Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Protara Therapeutics, Inc. | |
Trading Symbol | TARA | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,235,731 | |
Amendment Flag | false | |
Entity Central Index Key | 0001359931 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Entity File Number | 001-36694 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-4580525 | |
Entity Address, Address Line One | 345 Park Avenue South | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10010 | |
City Area Code | (646) | |
Local Phone Number | 844-0337 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 46,836 | $ 168,598 |
Restricted cash | 50 | |
Marketable debt securities, current | 37,830 | |
Prepaid expenses and other current assets | 3,153 | 787 |
Total current assets | 87,819 | 169,435 |
Non-current assets: | ||
Restricted cash, non-current | 745 | 745 |
Marketable debt securities, non-current | 60,378 | |
Property and equipment, net | 1,769 | 1,240 |
Operating lease right-of-use asset | 7,648 | 1,060 |
Goodwill | 29,517 | 29,517 |
Other assets, non-current | 1,016 | 1,160 |
Total assets | 188,892 | 203,157 |
Current liabilities: | ||
Accounts payable | 1,403 | 914 |
Accrued expenses | 1,439 | 1,913 |
Operating lease liability, current | 826 | 88 |
Total current liabilities | 3,668 | 2,915 |
Non-current liabilities: | ||
Operating lease liability, non-current | 6,819 | 999 |
Total liabilities | 10,487 | 3,914 |
Commitments and Contingencies (Note 6) | ||
Stockholders’ Equity | ||
Preferred Stock, $0.001 par value, authorized 10,000,000 shares: Series 1 Convertible Preferred Stock, 8,028 shares authorized at June 30, 2021 and December 31, 2020, 8,027 shares issued and outstanding as of June 30, 2021 and December 31, 2020. | ||
Common Stock, $0.001 par value, authorized 100,000,000 shares: Common Stock, 11,233,856 and 11,211,840 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. | 11 | 11 |
Additional Paid in Capital | 251,502 | 245,992 |
Accumulated Deficit | (73,007) | (46,760) |
Accumulated Other Comprehensive Income (Loss) | (101) | |
Total Stockholders’ Equity | 178,405 | 199,243 |
Total Liabilities and Stockholders’ Equity | $ 188,892 | $ 203,157 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 11,233,856 | 11,211,840 |
Common stock, shares outstanding | 11,233,856 | 11,211,840 |
Series 1 Convertible Preferred Stock | ||
Preferred stock, shares authorized | 8,028 | 8,028 |
Preferred stock, shares issued | 8,027 | 8,027 |
Preferred stock, shares outstanding | 8,027 | 8,027 |
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 expense: | ||||
Research & development | $ 5,887 | $ 2,470 | $ 12,927 | $ 5,534 |
General & administrative | 6,905 | 4,796 | 13,445 | 11,891 |
Total operating expenses | 12,792 | 7,266 | 26,372 | 17,425 |
Operating loss | (12,792) | (7,266) | (26,372) | (17,425) |
Other income, net | ||||
Interest income, net | (10) | (126) | (125) | (225) |
Total other income, net | (10) | (126) | (125) | (225) |
Net loss | (12,782) | (7,140) | (26,247) | (17,200) |
Other comprehensive gain (loss): | ||||
Unrealized gains (losses) on available-for-sale marketable debt securities | 63 | (101) | ||
Total other comprehensive gain (loss) | 63 | (101) | ||
Comprehensive Loss | $ (12,719) | $ (7,140) | $ (26,348) | $ (17,200) |
Weighted Average Shares Outstanding, basic and diluted (in Shares) | 11,232,010 | 5,843,203 | 11,229,484 | 5,701,855 |
Net loss per share, basic and diluted (in Dollars per share) | $ (1.14) | $ (1.22) | $ (2.34) | $ (3.02) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Series 1 Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2019 | $ 3 | $ 10,651 | $ (12,782) | $ (2,128) | ||
Balance (in Shares) at Dec. 31, 2019 | 2,627,533 | |||||
Issuance of Common Stock in ArTara Private Placement, net of offering costs | 1,867 | 1,867 | ||||
Issuance of Common Stock in ArTara Private Placement, net of offering costs (in Shares) | 284,875 | |||||
Issuance of Common Stock in Proteon Private Placement, net of offering costs | $ 2 | 12,411 | 12,413 | |||
Issuance of Common Stock in Proteon Private Placement, net of offering costs (in Shares) | 1,896,888 | |||||
Issuance of Series 1 Convertible Preferred Stock in Proteon Private Placement, net of offering costs | 25,319 | 25,319 | ||||
Issuance of Series 1 Convertible Preferred Stock in Proteon Private Placement, net of offering costs (in Shares) | 3,879 | |||||
Reverse business combination | $ 1 | 34,532 | 34,533 | |||
Reverse business combination (in Shares) | 1,033,907 | |||||
Stock-based compensation - restricted stock units | 2,430 | 2,430 | ||||
Stock-based compensation - stock options | 368 | 368 | ||||
Net loss | (10,060) | (10,060) | ||||
Balance at Mar. 31, 2020 | $ 6 | 87,578 | (22,842) | 64,742 | ||
Balance (in Shares) at Mar. 31, 2020 | 3,879 | 5,843,203 | ||||
Stock-based compensation - restricted stock units | 1,315 | 1,315 | ||||
Stock-based compensation - stock options | 514 | 514 | ||||
Net loss | (7,140) | (7,140) | ||||
Balance at Jun. 30, 2020 | $ 6 | 89,407 | (29,982) | 59,431 | ||
Balance (in Shares) at Jun. 30, 2020 | 3,879 | 5,843,203 | ||||
Balance at Dec. 31, 2020 | $ 11 | 245,992 | (46,760) | 199,243 | ||
Balance (in Shares) at Dec. 31, 2020 | 8,027 | 11,211,840 | ||||
Settlement of restricted stock units | (228) | (228) | ||||
Settlement of restricted stock units (in Shares) | 16,766 | |||||
Stock-based compensation - restricted stock units | 1,303 | 1,303 | ||||
Stock-based compensation - stock options | 1,437 | 1,437 | ||||
Unrealized gain (losses) on available-for-sale marketable debt securities | (164) | (164) | ||||
Net loss | (13,465) | (13,465) | ||||
Balance at Mar. 31, 2021 | $ 11 | 248,504 | (60,225) | (164) | 188,126 | |
Balance (in Shares) at Mar. 31, 2021 | 8,027 | 11,228,606 | ||||
Settlement of restricted stock units (in Shares) | 5,250 | |||||
Stock-based compensation - restricted stock units | 1,360 | 1,360 | ||||
Stock-based compensation - stock options | 1,638 | 1,638 | ||||
Unrealized gain (losses) on available-for-sale marketable debt securities | 63 | 63 | ||||
Net loss | (12,782) | (12,782) | ||||
Balance at Jun. 30, 2021 | $ 11 | $ 251,502 | $ (73,007) | $ (101) | $ 178,405 | |
Balance (in Shares) at Jun. 30, 2021 | 8,027 | 11,233,856 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows used in operating activities: | ||
Net loss | $ (26,247) | $ (17,200) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation | 5,738 | 4,627 |
Operating lease right-of-use asset | 401 | 39 |
Depreciation | 87 | 44 |
Amortization of premium on marketable debt securities | 747 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (1,848) | 657 |
Other Assets, non-current | 144 | |
Accounts payable | 489 | 200 |
Accrued expenses | (475) | (1,231) |
Operating lease liabilities | (430) | (15) |
Net cash used in operating activities | (21,394) | (12,879) |
Cash flows (used in)/provided by investing activities: | ||
Cash and restricted cash acquired in connection with the reverse merger with ArTara Therapeutics, Inc. | 3,719 | |
Purchase of marketable debt securities, available-for-sale | (99,574) | |
Purchase of property and equipment | (616) | (241) |
Net cash (used in)/provided by investing activities | (100,190) | 3,478 |
Cash flows (used in)/provided by financing activities: | ||
Proceeds from - ArTara Private Placement, net of offering costs | 1,867 | |
Proceeds from - Common Stock in Proteon Private Placement, net of offering costs | 12,413 | |
Proceeds from - Series 1 Convertible Preferred Stock in Proteon Private Placement, net of offering costs | 25,319 | |
Repurchase of shares in connection with settlement of RSUs | (228) | |
Repayments under short-term debt | (741) | |
Net cash (used in)/provided by financing activities | (228) | 38,858 |
Net (decrease)/increase in cash and cash equivalents and restricted cash | (121,812) | 29,457 |
Cash and cash equivalents and restricted cash - beginning of year | 169,393 | 564 |
Cash and cash equivalents and restricted cash - end of period | 47,581 | 30,021 |
Cash paid for: | ||
Interest | 15 | |
Income Taxes | ||
Non-cash investing and financing activities: | ||
Deferred offering costs recognized that were previously recorded in accrued expenses | 122 | |
