Leap Therapeutics (LPTX) 10-Q 14 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	LEAP THERAPEUTICS, INC.
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	LPTX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,672,014
Entity Central Index Key	0001509745
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 43,491	$ 52,071
Research and development incentive receivable	22	73
Prepaid expenses and other current assets	266	130
Total current assets	43,779	52,274
Property and equipment, net	56	65
Right of use assets, net	433	528
Research and development incentive receivable, net of current portion	70
Deferred tax assets	178	179
Deferred costs	311	345
Deposits	980	980
Total assets	45,807	54,371
Current liabilities:
Accounts payable	3,514	2,717
Accrued expenses	2,335	2,747
Deferred revenue - current portion	1,125	1,500
Lease liability - current portion	418	408
Total current liabilities	7,392	7,372
Non current liabilities:
Restricted stock liability		204
Lease liability, net of current portion	36	144
Total liabilities	7,428	7,720
Stockholders' equity:
Common stock, $0.001 par value; 240,000,000 shares authorized; 59,669,722 and 59,657,742 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	60	60
Additional paid-in capital	271,002	270,155
Accumulated other comprehensive loss	(564)	(579)
Accumulated deficit	(232,119)	(222,985)
Total stockholders' equity	38,379	46,651
Total liabilities and stockholders' equity	$ 45,807	$ 54,371

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	240,000,000	240,000,000
Common stock, issued shares	59,669,722	59,657,742
Common stock, outstanding shares	59,669,722	59,657,742

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
License revenue	$ 375	$ 375
Operating expenses:
Research and development	6,807	4,603
General and administrative	2,740	2,153
Total operating expenses	9,547	6,756
Loss from operations	(9,172)	(6,381)
Interest income	2	68
Interest expense	(14)	(12)
Australian research and development incentives	71	85
Foreign currency loss	(21)	(991)
Loss before income taxes	(9,134)	(7,231)
Net loss	(9,134)	(7,231)
Dividend attributable to down round feature of warrants		(303)
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	$ (9,134)	$ (17,305)
Net loss per share
Basic and diluted	$ (0.12)	$ (0.55)
Weighted average common shares outstanding
Basic & diluted	76,378,569	31,632,213

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (9,134)	$ (7,231)
Other comprehensive income:
Foreign currency translation adjustments	15	912
Comprehensive loss	$ (9,119)	$ (6,319)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($)	Series A Redeemable Convertible Preferred Stock	Series A Convertible Preferred Stock	Series B Convertible Preferred Stock	Series B Convertible Preferred Stock	Common Stock	Additional Paid- In Capital	Accumulated Other Comprehensive Income (loss)	Accumulated Deficit	Total
Balance at the beginning of the period (in shares) at Dec. 31, 2019					24,194,877
Increase (Decrease) in Shares Outstanding
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts and commissions (in shares)	1,421,801		1,137,442
Series A & B Convertible Preferred Stock accrued dividends to prefunded warrants and common stock, shares					156,713
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)			(1,137,442)		11,374,420
Issuance of common stock upon exercise of stock options (in shares)					7,778
Issuance of common stock upon exercise of warrant (in shares)					65,700
Balance at the end of the period (in shares) at Mar. 31, 2020					35,799,488
Balance at the beginning of the period at Dec. 31, 2019					$ 24,000	$ 193,319,000	$ 76,000	$ (195,168,000)	$ (1,749,000)
Increase (Decrease) in Stockholders' Equity
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts and commisions	$ 14,062,000			$ 11,260,000
Series A & B Convertible Preferred Stock discount - beneficial conversion feature	(5,226,000)	$ 5,226,000	$ 4,173,000	(4,173,000)		9,399,000			9,399,000
Series A & B Convertible Preferred Stock accrued dividends	(207,000)			(165,000)		372,000			(372,000)
Series A & B Convertible Preferred Stock accured dividends to prefunded warrants and common stock	207,000			165,000	(1,000)	(371,000)			(372,000)
Conversion of Series A Convertible Preferred Stock to prefunded warrants	$ (8,836,000)	$ 8,836,000				8,836,000			8,836,000
Conversion of Series B Convertible Preferred Stock to common stock			$ (7,087,000)	$ (7,087,000)	11,000	7,076,000			7,087,000
Issuance of common stock upon exercise of stock options						12,000			12,000
Issuance of common stock upon exercise of warrants						128,000			128,000
Dividend attributable to down round feature of 2017 warrants						303,000		(303,000)	303,000
Foreign currency translation adjustment							912,000		912,000
Stock-based compensation						570,000			570,000
Net loss								(7,231,000)	(7,231,000)
Balance at the end of the period at Mar. 31, 2020					$ 36,000	219,642,000	988,000	(202,702,000)	17,964,000
Balance at the beginning of the period (in shares) at Dec. 31, 2020		0	0		59,657,742
Balance at the end of the period (in shares) at Mar. 31, 2021		0	0		59,669,722
Balance at the beginning of the period at Dec. 31, 2020		$ 0	$ 0		$ 60,000	270,155,000	(579,000)	(222,985,000)	46,651,000
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon exercise of warrants					11,980	14,000			14,000
Foreign currency translation adjustment							15,000		15,000
Stock-based compensation						833,000			833,000
Net loss								(9,134,000)	(9,134,000)
Balance at the end of the period at Mar. 31, 2021		$ 0	$ 0		$ 60,000	$ 271,002,000	$ (564,000)	$ (232,119,000)	$ 38,379,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical)
Issuance of common stock, issuance costs	$ 1,664

