Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover Abstract | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38905 | |
Entity Registrant Name | NextCure, Inc. | |
Entity Central Index Key | 0001661059 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-5231247 | |
Entity Address, Address Line One | 9000 Virginia Manor Road | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Beltsville | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20705 | |
City Area Code | 240 | |
Local Phone Number | 399-4900 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | NXTC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,626,227 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 36,664 | $ 32,772 |
Marketable securities | 198,672 | 250,676 |
Restricted cash | 39 | 1,706 |
Prepaid expenses and other current assets | 7,661 | 2,824 |
Total current assets | 243,036 | 287,978 |
Property and equipment, net | 14,208 | 15,809 |
Other assets | 581 | 2,857 |
Total assets | 257,825 | 306,644 |
Current liabilities: | ||
Accounts payable | 2,946 | 3,901 |
Accrued liabilities | 4,232 | 4,627 |
Deferred rent, current portion | 198 | 130 |
Term loan, current portion | 1,667 | |
Total current liabilities | 7,376 | 10,325 |
Deferred rent, net of current portion | 2,223 | 792 |
Term loan, net of current portion | 1,806 | |
Total liabilities | 9,599 | 12,923 |
Stockholders' equity | ||
Preferred stock; par value of $0.001 per share; 10,000,000 shares authorized at September 30, 2021 and December 31, 2020, no shares issued and outstanding at September 30, 2021 and December 31, 2020 | ||
Common stock, par value of $0.001 per share; 100,000,000 shares authorized at September 30, 2021 and December 31, 2020; 27,619,763 and 27,568,802 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 28 | 28 |
Additional paid-in capital | 418,414 | 410,551 |
Accumulated other comprehensive (loss) income | (129) | 779 |
Accumulated deficit | (170,087) | (117,637) |
Total stockholders' equity | 248,226 | 293,721 |
Total liabilities and stockholders' equity | $ 257,825 | $ 306,644 |
CONDENSED BALANCE SHEETS - (Par
CONDENSED BALANCE SHEETS - (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
CONDENSED BALANCE SHEETS | ||
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, number of shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, number of shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 27,619,763 | 27,568,802 |
Common stock, shares outstanding | 27,619,763 | 27,568,802 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Revenue from former research and development arrangement | $ 22,378 | |||
Revenue, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | |||
Operating expenses: | ||||
Research and development | $ 13,597 | $ 12,740 | $ 37,928 | 34,448 |
General and administrative | 4,911 | 4,659 | 15,766 | 12,918 |
Total operating expenses | 18,508 | 17,399 | 53,694 | 47,366 |
(Loss) from operations | (18,508) | (17,399) | (53,694) | (24,988) |
Other income, net | 578 | 1,032 | 1,244 | 3,846 |
Net loss | $ (17,930) | $ (16,367) | $ (52,450) | $ (21,142) |
(Loss) earnings per share | ||||
Basic (in dollars per share) | $ (0.65) | $ (0.59) | $ (1.90) | $ (0.77) |
Diluted (in dollars per share) | $ (0.65) | $ (0.59) | $ (1.90) | $ (0.77) |
Weighted average shares outstanding - basic and diluted | ||||
Basic (in shares) | 27,615,038 | 27,547,737 | 27,607,685 | 27,524,350 |
Diluted (in shares) | 27,615,038 | 27,547,737 | 27,607,685 | 27,524,350 |
Comprehensive loss: | ||||
Net loss | $ (17,930) | $ (16,367) | $ (52,450) | $ (21,142) |
Unrealized gain (loss) on marketable securities | 66 | (637) | (908) | 1,298 |
Total comprehensive loss | $ (17,864) | $ (17,004) | $ (53,358) | $ (19,844) |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Balance at the beginning at Dec. 31, 2019 | $ 27 | $ 402,529 | $ (38) | $ (81,034) | $ 321,484 |
Balance at the beginning (in shares) at Dec. 31, 2019 | 27,499,260 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock based compensation | 1,008 | 1,008 | |||
Exercise of stock options | $ 1 | 36 | 37 | ||
Exercise of stock options (in shares) | 17,142 | ||||
Unrealized gain (loss) on marketable securities, net of tax $0 | (505) | (505) | |||
Net loss | 9,733 | 9,733 | |||
Balance at the end at Mar. 31, 2020 | $ 28 | 403,573 | (543) | (71,301) | 331,757 |
Balance at the end (in shares) at Mar. 31, 2020 | 27,516,402 | ||||
Balance at the beginning at Dec. 31, 2019 | $ 27 | 402,529 | (38) | (81,034) | 321,484 |
Balance at the beginning (in shares) at Dec. 31, 2019 | 27,499,260 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Net loss | (21,142) | ||||
Balance at the end at Sep. 30, 2020 | $ 28 | 408,189 | 1,298 | (102,176) | 307,339 |
Balance at the end (in shares) at Sep. 30, 2020 | 27,553,089 | ||||
Balance at the beginning at Mar. 31, 2020 | $ 28 | 403,573 | (543) | (71,301) | 331,757 |
Balance at the beginning (in shares) at Mar. 31, 2020 | 27,516,402 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock based compensation | 2,187 | 2,187 | |||
Exercise of stock options | 3 | 3 | |||
Exercise of stock options (in shares) | 4,248 | ||||
Unrealized gain (loss) on marketable securities, net of tax $0 | 2,478 | 2,478 | |||
Net loss | (14,508) | (14,508) | |||
Balance at the end at Jun. 30, 2020 | $ 28 | 405,763 | 1,935 | (85,809) | 321,917 |
Balance at the end (in shares) at Jun. 30, 2020 | 27,520,650 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock based compensation | 2,372 | 2,372 | |||
Exercise of stock options | 54 | 54 | |||
Exercise of stock options (in shares) | 32,439 | ||||
Unrealized gain (loss) on marketable securities, net of tax $0 | (637) | (637) | |||
Net loss | (16,367) | (16,367) | |||
Balance at the end at Sep. 30, 2020 | $ 28 | 408,189 | 1,298 | (102,176) | 307,339 |
Balance at the end (in shares) at Sep. 30, 2020 | 27,553,089 | ||||
Balance at the beginning at Dec. 31, 2020 | $ 28 | 410,551 | 779 | (117,637) | $ 293,721 |
Balance at the beginning (in shares) at Dec. 31, 2020 | 27,568,802 | 27,568,802 | |||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock based compensation | 2,508 | $ 2,508 | |||
Exercise of stock options | 63 | 63 | |||
Exercise of stock options (in shares) | 35,615 | ||||
Unrealized gain (loss) on marketable securities, net of tax $0 | (600) | (600) | |||
Net loss | (16,533) | (16,533) | |||
Balance at the end at Mar. 31, 2021 | $ 28 | 413,122 | 179 | (134,170) | 279,159 |
Balance at the end (in shares) at Mar. 31, 2021 | 27,604,417 | ||||
Balance at the beginning at Dec. 31, 2020 | $ 28 | 410,551 | 779 | (117,637) | $ 293,721 |
Balance at the beginning (in shares) at Dec. 31, 2020 | 27,568,802 | 27,568,802 | |||
