Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 24, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ALLK | |
Entity Registrant Name | Allakos Inc. | |
Entity Central Index Key | 1,564,824 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,113,059 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 19,295 | $ 85,207 |
Investments in marketable securities | 44,851 | 0 |
Prepaid expenses and other current assets | 2,987 | 1,037 |
Total current assets | 67,133 | 86,244 |
Property and equipment, net | 3,376 | 445 |
Other long-term assets | 3,716 | 340 |
Total assets | 74,225 | 87,029 |
Current liabilities: | ||
Accounts payable | 1,928 | 1,703 |
Accrued expenses and other current liabilities | 3,082 | 1,089 |
Total current liabilities | 5,010 | 2,792 |
Other long-term liabilities | 1,468 | 36 |
Total liabilities | 6,478 | 2,828 |
Commitments and contingencies (Note 6) | ||
Stockholders' deficit: | ||
Common stock, $0.001 par value per share; 55,000 shares authorized as of June 30, 2018 and December 31, 2017; 2,530 and 2,114 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 3 | 3 |
Additional paid-in capital | 3,158 | 1,803 |
Accumulated other comprehensive income | 3 | |
Accumulated deficit | (78,436) | (60,574) |
Total stockholders’ deficit | (75,272) | (58,768) |
Total liabilities, convertible preferred stock, and stockholders’ deficit | 74,225 | 87,029 |
Series A Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock, value | 43,046 | 42,996 |
Series B Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock, value | $ 99,973 | $ 99,973 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 2,529,726 | 2,114,000 |
Common stock, shares outstanding | 2,529,726 | 2,114,000 |
Series A Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 26,083,081 | 26,083,000 |
Convertible preferred stock, shares issued | 20,866,000 | 20,866,000 |
Convertible preferred stock, shares outstanding | 20,866,000 | 20,866,000 |
Convertible preferred stock, aggregate liquidation preference | $ 46,950 | $ 46,950 |
Series B Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 12,631,506 | 12,632,000 |
Convertible preferred stock, shares issued | 10,105,000 | 10,105,000 |
Convertible preferred stock, shares outstanding | 10,105,000 | 10,105,000 |
Convertible preferred stock, aggregate liquidation preference | $ 100,141 | $ 100,141 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating expenses | ||||
Research and development | $ 7,149 | $ 3,758 | $ 13,550 | $ 8,122 |
General and administrative | 2,375 | 840 | 4,683 | 1,453 |
Total operating expenses | 9,524 | 4,598 | 18,233 | 9,575 |
Loss from operations | (9,524) | (4,598) | (18,233) | (9,575) |
Interest income (expense), net | 292 | (73) | 516 | (137) |
Other expense, net | (145) | (21) | (145) | (36) |
Net loss | (9,377) | (4,692) | (17,862) | (9,748) |
Unrealized gain on marketable securities, net of tax | 3 | 3 | ||
Comprehensive loss | $ (9,374) | $ (4,692) | $ (17,859) | $ (9,748) |
Net loss per common share: | ||||
Basic and diluted | $ (4.17) | $ (3.18) | $ (8.36) | $ (6.73) |
Weighted-average number of common shares outstanding: | ||||
Basic and diluted | 2,248 | 1,477 | 2,137 | 1,449 |
STATEMENTS OF CASH FLOWS (unaud
STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (17,862,000) | $ (9,748,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 119,000 | 113,000 |
Accretion of tenant improvement allowance | (21,000) | 0 |
Stock-based compensation | 1,052,000 | 155,000 |
Net amortization of premiums and discounts on marketable securities | (89,000) | 0 |
Non-cash interest related to debt facility | 0 | 50,000 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (2,051,000) | (234,000) |
Other long-term assets | (22,000) | (250,000) |
Accounts payable | (647,000) | 93,000 |
Accrued expenses and other current liabilities | 1,861,000 | (200,000) |
Other long-term liabilities | 211,000 | |
Net cash used in operating activities | (17,449,000) | (10,021,000) |
Cash flows from investing activities | ||
Purchases of marketable securities | (44,746,000) | 0 |
Purchases of property and equipment | (1,650,000) | (93,000) |
Net cash used in investing activities | (46,396,000) | (93,000) |
Cash flows from financing activities | ||
Proceeds from the exercise of stock options, net of repurchases | 291,000 | 75,000 |
Proceeds from the repayment of recourse promissory note | 50,000 | 0 |
Payments for deferred financing costs | (1,606,000) | 0 |
Net cash provided by (used in) financing activities | (1,265,000) | 75,000 |
Net decrease in cash, cash equivalents and restricted cash | (65,110,000) | (10,039,000) |
Cash, cash equivalents and restricted cash, beginning of period | 85,207,000 | 13,416,000 |
Cash, cash equivalents and restricted cash, end of period | 20,097,000 | 3,377,000 |
Supplemental disclosures | ||
Cash paid for interest | 0 | 79,000 |
Noncash investing and financing items: | ||
Property and equipment purchased in accounts payable | 14,000 | 98,000 |
Lessor funded lease incentives included in property and equipment | 1,386,000 | 0 |
Deferred initial public offering costs in accounts payable and accrued expenses | 858,000 | 0 |
Vesting of restricted common stock subject to repurchase | $ 12,000 | $ 16,000 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business Allakos Inc. (“Allakos” or the “Company”) was incorporated in the state of Delaware in March 2012. Allakos is a clinical stage biopharmaceutical company focused on the development of AK002 for the treatment of eosinophil and mast cell related diseases. The Company’s primary activities to date have included establishing its facilities, recruiting personnel, conducting research and development of its product candidates and raising capital. The Company’s operations are located in San Carlos, California. Liquidity Matters Since inception, the Company has incurred net losses and negative cash flows from operations. During the six months ended June 30, 2018, the Company incurred a net loss of $17.9 million and used $17.4 million of cash in operations. At June 30, 2018, the Company had an accumulated deficit of $78.4 million and does not expect to experience positive cash flows from operating activities in the foreseeable future. The Company has financed its operations to date primarily through the sale of common stock and issuance of convertible preferred stock. Management expects to incur additional operating losses in the future as the Company continues to further develop, seek regulatory approval for and, if approved, commence commercialization of its product candidates. The Company had $64.1 million of cash, cash equivalents and marketable securities at June 30, 2018. Management believes that this amount and the net proceeds raised from the Company’s initial public offering and the concurrent private placement in July 2018 are sufficient to fund the Company’s operations for at least the next 12 months from the issuance date of these financial statements. Initial Public Offering and Related Transactions On July 23, 2018, the Company completed an initial public offering (“IPO”), selling 8,203,332 shares of common stock at an offering price of $18.00 per share. Proceeds from the IPO, net of underwriting discounts and commissions, were $137.3 million. Concurrently with the IPO, the Company completed a private placement of 250,000 shares of common stock at the IPO offering price of $18.00 per share to an existing stockholder. Proceeds from this private placement were $4.5 million. In connection with the completion of the IPO on July 23, 2018, all then outstanding shares of convertible preferred stock were converted into 30,971,627 shares of common stock. Reverse Stock Split On July 6, 2018, the Company amended its certificate of incorporation to effect a 1-for-1.25 reverse stock split of every outstanding share of its convertible preferred stock and common stock. The financial statements and accompanying notes have been retroactively restated to reflect the reverse stock split. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. The interim balance sheet as of June 30, 2018, the statements of operations and comprehensive loss, and statements of cash flows for the six months ended June 30, 2017 and 2018 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s financial position as of June 30, 2018 and its results of operations and comprehensive loss for the three and six months ended June 30, 2018 and 2017 and its cash flows for the six months ended June 30, 2018 and 2017. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP have been omitted. The financial data and the other financial information disclosed in these notes to the interim financial statements are also unaudited. The results of operations for any interim period are not necessarily indicative of the results to be expected for the entire year or for any other future annual or interim period. The balance sheet as of December 31, 2017 included herein was derived from the audited financial statements as of that date. These interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Prospectus that forms a part of the Company’s Registration Statement on Form S-1, which was filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) on July 19, 2018. Use of Estimates Management uses significant judgment when making estimates related to common stock valuation and related stock-based compensation expense, accrued expenses related to clinical trials and deferred tax valuation allowances. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions, and those differences could be material to the financial position and results of operations. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to credit risk principally consist of cash, cash equivalents and marketable securities. These financial instruments are held in accounts at a single financial institution that management believes possesses high credit quality. Amounts on deposit with this financial institution have and will continue to exceed federally-insured limits. The Company has not experienced any losses on its cash deposits. Additionally, the Company’s investment policy limits its investments to certain types of securities issued by the U.S. government and its agencies. The Company is subject to a number of risks similar to that of other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future clinical trials, its reliance on third parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitive developments, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, its right to develop and commercialize its product candidates pursuant to the terms and conditions of the licenses granted to the Company, protection of proprietary technology, the ability to make milestone, royalty or other payments due under licensing agreements, and the need to secure and maintain adequate manufacturing arrangements with third parties. If the Company does not successfully commercialize or partner its product candidates, it will be unable to generate product revenue or achieve profitability. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Restricted cash as of June 30, 2018 represents deposits restricted from withdrawal and held by a bank in the form of collateral for an irrevocable standby letter of credit held as security for the lease of the Company’s facility in Redwood City, California. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2018 2017 Cash and cash equivalents $ 19,295 $ 85,207 Restricted cash in long term assets, deposit for lease facility 802 — Total cash, cash equivalents and restricted cash $ 20,097 $ 85,207 The Company had no restricted cash at June 30, 2017 and December 31, 2016. Marketable Securities The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies. Investments with contractual maturities greater than 90 days that mature less than one year from the balance sheet date are classified as short-term investments. Those investments with a contractual maturity date greater than one year are considered long-term investments. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated comprehensive income (loss). The cost of securities sold is determined using the specific-identification method. Interest earned and adjustments for the amortization of premiums and discounts on investments are included in interest income (expense), net, on the statements of operations and comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on investments in marketable securities are included in other income (expense), net, on the statements of operations and comprehensive loss. Fair Value Measurements The Company accounts for fair value of its financial instruments in accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic No. 820, Fair Value Measurements The Company measures fair value based on a three-level hierarchy of inputs, of which the first two are considered observable and the last unobservable. Unobservable inputs reflect the Company’s own assumptions about current market conditions. The three-level hierarchy of inputs is as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts reflected in the Company’s balance sheets for cash and cash equivalents, prepaid expenses and other current assets and other long-term assets approximate fair value, due to their short-term nature. Deferred Initial Public Offering Costs Costs incurred in connection with the IPO primarily consist of direct incremental legal, printing and accounting fees. IPO costs are capitalized as incurred and will be offset against proceeds upon consummation of the offering. In the event the offering had been terminated or abandoned, deferred IPO costs would have been expensed in the period such determination had been made. As of June 30, 2018 and December 31, 2017, there was $2.6 million and $0.2 million, respectively, of deferred IPO costs included in other long-term assets on the Company’s balance sheets. Lease Liabilities The Company classifies the agreements for its office and laboratory facilities as an operating lease. Rent expense is recorded on a straight-line basis over the term of the lease. Differences that exist between cash rent payments and the recognition of rent expense, such as those resulting from rent abatements or contractual escalations of minimum lease payments, are recorded as a deferred rent liability and recognized as adjustments to rental expense on a straight-line basis over the term of the lease. The current portion of the deferred rent liability is included within accrued expenses and other current liabilities on the Company’s balance sheets. Noncurrent portion of deferred rent liability is classified as other long-term liabilities. Tenant improvement allowances received are recorded as lease incentive obligations included in accrued expenses and other current liabilities and other long-term liabilities on the Company’s balance sheets and are amortized to rent expense over the term of the lease. Term Loan Financing Costs During the three months and six months ended June 30, 2017, the Company recognized noncash interest expense of $25,000 and $50,000, respectively, related to its then outstanding debt facility. Noncash interest included the amortization and accretion of various costs incurred in connection with the issuance of the associated debt instruments and calculated using the effective interest rate method over the expected term of the debt. In December 2017, the Company repaid all outstanding debt. Noncash interest expense is included in interest income (expense), net, within the Company’s statements of operations and comprehensive loss. Research and Development Expense Research and development costs are expensed as incurred. Research and development costs include, among others, consulting costs, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocation of facilities and overhead costs and external costs paid to third parties that conduct research and development activities on the Company’s behalf. Amounts incurred in connection with license agreements are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are deferred and included in prepaid expenses and other current assets. The deferred amounts are expensed as the related goods are delivered or the services are performed. Accrued Research and Development Costs Service agreements with contract research organizations (“CROs”) and contract development and manufacturing organizations (“CDMOs”) comprise a significant component of the Company’s research and development activities. External costs for CROs and CDMOs are recognized as the services are incurred. The Company accrues for expenses resulting from obligations under agreements with its third parties for which the timing of payments does not match the periods over which the materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CROs, CDMOs and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes judgements and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CRO, CDMO or other outside service provider, the payments are recorded within prepaid expenses and other current assets and subsequently recognized as research and development expense when the associated services have been performed. As actual costs become known, the Company adjusts its liabilities and assets. Inputs, such as the extent of services received and the duration of services to be performed, may vary from the Company’s estimates, which will result in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. The Company’s historical estimates have not been materially different from actual amounts recorded. Convertible Preferred Stock The Company recorded all shares of convertible preferred stock net of offering costs at their respective fair values on the dates of issuance. The convertible preferred stock was recorded outside of stockholders’ deficit because, in the event of certain deemed liquidation events considered not solely within the Company’s control, such as a merger, acquisition or sale of all or substantially all of the Company’s assets, the convertible preferred stock will become redeemable at the option of the holders. In the event of a change of control of the Company, proceeds received from the sale of such shares will be distributed in accordance with the liquidation preferences set forth in the Company’s Second Amended and Restated Certificate of Incorporation unless the holders of convertible preferred stock had previously converted their shares of convertible preferred stock into shares of common stock. In connection with the completion of the IPO on July 23, 2018, all then outstanding shares of convertible preferred stock were converted into 30,971,627 shares of common stock. Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with FASB ASC Topic 718, Compensation—Stock Compensation Expected volatility – Due to the lack of a public market for the Company’s common stock and a lack of company-specific historical and implied volatility data, the Company has based its computation of expected volatility on the historical volatility of a representative group of public companies with similar characteristics to the Company, including stage of product development and life science industry focus. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. Expected term – The Company determines the expected term in accordance with the “simplified method” described by SEC Staff Accounting Bulletin No. 107, , as it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. Risk-free interest rate – The Company bases the risk-free interest rate on United States Treasury securities with terms consistent to the expected term of the stock option being valued. Expected dividends – The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. The Company uses historical data to estimate pre-vesting forfeitures and records stock-based compensation expense only for those awards expected to vest. To the extent that actual forfeitures differ from estimates, the difference is recorded as a cumulative adjustment in the period the estimates are revised. The Company expenses the fair value of its stock-based compensation awards to employees on a straight-line basis over the requisite service period, which is generally the vesting period. Comprehensive Loss Comprehensive loss is defined as the change in stockholders’ equity (deficit) during a period from transactions and other events and circumstances from non-owner sources and consists primarily of unrealized gains and losses on the Company’s investments in marketable securities. Net Loss per Share The Company calculates basic net loss per share by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The Company calculates diluted net loss per share after giving consideration to all potentially dilutive securities outstanding during the period using the treasury-stock and if-converted methods, except where the effect of including such securities would be Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (9,377 ) $ (4,692 ) $ (17,862 ) $ (9,748 ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 2,248 1,477 2,137 1,449 Net loss per share, basic and diluted $ (4.17 ) $ (3.18 ) $ (8.36 ) $ (6.73 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Three and Six Months Ended June 30, 2018 2017 Series A convertible preferred stock 20,866 20,866 Series B convertible preferred stock 10,105 — Options to purchase common stock 6,529 4,666 Warrants to purchase common stock 48 48 Unvested restricted common stock 76 167 Total 37,624 25,747 Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases . In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The Company’s financial assets measured at fair value on a recurring basis were as follows (in thousands): June 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 13,771 $ — $ — $ 13,771 Marketable securities U.S. treasuries — 44,851 — 44,851 Total cash equivalents and marketable securities $ 13,771 $ 44,851 $ — $ 58,622 December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 82,526 $ — $ — $ 82,526 Total cash equivalents $ 82,526 $ — $ — $ 82,526 The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of assets or liabilities between levels during the three and six months ended June 30, 2018 and 2017. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities All marketable securities were considered available-for-sale at June 30, 2018. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s marketable securities by major security type at June 30, 2018 are summarized in the table below (in thousands): June 30, 2018 Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Short-term marketable securities U.S. treasuries $ 44,848 $ 4 $ (1 ) $ 44,851 Total short-term marketable securities $ 44,848 $ 4 $ (1 ) $ 44,851 The Company had no other-than-temporary impairments on its marketable securities during the three and six months ended June 30, 2018. The Company has the intent and ability to hold all marketable securities until their maturities. The Company held no marketable securities at December 31, 2017. |
Balance Sheet Components and Su
Balance Sheet Components and Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components and Supplemental Disclosures | 5. Balance Sheet Components and Supplemental Disclosures Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): June 30, December 31, 2018 2017 Laboratory equipment $ 1,040 $ 949 Leasehold improvements 55 55 Construction in progress 2,959 — 4,054 1,004 Less accumulated depreciation (678 ) (559 ) Property and equipment, net $ 3,376 $ 445 Depreciation and amortization expense for the three months ended June 30, 2018 and 2017 was $58,000 and $62,000, respectively. Depreciation expense for the six months ended June 30, 2018 and 2017 was $119,000 and $113,000, respectively. Construction in progress represents direct costs related to the construction of leasehold improvements associated with the Company’s lease agreement entered into in January 2018. Costs of assets under construction are capitalized but are not depreciated until the construction is substantially complete and the assets being constructed are ready for their intended use. Depreciation is recorded using the straight-line method over the lesser of the lease term or the estimated useful lives of the leasehold improvements. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2018 2017 Accrued outside professional services $ 1,214 $ 787 Accrued compensation 1,707 265 Other current liabilities 161 37 Total $ 3,082 $ 1,089 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Operating Lease Obligations The Company’s operating lease obligations primarily relate to its leased office and laboratory space under two separate noncancelable operating leases that begin to expire in June 2019. The Company’s San Carlos lease agreement, which was amended in August 2015, includes two renewal provisions allowing the Company to extend the lease for an additional period of one year each. The amended lease agreement includes a rent abatement and escalation clauses for increased rent over the lease term. The Company’s Redwood City lease agreement was entered into January 2018, with a contractual lease term commencing upon substantial completion and delivery of the premises. The base term of the lease is 10.75 years with an option to extend an additional term of 5 years. The lease agreement required a security deposit of $0.8 million, which the Company satisfied by establishing a letter of credit secured by restricted cash. Restricted cash is recorded in other long-term assets on the Company’s balance sheet. The lease agreement entered into in January 2018 allows for a tenant improvement allowance of up to $1.4 million to be applied to the total cost of tenant improvements to the leased premises. Tenant improvement allowances received are recorded as lease incentive obligations included in accrued expenses and other current liabilities and other long-term liabilities on the Company’s balance sheets and are amortized to rent expense over the term of the lease. As of June 30, 2018, lease incentive obligations totaled $1.4 million. In addition to the minimum future lease commitments presented below, both leases require the Company to pay property taxes, insurance, maintenance and repair costs. Rent expense is recognized using the straight-line method over the respective terms. The Company records a deferred rent liability calculated as the difference between rent expense and cash rental payments. The current portion of the liability is included within accrued expenses and other current liabilities on the Company’s balance sheets. The remaining non-current portion is classified in other long-term liabilities. Future minimum lease payments required under operating leases are as follows (in thousands): Fiscal Year Ending December 31, 2018 (remaining 6 months) $ 210 2019 741 2020 1,239 2021 1,277 2022 1,315 Thereafter 9,429 Total minimum future lease payments $ 14,211 In November 2015, the Company entered into a sublease agreement with a third party for a portion of the Company’s facilities in San Carlos, California. The sublease has a month-to-month term and can be terminated by either party with a thirty-day written notice. Sublease payments owed are recorded as an offset to