Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 12, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | ATRECA, INC. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001532346 | |
Amendment Flag | false | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | BCEL | |
Security Exchange Name | NASDAQ | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,991,270 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,715,441 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 133,072 | $ 157,954 |
Investments | 126,192 | 14,663 |
Prepaid expenses and other current assets | 4,898 | 3,502 |
Total current assets | 264,162 | 176,119 |
Property and equipment, net | 7,783 | 5,771 |
Long-term investments | 205 | 10,799 |
Deposits and other | 3,043 | 3,026 |
Total assets | 275,193 | 195,715 |
Current Liabilities | ||
Accounts payable | 2,524 | 2,133 |
Accrued expenses | 5,309 | 5,395 |
Other current liabilities | 1,442 | 419 |
Total current liabilities | 9,275 | 7,947 |
Capital lease obligations, net of current portion | 17 | 53 |
Deferred rent | 4,621 | 763 |
Total liabilities | 13,913 | 8,763 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Additional paid-in capital | 488,593 | 351,039 |
Accumulated other comprehensive income | 117 | 16 |
Accumulated deficit | (227,434) | (164,106) |
Total stockholders’ equity | 261,280 | 186,952 |
Total liabilities and stockholders’ equity | 275,193 | 195,715 |
Class A common stock | ||
Stockholders’ equity | ||
Common stock | 3 | 2 |
Class B common stock | ||
Stockholders’ equity | ||
Common stock | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Class A common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 650,000,000 | 650,000,000 |
Common stock, shares issued | 29,977,408 | 22,035,976 |
Common stock, shares outstanding | 29,977,408 | 22,035,976 |
Class B common stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 6,715,441 | 5,934,191 |
Common stock, shares outstanding | 6,715,441 | 5,934,191 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Expenses | ||||
Research and development | $ 16,808 | $ 12,812 | $ 45,198 | $ 40,447 |
General and administrative | 6,614 | 4,864 | 20,195 | 10,919 |
Total expenses | 23,422 | 17,676 | 65,393 | 51,366 |
Interest and other income (expense) | ||||
Other income | 353 | 619 | 987 | 1,805 |
Interest income | 142 | 1,189 | 1,082 | 2,328 |
Interest expense | (1) | (1) | (3) | (5) |
Preferred stock warrant liability revaluation | (123) | |||
Foreign exchange loss | (1) | (1) | ||
Loss on disposal of property and equipment | (7) | |||
Loss before income tax expense | (22,928) | (15,870) | (63,327) | (47,369) |
Income tax expense | (1) | (1) | (1) | (2) |
Net loss | $ (22,929) | $ (15,871) | $ (63,328) | $ (47,371) |
Net loss per share, basic and diluted | $ (0.66) | $ (0.57) | $ (2.09) | $ (4.03) |
Weighted-average shares used in computing net loss per share, basic and diluted | 34,723,888 | 27,949,682 | 30,313,047 | 11,747,825 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (22,929) | $ (15,871) | $ (63,328) | $ (47,371) |
Other comprehensive income (loss); | ||||
Unrealized gain (loss) on fair value of investments | (99) | (41) | 101 | 48 |
Unrealized loss on currency translation | (2) | (1) | ||
Comprehensive loss | $ (23,028) | $ (15,914) | $ (63,227) | $ (47,324) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Balances at beginning at Dec. 31, 2018 | $ 209,668 | |||||
Balances at beginning (in shares) at Dec. 31, 2018 | 17,248,259 | |||||
Balances at beginning at Dec. 31, 2018 | $ 3,593 | $ (4) | $ (96,622) | $ (93,033) | ||
Balances at beginning (in shares) at Dec. 31, 2018 | 2,119,872 | |||||
Conversion of convertible preferred stock | $ (209,668) | 209,669 | ||||
Conversion of convertible preferred stock (in shares) | (17,248,259) | |||||
Conversion of convertible preferred stock | $ 2 | 209,666 | 209,668 | |||
Conversion of convertible preferred stock (in shares) | 17,248,259 | |||||
Issuance of common stock upon initial public offering, net | $ 1 | 130,785 | 130,786 | |||
Issuance of common stock upon initial public offering, net (in shares) | 8,452,500 | |||||
Exercise of warrants (in shares) | 62,936 | |||||
Issuance of common stock upon exercise of options | 241 | 241 | ||||
Issuance of common stock upon exercise of options (in shares) | 67,244 | |||||
Vesting of early exercised stock options | 8 | 8 | ||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 503 | 503 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 133 | 133 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 9,232 | |||||
Stock-based compensation | 4,013 | 4,013 | ||||
Unrealized gain (loss) on fair value of investments | 48 | 48 | ||||
Unrealized currency exchange loss | (1) | (1) | ||||
Net loss | (47,371) | (47,371) | ||||
Balances at end at Sep. 30, 2019 | $ 3 | 348,942 | 43 | (143,993) | 204,995 | |
Balances at end (in shares) at Sep. 30, 2019 | 27,960,043 | |||||
Balances at beginning at Jun. 30, 2019 | $ 3 | 346,915 | 86 | (128,122) | 218,882 | |
Balances at beginning (in shares) at Jun. 30, 2019 | 27,947,201 | |||||
Issuance of common stock upon exercise of options | 10 | 10 | ||||
Issuance of common stock upon exercise of options (in shares) | 3,610 | |||||
Vesting of early exercised stock options | 6 | 6 | ||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 133 | 133 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 9,232 | |||||
Stock-based compensation | 1,878 | 1,878 | ||||
Unrealized gain (loss) on fair value of investments | (41) | (41) | ||||
Unrealized currency exchange loss | (2) | (2) | ||||
Net loss | (15,871) | (15,871) | ||||
Balances at end at Sep. 30, 2019 | $ 3 | 348,942 | 43 | (143,993) | 204,995 | |
Balances at end (in shares) at Sep. 30, 2019 | 27,960,043 | |||||
Balances at beginning at Dec. 31, 2019 | $ 3 | 351,039 | 16 | (164,106) | 186,952 | |
Balances at beginning (in shares) at Dec. 31, 2019 | 27,970,167 | |||||
Issuance of common stock upon initial public offering, net | $ 1 | 126,054 | 126,055 | |||
Issuance of common stock upon initial public offering, net (in shares) | 8,423,375 | |||||
Issuance of common stock upon exercise of options | 1,131 | 1,131 | ||||
Issuance of common stock upon exercise of options (in shares) | 223,143 | |||||
Vesting of early exercised stock options | 4 | 4 | ||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 500 | |||||
Issuance of common stock under the Employee Stock Purchase Plan | 1,012 | 1,012 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 76,164 | |||||
Stock-based compensation | 9,353 | 9,353 | ||||
Unrealized gain (loss) on fair value of investments | 101 | 101 | ||||
Net loss | (63,328) | (63,328) | ||||
Balances at end at Sep. 30, 2020 | $ 4 | 488,593 | 117 | (227,434) | 261,280 | |
Balances at end (in shares) at Sep. 30, 2020 | 36,692,849 | |||||
Balances at beginning at Jun. 30, 2020 | $ 3 | 358,401 | 216 | (204,505) | 154,115 | |
Balances at beginning (in shares) at Jun. 30, 2020 | 28,192,733 | |||||
Issuance of common stock upon initial public offering, net | $ 1 | 126,054 | 126,055 | |||
Issuance of common stock upon initial public offering, net (in shares) | 8,423,375 | |||||
Issuance of common stock upon exercise of options | 172 | 172 | ||||
Issuance of common stock upon exercise of options (in shares) | 37,133 | |||||
Issuance of common stock under the Employee Stock Purchase Plan | 479 | 479 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 39,608 | |||||
Stock-based compensation | 3,487 | 3,487 | ||||
Unrealized gain (loss) on fair value of investments | (99) | (99) | ||||
Net loss | (22,929) | (22,929) | ||||
Balances at end at Sep. 30, 2020 | $ 4 | $ 488,593 | $ 117 | $ (227,434) | $ 261,280 | |
Balances at end (in shares) at Sep. 30, 2020 | 36,692,849 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net loss | $ (63,328) | $ (47,371) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,805 | 1,218 |
Loss on disposal of property and equipment | 7 | |
Stock-based compensation | 9,353 | 4,013 |
Preferred stock warrant liability revaluation | 123 | |
Accretion of discount on investments | (63) | (686) |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (1,170) | (2,714) |
Accounts payable | 38 | 1,450 |
Accrued expenses | (93) | 1,511 |
Other current liabilities | 932 | (11) |
Deferred rent | 3,952 | 141 |
Net cash used in operating activities | (48,574) | (42,319) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (3,726) | (1,822) |
Purchase of investments | (163,881) | (84,160) |
Proceeds from maturities of investments | 63,110 | 50,000 |
Change in deposits | 127 | 92 |
Net cash used in investing activities | (104,370) | (35,890) |
Cash Flows from Financing Activities | ||
Proceeds from the issuance of common stock under the Employee Stock Purchase Plan | 1,012 | 133 |
Proceeds from exercise of stock options | 1,131 | 249 |
Proceeds from public offering, net | 126,688 | 133,633 |
Principal payments on capital lease obligations | (35) | (36) |
Payments of initial offering costs | (364) | (2,848) |
Net cash provided by financing activities | 128,432 | 131,131 |
Net change in cash, cash equivalents and restricted cash | (24,512) | 52,922 |
Cash, cash equivalents and restricted cash, beginning of period | 159,236 | 114,504 |
Cash, cash equivalents and restricted cash, end of period | 134,724 | 167,426 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest | 3 | 5 |
Cash paid for income taxes | 1 | 1 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Costs related to public offering included in accounts payable and accrued liabilities | 269 | |
Conversion of redeemable convertible preferred stock to common stock | 209,669 | |
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | 503 | |
Vesting of early exercised common stock options | 4 | $ 8 |