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (9,134)	$ (7,231)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	7	10
Amortization of contract asset	34	34
Amortization on right-of-use asset	95	191
Stock-based compensation expense	833	570
Foreign currency loss	21	991
Change in fair value of restricted stock liability	(204)	(159)	$ 204
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(133)	362
Research and development incentive receivable	(20)	(86)
Contract acquisition costs		(270)
Accounts payable and accrued expenses	387	(770)
Deferred revenue	(375)	2,625
Lease liability	(98)	(193)
Net cash used in operating activities	(8,587)	(3,926)
Cash flows from financing activities:
Proceeds from the exercise of common stock warrants	14	128
Proceeds from the exercise of stock options		11
Payment of deferred offering costs		(1,520)
Net cash provided by financing activities	14	25,605
Effect of exchange rate changes on cash and cash equivalents	(7)	(105)
Net increase (decrease) in cash and cash equivalents	(8,580)	21,574
Cash and cash equivalents at beginning of period	52,071	3,891	3,891
Cash and cash equivalents at end of period	$ 43,491	25,465	$ 52,071
Supplemental disclosure of non-cash financing activities:
Dividend attributable to down round feature of warrants		303
Offering costs included in accounts payable and accrued expenses		144
Conversion of Series A convertible preferred stock to prefunded warrants		8,836
Conversion of Series B convertible preferred stock to common stock		(7,087)
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	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 and for the three months ended March 31, 2021 and 2020 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, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2021. 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 March 31, 2021, statements of operations and statements of comprehensive loss for the three months ended March 31, 2021 and 2020 and statements of cash flows for the three months ended March 31, 2021 and 2020. Such adjustments are of a normal and recurring nature. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. 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 for a period of at least one year after the date that the condensed consolidated financial statements are issued. As of March 31, 2021, the Company had cash and cash equivalents of $43,491. Additionally, the Company had an accumulated deficit of $232,119 at March 31, 2021, and during the three months ended March 31, 2021, the Company incurred a net loss of $9,134. The Company expects to continue to generate operating losses for the foreseeable future. The Company believes that its cash and cash equivalents of $43,491 as of March 31, 2021 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	3 Months Ended
	Mar. 31, 2021
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. 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, 2020 and for the three months ended March 31, 2021. 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 $92 and $73 as of March 31, 2021 and December 31, 2020, respectively, in the condensed consolidated balance sheets and other income from Australian research and development incentives of $71 and $85, respectively, for the three months ended March 31, 2021 and 2020. The following table shows the change in the research and development incentive receivable from January 1, 2020 to March 31, 2021 (in thousands): The following table shows the change in the research and development incentive receivable from January 1, 2020 to March 31, 2021: Balance at January 1, 2020 185 Australian research and development incentive income, net 231 Cash received for 2019 eligible expenses (331) Foreign currency translation (12) Balance at December 31, 2020 $ 73 Australian research and development incentive income, net 71 Cash received for eligible expenses (51) Foreign currency translation (1) Balance at March 31, 2021 $ 92 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 three months ended March 31, 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 March 31, 2021 and December 31, 2020 there was $311 and $345, respectively, of deferred costs. Deposits As of March 31, 2021 and December 31, 2020, $980 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 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 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 three months ended March 31, 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 months ended March 31, 2021 or the year ended December 31, 2020. 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 March 31, 2021 Assets: Cash equivalents $ 42,506 $ 42,506 $ — $ — Total assets $ 42,506 $ 42,506 $ — $ — December 31, 2020 Assets: Cash equivalents $ 51,116 $ 51,116 $ — $ — Total assets $ 51,116 $ 51,116 $ — $ — Liabilities: Restricted stock liability $ 204 $ — $ 204 $ — Total liabilities $ 204 $ — $ 204 $ — Cash equivalents of $42,506 and $51,116 as of March 31, 2021 and December 31, 2020, 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 values 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 The Company accounts for leases in accordance with Accounting Standards Codification, or ASC, Topic 842, Leases . 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 Topic 842, 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 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. Upfront payments are 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. 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. 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 (1) the option is exercised and the additional goods or services are transferred or (2) the option expires. 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. 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. 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 The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies”, in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2020.