the Company’s rent expense. Net rent expense was $0.3 million and $0.1 million for the three months ended June 30, 2018 and 2017, respectively. Net rent expense was $0.4 million and $0.2 million for the six months ended June 30, 2018 and 2017, respectively. Purchase Obligations The Company has entered into contractual agreements with various research and development organizations and suppliers in the normal course of its business. All contracts are terminable, with varying provisions regarding termination. If a contract were to be terminated, the Company would only be obligated for the products or services that the Company had received through the time of termination as well as any non-cancelable minimum payments contractually agreed upon prior to the effective date of termination. In the case of terminating a clinical trial agreement with an investigational site conducting clinical activities on behalf of the Company, the Company would also be obligated to provide continued support for appropriate safety procedures through completion or termination of the associated study. At June 30, 2018, the Company had no non-cancelable purchase obligations under these agreements. In-Licensing Agreements The Company has entered into exclusive and non-exclusive, royalty bearing license agreements with third-parties for certain intellectual property. Under the terms of the license agreements, the Company is obligated to pay milestone payments upon the achievement of specified clinical, regulatory and commercial milestones. Actual amounts due under the license agreements will vary depending on factors including, but not limited to, the number of products developed and the Company’s ability to further develop and commercialize the licensed products. The Company is also subject to future royalty payments based on sales of the licensed products. In-licensing payments to third parties for milestones are recognized as research and development expense in the period of achievement. The Company recognized $0.3 million of milestone expense for the six months ended June 30, 2018. The Company did not recognize any milestone expense during the three months ended June 30, 2018 and the three and six months ended June 30, 2017. Milestone payments are not creditable against royalties. As of June 30, 2018, the Company has not incurred any royalty liabilities related to its license agreements, as product sales have not yet commenced. Exclusive License Agreement with The Johns Hopkins University In December 2013, the Company entered into a license agreement with The Johns Hopkins University (“JHU”) for a worldwide exclusive license to develop, use, manufacture and commercialize covered product candidates including AK001 and AK002, which was amended in September 30, 2016. Under the terms of the agreement, the Company has made upfront and milestone payments of $0.3 million through June 30, 2018 and may be required to make aggregate additional milestone payments of up to $4.0 million. The Company also issued 88,887 shares of common stock as consideration under the JHU license agreement. In addition to milestone payments, the Company is also subject to single-digit royalties to JHU based on future net sales of each licensed therapeutic product candidate by the Company and its affiliates and sublicensees, with up to a low six digit dollar minimum annual royalty payment. Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG In October 2013, the Company entered into a tripartite agreement with BioWa Inc. (“BioWa”), and Lonza Sales AG (“Lonza”), for the non-exclusive worldwide license to develop and commercialize product candidates including AK002 that are manufactured using a technology jointly developed and owned by BioWa and Lonza. Under the terms of the agreement, the Company has made milestone payments of $0.4 million through June 30, 2018 and may be required to make aggregate additional milestone payments of up to $41.0 million. In addition to milestone payments, the Company is also subject to minimum annual commercial license fees of $40,000 per year to BioWa until such time as BioWa receives royalty payments, as well as low single-digit royalties to BioWa and to Lonza. Royalties are based on future net sales by the Company and its affiliates and sublicensees and vary dependent on Lonza’s participation as sole manufacturer for commercial production. Indemnification Agreements The Company has entered into indemnification agreements with certain directors and officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, no such matters have arisen and the Company does not believe that the outcome of any claims under indemnification arrangements will have a material adverse effect on its financial positions, results of operations or cash flows. Accordingly, the Company has not recorded a liability related to such indemnifications at June 30, 2018. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Convertible Preferred Stock and Stockholders' Deficit | 7. Convertible Preferred Stock and Stockholders’ Deficit As of June 30, 2018, the Company is authorized to issue a total of 93,714,587 shares of stock. Of these shares, 38,714,587 are designated as preferred stock, including 26,083,081 Series A shares and 12,631,506 Series B shares. The Company is authorized to issue a total of 55,000,000 shares of common stock, of which 2,529,726 shares were issued and outstanding at June 30, 2018. Common Stock A summary of common stock shares reserved for future issuance upon the exercise, issuance or conversion of the respective equity instruments is as follows (in thousands): June 30, December 31, 2018 2017 Series A convertible preferred stock 26,083 26,083 Series B convertible preferred stock 12,632 12,632 Stock options issued and outstanding 6,529 4,884 Stock options available for future grant 285 2,346 Conversion of common stock warrants 48 48 Total 45,577 45,993 Common stockholders are entitled to dividends if and when declared by the Board of Directors subject to the prior rights of the preferred stockholders. As of June 30, 2018, no dividends on common stock had been declared by the Board of Directors. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Research and development $ 167 $ 42 $ 335 $ 69 General and administrative 272 67 717 86 Total $ 439 $ 109 $ 1,052 $ 155 No income tax benefits for stock-based compensation expense have been recognized for the three and six months ended June 30, 2018 and 2017 as a result of the Company’s full valuation allowance applied to net deferred tax assets and net operating loss carryforwards. The following weighted-average assumptions were used to calculate the fair value of stock-based awards granted to employees and directors during the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Risk-free interest rate 2.93 % 1.79 % 2.66 % 1.79 % Expected volatility 75.00 % 78.00 % 76.66 % 78.00 % Expected dividend yield — — — — Expected term (in years) 6.08 6.08 5.99 6.08 Activity under the 2012 Equity Incentive Plan, as amended, is summarized as follows (in thousands, except per share data): Weighted- Shares Average Available Options Exercise for Grant Outstanding Price Balance at December 31, 2017 2,346 4,884 $ 0.67 Granted (2,275 ) 2,275 $ 4.14 Exercised — (416 ) $ 0.70 Forfeited 214 (214 ) $ 0.50 Balance at June 30, 2018 285 6,529 $ 1.88 Options exercisable 3,573 $ 1.03 Options vested and expected to vest 6,464 $ 1.88 During the three and six months ended June 30, 2018 and 2017, the Company did not grant any stock options with performance-based or market-based vesting conditions, nor did the Company grant any stock options to non-employees in exchange for services. As of June 30, 2018, total unrecognized stock-based compensation expense relating to unvested stock options was $6.7 million. This amount is expected to be recognized over a weighted-average period of 3.0 years. |
Defined Contribution Plan
Defined Contribution Plan | 6 Months Ended |
Jun. 30, 2018 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |
Defined Contribution Plan | 9. Defined Contribution Plan In July 2013, the Company established a Savings Incentive Match Plan (the “SIMPLE IRA plan”) for its employees, allowing for both employee and employer contributions for those employees who meet defined minimum age and service requirements. The SIMPLE IRA plan allows participants to defer a portion of their annual compensation on a pretax basis. During the three and six months ended June 30, 2017, the Company made contributions to the SIMPLE IRA plan of $21,000 and $51,000, respectively. In January 2018, the Company terminated and replaced the SIMPLE IRA with a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) plan”). The 401(k) plan covers all employees who meet defined minimum age and service requirements. Employee contributions are voluntary and are determined on an individual basis, limited to the maximum amount allowable under U.S. federal tax regulations. The Company makes matching contributions of up to 4% of the eligible employees’ compensation to the 401(k) plan. During the three and six months ended June 30, 2018, the Company made contributions to the 401(k) plan of $59,000 and $118,000, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions In September 2014, as part of the second closings of its Series A convertible preferred stock, the Company received a $50,000 fully recourse promissory note from an employee as partial consideration for the purchase of Series A convertible preferred stock. The loan accrues interest at 2.97% per annum and is scheduled to mature on September 19, 2024. The principal portion of the related party promissory note was recorded in temporary equity on the balance sheets as a reduction to Series A convertible preferred stock. Interest accrued on the loan was recorded as a receivable within prepaid and other current assets on the balance sheets. The related party promissory note and accrued interest was paid in full in June 2018. For the three and six months ended June 30, 2018 and 2017, the Company recognized insignificant interest income in each reporting period. Interest income related to the promissory note was included as a component of interest income (expense), net, within the Company’s statements of operations and comprehensive loss. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events On July 6, 2018, the Company amended its certificate of incorporation to effect a 1-for-1.25 reverse stock split of every outstanding share of its convertible preferred stock and common stock. The financial statements and accompanying notes have been retroactively restated to reflect the reverse stock split. On July 23, 2018, the Company completed an IPO, selling 8,203,332 shares of common stock at an offering price of $18.00 per share. Proceeds from the IPO, net of underwriting discounts and commissions, were $137.3 million. Concurrently with the IPO, the Company completed a private placement of 250,000 shares of common stock at the IPO offering price of $18.00 per share to an existing stockholder. Proceeds from this private placement were $4.5 million. In connection with the completion of the IPO on July 23, 2018, all then outstanding shares of convertible preferred stock were converted into 30,971,627 shares of common stock. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. The interim balance sheet as of June 30, 2018, the statements of operations and comprehensive loss, and statements of cash flows for the six months ended June 30, 2017 and 2018 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s financial position as of June 30, 2018 and its results of operations and comprehensive loss for the three and six months ended June 30, 2018 and 2017 and its cash flows for the six months ended June 30, 2018 and 2017. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP have been omitted. The financial data and the other financial information disclosed in these notes to the interim financial statements are also unaudited. The results of operations for any interim period are not necessarily indicative of the results to be expected for the entire year or for any other future annual or interim period. The balance sheet as of December 31, 2017 included herein was derived from the audited financial statements as of that date. These interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Prospectus that forms a part of the Company’s Registration Statement on Form S-1, which was filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) on July 19, 2018. |
Use of Estimates | Use of Estimates Management uses significant judgment when making estimates related to common stock valuation and related stock-based compensation expense, accrued expenses related to clinical trials and deferred tax valuation allowances. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions, and those differences could be material to the financial position and results of operations. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to credit risk principally consist of cash, cash equivalents and marketable securities. These financial instruments are held in accounts at a single financial institution that management believes possesses high credit quality. Amounts on deposit with this financial institution have and will continue to exceed federally-insured limits. The Company has not experienced any losses on its cash deposits. Additionally, the Company’s investment policy limits its investments to certain types of securities issued by the U.S. government and its agencies. The Company is subject to a number of risks similar to that of other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future clinical trials, its reliance on third parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitive developments, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, its right to develop and commercialize its product candidates pursuant to the terms and conditions of the licenses granted to the Company, protection of proprietary technology, the ability to make milestone, royalty or other payments due under licensing agreements, and the need to secure and maintain adequate manufacturing arrangements with third parties. If the Company does not successfully commercialize or partner its product candidates, it will be unable to generate product revenue or achieve profitability. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Restricted cash as of June 30, 2018 represents deposits restricted from withdrawal and held by a bank in the form of collateral for an irrevocable standby letter of credit held as security for the lease of the Company’s facility in Redwood City, California. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2018 2017 Cash and cash equivalents $ 19,295 $ 85,207 Restricted cash in long term assets, deposit for lease facility 802 — Total cash, cash equivalents and restricted cash $ 20,097 $ 85,207 The Company had no restricted cash at June 30, 2017 and December 31, 2016. |
Marketable Securities | Marketable Securities The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies. Investments with contractual maturities greater than 90 days that mature less than one year from the balance sheet date are classified as short-term investments. Those investments with a contractual maturity date greater than one year are considered long-term investments. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated comprehensive income (loss). The cost of securities sold is determined using the specific-identification method. Interest earned and adjustments for the amortization of premiums and discounts on investments are included in interest income (expense), net, on the statements of operations and comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on investments in marketable securities are included in other income (expense), net, on the statements of operations and comprehensive loss. |
Fair Value Measurements | Fair Value Measurements The Company accounts for fair value of its financial instruments in accordance with Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic No. 820, Fair Value Measurements The Company measures fair value based on a three-level hierarchy of inputs, of which the first two are considered observable and the last unobservable. Unobservable inputs reflect the Company’s own assumptions about current market conditions. The three-level hierarchy of inputs is as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts reflected in the Company’s balance sheets for cash and cash equivalents, prepaid expenses and other current assets and other long-term assets approximate fair value, due to their short-term nature. |
Deferred Initial Public Offering Costs | Deferred Initial Public Offering Costs Costs incurred in connection with the IPO primarily consist of direct incremental legal, printing and accounting fees. IPO costs are capitalized as incurred and will be offset against proceeds upon consummation of the offering. In the event the offering had been terminated or abandoned, deferred IPO costs would have been expensed in the period such determination had been made. As of June 30, 2018 and December 31, 2017, there was $2.6 million and $0.2 million, respectively, of deferred IPO costs included in other long-term assets on the Company’s balance sheets. |
Lease Liabilities | Lease Liabilities The Company classifies the agreements for its office and laboratory facilities as an operating lease. Rent expense is recorded on a straight-line basis over the term of the lease. Differences that exist between cash rent payments and the recognition of rent expense, such as those resulting from rent abatements or contractual escalations of minimum lease payments, are recorded as a deferred rent liability and recognized as adjustments to rental expense on a straight-line basis over the term of the lease. The current portion of the deferred rent liability is included within accrued expenses and other current liabilities on the Company’s balance sheets. Noncurrent portion of deferred rent liability is classified as other long-term liabilities. Tenant improvement allowances received are recorded as lease incentive obligations included in accrued expenses and other current liabilities and other long-term liabilities on the Company’s balance sheets and are amortized to rent expense over the term of the lease. |
