Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 23, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ELDN | ||
Entity Registrant Name | ELEDON PHARMACEUTICALS, INC. | ||
Entity Central Index Key | 0001404281 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-36620 | ||
Entity Tax Identification Number | 20-1000967 | ||
Entity Address, Address Line One | 19900 MacArthur Boulevard | ||
Entity Address, Address Line Two | Suite 550 | ||
Entity Address, City or Town | Irvine | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92612 | ||
City Area Code | (949) | ||
Local Phone Number | 238-8090 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | false | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 14,306,614 | ||
Entity Public Float | $ 7,293,179 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2021 Annual Meeting of Stockholders, which the registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year end December 31, 2020, are incorporated by reference into Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 114,195 | $ 8,791 |
Prepaid expenses and other current assets | 1,435 | 1,180 |
Total current assets | 115,630 | 9,971 |
Property and equipment, net | 5 | |
Operating lease asset, net | 138 | 316 |
Goodwill | 48,648 | |
In-process research and development | 32,386 | |
Other assets | 383 | 639 |
Total assets | 197,185 | 10,931 |
Current liabilities: | ||
Accounts payable | 1,366 | 329 |
Current operating lease liability | 144 | 180 |
Accrued severance | 12 | |
Accrued expenses and other liabilities | 961 | 813 |
Total current liabilities | 2,483 | 1,322 |
Deferred tax liability | 4,106 | |
Non-current operating lease liability | 144 | |
Total liabilities | 6,589 | 1,466 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 200,000,000 shares authorized at December 31, 2020 and 2019; 15,160,397 and 720,408 shares issued and outstanding at December 31, 2020 and 2019, respectively | 15 | 1 |
Additional paid-in capital | 270,974 | 67,046 |
Accumulated deficit | (80,393) | (57,582) |
Total stockholders’ equity | 190,596 | 9,465 |
Total liabilities and stockholders’ equity | 197,185 | 10,931 |
Series X1 Non-voting Convertible Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Series X1 non-voting convertible preferred stock, $0.001 par value, 515,000 shares authorized; 108,070 and no shares issued and outstanding at December 31, 2020 and 2019, respectively | ||
Series X Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Series X1 non-voting convertible preferred stock, $0.001 par value, 515,000 shares authorized; 108,070 and no shares issued and outstanding at December 31, 2020 and 2019, respectively |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 15,160,397 | 720,408 |
Common stock, shares outstanding | 15,160,397 | 720,408 |
Series X1 Non-voting Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 515,000 | 515,000 |
Preferred stock, shares issued | 108,070 | 0 |
Preferred stock, shares outstanding | 108,070 | 0 |
Series X Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses | ||
Research and development | $ 6,131,000 | $ 8,128,000 |
General and administrative | 10,052,000 | 6,056,000 |
Restructuring expense | 2,282,000 | |
Goodwill impairment | 0 | 1,867,000 |
Total operating expenses | 18,465,000 | 16,051,000 |
Loss from operations | (18,465,000) | (16,051,000) |
Other income, net | 79,000 | 40,000 |
Warrant inducement expense | (4,829,000) | |
Loss before income tax benefit | (23,215,000) | (16,011,000) |
Income tax benefit | 404,000 | |
Net loss and other comprehensive loss | $ (22,811,000) | $ (16,011,000) |
Net loss per share, basic and diluted | $ (15.72) | $ (24.42) |
Weighted-average common shares outstanding, basic and diluted | 1,451,432 | 655,526 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Series X1 Non-Voting Convertible Preferred Stock [Member] | Series X1 Non-Voting Convertible Preferred Stock [Member]Common Stock [Member] |
Beginning Balance at Dec. 31, 2018 | $ 14,492 | $ 1 | $ 56,062 | $ (41,571) | ||
Beginning Balance, Shares at Dec. 31, 2018 | 523,452 | |||||
Issuance of common stock in connection with vesting of restricted stock units | 4,359 | |||||
Issuance of common stock at-the-market, net of issuance costs | 107 | 107 | ||||
Issuance of common stock at-the-market, net of issuance costs, Shares | 1,401 | |||||
Issuance of common stock and warrants in registered direct offering, net of issuance costs | 9,569 | 9,569 | ||||
Issuance of common stock and warrants in registered direct offering, net of issuance costs, shares | 191,617 | |||||
Cancellation of common stock, Shares | (421) | |||||
Stock-based compensation | 1,308 | 1,308 | ||||
Net loss and other comprehensive loss | (16,011) | (16,011) | ||||
Ending Balance at Dec. 31, 2019 | 9,465 | $ 1 | 67,046 | (57,582) | ||
Ending Balance, Shares at Dec. 31, 2019 | 720,408 | |||||
Issuance of common stock in connection with PIPE transaction, net of issuance costs | 8,550 | $ 1 | 8,549 | |||
Issuance of preferred stock in connection with PIPE transaction, net of issuance costs, Shares | 1,004,111 | |||||
Issuance of common stock in connection with exercise of warrants, net of issuance costs | $ 5,380 | 5,380 | ||||
Issuance of common stock in connection with exercise of warrants, net of issuance costs, Shares | 421,772 | |||||
Issuance of common stock in connection with conversion of Series X preferred stock | (13) | $ 13 | ||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | (3,796) | 210,888 | (231,068) | 12,837,056 | ||
Issuance of common stock in connection with vesting of restricted stock units | 3,056 | |||||
Issuance of common stock in connection with acquisition | $ 1,194 | 1,194 | ||||
Issuance of common stock in connection with acquisition, shares | 175,488 | |||||
Cancellation of common stock in connection with exchange for preferred stock, Shares | 3,796 | (210,889) | ||||
Cancellation of common stock in connection with reverse split | $ (25) | (25) | ||||
Cancellation of common stock in connection with reverse split, Shares | (1,493) | |||||
Issuance of preferred stock in connection with acquisition | 69,723 | 69,723 | ||||
Issuance of preferred stock in connection with acquisition,shares | 140,026 | |||||
Issuance of preferred stock in connection with PIPE transaction, net of issuance costs | 95,226 | 95,226 | ||||
Issuance of preferred stock in connection with PIPE transaction, net of issuance costs, shares | 199,112 | |||||
Fair value of options assumed in acquisition | 2,950 | 2,950 | ||||
Fair value of warrants assumed in acquisition | 12,944 | 12,944 | ||||
Warrant inducement expense | 4,829 | 4,829 | ||||
Stock-based compensation | 3,171 | 3,171 | ||||
Net loss and other comprehensive loss | (22,811) | (22,811) | ||||
Ending Balance at Dec. 31, 2020 | $ 190,596 | $ 15 | $ 270,974 | $ (80,393) | ||
Temporary Equity, Ending Balance, Shares at Dec. 31, 2020 | 108,070 | |||||
Ending Balance, Shares at Dec. 31, 2020 | 15,160,397 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net loss | $ (22,811,000) | $ (16,011,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,000 | 9,000 |
Amortization of operating lease asset | 178,000 | 173,000 |
Goodwill impairment | 0 | 1,867,000 |
Warrant inducement expense | 4,829,000 | |
Stock-based compensation | 3,171,000 | 1,308,000 |
Deferred income taxes | (404,000) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 39,000 | 354,000 |
Accounts payable and accrued expenses | (39,000) | (1,392,000) |
Operating lease liability | (180,000) | (165,000) |
Net cash used in operating activities | (15,212,000) | (13,857,000) |
Investing activities | ||
Cash and cash equivalents received from acquisition | 11,035,000 | |
Net cash provided by investing activities | 11,035,000 | |
Financing activities | ||
Proceeds from issuance of common stock, net | 9,000,000 | 9,676,000 |
Proceeds from issuance of non-voting preferred stock in connection with PIPE transaction, net | 95,226,000 | |
Proceeds from exercise of warrants, net | 5,380,000 | |
Cash paid for cancellation of common stock in connection with reverse split | (25,000) | |
Net cash provided by financing activities | 109,581,000 | 9,676,000 |
Net change in cash and cash equivalents | 105,404,000 | (4,181,000) |
Cash and cash equivalents at beginning of year | 8,791,000 | 12,972,000 |
Cash and cash equivalents at end of year | 114,195,000 | $ 8,791,000 |
Supplemental disclosure of non-cash investing and financing activities | ||
Conversion of Series X1 preferred stock into common stock | 13,000 | |
Issuance of common stock in acquisition | 1,194,000 | |
Issuance of non-voting convertible preferred stock in acquisition | 69,723,000 | |
Fair value of options assumed in acquisition | 2,950,000 | |
Fair value of warrants assumed in acquisition | 12,944,000 | |
Accrued offering costs | $ 450,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Note 1. Description of Business Eledon Pharmaceuticals, Inc. (formerly Novus Therapeutics, Inc.) is a clinical stage biopharmaceutical company focused on developing life-changing, targeted medicines for persons living with an autoimmune disease, requiring an organ or cell-based transplant, or living with amyotrophic lateral sclerosis (“ALS”). We believe that this approach has the potential to allow us to: develop more precise therapies with a resulting potential for both increased efficacy and safety; identify patients and indications more likely to respond to our treatment approaches; and pursue multiple indications for product candidates. Unless otherwise indicated, references to the terms “Eledon,” “our,” “us,” “we”, or the “Company” refer to Eledon Pharmaceuticals, Inc. and its wholly-owned subsidiaries, on a consolidated basis. On September 14, 2020, Novus Therapeutics, Inc. (“Novus”) acquired Anelixis Therapeutics, Inc. (“Anelixis”), a privately held clinical stage biotechnology company developing a next generation anti-CD40L antibody as a potential treatment for organ and cellular transplantation, autoimmune diseases, and neurodegenerative diseases (see Note 10). Following the acquisition of Anelixis, Novus changed its name to Eledon Pharmaceuticals, Inc. The Company has continued to maintain its corporate headquarters in Southern California and has research and development facilities in the Boston, Massachusetts area. In 2017, Otic Pharma, Ltd. (“Otic”) consummated a reverse merger with Tokai Pharmaceuticals, Inc. (“Tokai”), pursuant to which, among other things, Tokai purchased from Otic and its stockholders all of the common and preferred shares of Otic in exchange for the issuance of a certain number of shares of common stock of Tokai (the “Reverse Merger”). Following the Reverse Merger, Tokai changed its name to Novus Therapeutics, Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Eledon, a Delaware corporation, owns 100% of the issued and outstanding common stock or other ownership interest in Anelixis Therapeutics, LLC, a Delaware corporation, and Otic Pharma , Ltd., a private limited company organized under the laws of the State of Israel (“Otic”) All significant intercompany accounts and transactions among the entities have been eliminated in consolidation. Liquidity and Financial Condition The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. The Company recorded a net loss of $22.8 million and used $15.2 million of cash in operating activities for the year ended December 31, 2020. As of December 31, 2020, the Company had cash and cash equivalents of $114.2 million, working capital of $113.1 million and an accumulated deficit of $80.4 million. Due to continuing research and development activities, the Company expects to continue to incur net losses into the foreseeable future. In order to continue these activities, the Company will need to raise additional funds through public or private debt and equity financings or strategic collaboration and licensing arrangements. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors, including, but not limited to, the market demand for the Company’s common stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company. At the time of issuance of the consolidated financial statements for the year ended December 31, 2020, the Company’s management performed an analysis and concluded that the Company had sufficient cash resources to meet its anticipated cash needs through at least the next 12 months from the date of issuance of the accompanying consolidated financial statements. September 2020 Stock Purchase Agreement On September 14, 2020, Eledon entered into a Stock Purchase Agreement (the “ Purchase Agreement ”) with certain institutional and accredited investors (the “ Investors ”). Pursuant to the Purchase Agreement, Eledon agreed to sell an aggregate of approximately 199,112 shares of Series X 1 non-voting Preferred Stock (“Series X 1 Preferred Stock”) for an aggregate purchase price of approximately $99.1 million (collectively, the “ Financing ”). 1 Subject to stockholder approval, each share of Series X 1 Preferred Stock was convertible into 55.5556 shares of common stock, as described within this document. The preferences, rights and limitations applicable to the Series X 1 Preferred Stock are set forth in the Certificate of Designation, as filed with the SEC. The Financing was exempt from registration pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder, as a transaction by an issuer not involving a public offering. The Investors have acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends have been affixed to the securities issued in this transaction. On December 18, 2020, the Company held a special meeting of stockholders (the “Special Meeting”). At the Special Meeting, the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s Series X 1 On December 23, 2020, the Company sold 1,004,111 shares of its common stock for gross proceeds of $9.0 million that was contingent upon the satisfaction of certain incremental closing conditions, as described above. Nasdaq Matters On August 8, 2019, the Company received written notice (the “Notification Letter”) from The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it was not in compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities maintain a minimum closing bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum closing bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company’s common stock for the 30 consecutive business days prior to the date of the Notification Letter, the Company did not meet the minimum closing bid price requirement. On October 19, 2020, the Company received written notice from Nasdaq notifying the Company that the closing bid price of the Company’s common stock had been at $1.00 per share or greater for a period of ten consecutive trading days. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2) and this matter is now closed. Reverse Stock-Split On October 5, 2020, Eledon effected a reverse stock-split of its issued and outstanding common stock and options for common stock at a ratio of one-for-eighteen. The Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware effecting the reverse stock-split. The accompanying consolidated financial statements and notes, as well as other share and per-share data herein, give retroactive effect to the reverse stock-split for all periods presented. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to stock-based compensation, accruals for liabilities, fair value of assets acquired and liabilities assumed in a business combination, impairment of long lived assets, including Cash and Cash Equivalents Cash represents cash deposits held at financial institutions. The Company considers all liquid investments purchased with an original maturity of three months or less and that can be liquidated without prior notice or penalty to be cash equivalents. The carrying value of cash equivalents approximates their fair value due to the short-term maturities of these instruments. Cash equivalents are held for the purpose of meeting short-term liquidity requirements, rather than for investment purposes. The Company had $9.2 million and $0 cash equivalents at December 31, 2020 and 2019, respectively. Fair Value Measurements Financial assets and liabilities are recorded at fair value. The Company measures the fair value of certain of its financial instruments on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1—Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There have been no transfers of assets for liabilities between these fair value measurement classifications during the periods presented. The Company had no financial instruments, assets or liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019. Concentration of Credit Risk and Other Risks and Uncertainties As of December 31, 2020 and 2019, all of the Company’s long-lived assets were located in the United States. Financial instruments that are subject to concentration of credit risk consist primarily of cash equivalents. The Company’s policy is to invest cash in institutional money market funds to limit the amount of credit exposure. At times, the Company maintains cash equivalents in short‑term money market funds and it has not experienced any losses on its cash equivalents. The Company’s products will require approval from the U.S. Food and Drug Administration (“FDA”) and foreign regulatory agencies before commercial sales can commence. There can be no assurance that its products will receive any of these required approvals. The denial or delay of such approvals may impact the Company’s business in the future. In addition, after the approval by the FDA, there is still an ongoing risk of adverse events that did not appear during the product approval process. The Company is subject to risks common to companies in the pharmaceutical industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of products, product liability, the volatility of its stock price and the need to obtain additional financing. Our facilities and equipment, including those of our suppliers and vendors, may be affected by natural or man-made disasters. Our administrative office is based in Irvine, California and we manage all our research and development activities through third parties that are located throughout the world. We have taken precautions to safeguard our facilities, equipment and systems, including insurance, health and safety protocols, and off-site storage of computer data. However, our facilities and systems, as well as those of our third-party suppliers and vendors, may be vulnerable to earthquakes, fire, storm, health emergencies, including the ongoing COVID-19 pandemic, power loss, telecommunications failures, physical and software break-ins, software viruses and similar events which could cause substantial delays in our operations, damage or destroy our equipment or inventory, and cause us to incur additional expenses and delay research and development activities. In addition, the insurance coverage we maintain may not be adequate to cover our losses in any circumstance and may not continue to be available to use on acceptable terms, or at all. Business Combinations Accounting for acquisitions requires extensive use of estimates and judgment to measure the fair value of the identifiable tangible and intangible assets acquired, including in-process research and development (“IPR&D”) and liabilities assumed. Additionally, the Company must determine whether an acquired entity is considered a business or a set of net assets because the excess of the purchase price over the fair value of net assets acquired can only be recognized as goodwill in a business combination. The Company accounted for the acquisition of Anelixis as a business combination under the acquisition method of accounting. Consideration paid to