Purchase of insurance agreement with notes payable | 1,669 | |
Common stock issued in connection with the reverse merger with ArTara Therapeutics, Inc. | $ 34,533 |
Business, Liquidity and Capital
Business, Liquidity and Capital Resources | 6 Months Ended |
Jun. 30, 2021 | |
Business Liquidity And Capital Resources [Abstract] | |
BUSINESS, LIQUIDITY AND CAPITAL RESOURCES | NOTE 1 – BUSINESS, LIQUIDITY AND CAPITAL RESOURCES Overview Protara Therapeutics, Inc., and its consolidated subsidiaries (“Protara” or the “Company”), is a clinical-stage biopharmaceutical company committed to identifying and advancing transformative therapies for the treatment of cancer and rare diseases with significant unmet needs. Protara’s portfolio includes two development programs utilizing TARA-002, an investigational cell therapy in development for the treatment of lymphatic malformations (“LMs”) and non-muscle invasive bladder cancer (“NMIBC”). The third program in the portfolio is Intravenous (“IV”) Choline Chloride, an investigational phospholipid substrate replacement therapy initially in development for patients receiving parenteral nutrition (“PN”) who have intestinal failure associated liver disease (“IFALD”). The fourth program in the portfolio is Vonapanitase, a recombinant human elastase. Liquidity, Capital Resources and Management Plans As of June 30, 2021 and December 31, 2020, the Company’s cash, cash equivalents, and marketable debt securities were $145,044 and $168,598, respectively. The Company has not generated revenues since its inception and has incurred net losses of $12,782 and $7,140 for the three months ended June 30, 2021 and 2020, respectively, and $26,247 and $17,200 for the six months ended June 30, 2021 and 2020, respectively. During the six months ended June 30, 2021, cash flows used in operating activities were $21,394, consisting primarily of a net loss of $26,247 which includes non-cash stock-based compensation charges of $5,738. Since inception, the Company has met its liquidity requirements principally through the sale of its common stock (“Common Stock”) and series 1 convertible preferred stock (“Series 1 Convertible Preferred Stock”). The Company manages its capital resources to ensure the Company will continue as a going concern. The Company is in the business of developing biopharmaceuticals and has no current or near term revenues. The Company has incurred substantial clinical and other costs in its drug development efforts. The Company will need to raise additional capital in order to fully realize management’s plans. The Company believes that its current financial resources are sufficient to satisfy the Company’s estimated liquidity needs for at least twelve months from the date of issuance of these unaudited condensed consolidated financial statements. Impact of the COVID-19 Pandemic The impact of the COVID-19 pandemic has been and is expected to continue to be extensive in many aspects of society, which has resulted in and will likely continue to result in significant disruptions to the global economy, as well as businesses and capital markets around the world. Severe and/or long-term disruptions in the Company’s operations as a result of COVID-19, including in response to related public health directives and orders, will negatively impact its business, operating results and financial condition. Specifically, the Company anticipates that the stress of COVID-19 on healthcare systems around the globe may negatively impact its ability to conduct clinical trials in the near term due primarily to the lack of resources at clinical trial sites and the resulting inability to enroll patients in the trials. The Company also anticipates that the global impact of COVID-19 will negatively impact its ability to conduct nonclinical studies due primarily to laboratory closures and limited availability of personnel. In addition, while the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, it has significantly disrupted global financial markets, and may limit the Company’s ability to access capital, which could in the future negatively affect its liquidity. A recession or market correction resulting from the spread of COVID-19 could materially affect the Company’s business and the value of its Common Stock. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s significant accounting policies are disclosed in the audited consolidated financial statements and the notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the United States Securities and Exchange Commission (“SEC”) on March 11, 2021 (the “2020 Annual Report”). Except as reflected below, there were no changes to the Company’s significant accounting policies as described in the 2020 Annual Report. Reflected in this note are updates to accounting policies, including the impact of the adoption of new policies. Basis of Presentation The accompanying condensed consolidated financial statements and the related disclosures as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules and regulations of the SEC for interim financial statements. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the 2020 and 2019 audited consolidated financial statements and notes included in the 2020 Annual Report. The December 31, 2020 consolidated balance sheet included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of the Company’s financial position and results of operations for the three and six months ended June 30, 2021 and 2020. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or any other interim period or future year or period. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those which result from using such estimates. Management also utilizes various other estimates, including but not limited to the recoverability of the Company’s net deferred tax assets and related valuation allowance, operating lease right-of-use assets and liabilities, determining the fair value and evaluation for impairment of goodwill and stock-based compensation. The results of any changes in accounting estimates are reflected in the financial statements of the period in which the change becomes evident. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. Actual results may differ materially from those estimates or assumptions. Reclassification Certain amounts in prior periods related to the classification of operating right-of-use assets have been reclassified to conform to current period presentation. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid instruments with an original maturity of three months or less when acquired to be cash equivalents. Cash and cash equivalents are held in depository and money market accounts and are reported at fair value. The Company’s restricted cash balances consist of cash deposits to collateralize letter of credit obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets to the total amount shown in the condensed consolidated statements of cash flows: As of June 30, 2021 2020 Cash and cash equivalents $ 46,836 $ 29,971 Restricted cash, current - 50 Restricted cash, non-current 745 - Total cash, cash equivalents, and restricted cash $ 47,581 $ 30,021 Investments in marketable debt securities At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. The Company classifies investments in marketable debt securities with remaining maturities when purchased of greater than three months as available-for-sale. Investments with a remaining maturity date greater than one year are classified as non-current. All of the Company’s non-current investments have a maturity date that is within two years of the balance sheet date. The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income (loss), net in the condensed consolidated statements of operations and comprehensive loss. Of the 42 securities in a loss position held by the Company, there were no securities with an other-than-temporary impairment at June 30, 2021. There were no securities in a continuous unrealized loss position for greater than twelve months at June 30, 2021. The Company has the ability to hold such securities with an unrealized loss until its forecasted recovery. The Company determined that there was no material change in the