Purchases of property and equipment included in accounts payable and accrued liabilities | $ 91 |
Business
Business | 9 Months Ended |
Sep. 30, 2020 | |
Business | |
Business | 1. Business Nature of Business Atreca, Inc. (the “Company”) was incorporated in the State of Delaware on June 11, 2010 (“inception date”), and is located in South San Francisco, California. In April 2016, the Company formed a wholly owned subsidiary, Atreca Pte. Ltd., in Singapore. 2020 Common Stock Offering In July 2020, the Company closed its follow-on stock offering of 7,642,125 shares of its Class A common stock and 781,250 shares of its Class B common stock at an offering price of $16.00 per share, including 610,875 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s Class A common stock. The Company received net proceeds of $126.1 million, after deducting underwriting discounts and commissions of $8.1 million and offering expenses of $0.6 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and accounts have been eliminated. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019 Form 10-K”). Prior period reclassification An immaterial reclassification of prior period amounts has been made to conform to the current period presentation. Principles of Consolidation The condensed consolidated financial statements include accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions are eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of income and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates in the consolidated financial statements include estimated useful lives of property and equipment, impairment of long-lived assets, accrued expenses, valuation of deferred income tax assets, fair value of warrants issued to purchasers of shares of preferred stock and common stock and fair value of options granted under the Company's stock option plan. Unaudited Interim Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements are unaudited. The unaudited interim condensed financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair statement of the Company’s financial position as of September 30, 2020 and its results of operations and cash flows for the three and nine months ended September 30, 2020 and 2019. The financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three-month and nine-month periods are also unaudited. The condensed results of operations for the three months and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited consolidated financial statements as of that date. Collaborations Historically, we have entered into a number of discovery collaborations as we developed our discovery platform. These collaborations have generally focused on identifying novel antibodies in areas of significant unmet medical need. In July 2020, the Company entered into a Collaboration and License Agreement with Xencor, Inc. (“Xencor Agreement”), to research, develop and commercialize novel CD3 bispecific antibodies as potential therapeutics in oncology. Under the Xencor Agreement, the Company and Xencor, Inc. will engage in a three-year research program in which the Company will provide antibodies against novel tumor targets through its discovery platform from which Xencor, Inc. will engineer XmAb bispecific antibodies that also bind to the CD3 receptor on T cells. Up to two joint programs are eligible to be mutually selected for further development and commercialization, with each partner sharing 50% of costs and profits. Each company has the option to lead development, regulatory and commercialization activities for one of the joint programs. In addition, the Xencor Agreement allows each partner the option to pursue up to two programs independently, with a mid-to high-single digit percent royalty payable on net sales to the other partner. For the cost-sharing related to the research program, the Company will follow the presentation and disclosure guidance of Accounting Standard Codification (“ASC”) 808 Collaboration Agreements . As of September 30, 2020, the Company had $110,000 of receivable under the research cost-sharing provision recorded in prepaid and other current assets on the accompanying balance sheet. The Company evaluated the Xencor Agreement under the provisions of Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and all related amendments (collectively, “ASC 606”). The Company concluded that Xencor, Inc. is not a customer as there are no distinct units of account that are reflective of a vendor-customer relationship or exchange of consideration for the research activities. Other Income Other income is comprised of amounts earned from services performed under service agreements. Beginning January 1, 2018, the Company follows the provisions of Accounting Standards Update 2014-09 ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The guidance provides a unified model to determine how income is recognized. In determining the appropriate amount of other income to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identifies the promised goods or services in the contract; (ii) determines whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measures the transaction price, including the constraint on variable consideration; (iv) allocates the transaction price to the performance obligations based on estimated selling prices; and (v) recognizes other income when (or as) the Company satisfies each performance obligation. Upon adoption of Topic 606, there was no change to the units of accounting previously identified with respect to existing service agreements under legacy Generally Accepted Accounting Principles (“GAAP”), which are now considered performance obligations under Topic 606, and there was no change to the revenue recognition pattern for the performance obligations. Accordingly, the adoption of the new standard resulted in no cumulative effect change to the Company's opening accumulated deficit balance. The Company generally allocates the transaction price to distinct performance obligations at their stand-alone selling prices, determined by their estimated costs plus some margin. Performance obligations are generally delivered over time and recognized based upon observable inputs as the related research services are performed, which are recorded as research and development expenses. Amounts due under service agreements are generally billed monthly as services are delivered and do not generally result in contract liabilities or assets. Receivables under service agreements of $1,000 and $237,000 are included in prepaid expenses and other current assets as of September 30, 2020 and December 31, 2019, respectively Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all cash balances and highly liquid investments purchased with an original maturity of three months or less. The Company maintained restricted cash of $1.7 million and $1.3 million as of September 30, 2020 and December 31, 2019, respectively. This amount is included in deposits and other in the accompanying condensed consolidated balance sheets and is comprised solely of letters of credit required pursuant to leases for Company facilities. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows. September 30, December 31, 2020 2019 Cash and cash equivalents $ 133,072 $ 157,954 Restricted cash 1,652 1,282 Cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 134,724 $ 159,236 Investments The Company considers securities purchased with original maturities greater than three months to be investments. The Company’s policy is to protect the value of its investment portfolio and minimize principal risk by earning returns based on current interest rates. The Company’s intent is to convert all investments into cash to be used for operations and has classified them as available for sale. For purposes of determining realized gains and losses, the cost of securities sold is based on specific identification. Interest and dividends on securities classified as available-for-sale are included in interest income. Convertible Preferred Stock Warrants The Company issued convertible preferred stock warrants, which were exercisable into Series A preferred stock with liquidation preference. The conversion feature was evaluated under ASC Topic 480, Distinguishing liabilities from equity and the warrants were determined to be debt instruments and classified prior to its initial public offering (the “IPO”) as liabilities on the consolidated balance sheets. The Company recorded these warrant liabilities at fair value and adjusted the carrying value to their estimated fair value at each reporting date with the increases or decreases in the fair value recorded as a gain (loss) on revaluation of the warrant liability in the consolidated statements of operations. Upon the IPO, t he 49,997 preferred stock warrants were converted to common stock warrants of Class A shares and the warrant liability of $0.5 million was reclassified to additional paid-in capital as a result of the conversion. The warrants were not subject to further remeasurement for fair value. Risks and Uncertainties The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from similar services and larger companies, volatility of the industry, ability to obtain regulatory clearance, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company and general economic conditions. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents, investments and other receivables. Cash and cash equivalents are held at two financial institutions and were in excess of the Federal Deposit Insurance Corporation insurable limit at September 30, 2020 and December 31, 2019. Additionally, cash and cash equivalents and investments are maintained at brokerage firms for which amounts are insured by the Securities Investor Protection Corporation subject to legal limits. The Company has not experienced any losses on its deposits to date. The Company does not require collateral or other security for other receivables; however, credit risk is mitigated by the Company’s ongoing evaluations of its debtors’ credit worthiness. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist primarily of salaries and benefits, consultant fees, stock-based compensation, certain facility costs, legal costs and other costs associated with preclinical and clinical development. A substantial portion of the Company’s ongoing research and development activities are conducted by third-party service providers in connection with preclinical and clinical development activities and contract manufacturing organizations in connection with the production of materials for clinical trials. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the research or development objectives. Such estimates are subject to change as additional information becomes available. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs. Stock‑Based Compensation The Company generally grants stock options to its employees for a fixed number of shares with an exercise price equal to the fair value of the underlying shares at the date of grant. The Company accounts for stock option grants using the fair value method. The fair value of options is calculated using the Black‑Scholes option pricing model. Stock‑based compensation is recognized as the underlying options vest using the straight‑line attribution approach, and forfeitures are recorded as they occur. Emerging Growth Company Status The Company is an “emerging growth company,” (“EGC”) as defined in the Jumpstart Our Business Startups Act, (“JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs. The Company may take advantage of these exemptions until it is no longer an EGC under Section 107 of the JOBS Act, which provides that an EGC can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards, and as a result of this election, the Company’s condensed consolidated financial statements may not be comparable to companies that comply with public company Financial Accounting Standards Board (“FASB”) standards’ effective dates. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of the IPO or such earlier time that the Company is no longer an EGC. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02 and subsequent amendments to the initial guidance under ASU 2017-13, ASU 2018-10, ASU 2018-11, and ASU 2019-01 (collectively, “Topic 842” ), which modifies the accounting by lessees for all leases with a term greater than 12 months. This standard will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Topic 842 is effective for the Company as of January 1, 2022. Early adoption is permitted. The Company’s most significant lease is its operating lease for its corporate headquarters, and, while the Company has not yet estimated the amounts by which its financial statements will be affected by the adoption of this guidance, it expects that the overall recognition of expense will be similar to current guidance, but that there will be a significant change in the balance sheet due to the recognition of right of use assets and the corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses ( “Topic 326” ): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2020-03 which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables. The amendment replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. For available-for-sale debt securities, credit losses should be recorded through an allowance for credit losses. Topic 326 is effective for the Company as of January 1, 2023. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“Topic 740”) : which simplifies the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company as of January 1, 2021, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance will have a material impact on our consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows: September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds $ 43,608 $ — $ — $ 43,608 U.S. Agency Bonds — 10,719 — 10,719 Certificates of deposit 1,682 — — 1,682 Corporate debt securities — 17,606 — 17,606 U.S. Treasury securities 106,388 — — 106,388 $ 151,678 $ 28,325 $ — $ 180,003 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds $ 152,770 $ — $ — $ 152,770 Certificates of deposit 1,950 — — 1,950 Corporate debt securities — — 3,459 U.S. Treasury securities 20,052 — — 20,052 Total $ 174,772 $ 3,459 $ — $ 178,231 The Company utilized the market approach and Level 1 valuation inputs to value its money market funds and U.S. government treasury securities because published fair market values were readily available. The Company measured the fair value of corporate debt securities and U.S. agency bonds using Level 2 valuation inputs, which are based on quoted prices and market observable data of similar instruments. As of September 30, 2020 and 2019, gross unrealized gains and unrealized losses for cash equivalents and short-term investments were not material, and the contractual maturity of all marketable securities was less than two years. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents and Investments | |
Cash, Cash Equivalents and Investments | 4. Cash, Cash Equivalents and Investments The fair value and the amortized cost of cash, cash equivalents and available-for-sale investments by major security type consist of the following (in thousands): As of September 30, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 123,074 $ — $ — $ 123,074 U.S. Treasury securities 106,303 85 — 106,388 Corporate debt securities 17,584 22 — 17,606 U.S. Agency bonds 10,719 — — 10,719 Certificates of deposit 1,672 10 — 1,682 Total 259,352 117 — 259,469 Less amounts classified as cash and cash equivalents (133,072) — — (133,072) Total available-for-sale investments $ 126,280 $ 117 $ — $ 126,397 As of December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 157,954 $ — $ — $ 157,954 U.S. Treasury securities 20,037 16 — 20,053 Corporate debt securities 3,459 — — 3,459 Certificates of deposit 1,950 — — 1,950 Total 183,400 16 — 183,416 Less amounts classified as cash and cash equivalents (157,954) — — (157,954) Total available-for-sale investments $ 25,446 $ 16 $ — $ 25,462 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expenses and Other Current Assets. | |
Prepaid Expenses and Other Current Assets | 5 . Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): September 30, December 31, 2020 2019 Prepaid insurance $ 2,175 $ 1,265 Vendor prepayments and deposits 970 963 Prepaid rent 1,397 879 Non-trade receivables 120 242 Interest receivables and other current assets 236 153 Total prepaid expenses and other current assets $ 4,898 $ 3,502 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment, net | |
Property and Equipment, net | 6. Property and Equipment, net Property and equipment consists of the following (in thousands): September 30, December 31, 2020 2019 Laboratory equipment $ 11,255 $ 9,355 Furniture and fixtures 242 225 Computer hardware and software 854 785 Leasehold improvements 667 629 Construction in process 1,888 136 14,906 11,130 Less accumulated depreciation and amortization (7,123) (5,359) Total property and equipment, net $ 7,783 $ 5,771 Depreciation expense was $0.6 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and $1.8 million and $1.2 million for the nine months ended September 30, 2020 and 2019, respectively. The net book value of property and equipment under capital leases was $60,000 and $94,000 at September 30, 2020 and December 31, 2019, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): September 30, December 31, 2020 2019 Compensation and related benefits $ 3,692 $ 4,435 Professional fees 262 214 Contract research fees 925 563 Other 430 183 Total accrued expenses $ 5,309 $ 5,395 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company leases its office facilities under non-cancellable operating lease agreements that expire at various dates through April 2033. Under the terms of the leases, the Company is responsible for certain insurance, property taxes and maintenance expenses. The office facilities lease agreements contain scheduled increases over the lease term. The related rent expense is calculated on a straight-line basis with the difference recorded as deferred rent. Rent expense was $2.9 million and $1.1 million for the three months ended September 30, 2020 and 2019, respectively, and $6.7 million and $2.4 million for the nine months ended September 30, 2020 and 2019, respectively. The Company leases certain property and equipment under capital leases. In 2017, the Company financed purchases of $226,000 under a capital lease agreement. Outstanding amounts under the capital lease agreements are generally secured by liens on the related property and equipment. Future minimum lease payments under non-cancelable operating and capital lease agreements consisted of the following at September 30, 2020 (in thousands): Capital Operating Leases Leases Years ending December 31: 2020 (remaining 3 months) $ 13 $ 1,428 2021 51 6,697 2022 4 7,336 2023 — 7,037 2024 — 7,248 Thereafter — 69,091 Total minimum lease payments 68 $ 98,837 Less: amount representing interest (3) Present value of capital lease obligation 65 Less: current portion (48) Non-current portion $ 17 Litigation The Company is not aware of any asserted or unasserted claims against it where it believes that an unfavorable resolution would have an adverse material impact on the operations or financial position of the Company. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2020 | |
Capital Stock | |
