Immunic (IMUX) 10-Q 3 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-36201
Entity Registrant Name	Immunic, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	56-2358443
Entity Address, Address Line One	1200 Avenue of the Americas
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10036
City Area Code	332
Local Phone Number	255-9818
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	IMUX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		39,261,547
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001280776

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 72,771	$ 86,863
Other current assets and prepaid expenses	13,878	18,125
Total current assets	86,649	104,988
Property and equipment, net	159	152
Goodwill	32,970	32,970
Right-of-use assets, net	1,263	948
Other long-term assets	42	42
Total assets	121,083	139,100
Current liabilities:
Accounts payable	4,172	3,745
Accrued expenses	6,623	7,071
Other current liabilities	719	585
Total current liabilities	11,514	11,401
Long term liabilities
Operating lease liabilities	759	584
Total long-term liabilities	759	584
Total liabilities	12,273	11,985
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 20,000,000 authorized and no shares issued or outstanding at September 30, 2022 and December 31, 2021	0	0
Common stock, $0.0001 par value; 130,000,000 shares authorized and 30,564,995 and 26,335,418 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	3	3
Additional paid-in capital	369,999	324,237
Accumulated other comprehensive loss	(386)	(252)
Accumulated deficit	(260,806)	(196,873)
Total stockholders’ equity	108,810	127,115
Total liabilities and stockholders’ equity	$ 121,083	$ 139,100

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	130,000,000	130,000,000
Common stock, shares issued (in shares)	30,564,995	26,335,418
Common stock, shares outstanding (in shares)	30,564,995	26,335,418

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating expenses:
Research and development	$ 16,537	$ 15,480	$ 50,520	$ 42,737
General and administrative	3,579	2,907	11,641	9,957
4SC Royalty Settlement (see Note 4)	0	0	0	17,250
Total operating expenses	20,116	18,387	62,161	69,944
Loss from operations	(20,116)	(18,387)	(62,161)	(69,944)
Other income (expense):
Interest income	230	10	343	51
Other income (expense), net	(1,338)	(915)	(2,115)	(1,867)
Total other expense	(1,108)	(905)	(1,772)	(1,816)
Net loss	$ (21,224)	$ (19,292)	$ (63,933)	$ (71,760)
Net loss per share, basic (in dollars per share)	$ (0.69)	$ (0.76)	$ (2.16)	$ (3.33)
Net loss per share, diluted (in dollars per share)	$ (0.69)	$ (0.76)	$ (2.16)	$ (3.33)
Weighted-average common shares outstanding, basic (in shares)	30,564,995	25,320,091	29,655,946	21,559,964
Weighted-average common shares outstanding, diluted (in shares)	30,564,995	25,320,091	29,655,946	21,559,964

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (21,224)	$ (19,292)	$ (63,933)	$ (71,760)
Other comprehensive income (loss):
Foreign currency translation	274	598	(134)	3,312
Total comprehensive loss	$ (20,950)	$ (18,694)	$ (64,067)	$ (68,448)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	July 2021 Equity Issuance	Public Offering	4SC Royalty Settlement	Common Stock	Common Stock July 2021 Equity Issuance	Common Stock Public Offering	Common Stock 4SC Royalty Settlement	Additional Paid-In Capital	Additional Paid-In Capital July 2021 Equity Issuance	Additional Paid-In Capital Public Offering	Additional Paid-In Capital 4SC Royalty Settlement	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020					21,168,240
Beginning balance at Dec. 31, 2020	$ 158,785				$ 2				$ 266,823				$ (4,112)	$ (103,928)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(34,534)													(34,534)
Stock-based compensation	1,579								1,579
Foreign exchange translation adjustment	2,991												2,991
Ending balance (in shares) at Mar. 31, 2021					21,749,439
Ending balance at Mar. 31, 2021	137,446				$ 2				277,027				(1,121)	(138,462)
Beginning balance (in shares) at Dec. 31, 2020					21,168,240
Beginning balance at Dec. 31, 2020	158,785				$ 2				266,823				(4,112)	(103,928)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(71,760)
Ending balance (in shares) at Sep. 30, 2021					26,249,439
Ending balance at Sep. 30, 2021	145,465				$ 3				321,950				(800)	(175,688)
Beginning balance (in shares) at Mar. 31, 2021					21,749,439
Beginning balance at Mar. 31, 2021	137,446				$ 2				277,027				(1,121)	(138,462)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(17,934)													(17,934)
Stock-based compensation	1,507								1,507
Foreign exchange translation adjustment	(277)												(277)
Issuance of common stock (in shares)								581,199
Issuance of common stock				$ 8,625								$ 8,625
Ending balance (in shares) at Jun. 30, 2021					21,749,439
Ending balance at Jun. 30, 2021	120,742				$ 2				278,534				(1,398)	(156,396)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(19,292)													(19,292)
Stock-based compensation	1,397								1,397
Foreign exchange translation adjustment	598												598
Issuance of common stock (in shares)						4,500,000
Issuance of common stock		$ 42,020				$ 1				$ 42,019
Ending balance (in shares) at Sep. 30, 2021					26,249,439
Ending balance at Sep. 30, 2021	$ 145,465				$ 3				321,950				(800)	(175,688)
Beginning balance (in shares) at Dec. 31, 2021	26,335,418				26,335,418
Beginning balance at Dec. 31, 2021	$ 127,115				$ 3				324,237				(252)	(196,873)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(20,808)													(20,808)
Stock-based compensation	2,069								2,069
Foreign exchange translation adjustment	(58)												(58)
Issuance of common stock (in shares)					852		2,904,113
Issuance of common stock	5		$ 29,638						5		$ 29,638
Ending balance (in shares) at Mar. 31, 2022					29,240,383
Ending balance at Mar. 31, 2022	$ 137,961				$ 3				355,949				(310)	(217,681)
Beginning balance (in shares) at Dec. 31, 2021	26,335,418				26,335,418
Beginning balance at Dec. 31, 2021	$ 127,115				$ 3				324,237				(252)	(196,873)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (63,933)
Ending balance (in shares) at Sep. 30, 2022	30,564,995				30,564,995
Ending balance at Sep. 30, 2022	$ 108,810				$ 3				369,999				(386)	(260,806)
Beginning balance (in shares) at Mar. 31, 2022					29,240,383
Beginning balance at Mar. 31, 2022	137,961				$ 3				355,949				(310)	(217,681)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(21,901)													(21,901)
Stock-based compensation	2,062								2,062
Foreign exchange translation adjustment	(350)												(350)
Issuance of common stock (in shares)					24,612		1,300,000
Issuance of common stock	130		$ 9,946						130		$ 9,946
Ending balance (in shares) at Jun. 30, 2022					30,564,995
Ending balance at Jun. 30, 2022	127,848				$ 3				368,087				(660)	(239,582)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(21,224)													(21,224)
Stock-based compensation	1,912								1,912
Foreign exchange translation adjustment	$ 274												274
Ending balance (in shares) at Sep. 30, 2022	30,564,995				30,564,995
Ending balance at Sep. 30, 2022	$ 108,810				$ 3				$ 369,999				$ (386)	$ (260,806)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders’ Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2022	Mar. 31, 2022
Issuance costs	$ 308	$ 918

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (63,933)	$ (71,760)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	58	45
Unrealized foreign currency loss	4,217	3,202
Stock-based compensation	6,043	4,483
Common Stock issued in connection with the 4SC royalty settlement (see Note 4)	0	8,625
Changes in operating assets and liabilities:
Other current assets and prepaid expenses	2,061	(6,305)
Accounts payable	1,151	(261)
Accrued expenses	465	2,760
Other liabilities	(102)	(341)
Net cash used in operating activities	(50,040)	(59,552)
Cash flows from investing activities:
Purchases of property and equipment	(113)	(48)
Net cash used in investing activities	(113)	(48)
Cash flows from financing activities:
Proceeds from exercise of stock options	5	0
Proceeds from shares issued in connection with the Company's employee stock purchase plan	130	0
Net cash provided by financing activities	39,719	42,020
Effect of exchange rate changes on cash and cash equivalents	(3,658)	572
Net change in cash and cash equivalents	(14,092)	(17,008)
Cash and cash equivalents, beginning of period	86,863	127,452
Cash and cash equivalents, end of period	72,771	110,444
Supplemental disclosure of noncash investing and financing activities:
Common Stock issued in connection with the 4SC royalty settlement (see Note 4)	0	8,625
Operating lease right-of use asset obtained in exchange for lease obligation	0	435
Public Offering
Cash flows from financing activities:
Proceeds from Issuance of Common Stock	39,584	0
July 2021 Public Equity Offering
Cash flows from financing activities:
Proceeds from Issuance of Common Stock	$ 0	$ 42,020

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
July 2021 Public Equity Offering
Issuance costs	$ 2,980

