Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | Aptinyx Inc. | |
Entity Central Index Key | 0001674365 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | 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 | 33,679,965 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 114,214 | $ 150,637 |
Restricted cash | 179 | 252 |
Accounts receivable | 461 | 578 |
Prepaid expenses and other current assets | 3,980 | 1,784 |
Total current assets | 118,834 | 153,251 |
Other assets | 166 | 673 |
Property and equipment, net | 1,330 | 1,690 |
Total assets | 120,330 | 155,614 |
Current liabilities: | ||
Accounts payable | 1,750 | 1,889 |
Accrued expenses and other current liabilities | 5,344 | 3,996 |
Total current liabilities | 7,094 | 5,885 |
Other long-term liabilities | 309 | 418 |
Total liabilities | 7,403 | 6,303 |
Commitments and contingencies (see note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized and no shares issued and outstanding as of June 30, 2019 and December 31, 2018 | ||
Common stock, $0.01 par value, 150,000 shares authorized as of June 30, 2019 and December 31, 2018, 33,608 and 33,341 issued and outstanding as of June 30, 2019 and December 31, 2018 | 337 | 333 |
Additional paid-in capital | 261,760 | 254,516 |
Accumulated deficit | (149,170) | (105,538) |
Total stockholders’ equity | 112,927 | 149,311 |
Total liabilities and stockholders’ equity | $ 120,330 | $ 155,614 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 33,676 | 33,341 |
Common stock, shares outstanding | 33,676 | 33,341 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 936 | $ 943 | $ 2,751 | $ 5,535 |
Operating expenses: | ||||
Research and development | 11,761 | 11,950 | 33,732 | 37,860 |
General and administrative | 4,523 | 3,782 | 14,419 | 7,853 |
Total operating expenses | 16,284 | 15,732 | 48,151 | 45,713 |
Loss from operations | (15,348) | (14,789) | (45,400) | (40,178) |
Other income | 558 | 608 | 1,768 | 990 |
Net loss and comprehensive loss | $ (14,790) | $ (14,181) | $ (43,632) | $ (39,188) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.44) | $ (0.43) | $ (1.30) | $ (2.48) |
Weighted-average number of common shares outstanding, basic and diluted (in shares) | 33,646 | 33,191 | 33,510 | 15,789 |
Collaboration revenue | ||||
Revenues | ||||
Total revenues | $ 936 | $ 943 | $ 2,751 | $ 3,893 |
Grant revenue | ||||
Revenues | ||||
Total revenues | $ 1,642 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (43,632) | $ (39,188) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 345 | 336 |
Stock-based compensation expense | 6,966 | 1,984 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (1,563) | 356 |
Accounts receivable | 117 | 344 |
Accounts payable | (139) | (263) |
Accrued expenses and other liabilities | 1,279 | 3,966 |
Net cash used in operating activities | (36,627) | (32,465) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (43) | (391) |
Net cash used in investing activities | (43) | (391) |
Cash flows from financing activities: | ||
Payment of deferred issuance costs associated with Series B convertible preferred stock financing | (232) | |
Proceeds from initial public offering, net of underwriters discounts | 109,517 | |
Proceeds from stock options exercised | 282 | 2 |
Payment of deferred offering costs | (181) | (2,971) |
Net cash provided by financing activities | 101 | 106,316 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (36,569) | 73,460 |
Cash, cash equivalents and restricted cash, at beginning of period | 151,128 | 92,609 |
Cash, cash equivalents and restricted cash, at end of period | 114,559 | 166,069 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Deferred offering costs not yet paid | $ 17 | $ 41 |
Condensed Statements of Convert
Condensed Statements of Convertible Preferred Stock shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Convertible Preferred Stock Rollforward | |
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 | $ 106,505 |
Common stock | |
Convertible Preferred Stock Rollforward | |
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 | $ 74 |
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 (in shares) | shares | 7,360 |
Additional paid-in capital | |
Convertible Preferred Stock Rollforward | |
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 | $ 106,431 |
Series A-1 | |
Convertible Preferred Stock Rollforward | |
Convertible preferred stock beginning balance | $ 22,650 |
Convertible preferred stock shares beginning balance | shares | 151,773 |
Conversion of preferred stock upon IPO | $ (22,650) |
Conversion of preferred stock upon IPO (in shares) | shares | (151,773) |
Series A-2 | |
Convertible Preferred Stock Rollforward | |
Convertible preferred stock beginning balance | $ 39,979 |
Convertible preferred stock shares beginning balance | shares | 173,453 |
Conversion of preferred stock upon IPO | $ (39,979) |
Conversion of preferred stock upon IPO (in shares) | shares | (173,453) |
Series B | |
Convertible Preferred Stock Rollforward | |
Convertible preferred stock beginning balance | $ 69,757 |
Convertible preferred stock shares beginning balance | shares | 234,955 |
Conversion of preferred stock upon IPO | $ (69,757) |
Conversion of preferred stock upon IPO (in shares) | shares | (234,955) |
Condensed Statements of Stockho
Condensed Statements of Stockholders' (Deficit) Equity - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional paid-in capital | Accumulated deficit | Total |
Stockholders' (deficit) equity beginning balance at Dec. 31, 2017 | $ 53 | $ 12,486 | $ (52,257) | $ (39,718) |
Stockholders' (deficit) equity shares beginning balance at Dec. 31, 2017 | 5,342 | |||
Stockholders' (Deficit) Equity Rollforward | ||||
Issuance of common stock upon vesting of restricted stock | $ 2 | (2) | ||
Issuance of common stock upon vesting of restricted stock (in shares) | 220 | |||
Stock-based compensation | 1,984 | 1,984 | ||
Conversion of preferred stock upon IPO | $ 203 | 132,183 | 132,386 | |
Conversion of preferred stock upon IPO (in shares) | 20,306 | |||
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 | $ 74 | 106,431 | 106,505 | |
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 (in shares) | 7,360 | |||
Issuance of common stock upon exercise of stock options | 2 | 2 | ||
Issuance of common stock upon exercise of stock options (in shares) | 1 | |||
Net loss | (39,188) | (39,188) | ||
Stockholders' (deficit) equity shares ending balance at Sep. 30, 2018 | 33,229 | |||
Stockholders' (deficit) equity ending balance at Sep. 30, 2018 | $ 332 | 253,084 | (91,445) | 161,971 |
Stockholders' (deficit) equity beginning balance at Jun. 30, 2018 | $ 332 | 252,473 | (77,264) | 175,541 |
Stockholders' (deficit) equity shares beginning balance at Jun. 30, 2018 | 33,155 | |||
Stockholders' (Deficit) Equity Rollforward | ||||
Issuance of common stock upon vesting of restricted stock (in shares) | 73 | |||
Stock-based compensation | 720 | 720 | ||
Issuance of common stock upon IPO, net of underwriters' discount and other offering costs of $2,902 | (111) | (111) | ||
Issuance of common stock upon exercise of stock options | 2 | 2 | ||
Issuance of common stock upon exercise of stock options (in shares) | 1 | |||
Net loss | (14,181) | (14,181) | ||
Stockholders' (deficit) equity shares ending balance at Sep. 30, 2018 | 33,229 | |||
Stockholders' (deficit) equity ending balance at Sep. 30, 2018 | $ 332 | 253,084 | (91,445) | 161,971 |
