| Delaware | |||||||
(State or other jurisdiction of incorporation or organization) | | | 2836 (Primary Standard Industrial Classification Code Number) | | | 13-4365359 (I.R.S. Employer Identification Number) | |
| Rachael M. Bushey Joseph Walsh Troutman Pepper Hamilton Sanders LLP 3000 Two Logan Square Philadelphia, Pennsylvania 19103 (215) 981-4331 | | | Stephen Older David McGuireWoods LLP 1251 Avenue of the Americas, 20th Floor New York, New York 10020 (212) 548-2100 | |
| Large accelerated filer ☐ | | | Accelerated filer | ☐ | | |||||
| Non-accelerated filer ☒ | | | Smaller reporting company | ☒ | | |||||
| | | | Emerging growth company | ☒ | |
| | |||||||||||
Title of each class of securities to be registered | | | | Proposed maximum aggregate offering price(1) | | | | Amount of registration fee(2) | | |||
Common Stock, $0.001 par value per share | | | | $50,000,000 | | | | | $ | 5,455 | | |
| | | Per share | | | Total | | ||||||
| | | $ | | | | | $ | | | |||
Underwriting discounts and commissions(1) | | | | $ | | | | | $ | | | ||
Proceeds to us, before expenses | | | | $ | | | | | $ | | | |
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| | | Year Ended December 31, | | | Three Months Ended March 31, | | ||||||||||||||||||
(in thousands, except share and per share data) | | | 2019 | | | 2020 | | | 2020 | | | 2021 | | ||||||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development | | | | $ | 14,379 | | | | | $ | 12,887 | | | | | $ | 3,446 | | | | | $ | 4,430 | | |
General and administrative | | | | | 3,452 | | | | | | 4,520 | | | | | | 1,445 | | | | | | 1,153 | | |
Total operating expenses | | | | | 17,831 | | | | | | 17,407 | | | | | | 4,891 | | | | | | 5,583 | | |
Loss from operations | | | | | (17,831) | | | | | | (17,407) | | | | | | (4,891) | | | | | | (5,583) | | |
Other income (expense): | | | | | | | | | | | | | | | | ||||||||||
Grant income | | | | | 13,164 | | | | | | 10,855 | | | | | | 2,273 | | | | | | 4,692 | | |
Change in the fair value of the derivative liability | | | | | (231) | | | | | | 18 | | | | | | 345 | | | | | | 1,063 | | |
Change in the fair value of the warrant liability | | | | | (7) | | | | | | 181 | | | | | | 30 | | | | | | — | | |
Other income, net | | | | | 1,087 | | | | | | 394 | | | | | | 142 | | | | | | 145 | | |
(Loss) gain on debt extinguishment | | | | | — | | | | | | (129) | | | | | | (129) | | | | | | 443 | | |
Interest expense, net | | | | | (1,024) | | | | | | (1,751) | | | | | | (276) | | | | | | (537) | | |
Total other income (expense), net | | | | | 12,989 | | | | | | 9,568 | | | | | | 2,385 | | | | | | 5,806 | | |
Net (loss) income | | | | | (4,842) | | | | | | (7,839) | | | | | | (2,506) | | | | | | 223 | | |
Cumulative preferred stock dividends | | | | | (3,920) | | | | | | (4,234) | | | | | | (1,053) | | | | | | (1,128) | | |
Net loss attributable to common stockholders | | | | $ | (8,762) | | | | | $ | (12,073) | | | | | $ | (3,559) | | | | | $ | (905) | | |
Net loss per share attributable to common stockholders, basic and diluted | | | | $ | (5.77) | | | | | $ | (7.35) | | | | | $ | (2.34) | | | | | $ | (0.51) | | |
Weighted-average common shares outstanding, basic and diluted(1) | | | | | 1,519,285 | | | | | | 1,643,514 | | | | | | 1,519,431 | | | | | | 1,779,573 | | |
Pro forma loss per share, basic and diluted(2) | | | | | | | | | | $ | | | | | | | | | | | | $ | | | |
Pro forma weighted-average common shares outstanding, basic and diluted(2) | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | As of December 31, | | | As of March 31, | | ||||||||||||
(in thousands) | | | 2019 | | | 2020 | | | 2021 | | |||||||||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | |||||
Cash and cash equivalents | | | | $ | 2,890 | | | | | $ | 5,189 | | | | | $ | 13,373 | | |
Working capital(1) | | | | | 3,477 | | | | | | 3,658 | | | | | | 11,614 | | |
Total assets | | | | | 7,459 | | | | | | 7,119 | | | | | | 16,512 | | |
Simple Agreements for Future Equity | | | | | — | | | | | | — | | | | | | 8,942 | | |
Derivative liability | | | | | 1,493 | | | | | | 2,209 | | | | | | 1,146 | | |
Warrant liability | | | | | 181 | | | | | | — | | | | | | — | | |
Convertible notes, net | | | | | 6,897 | | | | | | 12,409 | | | | | | 12,691 | | |
Total liabilities | | | | | 12,954 | | | | | | 19,933 | | | | | | 28,996 | | |
Convertible preferred stock | | | | | 52,927 | | | | | | 55,370 | | | | | | 55,370 | | |
Accumulated deficit | | | | | (58,239) | | | | | | (68,220) | | | | | | (67,997) | | |
Total stockholders’ deficit | | | | | (58,422) | | | | | | (68,184) | | | | | | (67,854) | | |
| | | As of June 30, 2022 | | | | | |||||||||
(in thousands, except share and per share amounts) | | | Actual | | | Pro Forma | | | ||||||||
Cash and cash equivalents | | | | $ | 45,771 | | | | | $ | 54,921 | | | | ||
Stockholders’ equity | | | | | | | | | | | | | | | ||
Common stock, par value $0.001 per share; 250,000,000 shares authorized at June 30, 2022; 22,597,907 shares issued and outstanding, actual; 28,184,499 shares issued and outstanding, pro forma | | | | | 22 | | | | | | 28 | | | | ||
Additional paid-in capital | | | | | 147,671 | | | | | | 156,815 | | | | ||
Accumulated deficit | | | | | (103,594) | | | | | | (103,594) | | | | ||
Accumulated other comprehensive loss | | | | | (200) | | | | | | (200) | | | | ||
Total stockholders’ equity | | | | $ | 43,899 | | | | | $ | 53,049 | | | | ||
Total capitalization | | | | $ | 43,899 | | | | | $ | 53,049 | | | |
| | | As of March 31, 2021 | | |||||||||||||||
| Actual | | | Pro Forma(1) | | | Pro Forma as Adjusted(2) | | |||||||||||
| (in thousands except share and per share data) | | |||||||||||||||||
Cash and cash equivalents | | | | $ | 13,373 | | | | | $ | | | | | $ | | | ||
Convertible notes | | | | | 12,691 | | | | | | | | | | | | | | |
Accrued interest | | | | | 1,879 | | | | | | | | | | | | | | |
Derivative liability | | | | | 1,146 | | | | | | | | | | | | | | |
Simple Agreements for Future Equity | | | | | 8,942 | | | | | | | | | | | | | | |
Series A convertible preferred stock, par value $0.001 per share, 3,067,519 shares authorized at March 31, 2021, 2,819,027 shares issued and outstanding as of March 31, 2021; liquidation preference of $4,860 as of March 31, 2021 | | | | | 4,616 | | | | | | | | | | | | | | |
Series A-1 convertible preferred stock, par value $0.001 per share, 3,970,776 shares authorized at March 31, 2021, 3,730,366 shares issued and outstanding as of March 31, 2021; liquidation preference of $5,682 as of March 31, 2021 | | | | | 5,398 | | | | | | | | | | | | | | |
Series A-2 convertible preferred stock, par value $0.001 per share, 3,565,063 shares authorized at March 31, 2021, 3,565,063 shares issued and outstanding as of March 31, 2021; liquidation preference of $6,115 as of March 31, 2021 | | | | | 5,809 | | | | | | | | | | | | | | |
Series B convertible preferred stock, par value $0.001 per share, 30,450,000 shares authorized at March 31, 2021, 30,409,890 shares issued and outstanding as of March 31, 2021; liquidation preference of $41,632 as of March 31, 2021 | | | | | 39,547 | | | | | | | | | | | | | | |
Series B-1 convertible preferred stock, par value $0.001 per share, 0 shares authorized at March 31, 2021, 0 shares issued and outstanding as of March 31, 2021; liquidation preference of $0 as of March 31, 2021 | | | | | — | | | | | | | | | | | | | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | |
Common stock, $0.001 par value, 58,000,000 shares authorized at March 31, 2021; 1,809,998 shares issued and outstanding at March 31, 2021 | | | | | 2 | | | | | | | | | | | | | | |
Additional paid-in capital | | | | | 333 | | | | | | | | | | | | | | |
Accumulated deficit | | | | | (67,997) | | | | | | | | | | | | | | |
Accumulated other comprehensive loss | | | | | (192) | | | | | | | | | | | | | | |
Total stockholders’ deficit | | | | | (67,854) | | | | | | | | | | | | | | |
Total capitalization | | | | $ | 12,174 | | | | | | | | | | | | | | |
| Assumed public offering price per share | | | | | | | | | | $ | 1.79 | | |
| Historical net tangible book value per share as of June 30, 2022 | | | | $ | 1.94 | | | | | | | | |
| Decrease in net tangible book value per share as of June 30, 2022 attributable to investors purchasing in this offering | | | | | (0.06) | | | | | | | | |
| As adjusted net tangible book value per share as of June 30, 2022 after giving effect to this offering | | | | | | | | | | | 1.88 | | |
| Increase per share to new investors participating in this offering | | | | | | | | | | $ | 0.09 | | |
| | | Shares purchased | | | Percentage | | | Amount | | | Percentage | | | Average price per share | | |||||||||||||||
Existing stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | | | |
Public stockholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | | | |
Total | | | | | | | | | | 100.0% | | | | | | | | | | | 100.0% | | | | | | | | |
| | | Year Ended December 31, | | | Three Months Ended March 31, | | ||||||||||||||||||
(in thousands, except share and per share data) | | | 2019 | | | 2020 | | | 2020 | | | 2021 | | ||||||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | ||||||||||
Operating Expenses: | | | | | | | | | | | | | | | | ||||||||||
Research and development | | | | $ | 14,379 | | | | | $ | 12,887 | | | | | $ | 3,446 | | | | | $ | 4,430 | | |
General and administrative | | | | | 3,452 | | | | | | 4,520 | | | | | | 1,445 | | | | | | 1,153 | | |
Total operating expenses | | | | | 17,831 | | | | | | 17,407 | | | | | | 4,891 | | | | | | 5,583 | | |
Loss from operations | | | | | (17,831) | | | | | | (17,407) | | | | | | (4,891) | | | | | | (5,583) | | |
Other income (expense): | | | | | | | | | | | | | | | | ||||||||||
Grant income | | | | | 13,164 | | | | | | 10,855 | | | | | | 2,273 | | | | | | 4,692 | | |
Change in the fair value of the derivative liability | | | | | (231) | | | | | | 18 | | | | | | 345 | | | | | | 1,063 | | |
Change in the fair value of the warrant liability | | | | | (7) | | | | | | 181 | | | | | | 30 | | | | | | — | | |
Other income, net | | | | | 1,087 | | | | | | 394 | | | | | | 142 | | | | | | 145 | | |
(Loss) gain on debt extinguishment | | | | | — | | | | | | (129) | | | | | | (129) | | | | | | 443 | | |
Interest expense, net | | | | | (1,024) | | | | | | (1,751) | | | | | | (276) | | | | | | (537) | | |
Total other income (expense), net | | | | | 12,989 | | | | | | 9,568 | | | | | | 2,385 | | | | | | 5,806 | | |
Net (loss) income | | | | | (4,842) | | | | | | (7,839) | | | | | | (2,506) | | | | | | 223 | | |
Cumulative preferred stock dividends | | | | | (3,920) | | | | | | (4,234) | | | | | | (1,053) | | | | | | (1,128) | | |
Net loss attributable to common stockholders | | | | $ | (8,762) | | | | | $ | (12,073) | | | | | $ | (3,559) | | | | | $ | (905) | | |
Net loss per share attributable to common stockholders, basic and diluted | | | | $ | (5.77) | | | | | $ | (7.35) | | | | | $ | (2.34) | | | | | $ | (0.51) | | |
Weighted-average common shares outstanding, basic and diluted(1) | | | | | 1,519,285 | | | | | | 1,643,514 | | | | | | 1,519,431 | | | | | | 1,779,573 | | |
Pro forma loss per share, basic and diluted(2) | | | | | | | | | | $ | | | | | | | | | | | $ | | | ||
Pro forma weighted-average common shares outstanding, basic and diluted(2) | | | | | | | | | | | | | | | |
(in thousands) | | | As of December 31, | | | As of March 31, | | ||||||||||||
| 2019 | | | 2020 | | | 2021 | | |||||||||||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | |||||
Cash and cash equivalents | | | | $ | 2,890 | | | | | $ | 5,189 | | | | | $ | 13,373 | | |
Working capital | | | | | 3,477 | | | | | | 3,658 | | | | | | 11,614 | | |
Total assets | | | | | 7,459 | | | | | | 7,119 | | | | | | 16,512 | | |
Simple Agreements for Future Equity | | | | | — | | | | | | — | | | | | | 8,942 | | |
Derivative liability | | | | | 1,493 | | | | | | 2,209 | | | | | | 1,146 | | |
Warrant liability | | | | | 181 | | | | | | — | | | | | | — | | |
Convertible notes, net | | | | | 6,897 | | | | | | 12,409 | | | | | | 12,691 | | |
Total liabilities | | | | | 12,954 | | | | | | 19,933 | | | | | | 28,996 | | |
Convertible preferred stock | | | | | 52,927 | | | | | | 55,370 | | | | | | 55,370 | | |
Accumulated deficit | | | | | (58,239) | | | | | | (68,220) | | | | | | (67,997) | | |
Total stockholders’ deficit | | | | | (58,422) | | | | | | (68,184) | | | | | | (67,854) | | |
| | | Year Ended December 31, | | | | | | | | |||||||||
| 2019 | | | 2020 | | | Change | | |||||||||||
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
Research and development | | | | $ | 14,379 | | | | | $ | 12,887 | | | | | $ | (1,492) | | |
General and administrative | | | | | 3,452 | | | | | | 4,520 | | | | | | 1,068 | | |
Total operating expenses | | | | | 17,831 | | | | | | 17,407 | | | | | | (424) | | |
Loss from operations | | | | | (17,831) | | | | | | (17,407) | | | | | | (424) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | |
Grant income | | | | | 13,164 | | | | | | 10,855 | | | | | | (2,309) | | |
Change in the fair value of the derivative liability | | | | | (231) | | | | | | 18 | | | | | | 249 | | |
Change in the fair value of the warrant liability | | | | | (7) | | | | | | 181 | | | | | | 188 | | |
Other income, net | | | | | 1,087 | | | | | | 394 | | | | | | (693) | | |
Loss on debt extinguishment | | | | | — | | | | | | (129) | | | | | | (129) | | |
Interest expense, net | | | | | (1,024) | | | | | | (1,751) | | | | | | (727) | | |
Total other income (expense), net | | | | | 12,989 | | | | | | 9,568 | | | | | | (3,421) | | |
Net loss | | | | $ | (4,842) | | | | | $ | (7,839) | | | | | $ | (2,997) | | |
| | | Six Months Ended June 30, | | | | | | | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | | Change | | |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
Research and development | | | | $ | 15,616 | | | | | $ | 9,324 | | | | | $ | 6,292 | | |
General and administrative | | | | | 6,010 | | | | | | 2,243 | | | | | | 3,767 | | |
Total operating expenses | | | | | 21,626 | | | | | | 11,567 | | | | | | 10,059 | | |
Loss from operations | | | | | (21,626) | | | | | | (11,567) | | | | | | (10,059) | | |
| | | Six Months Ended June 30, | | | | | | | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | | Change | | |||||||||
Other income (expense): | | | | | | | | | | | | | | | | | | | |
Grant income | | | | | 12,289 | | | | | | 9,338 | | | | | | 2,951 | | |
Change in the fair value of the derivative liability | | | | | — | | | | | | 2,209 | | | | | | (2,209) | | |
Change in the fair value of SAFEs | | | | | — | | | | | | (1,044) | | | | | | 1,044 | | |
Other (expense) income, net | | | | | (237) | | | | | | 248 | | | | | | (485) | | |
Gain on debt extinguishment | | | | | — | | | | | | 443 | | | | | | (443) | | |
Interest expense, net | | | | | (16) | | | | | | (894) | | | | | | 878 | | |
Total other income, net | | | | | 12,036 | | | | | | 10,300 | | | | | | 1,736 | | |
Loss before income taxes | | | | | (9,590) | | | | | | (1,267) | | | | | | (8,323) | | |
Net loss | | | | $ | (9,590) | | | | | $ | (1,267) | | | | | $ | (8,323) | | |
|
| | | Year Ended December 31, | | | | | | | | Six Months Ended June 30, | | | | | | | |||||||||||||||||||||
| 2019 | | 2020 | | Change | | | 2022 | | 2021 | | Change | | |||||||||||||||||||||||||
Clinical programs | | | $ | 8,398 | | | | $ | 5,263 | | | | $ | (3,135) | | | | | $ | 9,050 | | | | $ | 1,684 | | | | $ | 7,366 | | | ||||||
Personnel | | | | 3,039 | | | | | 4,026 | | | | | 987 | | | | | | 3,362 | | | | | 1,936 | | | | | 1,426 | | | ||||||
Manufacturing | | | | 1,426 | | | | | 1,798 | | | | | 372 | | | | | | 2,061 | | | | | 4,719 | | | | | (2,658) | | | ||||||
Preclinical programs | | | | 1,400 | | | | | 1,693 | | | | | 293 | | | | | | 1,036 | | | | | 926 | | | | | 110 | | | ||||||
Facilities and other costs | | | | 116 | | | | | 107 | | | | | (9) | | | | | | 107 | | | | | 59 | | | | | 48 | | | ||||||
| | | $ | 14,379 | | | | $ | 12,887 | | | | $ | (1,492) | | | | | $ | 15,616 | | | | $ | 9,324 | | | | $ | 6,292 | | |
| | | Year Ended December 31, | | | | | | | | |||||||||
(in thousands) | | | 2021 | | | 2020 | | | Change | | |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
Research and development | | | | $ | 18,572 | | | | | $ | 12,887 | | | | | $ | 5,685 | | |
General and administrative | | | | | 10,026 | | | | | | 4,520 | | | | | | 5,506 | | |
Total operating expenses | | | | | 28,598 | | | | | | 17,407 | | | | | | 11,191 | | |
Loss from operations | | | | | (28,598) | | | | | | (17,407) | | | | | | (11,191) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | |
Grant income | | | | | 17,447 | | | | | | 10,855 | | | | | | 6,592 | | |
Change in the fair value of the derivative liability | | | | | 2,209 | | | | | | 18 | | | | | | 2,191 | | |
Change in the fair value of the warrant liability | | | | | — | | | | | | 181 | | | | | | (181) | | |
Change in the fair value of the Simple Agreements for Future Equity | | | | | (2,236) | | | | | | — | | | | | | (2,236) | | |
Other (expense) income, net | | | | | (88) | | | | | | 394 | | | | | | (482) | | |
Gain (loss) on debt extinguishment | | | | | 443 | | | | | | (129) | | | | | | 572 | | |
Interest expense, net | | | | | (893) | | | | | | (1,751) | | | | | | 858 | | |
Total other income, net | | | | | 16,882 | | | | | | 9,568 | | | | | | 7,314 | | |
Net loss | | | | $ | (11,716) | | | | | $ | (7,839) | | | | | $ | (3,877) | | |
| | | Year Ended December 31, | | | | | | | | |||||||||
| | | 2021 | | | 2020 | | | Change | | |||||||||
Clinical programs | | | | $ | 4,679 | | | | | $ | 5,263 | | | | | $ | (584) | | |