Description of Business and Bas

Description of Business and Basis of Financial Statements	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Description of Business and Basis of Financial Statements	Description of Business and Basis of Financial Statements Description of Business Immunic, Inc. ("Immunic" or the "Company") is a clinical-stage biopharmaceutical company with a pipeline of selective oral immunology therapies focused on treating chronic inflammatory and autoimmune diseases. The Company is headquartered in New York City with its main operations in Gräfelfing near Munich, Germany. The Company currently has approximately 65 employees. The Company is currently pursuing three development programs. These include the vidofludimus calcium (IMU-838) program, which is focused on the development of oral formulations of a small molecule inhibitor of the enzyme dihydroorotate dehydrogenase (“DHODH”); the IMU-935 program, which is focused on an inverse agonist of retinoic acid receptor-related orphan nuclear receptor gamma truncated (“RORγt”), an immune cell-specific isoform of RORγ; and the IMU-856 program, which involves the development of a drug targeting the restoration of intestinal barrier function and regeneration of bowel epithelium. These product candidates are being developed to address diseases such as multiple sclerosis ("MS"), psoriasis and gastrointestinal diseases. The Company’s business, operating results, financial condition and growth prospects are subject to significant risks and uncertainties, including the failure of its clinical trials to meet their endpoints, failure to obtain regulatory approval and the inability to obtain on acceptable terms, if at all, additional funding to complete the development and commercialization of the Company's three development programs. Liquidity and Financial Condition Immunic has no products approved for commercial sale and has not generated any revenue from product sales. It has never been profitable and has incurred operating losses in each year since inception in 2016. The Company has an accumulated deficit of approximately $260.8 million as of September 30, 2022 and $196.9 million as of December 31, 2021. Substantially all of Immunic's operating losses resulted from expenses incurred in connection with its research and development programs and from general and administrative costs associated with its operations. Immunic expects to incur significant expenses and increasing operating losses for the foreseeable future as it initiates and continues the preclinical and clinical development of its product candidates and adds personnel necessary to advance its clinical pipeline of product candidates. Immunic expects that its operating losses will fluctuate significantly from quarter-to-quarter and year-to-year due to timing of clinical development programs. From inception through October 31, 2022, Immunic has raised net cash of approximately $355.5 million from private and public offerings of preferred and common stock. As of September 30, 2022, the Company had cash and cash equivalents of approximately $72.8 million. With these funds, and the $56.4 million of cash raised in October 2022, Immunic expects to be able to fund its operations beyond twelve months from the date of the issuance of the accompanying condensed consolidated financial statements. Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles, ("U.S. GAAP") and include the accounts of Immunic and its wholly-owned subsidiaries, Immunic AG (which began operations in 2016) and Immunic Research GmbH (which began operations in 2016 and was merged into Immunic AG in September, 2022) and Immunic Australia Pty Ltd. (which began operations in 2018). All intercompany accounts and transactions have been eliminated in consolidation. Immunic manages its operations as a single reportable segment for the purposes of assessing performance and making operating decisions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements. The most significant estimates in the Company’s financial statements and accompanying notes relate to clinical trial expenses and share-based compensation. Management believes its estimates to be reasonable under the circumstances. Actual results could differ materially from those estimates and assumptions. Foreign Currency Translation and Presentation The Company’s reporting currency is United States (“U.S.”) dollars. Immunic AG and Immunic Research GmbH’s operations are located in Germany with the euro being their functional currency. Immunic Australia Pty Ltd.’s functional currency is the Australian dollar. All amounts in the financial statements where the functional currency is not the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: • assets and liabilities at reporting period-end rates; • income statement accounts at average exchange rates for the reporting period; and • components of equity at historical rates. Gains and losses from translation of the financial statements into U.S. dollars are recorded in stockholders’ equity as a component of accumulated other comprehensive income (loss). Realized and unrealized gains and losses resulting from foreign currency transactions denominated in currencies other than the functional currency are reflected as general and administrative expenses in the Consolidated Statements of Operations. Foreign currency transaction gains and losses related to long-term intercompany loans that are payable in the foreseeable future are recorded in Other Income (Expense). The Consolidated Statements of Cash Flows were prepared by using the average exchange rate in effect during the reporting period which reasonably approximates the timing of the cash flows. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on hand and deposits in banks located in the U.S., Germany and Australia. The Company maintains cash and cash equivalent balances denominated in Euro and U.S. dollars with major financial institutions in the U.S. and Germany in excess of the deposit limits insured by the government. Management periodically reviews the credit standing of these financial institutions and believes that the Company is not exposed to any significant credit risk. The Company currently deposits its cash and cash equivalents with two large financial institutions. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 1 assets consisted of money market funds for the periods presented. The Company had no Level 1 liabilities for the periods presented. Level 2— Inputs other than observable quoted prices for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. The Company had no Level 2 assets or liabilities for the periods presented. Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. The Company had no Level 3 assets or liabilities for the periods presented. The carrying value of cash and cash equivalents, other current assets and prepaid expenses, accounts payable, accrued expenses, and other current liabilities approximates fair value due to the short period of time to maturity. Property and Equipment Property and equipment is stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the assets, which range from three Impairment of Long-Lived Assets The Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Impaired assets are then recorded at their estimated fair value. There were no impairment losses during the three and nine months ended September 30, 2022 and 2021. Goodwill Business combinations are accounted for under the acquisition method. The total purchase price of an acquisition is allocated to the underlying identifiable net assets, based on their respective estimated fair values as of the acquisition date. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, probabilities of success, discount rates, and asset lives, among other items. Assets acquired and liabilities assumed are recorded at their estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Goodwill is tested for impairment at the reporting unit level annually in the fourth quarter, or more frequently when events or changes in circumstances indicate that the asset might be impaired. Examples of such events or circumstances include, but are not limited to, an unfavorable clinical trial result, a significant adverse change in legal or business climate, industry market conditions, an adverse regulatory action, sustained decrease in stock price or unanticipated competition. When conducting the Company’s interim goodwill impairment assessment, we considered the Company’s history of reported losses and negative cash flows from operating activities, along with the downturn in macroeconomic conditions and the broader mid-cap and micro-cap equity markets in 2022. Given the period of time between the commencement of the downturn in macroeconomic and general equity market conditions as of September 30, 2022, management believes that the fluctuation in prices of our common stock, consistent with the broader market, is not other-than-temporary and not indicative of any fundamental change in the value or prospects of the underlying business as of the measurement date. As another data point, the Company also performed a quantitative goodwill impairment analysis comparing the estimated fair value of the Company’s reporting unit to its carrying or book value as of the current period presented herein. In performing the quantitative analysis, the Company compared the fair value of the reporting unit to its carrying or book value to determine if the fair value of the reporting unit exceeded its carrying value as of the testing date, in which case the standard indicates that goodwill would not be impaired, and no further testing was necessary. The fair value of a reporting unit refers to the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants at the measurement date. Quoted market prices in active markets are considered to be the best evidence of fair value and should be used as the basis for fair value measurement, if available. When using quoted market prices to estimate the fair value of a reporting unit, we consider all available evidence. In certain circumstances, such as a distressed market, it may be appropriate to consider recent trends in the Company’s stock price, instead of a single day’s stock price in evaluating fair value. In these circumstances, averages over relatively short periods of time are used to determine representative market values. Subsequent to September 30, 2022, the company raised $60 million of common stock at a premium to the company's market pricing. Management further considered this as an indication of the value and related premium to market values prior to and as of September 30, 2022. Based on this qualitative analysis, the Company concluded that goodwill was not “more likely than not” impaired as of September 30, 2022. On October 20, 2022, the Company announced the outcome of a significant interim analysis of its Phase 1b clinical trial of IMU-935 in patients with moderate-to-severe psoriasis that were not deemed positive progress. On October 21, 2022, the Company experienced a significant decrease in the Company's market capitalization. The Company considered this to be a triggering event indicating that it is more likely than not that goodwill is impaired. As a result, the Company anticipates it will incur an approximately $33.0 million goodwill impairment charge in the fourth quarter of 2022 as a result of this analysis (See Note 10). Research and Development Expenses These costs primarily include external development expenses and internal personnel expenses for the three development programs, vidofludimus calcium, IMU-935 and IMU-856. Immunic has spent the majority of its research and development resources on vidofludimus calcium, the Company's lead development program for clinical trials in RRMS, UC and COVID-19. Research and development expenses consist of expenses incurred in research and development activities, which include clinical trials, contract research services, certain milestone payments, salaries and related employee benefits, allocated facility costs and other outsourced services. Research and development expenses are charged to operations as incurred. The Company enters into agreements with contract research organizations (“CROs”) to provide clinical trial services for individual studies and projects by executing individual work orders governed by a Master Service Arrangement (“MSA”). The MSAs and associated work orders provide for regular recurrent payments and payments upon the completion of certain milestones. The Company regularly assesses the timing of payments against actual costs incurred to ensure a proper accrual of related expenses in the appropriate accounting period. Collaboration Arrangements Certain collaboration and license agreements may include payments to or from the Company of one or more of the following: non-refundable or partially refundable upfront or license fees; development, regulatory and commercial milestone payments; payment for manufacturing supply services; partial or complete reimbursement of research and development costs; and royalties on net sales of licensed products. The Company assesses whether such contracts are within the scope of Financial Accounting Standards Board (FASB) Accounting Standards Update (“ASU”) 2014-09 “ Revenue from Contracts with Customers ” and ASU No. 2018-18, “ Collaborative Arrangements” ("ASU 2018-18"). ASU 2018-18, clarifies that certain elements of collaborative arrangements could qualify as transactions with customers in the scope of ASC 606. In October 2018, the Company entered into an option and license agreement (the "Daiichi Sankyo Agreement") with Daiichi Sankyo Co., Ltd. ("Daiichi Sankyo") which granted the Company the right to license a group of compounds, designated by the Company as IMU-856, as a potential new oral treatment option for gastrointestinal diseases such as celiac disease, inflammatory bowel disease, irritable bowel syndrome with diarrhea and other barrier function associated diseases. During the option period, the Company performed agreed upon research and development activities for which it was reimbursed by Daiichi Sankyo up to a maximum agreed-upon limit. Such reimbursement was recorded as other income. There are no additional research and development reimbursements expected under this agreement. On January 5, 2020, the Company exercised its option to obtain the exclusive worldwide right to commercialization of IMU-856. Among other things, the option exercise grants Immunic AG the rights to Daiichi Sankyo’s patent application related to IMU-856, for which the Company received a notice of allowance from the US Patent & Trademark Office in August 2022. In connection with the option exercise, the Company paid a one-time upfront licensing fee to Daiichi Sankyo. Under the Daiichi Sankyo Agreement, Daiichi Sankyo is also eligible to receive future development, regulatory and sales milestone payments, as well as royalties related to IMU-856. General and Administrative Expenses General and administrative expenses consist primarily of salaries and related costs for personnel in executive, finance, business development and other support functions. Other general and administrative expenses include, but are not limited to, stock-based compensation, insurance costs, professional fees for legal, accounting and tax services, consulting, related facility costs and travel. Stock-Based Compensation The Company measures the cost of employee and non-employee services received in exchange for equity awards based on the grant-date fair value of the award recognized generally as an expense (i) on a straight-line basis over the requisite service period for those awards whose vesting is based upon a service condition, and (ii) on an accelerated method for awards whose vesting is based upon a performance condition, but only to the extent it is probable that the performance condition will be met. Stock-based compensation is (i) estimated at the date of grant based on the award’s fair value for equity classified awards and (ii) final measurement date for liability classified awards. Forfeitures are recorded in the period in which they occur. The Company estimates the fair value of stock options using the Black-Scholes-Merton option-pricing model ("BSM"), which requires the use of estimates and subjective assumptions, including the risk-free interest rate, the fair value of the underlying common stock, the expected dividend yield of the Company’s common stock, the expected volatility of the price of the Company’s common stock, and the expected term of the option. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. Leases The Company leases office space and office equipment. The underlying lease agreements have lease terms of less than 12 months and up to 60 months. Leases with terms of 12 months or less at inception are not included in the operating lease right of use asset and operating lease liability. The Company has two existing leases for office space. At inception of a lease agreement, the Company determines whether an agreement represents a lease and at commencement each lease agreement is assessed as to classification as an operating or financing lease. The Company's two leases have been classified as operating leases and an operating lease right-of-use asset and an operating lease liability have been recorded on the Company’s balance sheet. A right-of-use lease asset represents the Company’s right to use the underlying asset for the lease term and the lease obligation represents its commitment to make the lease payments arising from the lease. Right-of-use lease assets and obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company has used an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The right-of-use lease asset includes any lease payments made prior to commencement and excludes any lease incentives. The lease term used in estimating future lease payments may include options to extend when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or changes in expectations regarding the lease term. Variable lease costs such as common area costs and property taxes are expensed as incurred. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income (loss) has been reflected as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and consists of foreign currency translation adjustments (net of tax). Income Taxes The Company is subject to corporate income tax laws and regulations in the U.S., Germany and Australia. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment in their application. The Company utilizes the asset and liability method of accounting for income taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the audited consolidated financial statements. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of changes in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not some portion or the entire deferred tax asset will not be realized. As of September 30, 2022 and 2021, respectively, the Company maintained a full valuation allowance against the balance of deferred tax assets. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company is subject to U.S. federal, New York, California, Texas, German and Australian income taxes. The Company is subject to U.S. federal or state income tax examination by tax authorities for tax returns filed for the years 2003 and forward due to the carryforward of NOLs. Tax years 2016 through 2021 are subject to audit by German and Australian tax authorities. The Company is not currently under examination by any tax jurisdictions. Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss by the weighted-average number of common shares and, if dilutive, common stock equivalents outstanding for the period determined using the treasury-stock method. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Potentially dilutive securities, not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive, are as follows: As of September 30, 2022 2021 Options to purchase common stock 3,799,573 2,045,960 Recently Issued and/or Adopted Accounting Standards There are no recently issued accounting standards that would have a significant impact on the company's consolidated financial statements.

