Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 10, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LOGC | |
Entity Registrant Name | LogicBio Therapeutics, Inc. | |
Entity Central Index Key | 0001664106 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 22,494,299 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 27,870 | $ 80,906 |
Short-term investments | 44,666 | |
Prepaid expenses and other current assets | 1,763 | 1,268 |
Total current assets | 74,299 | 82,174 |
Property and equipment, net | 880 | 590 |
Restricted cash | 146 | 146 |
Operating lease right-of-use asset | 1,259 | |
Other assets | 57 | |
TOTAL ASSETS | 76,641 | 82,910 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,413 | 1,168 |
Accrued expenses and other current liabilities | 2,354 | 1,517 |
Total current liabilities | 3,767 | 2,685 |
Other liabilities | 58 | |
Total liabilities | 3,825 | 2,685 |
STOCKHOLDERS' EQUITY: | ||
Common stock, par value of $0.0001 per share; 175,000,000 shares authorized as of March 31, 2019 and December 31, 2018, respectively; 22,348,730 and 22,188,393 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 3 | 3 |
Additional paid-in capital | 107,749 | 107,473 |
Accumulated other comprehensive income (loss) | 3 | (9) |
Accumulated deficit | (34,939) | (27,242) |
Total stockholders' equity | 72,816 | 80,225 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 76,641 | $ 82,910 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 22,348,730 | 22,188,393 |
Common stock, shares outstanding | 22,348,730 | 22,188,393 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING EXPENSES: | ||
Research and development | $ 5,486 | $ 1,455 |
General and administrative | 2,632 | 918 |
Total operating expenses | 8,118 | 2,373 |
LOSS FROM OPERATIONS | (8,118) | (2,373) |
OTHER INCOME, NET: | ||
Interest income, net | 443 | 68 |
Other income, net | 3 | |
Total other income, net | 443 | 71 |
Loss before income taxes | (7,675) | (2,302) |
Income tax provision | (22) | (2) |
Net loss | (7,697) | (2,304) |
Net loss attributable to common stockholders-basic and diluted (Note 9) | $ (7,697) | $ (4,907) |
Net loss per share attributable to common stockholders-basic and diluted | $ (0.34) | $ (2.75) |
Weighted-average common stock outstanding-basic and diluted | 22,313,129 | 1,787,342 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net loss | $ (7,697) | $ (2,304) |
Other comprehensive income: | ||
Unrealized gain on investments | 9 | |
Foreign currency translation adjustment | 3 | 7 |
Comprehensive loss | $ (7,685) | $ (2,297) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2017 | $ (8,599) | $ 4,359 | $ 28,703 | $ 1 | $ 1,035 | $ (14) | $ (9,621) |
Beginning Balance, Shares at Dec. 31, 2017 | 2,976,190 | 19,541,465 | 1,606,360 | ||||
Vesting of restricted stock | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock, Shares | 173,717 | ||||||
Foreign currency translation adjustment | 7 | 7 | |||||
Stock-based compensation expense | 88 | 88 | |||||
Net loss | (2,304) | (2,304) | |||||
Ending Balance at Mar. 31, 2018 | (10,808) | $ 4,359 | $ 28,703 | $ 1 | 1,123 | (7) | (11,925) |
Ending Balance, Shares at Mar. 31, 2018 | 2,976,190 | 19,541,465 | 1,780,077 | ||||
Beginning Balance at Dec. 31, 2018 | 80,225 | $ 3 | 107,473 | (9) | (27,242) | ||
Beginning Balance, Shares at Dec. 31, 2018 | 22,188,393 | ||||||
Vesting of restricted stock | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Vesting of restricted stock, Shares | 160,337 | ||||||
Unrealized gain on investments | 9 | 9 | |||||
Foreign currency translation adjustment | 3 | 3 | |||||
Stock-based compensation expense | 276 | 276 | |||||
Net loss | (7,697) | (7,697) | |||||
Ending Balance at Mar. 31, 2019 | $ 72,816 | $ 3 | $ 107,749 | $ 3 | $ (34,939) | ||
Ending Balance, Shares at Mar. 31, 2019 | 22,348,730 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,697) | $ (2,304) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 39 | 9 |
Net amortization of premiums and discounts on investments | (95) | |
Stock-based compensation expense | 276 | 88 |
Non-cash lease expense | 274 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (498) | 50 |
Other assets | (57) | (1) |
Accounts payable | 201 | (670) |
Accrued expenses and other current liabilities | (675) | (326) |
Net cash used in operating activities | (8,232) | (3,154) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investments | (44,562) | |
Purchase of property and equipment | (247) | (3) |
Net cash used in investing activities | (44,809) | (3) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash provided by financing activities | 0 | 0 |
Effect on foreign exchange rates on cash and cash equivalents | 5 | 7 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (53,036) | (3,150) |
Cash, cash equivalents and restricted cash at beginning of year | 81,052 | 24,575 |
Cash, cash equivalents and restricted cash at end of period | 28,016 | 21,425 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents | 27,870 | 21,425 |
Restricted cash | 146 | |
Cash, cash equivalents and restricted cash at end of period | 28,016 | 21,425 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for taxes | 31 | 102 |
