Neurogene (NGNE) 10-Q 6 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 04, 2020
Cover [Abstract]
Document Type	10-Q
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	Neoleukin Therapeutics, Inc.
Trading Symbol	NLTX
Entity Central Index Key	0001404644
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, par value $0.000001
Entity Incorporation, State or Country Code	DE
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		38,485,042
Entity File Number	001-36327
Entity Tax Identification Number	98-0542593
Entity Address, Address Line One	360-1616 Eastlake Avenue East
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98102
City Area Code	(206)
Local Phone Number	732-2133
Document Quarterly Report	true
Document Transition Report	false

Condensed consolidated balance

Condensed consolidated balance sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 139,417	$ 143,093
Receivables, prepayments and deposits	236	503
Total current assets	139,653	143,596
Property and equipment, net	2,050	2,060
Operating lease right-of-use assets (Note 4)	10,300	770
Intangible asset, net	513	567
Long-term other assets	535	30
Total assets	153,051	147,023
Current liabilities:
Accounts payable and other liabilities	5,003	4,125
Operating lease liabilities (Note 4)	541	556
Finance lease liabilities (Note 4)	59	62
Total current liabilities	5,603	4,743
Non-current operating lease liabilities (Note 4)	10,182	447
Non-current finance lease liabilities (Note 4)	146	146
Total liabilities	15,931	5,336
Share capital: (Note 5)
Common stock - $0.000001 par value - authorized, 100,000,000 as of March 31, 2020 and December 31, 2019; issued and outstanding, 38,386,160 as of March 31, 2020 and 37,996,849 as of December 31, 2019.
Preferred stock - $0.000001 par value - authorized, 5,000,000 as of March 31, 2020 and December 31, 2019; nil issued and outstanding as of March 31, 2020 and December 31, 2019.
Additional paid-in capital	445,291	441,216
Accumulated deficit	(308,171)	(299,529)
Total shareholders' equity	137,120	141,687
Total liabilities and shareholders' equity	$ 153,051	$ 147,023

Condensed Consolidated balanc_2

Condensed Consolidated balance sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	38,386,160	37,996,849
Common stock, shares outstanding	38,386,160	37,996,849
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed consolidated statemen

Condensed consolidated statements of operations and comprehensive loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating expenses
Research and development (Note 6)	$ 5,498	$ 104
General and administrative (Note 6)	3,573	2,555
Total operating expenses	9,071	2,659
Other income, net (Note 7)	429	451
Net loss	$ (8,642)	$ (2,208)
Net loss per common stock - basic and diluted (Note 8)	$ (0.18)	$ (0.09)
Basic and diluted weighted average number of common stock outstanding (Note 8)	49,168,451	23,537,368
Comprehensive loss:
Net loss	$ (8,642)	$ (2,208)
Comprehensive loss	$ (8,642)	$ (2,208)

Condensed consolidated statem_2

Condensed consolidated statements of cash flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities
Net loss	$ (8,642)	$ (2,208)
Non-cash items:
Stock-based compensation (Note 5(d))	683	1,078
Depreciation and amortization	171	41
Amortization of operating lease right-of-use assets	528	21
Unrealized foreign exchange (gain) loss	(14)	12
Changes in operating assets and liabilities:
Receivable, prepayments and deposits	266	(403)
Accounts payable and other liabilities	568	(1,297)
Net cash used in operating activities	(6,440)	(2,756)
Investing activities
Purchase of property and equipment	(107)
Net cash used in investing activities	(107)
Financing activities
Proceeds from exercise of stock options	3,392
Payment on finance lease obligations	(2)	(2)
Net cash provided by (used in) financing activities	3,390	(2)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11)	(1)
Net change in cash, cash equivalents and restricted cash during the period	(3,168)	(2,759)
Cash, cash equivalents and restricted cash, beginning of period	143,093	76,928
Cash, cash equivalents and restricted cash, end of period (Note 3)	139,925	74,169
Supplemental disclosure of cash flow information:
Interest received	$ 435	$ 443

Condensed consolidated statem_3

Condensed consolidated statements of stockholders' equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balances at Dec. 31, 2018	$ 72,672		$ 302,759	$ (230,087)
Balances, shares at Dec. 31, 2018		23,537,368
Stock-based compensation (Note 5(d))	1,078		1,078
Net loss	(2,208)			(2,208)
Balances at Mar. 31, 2019	71,542		303,837	(232,295)
Balances, shares at Mar. 31, 2019		23,537,368
Balances at Dec. 31, 2019	141,687		441,216	(299,529)
Balances, shares at Dec. 31, 2019		37,996,849
Options exercised	$ 3,392		3,392
Options exercised, shares	376,311	376,311
Restricted stock units vested, shares		13,000
Stock-based compensation (Note 5(d))	$ 683		683
Net loss	(8,642)			(8,642)
Balances at Mar. 31, 2020	$ 137,120		$ 445,291	$ (308,171)
Balances, shares at Mar. 31, 2020		38,386,160

