Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 10, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ARAV | ||
Title of 12(b) Security | Common stock, par value $0.0001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Registrant Name | Aravive, Inc. | ||
Entity Central Index Key | 0001513818 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,659,860 | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-36361 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-4106690 | ||
Entity Address, Address Line One | River Oaks Tower | ||
Entity Address, Address Line Two | 3730 Kirby Drive, Suite 1200 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77098 | ||
City Area Code | 936 | ||
Local Phone Number | 355-1910 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 140,629,591 | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Documents incorporated by reference: None |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 60,541 | $ 65,134 |
Prepaid expenses and other current assets | 1,148 | 3,079 |
Total current assets | 61,689 | 68,213 |
Restricted cash | 2,430 | 2,423 |
Property and equipment, net | 526 | 1,808 |
Operating lease right-of-use assets | 2,958 | 8,697 |
Intangible asset, net | 97 | 219 |
Other assets | 10 | 761 |
Total assets | 67,710 | 82,121 |
Current liabilities | ||
Accounts payable | 2,500 | 1,078 |
Accrued liabilities | 2,323 | 1,497 |
Operating lease obligation, current portion | 2,086 | 2,393 |
Current portion of deferred revenue | 2,552 | |
Total current liabilities | 9,461 | 4,968 |
Deferred revenue, net of current portion | 3,763 | |
Contingent payable | 264 | |
Operating lease obligation, net of current portion | 6,431 | 7,840 |
Total liabilities | 19,655 | 13,072 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized at December 31, 2020 and December 31, 2019; zero shares issued and outstanding at December 31, 2020 and December 31, 2019 | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized at December 31, 2020 and December 31, 2019; 16,481,099 and 15,001,795 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 2 | 2 |
Additional paid-in capital | 548,707 | 539,158 |
Accumulated deficit | (500,654) | (470,111) |
Total stockholders' equity | 48,055 | 69,049 |
Total liabilities and stockholders’ equity | $ 67,710 | $ 82,121 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,481,099 | 15,001,795 |
Common stock, shares outstanding | 16,481,099 | 15,001,795 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||
Total revenue | $ 5,685 | $ 4,753 |
Operating expenses | ||
Research and development | 17,620 | 12,836 |
General and administrative | 13,065 | 13,691 |
Loss on impairment of long-lived assets | 5,784 | |
Total operating expenses | 36,469 | 26,527 |
Loss from operations | (30,784) | (21,774) |
Interest income | 255 | 1,022 |
Other income (expense), net | (14) | 2,534 |
Net loss | $ (30,543) | $ (18,218) |
Net loss per share- basic and diluted | $ (1.93) | $ (1.57) |
Weighted-average common shares used to compute net loss per share- basic and diluted | 15,790 | 11,589 |
Grant Revenue [Member] | ||
Revenue | ||
Total revenue | $ 4,753 | |
Collaboration Revenue [Member] | ||
Revenue | ||
Total revenue | $ 5,685 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect of Adoption of ASU 2016-02 [Member] | Private Placement [Member] | Common Stock [Member] | Common Stock [Member]Private Placement [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Private Placement [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect of Adoption of ASU 2016-02 [Member] |
Beginning Balances at Dec. 31, 2018 | $ 59,945 | $ (1,328) | $ 1 | $ 510,509 | $ (450,565) | $ (1,328) | |||
Beginning Balances, shares at Dec. 31, 2018 | 11,266,151 | ||||||||
Issuance of common stock, net of issuance costs | 25,128 | $ 1 | 25,127 | ||||||
Issuance of common stock, net of issuance costs, shares | 3,633,334 | ||||||||
Issuance of common stock upon exercise of options | $ 95 | 95 | |||||||
Issuance of common stock upon exercise of options, shares | 39,686 | 39,686 | |||||||
Issuance of common stock under employee benefit plans | $ 28 | 28 | |||||||
Issuance of common stock under employee benefit plans, shares | 62,624 | ||||||||
Stock-based compensation | 3,399 | 3,399 | |||||||
Net loss | (18,218) | (18,218) | |||||||
Ending Balances at Dec. 31, 2019 | 69,049 | $ 2 | 539,158 | (470,111) | |||||
Ending Balances, shares at Dec. 31, 2019 | 15,001,795 | ||||||||
Issuance of common stock, net of issuance costs | $ 4,922 | $ 4,922 | |||||||
Issuance of common stock, net of issuance costs, shares | 931,098 | ||||||||
Issuance of common stock upon exercise of options | $ 315 | 315 | |||||||
Issuance of common stock upon exercise of options, shares | 114,515 | 114,515 | |||||||
Issuance of common stock under employee benefit plans | $ 80 | 80 | |||||||
Issuance of common stock under employee benefit plans, shares | 56,291 | ||||||||
Issuance of common stock, net of issuance costs | 2,266 | 2,266 | |||||||
Issuance of common stock, net of issuance costs | 377,400 | ||||||||
Stock-based compensation | 1,966 | 1,966 | |||||||
Net loss | (30,543) | (30,543) | |||||||
Ending Balances at Dec. 31, 2020 | $ 48,055 | $ 2 | $ 548,707 | $ (500,654) | |||||
Ending Balances, shares at Dec. 31, 2020 | 16,481,099 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Issuance costs | $ 94 | $ 351 |
Private Placement [Member] | ||
Net Issuance costs | $ 78 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (30,543) | $ (18,218) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 1,829 | 498 |
Loss on impairment of long-lived assets | 5,784 | |
Stock-based compensation expense | 1,966 | 3,399 |
Write-off lease receivable/prepaid commission assets | 1,383 | |
Changes in assets and liabilities, net of acquisition | ||
Prepaid expenses and other assets | 1,299 | (2,782) |
Accounts payable | 1,422 | 652 |
Deferred revenue | 6,315 | (146) |
Accrued and other liabilities | (1,624) | (484) |
Net cash used in operating activities | (12,169) | (17,081) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net of issuance costs | 2,266 | 25,127 |
Proceeds from issuance of common stock in connection with exercise of options | 315 | 95 |
Proceeds from issuance of common stock in connection with employee benefit plans | 80 | 28 |
Proceeds from issuance of common stock in private placement, net of issuance costs | 4,922 | |
Net cash provided by financing activities | 7,583 | 25,250 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,586) | 8,169 |
Cash, cash equivalents and restricted cash at beginning of period | 67,557 | 59,388 |
Cash, cash equivalents and restricted cash at end of period | 62,971 | 67,557 |
Supplemental disclosure of noncash items | ||
Right-of-use asset acquired through operating lease | $ 470 | |
Property and equipment recorded upon adoption of ASU 2016-02 | $ 2,151 |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Aravive, Inc. (“Aravive” or the “Company”) was incorporated on December 10, 2008 in the State of Delaware. Aravive Biologics, Inc. (“Aravive Biologics”) our wholly owned subsidiary was incorporated in 2007. Aravive is a clinical-stage biopharmaceutical company developing treatments designed to halt the progression of life-threatening diseases, including cancer and fibrosis. The Company’s lead product candidate, AVB-500, is an ultrahigh-affinity, decoy protein that targets the GAS6-AXL signaling pathway by binding GAS6. By capturing serum GAS6, AVB-500 starves the AXL pathway of its signal, potentially halting the biological programming that promotes disease progression. AXL receptor signaling plays an important role in multiple types of malignancies by promoting metastasis, cancer cell survival, resistance to treatments, and immune suppression. The Company’s current development program benefits from the availability of a proprietary serum-based biomarker that it expects will help accelerate drug development by allowing the Company to select a pharmacologically active dose and may potentially identify the cancer patients that have the best chance of responding to AVB-500. In the Company’s completed Phase 1 clinical trial in healthy volunteers with our clinical lead product candidate, AVB-500, the Company demonstrated proof of mechanism for AVB-500 in neutralizing GAS6. Importantly, AVB-500 had a favorable safety profile preclinically and in the first in human trial and Phase 1b clinical trial in cancer patients. In December 2018, the Company initiated a Phase 1b clinical trial of AVB-500 combined with standard of care therapies in patients with platinum-resistant ovarian cancer, or PROC, for which we reported results in July 2020. In August 2018, the U.S. Food and Drug Administration (“FDA”) designated as a Fast Track development program the investigation of the Company’s lead development candidate, AVB-500, for platinum-resistant recurrent ovarian cancer. The Company initiated a pivotal Phase 3 trial of AVB-500 in PROC during the first quarter of 2021. In January 2020, the Company announced that the FDA has cleared its Investigational New Drug (“IND”) application for investigation of AVB-500, in the treatment of its second oncology indication, clear cell renal cell carcinoma (“ccRCC”). During the fourth quarter of 2020, the Company initiated our Phase 1b/2 trial of AVB-500 in ccRCC and dosed its first patient in the trial during the first quarter of 2021. In April 2020, the Company entered into a license and collaboration agreement with WuXi Biologics (Hong Kong) Limited, the objective of which is to identify and develop novel high-affinity bispecific antibodies against CCN2, also known as connective tissue growth factor (CTGF), implicated in cancer and fibrosis and identified from a similar target discovery screen that identified the significance of the AXL/GAS6 pathway in cancer. The goal is to generate a best-in-class therapeutic targeting desmoplasia and tumor growth in the clinic in 2023. On November 6, 2020, the Company entered into a collaboration and license agreement with 3D Medicines Inc., or 3D Medicines, whereby the Company granted 3D Medicines an exclusive license to develop and commercialize products that contain AVB-500 as the sole drug substance for the diagnosis, treatment or prevention of human oncological diseases, in mainland China, Taiwan, Hong Kong and Macau. With the global spread of the ongoing novel coronavirus, or COVID-19 pandemic, the Company has implemented business continuity plans designed to address and mitigate the impact of the COVID-19 pandemic on our employees and our business. While the Company is experiencing limited financial impacts at this time, given the global economic slowdown, the overall disruption of global healthcare systems and the other risks and uncertainties associated with the pandemic, the Company’s business, financial condition, results of operations and growth prospects could be materially adversely affected. As the Company advances its clinical programs, the Company is in close contact with its clinical research organizations and clinical sites and is assessing the impact of COVID-19 on its planned studies and current timelines and costs. While the Company currently does not anticipate any interruptions in its operations due to COVID-19 if the COVID-19 pandemic continues and persists for an extended period of time, the Company could experience significant disruptions to its clinical development timeline, which would adversely affect the Company’s business, financial condition, results of operations and growth prospects. In July 2016, Aravive Biologics was approved for a $20 million Product Development Award from the Cancer Prevention and Research Institute of Texas (“CPRIT Grant”). The CPRIT Grant was expected to allow Aravive Biologics to develop the product candidate referenced above through clinical trials. The CPRIT Grant was effective as of June 1, 2016 and terminated on November 30, 2019. Aravive Biologics’ royalty and other obligations, including its obligation to repay the disbursed grant proceeds under certain circumstances, survive the termination of the agreement. The CPRIT Grant is subject to customary CPRIT funding conditions including a matching funds requirement where Aravive Biologics matched 50% of funding from the CPRIT Grant. Consequently, Aravive Biologics was required to raise $10.0 million in matching funds over the three-year project. Aravive Biologics has raised all its required $10.0 million in matching funds. Aravive Biologics’ award from CPRIT requires it to pay CPRIT a portion of its revenues from sales of certain products, or received from its licensees or sublicensees, at tiered percentages of revenue in the low- to mid-single digits until the aggregate amount of such payments equals 400% of the grant award proceeds, and thereafter at a rate of less than one percent for as long as Aravive Biologics maintains government exclusivity. In addition, the grant contract also contains a provision that provides for repayment to CPRIT of the full amount of the grant proceeds under certain specified circumstances involving relocation of Aravive Biologics’ principal place of business outside Texas. As consideration for the rights granted as part of a license agreement with Stanford University, Aravive Biologics is obligated to pay yearly license fees and milestone payments, and a royalty based on net sales of products covered by the patent-related rights. More specifically, Aravive Biologics is obligated to pay Stanford University (i) annual license payments (ii) milestone payments of up to an aggregate of $1,000,000 upon achievement of clinical and regulatory milestones, and (iii) royalties equal to a percentage (in the low single digits) of net sales of licensed products; provided that the annual license payments made will offset (and be credited against) any royalties due in such license year. In the event of a sublicense to a third party of any rights based on the patents that are solely owned by Stanford University, Aravive Biologics is obligated to pay royalties to Stanford University equal to a percentage of what Aravive Biologics would have been required to pay to Stanford University had it sold the products under sublicense itself. In addition, in such event it is required to pay to Stanford University a percent of sublicensing income. In the event of a termination, Aravive Biologics will be obligated to pay all amounts that accrued prior to such termination. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying financial statements are consolidated for the year ended December 31, 2020 and includes the accounts of Aravive, Inc. and its wholly-owned subsidiary Aravive Biologics. The accompanying financial statements are consolidated for the year ended December 31, 2019 and include the accounts of Aravive, Inc. and its then wholly-owned subsidiaries, Versartis Cayman Holdings Company, incorporated in 2014, Versartis GmbH, incorporated in 2015 and Aravive Biologics, incorporated in 2007. After 2015, the Cayman and GmbH subsidiaries became dormant. In 2019, the Cayman and GmbH subsidiaries were liquidated in their respective countries and no longer exist as of December 31, 2019. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all of the Company's subsidiaries and consolidated operations. Liquidity and Capital Resources Since inception, the Company has incurred net losses and negative cash flows from operations. At December 31, 2020, the Company had an accumulated deficit of $500.7 million and working capital of $52.2 million. Since inception, the Company has incurred net losses and negative cash flows from operations. The Company expects to continue to incur losses from costs related to the development of AVB-500 and related administrative activities for the foreseeable future. As of December 31, 2020, the Company had a cash and cash equivalents balance of $60.5 million consisting of cash and investments in highly liquid U.S. money market funds. While the Company believes that its existing cash and cash equivalents will be sufficient to sustain operations for at least the next 12 months from the issuance of these financial statements, based on its current business plan, the Company will need to obtain additional financing to advance its clinical development program to later stages of development and commercialize its clinical product candidate. Although management has been successful in raising capital in the past, there can be no assurance that the Company will be successful or that any needed financing will be available in the future at terms acceptable to the Company. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. Concentration of c r Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. All of the Company’s cash and cash equivalents are held at several financial institutions that management believes are of high credit quality. Such deposits may exceed federally insured limits. Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration (“FDA”), the Pharmaceuticals Medicines and Devices Agency (“PMDA”), or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary clearances. If the Company is denied clearance, clearance is delayed or the Company is unable to maintain clearance, it could have a material adverse impact on the Company. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to launch and commercialize any product candidates for which it receives regulatory approval. Cash and c e The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2020 and 2019 the Company’s cash and cash equivalents were held in multiple institutions within the United States and included deposits in money market funds which were unrestricted as to withdrawal or use. Restricted cash consists of a letter of credit to secure the Company’s obligations under the right-of-use lease. Property and e Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheets and any resulting gain or loss is reflected in operations in the period realized. Leases The Company leases all of its office space in conducting its business. At inception, the Company determines whether an agreement represents a lease and at commencement the Company evaluates each lease agreement to determine whether the lease is an operating or financing lease. The Company records an operating lease ROU asset and an operating lease obligation on the consolidated balance sheet when entering into a lease. ROU assets represent the Company’s ROU of the underlying asset for the lease term and the lease obligation represents the Company’s commitment to make the lease payments arising from the lease. Lease obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term and ROU assets are calculated as the lease liability, adjusted by unamortized initial direct costs, unamortized lease incentives received, cumulative deferred or prepaid lease payments, and accumulated impairment losses. As the Company’s leases do not provide an implicit rate, the Company has used an estimated incremental borrowing rate based on the information available at the lease inception date in determining the present value of lease payments. The lease term may include options to extend or terminate the lease and the Company includes renewal options in its calculation of the estimated lease term when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. Variable lease costs and short-term lease payments not included in the lease liability are classified within operating activities in the consolidated statements of cash flows. For all lease agreements, the Company has combined lease and nonlease components. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. These expenses are recognized within operating expenses in the consolidated statements of operations. Impairment of Long-Lived Assets The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by the comparison of the carrying amount to the future net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value (i.e., determined through estimating projected discounted future net cash flows or other acceptable methods of determining fair value) arising from the asset. There were no such impairments of long-lived assets as of December 31, 2019. The Company accounts for the sublease with EVA Automation, Inc. (“EVA”) as an operating lease and reviews the ROU asset recorded associated with the sublease for impairment whenever events or changes in circumstances indicate that the carrying amount of the ROU asset may not be recoverable in accordance with ASC 360-10. Recoverability is measured if the lease cost for the term of the sublease exceeds the anticipated sublease income for the same period on an undiscounted basis and the Company shall treat this circumstance as an indicator that the carrying amount of the ROU asset may not be recoverable. At the end of the first quarter ended March 31, 2020, the Company was informed by EVA, its sublease tenant, that EVA will not be in a position to pay future sublease rental payments and intends to exit the sublease. Given the uncertainty of the sublease tenant’s ability to pay the remaining sublease rental payments, the Company determined the carrying amounts of the ROU asset and leasehold improvements associated with the 1020 Marsh Road facility may not be recoverable. Accordingly, the Company performed a recoverability test, using an undiscounted cash flow analysis as of March 31, 2020. Based on the undiscounted cash flow analysis, the Company determined that the ROU and leasehold improvement assets had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then measured the impairment of the asset group using a discounted cash flow analysis of the estimated future sublease payments to be received from an expected sublessee as the Company is currently marketing the 1020 Marsh Road location for subletting. In determining the fair value of the asset group, the Company utilized current real estate market rates, time needed to sublet the building and estimated a discount rate of 9.5%. At the end of the third quarter ended September 30, 2020, the Company continued to evaluate the estimates used in the valuation used in the first quarter of 2020. Given the continued uncertainty due to the COVID-19 shut down and the significant negative impact to the real estate market as of the end of the third quarter, the Company determined the carrying amounts of the ROU asset and leasehold improvements associated with the 1020 Marsh Road facility may not be recoverable. Accordingly, the Company performed a recoverability test, using an undiscounted cash flow analysis as of September 30, 2020. Based on the undiscounted cash flow analysis, the Company determined that the ROU and leasehold improvement assets had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then measured the impairment of the asset group using a discounted cash flow analysis of the estimated future sublease payments to be received from an expected sublessee as the Company is currently marketing the 1020 Marsh Road location for subletting. In determining the fair value of the asset group, the Company utilized current real estate market estimated rates, time needed to sublet the building and estimated a discount rate of 9.5%. Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability 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. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level 1 assets as of December 31, 2020 and 2019. Level 1 securities are comprised of highly liquid money market funds. Preclinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations (“CROs”) that conduct and manage clinical trials on the Company’s behalf. The Company estimates preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. Research and d Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, laboratory supplies, consulting costs, external research and development expenses and allocated overhead, including rent, equipment depreciation, and utilities. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are expensed to research and development costs when incurred. Income t The Company accounts for income taxes under the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. Stock-Based c For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Specifically, the Company includes cumulative foreign currency translation adjustments and net unrealized gains. There was no difference between net loss and comprehensive loss for all periods presented. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options and restricted stock units are considered to be potentially dilutive securities. Because the Company has reported a net loss for the years ended December 31, 2020 and 2019, diluted net loss per common share is the same as basic net loss per common share for those periods. Intangible Asset Intangible assets consist of an assembled workforce which was acquired as part of the Merger with Versartis, Inc. Intangible assets with definite lives are amortized based on their pattern of economic benefit over their estimated useful lives and reviewed periodically for impairment. The estimated useful life of the assembled workforce is 3 years. Collaborative Arrangements The Company records the elements of its collaboration agreements that represent joint operating activities in accordance with ASC Topic 808, Collaborative Arrangements (ASC 808). Accordingly, the elements of the collaboration agreements that represent activities in which both parties are active participants and to which both parties are exposed to the significant risks and rewards that are dependent on the commercial success of the activities are recorded as collaborative arrangements. The Company considers the guidance in ASC 606-10-15, Revenue from Contracts with Customers – Scope and Scope Exceptions, in determining the appropriate treatment for the transactions between the Company and its collaborative partner and the transactions between the Company and third parties. Generally, the classification of transactions under the collaborative arrangements is determined based on the nature and contractual terms of the arrangement along with the nature of the operations of the participants. Currently, we have one collaboration agreement with 3D Medicines, see Note 5 for further discussion. Revenue Recognition The Company’s sole source of revenue for 2019 was grant revenue related to the CPRIT Grant, which is being recognized when qualifying costs are incurred and there is reasonable assurance that the conditions of the award have been met for collection. Proceeds received prior to the costs being incurred or the conditions of the award being met are recognized as deferred revenue until the services are performed and the conditions of the award are met. Funds received are reflected in deferred revenue as a liability until revenue is earned. Grant revenue is recognized when qualifying costs are incurred. As of December 31, 2019, the Company had an unbilled receivable from CPRIT of $1.6 million, which is reflected in prepaid expenses and other current assets on the accompanying consolidated balance sheet. The receivable was collected in March 2020. The Company’s sole source of revenue for 2020 have been generated through our collaboration and license agreement. The Company’s collaboration and license agreements frequently contain multiple elements including (i) intellectual property licenses, and (ii) research and development services. Consideration received under these arrangements may include upfront payments, research and development funding, cost reimbursements, milestone payments, payments for product sales and royalty payments. The Company’s customer includes 3D Medicines Inc. (“3D Medicines”). The Company follows ASC 606, Revenue from Contracts with Customers The Company applies the following five-step model to recognize revenue: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. i) Identify the contract with a customer. The Company considers the terms and conditions of its agreements to identify contracts within the scope of ASC 606. The Company concludes it has a contract with a customer when the contract is approved, each party's rights regarding the goods and services to be transferred can be identified, the payment terms for the goods and services can be identified, it has been determined that the customer has the ability and intent to pay and the contract has commercial substance. The Company uses judgment in determining the customer's ability and intent to pay, which is based upon factors including the customer's historical payment experience or, for new customers, credit and financial information pertaining to the customers. ii) Identify the performance obligations in the contract. Performance obligations in the agreements are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The Company’s performance obligations generally consist of intellectual property licenses and research and development services with respect to license and service agreements, and the manufacture and supply of product for product sales agreements. iii) Determine the transaction price. The Company determines the transaction price based on the consideration to which the Company expects to be entitled in exchange for transferring goods and services to the customer. In determining the transaction price, any variable consideration would be considered, to the extent applicable, if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In accordance with the royalty exception under ASC 606 for licenses of intellectual property, the transaction price excludes future royalty payments to be received from the Company’s customers. None of the Company’s revenue generating contracts contain consideration payable to its customer or a significant financing component. iv) Allocate the transaction price to performance obligations in the contract. If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price. v) Recognize revenue when or as we satisfy a performance obligation. Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised goods or services to a customer. The Company recognizes revenue when control of the goods or services is transferred to the customers for an amount that reflects the consideration that the Company expect to receive in exchange for those goods or services. Performance Obligations. The following is a general description of principal goods and services from which the Company generates revenue. License to intellectual property The Company generates revenue from licensing its intellectual property including know-how and development and commercialization rights. The license provides a customer with the right to further research, develop and commercialize internally-discovered or collaborated drug candidates, or the right to use AVB-500 to further research, develop and commercialize customer drug candidates. The consideration the Company receives is in the form of nonrefundable upfront consideration related to the functional intellectual property licenses and is recognized when the Company transfers such license to the customer unless the license is combined with other goods or services into one performance obligation, in which case the revenue is recognized over a period of time based on the estimated pattern in which the Company satisfies the combined performance obligation. The Company’s licensing agreements are generally cancelable. Research and development services The Company generates revenue from research and development services it provides to its customers and primarily includes clinical trials, and assistance during regulatory approval application process. Revenue associated with these services is recognized based on the Company’s estimate of total consideration to be received for such services and the pattern in which the Company perform the services. The pattern of performance is generally determined to be the amount of incurred costs related to the service portion of the contract with the customer as a percentage of total expected costs associated with the service portion of the contract. Contracts with Multiple Performance Obligations. Most of the Company’s collaboration and license agreements with customers contain multiple promised goods or services. Based on the characteristics of the promised goods and services the Company analyzes whether they are separate or combined performance obligations. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The estimated standalone selling price is based on the adjusted market assessment approach including estimated present value of future cash flows and cost-plus margin approach, taking into consideration the type of services, estimates of hourly market rates, and stage of the development. Variable Consideration. The Company’s contracts with customers primarily include two types of variable consideration: (i) development and regulatory milestone payments, which are due to the Company upon achievement of specific development and regulatory milestones and (ii) one-time sales-based payments and sales-based royalties associated with licensed intellectual property. Due to uncertainty associated with achievement of the development and regulatory milestones, the related milestone payments are excluded from the contract consideration and the corresponding revenue is not recognized until we conclude it is probable that reversal of such milestone revenue will not occur. As part of the Company’s evaluation of the constraint, the Company considers numerous factors, including whether the achievement of the milestone is outside of the Company’s control, contingent upon regulatory approval or dependent on licensee efforts. Product sales-based royalties under licensed intellectual property and one-time payments are accounted for under the royalty exception. The Company recognizes revenue for sales-based royalties under licensed intellectual property and one-time payments at the later of when the sales occur or the performance obligation is satisfied or partially satisfied. The transaction price is reevaluated each reporting period and as uncertain events are resolved or other changes in circumstances occur. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective is not expected to have a material impact on the Company’s financial position or results of operations upon adoption. On November 5, 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) In August 2020, the FASB issued ASU No. 2020-06 , Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40)-Accounting For Convertible Instruments and Contracts in an Entity's Own Equity. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Prepaid expenses and other current assets (in thousands) December 31, 2020 2019 Preclinical and clinical $ 870 $ 531 Clinical research organization receivable 262 — Lease receivable — 900 Unbilled receivable from CPRIT — 1,604 Other 16 44 Total $ 1,148 $ 3,079 Property and equipment, net (in thousands) December 31, 2020 2019 Equipment and furniture $ 1,416 $ 1,442 Buildings, leasehold and building improvements 2,673 2,674 4,089 4,116 Less: Accumulated depreciation and amortization (2,559 ) (2,308 ) Impairment loss (1,004 ) — Property and equipment, net $ 526 $ 1,808 During the year ended December 31, 2020, the Company determined leasehold improvements were impaired as described in Note 2. Depreciation expense was approximately $0.3 million and $0.4 million for the years ended December 31, 2020 and 2019, respectively. Intangible asset, net (in thousands) December 31, 2020 2019 Assembled workforce $ 366 $ 366 366 366 Less: Accumulated amortization (269 ) (147 ) Intangible asset, net $ 97 $ 219 Amortization expense is expected to be approximately $0.1 million in each year over the next 0.8 years. Accrued liabilities (in thousands) December 31, 2020 2019 Payroll and related $ 1,052 $ 1,248 Preclinical and clinical 707 5 Professional services 169 32 Other 395 212 Total $ 2,323 $ 1,497 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company’s financial instruments consist principally of cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities. The remaining financial instruments are reported on the Company’s consolidated balance sheets at amounts that approximate current fair value. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value Measurements at December 31, 2020 Total Level 1 Assets Money market funds $ 49,207 $ 49,207 Fair Value Measurements at December 31, 2019 Total Level 1 Assets Money market funds $ 63,691 $ 63,691 The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the years ended December 31, 2020 or 2019. Nonrecurring fair value measurements As disclosed in Note 2, the Company recorded an impairment charge of approximately $5.8 million related to right-of-use and leasehold improvement assets. This impairment charge was derived using Level 3 inputs and the fair value of the long-lived assets was derived by using a discounted cash flow analysis of the 1020 Space. |
Collaboration and License Agree
Collaboration and License Agreement | 12 Months Ended |
Dec. 31, 2020 | |
Collaboration And License Agreements [Abstract] | |
Collaboration and License Agreement | 5. Collaboration and License Agreement On November 6, 2020, Aravive, Inc. (the “Company”) entered into a collaboration and license agreement (the “Agreement”) with 3D Medicines, whereby the Company granted 3D Medicines an exclusive license to develop and commercialize products that contain AVB-500 as the sole drug substance, for the diagnosis, treatment or prevention of human oncological diseases, in mainland China, Taiwan, Hong Kong and Macau (the “Territory”). Under the terms of the Agreement, the Company is eligible to receive from 3D Medicines cash payments of $12 million to be paid within 15 business days of the effective date of the Agreement, and up to an aggregate of $207 million in clinical development, regulatory and commercial milestone payments. There can be no guarantee that any such milestones will in fact be met. The Company is obligated to make certain payments to The Board of Trustees of the Leland Stanford Junior University (“Stanford”) based on certain amounts received from 3D Medicines under the Agreement pursuant to the existing license agreement by and between the Company and Stanford, dated January 25, 2012, and as amended to date. As of December 31, 2020, the Company estimated $132 thousand due to Stanford. For the year ended December 31, 2020, the Company received payments of $12 million from 3D Medicines. The Company will also be entitled to receive tiered royalties ranging from low double digits to mid-teens on sales in the Territory, if any, of products containing AVB-500. Royalties are payable with respect to each jurisdiction in the Territory until the latest to occur of: (i) the last-to-expire of specified patent rights in such jurisdiction in the Territory; (ii) expiration of marketing or regulatory exclusivity in such jurisdiction in the Territory; or (iii) ten (10) years after the first commercial sale of a product in such jurisdiction in the Territory. In addition, royalties payable under the Agreement will be subject to reduction on account of generic competition under certain specified conditions, with any such reductions capped at certain percentages of the amounts otherwise payable during the applicable royalty payment period. Under the terms and conditions of the Agreement, 3D Medicines will be solely responsible for the development and commercialization of licensed products in the Territory. If either the Company or 3D Medicines materially breaches the Agreement and does not cure such breach, the non-breaching party may terminate the Agreement in its entirety. Either party may also terminate the Agreement, upon written notice, if the other party files for bankruptcy, is dissolved or has a receiver appointed for substantially all of its property. The Company may terminate the Agreement if 3D Medicines, its affiliates or its sublicensees challenges the validity or enforceability of any of the Company’s patents covering any of the licensed compounds or products or ceases substantially all development and commercialization of licensed products in the Territory for a specified period, subject to certain exceptions. 3D Medicines may also terminate the Agreement for convenience provided certain notice is provided to the Company. The Agreement contemplates that the Company will enter into ancillary arrangements with 3D Medicines, including a clinical supply agreement and a manufacturing technology transfer agreement. The Company assessed this arrangement in accordance with ASC 606 and identified the following performance obligations: 1) license to intellectual property, AVB-500, and 2) research and development services, including conducting clinical trials. The Company concluded that each of these performance obligations were distinct because 3D Medicines can benefit from the good or service either on its own or together with other resources that are readily available, and each performance obligation is separately identifiable from other promises within the contract. The estimated total transaction price was allocated between performance obligations based on their relative standalone selling prices. The Company uses a discounted cash flow approach and an expected cost plus a margin approach to estimate the standalone selling price for the performance obligations. The Company recognized in revenue $5.6 million related to the license to intellectual property and $0.1 million related to the research and development services for the year ended December 31, 2020. As of December 31, 2020, the Company had a contract liability balance of $6.3 million of which $2.6 million is classified as current and $3.7 million is classified as long-term, consisting of deferred revenue related to a portion of the payment received from 3D Medicines. The service period for the future research and development services is expected to occur over the next 2.5 years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases The Company adopted ASC 842 as of January 1, 2019, using the modified retrospective approach and therefore prior year financial statements were not recast under the new standard. As a result of the adoption, the Company derecognized $8.6 million of build-to-suit lease asset; $7.3 million of build-to-suit lease obligation and recorded the $1.3 million impact to accumulated deficit. Additionally, the Company recognized operating lease ROU assets of approximately $10.4 million, $2.2 million of leasehold improvements, an operating lease obligation of $12.6 million and derecognized deferred rent of $0.1 million as of January 1, 2019. In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at the 1020 Space. The lease commenced in August 2017 for a period of 87 months with one renewal option for a five-year term. The Company did not include the renewal option period as the Company determined it was not reasonably certain the lease would be renewed as of the modification date. In October 2018, the Company executed a sublease agreement in Palo Alto, California for approximately 4,240 square feet for office space. The rental term of the sublease commenced on October 30, 2018 and expired August 31, 2020. In August 2020, the Company entered into a lease agreement in North Carolina for approximately 4,128 square feet for office space. The monthly lease payments will be approximately $9 thousand per month for a period of 63 months with a three-month rent abatement period. The lease has commenced in