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 | |
Entity Registrant Name | Longboard Pharmaceuticals, Inc. | |
Entity Central Index Key | 0001832168 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-40192 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-5009619 | |
Entity Address, Address Line One | 6154 Nancy Ridge Drive | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 619 | |
Local Phone Number | 592-9775 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LBPH | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 17,215,350 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Balance Sheets (unaud
Condensed Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 120,851 | $ 55,316 |
Prepaid expenses and other current assets | 2,779 | 46 |
Total current assets | 123,630 | 55,362 |
Deferred financing costs | 0 | 876 |
Total assets | 123,630 | 56,238 |
Current liabilities: | ||
Accounts payable | 2,019 | 1,213 |
Accrued research and development expenses | 1,051 | 916 |
Accrued other expenses | 699 | 845 |
Accrued compensation and related expenses | 275 | 161 |
Total current liabilities | 4,044 | 3,135 |
Commitments and contingencies (see Note 8) | ||
Stockholders’ equity (deficit): | ||
Preferred stock, value | ||
Common stock, value | 1 | |
Additional paid-in-capital | 139,684 | 11,708 |
Accumulated deficit | (20,099) | (14,400) |
Total stockholder’s equity (deficit) | 119,586 | (2,692) |
Total liabilities, convertible preferred stock and shareholders’ equity (deficit) | 123,630 | 56,238 |
Series A Convertible Preferred Stock [Member] | ||
Convertible preferred stock: | ||
Temporary equity, value | 55,795 | |
Non-Voting Common Stock [Member] | ||
Stockholders’ equity (deficit): | ||
Common stock, value |
Condensed Balance Sheets (una_2
Condensed Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 10,500,000 |
Common stock, shares issued | 12,939,140 | 3,840,540 |
Common stock, shares outstanding | 12,939,140 | 3,840,540 |
Common stock, subject to repurchase | 348,450 | 348,450 |
Series A Convertible Preferred Stock [Member] | ||
Temporary equity, par value | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 0 | 5,600,000 |
Temporary equity, shares issued | 0 | 5,600,000 |
Temporary equity, Balance (in shares) | 0 | 5,600,000 |
Temporary equity, liquidation preference, value | $ 0 | $ 56,000 |
Non-Voting Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000,000 | 0 |
Common stock, shares issued | 3,629,400 | 0 |
Common stock, shares outstanding | 3,629,400 | 0 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating expenses: | ||
Research and development expenses | $ 4,398 | $ 59 |
General and administrative expenses | 1,305 | 115 |
Total operating expenses | 5,703 | 174 |
Loss from operations | (5,703) | (174) |
Interest income | 4 | |
Net loss and comprehensive loss | $ (5,699) | $ (174) |
Net loss per share, basic and diluted | $ (0.84) | $ (0.05) |
Weighted-average shares outstanding, basic and diluted | 6,810,407 | 3,711,084 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (5,699) | $ (174) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 333 | 95 | |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (2,733) | (1) | |
Accounts payable | 275 | ||
Accrued research and development expenses | 135 | 27 | |
Accrued other expenses | (172) | 5 | |
Accrued compensation and related expenses | 115 | $ 9 | |
Net cash used in operating activities | (7,746) | (39) | |
Financing activities: | |||
Capital contributions from Arena Pharmaceuticals, Inc. | 39 | ||
Series A convertible preferred stock issuance costs | (1) | ||
Proceeds from initial public offering | 80,000 | ||
Initial public offering costs | (6,718) | ||
Net cash provided by financing activities | 73,281 | 39 | |
Net increase in cash and cash equivalents | 65,535 | ||
Cash and cash equivalents at the beginning of the period | 55,316 | ||
Cash and cash equivalents at the end of the period | 120,851 | ||
Supplemental disclosure of cash flow information: | |||
Initial public offering costs in accounts payable | 531 | ||
Initial public offering costs in accrued other expenses | $ 664 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Description of Business Longboard Pharmaceuticals, Inc. (the "Company"), formerly Arena Neuroscience, Inc., was incorporated in the state of Delaware on January 3, 2020 and is based in San Diego, California. The Company was organized and initially wholly-owned by Arena Pharmaceuticals, Inc. ("Arena"), until the closing of its Series A convertible preferred stock ("Series A Preferred Stock") financing in October 2020. The Company is a clinical stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. The Company’s most advanced product candidate, LP352, is being developed to treat patients with developmental and epileptic encephalopathies and is currently in a Phase 1 clinical trial. The Company’s preclinical product candidates include LP143 and LP659, which are focused on developing therapies for central nervous system neuroinflammatory diseases. Initial Public Offering On March 16, 2021, the Company completed the initial public offering (“IPO”) of its common stock. In connection with the IPO, the Company issued and sold 5,298,360 shares of common stock, which included 298,360 shares of its common stock issued pursuant to the option granted to the underwriters to purchase additional shares in April 2021, at a public offering price of $ 16.00 per share. The Company raised $ 76.2 million in net proceeds from the IPO after deducting underwriters’ discounts and commissions of $ 5.9 million and issuance costs of $ 2.6 million. The net proceeds from the Company’s IPO included $ 1.2 million in unpaid issuance costs classified in accounts payable and accrued liabilities as of March 31, 2021. Immediately prior to the closing of the IPO, 2,630,000 shares of Series A Preferred Stock were exchanged for 3,629,400 shares of non-voting common stock and 2,970,000 shares were automatically converted into 4,098,600 shares of voting common stock. Following the IPO, there were no shares of Series A Preferred Stock outstanding. Forward Stock Splits On October 27, 2020, the Company filed an amendment to the Company’s certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 2,783 -for-1 basis (October Forward Stock Split). The par value of the common stock was not adjusted as a result of the October Forward Stock Split. The accompanying financial statements and notes to the financial statements give retroactive effect to the October Forward Stock Split for the periods presented. On March 5, 2021, the Company filed an amendment to the Company’s amended and restated certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 1.38 -for-1 basis (March Forward Stock Split). Adjustments corresponding to the March Forward Stock Split were made to the ratio at which the Company’s Series A Preferred Stock were converted into common stock immediately prior to the closing of the IPO. The par value of the common stock and number of shares authorized were not adjusted as a result of the March Forward Stock Split. All references to common stock, options to purchase common stock, share data, per share data, and related information contained in the financial statements and related footnotes have been retrospectively adjusted to reflect the effect of the March Forward Stock Split for all periods presented. Basis of Presentation The Company’s condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed financial statements and related notes are unaudited. The unaudited condensed financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The condensed balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date but does not include all information and notes required by GAAP for complete financial statements. The operating results presented in these unaudited condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These condensed financial statements should be read in conjunction with the Company's audited financial statements included in the prospectus dated March 11, 2021 that forms a part of the Company’s registration statement on Form S-1 (File No. 333-253329) as filed with the SEC pursuant to Rule 424(b)(4) promulgated under the Securities Act of 1933, as amended, on March 12, 2021. In addition, the accompanying condensed financial statements