Nature of operations

Nature of operations	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of operations	1. Nature of operations Neoleukin Therapeutics, Inc. (“Neoleukin” or “the Company”) is a biopharmaceutical company creating next generation immunotherapies for cancer, inflammation and autoimmunity using de novo protein design technology. Neoleukin uses sophisticated computational methods to design proteins that demonstrate specific pharmaceutical properties that provide potentially superior therapeutic benefit over native proteins. The Company commenced operations in Canada in December 2003. Aquinox Pharmaceuticals (Canada) Inc., a corporation formed under the Canada Business Corporations Act, is a wholly owned subsidiary of Aquinox Pharmaceuticals, Inc., a Delaware corporation formed in May 2007 (“Aquinox”). On August 8, 2019, upon the merger of Aquinox with Neoleukin Therapeutics, Inc. (“Former Neoleukin”) pursuant to an Agreement and Plan of Merger dated August 5, 2019, Former Neoleukin merged with a wholly owned subsidiary of Aquinox. Upon completion of the transaction, Aquinox was renamed Neoleukin Therapeutics, Inc. The Company’s head office is in Seattle, Washington.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of significant accounting policies	2. Summary of significant accounting policies (a) Basis of presentation The accompanying unaudited condensed consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 12, 2020. In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments (including reclassifications and normal recurring adjustments) necessary to present fairly the financial position as of March 31, 2020, and results of operations and cash flows for all periods presented. The interim results presented are not necessarily indicative of results that can be expected for a full year. (b) Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring estimates include valuation and recognition of stock-based compensation, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical and other accruals. Actual results could differ from those estimates. (c) Leases At contract inception, the Company determines if the contract is a lease or contains a lease. Operating leases are recorded as operating lease right-of-use assets, operating lease liabilities and non-current operating lease liabilities. Finance leases are recorded as finance lease right-of-use assets, finance lease liabilities and non-current finance lease liabilities. Right-of-use assets and lease liabilities are recognized on the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of the lease payments, the Company utilizes its estimated incremental borrowing rate based on information available at the lease commencement date as the rate implicit in the lease is not readily determinable. The right-of-use assets are recorded net of any lease incentives received. Variable lease cost primarily includes building operating expenses as charged to the Company by its landlords. For leases of office space with a lease term of less than 12 months and which do not include an option to purchase the underlying asset, the Company has elected to recognize the lease payments in the statement of operations on a straight-line basis over the lease term. For leases of office space, the Company has elected to not separate the lease components from the non-lease components. (d) Accounting for stock-based compensation The Company has issued stock options and restricted stock units (“RSUs”). The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award will be recognized over the period during which services are provided in exchange for the award, generally the vesting period. The Company accounts for forfeitures as they occur. All share-based payments to employees and consultants are recognized in the consolidated financial statements based upon their respective grant date fair values. The Company estimates the fair value of options granted using the Black-Scholes option pricing model. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. The expected volatility assumption is based on industry peer information and the Company expects to continue to do so until it has adequate historical volatility of its common stock. Additionally, because the Company has no significant history to calculate the expected term, the simplified method is used to measure the term. The fair value of each RSU is measured using the closing price of the Company’s common stock on the date of grant. (e) Net loss per common stock Basic net loss per common stock is computed by dividing net loss by the weighted-average number of common stock and pre-funded warrants outstanding during the period. The pre-funded warrants are included in the computation of basic and diluted net loss per common stock as the warrants are fully vested and exercisable at any time and for a nominal cash consideration. Diluted net loss per common stock is determined using the weighted-average number of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and restricted stock units. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. (f) Fair value of financial instruments The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, receivables, accounts payable and other liabilities, approximate their fair values because of their nature and/or short maturities. At March 31, 2020, and December 31, 2019, the Company had $118.2 million and $40.0 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at fair value, which is the closing price reported by the fund sponsor from an actively traded exchange. (g) Recently issued and recently adopted accounting standards In December 2019, the FASB issued ASU 2019-12 “Simplifying the Accounting for Income Taxes.” The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by ASC Topic 740 - Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently assessing the impact of ASU 2019-12 on its financial statements.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	3 Months Ended
	Mar. 31, 2020
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted Cash	3. Cash, cash equivalents and restricted cash Restricted cash, included in long-term other assets in the condensed consolidated balance sheets, includes a $0.5 million cash deposit the Company maintains with its bank as collateral for the irrevocable letter of credit issued to its landlord under the New Seattle Lease (as defined in Note 4). In the condensed consolidated statements of cash flows, the restricted cash balance of $0.5 million (December 31, 2019 – nil) is included with cash of $21.2 million (December 31, 2019 – $103.1 million) and cash equivalents of $118.2 million (December 31, 2019 – $40.0 million) for presentation purposes.

