Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 11, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | MOVANO INC. | |
Trading Symbol | MOVE | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 32,772,060 | |
Amendment Flag | false | |
Entity Central Index Key | 0001734750 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40254 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0579295 | |
Entity Address, Address Line One | 6800 Koll Center Parkway | |
Entity Address, City or Town | Pleasanton | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94566 | |
City Area Code | (415) | |
Local Phone Number | 651-3172 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 17,133 | $ 5,710 |
Short-term investments | 22,169 | |
Payroll tax credit, current portion | 546 | 500 |
Prepaid expenses and other current assets | 1,166 | 691 |
Total current assets | 41,014 | 6,901 |
Property and equipment, net | 500 | 38 |
Payroll tax credit, noncurrent portion | 134 | |
Other assets | 57 | 10 |
Total assets | 41,571 | 7,083 |
Current liabilities: | ||
Accounts payable | 502 | 246 |
Paycheck Protection Program loan, current portion | 248 | |
Other current liabilities | 2,288 | 666 |
Total current liabilities | 2,790 | 1,160 |
Noncurrent liabilities: | ||
Convertible promissory notes, net | 11,342 | |
Accrued interest | 292 | |
Paycheck Protection Program loan, noncurrent portion | 103 | |
Warrant liability | 1,549 | |
Derivative liability | 121 | |
Early exercised stock option liability | 335 | 417 |
Other noncurrent liabilities | 64 | 161 |
Total noncurrent liabilities | 399 | 13,985 |
Total liabilities | 3,189 | 15,145 |
Commitments and contingencies (Note 13) | ||
Series A redeemable convertible preferred stock, $0.0001 par value, no and 2,692,253 shares authorized at September 30, 2021 and December 31, 2020; no and 2,692,253 shares issued and outstanding at September 30, 2021 and December 31, 2020; liquidation preference of $0 and $15,170 at September 30, 2021 and December 31, 2020 | 13,856 | |
Series B redeemable convertible preferred stock, $0.0001 par value, no and 5,238,095 shares authorized at September 30, 2021 and December 31, 2020; no and 4,942,319 shares issued and outstanding at September 30, 2021 and December 31, 2020; liquidation preference of $0 and $21,858 at September 30, 2021 and December 31, 2020 | 18,962 | |
Stockholders' equity (deficit): | ||
Preferred stock, $0.0001 par value, 5,000,000 and no shares authorized at September 30, 2021 and December 31, 2020; no shares issued and outstanding at September 30, 2021 and December 31, 2020 | ||
Common stock, $0.0001 par value, 75,000,000 and 22,069,652 shares authorized at September 30, 2021 and December 31, 2020; 32,772,060 and 6,393,069 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 3 | 1 |
Additional paid-in capital | 96,845 | |
Accumulated other comprehensive loss | (3) | |
Accumulated deficit | (58,463) | (40,881) |
Total stockholders' equity (deficit) | 38,382 | (40,880) |
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit) | $ 41,571 | $ 7,083 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, shares par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 75,000,000 | 22,069,652 |
Common stock, shares issued | 32,772,060 | 6,393,069 |
Common stock, shares outstanding | 32,772,060 | 6,393,069 |
Series A Redeemable Convertible Preferred Stock | ||
Preferred stock, shares par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,692,253 | |
Preferred stock, shares issued | 2,692,253 | |
Preferred stock, shares outstanding | 2,692,253 | |
Preferred stock, shares ,liquidation preference (in Dollars per share) | $ 0 | $ 15,170 |
Series B Redeemable Convertible Preferred Stock | ||
Preferred stock, shares par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,238,095 | |
Preferred stock, shares issued | 4,942,319 | |
Preferred stock, shares outstanding | 4,942,319 | |
Preferred stock, shares ,liquidation preference (in Dollars per share) | $ 0 | $ 21,858 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING EXPENSES: | ||||
Research and development | $ 3,803 | $ 2,637 | $ 8,928 | $ 6,460 |
General and administrative | 1,376 | 546 | 4,563 | 1,477 |
Total operating expenses | 5,179 | 3,183 | 13,491 | 7,937 |
Loss from operations | (5,179) | (3,183) | (13,491) | (7,937) |
Other income (expense), net: | ||||
Interest expense | (377) | (883) | (552) | |
Change in fair value of warrant liability | (1) | (1,581) | 8 | |
Change in fair value of derivative liability | 219 | 121 | 354 | |
Forgiveness of Paycheck Protection Program Loan | 351 | |||
Interest and other income, net | 6 | 1 | 15 | 22 |
Other income (expense), net | 6 | (158) | (1,977) | (168) |
Net loss | (5,173) | (3,341) | (15,468) | (8,105) |
Accretion and dividends on redeemable convertible preferred stock | (2,322) | (2,489) | (6,396) | |
Net loss attributable to common stockholders | (5,173) | (5,663) | (17,957) | (14,501) |
Net loss | (5,173) | (3,341) | (15,468) | (8,105) |
Other comprehensive loss: | ||||
Change in unrealized loss on available-for-sale securities | (2) | (3) | ||
Total comprehensive loss | $ (5,175) | $ (3,341) | $ (15,471) | $ (8,105) |
Net loss per share attributable to common stockholders, basic and diluted (in Dollars per share) | $ (0.16) | $ (1.87) | $ (0.74) | $ (5.22) |
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in Shares) | 32,268,890 | 3,029,765 | 24,200,475 | 2,777,510 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Series ARedeemable Convertible Preferred Stock | Series BRedeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 11,212 | $ 12,692 | $ (19,907) | $ (19,907) | |||
Balance (in Shares) at Dec. 31, 2019 | 2,692,253 | 4,942,319 | 4,539,584 | ||||
Stock-based compensation for stock grant | 76 | 76 | |||||
Stock-based compensation for stock grant (in Shares) | 140,000 | ||||||
Stock-based compensation | 165 | 165 | |||||
Accretion of Series A and Series B redeemable convertible preferred stock | 1,929 | 4,467 | (6,396) | (6,396) | |||
Reclassification of negative additional paid-in capital to accumulated deficit | 6,155 | (6,155) | |||||
Net loss | (8,105) | (8,105) | |||||
Balance at Sep. 30, 2020 | $ 13,141 | $ 17,159 | (34,167) | (34,167) | |||
Balance (in Shares) at Sep. 30, 2020 | 2,692,253 | 4,942,319 | 4,679,584 | ||||
Balance at Jun. 30, 2020 | $ 12,461 | $ 15,517 | (28,655) | (28,655) | |||
Balance (in Shares) at Jun. 30, 2020 | 2,692,253 | 4,942,319 | 4,539,584 | ||||
Stock-based compensation for stock grant | 76 | 76 | |||||
Stock-based compensation for stock grant (in Shares) | 140,000 | ||||||
Stock-based compensation | 75 | 75 | |||||
Accretion of Series A and Series B redeemable convertible preferred stock | 680 | 1,642 | (2,322) | (2,322) | |||
Reclassification of negative additional paid-in capital to accumulated deficit | 2,171 | (2,171) | |||||
Net loss | (3,341) | (3,341) | |||||
Balance at Sep. 30, 2020 | $ 13,141 | $ 17,159 | (34,167) | (34,167) | |||
Balance (in Shares) at Sep. 30, 2020 | 2,692,253 | 4,942,319 | 4,679,584 | ||||
Balance at Dec. 31, 2020 | $ 13,856 | $ 18,962 | $ 1 | (40,881) | (40,880) | ||
Balance (in Shares) at Dec. 31, 2020 | 2,692,253 | 4,942,319 | 6,393,069 | ||||
Stock-based compensation | 1,247 | 1,247 | |||||
Accretion of Series A and Series B redeemable convertible preferred stock | 686 | 1,803 | (2,489) | (2,489) | |||
Issuance of common stock upon exercise of options | 49 | 49 | |||||
Issuance of common stock upon exercise of options (in Shares) | 134,541 | ||||||
Vesting of early exercised stock options | 109 | 109 | |||||
Reclassification of negative additional paid-in capital | 2,114 | (2,114) | |||||
Conversion of preferred stock to common stock upon initial public offering | $ (14,542) | $ (20,765) | $ 1 | 35,306 | 35,307 | ||
Conversion of preferred stock to common stock upon initial public offering (in Shares) | (2,692,253) | (4,942,319) | 11,436,956 | ||||
Issuance of common stock upon initial public offering, net of issuance costs | $ 1 | 41,924 | 41,925 | ||||
Issuance of common stock upon initial public offering, net of issuance costs (in Shares) | 9,775,000 | ||||||
Issuance of underwriter warrants upon initial public offering | 2,349 | 2,349 | |||||
Reclassification of liability-classified warrants upon initial public offering | 3,130 | 3,130 | |||||
Conversion of convertible promissory notes and accrued interest upon initial public offering | 12,550 | 12,550 | |||||
Conversion of convertible promissory notes and accrued interest upon initial public offering (in Shares) | 5,015,494 | ||||||
Issuance of common stock for nonemployee services | 85 | 85 | |||||
Issuance of common stock for nonemployee services (in Shares) | 17,000 | ||||||
Beneficial conversion feature upon issuance of convertible promissory note | 471 | 471 | |||||
Other comprehensive loss | (3) | (3) | |||||
Net loss | (15,468) | (15,468) | |||||
Balance at Sep. 30, 2021 | $ 3 | 96,845 | (3) | (58,463) | 38,382 | ||
Balance (in Shares) at Sep. 30, 2021 | 32,772,060 | ||||||
Balance at Jun. 30, 2021 | $ 3 | 96,258 | (1) | (53,290) | 42,970 | ||
Balance (in Shares) at Jun. 30, 2021 | 32,772,060 | ||||||
Stock-based compensation | 552 | 552 | |||||
Vesting of early exercised stock options | 35 | 35 | |||||
Other comprehensive loss | (2) | (2) | |||||
Net loss | (5,173) | (5,173) | |||||
Balance at Sep. 30, 2021 | $ 3 | $ 96,845 | $ (3) | $ (58,463) | $ 38,382 | ||
Balance (in Shares) at Sep. 30, 2021 | 32,772,060 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (15,468) | $ (8,105) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 40 | 10 |
Forgiveness of Paycheck Protection Program loan | (351) | |
Stock-based compensation for stock grant | 76 | |
Stock-based compensation | 1,247 | 165 |
Accretion of debt discount on convertible promissory notes | 772 | 396 |
Accrued interest on convertible promissory notes | 115 | 166 |
Accretion of discount on short-term investments | 111 | |
Non-employee services under convertible promissory notes | 50 | 150 |
Compensation of non-employee services upon issuance of common stock | 74 | |
Change in fair value of derivative liability | (121) | (354) |
Issuance of convertible promissory notes for services | 160 | |
Change in fair value of warrant liability | 1,581 | (8) |
Changes in operating assets and liabilities: | ||
Payroll tax credit | 88 | (133) |
Prepaid expenses and other current assets | (672) | (518) |
Other assets | (47) | 79 |
Accounts payable | 115 | 141 |
Other current and noncurrent liabilities | 1,399 | (362) |
Net cash used in operating activities | (11,067) | (8,137) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (322) | |
Purchases of short-term investments | (23,312) | |
Maturities of short-term investments | 1,029 | |
Net cash used in investing activities | (22,605) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of convertible promissory notes | 11,753 | |
Payment of issuance costs | (676) | |
Proceeds from April 2020 Paycheck Protection Program Loan | 351 | |
Repayment of April 2020 Paycheck Protection Program Loan | (351) | |
Proceeds from May 2020 Paycheck Protection Program Loan | 351 | |
Issuance of common stock | 76 | |
Proceeds from issuance of shares upon Initial Public Offering - net of issuance costs | 45,019 | |
Net cash provided by financing activities | 45,095 | 11,428 |
Net increase in cash and cash equivalents | 11,423 | 3,291 |
Cash and cash equivalents at beginning of period | 5,710 | 4,291 |
Cash and cash equivalents at end of period | 17,133 | 7,582 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of warrants in connection with convertible promissory notes | 6 | |
Accretion of Series A redeemable convertible preferred stock | 686 | 1,929 |
Accretion of Series B redeemable convertible preferred stock | 1,803 | 4,467 |
Conversion of preferred stock to common stock upon initial public offering | 35,307 | |
Reclassification of liability-classified warrants upon initial public offering | 3,130 | |
Issuance of underwriter warrants upon initial public offering | 2,349 | |
Issuance of convertible promissory notes for completion of non-employee services | 500 | 160 |
Beneficial conversion feature upon issuance of convertible promissory note | 471 | |
Conversion of convertible promissory notes upon initial public offering | 12,550 | |
Vesting of common stock issued upon early exercise | 109 | |
Issuance of common stock for non-employee services | 11 | |
Reclassification of deferred offering costs upon initial public offering | 497 | |
Property and equipment purchases in accounts payable | $ 180 | |
Record derivative liability upon issuance of convertible promissory notes | $ 751 |
Business Organization, Nature o
Business Organization, Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Business Organization, Nature of Operations [Abstract] | |
BUSINESS ORGANIZATION, NATURE OF OPERATIONS | Note 1 – Business Organization, Nature of Operations Movano Inc. (the “Company” or “Movano” or “Our”) was incorporated in Delaware on January 30, 2018 as Maestro Sensors Inc. and changed its name to Movano Inc. on August 3, 2018. The Company is in the development-stage and is a health-focused technology company creating simple, smart, and personalized devices designed to help individuals on their health journey optimize for good health today and to help prevent and manage chronic diseases in the future. The Company’s devices are being developed to provide vital health information, including glucose and blood pressure data, in a variety of form factors to meet individual style needs and give users actionable feedback to improve the quality of their life. On April 28, 2021, the Company established Movano Ireland Limited, organized under the laws of Ireland, as a wholly owned subsidiary of the Company. Operations and activity at the wholly owned subsidiary were not significant for the three and nine months ended September 30, 2021. Since inception, the Company has engaged in only limited research and development of product candidates and underlying technology. As of December 31, 2020, the Company had not yet completed the development of its product and had not yet recorded any revenues. From February 2020 to December 2020, the Company issued subordinated convertible promissory notes for approximately $11.1 million in net proceeds (See Note 8). Additionally, in May 2020, the Company received a Paycheck Protection Program loan for $0.4 million (See Note 7). In December 2019, a novel coronavirus and the resulting disease (“COVID-19”) was reported, and in January 2020, the World Health Organization (“WHO”) declared it a Public Health Emergency of International Concern. In February 2020, the WHO raised its assessment of the COVID-19 threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and in March 2020, the WHO characterized COVID-19 as a pandemic. The Company is continuing to ascertain the long-term impact of the COVID-19 pandemic on its business, but given the uncertainty about the situation, the Company cannot estimate the impact to its financial statements from the economic crisis arising from COVID-19. The Company’s Registration Statement on Form S-1, as amended (Reg. No. 333-252671), was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on March 23, 2021. The registration statement registered the securities offered in the Company’s initial public offering (“IPO”). In the IPO, the Company sold 9,775,000 shares of common stock at a price to the public of $5.00 per share, including the full exercise of the underwriters’ option to purchase additional shares. The IPO closed on March 25, 2021 and the underwriters exercised their overallotment option as of March 25, 2021, as a result of which the Company raised net proceeds of $44.3 million after deducting $3.3 million in underwriting discounts, commissions, and expenses and $1.3 million in offering expenses paid or payable by the Company. National Securities Corporation (“NSC”) was the underwriter for the IPO, and also received a warrant related to the IPO, which is discussed in Note 11. No portion of the net proceeds from the IPO were used for payments made by the Company to its directors or officers or persons owning ten percent or more of its common stock or to their associates, or to the Company’s affiliates, other than payments in the ordinary course of business to officers for salaries and to nonemployee directors as compensation for board or board committee service. The Company has incurred losses from operations and has generated negative cash flows from operating activities since inception. The Company expects to continue to incur net losses for the foreseeable future as it continues the development of its technology. The Company’s ultimate success depends on the outcome of its research and development and commercialization activities, for which it expects to incur additional losses in the future. Through September 30, 2021, the Company has relied primarily on the proceeds from equity offerings to finance its operations. The Company expects to require additional financing to fund its future planned operations, including research and development and commercialization of its products. The Company will likely raise additional capital through the issuance of equity, borrowings, or strategic alliances with partner companies. However, if such financing is not available at adequate levels, the Company would need to reevaluate its operating plans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation. Intercompany transactions are eliminated in the condensed consolidated financial statements. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The condensed consolidated balance sheet as of December 31, 2020 has been derived from audited financial statements at that date but does not include all the information required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the preceding fiscal year included in Amendment No. 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 17, 2021. Reclassification Certain reclassifications have been made to prior periods’ condensed consolidated financial statements to conform to the current period presentation. These reclassifications did not result in any change in previously reported net loss, total assets or stockholders’ equity (deficit). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the accrual of research and development expenses, the valuation of common stock, stock options and warrants, the valuation of the embedded redemption derivative liability and income taxes. Estimates are periodically reviewed considering changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. The Company’s chief operating decision maker is the chief executive officer. Cash, Cash Equivalents and Short-term Investments The Company invests its excess cash primarily in money market funds, commercial paper and short-term debt securities. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company classifies all marketable securities for use in current operations, even if the security matures beyond 12 months, and presents them as short-term investments in the condensed consolidated balance sheets. The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for the purchased marketable securities as available-for-sale. After considering the Company’s capital preservation objectives, as well as its liquidity requirements, the Company may sell securities prior to their stated maturities. The Company carries its available-for-sale short-term investments at fair value. The Company reports the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be credit-related, which are recorded as other income (expense), net in the condensed consolidated statements of operations and comprehensive loss and reports an allowance for credit losses in short-term investments on the balance sheet, if any. The Company determines any realized gains or losses on the sale of short-term investments on a specific identification method and records such gains and losses as a component of other income (expense), net. Interest earned on cash, cash equivalents, and short-term investments is recorded in interest and other income, net in the accompanying condensed consolidated statements of operations and comprehensive loss and was insignificant during the three and nine months ended September 30, 2021 or 2020. The Company's investment policy only allows purchases of high credit quality instruments and provides guidelines on concentrations and credit quality to ensure minimum risk of loss. The Company evaluates whether the unrealized loss on available-for-sale short-term investments is the result of the credit worthiness of the securities it held, or other non-credit-related factors such as liquidity by reviewing a number of factors such as the implied yield of the corporate note based on the market price, the nature of the invested entity's business or industry, market capitalization relative to debt, changes in credit ratings, and the market prices of the instruments subsequent to the period end. Concentrations of Credit Risk and Off-Balance Sheet Risk Cash and cash equivalents are financial instruments that are potentially subject to concentrations of credit risk. All cash and cash equivalents are held in United States financial institutions. Cash equivalents consist of interest-bearing money market accounts. The amounts deposited in the money market accounts exceed federally insured limits. The Company has not experienced any losses related to this account and believes the associated credit risk to be minimal due to the financial condition of the depository institutions in which those deposits are held. The Company has no financial instruments with off-balance sheet risk of loss. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were comprised of prepaid expenses, other current receivables, and deferred offering costs, which consist of legal, accounting, filing and other fees related to the IPO that were capitalized prior to the IPO. The deferred offering costs were offset against proceeds from the IPO within additional paid-in capital upon the effective date of the IPO. As of September 30, 2021 and December 31, 2020, offering costs of approximately $0 and $0.5 million were capitalized, respectively. Paycheck Protection Program Loan The Company accounted for funds received from the Paycheck Protection Program as a financial liability with interest accrued and expensed over the term of the loan under the effective interest method. The loan remained recorded as a liability until the Company was legally released from the liability. The amount that was ultimately forgiven by the lender was recognized in the condensed consolidated statement of operations and comprehensive loss as a gain on extinguishment. Convertible Financial Instruments The Company bifurcates embedded redemption and conversion options from their host instruments and accounts for them as freestanding derivative financial instruments at fair value if certain criteria are met. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or their earliest date of redemption. From time to time, the Company issues convertible financial instruments to nonemployees in payment for services that are provided. Until the services are completely rendered, the Company will expense the principal and any interest earned prior to the service completion to the representative expense account for the services performed and will record a noncurrent liability for the expected amount of the principal balance. Upon completion of the services, the Company will reclassify the noncurrent liability balance to the balance of an outstanding convertible financial instrument and assess the embedded redemption and conversion options that are applicable at that time. Beneficial Conversion Feature If the conversion feature of conventional convertible promissory notes provides for a rate of conversion that is below fair value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount and as additional paid-in capital on the condensed consolidated balance sheet. In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. Redeemable Convertible Preferred Stock The Company records all shares of redeemable convertible preferred stock at their respective issuance price less issuance costs on the dates of issuance. Under certain circumstances the Company would have been required to redeem the Series A and Series B redeemable convertible preferred stock unless an IPO had been consummated prior to April 1, 2021, or an extension or waiver was obtained upon approval of a majority of the holders of such preferred stock. As the preferred stock became redeemable due to the passage of time, the Company considered the preferred stock to be redeemable as of April 1, 2021. The Company records the accretion of the Series A and B preferred stock balances to their respective redemption amounts using the effective interest method. The redeemable convertible preferred stock is presented outside of stockholders’ deficit on the condensed consolidated balance sheet as of December 31, 2020. Upon the IPO, the redeemable convertible preferred stock converted in to 11,436,956 shares of common stock. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. As the Company maintained a full valuation allowance against its deferred tax assets, the changes resulted in no provision or benefit from income taxes during the three and nine months ended September 30, 2021 and 2020. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes a liability for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on the Company’s tax returns. To the extent that the assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The liability is adjusted considering changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of liability provisions and changes to the liability that are considered appropriate. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur. Stock-Based Compensation The Company measures equity classified stock-based awards granted to employees, directors, and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. The Company accounts for forfeitures as they occur. Early Exercised Stock Option Liability Upon the early exercise of stock options by employees, the Company records as a liability the purchase price of unvested common stock that the Company has a right to repurchase if and when the employment of the stockholder terminates before the end of the requisite service period. The proceeds originally recorded as a liability are reclassified to additional paid-in capital as the Company’s repurchase right lapses. Net Loss per Share Attributable to Common Stockholders Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. The net loss attributable to common stockholders is calculated by adjusting the net loss of the Company for the accretion on the Series A and B redeemable convertible preferred stock and cumulative dividends on Series A and B redeemable convertible preferred stock. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since the effects of potentially dilutive securities are antidilutive. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | Note 3 – FAIR VALUE MEASUREMENTS Financial assets and liabilities are recorded at fair value. The Company uses a three-level hierarchy, which prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Fair value focuses on an exit price and is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in those financial instruments. A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly. Level 3 Significant unobservable inputs that cannot be corroborated by market data. The Company measures its cash equivalents, short-term investments and derivative financial instruments at fair value. The Company classifies its cash equivalents and short-term investments within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company’s Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Company’s Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily-available pricing sources for the identical underlying security that may not be actively traded. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate. At December 31, 2020, the warrants related to the Series A preferred stock issuance, the Series B preferred stock issuance, and the convertible promissory notes and the derivative liability related to the issuance of convertible promissory notes are classified within level 3 of the valuation hierarchy. The instruments are not present at September 30, 2021 in light of accounting ramifications of the IPO, which are discussed further in Note 8 and Note 11. The carrying amounts of prepaid expenses, payroll tax credit, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. Based upon interest rates currently available to the Company for debt with similar terms, the carrying values of the Company’s convertible promissory notes and Paycheck Protection Program Loan are approximately equal to their fair values. The following tables provide a summary of the assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 (in thousands). September 30, 2021 Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 10,156 $ 10,156 $ — $ — Commercial paper 6,409 — 6,409 — Total cash equivalents $ 16,565 $ 10,156 $ 6,409 $ — Short-term investments: Certificates of deposit $ 250 $ — $ 250 $ — Commercial paper 6,199 — 6,199 — Corporate notes 13,468 — 13,468 — Municipal bonds 2,252 — 2,252 — Total short-term investments $ 22,169 $ — $ 22,169 $ — December 31, 2020 Fair Value Level 1 Level 2 Level 3 Cash equivalents – money market funds $ 5,181 $ 5,181 $ — $ — Warrant liability $ 1,549 $ — $ — $ 1,549 Derivative liability $ 121 $ — $ — $ 121 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | Note 4 – CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash, cash equivalents and short-term investments consist of the following (in thousands): September 30, December 31, 2021 2020 Cash and cash equivalents: Cash $ 568 $ 529 Money market funds 10,156 5,181 Commercial paper 6,409 — Total cash and cash equivalents $ 17,133 $ 5,710 Short-term investments: Certificates of deposit $ 250 $ — Commercial paper 6,199 — Corporate notes 13,468 — Municipal bonds 2,252 — Total short-term investments $ 22,169 $ — The contractual maturities of short-term investments classified as available-for-sale as of September 30, 2021 were as follows (in thousands): September 30, 2021 Due within one year $ 21,329 Due after one year through five years 840 Total $ 22,169 The following table summarizes the unrealized gains and losses related to short-term investments classified as available-for-sale on the Company’s condensed consolidated balance sheet (in thousands): September 30, 2021 Amortized Gross Unrealized Gains Gross Unrealized Losses Aggregate Estimated Fair Value Short-term investments: Certificates of deposit $ 250 $ — $ — $ 250 Commercial paper 6,199 — — 6,199 Corporate notes 13,471 1 (4 ) 13,468 Municipal bonds 2,252 — — 2,252 Total short-term investments $ 22,172 $ 1 $ (4 ) $ 22,169 As of September 30, 2021, the gross unrealized loss on available-for-sale short-term investments was immaterial and there were no expected credit losses related to the Company's available-for-sale debt securities. The Company has determined that all unrealized losses are temporary. As of September 30, 2021, no allowance for credit losses in short-term investments was recorded. No sales of available-for-sale short-term investments occurred during the three and nine months ended September 30, 2021. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 5 – Property and Equipment Property and equipment, net, as of September 30, 2021 and December 31, 2020, consisted of the following (in thousands): September 30, December 31, 2021 2020 Office equipment and furniture $ 218 $ 43 Software 115 — Test equipment 234 22 Total property and equipment 567 65 Less: accumulated depreciation (67 ) (27 ) Total property and equipment, net $ 500 $ 38 Total depreciation and amortization expense related to property and equipment for the three and nine months ended September 30, 2021 was approximately $22,000 and $40,000, respectively. Total depreciation expense related to property and equipment for the three and nine months ended September 30, 2020 was approximately $4,000 and $10,000, respectively. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Current Liabilities [Abstract] | |
OTHER CURRENT LIABILITIES | Note 6 – Other Current Liabilities Other current liabilities as of September 30, 2021 and December 31, 2020 consisted of the following (in thousands): September 30, December 31, 2021 2020 Accrued research and development $ 417 $ 197 Accrued compensation 1,530 184 Accrued vacation 260 192 Accrued legal expense 1 41 Accrued accounting and consulting expense 16 40 Other 64 12 $ 2,288 $ 666 |
Paycheck Protection Program Loa
Paycheck Protection Program Loan | 9 Months Ended |
Sep. 30, 2021 | |
Paycheck Protection Program Loan [Abstract] | |