Capital Stock | 9. Capital Stock Class A and Class B Common Stock On June 2, 2019 the board of directors of the Company authorized the issuance of 650,000,000 shares of Class A common stock, $0.0001 par value per share, 50,000,000 shares of Class B common stock, $0.0001 par value per share and 300,000,000 shares of preferred stock, $0.0001 par value per share, upon the filing of the Company’s Amended and Restated Certificate of Incorporation in connection with the reverse stock split. Each holder of Class A common stock will be entitled to one vote and each holder of Class B common stock is not entitled to vote except as may be required by law and shall not be entitled to vote on the election of directors at any time. Common Stock Warrant In connection with the issuance of the Company’s Series A preferred stock in August 2015, the Company issued a warrant to purchase an aggregate of 62,936 shares of common stock at $0.0001 per share. The warrant was immediately exercisable and expires, if not exercised, in August 2025. At issuance, the fair value of the warrant was determined to be $41,509, which was recorded as a Series A preferred stock issuance cost and additional paid-in capital. Sales Agreement In August 2020, the Company entered into a sales agreement (“Sales Agreement”) with Cowen and Company, LLC (“Cowen”), pursuant to which the Company may, upon the terms and subject to the conditions set forth therein, issue and sell through Cowen, acting as the Company’s sales agent and/or principal, shares of the Company’s Class A common stock, having an aggregate offering price of up to $100.0 million (the “ATM Shares”). The Company has no obligations to sell any ATM Shares under the Sales Agreement. The issuance and sale of the ATM Shares, if any, is subject to the continued effectiveness of the Company’s shelf registration statement on Form S-3, File No. 333-239652, initially filed with the SEC on July 2, 2020 and declared effective by the SEC on July 10, 2020. The Sales Agreement provides that Cowen will be entitled to compensation for its services in an amount equal to up to 3.0% of gross proceeds for each time we issue and sell ATM Shares under the Sales Agreement. The ATM Shares will be sold based on prevailing market prices at the time of the sale, and, as a result, prices may vary. Unless otherwise terminated earlier, the Sales Agreement continues until all shares available under the Sales Agreement have been sold. As of September 30, 2020, no ATM Shares have been sold under the Sales Agreement. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Sep. 30, 2020 | |
Equity Incentive Plans | |
Equity Incentive Plans | 10. Equity Incentive Plans 2019 Equity Incentive Plan The Company’s board of directors adopted and our stockholders approved our 2019 Equity Incentive Plan, (the “2019 Plan”), on June 2, 2019, and June 7, 2019, respectively. The 2019 Plan became effective on June 19, 2019, and no further grants will be made under the Company’s 2010 Equity Incentive Plan. The purpose of the 2019 Plan, through the grant of stock awards including stock options and other stock-based awards, including restricted stock units (“RSUs”), is to help the Company secure and retain the services of eligible award recipients, provide incentives for such persons to exert maximum efforts for our success and that of the Company’s affiliates, and provide a means by which the eligible recipients may benefit from increases in the value of the Company’s Class A common stock. Under the 2019 Plan, 6,141,842 shares of the Company’s Class A common stock have been reserved for issuance to employees, directors and consultants. Additionally, the number of shares of the Company’s Class A common stock reserved for issuance under the 2019 Plan will automatically increase on January 1 of each year, beginning on January 1, 2020 and continuing through and including January 1, 2029, by 4% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors. Stock option activity under the 2019 Plan and the Company’s 2010 Equity Incentive Plan is as follow: Options Outstanding Weighted- Average Aggregate Weighted- Remaining Intrinsic Number Average Contractual Value of Shares Exercise Price Life (years) (in thousands) Balances, December 31, 2019 3,742,144 $ 9.58 $ 22,910 Granted 1,446,250 21.33 Exercised (223,143) 5.07 Cancelled (44,394) 15.63 Balances, September 30, 2020 4,920,857 $ 13.18 $ 16,009 Vested and expected to vest at September 30, 2020 4,920,857 $ 13.18 $ 16,009 Exerciseable at September 30, 2020 2,312,537 $ 9.07 $ 13,441 Vested at September 30, 2020 1,916,554 $ 9.88 $ 9,948 The weighted‑average grant date fair value of options granted to employees and non‑employees in the nine months ended September 30, 2020 and 2019 was $13.55 and $10.42, respectively. The fair value of each option is estimated on the date of grant using the Black‑Scholes option pricing model, assuming no expected dividends and the following weighted average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected life (in years) 6.01 6.03 5.85 6.02 Volatility 88.5 % 80.5 % 85.6 % % Risk-free interest rate 0.39 % 1.77 % 1.05 % % Expected volatility is based on volatilities of public companies operating in the Company’s industry. The expected life of the options is estimated using the simplified method detailed in SEC Staff Accounting Bulletin No. 107. The simplified method calculates the expected term as the mid-point between the weighted-average time to vesting and the contractual maturity. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. 2019 Employee Stock Purchase Plan The Company’s board of directors adopted the 2019 Employee Stock Purchase Plan, (“ESPP”), on June 2, 2019, and the Company’s stockholders approved the ESPP on June 7, 2019. The ESPP became effective on June 19, 2019. The Company’s board of directors authorized 283,333 shares of Class A common stock to be reserved for future issuance under the ESPP. The number of shares of our Class A common stock reserved for issuance will automatically increase on January 1 of each calendar year, from January 1, 2020 through January 1, 2029, by the lesser of (1) 1% of the total number of shares of our Class A common stock outstanding on December 31 of the preceding calendar year, and (2) 416,666 shares; provided, that prior to the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2). During the three months ended September 30, 2020 and 2019, the expense related to the ESPP was $194,000 and $177,000, respectively. During the nine months ended September 30, 2020 and 2019, the expense related to the ESPP was $525,000 and $177,000, respectively. The fair value of each ESPP is estimated on the date of grant using the Black‑Scholes option pricing model, assuming no expected dividends and the following range of assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.2 - 2.0 Volatility 103.4 - 114.6 % 75.1 - 93.7 % 91.4 - 114.6 % 74.6 - 101.6 % Risk-free interest rate 0.12 - 0.14 % 1.50 - 1.89 % 0.12 - 1.11 % 1.50 - 2.15 % The Company recognized $3.5 million and $1.9 million of stock‑based compensation expense related to the 2019 Plan and ESPP for the three months ended September 30, 2020 and 2019, respectively. The Company recognized $9.4 million and $4.0 million of stock‑based compensation expense related to the 2019 Plan and ESPP for the nine months ended September 30, 2020 and 2019, respectively. The compensation expense is allocated on a departmental basis, based on the classification of the option holder as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 1,628 $ 920 $ 4,490 $ 2,091 General and administrative 1,859 958 4,863 1,922 $ 3,487 $ 1,878 $ 9,353 $ 4,013 No income tax benefits have been recognized in the statements of operations for stock‑based compensation arrangements and no stock‑based compensation costs have been capitalized as property and equipment as of September 30, 2020. Unrecognized compensation expense as of September 30, 2020 totaled $30.5 million related to non‑vested stock options with a remaining weighted-average requisite service period of 2.7 years. |
401(k) Plan
401(k) Plan | 9 Months Ended |
Sep. 30, 2020 | |
Net Loss Per Share | |
401 (k) Plan | 11. 401(k) Plan The Company has a 401(k) plan that qualifies as a deferred compensation arrangement under Section 401 of the Code. Eligible employees may elect to defer a portion of their pretax earnings subject to certain statutory limits. The Company has not made any matching contributions to date. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Loss Per Share | |
Net Loss Per Share | 12. Net Loss Per Share The following outstanding potentially dilutive common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive: Nine Months Ended September 30, 2020 2019 Common stock options 4,920,857 3,690,398 Convertible preferred stock warrants 49,997 49,997 Early exercised stock options — 2,284 4,970,854 3,742,679 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | 13. Income Taxes On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law. GAAP requires recognition of the tax effects of new legislation during the reporting period that includes the enactment date. The CARES Act, includes changes to the tax provisions that benefits business entities, and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses include a five-year net operating loss carryback, suspension of annual deduction limitation of 80% of taxable income from net operating losses generated in a tax year beginning after December 31, 2017, changes in the deductibility of interest, acceleration of alternative minimum tax credit refunds, payroll tax relief, and a technical correction to allow accelerated deductions for qualified improvement property. The CARES Act also provides other non-tax benefits to assist those impacted by the pandemic. The Company has evaluated the impact of the CARES Act and determined there was no material impact to the income tax provision for the quarter. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions | |
Related Party Transactions | 14. The Company recorded other income of $2,000 and $3,000 for the three months ended September 30, 2020 and 2019, respectively, and $187,000 and $486,000 for the nine months ended September 30, 2020 and 2019, respectively, under service contracts with a stockholder. The Company had a receivable from the stockholder at September 30, 2020 and December 31, 2019 of $1,000 and $121,000, respectively. The Company recorded expense of $0.3 million and $0.4 million during the three months ended September 30, 2020 and 2019, respectively, and $1.0 million and $1.1 million for the nine months ended September 30, 2020 and 2019, respectively, related to intellectual property and other legal services performed by a related party. The Company owed $0.2 million and $0.1 million to the related party at September 30, 2020 and December 31, 2019, respectively. The Company recorded expense of $0.4 million and $0.3 million during the three months ended September 30, 2020 and 2019, respectively, and $1.3 million and $2.3 million for the nine months ended September 30, 2020 and 2019, respectively, related to legal services performed by a related party. The Company owed $0.3 million and $0.2 million to the related party at September 30, 2020 and December 31, 2019, respectively. The Company recorded research and development expense of $61,000 and $123,000 during the three months ended September 30, 2020 and 2019, respectively, and $188,000 and $335,000 for the nine months ended September 30, 2020 and 2019, respectively, under consulting agreements with two members of the Company’s board of directors . On August 22, 2019, one of the two members provided the Company with notice of his resignation from the Company’s board of directors. The Company owed $74,000 and $73,000 to the members of the Company’s board of directors at September 30, 2020 and December 31, 2019, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 15. Subsequent Events The Company has evaluated subsequent events that may require adjustments to or disclosure in the unaudited interim condensed consolidated financial statements through November 12, 2020, the date on which the unaudited interim condensed consolidated financial statements were available to be issued. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and accounts have been eliminated. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “2019 Form 10-K”). Prior period reclassification An immaterial reclassification of prior period amounts has been made to conform to the current period presentation. Principles of Consolidation The condensed consolidated financial statements include accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions are eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of income and expenses in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates in the consolidated financial statements include estimated useful lives of property and equipment, impairment of long-lived assets, accrued expenses, valuation of deferred income tax assets, fair value of warrants issued to purchasers of shares of preferred stock and common stock and fair value of options granted under the Company's stock option plan. |
Unaudited Interim Condensed Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements The accompanying condensed consolidated financial statements are unaudited. The unaudited interim condensed financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair statement of the Company’s financial position as of September 30, 2020 and its results of operations and cash flows for the three and nine months ended September 30, 2020 and 2019. The financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three-month and nine-month periods are also unaudited. The condensed results of operations for the three months and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited consolidated financial statements as of that date. Collaborations Historically, we have entered into a number of discovery collaborations as we developed our discovery platform. These collaborations have generally focused on identifying novel antibodies in areas of significant unmet medical need. In July 2020, the Company entered into a Collaboration and License Agreement with Xencor, Inc. (“Xencor Agreement”), to research, develop and commercialize novel CD3 bispecific antibodies as potential therapeutics in oncology. Under the Xencor Agreement, the Company and Xencor, Inc. will engage in a three-year research program in which the Company will provide antibodies against novel tumor targets through its discovery platform from which Xencor, Inc. will engineer XmAb bispecific antibodies that also bind to the CD3 receptor on T cells. Up to two joint programs are eligible to be mutually selected for further development and commercialization, with each partner sharing 50% of costs and profits. Each company has the option to lead development, regulatory and commercialization activities for one of the joint programs. In addition, the Xencor Agreement allows each partner the option to pursue up to two programs independently, with a mid-to high-single digit percent royalty payable on net sales to the other partner. For the cost-sharing related to the research program, the Company will follow the presentation and disclosure guidance of Accounting Standard Codification (“ASC”) 808 Collaboration Agreements . As of September 30, 2020, the Company had $110,000 of receivable under the research cost-sharing provision recorded in prepaid and other current assets on the accompanying balance sheet. The Company evaluated the Xencor Agreement under the provisions of Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and all related amendments (collectively, “ASC 606”). The Company concluded that Xencor, Inc. is not a customer as there are no distinct units of account that are reflective of a vendor-customer relationship or exchange of consideration for the research activities. |
Collaboration | Collaborations Historically, we have entered into a number of discovery collaborations as we developed our discovery platform. These collaborations have generally focused on identifying novel antibodies in areas of significant unmet medical need. In July 2020, the Company entered into a Collaboration and License Agreement with Xencor, Inc. (“Xencor Agreement”), to research, develop and commercialize novel CD3 bispecific antibodies as potential therapeutics in oncology. Under the Xencor Agreement, the Company and Xencor, Inc. will engage in a three-year research program in which the Company will provide antibodies against novel tumor targets through its discovery platform from which Xencor, Inc. will engineer XmAb bispecific antibodies that also bind to the CD3 receptor on T cells. Up to two joint programs are eligible to be mutually selected for further development and commercialization, with each partner sharing 50% of costs and profits. Each company has the option to lead development, regulatory and commercialization activities for one of the joint programs. In addition, the Xencor Agreement allows each partner the option to pursue up to two programs independently, with a mid-to high-single digit percent royalty payable on net sales to the other partner. For the cost-sharing related to the research program, the Company will follow the presentation and disclosure guidance of Accounting Standard Codification (“ASC”) 808 Collaboration Agreements . As of September 30, 2020, the Company had $110,000 of receivable under the research cost-sharing provision recorded in prepaid and other current assets on the accompanying balance sheet. The Company evaluated the Xencor Agreement under the provisions of Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and all related amendments (collectively, “ASC 606”). The Company concluded that Xencor, Inc. is not a customer as there are no distinct units of account that are reflective of a vendor-customer relationship or exchange of consideration for the research activities. |
Other Income | Other Income Other income is comprised of amounts earned from services performed under service agreements. Beginning January 1, 2018, the Company follows the provisions of Accounting Standards Update 2014-09 ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The guidance provides a unified model to determine how income is recognized. In determining the appropriate amount of other income to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identifies the promised goods or services in the contract; (ii) determines whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measures the transaction price, including the constraint on variable consideration; (iv) allocates the transaction price to the performance obligations based on estimated selling prices; and (v) recognizes other income when (or as) the Company satisfies each performance obligation. Upon adoption of Topic 606, there was no change to the units of accounting previously identified with respect to existing service agreements under legacy Generally Accepted Accounting Principles (“GAAP”), which are now considered performance obligations under Topic 606, and there was no change to the revenue recognition pattern for the performance obligations. Accordingly, the adoption of the new standard resulted in no cumulative effect change to the Company's opening accumulated deficit balance. The Company generally allocates the transaction price to distinct performance obligations at their stand-alone selling prices, determined by their estimated costs plus some margin. Performance obligations are generally delivered over time and recognized based upon observable inputs as the related research services are performed, which are recorded as research and development expenses. Amounts due under service agreements are generally billed monthly as services are delivered and do not generally result in contract liabilities or assets. Receivables under service agreements of $1,000 and $237,000 are included in prepaid expenses and other current assets as of September 30, 2020 and December 31, 2019, respectively |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all cash balances and highly liquid investments purchased with an original maturity of three months or less. The Company maintained restricted cash of $1.7 million and $1.3 million as of September 30, 2020 and December 31, 2019, respectively. This amount is included in deposits and other in the accompanying condensed consolidated balance sheets and is comprised solely of letters of credit required pursuant to leases for Company facilities. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows. September 30, December 31, 2020 2019 Cash and cash equivalents $ 133,072 $ 157,954 Restricted cash 1,652 1,282 Cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 134,724 $ 159,236 |
