Leap Therapeutics (LPTX) 10-Q 13 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 10, 2020
Document and Entity Information
Entity Registrant Name	LEAP THERAPEUTICS, INC.
Entity Central Index Key	0001509745
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,657,742
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 64,887	$ 3,891
Research and development incentive receivable	181	185
Prepaid expenses and other current assets	212	165
Total current assets	65,280	4,241
Property and equipment, net	81	124
Right of use assets, net	711	1,026
Research and development incentive receivable, net of current portion	124
Deferred tax assets	125	127
Deferred costs	413	831
Deposits	939	1,099
Total assets	67,673	7,448
Current liabilities:
Accounts payable	2,716	4,571
Accrued expenses	2,232	3,441
Deferred revenue - current portion	1,500
Lease liability - current portion	388	474
Total current liabilities	6,836	8,486
Non current liabilities:
Restricted stock liability		159
Deferred revenue, net of current portion	750
Lease liability, net of current portion	354	552
Total liabilities	7,940	9,197
Stockholders' equity (deficiency):
Common stock, $0.001 par value; 240,000,000 and 100,000,000 shares authorized as of June 30, 2020 and December 31, 2019, respectively; 59,657,742 and 24,194,877 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	60	24
Additional paid-in capital	268,770	193,319
Accumulated other comprehensive loss	121	76
Accumulated deficit	(209,218)	(195,168)
Total stockholders' equity (deficiency)	59,733	(1,749)
Total liabilities and stockholders' equity (deficiency)	$ 67,673	$ 7,448

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	240,000,000	100,000,000
Common stock, issued shares	59,657,742	24,194,877
Common stock, outstanding shares	59,657,742	24,194,877

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
License revenue	$ 375		$ 750
Operating expenses:
Research and development	5,350	$ 6,136	9,953	$ 12,926
General and administrative	2,521	2,325	4,674	4,330
Total operating expenses	7,871	8,461	14,627	17,256
Loss from operations	(7,496)	(8,461)	(13,877)	(17,256)
Interest income	20	119	88	201
Interest expense	(13)	(9)	(25)	(16)
Australian research and development incentives	30	61	115	136
Foreign currency gains (loss)	943	(76)	(48)	(34)
Loss before income taxes	(6,516)	(8,366)	(13,747)	(16,969)
Net loss	(6,516)	(8,366)	(13,747)	(16,969)
Dividend attributable to down round feature of warrants			(303)	(359)
Dividend attributable to Series A & B convertible preferred stock			(372)
Series A & B convertible preferred stock - beneficial conversion feature			(9,399)
Net loss attributable to common stockholders	$ (6,516)	$ (8,366)	$ (23,821)	$ (17,328)
Net Loss Per Share
Basic (in dollars per share)	$ (0.12)	$ (0.37)	$ (0.57)	$ (0.82)
Diluted (in dollars per share)	$ (0.12)	$ (0.37)	$ (0.57)	$ (0.82)
Weighted average common shares outstanding
Basic (in shares)	52,442,597	22,906,025	42,037,405	21,081,869
Diluted (in shares)	52,442,597	22,906,025	42,037,405	21,081,869

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (6,516)	$ (8,366)	$ (13,747)	$ (16,969)
Other comprehensive income(loss):
Foreign currency translation adjustments	(867)	44	45	20
Comprehensive loss	$ (7,383)	$ (8,322)	$ (13,702)	$ (16,949)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Series A Convertible Preferred Stock	Series B Convertible Preferred Stock	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Balance at the beginning of the period (in shares) at Dec. 31, 2018			14,703,159
Increase (Decrease) in Shares Outstanding
Issuance of common stock through ATM sales (in shares)			688,763
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)			7,557,142
Balance at the end of the period (in shares) at Jun. 30, 2019			22,949,064
Balance at the beginning of the period at Dec. 31, 2018			$ 15	$ 162,393	$ 302	$ (153,535)	$ 9,175
Increase (Decrease) in Stockholders' Equity
Issuance of common stock through ATM sales			1	1,305			1,306
To record ATM issuance costs in additional paid-in-capital				(8)			(8)
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts			7	12,114			12,121
Reclassification of 2017 warrants from liability to equity				11,822		(8,374)	3,448
Dividend attributable to down round feature of 2017 warrants				359		(359)	359
Foreign currency translation adjustment					20		20
Stock-based compensation				1,846			1,846
Net loss						(16,969)	(16,969)
Balance at the end of the period at Jun. 30, 2019			$ 23	189,831	322	(179,237)	10,939
Balance at the beginning of the period (in shares) at Dec. 31, 2018			14,703,159
Balance at the end of the period (in shares) at Dec. 31, 2019			24,194,877
Balance at the beginning of the period at Dec. 31, 2018			$ 15	162,393	302	(153,535)	9,175
Balance at the end of the period at Dec. 31, 2019			$ 24	193,319	76	(195,168)	(1,749)
Balance at the beginning of the period (in shares) at Mar. 31, 2019			22,260,301
Increase (Decrease) in Shares Outstanding
Issuance of common stock through ATM sales (in shares)			688,763
Balance at the end of the period (in shares) at Jun. 30, 2019			22,949,064
Balance at the beginning of the period at Mar. 31, 2019			$ 22	187,635	278	(170,871)	17,064
Increase (Decrease) in Stockholders' Equity
Issuance of common stock through ATM sales			1	1,305			1,306
To record ATM issuance costs in additional paid-in-capital				(8)			(8)
Foreign currency translation adjustment					44		44
Stock-based compensation				899			899
Net loss						(8,366)	(8,366)
Balance at the end of the period at Jun. 30, 2019			$ 23	189,831	322	(179,237)	$ 10,939
Balance at the beginning of the period (in shares) at Dec. 31, 2019			24,194,877
Increase (Decrease) in Shares Outstanding
Conversion of Series A Convertible Preferred Stock to prefunded warrants (in shares)	(1,421,801)
Conversion of Series B Convertible Preferred Stock to common stock (in shares)			273,954
Conversion of Series B Convertible Preferred Stock to common stock (in shares)		(1,137,442)	11,531,133
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)	1,421,801	1,137,442	23,625,000
Issuance of common stock upon exercise of stock options (in shares)			32,778				32,778
Balance at the end of the period (in shares) at Jun. 30, 2020			59,657,742
Balance at the beginning of the period at Dec. 31, 2019			$ 24	193,319	76	(195,168)	$ (1,749)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of warrant			12	348			348
Series A & B Convertible Preferred Stock discount - beneficial conversion feature	$ 5,226	$ 4,173		(9,399)			(9,399)
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts	14,062	11,260	24	48,252			48,276
Series A & B Convertible Preferred Stock accrued dividends	(207)	(165)		(372)			(372)
Conversion of Series A & B Convertible Preferred Stock dividends to prefunded warrants and common stock	(207)	(165)		372			372
Conversion of Series A Convertible Preferred Stock to prefunded warrants	$ 8,836			(8,836)			(8,836)
Conversion of Series B Convertible Preferred Stock to common stock		$ 7,087		(7,076)			(7,088)
Conversion of Series B Convertible Preferred Stock to common stock			12	348			348
Dividend attributable to down round feature of 2017 warrants				303		(303)	303
Issuance of common stock upon exercise of stock options				50			50
Foreign currency translation adjustment					45		45
Stock-based compensation				1,187			1,187
Net loss						(13,747)	(13,747)
Balance at the end of the period at Jun. 30, 2020			$ 60	268,770	121	(209,218)	59,733
Balance at the beginning of the period (in shares) at Mar. 31, 2020			35,799,488
Increase (Decrease) in Shares Outstanding
Conversion of Series B Convertible Preferred Stock to common stock (in shares)			208,254
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)			23,625,000
Issuance of common stock upon exercise of stock options (in shares)			25,000
Balance at the end of the period (in shares) at Jun. 30, 2020			59,657,742
Balance at the beginning of the period at Mar. 31, 2020			$ 36	219,642	988	(202,702)	17,964
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of warrant				220			220
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts			24	48,252			48,276
Conversion of Series B Convertible Preferred Stock to common stock				220			220
Issuance of common stock upon exercise of stock options				39			39
Foreign currency translation adjustment					(867)		(867)
Stock-based compensation				617			617
Net loss						(6,516)	(6,516)
Balance at the end of the period at Jun. 30, 2020			$ 60	$ 268,770	$ 121	$ (209,218)	$ 59,733

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (13,747)	$ (16,969)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	18	25
Amortization of contract asset	68
Amortization on right-of-use asset	315	357
Stock-based compensation expense	1,187	1,846
Foreign currency loss	48
Change in fair value of restricted stock liability	(159)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	734	9
Research and development incentive receivable	(119)	(139)
Contract acquisition costs	(270)
Accounts payable and accrued expenses	(3,418)	1,141
Deferred revenue	2,250
Lease liability	(284)	(321)
Net cash used in operating activities	(13,377)	(14,051)
Cash flows from investing activities:
Proceeds from the sale of property and equipment	25
Purchases of property and equipment		(100)
Net cash provided by (used) in investing activities	25	(100)
Cash flows from financing activities:
Proceeds from issuance of common stock - June 2020 Public offering	48,518
Proceeds from issuance of common stock		12,331
Proceeds from the issuance of common stock ATM sales		1,306
Proceeds from the exercise of common stock warrants	348
Proceeds from the exercise of stock options	50
Payment of deferred offering costs	(1,520)	(55)
Net cash provided by financing activities	74,382	13,582
Effect of exchange rate changes on cash and cash equivalents	(34)	32
Net increase (decrease) in cash and cash equivalents	60,996	(537)
Cash and cash equivalents at beginning of period	3,891	16,284
Cash and cash equivalents at end of period	64,887	15,747
Supplemental disclosure of non-cash financing activities:
Reclassification of 2017 warrants from liability to equity		3,448
Dividend attributable to down round feature of warrants	303	359
Offering costs included in accounts payable and accrued expenses - January Private Placement	144
Offering costs included in accounts payable and accrued expenses - June 2020 Public Offering	242
Offering costs included in accounts payable and accrued expenses - February 2019 Public Offering		154
Right-of-use asset recorded upon adoption of ASU 2016-02		1,755
Lease liability recorded upon adoption of ASU 2016-02		1,720
Accrued rent reclassified upon adoption of ASU 2016-02		$ 35
Conversion of Series A Convertible Preferred Stock to prefunded warrants	(8,836)
Conversion of Series B Convertible Preferred Stock to common stock	(7,088)
Series A & B Convertible Preferred Stock discount - beneficial conversion feature	(9,399)
Series A Convertible Preferred Stock
Cash flows from financing activities:
Proceeds from the issuance of Series convertible preferred stock	14,986
Supplemental disclosure of non-cash financing activities:
Conversion of Series A Convertible Preferred Stock to prefunded warrants	8,836
Series A & B Convertible Preferred Stock discount - beneficial conversion feature	5,226
Series B Convertible Preferred Stock
Cash flows from financing activities:
Proceeds from the issuance of Series convertible preferred stock	12,000
Supplemental disclosure of non-cash financing activities:
Conversion of Series B Convertible Preferred Stock to common stock	7,087
Series A & B Convertible Preferred Stock discount - beneficial conversion feature	$ 4,173