Increase (Decrease) in Stockholders' Deficit | |||||
Net loss | $ (52,450) | ||||
Balance at the end at Sep. 30, 2021 | $ 28 | 418,414 | (129) | (170,087) | $ 248,226 |
Balance at the end (in shares) at Sep. 30, 2021 | 27,619,763 | 27,619,763 | |||
Balance at the beginning at Mar. 31, 2021 | $ 28 | 413,122 | 179 | (134,170) | $ 279,159 |
Balance at the beginning (in shares) at Mar. 31, 2021 | 27,604,417 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock based compensation | 2,787 | 2,787 | |||
Exercise of stock options | 13 | 13 | |||
Exercise of stock options (in shares) | 7,138 | ||||
Unrealized gain (loss) on marketable securities, net of tax $0 | (374) | (374) | |||
Net loss | (17,987) | (17,987) | |||
Balance at the end at Jun. 30, 2021 | $ 28 | 415,922 | (195) | (152,157) | 263,598 |
Balance at the end (in shares) at Jun. 30, 2021 | 27,611,555 | ||||
Increase (Decrease) in Stockholders' Deficit | |||||
Stock based compensation | 2,483 | 2,483 | |||
Exercise of stock options | 9 | 9 | |||
Exercise of stock options (in shares) | 8,208 | ||||
Unrealized gain (loss) on marketable securities, net of tax $0 | 66 | 66 | |||
Net loss | (17,930) | (17,930) | |||
Balance at the end at Sep. 30, 2021 | $ 28 | $ 418,414 | $ (129) | $ (170,087) | $ 248,226 |
Balance at the end (in shares) at Sep. 30, 2021 | 27,619,763 | 27,619,763 |
CONDENSED STATEMENTS OF STOCK_2
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY | ||||||
Unrealized loss on marketable securities, tax | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (52,450) | $ (21,142) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and other | 5,093 | 2,423 |
Stock-based compensation | 7,778 | 5,567 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (4,365) | (690) |
Accounts payable | (955) | (1,675) |
Accrued liabilities | (395) | (1,117) |
Deferred rent | 1,499 | 336 |
Deferred revenue | (22,378) | |
Net cash used in operating activities | (43,795) | (38,676) |
Cash flows from investing activities: | ||
Maturities of marketable securities | 171,037 | 129,169 |
Purchase of marketable securities | (121,900) | (95,992) |
Purchase of property and equipment | (1,535) | (6,152) |
Net cash provided by investing activities | 47,602 | 27,025 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 85 | 94 |
Payments of the term loan | (3,473) | (1,111) |
Net cash used in financing activities | (3,388) | (1,017) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 419 | (12,668) |
Cash, cash equivalents and restricted cash - beginning of period | 36,284 | 39,130 |
Cash, cash equivalents and restricted cash - end of period | 36,703 | 26,462 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | $ 139 | 130 |
Supplemental disclosures of noncash investing and financing activities: | ||
Purchase of property and equipment included in accrued liabilities | $ 134 |
Nature of the Business
Nature of the Business | 9 Months Ended |
Sep. 30, 2021 | |
Nature of the Business | |
Nature of the Business | 1. Nature of the Business Organization NextCure, Inc. (βNextCureβ or the βCompanyβ) was incorporated in Delaware in September 2015 and is headquartered in Beltsville, Maryland. The Company is a clinical-stage biopharmaceutical company committed to discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases by restoring normal immune function. Through its proprietary Functional, Integrated, NextCure Discovery in Immuno-Oncology (βFIND-IOβ) platform, the Company studies various immune cells in order to discover and understand targets and structural components of immune cells and their functional impact in order to develop immunomedicines. Since inception, the Company has devoted substantially all its efforts and financial resources to organizing and staffing the Company, identifying business development opportunities, raising capital, securing intellectual property rights related to the Companyβs product candidates, building and optimizing the Companyβs manufacturing capabilities and conducting discovery, research and development activities for the Companyβs product candidates, discovery programs and its FIND-IO platform. Liquidity The Company has not generated any revenue to date from product sales and does not expect to generate any revenues from product sales in the foreseeable future. Through September 30, 2021, the Company has funded its operations primarily with proceeds from public offerings of its common stock, private placements of its preferred stock and upfront fees received under the Companyβs former agreement with Eli Lilly and Company, which was terminated in March 2020 (see Note 6). The Company expects to incur additional operating losses and negative operating cash flows for the foreseeable future. Risks and Uncertainties COVID-19 In March 2020, the World Health Organization declared the novel coronavirus disease 2019 (βCOVID-19β), outbreak a pandemic. In order to mitigate the spread of COVID-19, governments have imposed unprecedented restrictions on business operations, travel, and gatherings, resulting in a global economic downturn and other adverse economic and societal impacts. The COVID-19 pandemic has also overwhelmed or otherwise led to changes in the operations of many healthcare facilities, including clinical trial sites. However, the Companyβs laboratories have continued operations throughout the pandemic mostly without interruption. The impact of the COVID-19 pandemic (including the impact of emerging variant strains of the COVID-19 virus) on the Companyβs business and financial performance is uncertain and depends on various factors, including the scope and duration of the pandemic, the efficacy and global distribution of vaccines, government restrictions and other actions, including relief measures, implemented to address the impact of the pandemic, and resulting impacts on the financial markets and overall economy. The imposition of βlockdown,β βsocial distancingβ and βshelter in placeβ directives and other restrictions on business operations, travel and gatherings by state and federal governments in the United States, as well as governments in other regions of the world in response to the COVID-19 pandemic, has placed significant strain on the Companyβs clinical trial sites, has raised concerns around monitoring patient safety, and has caused enrollment to slow in the Companyβs clinical trials. Any rise of COVID-19 infection rates, especially in the United States, could continue to negatively affect enrollment going forward. The Company continues to closely monitor the COVID-19 situation and any potential impact to the Companyβs planned activities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies previously