Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38558 | ||
Entity Registrant Name | TRICIDA, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-3372526 | ||
Entity Address, Address Line One | 7000 Shoreline Court, Suite 201 | ||
Entity Address, Postal Zip Code | 94080 | ||
Entity Address, City or Town | South San Francisco | ||
Entity Address, State or Province | CA | ||
City Area Code | 415 | ||
Local Phone Number | 429-7800 | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 49,855,335 | ||
Documents Incorporated by Reference | Certain portions of the registrant's definitive proxy statement relating to the Company's Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2019, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001595585 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 1.1 | ||
Trading Symbol | TCDA |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 18,574 | $ 37,172 |
Short-term investments | 289,424 | 203,906 |
Prepaid expenses and other current assets | 4,744 | 3,269 |
Total current assets | 312,742 | 244,347 |
Long-term investments | 46,980 | 2,287 |
Property and equipment, net | 2,728 | 1,215 |
Operating lease right-of-use assets | 9,376 | |
Total assets | 371,826 | 247,849 |
Current liabilities: | ||
Accounts payable | 5,911 | 8,460 |
Current operating lease liabilities | 1,072 | |
Accrued expenses and other current liabilities | 32,780 | 6,344 |
Total current liabilities | 39,763 | 14,804 |
Liabilities, Noncurrent [Abstract] | ||
Term Loan | 58,374 | 38,071 |
Non-current operating lease liabilities | 8,783 | |
Other long-term liabilities | 1,023 | 449 |
Total liabilities | 107,943 | 53,324 |
Commitments and contingencies (Note 7) | ||
Convertible preferred stock | 0 | 0 |
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 50 | 42 |
Additional paid-in capital | 632,647 | 386,830 |
Accumulated other comprehensive income (loss) | 193 | (153) |
Accumulated deficit | (369,007) | (192,194) |
Total stockholders’ equity | 263,883 | 194,525 |
Total liabilities and stockholders’ equity | $ 371,826 | $ 247,849 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares outstanding (in shares) | 49,763,176 | 42,148,247 |
Common stock, shares issued (in shares) | 49,763,176 | 42,148,247 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses: | |||
Research and development | $ 133,028 | $ 85,594 | $ 35,906 |
General and administrative | 45,796 | 18,001 | 11,216 |
Total operating expenses | 178,824 | 103,595 | 47,122 |
Loss from operations | (178,824) | (103,595) | (47,122) |
Change in fair value—preferred stock tranche obligation | 0 | 0 | 5,649 |
Other income (expense), net | 7,663 | 3,924 | 183 |
Interest expense | (5,744) | (3,137) | 0 |
Loss before income taxes | (176,905) | (102,808) | (41,290) |
Income tax benefit | (92) | 0 | 0 |
Net loss | (176,813) | (102,808) | (41,290) |
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on available-for-sale-investments, net of tax | 346 | (140) | (13) |
Total comprehensive loss | $ (176,467) | $ (102,948) | $ (41,303) |
Net loss per share, basic and diluted (in USD per share) | $ (3.72) | $ (4.64) | $ (19.32) |
Weighted-average number of shares outstanding, basic and diluted (in shares) | 47,521,237 | 22,146,192 | 2,137,690 |
STATEMENTS OF CONVERTIBLE PREFE
STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Series C Preferred Stock | Series D Preferred Stock | Series A Preferred Stock | Common Stock | Additional Paid-in Capital | AOCI Attributable to Parent | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2016 | 63,361,895 | |||||||
Beginning balance at Dec. 31, 2016 | $ 66,883 | |||||||
Beginning balance (in shares) at Dec. 31, 2016 | 2,256,530 | |||||||
Beginning balance at Dec. 31, 2016 | (47,628) | $ 2 | $ 466 | $ 0 | $ (48,096) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of convertible preferred stock –subsequent closing, for cash, net of issuance cost and settlement of the preferred stock obligation (in shares) | 16,274,192 | 24,493,615 | ||||||
Issuance of convertible preferred stock –subsequent closing, for cash, net of issuance cost and settlement of the preferred stock obligation | $ 22,882 | $ 57,305 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 16,079 | |||||||
Issuance of common stock upon exercise of stock options | 14 | 14 | ||||||
Stock-based compensation | 876 | 876 | ||||||
Net unrealized gain (loss) on available-for-sale-investments, net of tax | (13) | (13) | ||||||
Net loss | $ (41,290) | (41,290) | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 104,129,702 | |||||||
Ending balance at Dec. 31, 2017 | $ 147,070 | |||||||
Ending balance (in shares) at Dec. 31, 2017 | 2,272,609 | |||||||
Ending balance at Dec. 31, 2017 | (88,041) | $ 2 | 1,356 | (13) | (89,386) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock-based compensation | $ 5,152 | 5,152 | ||||||
Issuance of Series A warrant for cash (in shares) | 95,936 | |||||||
Issuance of Series A convertible preferred stock upon exercise of warrant | $ 458 | |||||||
Conversion of convertible preferred shares to common stock (in shares) | (104,225,638) | |||||||
Conversion of convertible preferred shares to common stock | $ (147,528) | |||||||
Common stock issued in conversion of convertible preferred stock (in shares) | 26,187,321 | |||||||
Conversion of convertible preferred stock to common stock | 147,528 | $ 26 | 147,502 | |||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs (in shares0 | 13,455,000 | |||||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs | 231,186 | $ 13 | 231,173 | |||||
Reclassification of common stock warrant liability to equity | 194 | 194 | ||||||
Issuance of warrant in connection with Term Loan | 884 | 884 | ||||||
Issuance of common stock upon exercise of stock options, warrants and employee stock purchase plan (in shares) | 233,317 | |||||||
Issuance of common stock under equity incentive plans | 570 | $ 1 | 569 | |||||
Net unrealized gain (loss) on available-for-sale-investments, net of tax | (140) | (140) | ||||||
Net loss | $ (102,808) | (102,808) | ||||||
Ending balance (in shares) at Dec. 31, 2018 | 0 | |||||||
Ending balance at Dec. 31, 2018 | $ 0 | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 42,148,247 | 42,148,247 | ||||||
Ending balance at Dec. 31, 2018 | $ 194,525 | $ 42 | 386,830 | (153) | (192,194) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,108,700 | |||||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs (in shares0 | 6,440,000 | |||||||
Issuance of common stock in connection with initial public offering, net of underwriter discounts and issuance costs | $ 217,009 | $ 6 | 217,003 | |||||
Issuance of warrant in connection with Term Loan | 535 | 535 | ||||||
Issuance of common stock under equity incentive plans (in shares) | 1,174,929 | |||||||
Issuance of common stock under equity incentive plans | 3,113 | $ 2 | 3,111 | |||||
Stock-based compensation | 25,168 | 25,168 | ||||||
Net unrealized gain (loss) on available-for-sale-investments, net of tax | 346 | 346 | ||||||
Net loss | $ (176,813) | (176,813) | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | |||||||
Ending balance at Dec. 31, 2019 | $ 0 | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 49,763,176 | 49,763,176 | ||||||
Ending balance at Dec. 31, 2019 | $ 263,883 | $ 50 | $ 632,647 | $ 193 | $ (369,007) |
STATEMENTS OF CONVERTIBLE PRE_2
STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND STOCKHOLDERS' EQUITY (DEFICIT) - (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Series C Preferred Stock | |
Settlement of preferred stock obligation | $ 2,278 |
Preferred Stock | Series C Preferred Stock | |
Issued at | $ / shares | $ 1.55 |
Issuance costs | $ 65 |
Settlement of preferred stock obligation | $ 2,278 |
Preferred Stock | Series D Preferred Stock | |
Issued at | $ / shares | $ 2.35 |
Issuance costs | $ 255 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net loss | $ (176,813) | $ (102,808) | $ (41,290) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 757 | 618 | 335 |
Amortization of operating lease right-of-use assets | 964 | ||
Accretion (amortization) of premiums and discounts on investments | (3,698) | (1,094) | (42) |
Amortization of Term Loan discount and issuance costs | 2,173 | 1,316 | 0 |
Stock-based compensation | 25,168 | 5,152 | 876 |
Changes in fair value of compound derivative liability and warrants | 816 | (188) | 0 |
Changes in fair value of preferred stock tranche obligation | 0 | 0 | (5,649) |
Other non-cash items | (92) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other assets | (1,492) | (1,338) | (1,157) |
Accounts payable | (2,621) | 4,573 | 1,757 |
Accrued expenses and other liabilities | 25,955 | (1,087) | 4,769 |
Operating lease liabilities | (707) | ||
Net cash used in operating activities | (129,590) | (94,856) | (40,401) |
Investing activities: | |||
Purchase of investments | (497,492) | (233,928) | (76,846) |
Maturities of investments | 371,417 | 86,429 | 39,903 |
Purchase of property and equipment | (1,423) | (855) | (1,004) |
Net cash used in investing activities | (127,498) | (148,354) | (37,947) |
Financing activities: | |||
Proceeds from equity offerings, net | 217,930 | 237,750 | 0 |
Payments of offering costs | (921) | (6,564) | 0 |
Proceeds from exercise of common stock under equity incentive plans | 3,036 | 632 | 14 |
Proceeds from issuance of convertible preferred stock, net | 0 | 85 | 82,465 |
Proceeds from leasehold improvement loan | 0 | 276 | 0 |
Repayments of leasehold improvement loan | 106 | 113 | 39 |
Proceeds (payments) under Term Loan, net | 18,551 | 38,542 | 0 |
Net cash provided by financing activities | 238,490 | 270,608 | 82,440 |
Net increase (decrease) in cash and cash equivalents | (18,598) | 27,398 | 4,092 |
Cash and cash equivalents at beginning of year | 37,172 | 9,774 | 5,682 |
Cash and cash equivalents at end of year | 18,574 | 37,172 | 9,774 |
Supplemental disclosures | |||
Cash paid for interest | 3,348 | 1,612 | 0 |
Supplemental disclosures of non-cash investing and financing activities | |||
Right-of-use assets obtained in exchange for lease obligations | 8,084 | ||
Warrants and compound derivative liability related to Term Loan | 535 | 1,693 | 0 |
Purchase of property and equipment in accounts payable and accrued expenses | 820 | 27 | 0 |
Series C Preferred Stock | |||
Supplemental disclosures of non-cash investing and financing activities | |||
Series C fair value of preferred stock obligation upon closing | $ 0 | $ 0 | $ 2,278 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGAINZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization —Tricida, Inc, or the Company, was incorporated in the state of Delaware on May 22, 2013 and was granted its certification of qualification in the state of California on August 5, 2013, or inception. The Company is focused on the development and commercialization of its drug candidate, veverimer (also known as TRC101), a non-absorbed, orally-administered polymer designed to treat metabolic acidosis in patients with chronic kidney disease. The Company has sustained operating losses and expects such annual losses to continue over the next several years. The Company’s ultimate success depends on the outcome of its research and development and commercialization activities for veverimer, for which it expects to incur additional losses in the future. Through December 31, 2019, the Company has relied primarily on the proceeds from equity offerings and debt financing to finance its operations. The Company recognizes that it may need to raise additional capital to fully implement its business plan, and if market conditions are favorable or if the Company identifies specific strategic opportunities or needs, intends to do so through the issuance of equity, borrowings, or strategic alliances with partner companies. However, if such financing is not available at adequate levels or on reasonable terms, the Company will need to reevaluate its operating plans and could be required to significantly reduce operating expenses and delay, reduce the scope of or eliminate some of its development programs or its future commercialization efforts, out-license intellectual property rights to its product candidates and sell unsecured assets, or a combination of the above, any of which may have a material adverse effect on its business, results of operations, financial condition and/or its ability to fund its scheduled obligations on a timely basis or at all. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents —All highly liquid investments with maturities at the date of purchase of three months or less are classified as cash equivalents. There are no restrictions on cash and cash equivalents. Investments —The Company's investments are in U.S. government securities, commercial paper, corporate debt securities and asset-backed securities. All investments with maturities of greater than three months at the date of purchase and maturities of less than one year at the reporting date are classified as short-term investments, while investments with maturities of a year or more at the reporting date are classified as long-term investments. The Company has classified its investments as available-for-sale in the accompanying financial statements. Available-for-sale investments are carried at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). Realized gains and losses on the sale of all such securities are reported in other income (expense), net and are computed using the specific identification method. All of the Company's investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of investments below the cost basis is judged to be other-than-temporary and would mark the security to market through a change to the statement of operations and comprehensive loss. In determining whether a decline in market value is other-than-temporary, various factors are considered, including the cause, duration of time and severity of the impairment, any adverse changes in the investees’ financial condition, and the Company’s intent and ability to hold the security for a period of time sufficient to allow for an anticipated recovery in market value. There were no investments deemed to be impaired as of December 31, 2019. Concentration of Credit Risk and Other Risks and Uncertainties —Financial instruments that potentially subject the Company to a concentration of credit risk, consist primarily of cash, cash equivalents, short-term and long-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that these financial institutions are financially sound, and, accordingly, minimal credit risk exists with respect to those financial institutions. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents, short-term and long-term investments and by the issuers of the securities to the extent recorded in the balance sheet. The Company is dependent on third-party manufacturers to supply products for research and development activities in its programs and prepare for the commercial launch of veverimer. In particular, the Company relies and expects to continue to rely on a small number of manufacturers to supply it with its requirements for the active pharmaceutical ingredient and drug product related to these programs. These programs could be adversely affected by a significant interruption in the supply of active pharmaceutical ingredients and formulated drugs. Property and Equipment —Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, which is three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or their estimated useful economic lives. Impairment of Long-Lived Assets —Long-lived assets consist of property and equipment. The Company assesses potential impairment losses on long-lived assets used in operations when events and circumstances indicate that assets might be impaired. If such events or changes in circumstances arise, the Company compares the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the estimated aggregate undiscounted cash flows are less than the carrying amount of the long-lived assets, an impairment charge, calculated as the amount by which the carrying amount of the assets exceeds the fair value of the assets, is recorded. The fair value of the long-lived assets is determined based on the estimated discounted cash flows expected to be generated from the long-lived assets. The Company has not recognized any impairment losses in the years ended December 31, 2019, 2018 and 2017. Deferred Offering Costs —The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in the statements of convertible preferred stock and stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the equity financing. Clinical and Manufacturing Accruals —The Company records accruals for the estimated costs of research, nonclinical and clinical studies and manufacturing development, which are a significant component of research and development expenses. A substantial portion of the Company’s ongoing research and development activities is conducted by third-party service providers, including clinical research organizations, or CROs, and contract manufacturing organizations, or CMOs. The Company’s contracts with CROs generally include pass-through fees such as regulatory expenses, investigator fees, travel costs and other miscellaneous costs, including shipping and printing fees. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company accrues the costs incurred under agreements with these third parties based on estimates of actual work completed in accordance with the respective agreements. The Company determines the estimated costs through the review of contracts and subsequent discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fees to be paid for such services. The Company makes significant judgments and estimates in determining the accrual balance in each reporting period. As actual costs become known, the Company adjusts its accruals. Although the Company does not expect its estimates to be materially different from amounts actually incurred, the Company’s understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in the Company reporting amounts that are too high or too low in any particular period. The Company’s accrual is dependent, in part, upon the receipt of timely and accurate reporting from information provided as part of its clinical and nonclinical studies and other third-party vendors. For the three years ended December 31, 2019, 2018, and 2017, there have been no material differences from the Company’s accrued estimated expenses to the actual clinical trial and manufacturing expenses. However, variations in the assumptions used to estimate accruals, including, but not limited to the number of patients enrolled, the rate of patient enrollment, the actual services performed, and the amount of manufactured drug substance and/or drug product, and related costs may vary from the Company’s estimates, resulting in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect its financial position and results of operations. Leases —The Company determines if an arrangement contains a lease at inception. For arrangements where the Company is the lessee, operating leases are included in operating lease right-of-use, or ROU, assets; current operating lease liabilities; and non-current operating lease liabilities on its balance sheets. The Company currently does not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU assets also include any initial direct costs incurred and any lease payments made on or before the lease commencement date, less lease incentives received. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The incremental borrowing rate is reevaluated upon a lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. The Company considered information available at the adoption date of Topic 842 to determine the incremental borrowing rate for leases in existence as of this date. Lease terms may include options to extend or terminate the lease when the Company is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company elected to apply each of the practical expedients described in Accounting Standards Codification (ASC) Topic 842-10-65-1(f) which allow companies not to reassess: (i) whether any expired or existing agreements contain leases, (ii) the classification of any expired or existing leases, and (iii) the capitalization of initial direct costs for any existing leases. The Company also elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term operating leases. A short-term is a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Term Loan —The Company accounts for the Loan and Security Agreement, or Term Loan, with Hercules Capital, Inc., or Hercules, as a liability measured at net proceeds less debt discount and is accreted to the face value of the Term Loan over its expected term using the effective interest method. The Company considers whether there are any embedded features in its debt instruments that require bifurcation and separate accounting as derivative financial instruments pursuant to Accounting Standards Codification, or ASC, Topic 815, Derivatives and Hedging . Convertible Preferred Stock —The Company recorded all shares of convertible preferred stock at their respective fair values, net of issuance costs, on the dates of issuance. Upon the closing of the Initial Public Offering, or IPO, on July 2, 2018, the 104,225,638 shares of convertible preferred stock outstanding were automatically converted into 26,187,321 shares of common stock. Warrants —The Company issued freestanding warrants to purchase shares of common stock in connection with its Term Loan. The warrants are recorded at fair value using the Black-Scholes option pricing model. See Note 6 "Borrowings" to these financial statements for additional details. Preferred Stock Tranche Obligation —The Company entered into convertible preferred stock financings where, in addition to the initial closing, investors agreed to buy, and the Company agreed to sell, additional shares of that convertible preferred stock at a set price in the event that certain agreed milestones are achieved (a tranched financing). The Company evaluated this tranche obligation and determined that it met the definition of a freestanding instrument, and accordingly, determined the fair value of this obligation and recorded it on the balance sheet with the residual of the proceeds raised being allocated to convertible preferred stock. The preferred stock tranche obligation was revalued each reporting period with changes in the fair value of the obligation recorded as a component of other income (expense), net in the statements of operations and comprehensive loss. The preferred stock tranche obligation was revalued at settlement and the resultant fair value was then reclassified to convertible preferred stock at that time. Research and Development Expense —Research and development expense is charged to the statements of operations and comprehensive loss in the period in which they are incurred. Research and development expense consists primarily of salaries and related costs, including stock-based compensation expense, for personnel and consultants in our research and development functions; fees paid to clinical consultants, clinical trial sites and vendors, including CROs, costs related to pre-commercialization manufacturing activities including payments to CMOs and other vendors and consultants, costs related to regulatory activities, expenses related to lab supplies and services and depreciation and other allocated facility-related and overhead expenses. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed. Stock-Based Compensation —Stock-based compensation expense represents the grant-date fair value of awards recognized on a straight-line basis or by using an accelerated attribution method for awards with performance conditions over the employee's requisite service period (generally the vesting period). The Black-Scholes option-pricing model is used to calculate stock-based compensation expense for stock option awards and shares purchased under the Employee Stock Purchase Plan, or ESPP. For restricted stock units, or RSUs, the grant-date fair value is the closing price of the Company's common stock on the date of grant as reported on The Nasdaq Global Select Market. Because stock compensation expense is an estimate of awards ultimately expected to vest, it is reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. The Company records the expense attributed to nonemployee services paid with stock option awards based on the estimated fair value of the awards determined using the Black-Scholes option pricing model. The measurement of stock-based compensation for nonemployees was previously subject to remeasurement as the options vested. As of July 1, 2018, the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting , which no longer subjects nonemployee awards to remeasurement. The expense is recognized over the period during which services are received. Income Taxes —The Company accounts for income taxes using the liability method, whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance when it is more likely than not that some portion or all of its deferred tax assets will not be realized. The Company accounts for income tax contingencies using a benefit recognition model. If it considers that a tax position is more likely than not to be sustained upon audit, based solely on the technical merits of the position, it recognizes the benefit. The Company measures the benefit by determining the amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. Comprehensive Loss —Comprehensive loss is comprised of net loss and other comprehensive income (loss). Other comprehensive loss includes changes in stockholders’ equity (deficit) that are excluded from net loss, primarily unrealized gains or losses on the Company’s available-for-sale investments. These changes in stockholders' equity are reflected net of tax. Net Loss per Share —Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive given the net loss for each period presented. Segment Reporting —The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. All of the Company's assets are maintained in the United States. Recent Accounting Pronouncements Adopted Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Topic 842, which amended prior accounting standards for leases. The Company adopted Topic 842 on January 1, 2019, using the alternative modified transition method, which applies the standard as of the effective date and therefore, the Company has not applied the standard to the comparative periods presented on the Company's financial statements. The Company elected the following practical expedients when assessing the transition impact available to lessees: (i) not to reassess whether any expired or existing contracts as of January 1, 2019, are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases as of January 1, 2019; and (iii) not to reassess initial direct costs for any existing leases as of January 1, 2019. As a lessee, the primary impact of the adoption of Topic 842 was the recognition of operating lease ROU assets of $2.3 million and operating lease liabilities of $2.5 million on its balance sheet as of January 1, 2019. See Note 4 "Leases" for additional details. Standards Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. ASU 2016-13 implements an impairment model, known as the current expected credit loss model, based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize, as an allowance, its estimate of expected credit losses. The ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of ASU 2016-13 will have a significant impact on its financial statements. In September 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends ASC Topic 820, Fair Value Measurement and Disclosures, or ASU 2018-13. The FASB issued final guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. Under the ASU, entities will no longer be required to disclose the amount of transfers between Level 1 and Level 2 of the fair value hierarchy. Public companies will be required to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for public business entities for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance on January 1, 2020. The Company does not expect the adoption of ASU 2018-13 will have a significant impact on its financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12, which simplifies the accounting for income taxes. ASU 2019-12 is effective for public business entities for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2020 on a prospective basis, and early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 will have a significant impact on its financial statements. |
FAIR VALUE MEASUREMENTS AND FAI
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of the Company’s financial assets and liabilities are determined in accordance with the fair value hierarchy established in Topic 820 issued by the FASB. Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy of Topic 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels: Level 1 —Observable inputs, such as quoted prices in active markets; Level 2 —Inputs, other than the quoted prices in active markets, which are observable either directly or indirectly such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the instrument’s anticipated life; and Level 3 —Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company's policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of the reporting period. There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2019 and 2018. Our financial instruments consist primarily of cash and cash equivalents, short-term and long-term investments, accounts payable and the Term Loan with Hercules. Cash, cash equivalents and investments are reported at their respective fair values on Company's balance sheets. Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds as Level 1. When quoted market prices are not available for the specific security, then the Company estimates fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third-party data providers, including but not limited to benchmark yields, reported trades and broker/dealer quotes. Where applicable, the market approach utilizes prices and information from market transactions for similar or identical assets. The Company classifies U.S. government agency securities, commercial paper, corporate debt securities and asset-backed securities as Level 2. The Company's short-term and long-term investments are classified as available-for-sale. The following tables set forth the value of the Company's financial assets remeasured on a recurring basis based on the three-tier fair value hierarchy by significant investment category as of December 31, 2019 and 2018. December 31, 2019 Reported as: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term investments Cash $ 1,393 $ — $ — $ 1,393 $ 1,393 $ — $ — Level 1: Money market fund 17,181 — — 17,181 17,181 — — Level 2: U.S. government agency securities 40,741 6 (14) 40,733 — 19,990 20,743 Commercial paper 108,248 107 (2) 108,353 — 108,353 — Corporate debt securities 185,569 205 (20) 185,754 — 159,517 26,237 Asset-backed securities 1,561 3 — 1,564 — 1,564 — Subtotal 336,119 321 (36) 336,404 — 289,424 46,980 Total assets measured at fair value $ 354,693 $ 321 $ (36) $ 354,978 $ 18,574 $ 289,424 $ 46,980 December 31, 2018 Reported as: (in thousands) Amortized cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term investments Cash $ 3,021 $ — $ — $ 3,021 $ 3,021 $ — $ — Level 1: Money market fund 33,154 — — 33,154 33,154 — — Level 2: Commercial paper 68,467 — (63) 68,404 997 67,407 — Corporate debt securities 89,038 4 (63) 88,979 — 86,692 2,287 Asset-backed securities 49,838 3 (34) 49,807 — 49,807 — Subtotal 207,343 7 (160) 207,190 997 203,906 2,287 Total assets measured at fair value $ 243,518 $ 7 $ (160) $ 243,365 $ 37,172 $ 203,906 $ 2,287 Interest income related to the Company's cash, cash equivalents and available-for-sale investments included in other income (expense), net was approximately $8.7 million, $3.5 million and $0.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. There were no gross realized gains and gross realized losses for the years presented. The following table summarizes the Company's available-for-sale investments that were in a continuous unrealized loss position but were not deemed to be other-than-temporarily impaired, as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government agency securities $ 24,235 $ (14) $ — $ — Commercial paper 5,426 (2) 67,407 (63) Corporate debt securities 38,668 (20) 85,699 (63) Asset-backed securities — — 36,730 (34) Total $ 68,329 $ (36) $ 189,836 $ (160) The Company held a total of 18 and 48 positions which were in an unrealized loss position as of December 31, 2019 and 2018, respectively. All available-for-sale investments in an unrealized loss position were in a continuous loss position for less than 12 months. As of December 31, 2019, unrealized losses on available-for-sale investments were not attributable to credit risk. The Company determined that there were no other-than-temporary impairments as of December 31, 2019 and 2018 because the Company does not intend to sell these securities nor does the Company believe that it will be required to sell these securities before the recovery of their amortized cost basis. The following table summarizes the maturities of the Company’s cash equivalents (excluding money market funds) and available-for-sale investments, as of December 31, 2019. (in thousands) Amortized Cost Fair Value Mature in less than one year $ 289,156 $ 289,424 Mature in one to five years 46,963 46,980 Total $ 336,119 $ 336,404 The following table presents a reconciliation of financial liabilities measured at fair value on a recurring basis using Level 3 unobservable inputs for the years ended December 31, 2019 and 2018. 2019 2018 (in thousands) Compound Derivative Liability Compound Derivative Liability Warrant Fair value at beginning of year $ 161 $ — $ 106 Additions — 654 156 Change in fair value 816 (493) 305 Reclassification to equity — — (194) Issuance of convertible preferred stock on exercise of warrant — — (373) Fair value at end of year $ 977 $ 161 $ — The following table presents information about significant unobservable inputs related to the Company's Level 3 financial liabilities as of December 31, 2019. December 31, 2019 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Input Compound derivative liability $977 Discounted cash flow Discount rate 10.7 % Probability of the occurrence of certain events 20.0 % Term Loan The estimated fair value of the Term Loan was $59.2 million and $37.8 million as of December 31, 2019 and 2018, respectively, and is classified as Level 3. The key valuation assumptions used to calculate the fair value of the Term Loan as of December 31, 2019 consist of the discount rate of 10.7% and the probability of occurrence of certain events of 20.0%. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES In July 2014, the Company entered into a five On August 14, 2019, the Company entered into a third amendment to the existing operating lease which will extend the leased space by an additional 19,177 square feet, or Second Expansion Premises, and will result in a total of 46,074 square feet being leased in aggregate. The operating lease for the Second Expansion Premises will commence on the date they are delivered to the Company, which is expected to be September 1, 2020 (the Second Expansion Premises Commencement Date). In conjunction with the third amendment, the Company also agreed to lease 5,569 square feet of temporary office space effective August 15, 2019 to the Second Expansion Premises Commencement Date. The third amendment will extend the lease by 84 months from the Second Expansion Premises Commencement Date, with an option to extend the lease for an additional 36 months subject to certain conditions. The Company determined that the Second Expansion Premises shall be accounted for as a new lease at the Second Expansion Premises Commencement Date. Further, the Company determined that the amendment to the existing operating lease and temporary office space shall be accounted as a lease modification as of September 30, 2019. The Company recognized an operating lease ROU asset of $8.1 million and operating lease liability of $8.1 million on its balance sheet upon the execution of the third amendment on August 14, 2019, and will measure and record an additional ROU asset and operating lease liability for the Second Expansion Premises upon the Second Expansion Premises Commencement Date. Operating lease expense was $1.3 million, $1.0 million and $0.7 million for the years ended December 31, 2019, 2018 and 2017. Operating cash flows for the year ended December 31, 2019 included $1.1 million in cash payments for operating leases. Expense related to short-term leases was not significant for the year ended December 31, 2019. The following table presents the maturity analysis of the Company's operating lease liabilities showing the aggregate lease payments as of December 31, 2019. (in thousands) December 31, 2019 2020 $ 1,108 2021 1,377 2022 1,662 2023 and thereafter 8,434 Total lease payments (1) 12,581 Less: imputed interest (2,726) Total operating lease liabilities $ 9,855 (1) As noted above, the operating lease for the Second Expansion Premises will commence in fiscal year 2020 and therefore the lease related to the Second Expansion Premises is not recognized on the balance sheet as of December 31, 2019. As of December 31, 2019, future minimum lease payments related to the Second Expansion Premises are expected to be $8.2 million over the lease term of 7.0 years. Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate. The weighted average incremental borrowing rate used to determine the operating lease liabilities as of December 31, 2019 was 6.0%. The Company's weighted average remaining lease term was 7.7 years as of December 31, 2019. ASC Topic 840 Disclosures The Company elected the alternative modified transition method. The following table presents the future minimum lease commitments under the Company’s operating leases as of December 31, 2018 as previously disclosed under prior lease accounting standards. (in thousands) December 31, 2018 2019 $ 1,076 2020 1,108 2021 562 2022 and thereafter — Total future minimum lease payments $ 2,746 |
OTHER BALANCE SHEET COMPONENTS
OTHER BALANCE SHEET COMPONENTS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER BALANCE SHEET COMPONENTS | OTHER BALANCE SHEET COMPONENTS Property and Equipment, Net The following table presents the components of property and equipment, net as of December 31, 2019 and 2018. (in thousands) December 31, 2019 December 31, 2018 Furniture and fixtures $ 265 $ 193 Computer and lab equipment 3,867 1,888 Leasehold improvements 1,244 1,055 5,376 3,136 Less: accumulated depreciation and amortization (2,648) (1,921) Total property and equipment, net $ 2,728 $ 1,215 Depreciation and amortization expense was approximately $0.8 million, $0.6 million and $0.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Accrued Expenses and Other Current Liabilities The following table presents the components of accrued expenses and other current liabilities as of December 31, 2019 and 2018. (in thousands) December 31, 2019 December 31, 2018 Accrued clinical and nonclinical study costs $ 8,343 $ 2,168 Accrued contract manufacturing 17,343 1,676 Accrued compensation 3,367 1,565 Accrued professional fees and other 3,727 935 Total accrued expenses and other current liabilities $ 32,780 $ 6,344 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Term Loan On February 28, 2018, the Company entered into the Term Loan with Hercules. The Term Loan provided for a loan in an aggregate principal amount of up to $100.0 million to be funded in five tranches subject to certain performance-based milestones. The first tranche, in the amount of $25.0 million, was funded on the closing date of the Term Loan. On October 15, 2018, the Company and Hercules entered into the second amendment to the Term Loan, which amended certain terms of the Term Loan. After giving effect to the second amendment, the Term Loan continued to provide for a loan in an aggregate principal amount of up to $100.0 million to be funded in five tranches subject to certain performance-based milestones. The second tranche was reduced from $25.0 million to $15.0 million and was funded on December 28, 2018. The Company accounted for the second amendment as a modification to the existing Term Loan. On March 27, 2019, the Company modified the Term Loan with Hercules by entering into the third amendment to the Term Loan. After giving effect to the third amendment, the amount available under the Term Loan is increased from up to $100.0 million to up to $200.00 million to be funded in tranches, subject to certain performance-based milestones, and the maturity of the Term Loan is extended. Under the terms of the Term Loan, as amended by the third amendment, the $40.0 million principal outstanding under the Term Loan at the date of the modification remains outstanding, and additional tranches of $20.0 million and $15.0 million will be available for draw down prior to December 15, 2019 and December 15, 2020, respectively. An additional tranche of $75.0 million will be available for draw down between January 1, 2020 and December 15, 2020, on the condition that the Company obtains final approval from the U.S. Food and Drug Administration, or FDA, for the New Drug Application, or NDA, for veverimer. A final tranche of $50.0 million will be available for draw down on or prior to December 15, 2021, upon request by the Company and the approval of Hercules' investment committee. The Company accounted for the third amendment as a modification to the existing Term Loan. On December 13, 2019, the third tranche of the Term Loan was funded in the amount of $20.0 million. The Term Loan bears interest at a floating per annum interest rate equal to the greater of either (i) 8.35% or (ii) the lesser of (x) 8.35% plus the prime rate as reported in The Wall Street Journal minus 6.00% and (y) 9.85%. The maturity date is extended to April 1, 2023 and may be extended to April 1, 2024 if the tranche of $75.0 million described above is drawn. The Company will initially be making interest-only payments until April 1, 2021. If the Company achieves certain performance milestones and financial covenants, the interest-only period could be extended for up to an additional 24 months. Upon expiration of the interest-only period, the Company will repay the Term Loan in equal monthly installments comprised of principal and interest, based on a 30-month amortization schedule, through maturity. The Company will pay an additional amount of (a) $2.6 million due on March 1, 2022 and (b) the product of 7.55% and the aggregate loans funded under the Term Loan due at maturity or on any earlier date on which the loans become due. If the Company prepays the Term Loan, the Company will be required to pay a prepayment charge equal to (i) 2.00% of the amount being prepaid at any time during the first 12 months following the effective date of the third amendment (ii) 1.50% of the amount being prepaid after 12 months but prior to 24 months following the effective date of the third amendment (iii) 1.00% of the amount being prepaid after 24 months but prior to 36 months following the effective date of the third amendment and (iv) zero if prepaid any time after 36 months following the effective date of the third amendment but prior to the maturity. The Term Loan is secured by substantially all of the Company's assets, except its intellectual property, which is the subject of a negative pledge; however, the collateral does consist of rights to payments and proceeds from the sale, licensing or disposition of all or any part of, or rights in, its intellectual property. Under the Term Loan, the Company is subject to certain covenants, including but not limited to requirements to deliver financial reports at designated times of the year and maintain a minimum level of cash. These covenants also limit or restrict the Company's ability to incur additional indebtedness or liens, acquire, own or make any investments, pay cash dividends, repurchase stock or enter into certain corporate transactions, including mergers and changes of control. Warrants In conjunction with the Term Loan entered into on February 28, 2018, the Company issued a warrant to Hercules to purchase 53,458 shares of its common stock with an exercise price of $9.35 per share. The estimated fair value of the warrant at the date of issuance was approximately $0.2 million. The fair value of the common stock warrant liability was determined using the probability-weighted expected return method. It was recorded at its fair value at inception and was remeasured at each financial reporting period with any changes in fair value being recognized as a component of other income (expense), net in the accompanying statements of operations and comprehensive loss. On April 10, 2018, the Company entered into amendments with Hercules that resulted in the reclassification of the warrant liability to stockholders' equity (deficit) as the amended terms of the warrants qualified for them to be accounted for as equity instruments and as such were no longer subject to remeasurement. The fair value of the common stock warrants of approximately $0.2 million was reclassified to stockholders' equity (deficit) upon execution of the amendment. In connection with the funding of the second tranche on December 28, 2018, the Company issued to Hercules a warrant to purchase 53,458 shares of its common stock at an exercise price of $9.35 per share. The common stock warrant was recorded in stockholders' equity (deficit) at its fair value of approximately $0.9 million on December 28, 2018. In conjunction with the third amendment, the Company issued warrants to Hercules to purchase 16,721 shares of its common stock with an exercise price of $23.92 per share. The common stock warrants were recorded in stockholders' equity (deficit) at their fair value of approximately $0.3 million on March 27, 2019. The fair value of the common stock warrants were determined using an option-pricing model with the following assumptions: time to liquidity of 7.0 years, volatility of 75.0%, risk-free rate of 2.3% and stock price based on the March 27, 2019 closing price of the Company's common stock reported by The Nasdaq Global Select Market. In connection with the funding of the third tranche on December 13, 2019, or the issuance date, the Company issued to Hercules a warrant to purchase 8,361 shares of its common stock at an exercise price of $23.92 per share. The common stock warrant was recorded in stockholders' equity (deficit) at its fair value of approximately $0.3 million on the issuance date. The fair value of the common stock warrants was determined using an option-pricing model with the following assumptions: time to liquidity of 7.0 years, volatility of 72.7%, risk-free rate of 1.8% and stock price based on the December 13, 2019 closing price of the Company's common stock reported by The Nasdaq Global Select Market. In connection with each subsequent draw down under the tranches described above, the Company is obligated to issue additional warrants to purchase a number of shares of the Company's common stock determined by dividing (x) an amount equal to 1.0% of the principal amount of the applicable tranche by (y) $23.92 subject to adjustments following certain corporate events. Embedded Derivatives and Other Debt Issuance Costs The Company determined that certain loan features were embedded derivatives requiring bifurcation and separate accounting. Those embedded derivatives were bundled together as a single, compound embedded derivative and then bifurcated and accounted for separately from the host contract. The Company initially recorded a compound derivative liability of $0.7 million, which is required to be marked to market in future periods. As of December 31, 2019, the Company calculated the fair values of the compound derivative using the “with and without” method under the income approach by computing the difference between the fair value of the Term Loan with the compound derivative and the fair value of the Term Loan without the compound derivative. The Company calculated the fair values using a probability-weighted discounted cash flow analysis. The key valuation assumptions used consist of the discount rate of 10.7% and the probability of the occurrence of certain events of 20%. The compound derivative liability is being remeasured at each financial reporting period with any changes in fair value being recognized as a component of other income (expense), net in the statements of operations and comprehensive loss. The fair value of the compound derivative liability was approximately $1.0 million and was classified as other long-term liabilities on the balance sheet. The facility fee, fair value of warrants at issuance, fair value of embedded derivatives which were bifurcated, and other debt issuance costs have been treated as debt discounts on the Company’s balance sheet and together with the additional payment are being amortized to interest expense throughout the life of the Term Loan using the effective interest rate method. As of December 31, 2019 and 2018, there were unamortized issuance costs and debt discounts of $3.6 million and $2.7 million, respectively, which were recorded as a direct deduction from the Term Loan on the balance sheets. The following table presents future payments of principal and interest on the Term Loan as of December 31, 2019. (in thousands) December 31, 2019 2020 $ 5,038 2021 21,259 2022 26,675 2023 19,893 72,865 Less: amount representing interest (12,865) Present value of Term Loan 60,000 Less: current portion — Long-term portion of Term Loan $ 60,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has contractual obligations from its operating lease, manufacturing and service contracts, Term Loan and tenant improvement loan, and other research and development activities. The following table aggregates the Company’s material expected contractual obligations and commitments as of December 31, 2019. December 31, 2019 (in thousands) Total Less than One Year One to Three Years Three to Five Years More than Five Years Term Loan (1) $ 72,865 $ 5,038 $ 47,934 $ 19,893 $ — Lease obligations (2) 20,774 1,309 5,018 5,953 8,494 Tenant improvement loan 140 93 47 — — Manufacturing and service contracts (3) 600,269 64,354 83,107 113,202 339,606 Total contractual obligations and commitments $ 694,048 $ 70,794 $ 136,106 $ 139,048 $ 348,100 (1) The long-term debt obligation is comprised of the Third Amended to the Loan and Security Agreement that was executed during March 2019. (2) These amounts are comprised of the rent payments on our existing lease and on the Second Expansion Premises which will commence on September 2020 under our amended lease that was executed on August 14, 2019. (3) The purchase obligations are comprised of our non-cancelable purchase commitments under our Manufacturing and Commercial Supply Agreement with Patheon. These amounts are based on forecasts that may include estimates of our future market demand, quantity discounts and manufacturing efficiencies. Facilities On August 14, 2019, the Company extended the lease for its offices and laboratory space in South San Francisco. See Note 4. "Leases" for additional information about this lease. Other Commitments On October 4, 2019, the Company and Patheon entered into a multi-year Manufacturing and Commercial Supply Agreement, or the Supply Agreement, under which Patheon agreed to manufacture and supply veverimer to support the Company's commercialization efforts. Patheon has also agreed to manufacture and supply veverimer to support the Company’s drug development and clinical trial activities. Under the Supply Agreement, the Company is obligated to make certain purchases of API. The Company and Patheon are also parties to a Master Development/Validation Services and Clinical/Launch Supply Agreement, or the MDA, pursuant to which Patheon agreed to manufacture and supply veverimer. Certain manufacturing activities previously governed by the MDA are now subject to the Supply Agreement, whereas other ongoing