BeiGene Exclusive Option and Li

BeiGene Exclusive Option and License Agreement	3 Months Ended
	Mar. 31, 2021
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 conducting 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 and 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 BeiGene 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 each of the three months ended March 31, 2021 and 2020, the Company recognized $375 of license revenue related to the up-front fee received from BeiGene. 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 months ended March 31, 2021 and 2020 was $34 and the closing balance recorded in deferred costs as of March 31, 2021 was $101. 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 months ended March 31, 2021 and 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, from January 1, 2020 through March 31, 2021 (in thousands): Contract Liabilities: Balance at January 1, 2020 $ — Additions 3,000 Deductions (1,500) Balance at December 31, 2020 $ 1,500 Deductions (375) Balance at March 31, 2021 $ 1,125

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2021
Accrued Expenses
Accrued Expenses	4. Accrued Expenses Accrued expenses consist of the following: March 31, December 31, 2021 2020 Clinical trials $ 1,676 $ 795 Professional fees 117 255 Payroll and related expenses 542 1,697 Accrued expenses $ 2,335 $ 2,747

Leases

Leases	3 Months Ended
	Mar. 31, 2021
Leases
Leases	5. Leases 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. As of March 31, 2021, a right-of-use asset of $433 and lease liability of $454 are reflected on the condensed consolidated balance sheets. The Company recorded rent expense of $105 and $198, respectively, during the three months ended March 31, 2021 and 2020. Future lease payments under non-cancelable operating leases as of March 31, 2021 are detailed as follows: Future Operating Lease Payments 2021 $ 327 2022 146 Total Lease Payments 473 Less: imputed interest (19) Total operating lease liabilities $ 454

