Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 04, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Entity Registrant Name | CATABASIS PHARMACEUTICALS INC | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2020 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | CATB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 23,417,006 | ||
Entity Public Float | $ 101,269,279 | ||
Entity Central Index Key | 0001454789 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 24,930 | $ 9,899 |
Short-term investments | 20,000 | 26,345 |
Prepaid expenses and other current assets | 1,395 | 2,714 |
Total current assets | 46,325 | 38,958 |
Right-of-use asset | 966 | 2,349 |
Other assets | 165 | 473 |
Total assets | 47,456 | 41,780 |
Current liabilities: | ||
Accounts payable | 1,544 | 1,197 |
Accrued expenses | 4,197 | 2,610 |
Current portion of operating lease liabilities | 649 | 1,225 |
Total current liabilities | 6,390 | 5,032 |
Long-term portion of operating lease liabilities | 397 | 1,028 |
Total liabilities | 6,787 | 6,060 |
Commitments (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized and no shares issued and outstanding | ||
Common stock, $0.001 par value per share, 150,000,000 shares authorized; 20,084,337 and 12,433,600 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 20 | 12 |
Additional paid-in capital | 301,546 | 259,305 |
Accumulated deficit | (260,897) | (223,597) |
Total stockholders' equity | 40,669 | 35,720 |
Total liabilities and stockholders' equity | $ 47,456 | $ 41,780 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 20,084,337 | 12,433,600 |
Common stock, outstanding (in shares) | 20,084,337 | 12,433,600 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses: | ||
Research and development | $ 25,590 | $ 18,317 |
General and administrative | 11,845 | 8,771 |
Total operating expenses | 37,435 | 27,088 |
Loss from operations | (37,435) | (27,088) |
Other income (expense): | ||
Interest and investment income | 236 | 845 |
Other expense, net | (101) | (50) |
Total other income, net | 135 | 795 |
Net loss | $ (37,300) | $ (26,293) |
Net loss per share - basic and diluted (in dollars per share) | $ (2.03) | $ (2.35) |
Weighted-average common shares outstanding used in net loss per share - basic and diluted (in shares) | 18,351,470 | 11,199,057 |
Consolidated Statements Compreh
Consolidated Statements Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements Comprehensive Loss | ||
Net loss | $ (37,300) | $ (26,293) |
Other comprehensive income: | ||
Gain on short-term investments | 4 | |
Total other comprehensive income: | 4 | |
Comprehensive loss | $ (37,300) | $ (26,289) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Gain | Total |
Balance at Dec. 31, 2018 | $ 7 | $ 232,243 | $ (197,304) | $ (4) | $ 34,942 |
Balance (in shares) at Dec. 31, 2018 | 7,141,996 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Issuance of common stock and warrants in public offerings, net of issuance costs | $ 4 | 18,501 | 18,505 | ||
Issuance of common stock and warrants in public offerings, net of issuance costs (in shares) | 4,000,000 | ||||
Issuance of common stock for at-the-market offerings, net of issuance costs | $ 1 | 6,995 | 6,996 | ||
Issuance of common stock for at-the-market offerings, net of issuance costs of (in shares) | 1,282,904 | ||||
Proceeds from exercises of warrants | 54 | 54 | |||
Proceeds from exercises of warrants (in shares) | 8,700 | ||||
Stock-based compensation expense | 1,512 | 1,512 | |||
Unrealized gain on short-term investments | $ 4 | 4 | |||
Net loss | (26,293) | (26,293) | |||
Balance at Dec. 31, 2019 | $ 12 | 259,305 | (223,597) | $ 35,720 | |
Balance (in shares) at Dec. 31, 2019 | 12,433,600 | 12,433,600 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Issuance of common stock and warrants in public offerings, net of issuance costs | $ 5 | 24,554 | $ 24,559 | ||
Issuance of common stock and warrants in public offerings, net of issuance costs (in shares) | 5,290,000 | ||||
Issuance of common stock for at-the-market offerings, net of issuance costs | $ 3 | 16,267 | 16,270 | ||
Issuance of common stock for at-the-market offerings, net of issuance costs of (in shares) | 2,353,737 | ||||
Proceeds from exercises of warrants | 31 | 31 | |||
Proceeds from exercises of warrants (in shares) | 7,000 | ||||
Stock-based compensation expense | 1,389 | 1,389 | |||
Net loss | (37,300) | (37,300) | |||
Balance at Dec. 31, 2020 | $ 20 | $ 301,546 | $ (260,897) | $ 40,669 | |
Balance (in shares) at Dec. 31, 2020 | 20,084,337 | 20,084,337 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Issuance of common stock and warrants in public offering | ||
Stock issuance costs | $ 1.9 | $ 1.5 |
ATM | ||
Stock issuance costs | $ 0.5 | $ 0.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net loss | $ (37,300) | $ (26,293) |
Reconciliation of net loss to net cash used in operating activities: | ||
Non-cash items | 1,448 | 1,594 |
Changes in assets and liabilities: | ||
Prepaid expenses and other current assets | 1,172 | (1,289) |
Other assets | 85 | |
Right-of-use asset-operating | 176 | (96) |
Accounts payable | 347 | (211) |
Accrued expenses | 1,587 | (205) |
Other liabilities | (69) | |
Net cash used in operating activities | (32,485) | (26,569) |
Investing activities | ||
Purchases of short-term investments | (62,777) | (155,197) |
Sales and maturities of short-term investments | 69,110 | 151,127 |
Purchases of property and equipment | (33) | (12) |
Net cash provided by (used in) investing activities | 6,300 | (4,082) |
Financing activities | ||
Proceeds from public offerings, net of issuance costs | 24,559 | 18,505 |
Proceeds from at-the-market offering, net of issuance costs | 16,270 | 7,061 |
Proceeds from exercise of common stock options and warrants | 31 | 54 |
Net cash provided by financing activities | 40,860 | 25,620 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14,675 | (5,031) |
Cash, cash equivalents and restricted cash, beginning of period | 10,376 | 15,407 |
Cash, cash equivalents and restricted cash, end of period | $ 25,051 | 10,376 |
Non-cash financing activities: | ||
At-the-market offering issuance costs included in current liabilities | $ 65 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2020 | |
Organization and Operations | |
Organization and Operations | 1. Organization and Operations The Company Catabasis Pharmaceuticals, Inc (the “Company”) is a biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics. Its mission is to bring hope with life-changing therapies to patients and families that are affected by rare diseases. On October 26, 2020, the Company announced that the Phase 3 PolarisDMD trial of the Company's previous lead product candidate, edasalonexent, for the treatment of Duchenne muscular dystrophy (DMD) did not meet its primary and secondary endpoints. Based on these results, the Company announced that it was stopping activities related to the development of edasalonexent, including the Company's ongoing open-label extension trial. On January 28, 2021, the Company acquired Quellis Biosciences, Inc ("Quellis"). The Company's lead product candidate, which was acquired in the Quellis acquisition, is QLS-215, a monoclonal antibody inhibitor of plasma kallikrein in preclinical development for the treatment of hereditary angioedema, or HAE, a rare, debilitating and potentially life-threatening disease. The Company was incorporated in the State of Delaware on June 26, 2008. Liquidity The Company has entered into various sales agreements with Cowen and Company LLC, (“Cowen”), pursuant to which the Company could issue and sell shares of common stock under at-the-market offering programs (the “ATM Programs”). Shares sold pursuant to these sales agreements were sold pursuant to shelf registration statements, one of which became effective on July 19, 2016 and which was replaced by a new shelf registration statement, which became effective May 22, 2019. The Company pays Cowen 3% of the gross proceeds from any common stock sold through these sales agreements. The Company currently has $27.9 million remaining available under its sales agreement. During the year ended December 31, 2020, the Company sold an aggregate of 2,353,737 shares of common stock pursuant to the ATM Programs, at an average price of $7.13 per share, for gross proceeds of $16.8 million, resulting in net proceeds of $16.3 million after deducting sales commissions and offering expenses. On January 30, 2020, the Company entered into an underwriting agreement with Oppenheimer & Co. Inc. relating to an underwritten public offering (the “January 2020 Financing”) of 5,290,000 shares of common stock at a price to the public of $5.00 per share. This resulted in gross proceeds of $26.5 million, and net proceeds of $24.6 million. On February 6, 2019, the Company entered into an underwriting agreement with Oppenheimer & Co. Inc. relating to an underwritten public offering (the “February 2019 Financing”) of 4,000,000 shares of common stock and accompanying warrants to purchase up to 2,000,000 shares of common stock, at a combined price to the public of $5.00 per unit, for gross proceeds of $20.0 million and net proceeds of $18.5 million. The Company is subject to a number of risks similar to other life science companies, including, but not limited to, successful discovery and development of its drug candidates, raising additional capital, development by its competitors of new technological innovations, protection of proprietary technology and regulatory approval and market acceptance of the Company's products. The Company has been primarily involved with research and development activities and has incurred operating losses and negative cash flows from operations since its inception. The Company anticipates that it will continue to incur significant operating losses for the next several years as it continues to develop its product candidates. As of December 31, 2020, the Company had an accumulated deficit of $260.9 million. The Company will require substantial additional capital to fund operations. The Company has not generated any product revenues and has financed its operations primarily through public offerings and private placements of its equity securities. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company's business, results of operations, and financial condition. As of December 31, 2020, the Company had available cash, cash equivalents and short-term investments of $44.9 million. Subsequent to December 31, 2020, the Company raised gross proceeds of $110.0 million, and net proceeds of $104.0 million, through the February 2021 Financing (as described below). As part of the Quellis acquisition and the February 2021 Financing, the Company issued 86,077 shares of Series X Preferred Stock, which upon stockholder approval can be converted to 86,077,000 shares of common stock. The terms of the Series X Preferred Stock include a cash redemption feature. The redemption feature provides that, if the Company’s common stockholders fail to approve the ability of the holders of the Series X Preferred Stock to convert their respective shares into common stock by July 28, 2021, the Company could, at the holder’s option, be required to make a redemption payment to the holders of Series X Preferred Stock based on the then fair value of the Company’s common stock underlying the redeemed Series X Preferred Stock significantly in excess of current liquidity. Based on precedent transactions and the terms of the Series X Preferred Stock, the Company believes that stockholders who are entitled to vote on the conversion proposal at the Company's 2021 Annual Meeting of Stockholders, which is scheduled for June 2, 2021, will vote to approve the proposal. However, as the vote of the Company’s common stockholders is outside of the control of the Company, there is substantial doubt about its ability to continue as a going concern for at least 12 months following the issuance of these consolidated financial statements. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Catabasis Securities Corporation. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. The Company utilizes certain estimates to record expenses relating to research and development contracts. These contract estimates, which are primarily related to the length of service of each contract and the amount of service provided as of each measurement date, are determined by the Company based on input from internal project management, as well as from third-party service providers. Off-Balance Sheet Risk and Concentrations of Credit Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that subject the Company to credit risk primarily consist of cash, cash equivalents, short-term investments and restricted cash. The primary objectives for the Company's investment portfolio are the preservation of capital and the maintenance of liquidity. The Company's investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. Cash and Cash Equivalents and Restricted Cash The Company considers highly liquid investments with a maturity of three months or less or reverse repurchase agreements with a maturity period of one business day or less when purchased to be cash equivalents. Cash equivalents, which consist of money market funds, corporate debt securities and reverse repurchase agreements are stated at fair value. Cash and cash equivalents consist of the following (in thousands): December 31, 2020 2019 Cash $ 1,931 $ 2,530 Money market fund 22,999 5,432 Corporate debt securities — 1,937 Total $ 24,930 $ 9,899 The reconciliation of cash, cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amount shown in the statement of cash flows is as follows (in thousands): December 31, 2020 2019 Cash and cash equivalents $ 24,930 $ 9,899 Restricted cash (1) 121 477 Total $ 25,051 $ 10,376 (1) Included in prepaid expenses and other current assets and other assets. Short-Term Investments The Company classifies all corporate debt securities with a remaining maturity of greater than three months and reverse repurchase agreements with a remaining maturity of greater than one business day at the time of purchase as short-term investments. Short-term investments are recorded at fair value, with the unrealized gains and losses reported in other comprehensive loss. The amortized cost of debt securities is adjusted for the amortization of premiums and accretion of discounts to maturity. Such amortization is included in interest and investment income. Realized gains and losses, interest, dividends and declines in value judged to be other-than-temporary are included in interest and investment income. The cost of securities sold is based on the specific identification method for purposes of recording realized gains and losses. To determine whether an other-than-temporary impairment exists, the Company considers whether it has the ability and intent to hold the investment until a market price recovery, and whether evidence indicating the recoverability of the cost of the investment outweighs evidence to the contrary. Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reflected in the balance sheets for cash equivalents, restricted cash, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values at December 31, 2020 and 2019, due to their short-term nature. There have been no changes to the valuation methods during the years ended December 31, 2020 and 2019. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of assets or liabilities between levels during the year ended December 31, 2020 and 2019. The Company’s investment portfolio may include fixed income securities that do not always trade on a daily basis. As a result, the pricing services used by the Company apply other available information as applicable through processes such as benchmark yields, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. Impairment of Long-Lived Assets The Company continually evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. The Company has not recognized any significant impairment charges from inception through December 31, 2020. Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, stock-based compensation, consulting fees, fees paid for contract research services, the costs of laboratory equipment and facilities and other external costs. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are deferred. The deferred amounts are expensed as the related goods are delivered or the services are performed. Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with Accounting Standards Codification (“ASC”) Topic 718, Compensation—Stock Compensation ( “ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statements of operations based on their grant date fair values. For granted stock options, the Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the Company's common stock consistent with the expected term of the option, risk-free interest rates and expected dividend yields of the Company's common stock. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period. The Company expenses restricted stock awards based on the fair value of the award on a straight-line basis over the associated service period of the award. During the years ended December 31, 2020 and 2019, the Company recorded stock-based compensation expense for employee and non-employee stock options and restricted stock, which was allocated as follows in the statements of operations (in thousands): Year Ended December 31, 2020 2019 Research and development $ 599 $ 616 General and administrative 790 896 Total $ 1,389 $ 1,512 No related tax benefits were recognized for the years ended December 31, 2020 and 2019. Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the Company’s dilutive net loss per share calculation, stock options and warrants to purchase the Company's common stock were considered to be common stock equivalents but were excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive; therefore, basic and diluted net loss per share were the same for all periods presented. The following common stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Year Ended December 31, 2020 2019 Stock options 1,367,667 785,832 Common stock warrants 6,193,749 6,193,749 7,561,416 6,979,581 Income Taxes The Company provides deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the Company's financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. A valuation allowance is provided to reduce the deferred tax assets to the amount that will more likely than not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC Topic 740, Expenses—Income Taxes . 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. The Company did not have any significant uncertain tax positions for any periods presented. Segment Information Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker, the Company's chief executive officer, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business in one operating segment. The Company operates in one geographic segment. Comprehensive Loss Comprehensive loss 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. For the year ended December 31, 2019 the amount in accumulated other comprehensive loss were comprised of unrealized gains and losses on short-term investments. Leases Effective January 1, 2019, the Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets, current portion of lease obligations, and long-term lease obligations on the Company’s balance sheets. The Company does not currently hold any financing leases. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s facility leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s ROU lease assets also include any lease payments made and excludes lease incentives. If the Company’s facility lease includes options to terminate the lease which would affect the lease period when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments under facility leases are recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements - Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) . This standard includes amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and disclosure requirements of measurement uncertainty. This amendment was effective for annual reporting periods beginning after December 15, 2019. Adoption of the standard did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements - Not Yet Adopted From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). This standard requires a financial asset to be presented at amortized cost basis at the net amount expected to be collected. It also requires that credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. In November 2019, the FASB issued an amendment making this ASU effective for annual reporting periods beginning after December 15, 2022 for smaller reporting companies. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements as well as the timing of when this standard will be adopted. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Financial Instruments | 3. Financial Instruments The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value. Below is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands): As of December 31, 2020 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash and cash equivalents: Money market funds $ 22,999 $ — $ — $ 22,999 Short-term investments: Reverse repurchase agreements — 20,000 — 20,000 Total assets $ 22,999 $ 20,000 $ — $ 42,999 As of December 31, 2019 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash and cash equivalents: Money market funds $ 5,432 $ — $ — $ 5,432 Corporate debt securities — 1,937 — 1,937 Short-term investments: Commercial paper — 1,993 — 1,993 Corporate debt securities — 3,352 — 3,352 Reverse repurchase agreements — 21,000 — 21,000 Total assets $ 5,432 $ 28,282 $ — $ 33,714 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term Investments | |
Short-Term Investments | 4. Short-Term Investments The following table summarizes the short-term investments held at December 31, 2020 and 2019 (in thousands): Gross Unrealized Gross Unrealized Amortized Cost Gains Losses Fair Value December 31, 2020 Reverse repurchase agreements $ 20,000 $ — $ — $ 20,000 Total $ 20,000 $ — $ — $ 20,000 Gross Unrealized Gross Unrealized Amortized Cost Gains Losses Fair Value December 31, 2019 Commercial paper $ 1,993 $ — $ — $ 1,993 Corporate debt securities 3,352 — — 3,352 Reverse repurchase agreements 21,000 — — 21,000 Total $ 26,345 $ — $ — $ 26,345 The contractual maturities of all short-term investments held at December 31, 2020 and 2019 were one year or less. There were no short-term investments in an unrealized loss position at December 31, 2020. There were four short-term investments in an unrealized loss position at December 31, 2019, none of which had been in an unrealized loss position for more than 12 months. The aggregate fair value of these securities at December 31, 2019 was approximately $3.4 million. The Company did not hold any securities with other-than-temporary impairments at December 31, 2020 and 2019. Gross realized gains and losses on the sales of short-term investments are included in other income, net. Unrealized holding gains or losses for the period that have been included in accumulated other comprehensive income, as well as gains and losses reclassified out of accumulated other comprehensive income into other income, net were not material to the Company’s consolidated results of operations. During the years ended December 31, 2020 and 2019 all proceeds included in the Company's cash flows related to maturities of underlying securities. The gains on proceeds of maturities of short-term investments were not material to the Company’s consolidated results of operations for the years ended December 31, 2020 and 2019. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, December 31, 2020 2019 Accrued contracted research costs $ 1,726 $ 737 Accrued compensation 1,719 1,365 Accrued severance 396 — Accrued professional fees 356 370 Accrued other — 138 Total $ 4,197 $ 2,610 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Commitments | 6. Commitments In November 2019, the Company entered into a sublease for office space which was classified as an operating lease. At inception of the lease, the Company recognized a lease liability and right-of-use asset of approximately $1.7 million. The lease liability represents the present value of the remaining lease payments, discounted using the Company’s estimated incremental borrowing rate of 7.49%. The ROU asset represents the lease liability adjusted for any prepaid and accrued rent payments. Future minimum payments required under the non-cancelable operating leases as of December 31, 2020 are summarized as follows (in thousands): Period Ending December 31, Amount 2021 678 2022 438 Total lease payments $ 1,116 Less: imputed interest (70) Total operating lease liabilities $ 1,046 Rent expense was $0.8 million and $0.4 million for the years ended December 31, 2020 and 2019, respectively. Lease payments were $1.5 million and $1.4 million for the years ended December 31, 2020 and 2019, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 7. Stockholders’ Equity Preferred Stock As of December 31, 2020, the Company had 5,000,000 shares of preferred stock authorized for issuance, $0.001 par value per share, with none issued or outstanding. Preferred stock may be issued from time to time in one or more series, each series to have such terms as stated or expressed in the resolutions providing for the issue of such series adopted by the board of directors of the Company. Preferred stock which may be redeemed, purchased or acquired by the Company may be reissued except as otherwise provided by law. Common Stock Warrants February 2019 Warrants In the February 2019 Financing, the Company issued warrants to purchase 2,000,000 shares of common stock with an exercise price of $6.25 per share, which were immediately exercisable upon issuance and expire in February 2024. The terms of the warrants include certain provisions related to fundamental transactions, a cashless exercise provision in the event registered shares are not available, and do not include any mandatory redemption provisions. Therefore, the warrants have been classified in stockholders’ equity. Any changes to the fair value of the warrants will not be recognized so long as the warrants continue to be equity classified. As of December 31, 2020, warrants to purchase 1,991,300 shares that were issued in the February 2019 Financing were outstanding with a remaining contractual life of 3.1 years. June 2018 Warrants On June 19, 2018, the Company entered into an underwriting agreement with Oppenheimer & Co. Inc. relating to an underwritten public offering of 4,200,000 shares of the Company's common stock, par value $0.001 per share, and accompanying warrants to purchase up to 4,200,000 shares of common stock. The warrants have an exercise price of $12.00 per share, were immediately exercisable upon issuance and expire in June 2023. The terms of the warrants include certain provisions related to fundamental transactions, a cashless exercise provision in the event registered shares are not available and do not include any mandatory redemption provisions. Therefore, the warrants have been classified in stockholders’ equity. Any changes to fair value of the warrants will not be recognized so long as the warrants continue to be equity classified. As of December 31, 2020, all warrants related to this transaction were outstanding with a remaining contractual life of 2.5 years. Common Stock As of December 31, 2020, the Company had 150,000,000 shares of common stock authorized for issuance, $0.001 par value per share, with 20,084,337 shares issued and outstanding. The voting, dividend and liquidation rights of holders of common stock are subject to and qualified by the rights, powers and preferences of the holders of any outstanding preferred stock. Reserved for Future Issuance The Company has reserved for future issuance the following shares of common stock: December 31, December 31, 2020 2019 Warrants for the purchase of common stock 6,193,749 6,193,749 Options outstanding to purchase common stock 1,367,667 785,832 Options available for future issuance to purchase common stock 1,936,173 525,484 Shares reserved for the employee stock purchase plan 148,951 112,481 Total 9,646,540 7,617,546 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2020 | |
Stock Incentive Plans | |