credit risk of the above investments. Leases Under ASC 842, lease expense is recognized as a single lease cost on a straight-line basis over the lease term. The lease term consists of non-cancelable periods and may include options to extend or terminate the lease term, when it is reasonably certain such options will be exercised. The Company enters into contracts in the normal course of business and assesses whether any such contracts contain a lease. The Company determines if an arrangement is a lease at inception if it conveys the right to control the identified asset for a period of time in exchange for consideration. The Company classifies leases as operating or financing in nature and records the associated lease liability and right-of-use asset on its balance sheet. The lease liability represents the present value of future lease payments, net of lease incentives, discounted using an incremental borrowing rate, which is a management estimate based on the information available at the commencement date of a lease arrangement. With respect to operating lease arrangements, the Company accounts for lease components, and non-lease components that are fixed, as a single lease component. Non-lease components that are variable are expensed as incurred as in the statement of operations and comprehensive loss. The Company recognizes costs associated with lease arrangements having an initial term of 12 months or less (“short-term leases”) on a straight-line basis over the lease term; such short-term leases are not recorded on the balance sheet. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consists principally of cash, cash equivalents and investments in marketable debt securities. The Company currently invests its excess cash primarily in money market funds and high quality marketable debt securities of corporations. The Company has adopted an investment policy that includes guidelines relative to credit quality, diversification and maturities to preserve principal and liquidity. Stock-Based Compensation The Company measures all stock options and other stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense of those awards over the requisite service period, which is generally the vesting period of the respective award. The Company recognizes forfeitures at the time forfeitures occur. The Company classifies stock-based compensation expense in its statement of operations and comprehensive loss in the same way the payroll costs or service payments are classified for the related stock-based award recipient. The fair value of the Company’s stock options are estimated using the Black Scholes option-pricing model. The Company lacks company specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly-traded set of peer companies and expects to continue to do so until it has adequate historical data regarding the volatility of its own traded stock price. Research and Development Costs Research and development costs are expensed as incurred. These expenses include the costs of the Company’s proprietary research and development efforts, as well as costs incurred in connection with certain licensing arrangements. Before a compound receives regulatory approval, the Company records upfront and milestone payments made to third parties under licensing arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone or progress has been achieved. Once a compound receives regulatory approval, the Company records any milestone payments in identifiable intangible assets, less accumulated amortization and, unless the asset is determined to have an indefinite life, the Company amortizes the payments on a straight-line basis over the remaining agreement term or the expected product life cycle, whichever is shorter. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 - Income Taxes - (Topic 740): Simplifying the Accounting for Income Taxes Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 - Measurement of Credit Losses on Financial Statements Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates The Company has evaluated other recently issued accounting pronouncements and has concluded that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were available to be issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3 – FAIR VALUE MEASUREMENTS Marketable debt securities, all of which were classified as available-for-sale, consist of the following: June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Corporate Bonds - presented in marketable debt securities, current $ 37,852 $ - $ (22 ) $ 37,830 Corporate Bonds - presented in marketable debt securities, non-current 60,457 - (79 ) 60,378 Total $ 98,309 $ - $ (101 ) $ 98,208 As of December 31, 2020, the Company did not have any marketable debt securities. The Company has recorded the securities at fair value in its condensed consolidated balance sheet and unrealized gains and losses are reported as a component of accumulated other comprehensive income (loss). The amount of realized gains and losses reclassified into earnings are based on the specific identification of the securities sold or securities that reached maturity date. There were no sales or maturities of securities in the periods presented. The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: ● Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. ● Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ● Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The following table presents the Company’s financial assets measured and recorded at fair value on a recurring basis using the above input categories as of June 30, 2021: June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds - presented in cash and cash equivalents $ 35,085 $ - $ - $ 35,085 Corporate bonds - presented in marketable debt securities, current - 37,830 - 37,830 Corporate bonds - presented in marketable debt securities, non-current - 60,378 - 60,378 Total assets $ 35,085 $ 98,208 $ - $ 133,293 As of December 31, 2020, the Company did not have any marketable debt securities or money market funds. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 4 – ACCRUED EXPENSES Included in the Company’s accrued expenses within the condensed consolidated financial statements are: As of, June 30, 2021 December 31, 2020 Employee bonuses $ 1,001 $ 1,530 Taxes 20 159 Legal fees 43 156 Research and development costs 197 37 Other expenses 178 31 Total $ 1,439 $ 1,913 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leasesof Lessor Disclosure [Abstract] | |
LEASES | NOTE 5 – LEASES Operating leases In December 2020, the Company entered in an agreement to lease approximately 10,252 square feet of office space in New York, New York (“Office Lease”), which commenced in April 2021. The office space is owned by an affiliate of Deerfield Management Company, L.P., which together with its affiliates beneficially owned more than 5% of the Company’s voting securities at the time the lease was executed. Management determined that the lease terms were on an arms-length basis. Annual rent is approximately $1,117. The Office Lease has a term of approximately seven years, commenced on April 2, 2021, and contains provisions for a free-rent period, annual rent increases, and an allowance for tenant improvements. The Company is responsible for real estate taxes, maintenance, and other operating expenses applicable to the leased premises. The landlord was deemed to be the accounting owner of the tenant improvements, which were not material for the Office Lease. In conjunction with the Office Lease, the Company established a letter of credit of approximately $745 secured by cash balances included in restricted cash. Variable lease expenses based on our portion of the operating expenses, including real estate taxes and insurance, are recorded as a period expense when incurred. The Company has an option to extend the term by five years, however, the Company determined at the lease commencement date that it was not reasonably certain to exercise the renewal option and such renewal was excluded from the operating lease right-of-use (“ROU”) asset and operating lease liability recorded for this lease. In June 2021, the Company amended the existing agreement with its Contract