Personnel | | | | | 4,882 | | | | | | 4,026 | | | | | | 856 | | |
Manufacturing | | | | | 7,465 | | | | | | 1,798 | | | | | | 5,667 | | |
Preclinical programs | | | | | 1,426 | | | | | | 1,693 | | | | | | (267) | | |
Facilities and other costs | | | | | 120 | | | | | | 107 | | | | | | 13 | | |
| | | | $ | 18,572 | | | | | $ | 12,887 | | | | | $ | 5,685 | | |
| | | Three Months Ended March 31, | | | | | | | | |||||||||
| | | 2020 | | | 2021 | | | Change | | |||||||||
Operating Expenses: | | | | | | | | | | | | | | | | | | | |
Research and development | | | | $ | 3,446 | | | | | $ | 4,430 | | | | | $ | 984 | | |
General and administrative | | | | | 1,445 | | | | | | 1,153 | | | | | | (292) | | |
Total operating expenses | | | | | 4,891 | | | | | | 5,583 | | | | | | 692 | | |
Loss from operations | | | | | (4,891) | | | | | | (5,583) | | | | | | (692) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | |
Grant income | | | | | 2,273 | | | | | | 4,692 | | | | | | 2,419 | | |
Change in the fair value of the derivative liability | | | | | 345 | | | | | | 1,063 | | | | | | 718 | | |
Change in the fair value of the warrant liability | | | | | 30 | | | | | | — | | | | | | (30) | | |
Other income, net | | | | | 142 | | | | | | 145 | | | | | | 3 | | |
(Loss) gain on debt extinguishment | | | | | (129) | | | | | | 443 | | | | | | 572 | | |
Interest expense, net | | | | | (276) | | | | | | (537) | | | | | | (261) | | |
Total other income (expense), net | | | | | 2,385 | | | | | | 5,806 | | | | | | 3,421 | | |
Net (loss) income | | | | $ | (2,506) | | | | | $ | 223 | | | | | $ | 2,729 | | |
| | | Three Months Ended March 31, | | | | | | | | |||||||||
| | | 2020 | | | 2021 | | | Change | | |||||||||
Clinical programs | | | | $ | 1,989 | | | | | $ | 926 | | | | | $ | (1,063) | | |
Personnel | | | | | 974 | | | | | | 840 | | | | | | (134) | | |
Manufacturing | | | | | 131 | | | | | | 2,308 | | | | | | 2,177 | | |
Preclinical programs | | | | | 325 | | | | | | 327 | | | | | | 2 | | |
Facilities and other costs | | | | | 27 | | | | | | 29 | | | | | | 2 | | |
| | | | $ | 3,446 | | | | | $ | 4,430 | | | | | $ | 984 | | |
| | | Year Ended December 31, | | Three Months Ended March 31, | | | Six Months Ended June 30, | | |||||||||||||||||||||||||||||
| 2019 | | 2020 | | 2020 | | 2021 | | | 2022 | | 2021 | | |||||||||||||||||||||||||
| | | | | | | | | | | | (unaudited) | | (unaudited) | | |||||||||||||||||||||||
Cash flows (used in) provided by operating activities | | | $ | (3,098) | | | | $ | (3,433) | | | | $ | 530 | | | | $ | (772) | | | |||||||||||||||||
Cash flows used in operating activities | | | $ | (8,345) | | | | $ | (1,682) | | | |||||||||||||||||||||||||||
Cash flows used in investing activities | | | | (144) | | | | | (10) | | | | | (10) | | | | | — | | | | | | (138) | | | | | — | | | ||||||
Cash flows provided by financing activities | | | | 2,794 | | | | | 5,765 | | | | | 3,782 | | | | | 8,956 | | | |||||||||||||||||
Cash flows (used in) provided by financing activities | | | | (465) | | | | | 7,801 | | | |||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | | | | (60) | | | | | (23) | | | | | (34) | | | | | — | | | | | | (2) | | | | | (8) | | | ||||||
Net increase (decrease) in cash and cash equivalents | | | $ | (508) | | | | $ | 2,299 | | | | $ | 4,268 | | | | $ | 8,184 | | | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | | | $ | (8,950) | | | | $ | 6,111 | | |
| | | Less than 1 Year | | | 1 to 3 Years | | | 3 to 5 Years | | | More than 5 Years | | | Total | | |||||||||||||||
Operating lease obligations | | | | $ | 89 | | | | | $ | 177 | | | | | $ | — | | | | | $ | — | | | | | $ | 266 | | |
Total | | | | $ | 89 | | | | | $ | 177 | | | | | $ | — | | | | | $ | — | | | | | $ | 266 | | |
| | | Less than 1 Year | | | 1 to 3 Years | | | 3 to 5 Years | | | More than 5 years | | | Total | | |||||||||||||||
Operating lease obligations: | | | | $ | 149 | | | | | $ | 193 | | | | | $ | 170 | | | | | $ | 191 | | | | | $ | 703 | | |
Total: | | | | $ | 149 | | | | | $ | 193 | | | | | $ | 170 | | | | | $ | 191 | | | | | $ | 703 | | |
| | | | | B maxa | | |
wt Aβ (1 – 42) oligomers | | | Site 1:442 ± 70 | | | 7.98 × | |
A673T mutant Aβ (1 – 42) oligomers | | | Site 1:1,955 ± 502 | | | 5.98 × | |
Funding Org | | Year | | Project | | Amount | | ||||||||||||||||||||
National Institute on Aging (NIH) | | | | 2016 | | | COG0101 Ph1b first-in-patient trial for CT1812 | | | $ | 2,410,669 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2016 | | | COG0102 Ph1b/2a Clinical Trial for CT1812 | | | $ | 2,410,669 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2017 | | | COG0104 Ph1 SNAP Study: CSF Catheter | | | $ | 2,527,271 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2017 | | | COG0105 Ph1 SPARC Study: SV2a PET | | | $ | 4,795,774 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2018 | | | COG0201 Ph2 SHINE Study | | | $ | 16,848,329 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2019 | | | COG0202 Ph2 SEQUEL Study: qEEG | | | $ | 5,445,051 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2020 | | | COG0203 Ph2 Study with ACTC | | | $ | 80,974,766 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2021 | | | COG0108 Study: hAME | | | $ | 1,642,783 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2021 | | | COG0201 Ph2 SHINE Amendment | | | $ | 13,634,548 | | | ||||||||||||||
National Institute on Aging (NIH) | | | | 2021 | | | COG1201: Study: DLB | | | $ | 29,498,048 | | | ||||||||||||||
NIH and others | | 2010 – 2021 | | Ten Preclinical Programs | | | $ | 10,859,971 | | | |||||||||||||||||
| Funding Org | | Year | | Project | | Amount | | | | | | | | | | | $ | 171,047,879 | | | ||||||
| National Institute on Aging (NIH) | | 2016 | | COG0101 Ph1b first-in-patient trial for CT1812 | | $2,410,669 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2016 | | COG0102 Ph1b/2a Clinical Trial for CT1812 | | $2,410,669 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2017 | | COG0104 Ph1 SNAP Study: CSF Catheter | | $2,527,271 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2017 | | COG0105 Ph1 SPARC Study: SV2a PET | | $4,795,774 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2018 | | COG0201 Ph2 SHINE Study | | $16,848,329 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2019 | | COG0202 Ph2 SEQUEL Study: qEEG | | $3,300,642 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2020 | | COG0203 Ph2 Study with ACTC | | $80,974,766 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2021 | | COG0108 Study: hAME | | $1,642,783 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2021 | | COG0201 Ph2 SHINE Amendment | | $13,634,548 | | |||||||||||||||||||
| National Institute on Aging (NIH) | | 2021 | | COG1201: Study: DLB | | $29,498,048 | | |||||||||||||||||||
| NIH and others | | 2010-2018 | | Ten Preclinical Programs | | $10,359,971 | | |||||||||||||||||||
| | | | | | | $168,403,470 | |
Name | | | Fees earned or paid in cash ($) | | | Option awards ($)(1) | | | All other compensation ($) | | | Total ($) | | ||||||||||||
Jack A. Khattar | | | | | 19,000 | | | | | | 40,711 | | | | | | — | | | | | | 59,711 | | |
Brett P. Monia, Ph.D. | | | | | 9,625 | | | | | | 40,092 | | | | | | — | | | | | | 49,717 | | |
Aaron Fletcher, Ph.D. | | | | | — | | | | | | 11,543 | | | | | | — | | | | | | 11,543 | | |
Stephen Sands(2) | | | | | — | | | | | | 7,723 | | | | | | — | | | | | | 7,723 | | |
Peggy Wallace | | | | | — | | | | | | 11,543 | | | | | | — | | | | | | 11,543 | | |
Mark H. Breedlove | | | | | — | | | | | | 11,543 | | | | | | — | | | | | | 11,543 | | |
Compensation Elements: Non-Employee Director Compensation Policy | | | | | | | |
Cash | | | | | | | |
Annual Cash Retainer | | | | $ | 35,000 | | |
Independent Chair Retainer | | | | $ | 65,000 | | |
Annual Committee Chair Retainer | | | | | | | |
Audit | | | | $ | 15,000 | | |
Compensation | | | | $ | 10,000 | | |
Nominating and Corporate Governance | | | | $ | 8,000 | | |
Annual Committee Member Retainer | | | | | | | |
Audit | | | | $ | 7,500 | | |
Compensation | | | | $ | 5,000 | | |
Nominating and Corporate Governance | | | | $ | 4,000 | | |
Equity | | | | | | | |
Initial Option Grant | | | shares(1) | | |||
Annual Option Grant | | | shares(2) | |
Name and principal position | | | Year | | | Salary ($) | | | Bonus ($) | | | Option awards ($)(1) | | | Non-equity incentive plan compensation ($)(2) | | | All other compensation ($) | | | Total ($) | | |||||||||||||||||||||
Lisa Ricciardi(3) | | | | | 2020 | | | | | | 287,385 | | | | | | — | | | | | | 901,904 | | | | | | 79,893 | | | | | | 3,415(4) | | | | | | 1,272,597 | | |
Chief Executive Officer and President | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Kenneth I. Moch(5) | | | | | 2020 | | | | | | 93,591 | | | | | | — | | | | | | — | | | | | | — | | | | | | 609,293(6) | | | | | | 702,884 | | |