Nature of Business, Basis of Pr

Nature of Business, Basis of Presentation and Liquidity	6 Months Ended
	Jun. 30, 2020
Nature of Business, Basis of Presentation and Liquidity
Nature of Business, Basis of Presentation and Liquidity	1. Nature of Business, Basis of Presentation and Liquidity Nature of Business Leap Therapeutics, Inc. was incorporated in the state of Delaware on January 3, 2011. During 2015, HealthCare Pharmaceuticals Pty Ltd. (“HCP Australia”) was formed and is a wholly owned subsidiary of the Company. The Company is a biopharmaceutical company acquiring and developing novel therapeutics at the leading edge of cancer biology. The Company’s approach is designed to target compelling tumor-promoting and immuno-oncology pathways to generate durable clinical benefit and enhanced outcomes for patients. The Company’s programs are monoclonal antibodies that target key cellular pathways that enable cancer to grow and spread and specific mechanisms that activate the body’s immune system to identify and attack cancer. Basis of Presentation The accompanying condensed consolidated financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2020. The condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments which are necessary for the fair presentation of the Company’s financial position as of June 30, 2020, statements of operations and statements of comprehensive loss for the three and six months ended June 30, 2020 and 2019 and statements of cash flows for the three and six months ended June 30, 2020 and 2019. Such adjustments are of a normal and recurring nature. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2020. Liquidity Since inception, the Company has been engaged in organizational activities, including raising capital, and research and development activities. The Company does not yet have a product that has been approved by the Food and Drug Administration (the “FDA”), has not generated any product sales revenues and has not yet achieved profitable operations, nor has it ever generated positive cash flows from operations. There is no assurance that profitable operations, if achieved, could be sustained on a continuing basis. Further, the Company’s future operations are dependent on the success of the Company’s efforts to raise additional capital, its research and commercialization efforts, regulatory approval, and, ultimately, the market acceptance of the Company’s products. In accordance with Accounting Standards Codification (“ASC”) 205‑40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued. As of June 30, 2020, the Company had cash and cash equivalents of $64,887. Additionally, the Company had an accumulated deficit of $209,218 at June 30, 2020, and during the six months ended June 30, 2020, the Company incurred a net loss of $13,747. The Company expects to continue to generate operating losses for the foreseeable future. The Company believes that its cash and cash equivalents of $64,887 as of June 30, 2020, will be sufficient to fund its operating expenses for at least the next 12 months from issuance of these financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated upon consolidation. Use of Estimates The presentation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Research and development incentive income and receivable The Company recognizes other income from Australian research and development incentives when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997, as long as eligibility criteria are met. Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the research and development incentive regime described above. At each period end, management estimates the refundable tax offset available to the Company based on available information at the time. This estimate is also reviewed by external tax advisors on an annual basis. Under the program, a percentage of eligible research and development expenses incurred by the Company through its subsidiary in Australia are reimbursed. The percentage was 43.5% for the year ended December 31, 2019 and for the three and six months ended June 30, 2020. The research and development incentive receivable represents an amount due in connection with the above program. The Company has recorded a research and development incentive receivable of $305 and $185 as of June 30, 2020 and December 31, 2019, respectively, in the condensed consolidated balance sheets and other income from Australian research and development incentives of $30 and $61 , respectively, for the three months ended June 30, 2020 and 2019, and $115 and $136 for the six months ended June 30, 2020 and 2019, respectively, in the condensed consolidated statements of operations related to refundable research and development incentive program payments in Australia. The following table shows the change in the research and development incentive receivable from December 31, 2018 to June 30, 2020 (in thousands): Balance at December 31, 2018 $ 836 Australian research and development incentive income, net 132 Cash received for 2018 eligible expenses (757) Foreign currency translation (26) Balance at December 31, 2019 185 Australian research and development incentive income, net 115 Foreign currency translation 5 Balance at June 30, 2020 $ 305 Foreign Currency Translation The financial statements of the Company’s Australian subsidiary are measured using the local currency as the functional currency. Assets and liabilities of this subsidiary are translated into U.S. dollars at an exchange rate as of the consolidated balance sheet date. Equity is translated at historical exchange rates. Revenues and expenses are translated into U.S. dollars at average rates of exchange in effect during the period. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders’ equity. Realized foreign currency transaction gains and losses are included in the results of operations. Deferred Costs The Company capitalizes certain legal, professional, accounting and other third-party fees that are directly associated with in-process equity financings as deferred costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficiency) as a reduction of additional paid-in capital generated as a result of the offering. The Company also capitalizes certain contract acquisition costs. During the six months ended June 30, 2020, the Company incurred contract acquisition costs which were capitalized under ASC 340-40 as incremental costs of obtaining the contract with BeiGene. This cost is amortized on a straight-line basis over the performance period of the research and development services. As of June 30, 2020 and December 31, 2019 there was $413 and $831, respectively, of deferred costs. Deposits As of June 30, 2020 and December 31, 2019, $939 and $1,099, respectively, of deposits made by the Company with certain service providers that are to be applied to future payments due under the service agreements or returned to the Company if not utilized, were recorded in the condensed consolidated balance sheets. Warrants On January 1, 2019, the Company adopted ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815) (“ASU 2017-11”), which changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common stockholders in basic EPS. The Company concluded that the common stock warrants (the “2017 Warrants”) issued in connection with the private placement of common stock completed in November 2017 (the “November 2017 Private Placement”), qualify for equity classification. The adoption guidance of ASU 2017-11 provides for a modified retrospective adoption. The Company applied the guidance retrospectively to the 2017 Warrants by means of a cumulative-effect adjustment to its statement of financial position as of the beginning of the interim and annual period beginning January 1, 2019. The Company performed a final remeasurement of the warrant liability as of January 1, 2019 and reclassified $3,448 from warrant liability to equity. The Company will recognize on a prospective basis the value of the effect of the down round feature in the 2017 Warrants when it is triggered (i.e., when the exercise price is adjusted downward). This value is measured as the difference between (1) the financial instrument’s fair value (without the down round feature) using the pre-trigger exercise price and (2) the financial instrument’s fair value (with the down round feature) using the reduced exercise price. The value of the effect of the down round feature will be treated as a dividend and a reduction to income available to common stockholders in the basic EPS calculation. In connection with the public offering, completed in February 2019 (the “2019 Public Offering”), when the 2017 Warrants were repriced from $6.085 to $1.75 as a result of a down round, the Company recorded a dividend of $359 during the six months ended June 30, 2019. In connection with the private placement of common stock completed in January 2020 (the “January 2020 Private Placement”), when the 2017 Warrants were repriced from $1.75 to $1.055 as a result of a down round, the Company recorded a dividend of $303 during the six months ended June 30, 2020. Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: · Level 1—Quoted prices in active markets for identical assets or liabilities. · Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value using Level 3 inputs. There were no transfers within the hierarchy during the three and six months ended June 30, 2020 or the year ended December 31, 2019. A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands): Total Level 1 Level 2 Level 3 June 30, 2020 Assets: Cash equivalents $ 64,887 $ 64,887 $ — $ — Total assets $ 64,887 $ 64,887 $ — $ — December 31, 2019 Assets: Cash equivalents $ 3,891 $ 3,891 $ — $ — Total assets $ 3,891 $ 3,891 $ — $ — Cash equivalents of $64,887 and $3,891 as of June 30, 2020 and December 31, 2019, respectively, consisted of overnight investments and money market funds and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The carrying value of the research and development incentive receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these assets and liabilities. Leases In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases, or ASU 2016-02, to enhance the transparency and comparability of financial reporting related to leasing arrangements. The Company adopted ASU 2016-02 on January 1, 2019, or the effective date, and used the effective date as its date of initial application. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. The Company has determined that the rate implicit in the lease is not determinable and the Company does not have borrowings with similar terms and collateral. Therefore, the Company considered a variety of factors, including observable debt yields from comparable companies and the volatility in the debt market for securities with similar terms, in determining that 8% was reasonable to use as the incremental borrowing rate for purposes of the calculation of lease liabilities. In accordance with the guidance in ASU 2016-02, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components. Although separation of lease and non-lease components is required, certain practical expedients are available. Entities may elect the practical expedient to not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company has elected to account for the lease and non-lease components of each of its operating leases as a single lease component and allocate all of the contract consideration to the lease component only. The lease component results in an operating right-of-use asset being recorded on the consolidated balance sheets and amortized such that lease expense is recorded on a straight line basis over the term of the lease. Revenue Recognition The Company records revenue in accordance with Accounting Standards Codification, or ASC, Topic 606, Revenue From Contracts with Customers. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. License revenue. The Company’s performance obligations under its license agreements may include providing intellectual property licenses, performing technology transfer, performing research and development consulting services and notifying the customer of any enhancements to licensed technology or new technology that it discovers, among others. The Company determined that its performance obligations under its license agreements as evaluated at contract inception were not distinct and represented a single performance obligation. For these agreements, revenue is recognized using a proportional performance model, representing the transfer of goods or services as activities are performed over the term of the agreement. Upfront payments are also amortized to revenue on a straight-line basis over the performance period. Upfront payment contract liabilities resulting from the Company’s license agreements do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. When no performance obligations are required of the Company, or following the completion of the performance obligation period, such amounts are recognized upon transfer of control of the goods or services to the customer. Generally, all amounts received or due other than sales-based milestones and royalties are classified as license revenues. Sales-based milestones and royalties under the Company’s license agreements will be recognized as royalty revenue in the period the related sale occurred. The Company generally invoices its licensees upon the completion of the effort or achievement of a milestone, based on the terms of each agreement. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods as performance obligations are satisfied. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. Research and Development Services. The promises under the Company's license agreements may include research and development services to be performed by the Company on behalf of the customer. Payments or reimbursements resulting from the Company's research and development efforts are recognized as the services are performed and presented on a gross basis because the Company is the principal for such efforts. Reimbursements from and payments to the customer that are the result of a collaborative relationship with a partner, instead of a customer relationship, such as co-development activities, are recorded as a reduction to research and development expense. Customer Options. If an arrangement is determined to contain customer options that allow the customer to acquire additional goods or services, the goods and services underlying the customer options that are not determined to be material rights are not considered to be performance obligations at the outset of the arrangement, as they are contingent upon option exercise. The Company evaluates the customer options for material rights, or options to acquire additional goods or services for free or at a discount. If the customer options are determined to represent a material right, the material right is recognized as a separate performance obligation at the outset of the arrangement. The Company allocates the transaction price to material rights based on the relative standalone selling price, which is determined based on the identified discount and the probability that the customer will exercise the option. Amounts allocated to a material right are not recognized as revenue until, at the earliest, the option is exercised. Milestone Payments. At the inception of each arrangement that includes research or development milestone payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The Company evaluates factors such as the scientific, clinical, regulatory, commercial, and other risks that must be overcome to achieve the particular milestone in making this assessment. There is considerable judgment involved in determining whether it is probable that a significant revenue reversal would not occur. At the end of each subsequent reporting period, the Company reevaluates the probability of achievement of all milestones subject to constraint and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. Royalties . For arrangements that include sales-based royalties, including milestone payments upon first commercial sales and milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Collaborative Arrangements The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and therefore within the scope of ASC Topic 808, Collaborative Arrangements (ASC 808). This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and which elements of the collaboration are more reflective of a vendor-customer relationship and therefore within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. Amounts that are owed to collaboration partners are recognized as an offset to collaboration revenues as such amounts are incurred by the collaboration partner. Where amounts owed to a collaboration partner exceed the Company's collaboration revenues in each quarterly period, such amounts are classified as research and development expense. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above under ASC 606. See Note 3 for a complete discussion of the revenue recognition for the Company's license agreement. Net Loss per Share Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options and warrants. Subsequent Events The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB, and are early adopted by the Company or adopted as of the specified effective date. In November 2018, the FASB issued “ASU 2018-18, Clarifying the Interaction between Topic 808 and Topic 606.” The objective of the standard is to clarify the interaction between ASC Topic 808--Collaborative Arrangements and ASC Topic 606--Revenue from Contracts with Customers. Currently, ASC Topic 808 does not provide comprehensive recognition or measurement guidance for collaborative arrangements, and the accounting for those arrangements is often based on an analogy to other accounting literature or an accounting policy election. Similarly, aspects of ASC Topic 606 have resulted in uncertainty in practice about the effect of the revenue standard on the accounting for collaborative arrangements. The standard became effective for us beginning on January 1, 2020 and the adoption of this ASU did not have a material impact on our financial condition, results of operations, cash flows, and financial statement disclosures.