acquire Anelixis was measured at fair value and included the exchange of Anelixis’ common stock. The allocation of the purchase price resulted in recognition of intangible assets related to goodwill and IPR&D. Acquired IPR&D is recognized at fair value and initially characterized as an indefinite-lived intangible asset, irrespective of whether the acquired IPR&D has an alternative future use. The operating activity for Anelixis, the acquiree for accounting purposes, was immediately integrated with Eledon post-acquisition, therefore it is not practical to segregate results of operations related specifically to Anelixis since the date of acquisition. During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, all adjustments are recorded in the consolidated statements of operations as operating expenses or income. Reportable Segments Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The CODM is the Company’s Chief Executive Officer and the Company has determined that it operates in one business segment, which is the development of Goodwill Goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired under the acquisition method of accounting. Goodwill is not amortized but is evaluated for impairment as of October 1 of each year or if indicators of impairment exist that would, more likely than not, reduce the fair value from its carrying amount. The Company performs its goodwill impairment analysis at the reporting unit level, which aligns with the Company’s reporting structure and availability of discrete financial information. If a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections . Key assumptions for these projections include revenue growth, future gross and operating margin growth, and its weighted cost of capital and terminal growth rates. The revenue and margin growth is based on increased sales of new products as the Company maintains investments in research and development. Additional assumed value creators may include increased efficiencies from capital spending. The resulting cash flows are discounted using a weighted average cost of capital. Operating mechanisms and requirements to ensure that growth and efficiency assumptions will ultimately be realized are also considered in the evaluation, including timing and probability of regulatory approvals for Company products to be commercialized. The Company’s market capitalization is also considered as a part of its analysis. The Company’s annual evaluation for impairment of goodwill consists of one reporting unit. In accordance with the Company’s policy, the Company completed its annual evaluation for impairment as of October 1, 2020 using the qualitative assessment and determined that no impairment existed. However, since the acquisition of Anelixis was only 16 days prior to the goodwill impairment test date, the Company did not expect, and did not observe, any indicators of impairment of goodwill at September 30, 2020 and deemed it appropriate to update its analysis as of December 31, 2020 to ensure that the status had not changed over the three month period. It was . Due to declining market conditions in 2019, the Company performed an additional goodwill impairment test as of December 31, 2019 and No impairment was recorded for the year ended 2020. Long-Lived Assets Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Additions, major renewals and improvements are capitalized and repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows. No impairments of long-lived assets have been identified during the years presented. In-Process Research and Development The fair value of IPR&D acquired through a business combination is capitalized as an indefinite-lived intangible asset until the completion or abandonment of the related research and development activities. When the related research and development is completed, the asset will be assigned a useful life and amortized. The fair value of an IPR&D intangible asset is determined using the replacement cost method. This method involves arriving at an asset’s value by reference to the present-day cost, in an arms-length transaction, of replacing that asset with a similar asset in a similar condition. Research and Development Expenses Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under contracts with third parties may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed. The Company’s contracts with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to its vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of portions of the clinical trial or similar conditions. The Company’s accrual for clinical trials is based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. These contracts may be terminated by the Company upon written notice and the Company is generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances the Company may be further responsible for termination fees and penalties. The Company estimates its research and development expenses and the related accrual as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2020. Net Loss Per Share Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, and stock options and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position. Year Ended December 31, 2020 2019 (In thousands, except share and per share data) Net loss $ (22,811 ) $ (16,011 ) Net loss per share, basic and diluted $ (15.72 ) $ (24.42 ) Weighted-average number of common shares 1,451,432 655,526 The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. For the year ended December 31, 2020, common share equivalents of 3,959,302 shares were anti-dilutive. For the year ended December 31, 2019, common share equivalents of 487,275 shares were anti-dilutive. Stock-Based Compensation For stock options granted to employees and directors, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The fair value of stock options is determined using the Black-Scholes option pricing model, using assumptions which are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior, the Company determined the expected life assumption using the simplified method for stock options granted to employees, which is an average of the options ordinary vesting period and the contractual term. For stock options granted to the board of directors, the Company determined the expected life assumption using the simplified method as the starting point with an average period of twelve (12) months added to take into account for the extended range of time of 12 to 18 months vested stock options granted to board of directors may be exercised upon termination. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate stock-based compensation. Restricted Stock Units (“RSU”) and Performance-Based Restricted Stock Units (“PRSU”) are measured and recognized based on the quoted market price of our common stock on the date of grant. In March 2020, the board of directors approved an increase of 28,816 shares issuable under the 2014 Stock Incentive Plan (the “2014 Plan”) and 7,204 shares issuable under the 2014 Employee Stock Purchase Plan (the “ESPP”). On December 18, 2020, the Company held the Special Meeting, whereby the Company’s stockholders approved the 2020 Long Term Incentive Plan (the “2020 Plan”). The aggregate number of shares of stock available for issuance under the 2020 Plan will initially be 4,860,000 shares of Common Stock, which represents approximately 15% of the total issued and outstanding shares of the Company’s common stock as of the record date of the Special Meeting (calculated on an as-converted basis and without regard to the potential application of beneficial ownership conversion limitations on the Preferred Stock) and may be increased by the number of shares under the 2014 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company . Based on projected utilization rates, the Board of Directors currently intends that the initial shares under the 2020 Plan will be sufficient to fund the Company’s equity compensation needs for approximately 3 years. The 2014 Plan was closed to new grants following the approval of the 2020 plan, and therefore, there were no shares reserved for issuance under the 2014 Plan as of December 31, 2020. The number of shares reserved for issuance under the 2020 Plan and ESPP was 4,167,044 and 24,077 shares, respectively, as of December 31, 2020. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the estimated fair value of the stock options on their grant date, determined using the Black-Scholes option pricing model. The awards generally vest over the period the Company expects to receive services from the nonemployees. Similar to stock options granted to employees, the fair value of stock options granted to nonemployees, is determined using the Black-Scholes option pricing model, involves assumptions that are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior on stock options granted to nonemployees, the Company determined the contractual term is the appropriate period for expected life on stock options granted to nonemployees. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate stock-based compensation. Income Taxes Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. We assess the likelihood that deferred tax assets will be recovered as deductions from future taxable income. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis and includes a review of all available positive and negative evidence. Factors reviewed include projections of pre-tax book income for the foreseeable future, determination of cumulative pre-tax book income after permanent differences, earnings history, and reliability of forecasting. We have provided a valuation allowance on our deferred tax assets as of December 31, 2020 and 2019 because we believe it is more likely than not that a majority of our deferred tax assets will not be realized as of this date. The Company evaluates the accounting for uncertainty in income tax recognized in its consolidated financial statements and determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit is recorded in its consolidated financial statements. For those tax positions where it is “not more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. Where applicable, associated interest and penalties are also recorded. The Company has not accrued any liabilities for any such uncertain tax positions as of December 31, 2020 and 2019. The Company is subject to U.S. federal and state tax authority examinations for all the years since inception due to net operating loss and tax credit carryforwards. The net operating losses and tax credits are subject to adjustment until the statute closes on the year the attributes are ultimately utilized. The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential revisions and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. For additional information, see Note 7. Income Taxes Recently Adopted Accounting Pronouncements No new accounting pronouncement issued or effective during the fiscal period had or is expected to have a material impact on the Company’s consolidated financial statements or disclosures. |
Prepaid Expenses Other Assets A
Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses Other Assets Accrued Expenses And Other Liabilities [Abstract] | |
Prepaid Expenses, Other Assets, Accrued Expenses and Other Liabilities | Note 3. Prepaid Expenses, Other Assets, Accrued Expenses and Other Liabilities Prepaid expenses and other current assets consisted of the following as of December 31, 2020 and 2019 (in thousands): As of December 31, 2020 2019 Prepaid insurance $ 1,157 $ 734 Prepaid clinical 89 102 Prepaid other 41 45 Insurance receivable 110 245 Other current assets 38 54 Total prepaid expenses and other current assets $ 1,435 $ 1,180 Accrued expenses and other liabilities consisted of the following as of December 31, 2020 and 2019 (in thousands): As of December 31, 2020 2019 Accrued compensation and related expenses $ 31 $ 40 Accrued clinical 258 437 Accrued professional services 9 130 Accrued vacation 67 199 Accrued costs associated with PIPE financing 450 — Accrued other 146 7 Total accrued expenses and other liabilities $ 961 $ 813 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 4. Goodwill On September 14, 2020, the Company acquired Anelixis (see Note 10). The changes in the carrying amount of goodwill consisted of the following for the years ended December 31, 2020 and 2019 (in thousands): Total Balance as of January 1, 2019 $ 1,867 Impairments (1,867 ) Balance as of December 31, 2019 — Acquisition of Anelixis 48,648 Balance as of December 31, 2020 $ 48,648 The Company performed a goodwill impairment test as of December 31, 2019 and No 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies Operating Leases The Company leases office space under various operating leases. Total rent expense for all operating leases in the consolidated statements of operations and comprehensive loss was approximately $207,000 and $188,000 for the years ended December 31, 2020 and 2019, respectively. The Company has an operating lease for 5,197 square feet of office space in Irvine, California, that expires on September 30, 2021, as amended. Additionally, the Company has operating leases for four serviced office spaces in Burlington, Massachusetts that expire on June 30, 2021. The Burlington, Massachusetts office leases are considered short-term leases and are not recorded on the consolidated balance sheet. The Company determines if a contract contains a lease at inception. Our office leases have a remaining term ranging from nine months to one year and do not include options to extend the leases for additional periods. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities as adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. As we have no outstanding debt nor committed credit facilities, secured or otherwise, we estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management’s judgment. Our Irvine lease contains rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term. Our lease agreement does not contain any material residual value guarantees or material restrictive covenants. While we do not currently have any lease agreement with lease and non-lease components, we elected to account for lease and non-lease components as separate components. We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the consolidated balance sheet. The components of lease expense were as follows: For the Year Ended December 31, 2020 Operating lease cost (a) $ 195 (a) Other information related to leases was as follows (in thousands, except lease term and discount rate): For the Year Ended December 31, 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating lease $ 188 Operating lease asset obtained in exchange for lease liability: Operating lease $ — Remaining lease term Operating lease 0.75 years Discount rate Operating lease 3.25 % Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the succeeding fiscal year and thereafter (in thousands): Year ending 2021 146 Total minimum lease payments 146 Less imputed interest (2 ) Present value of lease liabilities 144 Less current portion (144 ) $ - Future payments under short term leases with an initial term of 12 months or less total approximately $33,000 for 2021. Grants and Licenses ALS Therapy Development Foundation, Inc. License Agreement In May 2015, Anelixis executed a License Agreement (the “Agreement”), which is an exclusive (“ The first and second milestones of the Agreement are the dosing of the first subjects in a first toxicity study in non-human primates and the dosing of the first patient in a Phase I Clinical Trial, respectively. Both of these milestones were achieved as of December 31, 2018 and 2017. The fee due for the achievement of these milestones was $1,000,000 each. During 2018 and 2017, Anelixis issued $1,000,000 worth of its common stock in lieu of making a cash payment. There were no milestones achieved during 2020 and 2019. The Agreement was amended and restated in February 2020, and a first amendment to the restated license agreement was executed in September 2020. As amended in September 2020, the remaining milestone payments for a first licensed product total $6.0 million. In the event that the Company develops a second licensed product, the Company is obligated to pay up to $2.5 million in additional milestone payments. In addition to the milestone payments, the Company is required to pay ALSTDI an amended annual license maintenance fee of $100,000 beginning on the earlier of January 1, 2022, the Company’s first sublicense, or change in control, as defined in the Agreement. Furthermore, the Company shall pay ALSTDI fees based on reaching certain levels of annual net sales of any product produced with the patent rights. A royalty in the low single digits will be due on aggregate net sales. Upon the first calendar year of reaching $500 million in aggregate net sales, the Company shall pay ALS TDI a one-time milestone payment of $15,000,000. Upon the first calendar year of reaching $1 billion in aggregate net sales, the Company is obligated to pay ALSTDI a one-time milestone payment of $30,000,000. Israeli Innovation Authority Grant From 2012 through 2015, the Company received grants in the amount of approximately $537,000 from the Israeli Innovation Authority (previously the Office of Chief Scientist) of the Israeli Ministry of Economy and Industry designated for investments in research and development. The grants are linked to the U.S. dollar and bear annual interest of LIBOR. The grants are to be repaid as royalties from sales of the products developed by the Company from their investments in research and development. Because the Company has not yet earned revenues related to these investments and cannot estimate potential royalties, no liabilities related to these grants have been recorded as of each period presented. Repayment of the grant is contingent upon the successful completion of the Company’s research and development programs and generating sales. The Company has no obligation to repay these grants, if the research and development program fails, is unsuccessful or aborted or if no sales are generated. The Company had not yet generated sales as of December 31, 2020; therefore, no liability was recorded for the repayment in the accompanying consolidated financial statements. Otodyne License Agreement In November 2015, the Company entered into an exclusive license agreement with Scientific Development and Research, Inc. and Otodyne, Inc. (collectively, the “Licensors”) granting it exclusive worldwide rights to develop and commercialize OP0201, a potential first-in-class treatment option for patients at risk for or with otitis media (middle ear inflammation with or without infection), which is often caused by ETD. Under the terms of the agreement, the Company is obligated to use commercially reasonable efforts to seek approval for and commercialize at least one product for otitis media in the U.S. and key European markets (France, Germany, Italy, Spain, and the United Kingdom). The Company is responsible for prosecuting, maintaining, and enforcing all intellectual property and will be the sole owner of improvements. Under the agreement with the Licensors, the Company paid license fees totaling $750,000 and issued 9,780 common shares to the Licensors, which was expensed to research and development during the year ended December 31, 2015. In December 2015, the Licensors completed transfer of all technology, including the active IND application to the Company. The Company is obligated to pay up to $42.1 million in development and regulatory milestones if OP0201 is approved for three indications in the United States, two in Europe, and two in Japan. The Company is also obligated to pay up to $36.0 million in sales based milestones, beginning with sales exceeding $1.0 billion in a calendar year. The Company is also obligated to pay a tiered royalty for a period up to eight years, on a country-by-country basis. The royalty ranges from a low-single to mid-single percentage of net sales. The Company made a $300,000 milestone payment in March 2019 related to the first patient enrolled in a phase 2 study, which is included in research and development expenses in 2019. There were no other milestones achieved during the years ended December 31, 2020 or 2019. Legal Matters The Company is involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, the Company assesses, on a regular basis, the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures. The amount of ultimate loss may differ from these estimates. Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding. Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, the Company does not consider a liability probable and is currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. In the event that opposing litigants in outstanding litigation proceedings or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods. Legal Proceedings On September 22, 2014, Tokai, the legal predecessor of the Company, completed the initial public offering of its common stock (the “IPO”). On July 25, 2017, a purported stockholder of Tokai filed a lawsuit in the U.S. District Court for the District of Massachusetts, entitled Peter B. Angelos v. Tokai Pharmaceuticals, Inc., et al., No. 1:17-cv-11365-MLW. The lawsuit was filed against Tokai, Jodie P. Morrison, Lee H. Kalowski, Seth L. Harrison, Timothy J. Barberich, David A. Kessler, Joseph A. Yanchik, III, and the underwriters of the IPO. The lawsuit alleges that Tokai made false and misleading statements and omissions about its clinical trials for galeterone, in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934. The lawsuit seeks, among other things, unspecified compensatory damages, interest, costs, and attorneys’ fees. On September 7, 2018, plaintiff filed an amended complaint. Defendants moved to dismiss the amended complaint on October 15, 2018. Plaintiff opposed defendants’ motion on November 19, 2018, defendants filed a reply in support of their motion on December 17, 2018, and plaintiff filed a sur-reply in support of his opposition on January 8, 2019. On February 18, 2020, the court held a hearing on defendants’ motion to dismiss. The court also ordered the parties to confer and notify it by March 10, 2020, if they reached an agreement to settle the case. On March 10, 2020, pursuant to the court’s order, the parties advised the court they did not agree on a settlement. On July 15, 2020, plaintiff filed a Notice of Supplemental Authority, and on July 21, 2020, defendants filed a response. On October 9, 2020, the court entered an order granting defendants’ motion to dismiss and dismissing the action in its entirety. Judgment was entered on October 14, 2020. On November 12, 2020, plaintiff filed a notice of appeal. On February 17, 2021, the parties submitted a stipulated motion to dismiss the appeal, following a settlement payment to plaintiff by the Company’s insurance carrier of an immaterial amount. On February 18, 2021, the United States Court of Appeals for the First Circuit granted the motion, enter judgment dismissing the appeal, and issued the mandate. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future because of these indemnification obligations. No amounts associated with such indemnifications have been recorded to date. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual at December 31, 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes Loss before income taxes are as follows (in thousands): Year Ended December 31, 2020 2019 Losses before income taxes: U.S. $ (23,408 ) $ (16,174 ) Non-U.S. 193 163 Total $ (23,215 ) $ (16,011 ) The provision (benefit) for income taxes are as follows (in thousands): Year Ended December 31, 2020 2019 Current: Federal $ — $ — State — — Foreign — — — — Deferred: Federal (404 ) — State — — Foreign — — (404 ) — Provision (benefit) for income taxes $ (404 ) $ — The Company is subject to income taxes under U.S. tax laws. Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis, and includes a review of all available positive and negative evidence. Factors reviewed include projections of pre-tax book income for the foreseeable future, determination of cumulative pre-tax book income after permanent differences, earnings history, and reliability of forecasting. Based on its review, the Company concluded that it was more likely than not that they would not realize the benefit of a portion of its deferred tax assets in the future. This conclusion was based on historical and projected operating performance, as well as the Company’s expectation that its operations will not generate sufficient taxable income in future periods to realize the tax benefits associated with the deferred tax assets within the statutory carryover periods. Therefore, the Company has a valuation allowance on its deferred tax assets as of December 31, 2020. The Company will continue to assess the need for a valuation allowance on its deferred tax assets by evaluating both positive and negative evidence that may exist. Any adjustment to the net deferred tax asset valuation allowance would be recorded in the statement of operations for the period that the adjustment is determined to be required. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2020 2019 Statutory Federal income tax rate $ (4,875 ) $ (3,362 ) Tax credits (215 ) (207 ) Change in warrant fair market value 1,014 — Stock-based compensation 252 141 Goodwill impairment — 392 Permanent items 627 4 Section 382 limitation on net operating losses and credits 10,562 — Other 89 38 Change in valuation allowance (7,858 ) 2,994 Total provision (benefit) for income taxes $ (404 ) $ — Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 consisted of the following (in thousands): Year Ended December 31, 2020 2019 Net operating loss carryforwards $ 5,151 $ 9,947 Research and development tax credits 705 506 Accruals and reserves 14 43 Stock compensation 802 391 Depreciation and amortization 1,905 116 Lease liability 30 68 Total deferred tax assets 8,607 11,071 Right-of-use asset (29 ) (66 ) Acquired IPR&D (6,801 ) — Total deferred tax liabilities (6,830 ) (66 ) Less: valuation allowance (5,883 ) (11,005 ) Net deferred tax liabilities $ (4,106 ) $ — The following table reconciles the beginning and ending amounts of unrecognized tax benefits for the years presented (in thousands): Year Ended December 31, 2020 2019 Gross unrecognized tax benefits at the beginning of the year $ 548 $ 328 Additions from tax positions taken in the current year 233 214 Additions from tax positions taken in prior years 531 6 Reductions from tax positions taken in prior years (548 ) — Tax settlements — — Gross unrecognized tax benefits at the end of the year $ 764 $ 548 The deferred income tax assets have been offset by a valuation allowance, as realization is dependent on future earnings, if any, the timing and amount of which are uncertain. The net valuation allowance decreased by $5.1 million. The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company’s deferred tax assets, and the timing, likelihood, and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, the Company does not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a valuation allowance has been established. As of December 31, 2020 and 2019, the Company had federal net operating loss carryforwards of approximately $14.4 million and $38.6 million, respectively, available to reduce future taxable income. As of December 31, 2020 and 2019, the Company also has state net operating loss carryforwards of $6.2 million and $0.9 million, respectively. The federal net operating loss carryforwards incurred before 2018 begin expiring in 2035 if not utilized. The federal net operating losses incurred since 2018 of $13.6 million As of December 31, 2020 and 2019, the Company had federal research and development tax credit carryforwards of approximately $966,000 and $764,000, respectively. If not utilized, the carryforwards will begin expiring in 2035. As of December 31, 2020 and 2019, the Company has state research and development credit carryforwards or approximately $562,000 and $264,000, respectively, which will begin expiring in 2030 if not utilized. Pursuant to Internal Revenue Code (“IRC) Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. As part of the equity raise and acquisition, the Company had an IRC Section 382/383 ownership change during 2020. The Company has removed $10.6 million of deferred tax assets related to NOL and R&D credit carryforwards due to the Section 382 limitations. The Company’s ability to use its remaining net operating loss and tax credit carryforwards may be further limited if the Company experiences additional Section 382 ownership change in connection with future changes in the Company’s stock ownership. In the United States, the Company files income tax returns in the U.S. Federal jurisdiction, California and Massachusetts. The Company’s tax years for 2017 and forward are subject to examination by the Federal and California tax authorities due to the carryforward of unutilized net operating losses and research and development credits. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There was no accrued interest and penalties associated with uncertain tax positions as of December 31, 2020 and 2019. The Company has not recorded any interest or penalties in 2020 or 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7. Stockholders’ Equity Equity Distribution Agreement On July 23, 2018, the Company filed a prospectus and prospectus supplement (the “2018 Prospectus”) under which the Company may offer and sell, from time to time, pursuant to an equity distribution agreement with Piper Jaffray & Co., up to $9.8 million in shares of its common stock. During the year ended December 31, 2019, 1,401 shares were sold under the 2018 Prospectus for gross proceeds of approximately $110,000. No shares were sold during the year ended December 31, 2020. 2019 Equity Offering On April 30, 2019, the Company agreed to sell in a registered direct offering, an aggregate 191,617 shares of its common stock to certain investors for gross proceeds of approximately $10.7 million under its effective shelf registration statement on Form S-3 (File No. 333-226286). In a concurrent private placement, the Company also agreed to issue to such investors Series A warrants to purchase up to 191,617 shares of its common stock at an exercise price of $72.00 with a term of eighteen months and Series B warrants to purchase up 191,617 shares of its common stock at an exercise price of $72.00 with a term of five years. The Series B warrants become exercisable only upon the exercise of the Series A warrants. In addition, the Company agreed to issue placement agent warrants to purchase up to 9,580 shares of common stock representing 5.0% of the aggregate number of shares of common stock sold in this offering. The placement agent warrants have substantially the same terms as the Series A Warrants, except that the placement agent warrants will have an exercise price equal to $69.66 and will expire on April 30, 2024. All the warrants issued in connection with the 2019 Equity Offering contained put options that allow the holders of the warrants the right to receive, for each warrant share that would have been issuable upon an exercise immediately prior to the occurrence of an effective change in control event defined as a fundamental transaction, the number of shares of common stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration receivable as a result of such fundamental transaction by a holder of the number of shares of common stock for which this warrant is exercisable immediately prior to such fundamental transaction. The Company evaluated the embedded put option contained in the warrants under the guidance of Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging Warrant Exercise Transactions On January 10, 2020 and January 15, 2020, the Company entered into warrant exercise agreements (the “Exercise Agreements”) with the holders (the “Holders”) of its Series A Warrants and Series B Warrants (collectively, the “Warrants”), issued in the 2019 Equity Offering, pursuant to which the Holders agreed to exercise in cash their Warrants to purchase an aggregate of 383,234 shares of the Company’s common stock at a reduced exercise price of $12.87 per share, plus an additional $2.25 per share for the issuance of the private placement warrants for gross proceeds (before placement agent fees and expenses) to the Company of approximately $5.8 million (the “Exercise Transaction”). Under the Exercise Agreements, the Company also agreed to issue to the Holders new warrants to purchase up to 383,235 shares of the Company’s common stock at an exercise price of $12.96 per share, with an exercise period of five and a half years (the “Private Placement Warrants”). The Private Placement Warrants transaction subsequently closed and the Private Placement Warrants were issued on January 14, 2020 with respect to the Warrants exercised on January 10, 2020 and on or about January 17, 2020, with respect to the Warrants exercised on January 15, 2020. In addition, the Company agreed to issue to the placement agent warrants to purchase up to 19,162 shares of common stock, representing 5.0% of the aggregate number of shares of common stock issued in the Exercise Transaction. The placement agent warrants have substantially the same terms as the Private Placement Warrants issued to the Holders, except that the placement agent warrants have an exercise price equal to $18.90. A warrant inducement expense of $4.8 million was recorded which was determined using the Black-Scholes option pricing model and was calculated as the difference between the fair value of the Warrants prior to, and immediately after, the reduction in the exercise price on the date of repricing in addition to the fair value of the Private Placement Warrants issued. For the year ended December 31, 2020, the Holders exercised approximately 64,171 Private Placement Warrants in a cashless exchange for 28,553 shares of the Company’s common stock. Additionally, approximately 9,985 private placement warrants were exercised for 9,985 shares of the Company’s common stock for gross proceeds of $188,773. As of December 31, 2020, 337,822 warrants were exercisable into common stock. The shares of common stock underlying the registered direct and private placement warrants are registered for offer and sale under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Company’s effective registration statements on Forms S-1. The following table shows the warrant activity: Rollforward of Warrant Activity Registered direct warrants, series A Registered direct warrants, series B Registered direct warrants, placement agent Private placement warrants Private placement warrants, placement agent Total Balance as of December 31, 2019 191,617 191,617 9,581 — — 392,815 Issued — — — 383,235 19,162 402,397 Exercised (191,617 ) (191,617 ) — (64,171 ) (9,985 ) (457,390 ) Cancelled/Expired — — — — — — Balance as of December 31, 2020 — — 9,581 319,064 9,177 337,822 Anelixis Acquisition On September 14, 2020, the Company acquired Anelixis, after which Anelixis became a wholly-owned subsidiary of the Company. Under the terms of the acquisition, the Company issued to the stockholders of Anelixis 175,488 shares of Company common stock and 140,026 shares of Series X 1 1 On December 18, 2020, at the Special Meeting, the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s Series X 1 Series X 1 As of December 31, 2020, 55,853.875 warrants were exercisable into Series X 1 1 The following table shows the warrant activity: Rollforward of Warrant Activity Warrants assumed and replaced in acquisition Total Balance as of December 31, 2019 — — Assumed and replaced 55,583.875 55,583.875 Exercised — — Cancelled/Expired — — Balance as of December 31, 2020 55,583.875 55,583.875 Common Stock Exchange Agreement On February 13, 2020, the Company entered into an exchange agreement (the “Exchange Agreement”) with Biotechnology Value Fund, L.P., Biotechnology Value Fund II, L.P. and Biotechnology Value Trading Fund OS, L.P. (the “Exchanging Stockholders”), pursuant to which the Exchanging Stockholders exchanged (the “Exchange”) 210,888 shares of the Company’s common stock for 3,796 shares of newly designated Series X Convertible Preferred Stock (the “Series X Preferred Stock”). The Company agreed to reimburse the Exchanging Stockholders for their expenses in connection with the Exchange up to a total of $25,000, which was recorded as operating expense in the Company’s condensed consolidated statements of operations and comprehensive loss. The Exchange was completed on February 19, 2020. On February 13, 2020, in connection with the Exchange, the Company filed a Certificate of Designation setting forth the preferences, rights and limitations of the Series X Preferred Stock with the Secretary of State of the State of Delaware. The number of shares so designated shall be 10,000 and Series X Preferred Stock shall have a par value of $0.001 per share. Each share of Series X Preferred Stock will be convertible into 55.5556 shares of common stock at the option of the holder at any time; subject to certain limitations, including, that the holder will be prohibited from converting Series X Preferred Stock into common stock if, as a result of such conversion, the holder, together with its affiliates, would beneficially own a number of shares of common stock above a conversion blocker, which is initially set at 9.99% of the total common stock then issued and outstanding immediately following the conversion of such shares of Series X Preferred Stock. In the event of the Company’s liquidation, dissolution or winding up, holders of Series X Preferred Stock will participate pari passu with any distribution of proceeds to holders of common stock. Holders of Series X Preferred Stock are entitled to receive dividends on shares of Series X Preferred Stock equal (on an as-if-converted-to-common stock basis) to and in the same form as dividends actually paid on the common stock or other junior securities of the Company. Shares of Series X Preferred Stock will generally have no voting rights, except as required by law and except that the consent of a majority of the holders of the outstanding Series X Preferred Stock will be required to amend the terms of the Series X Preferred Stock. SEC Accounting Series Release No. 268 , Presentation in Financial Statements of “Redeemable Preferred Stocks” Each share of Series X Preferred Stock shall be convertible into 55.5556 shares of common stock, at the option of the holder, at any time after the date of issuance. The Company evaluated the embedded optional conversion feature in accordance with the guidance under ASC 815, Derivatives and Hedging Each share of Series X Preferred Stock contains redemption put features that allow the holders of the Series X Preferred Stock the right to receive, in lieu of the right to receive conversion shares, for each conversion share that would have been issuable upon such conversion immediately prior to the occurrence of an effective change in control (“Fundamental Transaction”), the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share of common stock Derivatives and Hedging On June 1, 2020 and June 10, 2020, the Exchanging Stockholders converted a total of 3,285 shares of Series X Preferred Stock into 182,500 shares of common stock. On December 18, 2020, at the Special