manufacturing activities under the MDA will continue to be governed by the MDA until such activities are complete. The Supply Agreement may be terminated by either party following an uncured material breach by the other party, in the event the other party becomes insolvent or subject to bankruptcy proceedings, or in connection with a force majeure event that continues beyond 12 months. In addition, the Supply Agreement may be terminated by the Company upon the occurrence of certain regulatory events or actions, including: (i) if the Company does not obtain regulatory approval for veverimer by a specified date or (ii) if the Company terminates its commercialization of veverimer or fails to launch veverimer by a specified date. The Company’s obligation to purchase veverimer is subject to minimum and maximum annual commitments, with the minimum commitments subject to reduction in certain circumstances. Patheon has agreed to make facility improvements under the Supply Agreement and will be the exclusive owner of the purchased equipment and facility improvements. Patheon may manufacture other products with the facility improvements when not occupied by manufacturing veverimer. Under the Supply Agreement, the Company has agreed to reimburse Patheon up to a specified amount for plant modifications. These payments will be expensed to research and development prior to FDA approval of veverimer. The Company also enters into other contracts in the normal course of business with contract research organizations, contract development and manufacturing organizations and other service providers and vendors. These contracts generally provide for termination on short notice and are cancelable contracts and accordingly, are not included in the contractual obligations and disclosures summarized above. Contingencies While there are no legal proceedings the Company is aware of, the Company may become party to various claims and complaints arising in the ordinary course of business. Management does not believe that any ultimate liability resulting from any of these claims will have a material adverse effect on its results of operations, financial position, or liquidity. However, management cannot give any assurance regarding the ultimate outcome of these claims, and their resolution could be material to operating results for any particular period, depending upon the level of income for the period. Guarantees and Indemnifications The Company indemnifies each of its directors and officers for certain events or occurrences, subject to certain limits, while the director is or was serving at the Company’s request in such capacity, as permitted under Delaware law and in accordance with its certificate of incorporation and bylaws. The term of the indemnification period lasts as long as a director may be subject to any proceeding arising out of acts or omissions of such director in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds director liability insurance. This insurance allows the transfer of risk associated with the Company’s exposure and may enable it to recover a portion of any future amounts paid. The Company believes that the fair value of these indemnification obligations is minimal. Accordingly, it has not recognized any liabilities relating to these obligations for any period presented. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY On July 2, 2018, the Company’s amended and restated certificate of incorporation became effective, authorizing the Company to issue a total of 440,000,000 shares of all classes of capital stock, consisting of 400,000,000 shares of common stock, par value $0.001 per share, and 40,000,000 shares of preferred stock, par value $0.001 per share. As of December 31, 2019 and 2018, the Company had 49,763,176 and 42,148,247 shares of common stock outstanding, respectively. As of December 31, 2019 and 2018, the Company had no shares of preferred stock outstanding. Common Stock On July 2, 2018, the Company completed its IPO and issued 13,455,000 shares of common stock at an offering price of $19.00 per share for net proceeds of approximately $237.7 million, after deducting underwriting discounts and commissions of $17.9 million. Upon the closing of the IPO, all of the 104,225,638 shares of convertible preferred stock outstanding were automatically converted on a 1:3.98 basis into 26,187,321 shares of common stock. On April 8, 2019, the Company consummated an underwritten public offering and issued 6,440,000 shares of common stock, which included the exercise in full by the underwriters of their option to purchase 840,000 additional shares of common stock at an offering price of $36.00 per share for net proceeds of approximately $217.9 million, after deducting underwriting discounts and commissions of $13.9 million. Common stock reserved for future issuance as of December 31, 2019 and 2018, consisted of the following. December 31, 2019 December 31, 2018 Stock options and RSUs issued and outstanding 6,809,257 4,599,307 Stock options, RSUs and ESPP shares authorized for future issuance 3,257,316 4,534,784 Total 10,066,573 9,134,091 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Equity Incentive Plans During 2013, the Company adopted an equity compensation plan, the 2013 Equity Incentive Plan, or 2013 Plan, for eligible employees, officers, directors, advisors, and consultants. The 2013 Plan provided for the grant of incentive and non-statutory stock options. In June 2018, the Company's board of directors and stockholders approved the 2018 Equity Incentive Plan, or 2018 Plan. Any shares of common stock covered by awards granted under the 2013 Plan that terminated after June 22, 2018 by expiration, forfeiture, or cancellation were added to the 2018 Plan reserve and shares available for future issuance under the 2013 Plan were canceled. The initial number of shares of common stock available for issuance under the 2018 Plan was 4,000,000. Unless our board of directors provides otherwise, beginning on January 1, 2019 and continuing until the expiration of the 2018 Plan, the total number of shares of common stock available for issuance under the 2018 Plan will automatically increase annually on January 1 by the lesser of (i) 3,200,000 shares of Common Stock, (ii) 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year and (iii) an amount determined by the board of directors. Under the 2018 Plan, any shares that are forfeited or expired are added back to the shares available for issuance. In the year ended December 31, 2019, the number of shares of common stock reserved for issuance under the 2018 Plan was increased by 1,685,929 shares. As of December 31, 2019, 2,098,380 shares of common stock were available for future issuance of options and restricted stock and other stock-based awards under the 2018 Plan. The terms of the stock option agreements, including vesting requirements, are determined by the board of directors, subject to the provisions of the plans. Options granted by the Company vest over a period of one four three The 2013 Plan and the 2018 Plan allow for early exercise where the option holders may exercise their options prior to vesting. Common stock that is issued upon the early exercise of options is subject to repurchase by the Company at the original exercise price at the option of the Company. As of December 31, 2019 and 2018, there were 5,040 shares and 20,193 shares, respectively, of common stock that were subject to repurchase with an aggregate purchase price of approximately $17 thousand and $89 thousand reflecting a weighted average price of $3.47 and $4.40 per share, respectively. The following table summarizes stock option activity under the plans for the year ended December 31, 2019. Shares Weighted- Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value (thousands) Balance at December 31, 2018 4,577,515 $ 5.99 8.0 $ 84,290 Granted 3,720,091 29.71 Exercised (1,108,700) 1.77 Forfeited or canceled (390,923) 28.29 Balance at December 31, 2019 6,797,983 $ 18.38 8.4 $ 133,892 Vested and expected to vest at December 31, 2019 6,471,442 $ 17.96 8.3 $ 129,998 All outstanding options can be early exercised. Beginning in the year ended December 31, 2018, the Company began to issue restricted stock units, or RSUs, to directors under the 2018 Plan. Awards granted to directors vest on the earlier of the one The following table summarizes RSU activity under the 2018 Plan for the year ended December 31, 2019. Shares Weighted- Unvested balance at December 31, 2018 21,792 $ 19.00 Granted 11,274 36.74 Vested (21,792) 19.00 Forfeited — Unvested balance at December 31, 2019 11,274 $ 36.74 The total vest date fair value of RSUs vested in the year ended December 31, 2019 was $0.8 million. There were no RSUs that vested during the years ended December 31, 2018 and 2017. Employee Stock Purchase Plan In June 2018, the Company's board of directors and stockholders approved the Tricida Inc. ESPP, or ESPP. The ESPP allows eligible employees to have up to 15.0% of their eligible compensation withheld and used to purchase common stock, subject to a maximum of $25,000 worth of stock purchased in a calendar year or no more than 2,500 shares in an offering period, whichever is less. An offering period consists of a six The initial number of shares of common stock available for issuance under the ESPP, was 800,000. Unless the Company's board of directors provides otherwise, beginning on January 1, 2019, the maximum number of shares which shall be made available for sale under the ESPP will automatically increase on the first trading day in January of each calendar year during the term of the ESPP by an amount equal to the lesser of (i) one percent (1.0%) of the total number of shares issued and outstanding on December 31 of the immediately preceding calendar year, (ii) 800,000 shares or (iii) an amount determined by the board of directors. In the year ended December 31, 2019, the number of shares of common stock reserved for issuance under the ESPP was increased by 421,482 shares. The Company issued 44,437 shares under the ESPP, representing approximately $1.1 million in employee contributions, for the year ended December 31, 2019. As of December 31, 2019, there were 1,158,936 shares of commons stock were available for future issuance under the ESPP. Performance Awards In August 2019, the Company granted 594,000 stock options under its 2018 Plan with a performance based milestone with graded vesting over 18 months. Compensation expense for the performance-based awards is recorded over the estimated service period when the performance conditions are deemed probable of achievement. For the year ended December 31, 2019, the stock compensation expense recorded during the period was for service-based awards and performance conditions deemed probable of achievement and/or achieved. Stock Option Valuation Assumptions As stock-based compensation recognized is based on options ultimately expected to vest, the expense has been reduced for estimated forfeitures. The Company uses the Black-Scholes option pricing model to determine the estimated fair value of stock options at the date of the grant. The Black-Scholes model includes inputs that require the input of subjective assumptions, including expected volatility, expected dividend yield, expected term, risk-free rate of return, and the estimated fair value of the underlying common stock on the date of grant. Expected Term: The expected term of the options represents the average period the stock options are expected to remain outstanding. As the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior, the expected term of options granted is derived from the average midpoint between the weighted average vesting term and the contractual term, also known as the simplified method. Expected Volatility: Beginning in the fourth fiscal quarter of 2019, expected volatility is estimated using a weighted-average historical volatility for our common stock and the historical volatility of the common stock of a representative group of comparable publicly traded companies over a period equal to the expected term of the stock option grants. Prior to the fourth fiscal quarter of 2019, since the Company did not have sufficient trading history for its common stock, the expected volatility was based on the historical volatility of the common stock of comparable publicly traded companies. The Company selected companies with comparable characteristics, including enterprise value, risk profiles, position within the industry, and with historical share price information sufficient to meet the expected life of the Company's stock-based awards. Risk-Free Interest Rate: The risk-free interest rate is based on the yield of U.S. Treasury notes as of the grant date with terms commensurate with the expected term of the option. Expected Dividends: The expected dividends assumption is based on the Company’s expectation of not paying dividends in the foreseeable future. The fair value of the stock options granted to employees for the years ended December 31, 2019, 2018 and 2017 was calculated with the following assumptions. Years Ended December 31, 2019 2018 2017 Risk-free interest rate 2.1 % 2.7 % 1.7 % Expected volatility 73.6 % 64.6 % 72.7% - 78.5% Expected term (in years) 5.9 5.8 6.2 - 6.3 Expected dividends — % — % — % The fair value of the stock options granted to nonemployees for the years ended December 31, 2019, 2018 and 2017 was calculated with the following assumptions. Years Ended December 31, 2019 2018 2017 Risk-free interest rate 2.5 % 2.7 % 1.7% - 2.2% Expected volatility 76.4 % 68.4 % 70.8% - 73.1% Expected term (in years) 6.4 10.0 6.5 - 8.9 Expected dividends — % — % — % The following table summarizes the weighted-average fair value per share of stock options granted and the total intrinsic value of stock options exercised for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Stock options granted - weighted-average grant date fair value per share $ 19.28 $ 10.39 $ 1.67 Stock options exercised - intrinsic value 34,416 1,935 30 Stock-Based Compensation The following table presents stock-based compensation expense as reported in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (in thousands) 2019 2018 2017 Research and development $ 13,547 $ 2,643 $ 379 General and administrative 11,621 2,509 497 Total $ 25,168 $ 5,152 $ 876 The following table presents stock-based compensation expense by award type as reported in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (in thousands) 2019 2018 2017 Stock options $ 24,271 $ 4,806 $ 876 RSUs 447 202 — ESPP 450 144 — Total $ 25,168 $ 5,152 $ 876 As of December 31, 2019, there was approximately $54.6 million of unrecognized stock-based compensation associated with stock options which the Company expects to recognize over a weighted-average period of 2.6 years. As of December 31, 2019, there was approximately $0.2 million of unrecognized stock-based compensation associated with RSUs which the Company expects to recognize over a weighted-average period of 0.4 years. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (In thousands, except share and per share amounts) 2019 2018 2017 Numerator: Net loss $ (176,813) $ (102,808) $ (41,290) Denominator: Weighted average common shares outstanding 47,530,174 22,158,354 2,267,732 Less: weighted average shares subject to repurchase (8,937) (12,162) (130,042) Weighted average number of shares used in basic and diluted net loss per share 47,521,237 22,146,192 2,137,690 Net loss per share, basic and diluted $ (3.72) $ (4.64) $ (19.32) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following weighted-average outstanding common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive. December 31, 2019 2018 2017 Series A convertible preferred stock — — 2,839,886 Series B convertible preferred stock — — 8,172,579 Series C convertible preferred stock — — 8,996,586 Series D convertible preferred stock — — 6,154,166 Warrants to purchase convertible preferred or common stock 131,998 106,916 24,104 Common stock subject to repurchase 5,040 20,193 366 Options and RSUs issued and outstanding 6,809,257 4,599,307 3,588,663 Total 6,946,295 4,726,416 29,776,350 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded a tax benefit of $0.1 million during the year ended December 31, 2019 and did not record a provision or benefit for income taxes during the years ended December 31, 2018 and 2017. The significant components of the Company’s net deferred tax assets as of December 31, 2019 and 2018 are shown below. December 31, (in thousands) 2019 2018 Deferred tax assets Net operating loss carryforwards $ 82,252 $ 45,215 Research and development credits 8,968 4,090 Capitalized assets 79 23 Accruals and reserves 651 390 Operating lease liabilities 2,070 806 Stock-based compensation 4,250 — Gross deferred tax assets 98,270 50,524 Deferred tax liabilities Operating lease right-of-use assets (1,969) — Gross deferred tax liabilities (1,969) — Total net deferred tax assets 96,301 50,524 Less: valuation allowance (96,301) (50,524) Net deferred tax assets $ — $ — A valuation allowance is established when it is more likely than not that a deferred tax asset will not be realized. As of December 31, 2019 and 2018, the Company's valuation allowance was $96.3 million and $50.5 million, respectively. The valuation allowance increased by $45.8 million for the year ended December 31, 2019. The increase in the 2019 valuation allowance was primarily due to the addition of the 2019 net operating loss carryforwards. The following is a reconciliation between the U.S. federal income statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 34.0 % State income taxes, net of federal benefit — — 5.8 Stock-based compensation 2.2 (0.2) (0.7) Permanent adjustments (0.1) (0.1) 4.2 Change to valuation allowance (25.9) (21.9) (19.6) Tax Cuts and Jobs Act Impact — — (25.4) Research and development credits 2.8 1.3 1.6 Net unrealized gain on available-for-sale investments 0.1 — — Other — (0.1) — Effective tax rate 0.1 % — % — % On December 22, 2017, the Tax Cut and Jobs Act, or Tax Act, was signed into law. Among other changes under the Tax Act was a permanent reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax rate, the Company revalued its net deferred tax assets at December 31, 2018, as the changes in tax law are accounted for in the period of enactment, resulting in a reduction in the value of our net deferred tax assets of approximately $10.5 million, offset by a $10.5 million change in valuation allowance as of that date. As of December 31, 2019, the Company had approximately $361.9 million of federal net operating losses available for future use. Federal net operating losses incurred prior to January 1, 2018 of approximately $89.1 million expire beginning in 2033 while federal net operating losses incurred after December 31, 2017 of approximately $272.8 million will have an indefinite carryforward period, subject to annual limitations. Federal research credits of approximately $8.0 million that are available for future use expire beginning in 2033. At December 31, 2019, the Company also had approximately $89.6 million of state net operating losses available for future use that expire beginning in 2033 and state research credits of approximately $4.2 million that have no expiration date. Utilization of the net operating loss carryforwards and the research and development credits carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Sections 382 and 383 of the Internal Revenue Code of 1986, or the Code, as amended, as well as similar state and foreign provisions. The Company has not completed a study to assess whether an ownership change has occurred or whether there have been multiple ownership changes since the Company’s formation due to the complexity and cost associated with such a study and the fact that there may be additional such ownership changes in the future. If the Company has experienced an ownership change at any time since its formation, utilization of the net operating loss or research credit carryforwards would be subject to an annual limitation under Section 382 of the Code. Such limitation is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term and tax-exempt rate, and then could be subject to additional adjustments, as required. Any limitation may result in expiration of a portion of the net operating loss or research credit carryforwards before utilization. Further, until a study is completed, and any limitation known, no amounts are being considered as an uncertain tax position or disclosed as an unrecognized tax benefit. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. Any carryforwards that will expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. ASC Topic 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of any uncertain tax positions that have been taken or expected to be taken on a tax return. As of December 31, 2019 and 2018, the Company had unrecognized tax benefits of $2.5 million and $1.3 million, respectively. The amount of unrecognized tax benefits is not expected to significantly change over the next twelve months. No amounts, outside of valuation allowance, would impact the effective tax rate on continuing operations. The beginning and ending gross unrecognized tax benefits amounts are as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Gross unrecognized tax benefits at beginning of year $ 1,297 $ 819 $ 574 Additions for tax positions related to prior year — — 2 Decrease related to prior year tax provisions — — (92) Additions for tax positions related to current year 1,246 478 335 Gross unrecognized tax benefits at end of year $ 2,543 $ 1,297 $ 819 It is the Company’s policy to include penalties and interest expense related to income taxes as a component of income tax expense as necessary. Management determined that no accrual for interest and penalties was required as of December 31, 2019. The Company’s tax jurisdictions are the United States and California. The Company’s tax years from 2013 to 2019 will remain open for examination by the federal and state authorities for three and four years respectively, from the date of utilization of any net operating loss or tax credits. The Company is not currently subject to income tax examinations by any authority. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In August 2019, in accordance with the Federal Food, Drug, and Cosmetic Act, or the Act, the Company paid a fee of $2.6 million to the FDA under the Prescription Drug User Fee Act in conjunction with the filing of its NDA for veverimer. The Company filed a request with the FDA to grant a waiver and refund of the application fee under the small business waiver provision of the Act. Due to the uncertainty regarding the collectability of this refund, the Company recorded this filing fee as a research and development expense in the quarter ended September 30, 2019. In January 2020, the FDA granted the Company’s request for a waiver and refunded the application fee in February 2020. The refund will be recorded as a gain in research and development expense for the three months ending March 31, 2020. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents certain unaudited quarterly financial information for the years ended December 31, 2019 and 2018. This information has been prepared on the same basis as the audited financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the unaudited quarterly results of operations set forth herein. Net loss per share for all periods presented has been retroactively adjusted to reflect the 1-for-3.98 reverse stock split effected on June 15, 2018. 2019 (in thousands, except per share data) Q1 Q2 Q3 Q4 Operating expenses $ 37,775 $ 37,837 $ 45,096 $ 58,116 Net loss (37,897) (36,626) (44,119) (58,171) Net loss per share, basic and diluted $ (0.90) $ (0.75) $ (0.89) $ (1.17) 2018 (in thousands, except per share data) Q1 Q2 Q3 Q4 Operating expenses $ 20,098 $ 25,279 $ 29,408 $ 28,810 Net loss (20,504) (25,362) (29,098) (27,844) Net loss per share, basic and diluted $ (9.00) $ (10.89) $ (0.71) $ (0.66) |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents —All highly liquid investments with maturities at the date of purchase of three months or less are classified as cash equivalents. There are no restrictions on cash and cash equivalents. |
Investments | Investments —The Company's investments are in U.S. government securities, commercial paper, corporate debt securities and asset-backed securities. All investments with maturities of greater than three months at the date of purchase and maturities of less than one year at the reporting date are classified as short-term investments, while investments with maturities of a year or more at the reporting date are classified as long-term investments. The Company has classified its investments as available-for-sale in the accompanying financial statements. Available-for-sale investments are carried at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss). Realized gains and losses on the sale of all such securities are reported in other income (expense), net and are computed using the specific identification method. All of the Company's investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of investments below the cost basis is judged to be other-than-temporary and would mark the security to market through a change to the statement of operations and comprehensive loss. In determining whether a decline in market value is other-than-temporary, various factors are considered, including the cause, duration of time and severity of the impairment, any adverse changes in the investees’ financial condition, and the Company’s intent and ability to hold the security for a period of time sufficient to allow for an anticipated recovery in market value. There were no investments deemed to be impaired as of December 31, 2019. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties —Financial instruments that potentially subject the Company to a concentration of credit risk, consist primarily of cash, cash equivalents, short-term and long-term investments. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that these financial institutions are financially sound, and, accordingly, minimal credit risk exists with respect to those financial institutions. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents, short-term and long-term investments and by the issuers of the securities to the extent recorded in the balance sheet. The Company is dependent on third-party manufacturers to supply products for research and development activities in its programs and prepare for the commercial launch of veverimer. In particular, the Company relies and expects to continue to rely on a small number of manufacturers to supply it with its requirements for the active pharmaceutical ingredient and drug product related to these programs. These programs could be adversely affected by a significant interruption in the supply of active pharmaceutical ingredients and formulated drugs. |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, which is three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or their estimated useful economic lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets—Long-lived assets consist of property and equipment. The Company assesses potential impairment losses on long-lived assets used in operations when events and circumstances indicate that assets might be impaired. If such events or changes in circumstances arise, the Company compares the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the estimated aggregate undiscounted cash flows are less than the carrying amount of the long-lived assets, an impairment charge, calculated as the amount by which the carrying amount of the assets exceeds the fair value of the assets, is recorded. The fair value of the long-lived assets is determined based on the estimated discounted cash flows expected to be generated from the long-lived assets. |
Deferred Offering Costs | Deferred Offering Costs—The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in the statements of convertible preferred stock and stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the equity financing. |
Clinical and Manufacturing Accruals | Clinical and Manufacturing Accruals —The Company records accruals for the estimated costs of research, nonclinical and clinical studies and manufacturing development, which are a significant component of research and development expenses. A substantial portion of the Company’s ongoing research and development activities is conducted by third-party service providers, including clinical research organizations, or CROs, and contract manufacturing organizations, or CMOs. The Company’s contracts with CROs generally include pass-through fees such as regulatory expenses, investigator fees, travel costs and other miscellaneous costs, including shipping and printing fees. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to the Company under such contracts. The Company accrues the costs incurred under agreements with these third parties based on estimates of actual work completed in accordance with the respective agreements. The Company determines the estimated costs through the review of contracts and subsequent discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fees to be paid for such services. The Company makes significant judgments and estimates in determining the accrual balance in each reporting period. As actual costs become known, the Company adjusts its accruals. Although the Company does not expect its estimates to be materially different from amounts actually incurred, the Company’s understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in the Company reporting amounts that are too high or too low in any particular period. The Company’s accrual is dependent, in part, upon the receipt of timely and accurate reporting from information provided as part of its clinical and nonclinical studies and other third-party vendors. For the three years ended December 31, 2019, 2018, and 2017, there have been no material differences from the Company’s accrued estimated expenses to the actual clinical trial and manufacturing expenses. However, variations in the assumptions used to estimate accruals, including, but not limited to the number of patients enrolled, the rate of patient enrollment, the actual services performed, and the amount of manufactured drug substance and/or drug product, and related costs may vary from the Company’s estimates, resulting in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect its financial position and results of operations. |
Lease | Leases —The Company determines if an arrangement contains a lease at inception. For arrangements where the Company is the lessee, operating leases are included in operating lease right-of-use, or ROU, assets; current operating lease liabilities; and non-current operating lease liabilities on its balance sheets. The Company currently does not have any finance leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU assets also include any initial direct costs incurred and any lease payments made on or before the lease commencement date, less lease incentives received. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities as the Company’s leases generally do not provide an implicit rate. The incremental borrowing rate is reevaluated upon a lease modification. The operating lease ROU asset also includes any initial direct costs and prepaid lease payments made less any lease incentives. The Company considered information available at the adoption date of Topic 842 to determine the incremental borrowing rate for leases in existence as of this date. Lease terms may include options to extend or terminate the lease when the Company is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company elected to apply each of the practical expedients described in Accounting Standards Codification (ASC) Topic 842-10-65-1(f) which allow companies not to reassess: (i) whether any expired or existing agreements contain leases, (ii) the classification of any expired or existing leases, and (iii) the capitalization of initial direct costs for any existing leases. The Company also elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term operating leases. A short-term is a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. |
Term Loan | Term Loan —The Company accounts for the Loan and Security Agreement, or Term Loan, with Hercules Capital, Inc., or Hercules, as a liability measured at net proceeds less debt discount and is accreted to the face value of the Term Loan over its expected term using the effective interest method. The Company considers whether there are any embedded features in its debt instruments that require bifurcation and separate accounting as derivative financial instruments pursuant to Accounting Standards Codification, or ASC, Topic 815, Derivatives and Hedging . |
Convertible Preferred Stock | Convertible Preferred Stock—The Company recorded all shares of convertible preferred stock at their respective fair values, net of issuance costs, on the dates of issuance. |
Warrants | Warrants —The Company issued freestanding warrants to purchase shares of common stock in connection with its Term Loan. The warrants are recorded at fair value using the Black-Scholes option pricing model. See Note 6 "Borrowings" to these financial statements for additional details. |
Preferred Stock Tranche Obligation | Preferred Stock Tranche Obligation —The Company entered into convertible preferred stock financings where, in addition to the initial closing, investors agreed to buy, and the Company agreed to sell, additional shares of that convertible preferred stock at a set price in the event that certain agreed milestones are achieved (a tranched financing). The Company evaluated this tranche obligation and determined that it met the definition of a freestanding instrument, and accordingly, determined the fair value of this obligation and recorded it on the balance sheet with the residual of the proceeds raised being allocated to convertible preferred stock. The preferred stock tranche obligation was revalued each reporting period with changes in the fair value of the obligation recorded as a component of other income (expense), net in the statements of operations and comprehensive loss. The preferred stock tranche obligation was revalued at settlement and the resultant fair value was then reclassified to convertible preferred stock at that time. |
