Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Lyra Therapeutics, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 13,001,105 | |
Amendment Flag | false | |
Entity Central Index Key | 0001327273 | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-39273 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1700838 | |
Entity Address, Address Line One | 480 Arsenal Way | |
Entity Address, City or Town | Watertown | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02472 | |
City Area Code | 617 | |
Local Phone Number | 393-4600 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | LYRA | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 69,046 | $ 74,593 |
Prepaid expenses and other current assets | 1,027 | 1,324 |
Total current assets | 70,073 | 75,917 |
Property and equipment, net | 3,853 | 2,165 |
Operating lease right-of-use assets | 1,834 | 2,301 |
Restricted cash | 329 | 329 |
Other assets | 243 | 118 |
Total assets | 76,332 | 80,830 |
Current liabilities: | ||
Accounts payable | 1,899 | 922 |
Accrued expenses and other current liabilities | 2,976 | 2,977 |
Operating lease liabilities | 1,029 | 985 |
Total current liabilities | 5,904 | 4,884 |
Operating lease liabilities, net of current portion | 929 | 1,454 |
Deferred revenue | 12,000 | |
Total liabilities | 18,833 | 6,338 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 200,000,000 shares authorized at June 30, 2021 and December 31, 2020; 13,001,105 and 12,932,377 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 13 | 13 |
Additional paid-in capital | 226,211 | 224,363 |
Accumulated deficit | (168,725) | (149,884) |
Total stockholders’ equity | 57,499 | 74,492 |
Total liabilities and stockholders’ equity | $ 76,332 | $ 80,830 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 200,000,000 | 200,000,000 |
Common stock shares issued | 13,001,105 | 12,932,377 |
Common stock shares outstanding | 13,001,105 | 12,932,377 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating expenses: | ||||
Research and development | $ 7,505 | $ 2,103 | $ 12,275 | $ 5,067 |
General and administrative | 3,560 | 2,442 | 6,621 | 3,726 |
Total operating expenses | 11,065 | 4,545 | 18,896 | 8,793 |
Loss from operations | (11,065) | (4,545) | (18,896) | (8,793) |
Other income: | ||||
Interest income | 26 | 5 | 55 | 21 |
Total other income | 26 | 5 | 55 | 21 |
Net loss | (11,039) | (4,540) | (18,841) | (8,772) |
Comprehensive loss | $ (11,039) | $ (4,540) | $ (18,841) | $ (8,772) |
Net loss per share attributable to common stockholders—basic and diluted | $ (0.85) | $ (0.56) | $ (1.45) | $ (2.11) |
Weighted-average common shares outstanding—basic and diluted | 12,991,837 | 8,182,725 | 12,968,820 | 4,206,793 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (unaudited) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ (123,338) | $ 130,666 | $ 4,419 | $ (127,757) | |
Balance, Shares at Dec. 31, 2019 | 209,119,674 | 230,860 | |||
Issuance of Series C redeemable convertible preferred stock, net of issuance costs | $ 29,446 | ||||
Issuance of Series C redeemable convertible preferred stock, net of issuance costs, Shares | 78,306,611 | ||||
Accretion of convertible preferred stock to redemption value | (115) | (115) | |||
Temporary equity, Accretion of convertible preferred stock to redemption value | $ 115 | ||||
Issuance of common stock warrants in conjunction with sale of Series C redeemable convertible preferred stock | 740 | 740 | |||
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering | 160,227 | $ (160,227) | $ 8 | 160,219 | |
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering, Shares | (287,426,285) | 8,335,248 | |||
Issuance of common stock from initial public offering, net of issuance costs | 57,328 | $ 4 | 57,324 | ||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 4,025,000 | ||||
Vesting of restricted common stock | 19,661 | ||||
Issuance of common stock upon exercise of warrants | $ 1 | (1) | |||
Issuance of common stock upon exercise of warrants, Shares | 313,794 | ||||
Stock-based compensation | 753 | 753 | |||
Net loss | (8,772) | (8,772) | |||
Balance at Jun. 30, 2020 | 86,823 | $ 13 | 223,339 | (136,529) | |
Balance, Shares at Jun. 30, 2020 | 12,924,563 | ||||
Balance at Mar. 31, 2020 | (126,781) | $ 160,197 | 5,208 | (131,989) | |
Balance, Shares at Mar. 31, 2020 | 287,426,285 | 230,860 | |||
Accretion of convertible preferred stock to redemption value | (30) | (30) | |||
Temporary equity, Accretion of convertible preferred stock to redemption value | $ 30 | ||||
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering | 160,227 | $ (160,227) | $ 8 | 160,219 | |
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering, Shares | (287,426,285) | 8,335,248 | |||
Issuance of common stock from initial public offering, net of issuance costs | 57,328 | $ 4 | 57,324 | ||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 4,025,000 | ||||
Vesting of restricted common stock | 19,661 | ||||
Issuance of common stock upon exercise of warrants | $ 1 | (1) | |||
Issuance of common stock upon exercise of warrants, Shares | 313,794 | ||||
Stock-based compensation | 619 | 619 | |||
Net loss | (4,540) | (4,540) | |||
Balance at Jun. 30, 2020 | 86,823 | $ 13 | 223,339 | (136,529) | |
Balance, Shares at Jun. 30, 2020 | 12,924,563 | ||||
Balance at Dec. 31, 2020 | 74,492 | $ 13 | 224,363 | (149,884) | |
Balance, Shares at Dec. 31, 2020 | 12,932,377 | ||||
Exercise of common stock options | $ 593 | 593 | |||
Exercise of common stock options, Shares | 68,728 | 68,728 | |||
Stock-based compensation | $ 1,255 | 1,255 | |||
Net loss | (18,841) | (18,841) | |||
Balance at Jun. 30, 2021 | 57,499 | $ 13 | 226,211 | (168,725) | |
Balance, Shares at Jun. 30, 2021 | 13,001,105 | ||||
Balance at Mar. 31, 2021 | 67,551 | $ 13 | 225,224 | (157,686) | |
Balance, Shares at Mar. 31, 2021 | 12,962,768 | ||||
Exercise of common stock options | 331 | 331 | |||
Exercise of common stock options, Shares | 38,337 | ||||
Stock-based compensation | 656 | 656 | |||
Net loss | (11,039) | (11,039) | |||
Balance at Jun. 30, 2021 | $ 57,499 | $ 13 | $ 226,211 | $ (168,725) | |
Balance, Shares at Jun. 30, 2021 | 13,001,105 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Common Stock | ||
Payments of Stock Issuance Costs | $ 7,072 | $ 7,072 |
Series C Redeemable Convertible Preferred Stock | ||
Temporary equity, issuance costs | $ 201 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (18,841,000) | $ (8,772,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 1,255,000 | 753,000 |
Depreciation expense | 373,000 | 21,000 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 297,000 | (2,400,000) |
Operating lease right-of-use assets | 467,000 | 440,000 |
Accounts payable | 743,000 | 138,000 |
Accrued expenses and other current liabilities | (22,000) | (1,237,000) |
Operating lease liabilities | (481,000) | (438,000) |
Deferred revenue | 12,000,000 | |
Net cash used in operating activities | (4,209,000) | (11,495,000) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,785,000) | (85,000) |
Net cash used in investing activities | (1,785,000) | (85,000) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of underwriting discounts | 59,892,000 | |
Payment of initial public offering costs | (1,708,000) | |
Payment of deferred offering expenses | (146,000) | |
Proceeds from exercise of stock options | 593,000 | |
Net cash provided by financing activities | 447,000 | 88,371,000 |
Net (decrease) increase in cash and cash equivalents | (5,547,000) | 76,791,000 |
Cash and cash equivalents and restricted cash, beginning of period | 74,922,000 | 10,137,000 |
Cash and cash equivalents and restricted cash, end of period | 69,375,000 | 86,928,000 |
Supplemental disclosure of non-cash financing and investing activities: | ||
Property and equipment purchases included in accounts payable | 363,000 | 30,000 |
Conversion of redeemable convertible preferred stock | 160,227,000 | |
Accretion of redeemable convertible preferred stock to redemption value | 115,000 | |
Right-of-use asset obtained in exchange of operating lease obligations | 13,000 | |
Deferred offering costs included in accounts payable and accrued expense | $ 97,000 | 630,000 |
Series C Preferred Stock | ||
Cash flows from financing activities: | ||
Proceeds from the sale of Series C redeemable convertible preferred stock | 30,392,000 | |
Payment of offering costs related to sale of Series C redeemable convertible preferred stock | (205,000) | |
Supplemental disclosure of non-cash financing and investing activities: | ||
Allocation of Series C redeemable convertible preferred stock to common stock warrant | 740,000 | |
