Palvella Therapeutics (PVLA) 10-Q 11 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 05, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-37471
Entity Registrant Name	PIERIS PHARMACEUTICALS, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	30-0784346
Entity Address, Address Line One	255 State Street,
Entity Address, Address Line Two	9th Floor
Entity Address, City or Town	Boston,
Entity Address, State or Province	MA
Entity Address, Country	US
Entity Address, Postal Zip Code	02109
City Area Code	857
Local Phone Number	246-8998
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	PIRS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		74,101,330
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001583648
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 83,737	$ 117,764
Short term investments	16,531	0
Accounts receivable	1,644	3,313
Prepaid expenses and other current assets	9,837	6,548
Total current assets	111,749	127,625
Property and equipment, net	18,849	19,122
Operating lease right-of-use assets	3,844	3,909
Other non-current assets	2,673	2,904
Total assets	137,115	153,560
Current liabilities:
Accounts payable	4,496	8,609
Accrued expenses and other current liabilities	14,075	16,836
Deferred revenues, current portion	20,913	25,116
Total current liabilities	39,484	50,561
Deferred revenue, net of current portion	30,819	38,403
Operating lease liabilities	13,362	13,841
Total liabilities	83,665	102,805
Stockholders’ equity:
Preferred stock	0	0
Common stock	74	72
Additional paid-in capital	314,668	306,998
Accumulated other comprehensive income (loss)	953	829
Accumulated deficit	(262,245)	(257,144)
Total stockholders’ equity	53,450	50,755
Total liabilities and stockholders’ equity	$ 137,115	$ 153,560

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue
Customer revenue	$ 11,180	$ 14,866
Collaboration revenue	(192)	767
Total revenue	10,988	15,633
Operating expenses
Research and development	14,066	16,562
General and administrative	4,379	4,130
Total operating expenses	18,445	20,692
Loss from operations	(7,457)	(5,059)
Other income (expense)
Interest (expense) income	(3)	3
Grant income	2,130	0
Other income	229	884
Net loss	(5,101)	(4,172)
Other comprehensive income (loss):
Foreign currency translation	143	489
Unrealized loss on available-for-sale securities	(19)	0
Comprehensive loss	$ (4,977)	$ (3,683)
Net loss per share
Basic (in dollars per share)	$ (0.07)	$ (0.07)
Diluted (in dollars per share)	$ (0.07)	$ (0.07)
Weighted average number of common shares outstanding
Basic (in shares)	73,711	56,297
Diluted (in shares)	73,711	56,297

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	At the market offering	Preferred shares	Common shares	Common sharesAt the market offering	ATM proceeds receivable	ATM proceeds receivableAt the market offering	Additional paid-in capital	Additional paid-in capitalAt the market offering	Accumulated other comprehensive income (loss)	Accumulated deficit
Balance at beginning of period (in shares) at Dec. 31, 2020			14	56,003
Balance at beginning of period at Dec. 31, 2020	$ 31,027		$ 0	$ 56		$ 0		$ 242,672		$ (295)	$ (211,406)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(4,172)										(4,172)
Foreign currency translation adjustment	489									489	0
Stock based compensation expense	1,199							1,199
Issuance of common stock resulting from exercise of stock options (in shares)				10
Issuance of common stock resulting from exercise of stock options	20							20
Issuance of common stock pursuant to private placement offering (in shares)			0	3,706
Issuance of common stock pursuant to private placement offering	9,673			$ 4				9,669
Balance at end of period (in shares) at Mar. 31, 2021			14	59,719
Balance at end of period at Mar. 31, 2021	38,236		$ 0	$ 60		0		253,560		194	(215,578)
Balance at beginning of period (in shares) at Dec. 31, 2021			16	72,222
Balance at beginning of period at Dec. 31, 2021	50,755		$ 0	$ 72		0		306,998		829	(257,144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5,101)										(5,101)
Foreign currency translation adjustment	143									143
Unrealized loss on investments	(19)									(19)
Stock based compensation expense	1,178							1,178
Issuance of common stock resulting from exercise of stock options (in shares)				43
Issuance of common stock resulting from exercise of stock options	85							85
Issuance of common stock pursuant to offering (in shares)					1,833
Issuance of common stock pursuant to offering value		$ 6,409			$ 2		$ 0		$ 6,407
Balance at end of period (in shares) at Mar. 31, 2022			16	74,098
Balance at end of period at Mar. 31, 2022	$ 53,450		$ 0	$ 74		$ 0		$ 314,668		$ 953	$ (262,245)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Payments of stock issuance costs	$ 0.3
At the market offering
Payments of stock issuance costs	$ 0.3

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities:
Net loss	$ (5,101)	$ (4,172)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation and amortization	845	625
Right-of-use asset (accretion) amortization	(5)	(25)
Stock-based compensation	1,178	1,199
Other non-cash transactions	91	(41)
Changes in operating assets and liabilities	(19,651)	(9,724)
Net cash (used in) operating activities	(22,643)	(12,138)
Investing activities:
Purchases of property and equipment	(389)	(28)
Purchases of investments	(16,559)	0
Net cash (used in) investing activities	(16,948)	(28)
Financing activities:
Proceeds from exercise of stock options	85	20
Proceeds from issuance of common stock from private placement, net of issuance costs	0	9,673
Proceeds from issuance of common stock resulting from ATM sales, net of $0.3 million in transaction costs	6,473	0
Net cash provided by financing activities	6,558	9,693
Effect of exchange rate change on cash and cash equivalents	(994)	(1,128)
Net decrease in cash and cash equivalents	(34,027)	(3,601)
Cash and cash equivalents at beginning of period	117,764	70,436
Cash and cash equivalents at end of period	83,737	66,835
Supplemental cash flow disclosures:
Net unrealized loss on investments	(19)	0
Property and equipment included in accounts payable	$ 298	$ 36

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Statement of Cash Flows [Abstract]
Payments of stock issuance costs	$ 0.3