Warrants

Warrants	3 Months Ended
	Mar. 31, 2021
Warrants
Warrants	6. Warrants As of March 31, 2021, outstanding warrants to purchase common stock, all of which are classified as equity warrants, consisted of the following: March 31, 2021 Number of Shares Description Issuable Exercise Price Expiration Date 1/23/2017 54,516 $ Upon M&A event 2017 Warrants 2,539,409 $ 1.055 November 2024 2019 Warrants 7,489,893 $ 1.95 February 2026 March 2020 14,413,902 $ 0.001 March 2027 March 2020 25,945,035 $ 2.11 March 2027 June 2020 2,250,000 $ 0.001 June 2027 52,692,755 2017 Warrants The 2017 Warrants contain full ratchet anti-dilution protection provisions. 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 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 three months ended March 31, 2020. 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. 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	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021, no dividends have been declared for shares of common stock. Lincoln Park Purchase Agreement 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. The Lincoln Park Purchase Agreement expires in July 2021. 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 months ended March 31, 2021 and 2020, the Company did not issue any shares under the Commitment Purchase Agreement . 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 three months ended March 31, 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 each met the definition of a contingent 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 contingent 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 contingent beneficial conversion feature, 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	3 Months Ended
	Mar. 31, 2021
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, 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. As of March 31, 2021, there were 1,094,999 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, 2020 6,393,853 $ 5.29 7.96 $ 1,961 Granted 1,556,500 $ 2.50 Forfeited (200,046) $ 2.57 Outstanding at March 31, 2021 7,750,307 $ 4.80 $ 912 Options exercisable at March 31, 2021 3,907,038 $ 7.25 $ 456 Options vested and expected to vest at March 31, 2021 7,750,307 $ 4.80 $ 912 The grant date fair value of the options granted during the three months ended March 31, 2021 and 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 weighted average grant date fair value for the stock options granted during the three months ended March 31, 2021 and 2020 was $1.57 and $1.48 per share, respectively. The assumptions that the Company used to determine the grant-date fair value of stock options granted to employees and directors during the three months ended March 31, 2021 and 2020 were as follows, presented on a weighted average basis: Three Months Three Months Ended March 31, Ended March 31, 2021 2020 Expected volatility 66.94 % 66.94 % Weighted average risk-free interest rate 0.66 % 0.89 % Expected dividend yield 0.00 % 0.00 % Expected term (in years) 6.86 6.81 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 March 31, 2021, there was approximately $5,340 of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a remaining weighted-average period of approximately 2.24 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 as follows: Three Months Ended March 31, 2021 2020 Research and development $ 330 $ 189 General and administrative 384 368 Total $ 714 $ 557 Restricted Stock Units During the year ended December 31, 2020, the Company issued 92,500 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 January 2021, the Company cash settled 92,500 RSUs. As of December 31, 2020, these RSUs are classified as restricted stock liability in the condensed consolidated balance sheets of $204, as they contain a cash settlement option. During the three months ended March 31, 2021 and 2020, the Company granted 275,000 and 660,606, respectively, of RSUs to executive officers 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 three months ended March 31, 2021 and 2020, the Company recognized $119 and $13, respectively, of stock based compensation expense related to equity classified RSUs, as they do not contain a cash settlement option. The following table presents a summary of outstanding RSUs under the 2016 Plan as of March 31, 2021: Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2020 753,106 $ 1.52 Awarded 275,000 $ 2.57 Settled in cash (92,500) $ 1.97 Outstanding at March 31, 2021 935,606 $ 1.76 As of March 31, 2021, there were 935,606 shares outstanding covered by RSUs that are expected to vest and the weighted average grant date fair value of these shares of restricted stock was $1.76 per share and the aggregate grant date fair value of these shares of restricted stock was approximately $1,645. As of March 31, 2021, there was approximately $1,278 of unrecognized compensation costs related to RSUs granted to employees, which are expected to be recognized as expense over a remaining weighted average period of 2.41 years.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Net Loss Per Share
Net Loss Per Share	9. Net Loss Per Share Basic and diluted net loss per share for the three months ended March 31, 2021 and 2020 was calculated as follows (in thousands except share and per share amounts). Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (9,134) $ (7,231) Dividend attributable to down round feature of warrants — (303) 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 $ (9,134) $ (17,305) Denominator: Weighted average number of common shares outstanding – basic and diluted 76,378,569 31,632,213 Net loss per share attributable to common stockholders – basic and diluted $ (0.12) $ (0.55) Included within weighted average common shares outstanding are 16,718,418 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 months ended March 31, 2021 and 2020, 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 March 31, 2021 2020 Restricted stock units to purchase common stock 935,606 660,606 Options to purchase common stock 7,750,307 5,091,209 Warrants to purchase common stock 35,974,337 36,249,087 44,660,250 42,000,902