disclosed in the Companyβs Annual Report on Form 10-K for the year ended December 31, 2020. Basis of Presentation The unaudited condensed financial statements include the accounts of NextCure and have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (βGAAPβ) and pursuant to the rules and regulations of the Securities and Exchange Commission (βSECβ) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these condensed financial statements should be read in conjunction with the Companyβs audited financial statements and the notes thereto in the Companyβs Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the βAnnual Reportβ). Unaudited Financial Information In the opinion of management, the information furnished reflects certain adjustments, all which are of a normal and recurring nature and are necessary for a fair presentation of the Companyβs financial position as of the reported balance sheet date and of the Companyβs results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim 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 of assets and liabilities, the disclosure of assets and liabilities as of the date of the condensed financial statements, and the reported amounts of revenues and expenses during the reporting periods. Although actual results could differ from those estimates, management does not believe that such differences would be material. Recently Issued Accounting Pronouncements The Company qualifies as an emerging growth company (βEGCβ) as defined under the Jumpstart Our Business Startups Act (the βJOBS Actβ). Using exemptions provided under the JOBS Act provided to EGCs, the Company has elected to defer compliance with new or revised financial accounting standards until it is required to comply with such standards, which is generally consistent with required adoption dates of private companies. In February 2016, the Financial Accounting Standards Board (βFASBβ) issued ASU 2016-02 (Topic 842), Leases (βASC 842β). ASC 842 supersedes the lease recognition requirements in ASC 840, Leases. ASC 842 clarifies the definition of a lease and requires lessees to recognize right-of-use assets and lease liabilities for all leases, including those classified as operating leases under previous lease accounting guidance. For public entities, ASC 842 was effective for fiscal years beginning after December 15, 2018, including interim periods within that year. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASC 842 will be effective for the Company on January 1, 2022. Originally, entities were required to adopt ASC 842 using a modified retrospective transition method. However, in July 2018, the FASB issued ASU 2018-11 (Topic 842), Leases: Targeted Improvements, which provides entities with an additional transition method. Under ASU 2018-11, entities have the option of initially applying ASC 842 at the adoption date, rather than at the beginning of the earliest period presented and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company is currently evaluating the impact of adopting this guidance on the Companyβs financial statements. The Company currently expects that its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon adoption of this standard, which will increase the total assets and total liabilities that it reports relative to such amounts presented prior to adoption. In June 2016, the FASB issued ASU 2016-13, Financial InstrumentsβCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (βASU 2016-13β). ASU 2016-13 will require credit losses to be reported using an expected losses model rather than the incurred losses model that is currently used and will require additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, this standard will require allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 is effective for non-EGCs for fiscal years beginning December 15, 2019, and interim periods within those fiscal years, and will be effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, assuming the Company remains an EGC. The Company adopted this standard early, effective January 1, 2021. The adoption of this standard did not have a material impact on the Companyβs financial statements. The Company considers the applicability and impact of all ASUs issued by the FASB. All other ASUs issued subsequent to the filing of the Companyβs Annual Report were assessed and determined to be either inapplicable or not expected to have a material impact on the Companyβs financial position or results of operations. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Restricted Cash. | |
Restricted Cash | 3. Restricted Cash In August 2021, the Company fully paid the remaining principal balance of $2.4 million of its $5.0 million term loan (the βTerm Loanβ). As a result of this payment, the Company has no restricted cash held in support of the Term Loan. The required Term Loan reserve totaled $0 and $3.5 million as of September 30, 2021 and December 31, 2020, respectively. These amounts are presented in part as restricted cash and in part as other assets on the accompanying condensed balance sheets. The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the condensed statement of cash flows: β β β β β β β β β β September 30, β December 31, (in thousands) 2021 2020 β β β β β β β Cash and cash equivalents β $ 36,664 β $ 32,772 Restricted cash (including $0 and $1,806 in other assets as of September 30, 2021 and December 31, 2020, respectively) β 39 β 3,512 Total β $ 36,703 β $ 36,284 β |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Securities | |
Marketable Securities | 4. Marketable Securities Marketable securities consist of the following: β β β β β β β β β β β β β β β β September 30, 2021 β β β β β Gross β Gross β β β β β Amortized β Unrealized β Unrealized β Estimated (in thousands) Cost Gain Loss Fair Value Corporate bonds β $ 198,801 β $ 43 β $ (172) β $ 198,672 Total β $ 198,801 β $ 43 β $ (172) β $ 198,672 β β β β β β β β β β β β β β β β December 31, 2020 β β β β β Gross β Gross β β β β β Amortized β Unrealized β Unrealized β Estimated (in thousands) Cost Gain Loss Fair Value Corporate bonds β $ 242,900 β $ 854 β $ (75) β $ 243,679 Commercial paper β 6,997 β β β β β 6,997 Total β $ 249,897 β $ 854 β $ (75) β $ 250,676 β β The Company uses the specific identification method when calculating realized gains and losses. For the nine months ended September 30, 2021 and 2020, respectively, the Company recorded $57 thousand and $70 thousand in realized gains on available-for-sale securities, which is included in other income, net on the condensed statements of operations. The Company reviewed all investments which were in a loss position at the respective balance sheet dates, as well as the remainder of the portfolio. The Company has analyzed the unrealized losses and determined that market conditions were the primary factor driving these changes. After analyzing the securities in an unrealized loss position, the portion of these losses that relate to changes in credit quality is insignificant. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell them prior to the end of their contractual terms. Furthermore, the Company does not believe that these securities expose the Company to undue market risk or counterparty credit risk. The following table summarizes maturities of the Companyβs investments available-for-sale as of September 30, 2021 : β β β β β β β β β September 30, 2021 β β β β β Fair (in thousands) Cost Value Maturities: β β β β β β Within 1 year β $ 96,103 β $ 96,114 Between 1 to 2 years β 102,698 β 102,558 Total investments available for sale β $ 198,801 β $ 198,672 β β The Company has classified all its investments available-for-sale, including those with maturities beyond one year, as current assets on the accompanying condensed balance sheets based on the highly liquid nature of these investment securities and because these investment securities are considered available for use in current operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 5. Fair Value Measurements The Company has certain financial assets recorded at fair value, which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. Level 1βQuoted market prices in active markets for identical assets or liabilities. Level 2βInputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. Level 3βUnobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as Level 3. A financial instrumentβs level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following tables set forth the fair value of the Companyβs financial assets by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020: β β β β β β β β β β β β β β β September 30, 2021 β β β β β β β β Significant β β β β β β β β Quoted Prices in β Other β β β β β β β β Active Markets or β Observable β Significant β β β β β Identical Assets β Inputs β Unobservable (in thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalents: β β β β β β β β β β β β Money market funds β $ 21,271 β $ 21,271 β $ β β $ β Marketable securities: β β β β β β β β β β β β Corporate bonds β β 198,672 β β β β β 198,672 β β β Total β $ 219,943 β $ 21,271 β $ 198,672 β $ β β β β β β β β β β β β β β β β β December 31, 2020 β β β β β β β β Significant β β β β β β β β Quoted Prices in β Other β β β β β β β β Active Markets or β Observable β Significant β β β β β Identical Assets β Inputs β Unobservable (in thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalents: β β β β β β β β β β β β Money market funds β $ 11,155 β $ 11,155 β $ β β $ β Marketable securities: β β β β β β β β β β β β Corporate bonds β β 243,679 β β β β β 243,679 β β β Commercial paper β β 6,997 β β β β β 6,997 β β β Total β $ 261,831 β $ 11,155 β $ 250,676 β $ β β β The Company did not transfer any assets measured at fair value on a recurring basis between levels during the three and nine months ended September 30, 2021 and 2020. |
Former Agreement with Eli Lilly
Former Agreement with Eli Lilly and Company | 9 Months Ended |
Sep. 30, 2021 | |
Former Agreement with Eli Lilly and Company | |
Former Agreement with Eli Lilly and Company | 6. Former Agreement with Eli Lilly and Company On November 2, 2018, the Company entered into a multi-year research and development collaboration agreement (the βLilly Agreementβ) with Eli Lilly and Company (βLillyβ), pursuant to which the Company agreed to use its proprietary FIND-IO platform to identify novel oncology targets for additional collaborative research and drug discovery by the Company and Lilly. Effective March 3, 2020, Lilly terminated the Lilly Agreement without cause. The Company recognized revenue under the Lilly Agreement of $22.4 million for the nine months ended September 30, 2020. Effective with the termination of the agreement, no further quarterly research and development support payments are payable to the Company. β |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. Stock-Based Compensation Employee Equity Plans The NextCure, Inc. 2015 Omnibus Incentive Plan (the β2015 Planβ) was adopted in December 2015 and provides for the grant of awards of stock options, restricted stock awards, unrestricted stock awards and restricted stock units to employees, consultants, and directors of the Company. The NextCure, Inc. 2019 Omnibus Incentive Plan (the β2019 Planβ) became effective on May 8, 2019, the date on which the Companyβs Registration Statement on Form S-1 filed in connection with the IPO was declared effective (the βEffective Dateβ). The Companyβs board of directors (the βBoardβ) determined not to make additional awards under the 2015 Plan following the effectiveness of the 2019 Plan. The 2019 Plan provides for the grant of awards of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, other equity-based awards and cash bonus awards to the Companyβs officers, employees, non-employee directors and other key persons (including consultants). The number of shares of common stock reserved for issuance under the 2019 Plan is 2,900,000 plus the number of shares of stock related to awards outstanding under the 2015 Plan that subsequently terminate by expiration or forfeiture, cancellation or otherwise without the issuance of such shares. The number of shares reserved for issuance under the 2019 Plan automatically increase each January 1st during the term of the 2019 Plan by 4% of the number of shares of the Companyβs common stock outstanding on December 31st of the preceding calendar year or such lesser number of shares determined by the Board. As of September 30, 2021, 2,369,673 shares were reserved for future grant under the 2019 Plan. Stock options granted under the 2015 Plan and 2019 Plan (together, the βPlansβ) to employees generally vest over four years and expire after ten years. A summary of stock option activity for awards under the Plans is presented below: β β β β β β β β β β β β β β Options Outstanding and Exercisable β β β β β β β Weighted β β β β β β β Weighted β Average β Aggregate β β β β Average β Remaining β Intrinsic β β Number of β Exercise β Contractual β Value (1) β Shares Price Life (Years) (in thousands) Outstanding as of December 31, 2020 3,112,376 β $ 16.95 8.2 β $ 10,810 Granted β 1,916,450 β $ 11.11 β β β β β Exercised β (50,961) β $ 1.66 β β β β β Forfeited β (433,483) β $ 21.82 β β β β β Outstanding as of September 30, 2021 β 4,544,382 β $ 14.20 β 8.3 β $ 3,606 Exercisable as of September 30, 2021 1,848,180 β $ 12.19 7.2 β $ 3,405 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at September 30, 2021 and December 31, 2020. The weighted average grant date fair value of stock options granted to employees for the nine months ended September 30, 2021 was $7.61. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2021 was $0.3 million. As of September 30, 2021, there was $25.7 million of total unrecognized compensation expense related to unvested options under the Plans that will be recognized over a weighted-average period of approximately 2.9 years. The aggregate grant date fair value of stock options and restricted stock vested during the nine months ended September 30, 2021 and 2020 was approximately $11.9 million and $33.8 million, respectively. Stock-based compensation expense was classified on the statements of operations as follows for the three and nine months ended September 30, 2021 and 2020: β β β β β β β β β β β β β β β β β Three Months Ended β Nine Months Ended β β β September 30, β September 30, β (in thousands) 2021 2020 2021 2020 β Research and development β $ 1,054 β $ 897 β $ 3,068 β $ 2,245 β General and administrative β 1,429 β 1,475 β 4,710 β 3,322 β Total stock-based compensation expense β $ 2,483 β $ 2,372 β $ 7,778 β $ 5,567 β β β The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model using the assumptions in the following table for options issued during the period indicated: β β β β β β β β β β β Nine Months Ended β β β September 30, β β 2021 2020 β Expected term 5.5 - 6.08 years β 5.4 - 6.08 years β Expected volatility 79.7 % β 69.7 - 81.1 % β Risk free interest rate 0.8 - 1.4 % β 0.3 - 1.0 % β Expected dividend yield β % β β % β β β Employee Stock Purchase Plan The NextCure, Inc. 2019 Employee Stock Purchase Plan (the βESPPβ) was approved in May 2019 and provides for certain employees of the Company to purchase shares of Company stock at a discounted price. As of September 30, 2021, 790,680 shares were reserved for purchase under the ESPP. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2021 | |
Net Loss Per Share Attributable to Common Stockholders | |
Net Loss Per Share Attributable to Common Stockholders | 8. Net Loss Per Share Attributable to Common Stockholders Loss per share The computation of basic loss per share is based on the weighted-average number of common shares outstanding, without consideration for dilutive common stock equivalents. The computation of diluted loss per share is based on the weighted-average number of common shares outstanding and dilutive potential common shares, which include shares that may be issued under the stock option plan, as determined using the treasury stock method. The computation for basic and diluted loss per share were as follows (in thousands, except share and per share data): β β β β β β β β β β β β β β β Three Months Ended β Nine months ended β β September 30, β September 30, β 2021 2020 2021 2020 Net loss (Numerator): β β β β β β Net loss - basic and diluted β $ (17,930) β $ (16,367) β $ (52,450) β $ (21,142) β β β β β β β β β β β β β Shares (Denominator): β β β β Weighted-average shares outstanding - basic and diluted β 27,615,038 β 27,547,737 β 27,607,685 β 27,524,350 β β β β β β β β β β β β β Loss per share - basic and diluted β $ (0.65) β $ (0.59) β $ (1.90) β $ (0.77) β β For the three and nine months ended September 30, 2021, all shares of options to purchase shares of the Companyβs common stock were excluded from the computation of diluted net loss per share as the effect would have been anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at period end, from the computation of diluted net loss per share attributable to common stockholders for the period indicated because including them would have had an anti-dilutive effect: β β β β β β β β β September 30, β 2021 2020 Outstanding options to purchase common stock β 4,544,382 β 3,149,641 Total β 4,544,382 β 3,149,641 β |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Taxes | |
Income Taxes | 9. Income Taxes The Company did not record a provision or benefit for income taxes during the three and nine months ended September 30, 2021 and 2020. The Company continues to maintain a full valuation allowance against its deferred tax assets. The Company has evaluated the positive and negative evidence involving its ability to realize its deferred tax assets. Management has considered the Companyβs history of cumulative net losses incurred since inception and its lack of any commercially ready products. It has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Management reevaluates the positive and negative evidence at each reporting period. Under the provisions of Sections 382 and 383 of the Internal Revenue Code (βIRCβ), certain substantial changes in the Companyβs ownership may have limited, or may limit in the future, the amount of net operating loss and research and development credit carryforwards that can be used to reduce future income taxes. We have not performed a detailed analysis to determine whether an ownership change under Section 382 of the IRC occurred. The effect of an ownership change would be the imposition of an annual limitation on the use of losses and credits attributable to periods before the change and could result in a reduction in the total losses and credits available. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the βCARES Actβ) was signed into law. The CARES Act includes various income and payroll tax provisions. The Company has analyzed the tax provisions of the CARES Act and determined they have no significant financial impact to the Companyβs condensed financial statements. On March 11, 2021, the American Rescue Plan Act of 2021 (βARPA 2021β) was signed into law. ARPA 2021 included various income and payroll tax provisions. The Company has analyzed the tax provisions of ARPA 2021 and determined they have no significant financial impact to the Companyβs condensed financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings On September 21, 2020, a putative stockholder class action was filed in the U.S. District Court for the Southern District of New York styled Ye Zhou v. NextCure, Inc., et. al., Case 1:20-cv-0772 (S.D.N.Y.). On February 26, 2021, the Lead Plaintiff filed a consolidated amended complaint that asserts claims against us, certain of our officers and members of our board of directors, and the underwriters in our May 2019 initial public offering and November 2019 underwritten secondary public offering. The complaint alleges that the defendants violated provisions of the Securities Exchange Act of 1934, as amended (the βExchange Actβ), and the Securities Act of 1933, as amended, with respect to statements made regarding