Neurogene (NGNE) 10-Q 12 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-36327
Entity Registrant Name	Neoleukin Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-0542593
Entity Address, Address Line One	188 East Blaine Street
Entity Address, Address Line Two	Suite 450
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98102
City Area Code	866
Local Phone Number	245-0312
Title of 12(b) Security	Common Stock, par value $0.000001
Trading Symbol	NLTX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		42,345,720
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001404644
Current Fiscal Year End Date	--12-31

Condensed Consolidated_Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 178,391	$ 192,556
Other current assets	2,915	1,966
Total current assets	181,306	194,522
Property and equipment, net	5,110	3,570
Operating lease right-of-use assets	11,473	10,154
Intangible asset, net	293	347
Other non-current assets	1,921	1,926
Total assets	200,103	210,519
Current liabilities
Accounts payable and accrued liabilities	7,308	7,181
Operating lease liabilities	1,047	659
Finance lease liabilities	52	49
Total current liabilities	8,407	7,889
Non-current operating lease liabilities	12,606	11,306
Non-current finance lease liabilities	122	108
Total liabilities	21,135	19,303
Stockholders’ equity
Common stock - $0.000001 par value - authorized, 100,000,000 as of March 31, 2021 and December 31, 2020; issued and outstanding, 42,326,033 as of March 31, 2021 and 42,196,296 as of December 31, 2020.	0	0
Preferred stock - $0.000001 par value - authorized, 5,000,000 as of March 31, 2021 and December 31, 2020; 0 issued and outstanding as of March 31, 2021 and December 31, 2020.	0	0
Additional paid-in capital	526,724	524,022
Accumulated deficit	(347,756)	(332,806)
Total stockholders’ equity	178,968	191,216
Total liabilities and stockholders’ equity	$ 200,103	$ 210,519

Condensed Consolidated_Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	42,326,033	42,196,296
Common stock, shares outstanding (in shares)	42,326,033	42,196,296
Preferred stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating expenses
Research and development	$ 9,707	$ 5,498
General and administrative	5,241	3,573
Total operating expenses	14,948	9,071
Other income (loss), net	(2)	429
Net loss	$ (14,950)	$ (8,642)
Net loss per common stock – basic (in dollars per share)	$ (0.27)	$ (0.18)
Net loss per common stock – diluted (in dollars per share)	$ (0.27)	$ (0.18)
Basic weighted average common shares outstanding (in shares)	54,944,421	49,168,451
Diluted weighted average common shares outstanding (in shares)	54,944,421	49,168,451

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities
Net loss	$ (14,950)	$ (8,642)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	2,420	683
Depreciation and amortization	247	171
Amortization of operating lease right-of-use assets	265	528
Unrealized foreign exchange (gain)/loss	0	(14)
Changes in operating assets and liabilities:
Other current assets and other non-current assets	(813)	266
Accounts payable and accrued liabilities	(631)	878
Operating lease right-of-use assets	0	(169)
Operating lease liabilities	104	(141)
Net cash used in operating activities	(13,358)	(6,440)
Investing activities
Purchase of property and equipment	(1,089)	(107)
Net cash used in investing activities	(1,089)	(107)
Financing activities
Proceeds from exercise of stock options	282	3,392
Payment on finance lease obligations	0	(2)
Net cash provided by financing activities	282	3,390
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	(11)
Net change in cash, cash equivalents and restricted cash during the period	(14,165)	(3,168)
Cash, cash equivalents and restricted cash, beginning of period	193,434	143,093
Cash, cash equivalents and restricted cash, end of period	179,269	139,925
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment unpaid at period-end	794	0
Operating lease liabilities arising from obtaining ROU asset	$ 1,584	$ 9,614

