Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39112 | |
Entity Registrant Name | OYSTER POINT PHARMA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1030955 | |
Entity Address, Address Line One | 202 Carnegie Center, Suite 109 | |
Entity Address, City or Town | Princeton | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08540 | |
City Area Code | 609 | |
Local Phone Number | 382-9032 | |
Title of 12(b) Security | Common stock, par value $0.001 | |
Trading Symbol | OYST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,868,264 | |
Amendment Flag | false | |
Entity Central Index Key | 0001720725 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 214,331 | $ 139,147 |
Prepaid expenses and other current assets | 861 | 3,033 |
Total current assets | 215,192 | 142,180 |
Property and equipment, net | 466 | 181 |
Restricted cash | 61 | 51 |
Right-of-use assets, net | 777 | 797 |
Total Assets | 216,496 | 143,209 |
Current Liabilities | ||
Accounts payable | 2,291 | 507 |
Accrued expenses and other current liabilities | 6,747 | 4,596 |
Lease liabilities | 409 | 296 |
Total current liabilities | 9,447 | 5,399 |
Liabilities, Noncurrent [Abstract] | ||
Lease liabilities, non-current | 376 | 512 |
Total Liabilities | 9,823 | 5,911 |
Commitments and Contingencies (Note 8) | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.001 par value per share; 1,000,000,000 shares authorized, 25,844,761 and 21,366,950 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 26 | 21 |
Additional paid-in capital | 339,166 | 221,508 |
Accumulated deficit | (132,519) | (84,231) |
Total Stockholders’ Equity | 206,673 | 137,298 |
Total Liabilities and Stockholders’ Equity | $ 216,496 | $ 143,209 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Par value of preferred stock (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued (in shares) | 25,844,761 | 21,366,950 |
Common stock shares outstanding (in shares) | 25,844,761 | 21,366,950 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 8,210 | $ 8,088 | $ 28,104 | $ 18,594 |
General and administrative | 8,112 | 3,809 | 20,641 | 8,546 |
Total operating expenses | 16,322 | 11,897 | 48,745 | 27,140 |
Loss from operations | (16,322) | (11,897) | (48,745) | (27,140) |
Other income, net | 17 | 400 | 457 | 1,153 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $ (16,305) | $ (11,497) | $ (48,288) | $ (25,987) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.63) | $ (8.10) | $ (2.05) | $ (18.37) |
Weighted-average shares outstanding, basic and diluted (in shares) | 25,797,282 | 1,419,064 | 23,544,035 | 1,414,475 |
Condensed Statements of Redeema
Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity - USD ($) $ in Thousands | Total | Series B redeemable convertible preferred stock | Common Stock | Common StockRestricted Stock Units (RSUs) | Additional Paid-In Capital | Accumulated Deficit |
Redeemable convertible preferred stock, shares, beginning balance at Dec. 31, 2018 | 7,611,691 | |||||
Redeemable convertible preferred stock, amount, beginning balance at Dec. 31, 2018 | $ 43,001 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Issuance of Series B redeemable convertible preferred stock, net of issuance costs, (in shares) | 6,015,431 | |||||
Temporary Equity, Stock Issued During Period, Value, New Issues | $ 84,852 | |||||
Redeemable convertible preferred stock, shares, ending balance at Mar. 31, 2019 | 13,627,122 | |||||
Redeemable convertible preferred stock, amount, ending balance at Mar. 31, 2019 | $ 127,853 | |||||
Beginning balance, common stock (in shares) at Dec. 31, 2018 | 1,411,966 | |||||
Beginning balance at Dec. 31, 2018 | (38,243) | $ 1 | $ 276 | $ (38,520) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (3,760) | (3,760) | ||||
Stock-based compensation expense | 40 | 40 | ||||
Ending balance, common stock (in shares) at Mar. 31, 2019 | 1,411,966 | |||||
Ending balance at Mar. 31, 2019 | $ (41,963) | $ 1 | 316 | (42,280) | ||
Redeemable convertible preferred stock, shares, beginning balance at Dec. 31, 2018 | 7,611,691 | |||||
Redeemable convertible preferred stock, amount, beginning balance at Dec. 31, 2018 | $ 43,001 | |||||
Redeemable convertible preferred stock, shares, ending balance at Sep. 30, 2019 | 14,193,281 | |||||
Redeemable convertible preferred stock, amount, ending balance at Sep. 30, 2019 | $ 135,853 | |||||
Beginning balance, common stock (in shares) at Dec. 31, 2018 | 1,411,966 | |||||
Beginning balance at Dec. 31, 2018 | (38,243) | $ 1 | 276 | (38,520) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (25,987) | |||||
Ending balance, common stock (in shares) at Sep. 30, 2019 | 1,419,257 | |||||
Ending balance at Sep. 30, 2019 | $ (61,950) | $ 1 | 2,556 | (64,507) | ||
Redeemable convertible preferred stock, shares, beginning balance at Mar. 31, 2019 | 13,627,122 | |||||
Redeemable convertible preferred stock, amount, beginning balance at Mar. 31, 2019 | $ 127,853 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Issuance of Series B redeemable convertible preferred stock, net of issuance costs, (in shares) | 566,159 | |||||
Temporary Equity, Stock Issued During Period, Value, New Issues | $ 8,000 | |||||
Redeemable convertible preferred stock, shares, ending balance at Jun. 30, 2019 | 14,193,281 | |||||
Redeemable convertible preferred stock, amount, ending balance at Jun. 30, 2019 | $ 135,853 | |||||
Beginning balance, common stock (in shares) at Mar. 31, 2019 | 1,411,966 | |||||
Beginning balance at Mar. 31, 2019 | (41,963) | $ 1 | 316 | (42,280) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (10,730) | (10,730) | ||||
Issuance of common stock upon exercise of stock options (in shares) | 7,060 | |||||
Issuance of common stock upon exercise of stock options | 7 | 7 | ||||
Stock-based compensation expense | 1,175 | 1,175 | ||||
Ending balance, common stock (in shares) at Jun. 30, 2019 | 1,419,026 | |||||
Ending balance at Jun. 30, 2019 | $ (51,511) | $ 1 | 1,498 | (53,010) | ||
Redeemable convertible preferred stock, shares, ending balance at Sep. 30, 2019 | 14,193,281 | |||||
Redeemable convertible preferred stock, amount, ending balance at Sep. 30, 2019 | $ 135,853 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (11,497) | (11,497) | ||||
Issuance of common stock upon exercise of stock options (in shares) | 231 | |||||
Stock-based compensation expense | 1,058 | 1,058 | ||||
Ending balance, common stock (in shares) at Sep. 30, 2019 | 1,419,257 | |||||
Ending balance at Sep. 30, 2019 | $ (61,950) | $ 1 | 2,556 | (64,507) | ||
Redeemable convertible preferred stock, shares, beginning balance at Dec. 31, 2019 | 0 | |||||
Redeemable convertible preferred stock, amount, beginning balance at Dec. 31, 2019 | $ 0 | |||||