BeiGene Exclusive Option and Li

BeiGene Exclusive Option and License Agreement	6 Months Ended
	Jun. 30, 2020
BeiGene Exclusive Option and License Agreement
BeiGene Exclusive Option and License Agreement	3. BeiGene Exclusive Option and License Agreement Terms of Agreement On January 3, 2020, the Company entered into an exclusive option and license agreement (the "BeiGene Agreement") with BeiGene, Ltd. ("BeiGene") for the clinical development and commercialization of DKN-01, in Asia (excluding Japan), Australia, and New Zealand. The Company retains exclusive rights for the development, manufacturing, and commercialization of DKN-01 for the rest of the world. Pursuant to the BeiGene Agreement, the Company received an upfront cash payment of $3,000 from BeiGene in exchange for granting BeiGene an option to an exclusive license to develop and commercialize DKN-01 in Asia (excluding Japan), Australia, and New Zealand. The Company is eligible to receive up to $132,000 in future option exercise and milestone payments, based upon the achievement of certain development, regulatory, and sales milestones, as well as tiered royalties on any product sales of DKN-01 in the licensed territory. The Company is responsible for conducing development activities prior to the exercise of the option. After the option is exercised, BeiGene is solely responsible for the development and commercialization of DKN-01 in the territory. The BeiGene Agreement continues in effect until the earlier of: (i) 120 days after the end of the option period, if BeiGene has not exercised the option by such date; and (ii) on a country-by country and Licensed Product-by-Licensed Product (as defined in the BeiGene Agreement) basis, the expiration of the Royalty Term (as defined in the BeiGene Agreement) applicable to such licensed product in such country. At any time, BeiGene may terminate the agreement by providing at least 60 days written notice of termination to the Company. Upon termination of the License Agreement, all rights granted by the Company to BeiGene terminate. Revenue Recognition The Company evaluated the BeiGene Agreement to determine whether it is a collaborative arrangement for purposes of ASC 808. The Company concluded that because both parties were active participants and were exposed to the risks and rewards of the BeiGene Agreement, that such activities are under the scope of ASC 808. The Company concluded that BeiGene was a customer with regard to the combined license and research & development activities and as such the contract should be evaluated under ASC 606. In determining the appropriate amount of revenue to be recognized under ASC 606 as the Company fulfills its obligations under the Agreement, the Company performs the following steps: (i) identifies the promised goods or services in the contract; (ii) determines whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measures the transaction price, including any constraints on variable consideration; (iv) allocates the transaction price to the performance obligations; and (v) recognizes revenue when (or as) the Company satisfies each performance obligation. The Company identified the following material promises under the BeiGene Agreement: (1) option to an exclusive license to develop and commercialize DKN-01 in Asia (excluding Japan), Australia, and New Zealand, (2) participation in a joint development committee, (3) technology transfer services and (4) pre-option research and development services. The Company determined that the option to an exclusive license in the territory does not represent a material right. Additionally, the Company determined that the participation in the joint development committee, research and development services and technology transfer services are not distinct from each other, as each has limited value without the other. As such, for the purposes of ASC 606, the Company determined that these four material promises, described above, should be combined into a single performance obligation. The Company determined the transaction price is equal to the up-front fee of $3,000. The transaction price was fully allocated to the single performance obligation and is recognized as revenue on a straight-line basis over the performance period of the research and development services . During the three and six months ended June 30, 2020, the Company recognized $375 and $750, respectively, of license revenue related to the up-front fee received from BeiGene. The Company did not have any such license revenue during the three and six months ended June 30, 2019. Cost of contract acquisition The Company incurred contract acquisition costs of $270 which were capitalized under ASC 340-40 as incremental costs of obtaining the contract with BeiGene. This cost is amortized on a straight-line basis over the performance period of the research and development services. The total amount of amortization expense during the three and six months ended June 30, 2020 was $34 and $68, respectively, and the closing balance recorded in deferred costs as of June 30, 2020 was $202. Royalties As the license is deemed to be the predominant item to which sales-based royalties relate, the Company will recognize revenue when the related sales occur. No royalty revenue was recognized during the three and six months ended June 30, 2020. The following table presents a summary of the activity in the Company's contract liabilities, related to the upfront cash payment received of $3,000, during the six months ended June 30, 2020 (in thousands): Balance at Balance at January 1,2020 Additions Deductions June 30, 2020 Contract liabilities Deferred revenue - current $ — $ 1,875 $ (375) $ 1,500 Deferred revenue - non current — 1,125 (375) 750 Total contract liabilities $ — $ 3,000 $ (750) $ 2,250

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Accrued Expenses	4. Accrued Expenses Accrued expenses consist of the following: June 30, December 31, 2020 2019 Clinical trials $ 1,539 $ 1,828 Professional fees 110 609 Payroll and related expenses 583 1,004 Accrued expenses $ 2,232 $ 3,441

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases
Leases	5. Leases In February 2016, the FASB issued ASU 2016-02, Leases, or ASU 2016-02. ASU 2016-02 requires a lessee to recognize on its balance sheet (for both finance and operating leases) a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company adopted ASU 2016-02 on January 1, 2019, on the effective date, and used the effective date as its date of initial application. As such, the Company did not adjust prior period amounts. The Company also elected to adopt the practical expedients upon transition, which permit companies to not reassess lease identification, classification, and initial direct costs under ASU 2016-02 for leases that commenced prior to the effective date. The Company has operating leases for real estate in the United States and does not have any finance leases. The Company’s leases may contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s consolidated balance sheets are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain to not exercise. The Company has existing leases that include variable lease and non-lease components that are not included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. Such payments primarily include common area maintenance charges and increases in rent payments that are driven by factors such as future changes in an index (e.g., the Consumer Price Index). In calculating the present value of future lease payments, the Company utilized its incremental borrowing rate based on the remaining lease term at the date of adoption. The Company has elected to account for each lease component and its associated non-lease components as a single lease component and has allocated all of the contract consideration across lease components only. This will potentially result in the initial and subsequent measurement of the balances of the right-of-use asset and lease liability for leases being greater than if the policy election was not applied. The Company has existing net leases in which the non-lease components (e.g. common area maintenance, maintenance, consumables, etc.) are paid separately from rent based on actual costs incurred and therefore are not included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. On January 1, 2019, the Company recorded a right-of-use asset of $1,755 and a lease liability of $1,720 on its consolidated balance sheets and reclassified a rent liability against the right-of-use asset of $35. As of June 30, 2020, a right-of-use asset of $711 and lease liability of $742 are reflected on the consolidated balance sheets. The Company recorded rent expense of $142 and $209, respectively, during the three months ended June 30, 2020 and 2019 and $340 and $418, respectively, for the six months ended June 30, 2020. Future lease payments under non-cancelable operating leases as of June 30, 2020 are detailed as follows: Future Operating Lease Payments 2020 $ 214 2021 434 2022 146 Total Lease Payments 794 Less: imputed interest (52) Total operating lease liabilities $ 742