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance, beginning (in shares) at Dec. 31, 2019		37,996,849
Balance, beginning at Dec. 31, 2019	$ 141,687		$ 441,216	$ (299,529)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercises of stock options (in shares)	376,311	376,311
Shares issued upon exercises of stock options	$ 3,392		3,392
Shares issued upon vesting of restricted stock units (in shares)		13,000
Stock-based compensation	683		683
Net loss	(8,642)			(8,642)
Balance, ending (in shares) at Mar. 31, 2020		38,386,160
Balance, ending at Mar. 31, 2020	137,120		445,291	(308,171)
Balance, beginning (in shares) at Dec. 31, 2020		42,196,296
Balance, beginning at Dec. 31, 2020	$ 191,216		524,022	(332,806)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercises of stock options (in shares)	91,737	91,737
Shares issued upon exercises of stock options	$ 282		282
Shares issued upon vesting of restricted stock units (in shares)		38,000
Stock-based compensation	2,420		2,420
Net loss	(14,950)			(14,950)
Balance, ending (in shares) at Mar. 31, 2021		42,326,033
Balance, ending at Mar. 31, 2021	$ 178,968		$ 526,724	$ (347,756)

Nature of operations

Nature of operations	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of operations	Nature of operationsNeoleukin 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.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of significant accounting policies	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, 2020, filed with the Securities and Exchange Commission on March 25, 2021. In July 2020, the Company sold all of the issued and outstanding capital stock of Aquinox Pharmaceuticals, Inc. (Canada) (“Aquinox Canada”) to an unrelated third party. On December 31, 2020, Neoleukin Corporation, the Company's wholly owned subsidiary, was merged into the Company. As a result, the Company has consisted of a single operating company since December 31, 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 of the Company as of March 31, 2021, 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, the incremental borrowing rate utilized in the measurement of operating and finance lease liabilities, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical, clinical, and other accruals. Actual results could differ from those estimates. (c) Reclassification The Company reclassified prior year changes in operating lease right-of-use assets and operating lease liabilities in the condensed consolidated statements of cash flows to conform to current year presentation. This reclassification had no effect on net cash used in operating activities. (d) Leases At contract inception, the Company determines if the contract is or contains a lease. 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 interest rate implicit in the lease is typically not readily determinable. The related 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 and payments for lessor-owned assets that are not covered by a tenant improvement allowance. The Company includes options to extend the lease in its lease liability and right-of-use asset when it is reasonably certain that it will exercise that option. None of the Company's options to extend the rental term of any of its existing leases were considered reasonably certain as of March 31, 2021. For leases of office space and equipment, the Company has elected to not separate the lease components from the non-lease components. For leases of office space with a lease term of 12 months or less 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. (e) 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, 2021, and December 31, 2020, the Company had $156.3 million and $108.3 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. (f) Earnings (loss) per share Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Common stock equivalents such as outstanding stock options and unvested restricted stock units are included in the calculation of diluted earnings per share only in periods of net income. Such common stock equivalents are excluded in the calculation of diluted net loss per share in periods of net loss as inclusion of such amounts would be anti-dilutive. Outstanding pre-funded warrants as of March 31, 2021 of 12,663,010 are considered outstanding as of their issuance date and are included in the basic and diluted net loss per share calculation because they are fully vested and exercisable at any time after 61 days' notice for a nominal cash consideration. (g) Recently issued and recently adopted accounting standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 became effective for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021 on a prospective basis. The adoption of this ASU did not have a material impact on the Company's financial condition, results of operations, cash flows, and financial statement disclosures.

Cash, cash equivalents and rest

Cash, cash equivalents and restricted cash	3 Months Ended
	Mar. 31, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash Restricted cash, included in other non-current assets in the condensed consolidated balance sheets, includes $0.9 million in cash deposits the Company maintains with its bank as collateral for the irrevocable letters of credit related to its lease obligations. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets t hat sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 178,391 $ 192,556 Restricted cash 878 878 Total cash, cash equivalents, and restricted cash $ 179,269 $ 193,434