Research and Development Expense | Research and Development Expense —Research and development expense is charged to the statements of operations and comprehensive loss in the period in which they are incurred. Research and development expense consists primarily of salaries and related costs, including stock-based compensation expense, for personnel and consultants in our research and development functions; fees paid to clinical consultants, clinical trial sites and vendors, including CROs, costs related to pre-commercialization manufacturing activities including payments to CMOs and other vendors and consultants, costs related to regulatory activities, expenses related to lab supplies and services and depreciation and other allocated facility-related and overhead expenses. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are |
Stock-Based Compensation | Stock-Based Compensation —Stock-based compensation expense represents the grant-date fair value of awards recognized on a straight-line basis or by using an accelerated attribution method for awards with performance conditions over the employee's requisite service period (generally the vesting period). The Black-Scholes option-pricing model is used to calculate stock-based compensation expense for stock option awards and shares purchased under the Employee Stock Purchase Plan, or ESPP. For restricted stock units, or RSUs, the grant-date fair value is the closing price of the Company's common stock on the date of grant as reported on The Nasdaq Global Select Market. Because stock compensation expense is an estimate of awards ultimately expected to vest, it is reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. The Company records the expense attributed to nonemployee services paid with stock option awards based on the estimated fair value of the awards determined using the Black-Scholes option pricing model. The measurement of stock-based compensation for nonemployees was previously subject to remeasurement as the options vested. As of July 1, 2018, the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting , which no longer subjects nonemployee awards to remeasurement. The expense is recognized over the period during which services are received. |
Income Taxes | Income Taxes —The Company accounts for income taxes using the liability method, whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance when it is more likely than not that some portion or all of its deferred tax assets will not be realized. |
Comprehensive Loss | Comprehensive Loss —Comprehensive loss is comprised of net loss and other comprehensive income (loss). Other comprehensive loss includes changes in stockholders’ equity (deficit) that are excluded from net loss, primarily unrealized gains or losses on the Company’s available-for-sale investments. These changes in stockholders' equity are reflected net of tax. |
Net Loss per Share | Net Loss per Share —Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per share, since the effects of potentially dilutive securities are antidilutive given the net loss for each period presented. |
Segment Reporting | Segment Reporting —The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. All of the Company's assets are maintained in the United States. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Topic 842, which amended prior accounting standards for leases. The Company adopted Topic 842 on January 1, 2019, using the alternative modified transition method, which applies the standard as of the effective date and therefore, the Company has not applied the standard to the comparative periods presented on the Company's financial statements. The Company elected the following practical expedients when assessing the transition impact available to lessees: (i) not to reassess whether any expired or existing contracts as of January 1, 2019, are or contain leases; (ii) not to reassess the lease classification for any expired or existing leases as of January 1, 2019; and (iii) not to reassess initial direct costs for any existing leases as of January 1, 2019. As a lessee, the primary impact of the adoption of Topic 842 was the recognition of operating lease ROU assets of $2.3 million and operating lease liabilities of $2.5 million on its balance sheet as of January 1, 2019. See Note 4 "Leases" for additional details. Standards Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. ASU 2016-13 implements an impairment model, known as the current expected credit loss model, based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize, as an allowance, its estimate of expected credit losses. The ASU is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of ASU 2016-13 will have a significant impact on its financial statements. In September 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends ASC Topic 820, Fair Value Measurement and Disclosures, or ASU 2018-13. The FASB issued final guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. Under the ASU, entities will no longer be required to disclose the amount of transfers between Level 1 and Level 2 of the fair value hierarchy. Public companies will be required to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for public business entities for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance on January 1, 2020. The Company does not expect the adoption of ASU 2018-13 will have a significant impact on its financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12, which simplifies the accounting for income taxes. ASU 2019-12 is effective for public business entities for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2020 on a prospective basis, and early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 will have a significant impact on its financial statements. |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured on a Recurring Basis | The following tables set forth the value of the Company's financial assets remeasured on a recurring basis based on the three-tier fair value hierarchy by significant investment category as of December 31, 2019 and 2018. December 31, 2019 Reported as: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term investments Cash $ 1,393 $ — $ — $ 1,393 $ 1,393 $ — $ — Level 1: Money market fund 17,181 — — 17,181 17,181 — — Level 2: U.S. government agency securities 40,741 6 (14) 40,733 — 19,990 20,743 Commercial paper 108,248 107 (2) 108,353 — 108,353 — Corporate debt securities 185,569 205 (20) 185,754 — 159,517 26,237 Asset-backed securities 1,561 3 — 1,564 — 1,564 — Subtotal 336,119 321 (36) 336,404 — 289,424 46,980 Total assets measured at fair value $ 354,693 $ 321 $ (36) $ 354,978 $ 18,574 $ 289,424 $ 46,980 December 31, 2018 Reported as: (in thousands) Amortized cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term investments Cash $ 3,021 $ — $ — $ 3,021 $ 3,021 $ — $ — Level 1: Money market fund 33,154 — — 33,154 33,154 — — Level 2: Commercial paper 68,467 — (63) 68,404 997 67,407 — Corporate debt securities 89,038 4 (63) 88,979 — 86,692 2,287 Asset-backed securities 49,838 3 (34) 49,807 — 49,807 — Subtotal 207,343 7 (160) 207,190 997 203,906 2,287 Total assets measured at fair value $ 243,518 $ 7 $ (160) $ 243,365 $ 37,172 $ 203,906 $ 2,287 |
Amortized Cost, Unrealized Holding Gains or Losses, and Fair Value of Marketable Securities | The following table summarizes the Company's available-for-sale investments that were in a continuous unrealized loss position but were not deemed to be other-than-temporarily impaired, as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 (in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government agency securities $ 24,235 $ (14) $ — $ — Commercial paper 5,426 (2) 67,407 (63) Corporate debt securities 38,668 (20) 85,699 (63) Asset-backed securities — — 36,730 (34) Total $ 68,329 $ (36) $ 189,836 $ (160) |
Contractual Maturities of Cash Equivalents (Excluding Money Market Funds) | The following table summarizes the maturities of the Company’s cash equivalents (excluding money market funds) and available-for-sale investments, as of December 31, 2019. (in thousands) Amortized Cost Fair Value Mature in less than one year $ 289,156 $ 289,424 Mature in one to five years 46,963 46,980 Total $ 336,119 $ 336,404 |
Reconciliation of Liabilities Using Level 3 Unobservable Inputs | The following table presents a reconciliation of financial liabilities measured at fair value on a recurring basis using Level 3 unobservable inputs for the years ended December 31, 2019 and 2018. 2019 2018 (in thousands) Compound Derivative Liability Compound Derivative Liability Warrant Fair value at beginning of year $ 161 $ — $ 106 Additions — 654 156 Change in fair value 816 (493) 305 Reclassification to equity — — (194) Issuance of convertible preferred stock on exercise of warrant — — (373) Fair value at end of year $ 977 $ 161 $ — |
Significant Unobservable Inputs Related to Level 3 Assets and Liabilities | The following table presents information about significant unobservable inputs related to the Company's Level 3 financial liabilities as of December 31, 2019. December 31, 2019 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Input Compound derivative liability $977 Discounted cash flow Discount rate 10.7 % Probability of the occurrence of certain events 20.0 % |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating lease maturity analysis | The following table presents the maturity analysis of the Company's operating lease liabilities showing the aggregate lease payments as of December 31, 2019. (in thousands) December 31, 2019 2020 $ 1,108 2021 1,377 2022 1,662 2023 and thereafter 8,434 Total lease payments (1) 12,581 Less: imputed interest (2,726) Total operating lease liabilities $ 9,855 |
ASC Topic 840 Disclosures | The following table presents the future minimum lease commitments under the Company’s operating leases as of December 31, 2018 as previously disclosed under prior lease accounting standards. (in thousands) December 31, 2018 2019 $ 1,076 2020 1,108 2021 562 2022 and thereafter — Total future minimum lease payments $ 2,746 |
OTHER BALANCE SHEET COMPONENTS
OTHER BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment, Net | Property and Equipment, Net The following table presents the components of property and equipment, net as of December 31, 2019 and 2018. (in thousands) December 31, 2019 December 31, 2018 Furniture and fixtures $ 265 $ 193 Computer and lab equipment 3,867 1,888 Leasehold improvements 1,244 1,055 5,376 3,136 Less: accumulated depreciation and amortization (2,648) (1,921) Total property and equipment, net $ 2,728 $ 1,215 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The following table presents the components of accrued expenses and other current liabilities as of December 31, 2019 and 2018. (in thousands) December 31, 2019 December 31, 2018 Accrued clinical and nonclinical study costs $ 8,343 $ 2,168 Accrued contract manufacturing 17,343 1,676 Accrued compensation 3,367 1,565 Accrued professional fees and other 3,727 935 Total accrued expenses and other current liabilities $ 32,780 $ 6,344 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Payments of Principal and Interest | The following table presents future payments of principal and interest on the Term Loan as of December 31, 2019. (in thousands) December 31, 2019 2020 $ 5,038 2021 21,259 2022 26,675 2023 19,893 72,865 Less: amount representing interest (12,865) Present value of Term Loan 60,000 Less: current portion — Long-term portion of Term Loan $ 60,000 |
COMMITMENT AND CONTINGENCIES (T
COMMITMENT AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity | The following table aggregates the Company’s material expected contractual obligations and commitments as of December 31, 2019. December 31, 2019 (in thousands) Total Less than One Year One to Three Years Three to Five Years More than Five Years Term Loan (1) $ 72,865 $ 5,038 $ 47,934 $ 19,893 $ — Lease obligations (2) 20,774 1,309 5,018 5,953 8,494 Tenant improvement loan 140 93 47 — — Manufacturing and service contracts (3) 600,269 64,354 83,107 113,202 339,606 Total contractual obligations and commitments $ 694,048 $ 70,794 $ 136,106 $ 139,048 $ 348,100 (1) The long-term debt obligation is comprised of the Third Amended to the Loan and Security Agreement that was executed during March 2019. (2) These amounts are comprised of the rent payments on our existing lease and on the Second Expansion Premises which will commence on September 2020 under our amended lease that was executed on August 14, 2019. (3) The purchase obligations are comprised of our non-cancelable purchase commitments under our Manufacturing and Commercial Supply Agreement with Patheon. These amounts are based on forecasts that may include estimates of our future market demand, quantity discounts and manufacturing efficiencies. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance as of December 31, 2019 and 2018, consisted of the following. December 31, 2019 December 31, 2018 Stock options and RSUs issued and outstanding 6,809,257 4,599,307 Stock options, RSUs and ESPP shares authorized for future issuance 3,257,316 4,534,784 Total 10,066,573 9,134,091 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity under the plans for the year ended December 31, 2019. Shares Weighted- Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value (thousands) Balance at December 31, 2018 4,577,515 $ 5.99 8.0 $ 84,290 Granted 3,720,091 29.71 Exercised (1,108,700) 1.77 Forfeited or canceled (390,923) 28.29 Balance at December 31, 2019 6,797,983 $ 18.38 8.4 $ 133,892 Vested and expected to vest at December 31, 2019 6,471,442 $ 17.96 8.3 $ 129,998 |
Schedule of Restricted Stock Activity | The following table summarizes RSU activity under the 2018 Plan for the year ended December 31, 2019. Shares Weighted- Unvested balance at December 31, 2018 21,792 $ 19.00 Granted 11,274 36.74 Vested (21,792) 19.00 Forfeited — Unvested balance at December 31, 2019 11,274 $ 36.74 |
Schedule of Stock Options, Valuation Assumptions | The fair value of the stock options granted to employees for the years ended December 31, 2019, 2018 and 2017 was calculated with the following assumptions. Years Ended December 31, 2019 2018 2017 Risk-free interest rate 2.1 % 2.7 % 1.7 % Expected volatility 73.6 % 64.6 % 72.7% - 78.5% Expected term (in years) 5.9 5.8 6.2 - 6.3 Expected dividends — % — % — % The fair value of the stock options granted to nonemployees for the years ended December 31, 2019, 2018 and 2017 was calculated with the following assumptions. Years Ended December 31, 2019 2018 2017 Risk-free interest rate 2.5 % 2.7 % 1.7% - 2.2% Expected volatility 76.4 % 68.4 % 70.8% - 73.1% Expected term (in years) 6.4 10.0 6.5 - 8.9 Expected dividends — % — % — % |
Schedule of Weighted Average Fair Value and Intrinsic Value | The following table summarizes the weighted-average fair value per share of stock options granted and the total intrinsic value of stock options exercised for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Stock options granted - weighted-average grant date fair value per share $ 19.28 $ 10.39 $ 1.67 Stock options exercised - intrinsic value 34,416 1,935 30 |
Schedule of Stock-based Compensation Expense | The following table presents stock-based compensation expense as reported in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (in thousands) 2019 2018 2017 Research and development $ 13,547 $ 2,643 $ 379 General and administrative 11,621 2,509 497 Total $ 25,168 $ 5,152 $ 876 The following table presents stock-based compensation expense by award type as reported in the Company’s statements of operations and comprehensive loss for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (in thousands) 2019 2018 2017 Stock options $ 24,271 $ 4,806 $ 876 RSUs 447 202 — ESPP 450 144 — Total $ 25,168 $ 5,152 $ 876 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, (In thousands, except share and per share amounts) 2019 2018 2017 Numerator: Net loss $ (176,813) $ (102,808) $ (41,290) Denominator: Weighted average common shares outstanding 47,530,174 22,158,354 2,267,732 Less: weighted average shares subject to repurchase (8,937) (12,162) (130,042) Weighted average number of shares used in basic and diluted net loss per share 47,521,237 22,146,192 2,137,690 Net loss per share, basic and diluted $ (3.72) $ (4.64) $ (19.32) |
Antidilutive Securities Excluded From Computation | The following weighted-average outstanding common stock equivalents were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive. December 31, 2019 2018 2017 Series A convertible preferred stock — — 2,839,886 Series B convertible preferred stock — — 8,172,579 Series C convertible preferred stock — — 8,996,586 Series D convertible preferred stock — — 6,154,166 Warrants to purchase convertible preferred or common stock 131,998 106,916 24,104 Common stock subject to repurchase 5,040 20,193 366 Options and RSUs issued and outstanding 6,809,257 4,599,307 3,588,663 Total 6,946,295 4,726,416 29,776,350 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | The significant components of the Company’s net deferred tax assets as of December 31, 2019 and 2018 are shown below. December 31, (in thousands) 2019 2018 Deferred tax assets Net operating loss carryforwards $ 82,252 $ 45,215 Research and development credits 8,968 4,090 Capitalized assets 79 23 Accruals and reserves 651 390 Operating lease liabilities 2,070 806 Stock-based compensation 4,250 — Gross deferred tax assets 98,270 50,524 Deferred tax liabilities Operating lease right-of-use assets (1,969) — Gross deferred tax liabilities (1,969) — Total net deferred tax assets 96,301 50,524 Less: valuation allowance (96,301) (50,524) Net deferred tax assets $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation between the U.S. federal income statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2019, 2018 and 2017. Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 34.0 % State income taxes, net of federal benefit — — 5.8 Stock-based compensation 2.2 (0.2) (0.7) Permanent adjustments (0.1) (0.1) 4.2 Change to valuation allowance (25.9) (21.9) (19.6) Tax Cuts and Jobs Act Impact — — (25.4) Research and development credits 2.8 1.3 1.6 Net unrealized gain on available-for-sale investments 0.1 — — Other — (0.1) — Effective tax rate 0.1 % — % — % |