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021, there were $2,030 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”), a shareholder, 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. 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 March 31, 2021. 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 March 31, 2021. 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 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. A hearing before the EPO Boards of Appeal took place on September 16, 2020, which resulted in the Boards of Appeal dismissing the appeal and maintaining the Decision of the Opposition Division. A written Decision by the Boards of Appeal was issued on September 25, 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. In December of 2019, a patent covering the use of the TRX518 antibody in combination with the chemotherapeutic agent, gemcitabine, for treating a colon tumor or adenocarcinoma of the colon, was granted to the Company by the EPO. A Notice of Opposition was filed against the patent by a single opponent, Sanofi, on September 25, 2020. The EPO issued a Communication on October 9, 2020 setting a deadline of February 9, 2021 for the Patentee to file a response to the Notice of Opposition. The Company filed a timely reply to the opponent's Notice of Opposition on February 9, 2021. Oral proceedings at the EPO have not yet been scheduled. 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 March 31, 2021 or December 31, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
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. 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, 2020 and for the three months ended March 31, 2021. 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 $92 and $73 as of March 31, 2021 and December 31, 2020, respectively, in the condensed consolidated balance sheets and other income from Australian research and development incentives of $71 and $85, respectively, for the three months ended March 31, 2021 and 2020. The following table shows the change in the research and development incentive receivable from January 1, 2020 to March 31, 2021 (in thousands): The following table shows the change in the research and development incentive receivable from January 1, 2020 to March 31, 2021: Balance at January 1, 2020 185 Australian research and development incentive income, net 231 Cash received for 2019 eligible expenses (331) Foreign currency translation (12) Balance at December 31, 2020 $ 73 Australian research and development incentive income, net 71 Cash received for eligible expenses (51) Foreign currency translation (1) Balance at March 31, 2021 $ 92
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 three months ended March 31, 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 March 31, 2021 and December 31, 2020 there was $311 and $345, respectively, of deferred costs.
Deposits	Deposits As of March 31, 2021 and December 31, 2020, $980 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 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 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 three months ended March 31, 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 months ended March 31, 2021 or the year ended December 31, 2020. 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 March 31, 2021 Assets: Cash equivalents $ 42,506 $ 42,506 $ — $ — Total assets $ 42,506 $ 42,506 $ — $ — December 31, 2020 Assets: Cash equivalents $ 51,116 $ 51,116 $ — $ — Total assets $ 51,116 $ 51,116 $ — $ — Liabilities: Restricted stock liability $ 204 $ — $ 204 $ — Total liabilities $ 204 $ — $ 204 $ — Cash equivalents of $42,506 and $51,116 as of March 31, 2021 and December 31, 2020, 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 values 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 The Company accounts for leases in accordance with Accounting Standards Codification, or ASC, Topic 842, Leases . 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 Topic 842, 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 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. Upfront payments are 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. 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.
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 (1) the option is exercised and the additional goods or services are transferred or (2) the option expires.
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. 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. 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 The Company’s significant accounting policies are described in Note 2, “Summary of Significant Accounting Policies”, in the Company’s previously filed Annual Report on Form 10-K for the year ended December 31, 2020.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
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 January 1, 2020 to March 31, 2021 (in thousands): The following table shows the change in the research and development incentive receivable from January 1, 2020 to March 31, 2021: Balance at January 1, 2020 185 Australian research and development incentive income, net 231 Cash received for 2019 eligible expenses (331) Foreign currency translation (12) Balance at December 31, 2020 $ 73 Australian research and development incentive income, net 71 Cash received for eligible expenses (51) Foreign currency translation (1) Balance at March 31, 2021 $ 92
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 March 31, 2021 Assets: Cash equivalents $ 42,506 $ 42,506 $ — $ — Total assets $ 42,506 $ 42,506 $ — $ — December 31, 2020 Assets: Cash equivalents $ 51,116 $ 51,116 $ — $ — Total assets $ 51,116 $ 51,116 $ — $ — Liabilities: Restricted stock liability $ 204 $ — $ 204 $ — Total liabilities $ 204 $ — $ 204 $ —

BeiGene Exclusive Option and _2

BeiGene Exclusive Option and License Agreement (Tables)	3 Months Ended
	Mar. 31, 2021
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, from January 1, 2020 through March 31, 2021 (in thousands): Contract Liabilities: Balance at January 1, 2020 $ — Additions 3,000 Deductions (1,500) Balance at December 31, 2020 $ 1,500 Deductions (375) Balance at March 31, 2021 $ 1,125

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Expenses
Schedule of accrued expenses	March 31, December 31, 2021 2020 Clinical trials $ 1,676 $ 795 Professional fees 117 255 Payroll and related expenses 542 1,697 Accrued expenses $ 2,335 $ 2,747

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2021
Leases
Schedule of future lease payments	Future Operating Lease Payments 2021 $ 327 2022 146 Total Lease Payments 473 Less: imputed interest (19) Total operating lease liabilities $ 454

Warrants (Tables)

Warrants (Tables)	3 Months Ended
	Mar. 31, 2021
Warrants
Schedule of warrants	March 31, 2021 Number of Shares Description Issuable Exercise Price Expiration Date 1/23/2017 54,516 $ Upon M&A event 2017 Warrants 2,539,409 $ 1.055 November 2024 2019 Warrants 7,489,893 $ 1.95 February 2026 March 2020 14,413,902 $ 0.001 March 2027 March 2020 25,945,035 $ 2.11 March 2027 June 2020 2,250,000 $ 0.001 June 2027 52,692,755