Right-of-use assets obtained in exchange for operating lease obligation | 1,323 | |
Property and equipment purchases in accounts payable and accrued expenses | $ 81 | $ 2 |
NATURE OF BUSINESS AND BASIS OF
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION LogicBio Therapeutics, Inc. (“LogicBio” or the “Company”) was incorporated in 2014 as a Delaware corporation. Its principal offices are in Cambridge, Massachusetts. The Company is a genome editing company focused on developing medicines to durably treat rare diseases in patients with significant unmet medical need, using GeneRide, its proprietary technology platform. GeneRide technology is designed to precisely and stably integrate corrective genes into a patient’s genome to provide a durable therapeutic effect. The Company has demonstrated proof of concept of its therapeutic platform in animal models for a number of diseases and is focusing on its lead product candidate, LB-001, On October 23, 2018, the Company completed an initial public offering (“IPO”) in which the Company issued and sold 8,050,000 shares of its common stock, including 1,050,000 shares pursuant to the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $10.00 per share, for aggregate gross proceeds of $80,500. The Company received approximately $72,300 in net proceeds after deducting underwriting discounts and commissions and offering costs. Upon the closing of the IPO, all outstanding shares of convertible preferred stock automatically converted into 11,789,775 shares of common stock at the applicable conversion ratio then in effect. Subsequent to the closing of the IPO, there were no shares of convertible preferred stock outstanding. Management believes that the Company’s existing cash, cash equivalents and investments will allow the Company to continue its operations through 2020. In the absence of a significant source of recurring revenue, the continued viability of the Company beyond that point is dependent on its ability to continue to raise additional capital to finance its operations. There can be no assurance that the Company will be able to obtain sufficient capital to cover its costs on acceptable terms, if at all. The accompanying unaudited condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. 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 The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary for a fair statement of the Company’s financial position as of March 31, 2019, consolidated results of operations for the three months ended March 31, 2019 and 2018 and cash flows for the three months ended March 31, 2019 and 2018. Such adjustments are of a normal and recurring nature. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2019. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements and the notes thereto, which are included in the Company’s Annual Report on Form 10-K Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Leases (“ASC 842”), using the modified retrospective method and utilized the effective date as its date of initial application, with prior periods presented in accordance with the previous guidance under ASC 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Most leases with a term greater than one year are recognized on the balance sheet as a right-of-use non-current Operating lease liabilities and their corresponding right-of-use right-of-use In accordance with ASC 842, components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease non-components in-substance non-components) non-lease Although separation of lease and non-lease non-lease non-lease non-lease Investments The Company determines the appropriate classification of its investments in debt securities at the time of purchase. All of the Company’s securities are classified as available-for-sale Available-for-sale Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, No. 2016-02 2019-01, Leases No. 2019-01”). No. 2019-01 In adopting Topic 842, the Company elected to utilize the available package of practical expedients permitted under the transition guidance within the new standard, which does not require the reassessment of the following: i) whether existing or expired arrangements are or contain a lease, ii) the lease classification of existing or expired leases, and iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. Additionally, the Company made an accounting policy election to keep leases with a term of 12 months or less off its balance sheet. Adoption of this standard resulted in the recording of operating lease liabilities and a right-of-use right-of-use Recently Issued Accounting Pronouncements There have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2019, as compared to the recent accounting pronouncements described in Note 2 of the Company’s Annual Report on Form 10-K |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
