Aadi Bioscience (AADI) 10-Q 11 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 09, 2021
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Trading Symbol	ARPO
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Registrant Name	Aerpio Pharmaceuticals, Inc.
Entity Central Index Key	0001422142
Entity Common Stock, Shares Outstanding		47,660,492
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-38560
Entity Tax Identification Number	61-1547850
Entity Address, Address Line One	c/o 10663 Loveland
Entity Address, Address Line Two	Madeira Road #168
Entity Address, City or Town	Loveland
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45140
City Area Code	513
Local Phone Number	985-1920
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Former Address [Member]
Document Information [Line Items]
Entity Address, Address Line One	9987 Carver Road
Entity Address, City or Town	Cincinnati
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45242

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 36,816,128	$ 42,604,935
Prepaid research and development contracts		510,177
Other current assets	578,461	1,603,913
Total current assets	37,394,589	44,719,025
Furniture and equipment, net		121,730
Operating lease right-of-use assets, net	9,452	63,919
Deposits	20,000	20,000
Total assets	37,424,041	44,924,674
Current liabilities:
Accounts payable and accrued expenses	2,198,140	1,799,371
Current portion of operating lease liability	9,955	67,438
Total current liabilities	2,208,095	1,866,809
Total liabilities	2,208,095	1,866,809
Commitments and contingencies (Note 12)
Stockholders’ equity:
Common stock, $0.0001 par value per share; 300,000,000 shares authorized and 47,477,084 and 47,251,319 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively.	4,747	4,725
Additional paid-in capital	190,611,718	189,603,985
Accumulated deficit	(155,400,519)	(146,550,845)
Total stockholders’ equity	35,215,946	43,057,865
Total liabilities and stockholders’ equity	$ 37,424,041	$ 44,924,674

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	47,477,084	47,251,319
Common stock, shares outstanding	47,477,084	47,251,319

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
License revenue		$ 15,000,000		$ 15,000,000
Revenue, Product and Service [Extensible Enumeration]	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember
Operating expenses
Research and development	$ 719,637	$ 3,548,572	$ 2,947,639	$ 5,377,614
General and administrative	4,051,724	2,195,515	6,188,314	4,481,406
Restructuring expense			1,238,270
Total operating expenses	4,771,361	5,744,087	10,374,223	9,859,020
(Loss) income from operations	(4,771,361)	9,255,913	(10,374,223)	5,140,980
Other income	360,754		1,518,842
Grant income				79,900
Interest income	2,672	20,119	5,707	136,489
Total other income	363,426	20,119	1,524,549	216,389
Net and comprehensive (loss) income	$ (4,407,935)	$ 9,276,032	$ (8,849,674)	$ 5,357,369
Net and comprehensive (loss) income per common share
Basic and diluted	$ (0.09)	$ 0.23	$ (0.19)	$ 0.13
Weighted average number of common shares used in computing net (loss) income per share attributable to common stockholders
Basic	47,372,581	40,588,004	47,327,701	40,588,004
Diluted	47,372,581	40,905,288	47,327,701	40,747,960

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2019	$ 36,535,343	$ 4,059	$ 178,766,806	$ (142,235,522)
Balance, Shares at Dec. 31, 2019		40,588,004
Issuance of warrants	62,347		62,347
Stock-based compensation expense	327,467		327,467
Net and comprehensive loss	(3,918,663)			(3,918,663)
Balance at Mar. 31, 2020	33,006,494	$ 4,059	179,156,620	(146,154,185)
Balance, Shares at Mar. 31, 2020		40,588,004
Balance at Dec. 31, 2019	36,535,343	$ 4,059	178,766,806	(142,235,522)
Balance, Shares at Dec. 31, 2019		40,588,004
Net and comprehensive loss	5,357,369
Balance at Jun. 30, 2020	42,600,459	$ 4,059	179,474,553	(136,878,153)
Balance, Shares at Jun. 30, 2020		40,588,004
Balance at Mar. 31, 2020	33,006,494	$ 4,059	179,156,620	(146,154,185)
Balance, Shares at Mar. 31, 2020		40,588,004
Issuance of warrants	9,592		9,592
Stock-based compensation expense	308,341		308,341
Net and comprehensive loss	9,276,032			9,276,032
Balance at Jun. 30, 2020	42,600,459	$ 4,059	179,474,553	(136,878,153)
Balance, Shares at Jun. 30, 2020		40,588,004
Balance at Dec. 31, 2020	43,057,865	$ 4,725	189,603,985	(146,550,845)
Balance, Shares at Dec. 31, 2020		47,251,319
Issuance of common stock upon exercise of stock options	70,275	$ 8	70,267
Issuance of common stock upon exercise of stock options, shares		78,769
Issuance of common stock	4	$ 4
Issuance of common stock, shares		41,394
Stock-based compensation expense	345,756		345,756
Net and comprehensive loss	(4,441,739)			(4,441,739)
Balance at Mar. 31, 2021	39,032,161	$ 4,737	190,020,008	(150,992,584)
Balance, Shares at Mar. 31, 2021		47,371,482
Balance at Dec. 31, 2020	$ 43,057,865	$ 4,725	189,603,985	(146,550,845)
Balance, Shares at Dec. 31, 2020		47,251,319
Issuance of common stock upon exercise of stock options, shares	92,355
Net and comprehensive loss	$ (8,849,674)
Balance at Jun. 30, 2021	35,215,946	$ 4,747	190,611,718	(155,400,519)
Balance, Shares at Jun. 30, 2021		47,477,084
Balance at Mar. 31, 2021	39,032,161	$ 4,737	190,020,008	(150,992,584)
Balance, Shares at Mar. 31, 2021		47,371,482
Issuance of common stock upon exercise of stock options	10,193	$ 1	10,192
Issuance of common stock upon exercise of stock options, shares		13,586
Issuance of common stock upon exercise of warrants	24,300	$ 5	24,295
Issuance of common stock upon exercise of warrants, shares		50,000
Issuance of common stock	4	$ 4
Issuance of common stock, shares		42,016
Stock-based compensation expense	557,223		557,223
Net and comprehensive loss	(4,407,935)			(4,407,935)
Balance at Jun. 30, 2021	$ 35,215,946	$ 4,747	$ 190,611,718	$ (155,400,519)
Balance, Shares at Jun. 30, 2021		47,477,084

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net and comprehensive (loss) income	$ (4,407,935)	$ 9,276,032	$ (8,849,674)	$ 5,357,369
Adjustments to reconcile net and comprehensive (loss) income to net cash used in operating activities:
Depreciation			28,453	30,169
Loss on disposal of assets			93,285
Stock-based compensation	557,223	308,341	902,979	635,808
Consulting expenses related to warrants				71,939
Changes in operating assets and liabilities:
Prepaid research and development contracts			510,177	3,754
Other current assets			1,025,452	491,704
Accounts payable and accrued expenses			395,753	(238,797)
Net cash (used in) provided by operating activities			(5,893,575)	6,351,946
Investing activities:
Purchase of furniture and equipment				(12,198)
Net cash used in investing activities				(12,198)
Financing activities:
Proceeds from issuance of common stock upon exercise of stock options			80,468
Proceeds from issuance of common stock upon exercise of warrants			24,300
Net cash provided by financing activities			104,768
Net (decrease) increase in cash and cash equivalents			(5,788,807)	6,339,748
Cash and cash equivalents at beginning of year			42,604,935	38,524,536
Cash and cash equivalents, six months ended	$ 36,816,128	$ 44,864,284	$ 36,816,128	$ 44,864,284