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	3 Months Ended
	Mar. 31, 2021
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, 2020 6,393,853 $ 5.29 7.96 $ 1,961 Granted 1,556,500 $ 2.50 Forfeited (200,046) $ 2.57 Outstanding at March 31, 2021 7,750,307 $ 4.80 $ 912 Options exercisable at March 31, 2021 3,907,038 $ 7.25 $ 456 Options vested and expected to vest at March 31, 2021 7,750,307 $ 4.80 $ 912
Schedule of assumptions used to determine grant-date fair value of stock options	Three Months Three Months Ended March 31, Ended March 31, 2021 2020 Expected volatility 66.94 % 66.94 % Weighted average risk-free interest rate 0.66 % 0.89 % Expected dividend yield 0.00 % 0.00 % Expected term (in years) 6.86 6.81
Schedule of stock-based compensation expense related to issuance of stock option awards recognized in condensed consolidated statements of operations	Three Months Ended March 31, 2021 2020 Research and development $ 330 $ 189 General and administrative 384 368 Total $ 714 $ 557
Summary of outstanding RSU under the 2016 Plan	Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2020 753,106 $ 1.52 Awarded 275,000 $ 2.57 Settled in cash (92,500) $ 1.97 Outstanding at March 31, 2021 935,606 $ 1.76

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Net Loss Per Share
Schedule of basic and diluted net loss per share	Three Months Ended March 31, 2021 2020 Numerator: Net loss $ (9,134) $ (7,231) Dividend attributable to down round feature of warrants — (303) 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 $ (9,134) $ (17,305) Denominator: Weighted average number of common shares outstanding – basic and diluted 76,378,569 31,632,213 Net loss per share attributable to common stockholders – basic and diluted $ (0.12) $ (0.55)
Schedule of potentially anti-dilutive securities excluded from calculation of diluted net loss per share	Three Months Ended March 31, 2021 2020 Restricted stock units to purchase common stock 935,606 660,606 Options to purchase common stock 7,750,307 5,091,209 Warrants to purchase common stock 35,974,337 36,249,087 44,660,250 42,000,902

Nature of Business, Basis of _2

Nature of Business, Basis of Presentation and Liquidity - Liquidity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Liquidity
Accumulated deficit	$ 232,119		$ 222,985
Net loss	9,134	$ 7,231
Net cash used in operating activities	(8,587)	$ (3,926)
Cash and cash equivalents	$ 43,491		$ 52,071
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	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 05, 2020	Jan. 31, 2020
Research and development incentive income and receivable
Research and development expenses reimbursed (as a percent)	43.50%		43.50%
Research and development incentive income and receivable
Balance at the beginning of the period	$ 73	$ 185	$ 185
Australian research and development incentive income, net	71	85	231
Cash received for eligible expenses	(51)		(331)
Foreign currency translation	(1)		(12)
Balance at the end of the period	92		73
Deferred Offering Costs
Deferred Offering Costs Noncurrent	311		345
Other Assets
Deposits with service providers that are to be applied to future payments	$ 980		$ 980
Dividend attributable to down round feature of warrants		$ 303
Incremental borrowing rate	8.00%
January 2020 Private Placement
Other Assets
Exercise price of warrant	$ 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	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Assets:
Cash equivalents	$ 42,506		$ 51,116
Total assets	42,506		51,116
Liabilities:
Restricted stock liability	(204)	$ (159)	204
Total liabilities			204
Level 1
Assets:
Cash equivalents	42,506		51,116
Total assets	$ 42,506		51,116
Level 2
Liabilities:
Restricted stock liability			204
Total liabilities			$ 204

BeiGene Exclusive Option and _3

BeiGene Exclusive Option and License Agreement - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Jan. 03, 2020
BeiGene Exclusive Option and License Agreement
Up-front fee	$ 3,000
Contract acquisition costs	270
Amortization expense	34	$ 34
Deferred Costs	101
Exclusive Option and License Agreement
BeiGene Exclusive Option and License Agreement
Future option exercise and milestone payments, maximum			$ 132,000
License
BeiGene Exclusive Option and License Agreement
Revenue recognized	375	375
Royalty
BeiGene Exclusive Option and License Agreement
Revenue recognized	0	$ 0
Exclusive Option and License Agreement
BeiGene Exclusive Option and License Agreement
Upfront cash payment	$ 3,000		$ 3,000