Balance Sheet Details

Balance Sheet Details	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Details	Balance Sheet Details Other Current Assets and Prepaid Expenses Other Current Assets and Prepaid Expenses consist of (in thousands): September 30, 2022 December 31, 2021 Prepaid clinical and related costs $ 8,938 $ 14,853 VAT receivable 241 279 Australian research and development tax incentive 3,150 1,871 Other 1,549 1,122 Total $ 13,878 $ 18,125 Accounts Payable Accounts Payable consist of (in thousands): September 30, 2022 December 31, 2021 Clinical costs $ 3,748 $ 3,427 Legal and audit costs 114 72 Other 310 246 Total $ 4,172 $ 3,745 Accrued Expenses Accrued expenses consist of (in thousands): September 30, 2022 December 31, 2021 Accrued clinical and related costs $ 5,504 $ 6,214 Accrued legal and audit costs 85 96 Accrued compensation 881 674 Accrued other 153 87 Total $ 6,623 $ 7,071 Other Current Liabilities Other Current Liabilities consist of (in thousands): September 30, 2022 December 31, 2021 Lease liabilities $ 395 $ 408 Other 324 177 Total 719 585

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases The Company leases certain office space under non-cancelable operating leases. The leases terminate on April 30, 2023 for the New York City office and on June 30, 2025 for the Gräfelfing, Germany office. These leases include both lease (e.g., fixed rent) and non-lease components (e.g., common-area and other maintenance costs). The non-lease components are deemed to be executory costs and are therefore excluded from the minimum lease payments used to determine the present value of the operating lease obligation and related right-of-use asset. The New York City lease has renewal options, but they were not included in calculating the right of use asset and liabilities. On April 7, 2020, the Company signed a five year lease for its facility in Gräfelfing, Germany. On March 1, 2021, and August 1, 2022, the Company added additional lease space at the Gräfelfing, Germany office. Renewal options were not included in calculating the right of use asset and liabilities for this facility. The leases do not have concessions, leasehold improvement incentives or other build-out clauses. Further, the leases do not contain contingent rent provisions. The New York City lease had a six month rent holiday at the beginning of the lease. There were net additions to right of use assets of $435,000 and $642,000 as a result of signing for additional lease space at the Gräfelfing, Germany office in March 2021 and August 2022, respectively. The leases do not provide an implicit rate and, due to the lack of a commercially salable product, the Company is generally considered unable to obtain commercial credit. Therefore, the Company estimated its incremental interest rate to be 6%, considering the quoted rates for the lowest investment-grade debt and the interest rates implicit in recent financing leases. Immunic used its estimated incremental borrowing rate and other information available at the lease commencement date in determining the present value of the lease payments. Immunic’s operating lease costs and variable lease costs were $232,000 and $133,000 for the three months ended September 30, 2022 and 2021, respectively and $498,000 and $372,000 for the nine months ended September 30, 2022 and 2021, respectively. Variable lease costs consist primarily of common area maintenance costs, insurance and taxes which are paid based upon actual costs incurred by the lessor. Maturities of the operating lease obligation are as follows as of September 30, 2022 (in thousands): 2022 $ 169 2023 528 2024 454 2025 227 2026 — Total 1,378 Interest 104 PV of obligation $ 1,274 Contractual Obligations As of September 30, 2022, the Company has non-cancelable contractual obligations under certain agreements related to its development programs IMU-838, IMU-935 and IMU-856 totaling approximately $2.7 million, which is expected to be paid over the next twelve months. Other Commitments and Obligations In May 2016, the Company entered into a purchase agreement (the “Agreement”) with 4SC AG, whereby the Company acquired certain assets, including the rights to patents and patent applications, trademarks and know-how. This transaction has been accounted for as an asset acquisition under Accounting Standards Update 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business. The Agreement included payments (Tranches III and IV) that were contingent upon the occurrence of certain events and required the Company to pay royalties equal to 4.4% of the aggregated net sales for a certain period as defined in the Agreement (Tranche III) upon commercialization of the acquired assets. Effective April 12, 2019, the parties agreed to settle Tranche IV by issuing 120,070 shares of the Company’s common stock, immediately following the Transaction, to 4SC AG while keeping Tranche III in effect. Approximately $1.5 million of expense was recorded as a result of the issuance of these shares on April 12, 2019. On March 31, 2021, Immunic AG, a wholly-owned subsidiary of the Company, and 4SC AG entered into a Settlement Agreement, pursuant to which Immunic AG settled its remaining obligation of the 4.4% royalty on net sales for $17.25 million (Tranche III of the Agreement). The payment was made 50% in cash and 50% in shares of Immunic’s common stock (the “Shares”). Pursuant to the Agreement, the Company filed a resale shelf registration statement on Form S-3 covering the resale of the Shares. With the execution of the Agreement, no further payment obligations remain between Immunic AG and 4SC AG. Legal Proceedings The Company is not currently a party to any litigation, nor is it aware of any pending or threatened litigation, that it believes would materially affect its business, operating results, financial condition or cash flows. However, its industry is characterized by frequent claims and litigation including securities litigation, claims regarding patent and other intellectual property rights and claims for product liability. As a result, in the future, the Company may be involved in various legal proceedings from time to time.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value	Fair Value The following fair value hierarchy tables present information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value Measurement at September 30, 2022 Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 31,471 $ 31,471 $ — $ — Total assets at fair value $ 31,471 $ 31,471 $ — $ — Fair Value Measurement at Fair Value Measurement at December 31, 2021 Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 31,630 $ 31,630 $ — $ — Total assets $ 31,630 $ 31,630 $ — $ — There were no transfers between Level 1, Level 2 or Level 3 assets during the periods presented. For the Company’s money market funds, which are included as a component of cash and cash equivalents on the consolidated balance sheet, realized gains and losses are included in interest income (expense) on the consolidated statements of operations.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Common Stock	Common StockIn November 2020, Immunic filed a shelf registration statement on Form S-3. The 2020 Shelf Registration Statement permits the offering, issuance and sale of up to $250.0 million of common stock, preferred stock, warrants, debt securities, and/or units in one or more offerings and in any combination of the foregoing. As of October 31, 2022, there is $75.0 million remaining on this shelf registration statement In December 2020, the Company filed a Prospectus Supplement for the offering, issuance and sale of up to a maximum aggregate offering price of $50.0 million of common stock that may be issued and sold under an at-the-market sales agreement ("December 2020 ATM") with SVB Leerink as agent. The Company has used, and intends to continue to use the net proceeds from the offering to continue to fund the ongoing clinical development of its product candidates and for other general corporate purposes, including funding existing and potential new clinical programs and product candidates. The December 2020 ATM will terminate upon the earlier of (i) the issuance and sale of all of the shares through SVB Leerink on the terms and subject to the conditions set forth in the December 2020 ATM or (ii) termination of the December 2020 ATM as otherwise permitted thereby. The December 2020 ATM may be terminated at any time by either party upon ten days’ prior notice, or by SVB Leerink at any time in certain circumstances, including the occurrence of a material adverse effect on the Company. As of October 31, 2022, $8.4 million in capacity remains under the December 2020 ATM. In May 2022, the Company filed a Prospectus Supplement for the offering, issuance and sale of up to a maximum aggregate offering price of $80.0 million of common stock that may be issued and sold under another at-the-market sales agreement ("May 2022 ATM") with SVB Leerink as agent. The Company intends to use the net proceeds from the offering to continue to fund the ongoing clinical development of its product candidates and for other general corporate purposes, including funding existing and potential new clinical programs and product candidates. The May 2022 ATM will terminate upon the earlier of (i) the issuance and sale of all of the shares through SVB Leerink on the terms and subject to the conditions set forth in the May 2022 ATM or (ii) termination of the May 2022 ATM as otherwise permitted thereby. The May 2022 ATM may be terminated at any time by either party upon ten days’ prior notice, or by SVB Leerink at any time in certain circumstances, including the occurrence of a material adverse effect on the Company. As of October 31, 2022, $80.0 million in capacity remains under the May 2022 ATM. The Company has agreed to pay SVB Leerink a commission equal to 3.0% of the gross proceeds from the sales of common shares pursuant