Corporate Information

Corporate Information	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Corporate Information	Corporate Information Pieris Pharmaceuticals, Inc. was founded in May 2013, and acquired 100% interest in Pieris Pharmaceuticals GmbH (formerly Pieris AG, a German company that was founded in 2001) in December 2014. Pieris Pharmaceuticals, Inc. and its wholly-owned subsidiaries, hereinafter collectively Pieris, or the Company, is a clinical-stage biopharmaceutical company that discovers and develops Anticalin-based drugs to target validated disease pathways in unique and transformative ways. Pieris’ corporate headquarters is located in Boston, Massachusetts and its research facility is located in Hallbergmoos, Germany. Pieris’ clinical pipeline includes an inhaled IL-4Rα antagonist Anticalin protein to treat moderate-to-severe asthma and an immuno-oncology, or IO, bispecific targeting 4-1BB and HER2. The Company’s core Anticalin technology and platform was developed in Germany, and the Company has partnership arrangements with several major multi-national pharmaceutical companies. The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, the need for additional capital, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval and reimbursement for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development of technological innovations by competitors, reliance on third-party manufacturers and the ability to transition from pilot-scale production to large-scale manufacturing of products. As of March 31, 2022, cash, cash equivalents, and investments were $100.3 million. The Company’s net loss was $5.1 million and $4.2 million for the quarters ended March 31, 2022 and 2021, respectively. The Company has incurred net losses since inception and had an accumulated deficit of $262.2 million as of March 31, 2022. Net losses and negative cash flows from operations have had, and will continue to have, an adverse effect on the Company’s stockholders’ equity and working capital. The Company expects to continue to incur operating losses for at least the next several years. The future success of the Company is dependent on its ability to identify and develop its product candidates, expand its corporate infrastructure and ultimately upon its ability to attain profitable operations. The Company has devoted substantially all of its financial resources and efforts to research and development and general and administrative expenses to support such research and development. The Company has several research and development programs underway in varying stages of development, and it expects that these programs will continue to require increasing amounts of cash for development, conducting clinical trials, and testing and manufacturing of product material. Cash necessary to fund operations will increase significantly over the next several years as the Company continues to conduct these activities necessary to pursue governmental regulatory approval of clinical-stage programs and other product candidates. The Company plans to raise additional capital to fulfill its operating and capital requirements through public or private equity financings, utilization of its current “ at the market offering ” program, or ATM Program, strategic collaborations, licensing arrangements, government grants and/or the achievement of milestones under its collaborative agreements. The funding requirements of the Company’s operating plans, however, are based on estimates that are subject to risks and uncertainties and may change as a result of many factors currently unknown. Although management continues to pursue these funding plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. Until such time that the Company can generate substantial product revenues, if ever, the Company expects to finance its cash needs through a combination of equity offerings, debt financings, strategic partnerships, licensing arrangements and government grants. The terms of any future financing may adversely affect the holdings or the rights of the Company’s existing stockholders. The Company believes that its currently available funds will be sufficient to fund the Company’s operations through at least the next twelve months from the issuance of this Quarterly Report on Form 10-Q. The Company’s belief with respect to its ability to fund operations is based on estimates that are subject to risks and uncertainties. If actual results are different from management’s estimates, the Company may need to seek additional funding. If the Company is unable to obtain additional funding on acceptable terms when needed, it may be required to defer or limit some or all of its research, development and/or clinical projects.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 2—Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. There have been no material additions to the significant accounting policies for the three months ended March 31, 2022. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring adjustments, and disclosures considered necessary for a fair presentation of interim period results have been included. Interim results for the three months ended March 31, 2022 are not necessarily indicative of results that may be expected for the year ending December 31, 2022. For further information, refer to the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on March 2, 2022. Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements of Pieris Pharmaceuticals, Inc. and its wholly-owned subsidiaries were prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated. The preparation of the financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosures at the date of the financial statements and during the reporting period. Significant estimates are used for, but are not limited to, revenue recognition; deferred tax assets, deferred tax liabilities and valuation allowances; determination of the incremental borrowing rate to calculate right-of-use assets and lease liabilities; beneficial conversion features; fair value of stock options, preferred stock, and warrants; and prepaid and accrued clinical trial expenses. Management evaluates its estimates on an ongoing basis. Actual results and outcomes could differ materially from management’s estimates, judgments and assumptions. Cash, Cash Equivalents and Investments The Company determines the appropriate classification of its investments at the time of purchase. All liquid investments with original maturities of 90 days or less from the purchase date and for which there is an active market are considered to be cash equivalents. The Company’s investments are comprised of money market, asset backed securities, government treasuries and corporate bonds that are classified as available-for-sale in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 320, Investments—Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its balance sheets. Available-for-sale investments are recorded at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the Company’s balance sheets. Realized gains and losses are determined using the specific identification method and are included as a component of other income. The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. To determine whether an impairment is other-than temporary, the Company considers its intent to sell or whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, the severity and the duration of the impairment and changes in value subsequent to period end. Concentration of Credit Risk and Off-Balance Sheet Risk The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that subject Pieris to concentrations of credit risk include cash and cash equivalents, investments, and accounts receivable. The Company’s cash, cash equivalents, and investments are held in accounts with financial institutions that management believes are creditworthy. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. Accounts receivable primarily consist of amounts due under strategic partnership and other license agreements with major multi-national pharmaceutical companies for which the Company does not obtain collateral. Fair Value Measurement 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. FASB ASC Topic 820, Fair Value Measurement and Disclosures , established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported or disclosed fair value of the financial instruments and is not a measure of the investment credit quality. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. • Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. 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. Financial instruments measured at fair value on a recurring basis include cash equivalents and investments (see Note 4). An entity may elect to measure many financial instruments and certain other items at fair value at specified election dates. Subsequent unrealized gains and losses on items for which the fair value option has been elected will be reported in net loss. The Company did not elect to measure any additional financial instruments or other items at fair value. Property and Equipment Property and equipment are recorded at acquisition cost, less accumulated depreciation and impairment. Depreciation on property and equipment is calculated using the straight-line method over the remaining estimated useful lives of the assets. Maintenance and repairs to these assets are charged to expenses as occurred. The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7 Revenue Recognition Pieris has entered into several licensing agreements with collaboration partners for the development of Anticalin therapeutics against a variety of targets. The terms of these agreements provide for the transfer of multiple goods or services which may include: (i) licenses, or options to obtain licenses, to Pieris’ Anticalin technology and/or specific programs and (ii) research and development activities to be performed on behalf of or with a collaborative partner. Payments to Pieris under these agreements may include upfront fees (which include license and option fees), payments for research and development activities, payments based upon the achievement of certain milestones, and royalties on product sales. There are no performance, cancellation, termination or refund provisions in any of the arrangements that could result in material financial consequences to Pieris. As the Company's intellectual property is located in Germany, the Company records all consolidated revenue in its Pieris Pharmaceuticals, GmbH subsidiary. Collaborative Arrangements The Company considers the nature and contractual terms of an arrangement and assess whether the arrangement involves a joint operating activity pursuant to which it is an active participant and exposed to significant risks and rewards with respect to the arrangement. If the Company is an active participant and exposed to the significant risks and rewards with respect to the arrangement, it accounts for these arrangements pursuant to ASC 808, Collaborative Arrangements , or ASC 808, and applies a systematic and rational approach to recognize revenue. The Company classifies payments received as revenue and payments made as a reduction of revenue in the period in which they are earned. Revenue recognized under a collaborative arrangement involving a participant that is not a customer is presented as Collaboration Revenue in the Statement of Operations. In November 2018, the FASB issued ASU 2018-18, which makes targeted improvements to U.S. GAAP for collaborative arrangements, including: clarification that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606, Revenue from Contracts with Customers , or ASC 606, when the collaborative arrangement participant is a customer in the context of a unit of account; adding unit-of-account guidance in ASC 808 to align with the guidance in ASC 606; and a requirement that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under ASC 606 is precluded if the collaborative arrangement participant is not a customer. The guidance per ASU 2018-18 was adopted retrospectively to the date of initial application of ASC 606. The Company adopted ASU 2018-18 in the first quarter of 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements; however, revenue recognized under a collaborative arrangement involving a participant that is not a customer (Collaboration revenue) is now presented separately from Customer revenue. All amounts presented herein are in conformity with ASU 2018-18. Revenue from Contracts with Customers In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps: 1) identify the customer contract; 2) identify the contract’s performance obligations; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when or as a performance obligation is satisfied. The Company evaluates all promised goods and services within a customer contract and determines which of such goods and services are separate performance obligations. This evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property and the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. Licensing arrangements are analyzed to determine whether the promised goods or services, which often include licenses, research and development services and governance committee services, are distinct or whether they must be accounted for as part of a combined performance obligation. If the license is considered not to be distinct, the license would then be combined with other promised goods or services as a combined performance obligation. If the Company is involved in a governance committee, it assesses whether its involvement constitutes a separate performance obligation. When governance committee services are determined to be separate performance obligations, the Company determines the fair value to be allocated to this promised service. Certain contracts contain optional and additional items, which are considered marketing offers and are accounted for as separate contracts with the customer if such option is elected by the customer, unless the option provides a material right which would not be provided without entering into the contract. An option that is considered a material right is accounted for as a separate performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. A contract may contain variable consideration, including potential payments for both milestone and research and development services. For certain potential milestone payments, the Company estimates the amount of variable consideration by using the most likely amount method. In making this assessment, the Company evaluates factors such as the clinical, regulatory, commercial and other risks that must be overcome to achieve the milestone. Each reporting period the Company re-evaluates the probability of achievement of such variable consideration and any related constraints. Pieris will include variable consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For potential research and development service payments, the Company estimates the amount of variable consideration by using the expected value method, including any approved budget updates arising from additional research or development services. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price among the performance obligations on a relative standalone selling price basis unless a portion of the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amount the Company would expect to receive for each performance obligation. When a performance obligation is satisfied, revenue is recognized for the amount of the transaction price, excluding estimates of variable consideration that are constrained, that is allocated to that performance obligation on a relative standalone selling price basis. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under an arrangement. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non- refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company will recognize revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. Revenue recognized under an arrangement involving a participant that is a customer is presented as Customer Revenue. Milestones and Royalties The Company aggregates milestones into four categories (i) research milestones, (ii) development milestones, (iii) commercial milestones and (iv) sales milestones. Research milestones are typically achieved upon reaching certain success criteria as defined in each agreement related to developing an Anticalin protein against the specified target. Development milestones are typically reached when a compound reaches a defined phase of clinical research or passes such phase, or upon gaining regulatory approvals. Commercial milestones are typically achieved when an approved pharmaceutical product reaches the status for commercial sale, including regulatory approval. Sales milestones are certain defined levels of net sales by the licensee, such as when a product first achieves global sales or annual sales of a specified amount. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. The Company has thus determined that all research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. For revenues from research and development milestones, payments will be recognized consistent with the recognition pattern of the performance obligation to which they relate. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Commercial milestones and sales royalties are determined by sales or usage-based thresholds and will be accounted for under the royalty recognition constraint as constrained variable consideration. The Company calculates the maximum amount of potential milestones achievable under each collaboration agreement and discloses such potential future milestones for all current collaborations using such a maximum calculation. Contract Balances The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer pays consideration or before payment is due, excluding any amounts presented as a receivable (i.e., accounts receivable). A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. The contract liabilities (i.e., deferred revenue) primarily relate to contracts where the Company has received payment but has not yet satisfied the related performance obligations. In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all Company obligations under the agreement have been fulfilled. Costs to Obtain and Fulfill a Contract with a Customer Certain costs to obtain customer contracts, including success-based fees paid to third-party service providers, and costs to fulfill customer contracts are capitalized in accordance with FASB ASC 340, Other Assets and Deferred Costs , or ASC 340. These costs are amortized to expense on a systemic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. The Company will expense the amortization of costs to obtain customer contracts to general and administrative expense and costs to fulfill customer contracts to research and development expense. Government Grants The Company recognizes grants from governmental agencies when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the grant will be received. The Company evaluates the conditions of each grant as of each reporting period to evaluate whether the Company has reached reasonable assurance of meeting the conditions of each grant arrangement and that it is expected that the grant will be received as a result of meeting the necessary conditions. Grants are recognized in the consolidated statements of operations on a systematic basis over the periods in which the Company recognizes the related costs for which the government grant is intended to compensate. Specifically, grant income related to research and development costs is recognized as such expenses are incurred. Grant income is included as a separate caption within Other income (expense), net in the consolidated statements of operations. Leases In accordance with ASU No. 2016-2, Leases (Topic 842), or ASC 842, and for each of the Company’s leases, the following is recognized: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the commencement date. The Company determines if an arrangement is a lease at inception. The Company’s contracts are determined to contain a lease within the scope of ASC 842 when all of the following criteria based on the specific circumstances of the arrangement are met: (1) there is an identified asset for which there are no substantive substitution rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company has the right to direct the use of the identified asset. At the commencement date, operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The Company’s lease agreements do not provide an implicit rate. As a result, the Company utilizes an estimated incremental borrowing rate to discount lease payments, which is based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term and based on observable market data points. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or lease incentives received. Operating lease cost is recognized over the expected term on a straight-line basis. The Company typically only includes an initial lease term in its assessment of a lease agreement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The expected lease term includes noncancellable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Assumptions made by the Company at the commencement date are re-evaluated upon occurrence of certain events, including a lease modification. A lease modification results in a separate contract when the modification grants the lessee an additional right of use not included in the original lease and when lease payments increase commensurate with the standalone price for the additional right of use. When a lease modification results in a separate contract, it is accounted for in the same manner as a new lease. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU 2016-13. ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value, and requires the reversal of previously recognized credit losses if fair value increases. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Subsequently, in November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In November 2019 the FASB also issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which delays the effective date of ASU 2016-13 by three years for certain smaller reporting companies such as the Company. The guidance in ASU 2016-13 is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard. The Company has considered other recent accounting pronouncements and concluded that they are either not applicable to the business or that the effect is not expected to be material to the unaudited condensed consolidated financial statements as a result of future adoption.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue	Revenue General The Company has not generated revenue from product sales. The Company has generated revenue from contracts with customers and revenue from collaboration agreements, which include upfront payments for licenses or options to obtain licenses, payments for research and development services and milestone payments. The Company recognized revenue from the following strategic partnerships and other license agreements (in thousands): Three Months Ended March 31, 2022 2021 Seagen $ 312 $ 366 AstraZeneca 4,753 14,500 Servier 4,734 767 Genentech 1,189 — Total Revenue $ 10,988 $ 15,633 Under the Company’s existing strategic partnerships and other license agreements, the Company could receive the following potential milestone payments (in millions): Research, Development, Regulatory & Commercial Milestones Sales Milestones AstraZeneca $ 900 $ 4,100 Servier 133 100 Seagen 754 450 Boston Pharmaceuticals 88 265 Genentech 844 600 Total potential milestone payments $ 2,719 $ 5,515 Strategic Partnerships Genentech On May 19, 2021, the Company and Genentech, Inc., or Genentech, entered into a Research Collaboration and License Agreement, or the Genentech Agreement, to discover, develop and commercialize locally delivered respiratory and ophthalmology therapies that leverage the Company’s proprietary Anticalin technology. Upon signing the Genentech Agreement, Genentech paid the Company a $20 million upfront fee. In addition, the Company may be eligible to receive up to approximately $1.4 billion in additional milestone payments across multiple programs, as well as tiered royalty payments on net sales at percentages ranging from the mid-single to low double-digits, subject to certain standard reductions and offsets. Under the terms of the Genentech Agreement, the Company is responsible for discovery and preclinical development of two initial programs. The Company is responsible for research activities following target nomination through the late-stage research go decision. The parties will then collaborate on drug candidate characterization until the development go decision. After the development go decision, Genentech will be responsible for pursuing the preclinical and clinical development of each program, and thereafter, the commercialization efforts. Each party is responsible for the costs incurred to perform their respective responsibilities. Genentech has an option to expand the collaboration to encompass two additional programs with the payment of a $10 million fee per additional program. If Genentech exercises its option to start additional programs, payment to the Company of additional fees, milestone payments and royalties would result. Unless earlier terminated, the term of the Genentech Agreement continues until no royalty or other payment obligations are or will become due under the Genentech Agreement. The Genentech Agreement may be terminated (i) by either party based on insolvency or breach by the other party and such insolvency proceeding is not dismissed or such breach is not cured within 90 days; or (ii) after nine months from the effective date of the Genentech Agreement, by Genentech as a whole or on a product-by-product and/or country-by-country basis upon 90 days' prior written notice before the first commercial sale of a product or upon 180 days' prior written notice after the first commercial sale of a product. While the Genentech Agreement allows for up to four research programs, only two research programs are initially identified and committed in the Genentech Agreement. To reach a total of up to four research programs, the Company has granted Genentech options to nominate an additional two collaboration targets of their choosing, subject to the legal availability of the target to be researched. Genentech will have three years after the effective date to nominate the subsequent targets. The Company has also granted Genentech options to replace any of the collaboration targets identified with another target. However, at no point will there be more than four identified collaboration targets for which there are ongoing research programs. The arrangement with Genentech provides for the transfer of the following goods or services: (i) exclusive research and commercial license for the collaboration programs, (ii) a non-exclusive platform improvement license, (iii) research and development services, (iv) participation in a governance committee, and (v) replacement target options on the first two programs upon a screening failure which were assessed as material rights. Management evaluated all of the promised goods or services within the contract and determined which such goods and services were separate performance obligations. The Company determined that the licenses granted, at arrangement inception, should be combined with the research and development services to be provided for the related target programs as they are not capable of being distinct. A third party would not be able to provide the research and development services due to the specific nature of the intellectual property and knowledge required to perform the services, and Genentech could not benefit from the licenses without the corresponding services. The Company determined that the participation in the governance committees was distinct as the services could be performed by an outside party. As a result, management concluded there were five separate performance obligations at the inception of the Genentech Agreement: (i) two combined performance obligations, each comprised of an exclusive research and commercial license, a non-exclusive platform improvement license, and research and development services for the first two Genentech programs, (ii) two performance obligations each comprised of a material right for a target swap option for the first two Genentech programs, and (iii) one performance obligation comprised of the participation on the governance committee. The Company allocated consideration to the performance obligations based on the relative proportion of their standalone selling prices. The Company developed standalone selling prices for licenses by applying a risk adjusted, net present value, estimate of future potential cash flows approach, which included the cost of obtaining research and development services at arm’s length from a third-party provider, as well as internal full-time equivalent costs to support these services. The Company developed the standalone selling price for committee participation by using management’s estimate of the anticipated participation hours multiplied by a market rate for comparable participants. The transaction price at inception is comprised of fixed consideration of $20.0 million in upfront fees and was allocated to each of the performance obligations based on the relative proportion of their standalone selling prices. The amounts allocated to the performance obligations for the two research programs will be recognized on a proportional performance basis through the completion of each respective estimated research term of the individual research programs. The amounts allocated to the material right for the target options will be recognized either at the time the material right expires or, if exercised, on a proportional performance basis over the estimated research term for that program along with any remaining deferred revenue associated with the replacement target. The amounts allocated to the participation on the committee will be recognized on a straight-line basis over the anticipated research term for all research programs. As of March 31, 2022, there was $15.1 million of aggregate transaction price allocated to remaining performance obligations. Under the Genentech Agreement, the Company is eligible to receive various research, development, commercial and sales milestones. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. The Company has determined that all other research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. As of March 31, 2022, there were $7.9 million and $7.2 million of current and non-current deferred revenue, respectively, related to the Genentech Agreement. Boston Pharmaceuticals On April 24, 2021, the Company and BP Asset XII, Inc., or Boston Pharmaceuticals, a subsidiary of Boston Pharma Holdings, LLC, entered into an Exclusive Product License Agreement, or the BP Agreement, to develop PRS-342, a 4-1BB/GPC3 preclinical immuno-oncology Anticalin-antibody bispecific fusion protein. Under the terms of the BP Agreement, Boston Pharmaceuticals exclusively licensed worldwide rights to PRS-342. The Company received an upfront payment of $10.0 million and is further entitled to receive up to $352.5 million in development, regulatory and sales-based milestone payments, tiered royalties up to low double-digits on sales of PRS-342 and a percentage of consideration received by Boston Pharmaceuticals in the event of a sublicense of a program licensed under the BP Agreement or a change of control of Boston Pharmaceuticals. The Company will also contribute up to $4.0 million toward manufacturing activities. The term of the BP Agreement ends upon the expiration of all of Boston Pharmaceuticals’ payment obligations thereunder. The BP Agreement may be terminated by Boston Pharmaceuticals in its entirety for convenience beginning nine months after its effective date upon 60 days’ notice or, for any program under the BP Agreement which has received marketing approval, upon 120 days’ notice. If any program is terminated by Boston Pharmaceuticals, the Company will have full rights to continue such program. The BP Agreement may also be terminated by Boston Pharmaceuticals or the Company for an uncured material breach by the other party upon 180 days’ notice (60 days in the case of non-payment of undisputed amounts due and payable), subject to extension for an additional 180 days in certain cases and subject, in all cases, to dispute resolution procedures. The Agreement may also be terminated due to the other party’s insolvency. The Company may also terminate the BP Agreement if Boston Pharmaceuticals challenges the validity of any patents licensed under the BP Agreement, subject to certain exceptions. The Company does not have any obligations to assist in the research and development efforts of Boston Pharmaceuticals under the BP Agreement. However, the Company has an obligation to fund up to $4.0 million in costs, including out-of-pocket costs incurred by Boston Pharmaceuticals, in connection with the manufacture of products under the BP Agreement. The arrangement with Boston Pharmaceuticals provides for the transfer of the following: (i) exclusive license of PRS-342, (ii) non-exclusive Pieris platform license, (iii) initial know-how, (iv) product cell line license, and (v) materials (as each such term is defined under the BP Agreement). Management evaluated all of the promised goods or services within the BP Agreement and determined which such goods and services were separate performance obligations. The Company determined that the licenses granted, at arrangement inception, should be combined with the transfer of know-how, materials and the product cell line license. Boston Pharmaceuticals could not benefit from the exclusive and non-exclusive licenses without the corresponding transfer of know-how and materials. As a result, management concluded there was only one combined performance obligation. The transaction price at inception is comprised of fixed consideration of $10.0 million in upfront fees, offset by $4.0 million in consideration payable to Boston Pharmaceuticals to reimburse them for expected out-of-pocket manufacturing costs, for a total transaction price of $6.0 million. Management has assessed the forms of variable consideration within the BP Agreement and concluded that the payments are either constrained by the royalty recognition constraint or because management has assessed the most likely amount associated with the payments as zero. The amounts allocated to the performance obligations did not meet the criteria to be recognized over time on a proportional performance basis and thus will be recognized at a point in time. The Company determined that the performance obligation will be fully satisfied when all of the deliverables in the combined performance obligation are transferred to Boston Pharmaceuticals as that is the point at which Boston Pharmaceuticals can fully use and benefit from the license to PRS-342. The Company transferred all such deliverables to Boston Pharmaceuticals in the fourth quarter of 2021. As of December 31, 2021, the Company had recognized the full transaction price, or $5.7 million, as revenue and there is no remaining deferred revenue. Seagen On February 8, 2018, the Company entered into a license and collaboration agreement, or the Seagen Collaboration Agreement, and a non-exclusive Anticalin platform technology license agreement, or the Seagen Platform License, and together with the Seagen Collaboration Agreement, the Seagen Agreements, with Seagen Inc. (formerly Seattle Genetics, Inc.), or Seagen, pursuant to which the parties will develop multiple targeted bispecific IO treatments for solid tumors and blood cancers. Under the terms of the Seagen Agreements, the companies will pursue multiple antibody-Anticalin fusion proteins during the research phase. The Seagen Agreements provide Seagen a base option to select up to three programs for further development. Prior to the initiation of a pivotal trial, the Company may opt into global co-development and U.S. commercialization of the second program and share in global costs and profits on an equal basis. Seagen will solely develop, fund and commercialize the other two programs. Seagen may also decide to select additional candidates from the initial research phase for further development in return for the payment