Redeemable convertible preferred stock, shares, ending balance at Mar. 31, 2020 | 0 | |||||
Redeemable convertible preferred stock, amount, ending balance at Mar. 31, 2020 | $ 0 | |||||
Beginning balance, common stock (in shares) at Dec. 31, 2019 | 21,366,950 | 21,366,950 | ||||
Beginning balance at Dec. 31, 2019 | $ 137,298 | $ 21 | 221,508 | (84,231) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (16,519) | (16,519) | ||||
Issuance of common stock upon exercise of stock options (in shares) | 3,530 | |||||
Issuance of common stock upon exercise of stock options | 4 | 4 | ||||
Stock-based compensation expense | 1,180 | 1,180 | ||||
Ending balance, common stock (in shares) at Mar. 31, 2020 | 21,370,480 | |||||
Ending balance at Mar. 31, 2020 | $ 121,963 | $ 21 | 222,692 | (100,750) | ||
Redeemable convertible preferred stock, shares, beginning balance at Dec. 31, 2019 | 0 | |||||
Redeemable convertible preferred stock, amount, beginning balance at Dec. 31, 2019 | $ 0 | |||||
Redeemable convertible preferred stock, shares, ending balance at Sep. 30, 2020 | 0 | |||||
Redeemable convertible preferred stock, amount, ending balance at Sep. 30, 2020 | $ 0 | |||||
Beginning balance, common stock (in shares) at Dec. 31, 2019 | 21,366,950 | 21,366,950 | ||||
Beginning balance at Dec. 31, 2019 | $ 137,298 | $ 21 | 221,508 | (84,231) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (48,288) | |||||
Issuance of common stock upon exercise of stock options (in shares) | 151,710 | 151,710 | ||||
Ending balance, common stock (in shares) at Sep. 30, 2020 | 25,844,761 | 25,844,761 | ||||
Ending balance at Sep. 30, 2020 | $ 206,673 | $ 26 | 339,166 | (132,519) | ||
Redeemable convertible preferred stock, shares, beginning balance at Mar. 31, 2020 | 0 | |||||
Redeemable convertible preferred stock, amount, beginning balance at Mar. 31, 2020 | $ 0 | |||||
Redeemable convertible preferred stock, shares, ending balance at Jun. 30, 2020 | 0 | |||||
Redeemable convertible preferred stock, amount, ending balance at Jun. 30, 2020 | $ 0 | |||||
Beginning balance, common stock (in shares) at Mar. 31, 2020 | 21,370,480 | |||||
Beginning balance at Mar. 31, 2020 | 121,963 | $ 21 | 222,692 | (100,750) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (15,464) | (15,464) | ||||
Issuance of common stock upon secondary equity offering, net of issuance costs of $8,125 (in shares) | 4,312,500 | |||||
Issuance of common stock upon follow-on equity offering, net of issuance costs of $8,125 | $ 112,625 | $ 5 | 112,620 | |||
Issuance of common stock upon exercise of stock options (in shares) | 60,425 | |||||
Issuance of common stock upon exercise of stock options | $ 82 | 82 | ||||
Stock-based compensation expense | 1,609 | 1,609 | ||||
Ending balance, common stock (in shares) at Jun. 30, 2020 | 25,743,405 | |||||
Ending balance at Jun. 30, 2020 | $ 220,815 | $ 26 | 337,003 | (116,214) | ||
Redeemable convertible preferred stock, shares, ending balance at Sep. 30, 2020 | 0 | |||||
Redeemable convertible preferred stock, amount, ending balance at Sep. 30, 2020 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (16,305) | (16,305) | ||||
Issuance of common stock upon exercise of stock options (in shares) | 87,755 | 13,601 | ||||
Issuance of common stock upon exercise of stock options | $ 173 | 173 | ||||
Stock-based compensation expense | $ 1,990 | 1,990 | ||||
Ending balance, common stock (in shares) at Sep. 30, 2020 | 25,844,761 | 25,844,761 | ||||
Ending balance at Sep. 30, 2020 | $ 206,673 | $ 26 | $ 339,166 | $ (132,519) |
Condensed Statements of Redee_2
Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Class of Stock [Line Items] | |||
Payments of Debt Issuance Costs | $ 8,125 | ||
Series B redeemable convertible preferred stock | |||
Class of Stock [Line Items] | |||
Issuance costs of redeemable convertible preferred stock | $ 2 | $ 146 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (48,288) | $ (25,987) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 4,779 | 2,273 |
Depreciation and amortization | 57 | 6 |
Reduction in the carrying amount of the right-of-use assets | 285 | 84 |
Changes in assets and liabilities: | ||
Prepaid expenses and other assets | 2,172 | (4,227) |
Accounts payable | 1,784 | 1,211 |
Change in lease liabilities | (283) | (77) |
Accrued expenses and other current liabilities | 2,146 | 2,441 |
Net cash used in operating activities | (37,348) | (24,276) |
Cash flows from investing activities | ||
Purchase of property and equipment | (342) | (117) |
Net cash used in investing activities | (342) | (117) |
Cash flows from financing activities | ||
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | 0 | 92,852 |
Payment of deferred offering costs | 0 | (1,365) |
Proceeds from follow-on equity offering, net of issuance costs | 112,625 | 0 |
Proceeds from the issuance of common stock upon exercise of stock options | 259 | 7 |
Net cash provided by financing activities | 112,884 | 91,494 |
Net increase in cash, cash equivalents and restricted cash | 75,194 | 67,101 |
Cash, cash equivalents and restricted cash at the beginning of the period | 139,198 | 5,228 |
Cash, cash equivalents and restricted cash at the end of the period | 214,392 | 72,329 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash, cash equivalents and restricted cash | 214,392 | 72,329 |
Supplemental cash flow information | ||
Right-of-use for office space and office equipment acquired through leases | 320 | 897 |
Supplemental non-cash flow information | ||
Unpaid offering costs | $ 0 | $ 754 |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business, Basis of Presentation and Significant Accounting Policies | Nature of Business, Basis of Presentation and Significant Accounting Policies Description of the Business Oyster Point Pharma, Inc. (the Company) was incorporated in the state of Delaware on June 30, 2015. From inception through September 30, 2020, the Company has been primarily engaged in business planning, research, clinical development of its lead therapeutic product candidates, recruiting and raising capital. The Company is a clinical stage biopharmaceutical company focused on the discovery, development and commercialization of pharmaceutical therapies to treat ocular surface diseases. The Company’s principal office is located in Princeton, New Jersey. In October 2019, the Company effected a 2.832861-for-1 reverse stock split of the Company’s common stock and redeemable convertible preferred stock. The par values of the common stock and redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. Accordingly, all common stock, redeemable convertible preferred stock, stock options, and related per share amounts for the period through October 18, 2019 have been retroactively adjusted to give effect to the reverse stock