Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Applied Molecular Transport Inc. | |
Entity Central Index Key | 0001801777 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 38,278,344 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-39306 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4481426 | |
Entity Address, Address Line One | 1 Tower Place | |
Entity Address, Address Line Two | Suite 850 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 392-0420 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | AMTI | |
Security Exchange Name | NASDAQ |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 26,202 | $ 5,843 |
Short-term investments | 82,063 | 124,026 |
Prepaid expenses | 2,648 | 1,311 |
Deferred offering costs | 659 | |
Other current assets | 393 | 321 |
Total current assets | 111,965 | 131,501 |
Property and equipment, net | 6,999 | 8,447 |
Operating lease right-of-use assets, net | 5,450 | |
Finance lease right-of-use assets, net | 796 | |
Restricted cash | 1,025 | 108 |
Other assets | 169 | 127 |
Total assets | 126,404 | 140,183 |
Current liabilities: | ||
Accounts payable | 2,208 | 3,174 |
Accrued expenses | 4,094 | 4,173 |
Operating lease liabilities, current | 2,377 | |
Finance lease liabilities, current | 235 | |
Deferred rent, current | 83 | |
Capital lease obligations, current | 232 | |
Total current liabilities | 8,914 | 7,662 |
Operating lease liabilities | 3,589 | |
Finance lease liabilities | 344 | |
Deferred rent | 444 | |
Capital lease obligations | 404 | |
Total liabilities | 12,847 | 8,510 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value, 450,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 35,250,650 and 35,121,360 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 4 | 4 |
Additional paid-in capital | 273,348 | 271,000 |
Accumulated other comprehensive income | 25 | 27 |
Accumulated deficit | (159,820) | (139,358) |
Total stockholders’ equity | 113,557 | 131,673 |
Total liabilities and stockholders’ equity | $ 126,404 | $ 140,183 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 35,250,650 | 35,121,360 |
Common stock, shares outstanding | 35,250,650 | 35,121,360 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating expenses: | ||
Research and development | $ 14,881 | $ 12,954 |
General and administrative | 5,599 | 2,489 |
Total operating expenses | 20,480 | 15,443 |
Loss from operations | (20,480) | (15,443) |
Interest income, net | 40 | 83 |
Other (expense) income, net | (22) | 49 |
Net loss | $ (20,462) | $ (15,311) |
Net loss per share, basic and diluted | $ (0.58) | $ (2.06) |
Weighted-average shares of common stock outstanding, basic and diluted | 35,217,773 | 7,417,440 |
Comprehensive loss: | ||
Net loss | $ (20,462) | $ (15,311) |
Other comprehensive (loss) income: | ||
Unrealized (loss) gain on investments | (2) | 6 |
Total comprehensive loss | $ (20,464) | $ (15,305) |
Condensed Statements of Convert
Condensed Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (unaudited) - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Series C Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ (71,702) | $ 1 | $ 1,078 | $ 13 | $ (72,794) | |||
Balance, shares at Dec. 31, 2019 | 7,360,738 | |||||||
Convertible preferred stock balance at Dec. 31, 2019 | $ 32,826 | $ 30,921 | $ 41,868 | |||||
Convertible preferred stock balance, shares at Dec. 31, 2019 | 5,157,213 | 3,992,919 | 4,816,160 | |||||
Exercise of common stock options | 58 | 58 | ||||||
Exercise of common stock, shares | 73,594 | |||||||
Stock-based compensation expense | 557 | 557 | ||||||
Unrealized (loss) gain on investments | 6 | 6 | ||||||
Net loss | (15,311) | (15,311) | ||||||
Balance at Mar. 31, 2020 | (86,392) | $ 1 | 1,693 | 19 | (88,105) | |||
Balance, shares at Mar. 31, 2020 | 7,434,332 | |||||||
Convertible preferred stock balance at Mar. 31, 2020 | $ 32,826 | $ 30,921 | $ 41,868 | |||||
Convertible preferred stock balance, shares at Mar. 31, 2020 | 5,157,213 | 3,992,919 | 4,816,160 | |||||
Balance at Dec. 31, 2020 | $ 131,673 | $ 4 | 271,000 | 27 | (139,358) | |||
Balance, shares at Dec. 31, 2020 | 35,121,360 | 35,121,360 | ||||||
Exercise of common stock options | $ 397 | 397 | ||||||
Exercise of common stock, shares | 129,290 | 129,290 | ||||||
Stock-based compensation expense | $ 1,951 | 1,951 | ||||||
Unrealized (loss) gain on investments | (2) | (2) | ||||||
Net loss | (20,462) | (20,462) | ||||||
Balance at Mar. 31, 2021 | $ 113,557 | $ 4 | $ 273,348 | $ 25 | $ (159,820) | |||
Balance, shares at Mar. 31, 2021 | 35,250,650 | 35,250,650 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net loss | $ (20,462) | $ (15,311) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 1,951 | 557 |
Depreciation and amortization | 784 | 211 |
Non-cash operating lease expense | 597 | 0 |
Net accretion of discounts on investments | (39) | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses | (1,337) | (2,321) |
Other current assets | (114) | (563) |
Other assets | 504 | |
Accounts payable | (1,331) | 2,575 |
Accrued expenses | (389) | 629 |
Operating lease liabilities | (608) | 0 |
Deferred rent | 6 | |
Capital lease obligations | 2 | |
Net cash used in operating activities | (20,948) | (13,711) |
Investing activities | ||
Proceeds from sales and maturities of investments | 42,000 | 18,126 |
Purchases of property and equipment | (79) | (1,203) |
Purchases of investments | (8,315) | |
Net cash provided by investing activities | 41,921 | 8,608 |
Financing activities | ||
Proceeds from exercise of common stock options | 397 | 58 |
Principal payments on finance lease liabilities | (57) | 0 |
Payments of issuance costs for follow-on offering | (37) | 0 |
Payments of issuance costs for initial public offering | (1,695) | |
Principal payments on capital lease obligations | (20) | |
Net cash provided by (used in) financing activities | 303 | (1,657) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 21,276 | (6,760) |
Cash, cash equivalents and restricted cash, beginning of period | 5,951 | 12,835 |
Cash, cash equivalents and restricted cash, end of period | 27,227 | 6,075 |
Supplemental cash flow data: | ||
Cash paid for interest on capital lease obligations | 9 | 1 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment included in accounts payable and accrued expenses | 54 | 660 |
Issuance costs included in accounts payable and accrued expenses | $ 622 | $ 641 |
Business and Principal Activiti
Business and Principal Activities | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and Principal Activities | 1. Business and Principal Activities Description of Business Applied Molecular Transport Inc. (the Company) is a clinical-stage biopharmaceutical company leveraging its proprietary technology platform to design and develop a pipeline of novel oral biologic product candidates to treat autoimmune, inflammatory, metabolic, and other diseases. The Company is building a portfolio of oral product candidates based on its technology platform including its most advanced product candidate, AMT-101, a gastrointestinal (GI)-selective oral fusion of interleukin-10 (IL-10) and our proprietary carrier molecule that has completed a Phase 1b clinical trial in patients with ulcerative colitis (UC). The Company has initiated multiple Phase 2 clinical trials of AMT-101 in UC and related inflammatory indications. The Company’s second product candidate, AMT-126, is a GI-selective oral fusion of interleukin-22 (IL-22) and the Company’s proprietary carrier molecule currently in development for diseases related to intestinal epithelium (IE) barrier function defects driven by activation of the innate immune system. The Company’s technology platform enables it to design and develop various oral biologic therapeutic modalities, such as peptides, proteins, full-length antibodies, antibody fragments, and ribonucleic acid (RNA) therapeutics, with potentially significant advantages over existing marketed and development-stage drugs. Since the date of incorporation in Delaware on November 21, 2016, the Company has devoted substantially all of its resources to research and development activities, including research activities such as drug discovery, preclinical studies, and clinical trials as well as development activities such as the manufacturing of clinical and research material, establishing and maintaining an intellectual property portfolio, hiring personnel, raising capital, and providing general and administrative support for these operations. Initial Public Offering On June 4, 2020, the Company’s registration statement on Form S-1 (File No. 333-238464) relating to its initial public offering (IPO) of common stock became effective. The IPO closed on June 9, 2020 at which time the Company issued an aggregate of 12,650,000 shares of its common stock at a price of $14.00 per share which included 1,650,000 shares of common stock issued in connection with the full exercise by the underwriters of their option to purchase additional shares of common stock. In addition, immediately prior to the closing of the IPO, all outstanding shares of the Company’s convertible preferred stock automatically converted into 13,966,292 shares of common stock. The aggregate offering price for shares sold in the IPO was $177.1 million. After deducting underwriting discounts and commissions of $12.4 million and offering costs paid or payable by the Company of $4.1 million ( including offering costs of $0.2 million paid in 2019) Follow-On Offering On April 6, 2021, the Company completed a follow-on offering. See Note 10. Liquidity and Capital Resources Management believes that its existing cash, cash equivalents, and investments as of March 31, 2021 will be sufficient to allow the Company to fund its current operating plan through at least 12 months after the date of issuance of these condensed financial statements. The Company has incurred significant losses and negative cash flows from operations since its inception. Risks and Uncertainties The extent to which the COVID-19 pandemic impacts our business will depend on future developments, which are highly uncertain and cannot be predicted, such as the duration of the outbreak, travel restrictions and social distancing in the United States and other countries, business closures or business disruptions, and the effectiveness of actions taken in the United States and other countries to contain and treat the disease and to address its impact, including on financial markets or otherwise. Beginning the week of March 16 th |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Condensed Financial Statements (Unaudited) The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and applicable rules and regulations of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the interim periods presented. The condensed balance sheet as of December 31, 2020, is derived from the Company’s audited financial statements. The results of operations during the three months ended March 31, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other future annual or interim period. The accompanying interim unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 19, 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheet and expenses and income reported are affected by estimates and assumptions, which are used for, but are not limited to, estimating research and development expenses and determining the fair value of assets and liabilities, including common stock valuation, income tax uncertainties, and measurement of stock-based compensation expense. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic. Actual results could differ from such estimates or assumptions. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and investments. The Company invests in U.S. Treasury securities. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents, and investments to the extent recorded in the condensed balance sheet. The Company has not experienced any losses on its deposits of cash, cash equivalents, and investments. The Company is subject to a number of risks similar to other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future preclinical studies or clinical trials, its reliance on third parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitors developing new technological innovations, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, protection of its proprietary technology, and the need to secure and maintain adequate manufacturing arrangements with third parties. If the Company does not successfully commercialize or partner any of its product candidates, it will be unable to generate product revenue or achieve profitability. Operating Segment The Company operates and manages its business as one reportable and operating segment, which is the business of designing and developing a pipeline of novel oral biologic product candidates to treat autoimmune, inflammatory, metabolic, and other diseases. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating and evaluating financial performance. Cash and Cash Equivalents Cash and cash equivalents are held in accounts at financial institutions. Such deposits have and will continue to exceed federally insured limits in the foreseeable future. The Company considers all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash equivalents consist of amounts invested in money market funds exclusively composed of U.S. government obligations. Restricted Cash The Company has cash in two collateral accounts related to letters of credit issued on behalf of the Company for the security deposits on the leased and subleased properties in South San Francisco. As of March 31, 2021, the collateralized cash in connection with the letter of credit was classified as restricted cash on the condensed balance sheet based on the terms of the agreements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed statements of cash flows (in thousands): March 31, March 31, 2021 2020 Cash and cash equivalents $ 26,202 $ 5,967 Restricted cash 1,025 108 Total cash, cash equivalents and restricted cash $ 27,227 $ 6,075 Investments The Company’s investments have been classified and accounted for as available-for-sale securities. Fixed income securities consist of U.S. Treasury securities. The specific identification method is used to determine the cost basis of fixed income securities sold. These securities are recorded on the condensed balance sheets at fair value. Unrealized gains and losses on these securities are included as a separate component of accumulated other comprehensive income or loss. The cost of investment securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in other income or expense, net. The Company classifies its investments as short or long term primarily based on the remaining contractual maturity of the securities. Property and Equipment, Net Property and equipment are presented at cost, net of accumulated depreciation. Depreciation is recorded using the straight-line method. Depreciation begins at the time the asset is placed in service. Maintenance and repairs are charged to expense as incurred and costs of major replacement or improvement are capitalized. The Company’s estimated useful lives of its property and equipment are as follows: Laboratory and manufacturing equipment 5 years Computer and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Impairment of Long-Lived Assets The Company evaluates the carrying amount of its long-lived assets whenever events or changes in circumstances indicate that the assets may not be recoverable. An impairment loss is recognized when the remaining book value of an asset is not recoverable. There was no impairment on long-lived assets during the three months ended March 31, 2021 and March 31, 2020. Leases In February 2016, the Financial Accounting Standards Board (FASB) issued a new standard that requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Company adopted the new standard on January 1, 2021 using the modified retrospective approach. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the condensed statements of operations and comprehensive loss. At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on the facts and circumstances present in that arrangement. Lease classification, recognition, and measurement are then determined at the lease commencement date. For arrangements that contain a lease, the Company (i) identifies lease and non-lease components, (ii) determines the consideration in the contract, (iii) determines whether the lease is an operating or finance lease; and (iv) recognizes lease ROU assets and liabilities. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable and as such, the Company uses the incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. Most leases include options to renew and, or terminate the lease, which can impact the lease term. The exercise of these options is at the Company’s discretion. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company has operating leases for its corporate offices, laboratory and warehouse facilities, and a contract research organization (CRO) embedded lease arrangement. Fixed lease payments on operating leases are recognized over the expected term of the lease on a straight-line basis. Variable lease expenses that are not considered fixed are recognized as incurred. Fixed and variable lease expense on operating leases is recognized within operating expenses within our condensed statements of operations and comprehensive loss. The Company has finance leases for lab equipment. Fixed payments on finance leases are recognized using the effective interest method. Finance lease ROU asset amortization and interest expense are recorded within operating expenses and interest income, net, respectively, within our condensed statements of operations and comprehensive loss. The Company has elected the short-term lease exemption and, therefore, does not recognize an ROU asset or corresponding liability for lease arrangements with an original term of 12 months or less. Research and Development Expenses Research and development expenses are expensed as incurred. Research and development expenses include personnel costs related to research and development activities, materials costs, external clinical drug product manufacturing and clinical trial costs, outside services costs, repair, maintenance and depreciation costs for research and development equipment, as well as facility costs for laboratory space used for research and development activities. Accrued Research and Development Expenses The Company records accruals for estimated costs of research, preclinical studies, clinical trials, manufacturing and development, within accrued expenses which are significant components of research and development expenses. A substantial portion of the Company’s ongoing research and development activities is conducted by third-party service providers, CROs and contract development and manufacturing organizations (CDMOs). The Company’s contracts with the CROs and CDMOs generally include fees such as clinical trial fees, initiation fees, reservation fees, costs related to animal studies and safety tests, verification run costs, materials and reagents expenses, taxes, etc. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company accrues the costs incurred under agreements with these third parties based on estimates of actual work completed in accordance with the respective agreements. The Company determines the estimated costs through discussions with internal personnel and external service providers as to the progress, stage of completion or actual timeline (start-date and end-date) of the services and the agreed-upon fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company adjusts accrued expenses or prepaid expenses accordingly, which impact research and development expenses. Although the Company does not expect its estimates to be materially different from amounts actually incurred, the Company’s understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period. To date, there have not been any material adjustments to the Company’s prior estimates of research and development expenses. Stock-Based Compensation Expense The Company maintains both an equity incentive plan and an employee stock purchase plan (ESPP) as long-term incentives for its employees, consultants, and directors. The equity incentive plan allows for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock grants, and restricted stock units. The ESPP has an offering period of two years comprised of four purchase periods. The ESPP allows employees to purchase shares of the Company’s common stock each purchase period based on a percentage of their compensation subject to certain limits. As of March 31, 2021, no stock appreciation rights, restricted stock grants, restricted stock units or performance-based awards were issued. The Company accounts for stock-based compensation expense by measuring and recognizing compensation expense for all share-based payments made to employees and non-employees based on estimated grant-date fair values. The grant-date fair values for options are recorded as stock-based compensation expense on a straight-line basis over each recipient’s requisite service period, which is generally the vesting period. The grant-date fair values for the ESPP are recorded as stock-based compensation expense on a straight-line basis over the applicable purchase period. The Company recognizes actual forfeitures by reducing the stock-based compensation expense in the same period as that forfeitures occur. The Company estimates the fair value of stock options granted to employees and non-employees using the Black-Scholes model. The Company estimates the fair value of ESPP for each purchase period at the beginning of the offering period using the Black-Scholes model. The Black-Scholes model requires the input of assumptions, including expected volatility, expected dividend yield, expected term and the risk-free rate of return. The fair value of ESPP also factors in a discount which is typically 15% of the purchase price as well as a call output and a put output of the Black-Scholes model. Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company determined the fair value of financial assets and liabilities using the fair value hierarchy that describes three levels of inputs that may be used to measure fair value, as follows: ▪ Level 1—Quoted prices in active markets for identical assets and liabilities; ▪ Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and ▪ Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of March 31, 2021 and December 31, 2020, fair value measurements consisted mainly of cash equivalents and investments. The carrying amounts of these instruments approximate their fair value. Comprehensive Loss Comprehensive loss includes net loss and other comprehensive (loss) income for the period. Other comprehensive (loss) income represents unrealized (loss) or gain on investments. Deferred Offering Costs Deferred offering costs, consisting of legal, accounting and filing fees, are capitalized and subsequently offset against offering proceeds. During the three months ended March 31, 2021, $0.7 million of deferred offering costs were incurred in connection with the Company’s follow-on offering which is described in Note 10. Emerging Growth Company Status The Company is an emerging growth company (EGC) as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act) and may take advantage of reduced reporting requirements that are otherwise applicable to public companies. Section 107 of the JOBS Act exempts EGCs from being required to comply with new or revised financial accounting standards until private companies are required to comply with those standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded if and when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) The Company adopted the new standard on January 1, 2021 using the modified retrospective approach. The Company has elected to apply the transition method that allows companies to continue applying the guidance under the lease standard in effect at that time in the comparative periods presented in the condensed financial statements and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit on the date of adoption. The Company has elected to combine lease components (for example fixed rent payments) with non-lease components (for example, common-area maintenance costs) on our facility, lab equipment and CRO embedded lease asset classes. The Company also elected the “package of practical expedients”, which permits the Company not to reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. Lastly, the Company elected a practical expedient to use hindsight in determining the lease term for all its leases. Results for reporting period beginning after January 1, 2021 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Upon adoption of the new lease standard, on January 1, 2021, the Company capitalized operating lease ROU assets of $6.0 million, with opening adjustments of $0.5 million related to deferred rent existing at transition, and $6.5 million of operating lease liabilities, within our condensed balance sheets upon adoption. There was no impact to the finance lease ROU asset and the finance lease liabilities upon adoption. Also, for both operating and finance leases, there was no impact to the accumulated deficit upon the adoption of the new standard on January 1, 2021. In October 2020, the FASB issued ASU 2020-10, Codification Improvements |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements As of March 31, 2021, the Company held $82.1 million of investment securities, comprised of U.S. Treasury securities. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Financial instruments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, or historical pricing trends of a security relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy. The carrying amounts of cash equivalents and investments approximate their fair value based upon quoted market prices. Certain of the Company’s financial instruments are recorded at amounts that approximate their fair value, rather than at fair value on a recurring basis, due to their liquid or short-term nature, such as cash, accounts payable and accrued expenses. The unrealized losses on short-term investments as of March 31, 2021 were insignificant. The Company does not believe that these unrealized losses are credit related but are rather a reflection of current market yields and/or current marketplace bid/ask spreads. The Company has not recognized an allowance for credit losses as of March 31, 2021. The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2021 Fair Value Gross Gross Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations (1) Level 1 $ 25,213 $ — $ — $ 25,213 Short-term investments: U.S. Treasury securities Level 2 82,038 25 — 82,063 Total $ 107,251 $ 25 $ — $ 107,276 (1) Included in cash and cash equivalents on the condensed balance sheet December 31, 2020 Fair Value Gross Gross Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations (1) Level 1 $ 4,844 $ — $ — $ 4,844 Short-term and long-term investments: U.S. Treasury securities Level 2 123,998 28 — 124,026 Total $ 128,842 $ 28 $ — $ 128,870 (1) Included in cash and cash equivalents on the condensed balance sheet |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2021 2020 Laboratory and manufacturing equipment $ 8,176 $ 8,022 Leasehold improvements 2,598 2,550 Computer and office equipment 201 201 Construction in progress 92 162 Capital leases — 959 Total property and equipment, gross 11,067 11,894 Accumulated depreciation (4,068 ) (3,447 ) Total property and equipment, net $ 6,999 $ 8,447 Depreciation was $0.7 million and $0.2 million during the three months ended March 31, 2021 and 2020, respectively. Capital leases consisted of laboratory and manufacturing equipment subject to capital leases. Depreciation on capital lease assets was insignificant during three months ended March 31, 2020. The accumulated depreciation on capital lease assets was $0.1 million as of December 31, 2020. Right-of-Use Assets, Net Right-of-use assets, net consisted of the following as of March 31, 2021 (in thousands): Operating Leases Finance Leases Total Right-of-use assets $ 6,013 $ 959 $ 6,972 Accumulated amortization (563 ) (163 ) (726 ) Right-of-use assets, net $ 5,450 $ 796 $ 6,246 Lease expense from operating lease right-of-use assets during the three months ended March 31, 2021 was $0.6 million. Amortization expense from finance lease right-of-use assets during the three months ended March 31, 2021 was insignificant. Accrued Expenses Accrued expenses consisted of the following (in thousands): March 31, December 31, 2021 2020 Research and development expenses $ 2,213 $ 1,303 Compensation expenses 1,037 2,389 Professional services 687 241 Other 109 115 Property and equipment 48 125 Total accrued expenses $ 4,094 $ 4,173 Accrued research and development expenses were primarily related to clinical trials, preclinical studies, contract manufacturing and materials. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 5. Leases Operating Leases In December 2016, the Company entered into an operating lease agreement for its principal office in South San Francisco, California. The lease term expires in August 2024. Under the lease agreement, the Company has two three-year renewal options through August 2030. In October 2019, the Company entered into a sublease, as a lessee, for office and laboratory space located in South San Francisco, California. The sublease term expires in May 2022. Under the lease agreement, the Company has a five-year renewal option through May 2027. In September 2020, the Company entered into a lease agreement for warehouse space in South San Francisco, California. The lease term expires in September 2021. Under the lease agreement, the Company has two six-month renewal options through September 2022. In February 2021, the Company entered into a lease agreement for laboratory, manufacturing, warehouse and office space in South San Francisco, California. The lease term is estimated to commence in October 2021. The initial lease term is eight years from the commencement date and includes optional two five-year extensions. As of March 31, 2021, the Company does not yet have control of the underlying asset. Finance Leases During 2019, the Company entered into three finance lease agreements for certain laboratory equipment. Two of the leases commenced during 2019 and the third lease commenced during 2020. The following table summarizes total lease expense during the three months ended March 31, 2021 (in thousands): Condensed Statements of Operations and Comprehensive Loss Classification Three Months Ended March 31, 2021 Operating lease expense Operating expenses $ 597 Finance lease expense: Amortization of right-of-use assets Operating expenses 48 Interest on lease liabilities Interest income, net 9 Variable lease expense Operating expenses 204 Short-term lease expense Operating expenses 8 Total lease expense $ 866 Rent expense was $0.5 million during the three months ended March 31, 2020. The following table summarizes supplemental cash flow information during the three months ended March 31, 2021 (in thousands): Three Months Ended March 31, 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 608 Operating cash flows from finance leases 9 Financing cash flows from finance leases 57 The following table summarizes maturities of lease liabilities and the reconciliation of lease liabilities as of March 31, 2021 (in thousands): Operating Leases Finance Leases Total 2021 (remaining nine months) $ 1,861 $ 197 $ 2,058 2022 1,864 255 2,119 2023 1,457 171 1,628 2024 1,000 — 1,000 Total undiscounted lease liabilities 6,182 623 6,805 Less: Interest (216 ) (44 ) (260 ) Total discounted lease liabilities 5,966 579 6,545 Less: Lease liabilities, current (2,377 ) (235 ) (2,612 ) Lease liabilities, non-current $ 3,589 $ 344 $ 3,933 The following table summarizes lease terms and discount rates as of March 31, 2021: Operating Leases Finance Leases Weighted-average remaining lease term (years) 2.9 2.3 Weighted-average discount rate 2.31 % 5.95 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Contingencies From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company was not subject to any material legal proceedings during the three months ended March 31, 2021 and 2020, and no material legal proceedings are currently pending or threatened. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. As permitted under Delaware law and in accordance with its bylaws, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its officers and directors. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments that the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company is not currently aware of any indemnification claims. The Company also maintains director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and officers. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of March 31, 2021 and December 31, 2020. COVID-19 The full extent of the impact of the COVID-19 pandemic on financial markets, economies worldwide and our business is highly uncertain. As of March 31, 2021, the Company was not aware of any contingencies and no estimates were recorded on its condensed financial statements as a result of COVID-19. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Common Stock | 7. Common Stock As of March 31, 2021 and December 31, 2020, the Company was authorized to issue 450,000,000 shares of $0.0001 par value common stock. Common stockholders are entitled to dividends if and when declared by the Board of Directors of the Company (Board of Directors). The holder of each share of common stock is entitled to one vote. As of March 31, 2021, no dividends were declared. Common stock reserved for future issuance, on an as converted basis, consisted of the following: March 31, December 31, 2021 2020 Stock options, issued and outstanding 4,341,535 3,506,599 Stock options, authorized for future issuance 4,161,088 3,369,246 ESPP, available for future grants 665,220 314,006 Total 9,167,843 7,189,851 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plan and Stock-Based Compensation Expense | 8. Stock-Based Compensation Expense 2020 Equity Incentive Plan The Company’s 2020 Equity Incentive Plan (the 2020 Plan) Options under the 2020 Plan may be granted for periods of up to 10 years and at prices no less than 100% of the estimated fair value of the underlying shares of common stock on the date of grant as determined by the Board of Directors provided that the exercise price of an ISO and NSO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. The 2020 Plan requires that options be exercised no later than 10 years after the grant. Options granted to employees generally vest ratably on a monthly basis over four years, subject to cliff vesting restrictions. The Company’s previous 2015 Equity Incentive Plan (the 2015 Plan) and 2016 Equity Incentive Plan (the 2016 Plan) were terminated in accordance with the Company’s IPO in June 2020. Shares subject to awards granted under the 2015 Plan and the 2016 Plan were added to the available shares in the 2020 Plan. Shares subject to awards granted under the 2015 Plan and 2016 Plan that are repurchased by, or forfeited to, the Company will also be reserved for issuance under the 2020 Plan. The following summarizes stock option activity: Options Outstanding Shares Available for Grant Total Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 3,369,246 3,506,599 $ 6.27 8.8 $ 85,975 Additions 1,756,068 — — Granted (1,079,400 ) 1,079,400 53.80 Exercised — (129,290 ) 3.07 Cancelled 115,174 (115,174 ) 6.18 Outstanding as of March 31, 2021 4,161,088 4,341,535 $ 18.19 8.5 $ 124,490 Exercisable as of March 31, 2021 — 1,182,872 $ 3.47 7.6 $ 47,950 Weighted-average grant-date fair value of the options granted during the three months ended March 31, 2021 was $34.92 per share. The intrinsic value of options exercised during the three months ended March 31, 2021 was $4.7 million. As of March 31, 2021, the Company had $48.3 million of unrecognized stock-based compensation expense, related to options granted but not yet amortized, which will be recognized over a weighted-average period of approximately 3.0 years. 2020 Employee Stock Purchase Plan Under the Company’s 2020 Employee Stock Purchase Plan (the 2020 ESPP), employees can purchase shares of the Company’s common stock each purchase period based on a percentage of their compensation, subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of the Company’s common stock on the enrollment date or the purchase date. The 2020 ESPP offers a six-month look-back feature as well as an automatic rollover feature that provides for the offering period to be reset to a new lower-priced offering price if the market price of the stock at the purchase date is lower than the stock price at the initial enrollment date. In that case, the offering period is immediately cancelled after that purchase date, and a new two-year offering period is established using the then-current stock price as the base purchase price. The shares authorized for the 2020 ESPP increase annually by the lesser of (i) 628,012 shares, (ii) 1% of the Company’s common stock shares outstanding on the last day of its immediately preceding fiscal year, or (iii) such other amount as determined by the Company’s Board of Directors. Accordingly, effective January 1, 2021, the number of shares in the 2020 ESPP increased by 351,214 shares, representing 1% of the prior year end’s common stock outstanding. As of March 31, 2021, 665,220 shares of common stock remained available for future issuance under the 2020 ESPP. The Company began recording stock-based compensation expense for its ESPP on January 1, 2021. During the three months ended March 31, 2021, the Company recorded $0.1 million stock-based compensation expense related to the ESPP. The fair value of stock-based compensation expense applicable to the ESPP was estimated using the following weighted-average assumptions: Three Months Ended March 31, 2021 Expected term in years 0.4 Expected volatility 52.35% Risk-free interest rate 0.09% Expected dividend yield — Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations and comprehensive loss during the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 1,100 $ 328 General and administrative 851 229 Total stock-based compensation expense $ 1,951 $ 557 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 9. Net Loss Per Share The following table sets forth the computation of the basic and diluted net loss per share (in thousands except share and per share data): Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (20,462 ) $ (15,311 ) Denominator: Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share 35,217,773 7,417,440 Net loss per share, basic and diluted $ (0.58 ) $ (2.06 ) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all common stock equivalents outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: March 31, 2021 2020 Total stock options outstanding 4,341,535 4,043,507 Series A convertible preferred stock (as converted to common stock) — 5,157,213 Series B convertible preferred stock (as converted to common stock) — 3,992,919 Series C convertible preferred stock (as converted to common stock) — 4,816,160 Total 4,341,535 18,009,799 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | 10. Subsequent Event On April 6, 2021, the Company completed a follow-on offering and issued total 2,875,000 shares of its common stock, including 375,000 shares of the common stock issued in connection with the full exercise by the underwriters of their options to purchase additional shares of common stock, at a price of $42.00 per share. The aggregate gross proceeds from the follow-on offering were $120.8 million. After deducting underwriting discounts and commissions of $7.2 million and deferred offering costs of $0.7 million, the net proceeds from the follow-on offering were approximately $112.9 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Condensed Financial Statements (Unaudited) | Condensed Financial Statements (Unaudited) The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and applicable rules and regulations of the U.S. Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The interim condensed financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the interim periods presented. The condensed balance sheet as of December 31, 2020, is derived from the Company’s audited financial statements. The results of operations during the three months ended March 31, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other future annual or interim period. The accompanying interim unaudited condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 19, 2021. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheet and expenses and income reported are affected by estimates and assumptions, which are used for, but are not limited to, estimating research and development expenses and determining the fair value of assets and liabilities, including common stock valuation, income tax uncertainties, and measurement of stock-based compensation expense. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic. Actual results could differ from such estimates or assumptions. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and investments. The Company invests in U.S. Treasury securities. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents, and investments to the extent recorded in the condensed balance sheet. The Company has not experienced any losses on its deposits of cash, cash equivalents, and investments. The Company is subject to a number of risks similar to other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future preclinical studies or clinical trials, its reliance on third parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitors developing new technological innovations, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, protection of its proprietary technology, and the need to secure and maintain adequate manufacturing arrangements with third parties. If the Company does not successfully commercialize or partner any of its product candidates, it will be unable to generate product revenue or achieve profitability. |
Operating Segment | Operating Segment The Company operates and manages its business as one reportable and operating segment, which is the business of designing and developing a pipeline of novel oral biologic product candidates to treat autoimmune, inflammatory, metabolic, and other diseases. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for allocating and evaluating financial performance. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are held in accounts at financial institutions. Such deposits have and will continue to exceed federally insured limits in the foreseeable future. The Company considers all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash equivalents consist of amounts invested in money market funds exclusively composed of U.S. government obligations. |
Restricted Cash | Restricted Cash The Company has cash in two collateral accounts related to letters of credit issued on behalf of the Company for the security deposits on the leased and subleased properties in South San Francisco. As of March 31, 2021, the collateralized cash in connection with the letter of credit was classified as restricted cash on the condensed balance sheet based on the terms of the agreements. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed statements of cash flows (in thousands): March 31, March 31, 2021 2020 Cash and cash equivalents $ 26,202 $ 5,967 Restricted cash 1,025 108 Total cash, cash equivalents and restricted cash $ 27,227 $ 6,075 |
Investments | Investments The Company’s investments have been classified and accounted for as available-for-sale securities. Fixed income securities consist of U.S. Treasury securities. The specific identification method is used to determine the cost basis of fixed income securities sold. These securities are recorded on the condensed balance sheets at fair value. Unrealized gains and losses on these securities are included as a separate component of accumulated other comprehensive income or loss. The cost of investment securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in other income or expense, net. The Company classifies its investments as short or long term primarily based on the remaining contractual maturity of the securities. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are presented at cost, net of accumulated depreciation. Depreciation is recorded using the straight-line method. Depreciation begins at the time the asset is placed in service. Maintenance and repairs are charged to expense as incurred and costs of major replacement or improvement are capitalized. The Company’s estimated useful lives of its property and equipment are as follows: Laboratory and manufacturing equipment 5 years Computer and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the carrying amount of its long-lived assets whenever events or changes in circumstances indicate that the assets may not be recoverable. An impairment loss is recognized when the remaining book value of an asset is not recoverable. There was no impairment on long-lived assets during the three months ended March 31, 2021 and March 31, 2020. |
Leases | Leases In February 2016, the Financial Accounting Standards Board (FASB) issued a new standard that requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. The Company adopted the new standard on January 1, 2021 using the modified retrospective approach. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the condensed statements of operations and comprehensive loss. At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on the facts and circumstances present in that arrangement. Lease classification, recognition, and measurement are then determined at the lease commencement date. For arrangements that contain a lease, the Company (i) identifies lease and non-lease components, (ii) determines the consideration in the contract, (iii) determines whether the lease is an operating or finance lease; and (iv) recognizes lease ROU assets and liabilities. Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable and as such, the Company uses the incremental borrowing rate based on the information available at the lease commencement date, which represents an internally developed rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment. Most leases include options to renew and, or terminate the lease, which can impact the lease term. The exercise of these options is at the Company’s discretion. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company has operating leases for its corporate offices, laboratory and warehouse facilities, and a contract research organization (CRO) embedded lease arrangement. Fixed lease payments on operating leases are recognized over the expected term of the lease on a straight-line basis. Variable lease expenses that are not considered fixed are recognized as incurred. Fixed and variable lease expense on operating leases is recognized within operating expenses within our condensed statements of operations and comprehensive loss. The Company has finance leases for lab equipment. Fixed payments on finance leases are recognized using the effective interest method. Finance lease ROU asset amortization and interest expense are recorded within operating expenses and interest income, net, respectively, within our condensed statements of operations and comprehensive loss. The Company has elected the short-term lease exemption and, therefore, does not recognize an ROU asset or corresponding liability for lease arrangements with an original term of 12 months or less. |
Research and Development Expenses | Research and Development Expenses Research and development expenses are expensed as incurred. Research and development expenses include personnel costs related to research and development activities, materials costs, external clinical drug product manufacturing and clinical trial costs, outside services costs, repair, maintenance and depreciation costs for research and development equipment, as well as facility costs for laboratory space used for research and development activities. |
Accrued Research and Development Expenses | Accrued Research and Development Expenses The Company records accruals for estimated costs of research, preclinical studies, clinical trials, manufacturing and development, within accrued expenses which are significant components of research and development expenses. A substantial portion of the Company’s ongoing research and development activities is conducted by third-party service providers, CROs and contract development and manufacturing organizations (CDMOs). The Company’s contracts with the CROs and CDMOs generally include fees such as clinical trial fees, initiation fees, reservation fees, costs related to animal studies and safety tests, verification run costs, materials and reagents expenses, taxes, etc. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company accrues the costs incurred under agreements with these third parties based on estimates of actual work completed in accordance with the respective agreements. The Company determines the estimated costs through discussions with internal personnel and external service providers as to the progress, stage of completion or actual timeline (start-date and end-date) of the services and the agreed-upon fees to be paid for such services. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company adjusts accrued expenses or prepaid expenses accordingly, which impact research and development expenses. Although the Company does not expect its estimates to be materially different from amounts actually incurred, the Company’s understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period. To date, there have not been any material adjustments to the Company’s prior estimates of research and development expenses. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company maintains both an equity incentive plan and an employee stock purchase plan (ESPP) as long-term incentives for its employees, consultants, and directors. The equity incentive plan allows for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock grants, and restricted stock units. The ESPP has an offering period of two years comprised of four purchase periods. The ESPP allows employees to purchase shares of the Company’s common stock each purchase period based on a percentage of their compensation subject to certain limits. As of March 31, 2021, no stock appreciation rights, restricted stock grants, restricted stock units or performance-based awards were issued. The Company accounts for stock-based compensation expense by measuring and recognizing compensation expense for all share-based payments made to employees and non-employees based on estimated grant-date fair values. The grant-date fair values for options are recorded as stock-based compensation expense on a straight-line basis over each recipient’s requisite service period, which is generally the vesting period. The grant-date fair values for the ESPP are recorded as stock-based compensation expense on a straight-line basis over the applicable purchase period. The Company recognizes actual forfeitures by reducing the stock-based compensation expense in the same period as that forfeitures occur. The Company estimates the fair value of stock options granted to employees and non-employees using the Black-Scholes model. The Company estimates the fair value of ESPP for each purchase period at the beginning of the offering period using the Black-Scholes model. The Black-Scholes model requires the input of assumptions, including expected volatility, expected dividend yield, expected term and the risk-free rate of return. The fair value of ESPP also factors in a discount which is typically 15% of the purchase price as well as a call output and a put output of the Black-Scholes model. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurement establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company determined the fair value of financial assets and liabilities using the fair value hierarchy that describes three levels of inputs that may be used to measure fair value, as follows: ▪ Level 1—Quoted prices in active markets for identical assets and liabilities; ▪ Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and ▪ Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of March 31, 2021 and December 31, 2020, fair value measurements consisted mainly of cash equivalents and investments. The carrying amounts of these instruments approximate their fair value. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss and other comprehensive (loss) income for the period. Other comprehensive (loss) income represents unrealized (loss) or gain on investments. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs, consisting of legal, accounting and filing fees, are capitalized and subsequently offset against offering proceeds. During the three months ended March 31, 2021, $0.7 million of deferred offering costs were incurred in connection with the Company’s follow-on offering which is described in Note 10. |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an emerging growth company (EGC) as defined in the Jumpstart Our Business Startups Act of 2012 (JOBS Act) and may take advantage of reduced reporting requirements that are otherwise applicable to public companies. Section 107 of the JOBS Act exempts EGCs from being required to comply with new or revised financial accounting standards until private companies are required to comply with those standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards. |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded if and when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recent Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) The Company adopted the new standard on January 1, 2021 using the modified retrospective approach. The Company has elected to apply the transition method that allows companies to continue applying the guidance under the lease standard in effect at that time in the comparative periods presented in the condensed financial statements and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit on the date of adoption. The Company has elected to combine lease components (for example fixed rent payments) with non-lease components (for example, common-area maintenance costs) on our facility, lab equipment and CRO embedded lease asset classes. The Company also elected the “package of practical expedients”, which permits the Company not to reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. Lastly, the Company elected a practical expedient to use hindsight in determining the lease term for all its leases. Results for reporting period beginning after January 1, 2021 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period. Upon adoption of the new lease standard, on January 1, 2021, the Company capitalized operating lease ROU assets of $6.0 million, with opening adjustments of $0.5 million related to deferred rent existing at transition, and $6.5 million of operating lease liabilities, within our condensed balance sheets upon adoption. There was no impact to the finance lease ROU asset and the finance lease liabilities upon adoption. Also, for both operating and finance leases, there was no impact to the accumulated deficit upon the adoption of the new standard on January 1, 2021. In October 2020, the FASB issued ASU 2020-10, Codification Improvements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed statements of cash flows (in thousands): March 31, March 31, 2021 2020 Cash and cash equivalents $ 26,202 $ 5,967 Restricted cash 1,025 108 Total cash, cash equivalents and restricted cash $ 27,227 $ 6,075 |
Schedule of Estimated Useful Lives of Property, Plant and Equipment, Net | The Company’s estimated useful lives of its property and equipment are as follows: Laboratory and manufacturing equipment 5 years Computer and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2021 2020 Laboratory and manufacturing equipment $ 8,176 $ 8,022 Leasehold improvements 2,598 2,550 Computer and office equipment 201 201 Construction in progress 92 162 Capital leases — 959 Total property and equipment, gross 11,067 11,894 Accumulated depreciation (4,068 ) (3,447 ) Total property and equipment, net $ 6,999 $ 8,447 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2021 Fair Value Gross Gross Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations (1) Level 1 $ 25,213 $ — $ — $ 25,213 Short-term investments: U.S. Treasury securities Level 2 82,038 25 — 82,063 Total $ 107,251 $ 25 $ — $ 107,276 (1) Included in cash and cash equivalents on the condensed balance sheet December 31, 2020 Fair Value Gross Gross Hierarchy Level Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Money market funds invested in U.S. government obligations (1) Level 1 $ 4,844 $ — $ — $ 4,844 Short-term and long-term investments: U.S. Treasury securities Level 2 123,998 28 — 124,026 Total $ 128,842 $ 28 $ — $ 128,870 (1) Included in cash and cash equivalents on the condensed balance sheet |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment, Net | The Company’s estimated useful lives of its property and equipment are as follows: Laboratory and manufacturing equipment 5 years Computer and office equipment 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2021 2020 Laboratory and manufacturing equipment $ 8,176 $ 8,022 Leasehold improvements 2,598 2,550 Computer and office equipment 201 201 Construction in progress 92 162 Capital leases — 959 Total property and equipment, gross 11,067 11,894 Accumulated depreciation (4,068 ) (3,447 ) Total property and equipment, net $ 6,999 $ 8,447 |
Schedule of Right-of-Use Assets, Net | Right-of-use assets, net consisted of the following as of March 31, 2021 (in thousands): Operating Leases Finance Leases Total Right-of-use assets $ 6,013 $ 959 $ 6,972 Accumulated amortization (563 ) (163 ) (726 ) Right-of-use assets, net $ 5,450 $ 796 $ 6,246 |
Schedule of Accrued Liabilities | Accrued expenses consisted of the following (in thousands): March 31, December 31, 2021 2020 Research and development expenses $ 2,213 $ 1,303 Compensation expenses 1,037 2,389 Professional services 687 241 Other 109 115 Property and equipment 48 125 Total accrued expenses $ 4,094 $ 4,173 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Expense | The following table summarizes total lease expense during the three months ended March 31, 2021 (in thousands): Condensed Statements of Operations and Comprehensive Loss Classification Three Months Ended March 31, 2021 Operating lease expense Operating expenses $ 597 Finance lease expense: Amortization of right-of-use assets Operating expenses 48 Interest on lease liabilities Interest income, net 9 Variable lease expense Operating expenses 204 Short-term lease expense Operating expenses 8 Total lease expense $ 866 |
Summary of Supplemental Cash Flow Information | The following table summarizes supplemental cash flow information during the three months ended March 31, 2021 (in thousands): Three Months Ended March 31, 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 608 Operating cash flows from finance leases 9 Financing cash flows from finance leases 57 |
Schedule of Future Minimum Payments under Noncancelable Leases | The following table summarizes maturities of lease liabilities and the reconciliation of lease liabilities as of March 31, 2021 (in thousands): Operating Leases Finance Leases Total 2021 (remaining nine months) $ 1,861 $ 197 $ 2,058 2022 1,864 255 2,119 2023 1,457 171 1,628 2024 1,000 — 1,000 Total undiscounted lease liabilities 6,182 623 6,805 Less: Interest (216 ) (44 ) (260 ) Total discounted lease liabilities 5,966 579 6,545 Less: Lease liabilities, current (2,377 ) (235 ) (2,612 ) Lease liabilities, non-current $ 3,589 $ 344 $ 3,933 |