to the Company of additional fees, milestone payments and royalties. The Seagen Platform License grants Seagen a non-exclusive license to certain intellectual property related to the Anticalin platform technology. Upon signing the Seagen Agreements, Seagen paid the Company a $30.0 million upfront fee and an additional $4.9 million was estimated to be paid for research and development services as reimbursement to the Company through the end of the research term. In addition, the Company may receive tiered royalties on net sales up to the low double-digits and up to $1.2 billion in total success-based research, development, commercial and sales milestones payments across the product candidates, depending on the successful development and commercialization of those candidates. If Seagen exercises its option to select additional candidates from the initial research phase for further development, payment to Pieris of additional fees, milestone payments and royalties would result. The term of each of the Seagen Agreements ends upon the expiration of all of Seagen’s payment obligations under each such agreement. The Seagen Collaboration Agreement may be terminated by Seagen on a product-by-product basis for convenience beginning 12 months after its effective date upon 90 days’ notice or, for any program where a pivotal study has been initiated, upon 180 days’ notice. Any program may be terminated at Seagen’s option. If any program is terminated by Seagen after a predefined preclinical stage, the Company will have full rights to continue such program. If any program is terminated by Seagen prior to such predefined preclinical stage, the Company will have the right to continue to develop such program, but will be obligated to offer a co-development option to Seagen for such program. The Seagen Collaboration Agreement may also be terminated by Seagen or the Company for an uncured material breach by the other party upon 90 days’ notice, subject to extension for an additional 90 days if the material breach relates to diligence obligations and subject, in all cases, to dispute resolution procedures. The Seagen Collaboration Agreement may also be terminated due to the other party’s insolvency and may in certain instances, including for reasons of safety, be terminated on a product-by-product basis. Each party may also terminate the Seagen Agreements if the other party challenges the validity of any patents licensed under the Seagen Agreements, subject to certain exceptions. The Seagen Platform License will terminate upon termination of the Seagen Collaboration Agreement, whether in its entirety or on a product-by-product basis. The Company determined that the Seagen Agreements should be combined and evaluated as a single arrangement under ASC 606 as they were executed on the same date. The arrangement with Seagen provides for the transfer of the following goods or services: (i) three candidate research licenses that each consist of a non-exclusive platform technology license, a co-exclusive candidate research license, and research and development services, (ii) research, development and manufacturing services associated with each candidate research license, (iii) participation on various governance committees, and (iv) two antibody target swap options which were assessed as material rights. Management evaluated all of the promised goods or services within the contract and determined which such goods and services were separate performance obligations. The Company determined that the licenses granted, at arrangement inception, should be combined with the research and development services to be provided for the related antibody target programs as they are not capable of being distinct. A third party would not be able to provide the research and development services due to the specific nature of the intellectual property and knowledge required to perform the services, and Seagen could not benefit from the licenses without the corresponding services. The Company determined that the participation on the various governance committees was distinct as the services could be performed by an outside party. As a result, management concluded there were six separate performance obligations at the inception of the Seagen Agreements: (i) three combined performance obligations, each comprised of a non-exclusive platform technology license, a co-exclusive candidate research license, and research and development services for the first three approved Seagen antibody target programs, (ii) two performance obligations each comprised of a material right for an antibody target swap option for the first and the second approved Seagen antibody target for no additional consideration, and (iii) one performance obligation comprised of the participation on the various governance committees. The Company allocated consideration to the performance obligations based on the relative proportion of their standalone selling prices. The Company developed standalone selling prices for licenses by applying a risk adjusted, net present value, estimate of future potential cash flows approach, which included the cost of obtaining research and development services at arm’s length from a third-party provider, as well as internal full-time equivalent costs to support these services. The Company developed the standalone selling price for committee participation by using management’s estimate of the anticipated participation hours multiplied by a market rate for comparable participants. The transaction price at inception is comprised of fixed consideration of $30.0 million in upfront fees and variable consideration of $4.9 million of estimated research and development services to be reimbursed as research and development occurs through the research term. The $30.0 million upfront fee, which represents the fixed consideration in the transaction price, was allocated to each of the performance obligations based on the relative proportion of their standalone selling prices. The $4.9 million in variable consideration related to the research and development services is allocated specifically to the three target program performance obligations based upon the budgeted services for each program. The amounts allocated to the performance obligations for the three research programs will be recognized on a proportional performance basis through the completion of each respective estimated research term of the individual research programs. The amounts allocated to the material right for the antibody target swap option will be recognized either at the time the material right expires or, if exercised, on a proportional performance basis over the estimated research term for that program. The amounts allocated to the participation on each of the committees will be recognized on a straight-line basis over the anticipated research term for all research programs. As of March 31, 2022, there was $20.8 million of aggregate transaction price allocated to remaining performance obligations. In June 2020, Seagen and the Company entered into amendments to the Seagen Agreements, or together, the Amendment. The Amendment extended the deadline for Seagen to nominate a second and third antibody target. As a result of the Amendment, which completed the obligations under the research term for the first antibody target, the Company recorded as revenue $4.2 million, which was previously recorded as deferred revenue, for the year ended December 31, 2020. The Company also recorded $5.0 million of milestone revenue due from Seagen during the quarter ended June 30, 2020, as it was no longer deemed probable that a significant reversal of revenue would occur, and the remaining performance obligations on first antibody target were completed. On March 24, 2021, the Company announced that Seagen made a strategic equity investment in Pieris, and that the companies had entered into a combination study agreement, or the Combination Study Agreement, to evaluate the safety and efficacy of combining Pieris’ cinrebafusp alfa with Seagen’s tucatinib, a small-molecule tyrosine kinase HER2 inhibitor, for the treatment of gastric cancer patients expressing lower HER2 levels (IHC2+/ISH- & IHC1+) as part of the upcoming phase 2 study to be conducted by Pieris. The companies have also entered into an Amended and Restated License and Collaboration Agreement, or the Second Seagen Amendment, in which their existing IO collaboration agreement has been amended relating to joint development and commercial rights for the second program in the alliance. In connection with the agreements described above, the Company and Seagen also entered into a subscription agreement, or the Seagen Subscription Agreement. Under the Second Seagen Amendment, Pieris’ option to co-develop and co-commercialize the second of three programs in the collaboration has been converted to a co-promotion option in the United States, with Seagen solely responsible for the development and overall commercialization of that program. Pieris will also be entitled to increased royalties from that program in the event that it chooses to exercise the co-promotion option. In connection with the Seagen Subscription Agreement, the Company agreed to issue to Seagen, and Seagen agreed to acquire from the Company, 3,706,174 shares of the Company’s common stock for a total purchase price of $13.0 million, or $3.51 per share, in a private placement transaction pursuant to Section 4(a)(2) of the Securities Act. The Seagen Subscription Agreement includes a provision to the effect that Seagen may ask the Company to file a registration statement to register the resale of the shares issued to Seagen, at any time beginning on the date that is 60 calendar days from the date of issuance of the shares. The Company assessed the ASC 606 implications of the Seagen Subscription Agreement and concluded that the fair value of the shares on a per share basis was $2.61 per share as of the transaction date. This resulted in a premium paid for the shares of $3.3 million, all of which was recorded in deferred revenue upon contract execution and allocated to the remaining performance obligations. The Company has concluded that the Combination Study Agreement is within the scope of ASC 808, which defines collaborative arrangements and addresses the presentation of the transactions between the two parties in the income statement and related disclosures. However, ASC 808 does not provide guidance on the recognition of consideration exchanged or accounting for the obligations that may arise between the parties. The Company has concluded that ASC 730, Research and Development , should be applied by analogy. There is no financial statement impact for the Combination Study Agreement as the value of the drug supply received from Seagen is offset against the drug supply cost. Under the Seagen Agreements, the Company is eligible to receive other various research, development, commercial and sales milestones. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. With the exception of the previously discussed achieved milestone, the Company has determined that all other research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. As of March 31, 2022, there were $11.5 million and $6.4 million of current and non-current deferred revenue, respectively, related to the Seagen Agreements. AstraZeneca On May 2, 2017, the Company entered into a license and collaboration agreement, or the AstraZeneca Collaboration Agreement, and a non-exclusive Anticalin platform technology license agreement, or AstraZeneca Platform License, and together with the AstraZeneca Collaboration Agreement, the AstraZeneca Agreements, with AstraZeneca AB, or AstraZeneca, which became effective on June 10, 2017, following expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Under the AstraZeneca Agreements, the parties will advance several novel inhaled Anticalin proteins. In addition to the Company’s lead inhaled drug candidate, PRS-060/AZD1402, or the AstraZeneca Lead Product, the Company and AstraZeneca will also collaborate, under the original terms of the AstraZeneca Collaboration Agreement, to progress four additional novel Anticalin proteins against undisclosed targets for respiratory diseases, or the AstraZeneca Collaboration Products, and together with the AstraZeneca Lead Product, the AstraZeneca Products. The Company is responsible for advancing the AstraZeneca Lead Product through its phase 1 study, with the associated costs funded by AstraZeneca. The parties will collaborate thereafter to conduct a phase 2a study in asthma patients, with AstraZeneca continuing to fund development costs. After completion of a phase 2a study, Pieris has the option to co-develop the AstraZeneca Lead Product and also has a separate option to co-commercialize the AstraZeneca Lead Product in the United States. For the AstraZeneca Collaboration Products, the Company will be responsible for the initial discovery of the novel Anticalin proteins, after which AstraZeneca will take the lead on continued development of the AstraZeneca Collaboration Products. The Company retained the option to co-develop two of the four AstraZeneca Collaboration Products beginning at a predefined preclinical stage and would also have the option to co-commercialize these two programs in the United States, while AstraZeneca will be responsible for development and commercialization of the other programs worldwide. The term of each of the AstraZeneca Agreements ends upon the expiration of all of AstraZeneca’s payment obligations under such agreement. The AstraZeneca Collaboration Agreement may be terminated by AstraZeneca in its entirety for convenience beginning 12 months after its effective date upon 90 days’ notice or, if the Company has obtained marketing approval for the marketing and sale of a product, upon 180 days’ notice. Each program may be terminated at AstraZeneca’s option; if any program is terminated by AstraZeneca, the Company will have full rights to such program. The AstraZeneca Collaboration Agreement may also be terminated by AstraZeneca or the Company for material breach upon 180 days’ notice of a material breach (or 30 days with respect to payment breach), provided that the applicable party has not cured such breach by the permitted cure period (including an additional 180 days if the breach is not susceptible to cure during the initial 180-day period) and dispute resolution procedures specified in the agreement have been followed. The AstraZeneca Collaboration Agreement may also be terminated due to the other party’s insolvency and may in certain instances be terminated on a product-by-product and/or country-by-country basis. Each party may also terminate an AstraZeneca Agreement if the other party challenges the validity of patents related to certain intellectual property licensed under such AstraZeneca Agreement, subject to certain exceptions for infringement suits, acquisitions and newly-acquired licenses. The AstraZeneca Platform License will terminate upon termination of the AstraZeneca Collaboration Agreement, on a product-by-product and/or country-by-country basis. At inception, AstraZeneca is granted the following licenses: (i) research and development license for the AstraZeneca Lead Product, (ii) commercial license for the AstraZeneca Lead Product, (iii) individual research licenses for each of the four AstraZeneca Collaboration Products, (iv) individual commercial licenses for each of the four AstraZeneca Collaboration Products, and (v) individual non-exclusive platform technology licenses for the AstraZeneca Lead Product and the four AstraZeneca Collaboration Products. AstraZeneca will be granted individual development licenses for each of the four AstraZeneca Collaboration Products upon completion of the initial discovery of Anticalin proteins. The collaboration will be managed on an overall basis by a Joint Steering Committee, or JSC, formed by an equal number of representatives from the Company and AstraZeneca. In addition to the JSC, the AstraZeneca Collaboration Agreement also requires each party to designate an alliance manager to facilitate communication and coordination of the parties’ activities under the agreement, and further requires participation of both parties on a joint development committee, or JDC, and a commercialization committee. The responsibilities of these committees vary, depending on the stage of development and commercialization of each product. Under the AstraZeneca Agreements, the Company received an upfront, non-refundable payment of $45.0 million. In addition, the Company will receive payments to conduct a phase 1 clinical study for the AstraZeneca Lead Product. The Company is also eligible to receive research, development, commercial, sales milestone payments and royalty payments. The Company may receive tiered royalties on sales of potential products commercialized by AstraZeneca and for co-developed products, gross margin share on worldwide sales equal to the Company’s level of committed investment. The Company determined that the AstraZeneca Agreements should be combined and evaluated as a single arrangement under ASC 606 as they were executed on the same date. The arrangement with AstraZeneca, including the impact of any modifications, provides for the transfer of the following goods and services: (i) five non-exclusive platform technology licenses, (ii) research and development license for the AstraZeneca Lead Product, (iii) commercial license for the AstraZeneca Lead Product, (iv) development and manufacturing services for the AstraZeneca Lead Product (or the phase 1 services), (v) technology transfer services for the AstraZeneca Lead Product, (vi) research services related to the AstraZeneca Lead Product, (vii) participation on each of the committees, (viii) four research licenses for the AstraZeneca Collaboration Products, (ix) four commercial licenses for the AstraZeneca Collaboration Products, (x) research services for the AstraZeneca Collaboration Products and (xi) certain phase 2a services for the AstraZeneca Lead Product. Additionally, as the development licenses on the four AstraZeneca Collaboration Products may be granted at a discount in the future, the Company determined such discounts should be assessed as material rights at incepti