Warrants

Warrants	6 Months Ended
	Jun. 30, 2020
Warrants
Warrants	6. Warrants As of June 30, 2020, outstanding warrants to purchase common stock, all of which are classified as equity warrants, consisted of the following: June 30, 2020 Date Number of Shares Exercisable Issuable Exercise Price 1/23/2017 54,516 $ 0.01 11/14/2017 2,549,840 $ 1.055 2/5/2019 7,491,442 $ 1.95 3/5/2020 14,413,902 $ 0.001 3/5/2020 25,945,035 $ 2.11 6/22/2020 2,250,000 $ 0.001 52,704,735 2017 Warrants The 2017 Warrants contain full ratchet anti-dilution protection provisions. Prior to January 1, 2019, the Company classified the 2017 Warrants as a liability on its consolidated balance sheet because each warrant represented a freestanding financial instrument that, due to the potential variable nature of the exercise price, is not considered to be indexed to the Company’s own shares. The warrant liability was initially recorded at fair value upon entering into the November 2017 Private Placement and has been subsequently remeasured to fair value at each reporting date. Changes in the fair value of the warrant liability were recognized as gains (losses) in the Company’s consolidated statement of operations. On January 1, 2019, the Company adopted ASU 2017-11 and concluded that the 2017 Warrants now qualify for equity classification. The Company applied the guidance retrospectively to the 2017 Warrants by means of a cumulative-effect adjustment to its statement of financial position as of the beginning of the interim and annual period beginning January 1, 2019. The Company performed a final remeasurement of the warrant liability as of January 1, 2019 and reclassified $3,448 to additional paid in capital. The Company will recognize on a prospective basis the value of the effect of the down round feature in the warrant when it is triggered (i.e., when the exercise price is adjusted downward). This value is measured as the difference between (1) the financial instrument’s fair value (without the down round feature) using the pre-trigger exercise price and (2) the financial instrument’s fair value (with the down round feature) using the reduced exercise price. The value of the effect of the down round feature will be treated as a dividend and a reduction to income available to common stockholders in the basic EPS calculation. In connection with the 2019 Public Offering, when the 2017 Warrants were repriced from $6.085 to $1.75, the Company recorded a dividend of $359 during the six months ended June 30, 2019. In connection with the January 2020 Private Placement, when the 2017 Warrants were repriced from $1.75 to $1.055, the Company recorded a dividend of $303 during the six months ended June 30, 2020. During the six months ended June 30, 2020, 208,254 of 2017 Warrants were exercised for cash resulting in gross proceeds to the Company of $220. 2019 Warrants On February 5, 2019, in connection with the 2019 Public Offering, the Company issued immediately exercisable warrants (the “2019 Warrants”) to purchase 7,557,142 shares of common stock to investors. The 2019 Warrants have an exercise price of $1.95 per share and expire on February 5, 2026. The 2019 Warrants qualify for equity classification. During the six months ended June 30, 2020, 65,700 of 2019 Warrants were exercised for cash resulting in gross proceeds to the Company of $128. March 2020 Warrants On January 3, 2020, the Company entered into a Securities Purchase Agreement with investors, providing for a private placement transaction exempt from the Securities Act of 1933, as amended, pursuant to which the Company issued and sold 1,421,801 shares of its Series A Preferred Stock, at a purchase price of $10.54 per share, and 1,137,442 shares of its Series B Preferred Stock at a purchase price of $10.55 per share, and one (1) share of the Company's Special Voting Stock entitling the purchaser of Series A Preferred Stock to elect one member of the Company's board of directors. On March 5, 2020, the Company's stockholders approved the conversion of the Series A Preferred Stock into a pre-funded warrant to purchase 14,413,902 shares of common stock at an exercise price of $0.001 (the “March 2020 Pre-funded Warrants”) and the conversion of the Series B Preferred Stock into 11,531,133 shares of common stock. Each investor also received a warrant to purchase an equal number of shares of common stock at an exercise price of $2.11 per share (the “Coverage Warrants”). The March 2020 Pre-funded Warrants and the Coverage Warrants expire on March 5, 2027 and qualify for equity classification. June 2020 Warrants On June 22, 2020, the Company completed a Public Offering ("the 2020 Public Offering") whereby the Company issued 20,250,000 shares of its common stock, at $2.00 per share and, in lieu of common stock, offered pre-funded warrants (the "June 2020 Pre-funded Warrants") to purchase up to 2,250,000 shares of its common stock to certain investors. The June 2020 Pre-funded Warrants have an exercise price of $0.001 per share, expire on June 22, 2027 and qualify for equity classification.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2020
Common Stock
Common Stock	7. Common Stock Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to the preferential dividend rights of the preferred stockholders. Through June 30, 2020, no dividends have been declared. Public Offering of Common Stock — February 2019 On February 5, 2019, the Company completed the 2019 Public Offering whereby the Company issued 7,557,142 shares of its common stock at a price of $1.75 per share, which included 985,714 shares issued pursuant to the underwriters’ exercise of their option to purchase additional shares of common stock, each share issued with a warrant to purchase one share of common stock. Each warrant has an exercise price of $1.95 per share with an exercise period expiring seven years from the date of issuance. The aggregate net proceeds received by the Company from the 2019 Public Offering were approximately $12,122, net of underwriting discounts and commissions and estimated offering expenses payable by the Company. Issuance of Common Stock under Distribution Agreement On September 7, 2018, the Company filed a Prospectus Supplement to register the offer and sale of shares of common stock having an aggregate offering price of up to $30,000 pursuant to the terms of a distribution agreement, or the Distribution Agreement, with Raymond James & Associates, Inc. During the year ended December 31, 2019, the Company issued 1,033,147 shares under the Distribution Agreement, for net proceeds of $1,923. In June 2020, the Company terminated the Distribution Agreement and did not issue any shares under the Distribution Agreement during the six months ended June 30, 2020. Lincoln Park Purchase Agreements On July 10, 2019, the Company entered into a Commitment Purchase Agreement and a Registration Rights Agreement with Lincoln Park, pursuant to which the Company has the right to sell to Lincoln Park up to $20,000 in shares of its common stock, subject to certain limitations and conditions set forth in the Commitment Purchase Agreement. As consideration for Lincoln Park’s commitment to purchase shares of common stock pursuant to the Commitment Purchase Agreement, the Company issued to Lincoln Park 330,000 shares of common stock. The Company did not receive any cash proceeds from the issuance of such shares. During the three and six months ended June 30, 2020, the Company did not issue any shares under the Commitment Purchase Agreement . On July 11, 2019, the Company entered into a Registered Offering Purchase Agreement, under which the Company agreed to sell to Lincoln Park, and Lincoln Park agreed to purchase 571,429 shares of common stock, at a price of $1.75 per share for an aggregate purchase price of $1,000, pursuant to the Company’s effective shelf Registration Statement on Form S-3, including the prospectus supplement thereto dated July 11, 2019. January 2020 Private Placement On January 3, 2020, the Company issued and sold 1,421,801 shares of its Series A Preferred Stock at a purchase price of $10.54 per share, and 1,137,442 shares of its Series B Preferred Stock at a purchase price of $10.55 per share, and one (1) share of its Special Voting Stock, entitling the purchaser of Series A Preferred Stock to elect one member of the Company’s board of directors, for aggregate net proceeds to the Company of approximately $25,322. On March 5, 2020, the Company’s stockholders approved the conversion of the Series A Preferred Stock into a pre-funded warrant to purchase 14,413,902 shares of common stock at an exercise price of $0.001 per share and the conversion of the Series B Preferred Stock into 11,531,133 shares of its common stock, par value $0.001 per share. Each investor also received the Coverage Warrants to purchase an equal number of shares at an exercise price of $2.11 per share. In connection with the January 2020 Private Placement, Series A Preferred Stock holders and Series B Preferred Stock holders were entitled to cash dividends at fixed cumulative percentage of 8% per annum plus any dividends declared on outstanding common stock on an as-converted basis, effective on the issuance date of the Series A Preferred Stock and Series B Preferred Stock. The cash dividends were converted to shares of common stock upon the conversion of the Series A Preferred Stock to pre-funded warrants and Series B Preferred Stock to common stock. During the six months ended June 30, 2020, the Company recorded $372 of Series A Preferred Stock and Series B Preferred Stock dividends, which qualify as cumulative dividends, and in the calculation of EPS are subtracted from net income in arriving at income attributable to common stockholders. The Company determined that the embedded conversion features of the Series A Preferred Stock and Series B Preferred Stock to receive the Coverage Warrants both met the definition a beneficial conversion feature and should be accounted for separately as a derivative. The recognition of the beneficial conversion feature occurred upon the conversion of the Series A Preferred Stock into pre-funded warrants and Series B Preferred Stock into common stock and the issuance of the Coverage Warrants. The Company measured the beneficial conversion features’ intrinsic values on January 3, 2020 and determined that the beneficial conversion features were valued at $5,226 for Series A and $4,173 for Series B, respectively. Upon conversion, the discount originated by the beneficial conversion option, at its intrinsic value for Series A Preferred Stock and Series B Preferred Stock, was immediately recognized as a dividend. The dividend is reflected as an adjustment to basic and diluted net loss per share attributable to common stockholders. Public Offering of Common Stock –- June 2020 On June 22, 2020, the Company completed the 2020 Public Offering, whereby the Company issued 20,250,000 shares of its common stock at $2.00 per share and, in lieu of common stock, issued certain investors 2,250,000 of its June 2020 Pre-funded Warrants. The June 2020 Pre-funded Warrants have an exercise price of $0.001 per share, expire on June 22, 2027 and qualify for equity classification. On June 25, 2020, the underwriters exercised their right to purchase 3,375,000 additional shares of the Company’s common stock at the public offering price per share of common stock, less underwriting discounts and commissions. The aggregate net proceeds received by the Company from the 2020 Public Offering were approximately $48,276, net of underwriting discounts and commissions and estimated offering expenses payable by the Company.