Schedule of Unrecognized Tax Benefits | The beginning and ending gross unrecognized tax benefits amounts are as follows. Years Ended December 31, (in thousands) 2019 2018 2017 Gross unrecognized tax benefits at beginning of year $ 1,297 $ 819 $ 574 Additions for tax positions related to prior year — — 2 Decrease related to prior year tax provisions — — (92) Additions for tax positions related to current year 1,246 478 335 Gross unrecognized tax benefits at end of year $ 2,543 $ 1,297 $ 819 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATE (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | Net loss per share for all periods presented has been retroactively adjusted to reflect the 1-for-3.98 reverse stock split effected on June 15, 2018. 2019 (in thousands, except per share data) Q1 Q2 Q3 Q4 Operating expenses $ 37,775 $ 37,837 $ 45,096 $ 58,116 Net loss (37,897) (36,626) (44,119) (58,171) Net loss per share, basic and diluted $ (0.90) $ (0.75) $ (0.89) $ (1.17) 2018 (in thousands, except per share data) Q1 Q2 Q3 Q4 Operating expenses $ 20,098 $ 25,279 $ 29,408 $ 28,810 Net loss (20,504) (25,362) (29,098) (27,844) Net loss per share, basic and diluted $ (9.00) $ (10.89) $ (0.71) $ (0.66) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Aug. 14, 2019 | Jan. 01, 2019 | Jul. 02, 2018 | |
Class of Stock [Line Items] | ||||
Property and equipment, useful life | 3 years | |||
Operating lease ROU assets | $ 9,376 | $ 8,100 | $ 2,300 | |
Operating lease liabilities | $ 9,855 | $ 8,100 | $ 2,500 | |
Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock, shares outstanding (in shares) | 104,225,638 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of common stock issued upon conversion (in shares) | 26,187,321 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Position | Dec. 31, 2018USD ($)Position | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest Income | $ 8.7 | $ 3.5 | $ 0.4 |
Securities positions in an unrealized loss position | Position | 18 | 48 | |
Discount rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability, measurement input | 0.107 | ||
Probability of the occurrence of certain events | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability, measurement input | 0.200 | ||
Level 3 | Term Loan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of term loan | $ 59.2 | $ 37.8 | |
Level 3 | Discount rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability, measurement input | 0.107 | ||
Level 3 | Probability of the occurrence of certain events | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability, measurement input | 0.200 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial assets and liabilities by hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 18,574 | $ 37,172 |
Level 2: | ||
Amortized Cost | 336,119 | |
Debt Securities, Available-for-sale | 336,404 | |
Total assets measured at fair value | ||
Short-term investments | 289,424 | 203,906 |
Long-term investments | 46,980 | 2,287 |
Fair Value, Inputs, Level 2 | ||
Level 2: | ||
Gross Unrealized Losses | (36) | (160) |
Fair Value, Inputs, Level 2 | U.S. government agency securities | ||
Level 2: | ||
Gross Unrealized Losses | (14) | 0 |
Fair Value, Inputs, Level 2 | Commercial paper | ||
Level 2: | ||
Gross Unrealized Losses | (2) | (63) |
Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Level 2: | ||
Gross Unrealized Losses | (20) | (63) |
Fair Value, Inputs, Level 2 | Asset-backed securities | ||
Level 2: | ||
Gross Unrealized Losses | 0 | (34) |
Fair Value, Measurements, Recurring | ||
Total assets measured at fair value | ||
Amortized Cost | 354,693 | 243,518 |
Gross Unrealized Gains | 321 | 7 |
Gross Unrealized Losses | (36) | (160) |
Fair Value | 354,978 | 243,365 |
Fair Value, Measurements, Recurring | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 18,574 | 37,172 |
Fair Value, Measurements, Recurring | Short-term Investments | ||
Total assets measured at fair value | ||
Short-term investments | 289,424 | 203,906 |
Fair Value, Measurements, Recurring | Long-term investments | ||
Total assets measured at fair value | ||
Long-term investments | 46,980 | 2,287 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 33,154 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Level 2: | ||
Amortized Cost | 336,119 | 207,343 |
Gross Unrealized Gains | 321 | 7 |
Gross Unrealized Losses | (36) | (160) |
Debt Securities, Available-for-sale | 336,404 | 207,190 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Cash and Cash Equivalents | ||
Level 2: | ||
Debt Securities, Available-for-sale | 0 | 997 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Short-term Investments | ||
Total assets measured at fair value | ||
Short-term investments | 289,424 | 203,906 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Long-term investments | ||
Total assets measured at fair value | ||
Long-term investments | 46,980 | 2,287 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government agency securities | ||
Level 2: | ||
Amortized Cost | 40,741 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | (14) | |
Debt Securities, Available-for-sale | 40,733 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government agency securities | Cash and Cash Equivalents | ||
Level 2: | ||
Debt Securities, Available-for-sale | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government agency securities | Short-term Investments | ||
Total assets measured at fair value | ||
Short-term investments | 19,990 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government agency securities | Long-term investments | ||
Total assets measured at fair value | ||
Long-term investments | 20,743 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial paper | ||
Level 2: | ||
Amortized Cost | 108,248 | 68,467 |
Gross Unrealized Gains | 107 | 0 |
Gross Unrealized Losses | (2) | (63) |
Debt Securities, Available-for-sale | 108,353 | 68,404 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial paper | Cash and Cash Equivalents | ||
Level 2: | ||
Debt Securities, Available-for-sale | 0 | 997 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial paper | Short-term Investments | ||
Total assets measured at fair value | ||
Short-term investments | 108,353 | 67,407 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial paper | Long-term investments | ||
Total assets measured at fair value | ||
Long-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | ||
Level 2: | ||
Amortized Cost | 185,569 | 89,038 |
Gross Unrealized Gains | 205 | 4 |
Gross Unrealized Losses | (20) | (63) |
Debt Securities, Available-for-sale | 185,754 | 88,979 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | Cash and Cash Equivalents | ||
Level 2: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | Short-term Investments | ||
Total assets measured at fair value | ||
Short-term investments | 159,517 | 86,692 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Corporate debt securities | Long-term investments | ||
Total assets measured at fair value | ||
Long-term investments | 26,237 | 2,287 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset-backed securities | ||
Level 2: | ||
Amortized Cost | 1,561 | 49,838 |
Gross Unrealized Gains | 3 | 3 |
Gross Unrealized Losses | 0 | (34) |
Debt Securities, Available-for-sale | 1,564 | 49,807 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset-backed securities | Cash and Cash Equivalents | ||
Level 2: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset-backed securities | Short-term Investments | ||
Total assets measured at fair value | ||
Short-term investments | 1,564 | 49,807 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Asset-backed securities | Long-term investments | ||
Total assets measured at fair value | ||
Long-term investments | 0 | 0 |
Cash | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,393 | 3,021 |
Cash and Cash Equivalents, Fair Value Disclosure | 1,393 | 3,021 |
Cash | Fair Value, Measurements, Recurring | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,393 | 3,021 |
Money market fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 17,181 | 33,154 |
Cash and Cash Equivalents, Fair Value Disclosure | 17,181 | $ 33,154 |
Money market fund | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 17,181 |
FAIR VALUE MEASUREMENTS AND F_5
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Unrealized losses on Debt Securities, Available-For-Sale (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 68,329 | $ 189,836 |
Unrealized Losses | (36) | (160) |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,235 | 0 |
Unrealized Losses | (14) | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,426 | 67,407 |
Unrealized Losses | (2) | (63) |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 38,668 | 85,699 |
Unrealized Losses | (20) | (63) |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 36,730 |
Unrealized Losses | $ 0 | $ (34) |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Maturities of Debt Securities, Available-For-Sale (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | |
Cash equivalents, mature in less than one year, amortized cost | $ 289,156 |
Cash equivalents, mature in one to five years, amortized costs | 46,963 |
Amortized Cost | 336,119 |
Debt Securities, Available-for-sale [Abstract] | |
Cash equivalents, mature in less than one year, fair value | 289,424 |
Cash equivalents, mature in one to five years, fair value | 46,980 |
Fair Value | $ 336,404 |
FAIR VALUE MEASUREMENTS AND F_7
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Reconciliation of liabilities measured using Level 3 (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compound Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of year | $ 161 | $ 0 |
Additions | 0 | 654 |
Change in fair value | 816 | (493) |
Reclassification to equity | 0 | 0 |
Issuance of convertible preferred stock on exercise of warrant | 0 | 0 |
Fair value at end of year | 977 | 161 |
Warrant | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of year | $ 0 | 106 |
Additions | 156 | |
Change in fair value | 305 | |
Reclassification to equity | (194) | |
Issuance of convertible preferred stock on exercise of warrant | (373) | |
Fair value at end of year | $ 0 |
FAIR VALUE MEASUREMENTS AND F_8
FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS - Significant unobservable inputs related to level 3 assets and liabilities (Details) | Dec. 31, 2019 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.107 |
Probability of the occurrence of certain events | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.200 |
Level 3 | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.107 |
Level 3 | Probability of the occurrence of certain events | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input | 0.200 |
LEASES - Additional Details (De
LEASES - Additional Details (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 01, 2020ft² | Aug. 15, 2019ft² | Aug. 14, 2019USD ($)ft² | Jan. 01, 2019USD ($) | Aug. 31, 2017ft² | Jul. 31, 2014 | |
Lessee, Lease, Description [Line Items] | |||||||||
Term of noncancelable operating lease | 5 years | ||||||||
Term of lease extension option | 3 years | ||||||||
Extension of leased space (in square feet) | 19,177 | ||||||||
Temporary office space leased (in square feet) | 5,569 | ||||||||
Length of lease extension (in months) | 84 months | ||||||||
Length of lease option to extend (in months) | 36 months | ||||||||
Operating lease right-of-use assets | $ | $ 9,376 | $ 8,100 | $ 2,300 | ||||||
Total operating lease liabilities | $ | 9,855 | $ 8,100 | $ 2,500 | ||||||
Operating lease expense | $ | 1,300 | $ 1,000 | $ 700 | ||||||
Cash payments for operating leases | $ | $ 1,100 | ||||||||
Weighted average discount rate | 6.00% | ||||||||
Weighted average remaining lease term | 7 years 8 months 12 days | ||||||||
Scenario, Forecast | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease rentable area (in square feet) | 46,074 | ||||||||
Subject to Operating Lease | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease rentable area (in square feet) | 26,987 | ||||||||
Subject to Operating Lease | Amended Lease | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease rentable area (in square feet) | 13,258 | ||||||||
Subject to Operating Lease | Second Amendment To Lease | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease rentable area (in square feet) | 26,897 |
LEASES - Maturity Schedule (Det
LEASES - Maturity Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Aug. 14, 2019 | Jan. 01, 2019 | |
Leases, Operating [Abstract] | |||
2020 | $ 1,108 | ||
2021 | 1,377 | ||
2022 | 1,662 | ||
2023 and thereafter | 8,434 | ||
Total lease payments | 12,581 | ||
Less: imputed interest | (2,726) | ||
Total operating lease liabilities | 9,855 | $ 8,100 | $ 2,500 |
Expected payments on second expansion premises | $ 8,200 | ||
Lease term on second expansion premises | 7 years |
LEASES - ASC Topic 840 Disclosu
LEASES - ASC Topic 840 Disclosures (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1,076 |
2020 | 1,108 |
2021 | 562 |
2022 and Thereafter | 0 |
Operating Leases, Future Minimum Payments Due, Total | $ 2,746 |
OTHER BALANCE SHEET COMPONENT_2
OTHER BALANCE SHEET COMPONENTS - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 5,376 | $ 3,136 | |
Less: accumulated depreciation and amortization | (2,648) | (1,921) | |
Total property and equipment, net | 2,728 | 1,215 | |
Depreciation and amortization expense | 757 | 618 | $ 335 |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 265 | 193 | |
Computer and lab equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,867 | 1,888 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,244 | $ 1,055 |
OTHER BALANCE SHEET COMPONENT_3
OTHER BALANCE SHEET COMPONENTS - Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued clinical and nonclinical study costs | $ 8,343 | $ 2,168 |
Accrued contract manufacturing | 17,343 | 1,676 |
Accrued compensation | 3,367 | 1,565 |
Accrued professional fees and other | 3,727 | 935 |
Total accrued expenses and other current liabilities | $ 32,780 | $ 6,344 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) | Dec. 13, 2019USD ($)$ / sharesshares | Mar. 27, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 28, 2018USD ($)$ / sharesshares | Oct. 15, 2018USD ($)tranche | Apr. 10, 2018USD ($) | Feb. 28, 2018USD ($)tranche$ / sharesshares |
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 58,374,000 | $ 38,071,000 | ||||||
Increase (decrease) in equity due to warrants | $ 900,000 | |||||||
Percentage of principal amount | 1.00% | |||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | $ 100,000,000 | $ 100,000,000 | ||||||
Debt, number of tranches | tranche | 5 | 5 | ||||||
Principal outstanding | $ 40,000,000 | |||||||
Debt payment terms, multiplier | 7.55% | |||||||
Number of shares called by warrant (in shares) | shares | 53,458 | |||||||
Exercise price of warrant (in USD per share) | $ / shares | $ 9.35 | |||||||
Warrant liability | $ 200,000 | |||||||
Increase (decrease) in equity due to warrants | $ 200,000 | |||||||
Fair value of embedded derivative liability | 1,000,000 | $ 700,000 | ||||||
Unamortized issuance costs and debt discounts | $ 3,600,000 | $ 2,700,000 | ||||||
Term Loan | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt prepayment fee, percentage | 2.00% | |||||||
Term Loan | Tranche one, funded on closing date | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | 25,000,000 | |||||||
Term Loan | Tranche two, funded on December 28, 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | $ 15,000,000 | $ 25,000,000 | ||||||
Number of shares called by warrant (in shares) | shares | 53,458 | |||||||
Exercise price of warrant (in USD per share) | $ / shares | $ 9.35 | |||||||
New Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 200,000,000 | |||||||
Additional payment of principal | $ 2,600,000 | |||||||
Prepayment fee, percentage after month 12 before month 24 | 1.50% | |||||||
Prepayment fee, percentage after 24 months before 36 months | 1.00% | |||||||
Prepayment fee, percentage after 36 months until maturity | 0.00% | |||||||
Term of interest and principal payment | 30 months | |||||||
New Term Loan | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Extension period of interest only payment | 24 months | |||||||
New Term Loan | Tranche one, funded on closing date | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | $ 20,000,000 | |||||||
New Term Loan | Tranche two, funded on December 28, 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | 15,000,000 | |||||||
New Term Loan | Tranche three, funded on or before December 31, 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | 75,000,000 | |||||||
New Term Loan | Tranche four, funded on or before December 15, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt aggregate principal amount | $ 50,000,000 | |||||||
Third Amendment To Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Exercise price of warrant (in USD per share) | $ / shares | $ 23.92 | |||||||