Former Chief Executive Officer and President | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
James M. O’Brien | | | | | 2020 | | | | | | 340,000 | | | | | | — | | | | | | — | | | | | | 70,890 | | | | | | 7,323(4) | | | | | | 418,213 | | |
Chief Financial Officer | | | | | | | | |
Name | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Equity incentive awards: number of securities underlying unexercised unearned options (#) | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||||||||
Lisa Ricciardi | | | | | 33,750(1) | | | | | | 101,250(1) | | | | | | — | | | | | | 0.33 | | | | | | 9/29/2029 | | |
| | | | | — | | | | | | 25,000(2) | | | | | | — | | | | | | 0.33 | | | | | | 4/30/2030 | | |
| | | | | 65,000 | | | | | | | | | | | | — | | | | | | 0.37 | | | | | | 4/22/2030 | | |
| | | | | — | | | | | | 2,898,686(3) | | | | | | — | | | | | | 0.37 | | | | | | 5/31/2030 | | |
James M. O’Brien | | | | | 123,519(4) | | | | | | 299,978(4) | | | | | | — | | | | | | 0.33 | | | | | | 10/7/2029 | | |
Kenneth I. Moch | | | | | 2,339,204 | | | | | | — | | | | | | — | | | | | | 0.27 | | | | | | 6/17/2023 | | |
Name | | | Principal Amount of Convertible Notes | | | Shares of Series B-1 Convertible Preferred Stock | | ||||||
Entities affiliated with Breedlove Family Limited Partnership(1) | | | | $ | 475,730 | | | | | | 343,487 | | |
Entities affiliated with Golden Seeds Cognition Therapeutics, LLC(2) | | | | $ | 1,841,258 | | | | | | 1,329,428 | | |
Entities affiliated with BIOS Memory SPV I, LP(3) | | | | $ | 4,250,000 | | | | | | 3,068,592 | | |
Ogden CAP Associates, LLC(4) | | | | $ | 491,127 | | | | | | 354,604 | | |
Stephen Sands(5) | | | | $ | 25,000 | | | | | | 18,050 | | |
Name | | | Amount of SAFEs | | | Shares of Common Stock | | |||
Entities affiliated with Golden Seeds Cognition Therapeutics, LLC(1) | | | | $ | 3,092,383 | | | | | |
Entities affiliated with BIOS Memory SPV I, LP(2) | | | | $ | 2,000,000 | | | | | |
| | Number of Shares | | |
| | | ||
| | | | |
Total | | | | |
| | | Per Share | | | Total | | ||||||||||||||||||
| | | Additional Shares | | | Additional Shares | | | Without Option to Purchase Additional Shares | | | With Option to Purchase Additional Shares | | ||||||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | ||||
Underwriting discounts and commissions (6%) | | | | $ | | | | | $ | | | | | $ | | ||||||||||
| | | $ | | | ||||||||||||||||||||
Proceeds to us, before expenses | | | | $ | | | | | $ | | | | | $ | | | | | $ | | | |
| | | As of December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 2,890 | | | | | $ | 5,189 | | |
Grant receivables | | | | | 2,662 | | | | | | 564 | | |
Prepaid expenses | | | | | 117 | | | | | | 544 | | |
Other receivables | | | | | 1,462 | | | | | | 588 | | |
Other current assets | | | | | 29 | | | | | | 23 | | |
Total current assets | | | | | 7,160 | | | | | | 6,908 | | |
Property and equipment, net | | | | | 299 | | | | | | 211 | | |
Total assets | | | | $ | 7,459 | | | | | $ | 7,119 | | |
Liabilities, Convertible Preferred Stock, and Stockholders’ Deficit | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | | 2,357 | | | | | | 2,003 | | |
Current portion of capital lease obligation | | | | | 4 | | | | | | — | | |
Accrued expenses | | | | | 1,321 | | | | | | 994 | | |
Other current liabilities | | | | | 1 | | | | | | 253 | | |
Total current liabilities | | | | | 3,683 | | | | | | 3,250 | | |
Paycheck protection program loan | | | | | — | | | | | | 443 | | |
Derivative liability | | | | | 1,493 | | | | | | 2,209 | | |
Warrant liability | | | | | 181 | | | | | | — | | |
Convertible notes, net | | | | | 6,897 | | | | | | 12,409 | | |
Accrued interest | | | | | 700 | | | | | | 1,622 | | |
Total liabilities | | | | | 12,954 | | | | | | 19,933 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Convertible preferred stock: | | | | | | | | | | | | | |
Series A convertible preferred stock, par value $0.001 per share, 3,067,519 shares authorized at December 31, 2019 and 2020, 2,819,027 shares issued and outstanding as of December 31, 2019 and 2020; liquidation preference of $4,766 as of December 31, 2020 | | | | | 4,413 | | | | | | 4,616 | | |
Series A-1 convertible preferred stock, par value $0.001 per share, 3,970,776 shares authorized at December 31, 2019 and 2020, 3,730,366 shares issued and outstanding as of December 31, 2019 and 2020; liquidation preference of $5,572 as of December 31, 2020 | | | | | 5,160 | | | | | | 5,398 | | |
Series A-2 convertible preferred stock, par value $0.001 per share, 3,565,063 shares authorized at December 31, 2019 and 2020, 3,565,063 shares issued and outstanding as of December 31, 2019 and 2020; liquidation preference of $5,997 as of December 31, 2020 | | | | | 5,552 | | | | | | 5,809 | | |
Series B convertible preferred stock, par value $0.001 per share, 30,450,000 shares authorized at December 31, 2019 and 2020, 30,409,890 shares issued and outstanding as of December 31, 2019 and 2020; liquidation preference of $40,826 as of December 31, 2020 | | | | | 37,802 | | | | | | 39,547 | | |
Total convertible preferred stock | | | | | 52,927 | | | | | | 55,370 | | |
Stockholders’ deficit: | | | | | | | | | | | | | |
Common stock, $0.001 par value, 58,000,000 shares authorized at December 31, 2019 and 2020; 1,519,431 and 1,742,756 shares issued and outstanding at December 31, 2019 and 2020, respectively | | | | | 2 | | | | | | 2 | | |
Additional paid-in capital | | | | | — | | | | | | 221 | | |
Accumulated deficit | | | | | (58,239) | | | | | | (68,220) | | |
Accumulated other comprehensive loss | | | | | (185) | | | | | | (187) | | |
Total stockholders’ deficit | | | | | (58,422) | | | | | | (68,184) | | |
Total liabilities, convertible preferred stock, and stockholders’ deficit | | | | $ | 7,459 | | | | | $ | 7,119 | | |
| | | For the Year Ended December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Operating Expenses: | | | | | | | | | | | | | |
Research and development | | | | $ | 14,379 | | | | | $ | 12,887 | | |
General and administrative | | | | | 3,452 | | | | | | 4,520 | | |
Total operating expenses | | | | | 17,831 | | | | | | 17,407 | | |
Loss from operations | | | | | (17,831) | | | | | | (17,407) | | |
Other income (expense): | | | | | | | | | | | | | |
Grant income | | | | | 13,164 | | | | | | 10,855 | | |
Change in the fair value of the derivative liability | | | | | (231) | | | | | | 18 | | |
Change in the fair value of the warrant liability | | | | | (7) | | | | | | 181 | | |
Other income, net | | | | | 1,087 | | | | | | 394 | | |
Loss on debt extinguishment | | | | | — | | | | | | (129) | | |
Interest expense, net | | | | | (1,024) | | | | | | (1,751) | | |
Total other income (expense), net | | | | | 12,989 | | | | | | 9,568 | | |
Net loss | | | | | (4,842) | | | | | | (7,839) | | |
Cumulative preferred stock dividends | | | | | (3,920) | | | | | | (4,234) | | |
Net loss attributable to common stockholders | | | | $ | (8,762) | | | | | $ | (12,073) | | |
Unrealized loss on foreign currency translation | | | | | (20) | | | | | | (2) | | |
Total comprehensive loss | | | | $ | (4,862) | | | | | $ | (7,841) | | |
Net loss per share attributable to common stockholders, basic and diluted | | | | $ | (5.77) | | | | | $ | (7.35) | | |
Weighted-average common shares outstanding, basic and diluted | | | | | 1,519,285 | | | | | | 1,643,514 | | |
| | | Series A Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A-2 Convertible Preferred Stock | | | Series B Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2018 | | | | | 2,819,027 | | | | | $ | 4,086 | | | | | | 3,730,366 | | | | | $ | 4,778 | | | | | | 3,565,063 | | | | | $ | 5,141 | | | | | | 30,409,890 | | | | | $ | 35,002 | | | | | | | 1,519,236 | | | | | $ | 2 | | | | | $ | — | | | | | $ | (49,838) | | | | | $ | (165) | | | | | $ | (50,001) | | |
Exercise of warrants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 195 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Equity-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 361 | | | | | | — | | | | | | — | | | | | | 361 | | |
Accretion of convertible preferred stock to redemption value | | | | | — | | | | | | 327 | | | | | | — | | | | | | 382 | | | | | | — | | | | | | 411 | | | | | | — | | | | | | 2,800 | | | | | | | — | | | | | | — | | | | | | (361) | | | | | | (3,559) | | | | | | — | | | | | | (3,920) | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (20) | | | | | | (20) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,842) | | | | | | — | | | | | | (4,842) | | |
Balances as of December 31, 2019 | | | | | 2,819,027 | | | | | | 4,413 | | | | | | 3,730,366 | | | | | | 5,160 | | | | | | 3,565,063 | | | | | | 5,552 | | | | | | 30,409,890 | | | | | | 37,802 | | | | | | | 1,519,431 | | | | | | 2 | | | | | | — | | | | | | (58,239) | | | | | | (185) | | | | | | (58,422) | | |
