Aridis Pharmaceuticals (ARDS) 10-K 30 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Mar. 24, 2021	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	ARIDIS PHARMACEUTICALS, INC.
Entity Central Index Key	0001614067
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Interactive Data Current	Yes
Entity Public Float			$ 49.6
Entity Common Stock, Shares Outstanding		11,227,921
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Title of 12(b) Security	Common Stock, par value $0.0001 per share
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 8,232,000	$ 20,897,000
Other receivables	368,000	413,000
Contract costs	1,973,000	1,537,000
Prepaid expenses	2,182,000	2,990,000
Total current assets	12,755,000	25,837,000
Property and equipment, net	1,258,000	1,006,000
Intangible assets, net	27,000	32,000
Restricted cash	500,000
Contract costs, non-current	90,000	526,000
Equity method investment	0	9,000
Other assets	487,000	557,000
Total assets	15,117,000	27,967,000
Current liabilities:
Accounts payable	1,886,000	1,755,000
Accrued liabilities	1,330,000	2,974,000
Deferred revenue	18,748,000	14,602,000
Note payable	439,000
Other liabilities	37,000
Total current liabilities	22,440,000	19,331,000
Deferred revenue, non-current	854,000	5,000,000
Note payable, non-current	276,000
Other liabilities	228,000
Total liabilities	23,798,000	24,331,000
Commitments and contingencies (Note 13)
Stockholders' equity (deficit):
Preferred stock (par value $0.0001; 60,000,000 shares authorized; zero shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively)
Common stock (par value $0.0001; 100,000,000 shares authorized; shares issued and outstanding: 10,065,727 and 8,918,461 as of December 31, 2020 and December 31, 2019, respectively)	1,000	1,000
Additional paid-in capital	114,420,000	104,404,000
Accumulated deficit	(123,102,000)	(100,769,000)
Total stockholders' equity (deficit)	(8,681,000)	3,636,000
Total liabilities and stockholders' equity (deficit)	$ 15,117,000	$ 27,967,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	60,000,000	60,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	10,065,727	8,918,461
Common stock, shares outstanding (in shares)	10,065,727	8,918,461

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue:
Grant revenue	$ 1,000	$ 1,022
Operating expenses:
Research and development	16,956	24,083
General and administrative	6,445	6,026
Total operating expenses	23,401	30,109
Loss from operations	(22,401)	(29,087)
Other income (expense):
Interest income, net	77	357
Share of loss from equity method investment	(9)	(951)
Net loss	$ (22,333)	$ (29,681)
Weighted-average common shares outstanding used in computing net loss, basic and diluted	9,168,744	8,458,277
Net loss per share, basic and diluted	$ (2.44)	$ (3.51)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common StockRegistered direct offering	Common StockPrivate placement	Common StockATM offering Agreement	Common Stock	Additional Paid-In CapitalRegistered direct offering	Additional Paid-In CapitalPrivate placement	Additional Paid-In CapitalATM offering Agreement	Additional Paid-In Capital	Accumulated Deficit	Registered direct offering	Private placement	ATM offering Agreement	Total
Balances at the beginning of the period at Dec. 31, 2018				$ 1				$ 97,401	$ (71,088)				$ 26,314
Balances at the beginning of the period (in shares) at Dec. 31, 2018				8,104,757
Changes in equity
Issuance of common stock, net of issuance costs						$ 4,958					$ 4,958
Issuance of common stock, net of issuance costs (in shares)		801,820
Exercise of stock options								35					35
Exercise of stock options (in shares)				11,884
Stock-based compensation								2,010					2,010
Net loss									(29,681)				(29,681)
Balances at the end of the period at Dec. 31, 2019				$ 1				104,404	(100,769)				3,636
Balances at the end of the period (shares) at Dec. 31, 2019				8,918,461
Changes in equity
Issuance of common stock, net of issuance costs					$ 5,807		$ 62			$ 5,807		$ 62
Issuance of common stock, net of issuance costs (in shares)	1,134,470		7,883									7,883
Issuance of common stock warrants in a private placement, net of issuance costs						$ 2,005					$ 2,005
Exercise of stock options								14					$ 14
Exercise of stock options (in shares)				4,913									4,913
Stock-based compensation								2,128					$ 2,128
Net loss									(22,333)				(22,333)
Balances at the end of the period at Dec. 31, 2020				$ 1				$ 114,420	$ (123,102)				$ (8,681)
Balances at the end of the period (shares) at Dec. 31, 2020				10,065,727

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (22,333)	$ (29,681)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	337	338
Stock-based compensation expense	2,128	2,010
Share of loss from equity method investment	9	951
Changes in operating assets and liabilities:
Accounts receivable		1,660
Other receivables	(144)	25
Prepaid expenses	808	(1,433)
Contract costs	(488)	(1,576)
Other assets	46	438
Accounts payable	(83)	(469)
Accrued liabilities and other	(756)	(2)
Deferred revenue		19,580
Net cash used in operating activities	(20,476)	(8,159)
Cash flows from investing activities:
Purchase of property and equipment	(367)	(174)
Net cash used in investing activities	(367)	(174)
Cash flows from financing activities:
Proceeds from issuance of common stock, net	7,949	4,958
Proceeds from note payable	715
Proceeds from stock option exercises	14	35
Net cash provided by financing activities	8,678	4,993
Net decrease in cash and cash equivalents	(12,165)	(3,340)
Cash, cash equivalents and restricted cash at:
Beginning of period	20,897	24,237
End of period	8,732	20,897
Supplemental cash flow disclosures:
Cash paid for taxes	2	2
Supplemental noncash investing and financing activities:
Property and equipment additions	230	13
Stock issuance costs	$ 51	$ 488

Description of Business and Bas

Description of Business and Basis of Presentation	12 Months Ended
	Dec. 31, 2020
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation Organization Aridis Pharmaceuticals, Inc. (the “Company” or “we” or “our” or “us”) was established as a California limited liability corporation in 2003. The Company converted to a Delaware C corporation on May 21, 2014. Our principal place of business is in Los Gatos, California. We are a late-stage biopharmaceutical company focused on developing new breakthrough therapies for infectious diseases and addressing the growing problem of antibiotic resistance. The Company has a deep, diversified portfolio of clinical and pre-clinical stage non-antibiotic anti-infective product candidates that are complimented by a fully human monoclonal antibody discovery platform technology. The Company’s suite of anti-infective monoclonal antibodies offers opportunities to profoundly alter the current trajectory of increasing antibiotic resistance and improve the health outcome of many of the most serious life-threatening infections particularly in hospital settings. Basis of Presentation and Consolidation The accompanying consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles, or GAAP. The consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries, Aridis Biopharmaceuticals, LLC and Aridis Pharmaceuticals, C.V. All intercompany balances and transactions have been eliminated in consolidation. The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported net loss, stockholders' equity (deficit) or cash flow activities. COVID-19 The COVID-19 outbreak in the United States has caused business disruption. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, and impact on the Company’s clinical trials, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition or results of operations is uncertain. Going Concern The Company had recurring losses from operations since inception and negative cash flows from operating activities during the years ended December 31, 2020 and 2019. Management expects to incur additional operating losses and negative cash flows from operations in the foreseeable future as the Company continues its product development programs. In March 2021, the Company received gross proceeds of $7.0 million from an equity offering and received $500,000 from a license agreement (see Note 14). The Company’s research and development expenses and resulting cash burn during the year ended December 31, 2020, were largely due to costs associated with the Phase 3 study of AR-301 for the treatment of ventilator associated pneumonia (“VAP”) caused by the Staphylococcus aureus bacteria and the Phase 1/2 study of AR-501 for the treatment of chronic lung infections associated with cystic fibrosis. Current clinical development activities are focused on AR-301, AR-501 and AR-712. We expect our expenses to continue to increase in connection with our ongoing development activities, particularly as we continue the research, development and clinical trials of, and seek regulatory approval for, our therapeutic candidates. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies, including by causing disruptions in the supply of the product candidates and the conduct of current and future clinical trials. Additionally, as the duration of the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce our ability to access capital, which could negatively impact the Company’s short-term and long-term liquidity. These effects could have a material impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which the Company relies. The Company plans to fund its losses from operations through current cash on hand and future debt and equity financings which we may obtain through one or more public or private equity offerings, debt financings, government or other third-party funding, strategic alliances and licensing or collaboration arrangements. The Company may be unable to secure additional financing or other sources of funding on acceptable terms, or at all. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate its research and development programs or future commercialization efforts, which could adversely affect its future business prospects and its ability to continue as a going concern. The Company believes that its current available cash and cash equivalents, including cash received in March 2021 from an equity offering and a license agreement, will not be sufficient to fund its planned expenditures and meet the Company’s obligations for at least the one-year period following its consolidated financial statement issuance date. The accompanying consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities in their normal course of business. There is substantial doubt about the Company’s ability to continue as a going concern for one year after the date that these consolidated financial statements are issued. These consolidated financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Such estimates include those related to the evaluation of our ability to continue as a going concern, best estimate of standalone selling price of revenue deliverables, useful life of long-lived assets, classification of deferred revenue, income taxes, assumptions used in the Black-Scholes-Merton (“BSM”) model to calculate the fair value of stock-based compensation, deferred tax asset valuation allowances, and preclinical study and clinical trial accruals. Actual results could differ from those estimates. Concentrations Credit Risk The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits held by these institutions may exceed the amount of insurance provided on such deposits. Customer Risk For the years ended December 31, 2020 and 2019, one customer accounted for 100% of total revenue. This customer is located in the United States. As of December 31, 2020 and 2019, there were no accounts receivable. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of checking account and money market fund account balances. The following table provides a reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets which, in aggregate, represent the amount reported in the consolidated statements of cash flows (in thousands): Year Ended December 31, 2020 2019 Cash and cash equivalents $ 8,232 $ 20,897 Restricted cash 500 — Total cash, cash equivalents and restricted cash $ 8,732 $ 20,897 Restricted cash consists of deposits for a letter of credit that the Company has provided to secure its obligations under its facility lease. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company considers the credit worthiness of its customers but does not require collateral in advance of a sale. The Company evaluates collectability and maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio when necessary. The allowance is based on the Company’s best estimate of the amount of losses in the Company’s existing accounts receivable, which is based on customer creditworthiness, facts and circumstances specific to outstanding balances, and payment terms. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2020 and 2019, there were no allowances for doubtful accounts. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, generally between three and five years for lab equipment and computer equipment and software, and over the shorter of the lease term or useful life for leasehold improvements. Maintenance and repairs are charged to expense as incurred, and costs of improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in the consolidated statement of operations in the period realized. Intangible Assets Intangible assets are recorded at cost and amortized over the estimated useful life of the asset. Intangible assets consist of licenses with various institutions whereby the Company has rights to use intangible property obtained from such institutions. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount to the future undiscounted net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured by the excess of the carrying amount of the assets over fair value less the costs to sell the assets, generally determined using the projected discounted future net cash flows arising from the asset. There have been no such impairments of long-lived assets as of December 31, 2020 and 2019. Revenue Recognition The Company recognizes revenue based on Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), which applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. See Note 6 for details of the development and license agreements. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue at a point in time, or over time, as the entity satisfies performance obligations. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. As part of the accounting for customer arrangements, the Company must use judgment to determine: a) the number of performance obligations based on the determination under step (ii) above; b) the transaction price under step (iii) above; and c) the standalone selling price for each performance obligation identified in the contract for the allocation of the transaction price in step (iv) above. The Company uses judgment to determine whether milestones or other variable consideration should be included in the transaction price. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. In developing the standalone price for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. The Company recognizes revenue as or when the performance obligations under the contract are satisfied. The Company receives payments from its customers based on payment schedules established in each contract. The Company records any amounts received prior to satisfying the revenue recognition criteria as deferred revenue on its consolidated balance sheets. Amounts recognized as revenue, but not yet received or invoiced are recorded within other receivables on the consolidated balance sheet. Amounts are recorded as other receivables on the consolidated balance sheet when our right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of a majority of the promised goods or services to the customer will be one year or less. Contract Assets The incremental costs of obtaining a contract under ASC 606 (i.e. costs that would not have been incurred if the contract had not been obtained) are recognized as an asset in the Company’s consolidated balance sheets if the Company expects to recover them (see Note 6). Capitalized costs will be amortized to the respective expenses using a systematic basis that mirrors the pattern in which the Company transfers control of the goods and service to the customer. At each reporting date, the Company determines whether or not the capitalized costs to obtain a contract are impaired by comparing the carrying amount of the asset to the remaining amount of consideration that the Company received and expects to receive less the costs that relate to providing services under the relevant contract. For the years ended December 31, 2020 and 2019, there was no amortization of the contract assets and there have been no impairments as of December 31, 2020. Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria, or in which the Company has an unconditional right to payment, are recorded as deferred revenue in the Company’s consolidated balance sheets. The Company has estimated the classification between current and noncurrent deferred revenue related to the respective license agreement within its consolidated balance sheets at December 31, 2020 and 2019 (see Note 6). Research and Development Research and development costs are expensed to operations as incurred. Our research and development expenses consist primarily of: · salaries and related overhead expenses, which include stock-based compensation and benefits for personnel in research and development functions; · fees paid to consultants and contract research organizations, or CROs, including in connection with our preclinical studies and clinical trials and other related clinical trial fees, such as for investigator grants, patient screening, laboratory work, clinical trial material management and statistical compilation and analyses; · costs related to acquiring and manufacturing clinical trial materials; · costs related to compliance with regulatory requirements; and · payments related to licensed products and technologies. Costs for certain development activities are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and clinical sites. Nonrefundable advance payments for goods or services to be received in future periods for use in research and development activities are deferred and capitalized. The capitalized amounts are then expensed as the related goods are delivered or when the services are performed. Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair values, which the Company determines using the BSM option pricing model, on a straight-line basis over the requisite service period for the award. The Company accounts for forfeitures as they occur. The BSM option pricing model incorporates various highly sensitive assumptions, including the fair value of our common stock, expected volatility, expected term and risk-free interest rates. The weighted average expected life of options was calculated using the simplified method as prescribed by the SEC’s Staff Accounting Bulletin, Topic 14 (“SAB Topic 14”). This decision was based on the lack of relevant historical data due to our limited historical experience. In addition, due to our limited historical data, the estimated volatility also reflects the application of SAB Topic 14, incorporating the historical volatility of comparable companies whose stock prices are publicly available. The risk-free interest rate for the periods within the expected term of the option is based on the U.S. Treasury yield in effect at the time of grant. The dividend yield was zero, as we have never declared or paid dividends and have no plans to do so in the foreseeable future. Income Taxes The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by the relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. At each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. Comprehensive Loss The Company has no items of comprehensive income or loss other than net loss. Loss Per Share Basic loss per share is calculated by dividing net loss for the period by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For the years ended December 31, 2020 and 2019, there is no difference in the number of shares used to compute basic and diluted net loss per share due to the Company’s net loss position. The following tables presents the computation of the basic and diluted net loss per share (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss (basic and diluted) $ (22,333) $ (29,681) Denominator: Weighted-average shares of common stock (basic and diluted) 9,168,744 8,458,277 Basic and diluted net loss per share $ (2.44) $ (3.51) The following potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: Year Ended December 31, 2020 2019 Stock options to purchase common stock 1,550,956 1,380,312 Common stock warrants 2,052,128 1,733,322 3,603,084 3,113,634 JOBS Act Accounting Election The JOBS Act permits an “emerging growth company” such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We are choosing to take advantage of this provision and, as a result, we will adopt the extended transition period available under the JOBS Act until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided under the JOBS Act. Recently Issued Accounting Pronouncements not yet adopted as of December 31, 2020 Accounting Standards Update 2016-02 and 2018-11 In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) . In July 2018, the FASB issued ASU 2018-10, Codification Improvements to ASC 842, Leases , which provides clarification to ASU 2016-02. These ASUs (collectively, the new lease standard) require an entity to recognize a lease liability and a right-of-use asset on the consolidated balance sheet for leases with lease terms of more than twelve months. Lessor accounting is largely unchanged, while lessees will no longer be provided with a source of off-balance sheet financing. Initial guidance required the adoption of the new lease standard using the modified retrospective transition method. In July 2018, the FASB issued ASU 2018-11, Leases (ASC 842) — Targeted Improvements , which allows entities to elect an optional transition method where entities may continue to apply the existing lease guidance during the comparative periods and apply the new lease requirements through a cumulative effect adjustment in the period of adoptions rather than in the earliest period presented. In March 2019, FASB issued ASU 2019-01, Codification improvements , which provides clarification on implementation issued associated with adopting ASU 2016-02. ASU 2019-01 enhances the guidance in ASC 842 surrounding the fair value of underlying assets for lessors, presentation of sales-type and direct financing leases on the consolidated statement of cash flows, and transition guidance surrounding accounting changes and error corrections. This guidance was effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In November 2019, the FASB deferred the effective date for adopting the leasing standard updates for private companies, not-for-profit organizations, and smaller reporting companies. In June 2020, the FASB issued additional deferral guidance that defers the effective date of the leasing standard updates for one year for entities in the “all other” category and public not-for-profit entities that have not yet issued financial statements adopting the standard. The deferrals of the standard are intended to provide relief to nonpublic companies and not-for-profit entities that have had their implementation efforts delayed by the COVID-19 pandemic. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, the new leasing standard updates would be effective for the Company for the year ended December 31, 2022, and all interim periods within the year ended December 31, 2023. Early adoption is permitted. While the Company continues to review its current accounting policies and practices to identify potential differences that would result from applying the new guidance, the Company expects that its non-cancellable operating lease commitments with a term of more than twelve months will be subject to the new guidance and recognized as right-of-use assets and operating lease liabilities on the Company’s consolidated balance sheets upon adoption. The Company expects to elect transitional practical expedients such that the Company will not need to reassess whether contracts are leases and will retain lease classification and initial direct costs for leases existing prior to the adoption of the new lease standard. Accounting Standards Update 2016-13 In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments — Credit Losses (ASC 326) ”, which is intended to provide financial statement users with more useful information about expected credit losses on financial assets held by a reporting entity at each reporting date. The new standard replaces the existing incurred loss impairment methodology with a methodology that requires consideration of a broader range of reasonable and supportable forward-looking information to estimate all expected credit losses. For public business entities, ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2020. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASU 2016-13 is effective for the Company for the fiscal year ending on December 31, 2022, and all interim periods within. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 to have a material impact on the Company's consolidated financial statements and disclosures. Accounting Standards Update 2019-12 In December 2019, the FASB issued ASU 2019-12, “ Simplifying the Accounting for Income Taxes (ASC 740) ”, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public entities, the ASU 2019-12 is effective for fiscal years and interim periods within those years beginning after December 15, 2020. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASU 2019-12 is effective for the Company for the fiscal year ending on December 31, 2022, and all interim periods within. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Fair Value Disclosure