Lease liabilities

Lease liabilities	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Lease liabilities	4. Lease liabilities The Company has a lease agreement for approximately 6,272 square feet of office space in Seattle, Washington, for the Company’s principal executive offices, a laboratory for research and development and related uses. The lease became effective on September 23, 2019, commenced on October 1, 2019 and expires on October 31, 2021, unless terminated earlier. The Company is also responsible for the payment of additional rent to cover the Company’s share of the annual operating and tax expenses and utilities costs for the building. The Company has a new lease agreement for approximately 33,300 square feet of office space in Seattle, Washington, for the Company’s future principal executive offices, a laboratory for research and development and related uses (the “New Seattle Lease”). The lease commenced on January 15, 2020 and rent obligations are scheduled to commence on December 1, 2020. The lease expires on December 1, 2028, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of $8.0 million, which is included in the base rent, and an optional additional tenant improvement allowance with a maximum amount of $1.5 million, which will result, if elected, in additional rent amortized over the term of the lease. The Company will also be responsible for the payment of additional rent to cover the Company’s share of the annual operating and tax expenses and utilities costs for the building. In January 2020, the Company issued an irrevocable letter of credit in the amount of $0.5 million for the security deposit, in accordance with the terms of the lease. The Company has a lease agreement for approximately 10,946 square feet of office space in Vancouver, Canada, which commenced on November 1, 2016 and expires October 31, 2021, with the option to extend the lease to October 31, 2026. In addition to the basic rent, the Company is obligated to pay for taxes, operating costs, utilities, additional services and other amounts. The Company has a finance lease liability for laboratory equipment which expires June 2023. The Company is obligated to make five annual payments for an aggregate purchase price of $0.3 million. All rights and title will transfer to the Company upon receipt of the final payment. As of March 31, 2020, and December 31, 2019, the Company’s operating lease right-of-use assets were $10.3 million and $0.8 million, respectively. The Company’s finance lease right-of-use assets were $0.3 million as of March 31, 2020 and December 31, 2019. The components of the lease expense were as follows: THREE MONTHS ENDED (in thousands) 2020 2019 Finance lease cost Amortization of right-of-use assets $ 12 $ — Interest on lease liabilities — — Operating lease cost 528 31 Short term lease cost 28 — Variable lease cost 74 48 Total net lease cost $ 642 $ 79 Supplemental balance sheet information related to leases is as follows: THREE MONTHS ENDED 2020 2019 Weighted average remaining lease term – finance leases 3.12 years 1.42 years Weighted average remaining lease term – operating leases 8.11 years 2.58 years Weighted average discount rate – finance leases 7.11% 6.94% Weighted average discount rate – operating leases 12.63% 6.00% Supplemental cash flow information related to leases was as follows: THREE MONTHS ENDED (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 310 $ 41 Cash paid for amounts included in the measurement of finance lease liabilities 2 2 Operating lease liabilities arising from obtaining right-of-use assets 9,614 515 The calculation of the present value of the operating lease payments for the Vancouver lease and the lease for the future principal offices and laboratory space did not include the options to extend the lease. At March 31, 2020, the future payments under the Company’s operating and finance lease liabilities were as follows: (in thousands) FINANCE OPERATING December 31, 2020 (remaining nine months) $ 62 $ 414 December 31, 2021 60 2,502 December 31, 2022 60 2,086 December 31, 2023 60 2,139 December 31, 2024 — 2,192 Thereafter — 9,124 Total undiscounted lease payments 242 18,457 Less: imputed interest (37 ) (7,734 ) Total lease liabilities 205 10,723 Less: current portion (59 ) (541 ) Non-current lease liabilities – March 31, 2020 $ 146 $ 10,182