Exercise of common stock warrants | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 163,334 | | | | | | — | | | | | | 34 | | | | | | — | | | | | | — | | | | | | 34 | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 59,991 | | | | | | — | | | | | | 13 | | | | | | — | | | | | | — | | | | | | 13 | | |
Equity-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | ��� | | | — | | | | | | | — | | | | | | — | | | | | | 475 | | | | | | — | | | | | | — | | | | | | 475 | | |
Accretion of convertible preferred stock to redemption value | | | | | — | | | | | | 203 | | | | | | — | | | | | | 238 | | | | | | — | | | | | | 257 | | | | | | — | | | | | | 1,745 | | | | | | | — | | | | | | — | | | | | | (301) | | | | | | (2,142) | | | | | | — | | | | | | (2,443) | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | (2) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,839) | | | | | | — | | | | | | (7,839) | | |
Balances as of December 31, 2020 | | | | | 2,819,027 | | | | | $ | 4,616 | | | | | | 3,730,366 | | | | | $ | 5,398 | | | | | | 3,565,063 | | | | | $ | 5,809 | | | | | | 30,409,890 | | | | | $ | 39,547 | | | | | | | 1,742,756 | | | | | $ | 2 | | | | | $ | 221 | | | | | $ | (68,220) | | | | | $ | (187) | | | | | $ | (68,184) | | |
| | | For the Year Ended December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss | | | | $ | (4,842) | | | | | $ | (7,839) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 81 | | | | | | 98 | | |
Amortization of debt issuance costs | | | | | 30 | | | | | | 54 | | |
Amortization of debt discount | | | | | 464 | | | | | | 782 | | |
Change in the fair value of the derivative liability | | | | | 231 | | | | | | (18) | | |
Change in the fair value of the warrant liability | | | | | 7 | | | | | | (181) | | |
Loss on debt extinguishment | | | | | — | | | | | | 129 | | |
Equity-based compensation | | | | | 361 | | | | | | 475 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Grant receivables | | | | | (43) | | | | | | 2,097 | | |
Prepaid expenses and other current assets | | | | | (22) | | | | | | (417) | | |
Other receivables | | | | | (1,075) | | | | | | 904 | | |
Accounts payable | | | | | 862 | | | | | | (364) | | |
Accrued expenses and interest | | | | | 934 | | | | | | 595 | | |
Other current liabilities | | | | | (86) | | | | | | 252 | | |
Net cash used in operating activities | | | | | (3,098) | | | | | | (3,433) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Payments for property and equipment | | | | | (144) | | | | | | (10) | | |
Net cash used in investing activities | | | | | (144) | | | | | | (10) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Payments on capital lease obligation | | | | | (50) | | | | | | (4) | | |
Proceeds from the exercise of common stock warrants | | | | | — | | | | | | 34 | | |
Proceeds from the exercise of stock options | | | | | — | | | | | | 13 | | |
Proceeds from the paycheck protection program loan | | | | | — | | | | | | 443 | | |
Proceeds from the issuance of convertible notes | | | | | 2,878 | | | | | | 5,372 | | |
Debt issuance costs related to convertible notes | | | | | (34) | | | | | | (93) | | |
Net cash provided by financing activities | | | | | 2,794 | | | | | | 5,765 | | |
Effect of exchange rate changes on cash and cash equivalents | | | | | (60) | | | | | | (23) | | |
Net (decrease) increase in cash and cash equivalents | | | | | (508) | | | | | | 2,299 | | |
Cash and cash equivalents – beginning of period | | | | | 3,398 | | | | | | 2,890 | | |
Cash and cash equivalents – end of period | | | | $ | 2,980 | | | | | $ | 5,189 | | |
Supplemental disclosures of non-cash investing and financing activities: | | | | | | | | | | | | | |
Purchase of property and equipment in accrued expenses | | | | $ | 55 | | | | | $ | — | | |
Non-cash accretion of convertible preferred stock to redemption value | | | | $ | (3,920) | | | | | $ | (2,443) | | |
| | | As of December 31, 2019 | | |||||||||||||||||||||
| Quoted Priced in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total | | ||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds | | | | $ | 1,886 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,886 | | |
Total assets | | | | $ | 1,886 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,886 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | — | | | | | $ | — | | | | | $ | 1,493 | | | | | $ | 1,493 | | |
Warrant liability | | | | | — | | | | | | — | | | | | | 181 | | | | | | 181 | | |
Total liabilities | | | | $ | — | | | | | $ | — | | | | | $ | 1,674 | | | | | $ | 1,674 | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| Quoted Priced in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total | | ||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds | | | | $ | 2,853 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,853 | | |
Total assets | | | | $ | 2,853 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,853 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | — | | | | | $ | — | | | | | $ | 2,209 | | | | | $ | 2,209 | | |
Total liabilities | | | | $ | — | | | | | $ | — | | | | | $ | 2,209 | | | | | $ | 2,209 | | |
| | | Warrant Liability | | | Derivative Liability | | | Total | | |||||||||
Balance at December 31, 2018 | | | | $ | 174 | | | | | $ | 771 | | | | | $ | 945 | | |
Change in the fair value of the warrant liability | | | | | 7 | | | | | | — | | | | | | 7 | | |
Fair value recognized upon the issuance of Convertible Notes | | | | | — | | | | | | 491 | | | | | | 491 | | |
Change in the fair value of the derivative liability | | | | | — | | | | | | 231 | | | | | | 231 | | |
Balance at December 31, 2019 | | | | | 181 | | | | | | 1,493 | | | | | | 1,674 | | |
Change in the fair value of the warrant liability | | | | | (181) | | | | | | — | | | | | | (181) | | |
Fair value recognized upon the issuance of Convertible Notes | | | | | — | | | | | | 734 | | | | | | 734 | | |
Change in the fair value of the derivative liability | | | | | — | | | | | | (18) | | | | | | (18) | | |
Total liabilities | | | | $ | — | | | | | $ | 2,209 | | | | | $ | 2,209 | | |
| | | As of December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Equipment | | | | $ | 977 | | | | | $ | 987 | | |
Furniture and fixtures | | | | | 1 | | | | | | 1 | | |
Property and equipment, gross | | | | | 978 | | | | | | 988 | | |
Less: Accumulated depreciation | | | | | (679) | | | | | | (777) | | |
Property and equipment, net | | | | $ | 299 | | | | | $ | 211 | | |
| | | As of December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Employee compensation, benefits, and related accruals | | | | $ | 532 | | | | | $ | 732 | | |
Consulting and contracted research | | | | | 566 | | | | | | 143 | | |
Professional fees | | | | | 164 | | | | | | 114 | | |
Other accrued | | | | | 59 | | | | | | 5 | | |
Total | | | | $ | 1,321 | | | | | $ | 994 | | |
| | | As of December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Research and development incentive receivables | | | | $ | 1,364 | | | | | $ | 489 | | |
Other receivables | | | | | 98 | | | | | | 99 | | |
Total | | | | $ | 1,462 | | | | | $ | 588 | | |
| | | Year Ended December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Research and development incentive | | | | $ | 982 | | | | | $ | 474 | | |
Foreign currency loss | | | | | — | | | | | | (88) | | |
Other income, net | | | | | 105 | | | | | | 8 | | |
Total | | | | $ | 1,087 | | | | | $ | 394 | | |
| | | Operating Leases | | |||
2021 | | | | $ | 118 | | |
2022 | | | | | 118 | | |
2023 | | | | | 59 | | |
Total lease commitments | | | | $ | 295 | | |
| | | 2019 | | | 2020 | | ||||||
Convertible notes principal | | | | $ | 7,626 | | | | | $ | 12,998 | | |
Less: unamortized note issuance costs | | | | | (44) | | | | | | (45) | | |
Less: debt discount | | | | | (685) | | | | | | (544) | | |
| | | | $ | 6,897 | | | | | $ | 12,409 | | |
| | | 2019 | | | 2020 | | ||||||
Coupon interest | | | | $ | 574 | | | | | $ | 922 | | |
Issuance costs amortization | | | | | 30 | | | | | | 54 | | |
Discount amortization | | | | | 464 | | | | | | 782 | | |
| | | | $ | 1,068 | | | | | $ | 1,758 | | |
Class of Preferred | | | Preferred Stock Authorized | | | Preferred Stock Issued and Outstanding | | | Carrying Value | | | Liquidation Preference | | | Common Stock Issuable Upon Conversion | | |||||||||||||||
Series A Preferred Stock | | | | | 3,067,519 | | | | | | 2,819,027 | | | | | $ | 4,616 | | | | | $ | 4,766 | | | | | | 2,819,027 | | |
Series A-1 Preferred Stock | | | | | 3,970,776 | | | | | | 3,730,366 | | | | | | 5,398 | | | | | | 5,572 | | | | | | 3,730,366 | | |
Series A-2 Preferred Stock | | | | | 3,565,063 | | | | | | 3,565,063 | | | | | | 5,809 | | | | | | 5,997 | | | | | | 3,565,063 | | |
