Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract] | |
Document Type | S-4 |
Amendment Flag | false |
Entity Registrant Name | Spring Bank Pharmaceuticals, Inc. |
Entity Central Index Key | 0001566373 |
Entity Filer Category | Accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 8,531 | $ 28,709 | $ 14,724 |
Marketable securities | 14,990 | 25,746 | 32,914 |
Prepaid expenses and other current assets | 2,717 | 3,522 | 1,649 |
Total current assets | 26,238 | 57,977 | 49,287 |
Marketable securities, long-term | 16,804 | ||
Property and equipment, net | 2,043 | 2,234 | 2,319 |
Operating lease right-of-use assets | 2,576 | 2,717 | |
Restricted cash | 234 | 234 | 234 |
Other assets | 35 | 167 | |
Total | 31,091 | 63,197 | 68,811 |
Current liabilities: | |||
Accounts payable | 2,530 | 2,210 | 1,880 |
Accrued expenses and other current liabilities | 2,239 | 2,438 | 2,367 |
Accrued interest payable | 403 | ||
Operating lease liabilities, current | 364 | 355 | |
Total current liabilities | 5,133 | 5,406 | 4,247 |
Convertible term loan, net of unamortized discount | 19,070 | ||
Warrant liabilities | 38 | 299 | 8,511 |
Operating lease liabilities, noncurrent | 2,688 | 2,869 | |
Other long-term liabilities | 27 | 193 | |
Total liabilities | 7,859 | 27,671 | 12,951 |
Commitments and contingencies (Note 11) | |||
Stockholders' equity: | |||
Preferred stock | 0 | 0 | 0 |
Common stock | 2 | 2 | 2 |
Additional paid-in capital | 164,118 | 161,924 | 157,931 |
Accumulated deficit | (140,887) | (126,165) | (102,068) |
Accumulated other comprehensive loss | (1) | (235) | (5) |
Total stockholders' equity | 23,232 | 35,526 | 55,860 |
Total | $ 31,091 | $ 63,197 | $ 68,811 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 17,248,545 | 16,513,763 | 16,434,614 |
Common stock, shares outstanding | 17,248,545 | 16,513,763 | 16,434,614 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating expenses: | ||||||
Research and development | $ 3,204 | $ 7,275 | $ 8,507 | $ 12,842 | $ 23,270 | $ 19,751 |
General and administrative | 2,164 | 2,490 | 5,043 | 5,300 | 9,751 | 8,719 |
Total operating expenses | 5,368 | 9,765 | 13,550 | 18,142 | 33,021 | 28,470 |
Loss from operations | (5,368) | (9,765) | (13,550) | (18,142) | (33,021) | (28,470) |
Other income (expense): | ||||||
Interest income | 44 | 325 | 285 | 686 | 1,254 | 999 |
Interest expense | (35) | (511) | (542) | |||
Loss on extinguishment of convertible term loan | (1,207) | (1,207) | ||||
Change in fair value of warrant liabilities | 22 | 4,885 | 261 | 7,706 | 8,212 | 4,617 |
Net loss | (6,544) | (4,555) | (14,722) | (9,750) | (24,097) | (22,854) |
Unrealized gain/(loss) on marketable securities | 157 | (97) | 234 | (213) | (230) | 18 |
Comprehensive loss | $ (6,387) | $ (4,652) | $ (14,488) | $ (9,963) | $ (24,327) | $ (22,836) |
Net loss per common share: | ||||||
Basic | $ (1.46) | $ (1.59) | ||||
Diluted | $ (1.46) | $ (1.88) | ||||
Weighted-average number of shares outstanding: | ||||||
Basic | 16,454,083 | 14,372,174 | ||||
Diluted | 16,454,083 | 14,618,976 | ||||
Net loss per common share - basic and diluted | $ (0.38) | $ (0.28) | $ (0.88) | $ (0.59) | $ (1.46) | |
Weighted-average number of shares outstanding - basic and diluted | 17,052,088 | 16,443,379 | 16,787,919 | 16,440,192 | 16,454,083 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | At-The-Market Offering [Member] | Common Stock [Member] | Common Stock [Member]At-The-Market Offering [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]At-The-Market Offering [Member] | Accumulated Deficit [Member] | Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2017 | $ 34,748 | $ 1 | $ 113,984 | $ (79,214) | $ (23) | |||
Balance, shares at Dec. 31, 2017 | 12,961,993 | |||||||
Stock-based compensation | 2,662 | 2,662 | ||||||
Issuance of common stock for services rendered | 114 | 114 | ||||||
Issuance of common stock for services rendered, shares | 9,213 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 37,960 | $ 1 | 37,959 | |||||
Issuance of common stock in connection with at-the-market offering, shares | 3,212 | 3,246,079 | 217,329 | 3,212 | ||||
Net unrealized gain (loss) on marketable securities | 18 | 18 | ||||||
Net loss | (22,854) | (22,854) | ||||||
Balance at Dec. 31, 2018 | 55,860 | $ 2 | 157,931 | (102,068) | (5) | |||
Balance, shares at Dec. 31, 2018 | 16,434,614 | |||||||
Stock-based compensation | 1,895 | 1,895 | ||||||
Issuance of common stock for services rendered | 143 | 143 | ||||||
Issuance of common stock for services rendered, shares | 23,941 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | $ 6 | $ 6 | ||||||
Issuance of common stock in connection with at-the-market offering, shares | 600 | |||||||
Net unrealized gain (loss) on marketable securities | (213) | (213) | ||||||
Net loss | (9,750) | (9,750) | ||||||
Balance at Jun. 30, 2019 | 47,941 | $ 2 | 159,975 | (111,818) | (218) | |||
Balance, shares at Jun. 30, 2019 | 16,459,155 | |||||||
Balance at Dec. 31, 2018 | 55,860 | $ 2 | 157,931 | (102,068) | (5) | |||
Balance, shares at Dec. 31, 2018 | 16,434,614 | |||||||
Stock-based compensation | 3,130 | 3,130 | ||||||
Issuance of common stock for services rendered | 261 | 261 | ||||||
Issuance of common stock for services rendered, shares | 78,549 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 6 | 6 | ||||||
Issuance of common stock in connection with at-the-market offering, shares | 600 | |||||||
Issuance of warrants in connection with term loan | 552 | 552 | ||||||
Issuance of warrants to a service provider | 19 | 19 | ||||||
Offering costs in connection with common stock offering | 25 | 25 | ||||||
Net unrealized gain (loss) on marketable securities | (230) | (230) | ||||||
Net loss | (24,097) | (24,097) | ||||||
Balance at Dec. 31, 2019 | 35,526 | $ 2 | 161,924 | (126,165) | (235) | |||
Balance, shares at Dec. 31, 2019 | 16,513,763 | |||||||
Balance at Mar. 31, 2019 | 51,546 | $ 2 | 158,928 | (107,263) | (121) | |||
Balance, shares at Mar. 31, 2019 | 16,442,532 | |||||||
Stock-based compensation | 982 | 982 | ||||||
Issuance of common stock for services rendered | 59 | 59 | ||||||
Issuance of common stock for services rendered, shares | 16,023 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 6 | 6 | ||||||
Issuance of common stock in connection with at-the-market offering, shares | 600 | |||||||
Net unrealized gain (loss) on marketable securities | (97) | (97) | ||||||
Net loss | (4,555) | (4,555) | ||||||
Balance at Jun. 30, 2019 | 47,941 | $ 2 | 159,975 | (111,818) | (218) | |||
Balance, shares at Jun. 30, 2019 | 16,459,155 | |||||||
Balance at Dec. 31, 2019 | 35,526 | $ 2 | 161,924 | (126,165) | (235) | |||
Balance, shares at Dec. 31, 2019 | 16,513,763 | |||||||
Stock-based compensation | 1,241 | 1,241 | ||||||
Issuance of common stock for services rendered | 50 | 50 | ||||||
Issuance of common stock for services rendered, shares | 43,887 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 849 | 849 | ||||||
Issuance of common stock in connection with at-the-market offering, shares | 690,895 | |||||||
Convertible term loan warrant amendment | 54 | 54 | ||||||
Net unrealized gain (loss) on marketable securities | 234 | 234 | ||||||
Net loss | (14,722) | (14,722) | ||||||
Balance at Jun. 30, 2020 | 23,232 | $ 2 | 164,118 | (140,887) | (1) | |||
Balance, shares at Jun. 30, 2020 | 17,248,545 | |||||||
Balance at Mar. 31, 2020 | 28,272 | $ 2 | 162,771 | (134,343) | (158) | |||
Balance, shares at Mar. 31, 2020 | 16,582,444 | |||||||
Stock-based compensation | 449 | 449 | ||||||
Issuance of common stock for services rendered | 25 | 25 | ||||||
Issuance of common stock for services rendered, shares | 17,006 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | $ 819 | $ 819 | ||||||
Issuance of common stock in connection with at-the-market offering, shares | 649,095 | |||||||
Convertible term loan warrant amendment | 54 | 54 | ||||||
Net unrealized gain (loss) on marketable securities | 157 | 157 | ||||||
Net loss | (6,544) | (6,544) | ||||||
Balance at Jun. 30, 2020 | $ 23,232 | $ 2 | $ 164,118 | $ (140,887) | $ (1) | |||
Balance, shares at Jun. 30, 2020 | 17,248,545 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||||
Net loss | $ (14,722) | $ (9,750) | $ (24,097) | $ (22,854) |
Adjustments for: | ||||
Depreciation and amortization | 191 | 171 | 357 | 288 |
Loss on disposal of property and equipment | 52 | |||
Operating lease right-of-use asset amortization | 141 | 130 | 263 | |
Change in fair value of warrant liabilities | (261) | (7,706) | (8,212) | (4,617) |
Loss on extinguishment of convertible term loan | 1,207 | |||
Non-cash interest expense | 77 | 86 | 337 | |
Non-cash investment income (expense) | (244) | 72 | (28) | |
Non-cash stock-based compensation | 1,291 | 2,013 | 3,367 | 2,776 |
Non-cash issuance of warrants to a service provider | 19 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | 805 | (753) | (1,873) | (1,069) |
Other assets | 35 | 132 | 132 | (132) |
Accounts payable | 320 | (155) | 330 | 180 |
Accrued expenses and other liabilities | (629) | 1,081 | 358 | (205) |
Accrued interest payable | 403 | |||
Operating lease liabilities | (172) | (160) | ||
Net cash used in operating activities | (11,961) | (14,765) | (29,055) | (25,244) |
Cash flows from investing activities: | ||||
Proceeds from sale of marketable securities | 32,234 | 16,787 | 38,770 | 34,869 |
Purchases of marketable securities | (21,000) | (6,000) | (15,000) | (58,000) |
Purchases of property and equipment | (205) | (272) | (1,972) | |
Net cash provided by investing activities | 11,234 | 10,582 | 23,498 | (25,103) |
Cash flows from financing activities: | ||||
Proceeds from term loan and warrants | 20,000 | |||
Issuance costs in connection with term loan and warrants | (464) | |||
Proceeds from issuance of common stock, net of issuance costs | 37,960 | |||
Payment of convertible term loan and prepayment fee | (20,300) | |||
Proceeds from issuance of common stock in connection with at-the-market offering, net of issuance costs | 849 | 6 | 6 | 3,212 |
Cash (used in) provided by financing activities | (19,451) | 6 | 19,542 | 41,172 |
Net decrease in cash, cash equivalents and restricted cash | (20,178) | (4,177) | 13,985 | (9,175) |
Cash, cash equivalents and restricted cash, beginning of period | 28,943 | 14,958 | 14,958 | 24,133 |
Cash, cash equivalents and restricted cash, end of period | 8,765 | 10,781 | 28,943 | 14,958 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for taxes | 7 | $ 17 | 30 | $ 3 |
Cash paid for interest, net | $ 837 | $ 53 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Nature of Business and Summary of Significant Accounting Policies | 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Spring Bank Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company engaged in the discovery and development of novel therapeutics for the treatment of a range of cancers and inflammatory diseases using its proprietary small molecule nucleotide platform. The Company designs its compounds to selectively target and modulate the activity of specific proteins implicated in various disease states. The Company’s internally-developed programs are primarily designed to stimulate and/or dampen immune responses. The Company is devoting its resources to advancing multiple programs in its STING (STimulator of INterferon Genes) product portfolio. Until January 2020, the Company was also developing inarigivir, an orally-administered investigational selective immunomodulator, as a potential treatment for chronic hepatitis B virus, or HBV. Inarigivir was being evaluated in multiple clinical trials, including the Company’s Phase 2b CATALYST trials, designed to evaluate both treatment-naïve non-cirrhotic On July 29, 2020, the Company and F-star (“F-star”) F-star F-star Since its inception in 2002 and prior to its initial public offering (“IPO”) in May 2016, the Company built its technology platform and product candidate pipeline, supported by grants and through private financings. The Company has three wholly owned subsidiaries: Sperovie Biosciences, Inc. formed in September 2015, SBP Securities Corporation formed in December 2016 and SBP International Limited formed in May 2019. The Company’s success is dependent upon its ability to successfully complete clinical development and obtain regulatory approval of its product candidates, successfully commercialize approved products, generate revenue, and, ultimately, attain profitable operations. The pandemic caused by an outbreak of a new strain of coronavirus, or the COVID-19 COVID-19 COVID-19, Basis of Presentation and Liquidity The accompanying consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). The accompanying interim financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019, and related interim information contained within the notes to the financial statements, are unaudited. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the Company’s audited financial statements and include all adjustments (including normal recurring adjustments) necessary for the fair presentation of the Company’s financial position as of June 30, 2020, results of operations for the three and six months ended June 30, 2020 and 2019, statement of stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and its cash flows for the six months ended June 30, 2020 and 2019. These interim financial statements should be read in conjunction with the Company’s audited financial statements and accompanying notes contained in the Company’s Annual Report on Form 10-K As of June 30, 2020, the Company had an accumulated deficit of $140.9 million and $23.5 million in cash, cash equivalents and marketable securities. On April 8, 2020, the Company repaid in full its $20.0 million convertible term loan (see Note 9). There is no guarantee that the Exchange will be completed. The Company expects its $23.5 million in cash, cash equivalents and marketable securities as of June 30, 2020 will be sufficient to fund operations for at least the next twelve months. This estimate assumes no additional funding from new collaboration agreements, equity financings or further sales under the Company’s Controlled Equity Offering SM The Company does not expect to raise any additional funds prior to the completion of the Exchange. However, if the Exchange is not completed, the Company may require significant additional funds earlier than it currently expects in order to conduct clinical trials and preclinical and discovery activities. There can be no assurances, however, that additional funding will be available on favorable terms, or at all. To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, stockholders’ ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect common stockholder rights. If the Company raises additional funds through collaborations, strategic alliances or licensing arrangements with third parties, the Company may have to relinquish valuable rights to its technologies, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to the Company. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Sperovie Biosciences, Inc., SBP Securities Corporation and SBP International Limited. Sperovie Biosciences, Inc. had operations consisting mainly of legal fees associated with intellectual property activities as of June 30, 2020. Sperovie Biosciences, Inc. was a joint borrower with the Company under the Company’s convertible term loan (see Note 9). SBP Securities Corporation had assets primarily related to investments in marketable securities and operations consisting primarily of interest income as of June 30, 2020. SBP International Limited had operations consisting mainly of clinical trial oversight, including European data protection oversight, as of June 30, 2020. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates relied upon in preparing the accompanying financial statements related to the fair value of warrants, accounting for stock-based compensation, income taxes, useful lives of long-lived assets, and accounting for certain accruals. The Company evaluates Cash and Cash Equivalents Cash equivalents are stated at fair value and include short-term, highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Included in cash and cash equivalents as of June 30, 2020 are money market fund investments of $7.0 million and included in cash and cash equivalents as of December 31, 2019 are money market fund investments of $21.1 million and United States treasury securities of $6.0 million, which are reported at fair value (see Note 5). Restricted Cash As of June 30, 2020 and December 31, 2019, restricted cash consists of approximately $234,000, which is held as a security deposit required in conjunction with a lease agreement for the Company’s principal office and laboratory space entered into in October 2017. Concentration of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and marketable securities. Substantially all of the Company’s cash is held at financial institutions that management believes to be of high credit quality. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits may be redeemed upon demand and, therefore, bear minimal risk. Investments in Marketable Securities The Company invests excess cash balances in short-term and long-term marketable securities. The Company classifies investments in marketable securities as either held-to-maturity available-for-sale available-for-sale. available-for-sale Property and Equipment, Net Property and equipment are recorded at cost. Costs associated with maintenance and repairs are expensed as incurred. Depreciation is provided using the straight-line method over the estimated useful lives: Asset Category Useful Life Equipment 5-7 Furniture and fixtures 5 years Leasehold improvements Lesser of 10 years term of the respective lease Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. This is the rate the Company would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Impairment of Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If the undiscounted cash flows are insufficient to recover the carrying value, an impairment loss is recorded for the difference between the carrying value and fair value of the asset. As of June 30, 2020, no such impairment has occurred. Research and Development Costs Research and development expenses consist primarily of costs incurred for the Company’s research activities, including discovery efforts, and the development of product candidates, which include: • expenses incurred under agreements with third parties, including contract research organizations, or CROs, that conduct research, preclinical activities and clinical trials on the Company’s behalf as well as contract manufacturing organizations, or CMOs, that manufacture drug products for use in the Company’s preclinical and clinical trials; • salaries, benefits and other related costs, including stock-based compensation expense, for personnel in the Company’s research and development functions; • costs of outside consultants, including their fees, stock-based compensation and related travel expenses; • the cost of laboratory supplies and acquiring, developing and manufacturing preclinical study and clinical trial materials; • costs related to compliance with regulatory requirements; and • facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs. The Company expenses research and development costs as incurred. The Company recognizes external development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its vendors and its clinical investigative sites. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected in the Company’s consolidated financial statements as prepaid or accrued research and development expenses. Warrants The Company accounts for freestanding warrants within stockholders equity or as liabilities based on the characteristics and provisions of each instrument. The Company evaluates outstanding warrants in accordance with ASC 480, Distinguishing Liabilities from Equity Derivatives and Hedging Stock-Based Compensation The Company’s stock-based payments include stock options, performance-based restricted stock units (“performance-based RSUs”), time-based restricted stock units (“time-based RSUs”) and grants of common stock. The Company accounts for all stock-based payment awards granted to employees and nonemployees using a fair value method. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employees’ requisite service period, which is generally the vesting period, on a straight-line basis. The Company accounts for forfeitures as they occur. The Company measures the fair value of the performance-based RSUs relating to the total share return performance using a Monte Carlo valuation model. The Company measures the fair value of the performance-based RSUs relating to the milestone performance goals using the fair value method and the probability that the specified performance criteria will be met. Each quarter the Company updates its assessment of the probability that the specified milestone criteria will be achieved and adjusts its estimate of the fair value, if necessary. Stock-based compensation expense is classified in the accompanying consolidated statements of operations and comprehensive loss based on the department to which the related services are provided. Financial Instruments The Company’s financial instruments consist of cash equivalents, marketable securities, accounts payable, a term loan and liability classified warrants. The carrying amounts of cash and cash equivalents and accounts payable approximate their fair value due to the short-term nature of those financial instruments. The fair value of the marketable securities and liability classified warrants are remeasured to fair value each reporting period (see Note 5). The fair value of the term loan approximates its face value due to market terms. Fair Value Measurements The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as if-converted For the three and six months ended June 30, 2020 and 2019, both methods are equivalent. Basic and diluted net loss per share is described further in Note 2. Income Taxes Deferred tax assets and liabilities are determined based upon the differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities as well as net operating loss and tax credit carryforwards using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit is recognized in the consolidated financial statements. The Company classifies interest and penalties associated with such uncertain tax positions as a component of interest expense. As of June 30, 2020 and December 31, 2019, the Company has not identified any material uncertain tax positions. Guarantees and Indemnifications As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The Company leases its principal office and laboratory space in Hopkinton, Massachusetts under a non-cancelable Through June 30, 2020, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations, and consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established. Segment Information Operating segments are identified as components of an enterprise about which separate and discrete financial information is available for evaluation by the chief operating decision maker, the Company’s chief executive officer, in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment and does not track expenses on a program-by-program Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirement for Fair Value Measurement . | 1. NATURE OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Spring Bank Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company engaged in the discovery and development of novel therapeutics for the treatment of a range of cancers and inflammatory diseases using its proprietary small molecule nucleotide platform. The Company designs its compounds to selectively target and modulate the activity of specific proteins implicated in various disease states. The Company’s internally-developed programs are primarily designed to stimulate and/or dampen immune responses. The Company is devoting its resources to advancing multiple programs in its STING (STimulator of INterferon Genes) product portfolio. Until recently, the Company was focused on developing inarigivir for the treatment of chronic hepatitis B virus, or HBV. Inarigivir was being evaluated in multiple clinical trials, including the Company’s Phase 2b CATALYST trials, designed to evaluate both treatment-naïve non-cirrhotic Since its inception in 2002 and prior to its initial public offering (“IPO”) in May 2016, the Company built its technology platform and product candidate pipeline, supported by grants and through private financings. The Company has three wholly owned subsidiaries: Sperovie Biosciences, Inc. formed in September 2015, SBP Securities Corporation formed in December 2016 and SBP International Limited formed in May 2019. The Company’s success is dependent upon its ability to successfully complete clinical development and obtain regulatory approval of its product candidates, successfully commercialize approved products, generate revenue, and, ultimately, attain profitable operations. Basis of Presentation and Liquidity The accompanying consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). As of December 31, 2019, the Company had an accumulated deficit of $126.2 million and $54.5 million in cash, cash equivalents and marketable securities. The Company expects to continue to incur significant and increasing losses for the foreseeable future. The Company anticipates that its expenses will increase significantly as it continues to develop SB 11285 and its other product candidates. The Company does not have any committed external source of funds. As a result, the Company will need additional financing to support its continuing operations. Adequate additional funds may not be available to the Company on acceptable terms, or at all. To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, stockholders’ ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect common stockholder rights. If the Company raises additional funds through collaborations, strategic alliances or licensing arrangements with third parties, the Company may have to relinquish valuable rights to its technologies, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to the Company. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Sperovie Biosciences, Inc., SBP Securities Corporation and SBP International Limited. Sperovie Biosciences, Inc. had operations consisting mainly of legal fees associated with intellectual property activities as of December 31, 2019. Sperovie Biosciences, Inc. is a joint borrower with the Company under the Company’s term loan (see Note 9). SBP Securities Corporation had assets primarily related to investments in marketable securities and operations consisting primarily of interest income as of December 31, 2019. SBP International Limited had operations consisting mainly of clinical trial oversight, including European data protection oversight, as of December 31, 2019. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates relied upon in preparing the accompanying financial statements related to the fair value of warrant liabilities, accounting for stock-based compensation, income taxes, useful lives of long-lived assets, and accounting for certain accruals. The Company evaluates its estimates and assumptions on an ongoing basis. The Company’s actual results may differ from these estimates. Cash and Cash Equivalents Cash equivalents are stated at fair value and include short-term, highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Included in cash and cash equivalents as of December 31, 2019 are money market fund investments of $21.1 million and United States treasury securities of $6.0 million, which are reported at fair value. As of December 31, 2018, included in cash and cash equivalents are money market fund investments of $13.3 million, which are reported at fair value (Note 5). Restricted Cash As of December 31, 2019 and 2018, restricted cash consisted of approximately $234,000, which is held as a security deposit required in conjunction with the lease agreement for the Company’s principal office and laboratory space entered into in October 2017. Concentration of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and marketable securities. Substantially all of the Company’s cash is held at financial institutions that management believes to be of high-credit quality. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits may be redeemed upon demand and, therefore, bear minimal risk. Investments in Marketable Securities The Company invests excess cash balances in short-term and long-term marketable securities. The Company classifies investments in marketable securities as either held-to-maturity available-for-sale available-for-sale. available-for-sale accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses are determined using the specific Property and Equipment, Net Property and equipment are recorded at cost. Costs associated with maintenance and repairs are expensed as incurred. Depreciation and amortization are provided using the straight-line method over the estimated useful lives: Asset Category Useful Life Equipment 5-7 Furniture and fixtures 5 years Leasehold improvements Lesser of 10 years term of the respective lease Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of a lease based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. This is the rate the Company would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentive amounts. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Impairment of Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If the undiscounted cash flows are insufficient to recover the carrying value, an impairment loss is recorded for the difference between the carrying value and fair value of the asset. Through December 31, 2019, no such impairment has occurred. Research and Development Costs Research and development expenses consist primarily of costs incurred for the Company’s research activities, including discovery efforts, and the development of product candidates, which include: • expenses incurred under agreements with third parties, including contract research organizations, or CROs, that conduct research, preclinical activities and clinical trials on the Company’s behalf as well as contract manufacturing organizations, or CMOs, that manufacture drug products for use in the Company’s preclinical and clinical trials; • salaries, benefits and other related costs, including stock-based compensation expense, for personnel in the Company’s research and development functions; • costs of outside consultants, including their fees, stock-based compensation and related travel expenses; • the cost of laboratory supplies and acquiring, developing and manufacturing preclinical study and clinical trial materials; • costs related to compliance with regulatory requirements; and • facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs. The Company expenses research and development costs as incurred. The Company recognizes external development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its vendors and its clinical investigative sites. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected in the Company’s consolidated financial statements as prepaid or accrued research and development expenses. Warrants The Company accounts for freestanding warrants within stockholders’ equity or as liabilities based on the characteristics and provisions of each instrument. The Company evaluates outstanding warrants in accordance with ASC 480, Distinguishing Liabilities from Equity Derivatives and Hedging Stock-Based Compensation The Company’s stock-based payments include stock options, performance-based restricted stock units (“RSUs”) and grants of common stock, including common stock subject to vesting. The Company accounts for all stock-based payment awards granted to employees and nonemployees using a fair value method. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employee’s requisite service period, which is generally the vesting period, on a straight-line basis. The Company accounts for forfeitures as they occur. The Company measures the fair value of the performance-based RSUs relating to the total share return performance using a Monte Carlo valuation model. The Company measures the fair value of the performance-based RSUs relating to the milestone performance goals using the fair value method and the probability that the specified performance criteria will be met. Each quarter the Company updates its assessment of the probability that the specified milestone criteria will be achieved and adjusts its estimate of the fair value, if necessary. Stock-based compensation expense is classified in the accompanying consolidated statements of operations and comprehensive loss based on the department to which the related services are provided. Financial Instruments The Company’s financial instruments consist of cash equivalents, marketable securities, accounts payable, a term loan and liability classified warrants. The carrying amounts of cash and cash equivalents and accounts payable approximate their fair value due to the short-term nature of those financial instruments. The fair value of the marketable securities and liability classified warrants are remeasured to fair value each reporting period (see Note 5). The fair value of the term loan approximates its face value due to market terms. Fair Value Measurements The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. Accounting Standards Codification 820, Fair Value Measurements and Disclosures Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that 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 Company’s assets and liabilities measured at fair value on a recurring basis include cash equivalents, marketable securities and warrant liabilities. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as if-converted For the year ended December 31, 2019, both methods are equivalent. For the year ended December 31, 2018, diluted net loss per share amounts were calculated based on the dilutive effect of the total number of shares of common stock related to the November 2016 Private Placement warrants and the change in the fair value of the warrant liability. Basic and diluted net loss per share are described further in Note 2. Income Taxes Deferred tax assets and liabilities are determined based upon the differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities as well as net operating loss and tax credit carryforwards using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information Guarantees and Indemnifications As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The Company leases office and laboratory space in Hopkinton, Massachusetts and previously leased research and development space in Milford, Massachusetts under non-cancelable Through December 31, 2019, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations, and consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established. Segment Information Operating segments are identified as components of an enterprise about which separate and discrete financial information is available for evaluation by the chief operating decision maker, the Company’s Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment and does not track expenses on a program-by-program Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 a right-of-use asset 2018-10, “Codification Improvements to Topic 842, Leases” 2018-10”), No. 2018-11, 2018-11), The Company adopted the standard on the effective date of January 1, 2019 by applying the new lease requirements at the effective date. Prior periods continue to be presented based on the accounting standards originally in effect for such periods. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows the Company to carry forward the historical lease classification. The Company will also apply the practical expedient not to separate lease and non-lease impact of approximately $3.0 million on the Company’s assets and $3.4 million on its liabilities, as of January 1, 2019, for the recognition of right-of-use In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirement for Fair Value Measurement . |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net Loss Per Share | 2. NET LOSS PER SHARE The following table summarizes the computation of basic and diluted net loss per share of the Company for such periods (in thousands, except share and per share data): For the Three Months Ended For the Six Months Ended 2020 2019 2020 2019 Net loss $ (6,544 ) $ (4,555 ) $ (14,722 ) $ (9,750 ) Weighted-average number of shares outstanding—basic and diluted 17,052,088 16,443,379 16,787,919 16,440,192 Net loss per common share—basic and diluted $ (0.38 ) $ (0.28 ) $ (0.88 ) $ (0.59 ) Diluted net loss per common share is the same as basic net loss per common share for all periods presented. The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted For the Three and June 30, 2020 2019 Common stock warrants 1,927,124 1,662,124 Stock options and inducement awards 1,606,275 1,714,815 Restricted stock units 534,000 185,800 | 2. NET LOSS PER SHARE The following table summarizes the computation of basic and diluted net loss per share of the Company for the years ended December 31, 2019 and 2018 (in thousands, except share and per share data): Year Ended December 31, 2019 Net loss $ (24,097 ) Weighted-average number of shares outstanding - basic and diluted 16,454,083 Net loss per common share - basic and diluted $ (1.46 ) For the year ended December 31, 2019, the diluted net loss per common share is the same as basic net loss per common share. Year Ended December 31, 2018 Net loss $ (22,854 ) Less: decrease in change in fair value of warrant liabilities (4,617 ) Net loss available to common shareholders $ (27,471 ) Weighted-average number of shares outstanding: Basic 14,372,174 Effect of dilutive securities: Common stock warrants 246,802 Dilutive potential common shares 14,618,976 Net loss per common share: Basic $ (1.59 ) Diluted $ (1.88 ) For the year ended December 31, 2018, the diluted net loss per common share amounts under the treasury stock method was calculated based on the dilutive effect of the total number of shares of common stock related to the November 2016 Private Placement Warrants of 1,633,777 shares with an exercise price of $10.79. For the period ended December 31, 2018, the average stock price was $12.71, providing 246,802 dilutive shares for the November 2016 Private Placement Warrants. The change in the fair value of the warrant liability of $4.6 million is included in the net loss available to common shareholders for the diluted net loss per common share amount. The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted Year Ended December 31, 2019 2018 Convertible debt 2,329,143 — Common stock warrants 1,927,124 28,347 Stock options 1,901,665 1,349,565 |
Investments
Investments | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Investments | 3. INVESTMENTS Cash in excess of the Company’s immediate requirements is invested in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. The following table summarizes the Company’s investments, by category, as of June 30, 2020 and December 31, 2019 (in thousands): June 30, December 31, Investments—Current: Debt securities—available for sale $ 14,990 $ 25,746 Total $ 14,990 $ 25,746 A summary of the Company’s available-for-sale At June 30, 2020 Cost Basis Accumulated Unrealized Gains Accumulated Unrealized Losses Fair Investments—Current: United States treasury securities $ 14,991 $ — $ (1 ) $ 14,990 Total $ 14,991 $ — $ (1 ) $ 14,990 At December 31, 2019 Cost Basis Accumulated Unrealized Gains Accumulated Unrealized Losses Fair Investments—Current: Corporate bonds $ 4,990 $ — $ (58 ) $ 4,932 United States treasury securities 20,979 — (165 ) 20,814 Total $ 25,969 $ — $ (223 ) (1) $ 25,746 (1) The amortized cost and fair value of the Company’s available-for-sale Amortized Cost Fair Value Due in one year or less $ 14,991 $ 14,990 Total $ 14,991 $ 14,990 | 3. INVESTMENTS Cash in excess of the Company’s immediate requirements is invested in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. The following table summarizes the Company’s investments, by category, as of December 31, 2019 and 2018 (in thousands): December 31, December 31, 2019 2018 Investments - Current: Debt securities - available for sale $ 25,746 $ 32,914 Total $ 25,746 $ 32,914 Investments - Noncurrent: Debt securities - available for sale $ — $ 16,804 Total $ — $ 16,804 A summary of the Company’s available-for-sale At December 31, 2019 Cost Basis Unrealized Gains Unrealized Losses Fair Value Investments - Current: Corporate bonds $ 4,990 $ — $ (58 ) $ 4,932 United States treasury securities 20,979 — (165 ) 20,814 Total $ 25,969 $ — $ (223 ) (1) $ 25,746 (1) $(12) of unrealized losses are included in the cash and cash equivalents balance as of December 31, 2019, a total of $(235) net unrealized losses at December 31, 2019. At December 31, 2018 Cost Basis Unrealized Gains Unrealized Losses Fair Value Investments - Current: Corporate bonds $ 16,028 $ — $ (19 ) $ 16,009 United States treasury securities 16,913 — (8 ) 16,905 Total $ 32,941 $ — $ (27 ) $ 32,914 Investments - Noncurrent: Corporate bonds $ 4,930 $ 2 $ — $ 4,932 United States treasury securities 11,852 20 — 11,872 Total $ 16,782 $ 22 $ — $ 16,804 The amortized cost and fair value of the Company’s available-for-sale Amortized Cost Fair Value Due in one year or less $ 25,969 $ 25,746 Due after one year through two years — — Total $ 25,969 $ 25,746 |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Property and Equipment, Net | 4. PROPERTY AND EQUIPMENT, NET Property and equipment as of June 30, 2020 and December 31, 2019 consisted of the following (in thousands): June 30, December 31, Equipment $ 1,278 $ 1,278 Furniture and fixtures 423 450 Leasehold improvements 1,356 1,356 Total property and equipment 3,057 3,084 Less: accumulated depreciation and amortization (1,014 ) (850 ) Property and equipment, net $ 2,043 $ 2,234 Depreciation expense for the three and six months ended June 30, 2020 was $95,000 and $191,000, respectively. Depreciation expense for the three and six months ended June 30, 2019 was $88,000 and $171,000, respectively. | 4. PROPERTY AND EQUIPMENT, NET Property and equipment as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, December 31, Equipment $ 1,278 $ 1,064 Furniture and fixtures 450 400 Leasehold improvements 1,356 1,347 Total property and equipment 3,084 2,811 Less: accumulated depreciation (850 ) (492 ) Property and equipment, net $ 2,234 $ 2,319 Depreciation expense for the years ended December 31, 2019 and 2018 was $357,000 and $288,000, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | 5. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company classified its money market funds within Level 1 because their fair values are based on their quoted market prices. The Company classified its United States treasury securities and fixed income securities within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs. A summary of the assets and liabilities that are measured at fair value as of June 30, 2020 and December 31, 2019 is as follows (in thousands): Fair Value Measurement at June 30, 2020 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 7,012 $ 7,012 $ — $ — United States treasury securities 14,990 — 14,990 — Total $ 22,002 $ 7,012 $ 14,990 $ — Liabilities: Warrant liabilities $ 38 $ — $ — $ 38 Total $ 38 $ — $ — $ 38 Fair Value Measurement at December 31, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 21,065 $ 21,065 $ — $ — United States treasury securities (1) 5,982 — 5,982 — Fixed income securities 25,746 — 25,746 — Total $ 52,793 $ 21,065 $ 31,728 $ — Liabilities: Warrant liabilities $ 299 $ — $ — $ 299 Total $ 299 $ — $ — $ 299 (1) Money market funds and United States treasury securities with maturities of less than 90 days at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value. The following table reflects the change in the Company’s Level 3 liabilities, which consists of the warrants issued in a private placement in November 2016 (see Note 7), for the three months ended June 30, 2020 (in thousands): November Private Placement Warrants Balance at December 31, 2018 $ 8,511 Change in fair value (8,212 ) Balance at December 31, 2019 299 Change in fair value (261 ) Balance at June 30, 2020 $ 38 | 5. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company classified its money market funds within Level 1 because their fair values are based on their quoted market prices. The Company classified its United States treasury securities and fixed income securities within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs. A summary of the assets and liabilities that are measured at fair value as of December 31, 2019 and 2018 is as follows (in thousands): Fair Value Measurement at December 31, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 21,065 $ 21,065 $ — $ — United States treasury securities (1) 5,982 5,982 Fixed income securities 25,746 — 25,746 — Total $ 52,793 $ 21,065 $ 31,728 $ — Liabilities: Warrant liabilities $ 299 $ — $ — $ 299 Total $ 299 $ — $ — $ 299 Fair Value Measurement at December 31, 2018 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 13,264 $ 13,264 $ — $ — Fixed income securities 49,718 — 49,718 — Total $ 62,982 $ 13,264 $ 49,718 $ — Liabilities: Warrant liabilities $ 8,511 $ — $ — $ 8,511 Total $ 8,511 $ — $ — $ 8,511 (1) Money market funds and United States treasury securities with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value. The following table reflects the change in the Company’s Level 3 liabilities, which consist of the warrants issued in a private placement in November 2016 (see Note 7), for the years ended December 31, 2019 and 2018 (in thousands): November Private Placement Warrants Balance at December 31, 2017 $ 13,128 Change in fair value (4,617 ) Balance at December 31, 2018 $ 8,511 Change in fair value (8,212 ) Balance at December 31, 2019 $ 299 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | ||