Equity Incentive Plans

Equity Incentive Plans	6 Months Ended
	Jun. 30, 2020
Equity Incentive Plans
Equity Incentive Plans	8 . Equity Incentive Plans Equity Incentive Plans In September 2012, the Company adopted the 2012 Equity Incentive Plan, as amended (the “Plan”), which provides designated employees of the Company and its affiliates, certain consultants and advisors who perform services for the Company and its affiliates, and nonemployee members of the board of directors of the Company and its affiliates with the opportunity to receive grants of incentive stock options, nonqualified stock options and stock awards. On January 20, 2017, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”). Beginning on January 1, 2018, the number of shares of common stock authorized for issuance pursuant to the 2016 Plan was increased each January 1 by an amount equal to four percent (4%) of the Company’s outstanding common stock as of the end of the immediately preceding calendar year or such other amount as determined by the compensation committee of the Company’s board of directors. In 2019, the board of directors and the stockholders approved and authorized an additional 3,000,000 shares of Common Stock to be added to the shares authorized for issuance under the 2016 Plan. As of June 30, 2020, there were 1,344,866 shares available for grant under the Company’s equity incentive plans. A summary of stock option activity under the Equity Plans is as follows: Weighted Average Weighted Aggregate Exercise Price Average Remaining Intrinsic Options Per Share Life in Years Value Outstanding at December 31, 2019 4,024,566 $ 7.48 7.98 $ 2 Granted 1,750,000 $ 2.18 — — Exercised (32,778) $ 1.53 — — Forfeited (260,157) $ 6.96 — — Outstanding at June 30, 2020 5,481,631 $ 5.85 8.18 $ 1,313 Options exercisable at June 30, 2020 2,791,017 $ 9.12 7.17 $ 332 Options vested and expected to vest at June 30, 2020 5,481,631 $ 5.85 8.18 $ 1,313 The grant date fair value of the options granted during the year ended December 31, 2019 and the six months ended June 30, 2020, was estimated at the date of grant using the Black-Scholes option valuation model. The expected life was estimated using the “simplified” method as defined by the SEC's Staff Accounting Bulletin 107, Share-Based Payment. The expected volatility was based on the historical volatility of comparable public companies from a representative peer group selected based on industry and market capitalization data. The risk-free interest rate was based on the continuous rates provided by the U.S. Treasury with a term approximating the expected life of the option. The expected dividend yield was 0% because the Company does not expect to pay any dividends for the foreseeable future. The Company elected the straight-line attribution method in recognizing the grant date fair value of options issued over the requisite service periods of the awards, which are generally the vesting periods. The assumptions that the Company used to determine the grant-date fair value of stock options granted to employees and directors during the year ended December 31, 2019 and the six months ended June 30, 2020 were as follows, presented on a weighted average basis: Six Months Year Ended Ended June 30, December 31, 2020 2019 Expected volatility 66.94 % 66.94 % Weighted average risk-free interest rate 0.79 % % Expected dividend yield 0.00 % 0.00 % Expected term (in years) 6.84 6.77 Stock options generally vest over a three or four year period, as determined by the compensation committee of the board of directors at the time of grant. The options expire ten years from the grant date. As of June 30, 2020, there was approximately $4,069 of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a remaining weighted-average period of approximately 2.21 years. The Company recognized stock-based compensation expense related to the issuance of stock option awards to employees and non-employees in the condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 249 $ 179 $ 438 $ 355 General and administrative 290 720 658 1,491 Total $ 539 $ 899 $ 1,096 $ 1,846 Restricted Stock Units During the year ended December 31, 2019, the Company issued 181,000 restricted stock units ("RSUs") to employees under the 2016 Plan. Upon vesting of the RSUs, the Company has the option to settle the award by either issuing shares of the Company's common stock or paying an amount of cash equal to the fair value of the Company's common stock on the settlement date. In each of October 2019 and January 2020, the Company cash settled 90,500 RSUs. During the six months ended June 30, 2020, the Company granted 660,606 RSUs to an executive officer that will cliff vest and will be settled after three years of continuous service, or upon a change of control of the Company, whichever is earlier, pursuant to the 2016 Plan. During the six months ended June 30, 2020, the Company recognized $91 of stock based compensation expense related to RSUs. The Company did not recognize any stock based compensation expense related to RSUs during the six months ended June 30, 2019. The following table presents a summary of outstanding RSUs under the 2016 Plan as of June 30, 2020: Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2019 90,500 $ 1.74 Awarded 660,606 $ 1.42 Settled in cash (90,500) $ 1.74 Outstanding at June 30, 2020 660,606 $ 1.42 As of June 30, 2020, there were 660,606 shares outstanding covered by RSUs that are expected to vest. The weighted average grant date fair value of these shares of restricted stock was $1.42 per share and the aggregate grant date fair value of these shares of restricted stock was approximately $938. As of June 30, 2020, there was approximately $847 of unrecognized compensation costs, net of estimated forfeitures, related to RSUs granted to employees, which are expected to be recognized as expense over a remaining weighted average period of 2.71 years.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2020
Net Loss Per Share
Net Loss Per Share	9. Net Loss Per Share Basic and diluted net loss per share for the three and six months ended June 30, 2020 and 2019 was calculated as follows (in thousands except share and per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net loss $ (6,516) $ (8,366) $ (13,747) $ (16,969) Dividend attributable to down round feature of warrants — — (303) (359) Dividend attributable to Series A & B convertible preferred stock — — (372) — Series A & B convertible preferred stock - beneficial conversion feature — — (9,399) — Net loss attributable to common stockholders for basic and diluted loss per share $ (6,516) $ (8,366) $ (23,821) $ (17,328) Denominator: Weighted average number of common shares outstanding – basic and diluted 52,442,597 22,906,025 42,037,405 21,081,869 Net loss per share attributable to common stockholders – basic and diluted $ (0.12) $ (0.37) $ (0.57) $ (0.82) Included within weighted average common shares outstanding are common shares issuable upon the exercise of the pre-funded warrants as the warrants are exercisable at any time for nominal consideration, and as such, the shares are considered outstanding for the purpose of calculating basic and diluted net loss per share attributable to common stockholders. The Company’s potentially dilutive securities include RSUs, stock options and warrants. These securities were excluded from the computations of diluted net loss per share for the three and six months ended June 30, 2020 and 2019, as the effect would be to reduce the net loss per share. The following table includes the potential shares of common stock, presented based on amounts outstanding at each period end, that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Restricted stock units to purchase common stock 660,606 — 660,606 — Options to purchase common stock 5,481,631 4,058,962 5,481,631 4,058,962 Warrants to purchase common stock 36,040,833 10,369,752 36,040,833 10,369,752 42,183,070 14,428,714 42,183,070 14,428,714