include the financial results from inception (January 3, 2020) through March 31, 2021. The Company’s fiscal year-end is December 31. The Company concluded under the guidance in Accounting Standards Codification 805, Business Combinations that the Company was not required to present historical carve-out financial results for activity occurring at Arena prior to the Company’s formation as the assets licensed to the Company by Arena did not constitute a business. The financial statements include allocations for certain Arena corporate expenses, including costs of information technology, human resources, accounting, legal, facilities, insurance, treasury and other corporate and infrastructure services. These allocations were made on the basis of the actual hours incurred in providing services to the Company by employees of Arena multiplied by a fully burdened average cost per employee. Management believes such allocation of corporate expenses from Arena is reasonable. Effective October 27, 2020, the Company entered into a formal services agreement with Arena for these services (see Note 6). The financial statements may not include all of the expenses that would have been incurred had the Company been a stand-alone company during the period presented and may not reflect the Company’s results of operations, financial position and cash flows had the Company been a stand-alone company during the period presented. The Company also received capital contributions of $ 3.2 million from Arena to fund start-up activities throughout the period ended December 31, 2020. The capital contributions from Arena have been presented in additional paid-in capital on the balance sheet. Liquidity and Capital Resources Since its inception, the Company has devoted substantially all of its resources to organizing and staffing, research and development ("R&D") activities, business planning, raising capital, in-licensing intellectual property rights and establishing its intellectual property portfolio, and providing general and administrative ("G&A") support for these operations and has funded its operations primarily with the net proceeds from the issuance of Series A Preferred Stock and common stock. The Company has incurred losses and negative cash flows from operations since commencement of its operations. The Company had an accumulated deficit of $ 20.1 million and $ 14.4 million as of March 31, 2021 and December 31, 2020, respectively. Management expects the Company will incur substantial operating losses for the foreseeable future in order to complete preclinical studies and clinical trials, seek regulatory approval, and launch and commercialize any product candidates for which it receives regulatory approval. The Company will need to raise additional capital through public or private equity or debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. The COVID-19 pandemic continues to rapidly evolve and has already resulted in a significant disruption of global financial markets. The Company’s ability to raise additional capital may be adversely impacted by potential worsening of global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from the pandemic. If the disruption persists and deepens, the Company could experience an inability to access additional capital. As of March 31, 2021, the Company had available cash and cash equivalents of $ 120.9 million and working capital of $ 119.6 million to fund future operations. Management believes that its capital resources as of March 31, 2021 will be sufficient to fund the Company’s operations for at least 12 months after the date these unaudited condensed financial statements are issued. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of Estimates The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of the Company’s financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Such estimates include the accrual of R&D expenses and stock-based compensation. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions. Concentration of Credit Risk Financial instruments which potentially subject the Company to significant concentration of credit risk consist solely of cash. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Deferred Financing Costs Prior to the completion of the IPO, the Company had deferred financing costs consisting of legal, accounting and other fees and costs directly attributable to the IPO. As of December 31, 2020, $ 0.9 million of deferred financing costs were recorded on the balance sheet. Upon the completion of the IPO, all deferred financing costs were reclassified to additional paid-in capital. Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on investments and foreign currency gains and losses. Net loss and comprehensive loss were the same for the periods presented. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, money market funds, corporate debt securities, and obligations of U.S. Government-sponsored enterprises. The carrying amounts reported in the unaudited condensed balance sheets for cash and cash equivalents are valued at cost, which approximates fair value. R&D Expenses R&D expenses are expensed in the periods in which they are incurred. External expenses consist primarily of payments to Arena, outside consultants and contract research organizations in connection with the Company’s discovery, preclinical and clinical activities, process development, manufacturing activities, regulatory and other services. Certain R&D external expenses are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers or the estimate of the level of service that has been performed at each reporting date. R&D expenses amounted to $ 4.4 million and $ 0.1 million for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020, respectively. Stock-Based Compensation In October 2020, the Company’s board of directors and stockholder approved the 2020 Equity Incentive Plan ("2020 Plan"). The Company's board of directors adopted the 2021 Equity Incentive Plan ("2021 Plan") in February 2021 and the Company's stockholders approved the 2021 Plan in March 2021. The 2021 Plan is the successor and continuation of the 2020 Plan. Under both the 2021 and 2020 Plans, awards are measured at fair value and recognized over the requisite service period. Forfeitures are accounted for in the period they occur. The Company estimates the fair value of each stock-based award on the date of grant using the Black-Scholes option pricing model which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected term of the option. From January 3, 2020 through October 26, 2020, Company employees participated in Arena’s stock incentive plan and therefore the Company used Arena’s Black-Scholes fair value, and underlying inputs and assumptions, to recognize stock-based compensation. Stock-based awards were measured at fair value and recognized over the requisite service period. There were no forfeitures. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. As the Company has reported a net loss for the periods presented, diluted net loss per share of common stock is the same as basic net loss per share of common stock for the periods. The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended Period from Options to purchase common stock 1,248,156 — Restricted stock awards, issued but unvested 348,450 — Total 1,596,606 — Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes FASB Accounting Standards Codification Topic 840, Leases (Topic 840), and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method for finance leases or on a straight-line basis over the term of the lease for operating leases. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. For companies that are not emerging growth companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. For emerging growth companies, the ASU was to be effective for fiscal years beginning after December 15, 2019. However, in June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) : Effective Dates for certain Entities, which deferred the effective date of ASU 2016-02 for certain entities. As a result, the ASU is now effective for emerging growth companies for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company plans to adopt the new standard in the first quarter of 2022 using the modified retrospective method, under which the Company applies Topic 842 to existing and new leases as of January 1, 2022, but prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during those periods. The Company is currently evaluating the impact the adoption of these ASUs will have on its financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes (ASU 2019-12). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that, in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company adopted this new standard in the first quarter of 2021 and it did not have a material impact on its financial statements and related disclosures. Risks and Uncertainties In December 2019, COVID-19, a novel strain of coronavirus, was first identified in Wuhan, China. In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the virus has spread to over 100 countries, including the United States. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Potential impacts to the Company’s business include, but are not limited to, temporary closures of facilities of its vendors, disruptions or restrictions on its employees’ ability to travel, disruptions to or delays in ongoing laboratory experiments, preclinical studies, clinical trials, third-party manufacturing supply and other operations, the potential diversion of healthcare resources away from the conduct of clinical trials to focus on pandemic concerns, interruptions or delays in the operations of the U.S. Food and Drug Administration or other regulatory authorities, and the Company’s ability to raise capital and conduct business development activities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). As of March 31, 2021 and December 31, 2020, the Company did no t have financial assets or liabilities that are measured at fair value on a recurring basis. |
Accrued Other Expenses
Accrued Other Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Other Expenses | Note 4. Accrued Other Expenses Accrued other expenses consisted of the following (in thousands): As of As of (unaudited) Accrued financing costs $ 664 $ 639 Accrued consulting fees — 115 Accrued other 35 91 Total $ 699 $ 845 |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity (Deficit) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity (Deficit) | Note 5. Convertible Preferred Stock and Stockholders’ Equity (Deficit) Amended and Restated Certificate of Incorporation In March 2021, the Company amended and restated the Company’s certificate of incorporation to, among other things, increase the authorized shares of voting common stock, non-voting common stock and preferred stock to 300,000,000 shares, 10,000,000 shares and 10,000,000 shares, respectively. Voting Common Stock and Non-Voting Common Stock As of March 31, 2021, the Company had 12,939,140 shares of voting common stock outstanding, excluding 348,450 shares subject to repurchase, and 3,629,400 shares of non-voting common stock outstanding. As of December 31, 2020, the Company had 3,840,540 shares of voting common stock outstanding, excluding 348,450 shares subject to repurchase. 3,840,540 shares were purchased by Arena for aggregate consideration of $ 0.10 in January 2020. Series A Preferred Stock In October 2020, the Company issued and sold 5,600,000 shares of Series A Preferred Stock at a price of $ 10.00 per share, resulting in gross proceeds of $ 56.0 million, including 100,000 shares purchased by Arena. The Company incurred $ 0.2 million in issuance costs related to the Series A Preferred Stock financing. On March 16, 2021, immediately prior to the closing of the IPO, 2,630,000 shares of the Series A Preferred Stock were exchanged for 3,629,400 shares of non-voting common stock. Upon the closing of the IPO, 2,970,000 shares of the Series A Preferred Stock were automatically converted into 4,098,600 shares of voting common stock. Following the IPO, there were no shares of Series A Preferred Stock outstanding. The Series A Preferred Stock had been classified as temporary equity in the accompanying balance sheet as of December 31, 2020, in accordance with authoritative guidance for the classification and measurement of potentially redeemable securities whose redemption is based upon certain change in control events outside of the Company’s control, including liquidation, sale or change of control of the Company. Reconciliation of Changes in Convertible Preferred Stock and Stockholders’ Equity (Deficit) The following tables document the changes in convertible preferred stock and stockholders' equity (deficit) for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020 (unaudited): Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at December 31, 2020 5,600,000 $ 55,795 — $ — 3,840,540 $ — — $ — $ 11,708 $ ( 14,400 ) $ ( 2,692 ) Conversion of convertible preferred stock to common stock in connection with initial public offering ( 5,600,000 ) ( 55,795 ) — — 4,098,600 — 3,629,400 — 55,795 55,795 Issuance of common stock in initial public offering, net — — — — 5,000,000 1 — — 71,848 71,849 Stock-based compensation — — — — — — — — 333 — 333 Net loss — — — — — — — — — ( 5,699 ) ( 5,699 ) Balance at March 31, 2021 — $ — — $ — 12,939,140 $ 1 3,629,400 $ — $ 139,684 $ ( 20,099 ) $ 119,586 Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at January 3, 2020 (Inception) — $ — — $ — — $ — — $ — $ — $ — $ — Purchase of common stock by Arena Pharmaceuticals, Inc. — — — — 3,840,540 — — — — — — Arena Pharmaceuticals, Inc. capital contributions — — — — — — — — 39 — 39 Stock-based compensation — — — — — — — — 95 — 95 Net loss — — — — — — — — — ( 174 ) ( 174 ) Balance at March 31, 2020 — $ — — $ — 3,840,540 $ — - $ — $ 134 $ ( 174 ) $ ( 40 ) |
Agreements with Arena Pharmaceu
Agreements with Arena Pharmaceuticals, Inc. | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Agreements with Arena Pharmaceuticals, Inc. | Note 6. Agreements with Arena Pharmaceuticals, Inc. The Company entered into a license agreement (the "License Agreement"), a services agreement (the "Services Agreement"), and a royalty purchase agreement (the "Royalty Purchase Agreement") in October 2020 with Arena. The following section summarizes these related party agreements. License Agreement Pursuant to the License Agreement, the Company obtained an exclusive, royalty bearing, sublicensable, worldwide license under certain know-how and patents of Arena to develop and commercialize LP352 for any use in humans, LP143 for the treatment of any central nervous system ("CNS") indication in humans (excluding the treatment, prevention or amelioration of pain or any gastrointestinal, non-CNS autoimmune or cardiovascular disorder), and LP659 for the treatment of selected CNS indications in humans (pharmaceutical products containing any such compounds, Licensed Products). As consideration for the rights granted to the Company under the License Agreement, the Company will be required to pay to Arena a mid-single digit royalty on net sales of Licensed Products of LP352, and a low-single digit royalty on net sales of all other Licensed Products, by the Company, its affiliates or its sublicensees, subject to standard reductions. The Company’s royalty obligations continue on a Licensed Product-by-Licensed Product and country-by-country basis until the later of the (i) tenth anniversary of the first commercial sale of such product in such country or (ii) expiration of the last-to-expire valid claim of the patents licensed by us under the License Agreement covering the manufacture, use or sale of such product in such country. Services Agreement In connection with the License Agreement, the Company also entered into a Services Agreement with Arena under which Arena agreed to perform certain research and development services, general administrative services, management services and other mutually agreed services for the Company and receive service fees therefor on an hourly rate based on an annual full time equivalent rate agreed upon by the parties. Arena will invoice the Company for services provided on a monthly basis, in arrears. The Services Agreement shall continue until December 31, 2021 and shall automatically renew for successive one-year terms unless terminated by either party. Payments for services provided under the Services Agreement are recorded to R&D expenses or G&A expenses, on the statement of operations, as appropriate. For the three months ended March 31, 2021, the Company recorded $ 246,000 and $ 69,000 in R&D expenses and G&A expenses, respectively. For the period from January 3, 2020 (inception) through March 31, 2020, the Company recorded $ 16,000 and $ 79,000 in R&D expenses and G&A expenses, respectively. There were $ 231,000 and $ 241,000 of related party amounts related to the Services Agreement in accounts payable as of March 31, 2021 and December 31, 2020, respectively. Royalty Purchase Agreement In October 2020, the Company entered into a Royalty Purchase Agreement with 356 Royalty Inc., a wholly owned subsidiary of Arena ("356 Royalty") and Arena, pursuant to which we purchased the right to receive all milestone payments, royalties, interest and other payments relating to net sales of lorcaserin, owed or otherwise payable to 356 Royalty by Eisai Inc. and Eisai Co., Ltd. pursuant to the Transaction Agreement, by and among 356 Royalty, Eisai Inc. and Eisai Co., Ltd. The Company made a one-time payment to Arena of $ 0.1 million. The Company expensed this amount to research and development expense on the statement of operations and comprehensive loss as lorcaserin is subject to regulatory approval and there are risks and uncertainties as to whether royalties will ultimately be paid and collected. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 7. Stock-Based Compensation Equity Incentive Plan In October 2020, the Company’s board of directors and stockholder approved the 2020 Plan, which provided for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock unit awards, and stock appreciation rights to its employees, members of its board of directors, and consultants. The Company’s board of directors determined the exercise price, vesting and expiration period of the grants under the 2020 Plan. The Company's board of directors adopted the 2021 Plan in February 2021 and the Company's stockholders approved the 2021 Plan in March 2021. The 2021 Plan became effective on March 11, 2021. The 2021 Plan is the successor and continuation of the 2020 Plan. No additional awards may be granted under the 2020 Plan and all outstanding awards under the 2020 Plan remain subject to the terms of the 2020 Plan. The 2021 Plan authorizes and provides for the issuance of up to 2,834,232 shares of common stock, which amount will be increased to the extent that awards granted under the 2021 Plan are forfeited, expire or are settled for cash (except as otherwise provided in the 2021 Plan). Recipients of stock options are eligible to purchase shares of the Company’s common stock at an exercise price equal to no less than the estimated fair market value of such stock on the date of grant. The maximum term of options granted under the 2020 and 2021 Plans (or collectively, the “Equity Plans”) is ten years and, in general, the options issued under the Equity Plans vest over a one to four year period from the vesting commencement date. There are 1,586,076 shares available for grant under the 2021 Plan as of March 31, 2021. Stock Award Grants under the Equity Plans A summary of the Company’s Equity Plans stock option activity is as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Balance at December 31, 2020 873,264 $ 3.42 9.9 Options granted 374,892 12.10 9.9 Options exercised — — — Options cancelled — — — Balance at March 31, 2021 1,248,156 $ 6.03 9.7 Options exercisable at March 31, 2021 356,187 $ 3.18 9.6 Options exercisable at March 31, 2021 included 7,737 vested stock options and 348,450 stock options that are subject to an early exercise provision. The intrinsic value of options outstanding and exercisable as of March 31, 2021 were $ 12.9 million and $ 4.7 million, respectively. The following table presents the weighted-average assumptions used for the stock option grants for the three months ended March 31, 2021 and for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: Three Months Ended Period from Stock price $ 12.10 — Risk-free interest rate 0.84 % — Dividend yield 0.00 % — Expected volatility 73.87 % — Expected life (years) 6.0 — Estimated grant date fair value per share of award granted $ 7.80 — Determination of Fair Value of Common Stock. Prior to the IPO, there was no public market for the Company's common stock, and therefore, the estimated fair value of common stock for option grants was determined by the Company’s board of directors as of the date of each option grant, with input from management, considering the most recently available third-party valuations of common stock and the board of directors’ assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent valuation through the date of the grant. Historically, these independent third-party valuations of our equity instruments were performed contemporaneously with identified value inflection points. These third-party valuations were performed in accordance with the guidance outlined in the American Institute of Certified Public Accountants’ Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation ("Practice Aid"). The Practice Aid identifies various available methods for allocating the enterprise value across classes of series of capital stock in determining the fair value of the common stock at each valuation date. In addition to considering the results of these independent third-party valuations, the Company’s board of directors considered various objective and subjective factors to determine the fair value of its common stock as of each grant date, including: the prices of the preferred stock sold to or exchanged between outside investors in arm’s length transactions and the rights, preferences and privileges of the preferred stock as compared to those of the Company’s common stock including liquidation preferences of the Company’s preferred stock; the progress of the Company’s research and development programs, including the status and results of preclinical and clinical trials for product candidates; the stage of development and material risks related to the Company’s business; external market and other conditions affecting the biopharmaceutical industry and trends within the biopharmaceutical industry; the Company’s business conditions and projections; the Company’s financial position and its historical and forecasted performance and operating results; the lack of an active public market for the Company’s common stock and preferred stock; the likelihood of achieving a liquidity event for the Company’s securityholders, such as an initial public offering or a sale of the Company in light of prevailing market conditions; the hiring of key personnel and the experience of management; and the analysis of initial public offerings and the market performance of similar companies in the biopharmaceutical industry, as well as trends and developments in the biopharmaceutical industry. Significant changes to the key assumptions underlying the factors used could result in different fair values of common stock at each valuation date. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities similar to the expected term of the awards. Expected dividend yield . The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends and, therefore, used an expected dividend yield of zero. Expected volatility . Since the Company is a newly public company and does not have a trading history for its common stock, the expected volatility assumption is based on volatilities of a peer group of similar companies whose share prices are publicly available. The peer group was developed based on companies in the biotechnology industry. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Expected life . The expected life represents the period of time that options are expected to be outstanding. Because the Company does not have historical exercise behavior, it determines the expected life assumption using the simplified method, for employees, which is an average of the contractual term of the option and its vesting period. The expected term for nonemployee options is equal to the contractual term. After the closing of the IPO in March 2021, the Company began utilizing the closing stock price of the common stock on the Nasdaq Global Market as both the exercise price and an input to the Black Scholes option pricing model to determine stock-based compensation expense. In October 2020, 348,450 restricted stock awards were granted to an employee under the 2020 Plan, which vest over two years and had an estimated fair value of $ 3.12 per share at the time of grant. Stock Award Grants under the Arena Amended and Restated 2017 Long-Term Incentive Plan (Arena 2017 LTIP) Prior to October 27, 2020, the Company did not have its own equity incentive plan. Stock award grants from the period of January 3, 2020 through October 26, 2020, were made under the Arena 2017 LTIP, a plan approved by Arena’s stockholders. Under the Arena 2017 LTIP, Arena may grant incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance awards. Under the Arena 2017 LTIP, 70,000 stock options were granted to the Company’s Chief Executive Officer. Stock options under the Arena 2017 LTIP generally vest over four years with 25 % of the shares subject to each option vesting on the first anniversary of the grant date and the remainder vesting monthly over the following three years in equal installments and have contractual terms of seven years . All option grants provide for an option exercise price equal to the closing market value share of Arena’s common stock on the date of grant. As of October 27, 2020, in connection with the Series A Preferred Stock financing, the employees of the Company are no longer eligible to participate in the Arena 2017 LTIP. The following table presents the assumptions used for the stock option grants under the Arena 2017 LTIP for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: For the Period January 3, 2020 (Inception) through March 31, 2020 Stock price $ 44.60 Risk-free interest rate 0.89 % Dividend yield 0.00 % Expected volatility 57.80 % Expected life (years) 4.5 Estimated grant date fair value per share of award granted $ 21.02 In connection with the Series A Preferred Stock financing and the formal commencement of the Chief Executive Officer’s (Mr. Lind’s) employment with the Company, Mr. Lind entered into a Separation Agreement with Arena ("Separation Agreement"). Pursuant to the Separation Agreement, Mr. Lind voluntarily resigned his employment with Arena, effective October 27, 2020. Such resignation did not affect Mr. Lind’s status as the President and Chief Executive Officer of the Company. The Separation Agreement provided for the acceleration of vesting and the extension of the exercise period for equity awards outstanding at Arena as of the separation date. Stock-Based Compensation Expense Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows: (in thousands) Three Months Ended Period from Research and development $ 70 $ 16 General and administrative 263 79 Total $ 333 $ 95 As of March 31, 2021, unrecognized stock-based compensation expense was $ 5.5 million, which is expected to be recognized over a remaining weighted-average period of approximately 3.4 years. Employee Stock Purchase Plan The Company's board of directors adopted the 2021 Employee Stock Purchase Plan (“ESPP”) in February 2021, the Company's stockholders approved the ESPP in March 2021 and it became effective on March 11, 2021. The ESPP initially authorizes the issuance of 353,339 shares of common stock under purchase rights granted to our employees. The ESPP permits eligible employees, who elect to participate in an offering under the ESPP, to contribute up to 15 % of their eligible earnings (as defined in the ESPP) towards the purchase of shares of common stock. Unless otherwise determined by the Company's board of directors, the price at which stock is purchased under the ESPP is equal will be 85 % of the fair market value of the Company’s common stock on the commencement date of each offering period or the relevant purchase date, whichever is lower. There are certain service requirements for an employee to be eligible to participate in the ESPP, and no employee may purchase shares under the ESPP at a rate in excess of $ 25,000 worth of common stock (as determined in accordance with the ESPP). Offering durations under the ESPP may not be longer than 27 months , and the Company may specify shorter purchase periods within each offering. The ESPP is considered a compensatory plan as defined by the authoritative guidance for stock-based compensation. As of March 31, 2021, the ESPP had not yet been implemented. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. Commitments and Contingencies Leases The Company leases certain office space in San Diego, California under a month to month lease. Rent payments are approximately $ 1,000 per month. Rent expense totaled approximately $ 3,000 and $ 1,000 for the three months ended March 31, 2021 and 2020, respectively. Contingencies From time to time, the Company may become subject to claims or suits arising in the ordinary course of business. The Company will accrue a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of March 31, 2021 and December 31, 2020, the Company is not a party to any litigation. |
Employment Benefits
Employment Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employment Benefits | Note 9. Employment Benefits The Company’s employees who had been Arena employees were eligible to participate in Arena’s employee 401(k) salary deferral plan, which covers all Arena employees, through October 26, 2020. After that date, the Company’s employees were no longer eligible to participate in Arena’s employee 401(k) salary deferral plan. Employees made contributions by withholding a percentage of their salary up to the IRC annual limit. The Company made matching contributions of $ 2,000 for the three months ended March 31, 2020. The Company plans to establish a 401(k) salary deferral plan for its employees in 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events On April 9, 2021, the underwriters in the IPO exercised their option to purchase an additional 298,360 shares of common stock of the Company at a public offering price of $ 16.00 per share. The Company raised $ 4.4 million in net proceeds from this purchase after deducting underwriters’ discounts and commissions of $ 0.3 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying condensed financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed financial statements and related notes are unaudited. The unaudited condensed financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The condensed balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date but does not include all information and notes required by GAAP for complete financial statements. The operating results presented in these unaudited condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These condensed financial statements should be read in conjunction with the Company's audited financial statements included in the prospectus dated March 11, 2021 that forms a part of the Company’s registration statement on Form S-1 (File No. 333-253329) as filed with the SEC pursuant to Rule 424(b)(4) promulgated under the Securities Act of 1933, as amended, on March 12, 2021. In addition, the accompanying condensed financial statements include the financial results from inception (January 3, 2020) through March 31, 2021. The Company’s fiscal year-end is December 31. The Company concluded under the guidance in Accounting Standards Codification 805, Business Combinations that the Company was not required to present historical carve-out financial results for activity occurring at Arena prior to the Company’s formation as the assets licensed to the Company by Arena did not constitute a business. The financial statements include allocations for certain Arena corporate expenses, including costs of information technology, human resources, accounting, legal, facilities, insurance, treasury and other corporate and infrastructure services. These allocations were made on the basis of the actual hours incurred in providing services to the Company by employees of Arena multiplied by a fully burdened average cost per employee. Management believes such allocation of corporate expenses from Arena is reasonable. Effective October 27, 2020, the Company entered into a formal services agreement with Arena for these services (see Note 6). The financial statements may not include all of the expenses that would have been incurred had the Company been a stand-alone company during the period presented and may not reflect the Company’s results of operations, financial position and cash flows had the Company been a stand-alone company during the period presented. The Company also received capital contributions of $ 3.2 million from Arena to fund start-up activities throughout the period ended December 31, 2020. The capital contributions from Arena have been presented in additional paid-in capital on the balance sheet. |