our lead product candidate, NC318, and the FIND-IO platform. The complaint seeks unspecified damages on behalf of a purported class of purchasers of our securities between May 8, 2019 and July 14, 2020. Defendants filed a motion to dismiss the consolidated amended complaint on April 27, 2021, and discovery is stayed pending resolution of that motion. On March 24, 2021, a purported shareholder derivative lawsuit was filed in the U.S. District Court for the District of Maryland, Southern Division, styled Zach Liu v. Richman et. al., Case:21-cv-00754, alleging breaches of fiduciary duty by officers and/or directors, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and violations of the Exchange Act and the Securities Act of 1933. The Complaint seeks unspecified damages, attorneysβ fees and costs, declaratory relief, corporate governance changes, and restitution. On May 17, 2021, the Court granted the partiesβ joint motion to stay the derivative lawsuit pending resolution of the Ye Zhou actionβs motion to dismiss. The Company intends to vigorously defend the Ye Zhou and Liu actions and believes these cases are without merit. Based on the Companyβs assessment of the facts underlying these claims, the uncertainty of litigation, and the preliminary stage of these cases, the Company cannot estimate the reasonably possible loss or range of loss that may result from these actions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Presentation and Unaudited Financial Information | Basis of Presentation The unaudited condensed financial statements include the accounts of NextCure and have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (βGAAPβ) and pursuant to the rules and regulations of the Securities and Exchange Commission (βSECβ) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these condensed financial statements should be read in conjunction with the Companyβs audited financial statements and the notes thereto in the Companyβs Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the βAnnual Reportβ). Unaudited Financial Information In the opinion of management, the information furnished reflects certain adjustments, all which are of a normal and recurring nature and are necessary for a fair presentation of the Companyβs financial position as of the reported balance sheet date and of the Companyβs results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim 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 of assets and liabilities, the disclosure of assets and liabilities as of the date of the condensed financial statements, and the reported amounts of revenues and expenses during the reporting periods. Although actual results could differ from those estimates, management does not believe that such differences would be material. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company qualifies as an emerging growth company (βEGCβ) as defined under the Jumpstart Our Business Startups Act (the βJOBS Actβ). Using exemptions provided under the JOBS Act provided to EGCs, the Company has elected to defer compliance with new or revised financial accounting standards until it is required to comply with such standards, which is generally consistent with required adoption dates of private companies. In February 2016, the Financial Accounting Standards Board (βFASBβ) issued ASU 2016-02 (Topic 842), Leases (βASC 842β). ASC 842 supersedes the lease recognition requirements in ASC 840, Leases. ASC 842 clarifies the definition of a lease and requires lessees to recognize right-of-use assets and lease liabilities for all leases, including those classified as operating leases under previous lease accounting guidance. For public entities, ASC 842 was effective for fiscal years beginning after December 15, 2018, including interim periods within that year. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASC 842 will be effective for the Company on January 1, 2022. Originally, entities were required to adopt ASC 842 using a modified retrospective transition method. However, in July 2018, the FASB issued ASU 2018-11 (Topic 842), Leases: Targeted Improvements, which provides entities with an additional transition method. Under ASU 2018-11, entities have the option of initially applying ASC 842 at the adoption date, rather than at the beginning of the earliest period presented and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. The Company is currently evaluating the impact of adopting this guidance on the Companyβs financial statements. The Company currently expects that its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and operating lease liabilities upon adoption of this standard, which will increase the total assets and total liabilities that it reports relative to such amounts presented prior to adoption. In June 2016, the FASB issued ASU 2016-13, Financial InstrumentsβCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (βASU 2016-13β). ASU 2016-13 will require credit losses to be reported using an expected losses model rather than the incurred losses model that is currently used and will require additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, this standard will require allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 is effective for non-EGCs for fiscal years beginning December 15, 2019, and interim periods within those fiscal years, and will be effective for the Company for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, assuming the Company remains an EGC. The Company adopted this standard early, effective January 1, 2021. The adoption of this standard did not have a material impact on the Companyβs financial statements. The Company considers the applicability and impact of all ASUs issued by the FASB. All other ASUs issued subsequent to the filing of the Companyβs Annual Report were assessed and determined to be either inapplicable or not expected to have a material impact on the Companyβs financial position or results of operations. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restricted Cash. | |
Summary of reconciliation cash and cash equivalents and restricted cash per the balance sheet to the statement of cash flows | β β β β β β β β β β September 30, β December 31, (in thousands) 2021 2020 β β β β β β β Cash and cash equivalents β $ 36,664 β $ 32,772 Restricted cash (including $0 and $1,806 in other assets as of September 30, 2021 and December 31, 2020, respectively) β 39 β 3,512 Total β $ 36,703 β $ 36,284 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Securities | |