Fair Value Disclosure	12 Months Ended
	Dec. 31, 2020
Fair Value Disclosure
Fair Value Disclosure	3. Fair Value Disclosure Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are observable, unadjusted 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 related assets or liabilities; and Level 3 Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying value of the Company’s cash and cash equivalents, prepaid expenses and other current assets, other assets, accounts payable, accrued liabilities, and note payable approximate fair value due to the short-term nature of these items.

Balance Sheet Components

Balance Sheet Components	12 Months Ended
	Dec. 31, 2020
Balance Sheet Components
Balance Sheet Components	4. Balance Sheet Components Property and Equipment, net Property and equipment, net consist of the following (in thousands): December 31, December 31, 2020 2019 Lab equipment $ 2,200 $ 1,804 Computer equipment and software 25 25 Construction in progress 188 — Total property and equipment 2,413 1,829 Less: Accumulated depreciation (1,155) (823) Property and equipment, net $ 1,258 $ 1,006 Depreciation expense was approximately $332,000 for both years ended December 31, 2020 and 2019. In October 2020, the Company entered into a new lease agreement for its new headquarters facility in Los Gatos, California (see Note 13). The Company moved into the new facility in December 2020 and recorded approximately $188,000 in construction in progress related to leasehold improvements made by the Company related to the new facility. Intangible Assets, net Intangible assets, net consist of the following (in thousands): December 31, December 31, 2020 2019 Licenses $ 81 $ 81 Less: Accumulated amortization (54) (49) Intangible assets, net $ 27 $ 32 Amortization expense was approximately $5,000 and $6,000 for the years ended December 31, 2020 and 2019, respectively. The estimated acquired intangible amortization expense for the next five fiscal years is as follows (in thousands): Year ending December 31, 2021 $ 5 2022 5 2023 5 2024 5 2025 and thereafter 7 Total $ 27 Licenses University Licensing Agreements The University of Chicago — Exclusive Patent License Agreement We are party to an exclusive licensing agreement with The University of Chicago (UOC), a non-profit university. This agreement granted to us an exclusive, royalty-bearing license for staph alpha toxin technology. The UOC agreement also granted to us the right to sublicense. UOC retained the non-transferrable right to use such patent rights for academic and research purposes, and also to certain pre-existing rights of the U.S. government. We paid upfront fees upon the execution of the agreement and are obligated to pay an annual maintenance fee. We also are obligated to pay UOC low single digit percentage royalties on net sales from our and our sublicensee’s sale of any commercialized licensed product or process, and certain other payments, subject to a minimum amount. The aggregate milestone payments under the UOC agreement potentially total up to $1.6 million. No milestones were met or accrued for during 2019. A $100,000 milestone was accrued for at December 31, 2020. We are responsible for our pro rata share of patent expenses. The agreement provides that we have certain obligations to conduct further research and development, and are obligated to utilize reasonable efforts to commercialize, either directly or through a sublicensee, the licensed UOC patent rights as licensed products or processes. The term of the agreement continues until all patents and filed patent applications, included within the licensed UOC patents, have expired or been abandoned, or until the agreement is earlier terminated. We may terminate the agreement on prior written notice to UOC. Each party has the right to terminate the agreement for the other party’s uncured material breach of obligations under the agreement. The Brigham and Women’s Hospital, Inc. — Exclusive Patent License Agreement We are party to an exclusive licensing agreement with The Brigham and Women’s Hospital, Inc. (BWH), a non-profit corporation. This agreement granted to us an exclusive, royalty-bearing license under its and Beth Israel Deaconess Medical Center’s (BIDMC) rights in methods and composition relating to specific binding peptides to P. aeruginosa mucoid exopolysaccharide to make, use and sell products and processes for the treatment of pseudomonas infections in humans that are covered by such patent rights. The BWH agreement also granted to us the right to sublicense. BWH and BIDMC retained the non-transferrable right to use such patent rights for academic and research purposes, and also to certain pre-existing rights of the U.S. government. We also are obligated to pay BWH low single digit percentage royalties on net sales from our and our sublicensee’s sale of any commercialized licensed product or process, and certain other payments. The aggregate milestone payments under the BHW agreement potentially total up to $860,000. No milestones were met or accrued for during 2020 or 2019. We are responsible for diligently prosecuting and maintaining the licensed patent rights, at our sole cost and expense. The agreement provides that we have certain obligations to conduct further research and development, and are obligated to utilize reasonable efforts to commercialize, either directly or through a sublicensee, the licensed BWH patent rights as licensed products or processes. The term of the agreement continues until all patents and filed patent applications, included within the licensed BWH patents, have expired or been abandoned, or until the agreement is earlier terminated. We may terminate the agreement on prior written notice to BWH. Each party has the right to terminate the agreement for the other party’s uncured material breach of obligations under the agreement. The University of Iowa Research Foundation — Exclusive Patent License Agreement We are party to an exclusive licensing agreement with The University of Iowa Research Foundation (UIRF). The UIRF agreement granted to us an exclusive, royalty-bearing license under its rights in methods relating to gallium containing compounds for the treatment of infections to make, use and sell products that are covered by such patent rights. The UIRF agreement also granted to us the right to sublicense. UIRF retained the right and ability to grant right to use such patent rights for academic and research purposes, and also to certain pre-existing rights of the U.S. government including the United States Department of Veterans Affairs. We also are obligated to pay UIRF low single digit percentage royalties on net sales from our and our sublicensee’s sale of any commercialized licensed product or process, and certain other payments. The aggregate milestone payments under the UIRF agreement potentially total up to $712,500. No milestones were met or accrued for during 2020 or 2019. We are responsible for diligently prosecuting and maintaining the licensed UIRF patent rights, at our sole cost and expense. The agreement provides that we have certain obligations to conduct further research and development, and are obligated to utilize reasonable efforts to commercialize, either directly or through a sublicensee, the licensed UIRF patent rights as licensed products or processes. The term of the agreement continues until the expiration of the last to expire patents, included within the licensed UIRF patents, or until the agreement is earlier terminated. We may terminate the agreement on prior written notice to UIRF. Each party has the right to terminate the agreement for the other party’s uncured material breach of obligations under the agreement. Brigham Young University — Exclusive Patent License Agreement We are party to an exclusive licensing agreement with Brigham Young University (BYU). This agreement granted to us an exclusive, royalty-bearing license under its rights in stabilization of biological agents methods relating to human vaccines to make, use and sell products that are covered by such patent rights. The agreement also granted to us the right to sublicense. BYU and the Church of Jesus Christ of Latter-day Saints and the Church Education System retained the right and ability to use such patent rights for academic and ecclesiastical purposes and also to purchase products using such patents rights at a discounted price. We also are obligated to pay BYU low single digit percentage royalties on net sales from our and our sublicensee’s sale of any commercialized licensed product, and certain other payments. The aggregate milestone payments under the BYU agreement potentially total up to $400,000. No milestones were met or accrued for during 2020 or 2019. BYU is responsible for diligently prosecuting and maintaining the licensed BYU patent rights and we reimburse them for one-third of their costs. The agreement provides that we have certain obligations to conduct further research and development, and are obligated to utilize reasonable efforts to commercialize, either directly or through a sublicensee, the licensed BYU patent rights as licensed products or processes. The term of this agreement continues until the expiration of the last to expire patents, included within the licensed BYU patents, or until the agreement is earlier terminated. We may terminate the agreement on prior written notice to BYU. Each party has the right to terminate the agreement for the other party’s uncured material breach of obligations under the agreement. The UAB Research Foundation — Exclusive Patent License Agreement In September 2020, the Company entered into an exclusive licensing agreement with the UAB Research Foundation (“UABRF”), a non-profit corporation. This agreement granted the Company an exclusive, royalty-bearing license for intellectual property entitled human neutralizing antibodies against SARS-CoV-02/COVID-19. UABRF and Texas Biomedical Research Institute (“Texas Biomed”) jointly own all rights, title and interest in the intellectual property. The UABRF license agreement also granted to the Company the right to sublicense the technology. UABRF retained the non-transferrable right to use such patent rights for academic and research purposes, and also to certain pre-existing rights of the U.S. government. The Company has agreed to provide at least $50,000 in research funding to each of the lead inventor’s research programs. This funding was supplied under research agreements between the Company, UABRF and Texas Biomed, and the intellectual property resulting from such research shall be included under this exclusive license agreement. The potential development and commercialization milestone payments under the UABRF agreement total up to approximately $5.5 million. No milestones were met or accrued for as of December 31, 2020. The Company is also obligated to pay UABRF single digit percentage royalties on net sales from us and our sublicensee’s sale of any commercialized licensed product or process, subject to minimum annual amounts starting in 2026. The Company is obligated to pay UABRF double digit percentage royalties on non-royalty income received during the term of the license agreement, and payments will be reduced by one half for non-royalty income received for a combination product as defined in the agreement. No milestones were met or accrued for during 2020. The Company is responsible for all patent protection expenses. The term of the license agreement continues until all patents and filed patent applications, included within the licensed UABRF patents, have expired, or been abandoned, or until the agreement is earlier terminated. The Company may terminate the license agreement by giving no less than ninety (90) days prior written notice to UABRF. UABRF has the right to immediately terminate the license agreement upon the Company’s uncured material breach of obligations under the agreement. Non-Profit Licensing Agreements Program for Appropriate Technology in Health and PATH Vaccine Solutions We granted the Program for Appropriate Technology in Health (PATH), a global non-profit organization, and the PATH Vaccine Solutions a non-exclusive license, with right to sublicense formulations, for use with the measles, rotavirus, live-attenuated influenza, pneumococcal and enteric vaccines only for sale in developing countries. We have also agreed to provide rotavirus vaccines to public sector purchasers in developing countries at a preferential price relative to private sector purchasers in developing countries where the rotavirus vaccine utilizing the enabling formulation technology is offered for sale. Corporate Licensing Agreements Kenta Biotech Ltd. We are party to an asset purchase agreement with Kenta Biotech Ltd. (Kenta), a for profit corporation (Aktiengesellschaft) duly incorporated in Schlieren (Canton of Zurich, Switzerland), registered under the identification number CH‑035.3.035.876‑2. The agreement assigned and transferred certain of Kenta’s physical assets, contracts and technology to us. The physical assets included all physical assets owned or controlled by Kenta, including but not limited to cell lines, genes, antibodies, diagnostic assays and related documentation, which were related to Kenta’s MabIgX technology platform for hybridoma generation and its mAb targeting S. aureus , P. aeruginosa , A. baumannii and RSV. The technology included all intellectual property, including but not limited to patents, patent applications, trademarks, knowhow, trade secrets, regulatory filings, clinical trials, clinical trial information, all supporting documentation and all other related intellectual property which are related to Kenta’s MabIgX technology platform for hybridoma generation and its mAb targeting S. aureus , P. aeruginosa , A . baumannii and RSV. The contracts included the contracts and agreements (including all rights and obligations thereunder), whether oral or written, which Kenta has concluded and which pertain to the assets. The contracts were primarily related to the ongoing clinical trial of AR 301. We were obligated to pay Kenta a fixed purchase price, which was fully paid during 2013 and 2014, and a declining scale of low double digit to low single digit percentage royalties on gross licensing revenues from either our licensing of the assets or net sales revenues actually received by us up to a maximum of $50 million. As of December 31, 2020, no royalty obligation was due to Kenta. As of December 31, 2019, the Company accrued approximately $488,000 due to Kenta for a royalty obligation resulting from the license agreement entered into in September 2019 (see Note 6) which was paid in January 2020. Emergent Product Development Gaithersburg Inc. We are party to a license agreement with Emergent Product Development Gaithersburg Inc. (Emergent). We granted Emergent an exclusive, perpetual, royalty-bearing license to use certain of our patents and related know how for the prevention or treatment of infection or illness caused by biodefense pathogens. We also granted a non-exclusive, royalty-bearing license to use certain of our patents and related know how for the prevention or treatment of tularemia and viral hemorrhagic fever indications. Emergent is obligated to pay us low single digit percentage royalties on net sales from their and their sublicensee’s sale of any commercialized licensed product, and certain other payments. The aggregate milestone payments that the Company could receive under the Emergent agreement amount to $2.8 million. The Company is not aware of Emergent achieving any milestones under the agreement and has not received any milestone payments. The Company has certain diligence obligations to conduct further research and development, and to exploit licensed products. Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, December 31, 2020 2019 Research and development services $ 872 $ 2,709 Payroll related expenses 279 150 Professional services and other 179 115 Accrued liabilities $ 1,330 $ 2,974