Series C redeemable convertible preferred stock stock issuance costs included in accounts payable and accrued expense | $ 1,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Lyra Therapeutics, Inc. (the “Company”) is a clinical-stage therapeutics company focused on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose and throat (“ENT”) diseases. The Company’s proprietary technology platform, XTreo, is designed to precisely and consistently deliver medicines directly to the affected tissue for sustained periods with a single administration. The Company’s initial product candidates, LYR-210 and LYR-220, are bioresorbable polymeric matrices designed to be administered in a brief, non-invasive, in-office procedure and intended to deliver up to six months of continuous drug therapy to the sinonasal passages for the treatment of chronic rhinosinusitis (“CRS”). The Company was incorporated as a Delaware corporation on November 21, 2005 and is located in Watertown, Massachusetts. The Company is subject to risks common to companies in the therapeutics and pharmaceutical industry, including but not limited to, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development by competitors of technological innovations, reliance on third party manufacturers, ability to transition from pilot-scale manufacturing to large-scale production of products and the need to obtain adequate additional financing to fund the development of its product candidates. Prior to our initial public offering (“IPO”), the Company has funded its operations with proceeds from sales of redeemable convertible preferred stock and funding from government contracts. The Company has incurred recurring net losses since inception and had net losses of approximately $18.8 million and $8.8 million for the six months ended June 30, 2021 and 2020, respectively. In addition, the Company has an accumulated deficit of approximately $168.7 million at June 30, 2021. The Company expects to continue to generate operating losses for the foreseeable future. At June 30, 2021, the Company had approximately $69.0 million of cash and cash equivalents. On May 5, 2020, the Company completed its IPO, in which the Company issued and sold 4,025,000 shares of its common stock, including 525,000 shares pursuant to the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $16.00 per share, for aggregate gross proceeds of $64.4 million. The Company received approximately $57.3 million in net proceeds after deducting underwriting discounts and offering expenses paid by the Company. The Company believes that its cash and cash equivalents as of June 30, 2021 will be sufficient to fund the Company’s operating plan for a period of at least one year from the issuance date of the condensed consolidated financial statements. The Company will need additional financing to support its continuing operations and pursue its growth strategy. Until such time as the Company can generate significant revenue from product sales, if ever, it expects to finance its operations through a combination of equity or debt financings, collaboration agreements, strategic alliances and licensing arrangements. The Company may be unable to raise additional funds or enter into such other agreements when needed on favorable terms or at all. The inability to obtain funding as and when needed would have a negative impact on the Company’s financial condition and ability to pursue its business strategies. If the Company is unable to obtain funding when needed, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or the Company may be unable to continue operations. The Company will need to generate significant revenue to achieve profitability, and it may never do so. Upon the completion of the IPO of its common stock in May 2020, all outstanding redeemable convertible preferred stock of the Company converted into shares of common stock and all outstanding warrants to purchase common stock were automatically cashless exercised. COVID-19 Pandemic and CARES Act On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus subsequently spread globally beyond its point of origin. On March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies, including by causing disruptions in the supply of the Company’s product candidates and the conduct of current and future clinical trials. In addition, the COVID-19 pandemic may affect the operations of the Food and Drug Administration and other health authorities, which could result in delays of reviews and approvals, including with respect to the Company’s product candidates. In light of developments relating to the COVID-19 pandemic, the Company discontinued enrollment at 67 patients in its Phase 2 LANTERN clinical trial and did not enroll patients in the United States. Additionally, while the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce the Company’s ability to access capital, which could negatively impact the Company’s short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change, including the length of time needed to vaccinate a significant segment of the global population and effectiveness of the vaccines with respect to the new variants of the virus. The Company does not yet know the full extent of potential delays or impacts on its business, financing or clinical trial activities or on healthcare systems or the global economy as a whole. However, these effects could have a material impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which the Company relies. On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company deferred the employer side social security payments. The CARES Act also appropriated funds for the SBA Paycheck Protection Program loans that are forgivable in certain situations to promote continued employment, as well as Economic Injury Disaster Loans to provide liquidity to small businesses harmed by COVID-19. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law in order to provide further stimulus and support to those affected by the COVID-19 pandemic. The Company has not and does not plan on obtaining funding from such loans. The Company does not believe the CARES Act or the Consolidated Appropriations Act, 2021 will have a material impact on its financial condition, results of operations, or liquidity. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). The condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2021 and the results of its operations and its cash flows for the three and six months ended June 30, 2021 and 2020. The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 9, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 9, 2021. Since the date of those financial statements, there have been no changes to its significant accounting policies except as noted below. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, expenses and related disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of expenses during the reporting period. On an ongoing basis, the Company’s management evaluates its estimates, which include but are not limited to management’s judgments of accrued expenses, fair value of common stock, valuation of share-based awards, warrants to purchase common stock and deferred income taxes. Due to the uncertainty inherent in such estimates, actual results may differ from these estimates. The Company utilizes significant estimates and assumptions in determining the fair value of its common stock. The Company has utilized various valuation methodologies to estimate the fair value of its common stock. Each valuation methodology includes estimates and assumptions that require the Company’s judgment. These estimates and assumptions include a number of objective and subjective factors, including external market conditions, the prices at which the Company sold shares of preferred stock, the superior rights and preferences of securities senior to the Company’s common stock at the time of, and the likelihood of, achieving a liquidity event, such as an initial public offering or sale. Significant changes to the key assumptions used in the valuations could result in different fair values of common stock at each valuation date. Restricted Cash The Company had restricted cash of approximately $0.3 million as of June 30, 2021 and December 31, 2020, which was held in certificates of deposit at the Company’s financial institution to secure the Company’s letter of credit for its facility lease. Concentrations of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains all its cash and cash equivalents at a single accredited financial institution, in amounts that exceed federally insured limits. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign exchange hedging arrangements. Revenue Recognition Under ASC Topic 606, Revenue from Contracts with Customers Once a contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. The identification of material rights requires judgments related to the determination of the value of the underlying good or service relative to the option exercise price. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company assesses whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires management to make judgments about the individual promised goods or services and whether such are separable from the other aspects of the contractual relationship. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct) and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. The Company also considers the intended benefit of the contract in assessing whether a promised good or service is separately identifiable from other promises in the contract. If a promised good or service is not distinct, an entity is required to combine that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The transaction price is then determined and allocated to the identified performance obligations in proportion to their standalone selling prices (“SSP”) on a relative SSP basis. SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. Determining the SSP for performance obligations requires significant judgment. In developing the SSP for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. The Company validates the SSP for performance obligations by evaluating whether changes in the key assumptions used to determine the SSP will have a significant effect on the allocation of arrangement consideration between multiple performance obligations. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the promised goods or services to a customer. The Company determines the amount of variable consideration by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is constrained to the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment. If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. For arrangements with licenses of intellectual property that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company assessed its revenue generating arrangement in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied, either at a point in time or over time, and if over time recognition is based on the use of an output or input method. Collaborative arrangement revenue On May 31, 2021, the Company entered into a License and Collaboration Agreement (“LianBio License Agreement”) with LianBio Inflammatory Limited (“LianBio”) to develop and commercialize LYR-210 in Greater China (mainland China, Hong Kong, Taiwan, and Macau), South Korea, Singapore and Thailand. Under the terms of the LianBio License Agreement, the Company received an upfront payment of $12.0 million and is eligible to receive up to $135.0 million in future payments based upon the achievement of specified development, regulatory and commercialization milestones. Upon commercialization on a region-by-region basis, the Company will be entitled to receive low double-digit royalties based on net sales of LYR-210 in the licensed territories. LianBio will be responsible for the clinical development and commercialization of LYR-210 in the licensed territories, and the Company will retain all rights to LYR-210 in all other geographies. As part of the LianBio License Agreement, LianBio will also have the first right to obtain development and commercial rights in the licensed territories to the Company’s LYR-220 product candidate. To date, the Company has not recognized any collaboration revenue from the LianBio License Agreement. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements Royalty and other revenue The LianBio License Agreement includes an out-licensing component that is within the scope of ASC 606. The terms of the LianBio License Agreement include the license of functional intellectual property, given the functionality of the intellectual property is not expected to change substantially as a result of the licensor’s ongoing activities, and includes payment of the following: non-refundable up-front license fee; development and regulatory milestone payments and milestone payments based on the level of sales; and royalties on net sales of licensed products. If considered a separate performance obligation, nonrefundable up-front license fees are recognized as revenue at a point in time when the licensed intellectual property is made available for the customer’s use and benefit, which is generally at the inception of the arrangement. Development and regulatory milestone fees, which are a type of variable consideration, are recognized as revenue to the extent that it is probable that a significant reversal will not occur. The Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. Net Loss per Share The Company has reported losses since inception and has computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. The Company has computed diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock, warrants to purchase common stock and redeemable convertible preferred stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and basic and diluted loss per share have been the same. Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (11,039 ) $ (4,540 ) $ (18,841 ) $ (8,772 ) Accretion of redeemable convertible preferred stock — (30 ) — (115 ) Net loss attributable to common stockholders $ (11,039 ) $ (4,570 ) $ (18,841 ) $ (8,887 ) Denominator: Weighted-average common shares—basic and diluted 12,991,837 8,182,725 12,968,820 4,206,793 Net loss per share attributable to common stockholders—basic and diluted $ (0.85 ) $ (0.56 ) $ (1.45 ) $ (2.11 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares retroactively adjusted): Six Months Ended June 30, 2021 2020 Stock options 1,764,499 1,347,394 Total 1,764,499 1,347,394 Recently Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. In May 2014, the FASB issued Accounting Standards Update (“ASU”) 606, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company did not have financial assets and liabilities measured at fair value at June 30, 2021 and December 31, 2020. There have been no changes to the valuation methods used during the three and six months ended June 30, 2021 and 2020. There were no transfers within the fair value hierarchy during the three and six months ended June 30, 2021 and 2020. The carrying values of the Company’s accounts payable and accrued expenses approximate their fair values due to the short-term nature of these liabilities. In connection with the Company’s sale of Series C redeemable convertible preferred stock (“Series C Preferred Stock”) in January 2020, the Company issued to investors warrants for the purchase of common stock (“Warrants”). The proceeds from the issuance of the Series C Preferred Stock were allocated between the Series C Preferred Stock and Warrants based on their relative fair values at the time of issuance. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of the following at June 30, 2021 and December 31, 2020 (in thousands): June 30, December 31, 2021 2020 Property and equipment: Laboratory equipment $ 4,845 $ 3,277 Computer software and equipment 668 650 Office furniture and fixtures 301 301 Leasehold improvements 677 317 Construction in progress 613 498 $ 7,104 $ 5,043 Accumulated depreciation (3,251 ) (2,878 ) Property and equipment, net $ 3,853 $ 2,165 The Company recognized approximately $0.3 million and $13,000 of depreciation expense for the three months ended June 30, 2021 and 2020, respectively, and $0.4 million and $21,000 of depreciation expense for the six months ended June 30, 2021 and 2020, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands): June 30, December 31, 2021 2020 Payroll and employee related expenses $ 1,805 $ 1,892 Third-party research and development expenses 532 381 Professional and consulting fees 573 555 Other 66 149 Total accrued expenses and other current liabilities $ 2,976 $ 2,977 |
Preferred and Common Stock
Preferred and Common Stock | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Preferred and Common Stock | 6. Preferred and Common Stock On May 5, 2020, the Company filed a restated certificate of incorporation which authorizes its Board of Directors to issue up to 200,000,000 shares of common stock, par value $0.001 per share and 10,000,000 shares of undesignated preferred stock, par value $0.001 per share. The holders of common stock are entitled to one vote for each share held. Common stockholders are not entitled to receive dividends, unless declared by the Board of Directors. The Company’s Board of Directors approved a one-for-34.483 reverse stock split of its issued and outstanding common stock and stock options and a proportional adjustment to the existing conversion ratios for the Company’s redeemable convertible preferred stock pursuant to an amendment to the Company’s amended and restated certificate of incorporation effective as of April 27, 2020. Accordingly, all common stock shares, per share amounts, and additional paid in capital amounts for all periods presented in the accompanying condensed consolidated financial statements and notes thereto have been retroactively adjusted, where applicable, to reflect the reverse stock split. In May 2020, the Company completed its IPO in which the Company issued and sold 4,025,000 shares of its common stock, including 525,000 shares pursuant to the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $16.00 per share, for aggregate gross proceeds of $64.4 million. The Company received approximately $57.3 million in net proceeds after deducting underwriting discounts and offering expenses paid by the Company. In connection with this financing, all outstanding shares of redeemable convertible preferred stock converted into 8,335,248 shares of the Company’s common stock, all outstanding Warrants were automatically cashless exercised resulting in the issuance