Schedule of marketable securities | Marketable securities consist of the following: β β β β β β β β β β β β β β β β September 30, 2021 β β β β β Gross β Gross β β β β β Amortized β Unrealized β Unrealized β Estimated (in thousands) Cost Gain Loss Fair Value Corporate bonds β $ 198,801 β $ 43 β $ (172) β $ 198,672 Total β $ 198,801 β $ 43 β $ (172) β $ 198,672 β β β β β β β β β β β β β β β β December 31, 2020 β β β β β Gross β Gross β β β β β Amortized β Unrealized β Unrealized β Estimated (in thousands) Cost Gain Loss Fair Value Corporate bonds β $ 242,900 β $ 854 β $ (75) β $ 243,679 Commercial paper β 6,997 β β β β β 6,997 Total β $ 249,897 β $ 854 β $ (75) β $ 250,676 |
Schedule of available-for-sale maturities | The following table summarizes maturities of the Companyβs investments available-for-sale as of September 30, 2021 : β β β β β β β β β September 30, 2021 β β β β β Fair (in thousands) Cost Value Maturities: β β β β β β Within 1 year β $ 96,103 β $ 96,114 Between 1 to 2 years β 102,698 β 102,558 Total investments available for sale β $ 198,801 β $ 198,672 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Summary of fair value of the Company's financial assets | The following tables set forth the fair value of the Companyβs financial assets by level within the fair value hierarchy as of September 30, 2021 and December 31, 2020: β β β β β β β β β β β β β β β September 30, 2021 β β β β β β β β Significant β β β β β β β β Quoted Prices in β Other β β β β β β β β Active Markets or β Observable β Significant β β β β β Identical Assets β Inputs β Unobservable (in thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalents: β β β β β β β β β β β β Money market funds β $ 21,271 β $ 21,271 β $ β β $ β Marketable securities: β β β β β β β β β β β β Corporate bonds β β 198,672 β β β β β 198,672 β β β Total β $ 219,943 β $ 21,271 β $ 198,672 β $ β β β β β β β β β β β β β β β β β December 31, 2020 β β β β β β β β Significant β β β β β β β β Quoted Prices in β Other β β β β β β β β Active Markets or β Observable β Significant β β β β β Identical Assets β Inputs β Unobservable (in thousands) Total (Level 1) (Level 2) (Level 3) Cash equivalents: β β β β β β β β β β β β Money market funds β $ 11,155 β $ 11,155 β $ β β $ β Marketable securities: β β β β β β β β β β β β Corporate bonds β β 243,679 β β β β β 243,679 β β β Commercial paper β β 6,997 β β β β β 6,997 β β β Total β $ 261,831 β $ 11,155 β $ 250,676 β $ β |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock-Based Compensation | |
Summary of stock option activity | β β β β β β β β β β β β β β Options Outstanding and Exercisable β β β β β β β Weighted β β β β β β β Weighted β Average β Aggregate β β β β Average β Remaining β Intrinsic β β Number of β Exercise β Contractual β Value (1) β Shares Price Life (Years) (in thousands) Outstanding as of December 31, 2020 3,112,376 β $ 16.95 8.2 β $ 10,810 Granted β 1,916,450 β $ 11.11 β β β β β Exercised β (50,961) β $ 1.66 β β β β β Forfeited β (433,483) β $ 21.82 β β β β β Outstanding as of September 30, 2021 β 4,544,382 β $ 14.20 β 8.3 β $ 3,606 Exercisable as of September 30, 2021 1,848,180 β $ 12.19 7.2 β $ 3,405 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at September 30, 2021 and December 31, 2020. |
Summary of stock based compensation expense recorded | β β β β β β β β β β β β β β β β β Three Months Ended β Nine Months Ended β β β September 30, β September 30, β (in thousands) 2021 2020 2021 2020 β Research and development β $ 1,054 β $ 897 β $ 3,068 β $ 2,245 β General and administrative β 1,429 β 1,475 β 4,710 β 3,322 β Total stock-based compensation expense β $ 2,483 β $ 2,372 β $ 7,778 β $ 5,567 β |
Summary of assumptions used in the Black Scholes option pricing model for stock options granted | β β β β β β β β β β β Nine Months Ended β β β September 30, β β 2021 2020 β Expected term 5.5 - 6.08 years β 5.4 - 6.08 years β Expected volatility 79.7 % β 69.7 - 81.1 % β Risk free interest rate 0.8 - 1.4 % β 0.3 - 1.0 % β Expected dividend yield β % β β % β |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Net Loss Per Share Attributable to Common Stockholders | |
Summary of computation of basic and diluted net loss per share attributable to common stockholders | The computation for basic and diluted loss per share were as follows (in thousands, except share and per share data): β β β β β β β β β β β β β β β Three Months Ended β Nine months ended β β September 30, β September 30, β 2021 2020 2021 2020 Net loss (Numerator): β β β β β β Net loss - basic and diluted β $ (17,930) β $ (16,367) β $ (52,450) β $ (21,142) β β β β β β β β β β β β β Shares (Denominator): β β β β Weighted-average shares outstanding - basic and diluted β 27,615,038 β 27,547,737 β 27,607,685 β 27,524,350 β β β β β β β β β β β β β Loss per share - basic and diluted β $ (0.65) β $ (0.59) β $ (1.90) β $ (0.77) |
Summary of shares excluded from the computation of diluted net loss per share | β β β β β β β β β September 30, β 2021 2020 Outstanding options to purchase common stock β 4,544,382 β 3,149,641 Total β 4,544,382 β 3,149,641 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) | 1 Months Ended | ||||
Aug. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Restricted Cash | |||||
Face amount | $ 5,000,000 | ||||
Restricted cash required reserve | 0 | $ 3,500,000 | |||
Reconciliation of cash and cash equivalents and restricted cash per the balance sheet to the statement of cash flows | |||||
Repayment of principal debt balance | $ 2,400,000 | ||||
Cash and cash equivalents | 36,664,000 | 32,772,000 | |||
Restricted cash (including $0 and $1,806 in other assets as of September 30, 2021 and December 31, 2020, respectively) | 39,000 | 3,512,000 | |||
Total | 36,703,000 | 36,284,000 | $ 26,462,000 | $ 39,130,000 | |
Other assets, restricted cash | $ 0 | $ 1,806,000 |
Marketable Securities - (Detail
Marketable Securities - (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Investments | |||
Amortized Cost | $ 198,801 | $ 249,897 | |
Gross Unrealized Gain | 43 | 854 | |
Gross Unrealized Loss | (172) | (75) | |
Estimated Fair Value | 198,672 | 250,676 | |
Gross realized gains | 57 | $ 70 | |
Cost Maturities: | |||
Within 1 year | 96,103 | ||
Between 1 to 2 years | 102,698 | ||
Total investments available for sale | 198,801 | ||
Fair Value Maturities: | |||
Within 1 year | 96,114 | ||
Between 1 to 2 years | 102,558 | ||
Total investments available for sale | 198,672 | ||
Corporate bonds | |||
Investments | |||
Amortized Cost | 198,801 | 242,900 | |
Gross Unrealized Gain | 43 | 854 | |
Gross Unrealized Loss | (172) | (75) | |
Estimated Fair Value | $ 198,672 | 243,679 | |
Commercial Paper | |||
Investments | |||
Amortized Cost | 6,997 | ||
Estimated Fair Value | $ 6,997 |
Fair Value Measurements - (Deta