Equity Method Investment

Equity Method Investment	12 Months Ended
	Dec. 31, 2020
Equity Method Investment
Equity Method Investment	5. Equity Method Investment On February 11, 2018, the Company entered into a joint venture agreement (the “JV Agreement”) with Shenzhen Hepalink Pharmaceutical Group Co., Ltd., a related party, principal shareholder of the Company, and a Chinese entity (“Hepalink”), to develop and commercialize products for infectious diseases. Under the terms of the JV Agreement, the Company contributed $1.0 million and the license of its technology relating to the Company’s AR-101 and AR-301 product candidates for use in the joint venture company named Shenzhen Arimab BioPharmaceuticals Co., Ltd. (the “JV Entity”) in the territories of the Republic of China, Hong Kong, Macau and Taiwan (the “Territory”) and initially owns 49% of the JV Entity. On July 2, 2018, the JV Entity received final approval from the government of the Peoples Republic of China. It was agreed by the parties that the Company shall be reimbursed for certain legal and contract manufacturing expenses related to the clinical drug supply for a Phase 3 clinical study of AR-301 and the clinical drug supply for a clinical study of AR-105 (see Note 12). On August 6, 2018, the Company entered into an amendment to the JV Agreement with Hepalink whereby the Company agreed to additionally contribute an exclusive, revocable, and royalty-free right and license to its AR-105 product candidate in the Territory. Pursuant to the JV Agreement and the amendment, Hepalink initially owns 51% of the JV Entity and is obligated to contribute the equivalent of $7.2 million to the JV Entity. Additionally, Hepalink is obligated to make an additional equity investment of $10.8 million or more at the time of the JV Entity’s first future financing. The Company evaluated the accounting for the JV Agreement entered into noting that it did not meet the accounting definition of a joint venture and instead meets the definition of a variable interest entity. The Company concluded that it is not the primary beneficiary of the JV Entity and therefore is not required to consolidate the entity. This conclusion was based on the fact that the equity-at-risk is insufficient to support operations without additional investment and that the Company does not hold decision-making power over activities that significantly impact the JV Entity’s operations. The Company accounted for its investment in the JV Entity as an equity method investment. The Company recorded the equity method investment at $1.0 million which represents the Company’s contribution into the JV Entity. The Company’s license contributed to the JV Entity was recorded at its carryover basis of $0. For the years ended December 31, 2020 and 2019, the Company recognized approximately $9,000 and $951,000 in losses from the operations of the JV Entity, respectively. As of December 31, 2020 and 2019, the Company’s equity method investment in the JV Entity was approximately $0 and $9,000, respectively.

Collaboration, Development and

Collaboration, Development and License Agreements	12 Months Ended
	Dec. 31, 2020
Collaboration, Development and License Agreements
Collaboration, Development and License Agreements	6. Collaboration, Development and License Agreements Cystic Fibrosis Foundation Development Agreement In December 2016, the Company received an award from the Cystic Fibrosis Foundation (“CFF”), which was executed under the Development Program Letter Agreement (the “CFF Agreement”), for approximately $2.9 million. Under the CFF Agreement, CFF made an upfront payment of $200,000 and will make milestone payments to the Company as certain milestones defined in the agreement are met. The milestones relate to pre-clinical and clinical research activities. The agreement also specifies that we are obligated to cumulatively spend on the development program at least an equal amount that the Company receives from the CFF. In the event that we do not spend as much as we received under the agreement, we are obligated to return any overage to the CFF. In November 2018, the CFF increased the award to approximately $7.5 million. Immaterial Error in Accounting for Cystic Fibrosis Foundation Development Agreement After receiving a comment letter from the SEC in connection with its review of the Company’s Form 10-K for the Fiscal Year Ended December 31, 2019, the Company conducted a review of its accounting for the CFF Agreement and determined that it did not appropriately apply ASC 606 to the CFF Agreement as of the adoption date of January 1, 2019 (the “Adoption Date”) and thereafter through September 30, 2020, with such determination being subject to further SEC comment. Originally, the Company determined that the clinical research activities associated with all the milestones under the CFF Agreement were considered a single performance obligation. Hence, the entire estimated transaction price was allocated to this single performance obligation and recognized as revenue by measuring progress using the input method (cost-to-cost) that was based on total estimated costs to achieve all milestones included in the total project, limited by the variable consideration attributed to the probable completion of certain milestones as defined in the CFF Agreement. After further review, as of the Adoption Date, the Company identified the following promises with regards to the clinical research activities that represent an initial contract of: a) Phase 1 single ascending dose (“SAD”) clinical trial, which consists of the satisfied development-based milestones and one development-based milestone in progress which was accounted for as a single performance obligation; and contingent promises of: b) Phase 1 multiple ascending dose (MAD) clinical trial, which consists of one development-based milestone that had not yet been started, and c) Phase 2a clinical trial, which consists of four development-based milestones that had not yet been started. Of these promises, the Phase 1 SAD clinical trial was determined to be a distinct performance obligation as of the Adoption Date. For the clinical research activities related to the Phase 1 MAD clinical trial and the Phase 2a clinical trial that had not yet been started, the Company was contingently obligated to perform these clinical research activities only after the previous milestones, which achievement was uncertain, had been met. The clinical research activities related to the Phase 1 MAD clinical trial and the Phase 2a clinical trial that had not been started were evaluated to determine if they should be considered variable consideration or contingent promises akin to optional purchases under ASC 606. The Company concluded that these two promises that have not been started are contingent promises because there is substantive uncertainty about the contingent event occurring (i.e. milestones being achieved) and the contingent event requires additional distinct services and incremental payments from the CFF. The Company determined that these contingent promises did not provide the CFF with any material rights. The Phase 1 MAD clinical trial and the Phase 2a clinical trial will be accounted for as separate contracts at the time the Company is obligated to perform the underlying clinical research activities. The Company determined that the consideration for the Phase 1 SAD clinical trial contract included several development-based milestones which had been achieved as of the Adoption Date totaling approximately $1.7 million and the one development-based milestone in progress as of the Adoption Date of $1.0 million became probable during the quarter ended March 31, 2019. Prior to March 31, 2019, the amount of the one development-based milestone in progress as of the Adoption Date could not be included in the transaction price as it was contingent on successful completion of Phase 1 SAD clinical trial, and it was not probable that significant reversal of cumulative revenue recognized would not occur if this milestone were included in the transaction price. The Company determined the consideration for the Phase 1 MAD clinical trial contract included one development-based milestone of $1.0 million which became probable of achievement and was achieved during the quarter ended June 30, 2020. Prior to June 30, 2020, the amount of the one development-based milestone could not be included in the transaction price for this contract as it was contingent on successful completion of the Phase 1 MAD clinical trial, and it was not probable that a significant reversal of cumulative revenue recognized would not occur if this milestone were included in the transaction price. The Company determined as of December 31, 2020, the transaction price for the Phase 2a clinical trial contract was zero as none of the four development-based milestones which consideration totals approximately $3.8 million could be included in the transaction price, as it was not probable that significant reversal of cumulative revenue recognized would not occur if these milestones were included. The milestones under the CFF Agreement are development-based milestones related to pre-clinical and clinical research activities and the realization of or recognition of revenue associated with the milestones as determined by the completion of the milestones and, if applicable, review and approval of the achievement by the CFF. Each development-based milestone payment has specific criteria that needs to be met, some examples of which include, the completion of certain study activities and approval to move to the next activity. At every reporting period, the Company evaluates the individual facts and circumstances of the development-based milestone to assess whether the revenue attributable to the development-based milestone in progress should be constrained. The constraint assessment by the Company includes an analysis of the key judgements and considerations used for each milestone which include, but are not limited to, the nature and amount of work to be performed, if the work is subject to the approval of the CFF, clinical data and uncertainty with regards to the results of the clinical studies, and the probability of successful clinical studies. The constraint will be removed once the Company achieves the development-based milestone or has determined that there is probable completion of the development-based milestone, and it has also concluded that it is not probable that revenue recognized attributable to the development-based milestone will result in a significant reversal of revenue in the future. The Company determined that the clinical research activities under the CFF Agreement should be recognized over time by calculating the amount of revenue to recognize in any given period by accumulating the total related costs incurred for the respective clinical research activities related to that distinct performance obligation using the input method (cost-to-cost) and applies that percentage of completion to the transaction price at each reporting period. The Company believes this method best depicts the transfer of control to the customer, which occurs as the costs related to the clinical research activities are incurred. In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality (“SAB 99”), the Company has determined that the impact of inappropriately applying ASC 606 to the CFF Agreement was not material to its previously issued annual audited and unaudited condensed consolidated financial statements, and accordingly, no prior period financial statements have been restated. The approximate amount of unrecorded deferred revenue associated with this error was approximately $334,000 and $250,000 at the Adoption Date and March 31, 2019, respectively. As of June 30, 2019, the unrecorded deferred revenue amount related to the error was zero. For the year ended December 31, 2020, the Company recognized $1.0 million in revenue from the CFF Agreement, mainly due to the achievement in 2020 of one development-based milestone related to the Phase 1 MAD clinical trial. For the year ended December 31, 2019, the Company recognized approximately $1.0 million in revenue from the CFF Agreement primarily due to the achievement in 2019 of one development-based milestone related to the Phase 1 SAD clinical trial that was in progress as of the Adoption Date. Serum License Agreement In July 2019, the Company and Serum International B.V. (“SIBV”), an affiliate of Serum Institute of India Private Limited, entered into an option agreement which granted SIBV the option to license multiple programs from the Company and access the Company’s MabIgX® platform technology for asset identification and selection. The Company received an upfront cash payment of $5 million upon execution of this option agreement. In connection with the option agreement, SIBV made an equity investment whereby the Company issued 801,820 shares of its restricted common stock in a private placement to SIBV for total gross proceeds of $10 million. As a result of this transaction, SIBV and its affiliates, are considered related parties to the Company. In September 2019, the Company and Serum AMR Products (“SAMR”), a party under common ownership of SIBV, entered into a License, Development and Commercialization Agreement (the “License Agreement”). Pursuant to the License Agreement, the Company granted to SAMR exclusive licenses, and rights to sublicense, certain patent rights and technology related know-how to the Company’s products AR-301, AR-105, AR-101 (i.e. exclusive rights to, among other things, develop, distribute, market, promote, sell, import and otherwise commercialize) in (a) the country of India, and (b) all other countries of the world except the USA, Canada, EU Territory, UK, China, Australia, South Korea, Brazil, New Zealand, and Japan (products AR-105 and AR-101 countries do not exclude South Korea and Brazil) (the “Limited Territory”); and AR-201 (i.e. exclusive rights to, among other things, develop, manufacture, make, distribute, market, promote, sell, import and otherwise commercialize) in all countries of the world except China, Hong Kong, Macau and Taiwan (the “Worldwide Territory”) (the “licenses and know-how”). Further, the License Agreement grants SAMR an option for the Company to provide research services using its MabIgX® platform technology for the identification of up to five (5) candidates including product development of these identified candidates and an exclusive license to develop, manufacture, make, distribute, market, promote, sell, import and otherwise commercialize these development products in the Worldwide Territory (the “research and development option”). Pursuant to the License Agreement, the Company will provide development support related to the licensed products above in order to assist SAMR in its efforts to develop, receive regulatory approval, and manufacture and sell the licensed products in SAMR’s authorized territories which will be performed under the direction of a Joint Steering Committee (“JSC”) which the Company will participate in (collectively “development support services”). In addition, under the License Agreement, SAMR was granted an exclusive manufacturing license option as the initial license granted above for AR-301, AR-105 and AR-101 does not allow for manufacturing. This manufacturing option provides incremental rights related to these products beyond what is granted as part of the licensing discussed above (the “manufacturing rights option”). If this option is exercised, after SAMR has met certain requirements to exercise the option as defined in the License Agreement, it would provide for an exclusive license for use by SAMR to manufacture and supply the products for SAMR’s own use in the Limited Territory and to manufacture and supply these products to the Company, or their affiliates, for the Company’s use outside the Limited Territory. Should SAMR exercise the development and research option or the manufacturing rights option discussed above, SAMR and the Company shall negotiate in good faith the economic terms around these arrangements. If a third-party sublicensee of AR-301, AR-105 and AR-101 wishes to manufacture these products by itself for the territory for which it has a license from the Company, then the Company shall have the right to buy back the manufacturing rights for all territories outside of the Limited Territory by paying to SAMR $5 million. Under the License Agreement, the Company received upfront payments totaling $15 million, of which $5 million was received in July 2019 through the option agreement referred to above. The Company is also entitled to additional payments from SAMR of up to $42.5 million, conditioned upon the achievement of specified milestones related to completion of certain trials and regulatory approvals as defined in the License Agreement. Further, the Company may receive additional royalty-based payments from SAMR if certain sales levels on licensed products are achieved as defined in the License Agreement. Given the equity investment by SIBV was negotiated in conjunction with the option agreement, which resulted in the execution of the License Agreement, all arrangements were evaluated as a single agreement and amounts were allocated to the elements of the arrangement based on their fair value. See Note 9. The Company allocated the proceeds received from the sale of the restricted common stock and upfront payment from the License Agreement, net of issuance and contract costs, of approximately $22.5 million accordingly: · the Company recorded approximately $5.0 million, which represented the fair value of the restricted common stock issued of $5.4 million, net of $441,000 of issuance costs, to stockholders’ equity within the Company’s consolidated balance sheet as of December 31, 2019; · the Company recorded approximately $19.6 million to deferred revenue based on the $15 million from upfront payments under the License Agreement and approximately $4.6 million from the equity allocation; and · the Company capitalized approximately $2.1 million to contract costs, which consists of approximately $376,000 issuance costs from the equity allocation and approximately $1.7 million in other direct costs to obtain the License Agreement. The License Agreement is determined to be within the scope of ASC 606, as the transaction represents a contract with a customer where the participants function in a customer/vendor relationship and are not exposed equally to the risks and rewards of the activities contemplated under the License Agreement. Using the concepts of ASC 606, the Company identified the following performance obligations under the License Agreement: 1) the transfer of licenses of the intellectual property for AR-301, AR-101, AR-105 and AR-201, inclusive of the related technology know-how conveyance (referred to as the license and know-how above); and 2) the Company to deliver ongoing development support services related to the licensed products and the Company’s participation in the JSC (referred to as the development support services above); and identified the following material promises under the License Agreement: 3) SAMR was granted a research and development option of up to five identified product candidates for the Company to perform including specific development services (the research and development option referred to above); and 4) SAMR was granted an exclusive manufacturing license option which would provide for incremental manufacturing rights related to AR-301, AR-105 and AR-101 beyond what is granted in the License Agreement (the manufacturing rights option referred to above). The Company concluded that the performance obligations and material promises identified are separate and distinct from each other. The ongoing development support services promised will not significantly change the intellectual property underlying the licenses. Further, the Company believes that SAMR can benefit from the license and know-how either on its own or together with other resources that are readily available, has the ability to sublicense these licensed products and these licenses are separately identifiable from the other promises in the License Agreement. The development support services, the research and development option, and the manufacturing rights option are not integrated or dependent upon each other and are provided by the Company separately from each other. The Company determined that the intellectual property licensed under the License Agreement represents functional intellectual property and it has significant standalone functionality and therefore should be recognized at a point in time as opposed to over time. The on-going development support services are to be transferred ratably over the period that the Company expects to assist SAMR in its efforts around the licensed products in SAMR’s authorized territories. These development support services will begin with the formation and first formal meeting of the JSC. To allocate the transaction price among the performance obligations and the material promises, the Company estimated the standalone selling prices (“SSP”) for each. For the licenses and knowhow related to AR-301, AR-105, AR-101 and the manufacturing rights option, the SSP was estimated using the income approach based on assumptions regarding SAMR’s future revenues from the licensed intellectual property, projected costs of research and development, manufacturing and commercialization expenses, as well as the discount rate, the development timeline, and probabilities of technical and regulatory success. To estimate the SSP of AR-201, due to this product is in a pre-clinical stage, development support services, and the research and development option, the Company used a cost-plus margin approach which included the actual costs the Company has incurred for the product technology through the date of the License Agreement and estimating the costs the Company expects to incur and applying a margin, if necessary. The Company believes that a change in the assumptions used to determine its best estimate of SSP for the performance obligations and material promises would not have a significant effect on the allocation of consideration received to the performance obligations and material promises. Under ASC 606 an option to acquire additional goods or services gives rise to a material promise if the option provides a material right to the customer. The research and development option allows SAMR to receive additional services from the Company, for cost reimbursement. In addition to the cost reimbursement, the Company could potentially receive milestone and royalty payments depending on the ultimate success of the research and development activities. Furthermore, a portion of the upfront fee incentivizes SAMR to exercise the options. The manufacturing rights option grants an additional license to SAMR for no additional consideration after it has met the requirements to exercise the option. The Company considers this license valuable and would expect to be compensated accordingly in a standalone transaction. Furthermore, the Company’s valuation of these options indicate they had significant value on the agreement date. The Company determined that the above described research and development option and manufacturing rights options do constitute material rights to the customer. The Company is also entitled to additional payments from SAMR of up to $42.5 million, conditioned upon the achievement of specified milestones related to the completion of certain trials and regulatory approvals as defined in the License Agreement. Further, SAMR will pay the Company royalty payments ranging between 4% to 6% on net sales of licensed products, except for AR-301, AR-105 and AR-101 products in the EU, should such be authorized at a later date, which would require payment of 20% royalties on the net sales of those products, as defined in the License Agreement. The Company concluded that these milestones and royalty payments each contain a significant uncertainty associated with a future event. As such, these milestone and royalty payments are constrained at contract inception and are not included in the transaction price as the Company could not conclude that it is probable a significant reversal in the amount of cumulative revenue recognized will not occur surrounding these payments. At the end of each reporting period, the Company will update its assessment of whether the milestone and royalty payments are constrained by considering both the likelihood and magnitude of the potential revenue reversal. At December 31, 2019, the Company performed an assessment and determined that these milestone and royalty payments are constrained. The Company determined that the transaction price under the License Agreement was $19.6 million, consisting of the $15 million from upfront payments under the License Agreement and approximately $4.6 million from the equity allocation as noted above, which was allocated among the performance obligations and material promises based on their respective related SSP. The Company allocated the $19.6 million transaction price to the following: approximately $14.5 million to the licenses and know-how; approximately $79,000 to the development support services; approximately $892,000 to the research and development option; and approximately $4.1 million to the manufacturing rights option. The Company determined that the intellectual property licensed under the License Agreement represents functional intellectual property and it has significant standalone functionality and therefore should be recognized at a point in time upon satisfying the performance obligations. The Company will satisfy the performance obligations upon transfer of the licenses and know-how to SAMR, and expects to satisfy these performance obligations by June 30, 2021. The Company determined that no performance obligations or material promises were satisfied as of December 31, 2020, and therefore, no revenue related to the License Agreement was recognized for the years ended December 31, 2020 and 2019. The Company has recorded contract liabilities resulting from the License Agreement of approximately $18.7 million and $14.6 million to deferred revenue, current, and approximately $854,000 and $5.0 million to deferred revenue, noncurrent, on its consolidated balance sheets at December 31, 2020 and 2019, respectively. The Company capitalized a contract asset resulting from the License Agreement of approximately $2.1 million related to the incremental costs of obtaining the License Agreement on its consolidated balance sheets, of which approximately $2.0 million and $1.5 million is classified as current, and approximately $90,000 and $526,000 is classified as noncurrent, as of December 31, 2020 and 2019, respectively.