Term Loan Financing Costs | Term Loan Financing Costs During the three months and six months ended June 30, 2017, the Company recognized noncash interest expense of $25,000 and $50,000, respectively, related to its then outstanding debt facility. Noncash interest included the amortization and accretion of various costs incurred in connection with the issuance of the associated debt instruments and calculated using the effective interest rate method over the expected term of the debt. In December 2017, the Company repaid all outstanding debt. Noncash interest expense is included in interest income (expense), net, within the Company’s statements of operations and comprehensive loss. |
Research and Development Expense | Research and Development Expense Research and development costs are expensed as incurred. Research and development costs include, among others, consulting costs, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocation of facilities and overhead costs and external costs paid to third parties that conduct research and development activities on the Company’s behalf. Amounts incurred in connection with license agreements are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are deferred and included in prepaid expenses and other current assets. The deferred amounts are expensed as the related goods are delivered or the services are performed. |
Accrued Research and Development Costs | Accrued Research and Development Costs Service agreements with contract research organizations (“CROs”) and contract development and manufacturing organizations (“CDMOs”) comprise a significant component of the Company’s research and development activities. External costs for CROs and CDMOs are recognized as the services are incurred. The Company accrues for expenses resulting from obligations under agreements with its third parties for which the timing of payments does not match the periods over which the materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CROs, CDMOs and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes judgements and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CRO, CDMO or other outside service provider, the payments are recorded within prepaid expenses and other current assets and subsequently recognized as research and development expense when the associated services have been performed. As actual costs become known, the Company adjusts its liabilities and assets. Inputs, such as the extent of services received and the duration of services to be performed, may vary from the Company’s estimates, which will result in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. The Company’s historical estimates have not been materially different from actual amounts recorded. |
Convertible Preferred Stock | Convertible Preferred Stock The Company recorded all shares of convertible preferred stock net of offering costs at their respective fair values on the dates of issuance. The convertible preferred stock was recorded outside of stockholders’ deficit because, in the event of certain deemed liquidation events considered not solely within the Company’s control, such as a merger, acquisition or sale of all or substantially all of the Company’s assets, the convertible preferred stock will become redeemable at the option of the holders. In the event of a change of control of the Company, proceeds received from the sale of such shares will be distributed in accordance with the liquidation preferences set forth in the Company’s Second Amended and Restated Certificate of Incorporation unless the holders of convertible preferred stock had previously converted their shares of convertible preferred stock into shares of common stock. In connection with the completion of the IPO on July 23, 2018, all then outstanding shares of convertible preferred stock were converted into 30,971,627 shares of common stock. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for its stock-based compensation in accordance with FASB ASC Topic 718, Compensation—Stock Compensation Expected volatility – Due to the lack of a public market for the Company’s common stock and a lack of company-specific historical and implied volatility data, the Company has based its computation of expected volatility on the historical volatility of a representative group of public companies with similar characteristics to the Company, including stage of product development and life science industry focus. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. Expected term – The Company determines the expected term in accordance with the “simplified method” described by SEC Staff Accounting Bulletin No. 107, , as it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. Risk-free interest rate – The Company bases the risk-free interest rate on United States Treasury securities with terms consistent to the expected term of the stock option being valued. Expected dividends – The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. The Company uses historical data to estimate pre-vesting forfeitures and records stock-based compensation expense only for those awards expected to vest. To the extent that actual forfeitures differ from estimates, the difference is recorded as a cumulative adjustment in the period the estimates are revised. The Company expenses the fair value of its stock-based compensation awards to employees on a straight-line basis over the requisite service period, which is generally the vesting period. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in stockholders’ equity (deficit) during a period from transactions and other events and circumstances from non-owner sources and consists primarily of unrealized gains and losses on the Company’s investments in marketable securities. |
Net Loss per Share | Net Loss per Share The Company calculates basic net loss per share by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The Company calculates diluted net loss per share after giving consideration to all potentially dilutive securities outstanding during the period using the treasury-stock and if-converted methods, except where the effect of including such securities would be Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (9,377 ) $ (4,692 ) $ (17,862 ) $ (9,748 ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 2,248 1,477 2,137 1,449 Net loss per share, basic and diluted $ (4.17 ) $ (3.18 ) $ (8.36 ) $ (6.73 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Three and Six Months Ended June 30, 2018 2017 Series A convertible preferred stock 20,866 20,866 Series B convertible preferred stock 10,105 — Options to purchase common stock 6,529 4,666 Warrants to purchase common stock 48 48 Unvested restricted common stock 76 167 Total 37,624 25,747 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases . In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2018 2017 Cash and cash equivalents $ 19,295 $ 85,207 Restricted cash in long term assets, deposit for lease facility 802 — Total cash, cash equivalents and restricted cash $ 20,097 $ 85,207 |
Calculation of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (9,377 ) $ (4,692 ) $ (17,862 ) $ (9,748 ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 2,248 1,477 2,137 1,449 Net loss per share, basic and diluted $ (4.17 ) $ (3.18 ) $ (8.36 ) $ (6.73 ) |
Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share | The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Three and Six Months Ended June 30, 2018 2017 Series A convertible preferred stock 20,866 20,866 Series B convertible preferred stock 10,105 — Options to purchase common stock 6,529 4,666 Warrants to purchase common stock 48 48 Unvested restricted common stock 76 167 Total 37,624 25,747 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The Company’s financial assets measured at fair value on a recurring basis were as follows (in thousands): June 30, 2018 Level 1 Level 2 Level 3 Total Cash equivalents $ 13,771 $ — $ — $ 13,771 Marketable securities U.S. treasuries — 44,851 — 44,851 Total cash equivalents and marketable securities $ 13,771 $ 44,851 $ — $ 58,622 December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 82,526 $ — $ — $ 82,526 Total cash equivalents $ 82,526 $ — $ — $ 82,526 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost, Gross Unrealized Holding Gains or Losses, and Fair Value of Marketable Securities | All marketable securities were considered available-for-sale at June 30, 2018. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s marketable securities by major security type at June 30, 2018 are summarized in the table below (in thousands): June 30, 2018 Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Short-term marketable securities U.S. treasuries $ 44,848 $ 4 $ (1 ) $ 44,851 Total short-term marketable securities $ 44,848 $ 4 $ (1 ) $ 44,851 |
Balance Sheet Components and 21