FAIR VALUE MEASUREMENTS | 3. FAIR VALUE MEASUREMENTS The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Quoted Prices in Significant Other Significant Other Active Markets Observable Observable for Identical Inputs Inputs Description March 31, 2019 Assets (Level 1) (Level 2) (Level 3) Assets Sweep bank account $ 2,305 $ 2,305 $ — $ — Money market funds 24,963 24,963 — — U.S. Treasury securities 44,666 44,666 — — Total financial assets $ 71,934 $ 71,934 $ — $ — Quoted Prices in Significant Other Significant Other Active Markets Observable Observable for Identical Inputs Inputs Description December 31, 2018 Assets (Level 1) (Level 2) (Level 3) Assets Sweep bank account $ 831 $ 831 $ — $ — Money market funds 79,212 79,212 — — Total financial assets $ 80,043 $ 80,043 $ — $ — The Company classifies its money market funds and U.S. Treasury securities as Level 1 assets under the fair value hierarchy as these assets have been valued using quoted market prices in active markets without any valuation adjustment. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2019 | |
INVESTMENTS | 4. INVESTMENTS The following table summarizes the Company’s investments, which are considered available-for-sale March 31, 2019 Cost Gross Gross Fair U.S. Treasury securities $ 44,657 $ 9 $ — $ 44,666 Total $ 44,657 $ 9 $ — $ 44,666 Certain short-term debt securities with original maturities of less than 90 days are included in cash and cash equivalents on the condensed consolidated balance sheet and are not included in the table above. As of March 31, 2019, all investments have contractual maturities within one year. The Company had no investments as of December 31, 2018. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2019 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities at March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Accrued compensation and benefits $ 281 $ 709 Accrued professional services 579 585 Lease liabilities 1,201 — Other 293 223 Total accrued expenses and other current liabilities $ 2,354 $ 1,517 Accrued compensation and benefits consists primarily of accrued bonuses and accrued vacation. Accrued professional services consists primarily of consulting services, legal services and services provided by contract research organizations (“CRO”) and contract manufacturing organizations (“CMO”). |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 3 Months Ended |
Mar. 31, 2019 | |
CONVERTIBLE PREFERRED STOCK | 6. CONVERTIBLE PREFERRED STOCK Series A convertible preferred stock and Series B convertible preferred stock is collectively referred to as “Preferred Stock.” On October 23, 2018, upon the closing of the Company’s IPO, all outstanding shares of Preferred Stock converted into 11,789,775 shares of the Company’s common stock. As such, there were no outstanding shares of Preferred Stock as of March 31, 2019 and December 31, 2018. The rights and privileges of the preferred stockholders were as follows: Conversion one-for-1.90993 non-Qualified Liquidation Preference Dividends: Voting Rights: |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
STOCK-BASED COMPENSATION | 7. STOCK-BASED COMPENSATION Equity Incentive Plans In December 2014, the Company adopted the LogicBio Therapeutics, Inc. 2014 Equity Incentive Plan, as amended (the “2014 Plan”), for the issuance of stock options and other stock-based awards. In October 2018, the Company’s 2018 Equity Incentive Plan (the “2018 Plan”) became effective and as a result, no further awards will be made under the 2014 Plan. The 2018 Plan was established to provide equity-based ownership opportunities for employees and directors, as well as outside consultants and advisors. The 2018 Plan authorized up to 1,183,214 of shares of the Company’s common stock to be issued. In addition, any previously granted awards under the 2014 Plan will remain outstanding in accordance with their respective terms. Under the 2018 Plan, there is an annual increase on January 1 of each year from 2019 until 2028, by the lesser of (i) 4% of the number of shares of common stock outstanding on December 31 of the prior year, and (ii) an amount determined by the Board. On January 1, 2019, the Company increased the number of shares available for future grant under the 2018 Plan. At March 31, 2019, there were 1,286,336 shares available for future grant under the 2018 Plan. Total stock-based compensation expense recorded as research and development and general and administrative expenses, respectively, for employees, directors and non-employees Three Months Ended March 31, 2019 2018 Research and development $ 155 $ 48 General and administrative 121 40 Total stock-based compensation expense $ 276 $ 88 During the three months ended March 31, 2019 and 2018, the Company granted options to purchase 79,123 and 120,121 shares of common stock, respectively. The Company recorded stock-based compensation expense for options granted of $210 and $31 during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 and 2018, there were 2,429,562 and 1,521,184 options outstanding, respectively. The weighted-average grant date fair value per share of options granted during the three months ended March 31, 2019 and 2018 was $6.03 and $0.46, respectively. As of March 31, 2019 and 2018, there was $5,003 and $403 of unrecognized stock-based compensation expense related to unvested stock options to be recognized over a period of 2.2 and 2.3 years, respectively. During the three months ended March 31, 2019 and 2018, the Company did not grant any shares of restricted stock. The Company recorded stock-based compensation expense for restricted stock granted of $66 and $57 during the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 and 2018, there were 724,383 and 1,260,892 shares of unvested restricted stock outstanding, respectively. As of March 31, 2019 and 2018, there was $463 and $344 of unrecognized stock-based compensation expense related to unvested restricted stock to be recognized over a period of 0.7 and 1.6 years, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