Paycheck Protection Program Loa

Paycheck Protection Program Loan	12 Months Ended
	Dec. 31, 2020
Paycheck Protection Program Loan
Paycheck Protection Program Loan	7. Paycheck Protection Program Loan The Company applied for and received a loan, which is in the form of a note dated May 1, 2020, from Silicon Valley Bank (“SVB”) in the aggregate amount of approximately $715,000 (the “Loan”), pursuant to the Paycheck Protection Program (the “PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest may be forgiven as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the covered period. The Loan is payable over two years at an interest rate of 1% per annum, with an estimated deferral of payments until mid-2021. The Company is required to pay principal and interest on the Loan in equal monthly installments estimated to begin in mid-2021 and the outstanding interest balance accrued during the deferral period is to be paid on the maturity date, which is May 1, 2022. The Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Loan contains events of default (as defined in the PPP Loan agreement), in which the occurrence could result in the acceleration of all amounts due under the Loan. As of December 31, 2020, there were no events of default under the PPP Loan. The Company believes in good faith that it met the loan forgiveness eligibility requirements of the PPP Loan. The Company’s Loan forgiveness application was submitted to the Small Business Administration (“SBA”) in October 2020 and the Company expects to meet the forgiveness criteria. Since the forgiveness of the Loan is outside the Company’s control, the Company has accounted for its PPP Loan as debt. If the PPP Loan is ultimately forgiven and the Company is legally released from being the Loan’s primary obligor, the extinguishment of the liability will be recognized in the Company’s consolidated statement of operations as an extinguishment of debt gain. At December 31, 2020, the Company recognized the entire amount of the PPP Loan proceeds of approximately $715,000 as a note payable, approximately $439,000 as current and $276,000 as noncurrent, in its condensed consolidated balance sheets. For the year ended December 31, 2020, the Company recognized approximately $5,000 in interest expense in its consolidated statements of operations. Future payments on the Loan as of December 31, 2020, if the Loan is not forgiven, are as follows (in thousands): Year ending December 31, 2021 442 2022 284 Total minimum payments 726 Less amount representing interest (11) Loan, gross $ 715

Warrants

Warrants	12 Months Ended
	Dec. 31, 2020
Warrants
Warrants	8 . Warrants Common Stock Warrant Expense In November 2015, an engagement letter was effectuated with the Company’s former Vice Chairman of the Board of Directors. Under the terms of the engagement, upon being appointed the Company’s Vice Chairman and the closing of a minimum of $25 million in gross proceeds from sales of its Series A convertible preferred stock under a private placement memorandum, the Vice Chairman would receive 234,860 common stock warrants. On December 12, 2016, both of the aforementioned conditions had been met and the Company issued 234,860 common stock warrants at an exercise price of $14.50 per share. The fair value of the warrants was determined using a Monte Carlo simulation method which calculates the estimated value based on running numerous simulations and analyzing the various outcomes. The total fair value of the award was approximately $661,000 and was being amortized over a five-year vesting period. On August 13, 2019, this board member was not up for re-election at the annual shareholder’s meeting, therefore the vesting of the common stock warrants ceased on August 13, 2019 resulting in the cancellation of 109,601 unvested warrants. For the year ended December 31, 2019, the Company recorded stock-based compensation expense of approximately $82,000 related to these warrants. For the year ended December 31, 2020, the Company did not record any stock-based compensation expense related to these warrants. Warrants Issued in Private Placement In October 2020, the Company entered into a Securities Purchase Agreement (the “October 2020 Purchase Agreement”) in which the Company agreed to offer, issue and sell (i) in a registered direct offering, an aggregate of 1,134,470 shares (the “Shares”) of common stock, par value $0.0001 per share (“Common Stock”) and (ii) in a concurrent private placement, Series A warrants (the “Series A Warrants”) and Series B warrants (the “Series B Warrants” and collectively, with the Series A Warrants, the “Warrants”) to purchase up to an aggregate 567,234 shares (the “Warrant Shares”) of common stock, for aggregate gross proceeds to the Company of approximately $8.5 million, and after deducting commissions and offering costs, net proceeds were approximately $7.8 million (See Note 9). The combined purchase price for each Share, together with one Series A Warrant and one Series B Warrant, is $7.4925. The Series A Warrants have an exercise price of $7.43 per share, are exercisable six months from the date of issuance, and expire three and a half years from the date they become exercisable. The Series B Warrants have an exercise price of $9.00 per share, are exercisable six months from the date of issuance, and expire three and a half years from the date they become exercisable. In addition, the Series B Warrants are redeemable by the Company at $0.01 per share upon the price of the Company’s common stock closing at $9.00 or more over five (5) consecutive trading days. The exercise price of the Warrants and Warrant Shares are subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described in the Series A Warrants and Series B Warrants. Each of the Series A Warrants and the Series B Warrants may be exercised on a “cashless” basis under certain circumstances set forth in the Warrants. The Company measured the fair value of the Common Stock Shares based on the Company’s closing stock price on the date the October 2020 Purchase Agreement was entered into and the fair value of the Warrant Shares was based upon a Black-Scholes valuation. The Black-Scholes valuation used the following assumptions: expected term of four years, expected volatility of 104%, risk-free interest rate of 0.25%, and dividend yield of 0%. The Company used the relative fair value method to allocate the net proceeds received from the sale of the Common Stock Shares and the Warrants Shares of approximately $7.8 million. The Company recorded approximately $5.8 million and $2.0 million, which represented the relative fair value of the Common Stock Shares and Warrant Shares, respectively, to stockholders’ equity (deficit) within the Company’s consolidated balance sheet.