Meeting, the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s remaining 511 shares of Series X Preferred Stock, par value $0.001 per share. As of December 31, 2020, no shares of Series X Preferred Stock remain outstanding. September 2020 Stock Purchase Agreement On September 14, 2020, Eledon entered into the Purchase Agreement with the Investors. Pursuant to the Purchase Agreement, Novus agreed to sell an aggregate of approximately 199,112 shares of Series X 1 1 1 1 filed with the SEC The Company records shares of preferred stock at their respective fair values on the dates of issuance, net of issuance costs. Holders of Series X 1 1 1 1 accordance with the listing rules of the Nasdaq Stock Market. The Company applied the guidance in ASC 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities, and classified the Series X 1 1 The Company analyzed the conversion provision related to the Series X 1 On December 18, 2020, the Company held a Special Meeting. At the Special Meeting, the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s Series X 1 1 1 On December 23, 2020, the Company sold 1,004,111 shares of its common stock for gross proceeds of $9.0 million that was contingent upon the satisfaction of certain incremental closing conditions, as described above. Exchange Agreements On December 31, 2020, the Company entered into an exchange agreement (the “Series X Exchange Agreement”) with Biotechnology Value Fund, L.P., Biotechnology Value Fund II, L.P., Biotechnology Value Trading Fund OS, L.P. , MSI BVF SPV, L.L.C. (collectively, the “BVF Exchanging Stockholders”) and Cormorant Global Healthcare Master Fund, LP (together with the BVF Exchanging Stockholders, the “Series X Exchanging Stockholders”), pursuant to which the Series X Exchanging Stockholders exchanged (the “Series X Exchange”) 344,666 shares of the Company’s common stock for 6,203.98 shares of Series X Convertible Preferred Stock. In addition, on December 31, 2020 the Company entered into an exchange agreement (the “Warrant Exchange Agreement,” and together with the Series X Exchange Agreement, the “Exchange Agreements”) with the BVF Exchanging Stockholders, pursuant to which the BVF Exchanging Stockholders exchanged (the “Warrant Exchange,” and together with the Series X Exchange, “the Exchanges”) 509,117 shares of the Common Stock for one or more pre-funded warrants to purchase an aggregate of 509,117 shares of the Common Stock at a nominal exercise price (the “Warrants”). The Company recorded the shares of Series X Convertible Preferred Stock and Warrants issuable as preferred stock and warrant subscriptions at December 31, 2020 since the physical settlement of the Exchanges was made on January 5, 2021, whereby the transfer agent recorded the exchange of common stock for the issuance of preferred stock and warrants. Following the Exchanges, the Company will have 14,306,614 shares of Common Stock outstanding and 6,203.98 shares of Series X Preferred Stock outstanding, which are convertible into 344,663 shares of Common Stock (after rounding for fractional shares). |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8. Stock-Based Compensation The Company has three stock compensation plans, the 2020 Stock Incentive Plan (the “2020 Plan”), the 2014 Stock Incentive Plan (the “2014 Plan”) and the 2007 Stock Incentive Plan (the “2007 Plan”). The 2020 Plan permits the Company to make grants of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights and other stock-based awards to the Company’s employees, officers, directors, consultants and advisors; however, incentive stock options may only be granted to the Company’s employees. The number of shares initially reserved for issuance under the 2020 Plan was 4,860,000 shares of common stock and may be increased by the number of shares under the 2014 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company. Options remain outstanding under the 2007, 2014 and the 2020 Plan. The number of shares subject to and the exercise prices applicable to these outstanding options were adjusted in connection with the one-for-eighteen reverse stock-split. As of December 31, 2020, there were 1,151 Stock Option and PRSU Activity As of December 31, 2020, a total of 4,167,044 stock awards were available for grant under the 2020 Plan. The following table shows the stock option activity, as follows: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) Outstanding as of January 1, 2019 49,798 $ 233.45 8.1 $ — Granted 42,244 28.87 Exercised — — Forfeited / Canceled (639 ) 79.38 Outstanding as of December 31, 2019 91,403 139.96 8.2 — Granted 2,191,462 9.15 Options assumed in connection with acquisition 1,346,398 7.58 Exercised — — Forfeited / Canceled (7,784 ) 586.16 Outstanding as of December 31, 2020 3,621,479 $ 10.63 8.9 $ 23,938,701 Options vested and expected to vest as of December 31, 2020 3,621,479 $ 15.21 8.9 $ 23,938,701 Options exercisable as of December 31, 2020 878,033 $ 16.00 8.2 $ 6,297,510 The following table shows the PRSU activity, as follows: Shares Issuable Under PRSUs Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) Outstanding as of January 1, 2019 4,358 $ 86.94 9.2 $ — Granted 3,056 66.96 PRSUs Vested (4,358 ) 86.94 Forfeited / Canceled — — Outstanding as of December 31, 2019 3,056 66.96 9.2 — Granted — — PRSUs Vested (3,056 ) 66.96 Forfeited / Canceled — — Outstanding as of December 31, 2020 — $ — $ — PRSUs vested and expected to vest as of December 31, 2020 — $ — $ — Options exercisable as of December 31, 2020 — $ — $ — As of December 31, 2020, the range of exercise prices was between $0.96 and $2,147 for options outstanding. Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock on the date of exercise. There was no aggregate intrinsic value of options exercised during the years ended December 31, 2020 and 2019. As of December 31, 2020, total unrecognized stock-based compensation expense related to non-vested equity awards was $17.1 million, which is expected to be recognized over an estimated weighted-average period of 2.7 years. Stock-based Compensation Expense Total compensation expense related to all of the Company’s stock-based awards for the years ended December 31, 2020 and 2019 was comprised of the following (in thousands): Year Ended December 31, 2020 2019 Stock-based compensation classified as: Research and development expense $ 1,254 $ 343 General and administrative expense 1,917 965 Total stock-based compensation expense $ 3,171 $ 1,308 Stock-based compensation expense for the year ended December 31, 2020 included no stock-based compensation expense related to performance-based options granted during 2020. During the year ended December 31, 2020, PRSUs awarded to employees totaling 3,059 shares vested and resulted in the recognition of $205,000 in stock-based compensation expense. Valuation Assumptions The following table presents the assumptions used in the Black-Scholes option pricing model to determine the fair value of stock options granted in the periods presented Year Ended December 31, 2020 2019 Expected stock price volatility 77% - 107% 74% - 87% Risk-free interest rate 0% - 1% 1% - 3% Expected life of option (in years) 4 - 6 6 Estimated dividend yield 0% 0% |
Restructuring Expense
Restructuring Expense | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Expense | Note 9. Restructuring Expense On June 11, 2020, following the announcement regarding the topline results from the phase 2a clinical trial of OP0201, Eledon announced that its board of directors approved a plan to reduce the size of its workforce. The workforce reduction, which was completed in June 2020, was designed to reduce the Company’s operating expenses while it is conducting a review of development and strategic alternatives. On September 3, 2020, the board of directors (the “Board”) of the Company accepted the resignation of Gregory Flesher as the Company’s Chief Executive Officer and a member of the Board. Mr. Flesher’s resignation was effective as of the close of business on September 4, 2020. The resignation of Mr. Flesher was not the result of any dispute or disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Concurrent with his resignation, Mr. Flesher entered into a consulting agreement with the Company pursuant to which he will provide consulting and transition-support services as requested by the Company at an hourly rate consistent with his target compensation. For the year ended December 31, 2020, Eledon incurred $2.3 million in expenses related to the workforce reduction and expects to pay these amounts in the next six months. Total liability for restructuring expenses and their utilization are summarized as follows (in thousands): For the Year Ended December 31, 2020 Accrued restructuring charges at beginning of period $ — Charged 2,282 Paid (2,270 ) Accrued restructuring charges at end of period $ 12 |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Acquisition | Note 10. Business Acquisition On September 14, 2020, the Company acquired Anelixis pursuant to that certain Agreement and Plan of Merger, dated September 14, 2020 (the “ Merger Agreement ”), by and among Eledon, Nautilus Merger Sub 1, Inc., a Delaware corporation and wholly owned subsidiary of Eledon (“ First Merger Sub ”), Nautilus Merger Sub 2, LLC, a Delaware limited liability company and wholly owned subsidiary of Eledon (“ Second Merger Sub ”), and Anelixis. Pursuant to the Merger Agreement, First Merger Sub merged with and into Anelixis, pursuant to which Anelixis was the surviving entity and became a wholly owned subsidiary of Eledon (the “ First Merger ”). Immediately following the First Merger, Anelixis merged with and into Second Merger Sub, pursuant to which Second Merger Sub was the surviving entity (the “ Second Merger, ” together with the First Merger, the “ Merger ”). The Merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes Under the terms of the Merger Agreement, at the closing of the Merger, Eledon issued to the stockholders of Anelixis 175,488 shares of the common stock of Eledon, par value $0.001 per share, and 140,026 shares of newly designated Series X 1 Preferred Stock. Subject to stockholder approval, each share of Series X 1 Preferred Stock was convertible into approximately 55.5556 shares of common stock. The preferences, rights and limitations applicable to the Series X 1 Preferred Stock are set forth in the Certificate of Designation, as filed with the SEC. In addition to the common stock and preferred stock issued, certain outstanding warrants issued and equity awards granted by Anelixis were not settled upon completion of the merger, and instead were assumed and then replaced with Eledon warrants and equity awards. The amounts for the assumed and replaced warrants and equity awards attributed to pre-merger services are included in other consideration amounts transferred and added to goodwill. The Company determined that FASB Accounting Standards Codification Topic 805 (“ASC 805”), Business Combinations , is the authoritative guidance in accounting for this transaction and for determining whether Anelixis was a dormant, non-operating entity that would not meet the definition of a business under ASC 805. If Anelixis was not an operating entity, the acquisition would instead be considered a capital transaction and equivalent to the issuance of shares by Novus for the net monetary assets of Anelixis accompanied by a recapitalization. Conversely, if Anelixis was determined to be a business, the acquisition method of accounting would apply and the difference between the acquisition date fair value of the total consideration transferred and the aggregate values assigned to the assets acquired and liabilities assumed would be recorded as goodwill. The Company evaluated the terms of the Merger Agreement and the transaction under the applicable accounting guidance and determined that Anelixis satisfied the definition of a business under ASC 805 and as further clarified by ASU 2017-01. Based on this analysis, the Company accounted for the acquisition of Anelixis as a business combination under the acquisition method of accounting as it had determined that Anelixis’ assets acquired in the transaction included an input and a substantive process that together significantly contributed to the ability to create outputs. Additionally, the Company was determined to be both the legal and accounting acquirer as it had issued equity interests to acquire all of Anelixis’ equity interests. Goodwill generated from the acquisition was primarily attributable to the expected synergies from combining operations and expanding market potential, together with certain intangible assets that do not qualify for separate recognition. None of the approximately $48.6 million in goodwill is expected to be deductible for tax purposes. Concurrently and in connection with the execution of the Merger Agreement, the Company entered into the Purchase Agreement with certain institutional and accredited investors. Pursuant to the Stock Purchase Agreement, the Company agreed to sell an aggregate of approximately 199,112 shares of Series X 1 Preferred Stock for an aggregate purchase price of approximately $99.1 million in the Financing. Eledon had commitments for an additional $9.0 million in equity financing that was contingent upon the satisfaction of certain incremental closing conditions, including stockholder approval of the issuance of the Company’s common stock upon the conversion of the Company’s Series X 1 Preferred Stock and the effective registration of its common stock. 1 On December 18, 2020, the Company held the Special Meeting, whereby the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s Series X 1 1 1 On December 23, 2020, the Company sold 1,004,111 shares of its common stock for gross proceeds of $9.0 million that was contingent upon the satisfaction of certain incremental closing conditions, as described above. Acquisition Consideration The following table summarizes the fair value of the purchase price consideration to acquire Anelixis (in thousands): Description Amount Fair value of purchase consideration: Common shares issued (1) $ 1,194 Preferred shares issued (2) 69,723 Options assumed (3) 2,950 Warrants assumed (3) 12,944 Total purchase consideration $ 86,811 (1) The fair value of common shares issued in the merger is based (2) The fair value of preferred shares issued in the merger is based on the amount per share of Series X 1 (3) The fair value of the options and warrants assumed and replaced in the merger is based on applying the Black-Scholes valuation method using appropriate inputs of volatility rates ranging from 82% to 83%, expected terms of 5.0 to 5.9 years and risk-free rates of 0.27% to 0.45%. Purchase Price Allocation The following is an allocation of the purchase price as of the September 14, 2020 acquisition closing date based upon a preliminary estimate of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition (in thousands): Description Amount Cash and cash equivalents $ 11,035 Prepaid expenses and other current assets 26 Other non-current assets 11 Accounts payable (580 ) Accrued expenses and other liabilities (206 ) Deferred tax liability (4,510 ) Net identifiable assets acquired 5,776 Goodwill 48,649 Identifiable intangible assets 32,386 Net assets acquired $ 86,811 Acquisition costs of approximately $2.9 million were included in general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss. Deferred Income Taxes The net deferred tax liability was based upon the difference between the estimated book basis and tax basis of net assets acquired and an estimate for the final pre-acquisition net operating losses of Anelixis. Identifiable Intangible Assets Through its acquisition of Anelixis, the Company acquired intangible assets that consisted of in-process research and development (“IPR&D”) with an estimated fair value of $32.4 million, related to its clinical development program of AT-1501. The estimated fair value of the IPR&D was determined by management based on an external valuation specialist’s analysis of replacement costs to recreate AT-1501 in its current clinical stage. The replacement cost method contemplates the cost to recreate the utility of AT-1501 but in a form that is not a replica of AT-1501. In this method, the replacement cost is determined and reduced for depreciation of the asset. In this context, depreciation has three components: (i) physical deterioration, (ii) functional obsolescence, and (iii) economic obsolescence. Goodwill Under the acquisition method of accounting, goodwill of approximately $48.6 million would be generated after accounting for Anelixis’ assets acquired, liabilities assumed, and intangible assets identified and valued. Pro Forma Information (Unaudited) The following unaudited pro forma combined financial information is presented to illustrate the estimated effects of the Merger based on the historical financial statements and accounting records of Eledon and Anelixis after giving effect to the Merger and the Merger-related pro forma adjustments. The unaudited pro forma combined statement of operations for the years ended December 31, 2020 and 2019 combine the historical statements of operations of Eledon and Anelixis, giving effect to the Merger as if it had occurred on January 1, 2019, the first day of the fiscal year ended December 31, 2019. The unaudited pro forma combined financial information has been presented for informational purposes only. The unaudited pro forma combined financial information does not purport to represent the actual results of operations that Eledon and Anelixis would have achieved had the companies been combined during the periods presented in the unaudited pro forma combined financial statements and is not intended to project the future results of operations that the combined company may achieve after the Merger. The unaudited pro forma combined financial information does not reflect any potential cost savings that may be realized as a result of the Merger and also does not reflect any restructuring or integration-related costs to achieve those potential cost savings. Additionally, the unaudited pro forma combined financial information does not reflect any merger-related expenses incurred by the Company or pre-merger Anelixis , . The unaudited pro forma combined financial information also excludes certain other income and other expense items as part of the acquisition of Anelixis. For the year ended December 31, 2020, a gain of approximately $655,000 due to the forgiveness of Anelixis debt was removed from pro forma other income. Approximately $512,000 and $395,000 was excluded from pro forma other expenses for the years ended December 31, 2020 and 2019, respectively, for interest expenses related to notes that were converted into equity interest in the Company. Year Ended December 31, 2020 2019 Revenue $ 120 $ 500 Operating expenses Research and development 9,489 11,441 General and administrative 8,317 7,585 Restructuring expense 2,282 — Goodwill impairment — 1,867 Total operating expenses 20,088 20,893 Loss from operations (19,968 ) (20,393 ) Other income (expense), net 79 40 Warrant inducement expense (4,829 ) — Loss before provision for income taxes (24,718 ) (20,353 ) Income tax benefit 404 — Net loss and other comprehensive loss $ (24,314 ) $ (20,353 ) Net loss per share, basic and diluted $ (15.44 ) $ (24.49 ) Weighted-average shares outstanding, basic and diluted 1,574,657 831,014 Actual net loss and other comprehensive loss of Anelixis since September 14, 2020 that is included in our consolidated statement of operations for the year ended December 31, 2020, is approximately $2.5 million. Anelixis did not recognize any revenue in 2020 since its acquisition by the Company. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events The Company has evaluated events subsequent to December 31, 2020 through the filing date of this Annual Report on Form 10-K. Any material subsequent events that occurred during this time have been properly recognized or disclosed in the consolidated financial statements and accompanying notes. On March 15, 2021, the Company appointed Paul Little as the Company’s Chief Financial Officer. In that role, Mr. Little will also serve as the Company’s principal financial officer, replacing Jon Kuwahara in that role. Mr. Kuwahara will continue to serve as the Company’s Senior Vice President of Finance and Administration and principal accounting officer. On March 30, 2021, the Company entered into an Open Market Sale Agreement (the “Sale Agreement”) with Jefferies LLC (“Jefferies”) to sell shares of the Company’s common stock, par value $0.001 per share, having aggregate sales proceeds of up to $75,000,000, from time to time, through an “at the market” equity offering program under which Jefferies will act as sales agent Under the Sale Agreement, the Company will set the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. Subject to the terms and conditions of the Sale Agreement, Jefferies may sell the shares by methods deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, including sales made directly on The Nasdaq Capital Market or on any other existing trading market for the common stock. The Company and Jefferies may each terminate the Sale Agreement at any time as set forth in the Sale Agreement. Under the terms of the Sale Agreement, the Company may also sell shares to Jefferies acting as principal for Jefferies’ own account. The compensation to Jefferies for sales of the Company’s common stock will be an amount equal to 3.0% of the gross proceeds of any shares of common stock sold under the Sale Agreement. The Company has no obligation to sell any shares under the Sale Agreement, and may at any time suspend solicitation and offers under the Sale Agreement. The shares will be issued pursuant to a shelf registration statement on Form S-3 to be filed with the SEC. No sales may be made under the registration statement until it has been declared effective by the SEC. The foregoing description of the Sale Agreement is not complete and is qualified in its entirety by reference to the full text of such agreement, a copy of which is filed herewith as Exhibit 1.1 to this Annual Report on Form 10-K and is incorporated herein by reference. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Eledon, a Delaware corporation, owns 100% of the issued and outstanding common stock or other ownership interest in Anelixis Therapeutics, LLC, a Delaware corporation, and Otic Pharma , Ltd., a private limited company organized under the laws of the State of Israel (“Otic”) All significant intercompany accounts and transactions among the entities have been eliminated in consolidation. |