Investments | Investments The Company considers securities purchased with original maturities greater than three months to be investments. The Company’s policy is to protect the value of its investment portfolio and minimize principal risk by earning returns based on current interest rates. The Company’s intent is to convert all investments into cash to be used for operations and has classified them as available for sale. For purposes of determining realized gains and losses, the cost of securities sold is based on specific identification. Interest and dividends on securities classified as available-for-sale are included in interest income. Convertible Preferred Stock Warrants The Company issued convertible preferred stock warrants, which were exercisable into Series A preferred stock with liquidation preference. The conversion feature was evaluated under ASC Topic 480, Distinguishing liabilities from equity and the warrants were determined to be debt instruments and classified prior to its initial public offering (the “IPO”) as liabilities on the consolidated balance sheets. The Company recorded these warrant liabilities at fair value and adjusted the carrying value to their estimated fair value at each reporting date with the increases or decreases in the fair value recorded as a gain (loss) on revaluation of the warrant liability in the consolidated statements of operations. Upon the IPO, t he 49,997 preferred stock warrants were converted to common stock warrants of Class A shares and the warrant liability of $0.5 million was reclassified to additional paid-in capital as a result of the conversion. The warrants were not subject to further remeasurement for fair value. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to a number of risks associated with companies at a similar stage, including dependence on key individuals, competition from similar services and larger companies, volatility of the industry, ability to obtain regulatory clearance, ability to obtain adequate financing to support growth, the ability to attract and retain additional qualified personnel to manage the anticipated growth of the Company and general economic conditions. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents, investments and other receivables. Cash and cash equivalents are held at two financial institutions and were in excess of the Federal Deposit Insurance Corporation insurable limit at September 30, 2020 and December 31, 2019. Additionally, cash and cash equivalents and investments are maintained at brokerage firms for which amounts are insured by the Securities Investor Protection Corporation subject to legal limits. The Company has not experienced any losses on its deposits to date. The Company does not require collateral or other security for other receivables; however, credit risk is mitigated by the Company’s ongoing evaluations of its debtors’ credit worthiness. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist primarily of salaries and benefits, consultant fees, stock-based compensation, certain facility costs, legal costs and other costs associated with preclinical and clinical development. A substantial portion of the Company’s ongoing research and development activities are conducted by third-party service providers in connection with preclinical and clinical development activities and contract manufacturing organizations in connection with the production of materials for clinical trials. At the end of the reporting period, the Company compares payments made to third-party service providers to the estimated progress toward completion of the research or development objectives. Such estimates are subject to change as additional information becomes available. Depending on the timing of payments to the service providers and the progress that the Company estimates has been made as a result of the service provided, the Company may record net prepaid or accrued expense relating to these costs. |
Stock Based Compensation | Stock‑Based Compensation The Company generally grants stock options to its employees for a fixed number of shares with an exercise price equal to the fair value of the underlying shares at the date of grant. The Company accounts for stock option grants using the fair value method. The fair value of options is calculated using the Black‑Scholes option pricing model. Stock‑based compensation is recognized as the underlying options vest using the straight‑line attribution approach, and forfeitures are recorded as they occur. |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an “emerging growth company,” (“EGC”) as defined in the Jumpstart Our Business Startups Act, (“JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs. The Company may take advantage of these exemptions until it is no longer an EGC under Section 107 of the JOBS Act, which provides that an EGC can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected to use the extended transition period for complying with new or revised accounting standards, and as a result of this election, the Company’s condensed consolidated financial statements may not be comparable to companies that comply with public company Financial Accounting Standards Board (“FASB”) standards’ effective dates. The Company may take advantage of these exemptions up until the last day of the fiscal year following the fifth anniversary of the IPO or such earlier time that the Company is no longer an EGC. |
Net Loss Per Share | The following outstanding potentially dilutive common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been antidilutive: Nine Months Ended September 30, 2020 2019 Common stock options 4,920,857 3,690,398 Convertible preferred stock warrants 49,997 49,997 Early exercised stock options — 2,284 4,970,854 3,742,679 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016‑02 and subsequent amendments to the initial guidance under ASU 2017-13, ASU 2018-10, ASU 2018-11, and ASU 2019-01 (collectively, “Topic 842” ), which modifies the accounting by lessees for all leases with a term greater than 12 months. This standard will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Topic 842 is effective for the Company as of January 1, 2022. Early adoption is permitted. The Company’s most significant lease is its operating lease for its corporate headquarters, and, while the Company has not yet estimated the amounts by which its financial statements will be affected by the adoption of this guidance, it expects that the overall recognition of expense will be similar to current guidance, but that there will be a significant change in the balance sheet due to the recognition of right of use assets and the corresponding lease liabilities. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses ( “Topic 326” ): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance under ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2020-03 which amends the current approach to estimate credit losses on certain financial assets, including trade and other receivables. The amendment replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. For available-for-sale debt securities, credit losses should be recorded through an allowance for credit losses. Topic 326 is effective for the Company as of January 1, 2023. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“Topic 740”) : which simplifies the accounting for income taxes, eliminates certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company as of January 1, 2021, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance will have a material impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of reconciliation of cash and cash equivalents and restricted cash | September 30, December 31, 2020 2019 Cash and cash equivalents $ 133,072 $ 157,954 Restricted cash 1,652 1,282 Cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 134,724 $ 159,236 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value of Financial Instruments | |
Summary of financial assets and liabilities subject to fair value measurements on a recurring basis | September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds $ 43,608 $ — $ — $ 43,608 U.S. Agency Bonds — 10,719 — 10,719 Certificates of deposit 1,682 — — 1,682 Corporate debt securities — 17,606 — 17,606 U.S. Treasury securities 106,388 — — 106,388 $ 151,678 $ 28,325 $ — $ 180,003 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money market funds $ 152,770 $ — $ — $ 152,770 Certificates of deposit 1,950 — — 1,950 Corporate debt securities — — 3,459 U.S. Treasury securities 20,052 — — 20,052 Total $ 174,772 $ 3,459 $ — $ 178,231 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash, Cash Equivalents and Investments | |