Stockholders' (deficit) equity beginning balance at Dec. 31, 2018 | $ 333 | 254,516 | (105,538) | $ 149,311 |
Stockholders' (deficit) equity shares beginning balance at Dec. 31, 2018 | 33,341 | 33,341 | ||
Stockholders' (Deficit) Equity Rollforward | ||||
Issuance of common stock upon vesting of restricted stock | $ 2 | (2) | ||
Issuance of common stock upon vesting of restricted stock (in shares) | 193 | |||
Stock-based compensation | 6,966 | $ 6,966 | ||
Issuance of common stock upon exercise of stock options | $ 2 | 280 | 282 | |
Issuance of common stock upon exercise of stock options (in shares) | 142 | |||
Net loss | (43,632) | $ (43,632) | ||
Stockholders' (deficit) equity shares ending balance at Sep. 30, 2019 | 33,676 | 33,676 | ||
Stockholders' (deficit) equity ending balance at Sep. 30, 2019 | $ 337 | 261,760 | (149,170) | $ 112,927 |
Stockholders' (deficit) equity beginning balance at Jun. 30, 2019 | $ 336 | 259,090 | (134,380) | 125,046 |
Stockholders' (deficit) equity shares beginning balance at Jun. 30, 2019 | 33,608 | |||
Stockholders' (Deficit) Equity Rollforward | ||||
Issuance of common stock upon vesting of restricted stock | $ 1 | (1) | ||
Issuance of common stock upon vesting of restricted stock (in shares) | 54 | |||
Stock-based compensation | 2,641 | 2,641 | ||
Issuance of common stock upon exercise of stock options | 30 | 30 | ||
Issuance of common stock upon exercise of stock options (in shares) | 14 | |||
Net loss | (14,790) | $ (14,790) | ||
Stockholders' (deficit) equity shares ending balance at Sep. 30, 2019 | 33,676 | 33,676 | ||
Stockholders' (deficit) equity ending balance at Sep. 30, 2019 | $ 337 | $ 261,760 | $ (149,170) | $ 112,927 |
Condensed Statements of Stock_2
Condensed Statements of Stockholders’ (Deficit) Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Statements of stockholders' (deficit) equity | ||
Stock issuance costs capitalized | $ 2,902 | $ 2,902 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
Organization | |
Organization | 1. Organization Description of business Aptinyx Inc. (the “Company” or “Aptinyx”) was incorporated in Delaware on June 24, 2015 and maintains its headquarters in Evanston, Illinois. Aptinyx is a clinical‑stage biopharmaceutical company focused on the discovery, development, and commercialization of novel, proprietary, synthetic small molecules for the treatment of brain and nervous system disorders. Aptinyx has a platform for discovering proprietary compounds that work through a novel mechanism: modulation of N‑methyl‑D‑aspartate receptors (“NMDAr”), which are vital to normal and effective brain and nervous system functions. This mechanism has applicability across numerous brain and nervous system disorders. Initial public offering On June 20, 2018, the Company’s registration statement on Form S ‑ 1 (File No. 333‑225150) relating to the initial public offering (“IPO”) of its common stock became effective and on June 25, 2018, the IPO closed. Pursuant to the IPO, the Company issued and sold 7,359,998 shares of common stock at a public offering price of $16.00 per share, which included 959,999 shares sold pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $106.5 million after deducting underwriting discounts and commissions and other offering costs of $3.0 million. The shares began trading on the Nasdaq Global Select Market on June 21, 2018. Upon the closing of the IPO, all of the Company’s outstanding shares of convertible preferred stock automatically converted into 20,306,497 shares of common stock at the applicable conversion ratio. At the market offering program On July 1, 2019, the Company entered into a Sales Agreement (the “Sales Agreement”) with Cowen and Company, LLC (“Cowen”), pursuant to which the Company may issue and sell, from time to time, shares of its common stock having an aggregate offering price of up to $50.0 million through Cowen as sales agent. Cowen may sell common stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act, including sales made directly on or through the Nasdaq Global Select Market or any other existing trade market for the common stock, in negotiated transactions at market prices prevailing at the time of sale or at prices related to prevailing market prices, or any other method permitted by law. Cowen will be entitled to receive 3.0% of the gross sales price per share of common stock sold under the Sales Agreement. As of the date of these financial statements, no shares of common stock have been issued and sold pursuant to the Sales Agreement. Liquidity and capital resources As of September 30, 2019, the Company had cash and cash equivalents of $114.2 million, which the Company believes will be sufficient to funds its planned operations for a period of at least twelve months from the date of issuance of these condensed financial statements. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Basis of presentation The condensed financial statements of the Company included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted from this report, as is permitted by such rules and regulations. The accompanying condensed financial statements reflect all adjustments consisting of normal, recurring adjustments that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. Accordingly, these condensed financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “Annual Report”) filed with the SEC on March 21, 2019. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial statements upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. Reverse stock split On June 7, 2018, the Company effected a one-for‑27.58621 reverse stock split of the Company’s issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for the Company’s convertible preferred stock. The par value per share and authorized shares of common and convertible preferred stock were not adjusted as a result of the reverse stock split. All common stock and common stock per share amounts within the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. Use of estimates The condensed financial statements are prepared in conformity with GAAP. This process requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant accounting policies The Company’s significant accounting policies are described in Note 3, “Summary of significant accounting policies,” in the Annual Report. There have been no material changes to the significant accounting policies during the nine months ended September 30, 2019 with the exception of the following: Revenue Recognition Revenue is recognized in accordance with revenue recognition accounting guidance, which utilizes five steps to determine whether revenue can be recognized and to what extent: (i) identify the contract with a customer; (ii) identify the performance obligation(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) determine the recognition period. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, Revenue from Contracts with Customers, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Significant judgments exercised by management include the identification of performance obligations, and whether such promised goods or services are considered distinct. The Company evaluates promised goods or services on a contract by contract basis to determine whether each promise represents a good or service that is distinct or has the same pattern of transfer as other promises. A promised good or service is considered distinct if the customer can benefit from the good or service independently of other goods/services either in the contract or that can be obtained elsewhere, without regard to contract exclusivity, and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contact. If the good or service is not considered distinct, the Company combines such promises and accounts for them as a single combined performance obligation. Recently adopted accounting pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, which amends the guidance for accounting for revenue from contracts with customers. This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition , (“ASC 605”), and creates a new topic, ASC 606, Revenue from Contracts with Customers . Through subsequent targeted amendments, the FASB issued additional ASUs that delayed the effective date of ASC 606 and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identifying performance obligations, licensing, and other improvements and practical expedients. The Company adopted this new standard on January 1, 2019 using the modified retrospective transition method. The Company presents revenue from contracts with customers as collaboration revenue in the Company’s condensed statements of operations. The Company applied this new standard to all contracts with customers that were not complete as of the adoption date and has determined that no cumulative catch-up adjustment to accumulated deficit was required. See Note 4, “Research collaboration agreement with Allergan” for additional information regarding the Company’s single contract that falls within the scope of ASC 606. The Company has determined that the accounting for the Company’s various grant agreements is outside the scope of ASC 606, as the government agencies granting the Company funds are not receiving reciprocal value for their contributions. There are currently no grants outstanding in 2019. Since the accounting for government grants falls outside the scope of ASC 606, the Company has classified the grant income earned in 2018 separate and apart from revenue earned from contracts with customers in the Company’s condensed statements of operations. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU expands the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. Under the new guidance, the existing employee guidance will apply to nonemployee share based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. The new accounting guidance will be effective for the Company on January 1, 2020. The Company has early adopted this new standard on January 1, 2019. The adoption did not have a material impact on the Company’s condensed financial statements. Recently issued accounting pronouncement In February 2016, the FASB issued ASU No. 2016‑02, Leases (“ASU 2016‑02”), which requires a lessee to recognize assets and liabilities on the balance sheet for operating leases and changes many key definitions, including the definition of a lease. The new standard includes a short‑term lease exception for leases with a term of 12 months or less, as part of which a lessee can make an accounting policy election not to recognize lease assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases using classification criteria that are substantially similar to the previous guidance. The new standard will be effective for the Company beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the potential impact ASU 2016‑02 may have on its condensed financial statements. |
Supplemental financial informat
Supplemental financial information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental financial information | |
Supplemental financial information | 3. Supplemental financial information Cash, cash equivalents and restricted cash Cash and cash equivalents consist of cash and, if applicable, highly liquid investments with an original maturity of three months or less when purchased. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the condensed statements of cash flows (amounts in thousands). As of As of September 30, December 31, Cash and cash equivalents $ 114,214 $ 150,637 Short-term and long-term restricted cash 345 491 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 114,559 $ 151,128 Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following (in thousands): As of As of September 30, December 31, Prepaid clinical $ 1,970 $ 728 Prepaid insurance 1,220 673 Prepaid manufacturing costs 435 — Other prepaid expenses and current assets 355 383 Total prepaid expenses and other current assets $ 3,980 $ 1,784 Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): As of As of September 30, December 31, Employee-related expenses $ 1,954 $ 2,043 Development costs and sponsored research 1,746 915 Clinical trials 1,176 607 Professional services 125 211 Other 343 220 Total accrued expenses and other current liabilities $ 5,344 $ 3,996 |
Research collaboration agreemen
Research collaboration agreement with Allergan | 9 Months Ended |
Sep. 30, 2019 | |
Research collaboration agreement with Allergan | |
Research collaboration agreement with Allergan | 4. Research collaboration agreement with Allergan On July 24, 2015, the Company entered into a Research Collaboration Agreement (“RCA”) with Naurex Inc., a subsidiary of Allergan plc (“Allergan”), focused on the research and discovery of small molecules that modulate NMDArs. The collaboration is supervised by a Joint Steering Committee (“JSC”) comprising an equal number of representatives from both the Company and Allergan. Under the terms of the agreement, the RCA will terminate upon the earlier of a predetermined anniversary of the RCA or on the date on which Allergan exercises three options to acquire molecules from a pool of eligible compounds. Under the terms of the agreement, Allergan will pay the Company $1.0 million for each option exercised by Allergan. On May 16, 2018, Allergan exercised its option to acquire exclusive rights to develop and commercialize AGN-241751 within a predefined set of indications. The Company concluded that Allergan meets the definition of a customer, and therefore concluded that the RCA represents a contract with a customer that falls within the scope of ASC 606. Performance obligations The Company identified the following promised goods or services within the RCA: · Research Licenses – the Company provides access to exclusive licenses under all of the Company’s NMDAr technologies, during the research term for the sole purpose of conducting research and development activities. Historically, the Company’s licenses have held no value to the customer on a standalone basis, as the research compounds were in the early discovery phase and required the Company’s expertise for further development. Accordingly, the Research Licenses are not considered distinct. · Research and Development Services – the Company provides research and development services that are performed on behalf of, or with, Allergan. As discussed within Research Licenses above, the Company’s licenses have historically held no value without the specialized research and development services. As the Company generally only provides research and development services for internally generated small molecules that modulate NMDArs which require a license to be utilized by a third party, the Research and Development