split. Liquidity The Company incurred net losses of $48.3 million and $26.0 million for the nine months periods ended September 30, 2020 and 2019, respectively, and had an accumulated deficit of $132.5 million as of September 30, 2020. The Company has historically financed its operations primarily through the sale and issuance of its securities. The Company completed its initial public offering (IPO) in November of 2019 selling 5,750,000 shares of common stock at a price of $16.00 per share. The net proceeds from the offering were $82.1 million. On May 19, 2020, the Company completed its follow-on equity offering selling 4,312,500 shares of common stock at a price of $28.00 per share. The net proceeds from the offering were $112.6 million. For further discussion on changes in the Company's capital structure, see Note 4. Stockholders' Equity. To date, none of the Company’s product candidates have been approved for sale and therefore it has not generated any revenue from product sales. The Company expects to incur increased sales and marketing expenses with the commercialization of new and existing products, if approved for sale, as well as increased research and development expenses as it develops additional product candidates. In addition, the Company expects its operating losses to continue to increase for the foreseeable future. The Company is subject to risks and uncertainties as a result of the SARS-CoV-2 virus pandemic. The pandemic, which has continued to spread, and any related public health developments, have adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the pandemic or the full extent of its effects on the Company's financial condition, liquidity or results of operations. The Company had cash and cash equivalents of $214.3 million as of September 30, 2020. Management believes that the Company’s current cash and cash equivalents will be sufficient to fund its planned operations for at least 12 months from the date of issuance of these financial statements. Basis of Presentation The unaudited interim condensed financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, 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. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly the Company’s financial position as of September 30, 2020 and as of December 31, 2019, the results of operations for the three and nine months ended September 30, 2020 and 2019, and cash flows for the nine months ended September 30, 2020 and 2019. While management believes that the disclosures presented are adequate to make the information not misleading, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto in the Company’s latest year-end financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for the full year. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of expenses in the condensed financial statements and accompanying notes. Significant items subject to such estimates and assumptions include stock-based compensation and certain research and development accruals. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Summary of Significant Accounting Policies The Company’s significant accounting policies are disclosed in Note 1. Organization and Summary of Significant Accounting Policies in the Annual Report on Form 10-K for the year ended December 31, 2019. There have been no material changes in the Company's accounting policies from those disclosed in the financial statements and the related notes included in the Annual Report on Form 10-K for the year ended December 31, 2019. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB) under its accounting standard codifications (ASC) or other standard setting bodies and are adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies various aspects related to the accounting for income taxes. This ASU removes exceptions to the general principles in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. For public companies, this ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted. The Company adopted ASU 2019-12 in the second quarter of 2020 and its adoption did not have a material effect on the Company's financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. This ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2018-13 effective January 1, 2020 and its adoption did not have a material effect on the Company’s financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments . This ASU improves and clarifies various financial instruments topics, including the current expected credit losses standard issued in 2016. The ASU includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. The Company is currently evaluating the impact the adoption of this ASU will have on its financial statements and related disclosures, but does not expect adoption will have a material impact on the Company’s financial statements and disclosures. Reclassification |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company assesses the fair value of financial instruments as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of September 30, 2020, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at September 30, 2020 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 213,331 $ — $ — $ 213,331 Total fair value of assets $ 213,331 $ — $ — $ 213,331 As of December 31, 2019, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at December 31, 2019 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 138,147 $ — $ — $ 138,147 Total fair value of assets $ 138,147 $ — $ — $ 138,147 Money market funds are included in cash and cash equivalents on the balance sheets and are classified within Level 1 of the fair value hierarchy as they are valued using quoted market prices. The carrying amounts reflected in the Company's condensed balance sheets for cash and cash equivalents, prepaid expenses and other current assets, restricted cash, accounts payable and accrued expenses and other liabilities approximate their fair values, due to their short-term nature. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are money market funds included in cash and cash equivalents on the condensed balance sheets. The Company attempts to minimize the risks related to cash and cash equivalents by using highly-rated financial institutions that invest in a broad and diverse range of financial |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Accrued compensation 2,230 1,214 Accrued professional services 1,311 1,163 Accrued research and development expense 3,206 2,219 Total accrued expenses and other current liabilities $ 6,747 $ 4,596 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The Company is authorized to issue 1,000,000,000 shares of common stock, at a par value of $0.001 per share. Each share of common stock is entitled to one vote. The Company reserved common stock for future issuance as follows: September 30, 2020 December 31, 2019 Outstanding options under the 2016 Plan 2,590,886 2,748,434 Outstanding options under the 2019 Plan 614,945 29,466 Equity awards available for grant under the 2019 Plan 2,113,001 2,747,047 Unvested restricted stock units (RSUs) 63,929 23,125 Shares reserved for purchase under the ESPP (a) 270,000 270,000 Total 5,652,761 5,818,072 (a) — Employee Stock Purchase Plan approved in October 2019, as further described in Note 5. Equity Incentive Plans . Changes in Capital Structure During the nine months ended September 30, 2020, the Company issued 151,710 shares of common stock as a result of stock options exercises, as well as 13,601 shares of common stock due to vesting of the RSUs, as further described in Note 5, Equity Incentive Plans. On May 19, 2020, the Company completed its follow-on public offering selling 4,312,500 shares of common stock at a price to the public of $28.00 per share. The net proceeds from the offering were $112.6 million. On November 4, 2019, upon the closing of the IPO, all outstanding shares of redeemable convertible preferred stock were converted into an aggregate of 14,193,281 shares of the Company’s common stock and $135.9 million of mezzanine equity was reclassified to common stock and additional paid-in capital. As of September 30, 2020, and December 31, 2019, there were no shares of redeemable convertible preferred stock issued and outstanding. In October 2019, the Company effected a 2.832861-for-1 reverse stock split of the Company’s common stock and redeemable convertible preferred stock. The par values of the common stock and redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. Accordingly, all common stock, redeemable convertible preferred stock, stock options, and related per share amounts for the period through October 18, 2019 have been retroactively adjusted to give effect to the reverse stock split. On February 15, 2019, the Company executed the Series B Preferred Stock Purchase Agreement to sell 6,581,590 shares of Series B redeemable convertible preferred stock. In February and April of 2019, the Company received gross cash proceeds of $85.0 million and $8.0 million, respectively, from the sale of Series B redeemable convertible preferred stock. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans In October 2019, the Company’s Board of Directors (BOD) and stockholders approved the 2019 Equity Incentive Plan (the 2019 Plan). The 2019 Plan provides for the granting of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance shares to the Company's employees, directors, and others. The exercise price of an incentive stock option (ISO) and non-qualified stock option (NSO) shall not be less than 100% of the estimated fair value of the shares on the date of grant, as determined by the BOD. The exercise price of an ISO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant, as determined by the BOD. To date, outstanding options have a term of 10 years and generally vest monthly over a four-year period. In October 2019, the Company’s BOD and stockholders approved the 2019 Employee Stock Purchase Plan (the ESPP), which qualifies as an "employee stock purchase plan" under Section 423 of the Internal Revenue Code, and pursuant to which 270,000 shares of common stock were reserved for future issuance. The ESPP is designed to enable eligible employees to purchase shares of the Company's common stock at a discount on a periodic basis through payroll deductions. There have been no ESPP purchases to date. Stock Options The following table summarizes stock option activity under the 2016 Plan and the 2019 Plan during the nine months ended September 30, 2020 (in thousands, except share, contractual term and per share data): Outstanding Options Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, January 1, 2020 2,777,900 $ 4.59 8.7 $ 55,146 Options granted 586,729 32.22 Options exercised (151,710) 1.71 3,911 Options canceled (7,088) 17.52 91 Balance, September 30, 2020 3,205,831 9.75 8.3 42,912 Shares vested and exercisable as of September 30, 2020 1,424,602 3.16 7.7 25,577 Vested and expected to vest as of September 30, 2020 3,205,831 $ 9.75 8.3 $ 42,912 The weighted average grant date fair value of options granted during the nine months ended September 30, 2020 was $23.64 per share. As of September 30, 2020, the total unrecognized stock-based compensation expense for stock options was $19.5 million, which is expected to be recognized over a weighted average period of 3.1 years. Restricted Stock Units Restricted stock units (RSUs) consist of restricted stock unit awards which are granted to the Company's directors. The value of an RSU award is based on the Company's stock price on the date of the grant. The shares underlying the RSUs are not issued until the RSUs vest. Upon vesting, each RSU converts into one share of the Company's common stock. Activity with respect to the Company's restricted stock units during the nine months ended September 30, 2020 was as follows (in thousands, except share, contractual term, and per share data): Outstanding RSUs Number of Shares Underlying Outstanding Awards Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2020 23,125 $ 16.00 2.8 $ 565 Restricted stock units granted 54,405 28.03 1,525 Restricted stock units vested (13,601) 28.03 — Balance, September 30, 2020 63,929 23.68 1.2 1,350 Unvested and expected to vest as of September 30, 2020 63,929 $ 23.68 1.2 $ 1,350 As of September 30, 2020, the total unrecognized stock-based compensation expense for RSUs was $1.3 million, which is expected to be recognized over a weighted average period of 1.2 years. Fair Value of Common Stock Prior to the IPO, the fair value of the Company’s common stock underlying the stock options was determined by the Board of Directors with assistance from management and, in part, on input from an independent third-party valuation firm. The Board of Directors determined the fair value of common stock by considering a number of objective and subjective factors, including valuations of comparable companies, sales of convertible preferred stock, operating and financial performance, the lack of liquidity of the Company’s common stock and the general and industry-specific economic outlook. Subsequent to the IPO, the fair value of the Company’s common stock is determined based on its closing market price. Stock-Based Compensation Expense Total stock-based compensation expense recorded related to awards granted to employees and non-employees was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 246 $ 203 $ 702 $ 417 General and administrative 1,744 855 4,077 1,856 Total stock-based compensation expense $ 1,990 $ 1,058 $ 4,779 $ 