Series B Preferred Stock | | | | | 30,450,000 | | | | | | 30,409,890 | | | | | | 39,547 | | | | | | 40,826 | | | | | | 30,409,890 | | |
Total | | | | | 41,053,358 | | | | | | 40,524,346 | | | | | $ | 55,370 | | | | | $ | 57,161 | | | | | | 40,524,346 | | |
Number of Warrants | | | Exercise Price | | | Expiration Date | | |||
163,334 | | | | $ | 0.21 | | | | May 2021 | |
375,741 | | | | $ | 0.01 | | | | March 2023 | |
78,194 | | | | $ | 0.01 | | | | May 2023 | |
33,387 | | | | $ | 0.01 | | | | August 2023 | |
| | | 2019 | | | 2020 | | ||||||
Convertible preferred stock outstanding | | | | | 40,524,346 | | | | | | 40,524,346 | | |
Options issued and outstanding | | | | | 13,245,253 | | | | | | 14,839,637 | | |
Warrants for series A-1 preferred stock | | | | | 180,724 | | | | | | — | | |
Warrants for common stock | | | | | 813,990 | | | | | | 650,656 | | |
Total | | | | | 54,764,313 | | | | | | 56,014,639 | | |
| | | Year Ended December 31, | | |||||||||
| 2019 | | | 2020 | | ||||||||
Research and development | | | | $ | 175 | | | | | $ | 216 | | |
General and administrative | | | | | 186 | | | | | | 259 | | |
Total equity-based compensation | | | | $ | 361 | | | | | $ | 475 | | |
| | | Year Ended December 31, | | |||
| 2019 | | | 2020 | | ||
Fair value of common stock | | | $0.33 | | | $0.37 | |
Expected volatility | | | 88.92% – 97.50% | | | 101.35% – 109.34% | |
Risk-free interest rate | | | 1.43% – 2.50% | | | 0.27% – 1.60% | |
Dividend yield | | | 0.00% | | | 0.00% | |
Expected term (years) | | | 6.00 – 7.00 | | | 5.00 – 6.25 | |
| | | Options Outstanding | | |||||||||||||||||||||
| Number of Options | | | Weighted Average Exercise Price | | | Aggregate Intrinsic Value (in 000’s) | | | Weighted Average Remaining Contractual Life (in Years) | | ||||||||||||||
Balance, December 31, 2019 | | | | | 13,245,253 | | | | | $ | 0.28 | | | | | | | | | | | | | | |
Options granted | | | | | 4,029,807 | | | | | $ | 0.37 | | | | | | | | | | | | | | |
Options exercised | | | | | (59,991) | | | | | $ | 0.22 | | | | | | | | | | | | | | |
Options forfeited | | | | | (2,190,110) | | | | | $ | 0.26 | | | | | | | | | | | | | | |
Options expired | | | | | (185,322) | | | | | $ | 0.23 | | | | | | | | | | | | | | |
Balance, December 31, 2020 | | | | | 14,839,637 | | | | | $ | 0.30 | | | | | $ | 3,511 | | | | | | 7.8 | | |
Exercisable as of December 31, 2020 | | | | | 9,090,089 | | | | | $ | 0.27 | | | | | $ | 2,423 | | | | | | 6.4 | | |
Vested and expected to vest as of December 31, 2020 | | | | | 13,710,311 | | | | | $ | 0.30 | | | | | $ | 3,274 | | | | | | 7.7 | | |
| | | December 31, 2019 | | | December 31, 2020 | | ||||||
Convertible preferred stock (as converted) | | | | | 40,524,346 | | | | | | 40,524,346 | | |
Options issued and outstanding | | | | | 13,245,253 | | | | | | 14,839,637 | | |
Warrants for series A-1 preferred stock | | | | | 180,724 | | | | | | — | | |
Warrants for common stock | | | | | 813,990 | | | | | | 650,656 | | |
Total | | | | | 54,764,313 | | | | | | 56,014,639 | | |
| | | December 31, 2019 | | | December 31, 2020 | | ||||||
Net loss | | | | $ | (4,842) | | | | | $ | (7,839) | | |
Cumulative preferred stock dividends | | | | | (3,920) | | | | | | (4,234) | | |
Net loss attributable to common stockholders | | | | $ | (8,762) | | | | | $ | (12,073) | | |
Weighted-average common shares outstanding-basic and diluted | | | | | 1,519,285 | | | | | | 1,643,514 | | |
Total | | | | $ | (5.77) | | | | | $ | (7.35) | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Domestic | | | | $ | (3,489) | | | | | $ | (7,268) | | |
Foreign | | | | | (1,353) | | | | | | (571) | | |
Total | | | | $ | (4,842) | | | | | $ | (7,839) | | |
| | | Year Ended December 31, | | |||||||||
| | | 2019 | | | 2020 | | ||||||
Income tax computed at federal statutory rate | | | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit | | | | | 6.5% | | | | | | 7.1% | | |
Change in valuation allowance | | | | | (34.5%) | | | | | | (35.8%) | | |
R&D Credit | | | | | 10.5% | | | | | | 10.7% | | |
Interest expense | | | | | (2.0%) | | | | | | (3.2%) | | |
Equity-based compensation | | | | | (1.4%) | | | | | | (1.0%) | | |
Other | | | | | (0.1%) | | | | | | 1.2% | | |
Effective income tax rate | | | | | 0.0% | | | | | | 0.0% | | |
| | | December 31, 2019 | | | December 31, 2020 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards | | | | $ | 9,902 | | | | | $ | 11,060 | | |
Tax credit carryforwards | | | | | 2,397 | | | | | | 3,713 | | |
Equity-based compensation | | | | | 74 | | | | | | 291 | | |
Other | | | | | — | | | | | | 137 | | |
Deferred tax assets | | | | | 12,373 | | | | | | 15,201 | | |
Less: valuation allowance | | | | | (12,365) | | | | | | (15,179) | | |
Deferred tax assets after valuation allowance | | | | | 8 | | | | | | 22 | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Fixed assets | | | | | (8) | | | | | | (22) | | |
Deferred tax liabilities | | | | | (8) | | | | | | (22) | | |
Net deferred tax assets | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2020 | | | March 31, 2021 (Unaudited) | | ||||||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 5,189 | | | | | $ | 13,373 | | |
Grant receivables | | | | | 564 | | | | | | 1,675 | | |
Prepaid expenses | | | | | 544 | | | | | | 235 | | |
Other receivables | | | | | 588 | | | | | | 642 | | |
Other current assets | | | | | 23 | | | | | | 27 | | |
Total current assets | | | | | 6,908 | | | | | | 15,952 | | |
Deferred offering costs | | | | | — | | | | | | 372 | | |
Property and equipment, net | | | | | 211 | | | | | | 188 | | |
Total assets | | | | $ | 7,119 | | | | | $ | 16,512 | | |
Liabilities, Convertible Preferred Stock, and Stockholders’ Deficit | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable | | | | | 2,003 | | | | | | 3,187 | | |
Accrued expenses | | | | | 994 | | | | | | 1,151 | | |
Other current liabilities | | | | | 253 | | | | | | — | | |
Total current liabilities | | | | | 3,250 | | | | | | 4,338 | | |
Simple Agreements for Future Equity | | | | | — | | | | | | 8,942 | | |
Paycheck protection program loan | | | | | 443 | | | | | | — | | |
Derivative liability | | | | | 2,209 | | | | | | 1,146 | | |
Convertible notes, net | | | | | 12,409 | | | | | | 12,691 | | |
Accrued interest | | | | | 1,622 | | | | | | 1,879 | | |
Total liabilities | | | | | 19,933 | | | | | | 28,996 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Convertible preferred stock: | | | | | | | | | | | | | |
Series A convertible preferred stock, par value $0.001 per share, 3,067,519 shares authorized at December 31, 2020 and March 31, 2021; 2,819,027 shares issued and outstanding as of December 31, 2020 and March 31, 2021; liquidation preference of $4,860 as of March 31, 2021 | | | | | 4,616 | | | | | | 4,616 | | |
Series A-1 convertible preferred stock, par value $0.001 per share, 3,970,776 shares authorized at December 31, 2020 and March 31, 2021; 3,730,366 shares issued and outstanding as of December 31, 2020 and March 31, 2021; liquidation preference of $5,682 as of March 31, 2021 | | | | | 5,398 | | | | | | 5,398 | | |
Series A-2 convertible preferred stock, par value $0.001 per share, 3,565,063 shares authorized at December 31, 2020 and March 31, 2021; 3,565,063 shares issued and outstanding as of December 31, 2020 and March 31, 2021; liquidation preference of $6,115 as of March 31, 2021 | | | | | 5,809 | | | | | | 5,809 | | |
Series B convertible preferred stock, par value $0.001 per share, 30,450,000 shares authorized at December 31, 2020 and March 31, 2021; 30,409,890 shares issued and outstanding as of December 31, 2020 and March 31, 2021; liquidation preference of $41,632 as of March 31, 2021 | | | | | 39,547 | | | | | | 39,547 | | |
Total convertible preferred stock | | | | | 55,370 | | | | | | 55,370 | | |
Stockholders’ deficit: | | | | | | | | | | | | | |
Common stock, $0.001 par value, 58,000,000 shares authorized at December 31, 2020 and March 31, 2021; 1,742,756 and 1,809,998 shares issued and outstanding at December 31, 2020 and March 31, 2021, respectively | | | | | 2 | | | | | | 2 | | |
Additional paid-in capital | | | | | 221 | | | | | | 333 | | |
Accumulated deficit | | | | | (68,220) | | | | | | (67,997) | | |
Accumulated other comprehensive loss | | | | | (187) | | | | | | (192) | | |
Total stockholders’ deficit | | | | | (68,184) | | | | | | (67,854) | | |
Total liabilities, convertible preferred stock, and stockholders’ deficit | | | | $ | 7,119 | | | | | $ | 16,512 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2020 | | | 2021 | | ||||||
Operating Expenses: | | | | | | | | | | | | | |
Research and development | | | | $ | 3,446 | | | | | $ | 4,430 | | |
General and administrative | | | | | 1,445 | | | | | | 1,153 | | |