Services are not considered distinct. · Joint Steering Committee – the Company actively participates in a joint steering committee, which allows the Company and its collaboration partner to direct the progression and prioritization of the joint discovery programs. As the steering committee would not occur or benefit the customer without the use of the Research Licenses and the related Research and Development Services, and given the Company’s proprietary knowledge of the Research Licenses and the NMDAr technologies, this is not considered distinct. The Company also evaluated whether the option granted to the customer to acquire additional goods or services represented a material right at contract inception. Upon Allergan’s exercise of one of its options, the Company is obligated to transfer control of all intellectual property relating to the optioned compound to Allergan, after which the Company has no further interest in, or continuing involvement with, such optioned compound. The Company evaluated the customer options for material rights, that is, whether the option was to acquire additional goods or services for free or at a discount, and concluded that the options are priced, at contract inception, at standalone selling price. Consequently, the customer options do not represent a performance obligation at the outset of the arrangement since they are contingent upon the option exercise which is outside of the Company’s control. The Company has concluded that there is a single combined performance obligation (comprising the Research Licenses, Research and Development Services and participation on the Joint Steering Committee) which is satisfied over time, as the research and development services are performed. The exercise of the option to acquire exclusive rights to develop and commercialize AGN-241751 or any future options exercised are not considered a performance obligation until the time of option exercise. Transaction Price The RCA includes both fixed and variable consideration. Fixed payments, such as contractually defined fees per full-time employee (“FTE”), are included in the transaction price at contract inception, while variable consideration, such as reimbursement for Research and Development Services, are estimated and then evaluated for constraints upon inception of the contract and evaluated on a quarterly basis thereafter. Research and Development Services are updated for actual invoices. There were no capitalized costs associated with obtaining the contract. The Company concluded that it will use an input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. The Company uses fixed FTE efforts and variable out-of-pocket costs as actual costs incurred relative to the annual budget research plan to measure progress towards fulfillment of the performance obligation. An input method of revenue recognition requires management to make estimates of costs to complete the Company’s performance obligations. In making such estimates, significant judgment is required to evaluate assumptions related to cost estimates. The cumulative effect of revisions to estimated costs to complete the Company’s performance obligations will be recorded in the period in which changes are identified and amounts can be reasonably estimated. The Company does not anticipate significant changes as the research plan is reviewed and adjusted annually and approved by the JSC. There are no significant financing components in the contract. The Company has determined that the option fee is representative of standalone selling price and concluded that it will recognize revenue for the option fee at a point in time, on the date of exercise, due to the significant uncertainty of whether or not Allergan would exercise the option. The Company recognizes the option fee at a point in time because control of the underlying intellectual property transfers to the customer, and the customer is able to use and benefit from the license. The Company has no further rights, interests or remaining performance obligations associated with any optioned compound, once exercised. During each of the three months ended September 30, 2019 and 2018, the Company recorded expenses of $1.9 million for certain development activities in accordance with the terms of the RCA, of which 50% was reimbursed by Allergan. The Company received reimbursements of $0.9 million during each of the three months ended September 30, 2019 and 2018. During the nine months ended September 30, 2019 and 2018, the Company recorded expenses of $5.5 million and $5.8 million, respectively, for certain development activities in accordance with the terms of the RCA, of which 50% was reimbursed by Allergan. The Company received reimbursements of $2.8 million and $2.9 million during the nine months ended September 30, 2019 and 2018, respectively. Such reimbursements were reported within collaboration revenue in the condensed statements of operations. All of the Company’s accounts receivables as of both September 30, 2019 and December 31, 2018 relate to amounts owed by Allergan under the RCA. On May 16, 2018, Allergan exercised its option to acquire exclusive rights to develop and commercialize AGN-241751 within a specific set of indications. For the three and nine months ended September 30, 2018, the Company recognized the $1.0 million non-refundable milestone payment within collaboration revenue in the condensed statements of operations as there were no remaining performance obligations associated with the optioned compound. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair value measurements | |
Fair value measurements | 5. Fair value measurements ASC 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and · Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying values reported in the Company’s balance sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses are reasonable estimates of their fair values due to the short-term nature of these items. Assets measured at fair value as of September 30, 2019 are as follows (in thousands): September 30, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 114,059 $ 114,059 $ — $ — Money market funds, included in restricted cash 179 179 — — Money market funds, included in other assets 166 166 — — $ 114,404 $ 114,404 $ — $ — Assets measured at fair value as of December 31, 2018 are as follows (in thousands): December 31, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 150,151 $ 150,151 $ — $ — Money market funds, included in restricted cash 252 252 — — Money market funds, included in other assets 239 239 — — $ 150,642 $ 150,642 $ — $ — |
Property and equipment
Property and equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property and equipment | |
Property and equipment | 6 . Property and equipment Property and equipment are as follows (in thousands): As of As of September 30, December 31, Computer software and equipment $ 15 $ 15 Office equipment and furniture 176 176 Laboratory equipment 1,614 1,571 Leasehold improvements 1,051 1,051 Less accumulated depreciation (1,526) (1,123) Property and equipment, net $ 1,330 $ 1,690 Depreciation expense was $0.1 million for each of the three months ended September 30, 2019 and 2018, and $0.4 million for each of the nine months ended September 30, 2019 and 2018. |
Stock incentive plans
Stock incentive plans | 9 Months Ended |
Sep. 30, 2019 | |
Stock incentive plans | |