Grant Income

Grant Income	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Grant Income	Grant Income One of the Company's proprietary respiratory assets is PRS-220, an oral inhaled Anticalin protein targeting connective tissue growth factor, or CTGF, and it is being developed as a local treatment for idiopathic pulmonary fibrosis. In June 2021, the Company was selected to receive a €14.2 million (approximately $17.0 million) grant from the Bavarian Ministry of Economic Affairs, Regional Development and Energy (the Bavarian Grant) supporting research and development for post-acute sequelae of SARS-CoV-2 infection (PASC) pulmonary fibrosis, or PASC-PF, also known as post-COVID-19 syndrome pulmonary fibrosis, or “long COVID”. The Bavarian Grant provides partial reimbursement for qualifying research and development activities on PRS-220, including drug manufacturing costs, activities and costs to support an IND filing, and phase 1 clinical trials costs. The Bavarian Grant provides reimbursement of qualifying costs incurred through August 2023, which follows the expected development timeline of this program. Qualifying costs incurred may exceed the annual grant funding thresholds. If the Company receives any proceeds from the sale of or licensing income from PRS-220, the funds available for reimbursement will be reduced proportionally if they are obtained prior to August 2023. The Company is required to communicate such proceeds in each case with the request to draw down the funds.

Cash, cash equivalents and inve

Cash, cash equivalents and investments	3 Months Ended
	Mar. 31, 2022
Cash and Cash Equivalents [Abstract]
Cash, cash equivalents and investments	Cash, cash equivalents and investments As of March 31, 2022, cash, cash equivalents and investments comprised funds in depository, money market accounts, U.S. treasury securities, asset-backed securities and corporate bonds. As of December 31, 2021, cash equivalents were comprised of only money market accounts. The following table presents the cash equivalents and investments carried at fair value in accordance with the hierarchy defined in Note 2 at March 31, 2022 and December 31, 2021. Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs March 31, 2022 Money market funds, included in cash equivalents $ 46,122 $ 46,122 $ — $ — Corporate bonds, included in cash equivalents 3,004 — 3,004 — Investments - US treasuries 2,744 2,744 — — Investments - Asset-backed securities 1,851 — 1,851 — Investments - Corporate bonds 8,932 — 8,932 — Total $ 62,653 $ 48,866 $ 13,787 $ — Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs December 31, 2021 Money market funds, included in cash equivalents $ 56,885 $ 56,885 $ — $ — Total $ 56,885 $ 56,885 $ — $ — Cash equivalents and marketable securities have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. The Company validates the prices provided by its third-party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources, as needed. After completing its validation procedures, the Company did not adjust any fair value measurements provided by the pricing services as of March 31, 2022. Investments at March 31, 2022 consist of the following (in thousands): Contractual maturity Amortized Cost Unrealized gains Unrealized losses Fair Value Investments US treasuries 91-182 $ 2,750 $ 1 $ (7) $ 2,744 Asset-backed securities 168-290 1,857 — (6) 1,851 Corporate bonds 40-352 11,943 1 (8) 11,936 Total $ 16,550 $ 2 $ (21) $ 16,531 The Company did not record any realized gains or losses from the maturity of available-for-sale securities during the three months ended March 31, 2022 and 2021. As of March 31, 2022, there were no investments with a fair value that was significantly lower than the amortized cost basis or any investments that had been in an unrealized loss position for a significant period.

Property and equipment, net

Property and equipment, net	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net Property and equipment are summarized as follows (in thousands): March 31, December 31, 2022 2021 Laboratory furniture and equipment $ 11,825 $ 11,354 Office furniture and equipment 1,924 1,959 Computer equipment 389 396 Leasehold improvements 12,888 13,130 Property and equipment, cost 27,026 26,839 Accumulated depreciation (8,177) (7,717) Property and equipment, net $ 18,849 $ 19,122

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, 2022 2021 Accrued accounts payable $ 1,156 $ 2,980 Collaboration cost-sharing obligation 1,580 1,610 Research and development fees 5,745 5,682 Compensation expense 2,454 3,581 Accrued license obligations 1,500 1,541 Lease liabilities 1,003 1,049 Other current liabilities 637 393 Total $ 14,075 $ 16,836

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing net income loss by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, stock options and warrants are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive for all periods presented. Therefore, basic and diluted net loss per share were the same for all periods presented. As of March 31, 2022 and 2021, and as calculated using the treasury stock method, approximately 39.4 million and 38.6 million of weighted average shares, respectively, were excluded from the calculation of diluted weighted average shares outstanding as their effect was antidilutive.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity The Company had 300,000,000 shares authorized and 74,097,918 and 72,222,661 shares of common stock issued and outstanding as of March 31, 2022 and December 31, 2021, respectively, with a par value of $0.001 per share. The Company had 10,000,000 shares authorized and 15,617 shares of preferred stock issued and outstanding as of March 31, 2022 and December 31, 2021. Preferred stock has a par value of $0.001 per share, and consists of the following: • Series A Convertible, 85 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. • Series B Convertible, 4,026 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. • Series C Convertible, 3,506 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. • Series D Convertible, 3,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. • Series E Convertible, 5,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively. 2020 Employee, Director and Consultant Equity Incentive Plan At the 2020 Annual Meeting of Stockholders, the Company's stockholders approved the 2020 Employee, Director and Consultant Equity Incentive Plan, or the 2020 Plan. The 2020 Plan permits the Company to issue up to 3,500,000 shares of common stock pursuant to awards granted under the 2020 Plan. Upon approval of the 2020 Plan, the 2019 Employee, Director and Consultant Equity Incentive Plan, or the 2019 Plan, was terminated; all unissued options were canceled and no additional awards will be made thereunder. All outstanding awards under the 2019 Plan will remain in effect and any awards forfeited from the outstanding awards will be allocated back into the 2020 Plan. There were approximately 1,579,678 shares remaining and available for grant under the 2019 Plan that terminated upon original approval of the 2020 Plan. At the 2021 Annual Meeting of Stockholders, held on June 25, 2021, the Company’s stockholders approved the first amendment to the 2020 Plan to add 2,250,000 shares for issuance under the 2020 Plan. Series E Preferred Stock Conversion On May 20, 2021, the Company and certain entities affiliated with Biotechnology Value Fund, or BVF, entered into an exchange agreement pursuant to which, BVF exchanged an aggregate of 5,000,000 shares of the Company’s common stock owned by BVF for an aggregate of 5,000 shares of Series E Preferred Stock. The Company designated 5,000 shares of its authorized and unissued preferred stock as Series E Preferred Stock and filed a Certificate of Designation of Series E Convertible Preferred Stock of Pieris Pharmaceuticals, Inc., or the Series E Certificate of Designation, with the Nevada Secretary of State. Open Market Sales Agreements In August 2021, the Company established a second ATM offering program, or the 2021 ATM Program, under the existing sales agreement with Jefferies LLC, pursuant to which the Company may offer and sell shares of its common stock from time to time, up to an aggregate amount of gross sales proceeds of $50.0 million. The 2021 ATM Program is offered under a shelf registration statement on Form S-3 that was filed with and declared effective by the SEC in August 2021. For the three months ended March 31, 2022, the Company sold 1.8 million shares for gross proceeds of $6.7 million under the 2021 ATM programs at an average stock price of $3.64.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases The Company currently leases office space in Boston, Massachusetts. In August 2015, the Company entered into a sublease to lease approximately 3,950 square feet. In July 2021, the Company extended the lease for this office space for an additional 10 months through December 31, 2022. In October 2018, Pieris GmbH entered into a new lease for office and laboratory space located in Hallbergmoos, Germany, or the Hallbergmoos Lease. Pieris GmbH moved its operations, formerly conducted in Freising, Germany, to the Hallbergmoos facility in February 2020. Under the Hallbergmoos Lease, Pieris GmbH will rent approximately 105,000 square feet, of which approximately 98,400 square feet were delivered by the lessor in February 2020 and approximately 5,100 square feet were delivered by the lessor in May 2020. An additional approximately 22,300 square feet is expected to be delivered by the lessor by October 2024. Pieris GmbH has a first right of refusal to lease an additional approximate 13,400 square feet. The Hallbergmoos Lease provides for an initial rental term of 12.5 years which commenced in February 2020 when the leased property was delivered to Pieris GmbH. Pieris GmbH also has an option to extend the Hallbergmoos Lease for two additional 60-month periods. The Company is not reasonably certain to exercise the option to extend the lease expiration beyond its current expiration date. Pieris GmbH may sublease space within the leased property with lessor’s consent, which may not be unreasonably withheld. Monthly base rent for the initial 105,000 square feet of the leased property, including parking spaces, will total approximately $0.2 million per month. In addition to the base rent, Pieris GmbH is also responsible for certain administrative and operational costs in accordance with the Hallbergmoos Lease. Pieris GmbH provided a security deposit of $0.8 million as required by the Hallbergmoos Lease. The Company will serve as a guarantor for the Hallbergmoos Lease. The Hallbergmoos Lease included $11.5 million of tenant improvements allowance for normal tenant improvements, for which construction began in March 2019. The Company capitalized the leasehold incentives which are included in Property and equipment, net on the Condensed Consolidated Balance Sheet and are amortized on a straight-line basis over the shorter of the useful life or the remaining lease term. The lease incentive allowance was also factored in as a reduction to the right-of-use asset upon the adoption of ASC 842. The following table summarizes operating lease costs included in operating expenses (in thousands): Three Months Ended March 31, 2022 2021 Operating lease costs $ 349 $ 377 Variable lease costs (1) 159 182 Total lease cost $ 508 $ 559 (1) Variable lease costs include certain additional charges for operating costs, including insurance, maintenance, taxes, utilities, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square footage. The following table summarizes the weighted-average remaining lease term and discount rate: As of March 31, 2022 Weighted-average remaining lease term (years) 10.2 Weighted-average discount rate 10.5 % Cash paid for amounts included in the measurement of the lease liabilities was $0.6 million and $0.7 million, respectively, for the three months ended March 31, 2022 and 2021. As of March 31, 2022, the maturities of the Company’s operating lease liabilities and future minimum lease payments were as follows (in thousands): Total 2022 $ 1,829 2023 2,193 2024 2,193 2025 2,193 2026 2,193 Thereafter 12,247 Total undiscounted lease payments 22,848 Less: present value adjustment (8,483) Present value of lease liabilities $ 14,365