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Leases	Leases The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases. The Company has a lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 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 commenced on January 15, 2020 and expires on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million. As of March 31, 2021, there was a tenant improvement allowance receivable of $1.3 million recorded in other current assets related to reimbursable build-out costs incurred by the Company. The Company has a lease agreement for approximately 6,272 square feet of office space in Seattle, Washington, for additional office and laboratory space for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million. As of March 31, 2021, and December 31, 2020, the Company’s operating lease right-of-use assets were $11.5 million and $10.2 million, respectively. As of March 31, 2021, and December 31, 2020, the Company’s finance lease right-of-use assets were $0.3 million and $0.3 million, respectively.
Leases	Leases The Company enters into lease arrangements for its facilities as well as certain equipment, classified either as operating or finance leases. The Company has a lease agreement, as amended by the execution of two subsequent amendments, for approximately 33,300 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 commenced on January 15, 2020 and expires on February 1, 2029, with the option to extend the lease for two five-year terms. The lease provides for a tenant improvement allowance of up to $9.5 million. As of March 31, 2021, there was a tenant improvement allowance receivable of $1.3 million recorded in other current assets related to reimbursable build-out costs incurred by the Company. The Company has a lease agreement for approximately 6,272 square feet of office space in Seattle, Washington, for additional office and laboratory space for research and development and related uses. In March 2021, the Company executed an amendment to this lease pursuant to which the contractual lease term was extended through September 30, 2026, unless terminated earlier, with the option to extend the lease for an additional 28-month term. The execution of this amendment was accounted for as a modification to the lease due to the extension of the lease term and an increase in lease payments, and the Company recorded an increase in the lease liability and related right-of-use asset of $1.6 million. As of March 31, 2021, and December 31, 2020, the Company’s operating lease right-of-use assets were $11.5 million and $10.2 million, respectively. As of March 31, 2021, and December 31, 2020, the Company’s finance lease right-of-use assets were $0.3 million and $0.3 million, respectively.

Equity

Equity	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Equity	Equity (a) Common stock and pre-funded warrants The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.000001 as of March 31, 2021. As of March 31, 2021 and December 31, 2020 the total number of shares of common stock issued and outstanding was 42,326,033 and 42,196,296, respectively. As of March 31, 2021, the Company also has pre-funded warrants outstanding to purchase an aggregate of 12,663,010 shares of common stock. The pre-funded warrants are exercisable at any time, with 61 days' notice, for an exercise price of 0.000001, except that the pre-funded 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 pre-funded warrants will not have the right to vote on any matter except to the extent required by Delaware law. (b) Stock-based compensation expense Stock-based compensation expense is classified in the condensed consolidated statement of operations as follows: Three Months Ended (in thousands) 2021 2020 Research and development expenses $ 1,018 $ 283 General and administrative expenses 1,402 401 Total stock-based compensation expense $ 2,420 $ 683 Total unrecognized compensation cost for all stock-based compensation plans was $23.8 million as of March 31, 2021. This cost is expected to be recognized over a weighted average remaining vesting period of 3.00 years. The fair values of stock options granted are estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended 2021 2020 Expected volatility 89.68 % 90.00 % Expected dividends 0 % 0 % Expected terms (years) 6.06 6.05 Risk free rate 0.61 % 0.78 % (c) Stock options A summary of the Company’s stock option activity and related information for the three months ended March 31, 2021 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2020 6,846,289 $ 6.42 8.71 $ 53,127 Options granted 140,800 $ 12.83 Options exercised (91,737) $ 3.07 Options cancelled/forfeited (3,774) $ 16.63 Outstanding at March 31, 2021 6,891,578 $ 6.59 8.51 $ 40,710 Exercisable as of March 31, 2021 2,205,214 $ 5.04 7.68 $ 16,908 During the three months ended March 31, 2021, 91,737 shares of common stock were issued upon exercise of options with an aggregate intrinsic value of $1.0 million. 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. The weighted-average grant date fair value of options granted during the three months ended March 31, 2021 and March 31, 2020 was $9.43 and $5.62 per share, respectively. (d) Restricted stock units A summary of the Company’s restricted stock unit activity and related information for the three months ended March 31, 2021 is as follows: Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 186,500 $ 8.19 Restricted stock units granted — $ — Restricted stock units vested (38,000) $ 5.42 Restricted stock units forfeited — $ — Non-vested at March 31, 2021 148,500 $ 8.89 (e) Employee stock purchase plan The Company’s 2020 Employee Stock Purchase Plan (“2020 ESPP”) was adopted by the Company’s Board of Directors in March 2020 and approved by the Company’s stockholders in May 2020. A total of 759,936 shares of common stock have been reserved for issuance under the 2020 ESPP.