2,273 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (16,305) $ (11,497) $ (48,288) $ (25,987) Denominator: Weighted average shares outstanding, basic and diluted 25,797,282 1,419,064 23,544,035 1,414,475 Net loss per share, basic and diluted $ (0.63) $ (8.10) $ (2.05) $ (18.37) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of September 30, 2020 2019 Series A redeemable convertible preferred stock — 7,611,691 Series B redeemable convertible preferred stock — 6,581,590 Options to purchase common stock 3,205,831 2,559,935 Unvested restricted stock units 63,929 — Total 3,269,760 16,753,216 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Lease Obligations In April 2019, the Company entered into a non-cancelable operating lease for office space in Princeton, New Jersey, commencing on July 1, 2019, for a period of three years from the commencement date. In January 2020, the Company amended this lease to include additional office space, with the same terms as the original lease. Total future minimum lease payments under this amendment are $0.8 million as of September 30, 2020 . The total lease payments required over the life of this lease are $1.2 million. The remaining lease term was 1.8 years as of September 30, 2020. Rent expense was $0.3 million and $0.1 million for the nine months ended September 30, 2020 and 2019, respectively. The Company leases certain office equipment under finance leases with remaining lease terms of 1.9 to 2.6 years. At the commencement date, the Company determined the amount of lease liability using a discount rate of 3%, which management determined represents the rate implicit in the lease. Interest expense and amortization expense for the finance leases were immaterial for the three and nine months ended September 30, 2020 and 2019, respectively. Supplemental balance sheet information for the leases is as follows (in thousands): September 30, 2020 December 31, 2019 Operating lease right-of-use asset $ 739 $ 783 Finance lease right-of-use asset 38 14 Total right-of-use asset $ 777 $ 797 Operating lease liabilities $ 391 $ 290 Finance lease liabilities 18 6 Total lease liabilities $ 409 $ 296 Operating lease liabilities, non-current $ 353 $ 500 Finance lease liabilities, non-current 23 12 Total lease liabilities, non-current $ 376 $ 512 The maturities of the lease liabilities under non-cancelable operating and finance leases are as follows (in thousands): As of September 30, 2020 Finance Leases Operating Leases Total 2020 (remainder) $ 5 $ 107 $ 112 2021 18 432 450 2022 16 254 270 2023 4 — 4 Total undiscounted cash flows 43 793 836 Less: imputed interest (2) (49) (51) Total lease liability 41 744 785 Less: current portion (18) (391) (409) Lease liability $ 23 $ 353 $ 376 |
Leases | Leases Lease Obligations In April 2019, the Company entered into a non-cancelable operating lease for office space in Princeton, New Jersey, commencing on July 1, 2019, for a period of three years from the commencement date. In January 2020, the Company amended this lease to include additional office space, with the same terms as the original lease. Total future minimum lease payments under this amendment are $0.8 million as of September 30, 2020 . The total lease payments required over the life of this lease are $1.2 million. The remaining lease term was 1.8 years as of September 30, 2020. Rent expense was $0.3 million and $0.1 million for the nine months ended September 30, 2020 and 2019, respectively. The Company leases certain office equipment under finance leases with remaining lease terms of 1.9 to 2.6 years. At the commencement date, the Company determined the amount of lease liability using a discount rate of 3%, which management determined represents the rate implicit in the lease. Interest expense and amortization expense for the finance leases were immaterial for the three and nine months ended September 30, 2020 and 2019, respectively. Supplemental balance sheet information for the leases is as follows (in thousands): September 30, 2020 December 31, 2019 Operating lease right-of-use asset $ 739 $ 783 Finance lease right-of-use asset 38 14 Total right-of-use asset $ 777 $ 797 Operating lease liabilities $ 391 $ 290 Finance lease liabilities 18 6 Total lease liabilities $ 409 $ 296 Operating lease liabilities, non-current $ 353 $ 500 Finance lease liabilities, non-current 23 12 Total lease liabilities, non-current $ 376 $ 512 The maturities of the lease liabilities under non-cancelable operating and finance leases are as follows (in thousands): As of September 30, 2020 Finance Leases Operating Leases Total 2020 (remainder) $ 5 $ 107 $ 112 2021 18 432 450 2022 16 254 270 2023 4 — 4 Total undiscounted cash flows 43 793 836 Less: imputed interest (2) (49) (51) Total lease liability 41 744 785 Less: current portion (18) (391) (409) Lease liability $ 23 $ 353 $ 376 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Asset Purchase of OC-02 In October 2016, the Company entered into an asset purchase agreement pursuant to which it acquired the compound OC-02. The agreement provides for milestone payments of up to $37.0 million upon achievement of certain milestone events. The agreement also provides for royalty payments in the mid-single digit percentage on covered product net worldwide sales. The Company’s obligation to pay royalties will terminate at the latter of patent expiration in each country or ten years. In addition, the Company is required to pay 15% of any (i) licensing revenue received that is related to OC-02 and (ii) revenue received from the sale of OC-02, up to a maximum aggregate amount of $10.0 million. No milestone was achieved or probable to be achieved or royalties payable accrued as of September 30, 2020 and as of December 31, 2019. License Agreement On October 18, 2019, the Company entered into a non-exclusive patent license agreement (the License Agreement) with Pfizer, which granted the Company non-exclusive rights under Pfizer’s patent rights covering varenicline tartrate to develop, manufacture, and commercialize the OC-01 varenicline product. Under the terms of the agreement, the Company made an upfront payment to Pfizer of $5 million. If the Company commercializes OC-01, it may be required to pay a single milestone payment in the very low double-digit millions and tiered royalties on net sales of OC-01 at percentages ranging from the mid-single digits to the mid-teens. The royalty obligation to Pfizer will commence upon the first commercial sale of OC-01 and will expire upon the later of (a) the expiration of all regulatory or data exclusivity granted to Pfizer in connection with varenicline in the United States; and (b) the expiration or abandonment of the last valid claims of the licensed patents. No milestone was achieved or probable to be achieved or royalties payable accrued as of September 30, 2020 and as of December 31, 2019. Contingencies and Indemnifications From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications, including for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. |