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies Manufacturing Agreements —The Company is party to manufacturing agreements with vendors to manufacture DKN‑01, its lead product candidate, for use in clinical trials. As of June 30, 2020, there were $794 noncancelable commitments under these agreements. License and Service Agreement —On January 3, 2011, the Company entered into a license agreement with Eli Lilly and Company (“Lilly”) to grant a license to the Company for certain intellectual property rights relating to pharmaceutically active compounds that may be useful in the treatment of bone healing, cancer and, potentially, other medical conditions. The Company previously issued 9,000,000 shares of Series A Preferred Stock to Lilly in consideration for the grant of the license. As defined in the license agreement, the Company would be required to pay royalties to Lilly based upon a percentage in the low single digits of net sales of developed products, if and when achieved. However, there can be no assurance that clinical or commercialization success of developed products will occur, and no royalties have been paid or accrued through June 30, 2020. License Agreement —On May 28, 2015, the Company entered into a license agreement with Lonza Sales AG (“Lonza”), pursuant to which Lonza granted the Company a world-wide, non-exclusive license for certain intellectual property relating to a gene expression system for manufacturing DKN‑01. As defined in the license agreement, the Company would be required to pay royalties to Lonza based on a percentage in the low single digits of net sales of DKN‑01, if and when achieved. However, there can be no assurance that clinical or commercialization success will occur, and no royalties have been paid or accrued through June 30, 2020. Legal Proceedings —At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to its legal proceedings. A patent covering the TRX518 antibody and its uses in methods of inducing or enhancing an immune response in a subject was granted in 2013 to the Company by the European Patent Office (EPO). Three notices of opposition to this patent were filed: two by major pharmaceutical companies and a third by an individual, possibly on behalf of a major pharmaceutical company. At the conclusion of the opposition proceedings before the Opposition Division of the EPO, the Opposition Division issued a decision indicating that the Company’s patent was maintained with modified claims that differ from the claims as originally granted. These narrowed claims cover the TRX518 antibody and uses of the TRX518 antibody in methods of inducing or enhancing an immune response in a subject. The Company has filed an appeal of the decision of the Opposition Division seeking to obtain broader claims that more closely reflect the claims as granted in the patent. The EPO Board of Appeal has scheduled a date for the appeal hearing in September 2020. In 2016, a patent covering the use of the TRX518 antibody in combination with a chemotherapeutic agent for treating cancer was granted to the Company by the EPO. In March 2017, notices of opposition to this patent were filed at the EPO by ten different entities, including several major pharmaceutical companies. Oral proceedings at the EPO took place on December 4 and 5, 2018. At the conclusion of the oral proceedings, the Opposition Division decided that the patent should be revoked in its entirety on the ground that the claims as granted contained added matter. Subsequently, the Opposition Division issued an interlocutory decision restating its conclusion that the claims as granted contained added matter and revoking the patent. The Company has filed an appeal of the decision of the Opposition Division seeking to obtain a reversal of the Opposition Division’s decision on added matter. The EPO Board of Appeal has not yet scheduled the appeal hearing. Indemnification Agreements —In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of June 30, 2020 or December 31, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions are eliminated upon consolidation.
Use of Estimates	Use of Estimates The presentation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Research and development incentive income and receivable	Research and development incentive income and receivable The Company recognizes other income from Australian research and development incentives when there is reasonable assurance that the income will be received, the relevant expenditure has been incurred, and the consideration can be reliably measured. The research and development incentive is one of the key elements of the Australian Government’s support for Australia’s innovation system and is supported by legislative law primarily in the form of the Australian Income Tax Assessment Act 1997, as long as eligibility criteria are met. Management has assessed the Company’s research and development activities and expenditures to determine which activities and expenditures are likely to be eligible under the research and development incentive regime described above. At each period end, management estimates the refundable tax offset available to the Company based on available information at the time. This estimate is also reviewed by external tax advisors on an annual basis. Under the program, a percentage of eligible research and development expenses incurred by the Company through its subsidiary in Australia are reimbursed. The percentage was 43.5% for the year ended December 31, 2019 and for the three and six months ended June 30, 2020. The research and development incentive receivable represents an amount due in connection with the above program. The Company has recorded a research and development incentive receivable of $305 and $185 as of June 30, 2020 and December 31, 2019, respectively, in the condensed consolidated balance sheets and other income from Australian research and development incentives of $30 and $61 , respectively, for the three months ended June 30, 2020 and 2019, and $115 and $136 for the six months ended June 30, 2020 and 2019, respectively, in the condensed consolidated statements of operations related to refundable research and development incentive program payments in Australia. The following table shows the change in the research and development incentive receivable from December 31, 2018 to June 30, 2020 (in thousands): Balance at December 31, 2018 $ 836 Australian research and development incentive income, net 132 Cash received for 2018 eligible expenses (757) Foreign currency translation (26) Balance at December 31, 2019 185 Australian research and development incentive income, net 115 Foreign currency translation 5 Balance at June 30, 2020 $ 305
Foreign Currency Translation	Foreign Currency Translation The financial statements of the Company’s Australian subsidiary are measured using the local currency as the functional currency. Assets and liabilities of this subsidiary are translated into U.S. dollars at an exchange rate as of the consolidated balance sheet date. Equity is translated at historical exchange rates. Revenues and expenses are translated into U.S. dollars at average rates of exchange in effect during the period. The resulting cumulative translation adjustments have been recorded as a separate component of stockholders’ equity. Realized foreign currency transaction gains and losses are included in the results of operations.
Deferred Costs	Deferred Costs The Company capitalizes certain legal, professional, accounting and other third-party fees that are directly associated with in-process equity financings as deferred costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficiency) as a reduction of additional paid-in capital generated as a result of the offering. The Company also capitalizes certain contract acquisition costs. During the six months ended June 30, 2020, the Company incurred contract acquisition costs which were capitalized under ASC 340-40 as incremental costs of obtaining the contract with BeiGene. This cost is amortized on a straight-line basis over the performance period of the research and development services. As of June 30, 2020 and December 31, 2019 there was $413 and $831, respectively, of deferred costs.
Deposits	Deposits As of June 30, 2020 and December 31, 2019, $939 and $1,099, respectively, of deposits made by the Company with certain service providers that are to be applied to future payments due under the service agreements or returned to the Company if not utilized, were recorded in the condensed consolidated balance sheets.
Warrants	Warrants On January 1, 2019, the Company adopted ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815) (“ASU 2017-11”), which changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down round feature when triggered with the effect treated as a dividend and as a reduction of income available to common stockholders in basic EPS. The Company concluded that the common stock warrants (the “2017 Warrants”) issued in connection with the private placement of common stock completed in November 2017 (the “November 2017 Private Placement”), qualify for equity classification. The adoption guidance of ASU 2017-11 provides for a modified retrospective adoption. The Company applied the guidance retrospectively to the 2017 Warrants by means of a cumulative-effect adjustment to its statement of financial position as of the beginning of the interim and annual period beginning January 1, 2019. The Company performed a final remeasurement of the warrant liability as of January 1, 2019 and reclassified $3,448 from warrant liability to equity. The Company will recognize on a prospective basis the value of the effect of the down round feature in the 2017 Warrants when it is triggered (i.e., when the exercise price is adjusted downward). This value is measured as the difference between (1) the financial instrument’s fair value (without the down round feature) using the pre-trigger exercise price and (2) the financial instrument’s fair value (with the down round feature) using the reduced exercise price. The value of the effect of the down round feature will be treated as a dividend and a reduction to income available to common stockholders in the basic EPS calculation. In connection with the public offering, completed in February 2019 (the “2019 Public Offering”), when the 2017 Warrants were repriced from $6.085 to $1.75 as a result of a down round, the Company recorded a dividend of $359 during the six months ended June 30, 2019. In connection with the private placement of common stock completed in January 2020 (the “January 2020 Private Placement”), when the 2017 Warrants were repriced from $1.75 to $1.055 as a result of a down round, the Company recorded a dividend of $303 during the six months ended June 30, 2020.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: · Level 1—Quoted prices in active markets for identical assets or liabilities. · Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value using Level 3 inputs. There were no transfers within the hierarchy during the three and six months ended June 30, 2020 or the year ended December 31, 2019. A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands): Total Level 1 Level 2 Level 3 June 30, 2020 Assets: Cash equivalents $ 64,887 $ 64,887 $ — $ — Total assets $ 64,887 $ 64,887 $ — $ — December 31, 2019 Assets: Cash equivalents $ 3,891 $ 3,891 $ — $ — Total assets $ 3,891 $ 3,891 $ — $ — Cash equivalents of $64,887 and $3,891 as of June 30, 2020 and December 31, 2019, respectively, consisted of overnight investments and money market funds and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The carrying value of the research and development incentive receivable, accounts payable and accrued liabilities approximate their fair value due to the short-term nature of these assets and liabilities.
Leases	Leases In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases, or ASU 2016-02, to enhance the transparency and comparability of financial reporting related to leasing arrangements. The Company adopted ASU 2016-02 on January 1, 2019, or the effective date, and used the effective date as its date of initial application. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets, lease liabilities and, if applicable, long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. The Company has determined that the rate implicit in the lease is not determinable and the Company does not have borrowings with similar terms and collateral. Therefore, the Company considered a variety of factors, including observable debt yields from comparable companies and the volatility in the debt market for securities with similar terms, in determining that 8% was reasonable to use as the incremental borrowing rate for purposes of the calculation of lease liabilities. In accordance with the guidance in ASU 2016-02, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Then the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on fair values to the lease components and non-lease components. Although separation of lease and non-lease components is required, certain practical expedients are available. Entities may elect the practical expedient to not separate lease and non-lease components. Rather, they would account for each lease component and the related non-lease component together as a single component. The Company has elected to account for the lease and non-lease components of each of its operating leases as a single lease component and allocate all of the contract consideration to the lease component only. The lease component results in an operating right-of-use asset being recorded on the consolidated balance sheets and amortized such that lease expense is recorded on a straight line basis over the term of the lease.
Revenue Recognition	Revenue Recognition The Company records revenue in accordance with Accounting Standards Codification, or ASC, Topic 606, Revenue From Contracts with Customers. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.
License revenue	License revenue. The Company’s performance obligations under its license agreements may include providing intellectual property licenses, performing technology transfer, performing research and development consulting services and notifying the customer of any enhancements to licensed technology or new technology that it discovers, among others. The Company determined that its performance obligations under its license agreements as evaluated at contract inception were not distinct and represented a single performance obligation. For these agreements, revenue is recognized using a proportional performance model, representing the transfer of goods or services as activities are performed over the term of the agreement. Upfront payments are also amortized to revenue on a straight-line basis over the performance period. Upfront payment contract liabilities resulting from the Company’s license agreements do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. When no performance obligations are required of the Company, or following the completion of the performance obligation period, such amounts are recognized upon transfer of control of the goods or services to the customer. Generally, all amounts received or due other than sales-based milestones and royalties are classified as license revenues. Sales-based milestones and royalties under the Company’s license agreements will be recognized as royalty revenue in the period the related sale occurred. The Company generally invoices its licensees upon the completion of the effort or achievement of a milestone, based on the terms of each agreement. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods as performance obligations are satisfied. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability.
Research and Development Services	Research and Development Services. The promises under the Company's license agreements may include research and development services to be performed by the Company on behalf of the customer. Payments or reimbursements resulting from the Company's research and development efforts are recognized as the services are performed and presented on a gross basis because the Company is the principal for such efforts. Reimbursements from and payments to the customer that are the result of a collaborative relationship with a partner, instead of a customer relationship, such as co-development activities, are recorded as a reduction to research and development expense.
Customer Options	Customer Options. If an arrangement is determined to contain customer options that allow the customer to acquire additional goods or services, the goods and services underlying the customer options that are not determined to be material rights are not considered to be performance obligations at the outset of the arrangement, as they are contingent upon option exercise. The Company evaluates the customer options for material rights, or options to acquire additional goods or services for free or at a discount. If the customer options are determined to represent a material right, the material right is recognized as a separate performance obligation at the outset of the arrangement. The Company allocates the transaction price to material rights based on the relative standalone selling price, which is determined based on the identified discount and the probability that the customer will exercise the option. Amounts allocated to a material right are not recognized as revenue until, at the earliest, the option is exercised.
Milestone Payments	Milestone Payments. At the inception of each arrangement that includes research or development milestone payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The Company evaluates factors such as the scientific, clinical, regulatory, commercial, and other risks that must be overcome to achieve the particular milestone in making this assessment. There is considerable judgment involved in determining whether it is probable that a significant revenue reversal would not occur. At the end of each subsequent reporting period, the Company reevaluates the probability of achievement of all milestones subject to constraint and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment.
Royalties	Royalties . For arrangements that include sales-based royalties, including milestone payments upon first commercial sales and milestone payments based on a level of sales, which are the result of a customer-vendor relationship and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied. To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements.
Collaborative Arrangements	Collaborative Arrangements The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and therefore within the scope of ASC Topic 808, Collaborative Arrangements (ASC 808). This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and which elements of the collaboration are more reflective of a vendor-customer relationship and therefore within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. Amounts that are owed to collaboration partners are recognized as an offset to collaboration revenues as such amounts are incurred by the collaboration partner. Where amounts owed to a collaboration partner exceed the Company's collaboration revenues in each quarterly period, such amounts are classified as research and development expense. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above under ASC 606. See Note 3 for a complete discussion of the revenue recognition for the Company's license agreement.
Net Loss per Share	Net Loss per Share Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options and warrants.
Subsequent Events	Subsequent Events The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB, and are early adopted by the Company or adopted as of the specified effective date. In November 2018, the FASB issued “ASU 2018-18, Clarifying the Interaction between Topic 808 and Topic 606.” The objective of the standard is to clarify the interaction between ASC Topic 808--Collaborative Arrangements and ASC Topic 606--Revenue from Contracts with Customers. Currently, ASC Topic 808 does not provide comprehensive recognition or measurement guidance for collaborative arrangements, and the accounting for those arrangements is often based on an analogy to other accounting literature or an accounting policy election. Similarly, aspects of ASC Topic 606 have resulted in uncertainty in practice about the effect of the revenue standard on the accounting for collaborative arrangements. The standard became effective for us beginning on January 1, 2020 and the adoption of this ASU did not have a material impact on our financial condition, results of operations, cash flows, and financial statement disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Summary of Significant Accounting Policies
Schedule of change in the research and development incentive receivable	The following table shows the change in the research and development incentive receivable from December 31, 2018 to June 30, 2020 (in thousands): Balance at December 31, 2018 $ 836 Australian research and development incentive income, net 132 Cash received for 2018 eligible expenses (757) Foreign currency translation (26) Balance at December 31, 2019 185 Australian research and development incentive income, net 115 Foreign currency translation 5 Balance at June 30, 2020 $ 305
Summary of assets and liabilities carried at fair value in accordance with the hierarchy	A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands): Total Level 1 Level 2 Level 3 June 30, 2020 Assets: Cash equivalents $ 64,887 $ 64,887 $ — $ — Total assets $ 64,887 $ 64,887 $ — $ — December 31, 2019 Assets: Cash equivalents $ 3,891 $ 3,891 $ — $ — Total assets $ 3,891 $ 3,891 $ — $ —

BeiGene Exclusive Option and _2

BeiGene Exclusive Option and License Agreement (Tables)	6 Months Ended
	Jun. 30, 2020
BeiGene Exclusive Option and License Agreement
Summary of activity in Company's contract liabilities	The following table presents a summary of the activity in the Company's contract liabilities, related to the upfront cash payment received of $3,000, during the six months ended June 30, 2020 (in thousands): Balance at Balance at January 1,2020 Additions Deductions June 30, 2020 Contract liabilities Deferred revenue - current $ — $ 1,875 $ (375) $ 1,500 Deferred revenue - non current — 1,125 (375) 750 Total contract liabilities $ — $ 3,000 $ (750) $ 2,250