to both ATM's and has agreed to provide SVB Leerink with customary indemnification and contribution rights. In the three months ended September 30, 2022, the Company did not raise any proceeds under its ATM facilities. In the nine months ended September 30, 2022, the Company raised gross proceeds of $40.9 million pursuant to the December 2020 ATM through the sale of 4,204,113 shares of common stock at a weighted average price of $9.72 per share. The net proceeds from the December 2020 ATM were $39.6 million after deducting underwriter commissions of $1.2 million. The Company did not have any ATM activity during the three or nine months ended September 30, 2021. Public Equity Offerings July 2021 Public Equity Offering On July 15, 2021, the Company entered into an underwriting agreement with Piper Sandler & Co., in connection with the Company’s public offering of 4,500,000 shares of the Company’s common stock, $0.0001 par value per share, at a public offering price of $10.00 per share. On July 19, 2021, the Company closed the Offering. The net proceeds to the Company from the Offering was approximately $42.0 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. Common Stock As of September 30, 2022, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue 130,000,000 shares of common stock, par value of $0.0001 per share. The voting, dividend and liquidation rights of the holders of the Company’s common stock are subject to and qualified by the rights, powers and preferences of any holders of preferred stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any. Through September 30, 2022, no cash dividends had been declared or paid. Preferred Stock The Company’s certificate of incorporation, as amended and restated, authorizes the Company to issue 20 million shares of $0.0001 par value preferred stock, having rights and preferences to be set by the Board of Directors. No preferred shares were outstanding as of September 30, 2022. Stock Reserved for Future Issuance Shares reserved for future issuance at September 30, 2022 are as follows: Number of Common stock reserved for issuance for: 2021 Employee stock Purchase Plan 162,630 Outstanding stock options 3,799,573 Common stock options available for future grant: 2014 Equity Incentive Plan 43,311 2017 Inducement Equity Incentive Plan 46,250 2019 Omnibus Equity Incentive Plan 180,770 Total common shares reserved for future issuance 4,232,534

Stock-Based Compensation Plans

Stock-Based Compensation Plans	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation Plans	Stock-Based Compensation Plans 2021 Employee Stock Purchase Plan On April 25, 2021, the Company adopted the 2021 Employee Stock Purchase Plan ("ESPP"), which was approved by stockholder vote at the 2021 Annual Meeting of Stockholders held on June 10, 2021. The ESPP provides eligible employees of the Company with an opportunity to purchase common stock of the Company through accumulated payroll deductions, which are included in other current liabilities until they are used to purchase Company shares. Eligible employees participating in the bi-annual offering period can choose to have up to the lesser of 15% of their annual base earnings or the IRS annual share purchase limit of $25,000 in aggregate market value to purchase shares of the Company’s common stock. The purchase price of the stock is the lesser of (i) 85% of the closing market price on the date of purchase and (ii) the closing market price at the beginning of the bi-annual offering period. The maximum number of shares reserved for delivery under the plan is 200,000 shares. The Company issued zero and 24,612 shares under the ESPP for the three and nine months ended September 30, 2022 and 37,370 shares life to date. The Company recognized ESPP expense of $21,000 and $18,000 for the three months ended September 30, 2022 and 2021, respectively, and ESPP expense of $74,000 and $18,000 related to the nine months ended September 30, 2022 and 2021, respectively. Stock Option Programs In July 2019, the Company’s stockholders approved the 2019 Omnibus Equity Incentive Plan (the “2019 Plan”) which was adopted by the Board with an effective date of June 14, 2019. The 2019 Plan allows for the grant of equity awards to employees, consultants and non-employee directors. An initial maximum of 1,500,000 shares of the Company’s common stock were available for grant under the 2019 Plan. The 2019 Plan includes an evergreen provision that allows for the annual addition of up to 4% of the Company’s fully-diluted outstanding stock, with a maximum allowable increase of 4,900,000 shares over the term of the 2019 Plan. In accordance with this provision, the shares available for grant were increased in 2020 through 2022 by a total of 2,481,195 shares. The 2019 Plan is currently administered by the Board, or, at the discretion of the Board, by a committee of the Board, which determines the exercise prices, vesting schedules and other restrictions of awards under the 2019 Plan at its discretion. Options to purchase stock may not have an exercise price that is less than the fair market value of underlying shares on the date of grant, and may not have a term greater than ten years. Incentive stock options granted to employees typically vest over four years. Non-statutory options granted to employees, officers, members of the Board, advisors, and consultants of the Company typically vest over three Shares that are expired, terminated, surrendered or canceled under the 2019 Plan without having been fully exercised will be available for future awards. Movements during the year The following table summarizes stock option activity for the nine months ended September 30, 2022 and 2021, respectively, for the 2019 Plan: Options Weighted- Weighted- Aggregate Outstanding as of January 1, 2022 2,157,460 $ 13.54 Granted 1,837,513 $ 8.90 Exercised (852) $ 5.67 — Forfeited or expired (194,548) $ 11.62 Outstanding as of September 30, 2022 3,799,573 $ 11.40 8.59 $ 2,400 Options vested and expected to vest as of September 30, 2022 3,799,573 $ 11.40 8.59 $ 2,400 Options exercisable as of September 30, 2022 1,248,875 $ 13.63 7.64 $ — Options Weighted- Weighted- Aggregate Outstanding as of January 1, 2021 1,117,160 $ 12.96 Granted 1,033,809 $ 14.95 Exercised — $ — Forfeited or expired (105,009) $ 14.32 Outstanding as of September 30, 2021 2,045,960 $ 13.90 8.91 $ 74,460 Options vested and expected to vest as of September 30, 2021 2,045,960 $ 13.90 8.91 $ 74,460 Options exercisable as of September 30, 2021 665,168 $ 13.39 8.33 $ 43,121 Measurement The weighted-average assumptions used in the BSM option pricing model to determine the fair value of the employee and non-employee stock option grants relating to the 2019 Plan were as follows: Risk-Free Interest Rate The risk-free rate assumption is based on U.S. Treasury instruments with maturities similar to the expected term of the stock options. Expected Dividend Yield The Company has not issued any dividends and does not expect to issue dividends over the life of the options. As a result, the Company has estimated the dividend yield to be zero. Expected Volatility Due to the Company’s limited operating history and a lack of company specific historical and implied volatility data, the Company estimates expected volatility based on the historical volatility of its own stock combined with a group of comparable companies that are publicly traded. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. Expected Term The expected term of options is estimated considering the vesting period at the grant date, the life of the option and the average length of time similar grants have remained outstanding in the past. The weighted-average grant date fair value of stock options granted under the 2019 Plan during the nine months ended September 30, 2022 and 2021 was $6.94 and $11.14, respectively. The following are the underlying assumptions used in the Black-Scholes-Merton option pricing model to determine the fair value of stock options granted to employees and to non-employees under this stock plan: Nine Months Ended September 30, 2022 2021 Risk-free interest rate 2.04% 0.88% Expected dividend yield 0% 0% Expected volatility 97.8% 92.4% Expected term of options (years) 6.00 5.95 Stock-Based Compensation Expense Total stock-based compensation expense for all stock awards recognized in the accompanying unaudited condensed consolidated statements of operations is as follows: Three Months Nine Months 2022 2021 2022 2021 Research and development $ 831,000 $ 456,000 $ 2,392,000 $ 1,279,000 General and administrative 1,081,000 941,000 3,651,000 3,204,000 Total $ 1,912,000 $ 1,397,000 $ 6,043,000 $ 4,483,000 As of September 30, 2022, there was $17.6 million in total unrecognized compensation expense relating to the 2019 Plan to be recognized over a weighted average period of 2.91 years. Summary of Equity Incentive Plans Assumed from Vital Upon completion of the Transaction with Vital Therapies ("Vital") on April 12, 2019, Vital’s 2012 Stock Option Plan (the “2012 Plan”), Vital’s 2014 Equity Incentive Plan (the “2014 Plan”) and Vital’s 2017 Inducement Equity Incentive Plan (the “Inducement Plan”), were assumed by the Company. All awards granted under these plans have either been forfeited or expired. There remain 43,311 shares available for grant under the 2014 Plan as of September 30, 2022. On September 2017, Vital’s board of directors approved the Inducement Plan, which was amended and restated in November 2017. Under the Inducement Plan 46,250 shares of Vital’s common stock were reserved to be used exclusively for non-qualified grants to individuals who were not previously employees or directors as an inducement material to a grantee's entry into employment within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. No expense was recorded for the plans assumed from Vital during the three and nine months ended September 30, 2022 and 2021, respectively.

