%) | ||
Income tax expense | $ 1,732,000 | $ 0 | $ 1,732,000 | $ 0 |
Unrecognized tax benefits | 2,100,000 | 0 | 2,100,000 | 0 |
Unrecognized tax benefits deferred tax asset previously offset by a full valuation allowance | 900,000 | 900,000 | ||
Unrecognized tax benefits, interest and penalties accrued | $ 300,000 | $ 0 | $ 300,000 | $ 0 |
Tax Provision - Summarry of Rec
Tax Provision - Summarry of Reconciliation of Gross Unrecognized Tax Benefits (Details) - Scenario Forecast $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Contingency [Line Items] | |
Increases for previous tax positions | $ 2,084 |
Unrecognized tax benefits at the end of the period | $ 2,084 |