Liquidity and Financial Condition | Liquidity and Financial Condition The Company has experienced recurring net losses and negative cash flows from operating activities since its inception. The Company recorded a net loss of $22.8 million and used $15.2 million of cash in operating activities for the year ended December 31, 2020. As of December 31, 2020, the Company had cash and cash equivalents of $114.2 million, working capital of $113.1 million and an accumulated deficit of $80.4 million. Due to continuing research and development activities, the Company expects to continue to incur net losses into the foreseeable future. In order to continue these activities, the Company will need to raise additional funds through public or private debt and equity financings or strategic collaboration and licensing arrangements. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors, including, but not limited to, the market demand for the Company’s common stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company. At the time of issuance of the consolidated financial statements for the year ended December 31, 2020, the Company’s management performed an analysis and concluded that the Company had sufficient cash resources to meet its anticipated cash needs through at least the next 12 months from the date of issuance of the accompanying consolidated financial statements. September 2020 Stock Purchase Agreement On September 14, 2020, Eledon entered into a Stock Purchase Agreement (the “ Purchase Agreement ”) with certain institutional and accredited investors (the “ Investors ”). Pursuant to the Purchase Agreement, Eledon agreed to sell an aggregate of approximately 199,112 shares of Series X 1 non-voting Preferred Stock (“Series X 1 Preferred Stock”) for an aggregate purchase price of approximately $99.1 million (collectively, the “ Financing ”). 1 Subject to stockholder approval, each share of Series X 1 Preferred Stock was convertible into 55.5556 shares of common stock, as described within this document. The preferences, rights and limitations applicable to the Series X 1 Preferred Stock are set forth in the Certificate of Designation, as filed with the SEC. The Financing was exempt from registration pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder, as a transaction by an issuer not involving a public offering. The Investors have acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends have been affixed to the securities issued in this transaction. On December 18, 2020, the Company held a special meeting of stockholders (the “Special Meeting”). At the Special Meeting, the Company’s stockholders approved the issuance of the Company’s common stock, upon conversion of the Company’s Series X 1 On December 23, 2020, the Company sold 1,004,111 shares of its common stock for gross proceeds of $9.0 million that was contingent upon the satisfaction of certain incremental closing conditions, as described above. Nasdaq Matters On August 8, 2019, the Company received written notice (the “Notification Letter”) from The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it was not in compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities maintain a minimum closing bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum closing bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company’s common stock for the 30 consecutive business days prior to the date of the Notification Letter, the Company did not meet the minimum closing bid price requirement. On October 19, 2020, the Company received written notice from Nasdaq notifying the Company that the closing bid price of the Company’s common stock had been at $1.00 per share or greater for a period of ten consecutive trading days. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2) and this matter is now closed. Reverse Stock-Split On October 5, 2020, Eledon effected a reverse stock-split of its issued and outstanding common stock and options for common stock at a ratio of one-for-eighteen. The Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware effecting the reverse stock-split. The accompanying consolidated financial statements and notes, as well as other share and per-share data herein, give retroactive effect to the reverse stock-split for all periods presented. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to stock-based compensation, accruals for liabilities, fair value of assets acquired and liabilities assumed in a business combination, impairment of long lived assets, including |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash represents cash deposits held at financial institutions. The Company considers all liquid investments purchased with an original maturity of three months or less and that can be liquidated without prior notice or penalty to be cash equivalents. The carrying value of cash equivalents approximates their fair value due to the short-term maturities of these instruments. Cash equivalents are held for the purpose of meeting short-term liquidity requirements, rather than for investment purposes. The Company had $9.2 million and $0 cash equivalents at December 31, 2020 and 2019, respectively. |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities are recorded at fair value. The Company measures the fair value of certain of its financial instruments on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1—Quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. There have been no transfers of assets for liabilities between these fair value measurement classifications during the periods presented. The Company had no financial instruments, assets or liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties As of December 31, 2020 and 2019, all of the Company’s long-lived assets were located in the United States. Financial instruments that are subject to concentration of credit risk consist primarily of cash equivalents. The Company’s policy is to invest cash in institutional money market funds to limit the amount of credit exposure. At times, the Company maintains cash equivalents in short‑term money market funds and it has not experienced any losses on its cash equivalents. The Company’s products will require approval from the U.S. Food and Drug Administration (“FDA”) and foreign regulatory agencies before commercial sales can commence. There can be no assurance that its products will receive any of these required approvals. The denial or delay of such approvals may impact the Company’s business in the future. In addition, after the approval by the FDA, there is still an ongoing risk of adverse events that did not appear during the product approval process. The Company is subject to risks common to companies in the pharmaceutical industry, including, but not limited to, new technological innovations, clinical development risk, establishment of appropriate commercial partnerships, protection of proprietary technology, compliance with government and environmental regulations, uncertainty of market acceptance of products, product liability, the volatility of its stock price and the need to obtain additional financing. Our facilities and equipment, including those of our suppliers and vendors, may be affected by natural or man-made disasters. Our administrative office is based in Irvine, California and we manage all our research and development activities through third parties that are located throughout the world. We have taken precautions to safeguard our facilities, equipment and systems, including insurance, health and safety protocols, and off-site storage of computer data. However, our facilities and systems, as well as those of our third-party suppliers and vendors, may be vulnerable to earthquakes, fire, storm, health emergencies, including the ongoing COVID-19 pandemic, power loss, telecommunications failures, physical and software break-ins, software viruses and similar events which could cause substantial delays in our operations, damage or destroy our equipment or inventory, and cause us to incur additional expenses and delay research and development activities. In addition, the insurance coverage we maintain may not be adequate to cover our losses in any circumstance and may not continue to be available to use on acceptable terms, or at all. |
Business Combinations | Business Combinations Accounting for acquisitions requires extensive use of estimates and judgment to measure the fair value of the identifiable tangible and intangible assets acquired, including in-process research and development (“IPR&D”) and liabilities assumed. Additionally, the Company must determine whether an acquired entity is considered a business or a set of net assets because the excess of the purchase price over the fair value of net assets acquired can only be recognized as goodwill in a business combination. The Company accounted for the acquisition of Anelixis as a business combination under the acquisition method of accounting. Consideration paid to acquire Anelixis was measured at fair value and included the exchange of Anelixis’ common stock. The allocation of the purchase price resulted in recognition of intangible assets related to goodwill and IPR&D. Acquired IPR&D is recognized at fair value and initially characterized as an indefinite-lived intangible asset, irrespective of whether the acquired IPR&D has an alternative future use. The operating activity for Anelixis, the acquiree for accounting purposes, was immediately integrated with Eledon post-acquisition, therefore it is not practical to segregate results of operations related specifically to Anelixis since the date of acquisition. During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, all adjustments are recorded in the consolidated statements of operations as operating expenses or income. |
Reportable Segments | Reportable Segments Operating segments under GAAP are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The CODM is the Company’s Chief Executive Officer and the Company has determined that it operates in one business segment, which is the development of |
Goodwill | Goodwill Goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired under the acquisition method of accounting. Goodwill is not amortized but is evaluated for impairment as of October 1 of each year or if indicators of impairment exist that would, more likely than not, reduce the fair value from its carrying amount. The Company performs its goodwill impairment analysis at the reporting unit level, which aligns with the Company’s reporting structure and availability of discrete financial information. If a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections . Key assumptions for these projections include revenue growth, future gross and operating margin growth, and its weighted cost of capital and terminal growth rates. The revenue and margin growth is based on increased sales of new products as the Company maintains investments in research and development. Additional assumed value creators may include increased efficiencies from capital spending. The resulting cash flows are discounted using a weighted average cost of capital. Operating mechanisms and requirements to ensure that growth and efficiency assumptions will ultimately be realized are also considered in the evaluation, including timing and probability of regulatory approvals for Company products to be commercialized. The Company’s market capitalization is also considered as a part of its analysis. The Company’s annual evaluation for impairment of goodwill consists of one reporting unit. In accordance with the Company’s policy, the Company completed its annual evaluation for impairment as of October 1, 2020 using the qualitative assessment and determined that no impairment existed. However, since the acquisition of Anelixis was only 16 days prior to the goodwill impairment test date, the Company did not expect, and did not observe, any indicators of impairment of goodwill at September 30, 2020 and deemed it appropriate to update its analysis as of December 31, 2020 to ensure that the status had not changed over the three month period. It was . Due to declining market conditions in 2019, the Company performed an additional goodwill impairment test as of December 31, 2019 and No impairment was recorded for the year ended 2020. |
Long-Lived Assets | Long-Lived Assets Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Additions, major renewals and improvements are capitalized and repair and maintenance costs are charged to expense as incurred. Leasehold improvements are amortized over the remaining life of the initial lease term or the estimated useful lives of the assets, whichever is shorter. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. Significant management judgment is required in the forecast of future operating results that are used in the preparation of expected cash flows. No impairments of long-lived assets have been identified during the years presented. |
In-Process Research and Development | In-Process Research and Development The fair value of IPR&D acquired through a business combination is capitalized as an indefinite-lived intangible asset until the completion or abandonment of the related research and development activities. When the related research and development is completed, the asset will be assigned a useful life and amortized. The fair value of an IPR&D intangible asset is determined using the replacement cost method. This method involves arriving at an asset’s value by reference to the present-day cost, in an arms-length transaction, of replacing that asset with a similar asset in a similar condition. |
Research and Development Expenses | Research and Development Expenses Research and development expenses include personnel and facility-related expenses, outside contracted services including clinical trial costs, manufacturing and process development costs, research costs and other consulting services and non-cash stock-based compensation. Research and development costs are expensed as incurred. Amounts due under contracts with third parties may be either fixed fee or fee for service, and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. Non-refundable advance payments under agreements are capitalized and expensed as the related goods are delivered or services are performed. The Company’s contracts with third parties to perform various clinical trial activities in the on-going development of potential products. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to its vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of portions of the clinical trial or similar conditions. The Company’s accrual for clinical trials is based on estimates of the services received and efforts expended pursuant to contracts with clinical trial centers and clinical research organizations. These contracts may be terminated by the Company upon written notice and the Company is generally only liable for actual effort expended by the organizations to the date of termination, although in certain instances the Company may be further responsible for termination fees and penalties. The Company estimates its research and development expenses and the related accrual as of each balance sheet date based on the facts and circumstances known to the Company at that time. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2020. |
Net Loss Per Share | Net Loss Per Share Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, and stock options and warrants are considered to be potentially dilutive securities and are excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive. Therefore, basic and diluted net loss per share was the same for the periods presented due to the Company’s net loss position. Year Ended December 31, 2020 2019 (In thousands, except share and per share data) Net loss $ (22,811 ) $ (16,011 ) Net loss per share, basic and diluted $ (15.72 ) $ (24.42 ) Weighted-average number of common shares 1,451,432 655,526 The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. For the year ended December 31, 2020, common share equivalents of 3,959,302 shares were anti-dilutive. For the year ended December 31, 2019, common share equivalents of 487,275 shares were anti-dilutive. |