Summary of fair value and the amortized cost of cash, cash equivalents and available-for-sale investments by major security type | As of September 30, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 123,074 $ — $ — $ 123,074 U.S. Treasury securities 106,303 85 — 106,388 Corporate debt securities 17,584 22 — 17,606 U.S. Agency bonds 10,719 — — 10,719 Certificates of deposit 1,672 10 — 1,682 Total 259,352 117 — 259,469 Less amounts classified as cash and cash equivalents (133,072) — — (133,072) Total available-for-sale investments $ 126,280 $ 117 $ — $ 126,397 As of December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cash and cash equivalents and investments Cost Gains Losses Value Cash, cash equivalents and money market funds $ 157,954 $ — $ — $ 157,954 U.S. Treasury securities 20,037 16 — 20,053 Corporate debt securities 3,459 — — 3,459 Certificates of deposit 1,950 — — 1,950 Total 183,400 16 — 183,416 Less amounts classified as cash and cash equivalents (157,954) — — (157,954) Total available-for-sale investments $ 25,446 $ 16 $ — $ 25,462 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expenses and Other Current Assets. | |
Summary of Prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following (in thousands): September 30, December 31, 2020 2019 Prepaid insurance $ 2,175 $ 1,265 Vendor prepayments and deposits 970 963 Prepaid rent 1,397 879 Non-trade receivables 120 242 Interest receivables and other current assets 236 153 Total prepaid expenses and other current assets $ 4,898 $ 3,502 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment, net | |
Summary of property and equipment | Property and equipment consists of the following (in thousands): September 30, December 31, 2020 2019 Laboratory equipment $ 11,255 $ 9,355 Furniture and fixtures 242 225 Computer hardware and software 854 785 Leasehold improvements 667 629 Construction in process 1,888 136 14,906 11,130 Less accumulated depreciation and amortization (7,123) (5,359) Total property and equipment, net $ 7,783 $ 5,771 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses | |
Summary of accrued expenses | Accrued expenses consist of the following (in thousands): September 30, December 31, 2020 2019 Compensation and related benefits $ 3,692 $ 4,435 Professional fees 262 214 Contract research fees 925 563 Other 430 183 Total accrued expenses $ 5,309 $ 5,395 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments under non-cancelable operating and capital lease agreements | Future minimum lease payments under non-cancelable operating and capital lease agreements consisted of the following at September 30, 2020 (in thousands): Capital Operating Leases Leases Years ending December 31: 2020 (remaining 3 months) $ 13 $ 1,428 2021 51 6,697 2022 4 7,336 2023 — 7,037 2024 — 7,248 Thereafter — 69,091 Total minimum lease payments 68 $ 98,837 Less: amount representing interest (3) Present value of capital lease obligation 65 Less: current portion (48) Non-current portion $ 17 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | Options Outstanding Weighted- Average Aggregate Weighted- Remaining Intrinsic Number Average Contractual Value of Shares Exercise Price Life (years) (in thousands) Balances, December 31, 2019 3,742,144 $ 9.58 $ 22,910 Granted 1,446,250 21.33 Exercised (223,143) 5.07 Cancelled (44,394) 15.63 Balances, September 30, 2020 4,920,857 $ 13.18 $ 16,009 Vested and expected to vest at September 30, 2020 4,920,857 $ 13.18 $ 16,009 Exerciseable at September 30, 2020 2,312,537 $ 9.07 $ 13,441 Vested at September 30, 2020 1,916,554 $ 9.88 $ 9,948 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected life (in years) 6.01 6.03 5.85 6.02 Volatility 88.5 % 80.5 % 85.6 % % Risk-free interest rate 0.39 % 1.77 % 1.05 % % |
Schedule of stock-based compensation expense | The compensation expense is allocated on a departmental basis, based on the classification of the option holder as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 1,628 $ 920 $ 4,490 $ 2,091 General and administrative 1,859 958 4,863 1,922 $ 3,487 $ 1,878 $ 9,353 $ 4,013 |
2019 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.2 - 2.0 Volatility 103.4 - 114.6 % 75.1 - 93.7 % 91.4 - 114.6 % 74.6 - 101.6 % Risk-free interest rate 0.12 - 0.14 % 1.50 - 1.89 % 0.12 - 1.11 % 1.50 - 2.15 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Loss Per Share | |
Schedule of Earnings Per Share, Basic and Diluted | Nine Months Ended September 30, 2020 2019 Common stock options 4,920,857 3,690,398 Convertible preferred stock warrants 49,997 49,997 Early exercised stock options — 2,284 4,970,854 3,742,679 |
Business (Details)
Business (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2020USD ($)$ / sharesshares | Sep. 30, 2020segment | Sep. 30, 2019USD ($) | |
Business | |||
Number of Operating Segments | segment | 1 | ||
Underwriting discounts and commissions | $ 8,100 | ||
Conversion of redeemable convertible preferred stock to common stock | $ 209,669 | ||
Deferred offering cost | $ 600 | ||
IPO | |||
Business | |||
Offering price | $ / shares | $ 16 | ||
Proceeds from stock offering, net of underwriting discounts and commissions | $ 126,100 | ||
Class A common stock | IPO | |||
Business | |||
Shares issued | shares | 7,642,125 | ||
Class A common stock | Underwriters option | |||
Business | |||
Shares issued | shares | 610,875 | ||
Class B common stock | IPO | |||
Business | |||
Shares issued | shares | 781,250 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2020 | Feb. 29, 2020 | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Institutionshares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Other Income | |||||||
Expected service period | 18 months | ||||||
Cash and cash equivalents and restricted cash reported within the condensed balance sheets | |||||||
Cash and cash equivalents | $ 133,072,000 | $ 157,954,000 | |||||
Restricted cash | 1,652,000 | 1,282,000 | |||||
Cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 167,426,000 | $ 134,724,000 | $ 167,426,000 | 159,236,000 | $ 114,504,000 | ||
Convertible Preferred Stock Warrants | |||||||
Warrants to purchase (in shares) | shares | 49,997 | ||||||
Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital | $ 133,000 | $ 500,000 | $ 503,000 | ||||
Concentration of credit risk | |||||||
Number of financial institutions holding cash and cash and cash equivalents | Institution | 2 | ||||||
Collaboration and License Agreement, Percentage Of Profits And Costs Sharing | 50.00% | ||||||
Research Cost Sharing Provision Receivable | $ 110,000 | ||||||
Prepaid expenses and other current assets | |||||||
Other Income | |||||||
Receivables under service agreements | 1,000 | 237,000 | |||||
Other current liabilities and other non-current liabilities | |||||||
Other Income | |||||||
Contract liabilities | $ 0 | ||||||
Other current liabilities | |||||||
Other Income | |||||||
Contract liabilities | $ 1,200,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial assets and liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Maximum | ||
Company's financial assets and liabilities subject to fair value measurements on a recurring basis | ||
Contractual maturity of marketable securities (in years) | 2 years | |
Recurring basis | ||
Assets | ||
Total assets | $ 180,003 | $ 178,231 |
Recurring basis | Cash, cash equivalents and money market funds | ||
Assets | ||
Total assets | 43,608 | 152,770 |
Recurring basis | Certificates of deposit | ||
Assets | ||
Total assets | 1,682 | 1,950 |
Recurring basis | Corporate debt securities | ||
Assets | ||
Total assets | 17,606 | 3,459 |
Recurring basis | U.S. Treasury securities | ||
Assets | ||
Total assets | 106,388 | 20,052 |
Recurring basis | U.S. Agency bonds | ||
Assets | ||
Total assets | 10,719 | |
Recurring basis | Level 1 | ||
Assets | ||
Total assets | 151,678 | 174,772 |
Recurring basis | Level 1 | Cash, cash equivalents and money market funds | ||
Assets | ||
Total assets | 43,608 | 152,770 |
Recurring basis | Level 1 | Certificates of deposit | ||
Assets | ||
Total assets | 1,682 | 1,950 |
Recurring basis | Level 1 | U.S. Treasury securities | ||
Assets | ||
Total assets | 106,388 | 20,052 |
Recurring basis | Level 2 | ||
Assets | ||
Total assets | 28,325 | 3,459 |
Recurring basis | Level 2 | Corporate debt securities | ||
Assets | ||
Total assets | 17,606 | $ 3,459 |
Recurring basis | Level 2 | U.S. Agency bonds | ||
Assets | ||
Total assets | $ 10,719 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Fair value and Amortized cost (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cash and Cash Equivalents, at Carrying Value | $ 133,072 | $ 157,954 |
Cash, cash equivalents and money market funds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 123,074 | 157,954 |
Estimated Fair Value | 123,074 | 157,954 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 106,303 | 20,037 |
Gross Unrealized Gains | 85 | 16 |
Estimated Fair Value | 106,388 | 20,053 |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 17,584 | 3,459 |
Gross Unrealized Gains | 22 | |
Estimated Fair Value | 17,606 | 3,459 |
U.S. Agency bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 10,719 | |
Estimated Fair Value | 10,719 | |
Certificates of deposit | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 1,672 | 1,950 |
Gross Unrealized Gains | 10 | |
Estimated Fair Value | 1,682 | 1,950 |
Total | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 259,352 | 183,400 |
Gross Unrealized Gains | 117 | 16 |
Estimated Fair Value | 259,469 | 183,416 |
Less amounts classified as cash and cash equivalents | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 133,072 | 157,954 |
Estimated Fair Value | 133,072 | 157,954 |
Total available-for-sale investments | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 126,280 | 25,446 |
Gross Unrealized Gains | 117 | 16 |
Estimated Fair Value | $ 126,397 | $ 25,462 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets. | ||
Prepaid Insurance | $ 2,175 | $ 1,265 |