Development and Manufacturing Organization (“CDMO”), establishing a term of eight-years from the amendment date. These lease terms apply to the leased spaces which prior to the amendment, were leased under a quarter-to-quarter arrangement. Leases classified as operating leases are included in operating lease ROU assets, current operating lease liabilities and non-current operating lease liabilities in the Company’s condensed consolidated balance sheets. The operating lease ROU assets and operating lease liabilities represents the Office Lease and the CDMO leased spaces. Cash paid for operating lease liabilities was $401 and $39 during the six months ended June 30, 2021 and 2020, respectively, which is included in operating cash flows. The ROU asset obtained in exchange for operating lease liabilities related to the Office Lease was $6,549. Supplemental balance sheet information related to the Company’s leases was as followed: As of Operating leases: June 30, 2021 December 31, 2020 Operating ROU assets $ 7,648 $ 1,060 Operating lease liability, current $ 826 $ 88 Operating lease liability, non-current $ 6,819 $ 999 The components of lease expense for the three and six months ended June 30, 2021 and 2020 were as follows: For the three months ended June 30, For the six months ended June 30, Lease cost 2021 2020 2021 2020 Operating lease cost $ 290 $ 20 $ 345 $ 39 Short-term lease cost 26 89 87 149 Total $ 316 $ 109 $ 432 $ 188 Variable lease expense for the three and six months ended June 30, 2021 were not material. The Company did not incur variable lease expense for the three and six months ended June 30, 2020. The weighted average remaining lease term and the weighted average discount rate for operating leases were: As of 2021 As of 2020 Weighted-average discount rate 7.0 % 12.0 % Weighted-average remaining lease term – operating lease (in months) 85 87 As of June 30, 2021, the expected annual minimum lease payments of the Company’s operating lease liabilities were as follows: For Years Ending December 31, Operating lease 2021 (excluding the six months ended June 30, 2021) $ 663 2022 1,327 2023 1,327 2024 1,327 2025 1,395 Thereafter 3,664 Total operating lease payments 9,703 Less: imputed interest 2,058 Present value of future minimum lease payments $ 7,645 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 – COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments under certain license and collaboration agreements, lease agreements, and employment agreements. Commitments under certain license agreements primarily include annual payments, payments upon the achievement of certain milestones, and royalty payments based on net sales of licensed products. Commitments under lease agreements consist of future minimum lease payments for operating leases which are further described in Note 5 of this Quarterly Report on Form 10-Q. Contingencies From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Management is of the opinion that the ultimate outcome of these matters would not have a material adverse impact on the financial position of the Company or the results of its operations. In the normal course of business, the Company enters into contracts in which it makes representations and warranties regarding the performance of its services and that its services will not infringe on third party intellectual rights. There have been no significant events related to such representations and warranties in which the Company believes the outcome could result in losses or penalties in the future. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 7 – STOCKHOLDERS’ EQUITY Authorized Common Stock As of June 30, 2021 and December 31, 2020, the Company has 100,000,000 shares of Common Stock authorized for issuance, $0.001 par value per share, of which 11,233,856 and 11,211,840 shares were issued and outstanding as of June 30, 2021 and December 31, 2020, respectively. The holders of Common Stock are entitled to one vote per share. Authorized Series 1 Convertible Preferred Stock As of June 30, 2021 and December 31, 2020, the Company has 10,000,000 shares of preferred stock authorized for issuance, $0.001 par value per share, of which 8,028 shares of Series 1 Convertible Preferred Stock are authorized for issuance and 8,027 shares were issued and outstanding. Each share of Series 1 Convertible Preferred Stock is convertible into approximately 1,000 shares of Common Stock, at a conversion price initially equal to approximately $7.01 per common share, subject to certain adjustments as described in the certificate of designation of preferences, rights and limitations of Series 1 Convertible Preferred Stock. The holders of Series 1 Convertible Preferred Stock are not entitled to vote. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 8 – STOCK-BASED COMPENSATION 2020 Inducement Plan On March 26, 2020, the Compensation Committee of the Board of Directors (the “Compensation Committee”) approved the ArTara Therapeutics, Inc. Inducement Plan (the “2020 Inducement Plan”) in order to award nonstatutory stock options, restricted stock awards, restricted stock unit awards and other stock-based awards to persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such persons entering into employment with the Company. The 2020 Inducement Plan provides for a total of 600,000 shares for the issuance of the Company’s Common Stock. The Compensation Committee also adopted a form of stock option grant notice and stock option agreement and forms of restricted stock unit grant notice and restricted stock unit agreement for use with the Inducement Plan. As of June 30, 2021, 324,300 shares remain available to be issued under the 2020 Inducement Plan. 2014 Equity Incentive Plan On October 3, 2014, the stockholders approved the 2014 Plan. On June 20, 2017, the Company’s Board of Directors amended the 2014 Plan (the “Amended 2014 Plan”). On July 31, 2017, the stockholders approved this amendment. The Amended 2014 Plan provides for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock and stock unit awards, performance units, stock grants and qualified performance-based awards. The 2014 Plan provides that the number of shares reserved and available for issuance under the 2014 Plan will automatically increase each January 1, beginning January 1, 2015 by four percent of the outstanding shares of Common Stock on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s Board of Directors prior to each such January 1st. The Amended 2014 Plan clarifies that the number of shares for purposes of calculating the evergreen feature includes the number of shares of Common Stock issuable upon conversion of any security that the Company may issue that is convertible into or exchangeable for Common Stock, including, but not limited to, preferred stock or warrants. On January 1, 2021, pursuant to the Amended 2014 Plan’s annual evergreen feature, the number of shares authorized under the Amended 2014 Plan was increased by 812,889 shares to 1,861,189 shares. As of June 30, 2021, 435,654 shares remain available to be issued under the Amended 2014 Plan. Terms of the stock awards, including vesting requirements, are determined by the Board of Directors, subject to the provisions of the plans. Certain awards provide for accelerated vesting if there is a change in control as defined in the plans. 