Nature of Business, Basis of _2
Nature of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed financial statements and accompanying notes have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). Accordingly, 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. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly the Company’s financial position as of September 30, 2020 and as of December 31, 2019, the results of operations for the three and nine months ended September 30, 2020 and 2019, and cash flows for the nine months ended September 30, 2020 and 2019. While management believes that the disclosures presented are adequate to make the information not misleading, these unaudited condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto in the Company’s latest year-end financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of expenses in the condensed financial statements and accompanying notes. Significant items subject to such estimates and assumptions include stock-based compensation and certain research and development accruals. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies various aspects related to the accounting for income taxes. This ASU removes exceptions to the general principles in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. For public companies, this ASU is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted. The Company adopted ASU 2019-12 in the second quarter of 2020 and its adoption did not have a material effect on the Company's financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. This ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2018-13 effective January 1, 2020 and its adoption did not have a material effect on the Company’s financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments . This ASU improves and clarifies various financial instruments topics, including the current expected credit losses standard issued in 2016. The ASU includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. The Company is currently evaluating the impact the adoption of this ASU will have on its financial statements and related disclosures, but does not expect adoption will have a material impact on the Company’s financial statements and disclosures. |
Reclassification | ReclassificationCertain prior year amounts have been reclassified for comparative purposes. |
Fair Value Measurements | The Company assesses the fair value of financial instruments as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured and recognized at fair value | As of September 30, 2020, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at September 30, 2020 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 213,331 $ — $ — $ 213,331 Total fair value of assets $ 213,331 $ — $ — $ 213,331 As of December 31, 2019, financial assets measured and recognized at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements at December 31, 2019 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Money market funds $ 138,147 $ — $ — $ 138,147 Total fair value of assets $ 138,147 $ — $ — $ 138,147 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Accrued compensation 2,230 1,214 Accrued professional services 1,311 1,163 Accrued research and development expense 3,206 2,219 Total accrued expenses and other current liabilities $ 6,747 $ 4,596 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Conversions of Stock | The Company reserved common stock for future issuance as follows: September 30, 2020 December 31, 2019 Outstanding options under the 2016 Plan 2,590,886 2,748,434 Outstanding options under the 2019 Plan 614,945 29,466 Equity awards available for grant under the 2019 Plan 2,113,001 2,747,047 Unvested restricted stock units (RSUs) 63,929 23,125 Shares reserved for purchase under the ESPP (a) 270,000 270,000 Total 5,652,761 5,818,072 (a) — Employee Stock Purchase Plan approved in October 2019, as further described in Note 5. Equity Incentive Plans . |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Activity in stock option plan | The following table summarizes stock option activity under the 2016 Plan and the 2019 Plan during the nine months ended September 30, 2020 (in thousands, except share, contractual term and per share data): Outstanding Options Number of Shares Underlying Outstanding Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, January 1, 2020 2,777,900 $ 4.59 8.7 $ 55,146 Options granted 586,729 32.22 Options exercised (151,710) 1.71 3,911 Options canceled (7,088) 17.52 91 Balance, September 30, 2020 3,205,831 9.75 8.3 42,912 Shares vested and exercisable as of September 30, 2020 1,424,602 3.16 7.7 25,577 Vested and expected to vest as of September 30, 2020 3,205,831 $ 9.75 8.3 $ 42,912 |
Activity for restricted stock units | Activity with respect to the Company's restricted stock units during the nine months ended September 30, 2020 was as follows (in thousands, except share, contractual term, and per share data): Outstanding RSUs Number of Shares Underlying Outstanding Awards Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2020 23,125 $ 16.00 2.8 $ 565 Restricted stock units granted 54,405 28.03 1,525 Restricted stock units vested (13,601) 28.03 — Balance, September 30, 2020 63,929 23.68 1.2 1,350 Unvested and expected to vest as of September 30, 2020 63,929 $ 23.68 1.2 $ 1,350 As of September 30, 2020, the total unrecognized stock-based compensation expense for RSUs was $1.3 million, which is expected to be recognized over a weighted average period of 1.2 years. |
Stock-based compensation expense | Total stock-based compensation expense recorded related to awards granted to employees and non-employees was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 246 $ 203 $ 702 $ 417 General and administrative 1,744 855 4,077 1,856 Total stock-based compensation expense $ 1,990 $ 1,058 $ 4,779 $ 2,273 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net loss $ (16,305) $ (11,497) $ (48,288) $ (25,987) Denominator: Weighted average shares outstanding, basic and diluted 25,797,282 1,419,064 23,544,035 1,414,475 Net loss per share, basic and diluted $ (0.63) $ (8.10) $ (2.05) $ (18.37) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: As of September 30, 2020 2019 Series A redeemable convertible preferred stock — 7,611,691 Series B redeemable convertible preferred stock — 6,581,590 Options to purchase common stock 3,205,831 2,559,935 Unvested restricted stock units 63,929 — Total 3,269,760 16,753,216 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Supplemental balance sheet information for lessee | Supplemental balance sheet information for the leases is as follows (in thousands): September 30, 2020 December 31, 2019 Operating lease right-of-use asset $ 739 $ 783 Finance lease right-of-use asset 38 14 Total right-of-use asset $ 777 $ 797 Operating lease liabilities $ 391 $ 290 Finance lease liabilities 18 6 Total lease liabilities $ 409 $ 296 Operating lease liabilities, non-current $ 353 $ 500 Finance lease liabilities, non-current 23 12 Total lease liabilities, non-current $ 376 $ 512 |