Stockholders' equity

Stockholders' equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' equity	5. Stockholders’ equity (a) Share capital Neoleukin is authorized to issue two classes of stock, common and preferred. The total number of shares Neoleukin is authorized to issue is 105,000,000 shares, comprised of 100,000,000 common stock and 5,000,000 preferred stock, both with a par value of $0.000001 per share. As of March 31, 2020 and December 31, 2019, the total number of shares of common stock issued and outstanding was 38,386,160 and 37,996,849, respectively. As of March 31, 2020 and December 31, 2019, the total number of shares of preferred stock issued or outstanding was nil. (b) Pre-funded common stock warrants On December 17, 2019, Neoleukin entered into an exchange agreement (the “Exchange Agreement”) with certain stockholders, pursuant to which the Company exchanged an aggregate of 10,925,481 shares of common stock held by the stockholders for pre-funded warrants (the “Exchange Warrants”) to purchase an aggregate of 10,925,481 shares of common stock (subject to adjustment in the event of stock splits, recapitalizations and other similar events affecting common stock), with an exercise price of $0.000001 per share. The Exchange Warrants may be exercised at any time after the date of issuance, except that the Exchange Warrants cannot be exercised by the stockholders if, after giving effect thereto, the stockholders would beneficially own more than 9.99% of the outstanding common stock, subject to certain exceptions. The holders of the Exchange Warrants will not have the right to vote on any matter except to the extent required by Delaware law. As the Exchange Warrants meet the conditions for equity classification, the proceeds previously received for the shares of common stock will remain in additional paid-in capital. Upon the exercise of the warrants the proceeds received along with the exercise price will be recorded in common stock. (c) Stock option plan The Company’s 2014 Equity Incentive Plan (“2014 Plan”) became effective in March 2014. The 2014 Plan is the successor to and continuation of the Joint Canadian Stock Option Plan (the “2006 Plan”). No further grants will be made under the 2006 Plan. The 2014 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of equity awards to employees, directors, and consultants. As at March 31, 2020, the maximum number of shares of common stock that may be issued under the 2014 Plan was 10,273,506 shares. Additionally, the number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year for a period of up to 10 years, beginning on January 1, 2015 and ending on and including January 1, 2024, by 4% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors. Stock option transactions and the number of stock options outstanding are summarized below: NUMBER OF WEIGHTED WEIGHTED AGGREGATE Outstanding at December 31, 2019 5,840,538 $ 5.11 7.72 $ 45,037 Options granted 290,700 7.63 Options exercised (376,311 ) 9.03 Options forfeited (410,000 ) 16.91 Outstanding at March 31, 2020 5,344,927 $ 4.06 8.70 $ 40,431 Exercisable as of March 31, 2020 1,040,512 $ 7.28 5.56 $ 5,462 During the three months ended March 31, 2020, the Company granted stock options to purchase 290,700 shares of common stock to employees. The stock options granted to employees have an exercise price per share ranging from $6.44 to $12.44 and vest 25% one year after the beginning of the vesting period and thereafter ratably each month over the following thirty-six months. All stock options under the 2014 Plan are subject to a 10-year expiration period. During the three months ended March 31, 2020, 376,311 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $1.3 million. Restricted stock units Restricted stock unit transactions and the number of unvested stock restricted stock units are summarized below: NUMBER OF WEIGHTED Non-vested at December 31, 2019 72,000 $ 3.47 Restricted stock units granted 75,000 6.44 Restricted stock units vested (13,000 ) 3.47 Non-vested at March 31, 2020 134,000 $ 5.13 During the three months ended March 31, 2020, the Company granted 75,000 restricted stock units to employees with a grant date fair value per share of $6.44. The restricted stock units granted vest one-third on the first anniversary of the grant date, one-third on the second anniversary of the grant date and one-third on the third anniversary of the grant date. There is no expiration period for the restricted stock units under the 2014 Plan. During the three months ended March 31, 2020, 13,000 shares were issued upon the vesting of the restricted stock units with an aggregate intrinsic value of $0.1 million. (d) Stock-based compensation The fair value of stock options granted is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: THREE MONTHS ENDED MARCH 31, 2020 2019 Expected volatility 90 % N/A Expected dividends 0 % N/A Expected terms (years) 6.05 N/A Risk free rate 0.78 % N/A Weighted average grant-date fair value of stock options $ 5.62 N/A The Company amortizes the fair value of the stock options on a straight-line basis over the applicable requisite service periods of the awards, which is generally the vesting period. Stock-based compensation expense charged to research and development expenses was $0.3 million and $0.1 million for the three months ended March 31, 2020 and 2019, respectively. Stock-based compensation expense charged to general and administrative expenses was $0.4 million and $1.0 million for the three months ended March 31, 2020 and 2019, respectively. Total unrecognized compensation cost for all stock-based compensation plans was $9.8 million and $6.7 million as of March 31, 2020 and 2019, respectively, which is expected to be recognized over a weighted-average period of 3.36 years (March 31, 2019 – 2.61 years).

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2020
Restructuring And Related Activities [Abstract]
Restructuring	6. Restructuring In July 2018, the Company’s Board of Directors approved a restructuring plan to reduce operating costs and better align the Company’s workforce with the needs of its business following the June 27, 2018 announcement that its Phase 3 Leadership 301 clinical trial evaluating once-daily, oral rosiptor for the treatment of IC/BPS failed to meet its primary endpoint. The Company has halted all further development activities with rosiptor. In 2018 and 2019, the Company incurred and paid aggregate restructuring charges of $7.4 million related to clinical trial closing costs, contract cancellations, closing of its office in San Bruno, California, severance payments and other employee-related costs. There were no amounts accrued as of March 31, 2020 or December 31, 2019. On November 6, 2018, the Company’s Board of Directors approved an additional restructuring plan to further reduce operating costs. In 2019, the Company incurred and paid aggregate restructuring charges of $1.6 million related to severance payments and other employee-related costs. There were no amounts accrued as of March 31, 2020. For the three months ended March 31, 2020, we incurred and paid an immaterial amount. For the three months ended March 31, 2019, restructuring recorded in