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Schedule of accrued expenses	June 30, December 31, 2020 2019 Clinical trials $ 1,539 $ 1,828 Professional fees 110 609 Payroll and related expenses 583 1,004 Accrued expenses $ 2,232 $ 3,441

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases
Schedule of future lease payments	Future Operating Lease Payments 2020 $ 214 2021 434 2022 146 Total Lease Payments 794 Less: imputed interest (52) Total operating lease liabilities $ 742

Warrants (Tables)

Warrants (Tables)	6 Months Ended
	Jun. 30, 2020
Warrants
Schedule of warrants	June 30, 2020 Date Number of Shares Exercisable Issuable Exercise Price 1/23/2017 54,516 $ 0.01 11/14/2017 2,549,840 $ 1.055 2/5/2019 7,491,442 $ 1.95 3/5/2020 14,413,902 $ 0.001 3/5/2020 25,945,035 $ 2.11 6/22/2020 2,250,000 $ 0.001 52,704,735

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	6 Months Ended
	Jun. 30, 2020
Equity Incentive Plans
Summary of stock option activity under the Equity Plans	Weighted Average Weighted Aggregate Exercise Price Average Remaining Intrinsic Options Per Share Life in Years Value Outstanding at December 31, 2019 4,024,566 $ 7.48 7.98 $ 2 Granted 1,750,000 $ 2.18 — — Exercised (32,778) $ 1.53 — — Forfeited (260,157) $ 6.96 — — Outstanding at June 30, 2020 5,481,631 $ 5.85 8.18 $ 1,313 Options exercisable at June 30, 2020 2,791,017 $ 9.12 7.17 $ 332 Options vested and expected to vest at June 30, 2020 5,481,631 $ 5.85 8.18 $ 1,313
Schedule of assumptions used to determine grant-date fair value of stock options	Six Months Year Ended Ended June 30, December 31, 2020 2019 Expected volatility 66.94 % 66.94 % Weighted average risk-free interest rate 0.79 % % Expected dividend yield 0.00 % 0.00 % Expected term (in years) 6.84 6.77
Schedule of stock-based compensation expense related to issuance of stock option awards recognized in condensed consolidated statements of operations and comprehensive loss	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 249 $ 179 $ 438 $ 355 General and administrative 290 720 658 1,491 Total $ 539 $ 899 $ 1,096 $ 1,846
Summary of outstanding RSU under the 2016 Plan	Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2019 90,500 $ 1.74 Awarded 660,606 $ 1.42 Settled in cash (90,500) $ 1.74 Outstanding at June 30, 2020 660,606 $ 1.42

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Net Loss Per Share
Schedule of basic and diluted net loss per share	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net loss $ (6,516) $ (8,366) $ (13,747) $ (16,969) Dividend attributable to down round feature of warrants — — (303) (359) Dividend attributable to Series A & B convertible preferred stock — — (372) — Series A & B convertible preferred stock - beneficial conversion feature — — (9,399) — Net loss attributable to common stockholders for basic and diluted loss per share $ (6,516) $ (8,366) $ (23,821) $ (17,328) Denominator: Weighted average number of common shares outstanding – basic and diluted 52,442,597 22,906,025 42,037,405 21,081,869 Net loss per share attributable to common stockholders – basic and diluted $ (0.12) $ (0.37) $ (0.57) $ (0.82)
Schedule of potentially anti-dilutive securities excluded from calculation of diluted net loss per share	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Restricted stock units to purchase common stock 660,606 — 660,606 — Options to purchase common stock 5,481,631 4,058,962 5,481,631 4,058,962 Warrants to purchase common stock 36,040,833 10,369,752 36,040,833 10,369,752 42,183,070 14,428,714 42,183,070 14,428,714

Nature of Business, Basis of _2

Nature of Business, Basis of Presentation and Liquidity - Liquidity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Liquidity
Accumulated deficit	$ 209,218		$ 209,218		$ 195,168
Net loss	6,516	$ 8,366	13,747	$ 16,969
Net cash used in operating activities			(13,377)	$ (14,051)
Cash and cash equivalents	$ 64,887		$ 64,887		$ 3,891
Minimum period to fund Operating expense			12 months

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Mar. 05, 2020	Jan. 31, 2019
Research and development incentive income and receivable
Research and development expenses reimbursed (as a percent)		43.50%		43.50%		43.50%
Research and development incentive income and receivable
Balance at the beginning of the period	$ 836			$ 185	$ 836	$ 836
Australian research and development incentive income, net		$ 30	$ 61	115	136	132
Cash received for 2018 eligible expenses						(757)
Foreign currency translation				5		(26)
Balance at the end of the period		305		305		185
Business Combination, Contingent Consideration, Asset, Current		305		305		185
Deferred Offering Costs
Deferred Offering Costs Noncurrent		413		413		831
Other Assets
Deposits with service providers that are to be applied to future payments		$ 939		939		$ 1,099
Warrant liability reclassified to equity	$ 3,448				3,448
Dividend attributable to down round feature of warrants				$ 303	359
Incremental borrowing rate		8.00%		8.00%
2019 Public Offering
Other Assets
Exercise price of warrant		$ 1.75		$ 1.75				$ 6.085
Dividend attributable to down round feature of warrants					$ 359
January 2020 Private Placement
Other Assets
Exercise price of warrant		$ 1.055		$ 1.055			$ 2.11	$ 1.75
Dividend attributable to down round feature of warrants				$ 303

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets:
Cash equivalents	$ 64,887	$ 3,891
Total assets	64,887	3,891
Level 1
Assets:
Cash equivalents	64,887	3,891
Total assets	$ 64,887	$ 3,891

BeiGene Exclusive Option and _3

BeiGene Exclusive Option and License Agreement - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jan. 03, 2020
BeiGene Exclusive Option and License Agreement
Up-front fee		$ 3,000
Contract acquisition costs	$ 270	270
Amortization expense	34	68
Deferred Costs	202	202
Exclusive Option and License Agreement
BeiGene Exclusive Option and License Agreement
Upfront cash payment	3,000	3,000	$ 3,000
Future option exercise and milestone payments, maximum			$ 132,000
License
BeiGene Exclusive Option and License Agreement
Revenue recognized	375	750
Royalty
BeiGene Exclusive Option and License Agreement
Revenue recognized	$ 0	$ 0

BeiGene Exclusive Option and _4

BeiGene Exclusive Option and License Agreement - Contract Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Deferred revenue - current
Additions	$ 1,875
Deductions	(375)
Balance at March 31, 2020	1,500
Deferred revenue - non current
Additions	1,125
Deductions	(375)
Balance at March 31, 2020	750
Total contract liabilities
Additions	3,000
Deductions	(750)
Contract liabilities	$ 2,250

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued Expenses
Clinical trials	$ 1,539	$ 1,828
Professional fees	110	609
Payroll and related expenses	583	1,004
Accrued expenses	$ 2,232	$ 3,441

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jan. 01, 2019
Right of use assets, net	$ 711		$ 711		$ 1,026
Lease liability	742		742
Rent expense	$ 142	$ 209	$ 340	$ 418
Restatement Adjustment | Accounting Standards Update 2016-02 [Member]
Right of use assets, net						$ 1,755
Lease liability						1,720
Reclassification of rent liability against right-of-use asset						$ 35

Leases - Future minimum lease p

Leases - Future minimum lease payments (Details) $ in Thousands	Jun. 30, 2020USD ($)
Leases
2020	$ 214
2021	434
2022	146
Total Lease Payments	794
Less: Imputed Interest	52
Total operating lease liabilities	$ 742

Warrants - (Details)

Warrants - (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 22, 2020	Mar. 05, 2020	Jan. 03, 2020	Feb. 05, 2019	Jan. 01, 2019	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Warrants
Number of Shares Issuable						52,704,735	52,704,735
StockIssuedDuringReclassificationOfWarrantsFromLiabilityToEquity					$ 3,448
Warrant, Down Round Feature, (Increase) Decrease in Equity, Amount							$ 303	$ 359
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)				7,557,142
Common stock issued				7,557,142
Series A Convertible Preferred Stock
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)							1,421,801
Common stock issued							1,421,801
Series B Convertible Preferred Stock
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)							1,137,442
Common stock issued							1,137,442
2017 Warrants
Warrants
Exercise price of warrant				$ 6.085		$ 1.055	$ 1.055		$ 1.75
Class of Warrant or Right, Exercised							$ 220
Number of warrants or rights exercised.							208,254,000
2019 Warrants
Warrants
Number of Shares Issuable				7,557,142
Exercise price of warrant				$ 1.95
Class of Warrant or Right, Exercised							$ 128
Number of warrants or rights exercised.							65,700,000
January 2020 Warrants | Series A Convertible Preferred Stock
Warrants
Exercise price of warrant		$ 0.001
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)			1,421,801
Purchase price			$ 10.54
Warrant to purchase shares of common stock		14,413,902
Common stock issued			1,421,801
January 2020 Warrants | Series B Convertible Preferred Stock
Warrants
Exercise price of warrant		$ 2.11
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)			1,137,442
Purchase price			$ 10.55
Conversion of Stock, Shares Issued		11,531,133
Common stock issued			1,137,442
June 2020 Warrants
Warrants
Exercise price of warrant	$ 0.001
Warrant to purchase shares of common stock	2,250,000
June 2020 Warrants | Common Stock
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)	20,250,000
Purchase price	$ 2
Common stock issued	20,250,000
1/23/2017
Warrants
Number of Shares Issuable						54,516	54,516
Exercise price of warrant						$ 0.01	$ 0.01
11/14/2017
Warrants
Number of Shares Issuable						2,549,840	2,549,840
Exercise price of warrant						$ 1.055	$ 1.055
2/5/2019
Warrants
Number of Shares Issuable						7,491,442	7,491,442
Exercise price of warrant						$ 1.95	$ 1.95
3/5/2020
Warrants
Number of Shares Issuable						14,413,902	14,413,902
Exercise price of warrant						$ 0.001	$ 0.001
3/5/2020
Warrants
Number of Shares Issuable						25,945,035	25,945,035
Exercise price of warrant						$ 2.11	$ 2.11
6/22/2020
Warrants
Number of Shares Issuable						2,250,000	2,250,000
Exercise price of warrant						$ 0.001	$ 0.001
Common Stock
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)						23,625,000	23,625,000	7,557,142
Common stock issued						23,625,000	23,625,000	7,557,142
Common Stock | June 2020 Warrants
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts (in shares)	20,250,000
Common stock issued	20,250,000