Common Stock

Common Stock	12 Months Ended
	Dec. 31, 2020
Common Stock
Common Stock	9. Common Stock As of December 31, 2020, the Company had reserved the following common stock for future issuance: Shares reserved for exercise of outstanding warrants to purchase common stock 2,052,128 Shares reserved for exercise of outstanding options to purchase common stock 1,550,956 Shares reserved for issuance of future options 584,161 Total 4,187,245 Private Placement In July 2019, the Company and SIBV, entered into an option agreement which granted SIBV the option to license multiple programs from the Company and access the Company’s MabIgX® platform technology for asset identification and selection. In connection with the option agreement, SIBV made an equity investment whereby the Company issued 801,820 shares of its restricted common stock to SIBV in a private placement for total gross proceeds of $10 million, and after deducting commissions and offering costs of approximately $816,000, the net proceeds were approximately $9.2 million. Under the arrangement, the Company did not register the common stock purchased by SIBV with the Securities and Exchange Commission and has no contractual obligation to register the shares. Therefore, the common stock is subject to restrictions on transfer, including but not limited to a minimum holding period of at least six months. In September 2019, the Company entered into a License Agreement with SAMR, a wholly owned subsidiary of SIBV. See Note 6 for details of the License Agreement. Given the equity investment by SIBV was negotiated with the option agreement, which then resulted in the execution of the License Agreement, all arrangements were evaluated as a single agreement and amounts were allocated to the elements of the arrangement based on their fair value. The Company measured the fair value of the restricted common stock issued to SIBV based upon a Black-Scholes valuation to measure the lack of marketability discount. The Black-Scholes valuation used the following assumptions: expected term of one year, expected volatility of 84%, risk-free interest rate of 1.94%, and dividend yield of 0%. The Company allocated the net proceeds received from the sale of the restricted common stock and upfront payment from the License Agreement of approximately $22.5 million (see Note 6 for details of allocation). The Company recorded approximately $5.0 million, which represented the fair value of the restricted common stock issued of $5.4 million, net of $441,000 of issuance costs, to stockholders’ equity within the Company’s consolidated balance sheet. ATM Agreement In September 2019, the Company entered into a Common Stock Sales Agreement (the “ATM Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) under which the Company may offer and sell, from time to time, at its sole discretion, shares of common stock having an aggregate offering price of up to $25.0 million through Cantor as our sales agent. The Company’s registration statement on Form S-3 contemplated under the ATM Agreement was declared effective by the SEC on September 5, 2019. The registration statement on Form S-3 includes a base prospectus covering the offering of up to $100 million in aggregate shares of securities as defined within the prospectus and a prospectus supplement of up to a maximum aggregate offering of $25 million in common stock in accordance with the ATM Agreement. Cantor may sell common stock under the ATM Agreement by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended (the "Securities Act"), including without limitation sales made by means of ordinary brokers’ transactions on the Nasdaq Global Market or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise directed by the Company. Cantor will use commercially reasonable efforts to sell the common stock from time to time, based upon instructions from the Company (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company will pay Cantor a commission of up to three percent (3.0%) of the gross sales proceeds of any common stock sold through Cantor under the ATM Agreement, and also has provided Cantor with customary indemnification rights. The Company is not obligated to make any sales of common stock under the ATM Agreement. The offering of shares of common stock pursuant to the ATM Agreement will terminate upon the earlier of (i) the sale of all common stock subject to the ATM Agreement, or (ii) termination of the ATM Agreement in accordance with its terms. As a result of the limitations of General Instruction I.B.6 of Form S-3, and in accordance with the terms of the ATM Agreement, the Company filed a prospectus supplement on May 14, 2020 that registered the offer and sale of shares of its common stock having an aggregate offering price of up to $22.0 million from time to time through Cantor. As of December 31, 2020, the Company had sold 7,883 shares of common stock under the ATM Agreement for gross proceeds of approximately $64,000, and after deducting commissions, net proceeds were approximately $62,000. As of December 31, 2019, the Company had not sold any shares of common stock under the ATM Agreement. Securities Purchase Agreement In October 2020, the Company entered into the October 2020 Purchase Agreement with certain institutional investors (the “Purchasers”), pursuant to which the Company agreed to offer, issue and sell to the Purchasers, (i) in a registered direct offering, an aggregate of 1,134,470 shares of common stock, par value $0.0001 per share and (ii) in a concurrent private placement, Series A warrants and Series B warrants to purchase up to an aggregate 567,234 shares of Common Stock, for aggregate gross proceeds to the Company of approximately $8.5 million, and after deducting commissions and offering costs, net proceeds were approximately $7.8 million (see Note 8). In October 2020, the Company paid Arcadia Securities, LLC a fee equal to 3.5% of the aggregate purchase price of the shares of its common stock sold in the offering to certain of the investors. In addition, in October 2020, the Company paid Cantor Fitzgerald & Co. a fee equal to 3.5% of the aggregate purchase price of the shares of its common stock sold in the offering.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2020
Stock-Based Compensation
Stock-Based Compensation	10. Stock-Based Compensation Equity Incentive Plan In May 2014, the Company adopted and the shareholders approved the 2014 Equity Incentive Plan (the 2014 Plan). Under the 2014 Plan, 233,722 shares of the Company’s common stock were initially reserved for the issuance of stock options to employees, directors, and consultants, under terms and provisions established by the Board of Directors. Under the terms of the 2014 Plan, options may be granted at an exercise price not less than fair market value. For employees holding more than 10% of the voting rights of all classes of stock, the exercise prices for incentive stock options may not be less than 110% of fair market value, as determined by the Board of Directors. The terms of options granted under the 2014 Plan may not exceed ten years. In addition, the 2014 Plan contains an “evergreen” provision allowing for an annual increase in the number of shares of our common stock available for issuance under the 2014 Plan on the first day of each fiscal year beginning in fiscal year 2015. The annual increase in the number of shares shall be equal to the greater of: · 77,908 shares of our common stock; or · such number of shares as is equal to the number of shares sufficient to cause the option pool to equal 20% of the issued and outstanding common stock of the Company, provided, however, that if on any calculation date the number of shares equal to 20% of the total issued and outstanding shares of common stock is less than the number of shares of common stock available for issuance under the 2014 Plan, no change will be made to the aggregate number of shares of common stock issuable under the 2014 Plan for that year (such that the aggregate number of shares of common stock available for issuance under the 2014 Plan will never decrease). In June 2020, the adoption of an amendment to the 2014 Plan to eliminate the evergreen provision and set the number of shares of common stock reserved for issuance thereunder to 2,183,692 shares was approved by the Company’s stockholders. The additional shares reserved in the below stock option activity table includes 162,736 shares reserved pursuant to the evergreen provision and 400,000 shares reserved pursuant to the amendment to the 2014 Plan. Stock Options The number of shares, terms, and vesting periods are determined by the Company’s Board of Directors or a committee thereof on an option by option basis. Options generally vest ratably over service periods of up to four years and expire ten years from the date of grant. Stock option activity for the year ended December 31, 2020 is represented in the following table: Options Outstanding Shares Weighted- Available Number of Average for Grant Shares Exercise Price Balances at December 31, 2019 196,982 1,380,312 $ 10.06 Additional shares reserved 562,736 — — Options granted (207,155) 207,155 5.89 Options exercised — (4,913) 2.89 Options cancelled 31,598 (31,598) 14.65 Balances at December 31, 2020 584,161 1,550,956 $ 9.43 Additional information related to the status of options as of December 31, 2020 is summarized as follows: Weighted- Weighted- Average Average Number of Exercise Contractual Aggregate Options Price Term (Years) Intrinsic Value (in thousands) Options outstanding 1,550,956 $ 9.43 7.38 $ 649,681 Options vested and exercisable 959,576 $ 10.08 6.68 $ 563,191 The Company estimated the fair value of options using the BSM option valuation model. The fair value of options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of the options granted during the years ended December 31, 2020 and 2019 were estimated using the following assumptions: Year Ended December 31, 2020 2019 Expected term (in years) 6.00 6.25 Expected volatility 84% - 100% 79% - 95% Risk-free interest-rate 0.38% - 1.73% 1.59% - 2.67% Dividend yield 0% 0% During the years ended December 31, 2020 and 2019, the Company granted options to purchase 207,155 and 620,457 shares with a weighted-average grant date fair value of $4.72 and $5.91 per share, respectively. There were 4,913 and 11,884 options exercised during the years ended December 31, 2020 and 2019, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2020 and 2019 was approximately $17,000 and $51,000, respectively. Stock-Based Compensation The following table presents stock-based compensation expense related to stock options (in thousands): Twelve Months Ended December 31, 2020 2019 Research and development $ 590 $ 662 General and administrative 1,538 1,266 Total $ 2,128 $ 1,928 As of December 31, 2020, total unrecognized stock-based compensation expenses related to unvested stock options was approximately $3.5 million, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.08 years.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	11. Income Taxes The Company has accumulated net losses since inception and has not recorded an income tax provision or benefit during the years ended December 31, 2020 and December 31, 2019. A reconciliation between the statutory U.S. federal rate and the Company’s effective tax rate is as follows (in thousands): Years Ended December 31, 2020 2019 Federal income tax at statutory rate $ (4,690) $ (6,233) State income tax, net of federal benefit (36) (1,293) Foreign tax differential 1,906 2,346 State rate change 287 — Permanent differences 1,088 394 Tax credits (649) (976) Fin 48 reserve 162 244 Other (92) 840 Valuation allowance change 2,024 4,678 $ — $ — Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets (in thousands) are as follows: Years Ended December 31, 2020 2019 Net operating loss carryforwards $ 14,793 $ 14,519 Accruals and reserves 39 341 Stock based compensation 1,153 951 Research and development credits 2,021 1,534 Deferred revenue 1,338 — Depreciation and amortization (9) (34) Total 19,335 17,311 Valuation allowance (19,335) (17,311) Net deferred tax assets $ — $ — A reconciliation of the beginning and ending amount of the Company’s liability for uncertain tax positions (in thousands) is as follows: Years Ended December 31, 2020 2019 Balance at the beginning of the year $ 534 $ 486 Increase based on current year tax positions 171 254 Decrease for prior year tax positions — (206) Balance at the end of the year $ 705 $ 534 Due to the existence of the valuation allowance, future changes in the Company’s liability for uncertain tax positions will not impact the Company’s effective tax rate. The Company does not anticipate that there will be a substantial change in its liability for uncertain tax positions in the next twelve months. Tax Legislation subjects a U.S. shareholder to tax on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI in the year the tax is incurred. The Company has a GILTI inclusion of $4.2 million in 2020. Based on the available objective evidence, management believes it is more-likely-than-not that the deferred tax assets were not fully realizable as of December 31, 2020 and 2019. Accordingly, the Company has established a full valuation allowance against its deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2020 and 2019 was approximately $2.0 million and $4.7 million, respectively. At December 31, 2020, the Company had federal net operating loss carryforwards of approximately $19.5 million that begin to expire in 2034. The Company also has federal net operating losses of approximately $33.1 million that arose after the 2017 tax year and will carryforward indefinitely. The Company has state net operating loss carryforwards of approximately $53.6 million that will begin to expire in 2034. At December 31, 2020, the Company has research credit carryforwards of approximately $2.2 million and approximately $607,000 for federal and California state income tax purposes, respectively. The federal credits begin to expire in 2034 and the state credits can be carried forward indefinitely. Under the Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company’s net operating loss and research tax credit carryforwards to offset taxable income may be limited based on cumulative changes in ownership. The Company has not completed an analysis to determine whether any such limitations have been triggered as of December 31, 2020. The Company has no income tax affect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets. Any annual limitation may result in the expiration of net operating losses and credits before utilization. The Company may continue to experience ownership changes in the future as a result of the Company’s future expected equity financings and subsequent shifts in its stock ownership, some of which may be outside of its control. The Company is subject to taxation in the United States, California, the Netherlands and China. The Company remains subject to possible examination by tax authorities in these jurisdictions for tax years dating back to 2014. The Company became subject to taxation in Maryland and North Carolina starting tax year 2020. The Company does not have any pending tax examinations.

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2020
Related Parties
Related Parties	12. Related Parties Joint Venture On February 11, 2018, the Company entered into a Joint Venture (“JV”) Agreement with Hepalink which is a related party and principal shareholder in the Company, pursuant to which the Company formed a JV Entity for developing and commercializing products for infectious diseases in the greater China territories. It was agreed by the parties that the Company shall be reimbursed for certain legal and contract manufacturing expenses related to the clinical drug supply for a Phase 3 clinical study of AR-301 and the clinical drug supply for a clinical study of AR-105. For the years ended December 31, 2020 and 2019, the Company recorded approximately $188,000 and $1.5 million, respectively, as a reduction to operating expenses in the consolidated statements of operations for amounts reimbursed to the Company by the JV Entity under this arrangement. As of December 31, 2020 and 2019, the Company recorded approximately $3,000 and $152,000, respectively, in other receivables on the consolidated balance sheets for amounts owed to the Company by the JV Entity under this arrangement and the Company expects the amounts to be collectable and as a result, no reserve for uncollectability was established. Serum International B.V. In July 2019, the Company issued 801,820 shares of its restricted common stock in a private placement to Serum International B.V. (“SIBV”), an affiliate of Serum Institute of India Private Limited, for total gross proceeds of $10 million (see Note 9). As a result of this transaction, SIBV and its affiliates, are considered related parties to the Company. In September 2019, the Company and Serum AMR Products (“SAMR”), a party under common ownership of SIBV, entered into a License, Development and Commercialization Agreement (the “ License Agreement”)(see Note 6). The Company determined that no performance obligations were satisfied as of December 31, 2020 and 2019. Therefore, no revenue related to the License Agreement was recognized during the years ended December 31, 2020 and 2019. The Company has recorded contract liabilities resulting from the License Agreement of approximately $18.7 million and $14.6 million to deferred revenue, current, and approximately $854,000 and $5.0 million to deferred revenue, noncurrent, on its consolidated balance sheets at December 31, 2020 and 2019, respectively. The Company capitalized a contract asset resulting from the License Agreement of approximately $2.1 million related to the incremental costs of obtaining the License Agreement on its consolidated balance sheets, of which approximately $2.0 million and $1.5 million is classified as current, and approximately $90,000 and $526,000 is classified as noncurrent, as of December 31, 2020 and 2019, respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	13. Commitments and Contingencies Facility Lease The Company leased office and lab space in San Jose, California under an operating lease arrangement which terminated in December 2020. In October 2020, the Company entered into a new lease agreement (the “Lease Agreement”) with Boccardo Corporation (the “Landlord”) pursuant to which the Company leased approximately 15,129 square feet of office and laboratory space in Los Gatos, California. In December 2020, the Company moved into the new facility which serves as the Company’s corporate headquarters. The lease represents additional space for the Company’s headquarters as compared to its prior lease. The lease commenced in December 2020 and has an approximate five year term with a three year renewal option. Rental payments by the Company commence on February 1, 2021. In connection with the Lease Agreement, the Company was required to deliver a security deposit in the form of a letter of credit of $500,000 to the Landlord. The future minimum lease payments for the new facility as of December 31, 2020 are as follows (in thousands): Year ending December 31, 2021 $ 542 2022 610 2023 628 2024 646 2025 666 Thereafter 57 Total $ 3,149 Rent expense was approximately $529,000 and $341,000 for the years ended December 31, 2020 and 2019, respectively. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may incur charges in the future as a result of these indemnification obligations. License Agreements The Company has entered into various collaboration and licensing agreements that provide it with access to certain technology and patent rights. Under the terms of the agreements, the Company may be required to make milestone payments upon achievement of certain development and regulatory activities. See further disclosure related to these agreements in Note 4. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of December 31, 2020 and 2019, no accruals have been made related to commitments and contingencies. From time to time, the Company may be involved in various legal proceedings, claims and litigation arising in the ordinary course of business. See below Legal Proceedings for legal complaints filed during the year ended December 31, 2020. As of December 31, 2019, there were no pending legal proceedings. Legal Proceedings A complaint was filed in February 2020 in the New York State Supreme Court against the Company by an investor who invested in the Company’s preferred stock in July 2017 prior to the Company’s IPO in August 2018. The complaint alleges, among other things, that the Company breached its contract and fiduciary duty, by not issuing additional securities to the investor as a result of the Company’s IPO. The plaintiff is asking for approximately $277,000 in compensatory damages. The parties are currently in fact discovery. The Company believes that the claims in this complaint are without merit and intends to defend vigorously against them. Grant Income The Company receives various grants that are subject to audit by the grantors or their representatives. Such audits could result in requests for reimbursement for expenditures disallowed under the terms of the grant; however, management believes that these disallowances, if any, would be immaterial. Cystic Fibrosis Foundation Agreement In December 2016, the Company received an award for up to $2.9 million from the CFF to advance research on potential drugs utilizing inhaled gallium citrate anti-infective. In November 2018, the CFF increased the award to $7.5 million. Under the award agreement, the CFF will make payments to the Company as certain milestones are met. The award agreement also contains a provision whereby if the Company spends less on developing a potential drug utilizing inhaled gallium citrate anti-infective than the Company actually receives under this award agreement, the Company will be required to return the excess portion of the award to the CFF. At the end of any reporting period, if the Company determines that the cumulative amount spent on this program is less than the cumulative cash received from the CFF, the Company will record the excess amount received as a liability. No liability related to this excess amount was recorded by the Company as of December 31, 2020 and 2019. In the event that development efforts are successful and the Company commercializes a drug from these related development efforts, the Company will be subject to paying to CFF a one-time amount over time equal to nine times the actual net award received from CFF. Such amount shall be paid in not more than five annual installments, as follows: within ninety days of the end of the calendar year in which the first commercial sale occurs, and within ninety days of the end of each subsequent calendar year until the net amount received from CFF is repaid. The Company shall pay 15% of net sales for that calendar year up to the amount of the net award received from CFF (except that in the fifth installment, if any, the Company shall pay the remaining unpaid portion of the net award received from CFF). In the event that the Company licenses rights to the product in the field to a third-party, sells the product, or consummates a change of control transaction prior to the first commercial sale, the Company shall pay to CFF an amount equal to 15% of the amounts received by the Company and its shareholders in connection with such disposition (whether paid upfront or in accordance with subsequent milestones and whether paid in cash or property) up to nine times the actual net award received from CFF. The payment shall be made within sixty days after the closing of such a transaction. In the event that the development efforts are delayed, which result from events within the Company’s control, for more than one hundred eighty (180) consecutive days at any time before the first commercialization of the drug from the related development efforts, the CFF may provide an interruption notice to the Company, or in lieu of the interruption license, pay to the CFF an amount greater than two times the award received plus interest up to the time of such election. The Company then has thirty (30) days to respond to such notice. If the Company does not respond within thirty (30) days, an interruption license shall be effective. The interruption license to the CFF is an exclusive, worldwide license under the development program technology to manufacture, have manufactured, license, use, sell, offer to sell, and support the product in the field and includes financial conditions for both parties. None of these events have occurred as of December 31, 2020.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events
Subsequent Events	14. Subsequent Events Licensing Agreement The Company entered into a non-exclusive manufacturing licensing agreement with the Broad Institute of MIT and Harvard (the "Broad Institute") in 2021 to make and manufacture CRISPR Modified Cell Lines, CRISPR Modified Animals and CRISPR Modified Plants. These license rights permit the non-exclusive use of the CRISPR Technology for the creation of and improvement of yield from protein and mAb production cell lines, which is one of the core components of the λ PEX TM mAb discovery and manufacturing production technology. Pursuant to this agreement, the Company is obligated to pay to the Broad Institute an issue fee of $25,000, an annual license maintenance fee of $50,000 in 2022, and fees of $100,000 in 2023 and each year thereafter. Additionally, the Company is obligated to pay a royalty of a single digit percentage of all service income received from a customer for the manufacture, sale or transfer of CRISPR modified cell line, CRISPR Modified Animals and CRISPR Modified Plants or end products, as well as a small royalty (a fraction of a percent) on end product net sales from use of any commercialized product that contains any small or large molecule made through the use of a CRISPR modified cell line, CRISPR Modified Animals and CRISPR Modified Plants. The term of the license agreement continues until all patents and filed patent applications, included within the licensed Broad Institute patents, have expired or been abandoned. Licensing and Product Discovery Agreement The Company entered into an out-licensing and product discovery agreement with Kermode Biotechnologies, Inc. (“Kermode”). Kermode works on vaccines and mAbs for zoonotic viruses, which are animal viruses that have the ability to infect humans. Under the terms of this agreement, the activities of each party and the products discovered using the Company’s λ PEX TM platform are structured as follow: Kermode will fund for one year the discovery of product candidates for African Swine Fever Virus (ASFV) based on its novel treatment strategy, with an option for swine influenza virus (SIV) and retains exclusive rights to mAbs and vaccines for veterinary uses discovered in the collaboration; and the Company to grant a non-exclusive license of its λ PEX TM technology and apply the λ PEX TM technology platform to discover vaccines and mAbs to ASFV and the Company exclusively retains rights to any products for human uses discovered in the collaboration. Pursuant to the agreement, the Company received $500,000 in March 2021 from Kermode upon agreement by both parties of a statement of work. Securities Purchase Agreement In March 2021, the Company entered into a Securities Purchase Agreement with certain institutional and individual investors, pursuant to which the Company agreed to offer, issue and sell to these investors, in a registered direct offering, an aggregate of 1,037,405 shares of the Company's Common Stock for aggregate gross proceeds to the Company of approximately $7.0 million, before deducting estimated offering expenses payable by the Company. In addition, in March 2021 the Company issued 124,789 shares of unregistered Common Stock to the Purchasers in the Company's October 2020 offering pursuant to the anti-dilutive provisions of the October 2020 Purchase Agreement (see Note 8 and 9).