Nature of Organization and Oper

Nature of Organization and Operations	6 Months Ended
	Jun. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Organization and Operations	1. Nature of Organization and Operations Aerpio Pharmaceuticals, Inc. (the “Company” or “Aerpio”) is a biopharmaceutical company focused on developing compounds that activate Tie2 as well as other indications in which the Company believes that activation of Tie2 may have therapeutic potential. The Company was incorporated as Zeta Acquisition Corp. II (“Zeta”) in the State of Delaware on November 16, 2007. Zeta was a “shell company” (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended). In December 2020, the Company ascular endothelial protein tyrosine phosphatase On May 16, 2021, the Company entered into an agreement and plan of merger (“Merger Agreement”) with Aadi Bioscience, Inc. (“Aadi”), a Delaware corporation, and Aspen Merger Subsidiary, Inc. (“Merger Sub”), a Delaware corporation and a direct, wholly-owned subsidiary of the Company, pursuant to which, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Aadi, with Aadi surviving as a wholly-owned subsidiary of the Company (the “Merger”). If the Merger is completed, the business of Aadi will continue as the business of the combined company. The Merger Agreement was approved by the members of the board of directors of the Company (the “Board”) and the Board resolved to recommend approval of the Merger Agreement to the Company’s shareholders. In connection with the Merger Agreement, the Company has entered into subscription agreements to raise an aggregate amount of $155.0 million in a Private Investment in Public Equity (“PIPE”) financing in shares of common stock and pre-funded warrants to purchase Aerpio common stock. The PIPE financing is expected to be consummated concurrently with the closing of the Merger, subject to customary closing conditions, and is contingent on the closing of the Merger. The Merger is expected to close in the second half of 2021. The closing of the Merger is subject to approval of the Company's shareholders and the satisfaction of certain closing conditions, including, among others, obtaining the requisite approval of the stockholders of Aerpio, Aerpio’s cash and cash equivalents maintaining a balance equal to or greater than $10.0 million and the completion of the PIPE financing. The Merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes. If the Company is unable to satisfy the closing conditions in Aadi’s favor or if other applicable closing conditions are not satisfied, Aadi will not be obligated to complete the Merger. The Merger Agreement provides Aerpio and Aadi with specified termination rights, and further provides that, upon termination of the Merger Agreement under specified circumstances, Aerpio may be required to pay the Aadi a termination fee of $2.0 million. In addition, in connection with certain terminations of the Merger Agreement, Aerpio may be required to pay Aadi’s out-of-pocket fees and expenses up to $750,000. If the Merger is consummated, on a pro forma basis, current shareholders of Aadi will own approximately 66.8% and current shareholders of the Company will own approximately 33.2% of the combined company upon the closing of the Merger, without giving effect to the proposed PIPE. Following the closing of the anticipated PIPE financing, the former Aadi shareholders are expected to own approximately 29.6% of the outstanding shares of Aerpio common stock, on a fully-diluted basis, the shareholders of Aerpio (as of immediately prior to the closing of the Merger) are expected to own approximately 14.7% of the outstanding shares of Aerpio common stock, on a fully-diluted basis, and the PIPE investors are expected to own approximately 55.7% of the outstanding shares of Aerpio common stock, on a fully-diluted basis. The Merger Agreement contemplates that, at or prior to the effective time of the Merger (the “Effective Time”), Aerpio, the Holder Representative (as defined therein) and the Rights Agent (as defined therein) will execute and deliver a contingent value rights agreement (the “CVR Agreement”), pursuant to which each holder of Aerpio common stock as of immediately prior to the Effective Time shall be entitled to one contractual contingent value right issued by Aerpio, subject to and in accordance with the terms and conditions of the CVR Agreement, for each share of Aerpio common stock held by such holder. The contingent value rights are not transferable, except in certain limited circumstances as will be provided in the CVR Agreement, will not be certificated or evidenced by any instrument and will not be registered with the SEC or listed for trading on any exchange. In January 2021, the Company executed a realignment plan to reduce operating costs and better align our workforce with the needs of its ongoing business. The realignment plan reduced the Company’s workforce by seven employees, representing approximately 58 % of its workforce. As a result of this realignment plan, the Company incurred a one-time employee related severance expenses of approximately $ 1.2 million in the first six months of 2021 and anticipates the majority of the one-time employee severance liability to be paid during 2021. The final payment of the severance liability in connection with the realignment plan is subject to a number of assumptions, actual results may differ from the original estimate. Additionally, the Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the realignment plan. In addition to razuprotafib, the Company has the following clinical programs for which the Company is actively exploring partnerships, collaborations and other strategic options: Acute Respiratory Distress Syndrome: Based on results in preclinical studies and observations in patients in TIME-2 and TIME-2b trials, the Company believed that a vascular endothelial receptor, Tie2, may play a pivotal role in the defense against microvascular breach in Acute Respiratory Distress Syndrome (“ARDS”) and have therapeutic potential for the treatment of COVID-19 associated ARDS. During 2020, the Company initiated two Phase 2 trials to evaluate subcutaneous razuprotafib for the prevention and treatment of ARDS in adult patients with moderate to severe COVID-19 (“RESCUE”) and critical COVID-19 (“I-SPY”). In January 2021, the Data Monitoring Committee recommended discontinuation of razuprotafib in the I-SPY trial after 21 patients due to the complexity of monitoring patients in the setting of a surge in ICU patients. For the RESCUE trial, t he Company decided to stop recruiting in February 2021 after the first 31 patients were enrolled based on challenges recruiting and monitoring patients in the current pandemic environment. Based on topline data for the RESCUE trial, there was a mechanism-based, dose-dependent reduction of blood pressure which was not associated with other adverse events. There was an apparent dose-dependent decrease in Angiopoietin 2 (“Ang2”) that would be consistent with the Tie2 activation mechanism. The efficacy of razuprotafib could not be fully assessed due to the limited number of patients treated in the drug and standard of care arms. At the 28 day study endpoint, there were an equal number of deaths in each group (one per group). Further analysis of the full data set is ongoing. There were no apparent safety signals associated with dosing COVID-19 patients in either trial and we plan to further analyze the data to assess trends in efficacy and biomarkers. All clinical activity related to the RESCUE trial was substantially complete as of June 30, 2021. Diabetic Kidney Disease: In two consecutive trials, TIME-2 and TIME-2b, subcutaneous razuprotafib showed reduction in Urine Albumin-Creatinine Ratio (“UACR”), a measure of progression of diabetic kidney disease. The Company believes that systemic treatment with razuprotafib could have the potential to change the treatment paradigm for diabetics in the future and potentially address a major societal problem by lowering the cost of care associated generally with diabetes. ARP-1536 and Bi-Specific Antibody: ARP-1536, the humanized monoclonal antibody directed at the same target as subcutaneous razuprotafib, is in preclinical development. The Company is evaluating development options for ARP-1536, including subcutaneous injection for the treatment of diabetic vascular complications, e.g., diabetic nephropathy and intravitreal injection as an adjunctive therapy for diabetic macular edema. The Company is also developing a bispecific antibody that binds both v ascular endothelial growth factor (“VEGF”) and VE-PTP which is designed to inhibit VEGF activation and activate Tie2. The Company believes this bispecific antibody has the potential to be an improved treatment for wet aged-related macular degeneration (“AMD”) and diabetic macular edema via intravitreal injection. In June 2018, the Company licensed AKB-4924 (now GB004), a selective stabilizer of hypoxia-inducible factor-1 alpha (“HIF-1 alpha”) to a wholly-owned subsidiary of Gossamer Bio, Inc., GB004, Inc. ( “Gossamer”), which is being developed for the treatment of inflammatory bowel disease (“IBD”). HIF-1 alpha is involved in mucosal wound healing and the reduction of inflammation in the gastrointestinal tract. Gossamer completed the Phase 1b clinical trial in ulcerative colitis (“UC”) patients and reported results during the second quarter of 2020. Gossamer has announced that, subject to developments in the ongoing COVID-19 pandemic, it initiated a 12-week Phase 2 study of GB004 in patients with mild-to-moderate UC during the second half of 2020. In May 2020, the Company received a one-time payment of $15.0 million pursuant to an amendment to its license agreement with Gossamer resulting in a reduction in future potential milestone payments and tiered royalty rates over the life of the license agreement. Gossamer is responsible for all remaining development and commercial activities for GB004. The Company’s operations to date have been limited to organizing and staffing the Company, business planning, raising capital, acquiring and developing its technology, identifying potential product candidates and undertaking preclinical and clinical studies. The Company’s revenue has been primarily limited to license revenue from Gossamer. Future revenue is dependent on the terms of the license agreement with Gossamer as further described in Note 10. The Company’s product candidates are subject to long development cycles and there is no assurance the Company will be able to successfully develop, obtain regulatory approval for, or market its product candidates. The Company is subject to a number of risks similar to other life science companies in the current stage of its life cycle including, but not limited to, the need to obtain adequate additional funding, possible failure of preclinical testing or clinical trials, the need to obtain marketing approval for its product candidates, competitors developing new technological innovations, the need to successfully commercialize and gain market acceptance of any of the Company’s products that are approved, and protection of proprietary technology. If the Company does not successfully commercialize any of its products or mitigate any of these other risks, it will be unable to generate revenue or achieve profitability. Excluding the one-time payments from Gossamer, the Company incurred losses from operations and had a negative cash flows from operating activities for the six months ended June 30, 2021 and 2020 (and since inception). As of June 30, 2021, the Company’s cash and cash equivalents were approximately $36.8 million. Based on its current operating plan, and absent any future financings or strategic partnerships, the Company believes its existing cash and cash equivalents will be sufficient to fund its current operating plan through the fourth quarter of 2022 COVID-19 has resulted, and may continue to result, in significant governmental measures being implemented to control the spread of the virus through quarantines, travel restrictions, heightened border security and other measures. While the Company cannot predict the scope and severity, these developments and measures could materially and adversely affect its business and its financial condition. In addition, in response to the continuing spread of COVID-19, the Company has kept its executive offices closed with its employees continuing their work outside of the office. The Company is closely monitoring the impact of COVID-19 on all aspects of its business and is taking steps to minimize the impact on its business. However, the extent to which COVID-19 ultimately impacts the Company’s business, results of operations or financial condition will depend on future developments, which despite progress in vaccination efforts, remain highly uncertain and cannot be predicted with confidence, such as the duration of the COVID-19 pandemic, new strains of the virus which may impact rates of infection and vaccination efforts, developments or perceptions regarding the safety of vaccines, new information that may emerge, and any additional preventative and protective actions that governments, or we, may direct, which may result in extending ongoing business disruptions and reduced operations. If the Company or any of the third parties with whom it engages were to experience additional shutdowns or other prolonged business disruptions, the Company’s ability to conduct its business in the manner and on the timelines presently planned could have a material adverse impact on the Company’s business, results of operation and financial condition. In addition, a recurrence of COVID-19 cases could cause other widespread or more severe impacts depending on where infection rates are highest. The Company will continue to monitor the latest developments as it deals with the disruptions and uncertainties relating to the COVID-19 pandemic, including the pace of vaccinations and the emergence of new and more contagious strains of the virus, and any resulting impact on our business, financial condition, results of operations and prospects. Any resulting financial impact cannot be reasonably estimated at this time and may have a material adverse impact on our business, financial condition and results of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Securities and Exchange Commission (“SEC”) regulations and include all of the information and disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”) for interim financial reporting, and, in the opinion of management include all adjustments necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows for each period presented. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). All adjustments are of a normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2021. The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. The Company’s condensed consolidated financial statements are stated in U.S. Dollars. Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the business of developing and commercializing proprietary therapeutics. All the assets and operations of the Company’s sole operating segment are located in the United States. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. Estimates are used in the following areas, among others: stock-based compensation expense, revenue recognition and income taxes. The Company’s results can also be affected by economic conditions, global health concerns, such as the COVID-19, and political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies, and changes in the prices of research studies, can have a significant effect on operations. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings. Cash and Cash Equivalents Cash and cash equivalents consist of all cash on hand and short-term certificates of deposits with original maturities of three months or less at the time of purchase. At June 30, 2021 and December 31, 2020, the Company’s cash equivalents are primarily held in money market funds. The Company maintains balances with its banks in excess of federally insured limits. Revenue Recognition At the inception of an arrangement, the Company evaluates if a counterparty to a contract is a customer, if the arrangement is within the scope of revenue from contracts with customers guidance and the term of the contract. The Company recognizes revenue when its customer obtains control of promised goods or services in a contract for an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. For contracts with customers, the Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. As part of the accounting for contracts with customers, the Company must develop assumptions that require judgment to determine the standalone selling price of each performance obligation identified in the contract. The Company then allocates the total transaction price to each performance obligation based on the estimated standalone selling prices of each performance obligation. The Company recognizes the amount of the transaction price as revenue that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. The Company enters into collaboration arrangements, under which it licenses certain rights to its intellectual property to third parties. The terms of these agreements may include payment to the Company of one or more of the following: nonrefundable upfront license fees; development, sale and commercial milestone payments and royalties on net sales of licensed products. Each of these types of payments are classified as license revenue except for revenue from royalties on net sales of licensed products, which are classified as royalty revenue, if received. For each collaboration agreement that results in revenues, the Company identifies all material promised goods and services, which may include a license to intellectual property, research and development activities and/or transition activities. Promised goods or services are considered to be separate performance obligations if they are distinct. In order to determine the transaction price to be allocated to each performance obligation, in addition to any upfront payment, the Company estimates the amount of variable consideration at the outset of the contract either utilizing the expected value or most likely amount method, depending on the facts and circumstances relative to the contract. The Company constrains (reduces) the estimates of variable consideration such that it is probable that a significant reversal of previously recognized revenue will not occur throughout the life of the contract. When determining if variable consideration should be constrained, management considers whether there are factors outside the Company’s control that could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period as required. Once the estimated transaction price is established, amounts are allocated to the performance obligations that have been identified. The transaction price is generally allocated to each separate performance obligation on a relative standalone selling price basis. The Company must develop assumptions that require judgment to determine the standalone selling price (“SSP”) in order to account for these agreements. To determine the standalone selling price the Company’s assumptions may include (i) assumptions regarding the probability of obtaining marketing approval for the drug candidate; (ii) estimates regarding the timing of and the expected costs to develop and commercialize the drug candidate; (iii) estimates of future cash flows from potential product sales with respect to the drug candidate; and (iv) appropriate discount and tax rates. Standalone selling prices used to perform the initial allocation are not updated after contract inception. The Company does not include a financing component to its estimated transaction price at contract inception unless it estimates that certain performance obligations will not be satisfied within one year. Upfront License and Amendment License Fees: If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from nonrefundable, upfront (or one-time) license and amendment license fees based on the relative value prescribed to the license compared to the total value of the arrangement. The revenue is recognized when the cash is received or when the license is transferred to the collaborator and the collaborator is able to use and benefit from the license. For licenses that are not distinct from other obligations identified in the arrangement, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If the combined performance obligation is satisfied over time, the Company applies an appropriate method of measuring progress for purposes of recognizing revenue from nonrefundable, license fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Development Milestone Payments: Depending on facts and circumstances, the Company may conclude it is appropriate to include the milestone in the estimated transaction price using the most likely amount method or it is appropriate to fully constrain the milestone. A milestone payment is included in the transaction price in the reporting period the Company concludes that it is probable that recording revenue in the period will not result in a significant reversal in amounts recognized in future periods. The Company may record revenues from certain milestones in a reporting period before the milestone is achieved if the Company concludes that achievement of the milestone is probable and that recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods. The Company records a corresponding contract asset when this conclusion is reached. Milestone payments that have not been included in the transaction price to date are fully constrained. These milestones remain fully constrained until the Company concludes that achievement of the milestone is probable and recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods. The Company re-evaluates the probability of achievement of such development milestones and any related constraint each reporting period. The Company adjusts its estimate of the overall transaction price, including the amount of collaborative revenue that it has recorded, if necessary. Sales-based Milestone and Royalty Payments: The Company’s collaborators may be required to pay the Company sales-based milestone payments or royalties on future sales of commercial products. The Company recognizes revenues related to sales-based milestone and royalty payments upon the later to occur of (i) achievement of the collaborator’s underlying sales or (ii) satisfaction of any performance obligation(s) related to these sales, in each case assuming the license to the Company’s intellectual property is deemed to be the predominant item to which the sales-based milestones and/or royalties relate. Other Income Other income represents reimbursed internal and external qualified expenses, per the terms of the U.S. Government operating through Medical Technology Enterprise Consortium (“MTEC”) The reimbursable qualified expenses were incurred in conjunction with the RESCUE trial and the potential of subcutaneous razuprotafib for the prevention and treatment of ARDS in adult patients with moderate to severe COVID-19. The Company recorded $0.4 million and $1.5 million as other income during the three and six months ended June 30, 2021, respectively. Other income is recorded, and costs are generally reimbursed, in the period the internal or external qualified clinical trial expenses are incurred, and paid, by the Company. Grant Income Grant income is recognized as earned based on contract work performed. Research and Development Research and development costs are expensed as incurred. Research and development expense consists of (i) employee-related expenses, including salaries, benefits, travel and stock-based compensation expense; (ii) external research and development expenses incurred under arrangements with third parties, such as contract research organizations and consultants; (iii) the cost of acquiring, developing and manufacturing clinical study materials; and (iv) costs associated with clinical, preclinical and regulatory activities. The Company enters into consulting, research, and other agreements with commercial firms, researchers, universities and others for the provision of goods and services. Under such agreements, the Company may pay for services on a monthly, quarterly, project or other basis. Such arrangements are generally cancellable upon reasonable notice and payment of costs incurred. Costs are considered incurred based on an evaluation of the progress to completion of specific tasks under each contract using information and data provided to the Company by its clinical sites and vendors. These costs consist of direct and indirect costs associated with specific projects, as well as fees paid to various entities that perform certain research on behalf of the Company. Patents Costs incurred in connection with the application for and issuances of patents are expensed as incurred. Income Taxes Income taxes are recorded in accordance with ASC Topic 740, Income Taxes . The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position, as well as consideration of the available facts and circumstances. As of June 30, 2021 and December 31, 2020, the Company does not have any uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions, if any exist, in income tax expense. Net and Comprehensive (Loss) Income per Share Attributable to Common Stockholders The Company’s basic net and comprehensive (loss) income per share attributable to common stockholders is calculated by dividing the net and comprehensive (loss) income by the weighted average number of shares of common stock outstanding for the period. The diluted net and comprehensive (loss) income per share attributable to common stockholders is computed by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation – Stock Compensation Due to the historical lack of a public market for the trading of the Company’s common stock and a lack of company-specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. The computation of expected volatility is based on the historical volatility of a representative group of companies with similar characteristics to the Company, including stage of product development and life science industry focus. The Company believes the group selected has sufficient similar economic and industry characteristics and includes companies that are most representative of the Company. The Company uses the simplified method as prescribed by the SEC Staff Accounting Bulletin No. 107, Share-Based Payment Compensation expense related to awards to employees is calculated on a straight-line basis by recognizing the grant date fair value over the associated service period of the award, which is generally the vesting term. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses. The Company values cash equivalents using quoted market prices. The fair value of accounts payable and accrued expenses approximates its carrying value because of its short-term nature. The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. ASC Topic 820, Fair Value Measurements and Disclosures Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The three levels of the fair value hierarchy are described below: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date • Level 2 – Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly • Level 3 – Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable To the extent that a valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. There were no transfers within the fair value hierarchy during the three or six months ended June 30, 2021 or 2020. The assets of the Company measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, are summarized below: Fair Value Measurements Using Level 1 Level 2 Level 3 Total June 30, 2021 Assets: Cash and cash equivalents $ 36,816,128 $ — $ — $ 36,816,128 Total assets $ 36,816,128 $ — $ — $ 36,816,128 December 31, 2020 Assets: Cash and cash equivalents $ 42,604,935 $ — $ — $ 42,604,935 Total assets $ 42,604,935 $ — $ — $ 42,604,935 Concentrations of Credit Risk and Off-Balance Sheet Risk Cash and cash equivalents are the only financial instruments that potentially subject the Company to concentrations of credit risk. At June 30, 2021 and December 31, 2020, the Company maintains its cash and cash equivalents with high-quality, accredited financial institutions and, accordingly, such funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk, such as foreign currency exchange contracts, option contracts or other hedging arrangements. Comprehensive (Loss) Income Comprehensive (loss) income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, if any. Comprehensive income was recognized for the three and six months ended June 30, 2020 as a result of the $15.0 million received from Gossamer for Amendment No. 1 during the three months ended June 30, 2020. Furniture and Equipment Furniture and equipment is stated at cost, less accumulated depreciation. Furniture and equipment is depreciated using the straight-line method over the estimated useful lives of the assets, generally three to seven years. Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors: operating losses, unused capacity, market value declines, and technological obsolescence. Recorded values of asset groups of furniture and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale). During the three and six months ended June 30, 2021, the Company disposed of all furniture and equipment. A loss on the disposal of all furniture and equipment of $93,285 was recorded in general and administrative expenses during the three and six months ended June 30, 2021. No similar loss or disposal was recorded during 2020. Leases At the inception of an arrangement the Company determines whether the arrangement is or contains a lease based on the circumstances present. All leases with a term greater than one year are recognized on the condensed consolidated balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the condensed consolidated balance sheet leases with terms of one-year or less if entered into. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. Recent Accounting Pronouncements No new accounting pronouncement have been recently issued or newly effective which would have or be expected to have a material impact on the Company’s condensed consolidated financial statements.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	6 Months Ended
	Jun. 30, 2021
Payables And Accruals [Abstract]
Accounts Payable and Accrued Expenses	3. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are as follows: June 30, December 31, 2021 2020 Restructuring accrual (see Note 11) $ 677,891 $ — Accounts payable 746,880 523,037 Professional fees 504,903 444,534 Accrued project costs — 328,463 Accrued retention bonus 225,960 — Accrued vacation 31,701 48,107 Accrued bonus — 428,683 Other 10,805 26,547 Total accounts payable and accrued expenses $ 2,198,140 $ 1,799,371