Changes in Board of Directors

Changes in Board of Directors	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Changes in Board of Directors	Changes in Board of Directors On July 6, 2022, the Company announced the appointment of Monika Maria Törnsén as a member of the Board of Directors of the Company, effective as of July 5, 2022. As a Class III director, Ms. Törnsén’s term lasts until the Company’s 2023 annual meeting of stockholders. Ms. Törnsén is not a party to, and does not have any direct or indirect material interest in, any transaction requiring disclosure under Item 404(a) of Regulation S-K. There are no arrangements or understandings between Ms. Törnsén and any other persons pursuant to which she was selected as a director. In connection with her appointment as director, Ms. Törnsén was granted a long-term equity incentive grant in the form of an option to purchase a total of 30,000 shares of the Company’s common stock, with an exercise price of $4.30 per share, which is equal to the closing price of the Company's common stock on The Nasdaq Stock Market on the date of grant, July 8, 2022. The option to purchase 10,000 shares vests in monthly increments over a period of one year from the grant date, and the option to purchase 20,000 shares vests in monthly increments over a period of three years from the grant date. Additionally, Ms. Törnsén and the Company entered into the Company’s standard form of indemnification agreement for directors and executive officers. Concurrently, the Company also announced that current Class III director, Jan Van den Bossche, resigned from the Board. The Board accepted Mr. Van den Bossche’s resignation effective July 5, 2022. Mr. Van den Bossche’s decision to resign did not result from any disagreement with the Company on any matter relating to Company operations, policies or practices.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Executive Chairman Agreement with Duane Nash On April 15, 2020, the compensation committee of the Board of Directors of the Company independently reviewed and approved entering into an employment agreement with the current Chairman of the Board, Duane Nash, MD, JD, MBA (the “Executive Chairman Agreement”) and pursuant to such approval, on April 17, 2020, the Company and Dr. Nash entered into the Executive Chairman Agreement. The Executive Chairman Agreement establishes an “at will” employment relationship pursuant to which Dr. Nash serves as Executive Chairman and contemplated a term that ends on October 15, 2020, which was subsequently extended to April 15, 2021. On April 15, 2021, the Company and Dr. Nash entered into an addendum (the “Addendum”) to extend the term of the Executive Chairman Agreement to April 15, 2022. In connection with the Addendum, the Company made a one-time award to Dr. Nash of an option to purchase 90,000 shares of Company common stock, which vests monthly commencing on May 15, 2021, and to increase Dr. Nash’s monthly base salary to $27,960 from $25,417. Effective March 15, 2022, the Company extended the term of employment from April 15, 2022 to December 31, 2022 with a base salary of $29,358 per month (which includes the cash retainer payable for serving on the Company’s Board or for acting as the Chairman of the Board). In connection with this extension, the Company made a one-time award to Dr. Nash of an option to purchase 75,000 shares of the Company’s common stock, which vests monthly commencing on April 10, 2022. All other terms of the Executive Chairman Agreement remain the same.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events $60 Million Private Placement Equity Financing On October 10, 2022, Immunic entered into a Securities Purchase Agreement (the “Purchase Agreement”) for a private placement (the “Private Placement”) with select accredited investors and certain existing investors (each, a “Purchaser” and collectively, the “Purchasers”). Pursuant to the Purchase Agreement, the Company agreed to sell to the Purchasers (i) 8,696,552 shares of the Company’s common stock, par value $0.0001 per share (the “Shares”), at a purchase price of $4.35 per Share, and (ii) 5,096,552 pre-funded warrants (the “Pre-Funded Warrants”) to purchase Common Stock (the “Warrant Shares” and together with the Shares and the Pre-Funded Warrants, the “Securities”), at a purchase price of $4.34 per Pre-Funded Warrant. The Pre-Funded Warrants will have an exercise price of $0.01 per share of Common Stock, be immediately exercisable and remain exercisable until exercised in full. The holders of Pre-Funded Warrants may not exercise a Pre-Funded Warrant if the holder, together with its affiliates, would beneficially own more than 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to such exercise. The holders of Pre-Funded Warrants may increase or decrease such percentages not in excess of 19.99% by providing at least 61 days’ prior notice to the Company. The Private Placement closed on October 12, 2022. The gross proceeds of the Private Placement were approximately $60.0 million, before deducting offering expenses payable by the Company. The Company intends to use the net proceeds from the Private Placement to fund the ongoing clinical development of its three lead product candidates, vidofludimus calcium (IMU-838), IMU-935 and IMU-856, and for other general corporate purposes. The Purchase Agreement provides for the registration for resale of the Securities (including the Warrant Shares) pursuant to a registration statement (the “Registration Statement”) to be filed with the Securities and Exchange Commission (the “SEC”) on or prior to December 9, 2022. The Company has agreed to use its best efforts to cause the Registration Statement to be declared effective as soon as possible, but in no event later than 60 days after the closing of the Private Placement (or 90 days in the event of a review of the Registration Statement by, and comments from, the SEC), and to keep the Registration Statement continuously effective from the date on which the SEC declares the Registration Statement to be effective until such date that all Registrable Securities (as such term is defined in the Purchase Agreement) covered by the Registration Statement have been sold pursuant to a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), or under Rule 144 as promulgated by the SEC under the Securities Act, or otherwise shall have ceased to be Registrable Securities. Pre-Planned Phase 1b Interim Analysis of IMU-935 in Moderate-to-Severe Psoriasis On October 20, 2022, Immunic announced the outcome of a pre-planned interim group-level data analysis of its Phase 1b clinical trial of IMU-935 in patients with moderate-to-severe psoriasis. The overall trial is ongoing and remains blinded. The pre-planned interim analysis revealed that the group averages for Psoriasis Area and Severity Index ("PASI”) reductions in the two active arms did not separate from placebo at four weeks. Although the active arms performed in line with prior expectations, based on similarly designed trials, the trial experienced a greater decrease than expected in PASI in the placebo arm. Although the safety data remains blinded, administration of IMU-935 and placebo in this trial were demonstrated to be safe and well-tolerated, and no new safety signals were observed. The Company expects to continue IMU-935’s development in psoriasis and will further analyze the available data to determine next steps for the program. Goodwill Impairment Analysis