Stock Incentive Plans | 8. Stock Incentive Plans Prior to the Company’s initial public offering in June 2015 (the “IPO”), the Company granted awards to eligible participants under its 2008 Equity Incentive Plan. In May 2015, the Company’s board of directors adopted and, in June 2015, the Company’s stockholders approved the 2015 Stock Incentive Plan (“2015 Plan”), which became effective immediately prior to the effectiveness of the IPO. Subsequent to the IPO, option grants are awarded to eligible participants only under the 2015 Plan. The 2015 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, stock appreciation rights and other stock-based awards. The Company’s employees, officers, directors and consultants and advisors are eligible to receive awards under the 2015 Plan. Terms of stock option agreements, including vesting requirements, are determined by the Company's board of directors, subject to the provisions of the applicable stock incentive plan. Options granted by the Company generally vest ratably over four years, with a one-year cliff, and options are exercisable from the date of grant for a period of ten years. For options granted through December 31, 2020, the exercise price or purchase price, as applicable, equaled the estimated fair value of the common stock as determined by the Company's board of directors on the date of grant. A summary of the Company’s stock option activity and related information for employees and non-employees follows: Weighted Average Weighted- Remaining Aggregate Average Exercise Contractual Intrinsic Value Shares Price Term (years) (in thousands) Outstanding at December 31, 2019 785,832 $ 16.48 8.13 $ 470 Granted 666,200 $ 5.69 Exercised (7,000) $ 4.39 Cancelled or forfeited (76,884) $ 14.65 Expired (481) $ 32.10 Outstanding at December 31, 2020 1,367,667 $ 11.38 8.13 $ — Vested and exercisable at December 31, 2020 504,171 $ 21.22 6.68 $ — The total intrinsic value of options exercised in the year ended December 31, 2020 was $29 thousand. There were no options exercised in the year ended December 31, 2019. The weighted-average grant date fair value of options granted to employees and non-employees for the years ended December 31, 2020 and 2019 was $3.81 and $3.25, respectively. At December 31, 2020, the total unrecognized compensation expense related to unvested stock option awards was $2.7 million. The Company expects to recognize that cost over a weighted-average period of approximately 2.7 years. Stock-Based Compensation Expense The fair value of stock options granted to employees and non-employees was estimated using the Black-Scholes option-pricing model based on the following assumptions: Year Ended December 31, 2020 2019 Weighted-average expected volatility 75.51 - 82.08 % 68.9 - 110.5 % Expected term (in years) 5.50 - 6.25 5.50 - 10.00 Risk-free interest rate 0.37 - 1.51 % 1.39 - 2.69 % Expected dividend yield 0 % 0 % Volatility Due to the lack of company-specific historical and implied volatility data of its common stock, the Company does not have relevant historical data to support its expected volatility. As such, the Company has used a weighted average of expected volatility based on the volatilities of a representative group of publicly traded biopharmaceutical companies. For purposes of identifying representative companies, the Company considered characteristics such as number of product candidates in early stages of product development, area of therapeutic focus, and length of trading history. The expected volatility was determined using an average of the historical volatilities of the representative group of companies for a period equal to the expected term of the option grant. The Company intends to continue to consistently apply this process using the same representative companies until a sufficient amount of historical information regarding the volatility of the Company's own share price becomes available or until circumstances change, such that the identified entities are no longer representative companies. In the latter case, more suitable, similar entities whose share prices are publicly available would be utilized in the calculation. Expected Term The Company uses the “simplified method” to estimate the expected term of stock option grants. Under this approach, the weighted-average expected life is presumed to be the average of the contractual term (ten years) and the vesting term (generally four years) of the Company's stock options, taking into consideration multiple vesting tranches. The Company utilizes this method due to lack of historical exercise data and the plain-vanilla nature of the Company's share-based awards. Risk-Free Rate The risk-free rate was based on the yield curve of United States Treasury securities with periods commensurate with the expected term of the options being valued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 9. Income Taxes For the years ended December 31, 2020 and 2019, the Company did not record a provision for federal or state income taxes as it has incurred cumulative net operating losses since inception. A reconciliation of the U.S. statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Federal income tax (benefit) at statutory rate 21.00 % 21.00 % Permanent differences Federal research and development credits and adjustments 2.78 2.42 State income tax, net of federal benefit 6.03 5.50 Other 0.37 0.49 Change in valuation allowance Effective income tax rate — % — % The Company's deferred tax assets consisted of the following (in thousands): Year Ended December 31, 2020 2019 Deferred tax assets Net operating loss carryforwards $ 65,373 $ 55,283 Tax credit carryforwards 9,273 8,030 Capitalized research and development 482 922 Capitalized legal expenses 1,070 1,073 Lease liability 284 639 Other differences 1,648 1,453 Total deferred tax assets 78,130 67,400 Deferred tax liabilities ROU asset Valuation allowance Net deferred tax assets $ — $ — The Company recorded an increase to the valuation allowance of $11.1 million during the year ended December 31, 2020 due primarily to the federal and state net operating losses and tax credits generated. The Company recorded an increase to the valuation allowance of $7.6 million during the year ended December 31, 2019 which was also primarily due to the federal and state net operating losses and tax credits generated. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. Due to the Company's history of losses and expectation of future losses, the deferred tax assets were fully offset by a valuation allowance at December 31, 2020 and 2019. As of December 31, 2020, the Company had approximately $240.1 million of federal and $236.7 million of state net operating loss respectively, which may be available to offset future taxable income. Federal net operating loss carryforwards of $150.5 million and state net operating loss carryforwards of $236.7 million will expire at various dates from 2023 through 2040. Federal net operating loss carryforwards of $89.6 can be carried forward indefinitely. The Company had approximately $7.4 million of federal and $2.4 million of state tax credit carryforwards available to reduce future tax liabilities as of December 31, 2020, which will expire at varying times through the year 2040. The Internal Revenue Code of 1986, as amended (the “Code”), provides for a limitation of the annual use of net operating losses and other tax attributes (such as research and development tax credit carryforwards) following certain ownership changes (as defined by the Code) that could limit the Company's ability to utilize these carryforwards. At this time, the Company has not completed a study to assess whether an ownership change under Section 382 of the Code has occurred, or whether there have been multiple ownership changes since the Company's formation, due to the costs and complexities associated with such a study. The Company may have experienced various ownership changes, as defined by the Code, as a result of past financing transactions. Accordingly, the Company's ability to utilize the aforementioned carryforwards may be limited. Additionally, U.S. tax laws limit the time during which these carryforwards may be applied against future taxes. Therefore, the Company may not be able to take full advantage of these carryforwards for federal or state income tax purposes. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law making several changes to the Internal Revenue Code. The changes include, but are not limited to: increasing the limitation on the amount of deductible interest expense, allowing companies to carryback certain net operating losses, and increasing the amount of net operating loss carryforwards that corporations can use to offset taxable income. The tax law changes in the Act did not have a material impact on the Company's income tax provision. As of December 31, 2020 and 2019, the Company did not have any significant unrecognized tax benefits. The Company had not accrued interest or penalties related to uncertain tax positions. The federal and state income tax returns are generally subject to tax examinations for the tax years ended December 31, 2017 through December 31, 2020. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state taxing authorities to the extent utilized in a future period. |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Defined Contribution Benefit Plan | |