Other income, net

Other income, net	3 Months Ended
	Mar. 31, 2020
Other Income And Expenses [Abstract]
Other income, net	7. Other income, net THREE MONTHS ENDED (in thousands) 2020 2019 Interest income $ 434 $ 450 Foreign exchange gains 15 2 Other expenses (20 ) (1 ) $ 429 $ 451

Net loss per common stock

Net loss per common stock	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net loss per common stock	8. Net loss per common stock Basic and diluted net loss per share of common stock is computed by dividing net loss by the weighted average number of common stock outstanding. The 10,925,481 pre-funded warrants are included in the computation of basic and diluted net loss per common stock as the warrants are fully vested and exercisable at any time and for a nominal cash consideration. The Company excluded the following outstanding stock options and restricted stock units from the computation of basic and diluted net loss per common stock as the effect would have been antidilutive for all periods presented. THREE MONTHS ENDED 2020 2019 Outstanding stock options 5,344,927 2,633,197 Restricted stock units 134,000 — 5,478,927 2,633,197

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of presentation	(a) Basis of presentation The accompanying unaudited condensed consolidated financial statements are presented in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 12, 2020. In management’s opinion, the unaudited condensed consolidated financial statements reflect all adjustments (including reclassifications and normal recurring adjustments) necessary to present fairly the financial position as of March 31, 2020, and results of operations and cash flows for all periods presented. The interim results presented are not necessarily indicative of results that can be expected for a full year.
Use of estimates and assumptions	(b) Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Significant areas requiring estimates include valuation and recognition of stock-based compensation, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical and other accruals. Actual results could differ from those estimates.
Leases	(c) Leases At contract inception, the Company determines if the contract is a lease or contains a lease. Operating leases are recorded as operating lease right-of-use assets, operating lease liabilities and non-current operating lease liabilities. Finance leases are recorded as finance lease right-of-use assets, finance lease liabilities and non-current finance lease liabilities. Right-of-use assets and lease liabilities are recognized on the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of the lease payments, the Company utilizes its estimated incremental borrowing rate based on information available at the lease commencement date as the rate implicit in the lease is not readily determinable. The right-of-use assets are recorded net of any lease incentives received. Variable lease cost primarily includes building operating expenses as charged to the Company by its landlords. For leases of office space with a lease term of less than 12 months and which do not include an option to purchase the underlying asset, the Company has elected to recognize the lease payments in the statement of operations on a straight-line basis over the lease term. For leases of office space, the Company has elected to not separate the lease components from the non-lease components.
Accounting for stock-based compensation	(d) Accounting for stock-based compensation The Company has issued stock options and restricted stock units (“RSUs”). The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost of such award will be recognized over the period during which services are provided in exchange for the award, generally the vesting period. The Company accounts for forfeitures as they occur. All share-based payments to employees and consultants are recognized in the consolidated financial statements based upon their respective grant date fair values. The Company estimates the fair value of options granted using the Black-Scholes option pricing model. This approximation uses assumptions regarding a number of inputs that requires management to make significant estimates and judgments. The expected volatility assumption is based on industry peer information and the Company expects to continue to do so until it has adequate historical volatility of its common stock. Additionally, because the Company has no significant history to calculate the expected term, the simplified method is used to measure the term. The fair value of each RSU is measured using the closing price of the Company’s common stock on the date of grant.
Net loss per common stock	(e) Net loss per common stock Basic net loss per common stock is computed by dividing net loss by the weighted-average number of common stock and pre-funded warrants outstanding during the period. The pre-funded warrants are included in the computation of basic and diluted net loss per common stock as the warrants are fully vested and exercisable at any time and for a nominal cash consideration. Diluted net loss per common stock is determined using the weighted-average number of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of shares that might be issued upon exercise of common stock options and restricted stock units. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.
Fair value of financial instruments	(f) Fair value of financial instruments The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, receivables, accounts payable and other liabilities, approximate their fair values because of their nature and/or short maturities. At March 31, 2020, and December 31, 2019, the Company had $118.2 million and $40.0 million in money market funds, respectively. Money market funds are level one financial instruments as they are valued at fair value, which is the closing price reported by the fund sponsor from an actively traded exchange.
Recently issued and recently adopted accounting standards	(g) Recently issued and recently adopted accounting standards In December 2019, the FASB issued ASU 2019-12 “Simplifying the Accounting for Income Taxes.” The objective of the standard is to improve areas of GAAP by removing certain exceptions permitted by ASC Topic 740 - Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently assessing the impact of ASU 2019-12 on its financial statements.