PAYCHECK PROTECTION PROGRAM LOAN | NOTE 7 – PAYCHECK PROTECTION PROGRAM LOAN The Paycheck Protection Program (“PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). On April 23, 2020, the Company entered into a promissory note with Silicon Valley Bank evidencing an unsecured loan in the aggregate amount of approximately $351,000 under the PPP (the “PPP Loan”). The interest rate on the PPP Loan was 1.00% and the term was two years, with a deferral of payments for ten months from the date of origination. On May 7, 2020, the Company elected to repay the PPP loan in full until further guidance was provided by the SBA on the loan origination and eligibility requirements. On May 27, 2020, the Company entered into a promissory note with Silicon Valley Bank evidencing an unsecured loan in the aggregate amount of approximately $351,000, with all other terms the same as the prior loan. Beginning eleven months from the date of the PPP Loan, the Company was required to make monthly payments of principal and interest. The promissory note evidencing the PPP Loan contained customary events of default relating to, among other things, payment defaults or breaching the terms of the PPP Loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company. The PPP Loan was repayable at any time by the Company without prepayment penalties. Funds from the PPP Loan could be used for payroll costs, costs used to continue group health care benefits, mortgage payments, rent, utilities, and interest on other debt obligations, if those debt obligations were incurred before February 15, 2020. The Company used the entire PPP Loan amount for qualifying expenses. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for qualifying expenses. On May 28, 2021, the Company received full loan forgiveness for obligations related to the PPP loan. The Company accounted for the PPP loan as debt, and the loan forgiveness was accounted for as a debt extinguishment. The amount of loan and interest forgiven is recognized as a gain upon debt extinguishment and is reported in the accompanying condensed consolidated statement of operations and comprehensive loss for the three months and nine months ended September 30, 2021. |
Convertible Promissory Notes
Convertible Promissory Notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE PROMISSORY NOTES | NOTE 8 – CONVERTIBLE PROMISSORY NOTES On various dates between February 2020 and December 2020, the Company received total proceeds of approximately $11.8 million from the issuance of subordinated convertible promissory notes (“Convertible Notes”) to investors. The Convertible Notes accrued interest at 4% per year and the principal balance of the Convertible Notes, plus all accrued interest would have been due on February 28, 2022 (the Maturity Date). The Convertible Notes were convertible upon the occurrence of certain events, including upon a change in control or a next equity financing. The conversion features are described as follows: Conversion Event Description Conversion Price Automatic Conversion – Next Qualified Equity Financing Upon the closing of a Next Qualified Equity Financing (defined as greater than $5,000,000), the Convertible Notes are converted into shares issued equal to the outstanding balance divided by the Conversion Price. An amount equal to the lower of (i) 80% of the lowest per-share selling price of such stock sold by the Company at the Next Qualified Equity Financing or (ii) the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents (defined as fully diluted common shares for all outstanding securities, excluding common shares reserved for issuance or exercise of options or grants in the future) immediately prior to Next Qualified Equity Financing closing. Automatic Conversion – Change of Control (defined as consolidation or merger of the Company or transfer of a majority of share ownership or disposition of substantially all assets of the Company) If at any time before payment or conversion of the balance, the Company effects a Change of Control, all of the balance outstanding immediately prior to such Change of Control will automatically convert into the most senior series of Preferred Stock outstanding immediately prior to such Change of Control at the Conversion Price. An amount equal to the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to such Change of Control. Automatic Conversion – Maturity Date If the Company has not paid or otherwise converted the entire balance before the Maturity Date, then on the Maturity Date, all of the balance then outstanding will automatically convert into the most senior series of Preferred Stock outstanding as of the Maturity Date at the Conversion Price then in effect. An amount equal to the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents as of the Maturity Date. Automatic Conversion – IPO If at any time before payment or conversion of the balance, the Company consummates an IPO, all of the balance outstanding immediately prior to the IPO will automatically convert into Common Stock at the Conversion Price. An amount equal to the lower of (i) 80% of the lowest per-share selling price of the Common Stock sold by the Company in an IPO or (ii) the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to closing of an IPO. Conversion Event Description Conversion Price Optional Conversion If at any time while the Convertible Notes are still outstanding the Company sells stock in a single transaction or in a series of related transactions that does not constitute a Next Qualified Equity Financing (and thus is defined as a Non-qualified Financing), then, at the closing of the Nonqualified Financing, the balance then outstanding may be converted, at the option of the holder, into that number of shares of Non-qualified Preferred Stock (preferred stock sold in the Non-qualified Financing) determined by dividing (i) the balance by (ii) the Conversion Price then in effect. An amount equal to the lowest per share selling price of Nonqualified Preferred Stock sold by the Company for new cash investment in the Non-Qualified Financing. As part of the Convertible Note financing, the Company agreed to issue subordinated convertible promissory notes to nonemployees in exchange for services totaling $747,000. As of December 31, 2020, Convertible Notes totaling approximately $247,000 were issued to nonemployees in exchange for services. As of December 31, 2020, future services of $500,000 of the original $747,000 had not been fully completed. A portion of those services that had been completed were recorded as a component of other noncurrent liabilities of $150,000 on the condensed consolidated balance sheet at December 31, 2020. During the three months ended March 31, 2021, additional nonemployee services of $50,000 were completed, which were recorded as a component of other noncurrent liabilities. In connection with the IPO, a Convertible Note for $500,000 was issued for nonemployee services and the $300,000 of the nonemployee services that remained to be completed was recorded in prepaid assets and other current expenses on the condensed consolidated balance sheet. The Company calculated a BCF of approximately $500,000 upon the issuance of this Convertible Note. During the three and nine months ended September 30, 2020, nonemployee services of services of $260,000 and $310,000 were completed. In connection with the Convertible Notes, the Company issued 10,000 and 204,500 warrants to purchase common stock, to a noteholder and its brokers, respectively. The warrants have a five-year life and are initially exercisable into common stock at $2.97 per share. (See Note 11 – Common Stock Warrants for fair value computation and discussion of the change in the exercise price). During March 2021, 42,220 of these warrants to purchase common stock were cancelled. Issuance costs and commissions to brokers to obtain the Convertible Notes were recorded as a debt discount in the amount of approximately $83,000 and $612,000, respectively. The Company determined that the terms that would result in Convertible Notes automatically converting at (i) 80% of the lowest per-share selling price of the stock sold by the Company in the Next Qualified Equity Financing or (ii) 80% of the lowest per-share selling price of the Conversion Stock sold by the Company in an IPO are deemed a redemption feature. The Company also concluded that those redemption features require bifurcation from the Convertible Notes and subsequent accounting in the same manner as a freestanding derivative. Accordingly, subsequent changes in the fair value of these redemption features are measured at each reporting period and recognized in the condensed consolidated statement of operations and comprehensive loss. The sum of the fair value of the warrants, the fair value of the embedded redemption derivative liability, issuance costs, BCF and commission payments for the Convertible Notes were recorded as debt discounts to be amortized to interest expense over the respective term using the effective interest method. During the three and nine months ended September 30, 2021, the Company recognized interest expense of approximately $0 and $0.8 million from the accretion of those debt discounts, respectively. During the three and nine months ended September 30, 2020, the Company recognized interest expense of approximately $0.3 million and $0.4 million, respectively, from the accretion of those debt discounts. The Convertible Notes automatically converted upon the closing of the IPO at the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to the closing of the IPO. The outstanding principal ($12.5 million) and interest due ($0.4 million) under the Convertible Notes, in an aggregate amount of $12.9 million, was converted into 5,015,494 shares of the Company’s common stock at the implied per share conversion of $2.5736. The carrying value of the Convertible Notes was credited to common stock and additional paid-in capital on the condensed consolidated balance sheet. The remaining unamortized discount of $0.4 million was recorded to additional paid-in capital and no gain or loss was recognized on the conversion. The remaining unamortized discount related to the BCF of $0.5 million was recognized immediately as interest expense in the condensed consolidated statement of operations and comprehensive loss. Derivative Liability As described above, the redemption provisions embedded in the Convertible Notes required bifurcation and measurement at fair value as a derivative. The fair value of the Convertible Note embedded redemption derivative liability was calculated by determining the value of the debt component of the Convertible Notes at various conversion or maturity dates using a Probability Weighted Expected Return valuation method. The fair value calculation placed greater probability on the occurrence of the conversion or the maturity date scenario, with little or no weight given to other scenarios. The fair value of the embedded redemption derivative liability is significantly influenced by the discount rate, the remaining term to maturity and the Company’s assumptions related to the probability of a qualified financing or no financing prior to maturity. The Financing Date is the estimated date of an automatic conversion as the result of a Next Qualified Equity Financing or an IPO. The Company estimated the fair value of the embedded redemption derivative liability using the following weighed average assumptions as of December 31, 2020: Financing Date Maturity Date Probability of Conversion at Financing 80% 20% Expected Term March 2021 February 2022 Conversion Ratio 1.25 N/A Discount Rate 1.68% to 11.67% N/A The Company estimated the fair value of the embedded redemption derivative liability using the following weighed average assumptions as of September 30, 2020: Financing Date Maturity Date Probability of Conversion at Financing 80% 20% Expected Term March 2021 February 2022 Conversion Ratio 1.25 N/A Discount Rate 5.19% to 11.67% N/A The embedded redemption derivative liability no longer had significant value as of the date of the Company’s IPO since the conversion of the Convertible Notes occurred via a redemption feature that was not bifurcated as a derivative. Upon the conversion of the Convertible Notes at the IPO, the Company recorded a final change in the fair value of the derivative liability of $0.1 million in the condensed consolidated statement of operations and comprehensive loss, and the derivative liability was extinguished. The changes in the fair value of the derivative liability for the nine months ended September 30, 2021 and for the three and nine months ended September 30, 2020 were as follows: December 31, Fair Value at Change in September 30, Derivative liability $ 121 — (121 ) $ — June 30, Fair Value at Change in September 30, Derivative liability $ 453 164 (220 ) $ 397 December 31, Fair Value at Change in September 30, Derivative liability $ — 751 (354 ) $ 397 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Redeemable Convertible Preferred Stock Disclosure [Abstract] | |
REDEEMABLE CONVERTIBLE PREFERRED STOCK | Note 9 – REDEEMABLE Convertible Preferred Stock On March 28, 2019, the Company’s Second Amended and Restated Certificate of Incorporation was filed with the Delaware Secretary of State which (i) increased the number of shares of common stock the Company is authorized to issue to 22,069,652; (ii) increased the number of shares of preferred stock the Company was authorized to issue to 7,930,348, of which 2,692,253 shares were designated as Series A preferred stock and 5,238,095 shares were designated as Series B preferred stock; (iii) amended and set a fixed conversion price of Series A preferred stock to $1.40; and (iv) extended the IPO Commitment Date from April 1, 2020 to no later than March 31, 2021. The Company assessed the accounting treatment of the amendment of the Certificate of Incorporation related to the Series A preferred stock and determined that the amendment is a modification for accounting purposes. After considering the nature of the changes as a result of the amendment, the Company determined the modification of the Series A preferred stock did not have a significant impact on the financial statements. On various dates from March 2019 through August 2019, the Company issued 4,942,319 shares of Series B preferred stock at $2.10 per share for net cash proceeds of $9.3 million. The Series B preferred stock has a liquidation preference of an amount equal to the greater of (i) two times the original issue price of $2.10 per share (adjusted for stock splits, stock dividends, stock combination, recapitalizations and certain similar events) plus any declared and unpaid dividends thereon or (ii) the amount per share that would have been received by the holders had the Series B preferred stock been converted into common stock immediately prior to such liquidation, dissolution or winding-up plus any declared and unpaid dividends thereon, pari passu with the Series A preferred stock and in preference to any distributions to the holders of common stock. The Series B preferred stock was measured and recorded at the transaction price net of issuance costs, resulting in an initial value of $9.3 million. The accretion to the carrying value of the Series B preferred stock was recorded as a charge to additional paid in capital. The accumulated accretion as of the IPO date was $11.5 million, which resulted in an adjusted Series B preferred stock carrying value of $20.8 million. The accretion to the carrying value of the Series A preferred stock was recorded as a charge to additional paid-in capital. The accumulated accretion as of the IPO date was $8.2 million, which resulted in an adjusted Series A preferred stock carrying value of $14.5 million. Upon the IPO, the redeemable convertible preferred stock converted in to 11,436,956 shares of common stock and no shares of redeemable convertible preferred stock remain outstanding as of September 30, 2021. On March 24, 2021, the Company’s Third Amended and Restated Certificate of Incorporation was filed with the Delaware Secretary of State which (i) eliminated the Company’s Series A and Series B preferred stock, (ii) increased the authorized number of shares of common stock to 75,000,000 and (iii) authorized 5,000,000 shares of preferred stock at par value of $0.0001 per share. The significant rights and preferences of the preferred stock will be established by the Company’s Board of Directors (the “Board”) upon issuance of any such series of preferred stock in the future. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | Note 10 – Common Stock As of September 30, 2021 and December 31, 2020, the Company was authorized to issue 75,000,000 and 22,069,652 shares of common stock with a par value of $0.0001 per share, and 32,772,060 and 6,393,069 shares were issued and outstanding, respectively. Conversion of Redeemable Convertible Preferred Stock In connection with the closing of the IPO, on March 25, 2021, the outstanding shares of the Company’s Series A and Series B redeemable convertible preferred stock were converted into 11,436,956 shares of the Company’s common stock. Conversion of Convertible Notes In connection with the funding of the IPO, on March 25, 2021, the principal and interest due under the Company’s Convertible Notes, in an aggregate amount of $12.9 million, was converted into 5,015,494 shares of the Company’s common stock. Third Amended and Restated Certificate of Incorporation In connection with the IPO, the Third Amended and Restated Certificate of Incorporation became effective and authorized 75,000,000 shares of common stock at par value of $0.0001 per share. Dividends may be declared and paid on the common stock when and if determined by the Board of Directors. Upon liquidation, each common stockholder is entitled to receive an equal portion of the distribution. Each holder of common stock will have one vote in respect of each share of common stock held. The rights and privileges listed above will be subject to preferential rights of any then outstanding shares of preferred stock. At the IPO date, the Company issued 17,000 shares of common stock for nonemployee services valued at $85,000. Common stock reserved for future issuance at September 30, 2021 is summarized as follows: Warrants to purchase common stock 1,938,143 Stock options outstanding 4,877,637 Stock options available for future grants 830,322 Total 7,646,102 Restricted Stock Purchase Agreements In 2018, 400,000 shares were issued to the Company’s founder at inception pursuant to a Restricted Stock Purchase Agreement. The Restricted Stock Purchase Agreement stipulates that in the event of the voluntary or involuntary termination of the Company’s founder’s continuous service status for any reason (including death or disability), with or without cause, the Company or its assignees(s) shall have an option (“Repurchase Option”) to repurchase all or any portion of the shares held by the Purchaser as of the termination date which have not yet been released from the Company’s Repurchase Option at the original purchase price of $0.0125 per share. Shares are to be released from the Repurchase Option over four years. The initial 12/48ths of the shares were released on January 30, 2019, and an additional 1/48th of the shares are being released monthly thereafter. As of September 30, 2021 and December 31, 2020, 33,333 and 108,333 of the shares issued to the Company’s founder remain subject to the Repurchase Option, respectively. These shares were originally purchased by the Company’s founder at $0.0125 per share. In 2018, 3,640,000 shares were also issued pursuant to a Restricted Stock Purchase Agreement. The holders of these shares are considered related parties of the Company because the holders are directly related either to the founder or to the legal counsel of the Company. The same terms described above apply to these issuances. As of September 30, 2021 and December 31, 2020, 303,333 and 985,834 of the shares issued to these holders remain subject to the Repurchase Option, respectively. These shares were originally purchased by the holders at $0.0125 per share. Early Exercised Stock Option Liability During the three and nine months ended September 30, 2021, none and 50,000 shares, respectively, were issued upon the early exercise of common stock options. The Exercise Notice (Early Exercise) Agreement states that the Company has the option to repurchase all or a portion of the unvested shares in the event of the separation of the holder from service to the Company. The shares continue to vest in accordance with the original vesting schedules of the former option agreements. There were no early exercises during the three and nine months ended September 30, 2020. As of September 30, 2021 and December 31, 2020, the Company has recorded a repurchase liability for approximately $335,000 and $417,000 for 677,085 and 856,814 shares that remain unvested. The weighted average remaining vesting period is approximately 2.3 years. |
Common Stock Warrants
Common Stock Warrants | 9 Months Ended |
Sep. 30, 2021 | |
Common Stock Warrants [Abstract] | |
COMMON STOCK WARRANTS | Note 11 – Common Stock Warrants Preferred A Placement Warrants On February 22, 2018, the Company entered into an agreement with NSC, pursuant to which the Company engaged NSC as the Company’s exclusive financial advisor and placement agent in connection with an offering or series of offerings of Company securities. Specifically, NSC was the placement agent in connection with the sale of its Series A preferred stock. In connection with the closing of Series A preferred stock offering, the Company issued warrants (“Preferred A Placement Warrants”) to purchase a total of 133,648 shares of its common stock to NSC on March 14, 2018 and April 23, 2018. On June 1, 2018, the Preferred A Placement Warrants were reassigned among NSC and three individuals at Liquid Venture Partners (“LVP”). The Preferred A Placement Warrants have a term of five years and the exercise price is equal to the conversion price of Series A preferred stock upon its conversion. The Preferred A Placement Warrants included an adjustment provision pursuant to which upon completion of the IPO, and the conversion of the Series A preferred stock in connection therewith, the number of shares issuable upon exercise of the warrants was adjusted to be equal to 10% of the aggregate number of common stock shares issued by the Company upon conversion of 1,336,485 shares of Series A preferred stock (the “Preferred A Adjustment Provision”). The Second Amended and Restated Certificate of Incorporation that was approved on March 28, 2019 amended and fixed the conversion price of the Series A preferred stock at $1.40. As a result, on August 28, 2019, the Company elected to amend and reissue the Preferred A Placement Warrants, thereby reducing the exercise price to $1.40 and increasing the number of warrant shares by 109,200 to a total of 242,847 warrant shares. In connection with the IPO, pursuant to the Preferred A Adjustment Provision variable settlement provision, the number of shares of common stock subject to the Preferred A Placement Warrants settled, resulting in an additional 50,195 shares of common stock. Preferred A Lead Investor Warrants During February 2021, a total of 52,500 warrants for common stock were issued to advisors to the Company at a weighted average exercise price of $0.0125 per share. The resulting fair value of the warrants for common stock is not significant. Preferred B Placement Warrants On April 16, 2019, in connection with the Series B preferred stock offering, the Company issued warrants (“Preferred B Placement Warrants”) to purchase 414,270 shares of its common stock to NSC, Newbridge Securities Corporation, and five individuals at LVP. The Preferred B Placement Warrants have a term of five years and their exercise price is equal to $2.10, the conversion price of Series B preferred stock. The Preferred B Placement Warrants included an adjustment provision pursuant to which upon completion of the IPO, and the conversion of the Series B preferred stock in connection therewith, the number of shares issuable upon exercise of the warrants was adjusted to be equal to 10% of the aggregate number of common stock shares issued by the Company upon conversion of 4,142,270 shares of Series B preferred stock (the “Preferred B Adjustment Provision”). In connection with the IPO, pursuant to the Preferred B Adjustment Provision variable settlement provision, the number of shares of common stock subject to the Preferred B Placement Warrants settled, resulting in an additional 49,528 shares of common stock. Convertible Note Placement Warrants In connection with the Convertible Notes, the Company issued 10,000 and 214,050 warrants to purchase common stock, to a noteholder and its brokers, respectively. The warrants have a five-year life and are initially exercisable into common stock at $2.97 per share with the warrants ultimately being exercisable into common stock at the final Conversion Price of the Convertible Notes. When the Convertible Notes converted at the IPO date as described in Note 9, the exercise price of the warrants was adjusted to equal the Conversion Price, which is $2.57. During March 2021, 42,220 of these warrants to purchase common stock were cancelled. Underwriter Warrants In connection with the IPO, the Company issued the underwriter a warrant to purchase shares of common stock equal to 9.79% of the shares of common stock sold in the IPO or 956,973 shares. The warrant is exercisable at $6.00 per share and has a 5-year term. Additionally, the underwriter has contractually agreed that it will not sell, transfer, assign, pledge, or hypothecate this warrant or the securities underlying this warrant, nor will it engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of this warrant or the underlying securities for a period of 540 days (approximately 18 months) from the IPO. The following is a summary of the Company’s warrant activity for the nine months ended September 30, 2021: Warrant Issuance Issuance Exercise Outstanding, Granted Exercised Canceled/ Variable Settlement Provision Adjustment Outstanding, Expiration Preferred A Placement Warrants March and April 2018 $ 1.40 242,847 — — — 50,195 293,042 March and April 2023 Preferred A Lead Investor Warrants February 2021 $ 0.0125 — 52,500 — — — 52,500 March 2023 Preferred B Placement Warrants April 2019 $ 2.10 414,270 — — — 49,528 463,798 April 2024 Convertible Notes Placement Warrants August 2020 $ 2.57 214,050 — — (42,220 ) — 171,830 August 2025 Underwriter Warrants March 2021 $ 6.00 — 956,973 — — — 956,973 March 2026 871,167 1,009,473 — (42,220 ) 99,723 1,938,143 Warrants Classified as Liabilities Preferred A Placement Warrants and Preferred B Placement Warrants The Preferred A Placement Warrants and Preferred B Placement Warrants were initially classified as a derivative liability because their variable terms did not qualify these as being indexed to the Company’s own common stock and will be measured at fair value on a recurring basis. As a result of the conversion of the Preferred Stock into common stock in connection with the IPO, and the related impact of the Preferred A Adjustment Provision and the Preferred B Adjustment Provision, the number of warrant shares that are convertible is no longer variable. Accordingly, the Preferred A Placement Warrants and Preferred B Placement Warrants were determined to be indexed to the Company’s own common stock and will no longer be measured at fair value on a recurring basis. Instead, the Preferred A Placement Warrants and the Preferred B Placement Warrants were determined to be equity instruments, and the liability was recorded at fair value with the change in fair value recorded in the condensed consolidated statement of operations and comprehensive loss and reclassified to additional paid-in capital at their estimated fair value at the IPO date. Convertible Notes Placement Warrants The Convertible Notes Placement Warrants were classified as a derivative liability because the exercise price was variable, thus these did not qualify as being indexed to the Company’s own common stock and were measured at fair value on a recurring basis. As a result of the conversion of the Convertible Notes into common stock in connection with the IPO, the exercise price is no longer variable. Accordingly, the Convertible Notes Placement Warrants were determined to be indexed to the Company’s own common stock and will no longer be measured at fair value on a recurring basis. Instead the Convertible Notes Placement Warrants were determined to be equity instruments, and the liability was recorded at fair value with the change in fair value recorded in the condensed consolidated statement of operations and comprehensive loss and reclassified to additional paid-in capital at their estimated fair value at the IPO date. Estimated Fair Value of Outstanding Warrants Classified as Liabilities The estimated fair value of outstanding warrants classified as liabilities is determined at each balance sheet date. Any decrease or increase in the estimated fair value of the warrant liability since the most recent balance sheet date is recorded in the condensed consolidated statements of operations and comprehensive loss as a change in fair value of warrant liability. There were no warrants classified as liabilities outstanding as of September 30, 2021. The changes in fair value of the outstanding warrants classified as liabilities for the nine months ended September 30, 2021 were as follows (in thousands): Warrant Issuance Warrant liability, Fair value of Fair value of Change in fair Reclassified to Warrant liability, Preferred A Placement Warrants $ 518 $ — $ — $ 575 $ (1,093 ) $ — Preferred B Placement Warrants 708 — — 800 (1,508 ) — Convertible Notes Placement Warrants 323 — — 206 (529 ) — $ 1,549 $ — $ — $ 1,581 $ (3,130 ) $ — The changes in fair value of the warrant liability for the nine months ended September 30, 2020 were as follows (in thousands): Warrant Issuance Warrant liability, Fair value of Fair value of Change in fair Warrant liability, Preferred A Placement Warrants $ 12 $ — $ — $ (1 ) $ 11 Preferred B Placement Warrants 20 — — (7 ) 13 Convertible Notes Placement Warrants — 6 — — 6 $ 32 $ 6 $ — $ (8 ) $ 30 The fair values of the outstanding warrants accounted for as liabilities at the IPO date are calculated using the Black-Scholes option pricing model with the following assumptions: Black-Scholes Fair Value Assumptions at IPO Date Warrant Issuance Dividend Expected Risk-Free Expected Preferred A Placement Warrants – % 59.21 % 0.14 % 2.0 years Preferred B Placement Warrants – % 58.51 % 0.30 % 3.0 years Convertible Note Placement Warrants – % 52.28 % 0.82 % 4.4 years Upon the conversion of the redeemable convertible preferred stock and the Convertible Notes into common stock at the IPO date, the estimated fair value of the outstanding warrants accounted for as liabilities of $3.1 million was reclassified to additional paid-in capital. The fair values of the outstanding warrants accounted for as liabilities at December 31, 2020 are calculated using the Black-Scholes option pricing model with the following assumptions: Black-Scholes Fair Value Assumptions - December 31, 2020 Warrant Issuance Dividend Expected Risk-Free Expected Preferred A Placement Warrants – % 67.75 % 0.13 % 2.2 years Preferred B Placement Warrants – % 55.76 % 0.17 % 3.3 years Convertible Note Placement Warrants – % 52.93 % 0.36 % 4.7 years The fair values of the outstanding warrants accounted for as liabilities at September 30, 2020 are calculated using the Black-Scholes option pricing model with the following assumptions: Black-Scholes Fair Value Assumptions - September 30, 2020 Warrant Issuance Dividend Expected Risk-Free Expected Life Preferred A Placement Warrants – % 53.73 % 0.15 % 2.5 years Preferred B Placement Warrants – % 49.39 % 0.22 % 3.5 years Convertible Note Placement Warrants – % 47.65 % 0.31 % 4.9 years Warrants Classified as Equity Certain warrants are classified as equity instruments since they do not meet the characteristics of a liability or a derivative and are recorded at fair value on the date of issuance using the Black-Scholes option pricing model with the following assumptions. The fair value as determined at the issuance date is recorded as an issuance cost of the related stock. Those warrants and the assumptions used to calculate the fair value at issuance are as follows for the warrants issued during the nine months ended September 30, 2021. There were no warrants issued during the three months ended September 30, 2021, nor during the three and nine months ended September 30, 2020. Black-Scholes Fair Value Assumptions Warrant Issuance Issuance Fair Dividend Expected Risk-Free Expected Underwriter Warrants March 2021 $ 2,349 – % 52.58 % 0.82 % 5.0 years |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | Note 12 – Stock-based Compensation 2019 Equity Incentive Plan Effective as of November 18, 2019, the Company adopted the 2019 Omnibus Incentive Plan (“2019 Plan”) administered by the Board. The 2019 Plan provides for the issuance of incentive stock options, non-statutory stock options, and restricted stock awards, for the purchase of up to a total of 4,000,000 shares of the Company’s common stock to employees, directors, and consultants and replaces the previous plan. The Board or a committee of the Board has the authority to determine the amount, type, and terms of each award. The options granted under the 2019 Plan generally have a contractual term of ten years and a vesting term of four years with a one-year cliff. The exercise price for options granted under the 2019 Plan must generally be at least equal to 100% of the fair value of the Company’s common stock at the date of grant, as determined by the Board. The incentive stock options granted under the 2019 Plan to 