Defined Contribution Benefit Plan | 10. Defined Contribution Benefit Plan The Company sponsors a 401(k) retirement plan, in which substantially all of its employees are eligible to participate. Participants may contribute a percentage of their annual compensation to this plan, subject to statutory limitations. The Company did not provide any contributions to this plan during the years ended December 31, 2020 or 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Subsequent Events | 11. Subsequent Events Agreement and Plan of Merger On January 28, 2021, the Company acquired Quellis. Under the terms of the Merger Agreement, the Company issued to the stockholders of Quellis 3,332,669 shares of the Company’s common stock, par value $0.001 per share, and 50,504 shares of newly designated Series X Preferred Stock (as described below) which had a conversion value on the closing date of $122.7 million. In addition, the Company assumed options granted under the Quellis stock option plan, a warrant to purchase 2,805 shares of Series X Preferred Stock at an exercise price of $341.70 per share, and a warrant to purchase 185,136 shares of the Company’s common stock at an exercise price of $0.35 per share, which warrants are exercisable until December 14, 2030. Stock Purchase Agreement On January 28, 2021, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with certain institutional and accredited investors (the “Investors”). Pursuant to the Purchase Agreement, the Company agreed to sell an aggregate of 35,573 shares of Series X Preferred Stock for gross proceeds of approximately $110.0 million (the “February 2021 Financing”). Series X Preferred Stock As a result of the above transactions, in 2021 the Company issued the following Series X Preferred Stock or warrants to purchase Series X Preferred Stock: Series X Common Stock Preferred Issuable Upon Shares Conversion (1) Outstanding shares issued in merger 50,504 50,504,000 Outstanding shares issued in February 2021 Financing 35,573 35,573,000 Warrants assumed in merger 2,805 2,805,000 Total 88,882 88,882,000 (1) Requires stockholder approval for conversion. Subject to stockholder approval, each share of Series X Preferred Stock is convertible into 1,000 shares of common stock. The Company is required to hold a stockholders’ meeting to submit the following matters to its stockholders for their consideration: (i) the approval of the conversion of the Series X Preferred Stock into shares of the Company’s common stock in accordance with Nasdaq Listing Rule 5635(a) (the “Conversion Proposal”) and (ii) if necessary or appropriate, the approval of an amendment to the certificate of incorporation of the Company to authorize sufficient shares of common stock for the conversion of the Series X Preferred Stock issued pursuant to the Merger Agreement and the Purchase Agreement (as described above) and/or to effectuate a reverse stock split the “Charter Amendment Proposal.” If the Company’s stockholders do not approve the conversion of the Series X Preferred Stock by July 28, 2021, then the holders of the Series X Preferred Stock are entitled to require the Company to make redemption payments at a price per share equal to the fair value of undelivered shares of common stock, defined as the last reported closing price of the Company’s common stock on the trading day on which notice of conversion is delivered to the Company. Using the closing price on March 4, 2021 of $2.87, if all currently outstanding Series X Preferred Stock was redeemed for cash, the Company would be required to make a payment of $247.0 million. The Company has insufficient liquidity to make such a payment, if required. Holders of Series X Preferred Stock are entitled to receive dividends on shares of Series X Preferred Stock equal, on an as-if-converted-to-common-stock basis, and in the same form as dividends actually paid on shares of the Company’s common stock. Except as otherwise required by law, the Series X Preferred Stock does not have voting rights. However, as long as any shares of Series X Preferred Stock are outstanding, the Company may not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series X Preferred Stock, (i) alter or change adversely the powers, preferences or rights given to the Series X Preferred Stock or alter or amend the Certificate of Designation that authorized the Series X Preferred Stock, amend or repeal any provision of, or add any provision to, the Company’s Certificate of Incorporation or bylaws, or file any articles of amendment, certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series X Preferred Stock, (ii) issue further shares of Series X Preferred Stock or increase or decrease (other than by conversion) the number of authorized shares of Series X Preferred Stock, or (iii) enter into any agreement with respect to any of the foregoing. Additionally, the approval of the holders of a majority of the Series X Preferred Stock is required for certain change of control transactions, provided that this approval right will terminate upon stockholder approval of the Conversion Proposal. Following stockholder approval of the Conversion Proposal, on the fourth business day after the date on which such stockholder approval is received, each share of Series X Preferred Stock then outstanding automatically converts into 1,000 shares of the Company’s common stock, subject to certain beneficial ownership limitations, including that a holder of Series X Preferred Stock is prohibited from converting shares of Series X Preferred Stock into shares of the Company’s common stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than a specified percentage (to be initially set at 9.99% and thereafter adjustable by the holder to a number between 4.99% and 19.99%) of the total number of shares of the Company’s common stock issued and outstanding immediately after giving effect to such conversion. Shares of Series X Preferred Stock not converted automatically are thereafter subject to conversion at the option of the holder. Registration Rights Agreement On January 28, 2021, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Investors. Pursuant to the Registration Rights Agreement, the Company agreed to prepare and file a resale registration statement with the SEC within 90 calendar days following the closing of the February 2021 Financing (the “Filing Deadline”). The Company agreed to use its reasonable best efforts to cause this registration statement to be declared effective by the SEC within 30 calendar days of the Filing Deadline (or within 60 calendar days if the SEC reviews the registration statement). The Company also agreed, among other things, to indemnify the Investors, their officers, directors, members, employees and agents, successors and assigns under the registration statement from certain liabilities and pay all fees and expenses (excluding any legal fees of the selling holder(s), and any underwriting discounts and selling commissions) incident to the Company’s obligations under the Registration Rights Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Polices (Polices) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Catabasis Securities Corporation. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. The Company utilizes certain estimates to record expenses relating to research and development contracts. These contract estimates, which are primarily related to the length of service of each contract and the amount of service provided as of each measurement date, are determined by the Company based on input from internal project management, as well as from third-party service providers. |
Off-Balance Sheet Risk and Concentrations of Credit Risk | Off-Balance Sheet Risk and Concentrations of Credit Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that subject the Company to credit risk primarily consist of cash, cash equivalents, short-term investments and restricted cash. The primary objectives for the Company's investment portfolio are the preservation of capital and the maintenance of liquidity. The Company's investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers highly liquid investments with a maturity of three months or less or reverse repurchase agreements with a maturity period of one business day or less when purchased to be cash equivalents. Cash equivalents, which consist of money market funds, corporate debt securities and reverse repurchase agreements are stated at fair value. Cash and cash equivalents consist of the following (in thousands): December 31, 2020 2019 Cash $ 1,931 $ 2,530 Money market fund 22,999 5,432 Corporate debt securities — 1,937 Total $ 24,930 $ 9,899 The reconciliation of cash, cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amount shown in the statement of cash flows is as follows (in thousands): December 31, 2020 2019 Cash and cash equivalents $ 24,930 $ 9,899 Restricted cash (1) 121 477 Total $ 25,051 $ 10,376 (1) Included in prepaid expenses and other current assets and other assets. |
Short-Term Investments | Short-Term Investments The Company classifies all corporate debt securities with a remaining maturity of greater than three months and reverse repurchase agreements with a remaining maturity of greater than one business day at the time of purchase as short-term investments. Short-term investments are recorded at fair value, with the unrealized gains and losses reported in other comprehensive loss. The amortized cost of debt securities is adjusted for the amortization of premiums and accretion of discounts to maturity. Such amortization is included in interest and investment income. Realized gains and losses, interest, dividends and declines in value judged to be other-than-temporary are included in interest and investment income. The cost of securities sold is based on the specific identification method for purposes of recording realized gains and losses. To determine whether an other-than-temporary impairment exists, the Company considers whether it has the ability and intent to hold the investment until a market price recovery, and whether evidence indicating the recoverability of the cost of the investment outweighs evidence to the contrary. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The carrying amounts reflected in the balance sheets for cash equivalents, restricted cash, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values at December 31, 2020 and 2019, due to their short-term nature. There have been no changes to the valuation methods during the years ended December 31, 2020 and 2019. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of assets or liabilities between levels during the year ended December 31, 2020 and 2019. The Company’s investment portfolio may include fixed income securities that do not always trade on a daily basis. As a result, the pricing services used by the Company apply other available information as applicable through processes such as benchmark yields, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company continually evaluates whether events or circumstances have occurred that indicate that the estimated remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. The Company has not recognized any significant impairment charges from inception through December 31, 2020. |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, stock-based compensation, consulting fees, fees paid for contract research services, the costs of laboratory equipment and facilities and other external costs. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are deferred. The deferred amounts are expensed as the related goods are delivered or the services are performed. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its stock-based compensation awards in accordance with Accounting Standards Codification (“ASC”) Topic 718, Compensation—Stock Compensation ( “ASC 718”). ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statements of operations based on their grant date fair values. For granted stock options, the Company estimates the grant date fair value of each option award using the Black-Scholes option-pricing model. The use of the Black-Scholes option-pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the Company's common stock consistent with the expected term of the option, risk-free interest rates and expected dividend yields of the Company's common stock. For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period. The Company expenses restricted stock awards based on the fair value of the award on a straight-line basis over the associated service period of the award. During the years ended December 31, 2020 and 2019, the Company recorded stock-based compensation expense for employee and non-employee stock options and restricted stock, which was allocated as follows in the statements of operations (in thousands): Year Ended December 31, 2020 2019 Research and development $ 599 $ 616 General and administrative 790 896 Total $ 1,389 $ 1,512 No related tax benefits were recognized for the years ended December 31, 2020 and 2019. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method. For purposes of the Company’s dilutive net loss per share calculation, stock options and warrants to purchase the Company's common stock were considered to be common stock equivalents but were excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive; therefore, basic and diluted net loss per share were the same for all periods presented. The following common stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Year Ended December 31, 2020 2019 Stock options 1,367,667 785,832 Common stock warrants 6,193,749 6,193,749 7,561,416 6,979,581 |
Income Taxes | Income Taxes The Company provides deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the Company's financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. A valuation allowance is provided to reduce the deferred tax assets to the amount that will more likely than not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC Topic 740, Expenses—Income Taxes . 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. The Company did not have any significant uncertain tax positions for any periods presented. |
Segment Information | Segment Information Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker, the Company's chief executive officer, in making decisions on how to allocate resources and assess performance. The Company views its operations and manages its business in one operating segment. The Company operates in one geographic segment. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss 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. For the year ended December 31, 2019 the amount in accumulated other comprehensive loss were comprised of unrealized gains and losses on short-term investments. |
Leases | Leases Effective January 1, 2019, the Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets, current portion of lease obligations, and long-term lease obligations on the Company’s balance sheets. The Company does not currently hold any financing leases. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s facility leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s ROU lease assets also include any lease payments made and excludes lease incentives. If the Company’s facility lease includes options to terminate the lease which would affect the lease period when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments under facility leases are recognized on a straight-line basis over the lease term. |
Recent Accounting Pronouncements - Adopted and not yet adopted | Recent Accounting Pronouncements - Adopted In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) . This standard includes amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and disclosure requirements of measurement uncertainty. This amendment was effective for annual reporting periods beginning after December 15, 2019. Adoption of the standard did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements - Not Yet Adopted From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). This standard requires a financial asset to be presented at amortized cost basis at the net amount expected to be collected. It also requires that credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. In November 2019, the FASB issued an amendment making this ASU effective for annual reporting periods beginning after December 15, 2022 for smaller reporting companies. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements as well as the timing of when this standard will be adopted. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of cash and cash equivalents | Cash and cash equivalents consist of the following (in thousands): December 31, 2020 2019 Cash $ 1,931 $ 2,530 Money market fund 22,999 5,432 Corporate debt securities — 1,937 Total $ 24,930 $ 9,899 |
Schedule of reconciliation of cash, cash equivalents and restricted cash | The reconciliation of cash, cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amount shown in the statement of cash flows is as follows (in thousands): December 31, 2020 2019 Cash and cash equivalents $ 24,930 $ 9,899 Restricted cash (1) 121 477 Total $ 25,051 $ 10,376 (1) Included in prepaid expenses and other current assets and other assets. |
Schedule of stock-based compensation expense | During the years ended December 31, 2020 and 2019, the Company recorded stock-based compensation expense for employee and non-employee stock options and restricted stock, which was allocated as follows in the statements of operations (in thousands): Year Ended December 31, 2020 2019 Research and development $ 599 $ 616 General and administrative 790 896 Total $ 1,389 $ 1,512 |
Schedule of anti-dilutive common stock equivalents excluded from calculation of diluted net loss per share | Year Ended December 31, 2020 2019 Stock options 1,367,667 785,832 Common stock warrants 6,193,749 6,193,749 7,561,416 6,979,581 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments | |
Schedule of assets measured fair value on recurring basis | Below is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands): As of December 31, 2020 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash and cash equivalents: Money market funds $ 22,999 $ — $ — $ 22,999 Short-term investments: Reverse repurchase agreements — 20,000 — 20,000 Total assets $ 22,999 $ 20,000 $ — $ 42,999 As of December 31, 2019 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash and cash equivalents: Money market funds $ 5,432 $ — $ — $ 5,432 Corporate debt securities — 1,937 — 1,937 Short-term investments: Commercial paper — 1,993 — 1,993 Corporate debt securities — 3,352 — 3,352 Reverse repurchase agreements — 21,000 — 21,000 Total assets $ 5,432 $ 28,282 $ — $ 33,714 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term Investments | |
Schedule of short term investments | The following table summarizes the short-term investments held at December 31, 2020 and 2019 (in thousands): Gross Unrealized Gross Unrealized Amortized Cost Gains Losses Fair Value December 31, 2020 Reverse repurchase agreements $ 20,000 $ — $ — $ 20,000 Total $ 20,000 $ — $ — $ 20,000 Gross Unrealized Gross Unrealized Amortized Cost Gains Losses Fair Value December 31, 2019 Commercial paper $ 1,993 $ — $ — $ 1,993 Corporate debt securities 3,352 — — 3,352 Reverse repurchase agreements 21,000 — — 21,000 Total $ 26,345 $ — $ — $ 26,345 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses | |
Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands): December 31, December 31, 2020 2019 Accrued contracted research costs $ 1,726 $ 737 Accrued compensation 1,719 1,365 Accrued severance 396 — Accrued professional fees 356 370 Accrued other — 138 Total $ 4,197 $ 2,610 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Schedule of future minimum payments required under the non-cancelable operating leases | Future minimum payments required under the non-cancelable operating leases as of December 31, 2020 are summarized as follows (in thousands): Period Ending December 31, Amount 2021 678 2022 438 Total lease payments $ 1,116 Less: imputed interest (70) Total operating lease liabilities $ 1,046 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | |
Schedule of common stock reserved for future issuance | December 31, December 31, 2020 2019 Warrants for the purchase of common stock 6,193,749 6,193,749 Options outstanding to purchase common stock 1,367,667 785,832 Options available for future issuance to purchase common stock 1,936,173 525,484 Shares reserved for the employee stock purchase plan 148,951 112,481 Total 9,646,540 7,617,546 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock Incentive Plans | |