Value of common stock warrants recorded in stockholders' equity (deficit) at fair value | $ 300,000 | $ 300,000 | ||||||
Third Amendment to Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of shares called by warrant (in shares) | shares | 8,361 | 16,721 | ||||||
Exercise price of warrant (in USD per share) | $ / shares | $ 23.92 | $ 23.92 | ||||||
Floating variable rate 1 | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 8.35% | |||||||
Floating variable rate 2 | Term Loan | Prime rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, basis spread on variable rate | 8.35% | |||||||
Debt, basis spread on adjusted variable rate | 6.00% | |||||||
Floating variable rate 3 | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 9.85% | |||||||
Time To Liquidity | Third Amendment To Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Measurement input assumption, time to liquidity | 7 years | 7 years | ||||||
Volatility | Third Amendment To Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Warrants measurement input | 0.727 | 0.750 | ||||||
Risk-free interest rate | Third Amendment To Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Warrants measurement input | 0.018 | 0.023 | ||||||
Discount rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Measurement input assumption | 0.107 | |||||||
Probability of the occurrence of certain events | ||||||||
Debt Instrument [Line Items] | ||||||||
Measurement input assumption | 0.200 |
BORROWINGS - Debt Maturity Sche
BORROWINGS - Debt Maturity Schedule (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 5,038 |
2021 | 21,259 |
2022 | 26,675 |
2023 | 19,893 |
Long-term debt including interest payable | 72,865 |
Less: amount representing interest | (12,865) |
Present value of Term Loan | 60,000 |
Less: current portion | 0 |
Long-term portion of Term Loan | $ 60,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-term debt | |
Less than One Year | $ 5,038 |
Lease obligations | |
Total | 20,774 |
Less than One Year | 1,309 |
One to Three Years | 5,018 |
Three to Five Years | 5,953 |
More than Five Years | 8,494 |
Manufacturing and service contracts | |
Total | 600,269 |
Less than One Year | 64,354 |
One to Three Years | 83,107 |
Three to Five Years | 113,202 |
Purchase Obligation, Due after Fifth Year | 339,606 |
Total contractual obligations and commitments | |
Total | 694,048 |
Less than One Year | 70,794 |
One to Three Years | 136,106 |
Three to Five Years | 139,048 |
More than Five Years | 348,100 |
Term Loan | |
Long-term debt | |
Total | 72,865 |
Less than One Year | 5,038 |
One to Three Years | 47,934 |
Three to Five Years | 19,893 |
More than Five Years | 0 |
Tenant Improvement Loan | |
Long-term debt | |
Total | 140 |
Less than One Year | 93 |
One to Three Years | 47 |
Three to Five Years | 0 |
More than Five Years | $ 0 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) $ / shares in Units, $ in Millions | Apr. 08, 2019USD ($)$ / sharesshares | Jul. 02, 2018USD ($)$ / sharesshares | Jun. 15, 2018 | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Class of Stock [Line Items] | |||||
Number of all classes of stock authorized | 440,000,000 | ||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | ||
Common stock, par value (in USD per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized (in shares) | 40,000,000 | 40,000,000 | 40,000,000 | ||
Preferred stock, par value (in USD per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Common stock, shares issued (in shares) | 49,763,176 | 42,148,247 | |||
Common stock, shares outstanding (in shares) | 49,763,176 | 42,148,247 | |||
Preferred stock outstanding (in shares) | 0 | 0 | |||
Reserve stock split ratio | 0.2513 | ||||
Convertible Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Convertible preferred stock, shares outstanding (in shares) | 104,225,638 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued upon conversion (in shares) | 26,187,321 | ||||
IPO | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued (in shares) | 13,455,000 | ||||
Share price (in USD per share) | $ / shares | $ 19 | ||||
Proceeds from initial public offering, net of issuance costs | $ | $ 237.7 | ||||
Sale of Stock, Underwriting Discounts And Commissions | $ | $ 17.9 | ||||
Underwritten Public Offering | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued (in shares) | 6,440,000 | ||||
Share price (in USD per share) | $ / shares | $ 36 | ||||
Proceeds from initial public offering, net of issuance costs | $ | $ 217.9 | ||||
Sale Of Stock, Underwriting Discounts And Commissions | $ | $ 13.9 | ||||
Over-Allotment Option | |||||
Class of Stock [Line Items] | |||||
Number of common stock issued (in shares) | 840,000 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Stock options and RSUs issued and outstanding (in shares) | 6,809,257 | 4,599,307 |
Stock options, RSUs and ESPP shares authorized for future issuance (in shares) | 3,257,316 | 4,534,784 |
Total (in shares) | 10,066,573 | 9,134,091 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, RSUs and ESPP shares authorized for future issuance (in shares) | 3,257,316 | 4,534,784 | ||||
Award expiration period | 10 years | |||||
Expiration term of options after the termination of continuous service for reasons other than cause, death, or disability | 3 months | |||||
Expiration term of options after the termination of continuous service for disability | 12 months | |||||
Expiration term of options after the termination of continuous service for employee's death | 18 months | |||||
Shares of common stock subject to repurchase (in shares) | 5,040 | 20,193 | ||||
Aggregate purchase price of shares available for repurchase | $ 17 | $ 89 | ||||
Average price per share of shares available for repurchase (in dollars per share) | $ 3.47 | $ 4.40 | ||||
Granted (in shares) | 3,720,091 | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
2018 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, RSUs and ESPP shares authorized for future issuance (in shares) | 4,000,000 | |||||
Annual increase in number of shares authorized (in shares) | 3,200,000 | |||||
Annual percentage increase in number of shares authorized | 4.00% | |||||
Number of shares available for future issuance (in shares) | 2,098,380 | 1,685,929 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation, period for recognition | 4 months 24 days | |||||
Employee Stock | Tricida, Inc. ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, RSUs and ESPP shares authorized for future issuance (in shares) | 800,000 | |||||
Annual increase in number of shares authorized (in shares) | 800,000 | |||||
Annual percentage increase in number of shares authorized | 1.00% | |||||
Number of shares available for future issuance (in shares) | 1,158,936 | |||||
Maximum percentage of employee pay to be withheld for employee stock purchase plan | 15.00% | |||||
Maximum number of shares purchased by employee (in shares) | 2,500 | |||||
Employee purchase plan offering period | 6 months | |||||
Employee stock purchase price, percentage of market closing price | 85.00% | |||||
Increase in shares reserved for issuance under the ESPP | 421,482 | |||||
Shares issued under employee stock purchase plan (in shares) | 44,437 | |||||
ESPP cash contributions | $ 1,100 | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation | $ 54,600 | |||||
Unrecognized stock-based compensation, period for recognition | 2 years 7 months 6 days | |||||
Employee Stock Option | Share-based Payment Arrangement, Employee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Risk-free interest rate | 2.10% | 2.70% | 1.70% | |||
Expected volatility | 73.60% | 64.60% | ||||
Expected term (in years) | 5 years 10 months 24 days | 5 years 9 months 18 days | ||||
Expected dividends | 0.00% | 0.00% | 0.00% | |||
Employee Stock Option | Minimum | Share-based Payment Arrangement, Employee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected volatility | 72.70% | |||||
Expected term (in years) | 6 years 2 months 12 days | |||||
Employee Stock Option | Maximum | Share-based Payment Arrangement, Employee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected volatility | 78.50% | |||||
Expected term (in years) | 6 years 3 months 18 days | |||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation | $ 200 | |||||
PSUs | 2018 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 18 months | |||||
Granted (in shares) | 594,000 | |||||
Director | Restricted Stock Units (RSUs) | 2018 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning balance (in shares) | 4,577,515 | |
Granted (in shares) | 3,720,091 | |
Exercised (in shares) | (1,108,700) | |
Forfeited (in shares) | (390,923) | |
Ending balance (in shares) | 6,797,983 | 4,577,515 |
Vested and expected to vest at end of period, (in shares) | 6,471,442 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning balance (in USD per share) | $ 5.99 | |
Granted (in USD per share) | 29.71 | |
Exercised (in USD per share) | 1.77 | |
Forfeited (in USD per share) | 28.29 | |
Ending balance (in USD per share) | 18.38 | $ 5.99 |
Vested and expected to vest at end of period (in USD per share) | $ 17.96 | |
Weighted- Average Remaining Contractual Term (years) | 8 years 4 months 24 days | 8 years |
Weighted-average remaining contractual term, vested and expected to vest | 8 years 3 months 18 days | |
Aggregate intrinsic value | $ 133,892 | $ 84,290 |
Aggregate intrinsic value, vested and expected to vest | $ 129,998 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted- Average Grant Date Fair Value | |||
Unvested balance beginning of period | $ 19 | ||
Granted | 36.74 | ||
Vested | 19 | ||
Unvested balance end of period | $ 36.74 | $ 19 | |
Restricted Stock Units (RSUs) | |||
Shares | |||
Unvested balance beginning of period | 21,792 | ||
Granted | 11,274 | ||
Vested | (21,792) | ||
Forfeited | 0 | ||
Unvested balance end of period | 11,274 | 21,792 | |
Weighted- Average Grant Date Fair Value | |||
Fair value of RSUs vested | $ 800 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Options Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option | Share-based Payment Arrangement, Employee | |||
Stock options granted to employees | |||
Risk-free interest rate | 2.10% | 2.70% | 1.70% |
Expected volatility | 73.60% | 64.60% | |
Expected term (in years) | 5 years 10 months 24 days | 5 years 9 months 18 days | |
Expected dividends | 0.00% | 0.00% | 0.00% |
Non-Employee Stock Option | Share-based Payment Arrangement, Nonemployee | |||
Stock options granted to employees | |||
Risk-free interest rate | 2.50% | 2.70% | |
Expected volatility | 76.40% | 68.40% | |
Expected term (in years) | 6 years 4 months 24 days | 10 years | |
Expected dividends | 0.00% | 0.00% | |
Stock options granted to nonemployees | |||
Expected dividends | 0.00% | ||
Minimum | Employee Stock Option | Share-based Payment Arrangement, Employee | |||
Stock options granted to employees | |||
Expected volatility | 72.70% | ||
Expected term (in years) | 6 years 2 months 12 days | ||
Minimum | Non-Employee Stock Option | Share-based Payment Arrangement, Nonemployee | |||
Stock options granted to nonemployees | |||
Risk-free interest rate | 1.70% | ||
Expected volatility | 70.80% | ||
Expected term (in years) | 6 years 6 months | ||
Maximum | Employee Stock Option | Share-based Payment Arrangement, Employee | |||
Stock options granted to employees | |||
Expected volatility | 78.50% | ||
Expected term (in years) | 6 years 3 months 18 days | ||
Maximum | Non-Employee Stock Option | Share-based Payment Arrangement, Nonemployee | |||
Stock options granted to nonemployees | |||
Risk-free interest rate | 2.20% | ||
Expected volatility | 73.10% | ||
Expected term (in years) | 8 years 10 months 24 days |
STOCK-BASED COMPENSATION - Weig
STOCK-BASED COMPENSATION - Weighted average fair value per share and intrinsic value (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Stock options granted - weighted-average grant date fair value per share | $ 19.28 | $ 10.39 | $ 1.67 |
Stock options exercised - intrinsic value | $ 34,416 | $ 1,935 | $ 30 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 25,168 | $ 5,152 | $ 876 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 24,271 | 4,806 | 876 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 447 | 202 | 0 |
Employee Stock Purchase Plan (ESPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 450 | 144 | 0 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 13,547 | 2,643 | 379 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 11,621 | $ 2,509 | $ 497 |
NET LOSS PER SHARE - Basic and
NET LOSS PER SHARE - Basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net loss | $ (58,171) | $ (44,119) | $ (36,626) | $ (37,897) | $ (27,844) | $ (29,098) | $ (25,362) | $ (20,504) | $ (176,813) | $ (102,808) | $ (41,290) |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Weighted average common shares outstanding (in shares) | 47,530,174 | 22,158,354 | 2,267,732 | ||||||||
Less: weighted average shares subject to repurchase (in shares) | (8,937) | (12,162) | (130,042) | ||||||||
Weighted-average number of shares used in basic and diluted net loss per share (in shares) | 47,521,237 | 22,146,192 | 2,137,690 | ||||||||
Net loss per share, basic and diluted (in USD per share) | $ (1.17) | $ (0.89) | $ (0.75) | $ (0.90) | $ (0.66) | $ (0.71) | $ (10.89) | $ (9) | $ (3.72) | $ (4.64) | $ (19.32) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 6,946,295 | 4,726,416 | 29,776,350 |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 131,998 | 106,916 | 24,104 |
Common Stock Subject to Mandatory Redemption | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 5,040 | 20,193 | 366 |
Share-based Payment Arrangement, Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 6,809,257 | 4,599,307 | 3,588,663 |
Series A Preferred Stock | Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 2,839,886 |
Series B Preferred Stock | Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 8,172,579 |
Series C Preferred Stock | Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 8,996,586 |
Series D Preferred Stock | Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 6,154,166 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax benefit | $ (92) | $ 0 | $ 0 | |
Valuation allowance | 96,301 | 50,524 | ||
Increase in valuation allowance | 10,500 | |||
Reduction in the value of net deferred assets | 10,500 | |||
Unrecognized tax benefits | 2,543 | $ 1,297 | 819 | $ 574 |
Real Estate Owned, Valuation Allowance, Period Increase (Decrease) | 45,800 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 272,800 | |||
Operating losses subject to expiration | $ 89,100 | |||
Research tax credit carryforward | 8,000 | |||
Domestic Tax Authority | Internal Revenue Service (IRS) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 361,900 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 89,600 | |||
Research tax credit carryforward | $ 4,200 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 82,252 | $ 45,215 |
Research and development credits | 8,968 | 4,090 |
Capitalized assets | 79 | 23 |
Accruals and reserves | 651 | 390 |
Operating lease liabilities | 2,070 | 806 |
Stock-based compensation | 4,250 | 0 |
Gross deferred tax assets | 98,270 | 50,524 |
Operating lease right-of-use assets | (1,969) | 0 |
Gross deferred tax liabilities | (1,969) | 0 |
Total net deferred tax assets | 96,301 | 50,524 |
Less: valuation allowance | (96,301) | (50,524) |
Net deferred tax assets | $ 0 | $ 0 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 34.00% |
State income taxes, net of federal benefit | 0.00% | 0.00% | 5.80% |
Stock-based compensation | 2.20% | (0.20%) | (0.70%) |
Permanent adjustments | (0.10%) | (0.10%) | 4.20% |
Change to valuation allowance | (25.90%) | (21.90%) | (19.60%) |
Tax Cuts and Jobs Act Impact | 0.00% | 0.00% | (25.40%) |
Research and development credits | 2.80% | 1.30% | 1.60% |
Net unrealized gain on available-for-sale investments | 0.10% | 0.00% | 0.00% |
Other | 0.00% | (0.10%) | 0.00% |
Effective tax rate | 0.10% | 0.00% | 0.00% |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at beginning of year | $ 1,297 | $ 819 | $ 574 |
Additions for tax positions related to prior year | 0 | 0 | 2 |
Decrease related to prior year tax provisions | 0 | 0 | (92) |
Additions for tax positions related to current year | 1,246 | 478 | 335 |
Gross unrecognized tax benefits at end of year | $ 2,543 | $ 1,297 | $ 819 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||||
Research and development | $ 133,028 | $ 85,594 | $ 35,906 | |
Subsequent Event | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Research and development | $ 2,600 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) $ / shares in Units, $ in Thousands | Jun. 15, 2018 | Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares |
Condensed Financial Information Disclosure [Abstract] | ||||||||||||
Reserve stock split ratio | 0.2513 | |||||||||||
Operating expenses | $ 58,116 | $ 45,096 | $ 37,837 | $ 37,775 | $ 28,810 | $ 29,408 | $ 25,279 | $ 20,098 | $ 178,824 | $ 103,595 | $ 47,122 | |
Net loss | $ (58,171) | $ (44,119) | $ (36,626) | $ (37,897) | $ (27,844) | $ (29,098) | $ (25,362) | $ (20,504) | $ (176,813) | $ (102,808) | $ (41,290) | |
Net loss per share, basic and diluted (in USD per share) | $ / shares | $ (1.17) | $ (0.89) | $ (0.75) | $ (0.90) | $ (0.66) | $ (0.71) | $ (10.89) | $ (9) | $ (3.72) | $ (4.64) | $ (19.32) |