INCOME TAXES | 8. INCOME TAXES During the three months ended March 31, 2019 and the year ended December 31, 2018, the Company maintained a full valuation allowance on federal and state deferred tax assets since management does not forecast the Company to be in a profitable position in the near future. The income tax provision within the condensed consolidated statements of operations related to tax expense of the wholly owned foreign subsidiary, LogicBio Therapeutics Research Ltd. |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
LOSS PER SHARE | 9. LOSS PER SHARE Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding, without consideration to common stock equivalents: Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (7,697 ) $ (2,304 ) Less: accruals of dividends of Preferred Stock — (2,603 ) Net loss attributable to common stockholders—basic and diluted $ (7,697 ) $ (4,907 ) Denominator: Weighted-average common stock outstanding 22,313,129 1,787,342 Net loss per share attributable to common stockholders—basic and diluted $ (0.34 ) $ (2.75 ) The Company’s potentially dilutive shares, which include outstanding Preferred Stock and stock options as well as unvested restricted stock, are considered to be common stock equivalents and are only included in the calculation of diluted net loss when their effect is dilutive. The common stock equivalent computation for Preferred Stock uses the applicable conversion rate then in effect for any outstanding shares of Preferred Stock. The Company excluded the following potential common stock equivalents from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect for the three months ended March 31, 2019 and 2018: March 31, March 31, 2019 2018 Preferred Stock — 11,789,775 Unvested restricted stock 724,383 1,260,892 Options to purchase common stock 2,429,562 1,521,184 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
LEASES | 10. LEASES The Company has historically entered into lease arrangements for its facilities and certain equipment. As of March 31, 2019, the Company had three operating leases with required future minimum payments. In applying the transition guidance under ASC 842, the Company determined the classification of these leases to be operating leases and recorded a right-of-use asset and lease liabilities as of the effective date. The Company’s leases generally do not include termination or purchase options. From time to time, leases may include options to renew the lease after the expiration of the initial lease term. A renewal period is included in the lease term only when it reasonably certain that the Company will exercise such renewal options. As of March 31, 2019, no renewal options existed that the Company felt were reasonably certain of being exercised. Operating Leases In December 2018, the Company entered into an operating lease for laboratory and office space in Cambridge, Massachusetts for a 14-month The following table contains a summary of the lease costs recognized under Topic 842 and other information pertaining to the Company’s operating leases for the three months ended March 31, 2019: Operating leases Three Months Ended Lease cost Operating lease cost $ 274 Variable lease cost 42 Total lease cost $ 316 Other quarterly lease information Operating cash flows used for operating leases $ 199 Operating lease liabilities arising from obtaining right-of-use $ 1,323 Other operating lease information As of March 31, 2019 Operating lease liabilities—short term $ 1,201 Operating lease liabilities—long term $ 58 Weighted average remaining lease term 1.1 years Weighted average discount rate 7.04 % The variable lease costs for the quarter ended March 31, 2019 include common area maintenance and other operating charges. As the Company’s leases do not provide an implicit rate, the Company utilized its incremental borrowing rate based on what we would normally pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments at the commencement date in determining the present value of lease payments. As of March 31, 2019, the Company classified its short term and long term operating lease liabilities within accrued expenses and other current liabilities and other liabilities, respectively. Future minimum lease payments under the Company’s operating leases as of March 31, 2019 and December 31, 2018, were as follows: Maturity of lease liabilities As of As of (in thousands) December 31, 2018 March 31, 2019 2019 $ 1,028 $ 936 2020 223 377 Thereafter — — Total lease payments $ 1,251 $ 1,313 Less: imputed interest (54 ) Total operating lease liabilities at March 31, 2019 $ 1,259 |
RELATED PARTIES
RELATED PARTIES | 3 Months Ended |