10% or greater stockholders must have an exercise price at least equal to 110% of the fair value of the Company’s common stock at the date of grant, as determined by the Board, and have a contractual term of ten years. On September 30, 2020, the Board approved an increase in the aggregate number of shares of common stock that may be issued pursuant to the 2019 Plan from 4,000,000 to 4,500,000. On December 7, 2020, the Board approved an increase in the aggregate number of shares of common stock that may be issued pursuant to the 2019 Plan from 4,500,000 to 6,000,000. In connection with the closing of the IPO, effective as of March 25, 2021 the 2019 Plan was amended and restated as a result of which the aggregate number of shares of common stock that may be issued pursuant to the 2019 Plan was increased from 6,000,000 to 7,400,000. As of September 30, 2021, the Company had 830,322 shares available for future grant under the 2019 Plan. Stock Options Stock option activity for the nine months ended September 30, 2021 was as follows (in thousands, except share, per share, and remaining life data): Number of Options Weighted Average Exercise Price Weighted Average Remaining Life Intrinsic Value Outstanding at December 31, 2020 3,188,011 $ 0.66 9.0 years $ 8,155 Granted 1,970,000 $ 3.75 Exercised (134,541 ) $ 0.56 Cancelled (145,833 ) $ 0.59 Outstanding at September 30, 2021 4,877,637 $ 1.91 8.7 years $ 8,368 Exercisable as of September 30, 2021 1,902,685 $ 0.52 8.1 years $ 5,566 Vested and expected to vest as of September 30, 2021 4,827,437 $ 1.93 8.7 years $ 8,214 The weighted-average grant date fair value of options granted during the nine months ended September 30, 2021 and 2020 was $2.76 and $0.31. During the nine months ended September 30, 2021 and 2020, 134,531 and no options were exercised for proceeds of $76,000 and $0, respectively. The fair value of the 598,988 and 688,155 options that vested during the nine months ended September 30, 2021 and 2020 was approximately $0.4 million and $0.2 million, respectively. The Company estimated the fair value of stock options using the Black-Scholes option pricing model. The fair value of the stock options was estimated using the following weighted average assumptions for the nine months ended September 30, 2021 and 2020. Nine Months Ended 2021 2020 Dividend yield – % – % Expected volatility 67.54 % 67.92 % Risk-free interest rate 0.76 % 0.46 % Expected life 6.06 years 5.77 years Dividend Rate Expected Volatility Risk-Free Interest Rate Expected Term Forfeiture Rate The Company has recorded stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 related to the issuance of stock option awards to employees and nonemployees in the condensed consolidated statement of operations and comprehensive loss as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 217 $ 15 $ 467 $ 40 General and administrative 335 136 780 201 $ 552 $ 151 $ 1,247 $ 241 As of September 30, 2021, unamortized compensation expense related to unvested stock options was approximately $7.0 million, which is expected to be recognized over a weighted average period of 2.9 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 13 – Commitments and Contingencies Operating Leases As of September 30, 2021, the Company had one office lease. Another lease, for facility space in Dublin, California expired in September 2021. On April 15, 2021, the Company executed a lease agreement for corporate office space. The lease commenced on May 14, 2021 when the improvements were completed by the landlord and the Company had access to the facility. The lease term is 40 months, and the base rent is approximately $14,000 per month for the first twelve months, with subsequent escalation provisions for future months. The Company paid a security deposit of approximately $47,000. Future minimum lease payments for this new corporate office space lease are as follows as of September 30, 2021: Remainder of 2021 $ 42 2022 173 2023 179 2024 138 Total $ 532 Rent expense for the three months ended September 30, 2021 and 2020 was $57,000 and $28,000, respectively. Rent expense for the nine months ended September 30, 2021 and 2020 was $105,000 and $84,000, respectively. Litigation From time to time, the Company may become involved in various litigation and administrative proceedings relating to claims arising from its operations in the normal course of business. Management is not currently aware of any matters that may have a material adverse impact on the Company’s business, financial position, results of operations or cash flows. Indemnification The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties 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 after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. No amounts associated with such indemnifications have been recorded as of September 30, 2021. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | Note 14 – NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table computes the computation of the basic and diluted net loss per share attributable to common stockholders during the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net loss $ (5,173 ) $ (3,341 ) $ (15,468 ) $ (8,105 ) Accretion and dividends on redeemable convertible preferred stock - (2,322 ) (2,489 ) (6,396 ) Net loss attributable to common stockholders $ (5,173 ) $ (5,663 ) $ (17,957 ) $ (14,501 ) Denominator: Weighted-average common shares outstanding 32,268,890 3,029,765 24,200,475 2,777,510 Net loss per share attributable to common stockholders, basic and diluted $ (0.16 ) $ (1.87 ) $ (0.74 ) $ (5.22 ) The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2021 and 2020 because including them would have been antidilutive are as follows: September 30, 2021 2020 Shares of redeemable convertible preferred stock — 7,634,572 Non-vested shares under restricted stock grants 336,666 1,346,667 Shares related to convertible promissory notes — 1,399,254 Shares subject to options to purchase common stock 4,877,637 3,897,478 Shares subject to warrants to purchase common stock 1,938,143 1,174,168 Total 7,152,447 15,452,139 For the three and nine months ended September 30, 2021 and 2020, performance based option awards for 50,200 shares of common stock, respectively, are not included in in the table above or considered in the calculation of diluted earnings per share until the performance conditions of the option award are considered probable by the Company. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 15 – Subsequent Events Management of the Company evaluated events that have occurred after the balance sheet dates through the date these condensed consolidated financial statements were issued. Based upon the review, management did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary and have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation. Intercompany transactions are eliminated in the condensed consolidated financial statements. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The condensed consolidated balance sheet as of December 31, 2020 has been derived from audited financial statements at that date but does not include all the information required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the preceding fiscal year included in Amendment No. 2 to the Company’s Registration Statement on Form S-1 filed with the SEC on March 17, 2021. |
Reclassification | Reclassification Certain reclassifications have been made to prior periods’ condensed consolidated financial statements to conform to the current period presentation. These reclassifications did not result in any change in previously reported net loss, total assets or stockholders’ equity (deficit). |
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 reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the accrual of research and development expenses, the valuation of common stock, stock options and warrants, the valuation of the embedded redemption derivative liability and income taxes. Estimates are periodically reviewed considering changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates or assumptions. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one segment. The Company’s chief operating decision maker is the chief executive officer. |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments The Company invests its excess cash primarily in money market funds, commercial paper and short-term debt securities. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company classifies all marketable securities for use in current operations, even if the security matures beyond 12 months, and presents them as short-term investments in the condensed consolidated balance sheets. The Company determines the appropriate classification of marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for the purchased marketable securities as available-for-sale. After considering the Company’s capital preservation objectives, as well as its liquidity requirements, the Company may sell securities prior to their stated maturities. The Company carries its available-for-sale short-term investments at fair value. The Company reports the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be credit-related, which are recorded as other income (expense), net in the condensed consolidated statements of operations and comprehensive loss and reports an allowance for credit losses in short-term investments on the balance sheet, if any. The Company determines any realized gains or losses on the sale of short-term investments on a specific identification method and records such gains and losses as a component of other income (expense), net. Interest earned on cash, cash equivalents, and short-term investments is recorded in interest and other income, net in the accompanying condensed consolidated statements of operations and comprehensive loss and was insignificant during the three and nine months ended September 30, 2021 or 2020. The Company's investment policy only allows purchases of high credit quality instruments and provides guidelines on concentrations and credit quality to ensure minimum risk of loss. The Company evaluates whether the unrealized loss on available-for-sale short-term investments is the result of the credit worthiness of the securities it held, or other non-credit-related factors such as liquidity by reviewing a number of factors such as the implied yield of the corporate note based on the market price, the nature of the invested entity's business or industry, market capitalization relative to debt, changes in credit ratings, and the market prices of the instruments subsequent to the period end. |
Concentrations of Credit Risk and Off-Balance Sheet Risk | Concentrations of Credit Risk and Off-Balance Sheet Risk Cash and cash equivalents are financial instruments that are potentially subject to concentrations of credit risk. All cash and cash equivalents are held in United States financial institutions. Cash equivalents consist of interest-bearing money market accounts. The amounts deposited in the money market accounts exceed federally insured limits. The Company has not experienced any losses related to this account and believes the associated credit risk to be minimal due to the financial condition of the depository institutions in which those deposits are held. The Company has no financial instruments with off-balance sheet risk of loss. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were comprised of prepaid expenses, other current receivables, and deferred offering costs, which consist of legal, accounting, filing and other fees related to the IPO that were capitalized prior to the IPO. The deferred offering costs were offset against proceeds from the IPO within additional paid-in capital upon the effective date of the IPO. As of September 30, 2021 and December 31, 2020, offering costs of approximately $0 and $0.5 million were capitalized, respectively. |
Paycheck Protection Program Loan | Paycheck Protection Program Loan The Company accounted for funds received from the Paycheck Protection Program as a financial liability with interest accrued and expensed over the term of the loan under the effective interest method. The loan remained recorded as a liability until the Company was legally released from the liability. The amount that was ultimately forgiven by the lender was recognized in the condensed consolidated statement of operations and comprehensive loss as a gain on extinguishment. |
Convertible Financial Instruments | Convertible Financial Instruments The Company bifurcates embedded redemption and conversion options from their host instruments and accounts for them as freestanding derivative financial instruments at fair value if certain criteria are met. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or their earliest date of redemption. From time to time, the Company issues convertible financial instruments to nonemployees in payment for services that are provided. Until the services are completely rendered, the Company will expense the principal and any interest earned prior to the service completion to the representative expense account for the services performed and will record a noncurrent liability for the expected amount of the principal balance. Upon completion of the services, the Company will reclassify the noncurrent liability balance to the balance of an outstanding convertible financial instrument and assess the embedded redemption and conversion options that are applicable at that time. |
Beneficial Conversion Feature | Beneficial Conversion Feature If the conversion feature of conventional convertible promissory notes provides for a rate of conversion that is below fair value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount and as additional paid-in capital on the condensed consolidated balance sheet. In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock The Company records all shares of redeemable convertible preferred stock at their respective issuance price less issuance costs on the dates of issuance. Under certain circumstances the Company would have been required to redeem the Series A and Series B redeemable convertible preferred stock unless an IPO had been consummated prior to April 1, 2021, or an extension or waiver was obtained upon approval of a majority of the holders of such preferred stock. As the preferred stock became redeemable due to the passage of time, the Company considered the preferred stock to be redeemable as of April 1, 2021. The Company records the accretion of the Series A and B preferred stock balances to their respective redemption amounts using the effective interest method. The redeemable convertible preferred stock is presented outside of stockholders’ deficit on the condensed consolidated balance sheet as of December 31, 2020. Upon the IPO, the redeemable convertible preferred stock converted in to 11,436,956 shares of common stock. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. As the Company maintained a full valuation allowance against its deferred tax assets, the changes resulted in no provision or benefit from income taxes during the three and nine months ended September 30, 2021 and 2020. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes a liability for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on the Company’s tax returns. To the extent that the assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The liability is adjusted considering changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of liability provisions and changes to the liability that are considered appropriate. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur. |
Stock-Based Compensation | Stock-Based Compensation The Company measures equity classified stock-based awards granted to employees, directors, and nonemployees based on the estimated fair value on the date of grant and recognizes compensation expense of those awards on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. The Company accounts for forfeitures as they occur. |