Summary of Lease Terms and Discount Rates | The following table summarizes lease terms and discount rates as of March 31, 2021: Operating Leases Finance Leases Weighted-average remaining lease term (years) 2.9 2.3 Weighted-average discount rate 2.31 % 5.95 % |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance, on an as converted basis, consisted of the following: March 31, December 31, 2021 2020 Stock options, issued and outstanding 4,341,535 3,506,599 Stock options, authorized for future issuance 4,161,088 3,369,246 ESPP, available for future grants 665,220 314,006 Total 9,167,843 7,189,851 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following summarizes stock option activity: Options Outstanding Shares Available for Grant Total Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 3,369,246 3,506,599 $ 6.27 8.8 $ 85,975 Additions 1,756,068 — — Granted (1,079,400 ) 1,079,400 53.80 Exercised — (129,290 ) 3.07 Cancelled 115,174 (115,174 ) 6.18 Outstanding as of March 31, 2021 4,161,088 4,341,535 $ 18.19 8.5 $ 124,490 Exercisable as of March 31, 2021 — 1,182,872 $ 3.47 7.6 $ 47,950 |
Schedule of Weighted-Average Assumptions Used for Estimating Fair Value of Employee Stock Purchase Plan | The Company began recording stock-based compensation expense for its ESPP on January 1, 2021. During the three months ended March 31, 2021, the Company recorded $0.1 million stock-based compensation expense related to the ESPP. The fair value of stock-based compensation expense applicable to the ESPP was estimated using the following weighted-average assumptions: Three Months Ended March 31, 2021 Expected term in years 0.4 Expected volatility 52.35% Risk-free interest rate 0.09% Expected dividend yield — |
Summary of Components of Stock-Based Compensation Expense | The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations and comprehensive loss during the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 1,100 $ 328 General and administrative 851 229 Total stock-based compensation expense $ 1,951 $ 557 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the basic and diluted net loss per share (in thousands except share and per share data): Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (20,462 ) $ (15,311 ) Denominator: Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share 35,217,773 7,417,440 Net loss per share, basic and diluted $ (0.58 ) $ (2.06 ) |
Summary of Potentially Dilutive Securities | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: March 31, 2021 2020 Total stock options outstanding 4,341,535 4,043,507 Series A convertible preferred stock (as converted to common stock) — 5,157,213 Series B convertible preferred stock (as converted to common stock) — 3,992,919 Series C convertible preferred stock (as converted to common stock) — 4,816,160 Total 4,341,535 18,009,799 |
Business and Principal Activi_2
Business and Principal Activities - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2021 | Jun. 09, 2020 | Dec. 31, 2019 | Mar. 31, 2021 | Dec. 31, 2020 |
Business And Principal Activities [Line Items] | |||||
Accumulated deficit | $ 159,820 | $ 139,358 | |||
Initial Public Offering | Common Stock | |||||
Business And Principal Activities [Line Items] | |||||
Share issued | 12,650,000 | ||||
Share price | $ 14 | ||||
Share issued with exercise by underwriters | 1,650,000 | ||||
Conversion of convertible preferred stock into common stock, shares | 13,966,292 | ||||
Aggregate offering price for shares sold | $ 177,100 | ||||
Underwriting discounts and commissions | 12,400 | ||||
Offering costs paid or payable | 4,100 | $ 200 | |||
Net proceeds from offering | $ 160,600 | ||||
Follow-on Offering | Subsequent Event | |||||
Business And Principal Activities [Line Items] | |||||
Transaction date | Apr. 6, 2021 | ||||
Follow-on Offering | Common Stock | Subsequent Event | |||||
Business And Principal Activities [Line Items] | |||||
Share issued | 2,875,000 | ||||
Share price | $ 42 | ||||
Share issued with exercise by underwriters | 375,000 | ||||
Aggregate offering price for shares sold | $ 120,800 | ||||
Underwriting discounts and commissions | $ 7,200 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | |||
Mar. 31, 2021USD ($)Segmentshares | Mar. 31, 2020USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of reportable segment | Segment | 1 | |||
Number of operating segment | Segment | 1 | |||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Number of shares issued under share based compensation | shares | 0 | |||
Deferred offering costs | $ 659,000 | |||
Operating lease right-of-use assets | 5,450,000 | |||
Lease liabilities | 5,966,000 | |||
Finance lease right-of-use assets, net | 796,000 | |||
Finance lease liabilities | 579,000 | |||
Accumulated deficit | $ (159,820,000) | $ (139,358,000) | ||
ASU 2016-02 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle accounting standards update adopted | true | |||
Change in accounting principle accounting standards update adoption date | Jan. 1, 2021 | |||
Change in accounting principle accounting standards update immaterial effect | true | |||
Operating lease right-of-use assets | $ 6,000,000 | |||
Deferred rent | 500,000 | |||
Lease liabilities | 6,500,000 | |||
Finance lease right-of-use assets, net | 0 | |||
Finance lease liabilities | 0 | |||
ASU 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accumulated deficit | $ 0 | |||
ASU 2020-10 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle accounting standards update adopted | true | |||
Change in accounting principle accounting standards update adoption date | Jan. 1, 2021 | |||
Change in accounting principle accounting standards update immaterial effect | true | |||
Employee Stock Purchase Plan, Available for Future Grants | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Discount rate | 15.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 26,202 | $ 5,843 | $ 5,967 |
Restricted cash | 1,025 | $ 108 | 108 |
Total cash, cash equivalents and restricted cash | $ 27,227 | $ 6,075 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Laboratory and Manufacturing Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 years |
Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of property and equipment | Shorter of remaining lease term or estimated useful life |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - U.S. Treasury Securities | Mar. 31, 2021USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Investment securities | $ 82,100,000 |
Allowance for credit losses | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 107,251 | $ 128,842 |
Gross Unrealized Gains | 25 | 28 |
Fair Value | 107,276 | 128,870 |
Level 1 | Money Market Funds Invested in U.S. Government Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 25,213 | 4,844 |
Fair Value | 25,213 | 4,844 |
Level 2 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 82,038 | 123,998 |
Gross Unrealized Gains | 25 | 28 |
Fair Value | $ 82,063 | $ 124,026 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 11,067 | $ 11,894 |
Accumulated depreciation | (4,068) | (3,447) |
Total property and equipment, net | 6,999 | 8,447 |
Laboratory and Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 8,176 | 8,022 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 2,598 | 2,550 |
Computer and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 201 | 201 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 92 | 162 |
Capital Leases | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 959 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation expense | $ 0.7 | $ 0.2 | |
Accumulated depreciation on capital lease assets | $ 0.1 | ||
Lease expense from operating lease right-of-use assets | $ 0.6 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Right-of-Use Assets, Net (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
Operating Leases, Right-of-use assets | $ 6,013 |
Operating Leases, Accumulated amortization | (563) |
Operating Leases, Right-of-use assets, net | 5,450 |
Finance Leases, Right-of-use assets | 959 |
Finance Leases, Accumulated amortization | (163) |
Finance Leases, Right-of-use assets, net | 796 |
Right-of-use assets | 6,972 |
Accumulated amortization | (726) |
Right-of-use assets, net | $ 6,246 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Research and development expenses | $ 2,213 | $ 1,303 |
Compensation expenses | 1,037 | 2,389 |
Professional services | 687 | 241 |
Other | 109 | 115 |
Property and equipment | 48 | 125 |
Total accrued expenses | $ 4,094 | $ 4,173 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021 | Sep. 30, 2020 | Oct. 31, 2019 | Dec. 31, 2016 | Mar. 31, 2021 | Mar. 31, 2020USD ($) | Dec. 31, 2019Lease | |
Lessee Lease Description [Line Items] | |||||||
Operating lease expiration period | 2024-08 | ||||||
Sublease, expiration period | 2022-05 | ||||||
Sublease, renewal term | 5 years | ||||||
Sublease expiration period including possible renewal options | 2027-05 | ||||||
Number of finance lease agreements for laboratory equipment | Lease | 3 | ||||||
Rent expense | $ | $ 0.5 | ||||||
Warehouse Space | |||||||
Lessee Lease Description [Line Items] | |||||||
Operating lease expiration period | 2021-09 | ||||||
Operating lease term, option to extend | two six-month renewal options through September 2022 | ||||||
Operating lease, existence of option to extend | true | ||||||
Operating lease expiration period including possible renewal options | 2022-09 | ||||||
Lessee, operating lease, description | In September 2020, the Company entered into a lease agreement for warehouse space in South San Francisco, California. The lease term expires in September 2021. Under the lease agreement, the Company has two six-month renewal options through September 2022. | ||||||
Laboratory, Manufacturing, Warehouse and Office Space | |||||||
Lessee Lease Description [Line Items] | |||||||
Operating lease term, option to extend | optional two five-year extensions | ||||||
Operating lease, existence of option to extend | true | ||||||