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Common Stock	4. Common Stock As of June 30, 2021 and December 31, 2020, the Company had 300,000,000 shares of authorized common stock with par value of $0.0001 per share. The common stock has the following characteristics: Voting The holders of common stock are entitled to one vote for each share of common stock held at all meetings of stockholders and written actions in lieu of meetings. Dividends The holders of common stock are entitled to receive dividends, if and when declared by the board of directors of the Company (the “Board of Directors”). Since the Company’s inception, no dividends have been declared or paid to the holders of common stock. Liquidation In the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Company, the holders of common stock are entitled to share ratably in the Company’s assets. Warrants to Purchase Common Stock The Company had warrants outstanding for the purchase of 550,000 and 600,000 shares of the Company’s common stock at June 30, 2021 and December 31, 2020, respectively. In October 2019, the Company issued warrants for the purchase of 600,000 shares of the Company’s common stock at an exercise price of $0.486 per share in connection with the hiring of a strategic advisor consultant for a six-month period. These warrants vested in equal monthly installments over a six-month The number of shares and the exercise price shall be adjusted for standard ant i -dilution events such as stock splits, combinations, reorganizations, or issue shares as part of a stock dividend. Upon a change of control, the warrant holder will have the right to receive securities, cash or other properties it would have been entitled to receive had the warrant been exercised. The warrants are equity classified instruments and do not contain contingent exercise provisions, or other features, that would preclude the Company from concluding that the warrants are indexed solely to the Company’s common stock.

Preferred Stock

Preferred Stock	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Preferred Stock	5. Preferred Stock As of June 30, 2021 and December 31, 2020, the Company had 10,000,000 shares of preferred stock, par value $0.0001 per share, in authorized capital. No preferred stock was issued and outstanding at June 30, 2021 and December 31, 2020.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	6. Stock-Based Compensation In March 2017, the Board of Directors adopted, and the stockholders approved, the 2017 Stock Option and Incentive Plan (the “2017 Plan”), that became effective in April 2017. The 2017 Plan provides for the issuance of incentive awards up to 4,600,000 shares of common stock to officers, employees, consultants and directors, less the number of shares subject to issued and outstanding awards under the 2011 Plan that were assumed in the Merger. The 2017 Plan also provides that the number of shares reserved for issuance thereunder will be increased annually on the first day of each year beginning in 2018 by four percent (4%) of the shares of common stock outstanding on the last day of the immediately preceding year or such smaller increase as determined by the Board of Directors. In January 2021, the Board of Directors approved a 4% increase adding 1,890,052 shares to the 2017 Plan, which was effective as of January 1, 2021. Stock Options The options granted generally vest over 48 months. Under the 2017 Plan, options vest in installments of 25% at the one-year anniversary and thereafter in 36 equal monthly installments beginning on the 1 st As of June 30, 2021 and December 31, 2020, 5,324,959 and 3,634,905 shares were reserved for issuance under the 2017 Plan, respectively. The following table summarizes the stock option activity during the six months ended June 30, 2021: Stock Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding, January 1, 2021 4,642,240 $ 1.81 7.00 $ 358,209 Granted 287,963 1.48 Exercised (92,355 ) 0.87 Expired/cancelled (208,208 ) 2.02 Outstanding, June 30, 2021 4,629,640 $ 1.80 6.58 $ 2,196,969 Expected to vest, June 30, 2021 873,594 $ 1.65 1.50 $ 578,185 Options exercisable, June 30, 2021 3,756,046 $ 1.83 6.23 $ 1,618,784 Aggregate intrinsic value represents the estimated fair value of the Company’s common stock at in excess of the weighted average exercise price multiplied by the number of options outstanding or exercisable. As of June 30, 2021, there was $804,852 of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of 1.50 years. Stock Awards During the three months ended June 30, 2021, the Company’s non-employee directors were awarded 42,016 shares of the Company’s common stock at a fair market value of $1.69 for the shares. For the six months ended June 30, 2021, 83,410 shares of the Company’s common stock were issued to non-employee directors. For the six months ended June 30, 2021, the market value per share ranged from $1.03 to $2.05 . The awards were in the form of Unrestricted Stock Awards (as defined in the 2017 Plan) equal to the quarterly cash retainer payable to such directors under the Company’s non-employee director compensation policy currently in effect divided by the average closing price of the Company’s common stock on the Nasdaq Capital Market during the respective quarter end. Compensation Expense Summary The Company recognized the following compensation cost related to employee and non-employee stock-based compensation activity for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 105,157 $ 176,110 $ 213,172 $ 371,899 General and administrative 452,066 132,231 689,807 263,909 Total $ 557,223 $ 308,341 $ 902,979 $ 635,808 The total expense related to stock options recorded in research and development expense for the three and six months ended June 30, 2021 was $105,157 and $213,172, respectively. The total expense recorded in general and administrative expense for the three and six months ended June 30, 2021 was $452,066 and $689,807, respectively, and consisted of $71,007 and $124,405 from stock awards and $381,059 and $565,402 from stock options, respectively. The Company uses the Black-Scholes option pricing model to determine the estimated fair value for stock-based awards. Option pricing and models require the input of various assumptions, including the option’s expected life, expected dividend yield, price volatility and risk-free interest rate of the underlying stock. Accordingly, the weighted-average fair value of the options granted during the six months ended June 30, 2021 and 2020 was $0.90 and $0.43 per share, respectively. The calculation was based on the following assumptions. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (years) 5.00 5.50 5.08 5.92 Risk-free interest rate 0.85% 0.38% 0.77% 0.53% Expected volatility 74.57% 74.82% 74.47% 69.36% Expected dividend yield 0.00% 0.00% 0.00% 0.00%

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The Company did not record a current or deferred income tax expense or benefit for the three and six months ended June 30, 2021 and 2020, due to the Company’s net and comprehensive losses and increases in its deferred tax asset valuation allowance.