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles, ("U.S. GAAP") and include the accounts of Immunic and its wholly-owned subsidiaries, Immunic AG (which began operations in 2016) and Immunic Research GmbH (which began operations in 2016 and was merged into Immunic AG in September, 2022) and Immunic Australia Pty Ltd. (which began operations in 2018). All intercompany accounts and transactions have been eliminated in consolidation. Immunic manages its operations as a single reportable segment for the purposes of assessing performance and making operating decisions.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements. The most significant estimates in the Company’s financial statements and accompanying notes relate to clinical trial expenses and share-based compensation. Management believes its estimates to be reasonable under the circumstances. Actual results could differ materially from those estimates and assumptions.
Foreign Currency Translation and Presentation	Foreign Currency Translation and Presentation The Company’s reporting currency is United States (“U.S.”) dollars. Immunic AG and Immunic Research GmbH’s operations are located in Germany with the euro being their functional currency. Immunic Australia Pty Ltd.’s functional currency is the Australian dollar. All amounts in the financial statements where the functional currency is not the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: • assets and liabilities at reporting period-end rates; • income statement accounts at average exchange rates for the reporting period; and • components of equity at historical rates. Gains and losses from translation of the financial statements into U.S. dollars are recorded in stockholders’ equity as a component of accumulated other comprehensive income (loss). Realized and unrealized gains and losses resulting from foreign currency transactions denominated in currencies other than the functional currency are reflected as general and administrative expenses in the Consolidated Statements of Operations. Foreign currency transaction gains and losses related to long-term intercompany loans that are payable in the foreseeable future are recorded in Other Income (Expense). The Consolidated Statements of Cash Flows were prepared by using the average exchange rate in effect during the reporting period which reasonably approximates the timing of the cash flows.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Fair Value Measurement	Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 1 assets consisted of money market funds for the periods presented. The Company had no Level 1 liabilities for the periods presented. Level 2— Inputs other than observable quoted prices for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. The Company had no Level 2 assets or liabilities for the periods presented. Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. The Company had no Level 3 assets or liabilities for the periods presented. The carrying value of cash and cash equivalents, other current assets and prepaid expenses, accounts payable, accrued expenses, and other current liabilities approximates fair value due to the short period of time to maturity.
Property and Equipment	Property and EquipmentProperty and equipment is stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the assets, which range from three
Impairment of Long-Lived Assets	Impairment of Long-Lived AssetsThe Company records impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Impaired assets are then recorded at their estimated fair value.
Goodwill	Goodwill Business combinations are accounted for under the acquisition method. The total purchase price of an acquisition is allocated to the underlying identifiable net assets, based on their respective estimated fair values as of the acquisition date. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, probabilities of success, discount rates, and asset lives, among other items. Assets acquired and liabilities assumed are recorded at their estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Goodwill is tested for impairment at the reporting unit level annually in the fourth quarter, or more frequently when events or changes in circumstances indicate that the asset might be impaired. Examples of such events or circumstances include, but are not limited to, an unfavorable clinical trial result, a significant adverse change in legal or business climate, industry market conditions, an adverse regulatory action, sustained decrease in stock price or unanticipated competition. When conducting the Company’s interim goodwill impairment assessment, we considered the Company’s history of reported losses and negative cash flows from operating activities, along with the downturn in macroeconomic conditions and the broader mid-cap and micro-cap equity markets in 2022. Given the period of time between the commencement of the downturn in macroeconomic and general equity market conditions as of September 30, 2022, management believes that the fluctuation in prices of our common stock, consistent with the broader market, is not other-than-temporary and not indicative of any fundamental change in the value or prospects of the underlying business as of the measurement date. As another data point, the Company also performed a quantitative goodwill impairment analysis comparing the estimated fair value of the Company’s reporting unit to its carrying or book value as of the current period presented herein. In performing the quantitative analysis, the Company compared the fair value of the reporting unit to its carrying or book value to determine if the fair value of the reporting unit exceeded its carrying value as of the testing date, in which case the standard indicates that goodwill would not be impaired, and no further testing was necessary. The fair value of a reporting unit refers to the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants at the measurement date. Quoted market prices in active markets are considered to be the best evidence of fair value and should be used as the basis for fair value measurement, if available. When using quoted market prices to estimate the fair value of a reporting unit, we consider all available evidence. In certain circumstances, such as a distressed market, it may be appropriate to consider recent trends in the Company’s stock price, instead of a single day’s stock price in evaluating fair value. In these circumstances, averages over relatively short periods of time are used to determine representative market values. Subsequent to September 30, 2022, the company raised $60 million of common stock at a premium to the company's market pricing. Management further considered this as an indication of the value and related premium to market values prior to and as of September 30, 2022. Based on this qualitative analysis, the Company concluded that goodwill was not “more likely than not” impaired as of September 30, 2022. On October 20, 2022, the Company announced the outcome of a significant interim analysis of its Phase 1b clinical trial of IMU-935 in patients with moderate-to-severe psoriasis that were not deemed positive progress. On October 21, 2022, the Company experienced a significant decrease in the Company's market capitalization. The Company considered this to be a triggering event indicating that it is more likely than not that goodwill is impaired. As a result, the Company anticipates it will incur an approximately $33.0 million goodwill impairment charge in the fourth quarter of 2022 as a result of this analysis (See Note 10).
Research and Development Expenses	Research and Development Expenses These costs primarily include external development expenses and internal personnel expenses for the three development programs, vidofludimus calcium, IMU-935 and IMU-856. Immunic has spent the majority of its research and development resources on vidofludimus calcium, the Company's lead development program for clinical trials in RRMS, UC and COVID-19. Research and development expenses consist of expenses incurred in research and development activities, which include clinical trials, contract research services, certain milestone payments, salaries and related employee benefits, allocated facility costs and other outsourced services. Research and development expenses are charged to operations as incurred. The Company enters into agreements with contract research organizations (“CROs”) to provide clinical trial services for individual studies and projects by executing individual work orders governed by a Master Service Arrangement (“MSA”). The MSAs and associated work orders provide for regular recurrent payments and payments upon the completion of certain milestones. The Company regularly assesses the timing of payments against actual costs incurred to ensure a proper accrual of related expenses in the appropriate accounting period.
Collaboration Arrangements	Collaboration Arrangements Certain collaboration and license agreements may include payments to or from the Company of one or more of the following: non-refundable or partially refundable upfront or license fees; development, regulatory and commercial milestone payments; payment for manufacturing supply services; partial or complete reimbursement of research and development costs; and royalties on net sales of licensed products. The Company assesses whether such contracts are within the scope of Financial Accounting Standards Board (FASB) Accounting Standards Update (“ASU”) 2014-09 “ Revenue from Contracts with Customers ” and ASU No. 2018-18, “ Collaborative Arrangements” ("ASU 2018-18"). ASU 2018-18, clarifies that certain elements of collaborative arrangements could qualify as transactions with customers in the scope of ASC 606. In October 2018, the Company entered into an option and license agreement (the "Daiichi Sankyo Agreement") with Daiichi Sankyo Co., Ltd. ("Daiichi Sankyo") which granted the Company the right to license a group of compounds, designated by the Company as IMU-856, as a potential new oral treatment option for gastrointestinal diseases such as celiac disease, inflammatory bowel disease, irritable bowel syndrome with diarrhea and other barrier function associated diseases. During the option period, the Company performed agreed upon research and development activities for which it was reimbursed by Daiichi Sankyo up to a maximum agreed-upon limit. Such reimbursement was recorded as other income. There are no additional research and development reimbursements expected under this agreement. On January 5, 2020, the Company exercised its option to obtain the exclusive worldwide right to commercialization of IMU-856. Among other things, the option exercise grants Immunic AG the rights to Daiichi Sankyo’s patent application related to IMU-856, for which the Company received a notice of allowance from the US Patent & Trademark Office in August 2022. In connection with the option exercise, the Company paid a one-time upfront licensing fee to Daiichi Sankyo. Under the Daiichi Sankyo Agreement, Daiichi Sankyo is also eligible to receive future development, regulatory and sales milestone payments, as well as royalties related to IMU-856.
General and Administrative Expenses	General and Administrative Expenses General and administrative expenses consist primarily of salaries and related costs for personnel in executive, finance, business development and other support functions. Other general and administrative expenses include, but are not limited to, stock-based compensation, insurance costs, professional fees for legal, accounting and tax services, consulting, related facility costs and travel.
Stock-Based Compensation	Stock-Based Compensation The Company measures the cost of employee and non-employee services received in exchange for equity awards based on the grant-date fair value of the award recognized generally as an expense (i) on a straight-line basis over the requisite service period for those awards whose vesting is based upon a service condition, and (ii) on an accelerated method for awards whose vesting is based upon a performance condition, but only to the extent it is probable that the performance condition will be met. Stock-based compensation is (i) estimated at the date of grant based on the award’s fair value for equity classified awards and (ii) final measurement date for liability classified awards. Forfeitures are recorded in the period in which they occur. The Company estimates the fair value of stock options using the Black-Scholes-Merton option-pricing model ("BSM"), which requires the use of estimates and subjective assumptions, including the risk-free interest rate, the fair value of the underlying common stock, the expected dividend yield of the Company’s common stock, the expected volatility of the price of the Company’s common stock, and the expected term of the option. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future.
Leases	Leases The Company leases office space and office equipment. The underlying lease agreements have lease terms of less than 12 months and up to 60 months. Leases with terms of 12 months or less at inception are not included in the operating lease right of use asset and operating lease liability. The Company has two existing leases for office space. At inception of a lease agreement, the Company determines whether an agreement represents a lease and at commencement each lease agreement is assessed as to classification as an operating or financing lease. The Company's two leases have been classified as operating leases and an operating lease right-of-use asset and an operating lease liability have been recorded on the Company’s balance sheet. A right-of-use lease asset represents the Company’s right to use the underlying asset for the lease term and the lease obligation represents its commitment to make the lease payments arising from the lease. Right-of-use lease assets and obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company has used an estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The right-of-use lease asset includes any lease payments made prior to commencement and excludes any lease incentives. The lease term used in estimating future lease payments may include options to extend when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or changes in expectations regarding the lease term. Variable lease costs such as common area costs and property taxes are expensed as incurred. Leases with an initial term of twelve months or less are not recorded on the balance sheet.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive income (loss) has been reflected as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and consists of foreign currency translation adjustments (net of tax).
Income Taxes	Income Taxes The Company is subject to corporate income tax laws and regulations in the U.S., Germany and Australia. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment in their application. The Company utilizes the asset and liability method of accounting for income taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the audited consolidated financial statements. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of changes in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not some portion or the entire deferred tax asset will not be realized. As of September 30, 2022 and 2021, respectively, the Company maintained a full valuation allowance against the balance of deferred tax assets. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company is subject to U.S. federal, New York, California, Texas, German and Australian income taxes. The Company is subject to U.S. federal or state income tax examination by tax authorities for tax returns filed for the years 2003 and forward due to the carryforward of NOLs. Tax years 2016 through 2021 are subject to audit by German and Australian tax authorities. The Company is not currently under examination by any tax jurisdictions.
Net Loss Per Share	Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss by the weighted-average number of common shares and, if dilutive, common stock equivalents outstanding for the period determined using the treasury-stock method. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.
Recently Issued and/or Adopted Accounting Standards	Recently Issued and/or Adopted Accounting Standards There are no recently issued accounting standards that would have a significant impact on the company's consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss per Share	Potentially dilutive securities, not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive, are as follows: As of September 30, 2022 2021 Options to purchase common stock 3,799,573 2,045,960