Lease liabilities (Tables)

Lease liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of Components of Lease Expense	The components of the lease expense were as follows: THREE MONTHS ENDED (in thousands) 2020 2019 Finance lease cost Amortization of right-of-use assets $ 12 $ — Interest on lease liabilities — — Operating lease cost 528 31 Short term lease cost 28 — Variable lease cost 74 48 Total net lease cost $ 642 $ 79
Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases is as follows: THREE MONTHS ENDED 2020 2019 Weighted average remaining lease term – finance leases 3.12 years 1.42 years Weighted average remaining lease term – operating leases 8.11 years 2.58 years Weighted average discount rate – finance leases 7.11% 6.94% Weighted average discount rate – operating leases 12.63% 6.00%
Supplemental Cash flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: THREE MONTHS ENDED (in thousands) 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 310 $ 41 Cash paid for amounts included in the measurement of finance lease liabilities 2 2 Operating lease liabilities arising from obtaining right-of-use assets 9,614 515
Schedule of Company's Operating Lease Liability	At March 31, 2020, the future payments under the Company’s operating and finance lease liabilities were as follows: (in thousands) FINANCE OPERATING December 31, 2020 (remaining nine months) $ 62 $ 414 December 31, 2021 60 2,502 December 31, 2022 60 2,086 December 31, 2023 60 2,139 December 31, 2024 — 2,192 Thereafter — 9,124 Total undiscounted lease payments 242 18,457 Less: imputed interest (37 ) (7,734 ) Total lease liabilities 205 10,723 Less: current portion (59 ) (541 ) Non-current lease liabilities – March 31, 2020 $ 146 $ 10,182
Schedule of Company's Finance Lease Liability	At March 31, 2020, the future payments under the Company’s operating and finance lease liabilities were as follows: (in thousands) FINANCE OPERATING December 31, 2020 (remaining nine months) $ 62 $ 414 December 31, 2021 60 2,502 December 31, 2022 60 2,086 December 31, 2023 60 2,139 December 31, 2024 — 2,192 Thereafter — 9,124 Total undiscounted lease payments 242 18,457 Less: imputed interest (37 ) (7,734 ) Total lease liabilities 205 10,723 Less: current portion (59 ) (541 ) Non-current lease liabilities – March 31, 2020 $ 146 $ 10,182

Stockholders' equity (Tables)

Stockholders' equity (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of Stock Option Transactions and Number of Stock Options Outstanding	Stock option transactions and the number of stock options outstanding are summarized below: NUMBER OF WEIGHTED WEIGHTED AGGREGATE Outstanding at December 31, 2019 5,840,538 $ 5.11 7.72 $ 45,037 Options granted 290,700 7.63 Options exercised (376,311 ) 9.03 Options forfeited (410,000 ) 16.91 Outstanding at March 31, 2020 5,344,927 $ 4.06 8.70 $ 40,431 Exercisable as of March 31, 2020 1,040,512 $ 7.28 5.56 $ 5,462
Schedule of Restricted Stock Unit Transactions and Number of Unvested Stock Restricted Stock Units	Restricted stock unit transactions and the number of unvested stock restricted stock units are summarized below: NUMBER OF WEIGHTED Non-vested at December 31, 2019 72,000 $ 3.47 Restricted stock units granted 75,000 6.44 Restricted stock units vested (13,000 ) 3.47 Non-vested at March 31, 2020 134,000 $ 5.13
Schedule of Weighted Average Assumptions	The fair value of stock options granted is estimated using the Black-Scholes option pricing model with the following weighted average assumptions: THREE MONTHS ENDED MARCH 31, 2020 2019 Expected volatility 90 % N/A Expected dividends 0 % N/A Expected terms (years) 6.05 N/A Risk free rate 0.78 % N/A Weighted average grant-date fair value of stock options $ 5.62 N/A

Other income, net (Tables)

Other income, net (Tables)	3 Months Ended
	Mar. 31, 2020
Other Income And Expenses [Abstract]
Schedule of Other Income, Net	THREE MONTHS ENDED (in thousands) 2020 2019 Interest income $ 434 $ 450 Foreign exchange gains 15 2 Other expenses (20 ) (1 ) $ 429 $ 451

Net loss per common stock (Tabl

Net loss per common stock (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per common stock	The Company excluded the following outstanding stock options and restricted stock units from the computation of basic and diluted net loss per common stock as the effect would have been antidilutive for all periods presented. THREE MONTHS ENDED 2020 2019 Outstanding stock options 5,344,927 2,633,197 Restricted stock units 134,000 — 5,478,927 2,633,197

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	May 06, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Money market funds at fair value	$ 118.2	$ 40

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract]
Cash deposit	$ 0.5
Restricted cash	0.5	$ 0
Cash	21.2	103.1
Cash equivalents	$ 118.2	$ 40