Use of Estimates | Use of Estimates The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of the Company’s financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Such estimates include the accrual of R&D expenses and stock-based compensation. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to significant concentration of credit risk consist solely of cash. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. |
Deferred Financing Costs | Deferred Financing Costs Prior to the completion of the IPO, the Company had deferred financing costs consisting of legal, accounting and other fees and costs directly attributable to the IPO. As of December 31, 2020, $ 0.9 million of deferred financing costs were recorded on the balance sheet. Upon the completion of the IPO, all deferred financing costs were reclassified to additional paid-in capital. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources, including unrealized gains and losses on investments and foreign currency gains and losses. Net loss and comprehensive loss were the same for the periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking accounts, money market funds, corporate debt securities, and obligations of U.S. Government-sponsored enterprises. The carrying amounts reported in the unaudited condensed balance sheets for cash and cash equivalents are valued at cost, which approximates fair value. |
R&D Expenses | R&D Expenses R&D expenses are expensed in the periods in which they are incurred. External expenses consist primarily of payments to Arena, outside consultants and contract research organizations in connection with the Company’s discovery, preclinical and clinical activities, process development, manufacturing activities, regulatory and other services. Certain R&D external expenses are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers or the estimate of the level of service that has been performed at each reporting date. R&D expenses amounted to $ 4.4 million and $ 0.1 million for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020, respectively. |
Stock-Based Compensation | Stock-Based Compensation In October 2020, the Company’s board of directors and stockholder approved the 2020 Equity Incentive Plan ("2020 Plan"). The Company's board of directors adopted the 2021 Equity Incentive Plan ("2021 Plan") in February 2021 and the Company's stockholders approved the 2021 Plan in March 2021. The 2021 Plan is the successor and continuation of the 2020 Plan. Under both the 2021 and 2020 Plans, awards are measured at fair value and recognized over the requisite service period. Forfeitures are accounted for in the period they occur. The Company estimates the fair value of each stock-based award on the date of grant using the Black-Scholes option pricing model which requires the input of subjective assumptions, including price volatility of the underlying stock, risk-free interest rate, dividend yield, and expected term of the option. From January 3, 2020 through October 26, 2020, Company employees participated in Arena’s stock incentive plan and therefore the Company used Arena’s Black-Scholes fair value, and underlying inputs and assumptions, to recognize stock-based compensation. Stock-based awards were measured at fair value and recognized over the requisite service period. There were no forfeitures. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock and potentially dilutive securities outstanding for the period. As the Company has reported a net loss for the periods presented, diluted net loss per share of common stock is the same as basic net loss per share of common stock for the periods. The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended Period from Options to purchase common stock 1,248,156 — Restricted stock awards, issued but unvested 348,450 — Total 1,596,606 — |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02), which supersedes FASB Accounting Standards Codification Topic 840, Leases (Topic 840), and provides principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method for finance leases or on a straight-line basis over the term of the lease for operating leases. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. For companies that are not emerging growth companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. For emerging growth companies, the ASU was to be effective for fiscal years beginning after December 15, 2019. However, in June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) : Effective Dates for certain Entities, which deferred the effective date of ASU 2016-02 for certain entities. As a result, the ASU is now effective for emerging growth companies for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company plans to adopt the new standard in the first quarter of 2022 using the modified retrospective method, under which the Company applies Topic 842 to existing and new leases as of January 1, 2022, but prior periods will not be restated and will continue to be reported under Topic 840 guidance in effect during those periods. The Company is currently evaluating the impact the adoption of these ASUs will have on its financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes—Simplifying the Accounting for Income Taxes (ASU 2019-12). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that, in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company adopted this new standard in the first quarter of 2021 and it did not have a material impact on its financial statements and related disclosures. |
Risks and Uncertainties | Risks and Uncertainties In December 2019, COVID-19, a novel strain of coronavirus, was first identified in Wuhan, China. In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the virus has spread to over 100 countries, including the United States. The impact of this pandemic has been and will likely continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Potential impacts to the Company’s business include, but are not limited to, temporary closures of facilities of its vendors, disruptions or restrictions on its employees’ ability to travel, disruptions to or delays in ongoing laboratory experiments, preclinical studies, clinical trials, third-party manufacturing supply and other operations, the potential diversion of healthcare resources away from the conduct of clinical trials to focus on pandemic concerns, interruptions or delays in the operations of the U.S. Food and Drug Administration or other regulatory authorities, and the Company’s ability to raise capital and conduct business development activities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended Period from Options to purchase common stock 1,248,156 — Restricted stock awards, issued but unvested 348,450 — Total 1,596,606 — |
Accrued Other Expenses (Tables)
Accrued Other Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities Current [Abstract] | |
Summary of Accrued Other Expenses | Accrued other expenses consisted of the following (in thousands): As of As of (unaudited) Accrued financing costs $ 664 $ 639 Accrued consulting fees — 115 Accrued other 35 91 Total $ 699 $ 845 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholder's Equity (Deficit) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) | The following tables document the changes in convertible preferred stock and stockholders' equity (deficit) for the three months ended March 31, 2021 and the period from January 3, 2020 (inception) through March 31, 2020 (unaudited): Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at December 31, 2020 5,600,000 $ 55,795 — $ — 3,840,540 $ — — $ — $ 11,708 $ ( 14,400 ) $ ( 2,692 ) Conversion of convertible preferred stock to common stock in connection with initial public offering ( 5,600,000 ) ( 55,795 ) — — 4,098,600 — 3,629,400 — 55,795 55,795 Issuance of common stock in initial public offering, net — — — — 5,000,000 1 — — 71,848 71,849 Stock-based compensation — — — — — — — — 333 — 333 Net loss — — — — — — — — — ( 5,699 ) ( 5,699 ) Balance at March 31, 2021 — $ — — $ — 12,939,140 $ 1 3,629,400 $ — $ 139,684 $ ( 20,099 ) $ 119,586 Convertible Preferred Stock Preferred Stock Voting Common Stock Non-Voting Common Stock (in thousands, except shares) Number of Shares Amount Number of Shares Amount Number of Shares Amount Number of Shares Amount Additional Accumulated Deficit Total Stockholders' Equity (Deficit) Balance at January 3, 2020 (Inception) — $ — — $ — — $ — — $ — $ — $ — $ — Purchase of common stock by Arena Pharmaceuticals, Inc. — — — — 3,840,540 — — — — — — Arena Pharmaceuticals, Inc. capital contributions — — — — — — — — 39 — 39 Stock-based compensation — — — — — — — — 95 — 95 Net loss — — — — — — — — — ( 174 ) ( 174 ) Balance at March 31, 2020 — $ — — $ — 3,840,540 $ — - $ — $ 134 $ ( 174 ) $ ( 40 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Option Activity | A summary of the Company’s Equity Plans stock option activity is as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in Years) Balance at December 31, 2020 873,264 $ 3.42 9.9 Options granted 374,892 12.10 9.9 Options exercised — — — Options cancelled — — — Balance at March 31, 2021 1,248,156 $ 6.03 9.7 Options exercisable at March 31, 2021 356,187 $ 3.18 9.6 |