the fourth quarter of 2020. The Company’s rent expense including both short-term and variable lease components of $0.5 million and $0.5 million associated with the facility leases was $2.1 million and $2.5 million for the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of lease obligations for operating cash flows from operating leases for 2020 and 2019 was $2.3 million and $2.7 million, respectively. As of December 31, 2020, the Company’s operating leases had a weighted average remaining lease term of 3.9 years and a weighted average discount rate of 7.62%, which approximates the Company’s incremental borrowing rate. As of December 31, 2020, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands): Year Ending December 31, 2021 $ 2,506 2022 2,983 2023 3,067 2024 2,643 2025 116 Thereafter 30 Total future minimum lease payments 11,345 Less: discount (2,828 ) Total lease liabilities $ 8,517 1020 Marsh Sublease In August 2018, the Company entered into an operating sublease agreement with EVA Automation, Inc. (“EVA”) for the 1020 Space referenced above. The 1020 Space sublease commenced on October 1, 2018 for 72 months. EVA was entitled to an abatement of base rent of approximately $0.9 million for the first five full calendar months of the term of the sublease. Lease income associated with this sublease is recorded in other income in the accompanying consolidated statements of operations. At the end of the first quarter ended March 31, 2020, the Company was informed by EVA that it will not be in a position to pay future sublease rental payments and intends to exit the sublease. For the year ended December 31, 2020, the Company recorded an impairment charge to long-lived assets as previously discussed in Note 2. In addition, associated with this impairment charge the Company recorded a write down totaling $1.4 million related to a straight-line sublease rent receivable balance and previously capitalized commission charges, which has been recorded in other expense within the condensed consolidated statement of operations for the year ended December 31, 2020. Overall, for the year ended December 31, 2020, the Company recorded sublease loss associated with this sublease of $13 thousand. For the year ended December 31, 2019, the Company recorded sublease income associated with this sublease of $2.5 million. Cash received from EVA was $1.2 million and $2.3 million for 2020 and 2019, respectively, which amount was included in the change in prepaid expenses and other assets for operating cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Purchase Commitments The Company conducts research and development programs through a combination of internal and collaborative programs that include, among others, arrangements with contract manufacturing organizations and contract research organizations. The Company had contractual arrangements with these organizations including license agreements with milestone obligations and service agreements with obligations largely based on services performed. In the normal course of business, the Company enters into various firm purchase commitments related to certain preclinical and clinical studies. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification In accordance with the Company’s amended and restated Certificate of Incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been no claims to date and the Company has a director and officer insurance policy that may enable it to recover a portion of any amounts paid for future claims. Litigation The Company may from time to time be involved in legal proceedings arising from the normal course of business. There are no pending or threatened legal proceedings as of December 31, 2020. Contingent payable As part of the Merger, the Company acquired a settlement that Aravive Biologics entered into with former creditors in 2014 pursuant to which Aravive Biologics had agreed to make an initial 7.5% cash payment to the creditors with the remainder contingent on future milestone payments, or Contingent Payments, until full repayment of the payables is made. The Contingent Payments are to be made from the proceeds received by Aravive Biologics from any future licensing transactions. As a result of the 3D Medicines partnership agreement in November 2020, the Contingent Payments became due. It was stipulated that the Contingent Payments will be distributed on a pro rata basis with other secured creditors and will be made from at least 10% of any proceeds from any future licensing transactions. The proceeds from any future licensing transactions will be held in an escrow account which will be administered by an independent third party. The creditors agreed that the Initial payment and any Contingent Payments represents settlement in full of all outstanding obligations owed to the creditors by Aravive Biologics and released Aravive Biologics from all claims. As a result of and in connection with the Merger, the Company determined the fair value of the contingent payable to be approximately $0.3 million, based upon an appraisal (or valuation) of the assets and liabilities assumed to determine fair values. Due to the 3D Medicines Licensing agreement, the contingent payable became due and payable. Accordingly, for the year ended December 31, 2020, the Company accreted the balance to the gross amount of $0.7 million and paid $0.4 million. The remaining payable balance of $0.3 million was paid subsequently in February of 2021. As of December 31, 2020, the unpaid portion of the liability was classified in accrued liabilities in the accompanying consolidated balance sheet. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Stock | 8. Common Stock The Amended and Restated Certificate of Incorporation, authorizes the Company to issue 100,000,000 shares of common stock as of December 31, 2020. Common stockholders are entitled to dividends as and when declared by the Board of Directors, subject to the rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote. The Company had reserved shares of common stock for future issuances as follows: December 31, 2020 2019 Issuance of equity-based awards under stock plan 1,600,703 1,391,697 Issuance upon exercise of options under stock plan 2,173,776 1,820,160 Issuance of restricted stock units under stock plan 233 42,112 Total 3,774,712 3,253,969 In December 2019, the Company closed a public offering of its common stock pursuant to which the Company issued 3,633,334 shares of common stock, which included shares issued pursuant to the underwriters’ partial exercise of their over-allotment option and received net proceeds of approximately $25.1 million, after underwriting discounts, commissions and offering expenses. Related party transactions Board of Director Investment On December 2, 2019, an entity affiliated with an individual who at the time was a member of our board of directors, invested approximately $1,000,000 in our public offering and acquired 133,333 shares of common stock in the offering. Private Placement On April 6, 2020, the Company, entered into an investment agreement (the “Investment Agreement”), by and among the Company, Eshelman Ventures, LLC, a North Carolina limited liability company (the “Eshelman Ventures”), and, solely for purposes of Article IV and Article V of the Investment Agreement, Fredric N. Eshelman, Pharm.D., who immediately became the Company’s chairman of the board. On April 8, 2020, pursuant to the Investment Agreement, Eshelman Ventures purchased 931,098 shares of the Company’s unregistered common stock for an aggregate purchase price of approximately $5.0 million. The Company recorded the amount received net of expenses of approximately $78 thousand. At the Market Offering Program In September 2020, the Company filed a shelf registration statement on Form S-3 with the SEC which was declared effective by the SEC on November 20, 2020 (the “Form S-3”). On September 4, 2020, and pursuant to the Form S-3, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Piper Sandler & Co. (“Piper Sandler”) and Cantor Fitzgerald & Co. (“Cantor Fitzgerald”) to sell shares of the Company’s common stock, par value $0.0001 per share, from time to time, through an “at the market offering” program h aving an aggregate offering price of up to $60,000,000 through |
Stock Based Awards
Stock Based Awards | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Awards | 9. Stock Based Awards Equity Incentive Plans The Company’s Board of Directors, or Board, and stockholders approved the 2019 Equity Incentive Plan, or the 2019 Plan, which became effective on September 12, 2019. The 2019 Plan is a successor to and continuation of all prior plans including the Company’s 2014 Equity Incentive Plan and Aravive Biologics 2017 Equity Incentive Plan and the 2010 Equity Incentive Plan, as amended (Prior Plans). As of December 31, 2020, the total number of shares of common stock available for issuance under the 2019 Plan was 1,600,703. In addition, if the shares subject to outstanding stock options or other awards under the Prior Plans: (I) terminate or expire prior to exercise or settlement; (II) are not issued because the award is settled in cash; (III) are forfeited because of failure to vest; (IV) or are reacquired or withheld (or not issued) to satisfy a tax withholding obligation or the purchase or exercise price, if any, such shares will become available for issuance under the 2019 Plan. Unless the Board provides otherwise, beginning January 1, 2020 with expiration of January 1, 2029, the total number of shares of common stock available for issuance will automatically increase annually on January 1 of each calendar year by 4.5% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. The 2019 Plan provides for granting of equity awards to employees, directors and consultants, including incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance awards. Activity under the Company’s stock option plans is set forth below: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Life Value Shares Price (in years) (in thousands) Balances, January 1, 2019 1,515,923 $ 18.65 Options granted 483,328 5.55 Options exercised (39,686 ) 2.40 Options cancelled (139,405 ) 81.33 Balances, December 31, 2019 1,820,160 10.70 Options granted 799,460 9.19 Options exercised (114,515 ) 2.76 Options cancelled (331,329 ) 17.07 Balances, December 31, 2020 2,173,776 $ 9.59 5.8 $ 5,905 Vested and expected to vest as of December 31, 2020 2,074,651 $ 9.68 5.6 $ 5,891 Exercisable as of December 31, 2020 1,593,995 $ 10.32 4.6 $ 5,816 The intrinsic values of outstanding, vested and exercisable options were determined by multiplying the number of shares by the difference in exercise price of the options and the fair value of the common stock. The intrinsic value of stock options exercised during the years ended December 31, 2020 and 2019, was $0.6 million and $0.4 million, respectively. Stock Options Granted to Employees During the year ended December 31, 2020 and 2019, the Company granted stock options to officers, directors and employees to purchase shares of common stock with a weighted-average grant date fair value of $7.69 and $4.69 per share, respectively. The fair value is being expensed over the vesting period of the options, which is usually 4 years on a straight-line basis as the services are being provided. No tax benefits were realized from options and other share-based payment arrangements during the periods. During the year ended December 31, 2020, the Company modified certain stock options and restricted stock units that were outstanding to our two former CEO’s and former directors. The modification of the terms or conditions of an equity award was treated as an exchange of the original award for a new award. The Company then recognized additional compensation for any incremental value. Incremental compensation cost was measured as the excess, if any, of the fair value of the modified award over the fair value of the original aware immediately before its terms were modified. As a result of these modifications during the year ended December 31, 2020, the Company recognized incremental compensation costs of $0.4 million. As of December 31, 2020, total unrecognized employee stock-based compensation related to stock options granted was $2.9 million, which is expected to be recognized over the weighted-average remaining vesting period of 2.7 years. The fair value of employee stock options was estimated using the Black-Scholes model with the following weighted-average assumptions Year Ended December 31, 2020 2019 Expected volatility 112.0 % 111.0 % Risk-free interest rate 1.0 % 2.4 % Dividend yield 0.0 % 0.0 % Expected life (in years) 6.0 6.0 Determining Fair Value of Stock Options The fair value of each grant of stock options was determined by the Company using the methods and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment to determine. Expected Volatility – The expected volatility is based on the historical volatility of our common stock over the most recent period commensurate with the estimated expected term of our stock options. Risk-Free Interest Rate – The risk-free rate assumption was based on the U.S. Treasury instruments with terms that were consistent with the expected term of the Company’s stock options. Expected Dividend – The expected dividend assumption was based on the Company’s history and expectation of dividend payouts. Expected Term – The expected term of stock options represents the weighted average period the stock options are expected to be outstanding. For option grants that are considered to be “plain vanilla”, the Company has opted to use the simplified method for estimating the expected term as provided by the Securities and Exchange Commission. The simplified method calculates the expected term as the average time-to-vesting and the contractual life of the options. Forfeiture Rate – Forfeitures were estimated based on historical experience. Fair Value of Common Stock – The fair value of the underlying common stock is based upon quoted prices on the Nasdaq Global Select Market. Stock-based compensation expense, net of estimated forfeitures, is reflected in the statements of operations as follows (in thousands): Year Ended December 31, 2020 2019 Operating Expenses Research and development $ 536 $ 347 General and administrative 1,430 3,052 Total $ 1,966 $ 3,399 2014 Employee Stock Purchase Plan The board of directors adopted, and the Company’s stockholders approved, the 2014 Employee Stock