Mar. 31, 2019 | |
RELATED PARTIES | 11. RELATED PARTIES From time to time, the Company is or has been party to consulting service agreements with each of its three founders. Under the terms of each agreement, the Company pays an annual fee of $68 for research and development consulting services. For the three months ended March 31, 2019 and 2018, the Company has made payments totaling $51 and $34, respectively, under these consulting service agreements. In addition, each founder receives $5 annually for their participation on the scientific advisory board (the “SAB”), beginning in 2018. Each founder has also received stock options for their services as either a member of the Board or member of the SAB. In March 2017, the Company subleased to an affiliate certain space in Tel Aviv, Israel, through June 2018. For the three months ended March 31, 2018, the Company recognized income of $13 in other income, net. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements and the notes thereto, which are included in the Company’s Annual Report on Form 10-K |
Leases | Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Leases (“ASC 842”), using the modified retrospective method and utilized the effective date as its date of initial application, with prior periods presented in accordance with the previous guidance under ASC 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Most leases with a term greater than one year are recognized on the balance sheet as a right-of-use non-current Operating lease liabilities and their corresponding right-of-use right-of-use In accordance with ASC 842, components of a lease should be split into three categories: lease components (e.g., land, building, etc.), non-lease non-components in-substance non-components) non-lease Although separation of lease and non-lease non-lease non-lease non-lease |
Investments | Investments The Company determines the appropriate classification of its investments in debt securities at the time of purchase. All of the Company’s securities are classified as available-for-sale Available-for-sale |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, No. 2016-02 2019-01, Leases No. 2019-01”). No. 2019-01 In adopting Topic 842, the Company elected to utilize the available package of practical expedients permitted under the transition guidance within the new standard, which does not require the reassessment of the following: i) whether existing or expired arrangements are or contain a lease, ii) the lease classification of existing or expired leases, and iii) whether previous initial direct costs would qualify for capitalization under the new lease standard. Additionally, the Company made an accounting policy election to keep leases with a term of 12 months or less off its balance sheet. Adoption of this standard resulted in the recording of operating lease liabilities and a right-of-use right-of-use |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements There have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2019, as compared to the recent accounting pronouncements described in Note 2 of the Company’s Annual Report on Form 10-K |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Quoted Prices in Significant Other Significant Other Active Markets Observable Observable for Identical Inputs Inputs Description March 31, 2019 Assets (Level 1) (Level 2) (Level 3) Assets Sweep bank account $ 2,305 $ 2,305 $ — $ — Money market funds 24,963 24,963 — — U.S. Treasury securities 44,666 44,666 — — Total financial assets $ 71,934 $ 71,934 $ — $ — Quoted Prices in Significant Other Significant Other Active Markets Observable Observable for Identical Inputs Inputs Description December 31, 2018 Assets (Level 1) (Level 2) (Level 3) Assets Sweep bank account $ 831 $ 831 $ — $ — Money market funds 79,212 79,212 — — Total financial assets $ 80,043 $ 80,043 $ — $ — |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Investments | The following table summarizes the Company’s investments, which are considered available-for-sale March 31, 2019 Cost Gross Gross Fair U.S. Treasury securities $ 44,657 $ 9 $ — $ 44,666 Total $ 44,657 $ 9 $ — $ 44,666 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities at March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Accrued compensation and benefits $ 281 $ 709 Accrued professional services 579 585 Lease liabilities 1,201 — Other 293 223 Total accrued expenses and other current liabilities $ 2,354 $ 1,517 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense recorded as research and development and general and administrative expenses, respectively, for employees, directors and non-employees Three Months Ended March 31, 2019 2018 Research and development $ 155 $ 48 General and administrative 121 40 Total stock-based compensation expense $ 276 $ 88 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Computation of Basic and Diluted Net Loss Per Share | Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding, without consideration to common stock equivalents: Three Months Ended March 31, 2019 2018 Numerator: Net loss $ (7,697 ) $ (2,304 ) Less: accruals of dividends of Preferred Stock — (2,603 ) Net loss attributable to common stockholders—basic and diluted $ (7,697 ) $ (4,907 ) Denominator: Weighted-average common stock outstanding 22,313,129 1,787,342 Net loss per share attributable to common stockholders—basic and diluted $ (0.34 ) $ (2.75 ) |