Summary of Weighted Average Grant Date Fair Values and Weighted Average Assumptions used to calculate Fair Value of Options Granted | The following table presents the weighted-average assumptions used for the stock option grants for the three months ended March 31, 2021 and for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: Three Months Ended Period from Stock price $ 12.10 — Risk-free interest rate 0.84 % — Dividend yield 0.00 % — Expected volatility 73.87 % — Expected life (years) 6.0 — Estimated grant date fair value per share of award granted $ 7.80 — |
Schedule of Stock-Based Compensation Expense Recognized for all Equity Awards and Reported in the Statements of Operations and Comprehensive Loss | Stock-based compensation expense recognized for all equity awards has been reported in the statements of operations and comprehensive loss as follows: (in thousands) Three Months Ended Period from Research and development $ 70 $ 16 General and administrative 263 79 Total $ 333 $ 95 |
Arena 2017 LTIP [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted Average Grant Date Fair Values and Weighted Average Assumptions used to calculate Fair Value of Options Granted | The following table presents the assumptions used for the stock option grants under the Arena 2017 LTIP for the period from January 3, 2020 (inception) through March 31, 2020, along with the related grant date fair value: For the Period January 3, 2020 (Inception) through March 31, 2020 Stock price $ 44.60 Risk-free interest rate 0.89 % Dividend yield 0.00 % Expected volatility 57.80 % Expected life (years) 4.5 Estimated grant date fair value per share of award granted $ 21.02 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 16, 2021$ / sharesshares | Mar. 05, 2021 | Oct. 27, 2020 | Oct. 31, 2020USD ($) | Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)shares | Jan. 31, 2020shares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Stock split, description | On March 5, 2021, the Company filed an amendment to the Company’s amended and restated certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 1.38-for-1 basis (March Forward Stock Split). Adjustments corresponding to the March Forward Stock Split were made to the ratio at which the Company’s Series A Preferred Stock were converted into common stock immediately prior to the closing of the IPO. The par value of the common stock and number of shares authorized were not adjusted as a result of the March Forward Stock Split. All references to common stock, options to purchase common stock, share data, per share data, and related information contained in the financial statements and related footnotes have been retrospectively adjusted to reflect the effect of the March Forward Stock Split for all periods presented. | On October 27, 2020, the Company filed an amendment to the Company’s certificate of incorporation to effect a forward stock split of shares of the Company’s common stock on a 2,783-for-1 basis (October Forward Stock Split). The par value of the common stock was not adjusted as a result of the October Forward Stock Split. The accompanying financial statements and notes to the financial statements give retroactive effect to the October Forward Stock Split for the periods presented. | ||||||
Forward stock split | 1.38 | 2,783 | ||||||
Common Stock Shares Issued | shares | 12,939,140 | 3,840,540 | ||||||
Net Proceeds from Initial Public Offering(IPO) | $ 80,000 | |||||||
Stock issuance costs | $ 1 | |||||||
Number of shares Exchanged During Period | shares | 2,970,000 | |||||||
Common stock, shares authorized | shares | 300,000,000 | 10,500,000 | ||||||
Proceeds from contributed capital | $ 3,200 | |||||||
Accumulated deficit | $ 20,099 | 14,400 | ||||||
Cash and cash equivalents | 120,851 | $ 55,316 | ||||||
Working Capital | $ 119,600 | |||||||
Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Common Stock Shares Issued | shares | 3,840,540 | |||||||
Common stock, shares authorized | shares | 300,000,000 | |||||||
IPO | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Number of Common Stock Shares Issued and Sold | shares | 5,298,360 | |||||||
Common Stock Shares Issued | shares | 298,360 | |||||||
Public Offering Price Per Share | $ / shares | $ 16 | |||||||
Net Proceeds from Initial Public Offering(IPO) | $ 76,200 | |||||||
Discount and Commissions Paid | 5,900 | |||||||
Stock issuance costs | 2,600 | |||||||
Unpaid Stock Issuance Cost | $ 1,200 | |||||||
Series A Preferred Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Stock issuance costs | $ 200 | |||||||
Number of Shares Converted | shares | 2,970,000 | |||||||
Gross proceeds | $ 56,000 | |||||||
Series A Preferred Stock | IPO | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Number of shares Exchanged During Period | shares | 2,630,000 | |||||||
Voting | Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Number of Shares Converted | shares | 4,098,600 | |||||||
Non Voting | Common Stock | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Number of Shares Converted | shares | 3,629,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Deferred financing costs | $ 0 | $ 876 | |
Research and development expenses | $ 4,398 | $ 59 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 1,596,606 |
Options To Purchase Common Stock | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 1,248,156 |
Restricted Stock Awards Issued But Unvested | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 348,450 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Information) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Liabilities | $ 0 | $ 0 |
Accrued Other Expenses - Summar
Accrued Other Expenses - Summary of Accrued Other Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Accrued financing costs | $ 664 | $ 639 |
Accrued consulting fees | 0 | 115 |
Accrued other | 35 | 91 |
Accrued other expenses | $ 699 | $ 845 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 16, 2021 | Oct. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jan. 31, 2020 | Jan. 03, 2020 |
Common stock, shares authorized | 300,000,000 | 10,500,000 | |||||
Preferred stock, shares authorized | 10,000,000 | 0 | |||||
Common stock, shares outstanding | 12,939,140 | 3,840,540 | |||||
Common stock, subject to repurchase | 348,450 | 348,450 | |||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Stock issuance costs | $ 1 | ||||||
Common stock, shares issued | 12,939,140 | 3,840,540 | |||||
Series A Preferred Stock [Member] | |||||||
Shares purchased | 100,000 | ||||||
Preferred stock, shares issued | 5,600,000 | ||||||
Preferred stock, shares outstanding | 0 | ||||||
Convertible preferred stock available for conversion | 2,630,000 | ||||||
Gross proceeds | $ 56,000 | ||||||
Stock issuance costs | $ 200 | ||||||
Price per share | $ 10 | ||||||
Number of shares converted | 2,970,000 | ||||||
Non-Voting Common Stock [Member] | |||||||
Common stock, shares authorized | 10,000,000 | 0 | |||||
Common stock, shares outstanding | 3,629,400 | 0 | |||||
Stock issued during conversion of convertible securities | 3,629,400 | ||||||
Conversion of stock, shares issued | 3,629,400 | ||||||
Common stock, shares issued | 3,629,400 | 0 | |||||
Voting Common Stock [Member] | |||||||