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Such estimates include those related to the evaluation of our ability to continue as a going concern, best estimate of standalone selling price of revenue deliverables, useful life of long-lived assets, classification of deferred revenue, income taxes, assumptions used in the Black-Scholes-Merton (“BSM”) model to calculate the fair value of stock-based compensation, deferred tax asset valuation allowances, and preclinical study and clinical trial accruals. Actual results could differ from those estimates.
Concentrations	Concentrations Credit Risk The Company’s cash and cash equivalents are maintained at financial institutions in the United States of America. Deposits held by these institutions may exceed the amount of insurance provided on such deposits. Customer Risk For the years ended December 31, 2020 and 2019, one customer accounted for 100% of total revenue. This customer is located in the United States. As of December 31, 2020 and 2019, there were no accounts receivable.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist primarily of checking account and money market fund account balances. The following table provides a reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets which, in aggregate, represent the amount reported in the consolidated statements of cash flows (in thousands): Year Ended December 31, 2020 2019 Cash and cash equivalents $ 8,232 $ 20,897 Restricted cash 500 — Total cash, cash equivalents and restricted cash $ 8,732 $ 20,897 Restricted cash consists of deposits for a letter of credit that the Company has provided to secure its obligations under its facility lease.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company considers the credit worthiness of its customers but does not require collateral in advance of a sale. The Company evaluates collectability and maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio when necessary. The allowance is based on the Company’s best estimate of the amount of losses in the Company’s existing accounts receivable, which is based on customer creditworthiness, facts and circumstances specific to outstanding balances, and payment terms. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2020 and 2019, there were no allowances for doubtful accounts.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets, generally between three and five years for lab equipment and computer equipment and software, and over the shorter of the lease term or useful life for leasehold improvements. Maintenance and repairs are charged to expense as incurred, and costs of improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in the consolidated statement of operations in the period realized.
Intangible Assets	Intangible Assets Intangible assets are recorded at cost and amortized over the estimated useful life of the asset. Intangible assets consist of licenses with various institutions whereby the Company has rights to use intangible property obtained from such institutions.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount to the future undiscounted net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured by the excess of the carrying amount of the assets over fair value less the costs to sell the assets, generally determined using the projected discounted future net cash flows arising from the asset. There have been no such impairments of long-lived assets as of December 31, 2020 and 2019.
Revenue Recognition	Revenue Recognition The Company recognizes revenue based on Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), which applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. See Note 6 for details of the development and license agreements. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue at a point in time, or over time, as the entity satisfies performance obligations. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. As part of the accounting for customer arrangements, the Company must use judgment to determine: a) the number of performance obligations based on the determination under step (ii) above; b) the transaction price under step (iii) above; and c) the standalone selling price for each performance obligation identified in the contract for the allocation of the transaction price in step (iv) above. The Company uses judgment to determine whether milestones or other variable consideration should be included in the transaction price. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. In developing the standalone price for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. The Company recognizes revenue as or when the performance obligations under the contract are satisfied. The Company receives payments from its customers based on payment schedules established in each contract. The Company records any amounts received prior to satisfying the revenue recognition criteria as deferred revenue on its consolidated balance sheets. Amounts recognized as revenue, but not yet received or invoiced are recorded within other receivables on the consolidated balance sheet. Amounts are recorded as other receivables on the consolidated balance sheet when our right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of a majority of the promised goods or services to the customer will be one year or less. Contract Assets The incremental costs of obtaining a contract under ASC 606 (i.e. costs that would not have been incurred if the contract had not been obtained) are recognized as an asset in the Company’s consolidated balance sheets if the Company expects to recover them (see Note 6). Capitalized costs will be amortized to the respective expenses using a systematic basis that mirrors the pattern in which the Company transfers control of the goods and service to the customer. At each reporting date, the Company determines whether or not the capitalized costs to obtain a contract are impaired by comparing the carrying amount of the asset to the remaining amount of consideration that the Company received and expects to receive less the costs that relate to providing services under the relevant contract. For the years ended December 31, 2020 and 2019, there was no amortization of the contract assets and there have been no impairments as of December 31, 2020. Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria, or in which the Company has an unconditional right to payment, are recorded as deferred revenue in the Company’s consolidated balance sheets. The Company has estimated the classification between current and noncurrent deferred revenue related to the respective license agreement within its consolidated balance sheets at December 31, 2020 and 2019 (see Note 6).
Research and Development	Research and Development Research and development costs are expensed to operations as incurred. Our research and development expenses consist primarily of: · salaries and related overhead expenses, which include stock-based compensation and benefits for personnel in research and development functions; · fees paid to consultants and contract research organizations, or CROs, including in connection with our preclinical studies and clinical trials and other related clinical trial fees, such as for investigator grants, patient screening, laboratory work, clinical trial material management and statistical compilation and analyses; · costs related to acquiring and manufacturing clinical trial materials; · costs related to compliance with regulatory requirements; and · payments related to licensed products and technologies. Costs for certain development activities are recognized based on an evaluation of the progress to completion of specific tasks using information and data provided to us by our vendors and clinical sites. Nonrefundable advance payments for goods or services to be received in future periods for use in research and development activities are deferred and capitalized. The capitalized amounts are then expensed as the related goods are delivered or when the services are performed.
Stock-Based Compensation	Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair values, which the Company determines using the BSM option pricing model, on a straight-line basis over the requisite service period for the award. The Company accounts for forfeitures as they occur. The BSM option pricing model incorporates various highly sensitive assumptions, including the fair value of our common stock, expected volatility, expected term and risk-free interest rates. The weighted average expected life of options was calculated using the simplified method as prescribed by the SEC’s Staff Accounting Bulletin, Topic 14 (“SAB Topic 14”). This decision was based on the lack of relevant historical data due to our limited historical experience. In addition, due to our limited historical data, the estimated volatility also reflects the application of SAB Topic 14, incorporating the historical volatility of comparable companies whose stock prices are publicly available. The risk-free interest rate for the periods within the expected term of the option is based on the U.S. Treasury yield in effect at the time of grant. The dividend yield was zero, as we have never declared or paid dividends and have no plans to do so in the foreseeable future.
Income Taxes	Income Taxes The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by the relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. At each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available.
Comprehensive Loss	Comprehensive Loss The Company has no items of comprehensive income or loss other than net loss.
Loss Per Share	Loss Per Share Basic loss per share is calculated by dividing net loss for the period by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For the years ended December 31, 2020 and 2019, there is no difference in the number of shares used to compute basic and diluted net loss per share due to the Company’s net loss position. The following tables presents the computation of the basic and diluted net loss per share (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss (basic and diluted) $ (22,333) $ (29,681) Denominator: Weighted-average shares of common stock (basic and diluted) 9,168,744 8,458,277 Basic and diluted net loss per share $ (2.44) $ (3.51) The following potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: Year Ended December 31, 2020 2019 Stock options to purchase common stock 1,550,956 1,380,312 Common stock warrants 2,052,128 1,733,322 3,603,084 3,113,634
JOBS Act Accounting Election	JOBS Act Accounting Election The JOBS Act permits an “emerging growth company” such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We are choosing to take advantage of this provision and, as a result, we will adopt the extended transition period available under the JOBS Act until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided under the JOBS Act.
Recently Issued Accounting Pronouncements not yet adopted as of December 31, 2020	Recently Issued Accounting Pronouncements not yet adopted as of December 31, 2020 Accounting Standards Update 2016-02 and 2018-11 In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) . In July 2018, the FASB issued ASU 2018-10, Codification Improvements to ASC 842, Leases , which provides clarification to ASU 2016-02. These ASUs (collectively, the new lease standard) require an entity to recognize a lease liability and a right-of-use asset on the consolidated balance sheet for leases with lease terms of more than twelve months. Lessor accounting is largely unchanged, while lessees will no longer be provided with a source of off-balance sheet financing. Initial guidance required the adoption of the new lease standard using the modified retrospective transition method. In July 2018, the FASB issued ASU 2018-11, Leases (ASC 842) — Targeted Improvements , which allows entities to elect an optional transition method where entities may continue to apply the existing lease guidance during the comparative periods and apply the new lease requirements through a cumulative effect adjustment in the period of adoptions rather than in the earliest period presented. In March 2019, FASB issued ASU 2019-01, Codification improvements , which provides clarification on implementation issued associated with adopting ASU 2016-02. ASU 2019-01 enhances the guidance in ASC 842 surrounding the fair value of underlying assets for lessors, presentation of sales-type and direct financing leases on the consolidated statement of cash flows, and transition guidance surrounding accounting changes and error corrections. This guidance was effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In November 2019, the FASB deferred the effective date for adopting the leasing standard updates for private companies, not-for-profit organizations, and smaller reporting companies. In June 2020, the FASB issued additional deferral guidance that defers the effective date of the leasing standard updates for one year for entities in the “all other” category and public not-for-profit entities that have not yet issued financial statements adopting the standard. The deferrals of the standard are intended to provide relief to nonpublic companies and not-for-profit entities that have had their implementation efforts delayed by the COVID-19 pandemic. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, the new leasing standard updates would be effective for the Company for the year ended December 31, 2022, and all interim periods within the year ended December 31, 2023. Early adoption is permitted. While the Company continues to review its current accounting policies and practices to identify potential differences that would result from applying the new guidance, the Company expects that its non-cancellable operating lease commitments with a term of more than twelve months will be subject to the new guidance and recognized as right-of-use assets and operating lease liabilities on the Company’s consolidated balance sheets upon adoption. The Company expects to elect transitional practical expedients such that the Company will not need to reassess whether contracts are leases and will retain lease classification and initial direct costs for leases existing prior to the adoption of the new lease standard. Accounting Standards Update 2016-13 In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments — Credit Losses (ASC 326) ”, which is intended to provide financial statement users with more useful information about expected credit losses on financial assets held by a reporting entity at each reporting date. The new standard replaces the existing incurred loss impairment methodology with a methodology that requires consideration of a broader range of reasonable and supportable forward-looking information to estimate all expected credit losses. For public business entities, ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2020. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASU 2016-13 is effective for the Company for the fiscal year ending on December 31, 2022, and all interim periods within. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 to have a material impact on the Company's consolidated financial statements and disclosures. Accounting Standards Update 2019-12 In December 2019, the FASB issued ASU 2019-12, “ Simplifying the Accounting for Income Taxes (ASC 740) ”, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public entities, the ASU 2019-12 is effective for fiscal years and interim periods within those years beginning after December 15, 2020. As a result of the Company having elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act, ASU 2019-12 is effective for the Company for the fiscal year ending on December 31, 2022, and all interim periods within. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Reconciliation schedule of cash, cash equivalents and restricted cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets which, in aggregate, represent the amount reported in the consolidated statements of cash flows (in thousands): Year Ended December 31, 2020 2019 Cash and cash equivalents $ 8,232 $ 20,897 Restricted cash 500 — Total cash, cash equivalents and restricted cash $ 8,732 $ 20,897
Schedule of computation of the basic and diluted net loss per share	The following tables presents the computation of the basic and diluted net loss per share (in thousands, except share and per share data): Year Ended December 31, 2020 2019 Numerator: Net loss (basic and diluted) $ (22,333) $ (29,681) Denominator: Weighted-average shares of common stock (basic and diluted) 9,168,744 8,458,277 Basic and diluted net loss per share $ (2.44) $ (3.51)
Schedule of potentially dilutive securities were excluded from the computation of diluted net loss per share	Year Ended December 31, 2020 2019 Stock options to purchase common stock 1,550,956 1,380,312 Common stock warrants 2,052,128 1,733,322 3,603,084 3,113,634