Summary of stock option activity | Weighted Average Weighted- Remaining Aggregate Average Exercise Contractual Intrinsic Value Shares Price Term (years) (in thousands) Outstanding at December 31, 2019 785,832 $ 16.48 8.13 $ 470 Granted 666,200 $ 5.69 Exercised (7,000) $ 4.39 Cancelled or forfeited (76,884) $ 14.65 Expired (481) $ 32.10 Outstanding at December 31, 2020 1,367,667 $ 11.38 8.13 $ — Vested and exercisable at December 31, 2020 504,171 $ 21.22 6.68 $ — |
Schedule of assumptions made based on the Black-Scholes option pricing model | Year Ended December 31, 2020 2019 Weighted-average expected volatility 75.51 - 82.08 % 68.9 - 110.5 % Expected term (in years) 5.50 - 6.25 5.50 - 10.00 Risk-free interest rate 0.37 - 1.51 % 1.39 - 2.69 % Expected dividend yield 0 % 0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of reconciliation of U.S. statutory income tax rate to effective tax rate | Year Ended December 31, 2020 2019 Federal income tax (benefit) at statutory rate 21.00 % 21.00 % Permanent differences Federal research and development credits and adjustments 2.78 2.42 State income tax, net of federal benefit 6.03 5.50 Other 0.37 0.49 Change in valuation allowance Effective income tax rate — % — % |
Schedule of components of deferred tax assets | The Company's deferred tax assets consisted of the following (in thousands): Year Ended December 31, 2020 2019 Deferred tax assets Net operating loss carryforwards $ 65,373 $ 55,283 Tax credit carryforwards 9,273 8,030 Capitalized research and development 482 922 Capitalized legal expenses 1,070 1,073 Lease liability 284 639 Other differences 1,648 1,453 Total deferred tax assets 78,130 67,400 Deferred tax liabilities ROU asset Valuation allowance Net deferred tax assets $ — $ — |
Subsequent Events (Tables)
Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events | |
Schedule of Series X preferred stock or warrants | Series X Common Stock Preferred Issuable Upon Shares Conversion (1) Outstanding shares issued in merger 50,504 50,504,000 Outstanding shares issued in February 2021 Financing 35,573 35,573,000 Warrants assumed in merger 2,805 2,805,000 Total 88,882 88,882,000 (1) Requires stockholder approval for conversion. |
Organization and Operations (De
Organization and Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 30, 2020 | Feb. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Common Stock | ||||
Gross proceeds from public offering | $ 16,270 | $ 6,996 | ||
Accumulated deficit | (260,897) | $ (223,597) | ||
Cash, cash equivalents and short-term investments | 44,900 | |||
Revenue | 0 | |||
Net proceeds | $ 104,000 | |||
Series X Preferred Stock | ||||
Common Stock | ||||
Number of shares issued | 86,077 | |||
Shares issued | 86,077 | |||
Series X Common shares, As converted | ||||
Common Stock | ||||
Shares agreed to issue upon shareholders approval | 86,077,000 | |||
Private Placement | ||||
Common Stock | ||||
Gross proceeds | $ 110,000 | |||
Common Stock | ||||
Common Stock | ||||
Number of shares issued | 2,353,737 | 1,282,904 | ||
Gross proceeds from public offering | $ 3 | $ 1 | ||
Shares issued | 2,353,737 | 1,282,904 | ||
Common Stock | ATM | ||||
Common Stock | ||||
Number of shares issued | 2,353,737 | |||
Share price (in dollars per share) | $ 7.13 | |||
Gross proceeds from public offering | $ 16,800 | |||
Proceeds from public offering, net of issuance costs | $ 16,300 | |||
Shares issued | 2,353,737 | |||
Common Stock | Cowen | ||||
Common Stock | ||||
Percentage of commission paid to underwriter based on proceeds from common stock | 3.00% | |||
Remaining available under sales agreement | $ 27,900 | |||
Common Stock | Oppenheimer & Co. Inc | February 2019 Financing | ||||
Common Stock | ||||
Number of shares issued | 4,000,000 | |||
Number of warrants issued | 2,000,000 | |||
Warrants price (in dollars per unit) | $ 5 | |||
Proceeds from public offering, net of issuance costs | $ 18,500 | |||
Shares issued | 4,000,000 | |||
Common Stock | Oppenheimer & Co. Inc | Over-Allotment option | ||||
Common Stock | ||||
Number of shares issued | 20 | |||
Shares issued | 20 | |||
Common Stock | Oppenheimer & Co. Inc | January 2020 Financing | ||||
Common Stock | ||||
Number of shares issued | 5,290,000 | |||
Share price (in dollars per share) | $ 5 | |||
Gross proceeds from public offering | $ 26,500 | |||
Proceeds from public offering, net of issuance costs | $ 24,600 | |||
Shares issued | 5,290,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Polices - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents and Restricted Cash | |||
Cash and cash equivalents | $ 24,930 | $ 9,899 | |
Restricted cash | 121 | 477 | |
Total | 25,051 | 10,376 | $ 15,407 |
Cash | |||
Cash and Cash Equivalents and Restricted Cash | |||
Cash and cash equivalents | 1,931 | 2,530 | |
Money market fund | |||
Cash and Cash Equivalents and Restricted Cash | |||
Cash and cash equivalents | $ 22,999 | 5,432 | |
Corporate debt securities | |||
Cash and Cash Equivalents and Restricted Cash | |||
Cash and cash equivalents | $ 1,937 |
Summary of Significant Accoun_5
Summary of Significant Accounting Polices - Fair Value of Financial Instruments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value of Financial Instruments | |
Fair value assets, transfers from Level 1 to Level 2 | $ 0 |
Fair value assets, transfers from Level 2 to Level 1 | 0 |
Fair value liabilities, transfers from Level 1 to Level 2 | 0 |
Fair value liabilities, transfers from Level 2 to Level 1 | $ 0 |
Reverse repurchase agreements | Government Securities and Obligations | Minimum | |
Fair Value of Financial Instruments | |
Percentage of investment amount to collateralized deposits value | 102.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation | ||
Stock-based compensation expense | $ 1,389 | $ 1,512 |
Tax benefits recognized from stock-based compensation expense | 0 | 0 |
Research and development | ||
Stock-Based Compensation | ||
Stock-based compensation expense | 599 | 616 |
General and administrative | ||
Stock-Based Compensation | ||
Stock-based compensation expense | $ 790 | $ 896 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive common stock equivalents excluded from computation of diluted net loss per share | ||
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares) | 7,561,416 | 6,979,581 |
Stock options | ||
Antidilutive common stock equivalents excluded from computation of diluted net loss per share | ||
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares) | 1,367,667 | 785,832 |
Common stock warrants | ||
Antidilutive common stock equivalents excluded from computation of diluted net loss per share | ||
Anti-dilutive securities excluded from the calculation of diluted net loss per share (in shares) | 6,193,749 | 6,193,749 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Summary of Significant Accounting Policies | |
Number of operating segments | 1 |
Financial Instruments (Details)
Financial Instruments (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of assets measured at fair value on a recurring basis | ||
Total assets | $ 42,999 | $ 33,714 |
Level 1 | ||
Summary of assets measured at fair value on a recurring basis | ||
Total assets | 22,999 | 5,432 |
Level 2 | ||
Summary of assets measured at fair value on a recurring basis | ||
Total assets | 20,000 | 28,282 |
Money market fund | ||
Summary of assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 22,999 | 5,432 |
Money market fund | Level 1 | ||
Summary of assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 22,999 | 5,432 |
Commercial paper | ||
Summary of assets measured at fair value on a recurring basis | ||
Short-term investments | 1,993 | |
Commercial paper | Level 2 | ||
Summary of assets measured at fair value on a recurring basis | ||
Short-term investments | 1,993 | |
Corporate debt securities | ||
Summary of assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 1,937 | |
Short-term investments | 3,352 | |
Corporate debt securities | Level 2 | ||
Summary of assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 1,937 | |
Short-term investments | 3,352 | |
Reverse repurchase agreements | ||
Summary of assets measured at fair value on a recurring basis | ||
Short-term investments | 20,000 | 21,000 |
Reverse repurchase agreements | Level 2 | ||
Summary of assets measured at fair value on a recurring basis | ||
Short-term investments | $ 20,000 | $ 21,000 |
Short-Term Investments (Details
Short-Term Investments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument | |
Short-Term Investments | ||
Amortized Cost | $ 20,000 | $ 26,345 |
Fair Value | $ 20,000 | $ 26,345 |
Number of short term investments in unrealized loss position | instrument | 0 | 4 |
Number of short term investments in an unrealized loss position more than 12 months | instrument | 0 | |
Aggregate fair value of the investments in an unrealized loss position | $ 3,400 | |
Commercial paper | ||
Short-Term Investments | ||
Amortized Cost | 1,993 | |
Fair Value | 1,993 | |
Corporate debt securities | ||
Short-Term Investments | ||
Amortized Cost | 3,352 | |
Fair Value | 3,352 | |
Reverse repurchase agreements | ||
Short-Term Investments | ||
Amortized Cost | $ 20,000 | 21,000 |
Fair Value | $ 20,000 | $ 21,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Expenses | ||
Accrued contracted research costs | $ 1,726 | $ 737 |
Accrued compensation | 1,719 | 1,365 |
Accrued severance | 396 | |
Accrued professional fees | 356 | 370 |
Accrued other | 138 | |
Total | $ 4,197 | $ 2,610 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | |
Sublease | |||
Operating Lease, Right-of-Use Asset | $ 966 | $ 2,349 | $ 1,700 |
Operating Lease, Liability | 1,046 | $ 1,700 | |
Operating Lease, Weighted Average Discount Rate, Percent | 7.49% | ||