Lessee, operating lease, description | In February 2021, the Company entered into a lease agreement for laboratory, manufacturing, warehouse and office space in South San Francisco, California. The lease term is estimated to commence in October 2021. The initial lease term is eight years from the commencement date and includes optional two five-year extensions. As of March 31, 2021, the Company does not yet have control of the underlying asset. | ||||||
Initial lease term | 8 years | ||||||
Lease Agreement | |||||||
Lessee Lease Description [Line Items] | |||||||
Operating lease term, option to extend | two three-year renewal options through August 2030 | ||||||
Operating lease, existence of option to extend | true | ||||||
Operating lease expiration period including possible renewal options | 2030-08 | ||||||
Lessee, operating lease, description | In December 2016, the Company entered into an operating lease agreement for its principal office in South San Francisco, California. The lease term expires in August 2024. Under the lease agreement, the Company has two three-year renewal options through August 2030. |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 597 |
Finance lease expense: | |
Amortization of right-of-use assets | 48 |
Interest on lease liabilities | 9 |
Variable lease expense | 204 |
Short-term lease expense | 8 |
Total lease expense | $ 866 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in measurement of liabilities: | ||
Operating cash flows from operating leases | $ 608 | |
Operating cash flows from finance leases | 9 | |
Financing cash flows from finance leases | $ 57 | $ 0 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments under Noncancelable Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Operating Leases | |
2021 (remaining nine months) | $ 1,861 |
2022 | 1,864 |
2023 | 1,457 |
2024 | 1,000 |
Total undiscounted lease liabilities | 6,182 |
Less: Interest | (216) |
Total discounted lease liabilities | 5,966 |
Less: Lease liabilities, current | (2,377) |
Lease liabilities, non-current | 3,589 |
Finance Leases | |
2021 (remaining nine months) | 197 |
2022 | 255 |
2023 | 171 |
Total undiscounted lease liabilities | 623 |
Less: Interest | (44) |
Total discounted lease liabilities | 579 |
Less: Lease liabilities, current | (235) |
Lease liabilities, non-current | 344 |
Total | |
2021 (remaining nine months) | 2,058 |
2022 | 2,119 |
2023 | 1,628 |
2024 | 1,000 |
Total undiscounted lease liabilities | 6,805 |
Less: Interest | (260) |
Total discounted lease liabilities | 6,545 |
Less: Lease liabilities, current | (2,612) |
Lease liabilities, non-current | $ 3,933 |
Leases - Summary of Lease Terms
Leases - Summary of Lease Terms and Discount Rates (Details) | Mar. 31, 2021 |
Leases [Abstract] | |
Operating Leases, Weighted-average remaining lease term (years) | 2 years 10 months 24 days |
Operating Leases, Weighted-average discount rate | 2.31% |
Finance Leases, Weighted-average remaining lease term (years) | 2 years 3 months 18 days |
Finance Leases, Weighted-average discount rate | 5.95% |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)Vote$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Stockholders Equity Note [Abstract] | ||
Common stock, shares authorized | shares | 450,000,000 | 450,000,000 |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock, voting rights | The holder of each share of common stock is entitled to one vote. | |
Number of voting rights for each common stock held | Vote | 1 | |
Common stock, dividends declared | $ | $ 0 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 9,167,843 | 7,189,851 |
Stock Options, Issued and Outstanding | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 4,341,535 | 3,506,599 |
Stock Options, Authorized for Future Issuance | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 4,161,088 | 3,369,246 |
Employee Stock Purchase Plan, Available for Future Grants | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance | 665,220 | 314,006 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares available for issuance | 4,161,088 | 3,369,246 | |
Weighted-average grant-date fair value of the options granted | $ 34.92 | ||
Intrinsic value of options exercised | $ 4,700 | ||
Total unrecognized stock-based compensation expense related to options granted but not yet amortized | $ 48,300 | ||
Total unrecognized stock-based compensation expense related to options weighted average period of recognition | 3 years | ||
Stock-based compensation expense | $ 1,951 | $ 557 | |
Employee Stock Purchase Plan, Available for Future Grants | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Increase in number of shares | 351,214 | ||
Outstanding stock percent | 1.00% | 1.00% | |
Shares available for issuance | 665,220 | ||
Purchase price of common stock percent | 85.00% | ||
Equity incentive plan term | Under the Company’s 2020 Employee Stock Purchase Plan (the 2020 ESPP), employees can purchase shares of the Company’s common stock each purchase period based on a percentage of their compensation, subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of the Company’s common stock on the enrollment date or the purchase date. The 2020 ESPP offers a six-month look-back feature as well as an automatic rollover feature that provides for the offering period to be reset to a new lower-priced offering price if the market price of the stock at the purchase date is lower than the stock price at the initial enrollment date. In that case, the offering period is immediately cancelled after that purchase date, and a new two-year offering period is established using the then-current stock price as the base purchase price. | ||
Stock-based compensation expense | $ 100 | ||
Minimum | Employee Stock Purchase Plan, Available for Future Grants | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Increase in number of shares | 628,012 | ||
2020 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Increase in number of shares | 1,756,068 | ||
Outstanding stock percent | 5.00% | 5.00% | |
Shares available for issuance | 4,161,088 | ||
Vesting period | 4 years | ||
2020 Plan | 10% Stockholder | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of voting power | 10.00% | ||
2020 Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Increase in number of shares | 3,140,062 | ||
Purchase price of common stock percent | 100.00% | ||
Percentage of exercise price of stock option on estimated fair value of shares | 110.00% | ||
2020 Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Term of options | 10 years |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options Outstanding, Shares Available for Grant, Beginning Balance | 3,369,246 | |
Options Outstanding, Shares Available for Grant, Additions | 1,756,068 | |
Options Outstanding, Shares Available for Grant, Granted | (1,079,400) | |
Options Outstanding, Shares Available for Grant, Cancelled | 115,174 | |
Options Outstanding, Shares Available for Grant, Ending Balance | 4,161,088 | 3,369,246 |
Options Outstanding, Total Options Outstanding, Beginning Balance | 3,506,599 | |
Options Outstanding, Total Options Outstanding, Granted | 1,079,400 | |
Options Outstanding, Total Options Outstanding, Exercised | (129,290) | |
Options Outstanding, Total Options Outstanding, Cancelled | (115,174) | |
Options Outstanding, Total Options Outstanding, Ending Balance | 4,341,535 | 3,506,599 |
Options Outstanding, Total Options Outstanding, Exercisable as of March 31, 2021 | 1,182,872 | |
Options Outstanding, Weighted-Average Exercise Price, Beginning Balance | $ 6.27 | |
Options Outstanding, Weighted-Average Exercise Price, Granted | 53.80 | |
Options Outstanding, Weighted-Average Exercise Price, Exercised | 3.07 | |
Options Outstanding, Weighted-Average Exercise Price, Cancelled | 6.18 | |
Options Outstanding, Weighted-Average Exercise Price, Ending Balance | 18.19 | $ 6.27 |
Options Outstanding, Weighted-Average Exercise Price, Exercisable as of March 31, 2021 | $ 3.47 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 8 years 6 months | 8 years 9 months 18 days |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years), Exercisable | 7 years 7 months 6 days | |
Options Outstanding, Aggregate Intrinsic Value | $ 124,490 | $ 85,975 |
Options Outstanding, Aggregate Intrinsic Value, Exercisable | $ 47,950 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Schedule of Weighted-Average Assumptions Used for Estimating Fair Value of Employee Stock Purchase Plan (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expected term in years | 4 months 24 days |
Expected volatility | 52.35% |
Risk-free interest rate | 0.09% |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense - Summary of Components of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 1,951 | $ 557 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 1,100 | 328 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 851 | $ 229 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (20,462) | $ (15,311) |
Denominator: | ||
Weighted-average shares of common stock outstanding used in the calculation of basic and diluted net loss per share | 35,217,773 | 7,417,440 |
Net loss per share, basic and diluted | $ (0.58) | $ (2.06) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Potentially Dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of net loss per share | 4,341,535 | 18,009,799 |
Total Stock Options Outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of net loss per share | 4,341,535 | 4,043,507 |
Series A Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of net loss per share | 5,157,213 | |
Series B Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of net loss per share | 3,992,919 | |
Series C Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of net loss per share | 4,816,160 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | ||
Deferred offering costs | $ 1,695 | |
Subsequent Event | Common Stock | Follow-on Offering | ||
Subsequent Event [Line Items] | ||
Share issued | 2,875,000 | |
Share issued with exercise by underwriters | 375,000 | |
Share price | $ 42 | |
Aggregate gross proceeds from offering | $ 120,800 | |
Underwriting discounts and commissions | 7,200 | |
Deferred offering costs | 700 | |
Net proceeds from offering | $ 112,900 |