Net and Comprehensive (Loss) In

Net and Comprehensive (Loss) Income Per Share Attributable to Common Stockholders	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net and Comprehensive (Loss) Income Per Share Attributable to Common Stockholders	8. Net and Comprehensive (Loss) Income per Share Attributable to Common Stockholders The following table sets forth the computation of the Company’s basic and diluted net and comprehensive (loss) income per share attributable to common stockholders for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net and comprehensive (loss) income attributable to common stockholders $ (4,407,935 ) $ 9,276,032 $ (8,849,674 ) $ 5,357,369 Denominator Weighted average common shares used in computing EPS Basic 47,372,581 40,588,004 47,327,701 40,588,004 Diluted 47,372,581 40,905,288 47,327,701 40,747,960 Basic and diluted EPS $ (0.09 ) $ 0.23 $ (0.19 ) $ 0.13 Holders of non-vested stock-based compensation awards do not have voting rights. The following weighted average common stock equivalents were excluded from the calculation of basic and diluted net and comprehensive (loss) income per share attributable to common stockholders for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Options to purchase common stock 1,594,647 3,846,560 1,611,297 4,094,423 Warrants to purchase common stock 550,000 600,000 550,000 600,000

Employee Stock Purchase Plan

Employee Stock Purchase Plan	6 Months Ended
	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Employee Stock Purchase Plan	9. Employee Stock Purchase Plan In March 2017, the Board of Directors adopted and the stockholders approved the Employee Stock Purchase Plan that became effective in April 2017. On June 20, 2018, the Company’s stockholders approved the Amended and Restated 2017 Employee Stock Purchase Plan (the “ESPP”) at the 2018 annual meeting of stockholders. Pursuant to the terms of the ESPP, the Company will reserve for issuance 300,000 shares of the Company’s common stock in the aggregate, plus, on January 1, 2019 and each January 1 thereafter through January 1, 2028, the number of shares of the Company’s common stock reserved and available for issuance under the ESPP will be cumulatively increased by the least of (i) one percent of the number of shares of the Company’s common stock issued and outstanding on the immediately preceding December 31; (ii) 350,000 shares; or (iii) such lesser number of shares of the Company’s common stock as determined by the Board of Directors, in each case subject to adjustment in accordance with the terms of the ESPP. In January 2021, the Company’s Board of Directors approved an increase of 350,000 shares to the ESPP, which increase was effective as of January 1, 2021. No shares under the ESPP are outstanding at June 30, 2021 and December 31, 2020.

License Agreement

License Agreement	6 Months Ended
	Jun. 30, 2021
Revenue From Contract With Customer [Abstract]
License Agreement	10. License Agreement On June 24, 2018, the Company entered into a license agreement (the “Gossamer License Agreement”) with Gossamer, under which the Company granted Gossamer an exclusive, sublicensable license to develop and commercialize AKB-4924 and other structurally related products worldwide, with initial development expected in the indications of induction and maintenance in ulcerative colitis and Crohn’s Disease (collectively “initial indications”). Prior to the execution of the Gossamer License Agreement, AKB-4924 was a pipeline program for the Company that completed a Phase 1a clinical trial in healthy volunteers . On May 12, 2020, the Company entered into Amendment No. 1 to the Gossamer License Agreement (“Amendment No. 1”). Pursuant to Amendment No. 1, Gossamer made a payment to the Company of $15.0 million on May 12, 2020. For the year ended December 31, 2020, the Company recognized revenue of $15.0 million based on the terms of Amendment No. 1. Gossamer is responsible for the development and commercialization of the licensed products, and a joint development committee has been formed to oversee the development and manufacturing activities related to the licensed products. Under the terms of the Gossamer License Agreement and as amended by Amendment No. 1 (collectively, the “Amended Gossamer License Agreement”), Gossamer is obligated to use its commercially reasonable efforts to develop and commercialize licensed products in the United States, two major European countries and Japan for at least one of the initial indications. The Amended Gossamer License Agreement includes an exclusivity provision that prohibits the Company from developing, manufacturing or commercializing, and prohibits Gossamer from clinically developing or commercializing certain HIF stabilizing compounds other than as permitted in the Amended Gossamer License Agreement. Under the terms of the Amended Gossamer License Agreement, the Company is eligible to receive up to $40.0 million in approval milestone payments related to indications in ulcerative colitis and Crohn’s disease, and up to $50.0 million in sales milestone payments. The Company is also eligible to receive the tiered royalties on sales of licensed products from percentages ranging from a low-single-digit to mid-single-digit, subject to certain customary reductions. In addition, under certain circumstances, in lieu of receiving the foregoing milestone payments and royalties, the Company may elect to receive 20% of payments received by Gossamer and its stockholders (with some exclusions) in connection with Gossamer’s grant of a sublicense or other rights to the licensed products or if Gossamer undergoes a changes of control and the value of the transaction exceeds a certain value (provided that Gossamer can prevent the Company from exercising this option if the parent company of Gossamer is the entity undergoing the change of control, in which case each of the royalty rate percentages described above would automatically be increased by low single digits). Conversely, the Company could be required to accept such 20% of those payments if Gossamer agrees to pay the Company a certain minimum upon Gossamer and its stockholders being paid. Such amount may be reduced if the transaction includes pharmaceutical candidates or products or other named asset categories in addition to the licensed products. Gossamer determines there is a potential safety or efficacy issue with the licensed products. The Company may terminate the Amended Gossamer License Agreement if Gossamer institutes certain actions related to the licensed patents. Under certain termination circumstances, the Company would have worldwide rights to the terminated program. As of June 30, 2021, all development milestones, sales-based milestones and royalty payments within the Amended Gossamer License Agreement are constrained to the point where no transaction price has been allocated to the future milestones or royalty payments.