Early Exercised Stock Option Liability | Early Exercised Stock Option Liability Upon the early exercise of stock options by employees, the Company records as a liability the purchase price of unvested common stock that the Company has a right to repurchase if and when the employment of the stockholder terminates before the end of the requisite service period. The proceeds originally recorded as a liability are reclassified to additional paid-in capital as the Company’s repurchase right lapses. |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. The net loss attributable to common stockholders is calculated by adjusting the net loss of the Company for the accretion on the Series A and B redeemable convertible preferred stock and cumulative dividends on Series A and B redeemable convertible preferred stock. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since the effects of potentially dilutive securities are antidilutive. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that are measured at fair value | September 30, 2021 Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 10,156 $ 10,156 $ — $ — Commercial paper 6,409 — 6,409 — Total cash equivalents $ 16,565 $ 10,156 $ 6,409 $ — Short-term investments: Certificates of deposit $ 250 $ — $ 250 $ — Commercial paper 6,199 — 6,199 — Corporate notes 13,468 — 13,468 — Municipal bonds 2,252 — 2,252 — Total short-term investments $ 22,169 $ — $ 22,169 $ — December 31, 2020 Fair Value Level 1 Level 2 Level 3 Cash equivalents – money market funds $ 5,181 $ 5,181 $ — $ — Warrant liability $ 1,549 $ — $ — $ 1,549 Derivative liability $ 121 $ — $ — $ 121 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash, cahs equivalents and short-term investments | September 30, December 31, 2021 2020 Cash and cash equivalents: Cash $ 568 $ 529 Money market funds 10,156 5,181 Commercial paper 6,409 — Total cash and cash equivalents $ 17,133 $ 5,710 Short-term investments: Certificates of deposit $ 250 $ — Commercial paper 6,199 — Corporate notes 13,468 — Municipal bonds 2,252 — Total short-term investments $ 22,169 $ — |
Schedule of contractual maturities of short-term investments | September 30, 2021 Due within one year $ 21,329 Due after one year through five years 840 Total $ 22,169 |
Schedule of unrealized gains and losses related to short-term investments | September 30, 2021 Amortized Gross Unrealized Gains Gross Unrealized Losses Aggregate Estimated Fair Value Short-term investments: Certificates of deposit $ 250 $ — $ — $ 250 Commercial paper 6,199 — — 6,199 Corporate notes 13,471 1 (4 ) 13,468 Municipal bonds 2,252 — — 2,252 Total short-term investments $ 22,172 $ 1 $ (4 ) $ 22,169 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | September 30, December 31, 2021 2020 Office equipment and furniture $ 218 $ 43 Software 115 — Test equipment 234 22 Total property and equipment 567 65 Less: accumulated depreciation (67 ) (27 ) Total property and equipment, net $ 500 $ 38 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Current Liabilities [Abstract] | |
Schedule of other current liabilities | September 30, December 31, 2021 2020 Accrued research and development $ 417 $ 197 Accrued compensation 1,530 184 Accrued vacation 260 192 Accrued legal expense 1 41 Accrued accounting and consulting expense 16 40 Other 64 12 $ 2,288 $ 666 |
Convertible Promissory Notes (T
Convertible Promissory Notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of convertible note | Conversion Event Description Conversion Price Automatic Conversion – Next Qualified Equity Financing Upon the closing of a Next Qualified Equity Financing (defined as greater than $5,000,000), the Convertible Notes are converted into shares issued equal to the outstanding balance divided by the Conversion Price. An amount equal to the lower of (i) 80% of the lowest per-share selling price of such stock sold by the Company at the Next Qualified Equity Financing or (ii) the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents (defined as fully diluted common shares for all outstanding securities, excluding common shares reserved for issuance or exercise of options or grants in the future) immediately prior to Next Qualified Equity Financing closing. Automatic Conversion – Change of Control (defined as consolidation or merger of the Company or transfer of a majority of share ownership or disposition of substantially all assets of the Company) If at any time before payment or conversion of the balance, the Company effects a Change of Control, all of the balance outstanding immediately prior to such Change of Control will automatically convert into the most senior series of Preferred Stock outstanding immediately prior to such Change of Control at the Conversion Price. An amount equal to the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to such Change of Control. Automatic Conversion – Maturity Date If the Company has not paid or otherwise converted the entire balance before the Maturity Date, then on the Maturity Date, all of the balance then outstanding will automatically convert into the most senior series of Preferred Stock outstanding as of the Maturity Date at the Conversion Price then in effect. An amount equal to the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents as of the Maturity Date. Automatic Conversion – IPO If at any time before payment or conversion of the balance, the Company consummates an IPO, all of the balance outstanding immediately prior to the IPO will automatically convert into Common Stock at the Conversion Price. An amount equal to the lower of (i) 80% of the lowest per-share selling price of the Common Stock sold by the Company in an IPO or (ii) the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to closing of an IPO. Conversion Event Description Conversion Price Optional Conversion If at any time while the Convertible Notes are still outstanding the Company sells stock in a single transaction or in a series of related transactions that does not constitute a Next Qualified Equity Financing (and thus is defined as a Non-qualified Financing), then, at the closing of the Nonqualified Financing, the balance then outstanding may be converted, at the option of the holder, into that number of shares of Non-qualified Preferred Stock (preferred stock sold in the Non-qualified Financing) determined by dividing (i) the balance by (ii) the Conversion Price then in effect. An amount equal to the lowest per share selling price of Nonqualified Preferred Stock sold by the Company for new cash investment in the Non-Qualified Financing. |
Schedule of fair value of the embedded redemption derivative liability | Financing Date Maturity Date Probability of Conversion at Financing 80% 20% Expected Term March 2021 February 2022 Conversion Ratio 1.25 N/A Discount Rate 1.68% to 11.67% N/A Financing Date Maturity Date Probability of Conversion at Financing 80% 20% Expected Term March 2021 February 2022 Conversion Ratio 1.25 N/A Discount Rate 5.19% to 11.67% N/A |
Schedule of fair value of the derivative liability | December 31, Fair Value at Change in September 30, Derivative liability $ 121 — (121 ) $ — June 30, Fair Value at Change in September 30, Derivative liability $ 453 164 (220 ) $ 397 December 31, Fair Value at Change in September 30, Derivative liability $ — 751 (354 ) $ 397 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of common stock reserved for future issuance | Warrants to purchase common stock 1,938,143 Stock options outstanding 4,877,637 Stock options available for future grants 830,322 Total 7,646,102 |
Common Stock Warrants (Tables)
Common Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of company's warrant activity | Warrant Issuance Issuance Exercise Outstanding, Granted Exercised Canceled/ Variable Settlement Provision Adjustment Outstanding, Expiration Preferred A Placement Warrants March and April 2018 $ 1.40 242,847 — — — 50,195 293,042 March and April 2023 Preferred A Lead Investor Warrants February 2021 $ 0.0125 — 52,500 — — — 52,500 March 2023 Preferred B Placement Warrants April 2019 $ 2.10 414,270 — — — 49,528 463,798 April 2024 Convertible Notes Placement Warrants August 2020 $ 2.57 214,050 — — (42,220 ) — 171,830 August 2025 Underwriter Warrants March 2021 $ 6.00 — 956,973 — — — 956,973 March 2026 871,167 1,009,473 — (42,220 ) 99,723 1,938,143 |
Schedule of changes in fair value of the warrant liability | Warrant Issuance Warrant liability, Fair value of Fair value of Change in fair Reclassified to Warrant liability, Preferred A Placement Warrants $ 518 $ — $ — $ 575 $ (1,093 ) $ — Preferred B Placement Warrants 708 — — 800 (1,508 ) — Convertible Notes Placement Warrants 323 — — 206 (529 ) — $ 1,549 $ — $ — $ 1,581 $ (3,130 ) $ — Warrant Issuance Warrant liability, Fair value of Fair value of Change in fair Warrant liability, Preferred A Placement Warrants $ 12 $ — $ — $ (1 ) $ 11 Preferred B Placement Warrants 20 — — (7 ) 13 Convertible Notes Placement Warrants — 6 — — 6 $ 32 $ 6 $ — $ (8 ) $ 30 |
Schedule of Black-Scholes option pricing model assumptions | Black-Scholes Fair Value Assumptions at IPO Date Warrant Issuance Dividend Expected Risk-Free Expected Preferred A Placement Warrants – % 59.21 % 0.14 % 2.0 years Preferred B Placement Warrants – % 58.51 % 0.30 % 3.0 years Convertible Note Placement Warrants – % 52.28 % 0.82 % 4.4 years |
Schedule of Black-Scholes option pricing model assumptions | Black-Scholes Fair Value Assumptions - December 31, 2020 Warrant Issuance Dividend Expected Risk-Free Expected Preferred A Placement Warrants – % 67.75 % 0.13 % 2.2 years Preferred B Placement Warrants – % 55.76 % 0.17 % 3.3 years Convertible Note Placement Warrants – % 52.93 % 0.36 % 4.7 years Black-Scholes Fair Value Assumptions - September 30, 2020 Warrant Issuance Dividend Expected Risk-Free Expected Life Preferred A Placement Warrants – % 53.73 % 0.15 % 2.5 years Preferred B Placement Warrants – % 49.39 % 0.22 % 3.5 years Convertible Note Placement Warrants – % 47.65 % 0.31 % 4.9 years |
Schedule of fair value at issuance for warrants | Black-Scholes Fair Value Assumptions Warrant Issuance Issuance Fair Dividend Expected Risk-Free Expected Underwriter Warrants March 2021 $ 2,349 – % 52.58 % 0.82 % 5.0 years |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Life Intrinsic Value Outstanding at December 31, 2020 3,188,011 $ 0.66 9.0 years $ 8,155 Granted 1,970,000 $ 3.75 Exercised (134,541 ) $ 0.56 Cancelled (145,833 ) $ 0.59 Outstanding at September 30, 2021 4,877,637 $ 1.91 8.7 years $ 8,368 Exercisable as of September 30, 2021 1,902,685 $ 0.52 8.1 years $ 5,566 Vested and expected to vest as of September 30, 2021 4,827,437 $ 1.93 8.7 years $ 8,214 |
Schedule of weighted average assumptions for fair value of options estimated | Nine Months Ended 2021 2020 Dividend yield – % – % Expected volatility 67.54 % 67.92 % Risk-free interest rate 0.76 % 0.46 % Expected life 6.06 years 5.77 years |
Schedule of stock-based compensation expense to employees and non-employees | Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 217 $ 15 $ 467 $ 40 General and administrative 335 136 780 201 $ 552 $ 151 $ 1,247 $ 241 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Remainder of 2021 $ 42 2022 173 2023 179 2024 138 Total $ 532 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share attributable to common stockholders | Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net loss $ (5,173 ) $ (3,341 ) $ (15,468 ) $ (8,105 ) Accretion and dividends on redeemable convertible preferred stock - (2,322 ) (2,489 ) (6,396 ) Net loss attributable to common stockholders $ (5,173 ) $ (5,663 ) $ (17,957 ) $ (14,501 ) Denominator: Weighted-average common shares outstanding 32,268,890 3,029,765 24,200,475 2,777,510 Net loss per share attributable to common stockholders, basic and diluted $ (0.16 ) $ (1.87 ) $ (0.74 ) $ (5.22 ) |
Schedule of diluted net loss per share attributable to common stockholders | September 30, 2021 2020 Shares of redeemable convertible preferred stock — 7,634,572 Non-vested shares under restricted stock grants 336,666 1,346,667 Shares related to convertible promissory notes — 1,399,254 Shares subject to options to purchase common stock 4,877,637 3,897,478 Shares subject to warrants to purchase common stock 1,938,143 1,174,168 Total 7,152,447 15,452,139 |
Business Organization, Nature_2
Business Organization, Nature of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 10 Months Ended | ||||
Mar. 25, 2021 | May 31, 2020 | Dec. 31, 2020 | Sep. 30, 2021 | Aug. 31, 2019 | Dec. 31, 2018 | |
Business Organization, Nature of Operations (Details) [Line Items] | ||||||
Convertible promissory notes for net proceeds | $ 11.1 | |||||
Paycheck protection program loans | $ 0.4 | |||||
Public price per share (in Dollars per share) | $ 2.1 | $ 0.0125 | ||||
Net proceeds | $ 44.3 | |||||
Underwriting discounts | 3.3 | |||||
Offering expenses | $ 1.3 | |||||
Ownership percentage | 10.00% | |||||
Initial Public Offering [Member] | Common Stock [Member] | ||||||
Business Organization, Nature of Operations (Details) [Line Items] | ||||||
Shares issued (in Shares) | 9,775,000 | |||||
Public price per share (in Dollars per share) | $ 5 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2021USD ($)shares | Dec. 31, 2020USD ($) | |
Accounting Policies [Abstract] | ||
Number of segments | 1 | |
Offering costs | $ | $ 0 | $ 0.5 |
Redeemable convertible preferred stock share (in Shares) | shares | 11,436,956 |
Fair value measurements (Detail
Fair value measurements (Details) - Schedule of assets and liabilities that are measured at fair value - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash equivalents: | ||
Total cash equivalents | $ 16,565 | |
Short-term investments: | ||
Certificates of deposit | 250 | |
Total short-term investments | 22,169 | |
Cash equivalents – money market funds | 5,181 | |
Warrant liability | 1,549 | |
Derivative liability | 121 | |
Money market funds [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 10,156 | |
Commercial paper [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 6,409 | |
Short-term investments: | ||
Total short-term investments | 6,199 | |
Corporate notes [Member] | ||
Short-term investments: | ||
Total short-term investments | 13,468 | |
Municipal bonds [Member] | ||
Short-term investments: | ||
Total short-term investments | 2,252 | |
Level 1 [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 10,156 | |
Short-term investments: | ||
Certificates of deposit | ||
Total short-term investments | ||
Cash equivalents – money market funds | 5,181 | |
Warrant liability | ||
Derivative liability | ||
Level 1 [Member] | Money market funds [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 10,156 | |
Level 1 [Member] | Commercial paper [Member] | ||
Cash equivalents: | ||
Total cash equivalents | ||
Short-term investments: | ||
Total short-term investments | ||
Level 1 [Member] | Corporate notes [Member] | ||
Short-term investments: | ||
Total short-term investments | ||
Level 1 [Member] | Municipal bonds [Member] | ||
Short-term investments: | ||
Total short-term investments | ||
Level 2 [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 6,409 | |
Short-term investments: | ||
Certificates of deposit | 250 | |
Total short-term investments | 22,169 | |
Cash equivalents – money market funds | ||
Warrant liability | ||
Derivative liability | ||
Level 2 [Member] | Money market funds [Member] | ||
Cash equivalents: | ||
Total cash equivalents | ||
Level 2 [Member] | Commercial paper [Member] | ||
Cash equivalents: | ||
Total cash equivalents | 6,409 | |
Short-term investments: | ||
Total short-term investments | 6,199 | |
Level 2 [Member] | Corporate notes [Member] | ||
Short-term investments: | ||
Total short-term investments | 13,468 | |
Level 2 [Member] | Municipal bonds [Member] | ||
Short-term investments: | ||
Total short-term investments | 2,252 | |
Level 3 [Member] | ||
Cash equivalents: | ||
Total cash equivalents | ||
Short-term investments: | ||
Certificates of deposit | ||
Total short-term investments | ||
Cash equivalents – money market funds | ||
Warrant liability | 1,549 | |
Derivative liability | $ 121 | |
Level 3 [Member] | Money market funds [Member] | ||
Cash equivalents: | ||
Total cash equivalents | ||
Level 3 [Member] | Commercial paper [Member] | ||
Cash equivalents: | ||
Total cash equivalents | ||
Short-term investments: | ||
Total short-term investments | ||
Level 3 [Member] | Corporate notes [Member] | ||
Short-term investments: | ||
Total short-term investments | ||
Level 3 [Member] | Municipal bonds [Member] | ||
Short-term investments: | ||
Total short-term investments |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments (Details) - Schedule of Cash, Cash Equivalents and Short-Term Investments - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash and cash equivalents: | ||
Total cash and cash equivalents | $ 17,133 | $ 5,710 |
Short-term investments: | ||
Certificates of deposit | 250 | |
Total short-term investments | 22,169 | |
Cash [Member] | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 568 | 529 |
Money Market Funds [Member] | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 10,156 | 5,181 |
Commercial Paper [Member] | ||
Cash and cash equivalents: | ||
Total cash and cash equivalents | 6,409 | |
Short-term investments: | ||
Total short-term investments | 6,199 | |
Corporate Notes [Member] | ||
Short-term investments: | ||