Common stock, shares authorized | 300,000,000 | ||||||
Common stock, shares outstanding | 12,939,140 | 3,840,540 | |||||
Common stock, subject to repurchase | 348,450 | 348,450 | |||||
Price per share | $ 0.10 | ||||||
Conversion of stock, shares issued | 4,098,600 | 4,098,600 | |||||
Common stock, shares issued | 3,840,540 | ||||||
Share purchased | 3,840,540 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Equity (Deficit) - Schedule of Changes in Convertible Preferred Stock and Stockholders' Equity (Deficit) (Details) - USD ($) $ in Thousands | Mar. 16, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Balance | $ (2,692) | |||
Conversion of convertible preferred stock to common stock in association with initial public offering | 55,795 | |||
Arena Pharmaceuticals, Inc. capital contributions | 39 | |||
Stock-based compensation | 333 | 95 | ||
Net loss | (5,699) | (174) | ||
Temporary equity, Balance | ||||
Balance | 119,586 | $ (40) | ||
IPO [Member] | ||||
Issuance of common stock | 71,849 | |||
Convertible Preferred Stock [Member] | ||||
Temporary equity, Balance | $ 55,795 | |||
Temporary equity, Balance (in shares) | 5,600,000 | |||
Conversion of convertible preferred stock to common stock in association with initial public offering | $ 55,795 | |||
Conversion of convertible preferred stock to common stock in association with initial public offering (in shares) | 5,600,000 | |||
Non-Voting Common Stock [Member] | ||||
Balance (in shares) | ||||
Conversion of convertible preferred stock to common stock in association with initial public offering (in shares) | 3,629,400 | |||
Balance (in shares) | 3,629,400 | |||
Voting Common Stock [Member] | ||||
Balance | ||||
Balance (in shares) | 3,840,540 | |||
Conversion of convertible preferred stock to common stock in association with initial public offering (in shares) | 4,098,600 | 4,098,600 | ||
Issuance of common stock (in shares) | 3,840,540 | |||
Balance | $ 1 | |||
Balance (in shares) | 12,939,140 | (3,840,540) | ||
Voting Common Stock [Member] | IPO [Member] | ||||
Issuance of common stock | $ 1 | |||
Issuance of common stock (in shares) | 5,000,000 | |||
Additional Paid-in Capital [Member] | ||||
Balance | $ 11,708 | |||
Conversion of convertible preferred stock to common stock in association with initial public offering | 55,795 | |||
Arena Pharmaceuticals, Inc. capital contributions | 39 | |||
Stock-based compensation | 333 | 95 | ||
Balance | 139,684 | 134 | ||
Additional Paid-in Capital [Member] | IPO [Member] | ||||
Issuance of common stock | 71,848 | |||
Accumulated Deficit [Member] | ||||
Balance | (14,400) | |||
Net loss | (5,699) | (174) | ||
Balance | $ (20,099) | $ (174) |
Agreements with Arena Pharmac_2
Agreements with Arena Pharmaceuticals, Inc. - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Research and development expenses | $ 4,398 | $ 59 | ||
General and administrative expenses | 1,305 | 115 | ||
Arena Pharmaceuticals, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Renew of successive agreement term | 1 year | |||
Research and development expenses | 246,000 | 16,000 | ||
General and administrative expenses | 69,000 | $ 79,000 | ||
Related party amounts related to accounts payable | $ 231,000 | $ 241,000 | ||
Payments of related party | $ 100 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Oct. 31, 2020 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options exercisable, vested stock options | 7,737 | |
Options exercisable, subject to early exercise provision | 348,450 | |
Options outstanding, Intrinsic value | $ 12,900,000 | |
Options exercisable, Intrinsic value | $ 4,700,000 | |
Number of shares, options granted | 374,892 | |
Unrecognized stock-based compensation expense | $ 5,500,000 | |
Cost not yet recognized, period for recognition | 3 years 4 months 24 days | |
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 353,339 | |
Employee stock purchase plan, eligible earnings contribution, percentage | 15.00% | |
Employee stock purchase plan, shares purchase price as a percentage of market fair value | 85.00% | |
Employee stock purchase plan, maximum shares purchased, value | $ 25,000 | |
Employee stock purchase plan, maximum offering period | 27 months | |
2021 Equity Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares available for grant | 1,586,076 | |
2021 Equity Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares authorized for issuance | 2,834,232 | |
2021 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 1 year | |
2021 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Award expiration term | 10 years | |
2020 Equity Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares available for grant | 0 | |
2020 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 1 year | |
2020 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Award expiration term | 10 years | |
2020 Equity Incentive Plan [Member] | Restricted Stock Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Restricted stock award, granted | 348,450 | |
Restricted stock award, Grant date fair value | $ 3.12 | |
Arena 2017 LTIP [Member] | Chief Executive Officer [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Number of shares, options granted | 70,000 | |
Award vesting rights percentage | 25.00% | |
Remaining contractual term, options granted | 7 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Options [Roll Forward] | ||
Number of Shares, Options outstanding, beginning balance | 873,264 | |
Number of Shares, Options granted | 374,892 | |
Number of Shares, Options exercised | ||
Number of Shares, Options cancelled | ||
Number of Shares, Options outstanding, ending balance | 1,248,156 | 873,264 |
Number of Shares, Options exercisable | 356,187 | |
Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price Per share, Options outstanding, beginning balance | $ 3.42 | |
Weighted Average Exercise Price Per share, Options granted | 12.10 | |
Weighted Average Exercise Price Per share, Options exercised | ||
Weighted Average Exercise Price Per share, Options cancelled | ||
Weighted Average Exercise Price Per share, Options outstanding, ending balance | 6.03 | $ 3.42 |
Weighted Average Exercise Price Per share, Options exercisable | $ 3.18 | |
Weighted Average Remaining Contractual Term (in Years) [Roll Forward] | ||
Weighted Average Remaining Contractual Term, Options outstanding | 9 years 8 months 12 days | 9 years 10 months 24 days |
Remaining Contractual Term, Options granted | 9 years 10 months 24 days | |
Weighted Average Remaining Contractual Term, Options exercised | ||
Weighted Average Remining Contractual Term, Options cancelled | ||
Weighted Average Remaining Contractual Term, Options exercisable | 9 years 7 months 6 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock price | $ 12.10 | |
Risk-free interest rate | 0.84% | |
Dividend yield | 0.00% | |
Expected volatility | 73.87% | |
Expected life (years) | 6 years | |
Estimated grant date fair value per share of award granted | $ 7.80 | |
Arena 2017 LTIP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock price | $ 44.60 | |
Risk-free interest rate | 0.89% | |
Dividend yield | 0.00% | |
Expected volatility | 57.80% | |
Expected life (years) | 4 years 6 months | |
Estimated grant date fair value per share of award granted | $ 21.02 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense Recognized for all Equity Awards and Reported in the Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 333 | $ 95 |
Research and Development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 70 | 16 |
General and Administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 263 | $ 79 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Rent payments per month | $ 1,000 | |
Total rent expense | $ 3,000 | $ 1,000 |
Employment Benefits - Additiona
Employment Benefits - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Postemployment Benefits [Abstract] | |
Matching contributions | $ 2,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 09, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||
Number of Shares, Options exercised | ||
Subsequent Event | IPO [Member] | ||
Subsequent Event [Line Items] | ||
Number of Shares, Options exercised | 298,360 | |
Shares issued price per share | $ 16 | |
Proceeds from stock options exercised | $ 4.4 | |
Other underwriting expense | $ 0.3 |