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2021
Restructuring And Related Activities [Abstract]
Restructuring	11. Restructuring In January 2021, the Company executed a realignment plan to reduce operating costs and better align its workforce with the needs of its ongoing business. The realignment plan reduced the Company’s workforce by seven employees, representing approximately 58% of the Company’s workforce. As a result, Total cash payments against the severance liability was approximately $0.4 million and $0.5 million in the three and six months ended June 30, 2021, respectively. The remaining liability as of June 30, 2021 was approximately $0.7 million and is included in accounts payable and accrued expenses in the condensed consolidated balance sheet. These amounts are expected to be substantially paid in cash by December 31, 2021.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings. While the outcome of any such proceedings cannot be predicted with certainty, as of June 30, 2021, the Company believes that the results of any such contingencies, either individually or in the aggregate, will not have a materially adverse effect on the Company’s results of operations or financial condition. An unfavorable resolution of one or more pending matters could have a materially adverse impact on the Company’s results of operations or financial condition in the future. Litigation Related to the Merger On June 30, 2021, a purported stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, captioned Dwayne Komurke v. Aerpio Pharmaceuticals Inc., et al The Komurke complaint alleges, among other things, that the Merger consideration is inadequate and that the Company’s proxy statement filed with the SEC on June 21, 2021 in connection with the Merger (the “preliminary proxy statement”), is materially incomplete and misleading by allegedly failing to disclose in violation of Section 14(a) and Section 20(a) of the Exchange Act, as well as Rule 14a-9 promulgated thereunder, certain allegedly material information, including (i) the process leading up to the Merger; (ii) certain financial projections prepared by the Company’s management and summarized in the preliminary proxy statement; and (iii) certain inputs and assumptions used in the financial analyses conducted by Ladenburg in connection with rendering its fairness opinion to the Company’s Board of Directors. The Komurke complaint asserts claims for breach of fiduciary duty against the Company’s Board of Directors; aiding and abetting breaches of fiduciary duty of the Company, Merger Sub and Aadi; violations of Section 14(a) and Rule 14a-9 against all defendants; and violations of Section 20(a) against the Company’s Board of Directors. The relief sought in the Komurke complaint includes equitable relief, including among other things, to enjoin the consummation of the Merger, to rescind the Merger Agreement, to the extent already implemented, or to recover rescissory damages, to direct the defendants to commence a new sale process, to direct the defendants to disseminate a proxy statement that includes certain additional and allegedly material information, to direct the defendants to account to plaintiff for all alleged damages suffered as a result of their alleged wrongdoing and to award plaintiff the cost of the stockholder complaint, including reasonable attorneys’ and expert fees. On July 6, 2021, a purported stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, captioned Matthew Whitfield v. Aerpio Pharmaceuticals Inc., et al On July 6, 2021, a purported stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, captioned Robin Odach v. Aerpio Pharmaceuticals Inc., et al., Case No. 1:21-cv-05802 (referred to as the “ Odach complaint”), naming the Company and the Company ’s Board of Directors , as of the date of the Merger Agreement , as defendants. The Odach complaint alleges, among other things, that the preliminary proxy statement contains allegedly material misstatements and omissions, including by failing to disclose ( i ) the basis for certain assumptions underlying the Company’s management’s financial projections for Aadi, (ii) certain inputs used in a discounted cash flow analysis performed by Ladenburg, and (iii) certain information concerning the Company’s second financial advisor. The Odach complaint asserts claims for violations of Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder against all defendants, and violations of Section 20(a) of the Exchange Act against the Company’s Board of Directors. The Odach complaint seeks, among other things: an injunction enjoining consummation of the Merger, rescissory relief, costs of the action, including plaintiff’s attorneys’ fees and experts’ fees, and any other relief the court may deem just and proper. On July 12, 2021, a purported stockholder of the Company filed a complaint in the United States District Court for the Eastern District of New York, captioned Miah v. Aerpio Pharmaceuticals, Inc., et al. On July 29, 2021, a purported stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, captioned Weir v. Aerpio Pharmaceuticals, Inc., et al. On August 2, 2021, a purported stockholder of the Company filed a complaint in the United States District Court for the District of Delaware, captioned Carlisle v. Aerpio Pharmaceuticals, Inc., et al. The Company’s Board of Directors has also received a demand letter from a purported stockholder of the Company, requesting certain books and records of the Company concerning the Merger pursuant to Section 220 of the Delaware General Corporation Law (referred to as the “books and records demand”). The Company cannot predict the outcome of the books and records demand, or other similar demands that may be made in the future, nor can the Company predict the amount of time and expense that may be required to resolve any such demands or resulting litigation. If additional similar complaints are filed, absent new or significantly different allegations, the Company will not necessarily disclose such additional filings.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Securities and Exchange Commission (“SEC”) regulations and include all of the information and disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP” or “GAAP”) for interim financial reporting, and, in the opinion of management include all adjustments necessary for a fair presentation of the results of operations, financial position, changes in stockholders’ equity and cash flows for each period presented. Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). All adjustments are of a normal and recurring in nature. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2021. The results of operations for the interim periods are not necessarily indicative of results of operations for a full year. The Company’s condensed consolidated financial statements are stated in U.S. Dollars.
Segment Information	Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the business of developing and commercializing proprietary therapeutics. All the assets and operations of the Company’s sole operating segment are located in the United States.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these condensed consolidated financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. Estimates are used in the following areas, among others: stock-based compensation expense, revenue recognition and income taxes. The Company’s results can also be affected by economic conditions, global health concerns, such as the COVID-19, and political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies, and changes in the prices of research studies, can have a significant effect on operations. While the Company maintains reserves for anticipated liabilities and carries various levels of insurance, the Company could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of all cash on hand and short-term certificates of deposits with original maturities of three months or less at the time of purchase. At June 30, 2021 and December 31, 2020, the Company’s cash equivalents are primarily held in money market funds. The Company maintains balances with its banks in excess of federally insured limits.
Revenue Recognition	Revenue Recognition At the inception of an arrangement, the Company evaluates if a counterparty to a contract is a customer, if the arrangement is within the scope of revenue from contracts with customers guidance and the term of the contract. The Company recognizes revenue when its customer obtains control of promised goods or services in a contract for an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. For contracts with customers, the Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. As part of the accounting for contracts with customers, the Company must develop assumptions that require judgment to determine the standalone selling price of each performance obligation identified in the contract. The Company then allocates the total transaction price to each performance obligation based on the estimated standalone selling prices of each performance obligation. The Company recognizes the amount of the transaction price as revenue that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. The Company enters into collaboration arrangements, under which it licenses certain rights to its intellectual property to third parties. The terms of these agreements may include payment to the Company of one or more of the following: nonrefundable upfront license fees; development, sale and commercial milestone payments and royalties on net sales of licensed products. Each of these types of payments are classified as license revenue except for revenue from royalties on net sales of licensed products, which are classified as royalty revenue, if received. For each collaboration agreement that results in revenues, the Company identifies all material promised goods and services, which may include a license to intellectual property, research and development activities and/or transition activities. Promised goods or services are considered to be separate performance obligations if they are distinct. In order to determine the transaction price to be allocated to each performance obligation, in addition to any upfront payment, the Company estimates the amount of variable consideration at the outset of the contract either utilizing the expected value or most likely amount method, depending on the facts and circumstances relative to the contract. The Company constrains (reduces) the estimates of variable consideration such that it is probable that a significant reversal of previously recognized revenue will not occur throughout the life of the contract. When determining if variable consideration should be constrained, management considers whether there are factors outside the Company’s control that could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period as required. Once the estimated transaction price is established, amounts are allocated to the performance obligations that have been identified. The transaction price is generally allocated to each separate performance obligation on a relative standalone selling price basis. The Company must develop assumptions that require judgment to determine the standalone selling price (“SSP”) in order to account for these agreements. To determine the standalone selling price the Company’s assumptions may include (i) assumptions regarding the probability of obtaining marketing approval for the drug candidate; (ii) estimates regarding the timing of and the expected costs to develop and commercialize the drug candidate; (iii) estimates of future cash flows from potential product sales with respect to the drug candidate; and (iv) appropriate discount and tax rates. Standalone selling prices used to perform the initial allocation are not updated after contract inception. The Company does not include a financing component to its estimated transaction price at contract inception unless it estimates that certain performance obligations will not be satisfied within one year. Upfront License and Amendment License Fees: If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from nonrefundable, upfront (or one-time) license and amendment license fees based on the relative value prescribed to the license compared to the total value of the arrangement. The revenue is recognized when the cash is received or when the license is transferred to the collaborator and the collaborator is able to use and benefit from the license. For licenses that are not distinct from other obligations identified in the arrangement, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. If the combined performance obligation is satisfied over time, the Company applies an appropriate method of measuring progress for purposes of recognizing revenue from nonrefundable, license fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Development Milestone Payments: Depending on facts and circumstances, the Company may conclude it is appropriate to include the milestone in the estimated transaction price using the most likely amount method or it is appropriate to fully constrain the milestone. A milestone payment is included in the transaction price in the reporting period the Company concludes that it is probable that recording revenue in the period will not result in a significant reversal in amounts recognized in future periods. The Company may record revenues from certain milestones in a reporting period before the milestone is achieved if the Company concludes that achievement of the milestone is probable and that recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods. The Company records a corresponding contract asset when this conclusion is reached. Milestone payments that have not been included in the transaction price to date are fully constrained. These milestones remain fully constrained until the Company concludes that achievement of the milestone is probable and recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods. The Company re-evaluates the probability of achievement of such development milestones and any related constraint each reporting period. The Company adjusts its estimate of the overall transaction price, including the amount of collaborative revenue that it has recorded, if necessary. Sales-based Milestone and Royalty Payments: The Company’s collaborators may be required to pay the Company sales-based milestone payments or royalties on future sales of commercial products. The Company recognizes revenues related to sales-based milestone and royalty payments upon the later to occur of (i) achievement of the collaborator’s underlying sales or (ii) satisfaction of any performance obligation(s) related to these sales, in each case assuming the license to the Company’s intellectual property is deemed to be the predominant item to which the sales-based milestones and/or royalties relate.
Other Income	Other Income Other income represents reimbursed internal and external qualified expenses, per the terms of the U.S. Government operating through Medical Technology Enterprise Consortium (“MTEC”) The reimbursable qualified expenses were incurred in conjunction with the RESCUE trial and the potential of subcutaneous razuprotafib for the prevention and treatment of ARDS in adult patients with moderate to severe COVID-19. The Company recorded $0.4 million and $1.5 million as other income during the three and six months ended June 30, 2021, respectively. Other income is recorded, and costs are generally reimbursed, in the period the internal or external qualified clinical trial expenses are incurred, and paid, by the Company.
Grant Income	Grant Income Grant income is recognized as earned based on contract work performed.
Research and Development	Research and Development Research and development costs are expensed as incurred. Research and development expense consists of (i) employee-related expenses, including salaries, benefits, travel and stock-based compensation expense; (ii) external research and development expenses incurred under arrangements with third parties, such as contract research organizations and consultants; (iii) the cost of acquiring, developing and manufacturing clinical study materials; and (iv) costs associated with clinical, preclinical and regulatory activities. The Company enters into consulting, research, and other agreements with commercial firms, researchers, universities and others for the provision of goods and services. Under such agreements, the Company may pay for services on a monthly, quarterly, project or other basis. Such arrangements are generally cancellable upon reasonable notice and payment of costs incurred. Costs are considered incurred based on an evaluation of the progress to completion of specific tasks under each contract using information and data provided to the Company by its clinical sites and vendors. These costs consist of direct and indirect costs associated with specific projects, as well as fees paid to various entities that perform certain research on behalf of the Company.
Patents	Patents Costs incurred in connection with the application for and issuances of patents are expensed as incurred.
Income Taxes	Income Taxes Income taxes are recorded in accordance with ASC Topic 740, Income Taxes . The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position, as well as consideration of the available facts and circumstances. As of June 30, 2021 and December 31, 2020, the Company does not have any uncertain tax positions. The Company recognizes interest and penalties related to uncertain tax positions, if any exist, in income tax expense.
Net and Comprehensive (Loss) Income per Share Attributable to Common Stockholders	Net and Comprehensive (Loss) Income per Share Attributable to Common Stockholders The Company’s basic net and comprehensive (loss) income per share attributable to common stockholders is calculated by dividing the net and comprehensive (loss) income by the weighted average number of shares of common stock outstanding for the period. The diluted net and comprehensive (loss) income per share attributable to common stockholders is computed by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with ASC Topic 718, Compensation – Stock Compensation Due to the historical lack of a public market for the trading of the Company’s common stock and a lack of company-specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. The computation of expected volatility is based on the historical volatility of a representative group of companies with similar characteristics to the Company, including stage of product development and life science industry focus. The Company believes the group selected has sufficient similar economic and industry characteristics and includes companies that are most representative of the Company. The Company uses the simplified method as prescribed by the SEC Staff Accounting Bulletin No. 107, Share-Based Payment Compensation expense related to awards to employees is calculated on a straight-line basis by recognizing the grant date fair value over the associated service period of the award, which is generally the vesting term.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts payable and accrued expenses. The Company values cash equivalents using quoted market prices. The fair value of accounts payable and accrued expenses approximates its carrying value because of its short-term nature. The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. ASC Topic 820, Fair Value Measurements and Disclosures Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The three levels of the fair value hierarchy are described below: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date • Level 2 – Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly • Level 3 – Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable To the extent that a valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. There were no transfers within the fair value hierarchy during the three or six months ended June 30, 2021 or 2020. The assets of the Company measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, are summarized below: Fair Value Measurements Using Level 1 Level 2 Level 3 Total June 30, 2021 Assets: Cash and cash equivalents $ 36,816,128 $ — $ — $ 36,816,128 Total assets $ 36,816,128 $ — $ — $ 36,816,128 December 31, 2020 Assets: Cash and cash equivalents $ 42,604,935 $ — $ — $ 42,604,935 Total assets $ 42,604,935 $ — $ — $ 42,604,935
Concentrations of Credit Risk and Off-Balance Sheet Risk	Concentrations of Credit Risk and Off-Balance Sheet Risk Cash and cash equivalents are the only financial instruments that potentially subject the Company to concentrations of credit risk. At June 30, 2021 and December 31, 2020, the Company maintains its cash and cash equivalents with high-quality, accredited financial institutions and, accordingly, such funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk, such as foreign currency exchange contracts, option contracts or other hedging arrangements.
Comprehensive (Loss) Income	Comprehensive (Loss) Income Comprehensive (loss) income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, if any. Comprehensive income was recognized for the three and six months ended June 30, 2020 as a result of the $15.0 million received from Gossamer for Amendment No. 1 during the three months ended June 30, 2020.
Furniture and Equipment	Furniture and Equipment Furniture and equipment is stated at cost, less accumulated depreciation. Furniture and equipment is depreciated using the straight-line method over the estimated useful lives of the assets, generally three to seven years. Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors: operating losses, unused capacity, market value declines, and technological obsolescence. Recorded values of asset groups of furniture and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale). During the three and six months ended June 30, 2021, the Company disposed of all furniture and equipment. A loss on the disposal of all furniture and equipment of $93,285 was recorded in general and administrative expenses during the three and six months ended June 30, 2021. No similar loss or disposal was recorded during 2020.
Leases	Leases At the inception of an arrangement the Company determines whether the arrangement is or contains a lease based on the circumstances present. All leases with a term greater than one year are recognized on the condensed consolidated balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the condensed consolidated balance sheet leases with terms of one-year or less if entered into. Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.
Recent Accounting Pronouncements	Recent Accounting Pronouncements No new accounting pronouncement have been recently issued or newly effective which would have or be expected to have a material impact on the Company’s condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Schedule of Assets Measured on Recurring Basis	The assets of the Company measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, are summarized below: Fair Value Measurements Using Level 1 Level 2 Level 3 Total June 30, 2021 Assets: Cash and cash equivalents $ 36,816,128 $ — $ — $ 36,816,128 Total assets $ 36,816,128 $ — $ — $ 36,816,128 December 31, 2020 Assets: Cash and cash equivalents $ 42,604,935 $ — $ — $ 42,604,935 Total assets $ 42,604,935 $ — $ — $ 42,604,935