Stock incentive plans | 7. Stock incentive plans On June 5, 2018, the Company’s stockholders approved the 2018 Stock Option and Incentive Plan (the “2018 Plan”), which became effective on June 20, 2018. The 2018 Plan provides for an annual increase, to be added on the first day of each fiscal year, of up to 4% of the Company’s outstanding shares of common stock as of the last day of the prior year. On January 1, 2019, 1,341,436 shares of common stock were added to the 2018 Plan. The number of shares available for grant under the Company’s 2018 Plan as of September 30, 2019 was 2,809,289 which includes 505,046 shares of the Company’s common stock reserved under the Company’s 2015 Stock Option and Grant Plan (the “2015 Plan”) that became available for issuance upon the effectiveness of the 2018 Plan. No future issuance will be made under the 2015 Plan. Stock‑based compensation expense Non-cash stock-based compensation expense recognized in the accompanying condensed statements of operations relating to both stock options, restricted stock awards and restricted stock units for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): Three months ended Nine months ended September 30, September 30, Research and development $ 816 $ 242 $ 2,181 $ 616 General and administrative 1,825 478 4,785 1,368 Total stock‑based compensation expense $ 2,641 $ 720 $ 6,966 $ 1,984 Stock options The table below summarizes activity related to stock options (in thousands, except per share amounts): Weighted‑ Weighted‑ average average remaining Aggregate exercise contractual intrinsic Options Shares price term value Outstanding, December 31, 2018 3,959 $ 7.46 8.79 $ 35,984 Granted 1,663 12.77 Exercised (142) 1.99 Forfeited and canceled (522) 11.91 Outstanding, September 30, 2019 4,958 $ 8.93 8.45 $ 1,356 Vested and expected to vest at September 30, 2019 4,958 $ 8.93 8.45 $ 1,356 Exercisable at September 30, 2019 1,877 $ 5.37 7.90 $ 968 During the nine months ended September 30, 2019 and 2018, the Company granted 1.7 million and 2.4 million stock options, respectively and these options had a weighted-average grant-date fair value of $8.36 and $9.95 per share, respectively. The weighted-average grant-date fair value of options was determined using the Black-Scholes option-pricing model. The assumptions used in the Black-Scholes option-pricing model for options granted during the three and nine months ended September 30, 2019 were similar to those as described in the Annual Report. As of September 30, 2019, there was $20.4 million of total unrecognized stock-based compensation expense related to non-vested stock options which is expected to be recognized over a weighted-average period of 2.90 years. The options have a ten-year life and generally vest over a period of four years, subject to continuous employment. Restricted stock awards Non-cash restricted stock award expense recognized in the accompanying condensed statements of operations was $0.1 million for each of the three months ended September 30, 2019 and 2018 and $0.3 million for each of the nine months ended September 30, 2019 and 2018. The total fair value of shares that vested in the nine months ended September 30, 2019 was $0.2 million. At September 30, 2019, there was less than $0.1 million of unrecognized compensation cost related to 3,632 unvested restricted stock awards that will be recognized as expense over a weighted-average period of less than 0.01 years. Restricted stock units In May 2019, the Company issued an aggregate of 1,183,400 shares of restricted stock units to employees. The restricted stock units vest in two years from the date of grant. The Company at any time may accelerate the vesting of the restricted stock units. Such shares are not accounted for as outstanding until they vest. There are 2,166 shares of common stock underlying restricted stock units outstanding as of September 30, 2019. The table below summarizes activity related to restricted stock units (in thousands, except per share amounts): Weighted‑ average grant date fair value Shares per share Unvested as of December 31, 2018 - $ - Issued 1,183 $ 3.63 Vested (2) 3.63 Forfeited and canceled (26) 3.63 Unvested as of September 30, 2019 1,155 $ 3.63 Non-cash restricted stock unit award expense recognized in the accompanying condensed statements of operations was $0.6 million and $0.8 million for the three and nine months ended September 30, 2019, respectively. At September 30, 2019, there was $3.4 million of unrecognized compensation related to 1,154,934 unvested restricted stock units that will be recognized as expense over a weighted-average period of 1.63 years. |
Net loss per share
Net loss per share | 9 Months Ended |
Sep. 30, 2019 | |
Net loss per share | |
Net loss per share | 8. Net loss per share Basic and diluted net loss per share attributable to common stockholders was calculated as follows for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share data): Three months ended Nine months ended September 30, September 30, Numerator: Net loss attributable to common stockholders $ (14,790) $ (14,181) $ (43,632) $ (39,188) Denominator: Weighted-average common shares outstanding—basic and diluted 33,646 33,191 33,510 15,789 Net loss per share attributable to common stockholders—basic and diluted $ (0.44) $ (0.43) $ (1.30) $ (2.48) The following common stock equivalents outstanding as of September 30, 2019 and 2018, were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti‑dilutive (in thousands): As of September 30, Stock options issued and outstanding 4,958 3,937 Unvested restricted stock 1,159 268 Total 6,117 4,205 |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income taxes | |
Income taxes | 9. Income taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, including its net operating losses. Based on its history of operating losses, the Company believes that it is more likely than not that the benefit of its deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance for deferred tax assets as of September 30, 2019 and December 31, 2018. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and contingencies | |
Commitments and contingencies | 10. Commitments and contingencies Contingencies From time to time, the Company may be subject to occasional lawsuits, investigations and claims arising out of the normal conduct of business. The Company has no significant pending or threatened litigation as of September 30, 2019. Indemnifications In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company indemnifies its directors and officers who are, or were, serving at the Company’s request in such capacities. The Company’s maximum exposure under these arrangements is unknown at September 30, 2019. The Company does not anticipate recognizing any significant losses relating to these arrangements. Leases The Company enters into various non-cancelable, operating lease agreements for its facilities and equipment in order to conduct its operations. The Company expenses rent on a straight-line basis over the life of the lease and has recorded deferred rent on the Company’s balance sheets within both accrued expenses and other current liabilities and other long-term liabilities. Total rent expense, inclusive of lease incentives, under all the operating lease agreements amounted to $0.2 million for each of the three months ended September 30, 2019 and 2018 and $0.6 million and $0.5 million for the nine months ended September 30, 2019 and 2018, respectively. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of significant accounting policies | |