2014 Employee Stock Purchase Plan On October 3, 2014, the stockholders approved the 2014 Employee Stock Purchase Plan (the “2014 ESPP”). The 2014 ESPP initially authorized the issuance of up to 3,513 shares of Common Stock. The number of shares increases each January 1, commencing on January 1, 2015 and ending on (and including) January 1, 2024, by an amount equal to the lesser of one percent of the outstanding shares as of the end of the immediately preceding fiscal year, 7,025 shares or any lower amount determined by the Company’s Board of Directors prior to each such January 1st. As of June 30, 2021, the authorized number of shares under the 2014 ESPP is 25,037 and the number of shares available for issuance is 20,365. On January 1, 2021, pursuant to the increase per the 2014 ESPP, the number of shares authorized under the 2014 ESPP was increased by 7,025 shares to 25,037 shares. During the six months ended June 30, 2021 and 2020, no shares were issued under the 2014 ESPP. Restricted Stock Units The following table summarizes restricted stock unit (“RSU”) activities for the six months ended June 30, 2021: Restricted Stock Units Weighted Date Fair Value Non-vested 1/1/2021 274,616 $ 29.95 Granted 10,500 - Forfeited - - Vested (133,624 ) 29.26 Non-vested 6/30/2021 151,492 $ 29.26 The fair value of restricted stock units is amortized on a straight-line basis over the requisite service periods of the respective awards. As of June 30, 2021, the unamortized value of RSUs was $3,692. As of June 30, 2021, the weighted average remaining amortization period was 2.0 years. As of June 30, 2021 and December 31, 2020, 233,502 and 132,709 RSUs, respectively, have vested that have not yet been settled into shares of Common Stock. During the six months ended June 30, 2021, the Company issued 22,016 shares of Common Stock from the net settlement of 32,831 RSUs. The Company paid $228 in connection with the net share settlement of these RSUs. Stock Option Grants Options to Directors During the six months ended June 30, 2021, the Board of Directors granted options for the purchase of 121,750 shares of Common Stock to members of the board of directors. These options were granted under the Company’s 2014 Equity Incentive Plan, had exercise prices ranging from $10.51 to $17.98 per share and a term of 10 years. These options vest ratably over one to three years. The options had a grant date fair value of $1,059. Options to Employees During the six months ended June 30, 2021, the Board of Directors granted options for the purchase of 654,550 shares of Common Stock to employees of the Company. These options were granted under the Company’s 2014 Equity Incentive Plan and the 2020 Inducement Plan, had exercise prices ranging from $11.16 to $19.82 per share and a term of 10 years. These options vest ratably over approximately four years. The options had a grant date fair value of $9,353. Stock Options The Company determined the fair value of stock options granted based upon the assumptions as provided below. For the six months ended 2021 2020 Exercise price $ 10.51 - $ 19.82 $ 24.02 - $ 51.12 Dividend yield 0.00 % 0.00 % Expected volatility 92.00% - 98.00% 95.00% - 101.00% Risk-free interest rate 0.45% - 1.14% 0.40% - 1.69% Expected life (in years) 5.27 - 6.08 5.27 - 6.08 Expected Term Risk-Free Interest Rate Expected Volatility Dividend Rate Fair Value of Common Stock The following table summarizes stock option activities for the six months ended June 30, 2021: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding 1/1/2021 674,039 $ 25.23 9.06 $ 2,311 Granted 776,300 17.35 - - Exercised - - - - Forfeited (27,512 ) 23.22 - - Expired (7,038 ) 24.25 - - Outstanding 6/30/2021 1,415,789 $ 20.95 9.16 $ 77 Exercisable as of 6/30/2021 241,568 $ 23.16 8.22 $ 53 The weighted average grant date fair value of the options granted during the six months ended June 30, 2021 and 2020 was $13.41 per share and $25.11 per share, respectively. The fair value of stock options is amortized on a straight-line basis over the requisite service periods of the respective awards. As of June 30, 2021, the unamortized value of stock options was $16,799. As of June 30, 2021, the weighted average remaining amortization period was 3.08 years. Summary of Stock-Based Compensation Expense The following tables summarize total stock-based compensation costs recognized: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Restricted Stock Units $ 1,360 $ 1,315 $ 2,663 $ 3,745 Stock options 1,638 514 3,075 882 Total $ 2,998 $ 1,829 $ 5,738 $ 4,627 Stock-based compensation expense was reflected within the condensed consolidated statements of operations and comprehensive loss as: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Research and development $ 453 $ 202 $ 724 $ 411 General and administrative 2,545 1,627 5,014 4,216 Total $ 2,998 $ 1,829 $ 5,738 $ 4,627 |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 9 – EMPLOYEE BENEFIT PLAN The Company maintains a defined contribution benefit plan under section 401(k) of the Internal Revenue Code covering substantially all qualified employees of the Company (the “401(k) Plan”). Under the 401(k) Plan, the Company matches 100% up to a 4% contribution. The 401(k) Plan was implemented in June of 2020. For the three months ended June 30, 2021 and 2020, the Company recorded expense of $58 and $8, respectively, and for the six months ended June 30, 2021 and 2020, the Company recorded expense of $135 and $8, respectively, representing employer contributions under the 401(k) Plan. |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER COMMON SHARE | NOTE 10 – NET LOSS PER COMMON SHARE Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding, plus the impact of common shares, if dilutive, resulting from the exercise of outstanding stock options. The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: June 30, 2021 2020 Stock options issued and outstanding 1,415,789 518,292 Restricted stock units issued and outstanding 384,994 477,070 Conversion of Series 1 Convertible Preferred Stock 8,029,039 3,880,169 Total potentially dilutive shares 9,829,822 4,875,531 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements and the related disclosures as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules and regulations of the SEC for interim financial statements. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the 2020 and 2019 audited consolidated financial statements and notes included in the 2020 Annual Report. The December 31, 2020 consolidated balance sheet included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of the Company’s financial position and results of operations for the three and six months ended June 30, 2021 and 2020. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or any other interim period or future year or period. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those which result from using such estimates. Management also utilizes various other estimates, including but not limited to the recoverability of the Company’s net deferred tax assets and related valuation allowance, operating lease right-of-use assets and liabilities, determining the fair value and evaluation for impairment of goodwill and stock-based compensation. The results of any changes in accounting estimates are reflected in the financial statements of the period in which the change becomes evident. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. Actual results may differ materially from those estimates or assumptions. |
Reclassification | Reclassification Certain amounts in prior periods related to the classification of operating right-of-use assets have been reclassified to conform to current period presentation. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid instruments with an original maturity of three months or less when acquired to be cash equivalents. Cash and cash equivalents are held in depository and money market accounts and are reported at fair value. The Company’s restricted cash balances consist of cash deposits to collateralize letter of credit obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash in the condensed consolidated balance sheets to the total amount shown in the condensed consolidated statements of cash flows: As of June 30, 2021 2020 Cash and cash equivalents $ 46,836 $ 29,971 Restricted cash, current - 50 Restricted cash, non-current 745 - Total cash, cash equivalents, and restricted cash $ 47,581 $ 30,021 |
Investments in marketable debt securities | Investments in marketable debt securities At the time of purchase, the Company determines the appropriate classification of investments based upon its intent with regard to such investments. The Company classifies investments in marketable debt securities with remaining maturities when purchased of greater than three months as available-for-sale. Investments with a remaining maturity date greater than one year are classified as non-current. All of the Company’s non-current investments have a maturity date that is within two years of the balance sheet date. |