Accrued Expenses and Other Current Liabilities | 6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses as of June 30, 2020 and December 31, 2019 consisted of the following (in thousands): June 30, December 31, Preclinical and clinical studies $ 1,124 $ 1,473 Compensation and benefits 765 614 Accounting and legal 254 240 Other 96 111 Total accrued expenses and other current liabilities $ 2,239 $ 2,438 | 6. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, December 31, 2019 2018 Preclinical and clinical studies $ 1,473 $ 941 Compensation and benefits 614 830 Accounting and legal 240 227 Other 111 369 Total accrued expenses and other current liabilities $ 2,438 $ 2,367 |
Warrants
Warrants | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | ||
Warrants | 7. WARRANTS In connection with the Company’s IPO, the Company issued to the sole book-running manager for the IPO a warrant to purchase 27,600 shares of common stock in May 2016 and a warrant to purchase 747 shares of common stock in June 2016 (together, the “IPO Warrants”). The IPO Warrants are exercisable at an exercise price of $15.00 per share and expire on May 5, 2021. The Company evaluated the terms of the IPO Warrants and concluded that they should be equity-classified. The fair value of the May 2016 IPO Warrants was estimated on the applicable issuance dates using a Black-Scholes pricing model based on the following assumptions: an expected term of 4.99 years In November 2016, the Company entered into a definitive agreement with respect to the private placement of 1,644,737 shares of common stock and warrants to purchase 1,644,737 shares of common stock (the “November 2016 Private Placement Warrants”) to a group of accredited investors. These investors paid $9.12 for each share of common stock and warrant to purchase one share of common stock. The November 2016 Private Placement Warrants are exercisable at an exercise price of $10.79 per share and expire on November 23, 2021. The Company evaluated the terms of these warrants and concluded that they are liability-classified. In November 2016, the Company recorded the fair value of these warrants of approximately $8.3 million using a Black-Scholes pricing model. The Company must recognize any change in the value of the warrant liability each reporting period in the statement of operations. As of June 30, 2020 and December 31, 2019, the fair value of the November 2016 Private Placement Warrants was approximately $38,000 and $0.3 million, respectively, and 10,960 shares have been exercised to date (see Note 5). A summary of the Black-Scholes pricing model assumptions used to record the fair value of the warrants is as follows: June 30, 2020 December 31, 2019 Risk-free interest rate 0.2 % 1.6 % Expected term (in years) 1.4 1.9 Expected volatility 80.9 % 100.0 % Expected dividend yield 0 % 0 % In September 2019, the Company entered into a term loan (the “Convertible Term Loan”) with Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P., as lenders, and Pontifax Medison Finance GP, L.P., in its capacity as administrative agent and collateral agent for itself and the lenders, providing for a $20.0 million term loan (see Note 9). In connection with the Company’s Convertible Term Loan, the Company issued to certain lenders warrants to purchase 250,000 shares of common stock (the “Pontifax Warrants”). Prior to their amendment in April 2020 (see Note 9), the Pontifax Warrants were exercisable at an exercise price of $6.57 per share. The Pontifax Warrants expire on September 19, 2025. The Company evaluated the terms of the Pontifax Warrants and concluded that they are equity-classified. The fair value of the Pontifax Warrants was estimated on the issuance date using a Black-Scholes pricing model based on the following assumptions: an expected term of 6.0 years In September 2019, the Company issued warrants to a service provider to purchase 15,000 shares of common stock (the “September 2019 Warrants”). The September 2019 Warrants are exercisable at an exercise price of $4.21 per share and expire on September 19, 2021. The Company evaluated the terms of the September 2019 Warrants and concluded that they are equity-classified. The fair value of the September 2019 Warrants was estimated on the applicable issuance date using a Black-Scholes pricing model based on the following assumptions: an expected term of 2.0 years A summary of the warrant activity for the six months ended June 30, 2020 and for the year ended December 31, 2019 is as follows: Warrants Outstanding at December 31, 2018 1,662,124 Grants 265,000 Exercises — Expirations/cancellations — Outstanding at December 31, 2019 1,927,124 Grants — Exercises — Expirations/cancellations — Outstanding at June 30, 2020 1,927,124 | 7. WARRANTS In connection with the amendment and restatement of a license agreement with BioHEP Technologies Ltd. (“BioHEP”) in February 2016, the Company issued a warrant to purchase 125,000 shares of the Company’s common stock to BioHEP (the “BioHEP Warrant”). The BioHEP Warrant had an exercise price of $16.00 per share. The Company evaluated the terms of the warrant and concluded that it should be equity-classified. The fair value of the warrant, $0.8 million, was estimated on the issuance date using a Black-Scholes pricing model based on the following assumptions: an expected term of two and a half years In connection with the Company’s IPO, the Company issued to the sole book-running manager for the IPO a warrant to purchase 27,600 shares of common stock in May 2016 and a warrant to purchase 747 shares of common stock in June 2016 (together, the “IPO Warrants”). The IPO Warrants are exercisable at an exercise price of $15.00 per share and expire on May 5, 2021. The Company evaluated the terms of the IPO Warrants and concluded that they should be equity-classified. The fair value of the May 2016 IPO Warrants was estimated on the applicable issuance dates using a Black Scholes pricing model based on the following assumptions: an expected term of 4.99 years; expected stock price volatility of 87%; a risk-free rate of 1.20%; and a dividend yield of 0%. The fair value of the June 2016 IPO Warrants was estimated on the applicable issuance dates using a Black Scholes pricing model based on the following assumptions: an expected term of 4.92 years; expected stock price volatility of 87%; a risk-free rate of 1.23%; and a dividend yield of 0%. The aggregate fair value of the IPO Warrants was $0.2 million. In November 2016, the Company entered into a definitive agreement with respect to the private placement of 1,644,737 shares of common stock and warrants to purchase 1,644,737 shares of common stock (the “November 2016 Private Placement Warrants”) to a group of accredited investors. These investors paid $9.12 for each share of common stock and warrant to purchase one share of common stock. The November 2016 Private Placement Warrants are exercisable at an exercise price of $10.79 per share and expire on November 23, 2021. The Company evaluated the terms of these warrants and concluded that they are liability-classified. In November 2016, the Company recorded the fair value of these warrants of approximately $8.3 million using a Black-Scholes pricing model. The Company must recognize any change in the value of the warrant liability each reporting period in the statement of operations. As of December 31, 2019 and 2018, the fair value of the November 2016 Private Placement Warrants was approximately $0.3 million and $8.5 million, respectively and 10,960 shares have been exercised (see Note 5). A summary of the Black Scholes pricing model assumptions used to record the fair value of the warrants is as follows: For the Year Ended December 31, 2019 2018 Risk-free interest rate 1.6 % 2.5 % Expected term (in years) 1.9 2.9 Expected volatility 100.0 % 78.1 % Expected dividend yield 0 % 0 % In September 2019, the Company entered into a term loan (the “Convertible Term Loan”) with Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P., as lenders, and Pontifax Medison Finance GP, L.P., in its capacity as administrative agent and collateral agent for itself and the lenders, providing for a $20.0 million term loan (see Note 9). In connection with the Company’s Convertible T e years In September 2019, the Company issued warrants to a service provider to purchase 15,000 shares of common stock (the “September 2019 Warrants”). The September 2019 Warrants are exercisable at an exercise price of $4.21 per share and expire on September 19, 2021. The Company evaluated the terms of the September 2019 Warrants and concluded that they are equity-classified. The fair value of the September 2019 Warrants was estimated on the applicable issuance date using a Black-Scholes pricing model based on the following assumptions: an expected term of 2.0 years; expected stock price volatility of 69.4%; a risk-free interest rate of 1.7%; and a dividend yield of 0%. The aggregate fair value of the September 2019 Warrants was approximately $19,000 and will be expensed over the life of the service contract. As of December 31, 2019, approximately $6,000 has been expensed. A summary of the warrant activity for the years ended December 31, 2019 and 2018 is as follows: Warrants Outstanding at December 31, 2017 1,787,124 Grants — Exercises — Expirations/cancellations (125,000 ) Outstanding at December 31, 2018 1,662,124 Grants 265,000 Exercises — Expirations/cancellations — Outstanding at December 31, 2019 1,927,124 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Stockholders' Equity | 8. STOCKHOLDERS’ EQUITY Common and Preferred Stock In August 2017, the Company entered into a Controlled Equity Offering SM 2014 Stock Incentive Plan and 2015 Stock Incentive Plan In April 2014, the Company’s Board of Directors approved the 2014 Stock Incentive Plan (the “2014 Plan”) and authorized 750,000 shares of common stock to be issued under the 2014 Plan. The Company’s 2015 Stock Incentive Plan (the “2015 Plan”) became effective immediately prior to the closing of the Company’s IPO on May 11, 2016. Upon the effectiveness of the 2015 Plan, 116,863 shares of common stock that remained available for grant under the 2014 Plan became available for grant under the 2015 Plan, and no further awards were available to be issued under the 2014 Plan. The Company’s Board of Directors initially adopted the 2015 Plan in December 2015, subject to stockholder approval, and authorized 750,000 shares of Common Stock to be issued under the 2015 Plan. The 2014 Plan and 2015 Plan provide for the issuance of common stock, stock options and other stock-based awards to employees, officers, directors, consultants and advisors of the Company. Amended and Restated 2015 Stock Incentive Plan In March 2018, the Board approved the Amended and Restated 2015 Plan. Upon receipt of stockholder approval at the Company’s 2018 annual meeting in June 2018, the 2015 Plan was amended and restated in its entirety increasing the authorized number of shares of common stock reserved for issuance by 800,000 shares (the Amended and Restated 2015 Plan, and together with the 2014 Plan, the “Stock Incentive Plans”). Upon receipt of stockholder approval at the Company’s 2020 annual meeting in June 2020, the Amended and Restated 2015 Plan was further amended to increase the authorized number of shares of common stock reserved for issuance by 1,150,000 shares. Following this approval, there are 2,816,863 shares authorized for issuance pursuant to the Amended and Restated 2015 Plan. In addition, to the extent any outstanding awards under the 2014 Plan expire, terminate or are otherwise surrendered, cancelled or forfeited after the closing of the Company’s IPO, those shares are added to the authorized shares under the Amended and Restated 2015 Plan. The total amount of shares authorized for issuance under all Stock Incentive Plans is 3,450,000. As of June 30, 2020, the Company had 1,216,176 shares available for issuance under the Amended and Restated 2015 Plan. The exercise price of stock options cannot be less than the fair value of the common stock on the date of grant. Stock options awarded under the Stock Incentive Plans expire 10 years after the grant date, unless the Board sets a shorter term. There were no stock options granted prior to 2015. The following table summarizes the option activity under the Stock Incentive Plans for the six months ended June 30, 2020 and the year ended December 31, 2019: Options Weighted- Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 31, 2018 1,299,565 $ 11.18 $ 881,385 Granted 395,500 9.61 — Exercised — — — Cancelled (22,750 ) 13.36 — Outstanding at December 31, 2019 1,672,315 10.78 — Granted 270,000 1.44 — Exercised — — — Cancelled (426,040 ) 10.45 — Options outstanding at June 30, 2020 1,516,275 $ 9.21 $ — Options exercisable at June 30, 2020 1,017,853 $ 10.79 $ — As of June 30, 2020, all options outstanding have a weighted-average remaining contractual life of 6.6 years. The weighted-average fair value of all stock options granted for the six months ended June 30, 2020 was $0.99. Intrinsic value at June 30, 2020 and December 31, 2019 is based on the closing price of the Company’s common stock on that date of $1.47 per share and $1.58 per share, respectively. In January 2018, the Company issued a stock option award as an inducement grant for the purchase of an aggregate of 50,000 shares of the Company’s common stock, outside of the Stock Incentive Plans, at an exercise price of $12.02 per share. In February 2019, the Company issued a stock option award as an inducement grant for the purchase of an aggregate of 40,000 shares of the Company’s common stock, outside of the Stock Incentive Plans, at an exercise price of $10.39 per share. These inducement grants are excluded from the option activity table above. The assumptions the Company used to determine the fair value of stock options granted to employees and directors during the six months ended June 30, 2020 and 2019 are as follows, presented on a weighted-average basis: For the Six Months Ended June 30, 2020 2019 Risk-free interest rate 0.7 % 2.6 % Expected term (in years) 5.9 6.0 Expected volatility 82.8 % 81.1 % Expected dividend yield 0 % 0 % Restricted Stock Units Performance-Based Restricted Stock Units In January 2019, the Company issued performance-based RSUs to senior management under the Amended and Restated 2015 Plan that represented shares potentially issuable in the future subject to the satisfaction of certain performance milestones as well as a service condition. The vesting of 50% of the performance-based RSUs was based upon the Company’s performance relative to a peer group over a two-year performance period, from January 1, 2019 through December 31, 2020, measured by the Company’s relative total shareholder return. The vesting of 25% of the performance-based RSUs was based on the achievement of a performance goal milestone as of December 31, 2019 and the vesting of the remaining 25% of the performance-based RSUs was based upon the achievement of a performance goal milestone as of December 31, 2020. The Company estimated the fair value of total shareholder return performance-based RSUs at the date of grant using a Monte Carlo valuation methodology and amortizes those fair values over the requisite service period for each separately vesting tranche of the award. The Monte Carlo methodology that the Company uses to estimate the fair value of total shareholder return performance-based RSUs at the date of grant incorporates into the valuation the possibility that the market condition may not be satisfied. Provided that the requisite service is rendered, the total fair value of the total shareholder return performance-based RSUs at the date of grant must be recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria. The Company estimates the fair value of milestone performance-based RSUs at the date of grant using the fair value method and the probability that the specified performance criteria will be met and amortizes the fair value over the requisite service period for each separately vesting tranche of the award when attainment of the milestone is deemed probable. The assumption used to determine the fair value of the performance-based RSUs granted to management in 2019 for the performance goal milestone units is based on the market price of the award on the grant date. Each quarter the Company updates its assessment of the probability that the specified criteria will be achieved and adjusts its estimate of the fair value, if necessary. As of December 31, 2019, the Company did not meet the 2019 milestone under the performance-based RSUs, and accordingly 46,450 shares were returned to the Amended and Restated 2015 Plan. The previously recognized expense of $0.3 million related to the 2019 milestone was reversed during the year ended December 31, 2019. The 2020 milestone was not deemed probable, and the previously recognized expense of $0.1 million was reversed during the year ended December 31, 2019. The Company recognized $0.3 million expense related to the total shareholder return component of the performance-based RSUs during the year ended December 31, 2019. In March 2020, the Company and the recipients of these performance-based RSUs agreed to cancel the agreements and as a result, 139,350 shares were returned to the Amended and Restated 2015 Plan. The Company recognized the remaining expense for the total shareholder return performance-based RSUs in the amount of $0.3 million during the six months ended June 30, 2020. The Company did not recognize any expense related to the milestone performance-based RSUs. In April 2020, the Company issued 360,000 performance-based RSUs to senior management under the Amended and Restated 2015 Plan that represented shares potentially issuable in the future subject to the satisfaction of certain performance milestones. The vesting of 50% of the performance-based RSUs is based on the achievement of a performance goal milestone as of December 31, 2020 and the vesting of the remaining 50% of the performance-based RSUs is based upon the achievement of a performance goal milestone as of December 31, 2021. For the three and six months ended June 30, 2020, the Company recognized approximately $44,000 expense related to the performance-based RSUs. Time-Based Restricted Stock Units In March 2020, the Company issued 199,000 time-based RSUs to employees under the Amended and Restated 2015 Plan. The weighted average grant date fair value of the time-based RSUs was $1.41 for the three and six months ended June 30, 2020. The vesting for the time-based RSUs is 50% after one-year from the grant date and the remaining 50% as of December 31, 2021. For the three and six months ended June 30, 2020, the Company recognized approximately $32,000 and $43,000 expense related to the time-based RSUs, respectively. The following table is a rollforward of all RSU activity under the Stock Incentive Plans for the six months ended June 30, 2020: Restricted Stock Units Weighted-Average Grant Date Fair Value Total nonvested units at December 31, 2019 139,350 $ 7.86 Granted 559,000 1.41 Vested — — Cancelled (164,350 ) 6.88 Total nonvested units at June 30, 2020 534,000 $ 1.07 Stock-Based Compensation The following table summarizes the Company’s stock-based compensation expense for the three and six months ended June 30, 2020 and 2019 (in thousands): For the Three Months For the Six Months 2020 2019 2020 2019 Stock-based compensation: Research and development $ 171 $ 339 $ 446 $ 656 General and administrative 303 702 845 1,357 Total Stock-based compensation $ 474 $ 1,041 $ 1,291 $ 2,013 The fair value of stock options vested during the six months ended June 30, 2020 was $1.5 million. At June 30, 2020, there was $2.4 million of unrecognized stock-based compensation expense relating to stock options granted pursuant to the Stock Incentive Plans, which will be recognized over the weighted-average remaining vesting period of 2.2 years. At June 30, 2020, there was $0.5 million of unrecognized stock-based compensation expense relating to the time-based RSUs granted pursuant to the Stock Incentive Plans, which will be recognized over the weighted-average remaining vesting period of 1.5 years. Reserved Shares As of June 30, 2020 and December 31, 2019, the Company reserved the following shares of common stock for issuance of shares resulting from exercise of outstanding warrants and options, convertible shares from the Convertible Term Loan, as well as issuance of shares available for grant under the Stock Incentive Plans: June 30, December 31, 2020 2019 IPO warrants 28,347 28,347 November private placement warrants 1,633,777 1,633,777 Convertible term loan — 2,329,143 Pontifax warrants 250,000 250,000 September 2019 warrants 15,000 15,000 Amended and restated 2015 stock incentive plan 3,266,451 2,160,338 Inducement awards 90,000 90,000 Total 5,283,575 6,506,605 | 8. STOCKHOLDERS’ EQUITY Common Stock In August 2017, the Company entered into a Controlled Equity Offering SM In August 2018, the Company issued and sold in an underwritten public offering an aggregate of 3,246,079 shares of its common stock at $12.50 per share, which included 246,079 shares pursuant to the exercise of an option to purchase additional shares granted to the underwriters in connection with the offering. The offering resulted in $38.0 million of net proceeds, after deducting underwriting discounts and commissions and other offering expenses payable by the Company. 