Computation of Potentially Anti-Dilutive Securities | The Company excluded the following potential common stock equivalents from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect for the three months ended March 31, 2019 and 2018: March 31, March 31, 2019 2018 Preferred Stock — 11,789,775 Unvested restricted stock 724,383 1,260,892 Options to purchase common stock 2,429,562 1,521,184 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Lease Costs | The following table contains a summary of the lease costs recognized under Topic 842 and other information pertaining to the Company’s operating leases for the three months ended March 31, 2019: Operating leases Three Months Ended Lease cost Operating lease cost $ 274 Variable lease cost 42 Total lease cost $ 316 Other quarterly lease information Operating cash flows used for operating leases $ 199 Operating lease liabilities arising from obtaining right-of-use $ 1,323 Other operating lease information As of March 31, 2019 Operating lease liabilities—short term $ 1,201 Operating lease liabilities—long term $ 58 Weighted average remaining lease term 1.1 years Weighted average discount rate 7.04 % |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under the Company’s operating leases as of March 31, 2019 and December 31, 2018, were as follows: Maturity of lease liabilities As of As of (in thousands) December 31, 2018 March 31, 2019 2019 $ 1,028 $ 936 2020 223 377 Thereafter — — Total lease payments $ 1,251 $ 1,313 Less: imputed interest (54 ) Total operating lease liabilities at March 31, 2019 $ 1,259 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 23, 2018USD ($)$ / sharesshares |
Organization And Nature Of Business [Line Items] | |
Number of common shares sold | 1,050,000 |
Conversion of preferred stock shares into common stock shares | 11,789,775 |
Series B Convertible Preferred Stock [Member] | |
Organization And Nature Of Business [Line Items] | |
Convertible preferred stock outstanding | 0 |
IPO [Member] | |
Organization And Nature Of Business [Line Items] | |
Number of common shares sold | 8,050,000 |
Stock issued, price per share | $ / shares | $ 10 |
Proceeds from issuance of common stock | $ | $ 80,500 |
Proceeds after underwriting discounts and commissions and offering costs | $ | $ 72,300 |
Conversion of preferred stock shares into common stock shares | 11,789,775 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Significant Accounting Policies [Line Items] | |
Operating lease liabilities | $ 1,259 |
Operating lease right-of-use asset | 1,259 |
Accounting Standards Update 2016-02 [Member] | |
Significant Accounting Policies [Line Items] | |
Operating lease liabilities | 210 |
Operating lease right-of-use asset | $ 210 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | $ 71,934 | $ 80,043 |
U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | 44,666 | |
Sweep Bank Account [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | 2,305 | 831 |
Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | 24,963 | 79,212 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | 71,934 | 80,043 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | 44,666 | |
Fair Value, Inputs, Level 1 [Member] | Sweep Bank Account [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | 2,305 | 831 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total financial assets | $ 24,963 | $ 79,212 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Cost Basis | $ 44,657 | |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | 0 | |
Fair Value | 44,666 | $ 0 |
U.S. Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Cost Basis | 44,657 | |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 44,666 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments | $ 44,666 | $ 0 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued compensation and benefits | $ 281 | $ 709 |
Accrued professional services | 579 | 585 |
Lease liabilities | 1,201 | |
Other | 293 | 223 |
Total accrued expenses and other current liabilities | $ 2,354 | $ 1,517 |
Convertible Preferred Stock - C
Convertible Preferred Stock - Convertible Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Conversion of preferred stock shares into common stock shares | 11,789,775 | ||
Common stock conversion ratio | 52.35% | ||
Shares issued price per share | $ 1.4933 | ||
Conversion price per share | $ 0.78186 | ||
Minimum voting power percentage upon liquidation | 50.00% | ||
Preferred stock accrued dividend rate percentage | 8.00% | ||
Dividends declared | $ 0 | ||
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock accrued dividend rate percentage upon liquidation | 40.00% | ||
IPO [Member] | |||
Class of Stock [Line Items] | |||
Conversion of preferred stock shares into common stock shares | 11,789,775 | ||
Convertible preferred stock shares outstanding | 0 | 0 | |
IPO [Member] | Minimum [Member] | |||
Class of Stock [Line Items] | |||