Schedule of maturities of lease liabilities | The maturities of the lease liabilities under non-cancelable operating and finance leases are as follows (in thousands): As of September 30, 2020 Finance Leases Operating Leases Total 2020 (remainder) $ 5 $ 107 $ 112 2021 18 432 450 2022 16 254 270 2023 4 — 4 Total undiscounted cash flows 43 793 836 Less: imputed interest (2) (49) (51) Total lease liability 41 744 785 Less: current portion (18) (391) (409) Lease liability $ 23 $ 353 $ 376 |
Nature of Business, Basis of _3
Nature of Business, Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | May 19, 2020 | Nov. 30, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Net loss | $ (16,305) | $ (15,464) | $ (16,519) | $ (11,497) | $ (10,730) | $ (3,760) | $ (48,288) | $ (25,987) | |||
Accumulated deficit | (132,519) | (132,519) | $ (84,231) | ||||||||
Price per share (in usd per share) | $ 16 | ||||||||||
Cash and cash equivalents | $ 214,331 | $ 72,278 | $ 214,331 | $ 72,278 | $ 139,147 | ||||||
IPO | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of common stock sold and issued (in shares) | 4,312,500 | 5,750,000 | |||||||||
Price per share (in usd per share) | $ 28 | ||||||||||
Aggregate gross proceeds from offering | $ 112,600 | $ 82,100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | $ 213,331 | $ 138,147 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 213,331 | 138,147 |
Quoted Price in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 213,331 | 138,147 |
Quoted Price in Active Markets for Identical Assets (Level 1) | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 213,331 | 138,147 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 2,230 | $ 1,214 |
Accrued professional services | 1,311 | 1,163 |
Accrued research and development expense | 3,206 | 2,219 |
Total accrued expenses and other current liabilities | $ 6,747 | $ 4,596 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | May 19, 2020USD ($)$ / sharesshares | Nov. 04, 2019USD ($)shares | Nov. 30, 2019USD ($)$ / sharesshares | Oct. 31, 2019 | Apr. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Sep. 30, 2020USD ($)shares$ / shares | Sep. 30, 2019USD ($)shares | Jun. 30, 2020shares | Mar. 31, 2020shares | Dec. 31, 2019$ / sharesshares | Jun. 30, 2019shares | Mar. 31, 2019shares | Feb. 15, 2019shares | Dec. 31, 2018shares |
Class of Stock [Line Items] | |||||||||||||||
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||
Number of votes per share | 1 | ||||||||||||||
Price per share (in usd per share) | $ / shares | $ 16 | ||||||||||||||
Reclassifications of temporary to permanent equity | $ | $ 135,900 | ||||||||||||||
Redeemable convertible preferred stock, outstanding (in shares) | 0 | 14,193,281 | 0 | 0 | 0 | 14,193,281 | 13,627,122 | 7,611,691 | |||||||
Reverse stock split ratio | 0.353 | ||||||||||||||
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | $ | $ 0 | $ 92,852 | |||||||||||||
Unvested restricted stock units | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 13,601 | ||||||||||||||
Series B redeemable convertible preferred stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Conversion of preferred stock, shares converted (in shares) | 14,193,281 | ||||||||||||||
Shares of redeemable convertible preferred stock authorized (in shares) | 6,581,590 | ||||||||||||||
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | $ | $ 8,000 | $ 85,000 | |||||||||||||
IPO | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Number of common stock sold and issued (in shares) | 4,312,500 | 5,750,000 | |||||||||||||
Price per share (in usd per share) | $ / shares | $ 28 | ||||||||||||||
Aggregate gross proceeds from offering | $ | $ 112,600 | $ 82,100 |
Stockholders' Equity - Reserved
Stockholders' Equity - Reserved Common Stock (Details) - shares | Sep. 30, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Outstanding options (in shares) | 3,205,831 | 2,777,900 |
Total (in shares) | 5,652,761 | 5,818,072 |
2016 Plan | ||
Class of Stock [Line Items] | ||
Outstanding options (in shares) | 2,590,886 | 2,748,434 |
2019 Plan | ||
Class of Stock [Line Items] | ||
Outstanding options (in shares) | 614,945 | 29,466 |
Equity awards available to grant (in shares) | 63,929 | 23,125 |
2019 Plan | Unvested restricted stock units | ||
Class of Stock [Line Items] | ||
Unvested RSUs under the 2019 plan (in shares) | 2,113,001 | 2,747,047 |
2019 ESPP | ||
Class of Stock [Line Items] | ||
Equity awards available to grant (in shares) | 270,000 | 270,000 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Oct. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance (in shares) | 5,652,761 | 5,818,072 | |
Weighted-average grant-date fair value of options (in dollars per share) | $ 23.64 | ||
Unrecognized stock-based compensation expense | $ 19.5 | ||
Weighted-average recognition period of unrecognized stock-based compensation expense (in years) | 3 years 1 month 6 days | ||
Stock options | 2019 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of estimated fair value of shares | 100.00% | ||
Term of outstanding options (in years) | 10 years | ||
Vesting Period of stock options (in years) | 4 years | ||
Incentive Stock Options | 2019 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of estimated fair value of shares | 110.00% | ||
Percent of shares owned by individual stockholder | 10.00% | ||
Employee Stock | 2019 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance (in shares) | 270,000 |
Equity Incentive Plans - Option
Equity Incentive Plans - Option Activity During The Period (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Number of Shares Underlying Outstanding Options | |||||
Beginning balance (in shares) | 2,777,900 | ||||
Options granted (in shares) | 586,729 | ||||
Options exercised (in shares) | (87,755) | (60,425) | (151,710) | ||
Options canceled (in shares) | (7,088) | ||||
Ending balance (in shares) | 3,205,831 | 3,205,831 | |||
Shares vested at end of period (in shares) | 1,424,602 | ||||
Shares exercisable at end of period (in shares) | 1,424,602 | 1,424,602 | |||
Shares vested and expected to vest at end of period (in shares) | 3,205,831 | 3,205,831 | |||