2014 Stock Incentive Plan and 2015 Stock Incentive Plan In April 2014, the Company’s Board of Directors approved the 2014 Stock Incentive Plan (the “2014 Plan”) and authorized 750,000 shares of common stock to be issued under the 2014 Plan. The Company’s 2015 Stock Incentive Plan (the “2015 Plan”) became effective immediately prior to the closing of the Company’s IPO on May 11, 2016. Upon the effectiveness of the 2015 Plan, 116,863 shares of common stock that remained available for grant under the 2014 Plan became available for grant under the 2015 Plan, and no further awards were available to be issued under the 2014 Plan. The Company’s Board of Directors initially adopted the 2015 Plan in December 2015, subject to stockholder approval, and authorized 750,000 shares of Common Stock to be issued under the 2015 Plan. The 2014 Plan and 2015 Plan provide for the issuance of common stock, stock options and other stock-based awards to employees, officers, directors, consultants and advisors of the Company. Amended and Restated 2015 Stock Incentive Plan In March 2018, the Board approved the Amended and Restated 2015 Plan. Upon receipt of stockholder approval at the Company’s 2018 annual meeting in June 2018, the 2015 Plan was amended and restated in its entirety increasing the authorized number of shares of common stock reserved for issuance by 800,000 shares (together with the 2014 Plan, the 2015 Plan, the “Stock Incentive Plans”). Pursuant to the Amended and Restated 2015 Plan, there are 1,666,863 shares authorized for issuance. In addition, to the extent any outstanding awards under the 2014 Plan expire, terminate or are otherwise surrendered, cancelled or forfeited after the closing of the Company’s IPO, those shares are added to the authorized shares under the Amended and Restated 2015 Plan. The total amount of shares authorized for issuance under both the 2014 Plan and the Amended and Restated 2015 Plan is 2,300,000. As of December 31, 2019, the Company had 348,673 shares available for issuance under the Amended and Restated 2015 Plan. The exercise price of stock options cannot be less than the fair value of the common stock on the date of grant. Stock options awarded under the Stock Incentive Plans expire 10 years after the grant date, unless the Board sets a shorter term. There were no stock options granted prior to 2015. The following table summarizes the option activity under the Stock Incentive Plans for the years ended December 31, 2019 and 2018: Options Weighted- Exercise Price Per Share Aggregate Intrinsic Value Options outstanding at December 31, 2017 988,565 $ 10.83 $ 2,617,859 Granted 311,000 12.28 — Exercised — — — Cancelled — — — Options outstanding at December 31, 2018 1,299,565 $ 11.18 $ 2,617,859 Granted 395,500 9.61 — Exercised — — — Cancelled (22,750 ) 13.36 — Options outstanding at December 31, 2019 1,672,315 $ 10.78 $ — Options exercisable at December 31, 2019 1,072,811 $ 11.13 $ — As of December 31, 2019, options outstanding have a weighted-average remaining contractual life of 7.2 years. The weighted-average fair value of all stock options granted for the year ended December 31, 2019 was $6.74. The intrinsic value at December 31, 2019 and 2018 is based on the closing price of the Company’s common stock on that date of $1.58 per share and $10.39 per share, respectively. In January 2018, the Company issued a stock option award as an inducement grant for the purchase of an aggregate of 50,000 shares of the Company’s common stock, outside of the Stock Incentive Plans, at an exercise price of $12.02 per share. In February 2019, the Company issued a stock option award as an inducement grant for the purchase of an aggregate of 40,000 shares of the Company’s common stock, outside of the Stock Incentive Plans, at an exercise price of $10.39 per share. These inducement grants are excluded from the option activity table above. The assumptions the Company used to determine the fair value of stock options granted in 2019 and 2018 are as follows, presented on a weighted-average basis: For the Year Ended December 31, 2019 2018 Risk-free interest rate 2.5 % 2.5 % Expected term (in years) 5.9 5.9 Expected volatility 81.1 % 82.5 % Expected dividend yield 0 % 0 % Performance-Based Restricted Stock Units In January 2019, the Company issued RSUs to senior management under the 2015 Plan that represent shares potentially issuable in the future subject to the satisfaction of certain performance milestones as well as a service condition. The vesting of 50% of the RSUs is based upon the Company’s performance relative to a peer group over a two-year The Company estimates the fair value of total shareholder return RSUs at the date of grant using a Monte Carlo valuation methodology and amortizes those fair values over the requisite service period for each separately vesting tranche of the award. The Monte Carlo methodology that the Company uses to estimate the fair value of total shareholder return RSUs at the date of grant incorporates into the valuation the possibility that the market condition may not be satisfied. Provided that the requisite service is rendered, the total fair value of the total shareholder return RSUs at the date of grant must be recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria. The fair value of the performance-based RSUs granted to management in 2019 for the Company’s relative total share return units is based on the Monte Carlo Simulation method on the grant date, which the weighted average fair value as of the year ended December 31, 2019 was $6.62 per share. The Company estimates the fair value of performance milestone-based RSUs at the date of grant using the fair value method and the probability that the specified performance criteria will be met and amortizes the fair value over the requisite service period for each separately vesting tranche of the award when attainment of the milestone is deemed probable. The assumption used to determine the fair value of the RSUs granted to management during the year ended December 31, 2019 for the performance goal milestone units is based on the market price of the award on the grant date, which was a weighted average fair value for the year ended December 31, 2019 of $10.35 per share. Each quarter the Company updates its assessment of the probability that the specified milestone criteria will be achieved and adjusts its estimate of the fair value, if necessary. As of December 31, 2019, the Company has determined that it has not met the December 31, 2019 clinical milestones and reversed $0.1 million for previously recognized stock-based compensation expense and returned 46,450 shares to the plan. As of December 31, 2019, the Company estimates that it is currently not probable that it will achieve the December 31, 2020 clinical milestones applicable to the milestone-based RSUs and has not recognized stock-based compensation expense for these RSUs as it relates to the December 31, 2020 milestone base goals. As of December 31, 2019, the Company reduced stock-based compensation by approximately $0.2 million for previously recognized stock-based compensation for the December 31, 2020 clinical milestones currently estimated to be not probable. The total stock-based compensation recognized for the year ended December 31, 2019 for the RSUs related to the total shareholder return PSUs was approximately $0.3 million. The following table is a rollforward of RSU activity under the Stock Incentive Plans for the year ended December 31, 2019: Restricted Stock Units Weighted-Average Grant Date Fair Value Total nonvested units at December 31, 2018 — $ — Granted 203,700 8.49 Vested — — Cancelled (64,350 ) 9.83 Total nonvested units at December 31, 2019 139,350 $ 7.86 Stock-Based Compensation The following table summarizes the stock-based compensation expense for the years ended December 31, 2019 and 2018 (in thousands): For the Year Ended 2019 2018 Stock-based compensation: Research and development $ 1,223 $ 843 General and administrative 2,144 1,933 Total Stock-based compensation $ 3,367 $ 2,776 The fair value of stock options vested during the year ended December 31, 2019 was $2.7 million. At December 31, 2019, there was $4.1 million of unrecognized stock-based compensation expense relating to stock options granted pursuant to the Plans, which will be recognized over the weighted-average remaining vesting period of 2.47 years. At December 31, 2019, there was $0.3 million of unrecognized stock-based compensation expense relating to performance-based RSUs granted pursuant to the Stock Incentive Plans, which will be recognized over the weighted-average remaining vesting period of 1.0 years. Reserved Shares As of December 31, 2019 and 2018, the Company reserved the following shares of common stock for issuance of shares resulting from the exercise of outstanding warrants and options, as well as the future issuance of shares available for grant under the Stock Incentive Plans: December 31, 2019 2018 IPO Warrants 28,347 28,347 November Private Placement Warrants 1,633,777 1,633,777 Convertible Term Loan and Accrued Interest Payable 2,329,143 — Pontifax Warrants 250,000 — September 2019 Warrants 15,000 — 2015 Amended and Restated Stock Incentive Plan 2,160,338 2,238,887 Inducement Awards 90,000 50,000 Total 6,506,605 3,951,011 |
Convertible Term Loan
Convertible Term Loan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Convertible Term Loan | 9. CONVERTIBLE TERM LOAN In September 2019, the Company entered into a Convertible Term Loan with Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P., as lenders, and Pontifax Medison Finance GP, L.P., in its capacity as administrative agent and collateral agent for itself and the lenders (collectively, the “Lenders”), providing for a $20.0 million term loan (the “Convertible Term Loan”), which the Company received on September 19, 2019 (the “Closing Date”). The Company incurred issuance costs of $0.4 million and Pontifax Warrants costs of $0.6 million. The Convertible Term Loan issuance costs and Pontifax Warrant costs are shown as an offset to the Convertible Term Loan on the balance sheet and are amortized using the effective interest method to interest expense through September 23, 2023 (the “Maturity Date”). In April 2020, the Company entered into a prepayment notice and pay-off Pursuant to the Convertible Term Loan, the Company was entitled, at its option, to prepay some or all of the then outstanding principal balance and all accrued and unpaid interest on the Convertible Term Loan, together with a prepayment charge equal to 3% of the principal amount being prepaid. The Company’s obligations were secured by a security interest, senior to any current and future debts and to any security interest, in all of the Company’s right, title, and interest in, to and under all of its property and other assets, subject to limited exceptions including the Company’s intellectual property. The Convertible Term Loan contained customary events of default, representations, warranties and covenants, including a material adverse effect clause. The Company was required to maintain a minimum cash balance of $7.0 million in its accounts. Upon the occurrence of an event of default, a default interest rate of an additional 4% per annum would have been applied to the outstanding loan balances, and the Lenders would have been able to declare all outstanding obligations immediately due and payable and exercise all of its rights and remedies as set forth in the Convertible Term Loan and under applicable law. The Company evaluated the accounting for the Convertible Term Loan and identified an embedded derivative related to the contingent interest feature. The Company determined the fair value of the contingent interest feature to be de minimis. In addition, the Company issued the Lenders warrants to purchase an aggregate of 250,000 shares of the Company’s common stock (the “Pontifax Warrants”). The Pontifax Warrants are exercisable for a period of six years from the Closing Date and were exercisable at an exercise price of $6.57 per share prior to their amendment in April 2020. The aggregate fair value of the Pontifax Warrants on the date of issuance was approximately $0.6 million and was recorded as a discount to the term loan and will be amortized over the life of the term loan using the effective interest rate method. The aggregate fair value remaining on the payoff date was $0.5 million and was included in the loss on extinguishment of the Convertible Term Loan upon repayment. In connection with the repayment of the Convertible Term Loan, the Pontifax Warrants were amended and restated to amend the exercise price to $2.08 per share, which was equal to 1.5 times the weighted-average closing price of the Company’s Common Stock during the 90 days prior to the repayment date. All other terms of the Pontifax Warrants remained the same. During the three months ended June 30, 2020, there was an incremental expense of approximately $54,000 for the amendment of the Pontifax Warrant exercise price, which is included in the loss on extinguishment of debt (see Note 7). During the three and six months ended June 30, 2020, the Company recorded interest expense of approximately $35,000 and $511,000, respectively, in connection with the Convertible Term Loan. There was no interest expense recorded during the three and six months ended June 30, 2019. | 9. CONVERTIBLE TERM LOAN In September 2019, the Company entered into a Convertible Term Loan with Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P., as lenders, and Pontifax Medison Finance GP, L.P., in its capacity as administrative agent and collateral agent for itself and the lenders (collectively, the “Lenders”), providing for a $20.0 million term loan (the “Convertible Term Loan”), which the Company received on September 19, 2019 (the “Closing Date”). The Convertible Term Loan bears interest at an annual rate of 8.0%. The Convertible Term Loan provides for interest-only payments for twenty-four months and repayment of the aggregate outstanding principal balance of the Convertible Term Loan in quarterly installments starting upon expiration of the interest only period and continuing through September 19, 2023 (the “Maturity Date”). The Company incurred issuance costs of $0.4 million. The Convertible Term Loan issuance costs are shown as an offset to the Convertible Term Loan on the balance sheet and are amortized using the effective interest method to interest expense through the Maturity Date. The Company may, at its option, prepay some or all of the then outstanding principal balance and all accrued and unpaid interest on the Convertible Term Loan, together with a prepayment charge equal to 3% of the principal amount being prepaid. “30-day The Company’s obligations are secured by a security interest, senior to any current and future debts and to any security interest, in all of the Company’s right, title, and interest in, to and under all of its property and other assets, subject to limited exceptions including the Company’s intellectual property. The Convertible Term Loan contains customary events of default, representations, warranties and covenants, including a material adverse effect clause. The Company must maintain a minimum cash balance of $7.0 million in Spring Bank Pharmaceuticals, Inc. accounts, or it is in breach of the Convertible Term Loan, which the Company is in compliance with as of December 31, 2019. Upon the occurrence of an event of default, a default interest rate of an additional 4% per annum may be applied to the outstanding loan balances, and the Lenders may declare all outstanding obligations immediately due and payable and exercise all of its rights and remedies as set forth in the Convertible Term Loan and under applicable law. The Company evaluated the accounting for the Convertible Term Loan and identified an embedded derivative related to the contingent interest feature. At issuance and as of December 31, 2019, the Company determined the fair value of the contingent interest feature to be di minimis and will re-value In addition, the Company issued the Lenders warrants to purchase an aggregate of 250,000 shares of the Company’s common stock. The Pontifax Warrants are exercisable for a period of six years from the Closing Date at an exercise price of $6.57 per share, which is equal to 1.5 times 30-day During the year ended December 31, 2019, the Company recorded interest expense of approximately $0.5 million in connection with the Convertible Term Loan. The fair value of the term loan as of December 31, 2019 approximates its face value due to market terms. The following table summarizes the Company’s future principal debt payments on the Convertible Term Loan as of December 31, 2019 (in thousands): December 31, 2019 2020 $ — 2021 2,500 2022 10,000 2023 7,500 Total principal payments $ 20,000 Less: unamortized debt discount (930 ) Term loan, long-term $ 19,070 |
Leases
Leases | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Leases | 10. LEASES The Company has operating leases for its principal office and laboratory space and the Company’s former headquarters. The Company’s leases have remaining lease terms of approximately 8.3 years for its principal office and laboratory space, which includes an option to extend the lease for up to 5 years, and approximately 0.9 years for its former headquarters. The Company’s former headquarters location is subleased through the remainder of the lease term. Other information related to leases as of June 30, 2020 and 2019 was as follows: For the Three Months For the Six 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases (in thousands) $ 147 $ 91 $ 291 $ 130 Right-of-use Operating leases (in thousands) $ — $ 2,980 $ — $ 2,980 As of June 30, 2020 and December 31, 2019, the weighted average remaining lease term for operating leases was 8.0 years and 8.3 years, respectively. As of June 30, 2020 and December 31, 2019, the weighted average discount rate for operating leases was 8% for both periods. Operating lease costs under the leases for the three and six months ended June 30, 2020 were approximately $165,000 and $330,000, respectively. Total operating lease costs for the three and six months ended June 30, 2020 were offset by $21,000 and $50,000, respectively, for sublease income and variable lease cost payments. Operating lease costs under the leases for the three and six months ended June 30, 2019 were approximately $130,000 and $260,000, respectively. Total operating lease costs for the three and six months ended June 30, 2019 were offset by $18,000 and $37,000, respectively, for sublease income and variable lease cost payments. The following table summarizes the Company’s maturities of operating lease liabilities as of June 30, 2020 (in thousands): Year 2020 (excluding the six months ended June 30, 2020) $ 297 2021 508 2022 450 2023 462 2024 474 Thereafter 1,931 Total lease payments $ 4,122 Less: present value discount (1,070 ) Total $ 3,052 | 10. LEASES The Company has operating leases for its principal office and laboratory space and the Company’s former headquarters. The Company’s leases have remaining lease terms of approximately 8.3 years for its principal office and laboratory space, which includes an option to extend the lease for up to 5 years, and approximately 2 years for its former headquarters. The Company’s former headquarters location is subleased through the remainder of the lease term. Other information related to leases as of December 31, 2019 was as follows: For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases (in thousands) $ 417 Right-of-use Operating leases (in thousands) $ 2,980 Weighted Average Remaining Lease Term Operating leases 8.3 years Weighted Average Discount Rate Operating leases 8.0 % Operating lease costs under the leases for the year ended December 31, 2019 were approximately $646,000, offset by $81,000, for sublease income and variable lease cost payments. Total rent expense for the year ended December 31, 2018 was $429,000, which included payments for a lease of the Company’s research and development facility. The lease term of the research and development facility ended as of June 30, 2018. The following table summarizes the Company’s maturities of operating lease liabilities as of December 31, 2019 (in thousands): Year 2020 $ 588 2021 508 2022 450 2023 462 2024 474 Thereafter 1,931 Total lease payments $ 4,413 Less: present value discount (1,189 ) Total $ 3,224 For comparative purposes, the Company’s aggregate future minimum non-cancellable Year 2019 $ 417 2020 588 2021 508 2022 450 2023 462 Thereafter 2,405 Total minimum lease payments $ 4,830 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES In general, the Company has not recorded a provision for federal or state income taxes as it has had cumulative net operating losses since inception. A reconciliation of the statutory U.S. Federal Tax Rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2019 2018 U.S. statutory federal income tax rate (21.0 )% (21.0 )% State income taxes, net of federal income tax benefit (8.4 )% (7.6 )% Warrant adjustment (7.2 )% (4.2 )% Permanent items 0.7 % 0.6 % R&D credit (0.6 )% (0.6 )% Change in valuation allowance 36.5 % 32.7 % Change in federal rate impact — — Other — 0.1 % Effective income tax rate 0.0 % 0.0 % The significant components of the Company’s deferred tax assets as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Net operating loss carryforwards $ 31,637 $ 23,582 Research and development credits 798 649 Lease liability 881 — Accrued expenses 173 209 License payments 561 612 Stock based compensation 2,004 1,383 Other – net 101 138 Deferred tax asset 36,155 26,573 Valuation allowance (35,389 ) (26,536 ) Net deferred tax asset $ 766 $ 37 Right of use assets $ (742 ) $ — Property and equipment (24 ) (37 ) Net deferred tax liability $ (766 ) $ — Net deferred tax asset and liability $ — $ — Because of the Company’s recurring losses since inception, management has concluded that it is more likely than not that its net deferred tax assets will not be realized and, accordingly, the Company provided a full valuation allowance against the net deferred tax assets. The valuation allowance increased by approximately $8.9 million in 2019 due to the increase in the deferred tax assets (primarily due to the net operating loss carryforwards). In comparison, the valuation allowance increased by approximately $7.5 million in 2018 due to the increase in the deferred tax assets (primarily due to the net operating loss carryforwards). At December 31, 2019, the Company had federal and state net operating loss carryforwards of approximately $115.6 million and $116.5 million, respectively, available to reduce future taxable income, if any. The federal net operating loss carryforwards expire beginning in 2029 and ending in 2037, with the exception of federal net operating losses created after tax years ending December 31, 2017. These net operating loss carryforwards of approximately $54.1 million have an indefinite life and do not expire. The state net operating loss carryforwards expire beginning in 2030 and ending in 2039. At December 31, 2019, the Company had available federal and state income tax credits of approximately $0.3 million and $0.6 million, respectively, which are available to reduce future income taxes, if any, through 203 Realization of the future tax benefits is dependent on many factors, including the Company’s ability to generate taxable income within the net operating loss carryforward period. Under the provisions of the Internal Revenue Code, the net operating loss and tax credit carry-forwards are subject to review and possible adjustment by the Internal Revenue Service and state tax authorities. Net operating loss and tax credit carry-forwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code, respectively, as well as similar state provisions. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitations is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed several financings since its inception, which may have resulted in a change in control as defined by Sections 382 and 383 of the Internal Revenue Code, or could result in a change in control in the future. The Company has performed a Section 382 study from its inception through December 31, 2017. The Company determined it experienced two ownership changes, but it expects to be able to utilize all its tax attributes despite the limitations calculated from the ownership changes. If ownership changes occur in the future, they could limit the amount of tax attributes available to offset tax due and increase the Company’s tax expense adversely. The Company will continue to monitor changes in its ownership and update its Section 382 study in the future for those changes before its tax attributes are utilized. The Company has generated research and development tax credits but has not conducted a study to document its activities that qualify for research and development tax credits. This study may result in an adjustment to the Company’s research and development credit carryforwards; however, since the Company has not conducted a study any adjustment is unknown, no amounts are being presented as an uncertain tax position. A full valuation allowance has been provided against the Company’s research and development tax credits and, if an adjustment is required, this adjustment would be offset by an adjustment to the deferred tax asset established for the research and development tax credit carry-forwards and the valuation allowance. The Company files income tax returns in the U.S. federal and Massachusetts jurisdictions. The statute of limitations for assessment by the Internal Revenue Service, or IRS, and state tax authorities is closed for tax years prior to 2015, although carryforward attributes that were generated prior to tax year 2015 may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period. The Company is currently not under examination by the Internal Revenue Service or any other jurisdictions for any tax years. The Company’s policy is to record interest and penalties on any unrecognized tax benefits as part of tax expense. The Company has not recorded any interest or penalties on any unrecognized tax benefits since its inception. The Company does not believe material uncertain tax positions have arisen to date. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Contingencies The Company accrues for contingent liabilities to the extent that the liability is probable and estimable. There are no accruals for contingent liabilities in these consolidated financial statements. | 12. COMMITMENTS AND CONTINGENCIES Contingencies The Company accrues for contingent liabilities to the extent that the liability is probable and estimable. There are no accruals for contingent liabilities in these consolidated financial statements. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 13. 401(k) PLAN The Company has a 401(k)-defined contribution plan (the “401(k) Pla Pla |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. RELATED PARTY TRANSACTIONS During the years ended December 31, 2019 and 2018, the Company had no material related party transactions. |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 12. SUBSEQUENT EVENTS On July 29, 2020, the Company entered into the Exchange Agreement with F-star F-star. F-star, F-star F-star F-star The Exchange is intended to create a company focused on transforming the lives of patients with cancer through the development of innovative tetravalent bispecific (mAb 2 The combined company will be led by Eliot Forster, Ph.D., MBA, F-star The Company continues to conduct activities with respect to SB 11285, its intravenously-administered STING agonist product candidate, as well as other preclinical activities as described further in this prospectus/proxy statement. The Company has evaluated subsequent events through the date on which the consolidated financial statements were issued to ensure appropriate disclosure of events both recognized in the consolidated financial statements and events which occurred subsequently but were not recognized in the consolidated financial statements. | 15. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date on which the consolidated financial statements were issued, to ensure that this submission includes appropriate disclosure of events both recognized in the consolidated financial statements and events which occurred subsequently but were not recognized in the consolidated financial statements. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Liquidity | Basis of Presentation and Liquidity The accompanying consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). The accompanying interim financial statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019, and related interim information contained within the notes to the financial statements, are unaudited. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the Company’s audited financial statements and include all adjustments (including normal recurring adjustments) necessary for the fair presentation of the Company’s financial position as of June 30, 2020, results of operations for the three and six months ended June 30, 2020 and 2019, statement of stockholders’ equity for the three and six months ended June 30, 2020 and 2019 and its cash flows for the six months ended June 30, 2020 and 2019. These interim financial statements should be read in conjunction with the Company’s audited financial statements and accompanying notes contained in the Company’s Annual Report on Form 10-K As of June 30, 2020, the Company had an accumulated deficit of $140.9 million and $23.5 million in cash, cash equivalents and marketable securities. On April 8, 2020, the Company repaid in full its $20.0 million convertible term loan (see Note 9). There is no guarantee that the Exchange will be completed. The Company expects its $23.5 million in cash, cash equivalents and marketable securities as of June 30, 2020 will be sufficient to fund operations for at least the next twelve months. This estimate assumes no additional funding from new collaboration agreements, equity financings or further sales under the Company’s Controlled Equity Offering SM The Company does not expect to raise any additional funds prior to the completion of the Exchange. However, if the Exchange is not completed, the Company may require significant additional funds earlier than it currently expects in order to conduct clinical trials and preclinical and discovery activities. There can be no assurances, however, that additional funding will be available on favorable terms, or at all. To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, stockholders’ ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect common stockholder rights. If the Company raises additional funds through collaborations, strategic alliances or licensing arrangements with third parties, the Company may have to relinquish valuable rights to its technologies, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to the Company. | Basis of Presentation and Liquidity The accompanying consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). As of December 31, 2019, the Company had an accumulated deficit of $126.2 million and $54.5 million in cash, cash equivalents and marketable securities. The Company expects to continue to incur significant and increasing losses for the foreseeable future. The Company anticipates that its expenses will increase significantly as it continues to develop SB 11285 and its other product candidates. The Company does not have any committed external source of funds. As a result, the Company will need additional financing to support its continuing operations. Adequate additional funds may not be available to the Company on acceptable terms, or at all. To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, stockholders’ ownership interests will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect common stockholder rights. If the Company raises additional funds through collaborations, strategic alliances or licensing arrangements with third parties, the Company may have to relinquish valuable rights to its technologies, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to the Company. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Sperovie Biosciences, Inc., SBP Securities Corporation and SBP International Limited. Sperovie Biosciences, Inc. had operations consisting mainly of legal fees associated with intellectual property activities as of June 30, 2020. Sperovie Biosciences, Inc. was a joint borrower with the Company under the Company’s convertible term loan (see Note 9). SBP Securities Corporation had assets primarily related to investments in marketable securities and operations consisting primarily of interest income as of June 30, 2020. SBP International Limited had operations consisting mainly of clinical trial oversight, including European data protection oversight, as of June 30, 2020. All intercompany balances and transactions have been eliminated in consolidation. | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Sperovie Biosciences, Inc., SBP Securities Corporation and SBP International Limited. Sperovie Biosciences, Inc. had operations consisting mainly of legal fees associated with intellectual property activities as of December 31, 2019. Sperovie Biosciences, Inc. is a joint borrower with the Company under the Company’s term loan (see Note 9). SBP Securities Corporation had assets primarily related to investments in marketable securities and operations consisting primarily of interest income as of December 31, 2019. SBP International Limited had operations consisting mainly of clinical trial oversight, including European data protection oversight, as of December 31, 2019. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates relied upon in preparing the accompanying financial statements related to the fair value of warrants, accounting for stock-based compensation, income taxes, useful lives of long-lived assets, and accounting for certain accruals. The Company evaluates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates relied upon in preparing the accompanying financial statements related to the fair value of warrant liabilities, accounting for stock-based compensation, income taxes, useful lives of long-lived assets, and accounting for certain accruals. The Company evaluates its estimates and assumptions on an ongoing basis. The Company’s actual results may differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are stated at fair value and include short-term, highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Included in cash and cash equivalents as of June 30, 2020 are money market fund investments of $7.0 million and included in cash and cash equivalents as of December 31, 2019 are money market fund investments of $21.1 million and United States treasury securities of $6.0 million, which are reported at fair value (see Note 5). | Cash and Cash Equivalents Cash equivalents are stated at fair value and include short-term, highly liquid investments with remaining maturities of 90 days or less at the date of purchase. Included in cash and cash equivalents as of December 31, 2019 are money market fund investments of $21.1 million and United States treasury securities of $6.0 million, which are reported at fair value. As of December 31, 2018, included in cash and cash equivalents are money market fund investments of $13.3 million, which are reported at fair value (Note 5). |
Restricted Cash | Restricted Cash As of June 30, 2020 and December 31, 2019, restricted cash consists of approximately $234,000, which is held as a security deposit required in conjunction with a lease agreement for the Company’s principal office and laboratory space entered into in October 2017. | Restricted Cash As of December 31, 2019 and 2018, restricted cash consisted of approximately $234,000, which is held as a security deposit required in conjunction with the lease agreement for the Company’s principal office and laboratory space entered into in October 2017. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and marketable securities. Substantially all of the Company’s cash is held at financial institutions that management believes to be of high credit quality. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits may be redeemed upon demand and, therefore, bear minimal risk. | Concentration of Credit Risk Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and marketable securities. Substantially all of the Company’s cash is held at financial institutions that management believes to be of high-credit quality. Deposits with these financial institutions may exceed the amount of insurance provided on such deposits; however, these deposits may be redeemed upon demand and, therefore, bear minimal risk. |
Investments in Marketable Securities | Investments in Marketable Securities The Company invests excess cash balances in short-term and long-term marketable securities. The Company classifies investments in marketable securities as either held-to-maturity available-for-sale available-for-sale. available-for-sale | Investments in Marketable Securities The Company invests excess cash balances in short-term and long-term marketable securities. The Company classifies investments in marketable securities as either held-to-maturity available-for-sale available-for-sale. available-for-sale accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses are determined using the specific |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are recorded at cost. Costs associated with maintenance and repairs are expensed as incurred. Depreciation is provided using the straight-line method over the estimated useful lives: Asset Category Useful Life Equipment 5-7 Furniture and fixtures 5 years Leasehold improvements Lesser of 10 years term of the respective lease | Property and Equipment, Net Property and equipment are recorded at cost. Costs associated with maintenance and repairs are expensed as incurred. Depreciation and amortization are provided using the straight-line method over the estimated useful lives: Asset Category Useful Life Equipment 5-7 Furniture and fixtures 5 years Leasehold improvements Lesser of 10 years term of the respective lease |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. This is the rate the Company would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of a lease based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. This is the rate the Company would have to pay if borrowing on a collateralized basis over a similar term to each lease. The operating lease ROU asset also includes any lease payments made and excludes lease incentive amounts. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If the undiscounted cash flows are insufficient to recover the carrying value, an impairment loss is recorded for the difference between the carrying value and fair value of the asset. As of June 30, 2020, no such impairment has occurred. | Impairment of Long-Lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If the undiscounted cash flows are insufficient to recover the carrying value, an impairment loss is recorded for the difference between the carrying value and fair value of the asset. Through December 31, 2019, no such impairment has occurred. |
Research and Development Costs | Research and Development Costs Research and development expenses consist primarily of costs incurred for the Company’s research activities, including discovery efforts, and the development of product candidates, which include: • expenses incurred under agreements with third parties, including contract research organizations, or CROs, that conduct research, preclinical activities and clinical trials on the Company’s behalf as well as contract manufacturing organizations, or CMOs, that manufacture drug products for use in the Company’s preclinical and clinical trials; • salaries, benefits and other related costs, including stock-based compensation expense, for personnel in the Company’s research and development functions; • costs of outside consultants, including their fees, stock-based compensation and related travel expenses; • the cost of laboratory supplies and acquiring, developing and manufacturing preclinical study and clinical trial materials; • costs related to compliance with regulatory requirements; and • facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs. The Company expenses research and development costs as incurred. The Company recognizes external development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its vendors and its clinical investigative sites. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected in the Company’s consolidated financial statements as prepaid or accrued research and development expenses. | Research and Development Costs Research and development expenses consist primarily of costs incurred for the Company’s research activities, including discovery efforts, and the development of product candidates, which include: • expenses incurred under agreements with third parties, including contract research organizations, or CROs, that conduct research, preclinical activities and clinical trials on the Company’s behalf as well as contract manufacturing organizations, or CMOs, that manufacture drug products for use in the Company’s preclinical and clinical trials; • salaries, benefits and other related costs, including stock-based compensation expense, for personnel in the Company’s research and development functions; • costs of outside consultants, including their fees, stock-based compensation and related travel expenses; • the cost of laboratory supplies and acquiring, developing and manufacturing preclinical study and clinical trial materials; • costs related to compliance with regulatory requirements; and • facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs. The Company expenses research and development costs as incurred. The Company recognizes external development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its vendors and its clinical investigative sites. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of costs incurred, and are reflected in the Company’s consolidated financial statements as prepaid or accrued research and development expenses. |