Total operating expenses | | | | | 4,891 | | | | | | 5,583 | | |
Loss from operations | | | | | (4,891) | | | | | | (5,583) | | |
Other income (expense): | | | | | | | | | | | | | |
Grant income | | | | | 2,273 | | | | | | 4,692 | | |
Change in the fair value of the derivative liability | | | | | 345 | | | | | | 1,063 | | |
Change in the fair value of the warrant liability | | | | | 30 | | | | | | — | | |
Other income, net | | | | | 142 | | | | | | 145 | | |
(Loss) gain on debt extinguishment | | | | | (129) | | | | | | 443 | | |
Interest expense, net | | | | | (276) | | | | | | (537) | | |
Total other income (expense), net | | | | | 2,385 | | | | | | 5,806 | | |
Net (loss) income | | | | | (2,506) | | | | | | 223 | | |
Cumulative preferred stock dividends | | | | | (1,053) | | | | | | (1,128) | | |
Net loss attributable to common stockholders | | | | $ | (3,559) | | | | | $ | (905) | | |
Unrealized loss on foreign currency translation | | | | | (114) | | | | | | (5) | | |
Total comprehensive (loss) income | | | | $ | (2,620) | | | | | $ | 218 | | |
Net loss per share attributable to common stockholders, basic and diluted | | | | $ | (2.34) | | | | | $ | (0.51) | | |
Weighted-average common shares outstanding, basic and diluted | | | | | 1,519,431 | | | | | | 1,779,573 | | |
| | | Series A Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A-2 Convertible Preferred Stock | | | Series B Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2019 | | | | | 2,819,027 | | | | | $ | 4,413 | | | | | | 3,730,366 | | | | | $ | 5,160 | | | | | | 3,565,063 | | | | | $ | 5,552 | | | | | | 30,409,890 | | | | | $ | 37,802 | | | | | | | 1,519,431 | | | | | $ | 2 | | | | | $ | — | | | | | $ | (58,239) | | | | | $ | (185) | | | | | $ | (58,422) | | |
Equity-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 125 | | | | | | — | | | | | | — | | | | | | 125 | | |
Accretion of convertible preferred stock to redemption value | | | | | — | | | | | | 88 | | | | | | — | | | | | | 102 | | | | | | — | | | | | | 111 | | | | | | — | | | | | | 752 | | | | | | | — | | | | | | — | | | | | | (125) | | | | | | (928) | | | | | | — | | | | | | (1,053) | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (114) | | | | | | (114) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,506) | | | | | | — | | | | | | (2,506) | | |
Balances as of March 31, 2020 | | | | | 2,819,027 | | | | | $ | 4,501 | | | | | | 3,730,366 | | | | | $ | 5,262 | | | | | | 3,565,063 | | | | | $ | 5,663 | | | | | | 30,409,890 | | | | | $ | 38,554 | | | | | | | 1,519,431 | | | | | $ | 2 | | | | | $ | — | | | | | $ | (61,673) | | | | | $ | (299) | | | | | $ | (61,970) | | |
| | | Series A Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A-2 Convertible Preferred Stock | | | Series B Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Loss | | | Total Stockholders’ Deficit | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2020 | | | | | 2,819,027 | | | | | $ | 4,616 | | | | | | 3,730,366 | | | | | $ | 5,398 | | | | | | 3,565,063 | | | | | $ | 5,809 | | | | | | 30,409,890 | | | | | $ | 39,547 | | | | | | | 1,742,756 | | | | | $ | 2 | | | | | $ | 221 | | | | | $ | (68,220) | | | | | $ | (187) | | | | | $ | (68,184) | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 67,242 | | | | | | — | | | | | | 14 | | | | | | — | | | | | | — | | | | | | 14 | | |
Equity-based compensation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 98 | | | | | | — | | | | | | — | | | | | | 98 | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5) | | | | | | (5) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | 223 | | | | | | — | | | | | | 223 | | |
Balances as of March 31, 2021 | | | | | 2,819,027 | | | | | $ | 4,616 | | | | | | 3,730,366 | | | | | $ | 5,398 | | | | | | 3,565,063 | | | | | $ | 5,809 | | | | | | 30,409,890 | | | | | $ | 39,547 | | | | | | | 1,809,998 | | | | | $ | 2 | | | | | $ | 333 | | | | | $ | (67,997) | | | | | $ | (192) | | | | | $ | (67,854) | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2020 | | | 2021 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net (loss) income | | | | $ | (2,506) | | | | | $ | 223 | | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 25 | | | | | | 23 | | |
Amortization of debt issuance costs | | | | | 6 | | | | | | 22 | | |
Amortization of debt discount | | | | | 121 | | | | | | 260 | | |
Change in the fair value of the derivative liability | | | | | (345) | | | | | | (1,063) | | |
Change in the fair value of the warrant liability | | | | | (30) | | | | | | — | | |
Loss (gain) on debt extinguishment | | | | | 129 | | | | | | (443) | | |
Equity-based compensation | | | | | 125 | | | | | | 98 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Grant receivables | | | | | 2,007 | | | | | | (1,111) | | |
Prepaid expenses and other current assets | | | | | (27) | | | | | | 305 | | |
Other receivables | | | | | 219 | | | | | | (63) | | |
Accounts payable | | | | | 311 | | | | | | 953 | | |
Accrued expenses and interest | | | | | 495 | | | | | | 277 | | |
Other current liabilities | | | | | — | | | | | | (253) | | |
Net cash provided by (used in) operating activities | | | | | 530 | | | | | | (772) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Payments for property and equipment | | | | | (10) | | | | | | — | | |
Net cash used in investing activities | | | | | (10) | | | | | | — | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Payments on capital lease obligation | | | | | (4) | | | | | | — | | |
Proceeds from the issuance of Simple Agreements for Future Equity | | | | | — | | | | | | 8,942 | | |
Proceeds from the exercise of stock options | | | | | — | | | | | | 14 | | |
Proceeds from the issuance of convertible notes | | | | | 3,841 | | | | | | — | | |
Debt issuance costs related to convertible notes | | | | | (55) | | | | | | — | | |
Net cash provided by financing activities | | | | | 3,782 | | | | | | 8,956 | | |
Effect of exchange rate changes on cash and cash equivalents | | | | | (34) | | | | | | — | | |
Net increase in cash and cash equivalents | | | | | 4,268 | | | | | | 8,184 | | |
Cash and cash equivalents, beginning of period | | | | | 2,890 | | | | | | 5,189 | | |
Cash and cash equivalents, end of period | | | | $ | 7,158 | | | | | $ | 13,373 | | |
Supplemental disclosures of non-cash financing activities: | | | | | | | | | | | | | |
Non-cash accretion of convertible preferred stock to redemption value | | | | $ | 1,053 | | | | | $ | — | | |
Accrued issuance costs related to Simple Agreements for Future Equity | | | | $ | — | | | | | $ | 31 | | |
Deferred offering costs included in accounts payable and accrued expenses | | | | $ | — | | | | | $ | 372 | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| Quoted Priced in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total | | ||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds | | | | $ | 2,853 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,853 | | |
Total assets | | | | $ | 2,853 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,853 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | — | | | | | $ | — | | | | | $ | 2,209 | | | | | $ | 2,209 | | |
Total liabilities | | | | $ | — | | | | | $ | — | | | | | $ | 2,209 | | | | | $ | 2,209 | | |
| | | As of March 31, 2021 | | |||||||||||||||||||||
| Quoted Priced in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Total | | ||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds | | | | $ | 11,795 | | | | | $ | — | | | | | $ | — | | | | | $ | 11,795 | | |
Total assets | | | | $ | 11,795 | | | | | $ | — | | | | | $ | — | | | | | $ | 11,795 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | — | | | | | $ | — | | | | | $ | 1,146 | | | | | $ | 1,146 | | |
Simple Agreements for Future Equity | | | | | — | | | | | | — | | | | | | 8,942 | | | | | | 8,942 | | |
Total liabilities | | | | $ | — | | | | | $ | — | | | | | $ | 10,088 | | | | | $ | 10,088 | | |
| | | Three Months Ended March 31, 2020 | | |||||||||||||||
| | | Warrant Liability | | | Derivative Liability | | | Total | | |||||||||
Balance at December 31, 2019 | | | | $ | 181 | | | | | $ | 1,493 | | | | | $ | 1,674 | | |
Fair value recognized upon the issuance of Convertible Notes | | | | | — | | | | | | 525 | | | | | | 525 | | |
Change in the fair value of the liability | | | | | (30) | | | | | | (345) | | | | | | (375) | | |
Total liabilities | | | | $ | 151 | | | | | $ | 1,673 | | | | | $ | 1,824 | | |
| | | Three Months Ended March 31, 2021 | | |||||||||||||||
| | | SAFE | | | Derivative Liability | | | Total | | |||||||||
Balance at December 31, 2020 | | | | $ | — | | | | | $ | 2,209 | | | | | $ | 2,209 | | |
Fair value recognized upon the issuance of SAFE | | | | | 8,942 | | | | | | — | | | | | | 8,942 | | |
Change in the fair value of the liability | | | | | — | | | | | | (1,063) | | | | | | (1,063) | | |