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements of Pieris Pharmaceuticals, Inc. and its wholly-owned subsidiaries were prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated.
Use of Estimates	The preparation of the financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosures at the date of the financial statements and during the reporting period. Significant estimates are used for, but are not limited to, revenue recognition; deferred tax assets, deferred tax liabilities and valuation allowances; determination of the incremental borrowing rate to calculate right-of-use assets and lease liabilities; beneficial conversion features; fair value of stock options, preferred stock, and warrants; and prepaid and accrued clinical trial expenses. Management evaluates its estimates on an ongoing basis. Actual results and outcomes could differ materially from management’s estimates, judgments and assumptions.
Cash, Cash Equivalents and Investments	The Company determines the appropriate classification of its investments at the time of purchase. All liquid investments with original maturities of 90 days or less from the purchase date and for which there is an active market are considered to be cash equivalents. The Company’s investments are comprised of money market, asset backed securities, government treasuries and corporate bonds that are classified as available-for-sale in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 320, Investments—Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its balance sheets. Available-for-sale investments are recorded at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the Company’s balance sheets. Realized gains and losses are determined using the specific identification method and are included as a component of other income.
Concentration of Credit Risk and Off-Balance Sheet Risk	The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that subject Pieris to concentrations of credit risk include cash and cash equivalents, investments, and accounts receivable. The Company’s cash, cash equivalents, and investments are held in accounts with financial institutions that management believes are creditworthy. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. Accounts receivable primarily consist of amounts due under strategic partnership and other license agreements with major multi-national pharmaceutical companies for which the Company does not obtain collateral.
Fair Value Measurement	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. FASB ASC Topic 820, Fair Value Measurement and Disclosures , established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported or disclosed fair value of the financial instruments and is not a measure of the investment credit quality. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. • Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. 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. Financial instruments measured at fair value on a recurring basis include cash equivalents and investments (see Note 4).
Property and Equipment	Property and equipment are recorded at acquisition cost, less accumulated depreciation and impairment. Depreciation on property and equipment is calculated using the straight-line method over the remaining estimated useful lives of the assets. Maintenance and repairs to these assets are charged to expenses as occurred. The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7
Revenue Recognition	Pieris has entered into several licensing agreements with collaboration partners for the development of Anticalin therapeutics against a variety of targets. The terms of these agreements provide for the transfer of multiple goods or services which may include: (i) licenses, or options to obtain licenses, to Pieris’ Anticalin technology and/or specific programs and (ii) research and development activities to be performed on behalf of or with a collaborative partner. Payments to Pieris under these agreements may include upfront fees (which include license and option fees), payments for research and development activities, payments based upon the achievement of certain milestones, and royalties on product sales. There are no performance, cancellation, termination or refund provisions in any of the arrangements that could result in material financial consequences to Pieris. As the Company's intellectual property is located in Germany, the Company records all consolidated revenue in its Pieris Pharmaceuticals, GmbH subsidiary. Collaborative Arrangements The Company considers the nature and contractual terms of an arrangement and assess whether the arrangement involves a joint operating activity pursuant to which it is an active participant and exposed to significant risks and rewards with respect to the arrangement. If the Company is an active participant and exposed to the significant risks and rewards with respect to the arrangement, it accounts for these arrangements pursuant to ASC 808, Collaborative Arrangements , or ASC 808, and applies a systematic and rational approach to recognize revenue. The Company classifies payments received as revenue and payments made as a reduction of revenue in the period in which they are earned. Revenue recognized under a collaborative arrangement involving a participant that is not a customer is presented as Collaboration Revenue in the Statement of Operations. In November 2018, the FASB issued ASU 2018-18, which makes targeted improvements to U.S. GAAP for collaborative arrangements, including: clarification that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606, Revenue from Contracts with Customers , or ASC 606, when the collaborative arrangement participant is a customer in the context of a unit of account; adding unit-of-account guidance in ASC 808 to align with the guidance in ASC 606; and a requirement that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under ASC 606 is precluded if the collaborative arrangement participant is not a customer. The guidance per ASU 2018-18 was adopted retrospectively to the date of initial application of ASC 606. The Company adopted ASU 2018-18 in the first quarter of 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements; however, revenue recognized under a collaborative arrangement involving a participant that is not a customer (Collaboration revenue) is now presented separately from Customer revenue. All amounts presented herein are in conformity with ASU 2018-18. Revenue from Contracts with Customers In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps: 1) identify the customer contract; 2) identify the contract’s performance obligations; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when or as a performance obligation is satisfied. The Company evaluates all promised goods and services within a customer contract and determines which of such goods and services are separate performance obligations. This evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property and the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. Licensing arrangements are analyzed to determine whether the promised goods or services, which often include licenses, research and development services and governance committee services, are distinct or whether they must be accounted for as part of a combined performance obligation. If the license is considered not to be distinct, the license would then be combined with other promised goods or services as a combined performance obligation. If the Company is involved in a governance committee, it assesses whether its involvement constitutes a separate performance obligation. When governance committee services are determined to be separate performance obligations, the Company determines the fair value to be allocated to this promised service. Certain contracts contain optional and additional items, which are considered marketing offers and are accounted for as separate contracts with the customer if such option is elected by the customer, unless the option provides a material right which would not be provided without entering into the contract. An option that is considered a material right is accounted for as a separate performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. A contract may contain variable consideration, including potential payments for both milestone and research and development services. For certain potential milestone payments, the Company estimates the amount of variable consideration by using the most likely amount method. In making this assessment, the Company evaluates factors such as the clinical, regulatory, commercial and other risks that must be overcome to achieve the milestone. Each reporting period the Company re-evaluates the probability of achievement of such variable consideration and any related constraints. Pieris will include variable consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For potential research and development service payments, the Company estimates the amount of variable consideration by using the expected value method, including any approved budget updates arising from additional research or development services. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price among the performance obligations on a relative standalone selling price basis unless a portion of the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amount the Company would expect to receive for each performance obligation. When a performance obligation is satisfied, revenue is recognized for the amount of the transaction price, excluding estimates of variable consideration that are constrained, that is allocated to that performance obligation on a relative standalone selling price basis. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under an arrangement. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non- refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company will recognize revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. Revenue recognized under an arrangement involving a participant that is a customer is presented as Customer Revenue. Milestones and Royalties The Company aggregates milestones into four categories (i) research milestones, (ii) development milestones, (iii) commercial milestones and (iv) sales milestones. Research milestones are typically achieved upon reaching certain success criteria as defined in each agreement related to developing an Anticalin protein against the specified target. Development milestones are typically reached when a compound reaches a defined phase of clinical research or passes such phase, or upon gaining regulatory approvals. Commercial milestones are typically achieved when an approved pharmaceutical product reaches the status for commercial sale, including regulatory approval. Sales milestones are certain defined levels of net sales by the licensee, such as when a product first achieves global sales or annual sales of a specified amount. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. The Company has thus determined that all research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. For revenues from research and development milestones, payments will be recognized consistent with the recognition pattern of the performance obligation to which they relate. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Commercial milestones and sales royalties are determined by sales or usage-based thresholds and will be accounted for under the royalty recognition constraint as constrained variable consideration. The Company calculates the maximum amount of potential milestones achievable under each collaboration agreement and discloses such potential future milestones for all current collaborations using such a maximum calculation. Contract Balances The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer pays consideration or before payment is due, excluding any amounts presented as a receivable (i.e., accounts receivable). A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. The contract liabilities (i.e., deferred revenue) primarily relate to contracts where the Company has received payment but has not yet satisfied the related performance obligations. In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all Company obligations under the agreement have been fulfilled. Costs to Obtain and Fulfill a Contract with a Customer Certain costs to obtain customer contracts, including success-based fees paid to third-party service providers, and costs to fulfill customer contracts are capitalized in accordance with FASB ASC 340, Other Assets and Deferred Costs , or ASC 340. These costs are amortized to expense on a systemic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. The Company will expense the amortization of costs to obtain customer contracts to general and administrative expense and costs to fulfill customer contracts to research and development expense.
Government Grants	The Company recognizes grants from governmental agencies when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the grant will be received. The Company evaluates the conditions of each grant as of each reporting period to evaluate whether the Company has reached reasonable assurance of meeting the conditions of each grant arrangement and that it is expected that the grant will be received as a result of meeting the necessary conditions. Grants are recognized in the consolidated statements of operations on a systematic basis over the periods in which the Company recognizes the related costs for which the government grant is intended to compensate. Specifically, grant income related to research and development costs is recognized as such expenses are incurred. Grant income is included as a separate caption within Other income (expense), net in the consolidated statements of operations.
Leases	In accordance with ASU No. 2016-2, Leases (Topic 842), or ASC 842, and for each of the Company’s leases, the following is recognized: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the commencement date. The Company determines if an arrangement is a lease at inception. The Company’s contracts are determined to contain a lease within the scope of ASC 842 when all of the following criteria based on the specific circumstances of the arrangement are met: (1) there is an identified asset for which there are no substantive substitution rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company has the right to direct the use of the identified asset. At the commencement date, operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The Company’s lease agreements do not provide an implicit rate. As a result, the Company utilizes an estimated incremental borrowing rate to discount lease payments, which is based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term and based on observable market data points. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or lease incentives received. Operating lease cost is recognized over the expected term on a straight-line basis. The Company typically only includes an initial lease term in its assessment of a lease agreement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The expected lease term includes noncancellable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Assumptions made by the Company at the commencement date are re-evaluated upon occurrence of certain events, including a lease modification. A lease modification results in a separate contract when the modification grants the lessee an additional right of use not included in the original lease and when lease payments increase commensurate with the standalone price for the additional right of use. When a lease modification results in a separate contract, it is accounted for in the same manner as a new lease.
Recent Accounting Pronouncements Not Yet Adopted	In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU 2016-13. ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value, and requires the reversal of previously recognized credit losses if fair value increases. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Subsequently, in November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In November 2019 the FASB also issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which delays the effective date of ASU 2016-13 by three years for certain smaller reporting companies such as the Company. The guidance in ASU 2016-13 is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard. The Company has considered other recent accounting pronouncements and concluded that they are either not applicable to the business or that the effect is not expected to be material to the unaudited condensed consolidated financial statements as a result of future adoption.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Schedule of Property and Equipment, Useful Lives	The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7 Property and equipment are summarized as follows (in thousands): March 31, December 31, 2022 2021 Laboratory furniture and equipment $ 11,825 $ 11,354 Office furniture and equipment 1,924 1,959 Computer equipment 389 396 Leasehold improvements 12,888 13,130 Property and equipment, cost 27,026 26,839 Accumulated depreciation (8,177) (7,717) Property and equipment, net $ 18,849 $ 19,122

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Recognized Revenues From Strategic Partnerships and Other License Agreements	The Company recognized revenue from the following strategic partnerships and other license agreements (in thousands): Three Months Ended March 31, 2022 2021 Seagen $ 312 $ 366 AstraZeneca 4,753 14,500 Servier 4,734 767 Genentech 1,189 — Total Revenue $ 10,988 $ 15,633
Schedule of Potential Milestone Payments	Under the Company’s existing strategic partnerships and other license agreements, the Company could receive the following potential milestone payments (in millions): Research, Development, Regulatory & Commercial Milestones Sales Milestones AstraZeneca $ 900 $ 4,100 Servier 133 100 Seagen 754 450 Boston Pharmaceuticals 88 265 Genentech 844 600 Total potential milestone payments $ 2,719 $ 5,515

Cash, cash equivalents and in_2

Cash, cash equivalents and investments (Tables)	3 Months Ended
	Mar. 31, 2022
Cash and Cash Equivalents [Abstract]
Schedule of Cash Equivalents and Investments Carried at Fair Value	The following table presents the cash equivalents and investments carried at fair value in accordance with the hierarchy defined in Note 2 at March 31, 2022 and December 31, 2021. Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs March 31, 2022 Money market funds, included in cash equivalents $ 46,122 $ 46,122 $ — $ — Corporate bonds, included in cash equivalents 3,004 — 3,004 — Investments - US treasuries 2,744 2,744 — — Investments - Asset-backed securities 1,851 — 1,851 — Investments - Corporate bonds 8,932 — 8,932 — Total $ 62,653 $ 48,866 $ 13,787 $ — Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs December 31, 2021 Money market funds, included in cash equivalents $ 56,885 $ 56,885 $ — $ — Total $ 56,885 $ 56,885 $ — $ —
Schedule of Cash Equivalents and Investments	Investments at March 31, 2022 consist of the following (in thousands): Contractual maturity Amortized Cost Unrealized gains Unrealized losses Fair Value Investments US treasuries 91-182 $ 2,750 $ 1 $ (7) $ 2,744 Asset-backed securities 168-290 1,857 — (6) 1,851 Corporate bonds 40-352 11,943 1 (8) 11,936 Total $ 16,550 $ 2 $ (21) $ 16,531