Stock-Based Compensation | Stock-Based Compensation For stock options granted to employees and directors, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The fair value of stock options is determined using the Black-Scholes option pricing model, using assumptions which are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior, the Company determined the expected life assumption using the simplified method for stock options granted to employees, which is an average of the options ordinary vesting period and the contractual term. For stock options granted to the board of directors, the Company determined the expected life assumption using the simplified method as the starting point with an average period of twelve (12) months added to take into account for the extended range of time of 12 to 18 months vested stock options granted to board of directors may be exercised upon termination. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate stock-based compensation. Restricted Stock Units (“RSU”) and Performance-Based Restricted Stock Units (“PRSU”) are measured and recognized based on the quoted market price of our common stock on the date of grant. In March 2020, the board of directors approved an increase of 28,816 shares issuable under the 2014 Stock Incentive Plan (the “2014 Plan”) and 7,204 shares issuable under the 2014 Employee Stock Purchase Plan (the “ESPP”). On December 18, 2020, the Company held the Special Meeting, whereby the Company’s stockholders approved the 2020 Long Term Incentive Plan (the “2020 Plan”). The aggregate number of shares of stock available for issuance under the 2020 Plan will initially be 4,860,000 shares of Common Stock, which represents approximately 15% of the total issued and outstanding shares of the Company’s common stock as of the record date of the Special Meeting (calculated on an as-converted basis and without regard to the potential application of beneficial ownership conversion limitations on the Preferred Stock) and may be increased by the number of shares under the 2014 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company . Based on projected utilization rates, the Board of Directors currently intends that the initial shares under the 2020 Plan will be sufficient to fund the Company’s equity compensation needs for approximately 3 years. The 2014 Plan was closed to new grants following the approval of the 2020 plan, and therefore, there were no shares reserved for issuance under the 2014 Plan as of December 31, 2020. The number of shares reserved for issuance under the 2020 Plan and ESPP was 4,167,044 and 24,077 shares, respectively, as of December 31, 2020. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the estimated fair value of the stock options on their grant date, determined using the Black-Scholes option pricing model. The awards generally vest over the period the Company expects to receive services from the nonemployees. Similar to stock options granted to employees, the fair value of stock options granted to nonemployees, is determined using the Black-Scholes option pricing model, involves assumptions that are subjective and require significant judgment and estimation by management. The risk-free rate assumption was based on observed yields from governmental zero-coupon bonds with an equivalent term. The expected volatility assumption was based on historical volatilities of a group of comparable industry companies whose share prices are publicly available. The peer group was developed based on companies in the pharmaceutical industry. The expected term of stock options represents the weighted-average period that the stock options are expected to be outstanding. Because the Company does not have historical exercise behavior on stock options granted to nonemployees, the Company determined the contractual term is the appropriate period for expected life on stock options granted to nonemployees. The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. The Company has not paid and does not expect to pay dividends at any time in the foreseeable future. The Company recognizes forfeitures on an actual basis and as such did not estimate forfeitures to calculate stock-based compensation. |
Income Taxes | Income Taxes Significant judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. We assess the likelihood that deferred tax assets will be recovered as deductions from future taxable income. The evaluation of the need for a valuation allowance is performed on a jurisdiction-by-jurisdiction basis and includes a review of all available positive and negative evidence. Factors reviewed include projections of pre-tax book income for the foreseeable future, determination of cumulative pre-tax book income after permanent differences, earnings history, and reliability of forecasting. We have provided a valuation allowance on our deferred tax assets as of December 31, 2020 and 2019 because we believe it is more likely than not that a majority of our deferred tax assets will not be realized as of this date. The Company evaluates the accounting for uncertainty in income tax recognized in its consolidated financial statements and determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit is recorded in its consolidated financial statements. For those tax positions where it is “not more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. Where applicable, associated interest and penalties are also recorded. The Company has not accrued any liabilities for any such uncertain tax positions as of December 31, 2020 and 2019. The Company is subject to U.S. federal and state tax authority examinations for all the years since inception due to net operating loss and tax credit carryforwards. The net operating losses and tax credits are subject to adjustment until the statute closes on the year the attributes are ultimately utilized. The Company’s income tax returns are based on calculations and assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcomes of examinations by tax authorities in determining the adequacy of its provision for income taxes. The Company continually assesses the likelihood and amount of potential revisions and adjusts the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. For additional information, see Note 7. Income Taxes |
Recently Issued or Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements No new accounting pronouncement issued or effective during the fiscal period had or is expected to have a material impact on the Company’s consolidated financial statements or disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share | Year Ended December 31, 2020 2019 (In thousands, except share and per share data) Net loss $ (22,811 ) $ (16,011 ) Net loss per share, basic and diluted $ (15.72 ) $ (24.42 ) Weighted-average number of common shares 1,451,432 655,526 |
Prepaid Expenses Other Assets_2
Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid Expenses Other Assets Accrued Expenses And Other Liabilities [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following as of December 31, 2020 and 2019 (in thousands): As of December 31, 2020 2019 Prepaid insurance $ 1,157 $ 734 Prepaid clinical 89 102 Prepaid other 41 45 Insurance receivable 110 245 Other current assets 38 54 Total prepaid expenses and other current assets $ 1,435 $ 1,180 |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following as of December 31, 2020 and 2019 (in thousands): As of December 31, 2020 2019 Accrued compensation and related expenses $ 31 $ 40 Accrued clinical 258 437 Accrued professional services 9 130 Accrued vacation 67 199 Accrued costs associated with PIPE financing 450 — Accrued other 146 7 Total accrued expenses and other liabilities $ 961 $ 813 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill consisted of the following for the years ended December 31, 2020 and 2019 (in thousands): Total Balance as of January 1, 2019 $ 1,867 Impairments (1,867 ) Balance as of December 31, 2019 — Acquisition of Anelixis 48,648 Balance as of December 31, 2020 $ 48,648 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: For the Year Ended December 31, 2020 Operating lease cost (a) $ 195 (a) |
Schedule of Other Information Related to Leases | Other information related to leases was as follows (in thousands, except lease term and discount rate): For the Year Ended December 31, 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liability: Operating cash flows from operating lease $ 188 Operating lease asset obtained in exchange for lease liability: Operating lease $ — Remaining lease term Operating lease 0.75 years Discount rate Operating lease 3.25 % |
Schedule of Future Payments Under Noncancelable Operating Leases | Future payments under noncancelable operating leases having initial or remaining terms of one year or more are as follows for the succeeding fiscal year and thereafter (in thousands): Year ending 2021 146 Total minimum lease payments 146 Less imputed interest (2 ) Present value of lease liabilities 144 Less current portion (144 ) $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss Before Income Taxes | Loss before income taxes are as follows (in thousands): Year Ended December 31, 2020 2019 Losses before income taxes: U.S. $ (23,408 ) $ (16,174 ) Non-U.S. 193 163 Total $ (23,215 ) $ (16,011 ) |
Summary of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes are as follows (in thousands): Year Ended December 31, 2020 2019 Current: Federal $ — $ — State — — Foreign — — — — Deferred: Federal (404 ) — State — — Foreign — — (404 ) — Provision (benefit) for income taxes $ (404 ) $ — |
Reconciliation of U.S. Federal Statutory Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2020 2019 Statutory Federal income tax rate $ (4,875 ) $ (3,362 ) Tax credits (215 ) (207 ) Change in warrant fair market value 1,014 — Stock-based compensation 252 141 Goodwill impairment — 392 Permanent items 627 4 Section 382 limitation on net operating losses and credits 10,562 — Other 89 38 Change in valuation allowance (7,858 ) 2,994 Total provision (benefit) for income taxes $ (404 ) $ — |
Schedule of Significant Components Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 consisted of the following (in thousands): Year Ended December 31, 2020 2019 Net operating loss carryforwards $ 5,151 $ 9,947 Research and development tax credits 705 506 Accruals and reserves 14 43 Stock compensation 802 391 Depreciation and amortization 1,905 116 Lease liability 30 68 Total deferred tax assets 8,607 11,071 Right-of-use asset (29 ) (66 ) Acquired IPR&D (6,801 ) — Total deferred tax liabilities (6,830 ) (66 ) Less: valuation allowance (5,883 ) (11,005 ) Net deferred tax liabilities $ (4,106 ) $ — |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table reconciles the beginning and ending amounts of unrecognized tax benefits for the years presented (in thousands): Year Ended December 31, 2020 2019 Gross unrecognized tax benefits at the beginning of the year $ 548 $ 328 Additions from tax positions taken in the current year 233 214 Additions from tax positions taken in prior years 531 6 Reductions from tax positions taken in prior years (548 ) — Tax settlements — — Gross unrecognized tax benefits at the end of the year $ 764 $ 548 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Class Of Warrant Or Right [Line Items] | |
Schedule of Warrant Activity | The following table shows the warrant activity: Rollforward of Warrant Activity Registered direct warrants, series A Registered direct warrants, series B Registered direct warrants, placement agent Private placement warrants Private placement warrants, placement agent Total Balance as of December 31, 2019 191,617 191,617 9,581 — — 392,815 Issued — — — 383,235 19,162 402,397 Exercised (191,617 ) (191,617 ) — (64,171 ) (9,985 ) (457,390 ) Cancelled/Expired — — — — — — Balance as of December 31, 2020 — — 9,581 319,064 9,177 337,822 |
Anelixis [Member] | |
Class Of Warrant Or Right [Line Items] | |
Schedule of Warrant Activity | The following table shows the warrant activity: Rollforward of Warrant Activity Warrants assumed and replaced in acquisition Total Balance as of December 31, 2019 — — Assumed and replaced 55,583.875 55,583.875 Exercised — — Cancelled/Expired — — Balance as of December 31, 2020 55,583.875 55,583.875 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table shows the stock option activity, as follows: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) Outstanding as of January 1, 2019 49,798 $ 233.45 8.1 $ — Granted 42,244 28.87 Exercised — — Forfeited / Canceled (639 ) 79.38 Outstanding as of December 31, 2019 91,403 139.96 8.2 — Granted 2,191,462 9.15 Options assumed in connection with acquisition 1,346,398 7.58 Exercised — — Forfeited / Canceled (7,784 ) 586.16 Outstanding as of December 31, 2020 3,621,479 $ 10.63 8.9 $ 23,938,701 Options vested and expected to vest as of December 31, 2020 3,621,479 $ 15.21 8.9 $ 23,938,701 Options exercisable as of December 31, 2020 878,033 $ 16.00 8.2 $ 6,297,510 |
Summary of PRSU Activity | The following table shows the PRSU activity, as follows: Shares Issuable Under PRSUs Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In years) Outstanding as of January 1, 2019 4,358 $ 86.94 9.2 $ — Granted 3,056 66.96 PRSUs Vested (4,358 ) 86.94 Forfeited / Canceled — — Outstanding as of December 31, 2019 3,056 66.96 9.2 — Granted — — PRSUs Vested (3,056 ) 66.96 Forfeited / Canceled — — Outstanding as of December 31, 2020 — $ — $ — PRSUs vested and expected to vest as of December 31, 2020 — $ — $ — Options exercisable as of December 31, 2020 — $ — $ — |
Schedule of Stock-Based Compensation Expense Related to Stock-Based Awards | Total compensation expense related to all of the Company’s stock-based awards for the years ended December 31, 2020 and 2019 was comprised of the following (in thousands): Year Ended December 31, 2020 2019 Stock-based compensation classified as: Research and development expense $ 1,254 $ 343 General and administrative expense 1,917 965 Total stock-based compensation expense $ 3,171 $ 1,308 |
Schedule of Assumptions Used in Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options Granted | The following table presents the assumptions used in the Black-Scholes option pricing model to determine the fair value of stock options granted in the periods presented Year Ended December 31, 2020 2019 Expected stock price volatility 77% - 107% 74% - 87% Risk-free interest rate 0% - 1% 1% - 3% Expected life of option (in years) 4 - 6 6 Estimated dividend yield 0% 0% |
Restructuring Expense (Tables)
Restructuring Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Total Liability For Restructuring Expenses and Their Utilization | Total liability for restructuring expenses and their utilization are summarized as follows (in thousands): For the Year Ended December 31, 2020 Accrued restructuring charges at beginning of period $ — Charged 2,282 Paid (2,270 ) Accrued restructuring charges at end of period $ 12 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Purchase Price Consideration | The following table summarizes the fair value of the purchase price consideration to acquire Anelixis (in thousands): Description Amount Fair value of purchase consideration: Common shares issued (1) $ 1,194 Preferred shares issued (2) 69,723 Options assumed (3) 2,950 Warrants assumed (3) 12,944 Total purchase consideration $ 86,811 (1) The fair value of common shares issued in the merger is based (2) The fair value of preferred shares issued in the merger is based on the amount per share of Series X 1 (3) The fair value of the options and warrants assumed and replaced in the merger is based on applying the Black-Scholes valuation method using appropriate inputs of volatility rates ranging from 82% to 83%, expected terms of 5.0 to 5.9 years and risk-free rates of 0.27% to 0.45%. |
Summary of Preliminary Estimate of Fair Value of Assets Acquired and Liabilities Assumed | The following is an allocation of the purchase price as of the September 14, 2020 acquisition closing date based upon a preliminary estimate of the fair value of the assets acquired and the liabilities assumed by the Company in the acquisition (in thousands): Description Amount Cash and cash equivalents $ 11,035 Prepaid expenses and other current assets 26 Other non-current assets 11 Accounts payable (580 ) Accrued expenses and other liabilities (206 ) Deferred tax liability (4,510 ) Net identifiable assets acquired 5,776 Goodwill 48,649 Identifiable intangible assets 32,386 Net assets acquired $ 86,811 |
Schedule of Unaudited Pro Forma Combined Financial Information | The following unaudited pro forma combined financial information is presented to illustrate the estimated effects of the Merger based on the historical financial statements and accounting records of Eledon and Anelixis after giving effect to the Merger and the Merger-related pro forma adjustments. The unaudited pro forma combined statement of operations for the years ended December 31, 2020 and 2019 combine the historical statements of operations of Eledon and Anelixis, giving effect to the Merger as if it had occurred on January 1, 2019, the first day of the fiscal year ended December 31, 2019. The unaudited pro forma combined financial information has been presented for informational purposes only. The unaudited pro forma combined financial information does not purport to represent the actual results of operations that Eledon and Anelixis would have achieved had the companies been combined during the periods presented in the unaudited pro forma combined financial statements and is not intended to project the future results of operations that the combined company may achieve after the Merger. The unaudited pro forma combined financial information does not reflect any potential cost savings that may be realized as a result of the Merger and also does not reflect any restructuring or integration-related costs to achieve those potential cost savings. Additionally, the unaudited pro forma combined financial information does not reflect any merger-related expenses incurred by the Company or pre-merger Anelixis , . The unaudited pro forma combined financial information also excludes certain other income and other expense items as part of the acquisition of Anelixis. For the year ended December 31, 2020, a gain of approximately $655,000 due to the forgiveness of Anelixis debt was removed from pro forma other income. Approximately $512,000 and $395,000 was excluded from pro forma other expenses for the years ended December 31, 2020 and 2019, respectively, for interest expenses related to notes that were converted into equity interest in the Company. Year Ended December 31, 2020 2019 Revenue $ 120 $ 500 Operating expenses Research and development 9,489 11,441 General and administrative 8,317 7,585 Restructuring expense 2,282 — Goodwill impairment — 1,867 Total operating expenses 20,088 20,893 Loss from operations (19,968 ) (20,393 ) Other income (expense), net 79 40 Warrant inducement expense (4,829 ) — Loss before provision for income taxes (24,718 ) (20,353 ) Income tax benefit 404 — Net loss and other comprehensive loss $ (24,314 ) $ (20,353 ) Net loss per share, basic and diluted $ (15.44 ) $ (24.49 ) Weighted-average shares outstanding, basic and diluted 1,574,657 831,014 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Sep. 14, 2020 |
Anelixis [Member] | |
Description Of Business [Line Items] | |
Date of acquisition | Sep. 14, 2020 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Dec. 23, 2020USD ($)shares | Dec. 18, 2020$ / sharesshares | Oct. 19, 2020$ / shares | Sep. 14, 2020USD ($)shares | Aug. 08, 2019$ / shares | Dec. 31, 2020USD ($)SegmentReporting_Unitshares | Dec. 31, 2019USD ($)shares | Mar. 31, 2020shares | Dec. 31, 2018USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net loss | $ (22,811,000) | $ (16,011,000) | |||||||
Cash used in operating activities | (15,212,000) | (13,857,000) | |||||||
Cash and cash equivalents | 114,195,000 | 8,791,000 | $ 12,972,000 | ||||||
Working capital | 113,100,000 | ||||||||
Accumulated deficit | (80,393,000) | (57,582,000) | |||||||
Proceeds from issuance of common stock, net | $ 9,000,000 | 9,676,000 | |||||||
Closing bid price per NASDAQ listing notification letter | $ / shares | $ 1 | ||||||||
Consecutive business days for closing bid price of common stock | 30 days | ||||||||