Reverse stock split | Reverse stock split On June 7, 2018, the Company effected a one-for‑27.58621 reverse stock split of the Company’s issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for the Company’s convertible preferred stock. The par value per share and authorized shares of common and convertible preferred stock were not adjusted as a result of the reverse stock split. All common stock and common stock per share amounts within the financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. |
Use of estimates | Use of estimates The condensed financial statements are prepared in conformity with GAAP. This process requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized in accordance with revenue recognition accounting guidance, which utilizes five steps to determine whether revenue can be recognized and to what extent: (i) identify the contract with a customer; (ii) identify the performance obligation(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) determine the recognition period. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, Revenue from Contracts with Customers, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Significant judgments exercised by management include the identification of performance obligations, and whether such promised goods or services are considered distinct. The Company evaluates promised goods or services on a contract by contract basis to determine whether each promise represents a good or service that is distinct or has the same pattern of transfer as other promises. A promised good or service is considered distinct if the customer can benefit from the good or service independently of other goods/services either in the contract or that can be obtained elsewhere, without regard to contract exclusivity, and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contact. If the good or service is not considered distinct, the Company combines such promises and accounts for them as a single combined performance obligation. |
Recent adopted and issued accounting pronouncements | Recently adopted accounting pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, which amends the guidance for accounting for revenue from contracts with customers. This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition , (“ASC 605”), and creates a new topic, ASC 606, Revenue from Contracts with Customers . Through subsequent targeted amendments, the FASB issued additional ASUs that delayed the effective date of ASC 606 and clarified various aspects of the new revenue guidance, including principal versus agent considerations, identifying performance obligations, licensing, and other improvements and practical expedients. The Company adopted this new standard on January 1, 2019 using the modified retrospective transition method. The Company presents revenue from contracts with customers as collaboration revenue in the Company’s condensed statements of operations. The Company applied this new standard to all contracts with customers that were not complete as of the adoption date and has determined that no cumulative catch-up adjustment to accumulated deficit was required. See Note 4, “Research collaboration agreement with Allergan” for additional information regarding the Company’s single contract that falls within the scope of ASC 606. The Company has determined that the accounting for the Company’s various grant agreements is outside the scope of ASC 606, as the government agencies granting the Company funds are not receiving reciprocal value for their contributions. There are currently no grants outstanding in 2019. Since the accounting for government grants falls outside the scope of ASC 606, the Company has classified the grant income earned in 2018 separate and apart from revenue earned from contracts with customers in the Company’s condensed statements of operations. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU expands the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. Under the new guidance, the existing employee guidance will apply to nonemployee share based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. The new accounting guidance will be effective for the Company on January 1, 2020. The Company has early adopted this new standard on January 1, 2019. The adoption did not have a material impact on the Company’s condensed financial statements. Recently issued accounting pronouncement In February 2016, the FASB issued ASU No. 2016‑02, Leases (“ASU 2016‑02”), which requires a lessee to recognize assets and liabilities on the balance sheet for operating leases and changes many key definitions, including the definition of a lease. The new standard includes a short‑term lease exception for leases with a term of 12 months or less, as part of which a lessee can make an accounting policy election not to recognize lease assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases using classification criteria that are substantially similar to the previous guidance. The new standard will be effective for the Company beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the potential impact ASU 2016‑02 may have on its condensed financial statements. |
Supplemental financial inform_2
Supplemental financial information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental financial information | |
Schedule of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheets that sum to the total of the same such amounts shown in the condensed statements of cash flows (amounts in thousands). As of As of September 30, December 31, Cash and cash equivalents $ 114,214 $ 150,637 Short-term and long-term restricted cash 345 491 Total cash, cash equivalents, and restricted cash shown in the statements of cash flows $ 114,559 $ 151,128 |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following (in thousands): As of As of September 30, December 31, Prepaid clinical $ 1,970 $ 728 Prepaid insurance 1,220 673 Prepaid manufacturing costs 435 — Other prepaid expenses and current assets 355 383 Total prepaid expenses and other current assets $ 3,980 $ 1,784 |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): As of As of September 30, December 31, Employee-related expenses $ 1,954 $ 2,043 Development costs and sponsored research 1,746 915 Clinical trials 1,176 607 Professional services 125 211 Other 343 220 Total accrued expenses and other current liabilities $ 5,344 $ 3,996 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair value measurements | |
Schedule of assets measured at fair value | Assets measured at fair value as of September 30, 2019 are as follows (in thousands): September 30, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 114,059 $ 114,059 $ — $ — Money market funds, included in restricted cash 179 179 — — Money market funds, included in other assets 166 166 — — $ 114,404 $ 114,404 $ — $ — Assets measured at fair value as of December 31, 2018 are as follows (in thousands): December 31, Level 1 Level 2 Level 3 Assets Money market funds, included in cash and cash equivalents $ 150,151 $ 150,151 $ — $ — Money market funds, included in restricted cash 252 252 — — Money market funds, included in other assets 239 239 — — $ 150,642 $ 150,642 $ — $ — |