Property and equipment, net (Ta

Property and equipment, net (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7 Property and equipment are summarized as follows (in thousands): March 31, December 31, 2022 2021 Laboratory furniture and equipment $ 11,825 $ 11,354 Office furniture and equipment 1,924 1,959 Computer equipment 389 396 Leasehold improvements 12,888 13,130 Property and equipment, cost 27,026 26,839 Accumulated depreciation (8,177) (7,717) Property and equipment, net $ 18,849 $ 19,122

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, 2022 2021 Accrued accounts payable $ 1,156 $ 2,980 Collaboration cost-sharing obligation 1,580 1,610 Research and development fees 5,745 5,682 Compensation expense 2,454 3,581 Accrued license obligations 1,500 1,541 Lease liabilities 1,003 1,049 Other current liabilities 637 393 Total $ 14,075 $ 16,836

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Operating Lease Costs, Lease Term and Discount Rate	The following table summarizes operating lease costs included in operating expenses (in thousands): Three Months Ended March 31, 2022 2021 Operating lease costs $ 349 $ 377 Variable lease costs (1) 159 182 Total lease cost $ 508 $ 559 (1) Variable lease costs include certain additional charges for operating costs, including insurance, maintenance, taxes, utilities, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square footage. The following table summarizes the weighted-average remaining lease term and discount rate: As of March 31, 2022 Weighted-average remaining lease term (years) 10.2 Weighted-average discount rate 10.5 %
Maturities of Operating Lease Liabilities	As of March 31, 2022, the maturities of the Company’s operating lease liabilities and future minimum lease payments were as follows (in thousands): Total 2022 $ 1,829 2023 2,193 2024 2,193 2025 2,193 2026 2,193 Thereafter 12,247 Total undiscounted lease payments 22,848 Less: present value adjustment (8,483) Present value of lease liabilities $ 14,365

Corporate Information - Narrati

Corporate Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	May 31, 2013
Business Acquisition [Line Items]
Cash, cash equivalents and investments	$ 100,300
Net loss	(5,101)	$ (4,172)
Accumulated deficit	$ (262,245)		$ (257,144)
Pieris Pharmaceuticals GmbH
Business Acquisition [Line Items]
Ownership interest acquired (as a percent)				100.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment, Useful Lives (Details)	3 Months Ended
	Mar. 31, 2022
Laboratory furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	8 years
Laboratory furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	14 years
Office furniture and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Office furniture and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	13 years
Computer and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Computer and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years

Revenue - Revenue From Licensin

Revenue - Revenue From Licensing Agreements and Strategic Partnerships (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue		$ 10,988	$ 15,633
Seagen
Disaggregation of Revenue [Line Items]
Total revenue		312	366
AstraZeneca
Disaggregation of Revenue [Line Items]
Total revenue	$ 13,000	4,753	14,500
Servier
Disaggregation of Revenue [Line Items]
Total revenue		4,734	767
Genentech
Disaggregation of Revenue [Line Items]
Total revenue		$ 1,189	$ 0

Revenue - Potential Milestone P

Revenue - Potential Milestone Payments (Details) - Strategic Partnerships and Other License Agreements $ in Millions	Mar. 31, 2022USD ($)
Research, Development, Regulatory & Commercial Milestones
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	$ 2,719
Research, Development, Regulatory & Commercial Milestones | AstraZeneca
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	900
Research, Development, Regulatory & Commercial Milestones | Servier
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	133
Research, Development, Regulatory & Commercial Milestones | Seagen
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	754
Research, Development, Regulatory & Commercial Milestones | Boston Pharmaceuticals
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	88
Research, Development, Regulatory & Commercial Milestones | Genentech
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	844
Sales Milestones
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	5,515
Sales Milestones | AstraZeneca
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	4,100
Sales Milestones | Servier
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	100
Sales Milestones | Seagen
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	450
Sales Milestones | Boston Pharmaceuticals
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	265
Sales Milestones | Genentech
Revenue Recognition, Milestone Method [Line Items]
Total potential milestone payments	$ 600

Revenue - Narrative (Details)

Revenue - Narrative (Details) $ / shares in Units, € in Millions

May 19, 2021USD ($)

May 19, 2021USD ($)

May 19, 2021USD ($)research_program

May 19, 2021USD ($)performance_obligation

May 19, 2021USD ($)program

Apr. 24, 2021USD ($)

Apr. 01, 2021USD ($)$ / sharesshares

Mar. 24, 2021USD ($)$ / sharesshares

Feb. 08, 2018USD ($)performance_obligationswap_optionprogramresearch_programlicense

May 02, 2017USD ($)

May 02, 2017USD ($)

May 02, 2017USD ($)research_program

May 02, 2017USD ($)performance_obligation

May 02, 2017USD ($)license

May 02, 2017USD ($)protein

May 02, 2017USD ($)lease_agreement

Jan. 31, 2022USD ($)program

Mar. 31, 2021USD ($)

Mar. 31, 2022USD ($)performance_obligation

Mar. 31, 2022EUR (€)performance_obligation

Mar. 31, 2021USD ($)

Jun. 30, 2020USD ($)

Mar. 31, 2017bispecific_therapeutic_program

Dec. 31, 2021USD ($)

Dec. 31, 2020USD ($)

Dec. 31, 2017USD ($)performance_obligationbispecific_therapeutic_program

Dec. 31, 2017EUR (€)performance_obligationbispecific_therapeutic_program

Jan. 01, 2019USD ($)

May 02, 2017performance_obligation

May 02, 2017collaboration_product

Disaggregation of Revenue [Line Items]

Deferred revenues, current portion

$ 20,913,000

$ 25,116,000

Deferred revenue, net of current portion

30,819,000

38,403,000

Revenue recognized from contract with customer

10,600,000

Number of technology licenses | lease_agreement

5

Total revenue

10,988,000

$ 15,633,000

Additions to deferred revenue

0

Genentech

Disaggregation of Revenue [Line Items]

Revenue, remaining performance obligation, variable consideration amount

$ 1,400,000,000

$ 1,400,000,000

$ 1,400,000,000

$ 1,400,000,000

$ 1,400,000,000

Number of initial research programs | research_program

2

Fee on additional program

10,000,000

Number of optional additional research programs | research_program

2

Termination notice period within material breach

90 days

Before first commercial sale

90 days

After first commercial sale

180 days

Number of research programs

4

2

Remaining performance obligation

15,100,000

Total revenue

1,189,000

0

Genentech | License fees

Disaggregation of Revenue [Line Items]

Deferred revenue

$ 20,000,000

$ 20,000,000

$ 20,000,000

$ 20,000,000

$ 20,000,000

Deferred revenues, current portion

7,900,000

Deferred revenue, net of current portion

7,200,000

Genentech | Research and Development Services

Disaggregation of Revenue [Line Items]

Research collaboration agreement term

3 years

Seagen

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

3

Remaining performance obligation

20,800,000

Deferred revenues, current portion

11,500,000

Deferred revenue, net of current portion

6,400,000

Resale of stock period

60 days

Total revenue

312,000

366,000

AstraZeneca

Disaggregation of Revenue [Line Items]

Deferred revenue

700,000

Research collaboration agreement term

5 years

Remaining performance obligation

12,800,000

Deferred revenues, current portion

600,000

Deferred revenue, net of current portion

12,300,000

Revenue recognized from contract with customer

$ 4,700,000

Resale of stock period

60 days

Total revenue

$ 13,000,000

4,753,000

14,500,000

Number of discovery programs discontinued | program

1

Number of discovery programs with co-development and co-commercialization options | program

2

Number of active discovery programs | program

3

Servier

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

10

10

Remaining performance obligation

5,800,000

Deferred revenues, current portion

900,000

Deferred revenue, net of current portion

4,900,000

Revenue recognized from contract with customer

4,900,000

Total revenue

4,734,000

767,000

Capitalized contract cost, net

100,000

Amortization of capitalized contract costs

$ 100,000

0

Number of programs | bispecific_therapeutic_program

3

3

Number of novel proteins | bispecific_therapeutic_program

1

Number of separate performance obligations | performance_obligation

3

3

Servier | Research and Development Services

Disaggregation of Revenue [Line Items]

Number of development programs | performance_obligation

2

2

Number of development milestones | performance_obligation

3

3

Boston Pharmaceuticals | License fees

Disaggregation of Revenue [Line Items]

Remaining performance obligation

$ 6,000,000

Contract with customer asset, after allowance for credit loss

4,000,000

Exclusive Product License Agreement | Boston Pharmaceuticals | License fees

Disaggregation of Revenue [Line Items]

Deferred revenue

10,000,000

Revenue, remaining performance obligation, variable consideration amount

352,500,000

Contribution on manufacturing (up to)

$ 4,000,000

Period after effective date agreements may be terminated

9 months

Contract termination advance notice period

60 days

Agreement termination advance notice period if marketing approval obtained

120 days

Agreement termination notice period upon material breach by the Company

180 days

Agreement termination notice period due to non-payment of undisputed amounts

60 days

Contract termination due to material breach, additional notice period if the breach is not susceptible

180 days

Collaborative arrangement, agreement obligation cost

$ 4,000,000

Revenue recognized from contract with customer

$ 5,700,000

License and Collaboration Agreement | Genentech

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

5

License and Collaboration Agreement | Seagen

Disaggregation of Revenue [Line Items]

Number of research programs | research_program

3

Number of performance obligations | performance_obligation

6

Period after effective date agreements may be terminated

12 months

Contract termination advance notice period

90 days

Agreement termination advance notice period if marketing approval obtained

180 days

Agreement termination notice period upon material breach by the Company

90 days

Contract termination due to material breach, additional notice period if the breach is not susceptible

90 days

Number of licenses | license

3

Number of swap options | swap_option

2

License and Collaboration Agreement | AstraZeneca

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

16

Period after effective date agreements may be terminated

12 months

Contract termination advance notice period

90 days

Agreement termination advance notice period if marketing approval obtained

180 days

Agreement termination notice period upon material breach by the Company

180 days

Contract termination due to material breach, additional notice period if the breach is not susceptible

180 days

Agreement termination notice period upon breach of payment obligations by the Company

30 days

Period of license performance obligation

12 months

Number of novel proteins | protein

4

License and Collaboration Agreement | Servier

Disaggregation of Revenue [Line Items]

Number of programs | bispecific_therapeutic_program

5

5

5

Strategic Partnerships and Other License Agreements | Servier

Disaggregation of Revenue [Line Items]

Revenue recognized from contract with customer

$ 3,700,000

€ 3.3

Other arrangement | Seagen

Disaggregation of Revenue [Line Items]