Leases | Leases Under ASC 842, lease expense is recognized as a single lease cost on a straight-line basis over the lease term. The lease term consists of non-cancelable periods and may include options to extend or terminate the lease term, when it is reasonably certain such options will be exercised. The Company enters into contracts in the normal course of business and assesses whether any such contracts contain a lease. The Company determines if an arrangement is a lease at inception if it conveys the right to control the identified asset for a period of time in exchange for consideration. The Company classifies leases as operating or financing in nature and records the associated lease liability and right-of-use asset on its balance sheet. The lease liability represents the present value of future lease payments, net of lease incentives, discounted using an incremental borrowing rate, which is a management estimate based on the information available at the commencement date of a lease arrangement. With respect to operating lease arrangements, the Company accounts for lease components, and non-lease components that are fixed, as a single lease component. Non-lease components that are variable are expensed as incurred as in the statement of operations and comprehensive loss. The Company recognizes costs associated with lease arrangements having an initial term of 12 months or less (“short-term leases”) on a straight-line basis over the lease term; such short-term leases are not recorded on the balance sheet. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consists principally of cash, cash equivalents and investments in marketable debt securities. The Company currently invests its excess cash primarily in money market funds and high quality marketable debt securities of corporations. The Company has adopted an investment policy that includes guidelines relative to credit quality, diversification and maturities to preserve principal and liquidity. |
Stock-Based Compensation | Stock-Based Compensation The Company measures all stock options and other stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense of those awards over the requisite service period, which is generally the vesting period of the respective award. The Company recognizes forfeitures at the time forfeitures occur. The Company classifies stock-based compensation expense in its statement of operations and comprehensive loss in the same way the payroll costs or service payments are classified for the related stock-based award recipient. The fair value of the Company’s stock options are estimated using the Black Scholes option-pricing model. The Company lacks company specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly-traded set of peer companies and expects to continue to do so until it has adequate historical data regarding the volatility of its own traded stock price. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. These expenses include the costs of the Company’s proprietary research and development efforts, as well as costs incurred in connection with certain licensing arrangements. Before a compound receives regulatory approval, the Company records upfront and milestone payments made to third parties under licensing arrangements as expense. Upfront payments are recorded when incurred, and milestone payments are recorded when the specific milestone or progress has been achieved. Once a compound receives regulatory approval, the Company records any milestone payments in identifiable intangible assets, less accumulated amortization and, unless the asset is determined to have an indefinite life, the Company amortizes the payments on a straight-line basis over the remaining agreement term or the expected product life cycle, whichever is shorter. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 - Income Taxes - (Topic 740): Simplifying the Accounting for Income Taxes |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13 - Measurement of Credit Losses on Financial Statements Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates The Company has evaluated other recently issued accounting pronouncements and has concluded that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. |
Subsequent Events | Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were available to be issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash | As of June 30, 2021 2020 Cash and cash equivalents $ 46,836 $ 29,971 Restricted cash, current - 50 Restricted cash, non-current 745 - Total cash, cash equivalents, and restricted cash $ 47,581 $ 30,021 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of marketable debt securities | June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Corporate Bonds - presented in marketable debt securities, current $ 37,852 $ - $ (22 ) $ 37,830 Corporate Bonds - presented in marketable debt securities, non-current 60,457 - (79 ) 60,378 Total $ 98,309 $ - $ (101 ) $ 98,208 |
Schedule of financial assets measured and recorded at fair value on a recurring basis | June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds - presented in cash and cash equivalents $ 35,085 $ - $ - $ 35,085 Corporate bonds - presented in marketable debt securities, current - 37,830 - 37,830 Corporate bonds - presented in marketable debt securities, non-current - 60,378 - 60,378 Total assets $ 35,085 $ 98,208 $ - $ 133,293 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | As of, June 30, 2021 December 31, 2020 Employee bonuses $ 1,001 $ 1,530 Taxes 20 159 Legal fees 43 156 Research and development costs 197 37 Other expenses 178 31 Total $ 1,439 $ 1,913 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leasesof Lessor Disclosure [Abstract] | |
Schedule of operating leases | As of Operating leases: June 30, 2021 December 31, 2020 Operating ROU assets $ 7,648 $ 1,060 Operating lease liability, current $ 826 $ 88 Operating lease liability, non-current $ 6,819 $ 999 |
Schedule of lease cost | For the three months ended June 30, For the six months ended June 30, Lease cost 2021 2020 2021 2020 Operating lease cost $ 290 $ 20 $ 345 $ 39 Short-term lease cost 26 89 87 149 Total $ 316 $ 109 $ 432 $ 188 |
Schedule of other information related to leases | As of 2021 As of 2020 Weighted-average discount rate 7.0 % 12.0 % Weighted-average remaining lease term – operating lease (in months) 85 87 |
Schedule of annual minimum lease payments of operating lease liabilities | For Years Ending December 31, Operating lease 2021 (excluding the six months ended June 30, 2021) $ 663 2022 1,327 2023 1,327 2024 1,327 2025 1,395 Thereafter 3,664 Total operating lease payments 9,703 Less: imputed interest 2,058 Present value of future minimum lease payments $ 7,645 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock unit activities | Restricted Stock Units Weighted Date Fair Value Non-vested 1/1/2021 274,616 $ 29.95 Granted 10,500 - Forfeited - - Vested (133,624 ) 29.26 Non-vested 6/30/2021 151,492 $ 29.26 |
Schedule of the fair value of stock options granted | For the six months ended 2021 2020 Exercise price $ 10.51 - $ 19.82 $ 24.02 - $ 51.12 Dividend yield 0.00 % 0.00 % Expected volatility 92.00% - 98.00% 95.00% - 101.00% Risk-free interest rate 0.45% - 1.14% 0.40% - 1.69% Expected life (in years) 5.27 - 6.08 5.27 - 6.08 |
Schedule of stock option activities | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding 1/1/2021 674,039 $ 25.23 9.06 $ 2,311 Granted 776,300 17.35 - - Exercised - - - - Forfeited (27,512 ) 23.22 - - Expired (7,038 ) 24.25 - - Outstanding 6/30/2021 1,415,789 $ 20.95 9.16 $ 77 Exercisable as of 6/30/2021 241,568 $ 23.16 8.22 $ 53 |
Schedule of total stock-based compensation costs | For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Restricted Stock Units $ 1,360 $ 1,315 $ 2,663 $ 3,745 Stock options 1,638 514 3,075 882 Total $ 2,998 $ 1,829 $ 5,738 $ 4,627 |
Schedule of stock-based compensation expense | For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Research and development $ 453 $ 202 $ 724 $ 411 General and administrative 2,545 1,627 5,014 4,216 Total $ 2,998 $ 1,829 $ 5,738 $ 4,627 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average dilutive common shares | June 30, 2021 2020 Stock options issued and outstanding 1,415,789 518,292 Restricted stock units issued and outstanding 384,994 477,070 Conversion of Series 1 Convertible Preferred Stock 8,029,039 3,880,169 Total potentially dilutive shares 9,829,822 4,875,531 |