Lease liabilities - Additional

Lease liabilities - Additional Information (Detail) $ in Thousands	Dec. 23, 2019USD ($)ft²Option	Sep. 23, 2019ft²	Nov. 01, 2016ft²	Mar. 31, 2020USD ($)Payment	Jan. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Lessee, Lease, Description [Line Items]
Tenant Improvements	$ 8,000
Additional tenant improvements	$ 1,500
Cash deposit				$ 500
Finance lease liability aggregate purchase price of Asset				$ 300
Lease agreement, expiration month year				2023-06
Number of annual payments | Payment				5
Operating lease right-of-use assets				$ 10,300		$ 770
Finance lease right-of-use assets				$ 300		$ 300
Irrevocable Letters of Credit [Member]
Lessee, Lease, Description [Line Items]
Cash deposit					$ 500
USA [Member]
Lessee, Lease, Description [Line Items]
Square feet of office space leased | ft²	33,300	6,272
Lease agreement, commencement date	Dec. 1, 2020	Oct. 1, 2019
Lease agreement, expiration date	Dec. 1, 2028	Oct. 31, 2021
Number of option to extend lease | Option	2
Lease agreement option to extend lease term	5 years
Canada [Member]
Lessee, Lease, Description [Line Items]
Square feet of office space leased | ft²			10,946
Lease agreement, commencement date			Nov. 1, 2016
Lease agreement, expiration date			Oct. 31, 2021
Lease agreement extended period			Oct. 31, 2026

Lease liabilities - Schedule of

Lease liabilities - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Finance lease cost
Amortization of right-of-use assets	$ 12
Operating lease cost	528	$ 31
Short term lease cost	28
Variable lease cost	74	48
Total net lease cost	$ 642	$ 79
Weighted average remaining lease term – finance leases	3 years 1 month 13 days	1 year 5 months 1 day
Weighted average remaining lease term – operating leases	8 years 1 month 9 days	2 years 6 months 29 days
Weighted average discount rate – finance leases	7.11%	6.94%
Weighted average discount rate – operating leases	12.63%	6.00%

Lease liabilities - Supplementa

Lease liabilities - Supplemental Cash flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lessee Disclosure [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 310	$ 41
Cash paid for amounts included in the measurement of finance lease liabilities	2	2
Operating lease liabilities arising from obtaining right-of-use assets	$ 9,614	$ 515

Lease liabilities - Schedule _2

Lease liabilities - Schedule of Company's Operating and Finance Lease Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finance lease liability
December 31, 2020 (remaining nine months)	$ 62
December 31, 2021	60
December 31, 2022	60
December 31, 2023	60
Total undiscounted lease payments	242
Less: imputed interest	(37)
Total lease liabilities	205
Less: current portion	(59)	$ (62)
Non-current lease liabilities – March 31, 2020	146	146
Operating lease liability
December 31, 2020 (remaining nine months)	414
December 31, 2021	2,502
December 31, 2022	2,086
December 31, 2023	2,139
December 31, 2024	2,192
Thereafter	9,124
Total undiscounted lease payments	18,457
Less: imputed interest	(7,734)
Total lease liabilities	10,723
Less: current portion	(541)	(556)
Non-current lease liabilities – March 31, 2020	$ 10,182	$ 447

Stockholders' equity - Addition

Stockholders' equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Dec. 17, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Total number of shares authorized		105,000,000
Common stock, shares authorized		100,000,000		100,000,000
Common stock, par value		$ 0.000001		$ 0.000001
Preferred stock, shares authorized		5,000,000		5,000,000
Preferred stock, par value		$ 0.000001		$ 0.000001
Common stock, shares issued		38,386,160		37,996,849
Common stock, shares outstanding		38,386,160		37,996,849
Preferred stock, shares issued		0		0
Preferred stock, shares outstanding		0		0
Conversion of common stock to warrants	10,925,481
Shares of common stock reserved for issuance description		Additionally, the number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year for a period of up to 10 years, beginning on January 1, 2015 and ending on and including January 1, 2024, by 4% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the board of directors.
Years of increase in shares of common stock reserved for issuance		10 years
Shares of common stock reserved for issuance percentage		4.00%
Options granted, Number of Shares		290,700
Options granted, Weighted Average Exercise Price		$ 7.63
Options exercised, shares		376,311
Common stock issued upon exercise of options aggregate intrinsic value		$ 1.3
Unrecognized stock-based compensation cost		$ 9.8	$ 6.7
Unrecognized stock-based compensation cost, weighted-average period recognized		3 years 4 months 9 days	2 years 7 months 9 days
Research and Development Expense [Member]
Stock-based compensation expense		$ 0.3	$ 0.1
General and Administrative Expense [Member]
Stock-based compensation expense		$ 0.4	$ 1
Restricted Stock Units (RSUs) [Member]
Restricted shares Granted		75,000
Restricted stock units granted, Weighted Average Grant Date Fair Value		$ 6.44
Shares issued upon vesting of units		13,000
Shares issued upon vesting of units aggregate intrinsic value		$ 0.1
Employees And Consultants [Member]
Options granted, Number of Shares		290,700
Employees [Member]
Vesting Percentage		25.00%
Employees [Member] | Restricted Stock Units (RSUs) [Member]
Restricted shares Granted		75,000
Restricted stock units granted, Weighted Average Grant Date Fair Value		$ 6.44
Employees [Member] | First Year [Member] | Restricted Stock Units (RSUs) [Member]
Vesting Percentage		33.33%
Employees [Member] | Second year [Member] | Restricted Stock Units (RSUs) [Member]
Vesting Percentage		33.33%
Employees [Member] | Third year [Member] | Restricted Stock Units (RSUs) [Member]
Vesting Percentage		33.33%
Employees [Member] | Minimum [Member]
Options granted, Weighted Average Exercise Price		$ 6.44
Employees [Member] | Maximum [Member]
Options granted, Weighted Average Exercise Price		$ 12.44
2014 Plan
Maximum number of shares of common stock that may be issued		10,273,506
2014 Plan | Employees [Member]
Award expiration period		10 years
2014 Plan | Employees [Member] | Restricted Stock Units (RSUs) [Member]
Award expiration period		0 years
Pre Funded Common Stock Warrants [Member]
Number of common stock in prefunded warrants	10,925,481
Exercise Price Per Share	$ 0.000001
Description of Covenants Under Exercise Of Warrants		The Exchange Warrants may be exercised at any time after the date of issuance, except that the Exchange Warrants cannot be exercised by the stockholders if, after giving effect thereto, the stockholders would beneficially own more than 9.99% of the outstanding common stock, subject to certain exceptions.