Purchase Plan, or the ESPP, in March 2014. The ESPP became effective on March 20, 2014. The maximum aggregate number of shares of common stock that may be issued under the ESPP per purchase period is 2,500 shares (which was adjusted for the reverse stock split that occurred in October 2018). Additionally, the number of shares of common stock reserved for issuance under the ESPP will increase automatically each year, beginning on January 1, 2015 and continuing through and including January 1, 2024, by the lesser of (i) 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year; and (ii) 50,000 shares of common stock (which was adjusted for the reverse stock split that occurred in October 2018). The board of directors may act prior to the first day of any calendar year to provide that there will be no January 1 increase or that the increase will be for a lesser number of shares than would otherwise occur. Shares subject to purchase rights granted under the ESPP that terminate without having been exercised in full will not reduce the number of shares available for issuance under the ESPP. An employee may not be granted rights to purchase stock under the ESPP if such employee (i) immediately after the grant would own stock possessing 5% or more of the total combined voting power or value of the Company’s common stock, or (ii) holds rights to purchase stock under the ESPP that would accrue at a rate that exceeds $25,000 worth of our stock for each calendar year that the rights remain outstanding. The administrator may approve offerings with a duration of not more than 27 months and may specify one or more shorter purchase periods within each offering. Each offering will have one or more purchase dates on which shares of common stock will be purchased for the employees who are participating in the offering. The administrator, in its discretion, will determine the terms of offerings under the ESPP. The ESPP permits participants to purchase shares of our common stock through payroll deductions with up to 15% of their earnings. The purchase price of the shares will be not less than 85% of the lower of the fair market value of our common stock on the first day of an offering or on the date of purchase. The fair value of the ESPP grants were immaterial for the years ended December 31, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provision (benefit) for federal income taxes in 2020 and 2019 is as follows (in thousands): December 31, 2020 2019 Current Federal $ — $ — State — — — — Deferred Federal $ — $ — State — — Total deferred tax expense — — Total income tax expense $ — $ — Income tax expense (benefit) in 2020 and 2019 differed from the amount expected by applying the statutory federal tax rate to the income or loss before taxes as summarized below: December 31, 2020 2019 Federal tax benefit at statutory rate 21 % 21 % Change in valuation allowance (12 )% (23 )% Section 382 limitation — — Other non-deductible expenses (1 )% (1 )% Stock based compensation (8 )% (7 )% ASC 842 lease accounting — 10 % Total 0 % 0 % Deferred income taxes reflect the net tax effects of net operating loss and tax credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets at December 31, 2020 and 2019 are as follows (in thousands): December 31, 2020 2019 Net operating loss carry forwards $ 10,988 $ 5,869 Research and development tax credits 90 90 Stock based compensation and other 2,860 5,099 Operating lease obligation 1,789 2,149 Total deferred tax assets 15,727 13,207 Less: Valuation allowance (15,106 ) (11,326 ) Deferred tax liabilities — (55 ) Operating lease right-of-use assets (621 ) (1,826 ) Net deferred tax assets $ — $ — The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company’s deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, the Company does not believe that it is more likely than not that the deferred tax assets will be realized; accordingly, a full valuation allowance has been established and no deferred tax asset is shown in the accompanying consolidated balance sheets. The valuation allowance increased by approximately $3.8 million in 2020 and increased $4.3 million in 2019. At December 31, 2020, the Company has net operating loss carryforwards for federal income tax purposes of approximately $52.3 million, of which $47.5 million was generated post December 31, 2017 (after section 382 limitation) and will have no expiration date. The remaining $4.8 million of net operating loss carryforwards begin to expire in 2037. The Company also has federal research and development tax credits of approximately $90 thousand, which begin to expire in 2037. As of December 31, 2020, the Company’s total gross deferred tax assets were $15.7 million. Due to the Company’s lack of earnings history and uncertainties surrounding our ability to generate future taxable income, the net deferred tax assets have been fully offset by a valuation allowance. The deferred tax assets were primarily comprised of federal tax net operating losses and tax credit carryforwards. Utilization of net operating losses and tax credit carryforwards may be limited by the “ownership change” rules, as defined in Section 382 of the Internal Revenue Code (any such limitation, a “Section 382 limitation”). Similar rules may apply under state tax laws. The Company has performed an analysis to determine whether an “ownership change” occurred from inception up to the Aravive Biologics' acquisition date. Based on this analysis during 2018, management determined that both Versartis, Inc. and Aravive Biologics did experience ownership changes, which resulted in a significant impairment of the net operating losses and credit carryforwards. During the years ended December 31, 2020 and 2019, no additional ownership changes were noted. The Company follows the provisions of FASB Accounting Standards Codification 740-10 (ASC 740-10), Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in consolidated financial statements of uncertain tax positions that have been taken or expected to be taken on a tax return. No liability related to uncertain tax positions is recorded in the consolidated financial statements. At December 31, 2020 and 2019, the Company’s reserve for unrecognized tax benefits is approximately $39 thousand. Due to the full valuation allowance at December 31, 2020, current adjustments to the unrecognized tax benefit will have no impact on the Company’s effective income tax rate. The Company does not anticipate any significant change in its unrecognized tax benefits within 12 months of this reporting date. The Company includes penalties and interest expense related to income taxes as a component of other expense and interest expense, respectively, as necessary. Because the statute of limitations does not expire until after the net operating loss and credit carryforwards are actually used, the statute is effectively open for all tax years. However, due to the above-mentioned ownership change and impairment of net operating loss and credit carryforwards, only net operating loss and credit carryforwards post-January 14, 2017 are carried forward to future years for federal and state tax purposes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Amount Balance at January 1, 2019 72 Gross increase/ (decrease) related to prior year tax positions (72 ) Gross increase related to current year positions 39 Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2019 $ 39 Gross increase/ (decrease) related to prior year tax positions — Gross increase related to current year positions — Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2020 $ 39 All tax years remain open for examination by federal and state tax authorities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans Defined Contribution Plan The Company sponsors a 401(k) Plan, which stipulates that eligible employees can elect to contribute to the 401(k) Plan, subject to certain limitations of eligible compensation. The Company may match employee contributions in amounts to be determined at the Company’s sole discretion. Employer contributions were $15 thousand for 2020 and none for 2019. |
Net Loss per Share of Common St
Net Loss per Share of Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share of Common Stock | 12. Net loss per share of Common Stock The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company (in thousands, except per share data): December 31, 2020 2019 Net loss attributable to common stockholders- basic and diluted $ (30,543 ) $ (18,218 ) Net loss per share- basic and diluted $ (1.93 ) $ (1.57 ) Weighted-average common shares used to compute net loss per share- basic and diluted 15,790 11,589 Basic net loss attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net loss attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as-if converted method, for convertible securities, if inclusion of these is dilutive. Because the Company has reported a net loss for the years ended December 31, 2020 and 2019, the Company did not have dilutive common stock equivalents and therefore diluted net loss per common share is the same as basic net loss per common share for those years. The following potentially dilutive securities outstanding at the end of the years presented have been excluded from the computation of diluted shares outstanding: December 31, 2020 2019 Options to purchase common stock 2,173,776 1,820,160 Restricted stock units 233 42,112 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events At the Market Offering Program In January and February 2021, the Company sold 197,949 Related party transaction On February 12, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”), with Eshelman Ventures relating to the issuance and sale (the “Offering”) of 2,875,000 shares of the Company’s common stock at a price per share of $7.29. The Offering closed on February 18, 2021 and the Company received aggregate gross proceeds from the Offering of approximately $21.0 million. Eshelman Ventures is an entity wholly owned by the Company’s chairman of the board. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the accompanying consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying financial statements are consolidated for the year ended December 31, 2020 and includes the accounts of Aravive, Inc. and its wholly-owned subsidiary Aravive Biologics. The accompanying financial statements are consolidated for the year ended December 31, 2019 and include the accounts of Aravive, Inc. and its then wholly-owned subsidiaries, Versartis Cayman Holdings Company, incorporated in 2014, Versartis GmbH, incorporated in 2015 and Aravive Biologics, incorporated in 2007. After 2015, the Cayman and GmbH subsidiaries became dormant. In 2019, the Cayman and GmbH subsidiaries were liquidated in their respective countries and no longer exist as of December 31, 2019. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all of the Company's subsidiaries and consolidated operations. Liquidity and Capital Resources Since inception, the Company has incurred net losses and negative cash flows from operations. At December 31, 2020, the Company had an accumulated deficit of $500.7 million and working capital of $52.2 million. Since inception, the Company has incurred net losses and negative cash flows from operations. The Company expects to continue to incur losses from costs related to the development of AVB-500 and related administrative activities for the foreseeable future. As of December 31, 2020, the Company had a cash and cash equivalents balance of $60.5 million consisting of cash and investments in highly liquid U.S. money market funds. While the Company believes that its existing cash and cash equivalents will be sufficient to sustain operations for at least the next 12 months from the issuance of these financial statements, based on its current business plan, the Company will need to obtain additional financing to advance its clinical development program to later stages of development and commercialize its clinical product candidate. Although management has been successful in raising capital in the past, there can be no assurance that the Company will be successful or that any needed financing will be available in the future at terms acceptable to the Company. |
Segments | Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. |
Concentration of Credit Risk | Concentration of c r Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. All of the Company’s cash and cash equivalents are held at several financial institutions that management believes are of high credit quality. Such deposits may exceed federally insured limits. |
Risks And Uncertainties | Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration (“FDA”), the Pharmaceuticals Medicines and Devices Agency (“PMDA”), or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary clearances. If the Company is denied clearance, clearance is delayed or the Company is unable to maintain clearance, it could have a material adverse impact on the Company. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to launch and commercialize any product candidates for which it receives regulatory approval. |
Cash and Cash Equivalents, Restricted Cash | Cash and c e The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At December 31, 2020 and 2019 the Company’s cash and cash equivalents were held in multiple institutions within the United States and included deposits in money market funds which were unrestricted as to withdrawal or use. Restricted cash consists of a letter of credit to secure the Company’s obligations under the right-of-use lease. |
Property and Equipment, Net | Property and e Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheets and any resulting gain or loss is reflected in operations in the period realized. |