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Other Current Assets and Prepaid Expenses	Other Current Assets and Prepaid Expenses consist of (in thousands): September 30, 2022 December 31, 2021 Prepaid clinical and related costs $ 8,938 $ 14,853 VAT receivable 241 279 Australian research and development tax incentive 3,150 1,871 Other 1,549 1,122 Total $ 13,878 $ 18,125
Schedule of Accounts Payable and Accrued Expenses	Accounts Payable consist of (in thousands): September 30, 2022 December 31, 2021 Clinical costs $ 3,748 $ 3,427 Legal and audit costs 114 72 Other 310 246 Total $ 4,172 $ 3,745 Accrued expenses consist of (in thousands): September 30, 2022 December 31, 2021 Accrued clinical and related costs $ 5,504 $ 6,214 Accrued legal and audit costs 85 96 Accrued compensation 881 674 Accrued other 153 87 Total $ 6,623 $ 7,071
Schedule of Other Current Liabilities	Other Current Liabilities consist of (in thousands): September 30, 2022 December 31, 2021 Lease liabilities $ 395 $ 408 Other 324 177 Total 719 585

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Maturities of Operating Lease Obligation	Maturities of the operating lease obligation are as follows as of September 30, 2022 (in thousands): 2022 $ 169 2023 528 2024 454 2025 227 2026 — Total 1,378 Interest 104 PV of obligation $ 1,274

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following fair value hierarchy tables present information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value Measurement at September 30, 2022 Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 31,471 $ 31,471 $ — $ — Total assets at fair value $ 31,471 $ 31,471 $ — $ — Fair Value Measurement at Fair Value Measurement at December 31, 2021 Fair Value Level 1 Level 2 Level 3 Assets Money market funds $ 31,630 $ 31,630 $ — $ — Total assets $ 31,630 $ 31,630 $ — $ —

Common Stock (Tables)

Common Stock (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Shares Reserved for Future Issuance	Shares reserved for future issuance at September 30, 2022 are as follows: Number of Common stock reserved for issuance for: 2021 Employee stock Purchase Plan 162,630 Outstanding stock options 3,799,573 Common stock options available for future grant: 2014 Equity Incentive Plan 43,311 2017 Inducement Equity Incentive Plan 46,250 2019 Omnibus Equity Incentive Plan 180,770 Total common shares reserved for future issuance 4,232,534

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Stock Option Activity	The following table summarizes stock option activity for the nine months ended September 30, 2022 and 2021, respectively, for the 2019 Plan: Options Weighted- Weighted- Aggregate Outstanding as of January 1, 2022 2,157,460 $ 13.54 Granted 1,837,513 $ 8.90 Exercised (852) $ 5.67 — Forfeited or expired (194,548) $ 11.62 Outstanding as of September 30, 2022 3,799,573 $ 11.40 8.59 $ 2,400 Options vested and expected to vest as of September 30, 2022 3,799,573 $ 11.40 8.59 $ 2,400 Options exercisable as of September 30, 2022 1,248,875 $ 13.63 7.64 $ — Options Weighted- Weighted- Aggregate Outstanding as of January 1, 2021 1,117,160 $ 12.96 Granted 1,033,809 $ 14.95 Exercised — $ — Forfeited or expired (105,009) $ 14.32 Outstanding as of September 30, 2021 2,045,960 $ 13.90 8.91 $ 74,460 Options vested and expected to vest as of September 30, 2021 2,045,960 $ 13.90 8.91 $ 74,460 Options exercisable as of September 30, 2021 665,168 $ 13.39 8.33 $ 43,121
Schedule of Valuation Assumptions Used	The following are the underlying assumptions used in the Black-Scholes-Merton option pricing model to determine the fair value of stock options granted to employees and to non-employees under this stock plan: Nine Months Ended September 30, 2022 2021 Risk-free interest rate 2.04% 0.88% Expected dividend yield 0% 0% Expected volatility 97.8% 92.4% Expected term of options (years) 6.00 5.95
Schedule of Stock-based Compensation Expense for Stock Awards Recognized	Total stock-based compensation expense for all stock awards recognized in the accompanying unaudited condensed consolidated statements of operations is as follows: Three Months Nine Months 2022 2021 2022 2021 Research and development $ 831,000 $ 456,000 $ 2,392,000 $ 1,279,000 General and administrative 1,081,000 941,000 3,651,000 3,204,000 Total $ 1,912,000 $ 1,397,000 $ 6,043,000 $ 4,483,000

Description of Business and B_2

Description of Business and Basis of Financial Statements (Details) $ in Thousands		102 Months Ended
	Oct. 12, 2022 USD ($)	Oct. 31, 2022 USD ($)	Sep. 30, 2022 USD ($) employee program	Dec. 31, 2021 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of employees | employee			65
Number of development programs pursued | program			3
Accumulated deficit			$ 260,806	$ 196,873
Cash and cash equivalents			$ 72,771	$ 86,863
Subsequent Event
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from issuance of private placement	$ 60,000	$ 355,500
Cash and cash equivalents		72,800
Cash funds		$ 56,400

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details)	1 Months Ended	3 Months Ended			9 Months Ended
	Nov. 03, 2022 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2022 financialInstitution lease	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Property, Plant and Equipment [Line Items]
Number of financial institutions used for cash deposits | financialInstitution					2
Depreciation expense			$ 17,000	$ 16,000		$ 58,000	$ 45,000
Impairment losses			$ 0	$ 0		$ 0	$ 0
Number of existing leases | lease					2
Subsequent Event | Common Stock
Property, Plant and Equipment [Line Items]
Proceeds from issuance of common stock at premium	$ 60,000,000
Forecast
Property, Plant and Equipment [Line Items]
Goodwill Impairment		$ 33,000,000
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)					3 years
Lease term (in months)					12 months
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life (in years)					13 years
Lease term (in months)					60 months

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss per Share (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options to purchase common stock ( in shares)	3,799,573	2,045,960

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Other Current Assets and Prepaid Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid clinical and related costs	$ 8,938	$ 14,853
VAT receivable	241	279
Australian research and development tax incentive	3,150	1,871
Other	1,549	1,122
Total	$ 13,878	$ 18,125

Balance Sheet Details - Sched_2

Balance Sheet Details - Schedule of Accounts Payable (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Clinical costs	$ 3,748	$ 3,427
Legal and audit costs	114	72
Other	310	246
Total	$ 4,172	$ 3,745

Balance Sheet Details - Sched_3

Balance Sheet Details - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued clinical and related costs	$ 5,504	$ 6,214
Accrued legal and audit costs	85	96
Accrued compensation	881	674
Accrued other	153	87
Total	$ 6,623	$ 7,071

Balance Sheet Details - Sched_4

Balance Sheet Details - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Lease liabilities	$ 395	$ 408
Other	324	177
Total	$ 719	$ 585

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands			1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 01, 2022	Mar. 31, 2021	Mar. 31, 2021	May 31, 2016	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Apr. 07, 2020	Apr. 12, 2019
Loss Contingencies [Line Items]
Incremental borrowing rate on operating leases					6%		6%
Operating and variable lease costs					$ 232	$ 133	$ 498	$ 372
Contractual obligation					$ 2,700		$ 2,700
Asset purchase agreement, royalties as percent of aggregated net sales				4.40%
Common stock, shares issued (in shares)					30,564,995		30,564,995		26,335,418		120,070
Common stock issued					$ 3		$ 3		$ 3		$ 1,500
4SC Royalty Settlement (see Note 4)					$ 0	$ 0	$ 0	$ 17,250
Immunic AG
Loss Contingencies [Line Items]
Asset purchase agreement, royalties as percent of aggregated net sales		4.40%
4SC Royalty Settlement (see Note 4)		$ 17,250
Royalty settlement agreement, cash payment, percent		50%	50%
Royalty settlement agreement, shares payment, percent		50%	50%
Grafelfing, Germany
Loss Contingencies [Line Items]
Lease term (in years)										5 years
Additions to right-of-use assets	$ 642		$ 435
New York City
Loss Contingencies [Line Items]
Rent holiday period							6 months

Commitments and Contingencies_2

Commitments and Contingencies - Maturities of Operating Lease Obligation (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 169
2023	528
2024	454
2025	227
2026	0
Total	1,378
Interest	104
PV of obligation	$ 1,274

Fair Value - Schedule of Financ

Fair Value - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Total assets at fair value	$ 31,471	$ 31,630
Money market funds
Assets
Total assets at fair value	31,471	31,630
Level 1
Assets
Total assets at fair value	31,471	31,630
Level 1 | Money market funds
Assets
Total assets at fair value	31,471	31,630
Level 2
Assets
Total assets at fair value	0	0
Level 2 | Money market funds
Assets
Total assets at fair value	0	0
Level 3
Assets
Total assets at fair value	0	0
Level 3 | Money market funds
Assets
Total assets at fair value	$ 0	$ 0