Maturity analysis of undiscounted cash flows of operating lease liabilities | |||
2021 | 678 | ||
2022 | 438 | ||
Total lease payments | 1,116 | ||
Less: imputed interest | (70) | ||
Total operating lease liabilities | 1,046 | $ 1,700 | |
Rent expense | 800 | 400 | |
Lease payments | $ 1,500 | $ 1,400 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) | Dec. 31, 2020series$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Minimum number of series used to issue preferred stock | series | 1 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Warrants (Details) - Common stock warrants - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2019 | Jun. 30, 2018 | |
February 2019 Financing | |||
Common Stock Warrants | |||
Number of shares which may be purchased with warrants | 2,000,000 | ||
Exercise Price (in dollars per share) | $ 6.25 | ||
Warrants term | 5 years | ||
Number of warrants outstanding (in shares) | 1,991,300 | ||
Remaining contractual term | 3 years 1 month 6 days | ||
June 2018 Financing | |||
Common Stock Warrants | |||
Number of shares which may be purchased with warrants | 4,200,000 | ||
Exercise Price (in dollars per share) | $ 12 | ||
Warrants term | 2023 years | ||
Remaining contractual term | 2 years 6 months |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common Stock | ||
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Par value of common stock (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 20,084,337 | 12,433,600 |
Common Stock, outstanding (in shares) | 20,084,337 | 12,433,600 |
Stockholders' Equity - Shares R
Stockholders' Equity - Shares Reserved for Future Issuance (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity | ||
Number of shares reserved for future issuance | 9,646,540 | 7,617,546 |
Warrants for the purchase of Common Stock | ||
Stockholders' Equity | ||
Number of shares reserved for future issuance | 6,193,749 | 6,193,749 |
Options outstanding to purchase Common Stock | ||
Stockholders' Equity | ||
Number of shares reserved for future issuance | 1,367,667 | 785,832 |
Options available for future issuance to purchase Common Stock | ||
Stockholders' Equity | ||
Number of shares reserved for future issuance | 1,936,173 | 525,484 |
Shares reserved for the employee stock purchase plan | ||
Stockholders' Equity | ||
Number of shares reserved for future issuance | 148,951 | 112,481 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Plans (Details) - Stock options | 12 Months Ended |
Dec. 31, 2020 | |
Stock Incentive Plans | |
Vesting period | 4 years |
Cliff period for vesting | 1 year |
Expiration period | 10 years |
Stock Incentive Plans - Stock o
Stock Incentive Plans - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Outstanding, beginning of period (in shares) | 785,832 | 785,832 | |
Granted (in shares) | 666,200 | ||
Exercised (in shares) | (7,000) | ||
Cancelled or forfeited (in shares) | (76,884) | ||
Expired (in shares) | (481) | ||
Outstanding, end of period (in shares) | 1,367,667 | 785,832 | |
Vested and exercisable (in shares) | 504,171 | ||
Weighted-Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 16.48 | $ 16.48 | |
Granted (in dollars per share) | 5.69 | ||
Exercised (in dollars per share) | 4.39 | ||
Cancelled or forfeited (in dollars per share) | 14.65 | ||
Expired (in dollars per share) | 32.10 | ||
Outstanding at end of year (in dollars per share) | 11.38 | $ 16.48 | |
Vested and Exercisable (in dollars per share) | $ 21.22 | ||
Weighted Average Remaining Contractual Term (years) | |||
Outstanding | 8 years 1 month 17 days | 8 years 1 month 17 days | |
Vested and Exercisable | 6 years 8 months 5 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 470 | ||
Stock options | |||
Shares | |||
Exercised (in shares) | 0 | ||
Additional disclosures | |||
Intrinsic value of options exercised | $ 29 | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 3.81 | $ 3.25 | |
Unrecognized compensation expense related to unvested stock option awards | $ 2,700 | ||
Weighted-average amortization period over which cost is expected to be recognized | 2 years 8 months 12 days |
Stock Incentive Plans - Stock-B
Stock Incentive Plans - Stock-Based Compensation Expense (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assumptions used to calculate fair value of stock options | ||
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Assumptions used to calculate fair value of stock options | ||
Weighted-average expected volatility | 75.51% | 68.90% |
Expected term (in years) | 5 years 6 months | 5 years 6 months |
Risk-free interest rate | 0.37% | 1.39% |
Maximum | ||
Assumptions used to calculate fair value of stock options | ||
Weighted-average expected volatility | 82.08% | 110.50% |
Expected term (in years) | 6 years 3 months | 10 years |
Risk-free interest rate | 1.51% | 2.69% |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the U.S. statutory income tax rate to the Company's effective tax rate | ||
Federal income tax (benefit) at statutory rate | 21.00% | 21.00% |
Permanent differences | (0.41%) | (0.57%) |
Federal research and development credits and adjustments | 2.78% | 2.42% |
State income tax, net of federal benefit | 6.03% | 5.50% |
Other | 0.37% | 0.49% |
Change in valuation allowance | (29.77%) | (28.85%) |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets | ||
Net operating loss carryforwards | $ 65,373 | $ 55,283 |
Tax credit carryforwards | 9,273 | 8,030 |
Capitalized research and development | 482 | 922 |
Capitalized legal expenses | 1,070 | 1,073 |
Lease liability | 284 | 639 |
Other differences | 1,648 | 1,453 |
Total deferred tax assets | 78,130 | 67,400 |
Deferred tax liabilities | ||
ROU asset | (262) | (639) |
Valuation allowance | (77,868) | (66,761) |
Net deferred tax assets | 0 | 0 |
Increase in valuation allowance | $ 11,100 | $ 7,600 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2020USD ($) |
Federal | |
Operating loss carryforwards | |
Net operating loss | $ 240.1 |
Tax credit carryforwards | 7.4 |
Federal | Tax Years 2023 through 2039 | |
Operating loss carryforwards | |
Net operating loss | 150.5 |
Federal | No expiration | |
Operating loss carryforwards | |
Net operating loss | 89.6 |
State | |
Operating loss carryforwards | |
Net operating loss | 236.7 |
Tax credit carryforwards | 2.4 |
State | Tax Years 2023 through 2039 | |
Operating loss carryforwards | |
Net operating loss | $ 236.7 |
Subsequent Events - Merger Agre
Subsequent Events - Merger Agreement and Stock Purchase Agreement (Details) - USD ($) | Jan. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Events | |||
Aggregate shares sold under purchase agreement | $ 16,270,000 | $ 6,996,000 | |
Common Stock | |||
Subsequent Events | |||
Aggregate shares sold under purchase agreement | $ 3,000 | $ 1,000 | |
Subsequent Events | Series X Preferred Stock | Quellis Biosciences, Inc | |||
Subsequent Events | |||
Shares issued upon merger (in shares) | 50,504 | ||
Warrants to purchase number of shares | 2,805 | ||
Exercise Price (in dollars per share) | $ 341.70 | ||
Subsequent Events | Common Stock | Quellis Biosciences, Inc | |||
Subsequent Events | |||
Shares issued upon merger (in shares) | 3,332,669 | ||
Share price (in dollars per share) | $ 0.001 | ||
Warrants to purchase number of shares | 185,136 | ||
Exercise Price (in dollars per share) | $ 0.35 | ||
Conversion value | $ 122,700,000 | ||
Subsequent Events | Stock Purchase Agreement | Series X Preferred Stock | |||
Subsequent Events | |||
Aggregate shares sold under purchase agreement | 35,573 | ||
Purchase price | 110,000,000 | ||
Subsequent Events | Stock Purchase Agreement | Common Stock | Series X Preferred Stock | |||
Subsequent Events | |||
Purchase price | $ 1,000 |
Subsequent Events - Series X Pr
Subsequent Events - Series X Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 04, 2021 | Jan. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Events | ||||
Preferred stock, outstanding | 0 | 0 | ||
Common Stock Issuable Upon Conversion | 20,084,337 | 12,433,600 | ||
Subsequent Events | ||||
Subsequent Events | ||||
Percentage of beneficial ownership initially, after conversion | 9.99% | |||
Subsequent Events | Registration Rights Agreement | ||||
Subsequent Events | ||||
Period to prepare and file a resale registration statement with the SEC. | 90 days | |||
Period to cause the registration statement to be declared effective by the SEC | 30 days | |||
Period to cause the registration statement to be declared effective by the SEC after review | 60 days | |||
Subsequent Events | Series X Preferred Stock | ||||
Subsequent Events | ||||
Preferred stock, outstanding | 88,882,000 | |||
Redemption price per share | $ 2.87 | |||
Payments on redemption of preferred stock | $ 247 | |||
Subsequent Events | Outstanding shares issued in merger | ||||
Subsequent Events | ||||
Preferred stock, outstanding | 50,504,000 | |||
Common Stock Issuable Upon Conversion | 50,504,000,000 | |||
Subsequent Events | Outstanding shares issued in February 2021 Financing | ||||
Subsequent Events | ||||
Preferred stock, outstanding | 35,573,000 | |||
Common Stock Issuable Upon Conversion | 35,573,000,000 | |||
Subsequent Events | Warrants assumed in merger | ||||
Subsequent Events | ||||
Preferred stock, outstanding | 2,805,000 | |||
Common Stock Issuable Upon Conversion | 2,805,000,000 | |||
Subsequent Events | Series X Common shares, As converted | ||||
Subsequent Events | ||||
Common Stock Issuable Upon Conversion | 88,882,000,000 | |||
Subsequent Events | Minimum | ||||
Subsequent Events | ||||
Percentage of beneficial ownership thereafter, after conversion | 4.99% | |||
Subsequent Events | Maximum | ||||
Subsequent Events | ||||
Percentage of beneficial ownership thereafter, after conversion | 19.99% |