Warrants | Warrants The Company accounts for freestanding warrants within stockholders equity or as liabilities based on the characteristics and provisions of each instrument. The Company evaluates outstanding warrants in accordance with ASC 480, Distinguishing Liabilities from Equity Derivatives and Hedging | Warrants The Company accounts for freestanding warrants within stockholders’ equity or as liabilities based on the characteristics and provisions of each instrument. The Company evaluates outstanding warrants in accordance with ASC 480, Distinguishing Liabilities from Equity Derivatives and Hedging |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based payments include stock options, performance-based restricted stock units (“performance-based RSUs”), time-based restricted stock units (“time-based RSUs”) and grants of common stock. The Company accounts for all stock-based payment awards granted to employees and nonemployees using a fair value method. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employees’ requisite service period, which is generally the vesting period, on a straight-line basis. The Company accounts for forfeitures as they occur. The Company measures the fair value of the performance-based RSUs relating to the total share return performance using a Monte Carlo valuation model. The Company measures the fair value of the performance-based RSUs relating to the milestone performance goals using the fair value method and the probability that the specified performance criteria will be met. Each quarter the Company updates its assessment of the probability that the specified milestone criteria will be achieved and adjusts its estimate of the fair value, if necessary. Stock-based compensation expense is classified in the accompanying consolidated statements of operations and comprehensive loss based on the department to which the related services are provided. | Stock-Based Compensation The Company’s stock-based payments include stock options, performance-based restricted stock units (“RSUs”) and grants of common stock, including common stock subject to vesting. The Company accounts for all stock-based payment awards granted to employees and nonemployees using a fair value method. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over the employee’s requisite service period, which is generally the vesting period, on a straight-line basis. The Company accounts for forfeitures as they occur. The Company measures the fair value of the performance-based RSUs relating to the total share return performance using a Monte Carlo valuation model. The Company measures the fair value of the performance-based RSUs relating to the milestone performance goals using the fair value method and the probability that the specified performance criteria will be met. Each quarter the Company updates its assessment of the probability that the specified milestone criteria will be achieved and adjusts its estimate of the fair value, if necessary. Stock-based compensation expense is classified in the accompanying consolidated statements of operations and comprehensive loss based on the department to which the related services are provided. |
Financial Instruments | Financial Instruments The Company’s financial instruments consist of cash equivalents, marketable securities, accounts payable, a term loan and liability classified warrants. The carrying amounts of cash and cash equivalents and accounts payable approximate their fair value due to the short-term nature of those financial instruments. The fair value of the marketable securities and liability classified warrants are remeasured to fair value each reporting period (see Note 5). The fair value of the term loan approximates its face value due to market terms. | Financial Instruments The Company’s financial instruments consist of cash equivalents, marketable securities, accounts payable, a term loan and liability classified warrants. The carrying amounts of cash and cash equivalents and accounts payable approximate their fair value due to the short-term nature of those financial instruments. The fair value of the marketable securities and liability classified warrants are remeasured to fair value each reporting period (see Note 5). The fair value of the term loan approximates its face value due to market terms. |
Fair Value Measurements | Fair Value Measurements The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires | Fair Value Measurements The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. Accounting Standards Codification 820, Fair Value Measurements and Disclosures Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that 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 Company’s assets and liabilities measured at fair value on a recurring basis include cash equivalents, marketable securities and warrant liabilities. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as if-converted For the three and six months ended June 30, 2020 and 2019, both methods are equivalent. Basic and diluted net loss per share is described further in Note 2. | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as if-converted For the year ended December 31, 2019, both methods are equivalent. For the year ended December 31, 2018, diluted net loss per share amounts were calculated based on the dilutive effect of the total number of shares of common stock related to the November 2016 Private Placement warrants and the change in the fair value of the warrant liability. Basic and diluted net loss per share are described further in Note 2. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based upon the differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities as well as net operating loss and tax credit carryforwards using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit is recognized in the consolidated financial statements. The Company classifies interest and penalties associated with such uncertain tax positions as a component of interest expense. As of June 30, 2020 and December 31, 2019, the Company has not identified any material uncertain tax positions. | Income Taxes Deferred tax assets and liabilities are determined based upon the differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities as well as net operating loss and tax credit carryforwards using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company assesses its income tax positions and records tax benefits based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information |
Guarantees and Indemnifications | Guarantees and Indemnifications As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The Company leases its principal office and laboratory space in Hopkinton, Massachusetts under a non-cancelable Through June 30, 2020, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations, and consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established. | Guarantees and Indemnifications As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The Company leases office and laboratory space in Hopkinton, Massachusetts and previously leased research and development space in Milford, Massachusetts under non-cancelable Through December 31, 2019, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations, and consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established. |
Segment Information | Segment Information Operating segments are identified as components of an enterprise about which separate and discrete financial information is available for evaluation by the chief operating decision maker, the Company’s chief executive officer, in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment and does not track expenses on a program-by-program | Segment Information Operating segments are identified as components of an enterprise about which separate and discrete financial information is available for evaluation by the chief operating decision maker, the Company’s Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment and does not track expenses on a program-by-program |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirement for Fair Value Measurement . | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 a right-of-use asset 2018-10, “Codification Improvements to Topic 842, Leases” 2018-10”), No. 2018-11, 2018-11), The Company adopted the standard on the effective date of January 1, 2019 by applying the new lease requirements at the effective date. Prior periods continue to be presented based on the accounting standards originally in effect for such periods. The Company also elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows the Company to carry forward the historical lease classification. The Company will also apply the practical expedient not to separate lease and non-lease impact of approximately $3.0 million on the Company’s assets and $3.4 million on its liabilities, as of January 1, 2019, for the recognition of right-of-use In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirement for Fair Value Measurement . |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Summary of Estimated Useful Lives of Property and Equipment | Property and equipment are recorded at cost. Costs associated with maintenance and repairs are expensed as incurred. Depreciation is provided using the straight-line method over the estimated useful lives: Asset Category Useful Life Equipment 5-7 Furniture and fixtures 5 years Leasehold improvements Lesser of 10 years term of the respective lease | Property and equipment are recorded at cost. Costs associated with maintenance and repairs are expensed as incurred. Depreciation and amortization are provided using the straight-line method over the estimated useful lives: Asset Category Useful Life Equipment 5-7 Furniture and fixtures 5 years Leasehold improvements Lesser of 10 years term of the respective lease |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table summarizes the computation of basic and diluted net loss per share of the Company for such periods (in thousands, except share and per share data): For the Three Months Ended For the Six Months Ended 2020 2019 2020 2019 Net loss $ (6,544 ) $ (4,555 ) $ (14,722 ) $ (9,750 ) Weighted-average number of shares outstanding—basic and diluted 17,052,088 16,443,379 16,787,919 16,440,192 Net loss per common share—basic and diluted $ (0.38 ) $ (0.28 ) $ (0.88 ) $ (0.59 ) | The following table summarizes the computation of basic and diluted net loss per share of the Company for the years ended December 31, 2019 and 2018 (in thousands, except share and per share data): Year Ended December 31, 2019 Net loss $ (24,097 ) Weighted-average number of shares outstanding - basic and diluted 16,454,083 Net loss per common share - basic and diluted $ (1.46 ) Year Ended December 31, 2018 Net loss $ (22,854 ) Less: decrease in change in fair value of warrant liabilities (4,617 ) Net loss available to common shareholders $ (27,471 ) Weighted-average number of shares outstanding: Basic 14,372,174 Effect of dilutive securities: Common stock warrants 246,802 Dilutive potential common shares 14,618,976 Net loss per common share: Basic $ (1.59 ) Diluted $ (1.88 ) |
Summary of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Weighted-Average Shares Outstanding | The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted For the Three and June 30, 2020 2019 Common stock warrants 1,927,124 1,662,124 Stock options and inducement awards 1,606,275 1,714,815 Restricted stock units 534,000 185,800 | The following potentially dilutive securities outstanding, prior to the use of the treasury stock method or if-converted Year Ended December 31, 2019 2018 Convertible debt 2,329,143 — Common stock warrants 1,927,124 28,347 Stock options 1,901,665 1,349,565 |
Investments (Tables)
Investments (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Summary of Investments by Category | The following table summarizes the Company’s investments, by category, as of June 30, 2020 and December 31, 2019 (in thousands): June 30, December 31, Investments—Current: Debt securities—available for sale $ 14,990 $ 25,746 Total $ 14,990 $ 25,746 | The following table summarizes the Company’s investments, by category, as of December 31, 2019 and 2018 (in thousands): December 31, December 31, 2019 2018 Investments - Current: Debt securities - available for sale $ 25,746 $ 32,914 Total $ 25,746 $ 32,914 Investments - Noncurrent: Debt securities - available for sale $ — $ 16,804 Total $ — $ 16,804 |
Summary of Available-for-Sale Classified Investments | A summary of the Company’s available-for-sale At June 30, 2020 Cost Basis Accumulated Unrealized Gains Accumulated Unrealized Losses Fair Investments—Current: United States treasury securities $ 14,991 $ — $ (1 ) $ 14,990 Total $ 14,991 $ — $ (1 ) $ 14,990 At December 31, 2019 Cost Basis Accumulated Unrealized Gains Accumulated Unrealized Losses Fair Investments—Current: Corporate bonds $ 4,990 $ — $ (58 ) $ 4,932 United States treasury securities 20,979 — (165 ) 20,814 Total $ 25,969 $ — $ (223 ) (1) $ 25,746 (1) | A summary of the Company’s available-for-sale At December 31, 2019 Cost Basis Unrealized Gains Unrealized Losses Fair Value Investments - Current: Corporate bonds $ 4,990 $ — $ (58 ) $ 4,932 United States treasury securities 20,979 — (165 ) 20,814 Total $ 25,969 $ — $ (223 ) (1) $ 25,746 (1) $(12) of unrealized losses are included in the cash and cash equivalents balance as of December 31, 2019, a total of $(235) net unrealized losses at December 31, 2019. At December 31, 2018 Cost Basis Unrealized Gains Unrealized Losses Fair Value Investments - Current: Corporate bonds $ 16,028 $ — $ (19 ) $ 16,009 United States treasury securities 16,913 — (8 ) 16,905 Total $ 32,941 $ — $ (27 ) $ 32,914 Investments - Noncurrent: Corporate bonds $ 4,930 $ 2 $ — $ 4,932 United States treasury securities 11,852 20 — 11,872 Total $ 16,782 $ 22 $ — $ 16,804 |
Schedule of Amortized Cost and Fair Value of Available-for-Sale Investments, by Contract Maturity | The amortized cost and fair value of the Company’s available-for-sale Amortized Cost Fair Value Due in one year or less $ 14,991 $ 14,990 Total $ 14,991 $ 14,990 | The amortized cost and fair value of the Company’s available-for-sale Amortized Cost Fair Value Due in one year or less $ 25,969 $ 25,746 Due after one year through two years — — Total $ 25,969 $ 25,746 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Schedule of Property and Equipment | Property and equipment as of June 30, 2020 and December 31, 2019 consisted of the following (in thousands): June 30, December 31, Equipment $ 1,278 $ 1,278 Furniture and fixtures 423 450 Leasehold improvements 1,356 1,356 Total property and equipment 3,057 3,084 Less: accumulated depreciation and amortization (1,014 ) (850 ) Property and equipment, net $ 2,043 $ 2,234 | Property and equipment as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, December 31, Equipment $ 1,278 $ 1,064 Furniture and fixtures 450 400 Leasehold improvements 1,356 1,347 Total property and equipment 3,084 2,811 Less: accumulated depreciation (850 ) (492 ) Property and equipment, net $ 2,234 $ 2,319 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Summary of Assets and Liabilities Measured at Fair Value | A summary of the assets and liabilities that are measured at fair value as of June 30, 2020 and December 31, 2019 is as follows (in thousands): Fair Value Measurement at June 30, 2020 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 7,012 $ 7,012 $ — $ — United States treasury securities 14,990 — 14,990 — Total $ 22,002 $ 7,012 $ 14,990 $ — Liabilities: Warrant liabilities $ 38 $ — $ — $ 38 Total $ 38 $ — $ — $ 38 Fair Value Measurement at December 31, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 21,065 $ 21,065 $ — $ — United States treasury securities (1) 5,982 — 5,982 — Fixed income securities 25,746 — 25,746 — Total $ 52,793 $ 21,065 $ 31,728 $ — Liabilities: Warrant liabilities $ 299 $ — $ — $ 299 Total $ 299 $ — $ — $ 299 (1) Money market funds and United States treasury securities with maturities of less than 90 days at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value. | A summary of the assets and liabilities that are measured at fair value as of December 31, 2019 and 2018 is as follows (in thousands): Fair Value Measurement at December 31, 2019 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 21,065 $ 21,065 $ — $ — United States treasury securities (1) 5,982 5,982 Fixed income securities 25,746 — 25,746 — Total $ 52,793 $ 21,065 $ 31,728 $ — Liabilities: Warrant liabilities $ 299 $ — $ — $ 299 Total $ 299 $ — $ — $ 299 Fair Value Measurement at December 31, 2018 Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 13,264 $ 13,264 $ — $ — Fixed income securities 49,718 — 49,718 — Total $ 62,982 $ 13,264 $ 49,718 $ — Liabilities: Warrant liabilities $ 8,511 $ — $ — $ 8,511 Total $ 8,511 $ — $ — $ 8,511 (1) Money market funds and United States treasury securities with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying consolidated balance sheets and are recognized at fair value. |
Summary of Change in Company's Level 3 Liabilities, Warrants Issued in a Private Placement | The following table reflects the change in the Company’s Level 3 liabilities, which consists of the warrants issued in a private placement in November 2016 (see Note 7), for the three months ended June 30, 2020 (in thousands): November Private Placement Warrants Balance at December 31, 2018 $ 8,511 Change in fair value (8,212 ) Balance at December 31, 2019 299 Change in fair value (261 ) Balance at June 30, 2020 $ 38 | The following table reflects the change in the Company’s Level 3 liabilities, which consist of the warrants issued in a private placement in November 2016 (see Note 7), for the years ended December 31, 2019 and 2018 (in thousands): November Private Placement Warrants Balance at December 31, 2017 $ 13,128 Change in fair value (4,617 ) Balance at December 31, 2018 $ 8,511 Change in fair value (8,212 ) Balance at December 31, 2019 $ 299 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | ||
Schedule of Accrued Expenses | Accrued expenses as of June 30, 2020 and December 31, 2019 consisted of the following (in thousands): June 30, December 31, Preclinical and clinical studies $ 1,124 $ 1,473 Compensation and benefits 765 614 Accounting and legal 254 240 Other 96 111 Total accrued expenses and other current liabilities $ 2,239 $ 2,438 | Accrued expenses as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, December 31, 2019 2018 Preclinical and clinical studies $ 1,473 $ 941 Compensation and benefits 614 830 Accounting and legal 240 227 Other 111 369 Total accrued expenses and other current liabilities $ 2,438 $ 2,367 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | ||
Summary of Assumptions Used to Record Fair Value of Warrants | A summary of the Black-Scholes pricing model assumptions used to record the fair value of the warrants is as follows: June 30, 2020 December 31, 2019 Risk-free interest rate 0.2 % 1.6 % Expected term (in years) 1.4 1.9 Expected volatility 80.9 % 100.0 % Expected dividend yield 0 % 0 % | A summary of the Black Scholes pricing model assumptions used to record the fair value of the warrants is as follows: For the Year Ended December 31, 2019 2018 Risk-free interest rate 1.6 % 2.5 % Expected term (in years) 1.9 2.9 Expected volatility 100.0 % 78.1 % Expected dividend yield 0 % 0 % |
Summary of Warrant Activity | A summary of the warrant activity for the six months ended June 30, 2020 and for the year ended December 31, 2019 is as follows: Warrants Outstanding at December 31, 2018 1,662,124 Grants 265,000 Exercises — Expirations/cancellations — Outstanding at December 31, 2019 1,927,124 Grants — Exercises — Expirations/cancellations — Outstanding at June 30, 2020 1,927,124 | A summary of the warrant activity for the years ended December 31, 2019 and 2018 is as follows: Warrants Outstanding at December 31, 2017 1,787,124 Grants — Exercises — Expirations/cancellations (125,000 ) Outstanding at December 31, 2018 1,662,124 Grants 265,000 Exercises — Expirations/cancellations — Outstanding at December 31, 2019 1,927,124 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Summary of Option Activity | The following table summarizes the option activity under the Stock Incentive Plans for the six months ended June 30, 2020 and the year ended December 31, 2019: Options Weighted- Exercise Price Per Share Aggregate Intrinsic Value Outstanding at December 31, 2018 1,299,565 $ 11.18 $ 881,385 Granted 395,500 9.61 — Exercised — — — Cancelled (22,750 ) 13.36 — Outstanding at December 31, 2019 1,672,315 10.78 — Granted 270,000 1.44 — Exercised — — — Cancelled (426,040 ) 10.45 — Options outstanding at June 30, 2020 1,516,275 $ 9.21 $ — Options exercisable at June 30, 2020 1,017,853 $ 10.79 $ — | The following table summarizes the option activity under the Stock Incentive Plans for the years ended December 31, 2019 and 2018: Options Weighted- Exercise Price Per Share Aggregate Intrinsic Value Options outstanding at December 31, 2017 988,565 $ 10.83 $ 2,617,859 Granted 311,000 12.28 — Exercised — — — Cancelled — — — Options outstanding at December 31, 2018 1,299,565 $ 11.18 $ 2,617,859 Granted 395,500 9.61 — Exercised — — — Cancelled (22,750 ) 13.36 — Options outstanding at December 31, 2019 1,672,315 $ 10.78 $ — Options exercisable at December 31, 2019 1,072,811 $ 11.13 $ — |
Summary of Assumptions to Determine Fair Value of Stock Options Granted to Employees and Directors | The assumptions the Company used to determine the fair value of stock options granted to employees and directors during the six months ended June 30, 2020 and 2019 are as follows, presented on a weighted-average basis: For the Six Months Ended June 30, 2020 2019 Risk-free interest rate 0.7 % 2.6 % Expected term (in years) 5.9 6.0 Expected volatility 82.8 % 81.1 % Expected dividend yield 0 % 0 % | The assumptions the Company used to determine the fair value of stock options granted in 2019 and 2018 are as follows, presented on a weighted-average basis: For the Year Ended December 31, 2019 2018 Risk-free interest rate 2.5 % 2.5 % Expected term (in years) 5.9 5.9 Expected volatility 81.1 % 82.5 % Expected dividend yield 0 % 0 % |