Common Stock - Shelf Registrati

Common Stock - Shelf Registration Statement (Details) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2022 USD ($) d	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2022 USD ($) d $ / shares shares	Oct. 31, 2022 USD ($)	May 10, 2022 USD ($)	May 05, 2022 USD ($)	Dec. 31, 2020 USD ($)	Nov. 30, 2020 USD ($)
Class of Stock [Line Items]
Maximum aggregate offering price of securities under shelf registration									$ 250,000
Commission, percent of gross proceeds from sale of common stock				3%
Shares issued (in shares)		$ 130	$ 5
Subsequent Event
Class of Stock [Line Items]
Shelf registration statement, amount remaining					$ 75,000
December 2020 ATM
Class of Stock [Line Items]
Maximum aggregate offering price of securities under shelf registration								$ 50,000
Shelf registration, termination, prior written notice | d	10			10
Shares issued (in shares)	$ 40,900
Stock issued (in shares) | shares				4,204,113
Issuance of stock (in USD per share) | $ / shares				$ 9.72
Proceeds from Issuance of Common Stock				$ 39,600
Underwriter commissions				$ 1,200
December 2020 ATM | Subsequent Event
Class of Stock [Line Items]
Sale of stock, remaining capacity					$ 8,400
May 2022 ATM
Class of Stock [Line Items]
Maximum aggregate offering price of securities under shelf registration						$ 80,000
Shelf registration, termination, prior written notice | d	10			10
Sale of stock, remaining capacity							$ 80,000

Common Stock - Public Equity Of

Common Stock - Public Equity Offering (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 19, 2021	Jul. 15, 2021	Sep. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common stock, par value (in USD per share)			$ 0.0001	$ 0.0001
July 2021 Public Equity Offering
Class of Stock [Line Items]
Shares issued in private placement transaction (in shares)		4,500,000
Common stock, par value (in USD per share)		$ 0.0001
Sale of stock, price per share (in dollars per share)		$ 10
Proceeds from sale of stock	$ 42

Common Stock - Common Stock (De

Common Stock - Common Stock (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Equity [Abstract]
Common stock, shares authorized (in shares)	130,000,000	130,000,000
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, cash dividends declared (in USD per share)	0
Common stock, cash dividends paid (in USD per share)	$ 0

Common Stock - Preferred Stock

Common Stock - Preferred Stock (Details) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Equity [Abstract]
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares outstanding (in shares)	0	0

Common Stock - Shares Reserved

Common Stock - Shares Reserved for Future Issuance (Details)	Sep. 30, 2022 shares
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	4,232,534
Outstanding stock options
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	3,799,573
2021 Employee stock Purchase Plan | Outstanding stock options
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	162,630
2014 Equity Incentive Plan | Common stock options available for future grant:
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	43,311
2017 Inducement Equity Incentive Plan | Common stock options available for future grant:
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	46,250
2019 Omnibus Equity Incentive Plan | Common stock options available for future grant:
Class of Stock [Line Items]
Total common shares reserved for future issuance (in shares)	180,770

Stock-Based Compensation Plan_2

Stock-Based Compensation Plans - Additional Information (Details) - USD ($)		1 Months Ended	3 Months Ended			9 Months Ended			17 Months Ended	21 Months Ended
	Apr. 25, 2021	Jul. 31, 2019	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield (as percent)						0%
Total unrecognized compensation expense			$ 17,600,000			$ 17,600,000			$ 17,600,000
Period over which compensation cost will be recognized (in years)						2 years 10 months 28 days
2021 Employee stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum annual contributions per employee (as a percent)	15%
Purchase price of the stock, at discount from market price at purchase date (as a percent)	85%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	200,000
RSUs granted (in shares)			24,612			24,612			37,370
Share-based compensation expense			$ 21,000	$ 18,000		$ 74,000	$ 18,000
2019 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		1,500,000
Expected term of options (years)						6 years	5 years 11 months 12 days
Expected dividend yield (as percent)						0%	0%
Options granted in period, weighted-average grant date fair value (in USD per share)						$ 6.94	$ 11.14
2019 Omnibus Equity Incentive Plan | Incentive stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						4 years
2019 Omnibus Equity Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term of options (years)						10 years
2019 Omnibus Equity Incentive Plan | Maximum | Non-statutory options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						4 years
2019 Omnibus Equity Incentive Plan | Minimum | Non-statutory options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						3 years
2019 Omnibus Equity Incentive Plan, Evergreen Provision
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized, percent		4%
Additional shares authorized (in shares)		4,900,000								2,481,195
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			43,311			43,311			43,311
2017 Inducement Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant											46,250
Share-based compensation expense				$ 0	$ 0		$ 0	$ 0

Stock-Based Compensation Plan_3

Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) - 2019 Omnibus Equity Incentive Plan - Outstanding stock options - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Options
Outstanding, beginning balance (in shares)	2,157,460	1,117,160
Granted (in shares)	1,837,513	1,033,809
Exercised (in shares)	(852)	0
Forfeited or expired (in shares)	(194,548)	(105,009)
Outstanding, ending balance (in shares)	3,799,573	2,045,960
Options vested and expected to vest, ending balance (in shares)	3,799,573	2,045,960
Options exercisable, ending balance (in shares)	1,248,875	665,168
Weighted- Average Exercise Price
Outstanding, beginning balance (usd per share)	$ 13.54	$ 12.96
Granted (usd per share)	8.90	14.95
Exercised (usd per share)	5.67	0
Forfeited or expired (usd per share)	11.62	14.32
Outstanding, ending balance (usd per share)	11.40	13.90
Options vested and expected to vest, weighted-average exercise price, ending balance (usd per share)	11.40	13.90
Options exercisable, weighted-average exercise price, ending balance (usd per share)	$ 13.63	$ 13.39
Other Disclosures
Outstanding, Weighted-Average Remaining Contractual Term, Ending balance	8 years 7 months 2 days	8 years 10 months 28 days
Options vested and expected to vest , Weighted-Average Remaining Contractual Term, Ending balance	8 years 7 months 2 days	8 years 10 months 28 days
Options exercisable, Weighted-Average Remaining Contractual Term, Ending balance	7 years 7 months 20 days	8 years 3 months 29 days
Outstanding, Aggregate Intrinsic Value, Ending balance	$ 2,400	$ 74,460
Options vested and expected to vest , Aggregate Intrinsic Value, Ending balance	2,400	74,460
Options exercisable, Aggregate Intrinsic Value, Ending balance	$ 0	$ 43,121

Stock-Based Compensation Plan_4

Stock-Based Compensation Plans - Ranges of Underlying Assumptions Used in BSM Option Pricing Model to Determine Fair Value of Stock Options Granted to Employees and Nonemployees (Detail)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield (as percent)	0%
2019 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as percent)	2.04%	0.88%
Expected dividend yield (as percent)	0%	0%
Expected volatility (as percent)	97.80%	92.40%
Expected term of options (years)	6 years	5 years 11 months 12 days

Stock-Based Compensation Plan_5

Stock-Based Compensation Plans - Schedule of Stock-based Compensation Expense for Stock Awards Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense			$ 6,043	$ 4,483
Employees
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,912,000	$ 1,397,000	6,043,000	4,483,000
Employees | Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	831,000	456,000	2,392,000	1,279,000
Employees | General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 1,081,000	$ 941,000	$ 3,651,000	$ 3,204,000

Changes in Board of Directors (

Changes in Board of Directors (Details) - Director shares in Thousands	Jul. 06, 2022 $ / shares shares
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Granted (in shares)	30
Options granted in period, weighted-average grant date fair value (in USD per share) | $ / shares	$ 4.30
Options Vesting In One Year
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Granted (in shares)	10
Vesting period (in years)	1 year
Options Vesting In Three Years
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Granted (in shares)	20
Vesting period (in years)	3 years

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - Executive Chairman Agreement - Affiliated Entity - Duane Nash, MD, JD, MBA - Board of Directors Chairman - USD ($)			4 Months Ended	8 Months Ended	10 Months Ended
	Mar. 15, 2022	Apr. 15, 2021	May 14, 2021	Dec. 31, 2021	Dec. 31, 2022
Related Party Transaction [Line Items]
Granted (in shares)	75,000	90,000
Monthly base salary			$ 25,417	$ 27,960
Forecast
Related Party Transaction [Line Items]
Monthly base salary					$ 29,358

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended	102 Months Ended
	Oct. 12, 2022	Oct. 10, 2022	Dec. 31, 2022	Oct. 31, 2022
Forecast
Subsequent Event [Line Items]
Goodwill Impairment			$ 33
Subsequent Event
Subsequent Event [Line Items]
Proceeds from issuance of private placement	$ 60			$ 355.5
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Shares issued in private placement transaction (in shares)		8,696,552
Sale of stock, price per share (in dollars per share)		$ 0.0001
Share price (in USD per share)		$ 4.35
May not exercise of percentage		9.99%
Pre-Funded Warrants | Subsequent Event
Subsequent Event [Line Items]
Shares issued in private placement transaction (in shares)		5,096,552
Sale of stock, price per share (in dollars per share)		$ 0.01
Share price (in USD per share)		$ 4.34
Increase or decrease not in excess of percentage		19.99%
Increase or decrease not In excess of prior notice period		61 days