Number of research programs | research_program

2

Platform technology license | Genentech

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

2

Platform technology license | Seagen

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

3

Number of target programs | program

3

Antibody target swap | Genentech

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

2

Antibody target swap | Seagen

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

2

Governance committee participation | Genentech

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

1

Governance committee participation | Seagen

Disaggregation of Revenue [Line Items]

Number of performance obligations | performance_obligation

1

Upfront Payment | Seagen

Disaggregation of Revenue [Line Items]

Deferred revenue

$ 1,200,000,000

Research and development services

4,900,000

Upfront Payment | Seagen | License fees

Disaggregation of Revenue [Line Items]

Revenue

$ 30,000,000

Upfront Payment | AstraZeneca

Disaggregation of Revenue [Line Items]

Allocable arrangement consideration

$ 45,000,000

Upfront Payment | Servier | License fees

Disaggregation of Revenue [Line Items]

Revenue

$ 32,000,000

€ 30

Upfront Payment | Boston Pharmaceuticals | License fees

Disaggregation of Revenue [Line Items]

Remaining performance obligation

$ 10,000,000

Additional other research services | AstraZeneca

Disaggregation of Revenue [Line Items]

Allocable arrangement consideration

4,700,000

Estimated Development and Manufacturing Services | Upfront Payment | AstraZeneca

Disaggregation of Revenue [Line Items]

Allocable arrangement consideration

14,200,000

Milestone Payments | Upfront Payment | Seagen

Disaggregation of Revenue [Line Items]

Revenue recognized from contract with customer

$ 4,200,000

Allocable arrangement consideration

$ 5,000,000

Milestone Payments | Upfront Payment | AstraZeneca

Disaggregation of Revenue [Line Items]

Allocable arrangement consideration

12,500,000

Estimated Phase 2a Services | Upfront Payment | AstraZeneca

Disaggregation of Revenue [Line Items]

Allocable arrangement consideration

4,700,000

Minimum | License and Collaboration Agreement | AstraZeneca

Disaggregation of Revenue [Line Items]

Number of collaboration products | collaboration_product

2

Minimum | Strategic Partnerships and Other License Agreements | Servier

Disaggregation of Revenue [Line Items]

Agreement termination notice period upon material breach by the Company

90 days

90 days

Maximum | License and Collaboration Agreement | AstraZeneca

Disaggregation of Revenue [Line Items]

Number of collaboration products

4

4

Number of research licenses

4

4

Number of programs | research_program

2

Maximum | Strategic Partnerships and Other License Agreements | Servier

Disaggregation of Revenue [Line Items]

Agreement termination notice period upon material breach by the Company

120 days

120 days

Accounting Standards Update 2014-09 | AstraZeneca

Disaggregation of Revenue [Line Items]

Capitalized contract cost, net

$ 1,600,000

$ 1,600,000

$ 1,600,000

$ 1,600,000

$ 1,600,000

$ 1,600,000

$ 1,600,000

400,000

Capitalized contract cost in accordance with ASC 340

$ 1,100,000

Amortization of capitalized contract costs

$ 200,000

$ 0

Accounting Standards Update 2014-09 | Servier

Disaggregation of Revenue [Line Items]

Capitalized contract cost, net

$ 500,000

Private placement | Seagen

Disaggregation of Revenue [Line Items]

Deferred revenue

$ 3,300,000

Shares of stock sold (in shares) | shares

3,706,174

Shares of stock sold, net consideration

$ 13,000,000

Shares of stock sold, price (USD per share) | $ / shares

$ 3.51

Fair value of stock (in dollars per share) | $ / shares

$ 2.61

Private placement | AstraZeneca

Disaggregation of Revenue [Line Items]

Shares of stock sold (in shares) | shares

3,584,230

Shares of stock sold, net consideration

$ 10,000,000

Shares of stock sold, price (USD per share) | $ / shares

$ 2.79

Fair value of stock (in dollars per share) | $ / shares

$ 2.60

Grant Income (Details)

Grant Income (Details) - Jun. 30, 2021 € in Millions, $ in Millions	EUR (€)	USD ($)
Receivables [Abstract]
Grants receivable	€ 14.2	$ 17

Cash, cash equivalents and in_3

Cash, cash equivalents and investments - Cash Equivalents and Investments Carried at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 16,531
Total	62,653	$ 56,885
Quoted prices in active markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	48,866	56,885
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	13,787	0
Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	46,122	56,885
Money market funds | Quoted prices in active markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	46,122	56,885
Money market funds | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	0	0
Money market funds | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	0	$ 0
U.S. treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	2,744
Fair Value	2,744
U.S. treasuries | Quoted prices in active markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	2,744
U.S. treasuries | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
U.S. treasuries | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,851
Fair Value	1,851
Asset-backed securities | Quoted prices in active markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
Asset-backed securities | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1,851
Asset-backed securities | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	3,004
Investments	8,932
Fair Value	11,936
Corporate bonds | Quoted prices in active markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	0
Investments	0
Corporate bonds | Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	3,004
Investments	8,932
Corporate bonds | Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds, included in cash equivalents	0
Investments	$ 0

Cash, cash equivalents and in_4

Cash, cash equivalents and investments - Investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 16,550
Unrealized gains	2
Unrealized losses	(21)
Fair Value	16,531
US treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	2,750
Unrealized gains	1
Unrealized losses	(7)
Fair Value	$ 2,744
US treasuries | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual maturity (in days)	91 days
US treasuries | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual maturity (in days)	182 days
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 1,857
Unrealized gains	0
Unrealized losses	(6)
Fair Value	$ 1,851
Asset-backed securities | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual maturity (in days)	168 days
Asset-backed securities | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual maturity (in days)	290 days
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 11,943
Unrealized gains	1
Unrealized losses	(8)
Fair Value	$ 11,936
Corporate bonds | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual maturity (in days)	40 days
Corporate bonds | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contractual maturity (in days)	352 days

Cash, cash equivalents and in_5

Cash, cash equivalents and investments - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash and Cash Equivalents [Abstract]
Realized gains (losses) recognized on available-for-sale investments	$ 0	$ 0

Property and equipment, net - S

Property and equipment, net - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 27,026	$ 26,839
Accumulated depreciation	(8,177)	(7,717)
Property and equipment, net	18,849	19,122
Laboratory furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	11,825	11,354
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	1,924	1,959
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	389	396
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 12,888	$ 13,130

Accrued Expenses - Summary (Det

Accrued Expenses - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accrued expenses
Accrued accounts payable	$ 1,156	$ 2,980
Collaboration cost-sharing obligation	1,580	1,610
Research and development fees	5,745	5,682
Compensation expense	2,454	3,581
Accrued license obligations	1,500	1,541
Lease liabilities	1,003	1,049
Other current liabilities	637	393
Total	$ 14,075	$ 16,836
Operating lease, liability, current, statement of financial position [extensible list]	Total	Total

Net Loss per Share - Narrative

Net Loss per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Weighted average shares excluded from the calculation of diluted weighted average shares outstanding (in shares)	39.4	38.6

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 25, 2021	May 20, 2021	Aug. 31, 2021	Mar. 31, 2022	Dec. 31, 2020	Dec. 31, 2021
Class of Stock [Line Items]
Common stock, shares authorized (in shares)				300,000,000		300,000,000
Common stock, shares issued (in shares)				74,097,918		72,222,661
Common stock, shares outstanding (in shares)				74,097,918		72,222,661
Par value of common stock (USD per share)				$ 0.001		$ 0.001
Preferred stock, shares authorized (in shares)				10,000,000		10,000,000
Preferred stock, shares issued (in shares)				15,617		15,617
Preferred stock, shares outstanding (in shares)				15,617		15,617
Par value of preferred stock (USD per share)				$ 0.001		$ 0.001
At the market offering | Jefferies LLC
Class of Stock [Line Items]
Shares of stock sold (in shares)				1,800,000
Sale of stock, authorized amount			$ 50
Shares of stock sold, net consideration				$ 6.7
Shares of stock sold, price (USD per share)				$ 3.64
Common Stock | Stock exchange, shares from existing shareholders
Class of Stock [Line Items]
Shares of stock sold (in shares)		5,000,000
2020 Plan
Class of Stock [Line Items]
Shares of stock authorized pursuant to the 2020 Plan (in shares)					3,500,000
Additional shares authorized (in shares)	2,250,000
2019 Plan
Class of Stock [Line Items]
Shares of stock terminated under the 2019 Plan (in shares)					1,579,678
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)				85		85
Preferred stock, shares outstanding (in shares)				85		85
Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)				4,026
Preferred stock, shares outstanding (in shares)				4,026		4,026
Series C Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)				3,506		3,506
Preferred stock, shares outstanding (in shares)				3,506		3,506
Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)				3,000		3,000
Preferred stock, shares outstanding (in shares)				3,000		3,000
Series E Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)				5,000		5,000
Preferred stock, shares outstanding (in shares)				5,000		5,000
Series E Preferred Stock | Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)		5,000
Series E Preferred Stock | Preferred Stock | Preferred share exchange
Class of Stock [Line Items]
Shares of stock sold (in shares)		5,000

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	1 Months Ended			3 Months Ended
	May 31, 2020ft²	Feb. 29, 2020USD ($)ft²	Aug. 31, 2015ft²	Mar. 31, 2022USD ($)ft²extension_option	Mar. 31, 2021USD ($)	Jul. 31, 2021	Mar. 31, 2019USD ($)
Loss Contingencies [Line Items]
Lease liabilities | $				$ 0.6	$ 0.7
Boston, Massachusetts
Loss Contingencies [Line Items]
Area of leased property (square feet)			3,950
Lease renewal term						10 months
Hallbergmoos, Germany
Loss Contingencies [Line Items]
Area of leased property (square feet)		105,000
Lease renewal term				60 months
Lease term		12 years 6 months
Number of agreement extension options | extension_option				2
Rent expense | $		$ 0.2
Security deposit | $		$ 0.8
Tenant improvements | $							$ 11.5
Hallbergmoos, Germany | Leases expected to be delivered by February 2020
Loss Contingencies [Line Items]
Area of leased property (square feet)		98,400
Hallbergmoos, Germany | Leases expected to be delivered by May 2020
Loss Contingencies [Line Items]
Area of leased property (square feet)	5,100
Hallbergmoos, Germany | Leases expected to be delivered by October 2024
Loss Contingencies [Line Items]
Area of leased property (square feet)				22,300
Hallbergmoos, Germany | Leases with first right of refusal for additional area
Loss Contingencies [Line Items]
Area of leased property (square feet)				13,400

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease costs	$ 349	$ 377
Variable lease costs	159	182
Total lease cost	$ 508	$ 559

Leases - Summary of the Lease T

Leases - Summary of the Lease Term and Discount Rate (Details)	Mar. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term (years)	10 years 2 months 12 days
Weighted-average discount rate	10.50%

Leases - Maturities of the Oper

Leases - Maturities of the Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2022USD ($)
Leases [Abstract]
2022	$ 1,829
2023	2,193
2024	2,193
2025	2,193
2026	2,193
Thereafter	12,247
Total undiscounted lease payments	22,848
Less: present value adjustment	(8,483)
Present value of lease liabilities	$ 14,365