of 313,794 shares of the Company’s stock and the issuance to one of our directors, in lieu of compensation payable by the Company under a consulting agreement, of 19,661 fully vested shares of the Company’s common stock. The Company currently has an effective shelf registration statement on Form S-3 (No. 333-256020) filed with the SEC on May 11, 2021 (“Form S-3”), under which it may offer from time to time in one or more offerings any combination of common and preferred stock, debt securities, warrants and units of up to $250.0 million in the aggregate. As of June 30, 2021, the Company has not sold any securities under the Form S-3. On May 11, 2021, the Company entered into an Open Market Sales Agreement (“2021 ATM Agreement”) with Jefferies LLC (“Jefferies”) to sell shares of its common stock, from time to time, with aggregate gross sales proceeds of up to $50.0 million, through an at-the-market equity offering program under which Jefferies will act as the Company’s sales agent. As of June 30, 2021, the Company has received no proceeds from the sale of shares of common stock pursuant to the 2021 ATM Agreement. The Company has reserved for future issuances the following shares of common stock as of June 30, 2021: As of June 30, 2021 Stock options 3,337,220 Employee stock purchase plan 214,661 Total 3,551,881 Warrants In conjunction with the issuance of the Series C Preferred Stock, the Company issued Warrants to purchase 681,256 shares of common stock at an exercise price of $8.63 per share. The Company classified the Warrants as equity in the condensed consolidated balance sheets in accordance with the guidance in ASC 815, Derivatives and Hedging U pon the completion of the IPO of its common stock in May 2020, all outstanding W arrants were automatically cashless exercised resulting in the issuance of 313,794 shares of the Company’s common stock . |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 7. Stock-Based Compensation Expense The Company adopted the 2016 Equity Incentive Plan (“2016 Plan”) in February 2016 and amended it in June 2017 and June 2018. Upon adoption of the 2016 Plan, no further grants were made under the 2005 Equity Incentive Plan (“2005 Plan”). In April 2020, the Company’s Board of Directors adopted the Company’s 2020 Incentive Award Plan (“2020 Plan”, and together with the 2016 Plan and 2005 Plan, the “Plans”), and upon effectiveness of the 2020 Plan, the Company ceased granting equity-based awards under the 2016 Plan. The 2020 Plan provides for grant of incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock, dividend equivalents, restricted stock units, performance awards and other share and cash-based awards to employees and consultants and members of the Board of Directors of the Company and its subsidiaries. The initial number of shares of the Company’s common stock that may be issued under the 2020 Plan is 2,100,000 shares plus the number of shares of the Company’s common stock underlying outstanding awards under the 2005 Plan and 2016 Plan as of the effective date of the 2020 Plan that expire, lapse or are terminated, exchanged for cash, surrendered, repurchased, canceled or forfeited following the effective date of the 2020 Plan. The number of shares available under the 2020 Plan will automatically increase on January 1st of each year from 2021 to 2030 by the lesser of (i) 4% of the number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) a smaller number of shares determined by the Company’s Board of Directors. However, no more than 8,800,000 shares may be issued under the 2020 Plan pursuant to the exercise of incentive stock options. On January 1, 2021, the shares available for grant under the 2020 Plan was automatically increased by 517,295. As of June 30, 2021, the Company had 1,572,721 shares available for issuance under the 2020 Plan. All stock option grants are nonqualified stock options except option grants to employees and officers intended to qualify as incentive stock options under the Internal Revenue Code of 1986, as amended. Stock options may not be granted at less than the fair market value of the Company’s common stock on the date of grant. Vesting periods of awards are determined by the Board of Directors or its compensation committee. Vesting periods of awards granted to date range from vesting upon grant to vesting over a four-year Stock-based compensation expense included in the Company’s condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 146 $ 15 $ 288 $ 55 General and administrative 510 604 967 698 Total $ 656 $ 619 $ 1,255 $ 753 The Company did not record any stock-based compensation associated with milestone-based awards in the three and six months ended June 30, 2021 and 2020. The fair value of each stock option granted to employees, directors and non-employees was estimated on the date of grant using the Black-Scholes option-pricing model, with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Risk-free interest rate 0.9 % 0.4 % 0.7 % 0.6 % Expected dividend yield — % — % — % — % Expected term (in years) 5.7 6.0 6.0 6.0 Expected volatility 84.7 % 80.6 % 85.3 % 80.1 % A summary of the stock option activity under the Plans for the six months ended June 30, 2021 was as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding December 31, 2020 1,428,886 $ 10.41 7.7 $ 5,165 Granted 439,700 10.27 Exercised (68,728 ) 8.63 Cancelled (35,359 ) 11.39 Outstanding at June 30, 2021 1,764,499 $ 10.42 8.0 $ 2,979 Exercisable at June 30, 2021 719,441 $ 9.53 6.7 $ 2,048 Vested and expected to vest at June 30, 2021 1,764,499 $ 10.42 8.0 $ 2,979 The weighted-average fair value of options granted to employees, directors and non-employees during the three months ended June 30, 2021 and 2020 was $5.49 and $10.71, respectively, and $7.28 and $9.88 for the six months ended June 30, 2021 and 2020, respectively. The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. The aggregate intrinsic value of stock options exercised during the three months ended June 30, 2021 and 2020 was approximately $72,000 and $0, respectively, and $0.2 million and $0 during the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, total unrecognized stock-based compensation expense relating to unvested stock options was approximately $7.9 million. This amount is expected to be recognized over a weighted-average period of 3.0 years. Additionally, as of June 30, 2021, there was approximately $36,000 of unrecognized stock-based compensation related to a stock option award related to the achievement of a revenue-based milestone. As the Company believes the achievement of the revenue-based milestone is currently not probable, it has not recorded any stock-based compensation related to this award. The Company will continue to assess the probability of achieving the revenue-based milestone at each reporting period. 2020 Employee Stock Purchase Plan In April 2020, the Company’s Board of Directors adopted the Company’s 2020 Employee Stock Purchase Plan (“2020 ESPP”). The 2020 ESPP is structured as a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, as amended, and is not subject to the provisions of the Employee Retirement Income Security Act of 1974. The Company initially reserved 150,000 shares of common stock for issuance under the 2020 ESPP. In addition, the number of shares available for issuance under the 2020 ESPP will be annually increased on January 1st of each year from 2021 to 2030 by the lesser of (i) 0.5% of the number of shares of common stock outstanding on the final day of the immediately preceding calendar year and (ii) such smaller number of shares as is determined by the Company’s Board of Directors, provided that no more than 987,500 shares of common stock may be issued under the 2020 ESPP. On January 1, 2021, the shares available for grant under the 2020 ESPP was automatically increased by 64,661. The 2020 ESPP permits eligible participants to purchase common stock through payroll deductions of up to a specified percentage of their eligible compensation. On the first trading day of each offering period, each participant will automatically be granted an option to purchase shares of the Company’s common stock. The option will expire at the end of the applicable offering period, and will be exercised at that time to the extent of the payroll deductions accumulated during the offering period, subject to the limits set forth in the 2020 ESPP. The purchase price of the shares, in the absence of a contrary designation, will be 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the purchase date. As of June 30, 2021, no shares have been issued under the 2020 ESPP. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes During the three and six months ended June 30, 2021 and 2020, the Company recorded a full valuation allowance on federal and state deferred tax assets since management does not forecast the Company to be in a taxable position in the near future. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 9. Leases In August 2007, the Company entered into an operating lease, as amended, for approximately 22,343 square feet of office and laboratory space in Watertown, Massachusetts. In November 2017, the Company amended its lease (“2017 Amendment”) and extended the lease term through April 2023. Initial base rent under the 2017 Amendment was approximately $1.0 million per year. The 2017 Amendment includes annual rent escalations over the term of the operating lease. The Company maintains a letter of credit of approximately $0.3 million securing its obligations under the operating lease which is secured by approximately $0.3 million of certificate of deposits, which are included as restricted cash in the consolidated balance sheets. Rent expense is recognized on a straight-line basis over the terms of occupancy. In addition to the lease discussed above, the Company is party to an April 2020 June 2024 Embedded Leases In April 2021, the Company entered into a clinical supply agreement with a contract manufacturing organization (“CMO”) for clinical production of the Company’s product candidates at an existing facility and a facility under construction. The Company concluded that this clinical supply agreement contains embedded operating leases as the clean rooms in the existing facility and the new facility are designated for the Company’s exclusive use during the term of the agreement and the clinical supply agreement contains fixed commitments and variable costs related to production and material costs in excess of the fixed commitment specified in the agreement. The Company determined that it did not control the new facility during construction and, thus, the lease did not fall in the scope of “build-to-suit” accounting. The term of the clinical supply agreement is five years and will automatically renew for additional successive terms of one year unless either party gives notice of nonrenewal. The lease period for the existing facility is less than 12 months and the Company has elected to apply the practical expedient in ASC Topic 842, Leases At the inception of the new facility lease, the Company determined the fixed commitment specified in the purchase order issued under the clinical supply agreement was not material and did not recognize a lease liability and right-of-use asset. The lease costs under this purchase order will be recognized as expense in the period in which the lease costs are incurred based on performance or usage in accordance with the purchase order. In the future, the Company will purchase product in batches from the CMO in quantities to be set forth on purchase orders submitted to the CMO, within a certain time period, prior to the requested date of delivery. The quantities of product ordered on each purchase order are binding obligations to purchase from the CMO and considered fixed commitments and the Company will recognize the appropriate lease liability and right-of-use asset at that time. The components of lease cost recorded in the Company’s condensed consolidated financial statements were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease Cost: Operating lease cost $ 264 $ 264 $ 528 $ 527 Variable lease cost 1,243 177 1,362 370 Total lease cost $ 1,507 $ 441 $ 1,890 $ 897 Variable lease payments include the Company’s allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building and variable lease costs associated with the Company’s CMO embedded lease arrangement. During the three and six months ended June 30, 2021, the Company recorded as research and development expense approximately $1.1 million of operating lease costs related to the CMO embedded lease. The weighted-average remaining lease term and discount rate related to the Company’s operating leases were as follows: As of June 30, 2021 Weighted-average remaining lease term (in years) 1.8 Weighted-average discount rate 5.5 % Maturity of the Company’s operating lease liabilities in accordance with ASC 842 as of June 30, 2021 were as follows (in thousands): Year ending December 31, Remainder of 2021 $ 553 2022 1,127 2023 382 2024 2 Total maturities 2,064 Less: Amount representing interest (106 ) Present value of operating lease liability 1,958 Less: Current portion of operating lease liability (1,029 ) Total operating lease liability, net of current portion $ 929 |
Collaboration Agreement
Collaboration Agreement | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreement | 10. Collaboration Agreement On May 31, 2021, the Company entered into the LianBio License Agreement to develop and commercialize LYR-210 in Greater China (mainland China, Hong Kong, Taiwan, and Macau), South Korea, Singapore and Thailand. Under the terms of the LianBio Agreement, the Company received an upfront payment of $12.0 million and is eligible to receive up to $135.0 million in future payments based upon the achievement of specified development, regulatory and commercialization milestones. Upon commercialization on a region-by-region basis, the Company will be entitled to receive low double-digit royalties based on net sales of LYR-210 in the licensed territories. LianBio will be responsible for the clinical development and commercialization of LYR-210 in the licensed territories, and the Company will retain all rights to LYR-210 in all other geographies. As part of the LianBio Agreement, LianBio will also have the first right to obtain development and commercial rights in the licensed territories to the Company’s LYR-220 product candidate. At the commencement of the arrangement, one combined unit of accounting was identified, which includes the license to develop and commercialize LYR-210, manufacturing activities related to the supply of LYR-210, and a non-exclusive license to manufacture LYR-210 and obligation to transfer manufacturing technology in the case of a supply failure. The Company determined that these performance obligations represent a single performance obligation because of the specialized nature of the LYR-210 manufacturing process whereby the license cannot be separated from the manufacturing activities related to the supply of LYR-210 and the right to manufacture LYR-210 is only available if there is a supply failure. The Company analyzed the combined unit of accounting to assess whether it falls within the scope of Topic 808, Collaborative Arrangements Consistent with its collaboration accounting policy, the Company will recognize the upfront payment of $12.0 million in future periods as it satisfies its performance obligations. The Company determined that LianBio’s right of first refusal to obtain development and commercial rights in the licensed territories to LYR-220 is an option as any agreement would be negotiated at arm’s length and as a result does not provide a material right to LianBio and as such, is not considered a performance obligation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
COVID-19 Pandemic and CARES Act | COVID-19 Pandemic and CARES Act On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus subsequently spread globally beyond its point of origin. On March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies, including by causing disruptions in the supply of the Company’s product candidates and the conduct of current and future clinical trials. In addition, the COVID-19 pandemic may affect the operations of the Food and Drug Administration and other health authorities, which could result in delays of reviews and approvals, including with respect to the Company’s product candidates. In light of developments relating to the COVID-19 pandemic, the Company discontinued enrollment at 67 patients in its Phase 2 LANTERN clinical trial and did not enroll patients in the United States. Additionally, while the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce the Company’s ability to access capital, which could negatively impact the Company’s short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change, including the length of time needed to vaccinate a significant segment of the global population and effectiveness of the vaccines with respect to the new variants of the virus. The Company does not yet know the full extent of potential delays or impacts on its business, financing or clinical trial activities or on healthcare systems or the global economy as a whole. However, these effects could have a material impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which the Company relies. On March 27, 2020, President Trump signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company deferred the employer side social security payments. The CARES Act also appropriated funds for the SBA Paycheck Protection Program loans that are forgivable in certain situations to promote continued employment, as well as Economic Injury Disaster Loans to provide liquidity to small businesses harmed by COVID-19. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law in order to provide further stimulus and support to those affected by the COVID-19 pandemic. The Company has not and does not plan on obtaining funding from such loans. The Company does not believe the CARES Act or the Consolidated Appropriations Act, 2021 will have a material impact on its financial condition, results of operations, or liquidity. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standard Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). The condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2021 and the results of its operations and its cash flows for the three and six months ended June 30, 2021 and 2020. The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021, any other interim periods, or any future year or period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 9, 2021. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, expenses and related disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of expenses during the reporting period. On an ongoing basis, the Company’s management evaluates its estimates, which include but are not limited to management’s judgments of accrued expenses, fair value of common stock, valuation of share-based awards, warrants to purchase common stock and deferred income taxes. Due to the uncertainty inherent in such estimates, actual results may differ from these estimates. The Company utilizes significant estimates and assumptions in determining the fair value of its common stock. The Company has utilized various valuation methodologies to estimate the fair value of its common stock. Each valuation methodology includes estimates and assumptions that require the Company’s judgment. These estimates and assumptions include a number of objective and subjective factors, including external market conditions, the prices at which the Company sold shares of preferred stock, the superior rights and preferences of securities senior to the Company’s common stock at the time of, and the likelihood of, achieving a liquidity event, such as an initial public offering or sale. Significant changes to the key assumptions used in the valuations could result in different fair values of common stock at each valuation date. |
Restricted Cash | Restricted Cash The Company had restricted cash of approximately $0.3 million as of June 30, 2021 and December 31, 2020, which was held in certificates of deposit at the Company’s financial institution to secure the Company’s letter of credit for its facility lease. |
Concentrations of Credit Risk and Off-Balance Sheet Risk | Concentrations of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains all its cash and cash equivalents at a single accredited financial institution, in amounts that exceed federally insured limits. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other foreign exchange hedging arrangements. |
Revenue Recognition | Revenue Recognition Under ASC Topic 606, Revenue from Contracts with Customers Once a contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations. Arrangements that include rights to additional goods or services that are exercisable at a customer’s discretion are generally considered options. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. The identification of material rights requires judgments related to the determination of the value of the underlying good or service relative to the option exercise price. The exercise of a material right is accounted for as a contract modification for accounting purposes. The Company assesses whether each promised good or service is distinct for the purpose of identifying the performance obligations in the contract. This assessment involves subjective determinations and requires management to make judgments about the individual promised goods or services and whether such are separable from the other aspects of the contractual relationship. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct) and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. The Company also considers the intended benefit of the contract in assessing whether a promised good or service is separately identifiable from other promises in the contract. If a promised good or service is not distinct, an entity is required to combine that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The transaction price is then determined and allocated to the identified performance obligations in proportion to their standalone selling prices (“SSP”) on a relative SSP basis. SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. Determining the SSP for performance obligations requires significant judgment. In developing the SSP for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. The Company validates the SSP for performance obligations by evaluating whether changes in the key assumptions used to determine the SSP will have a significant effect on the allocation of arrangement consideration between multiple performance obligations. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the promised goods or services to a customer. The Company determines the amount of variable consideration by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is constrained to the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment. If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. For arrangements with licenses of intellectual property that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. In determining the transaction price, the Company adjusts consideration for the effects of the time value of money if the timing of payments provides the Company with a significant benefit of financing. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company assessed its revenue generating arrangement in order to determine whether a significant financing component exists and concluded that a significant financing component does not exist. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) each performance obligation is satisfied, either at a point in time or over time, and if over time recognition is based on the use of an output or input method. |
Collaborative arrangement revenue | Collaborative arrangement revenue On May 31, 2021, the Company entered into a License and Collaboration Agreement (“LianBio License Agreement”) with LianBio Inflammatory Limited (“LianBio”) to develop and commercialize LYR-210 in Greater China (mainland China, Hong Kong, Taiwan, and Macau), South Korea, Singapore and Thailand. Under the terms of the LianBio License Agreement, the Company received an upfront payment of $12.0 million and is eligible to receive up to $135.0 million in future payments based upon the achievement of specified development, regulatory and commercialization milestones. Upon commercialization on a region-by-region basis, the Company will be entitled to receive low double-digit royalties based on net sales of LYR-210 in the licensed territories. LianBio will be responsible for the clinical development and commercialization of LYR-210 in the licensed territories, and the Company will retain all rights to LYR-210 in all other geographies. As part of the LianBio License Agreement, LianBio will also have the first right to obtain development and commercial rights in the licensed territories to the Company’s LYR-220 product candidate. To date, the Company has not recognized any collaboration revenue from the LianBio License Agreement. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements |
Royalty and other revenue | Royalty and other revenue The LianBio License Agreement includes an out-licensing component that is within the scope of ASC 606. The terms of the LianBio License Agreement include the license of functional intellectual property, given the functionality of the intellectual property is not expected to change substantially as a result of the licensor’s ongoing activities, and includes payment of the following: non-refundable up-front license fee; development and regulatory milestone payments and milestone payments based on the level of sales; and royalties on net sales of licensed products. If considered a separate performance obligation, nonrefundable up-front license fees are recognized as revenue at a point in time when the licensed intellectual property is made available for the customer’s use and benefit, which is generally at the inception of the arrangement. Development and regulatory milestone fees, which are a type of variable consideration, are recognized as revenue to the extent that it is probable that a significant reversal will not occur. The Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. |