Balance Sheet Components and Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): June 30, December 31, 2018 2017 Laboratory equipment $ 1,040 $ 949 Leasehold improvements 55 55 Construction in progress 2,959 — 4,054 1,004 Less accumulated depreciation (678 ) (559 ) Property and equipment, net $ 3,376 $ 445 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2018 2017 Accrued outside professional services $ 1,214 $ 787 Accrued compensation 1,707 265 Other current liabilities 161 37 Total $ 3,082 $ 1,089 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments Required Under Operating Leases | Future minimum lease payments required under operating leases are as follows (in thousands): Fiscal Year Ending December 31, 2018 (remaining 6 months) $ 210 2019 741 2020 1,239 2021 1,277 2022 1,315 Thereafter 9,429 Total minimum future lease payments $ 14,211 |
Convertible Preferred Stock a23
Convertible Preferred Stock and Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Summary of Common Stock Shares Reserved for Future Issuance | A summary of common stock shares reserved for future issuance upon the exercise, issuance or conversion of the respective equity instruments is as follows (in thousands): June 30, December 31, 2018 2017 Series A convertible preferred stock 26,083 26,083 Series B convertible preferred stock 12,632 12,632 Stock options issued and outstanding 6,529 4,884 Stock options available for future grant 285 2,346 Conversion of common stock warrants 48 48 Total 45,577 45,993 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Total Stock-Based Compensation Expense Recognized | Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Research and development $ 167 $ 42 $ 335 $ 69 General and administrative 272 67 717 86 Total $ 439 $ 109 $ 1,052 $ 155 |
Summary of Weighted-Average Assumptions Used to Calculate Fair Value of Stock-based Awards Granted | The following weighted-average assumptions were used to calculate the fair value of stock-based awards granted to employees and directors during the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Risk-free interest rate 2.93 % 1.79 % 2.66 % 1.79 % Expected volatility 75.00 % 78.00 % 76.66 % 78.00 % Expected dividend yield — — — — Expected term (in years) 6.08 6.08 5.99 6.08 |
Summary of Activity under 2012 Equity Incentive Plan | Activity under the 2012 Equity Incentive Plan, as amended, is summarized as follows (in thousands, except per share data): Weighted- Shares Average Available Options Exercise for Grant Outstanding Price Balance at December 31, 2017 2,346 4,884 $ 0.67 Granted (2,275 ) 2,275 $ 4.14 Exercised — (416 ) $ 0.70 Forfeited 214 (214 ) $ 0.50 Balance at June 30, 2018 285 6,529 $ 1.88 Options exercisable 3,573 $ 1.03 Options vested and expected to vest 6,464 $ 1.88 |
Organization and Business - Add
Organization and Business - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 23, 2018USD ($)$ / sharesshares | Jul. 06, 2018 | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jul. 26, 2018shares | Dec. 31, 2017USD ($) |
Organization and Business [Line Items] | ||||||||
Net loss | $ 9,377 | $ 4,692 | $ 17,862 | $ 9,748 | ||||
Cash used in operations | 17,449 | $ 10,021 | ||||||
Accumulated deficit | 78,436 | 78,436 | $ 60,574 | |||||
Cash, cash equivalents and marketable securities | $ 64,100 | $ 64,100 | ||||||
Subsequent Event | ||||||||
Organization and Business [Line Items] | ||||||||
Reverse stock split | 1-for-1.25 | |||||||
Reverse stock split ratio | 0.8 | |||||||
Common Stock | Subsequent Event | ||||||||
Organization and Business [Line Items] | ||||||||
Proceeds from IPO, net of underwriting discounts and commissions | $ 137,300 | |||||||
Proceeds from private placement | $ 4,500 | |||||||
Initial Public Offering | Common Stock | Subsequent Event | ||||||||
Organization and Business [Line Items] | ||||||||
Common stock shares sold | shares | 8,203,332 | |||||||
Common stock offering price per share | $ / shares | $ 18 | |||||||
Convertible preferred stock converted into shares of common stock | shares | 30,971,627 | 30,971,627 | ||||||
Private Placement | Common Stock | Subsequent Event | ||||||||
Organization and Business [Line Items] | ||||||||
Common stock shares sold | shares | 250,000 | |||||||
Common stock offering price per share | $ / shares | $ 18 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 19,295 | $ 85,207 | ||
Restricted cash in long term assets, deposit for lease facility | 802 | 0 | ||
Total cash, cash equivalents and restricted cash | $ 20,097 | $ 85,207 | $ 3,377 | $ 13,416 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 26, 2018 | Jul. 23, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Restricted cash | $ 0 | $ 0 | $ 0 | ||||
Non-cash interest related to debt facility | $ 25,000 | $ 0 | $ 50,000 | ||||
Expected dividend yield | 0.00% | ||||||
Restricted cash in long term assets, deposit for lease facility | $ 802,000 | $ 0 | |||||
ASU 2016-18 | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Restricted cash in long term assets, deposit for lease facility | 0 | ||||||
Initial Public Offering | Subsequent Event | Common Stock | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Convertible preferred stock converted into shares of common stock | 30,971,627 | 30,971,627 | |||||
Initial Public Offering | Other Long-Term Assets | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred IPO costs | $ 2,600,000 | $ 200,000 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net loss | $ (9,377) | $ (4,692) | $ (17,862) | $ (9,748) |
Weighted-average number of common shares outstanding: | ||||
Weighted-average shares of common stock outstanding, basic and diluted | 2,248 | 1,477 | 2,137 | 1,449 |
Net loss per share, basic and diluted | $ (4.17) | $ (3.18) | $ (8.36) | $ (6.73) |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 37,624 | 25,747 | 37,624 | 25,747 |
Series A Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 20,866 | 20,866 | 20,866 | 20,866 |
Series B Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 10,105 | 10,105 | ||
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 6,529 | 4,666 | 6,529 | 4,666 |
Warrants to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 48 | 48 | 48 | 48 |
Unvested Restricted Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 76 | 167 | 76 | 167 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | $ 44,851 | $ 0 |
Fair Value, Measurements, Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 58,622 | 82,526 |
Fair Value, Measurements, Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 13,771 | 82,526 |
Fair Value, Measurements, Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 44,851 | 0 |
Fair Value, Measurements, Recurring Basis | Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 13,771 | 82,526 |
Fair Value, Measurements, Recurring Basis | Cash Equivalents | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 13,771 | 82,526 |
Fair Value, Measurements, Recurring Basis | Cash Equivalents | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | |
Fair Value, Measurements, Recurring Basis | U.S. Treasuries | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | 44,851 | |
Fair Value, Measurements, Recurring Basis | U.S. Treasuries | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | $ 44,851 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Transfers of assets between level 1 to level 2 | $ 0 | $ 0 | $ 0 | $ 0 |
Transfers of assets between level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of liabilities between level 1 to level 2 | 0 | 0 | 0 | 0 |
Transfers of liabilities between level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of assets into level 3 | 0 | 0 | 0 | 0 |
Transfers of assets out of level 3 | 0 | 0 | 0 | 0 |
Transfers of liabilities into level 3 | 0 | 0 | 0 | 0 |
Transfers of liabilities out of level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Marketable Securities - Summary
Marketable Securities - Summary of Amortized Cost, Gross Unrealized Holding Gains or Losses, and Fair Value of Marketable Securities (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost Basis | $ 44,848 |
Unrealized Gains | 4 |
Unrealized Losses | (1) |
Fair Value | 44,851 |
U.S. Treasuries | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost Basis | 44,848 |
Unrealized Gains | 4 |
Unrealized Losses | (1) |
Fair Value | $ 44,851 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Other-than-temporary impairments on marketable securities | $ 0 | $ 0 | |
Marketable securities | $ 0 |
Balance Sheet Components and 34
Balance Sheet Components and Supplemental Disclosures - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,054 | $ 1,004 |
Less accumulated depreciation | (678) | (559) |
Property and equipment, net | 3,376 | 445 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,040 | 949 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 55 | 55 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,959 | $ 0 |
Balance Sheet Components and 35
Balance Sheet Components and Supplemental Disclosures - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization | $ 58,000 | $ 62,000 | $ 119,000 | $ 113,000 |