Balance Sheet Components (Table

Balance Sheet Components (Tables)	12 Months Ended
	Dec. 31, 2020
Balance Sheet Components
Schedule of property and equipment, net	Property and equipment, net consist of the following (in thousands): December 31, December 31, 2020 2019 Lab equipment $ 2,200 $ 1,804 Computer equipment and software 25 25 Construction in progress 188 — Total property and equipment 2,413 1,829 Less: Accumulated depreciation (1,155) (823) Property and equipment, net $ 1,258 $ 1,006
Schedule of intangible assets, net	Intangible assets, net consist of the following (in thousands): December 31, December 31, 2020 2019 Licenses $ 81 $ 81 Less: Accumulated amortization (54) (49) Intangible assets, net $ 27 $ 32
Schedule of estimated acquired intangible amortization expense	The estimated acquired intangible amortization expense for the next five fiscal years is as follows (in thousands): Year ending December 31, 2021 $ 5 2022 5 2023 5 2024 5 2025 and thereafter 7 Total $ 27
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): December 31, December 31, 2020 2019 Research and development services $ 872 $ 2,709 Payroll related expenses 279 150 Professional services and other 179 115 Accrued liabilities $ 1,330 $ 2,974

Paycheck Protection Program L_2

Paycheck Protection Program Loan (Tables)	12 Months Ended
	Dec. 31, 2020
Paycheck Protection Program Loan
Schedule of future payments on the loan	Future payments on the Loan as of December 31, 2020, if the Loan is not forgiven, are as follows (in thousands): Year ending December 31, 2021 442 2022 284 Total minimum payments 726 Less amount representing interest (11) Loan, gross $ 715

Common Stock (Tables)

Common Stock (Tables)	12 Months Ended
	Dec. 31, 2020
Common Stock
Schedule of company reserved common stock for future issuance	Shares reserved for exercise of outstanding warrants to purchase common stock 2,052,128 Shares reserved for exercise of outstanding options to purchase common stock 1,550,956 Shares reserved for issuance of future options 584,161 Total 4,187,245

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2020
Stock-Based Compensation
Schedule of stock option activity	Options Outstanding Shares Weighted- Available Number of Average for Grant Shares Exercise Price Balances at December 31, 2019 196,982 1,380,312 $ 10.06 Additional shares reserved 562,736 — — Options granted (207,155) 207,155 5.89 Options exercised — (4,913) 2.89 Options cancelled 31,598 (31,598) 14.65 Balances at December 31, 2020 584,161 1,550,956 $ 9.43
Schedule of stock-based compensation expense related to stock options	The following table presents stock-based compensation expense related to stock options (in thousands): Twelve Months Ended December 31, 2020 2019 Research and development $ 590 $ 662 General and administrative 1,538 1,266 Total $ 2,128 $ 1,928
Schedule of the status of options	Weighted- Weighted- Average Average Number of Exercise Contractual Aggregate Options Price Term (Years) Intrinsic Value (in thousands) Options outstanding 1,550,956 $ 9.43 7.38 $ 649,681 Options vested and exercisable 959,576 $ 10.08 6.68 $ 563,191
Options
Stock-Based Compensation
Schedule of fair value of the options granted estimated using assumptions	Year Ended December 31, 2020 2019 Expected term (in years) 6.00 6.25 Expected volatility 84% - 100% 79% - 95% Risk-free interest-rate 0.38% - 1.73% 1.59% - 2.67% Dividend yield 0% 0%

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Taxes
Schedule of the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income before income tax	A reconciliation between the statutory U.S. federal rate and the Company’s effective tax rate is as follows (in thousands): Years Ended December 31, 2020 2019 Federal income tax at statutory rate $ (4,690) $ (6,233) State income tax, net of federal benefit (36) (1,293) Foreign tax differential 1,906 2,346 State rate change 287 — Permanent differences 1,088 394 Tax credits (649) (976) Fin 48 reserve 162 244 Other (92) 840 Valuation allowance change 2,024 4,678 $ — $ —
Significant components of deferred tax assets	Significant components of our deferred tax assets (in thousands) are as follows: Years Ended December 31, 2020 2019 Net operating loss carryforwards $ 14,793 $ 14,519 Accruals and reserves 39 341 Stock based compensation 1,153 951 Research and development credits 2,021 1,534 Deferred revenue 1,338 — Depreciation and amortization (9) (34) Total 19,335 17,311 Valuation allowance (19,335) (17,311) Net deferred tax assets $ — $ —
Schedule of reconciliation of the beginning and ending amount of the Company's liability for uncertain tax positions	A reconciliation of the beginning and ending amount of the Company’s liability for uncertain tax positions (in thousands) is as follows: Years Ended December 31, 2020 2019 Balance at the beginning of the year $ 534 $ 486 Increase based on current year tax positions 171 254 Decrease for prior year tax positions — (206) Balance at the end of the year $ 705 $ 534

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Schedule of future minimum lease payments for the new facility	The future minimum lease payments for the new facility as of December 31, 2020 are as follows (in thousands): Year ending December 31, 2021 $ 542 2022 610 2023 628 2024 646 2025 666 Thereafter 57 Total $ 3,149

Description of Business and B_2

Description of Business and Basis of Presentation (Details)	1 Months Ended	12 Months Ended
	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)segmentsubsidiary	Dec. 31, 2019USD ($)
Subsidiaries (in subsidiaries) | subsidiary		2
Operating segments (in segments) | segment		1
Reporting segments (in segments) | segment		1
Gross proceeds		$ 7,949,000	$ 4,958,000
Cash and cash equivalents		$ 8,232,000	$ 20,897,000
Subsequent event
Gross proceeds	$ 7,000,000
Subsequent event | Licensing and Product Discovery Agreement
Proceeds received	$ 500,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Concentrations (Details)	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Summary of Significant Accounting Policies
Accounts receivable	$ 0	$ 0
Contract revenue | Customer risk
Summary of Significant Accounting Policies
Number of customers	1	1
Contract revenue | Customer 1 | Customer risk
Summary of Significant Accounting Policies
Concentration risk percentage	100.00%	100.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 8,232	$ 20,897
Restricted cash	500
Total cash, cash equivalents and restricted cash	$ 8,732	$ 20,897	$ 24,237

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Allowance for doubtful accounts	$ 0	$ 0

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Property and Equipment and Impairment of Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2020
Minimum
Property and Equipment, net
Estimated useful life (in years)	3 years
Maximum
Property and Equipment, net
Estimated useful life (in years)	5 years

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Impairments of long-lived assets	$ 0	$ 0

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Amortization of contract assets	$ 0	$ 0
Impairments of contract assets	$ 0

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Stock-Based Compensation (Details)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Dividend yield (in percent)	0.00%

Summary of Significant Accou_11

Summary of Significant Accounting Policies - Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net loss (basic and diluted)	$ (22,333)	$ (29,681)
Denominator:
Weighted-average shares of common stock (basic and diluted)	9,168,744	8,458,277
Basic and diluted net loss per share	$ (2.44)	$ (3.51)
Potentially dilutive securities excluded from computation of diluted net loss per share	3,603,084	3,113,634
Options
Denominator:
Potentially dilutive securities excluded from computation of diluted net loss per share	1,550,956	1,380,312
Warrants | Common Stock
Denominator:
Potentially dilutive securities excluded from computation of diluted net loss per share	2,052,128	1,733,322

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property and Equipment, net
Total property and equipment	$ 2,413,000	$ 1,829,000
Less: Accumulated depreciation	(1,155,000)	(823,000)
Property and equipment, net	1,258,000	1,006,000
Depreciation expense	332,000	332,000
Lab equipment
Property and Equipment, net
Total property and equipment	2,200,000	1,804,000
Computer equipment and software
Property and Equipment, net
Total property and equipment	25,000	$ 25,000
Construction in progress
Property and Equipment, net
Total property and equipment	$ 188,000

Balance Sheet Components - Inta

Balance Sheet Components - Intangible Assets, net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Intangible Assets, net
Less: Accumulated amortization	$ (54,000)	$ (49,000)
Intangible assets, net	27,000	32,000
Amortization expense	5,000	6,000
License Agreement
Intangible Assets, net
Intangible assets, gross	$ 81,000	$ 81,000

Balance Sheet Components - In_2

Balance Sheet Components - Intangible Assets, Net- Amortization expense (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Acquired intangible amortization expense
2021	$ 5
2022	5
2023	5
2024	5
2025 and thereafter	7
Intangible assets, net	$ 27	$ 32

Balance Sheet Components - In_3

Balance Sheet Components - Intangible Assets, Net - Licenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
The University of Chicago Agreement
Intangible Assets, net
Maximum contingent milestone payments	$ 1,600,000
Milestone payments accrued	100,000	$ 0
The Brigham and Women's Hospital, Inc
Intangible Assets, net
Maximum contingent milestone payments	860,000
Milestone payments accrued	0	0
The University of Iowa Research Foundation
Intangible Assets, net
Maximum contingent milestone payments	712,500
Milestone payments accrued	0	0
Brigham Young University
Intangible Assets, net
Maximum contingent milestone payments	400,000
Milestone payments accrued	$ 0	0
Reimbursement of 3rd party costs (in percent)	0.33%
Kenta Biotech Ltd
Intangible Assets, net
Accrued royalty obligation	$ 0	$ 488,000
Maximum royalty base for royalty payments	50,000,000
Emergent Product Development Gaithersburg Inc
Intangible Assets, net
Milestone payments under the agreement	$ 2,800,000

Balance Sheet Components - Lice

Balance Sheet Components - Licenses (Details) - The UAB Research Foundation	12 Months Ended
	Dec. 31, 2020USD ($)
Minimum research funding agreed to provide	$ 50,000
Maximum contingent milestone payments	5,500,000
Milestone payments accrued	$ 0
Reduction in payments for non-royalty income received for a combination product (as a percent)	50.00%
Minimum period of prior written notice for termination of agreement	90 days

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Balance Sheet Components
Research and development services	$ 872	$ 2,709
Payroll related expenses	279	150
Professional services and other	179	115
Accrued liabilities	$ 1,330	$ 2,974

Equity Method Investment (Detai

Equity Method Investment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Aug. 06, 2018	Feb. 11, 2018
Equity Method Investment
Contributions owed to the joint venture	$ 1,000,000
Loss from equity method investment	9,000	$ 951,000
Equity method investment	0	9,000
SABC
Equity Method Investment
Percentage of ownership interest				49.00%
Carryover basis of license contributed	0
JV Entity
Equity Method Investment
Loss from equity method investment	$ 9,000	$ 951,000
Hepalink | SABC
Equity Method Investment
Percentage of ownership interest			51.00%
Minimum amount obligated to make an additional equity investment at first future financing			$ 10,800,000
Hepalink | JV Entity
Equity Method Investment
Contribution obligated			$ 7,200,000	$ 1,000,000

Collaboration, Development an_2

Collaboration, Development and License Agreements - Cystic Fibrosis Foundation Development Agreement (Details) - USD ($)	1 Months Ended		3 Months Ended	12 Months Ended
	Nov. 30, 2018	Dec. 31, 2016	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Jan. 01, 2019
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Grant revenue				$ 1,000,000	$ 1,022,000
CFF
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Amount of award	$ 7,500,000	$ 2,900,000
Upfront payment received from CFF		$ 200,000
Unrecorded deferred revenue			$ 0			$ 250,000	$ 334,000
Grant revenue				1,000,000	$ 1,000,000
CFF | Phase 1 SAD
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Amount of probable transaction price						1,700,000
Amount of probable variable consideration						$ 1,000,000
CFF | Phase 1 MAD
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Amount of achieved consideration			$ 1,000,000
CFF | Phase 2a Clinical Trial
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Gross transaction price				$ 3,800,000

Collaboration, Development an_3

Collaboration, Development and License Agreements - Serum License Agreement (Details) - USD ($)	1 Months Ended		12 Months Ended
	Sep. 30, 2019	Jul. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Deferred revenue, noncurrent			$ 854,000	$ 5,000,000
Capitalized contract cost, Current			1,973,000	1,537,000
Capitalized contract cost, Noncurrent			90,000	$ 526,000
Minimum
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Royalty payments				4.00%
Maximum
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Royalty payments				6.00%
License Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Deferred revenue			18,700,000	$ 14,600,000
Capitalized contract costs			2,100,000	2,100,000
Revenue			0	0
Deferred revenue, noncurrent			854,000	5,000,000
Capitalized contract cost, Current			2,000,000	1,500,000
Capitalized contract cost, Noncurrent			$ 90,000	526,000
Licenses and know-how
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Deferred revenue				14,500,000
Development support services
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Deferred revenue				79,000
Research and Development Option
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Deferred revenue				892,000
Manufacturing rights option
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Deferred revenue				$ 4,100,000
Products in EU
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Royalty payments				20.00%
License Agreement with SIBV
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Upfront payment received		$ 5,000,000
Issuance costs from equity allocation				$ 376,000
License Agreement with SAMR
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Buy back manufacturing rights	$ 5,000,000
Upfront payment received	15,000,000	5,000,000
Maximum additional payments entitled	$ 42,500,000
License Agreement and Option Agreement
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Proceeds from sale of restricted common stock and upfront payment		22,500,000		22,500,000
Fair value of net proceeds		5,000,000		5,000,000
Fair value of gross proceeds		5,400,000		5,400,000
Deferred revenue				19,600,000
Deferred revenue based on upfront payments				15,000,000
Deferred revenue from equity allocation				4,600,000
Capitalized contract costs				2,100,000
Issuance costs from equity allocation		$ 441,000		441,000
Direct costs related to license agreement				$ 1,700,000
Serum International B.V. ("SIBV")
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Issuance of common stock, net of issuance costs (in shares)		801,820
Issuance of common stock, net of issuance costs		$ 10,000,000
Restricted common stock | Serum International B.V. ("SIBV")
Collaborative Arrangements and Non-collaborative Arrangement Transactions
Issuance of common stock, net of issuance costs (in shares)		801,820
Issuance of common stock, net of issuance costs		$ 10,000,000
Payments of Stock Issuance Costs		$ 816,000

Paycheck Protection Program L_3

Paycheck Protection Program Loan (Details) - USD ($)	May 01, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Note payable current		$ 439,000
Note payable, noncurrent		276,000
Paycheck Protection Program (the "PPP")
Debt Instrument [Line Items]
Aggregate loan amount granted	$ 715,000
Debt instrument maturity period	2 years
Effective interest rate	1.00%
Note payable		715,000
Note payable current		439,000
Note payable, noncurrent		276,000
Interest expense		$ 5,000

Paycheck Protection Program L_4

Paycheck Protection Program Loan - Future payments on the loan (Details) - Paycheck Protection Program (the "PPP") $ in Thousands	Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Year ending December 31, 2021	$ 442
Year ending December 31, 2022	284
Total minimum payments	726
Less amount representing interest	(11)
Loan, gross	$ 715

Warrants - Common Stock Warrant

Warrants - Common Stock Warrant Expense (Details) - USD ($)	Dec. 12, 2016	Nov. 30, 2015	Dec. 31, 2020	Dec. 31, 2019	Aug. 13, 2019
Warrants to Purchase Common Stock
Share-based Compensation			$ 2,128,000	$ 2,010,000
Number of unvested warrants cancelled					109,601
Performance Award
Warrants to Purchase Common Stock
Minimum gross proceeds for meeting performance requirement		$ 25,000,000
Number of common stock warrants issued		234,860
Number of warrants issued	234,860
Warrants exercise price	$ 14.50
Total fair value of warrants	$ 661,000
Share-based Compensation				$ 82,000
Vesting period	5 years