Stockholders' equity - Schedule

Stockholders' equity - Schedule of Stock Option Transactions and Number of Stock Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options Outstanding, Number of Shares, beginning balance	5,840,538
Options granted, Number of Shares	290,700
Options exercised, Number of Shares	(376,311)
Options forfeited, Number of Shares	(410,000)
Options Outstanding, Number of Shares, ending balance	5,344,927	5,840,538
Exercisable, Number of Shares, ending balance	1,040,512
Options Outstanding, Weighted Average Exercise Price, beginning balance	$ 5.11
Options granted, Weighted Average Exercise Price	7.63
Options exercised, Weighted Average Exercise Price	9.03
Options forfeited, Weighted Average Exercise Price	16.91
Options Outstanding, Weighted Average Exercise Price, ending balance	4.06	$ 5.11
Exercisable, Weighted Average Exercise Price, ending balance	$ 7.28
Options Outstanding, Weighted Average Remaining Contractual Life (Years), ending balance	8 years 8 months 12 days	7 years 8 months 19 days
Exercisable, Weighted Average Remaining Contractual Life (Years), ending balance	5 years 6 months 21 days
Options Outstanding, Aggregate Intrinsic Value	$ 40,431	$ 45,037
Exercisable, Aggregate Intrinsic Value	$ 5,462

Stockholders' equity - Schedu_2

Stockholders' equity - Schedule of Restricted Stock Unit Transactions and Number of Unvested Stock Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units, Number of Shares, beginning balance | shares	72,000
Restricted stock units granted, Number of Shares | shares	75,000
Restricted stock units vested, Number of Shares | shares	(13,000)
Restricted stock units, Number of Shares, ending balance | shares	134,000
Restricted stock units, Weighted Average Grant Date Fair Value, beginning balance | $ / shares	$ 3.47
Restricted stock units granted, Weighted Average Grant Date Fair Value | $ / shares	6.44
Restricted stock units vested, Weighted Average Grant Date Fair Value | $ / shares	3.47
Restricted stock units, Weighted Average Grant Date Fair Value, ending balance | $ / shares	$ 5.13

Stockholders' equity - Schedu_3

Stockholders' equity - Schedule of Weighted Average Assumptions (Detail)	3 Months Ended
	Mar. 31, 2020$ / shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected volatility	90.00%
Expected dividends	0.00%
Expected terms (years)	6 years 18 days
Risk free rate	0.78%
Weighted average grant-date fair value of stock options	$ 5.62

Restructuring - Additional Info

Restructuring - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019
Research and Development Expense [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 100,000
General and Administrative Expense [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 200,000
Restructuring Plan, July 2018 [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges incurred			$ 7,400,000
Amounts accrued		$ 0	0
Restructuring Plan, November 6, 2018 [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring charges incurred			$ 1,600,000
Amounts accrued		$ 0

Other income, net - Schedule of

Other income, net - Schedule of Other Income Net (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other Income And Expenses [Abstract]
Interest income	$ 434	$ 450
Foreign exchange gains	15	2
Other expenses	(20)	(1)
Total Other income (expenses)	$ 429	$ 451

Net loss per common stock - Add

Net loss per common stock - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020shares
Pre Funded Common Stock Warrants [Member]
Number of pre-funded warrants included in computation of basic and diluted net loss per common stock	10,925,481

Net loss per common stock - Sch

Net loss per common stock - Schedule of basic and diluted net loss per common stock (Detail) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Securities excluded from computation of earnings per share	5,478,927	2,633,197
Outstanding stock options [Member]
Securities excluded from computation of earnings per share	5,344,927	2,633,197
Restricted stock units [Member]
Securities excluded from computation of earnings per share	134,000