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2021
Payables And Accruals [Abstract]
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses are as follows: June 30, December 31, 2021 2020 Restructuring accrual (see Note 11) $ 677,891 $ — Accounts payable 746,880 523,037 Professional fees 504,903 444,534 Accrued project costs — 328,463 Accrued retention bonus 225,960 — Accrued vacation 31,701 48,107 Accrued bonus — 428,683 Other 10,805 26,547 Total accounts payable and accrued expenses $ 2,198,140 $ 1,799,371

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity during the six months ended June 30, 2021: Stock Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Outstanding, January 1, 2021 4,642,240 $ 1.81 7.00 $ 358,209 Granted 287,963 1.48 Exercised (92,355 ) 0.87 Expired/cancelled (208,208 ) 2.02 Outstanding, June 30, 2021 4,629,640 $ 1.80 6.58 $ 2,196,969 Expected to vest, June 30, 2021 873,594 $ 1.65 1.50 $ 578,185 Options exercisable, June 30, 2021 3,756,046 $ 1.83 6.23 $ 1,618,784
Summary of Recognized Compensation Cost Related to Employee and Non-employee Stock-Based Compensation Activity	The Company recognized the following compensation cost related to employee and non-employee stock-based compensation activity for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 105,157 $ 176,110 $ 213,172 $ 371,899 General and administrative 452,066 132,231 689,807 263,909 Total $ 557,223 $ 308,341 $ 902,979 $ 635,808
Stock Options Valuation Assumptions	The calculation was based on the following assumptions. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (years) 5.00 5.50 5.08 5.92 Risk-free interest rate 0.85% 0.38% 0.77% 0.53% Expected volatility 74.57% 74.82% 74.47% 69.36% Expected dividend yield 0.00% 0.00% 0.00% 0.00%

Net and Comprehensive (Loss) _2

Net and Comprehensive (Loss) Income Per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net and Comprehensive (Loss) Income per Share	The following table sets forth the computation of the Company’s basic and diluted net and comprehensive (loss) income per share attributable to common stockholders for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net and comprehensive (loss) income attributable to common stockholders $ (4,407,935 ) $ 9,276,032 $ (8,849,674 ) $ 5,357,369 Denominator Weighted average common shares used in computing EPS Basic 47,372,581 40,588,004 47,327,701 40,588,004 Diluted 47,372,581 40,905,288 47,327,701 40,747,960 Basic and diluted EPS $ (0.09 ) $ 0.23 $ (0.19 ) $ 0.13
Schedule of Weighted Average Common Stock Equivalents Excluded from Calculation of Basic and Diluted Net and Comprehensive (Loss) Income per Share	The following weighted average common stock equivalents were excluded from the calculation of basic and diluted net and comprehensive (loss) income per share attributable to common stockholders for the periods presented because including them would have had an anti-dilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Options to purchase common stock 1,594,647 3,846,560 1,611,297 4,094,423 Warrants to purchase common stock 550,000 600,000 550,000 600,000

Nature of Organization and Op_2

Nature of Organization and Operations - Additional Information (Detail)	May 16, 2021USD ($)	May 12, 2020USD ($)	Jan. 31, 2021Employee	May 31, 2020USD ($)	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Realignment plan reduced the company's workforce, number of employees | Employee			7
Realignment plan reduced the company's workforce, percentage			58.00%
Realignment plan, one-time employee related severance expenses					$ 1,200,000
One-time payment received		$ 15,000,000		$ 15,000,000
Cash and cash equivalents					$ 36,816,128	$ 42,604,935
Former Shareholders of Aadi [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Expected ownership percentage on common stock	29.60%
Company Shareholders (immediately prior to closing of the Merger) [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Expected ownership percentage on common stock	14.70%
PIPE Investors [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Expected ownership percentage on common stock	55.70%
Merger Agreement [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of acquisition agreement	May 16, 2021
Threshold minimum cash and cash equivalents balance	$ 10,000,000
Termination fees	$ 2,000,000
Merger Agreement [Member] | Current Shareholders of Aadi [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Ownership percentage of combined company upon closing of merger	66.80%
Merger Agreement [Member] | Current Shareholders of Aerpio [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Ownership percentage of combined company upon closing of merger	33.20%
Merger Agreement [Member] | Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Out-of-pocket fees and expenses	$ 750,000
Merger Agreement [Member] | Subscription Agreements [Member] | Private Investment in Public Equity [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Aggregate proceeds from issuance of common stock	$ 155,000,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)Segment	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of operating segment | Segment			1
Uncertain tax positions	$ 0		$ 0		$ 0
Comprehensive income recognized		$ 15,000,000		$ 15,000,000	$ 15,000,000
Revenue, Product and Service [Extensible Enumeration]	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember
General and Administrative Expense [Member]
Summary Of Significant Accounting Policies [Line Items]
Loss on disposition of furniture and equipment	$ 93,285	$ 0	$ 93,285	$ 0
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Furniture and equipment estimated useful lives			3 years
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Furniture and equipment estimated useful lives			7 years
US Government Insured Loan Program [Member] | Medical Technology Enterprise Consortium [Member]
Summary Of Significant Accounting Policies [Line Items]
Clinical trial discontinued as other income	$ 400,000	$ 0	$ 1,500,000	$ 0