Earnings (loss) per share

Earnings (loss) per share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings (loss) per share	Earnings (loss) per shareThe Company excluded the following potentially dilutive shares from diluted net loss per share as the effect would have been anti-dilutive for all periods presented: Three Months Ended 2021 2020 Outstanding stock options 6,891,578 5,344,927 Restricted stock units 148,500 134,000 Shares issuable under 2020 ESPP 22,521 — 7,062,599 5,478,927

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of presentation	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, 2020, filed with the Securities and Exchange Commission on March 25, 2021. In July 2020, the Company sold all of the issued and outstanding capital stock of Aquinox Pharmaceuticals, Inc. (Canada) (“Aquinox Canada”) to an unrelated third party. On December 31, 2020, Neoleukin Corporation, the Company's wholly owned subsidiary, was merged into the Company. As a result, the Company has consisted of a single operating company since December 31, 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 of the Company as of March 31, 2021, 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	Use of estimates and assumptionsThe 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, the incremental borrowing rate utilized in the measurement of operating and finance lease liabilities, amortization and depreciation of property, plant and equipment and intangible assets, and pre-clinical, clinical, and other accruals. Actual results could differ from those estimates.
Reclassification	ReclassificationThe Company reclassified prior year changes in operating lease right-of-use assets and operating lease liabilities in the condensed consolidated statements of cash flows to conform to current year presentation. This reclassification had no effect on net cash used in operating activities.
Leases	LeasesAt contract inception, the Company determines if the contract is or contains a lease. 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 interest rate implicit in the lease is typically not readily determinable. The related 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 and payments for lessor-owned assets that are not covered by a tenant improvement allowance. The Company includes options to extend the lease in its lease liability and right-of-use asset when it is reasonably certain that it will exercise that option. None of the Company's options to extend the rental term of any of its existing leases were considered reasonably certain as of March 31, 2021. For leases of office space and equipment, the Company has elected to not separate the lease components from the non-lease components. For leases of office space with a lease term of 12 months or less 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.
Fair value of financial instruments	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, 2021, and December 31, 2020, the Company had $156.3 million and $108.3 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.
Earnings (loss) per share	Earnings (loss) per shareBasic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, without consideration for common stock equivalents. Common stock equivalents such as outstanding stock options and unvested restricted stock units are included in the calculation of diluted earnings per share only in periods of net income. Such common stock equivalents are excluded in the calculation of diluted net loss per share in periods of net loss as inclusion of such amounts would be anti-dilutive. Outstanding pre-funded warrants as of March 31, 2021 of 12,663,010 are considered outstanding as of their issuance date and are included in the basic and diluted net loss per share calculation because they are fully vested and exercisable at any time after 61 days' notice for a nominal cash consideration.
Recently issued and recently adopted accounting standards	Recently issued and recently adopted accounting standardsIn December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Accounting Standards Codification (“ASC”) Topic 740 - Income Taxes and clarifying existing guidance to facilitate consistent application. ASU 2019-12 became effective for fiscal years and interim periods beginning after December 15, 2020. The Company adopted this standard on January 1, 2021 on a prospective basis. The adoption of this ASU did not have a material impact on the Company's financial condition, results of operations, cash flows, and financial statement disclosures.