Property and equipment (Tables)
Property and equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property and equipment | |
Schedule of property and equipment | Property and equipment are as follows (in thousands): As of As of September 30, December 31, Computer software and equipment $ 15 $ 15 Office equipment and furniture 176 176 Laboratory equipment 1,614 1,571 Leasehold improvements 1,051 1,051 Less accumulated depreciation (1,526) (1,123) Property and equipment, net $ 1,330 $ 1,690 |
Stock incentive plans (Tables)
Stock incentive plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock incentive plans | |
Allocation of stock-based compensation expenses | Non-cash stock-based compensation expense recognized in the accompanying condensed statements of operations relating to both stock options, restricted stock awards and restricted stock units for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): Three months ended Nine months ended September 30, September 30, Research and development $ 816 $ 242 $ 2,181 $ 616 General and administrative 1,825 478 4,785 1,368 Total stock‑based compensation expense $ 2,641 $ 720 $ 6,966 $ 1,984 |
Summary of stock option activity | The table below summarizes activity related to stock options (in thousands, except per share amounts): Weighted‑ Weighted‑ average average remaining Aggregate exercise contractual intrinsic Options Shares price term value Outstanding, December 31, 2018 3,959 $ 7.46 8.79 $ 35,984 Granted 1,663 12.77 Exercised (142) 1.99 Forfeited and canceled (522) 11.91 Outstanding, September 30, 2019 4,958 $ 8.93 8.45 $ 1,356 Vested and expected to vest at September 30, 2019 4,958 $ 8.93 8.45 $ 1,356 Exercisable at September 30, 2019 1,877 $ 5.37 7.90 $ 968 |
Schedule of restricted stock unit activity | The table below summarizes activity related to restricted stock units (in thousands, except per share amounts): Weighted‑ average grant date fair value Shares per share Unvested as of December 31, 2018 - $ - Issued 1,183 $ 3.63 Vested (2) 3.63 Forfeited and canceled (26) 3.63 Unvested as of September 30, 2019 1,155 $ 3.63 |
Net loss per share (Tables)
Net loss per share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net loss per share | |
Schedule of basic and diluted net loss per share attributable to common stockholders calculation | Basic and diluted net loss per share attributable to common stockholders was calculated as follows for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share data): Three months ended Nine months ended September 30, September 30, Numerator: Net loss attributable to common stockholders $ (14,790) $ (14,181) $ (43,632) $ (39,188) Denominator: Weighted-average common shares outstanding—basic and diluted 33,646 33,191 33,510 15,789 Net loss per share attributable to common stockholders—basic and diluted $ (0.44) $ (0.43) $ (1.30) $ (2.48) |
Schedule of anti-dilutive securities excluded from computation of diluted net loss per share | The following common stock equivalents outstanding as of September 30, 2019 and 2018, were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti‑dilutive (in thousands): As of September 30, Stock options issued and outstanding 4,958 3,937 Unvested restricted stock 1,159 268 Total 6,117 4,205 |
Organization (Details)
Organization (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 01, 2019 | Jun. 25, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Organization | ||||||
Payment of offering costs | $ 181 | $ 2,971 | ||||
Cash and cash equivalents | $ 114,214 | $ 114,214 | $ 150,637 | |||
Expected period of sufficient funds for planned operations | 12 months | |||||
IPO | ||||||
Organization | ||||||
Common stock issued and sold in initial public offering (in shares) | 7,359,998 | |||||
Public offering price of the shares sold | $ 16 | |||||
Net proceeds from issuance of common stock | $ 106,500 | |||||
Payment of offering costs | $ 3,000 | |||||
Number of preferred stock converted into common stock | 20,306,497 | |||||
New shares issued under the agreement | 7,359,998 | |||||
Underwriters' option | ||||||
Organization | ||||||
Common stock issued and sold in initial public offering (in shares) | 959,999 | |||||
New shares issued under the agreement | 959,999 | |||||
Sales Agreement | ||||||
Organization | ||||||
Common stock issued and sold in initial public offering (in shares) | 0 | |||||
Stock sale maximum aggregate offering price | $ 50,000 | |||||
Stock sale commission percentage | 3.00% | |||||
New shares issued under the agreement | 0 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) | Jun. 07, 2018 | Sep. 30, 2019item |
Summary of significant accounting policies | ||
Reverse stock split ratio | 0.03625 | |
Grants outstanding | 0 |
Supplemental financial inform_3
Supplemental financial information - Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental financial information | ||||
Cash and cash equivalents | $ 114,214 | $ 150,637 | ||
Short-term and long-term restricted cash | 345 | 491 | ||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | $ 114,559 | $ 151,128 | $ 166,069 | $ 92,609 |
Supplemental financial inform_4
Supplemental financial information - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental financial information | ||
Prepaid clinical | $ 1,970 | $ 728 |
Prepaid insurance | 1,220 | 673 |
Prepaid Manufacturing Cost | 435 | |
Other prepaid expenses and current assets | 355 | 383 |
Total prepaid expenses and other current assets | $ 3,980 | $ 1,784 |
Supplemental financial inform_5
Supplemental financial information - Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Supplemental financial information | ||
Employee-related expenses | $ 1,954 | $ 2,043 |
Development costs and sponsored research | 1,746 | 915 |
Clinical trials | 1,176 | 607 |
Professional services | 125 | 211 |
Other | 343 | 220 |
Total accrued expenses and other current liabilities | $ 5,344 | $ 3,996 |
Research collaboration agreem_2
Research collaboration agreement with Allergan (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jul. 24, 2015USD ($)Option | |
Research collaboration agreement with Allergan | |||||
Research and development | $ 11,761 | $ 11,950 | $ 33,732 | $ 37,860 | |
Non-Refundable Milestone Payment | 1,000 | 1,000 | |||
RCA | |||||
Research collaboration agreement with Allergan | |||||
Payment of option exercise fee | $ 1,000 | ||||
Number of options to acquire molecules | Option | 3 | ||||
capitalized contract costs | 0 | 0 | |||
Research and development | $ 1,900 | $ 1,900 | $ 5,500 | $ 5,800 | |
Development activities reimbursement percentage | 50.00% | 50.00% | 50.00% | 50.00% | |
Development activities expenses reimbursed | $ 900 | $ 900 | $ 2,800 | $ 2,900 | |
Remaining performance obligation | $ 0 | $ 0 |
Fair value measurements (Detail
Fair value measurements (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair value measurements | ||
Assets measured at fair value | $ 114,404 | $ 150,642 |
Money market funds, included in cash and cash equivalents | ||
Fair value measurements | ||
Money market funds | 114,059 | 150,151 |
Money market funds, included in restricted cash | ||
Fair value measurements | ||
Money market funds | 179 | 252 |
Money market funds, included in other assets | ||
Fair value measurements | ||
Money market funds | 166 | 239 |
Level 1 | ||
Fair value measurements | ||
Assets measured at fair value | 114,404 | 150,642 |