Net Loss per Share | Net Loss per Share The Company has reported losses since inception and has computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. The Company has computed diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock, warrants to purchase common stock and redeemable convertible preferred stock, outstanding during the period determined using the treasury-stock and if-converted methods, except where the effect of including such securities would be antidilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and basic and diluted loss per share have been the same. Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (11,039 ) $ (4,540 ) $ (18,841 ) $ (8,772 ) Accretion of redeemable convertible preferred stock — (30 ) — (115 ) Net loss attributable to common stockholders $ (11,039 ) $ (4,570 ) $ (18,841 ) $ (8,887 ) Denominator: Weighted-average common shares—basic and diluted 12,991,837 8,182,725 12,968,820 4,206,793 Net loss per share attributable to common stockholders—basic and diluted $ (0.85 ) $ (0.56 ) $ (1.45 ) $ (2.11 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares retroactively adjusted): Six Months Ended June 30, 2021 2020 Stock options 1,764,499 1,347,394 Total 1,764,499 1,347,394 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. In May 2014, the FASB issued Accounting Standards Update (“ASU”) 606, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (11,039 ) $ (4,540 ) $ (18,841 ) $ (8,772 ) Accretion of redeemable convertible preferred stock — (30 ) — (115 ) Net loss attributable to common stockholders $ (11,039 ) $ (4,570 ) $ (18,841 ) $ (8,887 ) Denominator: Weighted-average common shares—basic and diluted 12,991,837 8,182,725 12,968,820 4,206,793 Net loss per share attributable to common stockholders—basic and diluted $ (0.85 ) $ (0.56 ) $ (1.45 ) $ (2.11 ) |
Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share | The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share because to include them would be anti-dilutive (in common stock equivalent shares retroactively adjusted): Six Months Ended June 30, 2021 2020 Stock options 1,764,499 1,347,394 Total 1,764,499 1,347,394 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following at June 30, 2021 and December 31, 2020 (in thousands): June 30, December 31, 2021 2020 Property and equipment: Laboratory equipment $ 4,845 $ 3,277 Computer software and equipment 668 650 Office furniture and fixtures 301 301 Leasehold improvements 677 317 Construction in progress 613 498 $ 7,104 $ 5,043 Accumulated depreciation (3,251 ) (2,878 ) Property and equipment, net $ 3,853 $ 2,165 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands): June 30, December 31, 2021 2020 Payroll and employee related expenses $ 1,805 $ 1,892 Third-party research and development expenses 532 381 Professional and consulting fees 573 555 Other 66 149 Total accrued expenses and other current liabilities $ 2,976 $ 2,977 |
Preferred and Common Stock (Tab
Preferred and Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuances | The Company has reserved for future issuances the following shares of common stock as of June 30, 2021: As of June 30, 2021 Stock options 3,337,220 Employee stock purchase plan 214,661 Total 3,551,881 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense included in the Company’s condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 146 $ 15 $ 288 $ 55 General and administrative 510 604 967 698 Total $ 656 $ 619 $ 1,255 $ 753 |
Schedule of Fair Value of Stock Option Estimated on Date of Grant Using Black-Scholes Option-Pricing Model | The fair value of each stock option granted to employees, directors and non-employees was estimated on the date of grant using the Black-Scholes option-pricing model, with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Risk-free interest rate 0.9 % 0.4 % 0.7 % 0.6 % Expected dividend yield — % — % — % — % Expected term (in years) 5.7 6.0 6.0 6.0 Expected volatility 84.7 % 80.6 % 85.3 % 80.1 % |
Summary of Stock Option Activity Under Plans | A summary of the stock option activity under the Plans for the six months ended June 30, 2021 was as follows: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding December 31, 2020 1,428,886 $ 10.41 7.7 $ 5,165 Granted 439,700 10.27 Exercised (68,728 ) 8.63 Cancelled (35,359 ) 11.39 Outstanding at June 30, 2021 1,764,499 $ 10.42 8.0 $ 2,979 Exercisable at June 30, 2021 719,441 $ 9.53 6.7 $ 2,048 Vested and expected to vest at June 30, 2021 1,764,499 $ 10.42 8.0 $ 2,979 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost recorded in the Company’s condensed consolidated financial statements were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease Cost: Operating lease cost $ 264 $ 264 $ 528 $ 527 Variable lease cost 1,243 177 1,362 370 Total lease cost $ 1,507 $ 441 $ 1,890 $ 897 |
Summary of Weighted-Average Remaining Lease Term and Discount Rate Related to Operating Leases | The weighted-average remaining lease term and discount rate related to the Company’s operating leases were as follows: As of June 30, 2021 Weighted-average remaining lease term (in years) 1.8 Weighted-average discount rate 5.5 % |
Summary of Maturity of Operating Lease Liabilities | Maturity of the Company’s operating lease liabilities in accordance with ASC 842 as of June 30, 2021 were as follows (in thousands): Year ending December 31, Remainder of 2021 $ 553 2022 1,127 2023 382 2024 2 Total maturities 2,064 Less: Amount representing interest (106 ) Present value of operating lease liability 1,958 Less: Current portion of operating lease liability (1,029 ) Total operating lease liability, net of current portion $ 929 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | May 05, 2020USD ($)$ / sharesshares | Mar. 11, 2020Patient | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($) |
Organization And Basis Of Presentation [Line Items] | |||||||
Entity incorporation, date of incorporation | Nov. 21, 2005 | ||||||
Net losses | $ 11,039 | $ 4,540 | $ 18,841 | $ 8,772 | |||
Accumulated deficit | (168,725) | (168,725) | $ (149,884) | ||||
Cash and cash equivalents | $ 69,046 | $ 69,046 | $ 74,593 | ||||
Net proceeds from initial public offering | $ 59,892 | ||||||
Number of patients | Patient | 67 | ||||||
Common Stock | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | shares | 4,025,000 | 4,025,000 | |||||
Gross proceeds from initial public offering | $ 64,400 | ||||||
Net proceeds from initial public offering | $ 57,300 | ||||||
IPO | Common Stock | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | shares | 4,025,000 | ||||||
Shares issued and sold, public offering price | $ / shares | $ 16 | ||||||
Exercise of Underwriters' Option | Common Stock | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | shares | 525,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | May 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Line Items] | |||
Restricted cash | $ 0.3 | $ 0.3 | |
Lan Bio Agreement | |||
Accounting Policies [Line Items] | |||
Upfront payment received | $ 12 | ||
Clinical Supply Agreement | |||
Accounting Policies [Line Items] | |||
Upfront payment received | 12 | ||
Upfront payment recognition In future periods To settlement of obligation | $ 135 | $ 12 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net loss | $ (11,039) | $ (4,540) | $ (18,841) | $ (8,772) |
Accretion of redeemable convertible preferred stock | (30) | (115) | ||
Net loss attributable to common stockholders | $ (11,039) | $ (4,570) | $ (18,841) | $ (8,887) |
Denominator: | ||||
Weighted-average common shares outstanding—basic and diluted | 12,991,837 | 8,182,725 | 12,968,820 | 4,206,793 |
Net loss per share attributable to common stockholders—basic and diluted | $ (0.85) | $ (0.56) | $ (1.45) | $ (2.11) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share | 1,764,499 | 1,347,394 |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share | 1,764,499 | 1,347,394 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value Disclosures [Abstract] | |||
Financial assets, fair value | $ 0 | $ 0 | |
Financial liabilities, fair value | $ 0 | $ 0 | |
Alternative investment, change in valuation technique | false | false |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7,104 | $ 5,043 |
Accumulated depreciation | (3,251) | (2,878) |
Property and equipment, net | 3,853 | 2,165 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,845 | 3,277 |
Computer Software and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 668 | 650 |
Office Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 301 | 301 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 677 | 317 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 613 | $ 498 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 300,000 | $ 13,000 | $ 373,000 | $ 21,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Payroll and employee related expenses | $ 1,805 | $ 1,892 |
Third-party research and development expenses | 532 | 381 |
Professional and consulting fees | 573 | 555 |
Other | 66 | 149 |
Total accrued expenses and other current liabilities | $ 2,976 | $ 2,977 |
Preferred and Common Stock - Ad
Preferred and Common Stock - Additional Information (Details) | May 11, 2021USD ($) | May 05, 2020USD ($)$ / sharesshares | Jun. 30, 2020shares | Jun. 30, 2021USD ($)Vote$ / sharesshares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020$ / sharesshares | May 31, 2020shares |
Class Of Stock [Line Items] | |||||||
Common stock shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | ||||
Common stock par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred Stock, Shares Authorized | 10,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | ||||||
Common stock, voting rights | The holders of common stock are entitled to one vote for each share held. | ||||||
Number of common stock voting rights | Vote | 1 | ||||||
Reverse stock split of issued and outstanding common stock | one-for-34.483 | ||||||