Cash, cash equivalents and re_2

Cash, cash equivalents and restricted cash (Tables)	3 Months Ended
	Mar. 31, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets t hat sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 178,391 $ 192,556 Restricted cash 878 878 Total cash, cash equivalents, and restricted cash $ 179,269 $ 193,434
Restrictions on Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets t hat sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: (in thousands) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 178,391 $ 192,556 Restricted cash 878 878 Total cash, cash equivalents, and restricted cash $ 179,269 $ 193,434

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Summary of Stock-based Compensation Expense	Stock-based compensation expense is classified in the condensed consolidated statement of operations as follows: Three Months Ended (in thousands) 2021 2020 Research and development expenses $ 1,018 $ 283 General and administrative expenses 1,402 401 Total stock-based compensation expense $ 2,420 $ 683
Schedule of Weighted Average Assumptions	The fair values of stock options granted are estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Three Months Ended 2021 2020 Expected volatility 89.68 % 90.00 % Expected dividends 0 % 0 % Expected terms (years) 6.06 6.05 Risk free rate 0.61 % 0.78 %
Schedule of Stock Options Activity	A summary of the Company’s stock option activity and related information for the three months ended March 31, 2021 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2020 6,846,289 $ 6.42 8.71 $ 53,127 Options granted 140,800 $ 12.83 Options exercised (91,737) $ 3.07 Options cancelled/forfeited (3,774) $ 16.63 Outstanding at March 31, 2021 6,891,578 $ 6.59 8.51 $ 40,710 Exercisable as of March 31, 2021 2,205,214 $ 5.04 7.68 $ 16,908
Summary of RSU Activity	A summary of the Company’s restricted stock unit activity and related information for the three months ended March 31, 2021 is as follows: Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 186,500 $ 8.19 Restricted stock units granted — $ — Restricted stock units vested (38,000) $ 5.42 Restricted stock units forfeited — $ — Non-vested at March 31, 2021 148,500 $ 8.89

Earnings (loss) per share (Tabl

Earnings (loss) per share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Schedule of potentially dilutive shares from diluted net loss per share	The Company excluded the following potentially dilutive shares from diluted net loss per share as the effect would have been anti-dilutive for all periods presented: Three Months Ended 2021 2020 Outstanding stock options 6,891,578 5,344,927 Restricted stock units 148,500 134,000 Shares issuable under 2020 ESPP 22,521 — 7,062,599 5,478,927

Summary of significant accoun_3

Summary of significant accounting policies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Warrants, notice period for nominal cash consideration	61 days
Prefunded Warrants
Lessee, Lease, Description [Line Items]
Outstanding pre-funded warrants (in shares)	12,663,010
Money market funds
Lessee, Lease, Description [Line Items]
Money market funds	$ 156.3	$ 108.3
Maximum | Office space
Lessee, Lease, Description [Line Items]
Lease term	12 months

Cash, cash equivalents and re_3

Cash, cash equivalents and restricted cash - Additional Information (Details) $ in Millions	Mar. 31, 2021USD ($)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash deposit	$ 0.9

Cash, cash equivalents and re_4

Cash, cash equivalents and restricted cash - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 178,391	$ 192,556
Restricted cash	878	878
Total cash, cash equivalents, and restricted cash	$ 179,269	$ 193,434	$ 139,925	$ 143,093

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)ft²option	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Tenant improvements (up to)	$ 9,500
Tenant improvement allowance receivable reimbursable by the landlord	1,300
Increase in right-of-use asset	0	$ 169
Increase in lease liability	104	$ (141)
Operating lease right-of-use assets	11,473		$ 10,154
Finance lease right-of-use assets	$ 300		$ 300
Washington | Office space, principal executive offices and laboratory
Lessee, Lease, Description [Line Items]
Square feet of office space leased | ft²	33,300
Number of option to extend leases | option	2
Lease agreement extended period	5 years
Washington | Office Space, additional offices and laboratory
Lessee, Lease, Description [Line Items]
Square feet of office space leased | ft²	6,272
Lease agreement extended period	28 months
Increase in right-of-use asset	$ 1,600
Increase in lease liability	$ 1,600