Total liabilities | | | | $ | 8,942 | | | | | $ | 1,146 | | | | | $ | 10,088 | | |
| | | December 31, 2020 | | | March 31, 2021 | | ||||||
Employee compensation, benefits, and related accruals | | | | $ | 732 | | | | | $ | 722 | | |
Consulting and contracted research | | | | | 143 | | | | | | 197 | | |
Professional fees | | | | | 119 | | | | | | 232 | | |
Total | | | | $ | 994 | | | | | $ | 1,151 | | |
| | | Operating Leases | | |||
2021 | | | | $ | 89 | | |
2022 | | | | | 118 | | |
2023 | | | | | 59 | | |
Total lease commitments | | | | $ | 266 | | |
| | | December 31, 2020 | | | March 31, 2021 | | ||||||
Convertible notes principal | | | | $ | 12,998 | | | | | $ | 12,998 | | |
Less: unamortized note issuance costs | | | | | (45) | | | | | | (23) | | |
Less: debt discount | | | | | (544) | | | | | | (284) | | |
| | | | $ | 12,409 | | | | | $ | 12,691 | | |
| | | 2020 | | | 2021 | | ||||||
Coupon interest | | | | $ | 153 | | | | | $ | 257 | | |
Issuance costs amortization | | | | | 6 | | | | | | 22 | | |
Discount amortization | | | | | 121 | | | | | | 260 | | |
| | | | $ | 280 | | | | | $ | 539 | | |
Class of Preferred | | | Preferred Stock Authorized | | | Preferred Stock Issued and Outstanding | | | Carrying Value | | | Liquidation Preference | | | Common Stock Issuable Upon Conversion | | |||||||||||||||
Series A Preferred Stock | | | | | 3,067,519 | | | | | | 2,819,027 | | | | | $ | 4,616 | | | | | $ | 4,766 | | | | | | 2,819,027 | | |
Series A-1 Preferred Stock | | | | | 3,970,776 | | | | | | 3,730,366 | | | | | | 5,398 | | | | | | 5,572 | | | | | | 3,730,366 | | |
Series A-2 Preferred Stock | | | | | 3,565,063 | | | | | | 3,565,063 | | | | | | 5,809 | | | | | | 5,997 | | | | | | 3,565,063 | | |
Series B Preferred Stock | | | | | 30,450,000 | | | | | | 30,409,890 | | | | | | 39,547 | | | | | | 40,826 | | | | | | 30,409,890 | | |
Total | | | | | 41,053,358 | | | | | | 40,524,346 | | | | | $ | 55,370 | | | | | $ | 57,161 | | | | | | 40,524,346 | | |
Class of Preferred | | | Preferred Stock Authorized | | | Preferred Stock Issued and Outstanding | | | Carrying Value | | | Liquidation Preference | | | Common Stock Issuable Upon Conversion | | |||||||||||||||
Series A Preferred Stock | | | | | 3,067,519 | | | | | | 2,819,027 | | | | | $ | 4,616 | | | | | $ | 4,860 | | | | | | 2,819,027 | | |
Series A-1 Preferred Stock | | | | | 3,970,776 | | | | | | 3,730,366 | | | | | | 5,398 | | | | | | 5,682 | | | | | | 3,730,366 | | |
Series A-2 Preferred Stock | | | | | 3,565,063 | | | | | | 3,565,063 | | | | | | 5,809 | | | | | | 6,115 | | | | | | 3,565,063 | | |
Series B Preferred Stock | | | | | 30,450,000 | | | | | | 30,409,890 | | | | | | 39,547 | | | | | | 41,632 | | | | | | 30,409,890 | | |
Total | | | | | 41,053,358 | | | | | | 40,524,346 | | | | | $ | 55,370 | | | | | $ | 58,289 | | | | | | 40,524,346 | | |
Number of Warrants | | | Exercise Price | | | Expiration Date | | |||
163,334 | | | | $ | 0.21 | | | | May 2021 | |
375,741 | | | | $ | 0.01 | | | | March 2023 | |
78,194 | | | | $ | 0.01 | | | | May 2023 | |
33,387 | | | | $ | 0.01 | | | | August 2023 | |
| | | December 31, 2020 | | | March 31, 2021 | | ||||||
Convertible preferred stock (as converted) | | | | | 40,524,346 | | | | | | 40,524,346 | | |
Options issued and outstanding | | | | | 14,839,637 | | | | | | 14,414,342 | | |
Warrants for common stock | | | | | 650,656 | | | | | | 650,656 | | |
Total | | | | | 56,014,639 | | | | | | 55,589,344 | | |
| | | Three Months Ended March 31, | | |||||||||
| 2020 | | | 2021 | | ||||||||
Research and development | | | | $ | 52 | | | | | $ | 21 | | |
General and administrative | | | | | 73 | | | | | | 77 | | |
Total equity-based compensation | | | | $ | 125 | | | | | $ | 98 | | |
| | | Three Months Ended March 31, | | |||
| 2020 | | | 2021 | | ||
Fair value of common stock | | | $0.37 | | | $0.54 | |
Expected volatility | | | 104.60% – 109.34% | | | 101.38% – 101.83% | |
Risk-free interest rate | | | 0.38% – 1.60% | | | 0.67% – 0.84% | |
Dividend yield | | | 0.00% | | | 0.00% | |
Expected term (years) | | | 5.00 – 6.08 | | | 6.07 – 6.22 | |
| | | Options Outstanding | | |||||||||||||||||||||
| Number of Options | | | Weighted Average Exercise Price | | | Aggregate Intrinsic Value (in 000’s) | | | Weighted Average Remaining Contractual Life (in Years) | | ||||||||||||||
Balance, December 31, 2020 | | | | | 14,839,637 | | | | | $ | 0.30 | | | | | | | | | | | | | | |
Options granted | | | | | 180,000 | | | | | $ | 0.54 | | | | | | | | | | | | | | |
Options exercised | | | | | (67,242) | | | | | $ | 0.21 | | | | | | | | | | | | | | |
Options forfeited | | | | | (390,215) | | | | | $ | 0.33 | | | | | | | | | | | | | | |
Options expired | | | | | (147,838) | | | | | $ | 0.24 | | | | | | | | | | | | | | |
Balance, March 31, 2021 | | | | | 14,414,342 | | | | | $ | 0.31 | | | | | $ | 3,371 | | | | | | 7.6 | | |
Exercisable as of March 31, 2021 | | | | | 8,939,321 | | | | | $ | 0.27 | | | | | $ | 2,391 | | | | | | 6.2 | | |
Vested and expected to vest as of March 31, 2021 | | | | | 13,285,016 | | | | | $ | 0.30 | | | | | $ | 3,134 | | | | | | 7.5 | | |
| | | December 31, 2020 | | | March 31, 2021 | | ||||||
Convertible preferred stock (as converted) | | | | | 40,524,346 | | | | | | 40,524,346 | | |
Options issued and outstanding | | | | | 14,839,637 | | | | | | 14,414,342 | | |
Warrants for common stock | | | | | 650,656 | | | | | | 650,656 | | |
Total | | | | | 56,014,639 | | | | | | 55,589,344 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2020 | | | 2021 | | ||||||
Net (loss) income | | | | $ | (2,506) | | | | | $ | 223 | | |
Cumulative preferred stock dividends | | | | | (1,053) | | | | | | (1,128) | | |
Net loss attributable to common stockholders | | | | $ | (3,559) | | | | | $ | (905) | | |
Weighted-average common shares outstanding-basic and diluted | | | | | 1,519,431 | | | | | | 1,779,573 | | |
Total | | | | $ | (2.34) | | | | | $ | (0.51) | | |
Item | | | Amount | | |||
SEC registration fee | | | | $ | 5,455 | | |
FINRA filing fee | | | | | 8,000 | | |
Nasdaq Stock Market listing fee | | | | | * | | |
Printing expenses | | | | | * | | |
Legal fees and expenses | | | | | * | | |
Accounting fees and expenses | | | | | * | | |
Blue Sky, qualification fees and expenses | | | | | * | | |
Transfer agent fees and expenses | | | | | * | | |
Miscellaneous expenses | | | | | * | | |
Total | | | | $ | * | | |
Item | | | Amount | | |||
SEC registration fee | | | | $ | 1,267 | | |
FINRA filing fee | | | | | 4,813 | | |
Legal fees and expenses | | | | | 150,000 | | |
Accounting fees and expenses | | | | | 60,000 | | |
Printing expenses | | | | | 30,000 | | |
Miscellaneous expenses | | | | | 3,920 | | |
Total | | | | $ | 250,000 | | |
| Exhibit number | | | Exhibit description | |
1.1* | | | | ||
| 3.1 | | | ||
| |||||
3.2 | | | | ||
4.1 | | | |||
| |||||
4.2 | | | | ||
| 5.1* | | | | |
10.1• | | | | ||
| 10.2 | | | | |
| 10.3 | | | | |
| 10.4 | | | | |
| 10.5 | | | | |
| 10.6 | | | Office Lease dated July 1, 2021, by and between the Registrant and 2500/2700 Westchester Avenue Owner SPE | |
| 10.7• | | | | |
| 10.8• | | | | |
| 10.9• | | | | |
| 10.10• | | | | |
| 10.11• | | | | |
| 10.12• | | | | |
| 10.13• | | | |
| Exhibit number | | | Exhibit description | |
| |||||
10.14• | | | | ||
| 10.15• | | | ||
| |||||
| 10.16• | | | Form of Restrictive Covenant Agreement (incorporated by reference to exhibit 10.21 to the Company’s Registration Statement on Form S-1 (File No. 333-257999) dated July 29, 2021). | |
| 10.17• | | | | |
10.18 | | | |||
| |||||
10.19 | | | | ||
10.20 | | | | ||
10.21 | | | | ||
10.22 | | | | ||
10.23 | | | | ||
10.24 | | | | ||
10.25 | | | | ||
10.26 | | | | ||
10.27 | | | | ||
10.28 | | | | ||
10.29* | | | | ||
| 21.1 | | | Subsidiaries of Cognition Therapeutics, Inc. (incorporated by reference to exhibit 21.1 of the Company’s Annual Report on Form 10-K filed on March 30, 2022). | |
| 23.1* | | | Consent of Ernst & Young LLP, an Independent Registered Public Accounting Firm. | |
23.2* | | | Consent of Troutman Pepper Hamilton Sanders LLP (included in Exhibit 5.1). | |
| Exhibit number | | | Exhibit description | |
| | | |||
| 107* | | | |
| Signature | | | Title | | | Date | |
| /s/ Lisa Ricciardi Lisa Ricciardi | | | Chief Executive Officer, President and Director (Principal Executive | | | | |
| /s/ | | | Interim Chief Financial Officer (Principal Financial and Accounting | | | | |
| /s/ Jack A. Khattar Jack A. Khattar | | | Director (Chairman of the Board) | | | ||
| ||||||||
| /s/ Aaron G. L. Fletcher, Ph.D. Aaron G. L. Fletcher, Ph.D. | | | Director | | | | |
| /s/ Brett P. Monia, Ph.D. Brett P. Monia, Ph.D. | | | Director | | | | |
| /s/ | | | Director | | | | |
| /s/ Peggy Wallace Peggy Wallace | | | Director | | | |