BeiGene Exclusive Option and _4

BeiGene Exclusive Option and License Agreement - Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Contract liabilities
Balance	$ 1,500
Additions		$ 3,000
Deductions	(375)	(1,500)
Balance	$ 1,125	$ 1,500

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Expenses
Clinical trials	$ 1,676	$ 795
Professional fees	117	255
Payroll and related expenses	542	1,697
Accrued expenses	$ 2,335	$ 2,747

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Right of use assets, net	$ 433		$ 528
Lease liability	454
Operating Leases, Rent Expense	105
Restatement Adjustment | Accounting Standards Update 2016-02 [Member]
Lease liability	$ 454
Rent expense		$ 198

Leases - Future minimum lease p

Leases - Future minimum lease payments (Details) $ in Thousands	Mar. 31, 2021USD ($)
Leases
2021	$ 327
2022	146
Total Lease Payments	473
Less: Imputed Interest	(19)
Total operating lease liabilities	$ 454

Warrants - (Details)

Warrants - (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 22, 2020	Mar. 05, 2020	Jan. 03, 2020	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020	Feb. 05, 2019
Warrants
Number of Shares Issuable					52,692,755
Warrant, Down Round Feature, (Increase) Decrease in Equity, Amount				$ 303
Series B Convertible Preferred Stock
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts and commissions (in shares)				1,137,442
Common stock issued				1,137,442
2017 Warrants
Warrants
Number of Shares Issuable					2,539,409
Exercise price of warrant					$ 1.055	$ 1.75
2019 Warrants
Warrants
Number of Shares Issuable					7,489,893		7,557,142
Exercise price of warrant					$ 1.95		$ 1.95
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 and commissions (in shares)			1,421,801
Purchase price			$ 10.54
Common stock issued			1,421,801
Warrant to purchase shares of common stock		14,413,902
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 and commissions (in shares)			1,137,442
Purchase price			$ 10.55
Conversion of Stock, Shares Issued		11,531,133
Common stock issued			1,137,442
March 2020
Warrants
Number of Shares Issuable					14,413,902
Exercise price of warrant					$ 0.001
March 2020
Warrants
Number of Shares Issuable					25,945,035
Exercise price of warrant					$ 2.11
June 2020
Warrants
Number of Shares Issuable					2,250,000
Exercise price of warrant	$ 0.001				$ 0.001
Warrant to purchase shares of common stock	2,250,000
June 2020 | Common Stock
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts and commissions (in shares)	20,250,000
Purchase price	$ 2
Common stock issued	20,250,000
1/23/2017
Warrants
Number of Shares Issuable					54,516
Exercise price of warrant					$ 0.01
Common Stock | June 2020
Warrants
Issuance of Series A & B Convertible Preferred Stock, net of underwriting discounts and commissions (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. 10, 2019USD ($)shares	Mar. 31, 2021USD ($)item$ / sharesshares	Mar. 31, 2020shares
Number of Vote on Common Shares | item				1
Dividends, Common Stock | $				$ 0
June 2020
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 0.001		$ 0.001
Exercise price of warrant | $ / shares		$ 0.001		$ 0.001
Warrant to purchase shares of common stock		2,250,000
Common Stock | June 2020
Common stock issued		20,250,000
Net proceeds from issuance of common stock | $	$ 48,276
Issue price | $ / shares		$ 2
Lincoln Park Purchase Agreements [Member]
Commons Stock Value Maximum Right To Sell | $			$ 20,000
Common stock issued				0	0
Stock Issued During Period, Shares, Issued for Services			330,000
Proceeds From Issuance Of Common Stock Net Of Issuance Costs | $			$ 0
Underwriters' exercise | Common Stock | June 2020
Common stock issued	3,375,000
Common Stock | June 2020
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	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Mar. 05, 2020	Jan. 31, 2020
Private Placement of Common Stock
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001
January 2020 Private Placement
Private Placement of Common Stock
Exercise price of warrant		$ 1.055			$ 2.11	$ 1.75
Fixed cumulative percentage per annum		8.00%
Cumulative Dividends				$ 372
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	Jan. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Stock-Based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			1,556,500
Allocated Share-based Compensation Expense			$ 714	$ 557
Restricted stock liability					$ 204
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 5,340
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			1,094,999
Annual increase in authorized shares (as a percent)	4.00%
Restricted Stock Units (RSUs)
Stock-Based Compensation
Restricted stock liability					$ 204
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			$ 1,645
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount			$ 1,278
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			275,000	660,606
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Allocated Share-based Compensation Expense			$ 119	$ 13
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsSettledInCash		92,500
Restricted Stock Units (RSUs) | 2016 Plan
Stock-Based Compensation
Number of options issued under the plan					92,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			275,000
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsSettledInCash			(92,500)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 2.57