Reverse stock split, description | one-for-eighteen | ||||||||
Number of consecutive trading days required to regain compliance | 10 days | ||||||||
Cash, cash equivalents and restricted cash, maturity period | three months or less | ||||||||
Cash equivalents | $ 9,200,000 | 0 | |||||||
Financial assets transfers level 1 to 2 | 0 | 0 | |||||||
Financial assets transfers level 2 to 1 | 0 | 0 | |||||||
Financial liabilities transfers level 1 to 2 | 0 | 0 | |||||||
Financial liabilities transfers level 2 to 1 | $ 0 | 0 | |||||||
Number of operating business segments | Segment | 1 | ||||||||
Number of reporting units | Reporting_Unit | 1 | ||||||||
Impairment charge | $ 0 | 1,867,000 | |||||||
Impairments of long-lived assets | $ 0 | $ 0 | |||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 3,959,302 | 487,275 | |||||||
Expected life assumption using simplified method | 6 years | ||||||||
Tax benefit | $ 0 | ||||||||
Income tax examination, likelihood of settlement, description | The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. | ||||||||
Income tax examination, likelihood of settlement, percentage | 50.00% | ||||||||
2014 Stock Incentive Plan [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase in number of shares of common stock authorized for issuance | shares | 28,816 | ||||||||
Common stock, number of shares reserved for issuance | shares | 0 | ||||||||
Equity compensation period | 10 years | ||||||||
2014 Employee Stock Purchase Plan [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Increase in number of shares of common stock authorized for issuance | shares | 7,204 | ||||||||
Common stock, number of shares reserved for issuance | shares | 24,077 | ||||||||
2020 Plan [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common stock, number of shares reserved for issuance | shares | 4,860,000 | 4,167,044 | |||||||
Percentage of issued and outstanding shares of common stock | 15.00% | ||||||||
Equity compensation period | 3 years | ||||||||
Stock Options [Member] | Board of Directors [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Expected life assumption using simplified method, description | For stock options granted to the board of directors, the Company determined the expected life assumption using the simplified method as the starting point with an average period of twelve (12) months added to take into account for the extended range of time of 12 to 18 months vested stock options granted to board of directors may be exercised upon termination. | ||||||||
Expected life assumption using simplified method | 12 months | ||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Assets measured at fair value | $ 0 | $ 0 | |||||||
Liabilities measured at fair value | $ 0 | $ 0 | |||||||
Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Expected life assumption using simplified method | 6 years | ||||||||
Maximum [Member] | Stock Options [Member] | Board of Directors [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Vesting period of stock options granted | 12 months | ||||||||
Minimum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Stock price per share | $ / shares | $ 1 | ||||||||
Expected life assumption using simplified method | 4 years | ||||||||
Minimum [Member] | Stock Options [Member] | Board of Directors [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Vesting period of stock options granted | 18 months | ||||||||
Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Proceeds from issuance of common stock, net | $ 9,000,000 | ||||||||
Common Stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Proceeds from issuance of common stock, net | $ 9,000,000 | ||||||||
Common stock, number of shares sold | shares | 1,004,111 | 1,004,111 | |||||||
Common Stock [Member] | Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Common stock, number of shares sold | shares | 1,004,111 | ||||||||
Anelixis [Member] | Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Expected life assumption using simplified method | 5 years 10 months 24 days | ||||||||
Anelixis [Member] | Minimum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Expected life assumption using simplified method | 5 years | ||||||||
Anelixis [Member] | Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Preferred stock shares agreed to sell | shares | 199,112 | ||||||||
Preferred stock shares aggregate purchase price | $ 99,100,000 | ||||||||
Business combination additional commitments in equity financing | $ 9,000,000 | ||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||
Anelixis [Member] | Common Stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Shares of common stock issued upon conversion of each share of preferred stock | shares | 55.5556 | ||||||||
Anelixis [Member] | Common Stock [Member] | Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Shares of common stock issued upon conversion of each share of preferred stock | shares | 55.5556 | ||||||||
Otic Pharma [Member] | Anelixis [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage | 100.00% | ||||||||
Otic Pharma, Inc. [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Ownership percentage | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Common Share Equivalents Included from Computation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (22,811) | $ (16,011) |
Net loss per share, basic and diluted | $ (15.72) | $ (24.42) |
Weighted-average common shares outstanding, basic and diluted | 1,451,432 | 655,526 |
Prepaid Expenses Other Assets_3
Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid insurance | $ 1,157 | $ 734 |
Prepaid clinical | 89 | 102 |
Prepaid other | 41 | 45 |
Insurance receivable | 110 | 245 |
Other current assets | 38 | 54 |
Total prepaid expenses and other current assets | $ 1,435 | $ 1,180 |
Prepaid Expenses Other Assets_4
Prepaid Expenses Other Assets Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued compensation and related expenses | $ 31 | $ 40 |
Accrued clinical | 258 | 437 |
Accrued professional services | 9 | 130 |
Accrued vacation | 67 | 199 |
Accrued costs associated with PIPE financing | 450 | |
Accrued other | 146 | 7 |
Total accrued expenses and other liabilities | $ 961 | $ 813 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Gross Carrying Amount, Beginning balance | $ 1,867,000 | |
Impairments | $ 0 | $ (1,867,000) |
Gross Carrying Amount, Ending balance | 48,648,000 | |
Anelixis [Member] | ||
Goodwill [Line Items] | ||
Acquisition of Anelixis | $ 48,648,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0 | $ 1,867,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2015USD ($)shares | Dec. 31, 2020USD ($)ft²OfficeSpaceMilestone | Dec. 31, 2019USD ($)Milestone | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Other Commitments [Line Items] | |||||||
Rental expense | $ 207,000 | $ 188,000 | |||||
Debt outstanding | 0 | ||||||
Future payment under short term 2021 | $ 33,000 | ||||||
Number of Milestones Achieved | Milestone | 0 | 0 | |||||
Indemnification obligations amount | $ 0 | ||||||
Contingent liabilities | $ 0 | $ 0 | |||||
Research and Development Expenses [Member] | |||||||
Other Commitments [Line Items] | |||||||
Milestone payment | $ 300,000 | ||||||
License Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Sales based milestone payment | $ 36,000,000 | ||||||
Royalty payment period | 8 years | ||||||
Office of Chief Scientist of Israeli Ministry of Economy and Industry [Member] | |||||||
Other Commitments [Line Items] | |||||||
Grants received | $ 537,000 | ||||||
Scientific Development and Research, Inc. and Otodyne, Inc. [Member] | License Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
License fees paid | $ 750,000 | ||||||
Common stock, number of shares sold | shares | 9,780 | ||||||
ALS Therapy Development Foundation, Inc. License Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Fee due for milestones achieved | $ 1,000,000 | $ 1,000,000 | |||||
Common stock issued in lieu of making a cash payment | $ 1,000,000 | $ 1,000,000 | |||||
Number of Milestones Achieved | Milestone | 0 | 0 | |||||
Remaining milestone payments for first licensed product | $ 6,000,000 | ||||||
Annual License Maintenance Fee | 100,000 | ||||||
ALS Therapy Development Foundation, Inc. License Agreement [Member] | Achievement of 500 Million Aggregate Sales [Member] | |||||||
Other Commitments [Line Items] | |||||||
Reaching of aggregate net sales | 500,000,000 | ||||||
Amount of one-time milestone payment | 15,000,000 | ||||||
ALS Therapy Development Foundation, Inc. License Agreement [Member] | Achievement of 1 Billion Aggregate Sales [Member] | |||||||
Other Commitments [Line Items] | |||||||
Reaching of aggregate net sales | 1,000,000,000 | ||||||
Amount of one-time milestone payment | $ 30,000,000 | ||||||
Minimum [Member] | |||||||
Other Commitments [Line Items] | |||||||
Remaining term of office lease | 9 months | ||||||
Minimum [Member] | License Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Sales required to achieve milestone payment | 1,000,000,000 | ||||||
Maximum [Member] | |||||||
Other Commitments [Line Items] | |||||||
Remaining term of office lease | 1 year | ||||||
Maximum [Member] | License Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Development and regulatory milestone payments | $ 42,100,000 | ||||||
Maximum [Member] | ALS Therapy Development Foundation, Inc. License Agreement [Member] | |||||||
Other Commitments [Line Items] | |||||||
Development and regulatory milestone payments | $ 2,500,000 | ||||||
Irvine, California | |||||||
Other Commitments [Line Items] | |||||||
Area of office space | ft² | 5,197 | ||||||
Lease expiration date | Sep. 30, 2021 | ||||||
Burlington, Massachusetts | |||||||
Other Commitments [Line Items] | |||||||
Lease expiration date | Jun. 30, 2021 | ||||||
Number of office spaces operating lease | OfficeSpace | 4 |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 195 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Other Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liability: | |
Operating cash flows from operating lease | $ 188 |
Remaining lease term | |
Operating lease | 9 months |
Discount rate | |
Operating lease | 3.25% |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Payments Under Noncancelable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
2021 | $ 146 | |
Total minimum lease payments | 146 | |
Less imputed interest | (2) | |
Present value of lease liabilities | 144 | |
Less current portion | $ (144) | $ (180) |
Non-current operating lease liability | $ 144 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Losses before income taxes: | ||
U.S. | $ (23,408) | $ (16,174) |
Non-U.S. | 193 | 163 |
Total | $ (23,215) | $ (16,011) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision (Benefit) for Income Taxes (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Deferred: | |
Federal | $ (404) |
Deferred income tax expense (benefit) | (404) |
Provision (benefit) for income taxes | $ (404) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||
Federal Income tax rate | 21.00% | 21.00% |
Net valuation allowance decreased | $ (5,100,000) | |
Research and development tax credit carryforwards for federal and state | $ 705,000 | $ 506,000 |
Period for which cumulative change in ownership annual use net operating loss and research and development credit carryforwards | 3 years | |
Section 382 limitation on net operating losses and R&D credit carryforwards | $ 10,562,000 | |
Accrued interest and penalties associated with uncertain tax positions | 0 | 0 |
Interest or penalties recorded during the year | $ 0 | 0 |
Minimum [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Percentage of cumulative change in ownership | 50.00% | |
Domestic Tax Authority [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Federal net operating loss carryforwards | $ 14,400,000 | 38,600,000 |
Net operating loss carryforward expiration period | 2035 | |
Federal net operating loss carryforwards, not to expiration | $ 13,600,000 | |
Research and development tax credit carryforwards for federal and state | $ 966,000 | 764,000 |
Research and development tax credit carryforwards expiration period | 2035 | |
State and Local Jurisdiction [Member] | ||
Tax Credit Carryforward [Line Items] | ||
State net operating loss carryforwards | $ 6,200,000 | 900,000 |
Research and development tax credit carryforwards for federal and state | $ 562,000 | 264,000 |
Research and development tax credit carryforwards expiration period | 2030 | |
Research and development tax credit carryforwards expiration description | As of December 31, 2020 and 2019, the Company has state research and development credit carryforwards or approximately $562,000 and $264,000, respectively, which will begin expiring in 2030 if not utilized. | |
Israeli Tax Authority [Member] | Foreign Country [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Income tax rate | 23.00% | |
Foreign operating losses carryforwards | $ 7,900,000 | $ 8,000,000 |
California [Member] | State and Local Jurisdiction [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss carryforward expiration period | 2035 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal income tax rate | $ (4,875) | $ (3,362) |
Tax credits | (215) | (207) |
Change in warrant fair market value | 1,014 | |
Stock-based compensation | 252 | 141 |
Goodwill impairment | 392 | |
Permanent items | 627 | 4 |
Section 382 limitation on net operating losses and credits | 10,562 | |
Other | 89 | 38 |
Change in valuation allowance | (7,858) | $ 2,994 |
Provision (benefit) for income taxes | $ (404) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 5,151 | $ 9,947 |
Research and development tax credits | 705 | 506 |
Accruals and reserves | 14 | 43 |
Stock compensation | 802 | 391 |
Depreciation and amortization | 1,905 | 116 |
Lease liability | 30 | 68 |
Total deferred tax assets | 8,607 | 11,071 |
Right-of-use asset | (29) | (66) |
Acquired IPR&D | (6,801) | |
Total deferred tax liabilities | (6,830) | (66) |
Less: valuation allowance | (5,883) | $ (11,005) |
Net deferred tax liabilities | $ (4,106) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits at the beginning of the year | $ 548 | $ 328 |
Additions from tax positions taken in the current year | 233 | 214 |
Additions from tax positions taken in prior years | 531 | 6 |
Reductions from tax positions taken in prior years | (548) | |
Gross unrecognized tax benefits at the end of the year | $ 764 | $ 548 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Dec. 23, 2020USD ($)shares | Dec. 18, 2020$ / sharesshares | Sep. 14, 2020USD ($)shares | Jun. 10, 2020shares | Feb. 13, 2020USD ($)Feature$ / sharesshares | Jan. 15, 2020USD ($)$ / sharesshares | Apr. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Feb. 19, 2020shares | Jul. 23, 2018USD ($) |
Class Of Stock [Line Items] | |||||||||||
Proceeds from issuance of common stock | $ | $ 9,000,000 | $ 9,676,000 | |||||||||
Warrant inducement expense | $ | $ 4,829,000 | ||||||||||
Number of shares exercised | 457,390 | ||||||||||
Warrants available for exercise | 337,822 | 392,815 | |||||||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | (3,796) | ||||||||||
Proceeds from issuance of non-voting preferred stock in connection with PIPE transaction, net | $ | $ 95,226,000 | ||||||||||
Common stock, shares outstanding | 15,160,397 | 720,408 | |||||||||
Anelixis [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares exercised | 0 | ||||||||||
Warrants available for exercise | 55,583.875 | 0 | |||||||||
Assumed and replaced | 55,583.875 | ||||||||||
Anelixis [Member] | Stock Options [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Estimated fair value, assumed and replaced value | $ | $ 2,950,000 | ||||||||||
Series A Warrants [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares exercised | 191,617 | ||||||||||
Warrants available for exercise | 0 | 191,617 | |||||||||
Series B Warrants [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares exercised | 191,617 | ||||||||||
Warrants available for exercise | 0 | 191,617 | |||||||||
Series X1 Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants available for exercise | 55,853.875 | ||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||||
Series X1 Preferred Stock [Member] | Anelixis [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Issuance of common stock | 140,026 | ||||||||||
Series X1 Preferred Stock [Member] | Anelixis [Member] | Stock Options [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Estimated fair value, assumed and replaced | 1,346,398 | ||||||||||
Estimated fair value, assumed and replaced value | $ | $ 6,000,000 | ||||||||||
Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Conversion of stock, shares converted | 3,285 | ||||||||||
Number of embedded features within preferred stock | Feature | 2 | ||||||||||
Number of common stock, shares issued upon conversion | 511 | ||||||||||
Preferred shares outstanding | 0 | 0 | |||||||||
Securities Purchase Agreement [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock shares agreed to sell | 191,617 | ||||||||||
Common stock shares agreed to sell, gross proceeds value | $ | $ 10,700,000 | ||||||||||
Private Placement [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares exercised | 64,171 | ||||||||||
Warrants available for exercise | 319,064 | 0 | |||||||||
Private Placement [Member] | Series A Warrants [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrant exercise price per share | $ / shares | $ 72 | ||||||||||
Warrants exercisable term | 18 months | ||||||||||
Private Placement [Member] | Series B Warrants [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrant exercise price per share | $ / shares | $ 72 | ||||||||||
Warrants exercisable term | 5 years | ||||||||||
Placement Agent [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Number of shares exercised | 0 | ||||||||||
Warrants available for exercise | 9,581 | 9,581 | |||||||||
Placement Agent [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrant exercise price per share | $ / shares | $ 69.66 | ||||||||||
Percentage of warrants to issue shares of common stock | 5.00% | ||||||||||
Warrants offering price maturity date | Apr. 30, 2024 | ||||||||||
Warrant [Member] | Anelixis [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Estimated fair value, assumed and replaced value | $ | $ 12,944,000 | ||||||||||
Warrant [Member] | Series X1 Preferred Stock [Member] | Anelixis [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Assumed and replaced | 55,583.875 | ||||||||||
Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock number of shares issued | 1,004,111 | 1,004,111 | |||||||||
Proceeds from issuance of common stock | $ | $ 9,000,000 | ||||||||||
Issuance of common stock in connection with exercise of warrants, net of issuance costs, Shares | 421,772 | ||||||||||
Warrants available for exercise | 337,822 | ||||||||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | 210,888 | ||||||||||
Common Stock [Member] | Anelixis [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Issuance of common stock | 175,488 | ||||||||||
Shares of common stock issued upon conversion of each share of preferred stock | 55.5556 | ||||||||||
Common Stock [Member] | Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | 182,500 | ||||||||||
Common Stock [Member] | Private Placement [Member] | Series A Warrants [Member] | Maximum [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants to issue shares of common stock | 191,617 | ||||||||||
Common Stock [Member] | Private Placement [Member] | Series B Warrants [Member] | Maximum [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants to issue shares of common stock | 191,617 | ||||||||||