Fair Value Measurements - (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair value of the Company's financial assets | |||||
Marketable Securities | $ 198,672,000 | $ 198,672,000 | $ 250,676,000 | ||
Assets transferred into level 3 | 0 | $ 0 | 0 | $ 0 | |
Assets transferred out of level 3 | 0 | $ 0 | 0 | $ 0 | |
Fair Value | |||||
Fair value of the Company's financial assets | |||||
Total financial assets | 219,943,000 | 219,943,000 | 261,831,000 | ||
Fair Value | Quoted Prices in Active Markets (Level 1) | |||||
Fair value of the Company's financial assets | |||||
Total financial assets | 21,271,000 | 21,271,000 | 11,155,000 | ||
Fair Value | Significant Other Observable Inputs (Level 2) | |||||
Fair value of the Company's financial assets | |||||
Total financial assets | 198,672,000 | 198,672,000 | 250,676,000 | ||
Money market funds (cash equivalents) | Fair Value | |||||
Fair value of the Company's financial assets | |||||
Money market funds (cash equivalents) | 21,271,000 | 21,271,000 | 11,155,000 | ||
Money market funds (cash equivalents) | Fair Value | Quoted Prices in Active Markets (Level 1) | |||||
Fair value of the Company's financial assets | |||||
Money market funds (cash equivalents) | 21,271,000 | 21,271,000 | 11,155,000 | ||
Corporate bonds | Fair Value | |||||
Fair value of the Company's financial assets | |||||
Marketable Securities | 198,672,000 | 198,672,000 | 243,679,000 | ||
Corporate bonds | Fair Value | Significant Other Observable Inputs (Level 2) | |||||
Fair value of the Company's financial assets | |||||
Marketable Securities | $ 198,672,000 | $ 198,672,000 | 243,679,000 | ||
Commercial Paper | Fair Value | |||||
Fair value of the Company's financial assets | |||||
Marketable Securities | 6,997,000 | ||||
Commercial Paper | Fair Value | Significant Other Observable Inputs (Level 2) | |||||
Fair value of the Company's financial assets | |||||
Marketable Securities | $ 6,997,000 |
Former Agreement with Eli Lil_2
Former Agreement with Eli Lilly and Company (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Collaborative Arrangements | |
Revenue from former research and development arrangement | $ 22,378 |
Lilly Agreement | |
Collaborative Arrangements | |
Revenue from former research and development arrangement | $ 22,400 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands | May 03, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
2015 Plan | ||||
Number of Shares | ||||
Outstanding at the beginning (in shares) | 3,112,376 | |||
Granted (in shares) | 1,916,450 | |||
Exercised (in shares) | (50,961) | |||
Forfeitures (in shares) | (433,483) | |||
Outstanding at the end (in shares) | 4,544,382 | 3,112,376 | ||
Exercisable at the end (in shares) | 1,848,180 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning (in dollars per share) | $ 16.95 | |||
Granted (in dollars per share) | 11.11 | |||
Exercised (in dollars per share) | 1.66 | |||
Forfeited (in dollars per share) | 21.82 | |||
Outstanding at the end (in dollars per share) | 14.20 | $ 16.95 | ||
Exercisable at the end (in dollars per share) | $ 12.19 | |||
Weighted Average Remaining Contractual Life (Years) And Aggregate Intrinsic Value | ||||
Outstanding (in years) | 8 years 3 months 18 days | 8 years 2 months 12 days | ||
Exercisable at the end (in years) | 7 years 2 months 12 days | |||
Outstanding at the beginning (in dollars) | $ 10,810 | |||
Outstanding at the end (in dollars) | 3,606 | $ 10,810 | ||
Exercisable at the end (in dollars) | $ 3,405 | |||
Weighted average grant date fair value per share of stock options granted | $ 7.61 | |||
Aggregate intrinsic value of stock options exercised | $ 300 | |||
Aggregate grant date fair value | 11,900 | $ 33,800 | ||
Share Based Compensation Expense Not Recognized | ||||
Unrecognized compensation cost | $ 25,700 | |||
Compensation expense recognition period | 2 years 10 months 24 days | |||
Omnibus Incentive Plan | ||||
Stock Based Compensation | ||||
Number of shares reserved for issuance under the plan | 2,900,000 | |||
Annual increase in number of share reserved for issuance (as percent) | 4.00% | |||
2015 Plan and 2019 Employee Stock Purchase Plan | ||||
Stock Based Compensation | ||||
Vesting period | 4 years | |||
Expiration period | 10 years | |||
Number of shares reserved for issuance under the plan | 2,369,673 | |||
2019 Employee Stock Purchase Plan | ||||
Stock Based Compensation | ||||
Number of shares reserved for issuance under the plan | 790,680 |
Stock-Based Compensation - St_2
Stock-Based Compensation - 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 | |
Stock based compensation expense | ||||
Total stock-based compensation expense | $ 2,483 | $ 2,372 | $ 7,778 | $ 5,567 |
Research and development | ||||
Stock based compensation expense | ||||
Total stock-based compensation expense | 1,054 | 897 | 3,068 | 2,245 |
General and administrative | ||||
Stock based compensation expense | ||||
Total stock-based compensation expense | $ 1,429 | $ 1,475 | $ 4,710 | $ 3,322 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value assumptions | ||
Expected volatility | 79.70% | |
Minimum | ||
Fair value assumptions | ||
Expected term | 5 years 6 months | 5 years 4 months 24 days |
Expected volatility | 69.70% | |
Risk free interest rate | 0.80% | 0.30% |
Maximum | ||
Fair value assumptions | ||
Expected term | 6 years 29 days | 6 years 29 days |
Expected volatility | 81.10% | |
Risk free interest rate | 1.40% | 1.00% |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Other (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income (loss) (Numerator): | ||||||||
Net loss for basic and diluted | $ (17,930) | $ (17,987) | $ (16,533) | $ (16,367) | $ (14,508) | $ 9,733 | $ (52,450) | $ (21,142) |
Shares (Denominator): | ||||||||
Weighted-average number of common shares outstanding (in shares) | 27,615,038 | 27,547,737 | 27,607,685 | 27,524,350 | ||||
Weighted-average shares for diluted EPS (in shares) | 27,615,038 | 27,547,737 | 27,607,685 | 27,524,350 | ||||
Basic EPS (in dollars per share) | $ (0.65) | $ (0.59) | $ (1.90) | $ (0.77) | ||||
Diluted EPS (in dollars per share) | $ (0.65) | $ (0.59) | $ (1.90) | $ (0.77) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Anti-dilutive effect (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities | ||
Antidilutive securities excluded from computation of diluted net loss per share | 4,544,382 | 3,149,641 |
Option to purchase common stock | ||
Antidilutive Securities | ||
Antidilutive securities excluded from computation of diluted net loss per share | 4,544,382 | 3,149,641 |
Income Taxes - (Details)
Income Taxes - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes | ||||
Provision or benefit from income taxes | $ 0 | $ 0 | $ 0 | $ 0 |