Summary of RSU Activity | The following table is a rollforward of all RSU activity under the Stock Incentive Plans for the six months ended June 30, 2020: Restricted Stock Units Weighted-Average Grant Date Fair Value Total nonvested units at December 31, 2019 139,350 $ 7.86 Granted 559,000 1.41 Vested — — Cancelled (164,350 ) 6.88 Total nonvested units at June 30, 2020 534,000 $ 1.07 | The following table is a rollforward of RSU activity under the Stock Incentive Plans for the year ended December 31, 2019: Restricted Stock Units Weighted-Average Grant Date Fair Value Total nonvested units at December 31, 2018 — $ — Granted 203,700 8.49 Vested — — Cancelled (64,350 ) 9.83 Total nonvested units at December 31, 2019 139,350 $ 7.86 |
Summary of Stock-Based Compensation Expense | The following table summarizes the Company’s stock-based compensation expense for the three and six months ended June 30, 2020 and 2019 (in thousands): For the Three Months For the Six Months 2020 2019 2020 2019 Stock-based compensation: Research and development $ 171 $ 339 $ 446 $ 656 General and administrative 303 702 845 1,357 Total Stock-based compensation $ 474 $ 1,041 $ 1,291 $ 2,013 | The following table summarizes the stock-based compensation expense for the years ended December 31, 2019 and 2018 (in thousands): For the Year Ended 2019 2018 Stock-based compensation: Research and development $ 1,223 $ 843 General and administrative 2,144 1,933 Total Stock-based compensation $ 3,367 $ 2,776 |
Summary of Shares of Common Stock Reserved | As of June 30, 2020 and December 31, 2019, the Company reserved the following shares of common stock for issuance of shares resulting from exercise of outstanding warrants and options, convertible shares from the Convertible Term Loan, as well as issuance of shares available for grant under the Stock Incentive Plans: June 30, December 31, 2020 2019 IPO warrants 28,347 28,347 November private placement warrants 1,633,777 1,633,777 Convertible term loan — 2,329,143 Pontifax warrants 250,000 250,000 September 2019 warrants 15,000 15,000 Amended and restated 2015 stock incentive plan 3,266,451 2,160,338 Inducement awards 90,000 90,000 Total 5,283,575 6,506,605 | As of December 31, 2019 and 2018, the Company reserved the following shares of common stock for issuance of shares resulting from the exercise of outstanding warrants and options, as well as the future issuance of shares available for grant under the Stock Incentive Plans: December 31, 2019 2018 IPO Warrants 28,347 28,347 November Private Placement Warrants 1,633,777 1,633,777 Convertible Term Loan and Accrued Interest Payable 2,329,143 — Pontifax Warrants 250,000 — September 2019 Warrants 15,000 — 2015 Amended and Restated Stock Incentive Plan 2,160,338 2,238,887 Inducement Awards 90,000 50,000 Total 6,506,605 3,951,011 |
Leases (Tables)
Leases (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Summary of Other Information Related to Leases | Other information related to leases as of June 30, 2020 and 2019 was as follows: For the Three Months For the Six 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases (in thousands) $ 147 $ 91 $ 291 $ 130 Right-of-use Operating leases (in thousands) $ — $ 2,980 $ — $ 2,980 | Other information related to leases as of December 31, 2019 was as follows: For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases (in thousands) $ 417 Right-of-use Operating leases (in thousands) $ 2,980 Weighted Average Remaining Lease Term Operating leases 8.3 years Weighted Average Discount Rate Operating leases 8.0 % |
Summary of Maturities of Operating Lease Liabilities | The following table summarizes the Company’s maturities of operating lease liabilities as of June 30, 2020 (in thousands): Year 2020 (excluding the six months ended June 30, 2020) $ 297 2021 508 2022 450 2023 462 2024 474 Thereafter 1,931 Total lease payments $ 4,122 Less: present value discount (1,070 ) Total $ 3,052 | The following table summarizes the Company’s maturities of operating lease liabilities as of December 31, 2019 (in thousands): Year 2020 $ 588 2021 508 2022 450 2023 462 2024 474 Thereafter 1,931 Total lease payments $ 4,413 Less: present value discount (1,189 ) Total $ 3,224 |
Summary of Aggregate Future Minimum Non-Cancellable Commitments Under Operating Leases | For comparative purposes, the Company’s aggregate future minimum non-cancellable Year 2019 $ 417 2020 588 2021 508 2022 450 2023 462 Thereafter 2,405 Total minimum lease payments $ 4,830 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Statutory U.S. Federal Tax Rate with Effective Tax Rate | A reconciliation of the statutory U.S. Federal Tax Rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2019 2018 U.S. statutory federal income tax rate (21.0 )% (21.0 )% State income taxes, net of federal income tax benefit (8.4 )% (7.6 )% Warrant adjustment (7.2 )% (4.2 )% Permanent items 0.7 % 0.6 % R&D credit (0.6 )% (0.6 )% Change in valuation allowance 36.5 % 32.7 % Change in federal rate impact — — Other — 0.1 % Effective income tax rate 0.0 % 0.0 % |
Components of Deferred Tax Assets | The significant components of the Company’s deferred tax assets as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Net operating loss carryforwards $ 31,637 $ 23,582 Research and development credits 798 649 Lease liability 881 — Accrued expenses 173 209 License payments 561 612 Stock based compensation 2,004 1,383 Other – net 101 138 Deferred tax asset 36,155 26,573 Valuation allowance (35,389 ) (26,536 ) Net deferred tax asset $ 766 $ 37 Right of use assets $ (742 ) $ — Property and equipment (24 ) (37 ) Net deferred tax liability $ (766 ) $ — Net deferred tax asset and liability $ — $ — |
Convertible Term Loan (Tables)
Convertible Term Loan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments on Convertible Term Loan | The following table summarizes the Company’s future principal debt payments on the Convertible Term Loan as of December 31, 2019 (in thousands): December 31, 2019 2020 $ — 2021 2,500 2022 10,000 2023 7,500 Total principal payments $ 20,000 Less: unamortized debt discount (930 ) Term loan, long-term $ 19,070 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | Apr. 08, 2020USD ($) | Jun. 30, 2020USD ($)SegmentSubsidiary | Dec. 31, 2019USD ($)SegmentSubsidiary | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Nature of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Right-of-use-assets | $ 2,576,000 | $ 2,717,000 | |||
Lease liabilities | $ 3,052,000 | $ 3,224,000 | |||
Number of wholly owned subsidiaries | Subsidiary | 3 | 3 | |||
Accumulated deficit | $ (140,887,000) | $ (126,165,000) | $ (102,068,000) | ||
Cash, cash equivalents and marketable securities | 23,500,000 | 54,500,000 | |||
Restricted cash | 234,000 | 234,000 | 234,000 | ||
Impairment of long-lived assets | 0 | 0 | |||
Income tax benefit | 0 | 0 | |||
Uncertain tax positions | 0 | 0 | 0 | ||
Indemnification obligations loss | 0 | 0 | |||
Outstanding material claims | 0 | 0 | |||
Indemnification obligation reserve | $ 0 | $ 0 | |||
Number of operating segment | Segment | 1 | 1 | |||
United States Treasury Securities [Member] | |||||
Nature of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents fair value | $ 6,000,000 | ||||
Money Market Funds [Member] | |||||
Nature of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents fair value | $ 7,000,000 | $ 21,100,000 | $ 13,300,000 | ||
Convertible Term Loan [Member] | Prepayment Notice and Pay-Off Letter [Member] | |||||
Nature of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Repayment of long-term debt | $ 20,000,000 | ||||
ASU 2016-02 [Member] | |||||
Nature of Business and Summary of Significant Accounting Policies [Line Items] | |||||
Right-of-use-assets | $ 3,000,000 | ||||
Lease liabilities | $ 3,400,000 |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Property and Equipment (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | 5 years |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | 7 years |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | 5 years |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | Lesser of 10 years or the remaining term of the respective lease | Lesser of 10 years or the remaining term of the respective lease |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||||
Net loss | $ (6,544) | $ (4,555) | $ (14,722) | $ (9,750) | $ (24,097) | $ (22,854) |
Weighted-average number of shares outstanding - basic and diluted | 17,052,088 | 16,443,379 | 16,787,919 | 16,440,192 | 16,454,083 | |
Net loss per common share - basic and diluted | $ (0.38) | $ (0.28) | $ (0.88) | $ (0.59) | $ (1.46) | |
Less: decrease in change in fair value of warrant liabilities | $ (22) | $ (4,885) | $ (261) | $ (7,706) | $ (8,212) | (4,617) |
Net loss available to common shareholders | $ (27,471) | |||||
Weighted-average number of shares outstanding: | ||||||
Basic | 16,454,083 | 14,372,174 | ||||
Effect of dilutive securities: | ||||||
Common stock warrants | 246,802 | |||||
Dilutive potential common shares | 14,618,976 | |||||
Net loss per common share: | ||||||
Basic | $ (1.46) | $ (1.59) | ||||
Diluted | $ (1.46) | $ (1.88) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||||
Common stock warrant | 5,283,575 | 5,283,575 | 6,506,605 | 3,951,011 | |||
Dilutive shares of common stock warrants | 246,802 | ||||||
Average stock price per share | $ 12.71 | ||||||
Change in fair value of warrant liabilities | $ (22) | $ (4,885) | $ (261) | $ (7,706) | $ (8,212) | $ (4,617) | |
Private Placement [Member] | |||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||||
Common stock warrant | 1,633,777 | ||||||
Exercise price | $ 10.79 | $ 10.79 |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Weighted-Average Shares Outstanding (Detail) - shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Convertible Debt [Member] | ||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||
Potentially dilutive securities outstanding excluded from the computation of diluted weighted-average shares outstanding | 2,329,143 | |||||
Stock Options [Member] | ||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||
Potentially dilutive securities outstanding excluded from the computation of diluted weighted-average shares outstanding | 1,901,665 | 1,349,565 | ||||
Common Stock Warrants [Member] | ||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||
Potentially dilutive securities outstanding excluded from the computation of diluted weighted-average shares outstanding | 1,927,124 | 1,662,124 | 1,927,124 | 1,662,124 | 1,927,124 | 28,347 |
Stock Options and Inducement Awards [Member] | ||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||
Potentially dilutive securities outstanding excluded from the computation of diluted weighted-average shares outstanding | 1,606,275 | 1,714,815 | 1,606,275 | 1,714,815 | ||
Restricted Stock Units [Member] | ||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||
Potentially dilutive securities outstanding excluded from the computation of diluted weighted-average shares outstanding | 534,000 | 185,800 | 534,000 | 185,800 |
Investments - Summary of Invest
Investments - Summary of Investments by Category (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Investments - Current: | |||
Debt securities - available for sale | $ 14,990 | $ 25,746 | $ 32,914 |
Total | $ 14,990 | $ 25,746 | 32,914 |
Investments - Noncurrent: | |||
Debt securities - available for sale | 16,804 | ||
Total | $ 16,804 |
Investments - Summary of Availa
Investments - Summary of Available-for-Sale Classified Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | $ 14,991 | $ 25,969 | |
Fair Value | 14,990 | 25,746 | |
Investments - Current [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | 14,991 | 25,969 | $ 32,941 |
Accumulated Unrealized Losses | (1) | (223) | (27) |
Fair Value | 14,990 | 25,746 | 32,914 |
Investments - Current [Member] | Corporate Bonds [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | 4,990 | 16,028 | |
Accumulated Unrealized Losses | (58) | (19) | |
Fair Value | 4,932 | 16,009 | |
Investments - Current [Member] | United States Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | 14,991 | 20,979 | 16,913 |
Accumulated Unrealized Losses | (1) | (165) | (8) |
Fair Value | $ 14,990 | $ 20,814 | 16,905 |
Investments - Noncurrent [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | 16,782 | ||
Accumulated Unrealized Gains | 22 | ||
Fair Value | 16,804 | ||
Investments - Noncurrent [Member] | Corporate Bonds [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | 4,930 | ||
Accumulated Unrealized Gains | 2 | ||
Fair Value | 4,932 | ||
Investments - Noncurrent [Member] | United States Treasury Securities [Member] | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Cost Basis | 11,852 | ||
Accumulated Unrealized Gains | 20 | ||
Fair Value | $ 11,872 |
Investments - Summary of Avai_2
Investments - Summary of Available-for-Sale Classified Investments (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Unrealized losses included in cash and cash equivalents | $ (12) |
Total net unrealized losses | $ (235) |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Available-for-Sale Investments, by Contract Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 14,991 | $ 25,969 |
Cost Basis | 14,991 | 25,969 |
Due in one year or less, Fair Value | 14,990 | 25,746 |
Total, Fair Value | $ 14,990 | $ 25,746 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 3,057 | $ 3,084 | $ 2,811 |
Less: accumulated depreciation and amortization | (1,014) | (850) | (492) |
Property and equipment, net | 2,043 | 2,234 | 2,319 |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 1,278 | 1,278 | 1,064 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 423 | 450 | 400 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 1,356 | $ 1,356 | $ 1,347 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||||||
Depreciation expense | $ 95 | $ 88 | $ 191 | $ 171 | $ 357 | $ 288 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 7,000 | $ 21,100 | $ 13,300 |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Total | 22,002 | 52,793 | 62,982 |
Liabilities, Total | 38 | 299 | 8,511 |
Carrying Value [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 7,012 | 21,065 | 13,264 |
Carrying Value [Member] | United States Treasury Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed income securities | 14,990 | 5,982 | |
Carrying Value [Member] | Fixed Income Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed income securities | 25,746 | 49,718 | |
Carrying Value [Member] | Warrant Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liabilities | 38 | 299 | 8,511 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Total | 7,012 | 21,065 | 13,264 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 7,012 | 21,065 | 13,264 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Total | 14,990 | 31,728 | 49,718 |
Significant Other Observable Inputs (Level 2) [Member] | United States Treasury Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed income securities | 14,990 | 5,982 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed income securities | 25,746 | 49,718 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities, Total | 38 | 299 | 8,511 |
Significant Unobservable Inputs (Level 3) [Member] | Warrant Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liabilities | $ 38 | $ 299 | $ 8,511 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Change in Company's Level 3 Liabilities, Warrants Issued in Private Placement (Detail) - Private Placement [Member] - Warrants [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Beginning balance | $ 299 | $ 8,511 | $ 13,128 |
Change in fair value | (261) | (8,212) | (4,617) |
Ending balance | $ 38 | $ 299 | $ 8,511 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities And Other Liabilities [Abstract] | |||
Preclinical and clinical studies | $ 1,124 | $ 1,473 | $ 941 |
Compensation and benefits | 765 | 614 | 830 |
Accounting and legal | 254 | 240 | 227 |
Other | 96 | 111 | 369 |
Total accrued expenses and other current liabilities | $ 2,239 | $ 2,438 | $ 2,367 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Nov. 30, 2016 | Jun. 30, 2016 | May 31, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 08, 2020 | Sep. 19, 2019 | |
Class of Warrant or Right [Line Items] | ||||||||||||
Expected life (in years) | 5 years 10 months 24 days | 6 years | 5 years 10 months 24 days | 5 years 10 months 24 days | ||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Long-term debt | $ 20,000 | |||||||||||
Amount included in loss on extinguishment of convertible term loan | $ (1,207) | $ (1,207) | ||||||||||
Change in fair value of warrant liabilities | $ (22) | $ (4,885) | $ (261) | $ (7,706) | (8,212) | $ (4,617) | ||||||
Convertible Term Loan [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Long-term debt | $ 20,000 | $ 20,000 | $ 20,000 | |||||||||
Common Stock Warrants [Member] | Pontifax [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants issued to purchase shares of common stock | 250,000 | 250,000 | 250,000 | 250,000 | ||||||||
Exercise price | $ 6.57 | $ 6.57 | $ 2.08 | |||||||||
Warrant expiration date | Sep. 19, 2025 | |||||||||||
Expected life (in years) | 6 years | 6 years | 6 years | |||||||||
Expected volatility of common stock Minimum | 83.20% | |||||||||||
Risk free interest rate | 1.70% | |||||||||||
Dividend yield | 0.00% | |||||||||||
Fair value of equity | $ 600 | $ 600 | ||||||||||
Amount included in loss on extinguishment of convertible term loan | $ 500 | |||||||||||
Incremental expense of warrant liabilities | $ 54,000 | |||||||||||
May 2016 IPO warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Expected life (in years) | 4 years 11 months 26 days | |||||||||||
Expected volatility of common stock Minimum | 87.00% | |||||||||||
Risk free interest rate | 1.20% | |||||||||||
Dividend yield | 0.00% | |||||||||||
June 2016 IPO warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Expected life (in years) | 4 years 11 months 1 day | |||||||||||
Expected volatility of common stock Minimum | 87.00% | |||||||||||
Risk free interest rate | 1.23% | |||||||||||
Dividend yield | 0.00% | |||||||||||
September 2019 Warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants issued to purchase shares of common stock | 15,000 | |||||||||||
Exercise price | $ 4.21 | |||||||||||
Warrant expiration date | Sep. 19, 2021 | |||||||||||
Expected life (in years) | 2 years | |||||||||||
Expected volatility of common stock Minimum | 69.40% | |||||||||||
Risk free interest rate | 1.70% | |||||||||||
Dividend yield | 0.00% | |||||||||||
Fair value of equity | $ 19,000 | |||||||||||
Change in fair value of warrant liabilities | $ 13,000 | 6,000 | ||||||||||
IPO [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants issued to purchase shares of common stock | 747 | 27,600 | ||||||||||
Exercise price | $ 15 | $ 15 | ||||||||||
Warrant expiration date | May 5, 2021 | |||||||||||
Fair value of equity | $ 200 | 200 | ||||||||||
Private Placement [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants issued to purchase shares of common stock | 1,644,737 | |||||||||||
Exercise price | $ 10.79 | $ 10.79 | ||||||||||
Warrant expiration date | Nov. 23, 2021 | |||||||||||
Issuance of common stock | 1,644,737 | |||||||||||
Shares issued price per share | $ 9.12 | |||||||||||
Private Placement [Member] | Common Stock Warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Fair value of equity | $ 8,300 | $ 38,000 | $ 38,000 | $ 300 | $ 8,500 | |||||||
Shares Exercised During the period | 10,960 | 10,960 | ||||||||||
BioHEP Technologies Ltd. [Member] | Common Stock Warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Exercise price | $ 16 | |||||||||||
Warrant expiration date | Aug. 1, 2018 | |||||||||||
Expected life (in years) | 2 years 7 months 6 days | |||||||||||
Expected volatility of common stock Minimum | 71.00% | |||||||||||
Risk free interest rate | 1.01% | |||||||||||
Dividend yield | 0.00% | |||||||||||
Fair value of equity | $ 800 | |||||||||||
Issuance of common stock | 125,000 |
Warrants - Summary of Assumptio
Warrants - Summary of Assumptions Used to Record Fair Value of Warrants (Detail) - Warrants [Member] | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Risk-Free Interest Rate [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value input | 1.60% | 0.20% | 2.50% |
Expected Term [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value input (in years) | 1 year 10 months 24 days | 1 year 4 months 24 days | 2 years 10 months 24 days |
Expected Volatility [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value input | 100.00% | 80.90% | 78.10% |
Expected Dividend Yield [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value input | 0.00% | 0.00% | 0.00% |
Warrants - Summary of Warrant A
Warrants - Summary of Warrant Activity (Detail) - Common Stock Warrants [Member] - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Warrant or Right [Line Items] | |||
Outstanding, Beginning Balance | 1,662,124 | 1,662,124 | 1,787,124 |
Grants | 0 | 265,000 | 0 |
Exercises | 0 | 0 | 0 |
Expirations/cancellations | 0 | 0 | (125,000) |
Outstanding, Ending balance | 1,927,124 | 1,927,124 | 1,662,124 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | May 11, 2016 | Apr. 30, 2020 | Mar. 31, 2020 | Feb. 28, 2019 | Jan. 31, 2019 | Aug. 31, 2018 | Mar. 31, 2018 | Jan. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | Jun. 30, 2018 | Aug. 31, 2017 | Apr. 30, 2014 |
Class of Stock [Line Items] | ||||||||||||||||||
Net proceeds from initial public offering of common stock | $ 37,960,000 | |||||||||||||||||
Stock options granted | 0 | |||||||||||||||||
Stock-based compensation expense | $ 1,291,000 | $ 2,013,000 | $ 3,367,000 | $ 2,776,000 | ||||||||||||||