Balance Sheet Components and 36
Balance Sheet Components and Supplemental Disclosures - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Accrued outside professional services | $ 1,214 | $ 787 |
Accrued compensation | 1,707 | 265 |
Other current liabilities | 161 | 37 |
Total | $ 3,082 | $ 1,089 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 55 Months Ended | 57 Months Ended | |||||
Jan. 31, 2018USD ($) | Aug. 31, 2015Provision | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Leaseshares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2018USD ($)shares | Dec. 31, 2017shares | Dec. 31, 2013shares | |
Commitments And Contingencies [Line Items] | ||||||||||
Number of noncancelable operating leases | Lease | 2 | |||||||||
Noncancelable operating leases expiration beginning period | 2019-06 | |||||||||
Numbe of lease renewal provisions | Provision | 2 | |||||||||
Lease term additional extension period | 1 year | |||||||||
Net rent expense | $ 300,000 | $ 100,000 | $ 400,000 | $ 200,000 | ||||||
Non-cancelable purchase obligations | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Common stock, shares issued | shares | 2,529,726 | 2,529,726 | 2,529,726 | 2,529,726 | 2,114,000 | |||||
In-Licensing Agreements | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Milestone expense | $ 0 | $ 0 | $ 300,000 | $ 0 | ||||||
Accrued Royalties | 0 | 0 | $ 0 | $ 0 | ||||||
Exclusive License Agreement with The Johns Hopkins University | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Upfront and milestone payments | 300,000 | |||||||||
Common stock, shares issued | shares | 88,887 | |||||||||
Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Milestone payments | 400,000 | |||||||||
Maximum | Exclusive License Agreement with The Johns Hopkins University | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Aggregate additional milestone payments | 4,000,000 | |||||||||
Maximum | Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Aggregate additional milestone payments | 41,000,000 | |||||||||
Minimum | Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Annual commercial license fees | 40,000 | |||||||||
Redwood City Lease Agreement | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Lease term additional extension period | 5 years | |||||||||
Lease agreement initiation period | 2018-01 | |||||||||
Base term of lease | 10 years 9 months | |||||||||
Security deposit | $ 800,000 | |||||||||
Lease incentive obligations | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||||||
Redwood City Lease Agreement | Maximum | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Tenant improvement allowance | $ 1,400,000 |
Commitments and Contingencies38
Commitments and Contingencies - Summary of Future Minimum Lease Payments Required Under Operating Leases (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2018 (remaining 6 months) | $ 210 |
2,019 | 741 |
2,020 | 1,239 |
2,021 | 1,277 |
2,022 | 1,315 |
Thereafter | 9,429 |
Total minimum future lease payments | $ 14,211 |
Convertible Preferred Stock a39
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Total number of shares, authorized to issue | 93,714,587 | |
Common stock shares, authorized to issue | 55,000,000 | 55,000,000 |
Common stock, shares issued | 2,529,726 | 2,114,000 |
Common stock, shares outstanding | 2,529,726 | 2,114,000 |
Common stock, dividends declared | $ 0 | |
Preferred Stock | ||
Class Of Stock [Line Items] | ||
Preferred stock shares, authorized to issue | 38,714,587 | |
Series A Shares | ||
Class Of Stock [Line Items] | ||
Preferred stock shares, authorized to issue | 26,083,081 | 26,083,000 |
Series B Shares | ||
Class Of Stock [Line Items] | ||
Preferred stock shares, authorized to issue | 12,631,506 | 12,632,000 |
Convertible Preferred Stock a40
Convertible Preferred Stock and Stockholders' Deficit - Summary of Common Stock Shares Reserved for Future Issuance (Details) - shares shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Class Of Stock [Line Items] | ||
Common stock shares reserved for future issuance | 45,577 | 45,993 |
Series A Convertible Preferred Stock | ||
Class Of Stock [Line Items] | ||
Common stock shares reserved for future issuance | 26,083 | 26,083 |
Series B Convertible Preferred Stock | ||
Class Of Stock [Line Items] | ||
Common stock shares reserved for future issuance | 12,632 | 12,632 |
Stock Options Issued and Outstanding | ||
Class Of Stock [Line Items] | ||
Common stock shares reserved for future issuance | 6,529 | 4,884 |
Stock Options Available for Future Grant | ||
Class Of Stock [Line Items] | ||
Common stock shares reserved for future issuance | 285 | 2,346 |
Conversion of Common Stock Warrants | ||
Class Of Stock [Line Items] | ||
Common stock shares reserved for future issuance | 48 | 48 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 439 | $ 109 | $ 1,052 | $ 155 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 167 | 42 | 335 | 69 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 272 | $ 67 | $ 717 | $ 86 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Tax benefits for stock-based compensation expense recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Total unrecognized stock-based compensation expense relating to unvested stock options | $ 6,700,000 | $ 6,700,000 | ||
Performance-Based Vesting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options granted | 0 | 0 | ||
Market-Based Vesting | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options granted | 0 | 0 | ||
Service-Based Vesting | Non-Employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options granted | 0 | 0 | ||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted-average recognition period | 3 years |
Stock-Based Compensation - Su43
Stock-Based Compensation - Summary of Weighted-Average Assumptions Used to Calculate Fair Value of Stock-based Awards Granted (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | |||
Employees and Directors | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 2.93% | 1.79% | 2.66% | 1.79% |
Expected volatility | 75.00% | 78.00% | 76.66% | 78.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 6 years 29 days | 6 years 29 days | 5 years 11 months 26 days | 6 years 29 days |
Stock-Based Compensation - Su44
Stock-Based Compensation - Summary of Activity under 2012 Equity Incentive Plan (Details) - 2012 Equity Incentive Plan - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares Available for Grant, Beginning balance | 2,346 |
Shares Available for Grant, Granted | (2,275) |
Shares Available for Grant, Forfeited | 214 |
Shares Available for Grant, Ending balance | 285 |
Options Outstanding, Beginning balance | 4,884 |
Options Outstanding, Granted | 2,275 |
Options Outstanding, Exercised | (416) |
Options Outstanding, forfeited | (214) |
Options Outstanding, Ending balance | 6,529 |
Options Outstanding, Options exercisable | 3,573 |
Options Outstanding, Options vested and expected to vest | 6,464 |
Weighted Average Exercise Price, Beginning balance | $ 0.67 |
Weighted Average Exercise Price, Granted | 4.14 |
Weighted Average Exercise Price, Exercised | 0.70 |
Weighted Average Exercise Price, Forfeited | 0.50 |
Weighted Average Exercise Price, Ending balance | 1.88 |
Weighted Average Exercise Price, Options exercisable | 1.03 |
Weighted Average Exercise Price, Options vested and expected to vest | $ 1.88 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
401(K) Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions made by employer | $ 59,000 | $ 118,000 | ||
Employer contribution matching percentage | 4.00% | |||
SIMPLE IRA Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions made by employer | $ 21,000 | $ 51,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |||
Proceeds from fully recourse promissory note | $ 50,000 | $ 0 | |
Loan interest rate per annum | 2.97% | ||
Loan maturity date | Sep. 19, 2024 | ||
Notes repayment date | 2018-06 | ||
Series A Convertible Preferred Stock | |||
Related Party Transaction [Line Items] | |||
Proceeds from fully recourse promissory note | $ 50,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event $ / shares in Units, $ in Millions | Jul. 23, 2018USD ($)$ / sharesshares | Jul. 06, 2018 | Jul. 26, 2018shares |
Subsequent Event [Line Items] | |||
Reverse stock split | 1-for-1.25 | ||
Reverse stock split ratio | 0.8 | ||
Common Stock | |||
Subsequent Event [Line Items] | |||
Proceeds from IPO, net of underwriting discounts and commissions | $ | $ 137.3 | ||
Proceeds from private placement | $ | $ 4.5 | ||
Initial Public Offering | Common Stock | |||
Subsequent Event [Line Items] | |||
Convertible preferred stock converted into shares of common stock | 30,971,627 | 30,971,627 | |
Common stock shares sold | 8,203,332 | ||
Common stock offering price per share | $ / shares | $ 18 | ||
Private Placement | Common Stock | |||
Subsequent Event [Line Items] | |||
Common stock shares sold | 250,000 | ||
Common stock offering price per share | $ / shares | $ 18 |