Leases | Leases The Company leases all of its office space in conducting its business. At inception, the Company determines whether an agreement represents a lease and at commencement the Company evaluates each lease agreement to determine whether the lease is an operating or financing lease. The Company records an operating lease ROU asset and an operating lease obligation on the consolidated balance sheet when entering into a lease. ROU assets represent the Company’s ROU of the underlying asset for the lease term and the lease obligation represents the Company’s commitment to make the lease payments arising from the lease. Lease obligations are recognized at the commencement date based on the present value of remaining lease payments over the lease term and ROU assets are calculated as the lease liability, adjusted by unamortized initial direct costs, unamortized lease incentives received, cumulative deferred or prepaid lease payments, and accumulated impairment losses. As the Company’s leases do not provide an implicit rate, the Company has used an estimated incremental borrowing rate based on the information available at the lease inception date in determining the present value of lease payments. The lease term may include options to extend or terminate the lease and the Company includes renewal options in its calculation of the estimated lease term when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term, subject to any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. Variable lease costs and short-term lease payments not included in the lease liability are classified within operating activities in the consolidated statements of cash flows. For all lease agreements, the Company has combined lease and nonlease components. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. These expenses are recognized within operating expenses in the consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by the comparison of the carrying amount to the future net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value (i.e., determined through estimating projected discounted future net cash flows or other acceptable methods of determining fair value) arising from the asset. There were no such impairments of long-lived assets as of December 31, 2019. The Company accounts for the sublease with EVA Automation, Inc. (“EVA”) as an operating lease and reviews the ROU asset recorded associated with the sublease for impairment whenever events or changes in circumstances indicate that the carrying amount of the ROU asset may not be recoverable in accordance with ASC 360-10. Recoverability is measured if the lease cost for the term of the sublease exceeds the anticipated sublease income for the same period on an undiscounted basis and the Company shall treat this circumstance as an indicator that the carrying amount of the ROU asset may not be recoverable. At the end of the first quarter ended March 31, 2020, the Company was informed by EVA, its sublease tenant, that EVA will not be in a position to pay future sublease rental payments and intends to exit the sublease. Given the uncertainty of the sublease tenant’s ability to pay the remaining sublease rental payments, the Company determined the carrying amounts of the ROU asset and leasehold improvements associated with the 1020 Marsh Road facility may not be recoverable. Accordingly, the Company performed a recoverability test, using an undiscounted cash flow analysis as of March 31, 2020. Based on the undiscounted cash flow analysis, the Company determined that the ROU and leasehold improvement assets had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then measured the impairment of the asset group using a discounted cash flow analysis of the estimated future sublease payments to be received from an expected sublessee as the Company is currently marketing the 1020 Marsh Road location for subletting. In determining the fair value of the asset group, the Company utilized current real estate market rates, time needed to sublet the building and estimated a discount rate of 9.5%. At the end of the third quarter ended September 30, 2020, the Company continued to evaluate the estimates used in the valuation used in the first quarter of 2020. Given the continued uncertainty due to the COVID-19 shut down and the significant negative impact to the real estate market as of the end of the third quarter, the Company determined the carrying amounts of the ROU asset and leasehold improvements associated with the 1020 Marsh Road facility may not be recoverable. Accordingly, the Company performed a recoverability test, using an undiscounted cash flow analysis as of September 30, 2020. Based on the undiscounted cash flow analysis, the Company determined that the ROU and leasehold improvement assets had net carrying values that exceeded their estimated undiscounted future cash flows. The Company then measured the impairment of the asset group using a discounted cash flow analysis of the estimated future sublease payments to be received from an expected sublessee as the Company is currently marketing the 1020 Marsh Road location for subletting. In determining the fair value of the asset group, the Company utilized current real estate market estimated rates, time needed to sublet the building and estimated a discount rate of 9.5%. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability 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. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level 1 assets as of December 31, 2020 and 2019. Level 1 securities are comprised of highly liquid money market funds. |
Preclinical and Clinical Trial Accruals | Preclinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations (“CROs”) that conduct and manage clinical trials on the Company’s behalf. The Company estimates preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. |
Research and Development | Research and d Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, laboratory supplies, consulting costs, external research and development expenses and allocated overhead, including rent, equipment depreciation, and utilities. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are expensed to research and development costs when incurred. |
Income Taxes | Income t The Company accounts for income taxes under the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. |
Stock-Based Compensation | Stock-Based c For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Specifically, the Company includes cumulative foreign currency translation adjustments and net unrealized gains. There was no difference between net loss and comprehensive loss for all periods presented. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options and restricted stock units are considered to be potentially dilutive securities. Because the Company has reported a net loss for the years ended December 31, 2020 and 2019, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Intangible Assets | Intangible Asset Intangible assets consist of an assembled workforce which was acquired as part of the Merger with Versartis, Inc. Intangible assets with definite lives are amortized based on their pattern of economic benefit over their estimated useful lives and reviewed periodically for impairment. The estimated useful life of the assembled workforce is 3 years. |
Collaborative Arrangements | Collaborative Arrangements The Company records the elements of its collaboration agreements that represent joint operating activities in accordance with ASC Topic 808, Collaborative Arrangements (ASC 808). Accordingly, the elements of the collaboration agreements that represent activities in which both parties are active participants and to which both parties are exposed to the significant risks and rewards that are dependent on the commercial success of the activities are recorded as collaborative arrangements. The Company considers the guidance in ASC 606-10-15, Revenue from Contracts with Customers – Scope and Scope Exceptions, in determining the appropriate treatment for the transactions between the Company and its collaborative partner and the transactions between the Company and third parties. Generally, the classification of transactions under the collaborative arrangements is determined based on the nature and contractual terms of the arrangement along with the nature of the operations of the participants. Currently, we have one collaboration agreement with 3D Medicines, see Note 5 for further discussion. |
Revenue Recognition | Revenue Recognition The Company’s sole source of revenue for 2019 was grant revenue related to the CPRIT Grant, which is being recognized when qualifying costs are incurred and there is reasonable assurance that the conditions of the award have been met for collection. Proceeds received prior to the costs being incurred or the conditions of the award being met are recognized as deferred revenue until the services are performed and the conditions of the award are met. Funds received are reflected in deferred revenue as a liability until revenue is earned. Grant revenue is recognized when qualifying costs are incurred. As of December 31, 2019, the Company had an unbilled receivable from CPRIT of $1.6 million, which is reflected in prepaid expenses and other current assets on the accompanying consolidated balance sheet. The receivable was collected in March 2020. The Company’s sole source of revenue for 2020 have been generated through our collaboration and license agreement. The Company’s collaboration and license agreements frequently contain multiple elements including (i) intellectual property licenses, and (ii) research and development services. Consideration received under these arrangements may include upfront payments, research and development funding, cost reimbursements, milestone payments, payments for product sales and royalty payments. The Company’s customer includes 3D Medicines Inc. (“3D Medicines”). The Company follows ASC 606, Revenue from Contracts with Customers The Company applies the following five-step model to recognize revenue: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. i) Identify the contract with a customer. The Company considers the terms and conditions of its agreements to identify contracts within the scope of ASC 606. The Company concludes it has a contract with a customer when the contract is approved, each party's rights regarding the goods and services to be transferred can be identified, the payment terms for the goods and services can be identified, it has been determined that the customer has the ability and intent to pay and the contract has commercial substance. The Company uses judgment in determining the customer's ability and intent to pay, which is based upon factors including the customer's historical payment experience or, for new customers, credit and financial information pertaining to the customers. ii) Identify the performance obligations in the contract. Performance obligations in the agreements are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The Company’s performance obligations generally consist of intellectual property licenses and research and development services with respect to license and service agreements, and the manufacture and supply of product for product sales agreements. iii) Determine the transaction price. The Company determines the transaction price based on the consideration to which the Company expects to be entitled in exchange for transferring goods and services to the customer. In determining the transaction price, any variable consideration would be considered, to the extent applicable, if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In accordance with the royalty exception under ASC 606 for licenses of intellectual property, the transaction price excludes future royalty payments to be received from the Company’s customers. None of the Company’s revenue generating contracts contain consideration payable to its customer or a significant financing component. iv) Allocate the transaction price to performance obligations in the contract. If the contract contains a single performance obligation, the entire transaction price is allocated to that performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price. v) Recognize revenue when or as we satisfy a performance obligation. Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised goods or services to a customer. The Company recognizes revenue when control of the goods or services is transferred to the customers for an amount that reflects the consideration that the Company expect to receive in exchange for those goods or services. Performance Obligations. The following is a general description of principal goods and services from which the Company generates revenue. License to intellectual property The Company generates revenue from licensing its intellectual property including know-how and development and commercialization rights. The license provides a customer with the right to further research, develop and commercialize internally-discovered or collaborated drug candidates, or the right to use AVB-500 to further research, develop and commercialize customer drug candidates. The consideration the Company receives is in the form of nonrefundable upfront consideration related to the functional intellectual property licenses and is recognized when the Company transfers such license to the customer unless the license is combined with other goods or services into one performance obligation, in which case the revenue is recognized over a period of time based on the estimated pattern in which the Company satisfies the combined performance obligation. The Company’s licensing agreements are generally cancelable. Research and development services The Company generates revenue from research and development services it provides to its customers and primarily includes clinical trials, and assistance during regulatory approval application process. Revenue associated with these services is recognized based on the Company’s estimate of total consideration to be received for such services and the pattern in which the Company perform the services. The pattern of performance is generally determined to be the amount of incurred costs related to the service portion of the contract with the customer as a percentage of total expected costs associated with the service portion of the contract. Contracts with Multiple Performance Obligations. Most of the Company’s collaboration and license agreements with customers contain multiple promised goods or services. Based on the characteristics of the promised goods and services the Company analyzes whether they are separate or combined performance obligations. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The estimated standalone selling price is based on the adjusted market assessment approach including estimated present value of future cash flows and cost-plus margin approach, taking into consideration the type of services, estimates of hourly market rates, and stage of the development. Variable Consideration. The Company’s contracts with customers primarily include two types of variable consideration: (i) development and regulatory milestone payments, which are due to the Company upon achievement of specific development and regulatory milestones and (ii) one-time sales-based payments and sales-based royalties associated with licensed intellectual property. Due to uncertainty associated with achievement of the development and regulatory milestones, the related milestone payments are excluded from the contract consideration and the corresponding revenue is not recognized until we conclude it is probable that reversal of such milestone revenue will not occur. As part of the Company’s evaluation of the constraint, the Company considers numerous factors, including whether the achievement of the milestone is outside of the Company’s control, contingent upon regulatory approval or dependent on licensee efforts. Product sales-based royalties under licensed intellectual property and one-time payments are accounted for under the royalty exception. The Company recognizes revenue for sales-based royalties under licensed intellectual property and one-time payments at the later of when the sales occur or the performance obligation is satisfied or partially satisfied. The transaction price is reevaluated each reporting period and as uncertain events are resolved or other changes in circumstances occur. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective is not expected to have a material impact on the Company’s financial position or results of operations upon adoption. On November 5, 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808) In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) In August 2020, the FASB issued ASU No. 2020-06 , Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40)-Accounting For Convertible Instruments and Contracts in an Entity's Own Equity. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets (in thousands) December 31, 2020 2019 Preclinical and clinical $ 870 $ 531 Clinical research organization receivable 262 — Lease receivable — 900 Unbilled receivable from CPRIT — 1,604 Other 16 44 Total $ 1,148 $ 3,079 |