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Assets Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 36,816,128	$ 42,604,935
Total assets	36,816,128	42,604,935
Level 1 [Member]
Assets:
Cash and cash equivalents	36,816,128	42,604,935
Total assets	$ 36,816,128	$ 42,604,935

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Detail) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Payables And Accruals [Abstract]
Restructuring accrual (see Note 11)	$ 677,891
Accounts payable	746,880	$ 523,037
Professional fees	504,903	444,534
Accrued project costs		328,463
Accrued retention bonus	225,960
Accrued vacation	31,701	48,107
Accrued bonus		428,683
Other	10,805	26,547
Total accounts payable and accrued expenses	$ 2,198,140	$ 1,799,371

Common Stock - Additional Infor

Common Stock - Additional Information (Detail) - USD ($)	Oct. 14, 2019	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Equity [Abstract]
Common stock, shares authorized		300,000,000	300,000,000	300,000,000
Common stock, par value		$ 0.0001	$ 0.0001	$ 0.0001
Dividends common stock declared or paid			$ 0
Warrants outstanding		550,000	550,000	600,000
Number of warrants issued to purchase common stock	600,000
Warrants exercise price per share	$ 0.486
Warrants vesting period	6 months
Warrants expiration date			Oct. 24, 2024
Number of warrants exercised		50,000	50,000

Preferred Stock - Additional In

Preferred Stock - Additional Information (Detail) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Temporary Equity Disclosure [Abstract]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended			3 Months Ended		6 Months Ended
	Jan. 31, 2021	May 31, 2019	Mar. 31, 2017	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jan. 01, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase common stock, granted						287,963
Unrecognized compensation cost related to stock options				$ 804,852		$ 804,852
Weighted average period expected to be recognized						1 year 6 months
Share-based compensation arrangement by share-based payment award, number of shares issued				42,016		83,410
Share-based compensation common stock fair market value				$ 1.69
Stock-based compensation expense				557,223	$ 308,341	$ 902,979	$ 635,808
Weighted-average fair value of options granted						$ 0.90	$ 0.43
Research and development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense				105,157	176,110	$ 213,172	$ 371,899
General and Administrative Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense				452,066	$ 132,231	689,807	$ 263,909
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation common stock fair market value						1.03
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation common stock fair market value						$ 2.05
Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period						48 months
Stock Option [Member] | General and Administrative Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense				381,059		$ 565,402
Stock Awards [Member] | General and Administrative Expense [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense				$ 71,007		$ 124,405
2017 Stock Option and Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares available for issuance			4,600,000					1,890,052
Percentage applied to the outstanding shares as annual increase in number of shares authorized for issuance	4.00%		4.00%
2017 Stock Option and Incentive Plan [Member] | Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares available for issuance				5,324,959		5,324,959			3,634,905
Term of options to be granted						10 years
Shares issued for special retention grant		2,419,050
Options to purchase common stock, granted				216,535	260,720	287,963	962,720
2017 Stock Option and Incentive Plan [Member] | Stock Option [Member] | One-year Anniversary [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage						25.00%
2017 Stock Option and Incentive Plan [Member] | Stock Option [Member] | First Installment [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		50.00%
Option, vesting date		Jun. 30, 2020
2017 Stock Option and Incentive Plan [Member] | Stock Option [Member] | Second Installment [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting percentage		50.00%
Option, vesting date		Jun. 30, 2021

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares, Outstanding at beginning balance | shares	4,642,240
Shares, Granted | shares	287,963
Shares, Exercised | shares	(92,355)
Shares, Expired/cancelled | shares	(208,208)
Shares, Outstanding at ending balance | shares	4,629,640	4,642,240
Shares, Expected to vest | shares	873,594
Shares, Options exercisable | shares	3,756,046
Weighted Average Exercise Price, Outstanding at beginning balance | $ / shares	$ 1.81
Weighted Average Exercise Price, Granted | $ / shares	1.48
Weighted Average Exercise Price, Exercised | $ / shares	0.87
Weighted Average Exercise Price, Expired/cancelled | $ / shares	2.02
Weighted Average Exercise Price, Outstanding at ending balance | $ / shares	1.80	$ 1.81
Weighted Average Exercise Price, Expected to vest | $ / shares	1.65
Weighted Average Exercise Price, Options exercisable | $ / shares	$ 1.83
Weighted Average Remaining Contractual Term, Outstanding	6 years 6 months 29 days	7 years
Weighted Average Remaining Contractual Term, Expected to vest	1 year 6 months
Weighted Average Remaining Contractual Term, Options exercisable	6 years 2 months 23 days
Aggregate Intrinsic Value, Outstanding | $	$ 2,196,969	$ 358,209
Aggregate Intrinsic Value, Expected to vest | $	578,185
Aggregate Intrinsic Value, Options exercisable | $	$ 1,618,784

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Recognized Compensation Cost Related to Employee and Non-employee Stock-Based Compensation Activity (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 557,223	$ 308,341	$ 902,979	$ 635,808
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	105,157	176,110	213,172	371,899
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 452,066	$ 132,231	$ 689,807	$ 263,909

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options Valuation Assumptions (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected term (years)	5 years	5 years 6 months	5 years 29 days	5 years 11 months 1 day
Risk-free interest rate	0.85%	0.38%	0.77%	0.53%
Expected volatility	74.57%	74.82%	74.47%	69.36%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Current income tax expense or benefit	$ 0	$ 0	$ 0	$ 0
Deferred income tax expense or benefit	$ 0	$ 0	$ 0	$ 0

Net and Comprehensive (Loss) _3

Net and Comprehensive (Loss) Income Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net and Comprehensive (Loss) Income Per Share (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net and comprehensive (loss) income attributable to common stockholders	$ (4,407,935)	$ 9,276,032	$ (8,849,674)	$ 5,357,369
Weighted average number of common shares used in computing net (loss) income per share attributable to common stockholders
Basic	47,372,581	40,588,004	47,327,701	40,588,004
Diluted	47,372,581	40,905,288	47,327,701	40,747,960
Basic and diluted	$ (0.09)	$ 0.23	$ (0.19)	$ 0.13

Net and Comprehensive (Loss) _4

Net and Comprehensive (Loss) Income Per Share Attributable to Common Stockholders - Schedule of Weighted Average Common Stock Equivalents Excluded from Calculation of Basic and Diluted Net and Comprehensive (Loss) Income per Share (Detail) - Weighted Average [Member] - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total amount of anti-dilutive securities excluded from computation of earnings per share	1,594,647	3,846,560	1,611,297	4,094,423
Warrants to Purchase Common Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total amount of anti-dilutive securities excluded from computation of earnings per share	550,000	600,000	550,000	600,000

Employee Stock Purchase Plan -

Employee Stock Purchase Plan - Additional Information (Detail) - shares	Jun. 20, 2018	Jun. 30, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares outstanding		4,629,640	4,642,240
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares outstanding		0	0
Common Stock [Member] | Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares available for issuance	300,000
Maximum number of shares provided for issuance	350,000	350,000
Percentage of annual increase in number of shares reserved for issuance	1.00%

License Agreement - Additional

License Agreement - Additional Information (Detail) - USD ($)	May 12, 2020	May 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue From Contract With Customer [Abstract]
Maximum amount of milestone payments eligible to receive under license agreement					$ 40,000,000
Maximum amount of sales milestone payments eligible to receive under license agreement					$ 50,000,000
Payment received from license agreement	$ 15,000,000	$ 15,000,000
Revenue recognized				$ 15,000,000		$ 15,000,000	$ 15,000,000
Revenue, Product and Service [Extensible Enumeration]			us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember	us-gaap:LicenseMember
Percentage of payments received					20.00%

Restructuring - Additional Info

Restructuring - Additional Information (Detail)	1 Months Ended	3 Months Ended	6 Months Ended
	Jan. 31, 2021Employee	Jun. 30, 2021USD ($)	Jun. 30, 2021USD ($)
Restructuring Cost And Reserve [Line Items]
Realignment plan, number of employees reduced in workforce | Employee	7
Realignment plan, number of employees reduced by percentage on workforce	58.00%
Realignment plan, employee severance expense			$ 1,200,000
Remaining liability related to severance		$ 677,891	677,891
Accounts Payable and Accrued Expenses [Member]
Restructuring Cost And Reserve [Line Items]
Remaining liability related to severance		700,000	700,000
Workforce Reduction [Member]
Restructuring Cost And Reserve [Line Items]
Realignment plan, number of employees reduced in workforce | Employee	7
Realignment plan, number of employees reduced by percentage on workforce	58.00%
Realignment plan, employee severance expense			1,200,000
Cash payments against severance liability		$ 400,000	$ 500,000