Total short-term investments | 13,468 | |
Municipal Bonds [Member] | ||
Short-term investments: | ||
Total short-term investments | $ 2,252 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments (Details) - Schedule of contractual maturities of short-term investments $ in Thousands | Sep. 30, 2021USD ($) |
Schedule of contractual maturities of short-term investments [Abstract] | |
Due within one year | $ 21,329 |
Due after one year through five years | 840 |
Total | $ 22,169 |
Cash, Cash Equivalents and Sh_5
Cash, Cash Equivalents and Short-Term Investments (Details) - Schedule of unrealized gains and losses related to short-term investments $ in Thousands | Sep. 30, 2021USD ($) |
Amortized Cost [Member] | |
Short-term investments: | |
Certificates of deposit | $ 250 |
Total short-term investments | 22,172 |
Gross Unrealized Gains [Member] | |
Short-term investments: | |
Certificates of deposit | |
Total short-term investments | 1 |
Gross Unrealized Losses [Member] | |
Short-term investments: | |
Certificates of deposit | |
Total short-term investments | (4) |
Aggregate Estimated Fair Value [Member] | |
Short-term investments: | |
Certificates of deposit | 250 |
Total short-term investments | 22,169 |
Commercial Paper [Member] | Amortized Cost [Member] | |
Short-term investments: | |
Total short-term investments | 6,199 |
Commercial Paper [Member] | Gross Unrealized Gains [Member] | |
Short-term investments: | |
Total short-term investments | |
Commercial Paper [Member] | Gross Unrealized Losses [Member] | |
Short-term investments: | |
Total short-term investments | |
Commercial Paper [Member] | Aggregate Estimated Fair Value [Member] | |
Short-term investments: | |
Total short-term investments | 6,199 |
Corporate Notes [Member] | Amortized Cost [Member] | |
Short-term investments: | |
Total short-term investments | 13,471 |
Corporate Notes [Member] | Gross Unrealized Gains [Member] | |
Short-term investments: | |
Total short-term investments | 1 |
Corporate Notes [Member] | Gross Unrealized Losses [Member] | |
Short-term investments: | |
Total short-term investments | (4) |
Corporate Notes [Member] | Aggregate Estimated Fair Value [Member] | |
Short-term investments: | |
Total short-term investments | 13,468 |
Municipal Bonds [Member] | Amortized Cost [Member] | |
Short-term investments: | |
Total short-term investments | 2,252 |
Municipal Bonds [Member] | Gross Unrealized Gains [Member] | |
Short-term investments: | |
Total short-term investments | |
Municipal Bonds [Member] | Gross Unrealized Losses [Member] | |
Short-term investments: | |
Total short-term investments | |
Municipal Bonds [Member] | Aggregate Estimated Fair Value [Member] | |
Short-term investments: | |
Total short-term investments | $ 2,252 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 22,000 | $ 4,000 | $ 40,000 | $ 10,000 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 567 | $ 65 |
Less: accumulated depreciation and amortization | (67) | (27) |
Total property and equipment, net | 500 | 38 |
Office equipment and furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 218 | 43 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 115 | |
Test equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 234 | $ 22 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of other current liabilities - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of other current liabilities [Abstract] | ||
Accrued research and development | $ 417 | $ 197 |
Accrued compensation | 1,530 | 184 |
Accrued vacation | 260 | 192 |
Accrued legal expense | 1 | 41 |
Accrued accounting and consulting expense | 16 | 40 |
Other | 64 | 12 |
Total other current liabilities | $ 2,288 | $ 666 |
Paycheck Protection Program L_2
Paycheck Protection Program Loan (Details) - USD ($) | May 27, 2020 | Apr. 23, 2020 |
Paycheck Protection Program Loan [Abstract] | ||
Unsecured loan | $ 351,000 | $ 351,000 |
Interest rate | 1.00% |
Convertible Promissory Notes (D
Convertible Promissory Notes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Convertible Promissory Notes (Details) [Line Items] | |||||||
Total proceeds | $ 11,800,000 | ||||||
Convertible notes accrue interest | 4.00% | ||||||
Convertible notes | $ 747,000 | $ 747,000 | $ 247,000 | $ 247,000 | |||
Amount of future services | $ 500,000 | ||||||
Debt value | $747,000 | ||||||
Additional non-employee services | $ 50,000 | ||||||
Beneficial conversion feature | $ 500,000 | ||||||
Nonemployee services | $ 260,000 | $ 310,000 | |||||
Conversion price (in Dollars per share) | $ 2.5736 | $ 2.5736 | |||||
Warrants to purchase common stock were cancelled (in Shares) | 42,220 | ||||||
Issuance costs | $ 83,000 | $ 83,000 | |||||
Commissions | 612,000 | $ 612,000 | |||||
Convertible note conversion, description | (i) 80% of the lowest per-share selling price of the stock sold by the Company in the Next Qualified Equity Financing or (ii) 80% of the lowest per-share selling price of the Conversion Stock sold by the Company in an IPO are deemed a redemption feature. The Company also concluded that those redemption features require bifurcation from the Convertible Notes and subsequent accounting in the same manner as a freestanding derivative. | ||||||
Lowest price per share selling price percentage | 80.00% | ||||||
Interest expense | 0 | $ 300,000 | $ 800,000 | $ 400,000 | |||
Debt Instrument, Unamortized Discount | 400,000 | 400,000 | |||||
Change in fair value of derivative liability | 100,000 | ||||||
Convertible Notes Payable [Member] | |||||||
Convertible Promissory Notes (Details) [Line Items] | |||||||
Other noncurrent liabilities | $ 150,000 | $ 150,000 | |||||
Convertible notes for non-employee services | $ 500,000 | ||||||
Prepaid assets and other current expenses | $ 300,000 | ||||||
Beneficial conversion feature | 500,000 | ||||||
Shares issued (in Shares) | 10,000 | ||||||
Warrants (in Shares) | 204,500 | ||||||
Conversion price (in Dollars per share) | $ 2.97 | $ 2.97 | |||||
Common stock equivalents | 60,000,000 | 60,000,000 | |||||
Outstanding principal | $ 12,500,000 | 12,500,000 | |||||
Interest due | 400,000 | ||||||
Common stock equivalents | $ 12,900,000 | ||||||
Converted shares (in Shares) | 5,015,494 |
Convertible Promissory Notes _2
Convertible Promissory Notes (Details) - Schedule of convertible note | 9 Months Ended |
Sep. 30, 2021 | |
Next Qualified Equity Financing [Member] | |
Convertible Promissory Notes (Details) - Schedule of convertible note [Line Items] | |
Description | Upon the closing of a Next Qualified Equity Financing (defined as greater than $5,000,000), the Convertible Notes are converted into shares issued equal to the outstanding balance divided by the Conversion Price. |
Conversion Price | An amount equal to the lower of (i) 80% of the lowest per-share selling price of such stock sold by the Company at the Next Qualified Equity Financing or (ii) the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents (defined as fully diluted common shares for all outstanding securities, excluding common shares reserved for issuance or exercise of options or grants in the future) immediately prior to Next Qualified Equity Financing closing. |
Change of Control [Member] | |
Convertible Promissory Notes (Details) - Schedule of convertible note [Line Items] | |
Description | If at any time before payment or conversion of the balance, the Company effects a Change of Control, all of the balance outstanding immediately prior to such Change of Control will automatically convert into the most senior series of Preferred Stock outstanding immediately prior to such Change of Control at the Conversion Price. |
Conversion Price | An amount equal to the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to such Change of Control. |
Maturity Date [Member] | |
Convertible Promissory Notes (Details) - Schedule of convertible note [Line Items] | |
Description | If the Company has not paid or otherwise converted the entire balance before the Maturity Date, then on the Maturity Date, all of the balance then outstanding will automatically convert into the most senior series of Preferred Stock outstanding as of the Maturity Date at the Conversion Price then in effect. |
Conversion Price | An amount equal to the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents as of the Maturity Date. |
Automatic Conversion – IPO [Member] | |
Convertible Promissory Notes (Details) - Schedule of convertible note [Line Items] | |
Description | If at any time before payment or conversion of the balance, the Company consummates an IPO, all of the balance outstanding immediately prior to the IPO will automatically convert into Common Stock at the Conversion Price. |
Conversion Price | An amount equal to the lower of (i) 80% of the lowest per-share selling price of the Common Stock sold by the Company in an IPO or (ii) the implied per share price determined by dividing $60,000,000 by the total number of Common Stock Equivalents immediately prior to closing of an IPO. |
Option Conversion [Member] | |
Convertible Promissory Notes (Details) - Schedule of convertible note [Line Items] | |
Description | If at any time while the Convertible Notes are still outstanding the Company sells stock in a single transaction or in a series of related transactions that does not constitute a Next Qualified Equity Financing (and thus is defined as a Non-qualified Financing), then, at the closing of the Nonqualified Financing, the balance then outstanding may be converted, at the option of the holder, into that number of shares of Non-qualified Preferred Stock (preferred stock sold in the Non-qualified Financing) determined by dividing (i) the balance by (ii) the Conversion Price then in effect. |
Conversion Price | An amount equal to the lowest per share selling price of Nonqualified Preferred Stock sold by the Company for new cash investment in the Non-Qualified Financing. |
Convertible Promissory Notes _3
Convertible Promissory Notes (Details) - Schedule of fair value of the embedded redemption derivative liability | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2020 | |
Convertible Promissory Notes (Details) - Schedule of fair value of the embedded redemption derivative liability [Line Items] | ||
Probability of Conversion at Financing | 20.00% | 20.00% |
Expected Term | February 2022 | February 2022 |
Conversion Ratio | ||
Discount Rate | ||
Financing Date [Member] | ||
Convertible Promissory Notes (Details) - Schedule of fair value of the embedded redemption derivative liability [Line Items] | ||
Probability of Conversion at Financing | 80.00% | 80.00% |
Expected Term | 2021 | 2021 |
Conversion Ratio | 1 year 3 months | 1 year 3 months |
Financing Date [Member] | Minimum [Member] | ||
Convertible Promissory Notes (Details) - Schedule of fair value of the embedded redemption derivative liability [Line Items] | ||
Discount Rate | 5.19% | 1.68% |
Financing Date [Member] | Maximum [Member] | ||
Convertible Promissory Notes (Details) - Schedule of fair value of the embedded redemption derivative liability [Line Items] | ||
Discount Rate | 11.67% | 11.67% |
Convertible Promissory Notes _4
Convertible Promissory Notes (Details) - Schedule of fair value of the derivative liability - Warrant Issuance [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Servicing Liabilities at Fair Value [Line Items] | |||
Derivative liability, beginning balance | $ 453 | $ 121 | |
Fair Value at issuance date | 164 | 751 | |
Change in fair value | (220) | (121) | (354) |
Derivative liability, ending balance | $ 397 | $ 397 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | 9 Months Ended | ||
Mar. 24, 2021 | Mar. 28, 2019 | Aug. 31, 2019 | Sep. 30, 2021 | Dec. 31, 2018 | |
Redeemable Convertible Preferred Stock (Details) [Line Items] | |||||
Convertible preferred stock, description | On March 28, 2019, the Company’s Second Amended and Restated Certificate of Incorporation was filed with the Delaware Secretary of State which (i) increased the number of shares of common stock the Company is authorized to issue to 22,069,652; (ii) increased the number of shares of preferred stock the Company was authorized to issue to 7,930,348, of which 2,692,253 shares were designated as Series A preferred stock and 5,238,095 shares were designated as Series B preferred stock; (iii) amended and set a fixed conversion price of Series A preferred stock to $1.40; and (iv) extended the IPO Commitment Date from April 1, 2020 to no later than March 31, 2021. | ||||
Original issue price per share (in Dollars per share) | $ 2.1 | $ 0.0125 | |||
Convertible common stock (in Shares) | 11,436,956 | ||||
Preferred stock, description | (i) eliminated the Company’s Series A and Series B preferred stock, (ii) increased the authorized number of shares of common stock to 75,000,000 and (iii) authorized 5,000,000 shares of preferred stock at par value of $0.0001 per share. The significant rights and preferences of the preferred stock will be established by the Company’s Board of Directors (the “Board”) upon issuance of any such series of preferred stock in the future. | ||||
Series B Preferred Stock [Member] | |||||
Redeemable Convertible Preferred Stock (Details) [Line Items] | |||||
Stock issued during period (in Shares) | 4,942,319 | ||||
Stock price (in Dollars per share) | $ 2.1 | ||||
Net cash proceeds | $ 9.3 | ||||
Transaction price net of issuance costs | $ 9.3 | ||||
Accumulated accretion | 11.5 | ||||
Preferred stock carrying value | 20.8 | ||||
Series A Preferred Stock [Member] | |||||
Redeemable Convertible Preferred Stock (Details) [Line Items] | |||||
Accumulated accretion | 8.2 | ||||
Preferred stock carrying value | $ 14.5 |
Common Stock (Details)
Common Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 25, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2018 | Dec. 31, 2020 | Aug. 31, 2019 | |
Common Stock (Details) [Line Items] | ||||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | 22,069,652 | |||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Common stock, shares issued | 32,772,060 | 32,772,060 | 6,393,069 | |||
Shares of common stock for non-employee | 17,000 | |||||
Value of common stock issued for non-employee services (in Dollars) | $ 85,000 | |||||
Purchase price per share (in Dollars per share) | $ 0.0125 | $ 2.1 | ||||
Subject to the repurchase option | 303,333 | 303,333 | 985,834 | |||
Early exercise of common stock option | 0 | 50,000 | ||||
Repurchase liability (in Dollars) | $ 335,000 | $ 335,000 | $ 417,000 | |||
Shares remain unvested | 677,085 | 677,085 | 856,814 | |||
Weighted average vesting period | 2 years 3 months 18 days | |||||
Restricted Stock [Member] | ||||||
Common Stock (Details) [Line Items] | ||||||
Shares of common stock for non-employee | 3,640,000 | |||||
Purchase price per share (in Dollars per share) | $ 0.0125 | $ 0.0125 | ||||
Founder [Member] | ||||||
Common Stock (Details) [Line Items] | ||||||
Shares of common stock for non-employee | 400,000 | |||||
Purchase price per share (in Dollars per share) | $ 0.0125 | $ 0.0125 | ||||
Subject to the Repurchase Option | 33,333 | 33,333 | 108,333 | |||
IPO [Member] | ||||||
Common Stock (Details) [Line Items] | ||||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | ||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Aggregate amount (in Dollars) | $ 12,900,000 | |||||
Converted into shares | 5,015,494 | |||||
Series A and Series B Redeemable Convertible Preferred Stock [Member] | ||||||
Common Stock (Details) [Line Items] | ||||||
Converted into shares of common stock | 11,436,956 |
Common Stock (Details) - Schedu
Common Stock (Details) - Schedule of common stock reserved for future issuance | Sep. 30, 2021shares |
Schedule of common stock reserved for future issuance [Abstract] | |
Warrants to purchase common stock | 1,938,143 |
Stock options outstanding | 4,877,637 |
Stock options available for future grants | 830,322 |
Total | 7,646,102 |
Common Stock Warrants (Details)
Common Stock Warrants (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Feb. 28, 2021 | Apr. 16, 2019 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 31, 2019 | Aug. 28, 2019 | Mar. 28, 2019 | Apr. 23, 2018 | Mar. 14, 2018 | |
Common Stock Warrants (Details) [Line Items] | |||||||||||
Warrants to purchase shares | 133,648 | 133,648 | |||||||||
Common stock shares issued percentage | 10.00% | ||||||||||
Conversion price (in Dollars per share) | $ 2.5736 | ||||||||||
Warrants for common stock issued | 52,500 | ||||||||||
Weighted average exercise price (in Dollars per share) | $ 0.0125 | ||||||||||
Fair value of warrants liabilities (in Dollars) | $ 3,100,000 | ||||||||||
Common Stock [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Shares issued | 140,000 | 140,000 | |||||||||