Equity Incentive Plans - Stock

Equity Incentive Plans - Stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Options
Outstanding balance at the beginning of the period (in shares)	6,393,853	6,393,853
Granted (in shares)		1,556,500
Forfeited (in shares)		(200,046)
Outstanding balance at the end of the period (in shares)		7,750,307		6,393,853
Options exercisable at the end of the period (in shares)					3,907,038
Options vested and expected to vest at end of period (in shares)					7,750,307
Weighted Average Exercise Price Per Share
Outstanding balance at the beginning of the period (in dollars per share)	$ 5.29	$ 5.29
Granted (in dollars per share)		2.50
Forfeited (in dollars per share)		2.57
Outstanding balance at the end of the period (in dollars per share)		$ 4.80		$ 5.29
Exercisable at the end of the period (in dollars per share)					$ 7.25
Options vested and expected to vest at end of the period (in dollars per share)					$ 4.80
Weighted Average Remaining Life in Years
Outstanding balance		7 years 11 months 27 days		7 years 11 months 16 days
Options exercisable at end of period		6 years 9 months 22 days
Options vested and expected to vest at end of the period		7 years 11 months 27 days
Aggregate Intrinsic Value
Outstanding balance					$ 912	$ 1,961
Options exercisable at the end of the period					456
Options vested and expected to vest at end of the period					$ 912
Stock-based compensation expense		$ 714	$ 557
Assumptions used to determine grant-date fair value
Expected Volatility		66.94%		66.94%
Weighted average risk-free interest rate		0.66%		0.89%
Expected dividend yield		0.00%		0.00%
Expected term (in years)		6 years 10 months 10 days		6 years 9 months 22 days
Expiration period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 1.57	$ 1.48		$ 1.57
Compensation cost related to the non-vested awards not yet recognized					$ 5,340
Weighted average period for recognition of compensation cost		2 years 2 months 27 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding at end(in dollars per share)		$ 1.57	$ 1.48
Research and development
Aggregate Intrinsic Value
Stock-based compensation expense		$ 330	$ 189
General and administrative
Aggregate Intrinsic Value
Stock-based compensation expense		$ 384	368
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 4 months 28 days
Restricted Stock Units (RSUs) | Executive Officer [Member]
Aggregate Intrinsic Value
Stock-based compensation expense		$ 119	$ 13
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		275,000	660,606
Settled in cash	92,500
Restricted Stock Units (RSUs) | 2016 Plan
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	$ 1.52	$ 1.76		$ 1.52	$ 1.76	$ 1.52
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at the beginning	753,106	753,106
Awarded		275,000
Settled in cash		(92,500)
Outstanding at the end		935,606		753,106
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)	$ 1.52	$ 1.52
Awarded (in dollars per share)		2.57
Settled in cash(in dollars per share)		1.97
Outstanding at end(in dollars per share)		$ 1.76		$ 1.52

Net Loss Per Share - Basic and

Net Loss Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net loss	$ (9,134)	$ (7,231)
Dividend attributable to down round feature of warrants		(303)
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	$ (9,134)	$ (17,305)
Denominator:
Weighted average number of common shares outstanding - basic and diluted (in shares)	76,378,569	31,632,213
Net loss per share attributable to common stockholders - basic and diluted (in dollars per share)	$ (0.12)	$ (0.55)
Exercise of the pre-funded warrants	16,718,418

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Securities excluded from computation of diluted net loss per share
Anti-dilutive securities excluded from calculation of diluted net loss per share	44,660,250	42,000,902
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	935,606	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	7,750,307	5,091,209
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	35,974,337	36,249,087

Commitments and Contingencies -

Commitments and Contingencies - Manufacturing, License and Other Agreements (Details) $ in Thousands	Mar. 31, 2021USD ($)
Commitments and Contingencies
Manufacturing commitments	$ 2,030
License and service agreements
Commitments and Contingencies
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	3 Months Ended
	Mar. 31, 2017entity	Mar. 31, 2021companyclaim
Commitments and Contingencies
Number filing notice of opposition	10	2
Notices of opposition		3