Property and Equipment, Net | Property and equipment, net (in thousands) December 31, 2020 2019 Equipment and furniture $ 1,416 $ 1,442 Buildings, leasehold and building improvements 2,673 2,674 4,089 4,116 Less: Accumulated depreciation and amortization (2,559 ) (2,308 ) Impairment loss (1,004 ) — Property and equipment, net $ 526 $ 1,808 |
Intangible Asset, Net | Intangible asset, net (in thousands) December 31, 2020 2019 Assembled workforce $ 366 $ 366 366 366 Less: Accumulated amortization (269 ) (147 ) Intangible asset, net $ 97 $ 219 |
Accrued Liabilities | Accrued liabilities (in thousands) December 31, 2020 2019 Payroll and related $ 1,052 $ 1,248 Preclinical and clinical 707 5 Professional services 169 32 Other 395 212 Total $ 2,323 $ 1,497 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value Measurements at December 31, 2020 Total Level 1 Assets Money market funds $ 49,207 $ 49,207 Fair Value Measurements at December 31, 2019 Total Level 1 Assets Money market funds $ 63,691 $ 63,691 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Minimum Lease Payments Under Non-cancelable Operating Leases | As of December 31, 2020, minimum lease payments under non-cancelable operating leases by period were expected to be as follows (in thousands): Year Ending December 31, 2021 $ 2,506 2022 2,983 2023 3,067 2024 2,643 2025 116 Thereafter 30 Total future minimum lease payments 11,345 Less: discount (2,828 ) Total lease liabilities $ 8,517 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Reserved Shares of Common Stock for Future Issuances | The Company had reserved shares of common stock for future issuances as follows: December 31, 2020 2019 Issuance of equity-based awards under stock plan 1,600,703 1,391,697 Issuance upon exercise of options under stock plan 2,173,776 1,820,160 Issuance of restricted stock units under stock plan 233 42,112 Total 3,774,712 3,253,969 |
Stock Based Awards (Tables)
Stock Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | Activity under the Company’s stock option plans is set forth below: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Life Value Shares Price (in years) (in thousands) Balances, January 1, 2019 1,515,923 $ 18.65 Options granted 483,328 5.55 Options exercised (39,686 ) 2.40 Options cancelled (139,405 ) 81.33 Balances, December 31, 2019 1,820,160 10.70 Options granted 799,460 9.19 Options exercised (114,515 ) 2.76 Options cancelled (331,329 ) 17.07 Balances, December 31, 2020 2,173,776 $ 9.59 5.8 $ 5,905 Vested and expected to vest as of December 31, 2020 2,074,651 $ 9.68 5.6 $ 5,891 Exercisable as of December 31, 2020 1,593,995 $ 10.32 4.6 $ 5,816 |
Summary of Fair Value of Employee Stock Options | The fair value of employee stock options was estimated using the Black-Scholes model with the following weighted-average assumptions Year Ended December 31, 2020 2019 Expected volatility 112.0 % 111.0 % Risk-free interest rate 1.0 % 2.4 % Dividend yield 0.0 % 0.0 % Expected life (in years) 6.0 6.0 |
Schedule of Estimated Stock-Based Compensation Expense | Stock-based compensation expense, net of estimated forfeitures, is reflected in the statements of operations as follows (in thousands): Year Ended December 31, 2020 2019 Operating Expenses Research and development $ 536 $ 347 General and administrative 1,430 3,052 Total $ 1,966 $ 3,399 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Federal Income Taxes | The provision (benefit) for federal income taxes in 2020 and 2019 is as follows (in thousands): December 31, 2020 2019 Current Federal $ — $ — State — — — — Deferred Federal $ — $ — State — — Total deferred tax expense — — Total income tax expense $ — $ — |
Summary of Statutory Federal Tax Rate to Income or Loss before Taxes | Income tax expense (benefit) in 2020 and 2019 differed from the amount expected by applying the statutory federal tax rate to the income or loss before taxes as summarized below: December 31, 2020 2019 Federal tax benefit at statutory rate 21 % 21 % Change in valuation allowance (12 )% (23 )% Section 382 limitation — — Other non-deductible expenses (1 )% (1 )% Stock based compensation (8 )% (7 )% ASC 842 lease accounting — 10 % Total 0 % 0 % |
Significant Components of Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets at December 31, 2020 and 2019 are as follows (in thousands): December 31, 2020 2019 Net operating loss carry forwards $ 10,988 $ 5,869 Research and development tax credits 90 90 Stock based compensation and other 2,860 5,099 Operating lease obligation 1,789 2,149 Total deferred tax assets 15,727 13,207 Less: Valuation allowance (15,106 ) (11,326 ) Deferred tax liabilities — (55 ) Operating lease right-of-use assets (621 ) (1,826 ) Net deferred tax assets $ — $ — |
Reconciliation of Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Amount Balance at January 1, 2019 72 Gross increase/ (decrease) related to prior year tax positions (72 ) Gross increase related to current year positions 39 Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2019 $ 39 Gross increase/ (decrease) related to prior year tax positions — Gross increase related to current year positions — Reductions to unrecognized tax benefits related to lapsing statute of limitations — Balance at December 31, 2020 $ 39 |
Net Loss per Share of Common _2
Net Loss per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company (in thousands, except per share data): December 31, 2020 2019 Net loss attributable to common stockholders- basic and diluted $ (30,543 ) $ (18,218 ) Net loss per share- basic and diluted $ (1.93 ) $ (1.57 ) Weighted-average common shares used to compute net loss per share- basic and diluted 15,790 11,589 |
Summary of Potentially Anti-dilutive Securities Excluded from Computation of Diluted Shares Outstanding | The following potentially dilutive securities outstanding at the end of the years presented have been excluded from the computation of diluted shares outstanding: December 31, 2020 2019 Options to purchase common stock 2,173,776 1,820,160 Restricted stock units 233 42,112 |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Detail) - USD ($) | Jun. 01, 2016 | Jul. 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Grant [Line Items] | ||||
Revenue from product development award | $ 5,685,000 | $ 4,753,000 | ||
Cancer Prevention & Research Institute of Texas [Member] | ||||
Grant [Line Items] | ||||
Revenue from product development award | $ 20,000,000 | |||
Grant termination date | Nov. 30, 2019 | |||
Percentage of cash required to raise in matching funds | 50.00% | |||
Cash required to raise in matching funds | $ 10,000,000 | |||
Term of project during which cash required to raise in matching funds | 3 years | |||
Cash required in matching funds raised | $ 10,000,000 | |||
Percentage of grant award proceeds required to pay | 400.00% | |||
Cancer Prevention & Research Institute of Texas [Member] | Maximum [Member] | ||||
Grant [Line Items] | ||||
Percentage of grant award proceeds required to pay thereafter until government exclusivity maintained | 1.00% | |||
Stanford University [Member] | Maximum [Member] | ||||
Grant [Line Items] | ||||
Milestone payments upon achievement of clinical and regulatory milestones | $ 1,000,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Accumulated deficit | $ (500,654) | $ (470,111) | $ 1,300 | ||
Working capital | 52,200 | ||||
Cash and cash equivalents | $ 60,541 | 65,134 | |||
Number of operating segment | Segment | 1 | ||||
Cash and cash equivalents, restricted cash maturity period | Three months or less | ||||
Lessee, operating lease, existence of option to extend | true | true | |||
Lessee, operating lease, existence of option to terminate | true | true | |||
Lessee, operating lease, existence of option to extend | true | true | |||
Impairments of right-of-use assets | $ 2,400 | $ 2,400 | |||
leasehold improvement assets | $ 500 | $ 500 | $ 2,200 | ||
Loss on impairment of long-lived assets | $ 5,784 | ||||
Estimated useful life of intangible assets | 9 months 18 days | ||||
Unbilled receivable | 1,604 | ||||
ASU 2018-18 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||||
Grant Revenue [Member] | Cancer Prevention & Research Institute of Texas [Member] | Aravive Biologics [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Unbilled receivable | $ 1,600 | ||||
Assembled Workforce [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life of intangible assets | 3 years | ||||
Discounted Cash Flows [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Right-of-use and leasehold improvement assets, discount rate | 0.095 | 0.095 | |||
Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives | 3 years | ||||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives | 5 years |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense And Other Assets [Abstract] | ||
Preclinical and clinical | $ 870 | $ 531 |
Clinical research organization receivable | 262 | |
Lease receivable | 900 | |
Unbilled receivable from CPRIT | 1,604 | |
Other | 16 | 44 |
Total | $ 1,148 | $ 3,079 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment, net (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,089 | $ 4,116 |
Less: Accumulated depreciation and amortization | (2,559) | (2,308) |
Impairment loss | (1,004) | |
Property and equipment, net | 526 | 1,808 |
Equipment and Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,416 | 1,442 |
Buildings, Leasehold and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,673 | $ 2,674 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Depreciation expense | $ 0.3 | $ 0.4 |
Amortization expense | $ 0.1 | |
Intangible asset useful life | 9 months 18 days |
Balance Sheet Components - Inta
Balance Sheet Components - Intangible Asset, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 97 | $ 219 |
Assembled Workforce [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 366 | 366 |
Less: Accumulated amortization | (269) | (147) |
Intangible asset, net | $ 97 | $ 219 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Payroll and related | $ 1,052 | $ 1,248 |
Preclinical and clinical | 707 | 5 |
Professional services | 169 | 32 |
Other | 395 | 212 |
Total | $ 2,323 | $ 1,497 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - Money market funds [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 49,207 | $ 63,691 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 49,207 | $ 63,691 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfers within the hierarchy | $ 0 | $ 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment charge of right-of-use and leasehold improvement assets | $ 5,800,000 |
Collaboration and License Agr_2
Collaboration and License Agreement - Additional Information (Detail) - USD ($) | Nov. 06, 2020 | Dec. 31, 2020 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration and license agreement date | Nov. 6, 2020 | |
Collaborative arrangement, rights and obligations | The Company will also be entitled to receive tiered royalties ranging from low double digits to mid-teens on sales in the Territory, if any, of products containing AVB-500. Royalties are payable with respect to each jurisdiction in the Territory until the latest to occur of: (i) the last-to-expire of specified patent rights in such jurisdiction in the Territory; (ii) expiration of marketing or regulatory exclusivity in such jurisdiction in the Territory; or (iii) ten (10) years after the first commercial sale of a product in such jurisdiction in the Territory. In addition, royalties payable under the Agreement will be subject to reduction on account of generic competition under certain specified conditions, with any such reductions capped at certain percentages of the amounts otherwise payable during the applicable royalty payment period. | |
Transaction Price | $ 12,000,000 | |
Research and development services performance obligation | 6,400,000 | |
Intellectual property obligation | 5,600,000 | |
Assessed clinical or regulatory milestones | $ 0 | |
3D Medicines [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Revenue recognized | 5,600,000 | |
Revenue from research and development services | 100,000 | |
Contract Liability | 6,300,000 | |
Contract Liability, current | 2,600 | |
Contract Liability, long-term | $ 3,700 | |
Service period for future research and development services expected to occur | 2 years 6 months | |
3D Medicines [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaborative agreement milestone cash payment | 12,000,000 | |