Business, Liquidity and Capit_2
Business, Liquidity and Capital Resources (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Business, Liquidity and Capital Resources (Details) [Line Items] | |||||
Cash and cash equivalents | $ 46,836 | $ 29,971 | $ 46,836 | $ 29,971 | $ 168,598 |
Net losses | (12,782) | (7,140) | (26,247) | (17,200) | |
Non-cash stock-based compensation charges | 2,998 | 1,829 | 5,738 | $ 4,627 | |
Liquidity, Capital Resources and Management Plans [Member] | |||||
Business, Liquidity and Capital Resources (Details) [Line Items] | |||||
Cash and cash equivalents | 145,044 | 145,044 | $ 168,598 | ||
Net losses | $ 12,782 | $ (7,140) | |||
Net cash used in operating activities | 21,394 | ||||
Non-cash stock-based compensation charges | $ 5,738 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Schedule of cash, cash equivalents, and restricted cash - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of cash, cash equivalents, and restricted cash [Abstract] | ||||
Cash and cash equivalents | $ 46,836 | $ 168,598 | $ 29,971 | |
Restricted cash, current | 50 | 50 | ||
Restricted cash, non-current | 745 | |||
Total cash, cash equivalents, and restricted cash | $ 47,581 | $ 169,393 | $ 30,021 | $ 564 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of marketable debt securities $ in Thousands | Jun. 30, 2021USD ($) |
Marketable Securities [Line Items] | |
Amortized Cost | $ 98,309 |
Unrealized Gains | |
Unrealized Losses | (101) |
Estimated Fair Value | 98,208 |
Corporate Bonds - presented in marketable debt securities, current [Member] | |
Marketable Securities [Line Items] | |
Amortized Cost | 37,852 |
Unrealized Gains | |
Unrealized Losses | (22) |
Estimated Fair Value | 37,830 |
Corporate Bonds - presented in marketable debt securities, non-current [Member] | |
Marketable Securities [Line Items] | |
Amortized Cost | 60,457 |
Unrealized Gains | |
Unrealized Losses | (79) |
Estimated Fair Value | $ 60,378 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of financial assets measured and recorded at fair value on a recurring basis $ in Thousands | Jun. 30, 2021USD ($) |
Assets: | |
Money market funds - presented in cash and cash equivalents | $ 35,085 |
Total assets | 133,293 |
Corporate bonds - presented in marketable debt securities, current [Member] | |
Assets: | |
Marketable debt securities | 37,830 |
Corporate bonds - presented in marketable debt securities, non-current [Member] | |
Assets: | |
Marketable debt securities | 60,378 |
Level 1 [Member] | |
Assets: | |
Money market funds - presented in cash and cash equivalents | 35,085 |
Total assets | 35,085 |
Level 1 [Member] | Corporate bonds - presented in marketable debt securities, current [Member] | |
Assets: | |
Marketable debt securities | |
Level 1 [Member] | Corporate bonds - presented in marketable debt securities, non-current [Member] | |
Assets: | |
Marketable debt securities | |
Level 2 [Member] | |
Assets: | |
Money market funds - presented in cash and cash equivalents | |
Total assets | 98,208 |
Level 2 [Member] | Corporate bonds - presented in marketable debt securities, current [Member] | |
Assets: | |
Marketable debt securities | 37,830 |
Level 2 [Member] | Corporate bonds - presented in marketable debt securities, non-current [Member] | |
Assets: | |
Marketable debt securities | 60,378 |
Level 3 [Member] | |
Assets: | |
Money market funds - presented in cash and cash equivalents | |
Total assets | |
Level 3 [Member] | Corporate bonds - presented in marketable debt securities, current [Member] | |
Assets: | |
Marketable debt securities | |
Level 3 [Member] | Corporate bonds - presented in marketable debt securities, non-current [Member] | |
Assets: | |
Marketable debt securities |
Accrued Expenses (Details) - Sc
Accrued Expenses (Details) - Schedule of accrued expenses - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of accrued expenses [Abstract] | ||
Employee bonuses | $ 1,001 | $ 1,530 |
Taxes | 20 | 159 |
Legal fees | 43 | 156 |
Research and development costs | 197 | 37 |
Other expenses | 178 | 31 |
Total | $ 1,439 | $ 1,913 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leasesof Lessor Disclosure [Abstract] | |||
Lease description | the Company entered in an agreement to lease approximately 10,252 square feet of office space in New York, New York (“Office Lease”), which commenced in April 2021. The office space is owned by an affiliate of Deerfield Management Company, L.P., which together with its affiliates beneficially owned more than 5% of the Company’s voting securities at the time the lease was executed. Management determined that the lease terms were on an arms-length basis. Annual rent is approximately $1,117. | ||
Operating leases | $ 401 | $ 39 | |
Right of use asset obtained in exchange for operating lease liabilities | $ 6,549 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating leases - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of operating leases [Abstract] | ||
Operating ROU assets | $ 7,648 | $ 1,060 |
Operating lease liability, current | 826 | 88 |
Operating lease liability, non-current | $ 6,819 | $ 999 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of lease cost - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of lease cost [Abstract] | ||||
Operating lease cost | $ 290 | $ 20 | $ 345 | $ 39 |
Short-term lease cost | 26 | 89 | 87 | 149 |
Total | $ 316 | $ 109 | $ 432 | $ 188 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of other information related to leases | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of other information related to leases [Abstract] | ||
Weighted-average discount rate | 7.00% | 12.00% |
Weighted-average remaining lease term – operating lease (in months) | 85 months | 87 months |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of annual minimum lease payments of operating lease liabilities $ in Thousands | Jun. 30, 2021USD ($) |
Schedule of annual minimum lease payments of operating lease liabilities [Abstract] | |
2021 (excluding the six months ended June 30, 2021) | $ 663 |
2022 | 1,327 |
2023 | 1,327 |
2024 | 1,327 |
2025 | 1,395 |
Thereafter | 3,664 |
Total operating lease payments | 9,703 |
Less: imputed interest | 2,058 |
Present value of future minimum lease payments | $ 7,645 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Stockholders' Equity (Details) [Line Items] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common shares of par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares issued | 11,233,856 | 11,211,840 |
Common stock, shares outstanding | 11,233,856 | 11,211,840 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred shares of par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Series 1 Convertible Preferred Stock [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Preferred stock, shares authorized | 8,028 | 8,028 |
Preferred stock, shares issued | 8,027 | 8,027 |
Preferred stock, shares outstanding | 8,027 | 8,027 |
Preferred stock is convertible into share of common stock | 1,000 | 1,000 |
Conversion price per common share (in Dollars per share) | $ 7.01 | $ 7.01 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | Jun. 30, 2020 | Oct. 03, 2014 | |
Stock-Based Compensation (Details) [Line Items] | |||||
Issuance of common stock | 600,000 | ||||
Shares available for issuance | 324,300 | ||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||
Common stock, shares issued | 11,233,856 | 11,211,840 | |||
Options vesting period | 4 years | ||||
Fair value of options (in Dollars) | $ 1,059 | ||||
Expected term | 10 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Common stock, shares issued | 22,016 | ||||
Unamortized value of RSUs (in Dollars) | $ 3,692 | ||||
Weighted average remaining amortization period | 2 years | ||||
Number of RSUs | 233,502 | 132,709 | |||
Net settlement (in Dollars) | $ 32,831 | ||||
Net share settlement (in Dollars) | $ 228 | ||||
Grant date fair value (in Dollars per share) | $ 29.26 | $ 29.95 | |||