Warrants - Warrants Issued in P

Warrants - Warrants Issued in Private Placement (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2020USD ($)D$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Class of Warrant or Right [Line Items]
Common stock to offer, issue and sell (in shares) | shares		10,065,727	8,918,461
Common stock, par value per share (in dollars per share)		$ 0.0001	$ 0.0001
Proceeds from issuance of common stock, net | $		$ 7,949	$ 4,958
Dividend yield (in percent)		0.00%
Securities Purchase Agreement
Class of Warrant or Right [Line Items]
Common stock to offer, issue and sell (in shares) | shares	1,134,470
Common stock, par value per share (in dollars per share)	$ 0.0001
Warrant shares to purchase (in shares) | shares	567,234
Aggregate gross proceeds from issuance of common stock | $	$ 8,500
Proceeds from issuance of common stock, net | $	$ 7,800
Combined purchase price for each Share, together with one Series A Warrant and one Series B Warrant	$ 7.4925
Relative fair value of the Common Stock Shares | $	$ 5,800
Relative fair value of the Warrant Shares | $	$ 2,000
Securities Purchase Agreement | Series A Warrant
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 7.43
Exercisable term of warrants	6 months
Expiration term of warrants	3 years 6 months
Securities Purchase Agreement | Series B Warrant
Class of Warrant or Right [Line Items]
Exercise price of warrants (in dollars per share)	$ 9
Exercisable term of warrants	6 months
Expiration term of warrants	3 years 6 months
Redemption price of warrants (in dollars per share)	$ 0.01
Redeemable of warrant, minimum price of the Company's common stock for five consecutive trading days (in dollars per share)	$ 9
Redeemable of warrant, number of consecutive trading days upon the price of the Company's common stock closing at $9.00 or more | D	5
Warrants | Securities Purchase Agreement
Class of Warrant or Right [Line Items]
Expected term (in years)	4 years
Expected volatility	104.00%
Risk-free interest-rate	0.25%
Dividend yield (in percent)	0.00%

Common Stock (Details)

Common Stock (Details) - USD ($)	1 Months Ended			12 Months Ended
	Oct. 31, 2020	Sep. 30, 2019	Jul. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	May 14, 2020
Common Stock for future issuance
Proceeds from issuance of common stock, net				$ 7,949,000	$ 4,958,000
Dividend yield (in percent)				0.00%
Total common stock for future issuance				4,187,245
Common stock to offer, issue and sell (in shares)				10,065,727	8,918,461
Common stock, par value per share (in dollars per share)				$ 0.0001	$ 0.0001
License Agreement and Option Agreement
Common Stock for future issuance
Proceeds from sale of restricted common stock and upfront payment			$ 22,500,000		$ 22,500,000
Issuance costs from equity allocation			441,000		441,000
Fair value of net proceeds			5,000,000		5,000,000
Fair value of gross proceeds			$ 5,400,000		$ 5,400,000
Options
Common Stock for future issuance
Expected term (in years)				6 years	6 years 3 months
Dividend yield (in percent)				0.00%	0.00%
Total common stock for future issuance				1,550,956
Future Options
Common Stock for future issuance
Total common stock for future issuance				584,161
Serum International B.V. ("SIBV")
Common Stock for future issuance
Issuance of common stock, net of issuance costs (in shares)			801,820
Serum International B.V. ("SIBV") | Restricted common stock
Common Stock for future issuance
Issuance of common stock, net of issuance costs (in shares)			801,820
Commission payment			$ 816,000
Proceeds from issuance of common stock, net			$ 9,200,000
Expected term (in years)			1 year
Expected volatility			84.00%
Risk-free interest-rate			1.94%
Dividend yield (in percent)			0.00%
ATM offering Agreement
Common Stock for future issuance
Issuance of common stock, net of issuance costs (in shares)				7,883
Proceeds from issuance of common stock, net				$ 62,000
Maximum aggregate offering price		$ 25,000,000				$ 22,000,000
Maximum commission (as a percent)		3.00%
Maximum value of shares under prospectus supplement covering		$ 100,000,000
Aggregate gross proceeds from issuance of common stock				$ 64,000
Securities Purchase Agreement
Common Stock for future issuance
Proceeds from issuance of common stock, net	$ 7,800,000
Common stock to offer, issue and sell (in shares)	1,134,470
Common stock, par value per share (in dollars per share)	$ 0.0001
Warrant shares to purchase (in shares)	567,234
Aggregate gross proceeds from issuance of common stock	$ 8,500,000
Relative fair value of the Common Stock Shares	5,800,000
Relative fair value of the Warrant Shares	$ 2,000,000
Securities Purchase Agreement | Maximum
Common Stock for future issuance
Warrant shares to purchase (in shares)	567,234
Securities Purchase Agreement | Arcadia Securities, LLC
Common Stock for future issuance
Fee, percentage of aggregate purchase price	3.50%
Securities Purchase Agreement | Cantor Fitzgerald & Co
Common Stock for future issuance
Fee, percentage of aggregate purchase price	3.50%
Warrants
Common Stock for future issuance
Total common stock for future issuance				2,052,128
Warrants | Securities Purchase Agreement
Common Stock for future issuance
Expected term (in years)	4 years
Expected volatility	104.00%
Risk-free interest-rate	0.25%
Dividend yield (in percent)	0.00%

Stock-Based Compensation - Stat

Stock-Based Compensation - Status of options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of options
Options outstanding	1,550,956	1,380,312
Options vested and exercisable	959,576
Weighted average exercise price
Options outstanding (in dollars per share)	$ 9.43	$ 10.06
Options vested and exercisable (in dollars per share)	$ 10.08
Weighted average contractual term and aggregate intrinsic value
Options outstanding (in years)	7 years 4 months 17 days
Options vested and exercisable (in years)	6 years 8 months 5 days
Options outstanding (in dollars)	$ 649,681
Options vested and exercisable (in dollars)	$ 563,191

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details) - $ / shares	1 Months Ended	12 Months Ended
	May 31, 2014	Dec. 31, 2020	Dec. 31, 2019
Shares Available for Grant
Beginning of the period (in shares)		196,982
Additional shares reserved (in shares)	77,908	562,736
Options granted (in shares)		(207,155)	(620,457)
Options exercised (in shares)		4,913	11,884
Options cancelled (in shares)		31,598
End of the period (in shares)		584,161	196,982
Number of options
Number of Shares, beginning of the period (in shares)		1,380,312
Number of Shares, Stock option granted		207,155	620,457
Number of Shares, Options exercised (in shares)		(4,913)
Number of Shares, Options cancelled (in shares)		(31,598)
Number of Shares, end of the period (in shares)		1,550,956	1,380,312
Weighted average exercise price
Weighted-Average Exercise Price, beginning of the period (in dollars per share)		$ 10.06
Weighted-Average Exercise Price, Options granted (in dollars per share)		5.89
Weighted-Average Exercise Price, Options exercised (in dollars per share)		2.89
Weighted-Average Exercise Price, Options cancelled (in dollars per share)		14.65
Weighted-Average Exercise Price, end of the period (in dollars per share)		$ 9.43	$ 10.06

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair value of the options granted, estimated using assumptions
Dividend yield (in percent)	0.00%
Granted (in shares)	207,155	620,457
Options
Fair value of the options granted, estimated using assumptions
Expected term (in years)	6 years	6 years 3 months
Expected volatility, minimum	84.00%	79.00%
Expected volatility, maximum	100.00%	95.00%
Risk-free interest-rate, minimum	0.38%	1.59%
Risk-free interest-rate, maximum	1.73%	2.67%
Dividend yield (in percent)	0.00%	0.00%

Stock-Based Compensation - Expe

Stock-Based Compensation - Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Stock-Based Compensation
Total stock-based compensation expense	$ 2,128	$ 1,928
Research and development
Stock-Based Compensation
Total stock-based compensation expense	590	662
General and administrative
Stock-Based Compensation
Total stock-based compensation expense	$ 1,538	$ 1,266

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional information (Details) - USD ($)	1 Months Ended		12 Months Ended
	Jun. 30, 2020	May 31, 2014	Dec. 31, 2020	Dec. 31, 2019
Stock-Based Compensation
Reserved for issuance (in shares)	2,183,692	233,722
Voting rights of all classes of stock (in percent)		10.00%
Exercise price for incentive stock options to the percentage of fair market value		110.00%
Annual increase in the number of shares to the shares of common stock		77,908	562,736
Number of Shares, Stock option granted			207,155	620,457
Weighted-average grant date fair value (in dollars per share)			$ 4.72	$ 5.91
Options outstanding (in dollars)			$ 649,681,000
Aggregate intrinsic value			$ 17,000	$ 51,000
Options exercised (in shares)			4,913	11,884
Amendment To The 2014 Plan
Stock-Based Compensation
Annual increase in the number of shares to the shares of common stock	400,000
Evergreen Provision
Stock-Based Compensation
Annual increase in the number of shares to the shares of common stock	162,736
Options
Stock-Based Compensation
Annual increase in the number of shares to the percentage of the issued and outstanding common stock		20.00%
Vesting period (in years)		4 years
Expiration period (in years)		10 years
Unrecognized stock-based compensation expenses related to stock options			$ 3,500,000
Unrecognized stock-based compensation expenses expected to be recognized			2 years 29 days

Income Taxes - Effective income

Income Taxes - Effective income tax rate reconciliation, Amount (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income tax expense benefit reconciliation
Federal income tax at statutory rate	$ (4,690)	$ (6,233)
State income tax, net of federal benefit	(36)	(1,293)
Foreign tax differential	1,906	2,346
State rate change	287
Permanent differences	1,088	394
Tax credits	(649)	(976)
Fin 48 reserve	162	244
Other	(92)	840
Valuation allowance change	$ 2,024	$ 4,678

Income Taxes - Components of de

Income Taxes - Components of deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Components of deferred tax assets
Net operating loss carryforwards	$ 14,793	$ 14,519
Accruals and reserves	39	341
Stock based compensation	1,153	951
Research and development credits	2,021	1,534
Deferred Revenue	1,338
Depreciation and amortization	(9)	(34)
Total	19,335	17,311
Valuation allowance	$ (19,335)	$ (17,311)

Income Taxes - Uncertain tax po

Income Taxes - Uncertain tax positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Balance at the beginning of the year	$ 534	$ 486
Increase based on current year tax positions	171	254
Decrease for prior year tax positions		(206)
Balance at the end of the year	$ 705	$ 534

Income Taxes - Tax Cuts and Job

Income Taxes - Tax Cuts and Jobs Act of 2017 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
GILTI tax	$ 4.2
Net change in the valuation allowance	$ 2	$ 4.7

Income Taxes - Net operating lo

Income Taxes - Net operating loss carryforwards and Tax credit carryforwards (Details)	Dec. 31, 2020USD ($)
Income Taxes
Net operating loss carryforwards	$ 53,600,000
Federal
Income Taxes
Net operating loss carryforwards	19,500,000
Research credit carryforwards | Federal
Income Taxes
Tax credit carryforwards	2,200,000
Research credit carryforwards | State
Income Taxes
Tax credit carryforwards	607,000
After tax year 2017 | Federal
Income Taxes
Net operating loss carryforwards	$ 33,100,000

Related Parties (Details)

Related Parties (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Related parties
Deferred revenue		$ 18,748,000	$ 14,602,000
Deferred revenue, noncurrent		854,000	5,000,000
Capitalized contract cost, Current		1,973,000	1,537,000
Capitalized contract cost, Noncurrent		90,000	526,000
License Agreement
Related parties
Revenue		0	0
Deferred revenue, noncurrent		854,000	5,000,000
Capitalized contract costs		2,100,000	2,100,000
Capitalized contract cost, Current		2,000,000	1,500,000
Capitalized contract cost, Noncurrent		90,000	526,000
Shenzen Hepalink Pharmaceutical Group Co., Ltd.("Hepalink")
Related parties
Reduction to operating expenses on reimbursed to JV entity		(188,000)	(1,500,000)
Serum International B.V. ("SIBV") | License Agreement
Related parties
Revenue		0	0
Deferred revenue		18,700,000	14,600,000
Deferred revenue, noncurrent		854,000	5,000,000
Capitalized contract costs		2,100,000
Capitalized contract cost, Current		2,000,000	1,500,000
Capitalized contract cost, Noncurrent		90,000	526,000
Serum International B.V. ("SIBV")
Related parties
Issuance of common stock, net of issuance costs (in shares)	801,820
Issuance of stock	$ 10,000,000
Other receivables | Shenzen Hepalink Pharmaceutical Group Co., Ltd.("Hepalink")
Related parties
Outstanding receivable for reimbursable expenses		$ 3,000	$ 152,000

Commitments and Contingencies -

Commitments and Contingencies - Facility lease - (Details)	Oct. 31, 2020USD ($)ft²
Commitments and Contingencies
Initial Term	5 years
Area of Land | ft²	15,129
Renewal Term	3 years
Amount of letter of credit as security deposit to the Landlord | $	$ 500,000

Commitments and Contingencies_2

Commitments and Contingencies - Future minimum lease payments (Details) $ in Thousands	Dec. 31, 2020USD ($)
Commitments and Contingencies
2021	$ 542
2022	610
2023	628
2024	646
2025	666
Thereafter	57
Total	$ 3,149

Commitments and Contingencies_3

Commitments and Contingencies - Leases and Contingencies (Details)	1 Months Ended	12 Months Ended
	Feb. 29, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)claim
Commitments and Contingencies
Rent expense		$ 529,000	$ 341,000
Number of pending legal proceedings | claim			0
Compensatory damages sought	$ 277,000

Commitments and Contingencies_4

Commitments and Contingencies - Cystic Fibrosis Foundation Agreement and Joint Venture Agreement (Details) - CF Foundation $ in Thousands	1 Months Ended
	Dec. 31, 2016USD ($)iteminstallment	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Nov. 30, 2018USD ($)
Cystic Fibrosis Foundation Agreement
Amount of award received for advance research on potential drugs	$ 2,900			$ 7,500
Excess amount recorded as liability		$ 0	$ 0
Period for payment of annual installments	90 days
Maximum percentage of awarded amount of net sales	15.00%
Payment of amount received in connection with Disposition Transaction (as a percent)	15.00%
Number of multiplication on awarded amount payable if change of control prior to completion of the first commercial sale | item	9
Maximum
Cystic Fibrosis Foundation Agreement
Number of annual installments for repayment of award | installment	5

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Subsequent Events
Common stock, shares issued (in shares)			10,065,727	8,918,461
Licensing Agreement | Subsequent event
Subsequent Events
Issue fee		$ 25,000
Annual license maintenance fee in 2022		50,000
Annual license maintenance fee in 2023 and each year thereafter		$ 100,000
Licensing and Product Discovery Agreement | Subsequent event
Subsequent Events
Proceeds received	$ 500,000
Securities Purchase Agreement | Subsequent event
Subsequent Events
Common stock, shares issued (in shares)	1,037,405
Gross Proceeds from Issuance of Common Stock	$ 7,000,000
Issuance of stock (in shares)	124,789