Common Stock [Member] | Placement Agent [Member] | Maximum [Member] | 2019 Equity Offering [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants to issue shares of common stock | 9,580 | ||||||||||
Warrant Exercise Agreements [Member] | Warrants [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock shares agreed to sell, gross proceeds value | $ | $ 5,800,000 | ||||||||||
Warrants to issue shares of common stock | 383,234 | ||||||||||
Warrant reduced exercise price per share | $ / shares | $ 12.87 | ||||||||||
Warrant additional exercise price per share | $ / shares | 2.25 | ||||||||||
Warrant Exercise Agreements [Member] | Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock shares agreed to sell, gross proceeds value | $ | $ 188,773 | ||||||||||
Warrants to issue shares of common stock | 64,171 | ||||||||||
Warrant exercise price per share | $ / shares | $ 12.96 | ||||||||||
Warrants exercisable term | 5 years 6 months | ||||||||||
Issuance of common stock in connection with exercise of warrants, net of issuance costs, Shares | 28,553 | ||||||||||
Number of shares exercised | 9,985 | ||||||||||
Warrant Exercise Agreements [Member] | Common Stock [Member] | Maximum [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants to issue shares of common stock | 383,235 | ||||||||||
Warrant Exercise Agreements [Member] | Common Stock [Member] | Placement Agent [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrant exercise price per share | $ / shares | $ 18.90 | ||||||||||
Percentage of warrants to issue shares of common stock | 5.00% | ||||||||||
Warrant Exercise Agreements [Member] | Common Stock [Member] | Placement Agent [Member] | Maximum [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants to issue shares of common stock | 19,162 | ||||||||||
Stock Purchase Agreement [Member] | Series X1 Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock number of shares issued | 1,004,111 | ||||||||||
Proceeds from issuance of common stock | $ | $ 9,000,000 | ||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||||
Conversion of stock, shares converted | 231,068 | ||||||||||
Preferred shares outstanding | 108,070 | ||||||||||
Issuance of preferred stock | 199,112 | ||||||||||
Preferred stock shares aggregate purchase price | 99,100,000 | ||||||||||
Proceeds from issuance of non-voting preferred stock in connection with PIPE transaction, net | $ | $ 95,200,000 | ||||||||||
Business combination additional commitments in equity financing | $ | $ 9,000,000 | ||||||||||
Stock Purchase Agreement [Member] | Common Stock [Member] | Series X1 Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares of common stock issued upon conversion of each share of preferred stock | 55.5556 | ||||||||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | 12,837,056 | ||||||||||
Stock Purchase Agreement [Member] | Common Stock [Member] | Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares of common stock issued upon conversion of each share of preferred stock | 55.5556 | ||||||||||
Warrant Exchange Agreement and Exchange Agreements [Member] | Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Preferred shares outstanding | 6,203.98 | ||||||||||
Warrant Exchange Agreement and Exchange Agreements [Member] | Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock, shares outstanding | 14,306,614 | ||||||||||
Warrant Exchange Agreement and Exchange Agreements [Member] | Common Stock [Member] | Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares of common stock issued upon conversion of each share of preferred stock | 344,663 | ||||||||||
Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Equity distribution agreement maximum value of common shares issuable | $ | $ 9,800,000 | ||||||||||
Common stock number of shares issued | 0 | ||||||||||
Piper Jaffray & Co. [Member] | Equity Distribution Agreement [Member] | Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock number of shares issued | 1,401 | ||||||||||
Proceeds from issuance of common stock | $ | $ 110,000 | ||||||||||
Exchanging Stockholders [Member] | Exchange Agreement [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Reimbursement of expenses | $ | $ 25,000 | ||||||||||
Conversion of stock blocker provision percentage | 9.99% | ||||||||||
Exchanging Stockholders [Member] | Exchange Agreement [Member] | Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | ||||||||||
Conversion of stock, shares issued | 3,796 | ||||||||||
Number of designated preferred stock shares | 10,000 | ||||||||||
Exchanging Stockholders [Member] | Exchange Agreement [Member] | Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Conversion of stock, shares converted | 210,888 | ||||||||||
Shares of common stock issued upon conversion of each share of preferred stock | 55.5556 | 55.5556 | |||||||||
BVF Exchanging Stockholders, Series X Exchanging Stockholders [Member] | Series X Exchange Agreement [Member] | Series X Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Conversion of stock, shares issued | 6,203.98 | ||||||||||
BVF Exchanging Stockholders, Series X Exchanging Stockholders [Member] | Series X Exchange Agreement [Member] | Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Conversion of stock, shares converted | 344,666 | ||||||||||
BVF Exchanging Stockholders | Warrant Exchange Agreement and Exchange Agreements [Member] | Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Warrants to issue shares of common stock | 509,117 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Warrant Activity (Detail) | 12 Months Ended |
Dec. 31, 2020shares | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 392,815 |
Issued | 402,397 |
Exercised | (457,390) |
Cancelled/Expired | 0 |
Ending Balance | 337,822 |
Anelixis [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 0 |
Assumed and replaced | 55,583.875 |
Exercised | 0 |
Cancelled/Expired | 0 |
Ending Balance | 55,583.875 |
Registered Direct Warrants, Series A [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 191,617 |
Issued | 0 |
Exercised | (191,617) |
Cancelled/Expired | 0 |
Ending Balance | 0 |
Registered Direct Warrants, Series B [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 191,617 |
Issued | 0 |
Exercised | (191,617) |
Cancelled/Expired | 0 |
Ending Balance | 0 |
Registered Direct Warrants, Placement Agent [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 9,581 |
Issued | 0 |
Exercised | 0 |
Cancelled/Expired | 0 |
Ending Balance | 9,581 |
Private Placement Warrants [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 0 |
Issued | 383,235 |
Exercised | (64,171) |
Cancelled/Expired | 0 |
Ending Balance | 319,064 |
Private Placement Warrants, Placement Agent [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 0 |
Issued | 19,162 |
Exercised | (9,985) |
Cancelled/Expired | 0 |
Ending Balance | 9,177 |
Warrants Assumed and Replaced in Acquisition [Member] | Anelixis [Member] | |
Class Of Warrant Or Right [Line Items] | |
Beginning Balance | 0 |
Assumed and replaced | 55,583.875 |
Exercised | 0 |
Cancelled/Expired | 0 |
Ending Balance | 55,583.875 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Plan$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock compensation plans | Plan | 3 | ||
Common stock reverse stock split ratio | 0.05555555555 | ||
Common stock reverse stock split description | one-for-eighteen | ||
Number of options outstanding | 3,621,479 | 91,403 | 49,798 |
Range of exercise prices | $ / shares | $ 10.63 | $ 139.96 | $ 233.45 |
Aggregate intrinsic value of options exercised | $ | $ 0 | $ 0 | |
Unrecognized stock-based compensation expense | $ | $ 17,100,000 | ||
Unrecognized stock-based compensation expense, recognized over estimated weighted average period | 2 years 8 months 12 days | ||
Stock-based compensation expense | $ | $ 3,171,000 | $ 1,308,000 | |
PRSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 0 | ||
Number of shares vested | 3,059 | ||
Value of shares vested | $ | $ 205,000 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of exercise prices | $ / shares | $ 0.96 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of exercise prices | $ / shares | $ 2,147 | ||
2020 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized for issuance | 4,860,000 | ||
Number of options outstanding | 692,956 | ||
Options granted, expiration period | 10 years | ||
Stock awards available for grant | 4,167,044 | ||
Stock awards available for grant | 4,167,044 | ||
Common stock, number of shares reserved for issuance | 4,860,000 | ||
2014 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized for issuance | 0 | ||
Number of options outstanding | 126,974 | ||
Options granted, expiration period | 10 years | ||
Common stock, number of shares reserved for issuance | 0 | ||
2007 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding | 1,151 | ||
Options granted, expiration period | 10 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Issuable Under Options | |||
Outstanding, beginning balance | 91,403 | 49,798 | |
Granted | 2,191,462 | 42,244 | |
Options assumed in connection with acquisition | 1,346,398 | ||
Forfeited / Canceled | (7,784) | (639) | |
Outstanding, ending balance | 3,621,479 | 91,403 | 49,798 |
Options vested and expected to vest as of December 31, 2020 | 3,621,479 | ||
Options exercisable as of December 31, 2020 | 878,033 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance | $ 139.96 | $ 233.45 | |
Granted | 9.15 | 28.87 | |
Options assumed in connection with acquisition | 7.58 | ||
Forfeited / Canceled | 586.16 | 79.38 | |
Outstanding, ending balance | 10.63 | $ 139.96 | $ 233.45 |
Options vested and expected to vest as of December 31, 2020 | 15.21 | ||
Options exercisable as of December 31, 2020 | $ 16 | ||
Weighted Average Remaining Contractual Term (In years) | |||
Outstanding, balance | 8 years 10 months 24 days | 8 years 2 months 12 days | 8 years 1 month 6 days |
Options vested and expected to vest as of December 31, 2020 | 8 years 10 months 24 days | ||
Options exercisable as of December 31, 2020 | 8 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value, Outstanding | $ 23,938,701 | ||
Options vested and expected to vest as of December 31, 2020 | 23,938,701 | ||
Options exercisable as of December 31, 2020 | $ 6,297,510 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of PRSU Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Issuable Under PRSUs | |||
Options exercisable as of December 31, 2020 | 878,033 | ||
Weighted Average Exercise Price | |||
Options exercisable as of December 31, 2020 | $ 16 | ||
Aggregate Intrinsic Value | |||
Options exercisable as of December 31, 2020 | $ 6,297,510 | ||
PRSUs [Member] | |||
Shares Issuable Under PRSUs | |||
Outstanding, beginning balance | 3,056 | 4,358 | |
Granted | 3,056 | ||
PRSUs Vested | (3,056) | (4,358) | |
Outstanding, ending balance | 3,056 | 4,358 | |
Weighted Average Exercise Price | |||
Outstanding, beginning balance | $ 66.96 | $ 86.94 | |
Granted | 66.96 | ||
PRSUs Vested | $ 66.96 | 86.94 | |
Outstanding, ending balance | $ 66.96 | $ 86.94 | |
Weighted Average Remaining Contractual Term (In years) | |||
Outstanding as of January 1, 2019 | 9 years 2 months 12 days | 9 years 2 months 12 days |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Stock-Based Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 3,171 | $ 1,308 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,254 | 343 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 1,917 | $ 965 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Assumptions Used in Black-Scholes Option Pricing Model to Determine the Fair Value of Stock Options Granted (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Expected stock price volatility, minimum | 77.00% | 74.00% |
Expected stock price volatility, maximum | 107.00% | 87.00% |
Risk-free interest rate, minimum | 0.00% | 1.00% |
Risk-free interest rate, maximum | 1.00% | 3.00% |
Expected life of option (in years) | 6 years | |
Estimated dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Expected life of option (in years) | 4 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Expected life of option (in years) | 6 years |
Restructuring Expense - Additio
Restructuring Expense - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring And Related Activities [Abstract] | |
Expenses related to workforce reduction | $ 2,282 |
Restructuring Expense - Schedul
Restructuring Expense - Schedule of Total Liability For Restructuring Expenses and Their Utilization (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring And Related Activities [Abstract] | |
Expenses related to workforce reduction | $ 2,282 |
Paid | (2,270) |
Accrued restructuring charges at end of period | $ 12 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) - USD ($) | Dec. 23, 2020 | Dec. 18, 2020 | Sep. 14, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||
Goodwill | $ 48,648,000 | $ 48,648,000 | ||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | (3,796) | |||||
Proceeds from issuance of common stock | $ 9,000,000 | $ 9,676,000 | ||||
Net loss and other comprehensive loss | 24,314,000 | $ 20,353,000 | ||||
General and Administrative [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition costs | $ 2,900,000 | |||||
Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from issuance of common stock | $ 9,000,000 | |||||
Series X1 Preferred Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | 231,068 | |||||
Preferred stock, shares outstanding | 108,070 | 108,070 | 0 | |||
Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares of common stock issued upon conversion of each share of preferred stock | 12,837,056 | |||||
Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Issuance of common stock in connection with conversion of Series X preferred stock, Shares | 210,888 | |||||
Shares of common stock sold | 1,004,111 | 1,004,111 | ||||
Proceeds from issuance of common stock | $ 9,000,000 | |||||
Common Stock [Member] | Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares of common stock sold | 1,004,111 | |||||
Anelixis [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, date of acquisition | Sep. 14, 2020 | |||||
Common stock, par value | $ 0.001 | |||||
Goodwill | $ 48,649,000 | |||||
Business acquisition costs | $ 3,400,000 | |||||
Estimated fair value related to clinical development program | 32,386,000 | |||||
Gain from forgiveness of debt excluded from pro forma combined financial information | 655,000 | |||||
Other expenses excluded from pro forma combined financial information | $ 512,000 | $ 395,000 | ||||
Net loss and other comprehensive loss | $ 2,500,000 | |||||
Anelixis [Member] | In-Process Research and Development [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Estimated fair value related to clinical development program | $ 32,400,000 | |||||
Anelixis [Member] | Series X1 Preferred Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares Issued to stockholders of acquiree | 140,026 | |||||
Anelixis [Member] | Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Preferred stock shares agreed to sell | 199,112 | |||||
Preferred stock shares aggregate purchase price | $ 99,100,000 | |||||
Business combination additional commitments in equity financing | $ 9,000,000 | |||||
Preferred stock, par value | $ 0.001 | |||||
Anelixis [Member] | Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares Issued to stockholders of acquiree | 175,488 | |||||
Shares of common stock issued upon conversion of each share of preferred stock | 55.5556 | |||||
Anelixis [Member] | Common Stock [Member] | Series X1 Preferred Stock [Member] | Stock Purchase Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares of common stock issued upon conversion of each share of preferred stock | 55.5556 |
Business Acquisition - Summary
Business Acquisition - Summary of Fair Value of Purchase Price Consideration (Detail) - Anelixis [Member] $ in Thousands | Sep. 14, 2020USD ($) |
Fair value of purchase consideration: | |
Total purchase consideration | $ 86,811 |
Stock Options [Member] | |
Fair value of purchase consideration: | |
Awards assumed | 2,950 |
Common Stock [Member] | |
Fair value of purchase consideration: | |
Awards assumed | 1,194 |
Preferred Stock [Member] | |
Fair value of purchase consideration: | |
Awards assumed | 69,723 |
Warrant [Member] | |
Fair value of purchase consideration: | |
Awards assumed | $ 12,944 |
Business Acquisition - Summar_2
Business Acquisition - Summary of Fair Value of Purchase Price Consideration (Parenthetical) (Detail) - $ / shares | Sep. 14, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Expected stock price volatility, minimum | 77.00% | 74.00% | |
Expected stock price volatility, maximum | 107.00% | 87.00% | |
Expected life of option (in years) | 6 years | ||
Risk-free interest rate, minimum | 0.00% | 1.00% | |
Risk-free interest rate, maximum | 1.00% | 3.00% | |
Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Expected life of option (in years) | 4 years | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Expected life of option (in years) | 6 years | ||
Anelixis [Member] | |||
Business Acquisition [Line Items] | |||
Expected stock price volatility, minimum | 82.00% | ||
Expected stock price volatility, maximum | 83.00% | ||
Risk-free interest rate, minimum | 0.27% | ||
Risk-free interest rate, maximum | 0.45% | ||
Anelixis [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Expected life of option (in years) | 5 years | ||
Anelixis [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Expected life of option (in years) | 5 years 10 months 24 days | ||
Common Stock [Member] | Anelixis [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, shares issued | 175,488 | ||
Business acquisition, closing price per share | $ 6.80 |
Business Acquisition - Summar_3
Business Acquisition - Summary of Preliminary Estimate of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 14, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 48,648 | |
Anelixis [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | $ 11,035 | |
Prepaid expenses and other current assets | 26 | |
Other non-current assets | 11 | |
Accounts payable | (580) | |
Accrued expenses and other liabilities | (206) | |
Deferred tax liability | (4,510) | |
Net identifiable assets acquired | 5,776 | |
Goodwill | 48,649 | |
Identifiable intangible assets | 32,386 | |
Net assets acquired | $ 86,811 |
Business Acquisition - Schedule
Business Acquisition - Schedule of Unaudited Pro Forma Combined Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Revenue | $ 120 | $ 500 |
Operating expenses | ||
Research and development | 9,489 | 11,441 |
General and administrative | 8,317 | 7,585 |
Restructuring expense | 2,282 | |
Goodwill impairment | 1,867 | |
Total operating expenses | 20,088 | 20,893 |
Loss from operations | (19,968) | (20,393) |
Other income (expense), net | 79 | 40 |
Warrant inducement expense | (4,829) | |
Loss before provision for income taxes | (24,718) | (20,353) |
Income tax benefit | 404 | |
Net loss and other comprehensive loss | $ (24,314) | $ (20,353) |
Net loss per share, basic and diluted | $ (15.44) | $ (24.49) |
Weighted-average shares outstanding, basic and diluted | 1,574,657 | 831,014 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Mar. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Proceeds from issuance of common stock | $ 9,000,000 | $ 9,676,000 | |
Subsequent Event [Member] | Open Market Sale Agreement [Member] | Jefferies LLC [Member] | |||
Subsequent Event [Line Items] | |||
Common stock, par value | $ 0.001 | ||
Percentage of gross proceeds of shares of common stock | 3.00% | ||
Subsequent Event [Member] | Open Market Sale Agreement [Member] | Jefferies LLC [Member] | Maximum [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from issuance of common stock | $ 75,000,000 |