Common stock - Public Offering

Common stock - Public Offering of Common Stock (Details) $ / shares in Units, $ in Thousands	Jun. 25, 2020USD ($)shares	Jun. 22, 2020$ / sharesshares	Jul. 11, 2019USD ($)$ / sharesshares	Jul. 10, 2019USD ($)shares	Feb. 05, 2019$ / sharesshares	Sep. 07, 2018USD ($)	Jun. 30, 2020$ / sharesshares	Mar. 31, 2019USD ($)	Jun. 30, 2020USD ($)item$ / sharesshares	Jun. 30, 2019shares	Dec. 31, 2019USD ($)$ / sharesshares
Common stock issued					7,557,142
Price per share (in dollars per share) | $ / shares					$ 1.75
Proceeds from the issuance of common stock | $								$ 12,122
Common Stock, Par or Stated Value Per Share | $ / shares							$ 0.001		$ 0.001		$ 0.001
Number of Vote on Common Shares | item									1
Dividends, Common Stock | $									$ 0
June 2020 Warrants
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 0.001
Exercise price of warrant | $ / shares		$ 0.001
Warrant to purchase shares of common stock		2,250,000
February 2019 [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares					1.95
Exercise price of warrant | $ / shares					$ 1.95
Common Stock | June 2020 Warrants
Common stock issued		20,250,000
Issue price | $ / shares		$ 2
Net proceeds from issuance of common stock | $	$ 48,276
Distribution Agreement [Member]
Common stock issued									0		1,033,147
Commons Stock Value Maximum Right To Sell | $						$ 30,000
Proceeds From Issuance Of Common Stock From Atm Sales | $											$ 1,923
Lincoln Park Purchase Agreements [Member]
Common stock issued			571,429
Price per share (in dollars per share) | $ / shares			$ 1.75
Commons Stock Value Maximum Right To Sell | $				$ 20,000
Stock Issued During Period, Shares, Issued for Services				330,000
Proceeds From Issuance Of Common Stock Net Of Issuance Costs | $			$ 1,000
Underwriters' exercise
Shares issued					985,714
Underwriters' exercise | Common Stock | June 2020 Warrants
Common stock issued	3,375,000
Common Stock
Common stock issued							23,625,000		23,625,000	7,557,142
Common Stock | June 2020 Warrants
Common stock issued		20,250,000

Common Stock - Private Placemen

Common Stock - Private Placement of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 03, 2020	Feb. 05, 2019	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Mar. 05, 2020	Dec. 31, 2019	Jan. 31, 2019
Private Placement of Common Stock
Common stock issued		7,557,142
Price per share (in dollars per share)		$ 1.75
Common Stock, Par or Stated Value Per Share			$ 0.001	$ 0.001			$ 0.001
January 2020 Private Placement
Private Placement of Common Stock
Exercise price of warrant			$ 1.055	$ 1.055		$ 2.11		$ 1.75
Fixed cumulative percentage per annum				8.00%
Cumulative Dividends			$ 372	$ 372
Common Stock
Private Placement of Common Stock
Common stock issued			23,625,000	23,625,000	7,557,142
Series A Preferred | January 2020 Private Placement
Private Placement of Common Stock
Common stock issued	1,421,801
Price per share (in dollars per share)	$ 10.54
Net proceeds from issuance of stock in private placement	$ 25,322
Convertible Preferred Stock, Shares Issued upon Conversion						14,413,902
Common Stock, Par or Stated Value Per Share						$ 0.001
Value of beneficial conversion features	$ 5,226
Series B Preferred | January 2020 Private Placement
Private Placement of Common Stock
Common stock issued	1,137,442
Price per share (in dollars per share)	$ 10.55
Convertible Preferred Stock, Shares Issued upon Conversion						11,531,133
Common Stock, Par or Stated Value Per Share						$ 0.001
Value of beneficial conversion features	$ 4,173

Equity Incentive Plans - Equity

Equity Incentive Plans - Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 20, 2017	Oct. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Stock-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					1,750,000
Allocated Share-based Compensation Expense			$ 539	$ 899	$ 1,096	$ 1,846
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 4,069		$ 4,069
Maximum
Stock-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					4 years
2016 Plan
Stock-Based Compensation
Number of options or stock awards available for grant under the Plan			1,344,866		1,344,866
Annual increase in authorized shares (as a percent)	4.00%
Common Stock | 2016 Plan
Stock-Based Compensation
Additional shares issuable							3,000,000
Restricted Stock Units (RSUs)
Stock-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value					$ 938
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount			$ 847		$ 847
Restricted Stock Units (RSUs) | Executive Officer [Member]
Stock-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					660,606
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Allocated Share-based Compensation Expense					$ 91
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsSettledInCash		90,500
Restricted Stock Units (RSUs) | 2016 Plan
Stock-Based Compensation
Number of options issued under the plan							181,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					660,606
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsSettledInCash					(90,500)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 1.42

Equity Incentive Plans - Stock

Equity Incentive Plans - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jun. 30, 2020	Dec. 31, 2019
Options
Outstanding balance at the beginning of the period (in shares)				4,024,566
Granted (in shares)				1,750,000
Exercised (in shares)				(32,778)
Forfeited (in shares)				(260,157)
Outstanding balance at the end of the period (in shares)		5,481,631		5,481,631		4,024,566
Options exercisable at the end of the period (in shares)							2,791,017
Options vested and expected to vest at end of period (in shares)							5,481,631
Weighted Average Exercise Price Per Share
Outstanding balance at the beginning of the period (in dollars per share)				$ 7.48
Granted (in dollars per share)				2.18
Exercised (in dollars per share)				1.53
Forfeited (in dollars per share)				6.96
Outstanding balance at the end of the period (in dollars per share)		$ 5.85		$ 5.85		$ 7.48
Exercisable at the end of the period (in dollars per share)							$ 9.12
Options vested and expected to vest at end of the period (in dollars per share)							$ 5.85
Weighted Average Remaining Life in Years
Outstanding balance				8 years 2 months 5 days		7 years 11 months 23 days
Options exercisable at end of period				7 years 2 months 1 day
Options vested and expected to vest at end of the period				8 years 2 months 5 days
Aggregate Intrinsic Value
Outstanding balance							$ 1,313	$ 2
Options exercisable at the end of the period							332
Options vested and expected to vest at end of the period							1,313
Stock-based compensation expense		$ 539	$ 899	$ 1,096	$ 1,846
Assumptions used to determine grant-date fair value
Expected Volatility				66.94%		66.94%
Weighted average risk-free interest rate				0.79%		2.07%
Expected dividend yield				0.00%		0.00%
Expected term (in years)				6 years 10 months 2 days		6 years 9 months 7 days
Expiration period				10 years
Compensation cost related to the non-vested awards not yet recognized							$ 4,069
Weighted average period for recognition of compensation cost				2 years 2 months 16 days
Research and development
Aggregate Intrinsic Value
Stock-based compensation expense		249	179	$ 438	355
General and administrative
Aggregate Intrinsic Value
Stock-based compensation expense		$ 290	$ 720	$ 658	$ 1,491
Minimum
Assumptions used to determine grant-date fair value
Vesting period				3 years
Maximum
Assumptions used to determine grant-date fair value
Vesting period				4 years
Restricted Stock Units (RSUs)
Assumptions used to determine grant-date fair value
Weighted average period for recognition of compensation cost				2 years 8 months 16 days
Restricted Stock Units (RSUs) | Executive Officer [Member]
Aggregate Intrinsic Value
Stock-based compensation expense				$ 91
Assumptions used to determine grant-date fair value
Vesting period				3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awarded				660,606
Settled in cash	90,500
Restricted Stock Units (RSUs) | 2016 Plan
Options
Options unvested at end of period (in shares)		660,606		660,606		90,500	660,606	90,500
Weighted Average Exercise Price Per Share
Options unvested at end of period (in dollars per share)		$ 1.42		$ 1.42		$ 1.74	$ 1.42	$ 1.74
Assumptions used to determine grant-date fair value
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 1.42		$ 1.42		$ 1.74	$ 1.42	$ 1.74
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at the beginning				90,500
Awarded				660,606
Settled in cash				(90,500)
Outstanding at the end		660,606		660,606		90,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding at beginning( in dollars per share)				$ 1.74
Awarded (in dollars per share)				1.42
Settled in cash(in dollars per share)				1.74
Outstanding at end(in dollars per share)		$ 1.42		$ 1.42		$ 1.74

Net Loss Per Share - Basic and

Net Loss Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net loss	$ (6,516)	$ (8,366)	$ (13,747)	$ (16,969)
Dividend attributable to down round feature of warrants			(303)	(359)
Dividend attributable to Series A & B convertible preferred stock			(372)
Series A & B convertible preferred stock - beneficial conversion feature			(9,399)
Net loss attributable to common stockholders for basic and diluted loss per share	$ (6,516)	$ (8,366)	$ (23,821)	$ (17,328)
Denominator:
Weighted average number of common shares outstanding - basic and diluted (in shares)	52,442,597	22,906,025	42,037,405	21,081,869
Net loss per share attributable to common stockholders - basic and diluted (in dollars per share)	$ (0.12)	$ (0.37)	$ (0.57)	$ (0.82)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	42,183,070	14,428,714	42,183,070	14,428,714
Restricted Stock Units (RSUs)
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	660,606		660,606
Options to purchase common stock
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	5,481,631	4,058,962	5,481,631	4,058,962
Warrants to purchase common stock
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	36,040,833	10,369,752	36,040,833	10,369,752

Commitments and Contingencies -

Commitments and Contingencies - Manufacturing, License and Other Agreements (Details) - USD ($) $ in Thousands	Jan. 03, 2011	Jun. 30, 2020
Commitments and Contingencies
Manufacturing commitments		$ 794
License and service agreements
Commitments and Contingencies
Issuance of stock in consideration for license (in shares)	9,000,000
Royalties paid or accrued		0
Licensing agreements
Commitments and Contingencies
Royalties paid or accrued		$ 0

Commitments and Contingencies_2

Commitments and Contingencies - Legal Proceedings (Details)	1 Months Ended	6 Months Ended
	Mar. 31, 2017entity	Jun. 30, 2020companyclaim
Commitments and Contingencies
Number filing notice of opposition	10	2
Notices of opposition		3