Relative Total Share Return Units [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Weighted-average fair value of restricted stock units granted | $ 6.62 | |||||||||||||||||
Performance Goal Milestone Units [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Weighted-average fair value of all stock options granted | $ 10.35 | |||||||||||||||||
2018 New Hire Inducement Stock Option Award [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Issuance of common stock | 50,000 | |||||||||||||||||
Shares issued price per share | $ 12.02 | |||||||||||||||||
2019 New Hire Inducement Stock Option Award [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Issuance of common stock | 40,000 | |||||||||||||||||
Shares issued price per share | $ 10.39 | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | In January 2019, the Company issued performance-based RSUs to senior management under the Amended and Restated 2015 Plan that represented shares potentially issuable in the future subject to the satisfaction of certain performance milestones as well as a service condition. | In January 2019, the Company issued RSUs to senior management under the 2015 Plan that represent shares potentially issuable in the future subject to the satisfaction of certain performance milestones as well as a service condition | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award, Vesting Description | The vesting of 50% of the performance-based RSUs was based upon the Company’s performance relative to a peer group over a two-year performance period, from January 1, 2019 through December 31, 2020, measured by the Company’s relative total shareholder return. The vesting of 25% of the performance-based RSUs was based on the achievement of a performance goal milestone as of December 31, 2019 and the vesting of the remaining 25% of the performance-based RSUs was based upon the achievement of a performance goal milestone as of December 31, 2020. | The vesting of 50% of the RSUs is based upon the Company’s performance relative to a peer group over a two-year performance period, from January 1, 2019 through December 31, 2020, measured by the Company’s relative total shareholder return. The vesting of 25% of the RSUs is based on the achievement of a performance goal milestone as of December 31, 2019 and the vesting of the remaining 25% of the RSUs is based upon the achievement of a performance goal milestone as of December 31, 2020. | ||||||||||||||||
Share based compensation, milestone base goals and shares returned | 46,450 | |||||||||||||||||
Reversal of stock-based compensation expense upon non-achievement of clinical milestone | $ 100,000 | |||||||||||||||||
Stock-based compensation expense | $ 300,000 | 300,000 | ||||||||||||||||
Reduction in stock-based compensation | $ 200,000 | |||||||||||||||||
Cancellation of shares | 139,350 | 164,350 | 64,350 | |||||||||||||||
RSUs issued | 559,000 | 203,700 | ||||||||||||||||
Weighted-average fair value of restricted stock units granted | $ 1.41 | $ 8.49 | ||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Senior Management [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | In April 2020, the Company issued 360,000 performance-based RSUs to senior management under the Amended and Restated 2015 Plan that represented shares potentially issuable in the future subject to the satisfaction of certain performance milestones. | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award, Vesting Description | The vesting of 50% of the performance-based RSUs is based on the achievement of a performance goal milestone as of December 31, 2020 and the vesting of the remaining 50% of the performance-based RSUs is based upon the achievement of a performance goal milestone as of December 31, 2021. For the three and six months ended June 30, 2020, the Company recognized approximately $44,000 expense related to the performance-based RSUs. | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Performance Relative to a Peer Group over a Two-year Performance Period, from January 1, 2019 through December 31, 2020 [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 50.00% | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Achievement of a Performance Goal Milestone as of December 31, 2019 [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 25.00% | |||||||||||||||||
Reversal of stock-based compensation expense upon non-achievement of clinical milestone | $ 300,000 | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Achievement of a Performance Goal Milestone as of December 31, 2020 [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 25.00% | |||||||||||||||||
Reversal of stock-based compensation expense upon non-achievement of clinical milestone | $ 100,000 | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Achievement of a Performance Goal Milestone as of December 31, 2020 [Member] | Senior Management [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 50.00% | |||||||||||||||||
Performance-Based Restricted Stock Units [Member] | Achievement of a Performance Goal Milestone as of December 31, 2021 [Member] | Senior Management [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 50.00% | |||||||||||||||||
Stock-based compensation expense | $ 44,000 | $ 44,000 | ||||||||||||||||
RSUs issued | 360,000 | |||||||||||||||||
Time-Based Restricted Stock Units [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | The vesting for the time-based RSUs is 50% after one-year from the grant date and the remaining 50% as of December 31, 2021. | |||||||||||||||||
Stock-based compensation expense | $ 32,000 | $ 43,000 | ||||||||||||||||
RSUs issued | 199,000 | |||||||||||||||||
Weighted-average fair value of restricted stock units granted | $ 1.41 | $ 1.41 | ||||||||||||||||
Time-Based Restricted Stock Units [Member] | Achievement of a Performance Goal Milestone as of December 31, 2021 [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 50.00% | |||||||||||||||||
Time-Based Restricted Stock Units [Member] | Vesting After One-Year from Grant Date | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Vesting percentage | 50.00% | |||||||||||||||||
Common Stock [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Issuance of common stock | 3,246,079 | |||||||||||||||||
2014 Stock Incentive Plan [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of authorized shares of common stock to be issued | 750,000 | |||||||||||||||||
Number of shares remain available for grant | 0 | |||||||||||||||||
Weighted-average remaining contractual life | 6 years 7 months 6 days | 7 years 2 months 12 days | ||||||||||||||||
Weighted-average fair value of all stock options granted | $ 0.99 | $ 6.74 | ||||||||||||||||
2014 Stock Incentive Plan [Member] | Common Stock [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares issued price per share | $ 1.47 | $ 1.47 | $ 1.58 | $ 10.39 | ||||||||||||||
2015 Stock Incentive Plan [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of authorized shares of common stock to be issued | 2,816,863 | 2,816,863 | 1,666,863 | |||||||||||||||
Number of shares remain available for grant | 1,216,176 | 1,216,176 | 348,673 | |||||||||||||||
Number of shares common stock reserved for issuance, increase | 800,000 | 1,150,000 | ||||||||||||||||
Expiry date of stock options awarded | 10 years | |||||||||||||||||
2014 and 2015 Stock Incentive Plans [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of authorized shares of common stock to be issued | 2,300,000 | 3,450,000 | 3,450,000 | |||||||||||||||
Stock options granted | 270,000 | 395,500 | 311,000 | |||||||||||||||
Fair value of stock options vested | $ 1,500,000 | $ 2,700,000 | ||||||||||||||||
Unrecognized stock-based compensation expense | $ 2,400,000 | $ 2,400,000 | $ 4,100,000 | |||||||||||||||
Weighted-average remaining vesting period | 2 years 2 months 12 days | 2 years 5 months 19 days | ||||||||||||||||
2014 and 2015 Stock Incentive Plans [Member] | Performance-Based Restricted Stock Units [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Unrecognized stock-based compensation expense | $ 300,000 | |||||||||||||||||
Weighted-average remaining vesting period | 1 year | |||||||||||||||||
2014 and 2015 Stock Incentive Plans [Member] | Time-Based Restricted Stock Units [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Unrecognized stock-based compensation expense | $ 500,000 | $ 500,000 | ||||||||||||||||
Weighted-average remaining vesting period | 1 year 6 months | |||||||||||||||||
Maximum [Member] | 2015 Stock Incentive Plan [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of shares remain available for grant | 116,863 | |||||||||||||||||
Sales Agreement [Member] | Cantor Fitzgerald & Co. [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Sales commission percentage on common stock | 3.00% | |||||||||||||||||
Issuance of common stock | 649,095 | 600 | 690,895 | 600 | 600 | 217,329 | ||||||||||||
Weighted average selling price per share | $ 1.32 | $ 10.03 | $ 1.32 | $ 10.03 | $ 10.03 | $ 15.42 | ||||||||||||
Net proceeds from initial public offering of common stock | $ 800,000 | $ 800,000 | $ 3,200,000 | |||||||||||||||
Sales Agreement [Member] | Cantor Fitzgerald & Co. [Member] | Maximum [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Aggregate offering price | $ 50,000,000 | |||||||||||||||||
Public Offering [Member] | Common Stock [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Issuance of common stock | 3,246,079 | |||||||||||||||||
Exercise of an option to purchase additional shares granted to underwriters in connection with offering | 246,079 | |||||||||||||||||
Net proceeds from initial public offering of common stock | $ 38,000,000 | |||||||||||||||||
Shares issued price per share | $ 12.50 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Option Activity (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Granted | 0 | |||
2014 and 2015 Stock Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Beginning Balance | 1,672,315 | 1,299,565 | 988,565 | |
Options Granted | 270,000 | 395,500 | 311,000 | |
Options Cancelled | (426,040) | (22,750) | ||
Options outstanding, Ending balance | 1,516,275 | 1,672,315 | 1,299,565 | |
Options exercisable | 1,017,853 | 1,072,811 | ||
Weighted-Average Exercise Price Per Share, Options outstanding, Beginning Balance | $ 10.78 | $ 11.18 | $ 10.83 | |
Weighted-Average Exercise Price Per Share, Granted | 1.44 | 9.61 | 12.28 | |
Weighted-Average Exercise Price Per Share, Cancelled | 10.45 | 13.36 | ||
Weighted-Average Exercise Price Per Share, Options outstanding, Ending Balance | 9.21 | 10.78 | $ 11.18 | |
Weighted-Average Exercise Price Per Share, Options exercisable | $ 10.79 | $ 11.13 | ||
Aggregate Intrinsic Value, Options outstanding, Beginning Balance | $ 881,385 | $ 2,617,859 | $ 2,617,859 | |
Aggregate Intrinsic Value, Options outstanding, Ending Balance | $ 881,385 | $ 2,617,859 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Assumptions to Determine Fair Value of Stock Options Granted to Employees and Directors (Detail) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Risk-free interest rate | 0.70% | 2.60% | 2.50% | 2.50% |
Expected term (in years) | 5 years 10 months 24 days | 6 years | 5 years 10 months 24 days | 5 years 10 months 24 days |
Expected volatility | 82.80% | 81.10% | 81.10% | 82.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of RSU Activity (Detail) - Performance-Based Restricted Stock Units [Member] - $ / shares | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested units, Beginning Balance | 139,350 | ||
Nonvested units, Granted | 559,000 | 203,700 | |
Nonvested units, Cancelled | (139,350) | (164,350) | (64,350) |
Nonvested units, Ending Balance | 534,000 | 139,350 | |
Weighted-Average Grant Date Fair Value Nonvested units, Beginning Balance | $ 7.86 | ||
Weighted-Average Grant Date Fair Value Granted | 1.41 | $ 8.49 | |
Weighted-Average Grant Date Fair Value Cancelled | 6.88 | 9.83 | |
Weighted-Average Grant Date Fair Value Nonvested units, Ending Balance | $ 1.07 | $ 7.86 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1,291 | $ 2,013 | $ 3,367 | $ 2,776 | ||
2014 and 2015 Stock Incentive Plans [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 474 | $ 1,041 | 1,291 | 2,013 | ||
2014 and 2015 Stock Incentive Plans [Member] | Stock Options [Member] | Research and Development [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 171 | 339 | 446 | 656 | 1,223 | 843 |
2014 and 2015 Stock Incentive Plans [Member] | Stock Options [Member] | General and Administrative [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 303 | $ 702 | $ 845 | $ 1,357 | $ 2,144 | $ 1,933 |
Stockholders' Equity - Summar_5
Stockholders' Equity - Summary of Shares of Common Stock Reserved (Detail) - shares | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 5,283,575 | 6,506,605 | 3,951,011 |
IPO Warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 28,347 | 28,347 | 28,347 |
November Private Placement Warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 1,633,777 | 1,633,777 | 1,633,777 |
Convertible Term Loan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 2,329,143 | ||
Pontifax Warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 250,000 | 250,000 | |
September 2019 Warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 15,000 | 15,000 | |
2015 Amended and Restated Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 3,266,451 | 2,160,338 | 2,238,887 |
Inducement Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved | 90,000 | 90,000 | 50,000 |
Convertible Term Loan - Additio
Convertible Term Loan - Additional Information (Detail) | Apr. 08, 2020USD ($)$ / shares | Sep. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)Trading$ / sharesshares | Dec. 31, 2018 | Sep. 19, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 20,000,000 | ||||||||
Expected life (in years) | 5 years 10 months 24 days | 6 years | 5 years 10 months 24 days | 5 years 10 months 24 days | |||||
Amount included in loss on extinguishment of convertible term loan | $ (1,207,000) | $ (1,207,000) | |||||||
Pontifax [Member] | Common Stock Warrants [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Incremental expense of warrant liabilities | $ 54,000,000 | ||||||||
Warrants issued to purchase shares of common stock | shares | 250,000 | 250,000 | 250,000 | 250,000 | |||||
Exercise price | $ / shares | $ 2.08 | $ 6.57 | $ 6.57 | ||||||
Expected life (in years) | 6 years | 6 years | 6 years | ||||||
Fair value of equity | $ 600,000 | $ 600,000 | |||||||
Amount included in loss on extinguishment of convertible term loan | $ 500,000 | ||||||||
Convertible Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||||||
Debt instrument, payment terms | The Convertible Term Loan provides for interest-only payments for twenty-four months and repayment of the aggregate outstanding principal balance of the Convertible Term Loan in quarterly installments starting upon expiration of the interest only period and continuing through September 19, 2023 (the “Maturity Date”). | ||||||||
Debt instrument, convertible, threshold trading days | Day | Trading | 30 | ||||||||
Long-term debt | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||||||
Debt instrument, maturity date | Sep. 23, 2023 | Sep. 19, 2023 | |||||||
Debt issuance cost | $ 400,000 | $ 400,000 | $ 400,000 | ||||||
Debt instrument, convertible, conversion price | $ / shares | $ 8.76 | $ 8.76 | $ 8.76 | ||||||
Prepayment charge percentage | 3.00% | 3.00% | |||||||
Minimum cash balance maintained in accounts | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | ||||||
Additional interest rate upon occurrence of an event of default | 4.00% | 4.00% | |||||||
Interest expense, debt | 35,000 | $ 0 | $ 511,000 | $ 0 | $ 500,000 | ||||
Convertible Term Loan [Member] | Prepayment Notice and Pay-Off Letter [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of long-term debt | $ 20,000,000 | ||||||||
Debt instrument prepayment fee | 300,000 | 300,000 | |||||||
Unamortized debt issuance cost | 400,000 | 400,000 | |||||||
Convertible Term Loan [Member] | Pontifax [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant costs | 600,000 | 600,000 | |||||||
Convertible Term Loan [Member] | Pontifax [Member] | Prepayment Notice and Pay-Off Letter [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized warrant costs | 500,000 | $ 500,000 | |||||||
Incremental expense of warrant liabilities | $ 54,000,000 |
Convertible Term Loan - Future
Convertible Term Loan - Future Principal Debt Payments on Convertible Term Loan (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 2,500 |
2022 | 10,000 |
2023 | 7,500 |
Total principal payments | 20,000 |
Less: unamortized debt discount | (930) |
Term loan, long-term | $ 19,070 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||||||
Operating leases, weighted average remaining lease term | 8 years | 8 years | 8 years 3 months 18 days | |||
Operating leases, weighted average discount rate | 8.00% | 8.00% | 8.00% | |||
Operating lease costs | $ 165,000 | $ 130,000 | $ 330,000 | $ 260,000 | $ 646,000 | |
Sublease income and variable lease cost payments | $ 21,000 | $ 18,000 | $ 50,000 | $ 37,000 | $ 81,000 | |
Operating leases, total rent expense | $ 429,000 | |||||
Principal Office and Laboratory Space [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating leases, weighted average remaining lease term | 8 years 3 months 18 days | 8 years 3 months 18 days | 8 years 3 months 18 days | |||
Operating leases, extendable lease term | 5 years | 5 years | 5 years | |||
Operating leases, option to extend lease | an option to extend the lease for up to 5 years | an option to extend the lease for up to 5 years | ||||
Operating Lease, existence of option to extend | true | true | ||||
Former Headquarters [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating leases, weighted average remaining lease term | 10 months 24 days | 10 months 24 days | 2 years | |||
Research And Development Facility [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Lease term expiration date | Jun. 30, 2018 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flow from operating leases (in thousands) | $ 147 | $ 91 | $ 291 | $ 130 | $ 417 |
Right-of-use assets obtained in exchange for lease obligations: | |||||
Operating leases (in thousands) | $ 2,980 | $ 2,980 | $ 2,980 | ||
Weighted Average Remaining Lease Term | |||||
Operating leases | 8 years | 8 years | 8 years 3 months 18 days | ||
Weighted Average Discount Rate | |||||
Operating leases | 8.00% | 8.00% | 8.00% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (excluding the six months ended June 30, 2020) | $ 297 | |
2020 & 2021 | 508 | $ 588 |
2021 & 2022 | 450 | 508 |
2022 & 2023 | 462 | 450 |
2023 & 2024 | 474 | 462 |
2024 | 474 | |
Thereafter | 1,931 | |
Thereafter | 1,931 | |
Total lease payments | 4,122 | 4,413 |
Less: present value discount | (1,070) | (1,189) |
Total | $ 3,052 | $ 3,224 |
Leases - Summary of Aggregate F
Leases - Summary of Aggregate Future Minimum Non-Cancellable Commitments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 417 |
2020 | 588 |
2021 | 508 |
2022 | 450 |
2023 | 462 |
Thereafter | 2,405 |
Total minimum lease payments | $ 4,830 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of The Statutory Federal Tax Rate to The Company's Effective Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
U.S. statutory federal income tax rate | (21.00%) | (21.00%) |
State income taxes, net of federal income tax benefit | (8.40%) | (7.60%) |
Warrant adjustment | (7.20%) | (4.20%) |
Permanent items | 0.70% | 0.60% |
R&D credit | (0.60%) | (0.60%) |
Change in valuation allowance | 36.50% | 32.70% |
Other | 0.10% | |
Effective income tax rate | 0.00% | 0.00% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of the Company's Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Net operating loss carryforwards | $ 31,637 | $ 23,582 |
Research and development credits | 798 | 649 |
Lease liability | 881 | |
Accrued expenses | 173 | 209 |
License payments | 561 | 612 |
Stock based compensation | 2,004 | 1,383 |
Other – net | 101 | 138 |
Deferred tax asset | 36,155 | 26,573 |
Valuation allowance | (35,389) | (26,536) |
Net deferred tax asset | 766 | 37 |
Right of use assets | (742) | |
Property and equipment | (24) | $ (37) |
Net deferred tax liability | $ (766) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | |
Income Taxes [Line Items] | |||
Increase in valuation allowance due to increase in deferred tax assets | $ 8,900,000 | $ 7,500,000 | |
Period for cumulative change in ownership | 3 years | ||
Cumulative change in ownership interest percentage | 50.00% | ||
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 115,600,000 | ||
Operating loss carryforwards expiration beginning year | 2029 | ||
Operating loss carryforwards expiration ending year | 2037 | ||
Net operating loss carryforwards with indefinite life | $ 54,100,000 | ||
Income tax credits | $ 300,000 | ||
Income tax credit carryforward expiration year | Dec. 31, 2039 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 116,500,000 | ||
Operating loss carryforwards expiration beginning year | 2030 | ||
Operating loss carryforwards expiration ending year | 2039 | ||
Income tax credits | $ 600,000 | ||
Income tax credit carryforward expiration year | Dec. 31, 2039 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Accruals for contingent liabilities | $ 0 | $ 0 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - Internal Revenue Code [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Sponsor Location [Extensible List] | gaap:DomesticPlanMember | us-gaap:DomesticPlanMember |
Defined Contribution Plan, Tax Status [Extensible List] | gaap:QualifiedPlanMember | gaap:QualifiedPlanMember |
Contribution by company | $ 0.2 | $ 0.1 |
Maximum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, employer matching contribution, percent of match | 4.00% | 4.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Jul. 29, 2020Director |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Number of board of directors | 8 |