Employee Stock [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Weighted average remaining amortization period | 3 years 29 days | ||||
Weighted average grant date fair value (in Dollars per share) | $ 13.41 | $ 25.11 | |||
Unamortized value of stock (in Dollars) | $ 16,799 | ||||
Board of Directors [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Issuance of common stock | 121,750 | ||||
Vest period | 10 years | ||||
Fair Value, Recurring [Member] | Board of Directors [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Grant date fair value (in Dollars per share) | $ 9,353 | ||||
Minimum [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Exercise prices range | 10.51 | ||||
Options vesting period | 1 year | ||||
Minimum [Member] | Board of Directors [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Exercise price (in Dollars per share) | $ 11.16 | ||||
Maximum [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Exercise prices range | 17.98 | ||||
Options vesting period | 3 years | ||||
Maximum [Member] | Board of Directors [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Exercise price (in Dollars per share) | $ 19.82 | ||||
Common Stock [Member] | Board of Directors [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Issuance of common stock | 654,550 | ||||
2014 Equity Incentive Plan [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Shares available for issuance | 435,654 | ||||
Common stock, shares authorized | 3,513 | ||||
Percentage of shares outstanding | 1.00% | ||||
Common stock, shares issued | 20,365 | ||||
2014 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Common stock, shares authorized | 812,889 | ||||
Number of share authorized increased | 7,025 | ||||
2014 Equity Incentive Plan [Member] | Minimum [Member] | Board of Directors [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Common stock, shares authorized | 7,025 | ||||
2014 Equity Incentive Plan [Member] | Maximum [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Common stock, shares authorized | 25,037 | 1,861,189 | |||
Number of share authorized increased | 25,037 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of restricted stock unit activities - Restricted stock unit [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Stock-Based Compensation (Details) - Schedule of restricted stock unit activities [Line Items] | |
Restricted Stock Units, Balance at beginning | shares | 274,616 |
Weighted Average Grant Date Fair Value, Balance at beginning | $ / shares | $ 29.95 |
Restricted Stock Units, Granted | shares | 10,500 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | |
Restricted Stock Units, Forfeited | shares | |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | |
Restricted Stock Units, Vested | shares | (133,624) |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 29.26 |
Restricted Stock Units, Balance at ending | shares | 151,492 |
Weighted Average Grant Date Fair Value, Balance at ending | $ / shares | $ 29.26 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of the fair value of stock options granted - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-Based Compensation (Details) - Schedule of the fair value of stock options granted [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Stock-Based Compensation (Details) - Schedule of the fair value of stock options granted [Line Items] | ||
Exercise price (in Dollars per share) | $ 10.51 | $ 24.02 |
Expected volatility | 92.00% | 95.00% |
Risk-free interest rate | 0.45% | 0.40% |
Expected life (in years) | 5 years 3 months 7 days | 5 years 3 months 7 days |
Maximum [Member] | ||
Stock-Based Compensation (Details) - Schedule of the fair value of stock options granted [Line Items] | ||
Exercise price (in Dollars per share) | $ 19.82 | $ 51.12 |
Expected volatility | 98.00% | 101.00% |
Risk-free interest rate | 1.14% | 1.69% |
Expected life (in years) | 6 years 29 days | 6 years 29 days |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details) - Schedule of stock option activities - Equity Option [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Dec. 30, 2021USD ($)$ / sharesshares | |
Stock-Based Compensation (Details) - Schedule of stock option activities [Line Items] | |
Options, Balance at beginning (in Shares) | shares | 674,039 |
Weighted Average Exercise Price, Balance at beginning | $ 25.23 |
Weighted Average Remaining Contractual Term (years), Balance at beginning | 9 years 21 days |
Options, Aggregate Intrinsic Value, Balance at beginning (in Dollars) | $ | $ 2,311 |
Options, Balance at ending (in Shares) | shares | 1,415,789 |
Weighted Average Exercise Price, Balance at ending | $ 20.95 |
Weighted Average Remaining Contractual Term (years), Balance at ending | 9 years 1 month 28 days |
Aggregate Intrinsic Value, Balance at ending (in Dollars) | $ | $ 77 |
Options, Exercisable (in Shares) | shares | 241,568 |
Weighted Average Exercise Price, Exercisable | $ 23.16 |
Weighted Average Remaining Contractual Term (years), Exercisable | 8 years 2 months 19 days |
Aggregate Intrinsic Value, Exercisable (in Dollars) | $ | $ 53 |
Options, Granted (in Shares) | shares | 776,300 |
Weighted Average Exercise Price, Granted | $ 17.35 |
Weighted Average Remaining Contractual Term (years), Granted | |
Aggregate Intrinsic Value, Granted | |
Options, Exercised | |
Weighted Average Exercise Price, Exercised | |
Weighted Average Remaining Contractual Term (years), Exercised | |
Aggregate Intrinsic Value, Exercised (in Dollars) | $ | |
Options, Forfeited (in Shares) | shares | (27,512) |
Weighted Average Exercise Price, Forfeited | $ 23.22 |
Weighted Average Remaining Contractual Term (years), Forfeited | |
Aggregate Intrinsic Value, Forfeited | |
Options, Expired (in Shares) | shares | (7,038) |
Weighted Average Exercise Price, Expired | $ 24.25 |
Weighted Average Remaining Contractual Term (years),Expired | |
Aggregate Intrinsic Value, Expired |
Stock-Based Compensation (Det_5
Stock-Based Compensation (Details) - Schedule of total stock-based compensation costs - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-Based Compensation (Details) - Schedule of total stock-based compensation costs [Line Items] | ||||
Total stock-based compensation | $ 2,998 | $ 1,829 | $ 5,738 | $ 4,627 |
Restricted Stock Units [Member] | ||||
Stock-Based Compensation (Details) - Schedule of total stock-based compensation costs [Line Items] | ||||
Total stock-based compensation | 1,360 | 1,315 | 2,663 | 3,745 |
Stock options [Member] | ||||
Stock-Based Compensation (Details) - Schedule of total stock-based compensation costs [Line Items] | ||||
Total stock-based compensation | $ 1,638 | $ 514 | $ 3,075 | $ 882 |
Stock-Based Compensation (Det_6
Stock-Based Compensation (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 2,998 | $ 1,829 | $ 5,738 | $ 4,627 |
Research and development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 453 | 202 | 724 | 411 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 2,545 | $ 1,627 | $ 5,014 | $ 4,216 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Defined contribution benefit plant, description | The Company maintains a defined contribution benefit plan under section 401(k) of the Internal Revenue Code covering substantially all qualified employees of the Company (the “401(k) Plan”). Under the 401(k) Plan, the Company matches 100% up to a 4% contribution. The 401(k) Plan was implemented in June of 2020. For the three months ended June 30, 2021 and 2020, the Company recorded expense of $58 and $8, respectively, and for the six months ended June 30, 2021 and 2020, the Company recorded expense of $135 and $8, respectively, representing employer contributions under the 401(k) Plan. | |||
Recorded expense | $ 58 | $ 8 | $ 135 | $ 8 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - Schedule of weighted average dilutive common shares - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of weighted average dilutive common shares [Abstract] | ||
Stock options issued and outstanding | 1,415,789 | 518,292 |
Restricted stock units issued and outstanding | 384,994 | 477,070 |
Conversion of Series 1 Convertible Preferred Stock | 8,029,039 | 3,880,169 |
Total potentially dilutive shares | 9,829,822 | 4,875,531 |