Vendor prepayments and deposits | 970 | 963 |
Prepaid rent | 1,397 | 879 |
Non-trade receivables | 120 | 242 |
Interest receivables and other current assets | 236 | 153 |
Total prepaid expenses and other current assets | $ 4,898 | $ 3,502 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, Plant and Equipment, Gross | $ 14,906,000 | $ 14,906,000 | $ 11,130,000 | ||
Less accumulated depreciation and amortization | (7,123,000) | (7,123,000) | (5,359,000) | ||
Total property and equipment, net | 7,783,000 | 7,783,000 | 5,771,000 | ||
Depreciation expense | 600,000 | $ 400,000 | 1,800,000 | $ 1,200,000 | |
Net book value of property and equipment under capital leases | 60,000 | 60,000 | 94,000 | ||
Laboratory equipment | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, Plant and Equipment, Gross | 11,255,000 | 11,255,000 | 9,355,000 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, Plant and Equipment, Gross | 242,000 | 242,000 | 225,000 | ||
Computer hardware and software | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, Plant and Equipment, Gross | 854,000 | 854,000 | 785,000 | ||
Leasehold improvements | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, Plant and Equipment, Gross | 667,000 | 667,000 | 629,000 | ||
Construction in process | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property, Plant and Equipment, Gross | $ 1,888,000 | $ 1,888,000 | $ 136,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Expenses | ||
Compensation and related benefits | $ 3,692 | $ 4,435 |
Professional fees | 925 | 563 |
Contract research fees | 262 | 214 |
Other | 430 | 183 |
Total accrued expenses | $ 5,309 | $ 5,395 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2017 | |
Operating leases | |||||
Rent expenses | $ 2,900,000 | $ 1,100,000 | $ 6,700,000 | $ 2,400,000 | |
Capital lease | |||||
Purchases under capital lease | $ 226,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Future minimum capital leases: | ||
2020 (remaining 6 months) | $ 13 | |
2021 | 51 | |
2022 | 4 | |
Total minimum lease payments | 68 | |
Less: amount representing interest | (3) | |
Present value of capital lease obligation | 65 | |
Less: current portion | (48) | |
Non-current portion | 17 | $ 53 |
Future minimum operating leases: | ||
2020 (remaining 6 months) | 1,428 | |
2021 | 6,697 | |
2022 | 7,336 | |
2023 | 7,037 | |
2024 | 7,248 | |
Thereafter | 69,091 | |
Total minimum lease payments | $ 98,837 |
Capital Stock - Class A and Cla
Capital Stock - Class A and Class B Common Stock (Details) $ / shares in Units, $ in Millions | Jun. 02, 2019Vote$ / sharesshares | Aug. 31, 2020USD ($) | Sep. 30, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 300,000,000 | |||
Preferred stock par value | $ / shares | $ 0.0001 | |||
At The Market Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Sales Agreement, Percentage Of Gross Proceeds As Compensation For Services | 3.00% | |||
Stock Issued During Period, Shares, New Issues | 0 | |||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 650,000,000 | 650,000,000 | 650,000,000 | |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Number of votes entitled per share | Vote | 1 | |||
Class A common stock | At The Market Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Sales Agreement, Value Of Shares Authorized For Issuance | $ | $ 100 | |||
Class B common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Capital Stock - Common Stock Wa
Capital Stock - Common Stock Warrants (Details) - USD ($) | 1 Months Ended | |
Aug. 31, 2015 | Sep. 30, 2020 | |
Class of Warrant or Right [Line Items] | ||
Warrants to purchase (in shares) | 49,997 | |
Common Stock Warrants | Series A convertible preferred stock | ||
Class of Warrant or Right [Line Items] | ||
Warrants to purchase (in shares) | 62,936 | |
Price per share (in dollars per share) | $ 0.0001 | |
Fair value of warrants | $ 41,509 |
Equity Incentive Plan - Narrati
Equity Incentive Plan - Narrative (Details) - 2019 Equity Incentive Plan | Jun. 19, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance | 6,141,842 |
Percentage of additional number of shares authorized annually | 4.00% |
Equity Incentive Plan - Stock o
Equity Incentive Plan - Stock option (Details) - 2019 Equity Incentive Plan | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | ||
Balance at beginning of period (in shares) | shares | 3,742,144 | |
Granted (in shares) | shares | 1,446,250 | |
Exercised (in shares) | shares | (223,143) | |
Cancelled (in shares) | shares | (44,394) | |
Balance at end of period (in shares) | shares | 4,920,857 | 3,742,144 |
Vested and expected to vest at end of period (in shares) | shares | 4,920,857 | |
Exercisable at end of period (in shares) | shares | 2,312,537 | |
Vested at end of period (in shares) | shares | 1,916,554 | |
Weighted-Average Exercise Price | ||
Balance at beginning of period (in dollars per share) | $ / shares | $ 9.58 | |
Granted (in dollars per share) | $ / shares | 21.33 | |
Exercised (in dollars per share) | $ / shares | 5.07 | |
Cancelled (in dollars per share) | $ / shares | 15.63 | |
Balance at end of period (in dollars per share) | $ / shares | 13.18 | $ 9.58 |
Vested and expected to vest at end of period (in dollars per share) | $ / shares | 13.18 | |
Exercisable at end of period (in dollars per share) | $ / shares | 9.07 | |
Vested at end of period (in dollars per share) | $ / shares | $ 9.88 | |
Weighted-Average Remaining Contractual Life | ||
Weighted-Average Remaining Contractual Life | 8 years 3 months 18 days | 8 years 7 months 6 days |
Vested and expected to vest at end of period (in years) | 8 years 3 months 18 days | |
Exercisable at end of period (in years) | 7 years 7 months 6 days | |
Vested at end of period (in years) | 7 years 8 months 12 days | |
Aggregate Intrinsic Value | ||
Balance at beginning of period | $ | $ 22,910 | |
Balance at end of period | $ | 16,009 | $ 22,910 |
Vested and expected to vest at end of period | $ | 16,009 | |
Exercisable at end of period | $ | 13,441 | |
Vested at end of period | $ | $ 9,948 |
Equity Incentive Plan - Weighte
Equity Incentive Plan - Weighted-average grant date fair value (Details) - 2019 Equity Incentive Plan - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 13.55 | $ 10.42 |
Expected dividend | 0.00% | 0.00% |
Equity Incentive Plan - Weigh_2
Equity Incentive Plan - Weighted average assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
2019 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (in years) | 6 years 4 days | 6 years 11 days | 5 years 10 months 6 days | 6 years 7 days |
Volatility | 88.50% | 80.50% | 85.60% | 80.80% |
Risk-free interest rate | 0.39% | 1.77% | 1.05% | 2.19% |
2019 Employee Stock Purchase Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (in years) | 6 months | 6 months | 6 months | 2 months 12 days |
Volatility | 103.40% | 75.10% | 91.40% | 74.60% |
Risk-free interest rate | 0.12% | 1.50% | 0.12% | 1.50% |
2019 Employee Stock Purchase Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected life (in years) | 2 years | 2 years | 2 years | 2 years |
Volatility | 114.60% | 93.70% | 114.60% | 101.60% |
Risk-free interest rate | 0.14% | 1.89% | 1.11% | 2.15% |
Equity Incentive Plan - 2019 Em
Equity Incentive Plan - 2019 Employee Stock Purchase Plan (Details) - USD ($) | Jun. 19, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 3,487,000 | $ 1,878,000 | $ 9,353,000 | $ 4,013,000 | |
Class A common stock | 2019 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance | 283,333 | ||||
Stock-based compensation expense | $ 194,000 | $ 177,000 | $ 525,000 | $ 177,000 | |
Expected dividend | 0.00% | ||||
Class A common stock | 2019 Employee Stock Purchase Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of additional number of shares authorized annually | 1.00% | ||||
Additional number of shares authorized annually | 416,666 |
Equity Incentive Plan - Stock-b
Equity Incentive Plan - Stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,487 | $ 1,878 | $ 9,353 | $ 4,013 |
Income tax benefits for stock-based compensation | 0 | |||
Stock-based compensation costs capitalized | 0 | |||
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,628 | 920 | 4,490 | 2,091 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,859 | $ 958 | $ 4,863 | $ 1,922 |
Equity Incentive Plan - Unrecog
Equity Incentive Plan - Unrecognized compensation (Details) - 2019 Equity Incentive Plan $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized estimated compensation expense | $ 30.5 |
Remaining requisite service period | 2 years 8 months 12 days |
Net Loss Per Share - (Details)
Net Loss Per Share - (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 4,970,854 | 3,742,679 |
Common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 4,920,857 | 3,690,398 |
Convertible preferred stock warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 49,997 | 49,997 |
Early exercised stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the diluted net loss per share calculation | 2,284 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)director | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||||
Other income | $ 2,000 | $ 3,000 | $ 187,000 | $ 486,000 | |
Receivable from stockholders | 1,000 | 1,000 | $ 121,000 | ||
Due to related party | 74,000 | 74,000 | 73,000 | ||
Research and development expense | 61,000 | 123,000 | $ 188,000 | 335,000 | |
Number of members under consulting agreements | director | 2 | ||||
Intellectual property related legal fees | |||||
Related Party Transaction [Line Items] | |||||
Expense | 300,000 | 400,000 | $ 1,000,000 | 1,100,000 | |
Due to related party | 200,000 | 200,000 | 100,000 | ||
Other legal fees | |||||
Related Party Transaction [Line Items] | |||||
Expense | 400,000 | $ 300,000 | 1,300,000 | $ 2,300,000 | |
Due to related party | $ 300,000 | $ 300,000 | $ 200,000 |