Equity - Additional Information

Equity - Additional Information (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)offering$ / sharesshares	Mar. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2020$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)	100,000,000		100,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.000001		$ 0.000001
Common stock, shares issued (in shares)	42,326,033		42,196,296
Common stock, shares outstanding (in shares)	42,326,033		42,196,296
Warrants, notice period for nominal cash consideration	61 days
Percentage of outstanding stock per stockholder, maximum	9.99%
Unrecognized stock-based compensation cost | $	$ 23.8
Unrecognized stock-based compensation cost, weighted-average period recognized	3 years
Shares issued upon exercises of stock options (in shares)	91,737	376,311
Aggregate intrinsic value of options exercised | $	$ 1	$ 1.3
Weighted average grant date fair value for options granted in period (in dollars per share) | $ / shares	$ 9.43	$ 5.62
Prefunded Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding pre-funded warrants (in shares)	12,663,010
Exercise price of pre-funded warrants (in dollars per share) | $ / shares	$ 0.000001
2020 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares reserved for issuance under employee stock purchase plan (in shares)	759,936
Shares issuable under 2020 ESPP | 2020 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP max contribution rate	15.00%
ESPP, purchase price of common stock, percent of market price	85.00%
ESPP number of offerings per year | offering	2
ESPP offering period	6 months

Equity - Summary of Stock-based

Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 2,420	$ 683
Research and development expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,018	283
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,402	$ 401

Equity - Schedule of Weighted A

Equity - Schedule of Weighted Average Assumptions (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Equity [Abstract]
Expected volatility	89.68%	90.00%
Expected dividends	0.00%	0.00%
Expected terms (years)	6 years 21 days	6 years 18 days
Risk free rate	0.61%	0.78%

Equity - Schedule of Stock Opti

Equity - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Stock Option Activity
Outstanding, beginning balance (in shares)	6,846,289
Options granted (in shares)	140,800
Options exercised (in shares)	(91,737)	(376,311)
Options cancelled/ forfeited (in shares)	(3,774)
Outstanding, ending balance (in shares)	6,891,578		6,846,289
Stock Options Weighted Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 6.42
Options granted (in dollars per share)	12.83
Options exercised (in dollars per share)	3.07
Options cancelled/forfeited (in dollars per share)	16.63
Outstanding, ending balance (in dollars per share)	$ 6.59		$ 6.42
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, Weighted Average Remaining Contractual Life	8 years 6 months 3 days		8 years 8 months 15 days
Outstanding, Aggregate Intrinsic Value	$ 40,710		$ 53,127
Exercisable, Number of Shares (in shares)	2,205,214
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.04
Exercisable, Weighted Average Remaining Contractual Life	7 years 8 months 4 days
Exercisable, Aggregate Intrinsic Value	$ 16,908

Equity - Summary of Nonvested R

Equity - Summary of Nonvested Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Number of Shares
Non-vested, beginning balance (in shares) | shares	186,500
Restricted stock units granted (in shares) | shares	0
Restricted stock units vested (in shares) | shares	(38,000)
Restricted stock units forfeited (in shares) | shares	0
Non-vested, ending balance (in shares) | shares	148,500
Weighted Average Grant Date Fair Value
Non-vested, beginning balance (in dollars per share) | $ / shares	$ 8.19
Restricted stock units granted (in dollars per share) | $ / shares	0
Restricted stock units vested (in dollars per share) | $ / shares	5.42
Restricted stock units forfeited (in dollars per share) | $ / shares	0
Non-vested, ending balance (in dollars per share) | $ / shares	$ 8.89

Earnings (loss) per share - Sch

Earnings (loss) per share - Schedule of basic and diluted net loss per common stock (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	7,062,599	5,478,927
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	6,891,578	5,344,927
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	148,500	134,000
Shares issuable under 2020 ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of earnings per share (in shares)	22,521	0