Level 1 | Money market funds, included in cash and cash equivalents | ||
Fair value measurements | ||
Money market funds | 114,059 | 150,151 |
Level 1 | Money market funds, included in restricted cash | ||
Fair value measurements | ||
Money market funds | 179 | 252 |
Level 1 | Money market funds, included in other assets | ||
Fair value measurements | ||
Money market funds | $ 166 | $ 239 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property and equipment | ||||
Less accumulated depreciation | $ (1,526) | $ (1,123) | ||
Property and equipment, net | 1,330 | 1,690 | ||
Depreciation and amortization | $ 100 | 345 | $ 336 | |
Computer software and equipment | ||||
Property and equipment | ||||
Property and equipment, gross | 15 | 15 | ||
Office equipment and furniture | ||||
Property and equipment | ||||
Property and equipment, gross | 176 | 176 | ||
Laboratory equipment | ||||
Property and equipment | ||||
Property and equipment, gross | 1,614 | 1,571 | ||
Leasehold improvements | ||||
Property and equipment | ||||
Property and equipment, gross | $ 1,051 | $ 1,051 |
Stock incentive plans (Details)
Stock incentive plans (Details) | 9 Months Ended |
Sep. 30, 2019shares | |
2018 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of increase in number of shares outstanding | 4.00% |
Common stock added to plan | 1,341,436 |
Awards available for future grant | 2,809,289 |
2015 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common Stock, Capital Shares Reserved for Future Issuance | 505,046 |
Stock incentive plans - Stock-b
Stock incentive plans - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash restricted stock unit award expense recognized | $ 2,641 | $ 720 | $ 6,966 | $ 1,984 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash restricted stock unit award expense recognized | 816 | 242 | 2,181 | 616 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash restricted stock unit award expense recognized | $ 1,825 | $ 478 | $ 4,785 | $ 1,368 |
Stock incentive plans - Activit
Stock incentive plans - Activity related to stock options (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Shares | |||
Outstanding, at the beginning of the period | 3,959 | ||
Granted | 1,663 | 2,400 | |
Exercised | (142) | ||
Forfeited and canceled | (522) | ||
Outstanding, at the end of the period | 4,958 | 3,959 | |
Vested and expected to vest | 4,958 | ||
Exercisable | 1,877 | ||
Weighted-average exercise price | |||
Outstanding, at the beginning of the period | $ 7.46 | ||
Granted | 12.77 | ||
Exercised | 1.99 | ||
Forfeited and canceled | 11.91 | ||
Outstanding, at the end of the period | 8.93 | $ 7.46 | |
Vested and expected to vest | 8.93 | ||
Exercisable at the end of the period | $ 5.37 | ||
Weighted-average remaining contractual term | |||
Weighted-average remaining contractual term | 8 years 5 months 12 days | 8 years 9 months 15 days | |
Vested and expected to vest | 8 years 5 months 12 days | ||
Exercisable | 7 years 10 months 24 days | ||
Aggregate intrinsic value | |||
Outstanding, at the beginning of the period | $ 35,984 | ||
Outstanding, at the end of the period | 1,356 | $ 35,984 | |
Vested and expected to vest | 1,356 | ||
Exercisable | $ 968 | ||
Weighted-average grant date fair value per share | $ 8.36 | $ 9.95 | |
Unrecognized stock-based compensation related to non-vested stock options | $ 20,400 | ||
Expenses recognized over a weighted-average period (in years) | 2 years 10 months 24 days | ||
Term of award | 10 years | ||
Vesting period | 4 years |
Stock incentive plans - Restric
Stock incentive plans - Restricted stock awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted‑average grant date fair value per share | ||||
Non-cash restricted stock unit award expense recognized | $ 2,641 | $ 720 | $ 6,966 | $ 1,984 |
Restricted stock awards | ||||
Shares | ||||
Unvested at end of period (in shares) | 3,632 | 3,632 | ||
Weighted‑average grant date fair value per share | ||||
Non-cash restricted stock unit award expense recognized | $ 100 | $ 100 | $ 300 | $ 300 |
Fair value of shares vested | 200 | |||
Restricted stock awards | Maximum | ||||
Weighted‑average grant date fair value per share | ||||
Unrecognized compensation related to unvested restricted stock units | $ 100 | $ 100 | ||
Expenses recognized over a weighted-average period (in years) | 4 days |
Stock incentive plans - Restr_2
Stock incentive plans - Restricted stock units (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted-average grant date fair value per share | |||||
Non-cash restricted stock unit award expense recognized | $ 2,641 | $ 720 | $ 6,966 | $ 1,984 | |
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
Vested and outstanding awards | 2,166 | 2,166 | |||
Shares | |||||
Issued (in shares) | 1,183,400 | 1,183,000 | |||
Vested (in shares) | 2,000 | ||||
Forfeited and canceled (in shares) | (26,000) | ||||
Unvested at end of period (in shares) | 1,154,934 | 1,154,934 | |||
Weighted-average grant date fair value per share | |||||
Issued (in dollars per share) | $ 3.63 | ||||
Vested (in dollars per share) | 3.63 | ||||
Forfeited and canceled (in dollars per share) | 3.63 | ||||
Unvested at end of period (in dollars per share) | $ 3.63 | $ 3.63 | |||
Non-cash restricted stock unit award expense recognized | $ 600 | $ 800 | |||
Unrecognized compensation related to unvested restricted stock units | $ 3,400 | $ 3,400 | |||
Expenses recognized over a weighted-average period (in years) | 1 year 7 months 17 days |
Net loss per share (Details)
Net loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net loss attributable to common stockholders | $ (14,790) | $ (14,181) | $ (43,632) | $ (39,188) |
Denominator: | ||||
Weighted-average common shares outstanding—basic and diluted | 33,646 | 33,191 | 33,510 | 15,789 |
Net loss per share attributable to common stockholders—basic and diluted | $ (0.44) | $ (0.43) | $ (1.30) | $ (2.48) |
Net loss per share - Anti-dilut
Net loss per share - Anti-dilutive securities (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Common stock equivalents outstanding excluded from the computation of diluted net loss per share attributable to common stockholders | ||
Outstanding anti-dilutive securities excluded from computation of diluted net loss per share | 6,117 | 4,205 |
Stock options | ||
Common stock equivalents outstanding excluded from the computation of diluted net loss per share attributable to common stockholders | ||
Outstanding anti-dilutive securities excluded from computation of diluted net loss per share | 4,958 | 3,937 |
Unvested restricted stock | ||
Common stock equivalents outstanding excluded from the computation of diluted net loss per share attributable to common stockholders | ||
Outstanding anti-dilutive securities excluded from computation of diluted net loss per share | 1,159 | 268 |
Commitments and contingencies (
Commitments and contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and contingencies | ||||
Rent expense inclusive of lease incentives | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.5 |
Subsequent events (Details)
Subsequent events (Details) - Sales Agreement - USD ($) $ in Millions | Jul. 01, 2019 | Sep. 30, 2019 |
Subsequent Event [Line Items] | ||
Stock sale maximum aggregate offering price | $ 50 | |
Stock sale commission percentage | 3.00% | |
New shares issued under the agreement | 0 |