Stockholders approval percentage | 60.00% |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Related Costs Share based Payments - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Oct. 31, 2018 | |
2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 1,183,214 | |||
Percentage of shares issued on common stock outstanding | 4.00% | |||
Number of shares available for future grant | 1,286,336 | |||
Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 79,123 | 120,121 | ||
Stock- based compensation expense for options granted | $ 276 | $ 88 | ||
Plans | Options to Purchase Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock- based compensation expense for options granted | 210 | 31 | ||
Plans | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock- based compensation expense for options granted | $ 66 | $ 57 | ||
Unrecognized compensation cost, recognition period | 8 months 12 days | 1 year 7 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | ||
Stock options outstanding, unvested | 724,383 | 1,260,892 | ||
Unrecognized compensation cost | $ 463 | $ 344 | ||
2014 Plan | Options to Purchase Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant-date fair values of options granted | $ 6.03 | $ 0.46 | ||
Unrecognized compensation cost, recognition period | 2 years 2 months 12 days | 2 years 3 months 18 days | ||
Unrecognized compensation cost | $ 5,003 | $ 403 | ||
Stock options outstanding | 2,429,562 | 1,521,184 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - Plans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 276 | $ 88 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 155 | 48 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 121 | $ 40 |
Loss Per Share - Computation of
Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss | $ (7,697) | $ (2,304) |
Less: accruals of dividends of Preferred Stock | (2,603) | |
Net loss attributable to common stockholders - basic and diluted | $ (7,697) | $ (4,907) |
Denominator: | ||
Weighted - average common stock outstanding | 22,313,129 | 1,787,342 |
Net loss per share attributable to common stockholders - basic and diluted | $ (0.34) | $ (2.75) |
Loss Per Share - Computation _2
Loss Per Share - Computation of Potentially Anti-Dilutive Securities (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Preferred Stock | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities excluded from computation of diluted net loss per common share | 11,789,775 | |
Restricted Stock | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities excluded from computation of diluted net loss per common share | 724,383 | 1,260,892 |
Options to Purchase Common Stock | ||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential dilutive securities excluded from computation of diluted net loss per common share | 2,429,562 | 1,521,184 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended |
Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Number of operating leases | 3 | |
Restricted cash | $ 146 | $ 146 |
Massachusetts | ||
Operating lease expiration date | 2020-03 | |
Operating lease expiration period | 14 months |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating lease cost | $ 274 |
Variable lease cost | 42 |
Total lease cost | 316 |
Operating cash flows used for operating leases | 199 |
Operating lease liabilities arising from obtaining right-of-use assets | 1,323 |
Operating lease liabilities-short term | 1,201 |
Operating lease liabilities-long term | $ 58 |
Weighted average remaining lease term | 1 year 1 month 6 days |
Weighted average discount rate | 7.04% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
2019 | $ 936 | $ 1,028 |
2020 | 377 | 223 |
Thereafter | 0 | 0 |
Total lease payments | 1,313 | $ 1,251 |
Less: imputed interest | (54) | |
Total operating lease liabilities at March 31, 2019 | $ 1,259 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2019USD ($)Founders | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Israel | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Subleases expiration month | 2018-06 | |||
Sublease income | $ 13 | |||
Consulting Agreements [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Number of founders | Founders | 3 | |||
Consulting Agreements [Member] | Founder One [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Consulting agreement annual fee | $ 68 | |||
Consulting fee | 51 | 34 | ||
Consulting Agreements [Member] | Founder One [Member] | Scientific Advisory Board [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Consulting fee | $ 5 | |||
Consulting Agreements [Member] | Founder Two [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Consulting agreement annual fee | 68 | |||
Consulting fee | 51 | 34 | ||
Consulting Agreements [Member] | Founder Two [Member] | Scientific Advisory Board [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Consulting fee | 5 | |||
Consulting Agreements [Member] | Founder Three [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Consulting agreement annual fee | 68 | |||
Consulting fee | $ 51 | $ 34 | ||
Consulting Agreements [Member] | Founder Three [Member] | Scientific Advisory Board [Member] | ||||
Schedule of Other Related Party Transactions [Line Items] | ||||
Consulting fee | $ 5 |