Weighted Average Exercise Price | |||||
Beginning balance (in dollars per share) | $ 4.59 | ||||
Options granted (in dollars per share) | 32.22 | ||||
Options exercise price (in dollars per share) | 1.71 | ||||
Options cancelled (in dollars per share) | 17.52 | ||||
Ending balance (in dollars per share) | $ 9.75 | 9.75 | |||
Shares vested and exercisable at end of period (in dollars per share) | 3,160 | 3,160 | |||
Shares vested and expected to vest at end of period (in dollars per share) | $ 9,750 | $ 9,750 | |||
Weighted average contractual term (in years) | 8 years 3 months 18 days | 8 years 8 months 12 days | |||
Shares vested and exercisable at end of period, weighted average remaining contractual term (in years) | 7 years 8 months 12 days | ||||
Shares vested and expected to vest at end of period, weighted average remaining contractual term (in years) | 8 years 3 months 18 days | ||||
Aggregate intrinsic value, options outstanding | $ 42,912 | $ 42,912 | $ 55,146 | ||
Aggregate intrinsic value, options exercised | 3,911 | ||||
Aggregate intrinsic value, options cancelled | 91 | ||||
Shares vested and exercisable at end of period, aggregate intrinsic value | 25,577 | 25,577 | |||
Shares vested and expected to vest at end of period, aggregate intrinsic value | $ 42,912 | $ 42,912 |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock Activity During the Period (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Shares vested in period (in shares) | (13,601) | |
Weighted Average Exercise Price | ||
Unrecognized stock-based compensation expense | $ 19,500 | |
Weighted-average recognition period of unrecognized stock-based compensation expense (in years) | 3 years 1 month 6 days | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Beginning balance (in shares) | 23,125 | |
Restricted stock units granted (in shares) | 54,405 | |
Ending balance (in shares) | 63,929 | 23,125 |
Vested and expected to vest (in shares) | 63,929 | |
Weighted Average Exercise Price | ||
Beginning outstanding balance (in dollars per share) | $ 16 | |
Restricted stock units granted, weighted average grant date fair value (in dollars per share) | 28.03 | |
Shares vested, weighted average grant date fair value (in dollars per share) | 28.03 | |
Ending outstanding balance (in dollars per share) | 23.68 | $ 16 |
Vested and expected to vest, weighted average grant date fair value (in dollars per share) | $ 23.68 | |
Weighted average remaining contractual term, restricted stock units (in years) | 1 year 2 months 12 days | 2 years 9 months 18 days |
Vested and expected to vest, weighted average remaining contractual term (in years) | 1 year 2 months 12 days | |
Restricted stock units outstanding, aggregate intrinsic value | $ 1,350 | $ 565 |
Restricted stock units granted, aggregate intrinsic value | 1,525 | |
Vested and expected to vest, aggregate intrinsic value | 1,350 | |
Unrecognized stock-based compensation expense | $ 1,300 | |
Weighted-average recognition period of unrecognized stock-based compensation expense (in years) | 1 year 2 months 12 days |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 1,990 | $ 1,058 | $ 4,779 | $ 2,273 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 246 | 203 | 702 | 417 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 1,744 | $ 855 | $ 4,077 | $ 1,856 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income (Loss) Attributable to Parent [Abstract] | ||||||||
Net loss | $ (16,305) | $ (15,464) | $ (16,519) | $ (11,497) | $ (10,730) | $ (3,760) | $ (48,288) | $ (25,987) |
Denominator: | ||||||||
Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 25,797,282 | 1,419,064 | 23,544,035 | 1,414,475 | ||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.63) | $ (8.10) | $ (2.05) | $ (18.37) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 3,269,760 | 16,753,216 |
Series A redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 0 | 7,611,691 |
Series B redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 0 | 6,581,590 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 3,205,831 | 2,559,935 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares) | 63,929 | 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Future minimum lease payments | $ 744 | ||
Lease payments required over life of lease | 793 | ||
Lease expense | $ 300 | $ 100 | |
Finance lease, discount rate | 3.00% | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, remaining lease terms | 1 year 10 months 24 days | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, remaining lease terms | 2 years 7 months 6 days | ||
Princeton New Jersey Office Space, Lease Ending in 2022 | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease contract | 3 years | ||
Future minimum lease payments | $ 800 | ||
Lease payments required over life of lease | $ 1,200 | ||
Remaining term on operating lease | 1 year 9 months 18 days |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 739 | $ 783 |
Finance lease right-of-use asset | 38 | 14 |
Total right-of-use asset | 777 | 797 |
Operating lease liabilities | 391 | 290 |
Finance lease liabilities | 18 | 6 |
Total lease liabilities | 409 | 296 |
Operating lease liabilities, non-current | 353 | 500 |
Finance lease liabilities, non-current | 23 | 12 |
Total lease liabilities, non-current | $ 376 | $ 512 |
Leases - Lease Maturity Schedul
Leases - Lease Maturity Schedules (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2020 (remainder) | $ 5 | |
2021 | 18 | |
2022 | 16 | |
2023 | 4 | |
Total undiscounted cash flows | 43 | |
Less: imputed interest | (2) | |
Total lease liability | 41 | |
Less: current portion | (18) | $ (6) |
Lease liability | 23 | 12 |
Operating Leases | ||
2020 (remainder) | 107 | |
2021 | 432 | |
2022 | 254 | |
2023 | 0 | |
Total undiscounted cash flows | 793 | |
Less: imputed interest | (49) | |
Total lease liability | 744 | |
Less: current portion | (391) | (290) |
Lease liabilities, non-current | 353 | 500 |
Total | ||
2020 (remainder) | 112 | |
2021 | 450 | |
2021 | 270 | |
2022 | 4 | |
Total undiscounted cash flows | 836 | |
Less: imputed interest | (51) | |
Total lease liability | 785 | |
Less: current portion | (409) | (296) |
Total lease liabilities, non-current | $ 376 | $ 512 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | Oct. 18, 2019 | Oct. 31, 2016 |
Licensing Agreements | ||
Lessee, Lease, Description [Line Items] | ||
Upfront payment for non-exclusive license agreement | $ 5,000,000 | |
Acquisition of OC-02 compound | ||
Lessee, Lease, Description [Line Items] | ||
Maximum milestone payments for acquisition | $ 37,000,000 | |
Term of obligation to pay royalties | 10 years | |
Required percentage of licensing revenue | 15.00% | |
Maximum aggregate amount of licensing revenue | $ 10,000,000 |