Preferred A Placement Warrants [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Term of warrants | 5 years | ||||||||||
Preferred A Placement Warrants [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Warrants to purchase shares | 242,847 | ||||||||||
Exercise price per share (in Dollars per share) | $ 1.4 | ||||||||||
Increasing number of warrants | 109,200 | ||||||||||
Additional shares of common stock | 50,195 | ||||||||||
Preferred B Placement Warrants [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Term of warrants | 5 years | ||||||||||
Shares issued | 414,270 | ||||||||||
Preferred B Placement Warrants [Member] | Common Stock [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Common stock shares issued percentage | 10.00% | ||||||||||
Common stock shares conversion | 4,142,270 | ||||||||||
Preferred B Lead Investor Warrants [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Shares issued | 49,528 | ||||||||||
Convertible Notes Placement Warrants [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Shares issued | 10,000 | ||||||||||
Initial exercise price (in Dollars per share) | $ 2.97 | ||||||||||
Common stock cancelled (in Dollars) | $ 42,220 | ||||||||||
Convertible Notes Placement Warrants [Member] | Common Stock [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Shares issued | 214,050 | ||||||||||
Convertible Notes Placement Warrants [Member] | Warrants Liabilities [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Exercise price per share (in Dollars per share) | $ 2.57 | ||||||||||
Underwriter warrants [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Warrants to purchase shares | 0.0979 | ||||||||||
Term of warrants | 5 years | ||||||||||
Exercise price per share (in Dollars per share) | $ 6 | ||||||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 956,973 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Common stock shares issued upon conversion shares | 1,336,485 | ||||||||||
Conversion price (in Dollars per share) | $ 1.4 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Common Stock Warrants (Details) [Line Items] | |||||||||||
Exercise price per share (in Dollars per share) | $ 2.1 | ||||||||||
Sale of Stock, Price Per Share (in Dollars per share) | $ 2.1 |
Common Stock Warrants (Detail_2
Common Stock Warrants (Details) - Schedule of company's warrant activity | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrant Issuance, Outstanding begining | 871,167 |
Warrant Issuance, Granted | 1,009,473 |
Warrant Issuance, Exercised | |
Warrant Issuance, Canceled/ Expired | (42,220) |
Warrant Issuance, Variable Settlement Provision Adjustment | 99,723 |
Warrant Issuance, Outstanding ending | 1,938,143 |
Preferred A Placement Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant Issuance, Issuance | March and April 2018 and August 2019 |
Warrant Issuance, Excercise Price (in Dollars per share) | $ / shares | $ 1.4 |
Warrant Issuance, Outstanding begining | 242,847 |
Warrant Issuance, Granted | |
Warrant Issuance, Exercised | |
Warrant Issuance, Canceled/ Expired | |
Warrant Issuance, Variable Settlement Provision Adjustment | 50,195 |
Warrant Issuance, Outstanding ending | 293,042 |
Warrant Issuance, Expiration | March and April 2023 |
Preferred A Lead Investor Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant Issuance, Issuance | February 2021 |
Warrant Issuance, Excercise Price (in Dollars per share) | $ / shares | $ 0.0125 |
Warrant Issuance, Outstanding begining | |
Warrant Issuance, Granted | 52,500 |
Warrant Issuance, Exercised | |
Warrant Issuance, Canceled/ Expired | |
Warrant Issuance, Variable Settlement Provision Adjustment | |
Warrant Issuance, Outstanding ending | 52,500 |
Warrant Issuance, Expiration | March 2023 |
Preferred B Placement Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant Issuance, Issuance | April 2019 |
Warrant Issuance, Excercise Price (in Dollars per share) | $ / shares | $ 2.1 |
Warrant Issuance, Outstanding begining | 414,270 |
Warrant Issuance, Granted | |
Warrant Issuance, Exercised | |
Warrant Issuance, Canceled/ Expired | |
Warrant Issuance, Variable Settlement Provision Adjustment | 49,528 |
Warrant Issuance, Outstanding ending | 463,798 |
Warrant Issuance, Expiration | April 2024 |
Convertible Notes Placement Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant Issuance, Issuance | August 2020 |
Warrant Issuance, Excercise Price (in Dollars per share) | $ / shares | $ 2.57 |
Warrant Issuance, Outstanding begining | 214,050 |
Warrant Issuance, Granted | |
Warrant Issuance, Exercised | |
Warrant Issuance, Canceled/ Expired | (42,220) |
Warrant Issuance, Variable Settlement Provision Adjustment | |
Warrant Issuance, Outstanding ending | 171,830 |
Warrant Issuance, Expiration | August 2025 |
Underwriter warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant Issuance, Issuance | March 2021 |
Warrant Issuance, Excercise Price (in Dollars per share) | $ / shares | $ 6 |
Warrant Issuance, Outstanding begining | |
Warrant Issuance, Granted | 956,973 |
Warrant Issuance, Exercised | |
Warrant Issuance, Canceled/ Expired | |
Warrant Issuance, Variable Settlement Provision Adjustment | |
Warrant Issuance, Outstanding ending | 956,973 |
Warrant Issuance, Expiration | March 2026 |
Common Stock Warrants (Detail_3
Common Stock Warrants (Details) - Schedule of changes in fair value of the warrant liability - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Common Stock Warrants (Details) - Schedule of changes in fair value of the warrant liability [Line Items] | ||
Warrant Issuance, Warrant liability begining | $ 1,549 | $ 32 |
Warrant Issuance, Fair value of warrants granted | 6 | |
Warrant Issuance, Fair value of warrants exercised | ||
Warrant Issuance, Change in fair value of warrants | 1,581 | (8) |
Warrant Issuance, Reclassified to additional paid-in capital | (3,130) | |
Warrant Issuance, Warrant liability ending | 30 | |
Preferred A Placement Warrants [Member] | ||
Common Stock Warrants (Details) - Schedule of changes in fair value of the warrant liability [Line Items] | ||
Warrant Issuance, Warrant liability begining | 518 | 12 |
Warrant Issuance, Fair value of warrants granted | ||
Warrant Issuance, Fair value of warrants exercised | ||
Warrant Issuance, Change in fair value of warrants | 575 | (1) |
Warrant Issuance, Reclassified to additional paid-in capital | (1,093) | |
Warrant Issuance, Warrant liability ending | 11 | |
Preferred B Placement Warrants [Member] | ||
Common Stock Warrants (Details) - Schedule of changes in fair value of the warrant liability [Line Items] | ||
Warrant Issuance, Warrant liability begining | 708 | 20 |
Warrant Issuance, Fair value of warrants granted | ||
Warrant Issuance, Fair value of warrants exercised | ||
Warrant Issuance, Change in fair value of warrants | 800 | (7) |
Warrant Issuance, Reclassified to additional paid-in capital | (1,508) | |
Warrant Issuance, Warrant liability ending | 13 | |
Convertible Notes Placement Warrants [Member] | ||
Common Stock Warrants (Details) - Schedule of changes in fair value of the warrant liability [Line Items] | ||
Warrant Issuance, Warrant liability begining | 323 | |
Warrant Issuance, Fair value of warrants granted | 6 | |
Warrant Issuance, Fair value of warrants exercised | ||
Warrant Issuance, Change in fair value of warrants | 206 | |
Warrant Issuance, Reclassified to additional paid-in capital | (529) | |
Warrant Issuance, Warrant liability ending | $ 6 |
Common Stock Warrants (Detail_4
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions | 9 Months Ended |
Sep. 30, 2021 | |
Preferred A Placement Warrants [Member] | |
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions [Line Items] | |
Dividend Yield | |
Expected Volatility | 59.21% |
Risk-Free Interest Rate | 0.14% |
Expected Life | 2 years |
Preferred B Placement Warrants [Member] | |
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions [Line Items] | |
Dividend Yield | |
Expected Volatility | 58.51% |
Risk-Free Interest Rate | 0.30% |
Expected Life | 3 years |
Convertible Note Placement Warrants [Member] | |
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions [Line Items] | |
Dividend Yield | |
Expected Volatility | 52.28% |
Risk-Free Interest Rate | 0.82% |
Expected Life | 4 years 4 months 24 days |
Common Stock Warrants (Detail_5
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Preferred A Placement Warrants [Member] | ||
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions [Line Items] | ||
Warrant Issuance, Dividend Yield | ||
Warrant Issuance, Expected Volatility | 53.73% | 67.75% |
Warrant Issuance, Risk-Free Interest Rate | 0.15% | 0.13% |
Warrant Issuance, Expected Life | 2 years 6 months | 2 years 2 months 12 days |
Preferred B Placement Warrants [Member] | ||
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions [Line Items] | ||
Warrant Issuance, Dividend Yield | ||
Warrant Issuance, Expected Volatility | 49.39% | 55.76% |
Warrant Issuance, Risk-Free Interest Rate | 0.22% | 0.17% |
Warrant Issuance, Expected Life | 3 years 6 months | 3 years 3 months 18 days |
Convertible Note Placement Warrants [Member] | ||
Common Stock Warrants (Details) - Schedule of Black-Scholes option pricing model assumptions [Line Items] | ||
Warrant Issuance, Dividend Yield | ||
Warrant Issuance, Expected Volatility | 47.65% | 52.93% |
Warrant Issuance, Risk-Free Interest Rate | 0.31% | 0.36% |
Warrant Issuance, Expected Life | 4 years 10 months 24 days | 4 years 8 months 12 days |
Common Stock Warrants (Detail_6
Common Stock Warrants (Details) - Schedule of fair value at issuance for warrants - Black-Scholes Fair Value Assumptions [Member] | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Common Stock Warrants (Details) - Schedule of fair value at issuance for warrants [Line Items] | |
Issuance Date | March 2021 |
Fair Value (in Dollars) | $ 2,349 |
Dividend Yield | |
Expected Volatility | 52.58% |
Risk-Free Interest Rate | 0.82% |
Expected Life | 5 years |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 18, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 25, 2021 | Dec. 07, 2020 | |
Stock-Based Compensation (Details) [Line Items] | ||||||||
Contractual term | ||||||||
Common stock, shares issued | 32,772,060 | 32,772,060 | 6,393,069 | |||||
Shares granted | 830,322 | 830,322 | ||||||
Number of options | 7,646,102 | 7,646,102 | ||||||
Unamortized compensation expense (in Dollars) | $ 552,000 | $ 151,000 | $ 1,247,000 | $ 241,000 | ||||
Stock Options [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Unamortized compensation expense (in Dollars) | $ 7,000,000 | |||||||
Weighted average period | 2 years 10 months 24 days | |||||||
2019 Equity Incentive Plan [member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Sale of Stock, Number of Shares Issued in Transaction | 4,000,000 | |||||||
Fair value percentage | 110.00% | |||||||
Exercise price percentage | 10.00% | |||||||
Contractual term | 10 years | |||||||
Shares granted | 830,322 | 830,322 | ||||||
2019 Equity Incentive Plan [member] | Minimum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Fair value percentage | 100.00% | |||||||
Common stock, shares issued | 4,000,000 | 4,000,000 | 4,500,000 | |||||
2019 Equity Incentive Plan [member] | Maximum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Common stock, shares issued | 4,500,000 | 4,500,000 | 6,000,000 | |||||
2021 Inducement Award Plan [Member] | Stock Options [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Fair value (in Dollars per share) | $ 2.76 | |||||||
Grant date fair value of options granted (in Dollars per share) | $ 0.31 | |||||||
Number of options | 134,531 | 134,531 | 134,531 | 134,531 | ||||
Proceeds from stock options exercised (in Dollars) | $ 76,000 | $ 0 | ||||||
Fair value of options vested (in Dollars) | $ 598,988 | $ 688,155 | ||||||
Fair value of options vested (in Dollars per share) | $ 400,000 | $ 200,000 | ||||||
IPO [Member] | Minimum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Aggregate shares issued | 6,000,000 | |||||||
IPO [Member] | Maximum [Member] | ||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||
Aggregate shares issued | 7,400,000 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of stock option activity | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Schedule of stock option activity [Abstract] | |
Number of Options, Outstanding | shares | 3,188,011 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 0.66 |
Weighted Average Remaining Life, Outstanding | 9 years |
Intrinsic Value, Outstanding | $ | $ 8,155 |
Number of Options, Outstanding | shares | 4,877,637 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 1.91 |
Weighted Average Remaining Life, Outstanding | 8 years 8 months 12 days |
Intrinsic Value, Outstanding | $ | $ 8,368 |
Number of Options, Exercisable | shares | 1,902,685 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.52 |
Weighted Average Remaining Life, Exercisable | 8 years 1 month 6 days |
Intrinsic Value, Exercisable | $ | $ 5,566 |
Number of Options, Vested and expected to vest | shares | 4,827,437 |
Weighted Average Exercise Price, Vested and expected to vest | $ / shares | $ 1.93 |
Weighted Average Remaining Life, Vested and expected to vest | 8 years 8 months 12 days |
Intrinsic Value, Vested and expected to vest | $ | $ 8,214 |
Number of Options, Granted | shares | 1,970,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 3.75 |
Weighted Average Remaining Life, Granted | |
Intrinsic Value, Granted | $ | |
Number of Options, Exercised | shares | (134,541) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.56 |
Weighted Average Remaining Life, Exercised | |
Intrinsic Value, Exercised | $ | |
Number of Options, Cancelled | shares | (145,833) |
Weighted Average Exercise Price, Cancelled | $ / shares | $ 0.59 |
Weighted Average Remaining Life, Cancelled | |
Intrinsic Value, Cancelled | $ |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of weighted average assumptions for fair value of options estimated - Options [Member] | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-Based Compensation (Details) - Schedule of weighted average assumptions for fair value of options estimated [Line Items] | ||
Dividend yield | ||
Expected volatility | 67.54% | 67.92% |
Risk-free interest rate | 0.76% | 0.46% |
Expected life | 6 years 21 days | 5 years 9 months 7 days |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense to employees and non-employees - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 552 | $ 151 | $ 1,247 | $ 241 |
Research and development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 217 | 15 | 467 | 40 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 335 | $ 136 | $ 780 | $ 201 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | May 14, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |||||
Base rent | $ 14,000 | ||||
Security deposit | $ 47,000 | ||||
Rent expense | $ 57,000 | $ 28,000 | $ 105,000 | $ 84,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of future minimum lease payments | Sep. 30, 2021USD ($) |
Schedule of future minimum lease payments [Abstract] | |
Remainder of 2021 | $ 42 |
2022 | 173 |
2023 | 179 |
2024 | 138 |
Total | $ 532 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Performance based option awards | 50,200 | 50,200 | 50,200 | 50,200 |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders (Details) - Schedule of basic and diluted net loss per share attributable to common stockholders - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net loss | $ (5,173) | $ (3,341) | $ (15,468) | $ (8,105) |
Accretion and dividends on redeemable convertible preferred stock | (2,322) | (2,489) | (6,396) | |
Net loss attributable to common stockholders | $ (5,173) | $ (5,663) | $ (17,957) | $ (14,501) |
Denominator: | ||||
Weighted-average common shares outstanding (in Shares) | 32,268,890 | 3,029,765 | 24,200,475 | 2,777,510 |
Net loss per share attributable to common stockholders, basic and diluted (in Dollars per share) | $ (0.16) | $ (1.87) | $ (0.74) | $ (5.22) |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable to Common Stockholders (Details) - Schedule of diluted net loss per share attributable to common stockholders - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of diluted net loss per share attributable to common stockholders [Abstract] | ||
Shares of redeemable convertible preferred stock | 7,634,572 | |
Non-vested shares under restricted stock grants | 336,666 | 1,346,667 |
Shares related to convertible promissory notes | 1,399,254 | |
Shares subject to options to purchase common stock | 4,877,637 | 3,897,478 |
Shares subject to warrants to purchase common stock | 1,938,143 | 1,174,168 |
Total | 7,152,447 | 15,452,139 |