Proceeds from Collaborators | $ 12,000,000 | |
3D Medicines [Member] | Maximum [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Clinical development, regulatory and commercial milestone payments | $ 207,000,000 | |
Stanford University [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaborative agreement milestone cash payment due | $ 132,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | Aug. 31, 2020USD ($)ft² | Oct. 31, 2018ft² | Aug. 01, 2018USD ($) | Mar. 31, 2017ft²Lease | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jan. 01, 2019USD ($) |
Lessee Lease Description [Line Items] | |||||||||
Derecognized build-to-suit lease asset. | $ 8,600,000 | ||||||||
Derecognized build-to-suit lease obligation. | 7,300,000 | ||||||||
Accumulated deficit | $ (500,654,000) | $ (470,111,000) | 1,300,000 | ||||||
Operating lease right-of-use assets | 2,958,000 | 8,697,000 | 10,400,000 | ||||||
leasehold improvement assets | $ 500,000 | $ 500,000 | 2,200,000 | ||||||
Operating lease obligation | 8,517,000 | 12,600,000 | |||||||
Derecognized deferred rent | $ 100,000 | ||||||||
Number of lease renewal option | Lease | 1 | ||||||||
Cash paid for measurement of lease obligations for operating cash flows from operating leases | 2,300,000 | 2,700,000 | |||||||
Rent expense | 2,100,000 | 2,500,000 | |||||||
Short term and variable lease cost | $ 500,000 | 500,000 | |||||||
Weighted average remaining lease term | 3 years 10 months 24 days | ||||||||
Weighted average discount rate | 7.62% | ||||||||
Write-off lease receivable/prepaid commission assets | $ 1,383,000 | ||||||||
1020 Marsh Road, Menlo Park, California [Member] | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Operating facility lease area | ft² | 34,500 | ||||||||
Lease commencement date | 2017-08 | ||||||||
Operating facility lease term | 87 months | ||||||||
Lease agreement, one renewal option term | 5 years | ||||||||
1020 Marsh Road, Menlo Park, California [Member] | Sublease Agreement [Member] | EVA Automation, Inc [Member] | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Operating facility lease term | 72 months | ||||||||
Operating lease abatement term | 5 months | ||||||||
Sublease commencement date | Oct. 1, 2018 | ||||||||
Abatement of base rent lease payment | $ 900,000 | ||||||||
Write-off lease receivable/prepaid commission assets | 1,400,000 | ||||||||
Operating lease sublease income (loss) | (13,000) | 2,500 | |||||||
Cash received from sublease | $ 1,200,000 | $ 2,300,000 | |||||||
2479 E. Bayshore Blvd, Palo Alto, California [Member] | Sublease Agreement [Member] | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Operating facility lease area | ft² | 4,240 | ||||||||
Lease commencement date | 2018-10 | ||||||||
Lease expires date | Aug. 31, 2020 | ||||||||
North Carolina [Member] | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Operating facility lease area | ft² | 4,128 | ||||||||
Operating facility lease term | 63 months | ||||||||
Operating lease abatement term | 3 months | ||||||||
Cash paid for measurement of lease obligations for operating cash flows from operating leases | $ 9,000 |
Leases - Summary of Minimum Lea
Leases - Summary of Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2019 |
Leases [Abstract] | ||
2021 | $ 2,506 | |
2022 | 2,983 | |
2023 | 3,067 | |
2024 | 2,643 | |
2025 | 116 | |
Thereafter | 30 | |
Total future minimum lease payments | 11,345 | |
Less: discount | (2,828) | |
Operating lease obligation | $ 8,517 | $ 12,600 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Feb. 28, 2021 | |
Loss Contingencies [Line Items] | ||
Pending or threatened legal proceedings | $ 0 | |
Percentage of contingent cash payment with remainder on future milestone payments | 7.50% | |
Contingent Payable | $ 300,000 | |
3D Medicines [Member] | ||
Loss Contingencies [Line Items] | ||
Contingent payable gross | 700,000 | |
Contingent paid amount | $ 400,000 | |
3D Medicines [Member] | Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Contingent payable pending amount | $ 300,000 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Proceeds from future licensing transaction percentage | 10.00% |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | Apr. 08, 2020 | Dec. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 04, 2020 |
Class Of Stock [Line Items] | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||
Voting power per share | One | ||||||
Common stock, dividends declared | $ 0 | ||||||
Common stock shares issued | 3,633,334 | ||||||
Net proceeds from issuance of common stock | $ 25,100,000 | 2,266,000 | $ 25,127,000 | ||||
Common stock shares issued, value | 25,128,000 | ||||||
Net Issuance costs | $ 94,000 | $ 351,000 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Private Placement [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common stock shares issued, value | $ 4,922,000 | ||||||
Net Issuance costs | $ 78,000 | ||||||
Private Placement [Member] | Investment Agreement [Member] | Eshelman Ventures [Member] | Unregistered Common Stock [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common stock shares issued | 931,098 | ||||||
Common stock shares issued, value | $ 5,000,000 | ||||||
Net Issuance costs | $ 78,000 | ||||||
At The Market Offering Program [Member] | Piper Sandler & Co and Cantor Fitzgerald & Co [Member] | Equity Distribution Agreement [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, par value | $ 0.0001 | ||||||
Number of shares sold | 377,400 | ||||||
Proceeds from shares sold net of discounts and offering costs | $ 2,300,000 | ||||||
At The Market Offering Program [Member] | Piper Sandler & Co and Cantor Fitzgerald & Co [Member] | Equity Distribution Agreement [Member] | Maximum [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate offering price | $ 60,000,000 | ||||||
Board of Director [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common stock shares issued | 133,333 | ||||||
Common stock shares issued, value | $ 1,000,000 |
Common Stock - Summary of Reser
Common Stock - Summary of Reserved Shares of Common Stock for Future Issuances (Detail) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 3,774,712 | 3,253,969 |
Stock Compensation Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 1,600,703 | 1,391,697 |
Options to purchase common stock [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 2,173,776 | 1,820,160 |
Restricted Stock Units [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Capital Shares Reserved for Future Issuance | 233 | 42,112 |
Stock Based Awards - Additional
Stock Based Awards - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 20, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Intrinsic value of stock option exercised | $ 600,000 | $ 400,000 | ||
Number of shares reserved | 3,774,712 | 3,253,969 | ||
Common stock, voting rights | One | |||
Employee Stock Purchase Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of common stock issued and outstanding increase annually | 1.00% | |||
Number of shares reserved | 2,500 | |||
End date of automatic annual increase of shares reserved for issuance | Jan. 1, 2024 | |||
Additional shares issued | 50,000 | |||
Common stock, voting rights | Immediately after the grant would own stock possessing 5% or more of the total combined voting power or value of our common stock. | |||
Percentage of stock possessing | 5.00% | |||
Rights to purchase stock that remains outstanding | $ 25,000 | |||
Offerings of purchase periods | 27 months | |||
Maximum employee subscription rate | 15.00% | 15.00% | ||
Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of purchase price common stock | 85.00% | 85.00% | ||
Employee Stock Option [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 4 years | 4 years | ||
Stock options, weighted-average grant date fair value | $ 7.69 | $ 4.69 | ||
Tax benefits realized from options and other share-based payment arrangements | $ 0 | $ 0 | ||
Weighted-average remaining vesting period | 2 years 8 months 12 days | |||
Unrecognized employee stock-based compensation | $ 2,900,000 | |||
Incremental compensation costs | $ 400,000 | |||
2019 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 1,600,703 | |||
Percentage of common stock issued and outstanding increase annually | 4.50% | |||
Equity awards, expiration date | Jan. 1, 2029 | |||
Equity incentive plan modification, description | The 2019 Plan is a successor to and continuation of all prior plans including the Company’s 2014 Equity Incentive Plan and Aravive Biologics 2017 Equity Incentive Plan and the 2010 Equity Incentive Plan, as amended (Prior Plans). |
Stock Based Awards - Summary of
Stock Based Awards - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares | ||
Number of Shares, Beginning balance | 1,820,160 | 1,515,923 |
Number of Shares, Options granted | 799,460 | 483,328 |
Number of Shares, Options exercised | (114,515) | (39,686) |
Number of Shares, Options cancelled | (331,329) | (139,405) |
Number of Shares, Ending balance | 2,173,776 | 1,820,160 |
Number of Shares, Vested and expected to vest | 2,074,651 | |
Number of Shares, Exercisable | 1,593,995 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Beginning balance | $ 10.70 | $ 18.65 |
Weighted Average Exercise Price, Options granted | 9.19 | 5.55 |
Weighted Average Exercise Price, Options exercised | 2.76 | 2.40 |
Weighted Average Exercise Price, Options cancelled | 17.07 | 81.33 |
Weighted Average Exercise Price, Ending balance | 9.59 | $ 10.70 |
Weighted Average Exercise Price, Vested and expected to vest | 9.68 | |
Weighted Average Exercise Price, Exercisable | $ 10.32 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life (in years) | 5 years 9 months 18 days | |
Weighted Average Remaining Contractual Life, Vested and expected to vest | 5 years 7 months 6 days | |
Weighted Average Remaining Contractual Life, Exercisable | 4 years 7 months 6 days | |
Aggregate Intrinsic Value, Options outstanding | $ 5,905 | |
Aggregate Intrinsic Value, Vested and expected to vest | 5,891 | |
Aggregate Intrinsic Value, Exercisable | $ 5,816 |
Stock Based Awards - Summary _2
Stock Based Awards - Summary of Fair Value of Employee Stock Options (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 112.00% | 111.00% |
Risk-free interest rate | 1.00% | 2.40% |
Dividend yield | 0.00% | 0.00% |
Expected life (in years) | 6 years | 6 years |
Stock Based Awards - Schedule o
Stock Based Awards - Schedule of Estimated Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,966 | $ 3,399 |
Research and development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 536 | 347 |
General and administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,430 | $ 3,052 |
Income Taxes - Summary of Statu
Income Taxes - Summary of Statutory Federal Tax Rate to Income or Loss before Taxes (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal tax benefit at statutory rate | 21.00% | 21.00% |
Change in valuation allowance | (12.00%) | (23.00%) |
Other non-deductible expenses | (1.00%) | (1.00%) |
Stock based compensation | (8.00%) | (7.00%) |
ASC 842 lease accounting | 10.00% | |
Total | 0.00% | 0.00% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carry forwards | $ 10,988 | $ 5,869 |
Research and development tax credits | 90 | 90 |
Stock based compensation and other | 2,860 | 5,099 |
Operating lease obligation | 1,789 | 2,149 |
Total deferred tax assets | 15,727 | 13,207 |
Less: Valuation allowance | (15,106) | (11,326) |
Deferred tax liabilities | (55) | |
Operating lease right-of-use assets | $ (621) | $ (1,826) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Increase (decrease) in valuation allowance | $ 3.8 | $ 4,300,000 | |
Total gross deferred tax assets | 15,727,000 | 13,207,000 | |
Unrecognized tax benefits | 39,000 | $ 39,000 | $ 72,000 |
Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 52,300,000 | ||
Net operating loss carryforwards not subject to expiration | 47,500,000 | ||
Net operating loss carryforwards subject to expire | $ 4,800,000 | ||
Operating loss carryforwards, expiration | Begin to expire in 2037 | ||
Federal [Member] | Research and Development Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax credits | $ 90,000 | ||
Tax credit, expiration | Begin to expire in 2037 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Amount of Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Beginning Balance | $ 72 |
Gross increase/ (decrease) related to prior year tax positions | (72) |
Gross increase related to current year positions | 39 |
Ending Balance | $ 39 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Employer contributions | $ 15,000 | $ 0 |
Net Loss per Share of Common _3
Net Loss per Share of Common Stock - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders- basic and diluted | $ (30,543) | $ (18,218) |
Net loss per share- basic and diluted | $ (1.93) | $ (1.57) |
Weighted-average common shares used to compute net loss per share- basic and diluted | 15,790 | 11,589 |
Net Loss per Share of Common _4
Net Loss per Share of Common Stock - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Number of dilutive common stock equivalents | 0 | 0 |
Net Loss per Share of Common _5
Net Loss per Share of Common Stock - Summary of Potentially Anti-dilutive Securities Excluded from Computation of Diluted Shares Outstanding (Detail) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Options to purchase common stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially Anti-dilutive securities excluded from computation of diluted shares outstanding | 2,173,776 | 1,820,160 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially Anti-dilutive securities excluded from computation of diluted shares outstanding | 233 | 42,112 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 18, 2021 | Feb. 12, 2021 | Dec. 31, 2019 | Feb. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||||
Sale of common stock shares | 3,633,334 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 25,100 | $ 2,266 | $ 25,127 | |||
Subsequent Event [Member] | Equity Distribution Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Sale of common stock shares | 197,949 | |||||
Proceeds from issuance of common stock, net of issuance costs | $ 1,600 | |||||
Subsequent Event [Member] | Purchase Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Sale of common stock shares | 2,875,000 | |||||
Sale of stock price per share | $ 7.29 | |||||
Gross proceeds from issuance of common stock | $ 21,000 |