Net proceeds from initial public offering | $ | $ 59,892,000 | ||||||
Stock and warrants to be issued during period value preferred stock and warrants | $ | $ 250,000,000 | ||||||
Common stock shares issued | 13,001,105 | 12,932,377 | |||||
2021 ATM Agreement | |||||||
Class Of Stock [Line Items] | |||||||
Proceeds to be occured from future issuance of common stock | $ | $ 50,000 | $ 0 | |||||
IPO | |||||||
Class Of Stock [Line Items] | |||||||
Common stock shares issued | 313,794 | ||||||
Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 4,025,000 | 4,025,000 | |||||
Gross proceeds from initial public offering | $ | $ 64,400,000 | ||||||
Net proceeds from initial public offering | $ | $ 57,300,000 | ||||||
Preferred stock converted into common stock | 8,335,248 | ||||||
Number of warrants issued to purchase common stock | 313,794 | 681,256 | |||||
Warrants exercise price, per share | $ / shares | $ 8.63 | ||||||
Common Stock | Director | |||||||
Class Of Stock [Line Items] | |||||||
Vested share of common stock | 19,661 | ||||||
Common Stock | IPO | |||||||
Class Of Stock [Line Items] | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 4,025,000 | ||||||
Shares issued and sold, public offering price | $ / shares | $ 16 | ||||||
Common Stock | Exercise of Underwriters' Option | |||||||
Class Of Stock [Line Items] | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 525,000 | ||||||
Warrants | Series C Redeemable Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Net proceeds from issuance of preferred stock allocated to warrants | $ | $ 700,000 |
Preferred and Common Stock - Sc
Preferred and Common Stock - Schedule of Common Stock Reserved for Future Issuances (Details) | Jun. 30, 2021shares |
Class Of Stock [Line Items] | |
Shares of common stock reserved for future issuances | 3,551,881 |
Stock Options | |
Class Of Stock [Line Items] | |
Shares of common stock reserved for future issuances | 3,337,220 |
Employee stock purchase plan | |
Class Of Stock [Line Items] | |
Shares of common stock reserved for future issuances | 214,661 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2021 | Apr. 30, 2020 | Feb. 29, 2016 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares granted | 439,700 | ||||||
Shares of common stock reserved for future issuances | 3,551,881 | 3,551,881 | |||||
Stock-based compensation | $ 656,000 | $ 619,000 | $ 1,255,000 | $ 753,000 | |||
Weighted-average fair value of options granted to employees, directors and consultants | $ 5.49 | $ 10.71 | $ 7.28 | $ 9.88 | |||
Aggregate intrinsic value of stock options exercised | $ 72,000 | $ 0 | $ 200,000 | $ 0 | |||
Unrecognized stock-based compensation expense relating to unvested stock options | 7,900,000 | $ 7,900,000 | |||||
Unvested stock options expected to be recognized over a weighted-average period | 3 years | ||||||
Milestone-based Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation | 0 | $ 0 | $ 0 | $ 0 | |||
Revenue-based Milestone | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense relating to unvested stock options | $ 36,000 | $ 36,000 | |||||
Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock option expiration period | 10 years | ||||||
2005 and 2016 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares granted | 0 | ||||||
2020 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserved for future issuances | 2,100,000 | ||||||
Maximum number of common shares issued | 8,800,000 | ||||||
Percentage of common shares increase automatically in each year | 4.00% | ||||||
Number of shares available for future grant | 1,572,721 | 1,572,721 | |||||
Increase in Shares available for grant | 517,295 | ||||||
2020 ESPP | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserved for future issuances | 150,000 | ||||||
Maximum number of common shares issued | 987,500 | ||||||
Annual increase in number of shares available for issuance as percentage of outstanding shares common stock on final day of immediately preceding fiscal year | 0.50% | ||||||
Purchase price of shares as percentage lower of fair market value of common stock | 85.00% |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 656 | $ 619 | $ 1,255 | $ 753 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 146 | 15 | 288 | 55 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 510 | $ 604 | $ 967 | $ 698 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Schedule of Fair Value of Stock Option Estimated on Date of Grant Using Black-Scholes Option-Pricing Model (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Risk-free interest rate | 0.90% | 0.40% | 0.70% | 0.60% |
Expected term (in years) | 5 years 8 months 12 days | 6 years | 6 years | 6 years |
Expected volatility | 84.70% | 80.60% | 85.30% | 80.10% |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense - Summary of Stock Option Activity Under Plans (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Shares, Outstanding December 31, 2020 | shares | 1,428,886 | |
Shares, Granted | shares | 439,700 | |
Shares, Exercised | shares | (68,728) | |
Shares, Cancelled | shares | (35,359) | |
Shares, Outstanding at June 30, 2021 | shares | 1,764,499 | 1,428,886 |
Shares, Exercisable at June 2021 | shares | 719,441 | |
Shares, Vested and expected to vest at June 30, 2021 | shares | 1,764,499 | |
Weighted Average Exercise Price, Outstanding December 31, 2020 | $ / shares | $ 10.41 | |
Weighted Average Exercise Price, Granted | $ / shares | 10.27 | |
Weighted Average Exercise Price, Exercised | $ / shares | 8.63 | |
Weighted Average Exercise Price, Cancelled | $ / shares | 11.39 | |
Weighted Average Exercise Price, Outstanding at June 30,2021 | $ / shares | 10.42 | $ 10.41 |
Weighted Average Exercise Price, Exercisable at June 30, 2021 | $ / shares | 9.53 | |
Weighted Average Exercise Price, Vested and expected to vest at June 30, 2021 | $ / shares | $ 10.42 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 8 years | 7 years 8 months 12 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 8 months 12 days | |
Vested and expected to vest, Weighted Average Remaining Contractual Life (in years) | 8 years | |
Aggregate Intrinsic Value, Outstanding December 31, 2020 | $ | $ 2,979 | $ 5,165 |
Aggregate Intrinsic Value, Exercisable at June 30, 2021 | $ | 2,048 | |
Aggregate Intrinsic Value, Vested and expected to vest at June 30, 2021 | $ | $ 2,979 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2017USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 30, 2021 | Dec. 31, 2020USD ($) | Aug. 31, 2007ft² | |
Lessee Lease Description [Line Items] | ||||||||
Initial base rent | $ 1,000 | |||||||
Restricted cash | $ 329 | $ 329 | $ 329 | |||||
Extended lease term | 2023-04 | |||||||
Operating lease cost | 264 | $ 264 | 528 | $ 527 | ||||
Research and Development | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Operating lease cost | $ 1,100 | $ 1,100 | ||||||
Clinical Supply Agreement | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Operating lease period | 5 years | |||||||
Operating Lease, renewal term | 1 year | |||||||
Office and Laboratory | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Area of property | ft² | 22,343 | |||||||
Office Equipment | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Lease initiation date | Apr. 30, 2020 | |||||||
Lease expiration date | Jun. 30, 2024 | |||||||
Certificate of Deposits | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Restricted cash | $ 300 | |||||||
Letter of Credit | ||||||||
Lessee Lease Description [Line Items] | ||||||||
Secured debt obligations | $ 300 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Cost: | ||||
Operating lease cost | $ 264 | $ 264 | $ 528 | $ 527 |
Variable lease cost | 1,243 | 177 | 1,362 | 370 |
Total lease cost | $ 1,507 | $ 441 | $ 1,890 | $ 897 |
Leases - Summary of Weighted-Av
Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rate Related to Operating Leases (Details) | Jun. 30, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 1 year 9 months 18 days |
Weighted-average discount rate | 5.50% |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 553 | |
2022 | 1,127 | |
2023 | 382 | |
2024 | 2 | |
Total maturities | 2,064 | |
Less: Amount representing interest | (106) | |
Present value of operating lease liability | 1,958 | |
Less: Current portion of operating lease liability | (1,029) | $ (985) |
Operating lease liabilities, net of current portion | $ 929 | $ 1,454 |
Collaboration Agreement - Addit
Collaboration Agreement - Additional Information (Details) - USD ($) $ in Millions | May 31, 2021 | Jun. 30, 2021 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Future milestone payments receivable | $ 135 | |
Clinical Supply Agreement | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Upfront payment received | 12 | |
Upfront payment recognition In future periods To settlement of obligation | $ 135 | $ 12 |
Deferred revenue, description | Consistent with its collaboration accounting policy, the Company will recognize the upfront payment of $12.0 million in future periods as it satisfies its performance obligations |