Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 16, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Registrant Name | TRILLIUM THERAPEUTICS INC. | ||
Title of 12(b) Security | Common Shares, no par value per share | ||
Trading Symbol | TRIL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 684 | ||
Entity Common Stock, Shares Outstanding | 103,032,563 | ||
Entity Central Index Key | 0001616212 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current | ||
Cash and cash equivalents | $ 247,600 | $ 14,584 |
Marketable securities | 43,565 | 8,082 |
Amounts receivable | 947 | 327 |
Prepaid expenses | 6,417 | 299 |
Total current assets | 298,529 | 23,292 |
Property and equipment, net | 778 | 1,369 |
Intangible assets | 783 | 783 |
Operating lease right-of-use assets | 732 | 949 |
Total non-current assets | 2,293 | 3,101 |
Total assets | 300,822 | 26,393 |
Current | ||
Accounts payable | 7,891 | 1,592 |
Accrued expenses | 9,323 | 11,729 |
Current portion of operating lease liability | 274 | 208 |
Stock option liability | 3,930 | |
Warrant liability | 13,370 | |
Total current liabilities | 21,418 | 26,899 |
Operating lease liabilities, net of current portion | 557 | 827 |
Total non-current liabilities | 557 | 827 |
Total liabilities | 21,975 | 27,726 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common shares | 476,561 | 149,393 |
Warrants | 4,931 | |
Additional paid-in capital | 38,634 | 23,072 |
Accumulated other comprehensive loss | (7,602) | (7,602) |
Accumulated deficit | (249,375) | (190,029) |
Total stockholders' equity (deficit) | 278,847 | (1,333) |
Total liabilities and stockholders' equity (deficit) | 300,822 | 26,393 |
Series I preferred shares | ||
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Preferred shares value | 2,348 | |
Series II preferred shares | ||
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Preferred shares value | $ 15,698 | $ 21,485 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common shares, shares issued | 102,925,799 | 28,938,831 |
Common shares, shares outstanding | 102,925,799 | 28,938,831 |
Series I preferred shares | ||
Preferred shares, shares issued | 0 | 17,171,541 |
Preferred shares, shares outstanding | 0 | 17,171,541 |
Series II preferred shares | ||
Preferred shares, shares issued | 6,750,000 | 8,868,403 |
Preferred shares, shares outstanding | 6,750,000 | 8,868,403 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statement of Operations and Comprehensive Loss | ||
REVENUE | $ 148 | $ 124 |
OPERATING EXPENSES | ||
Research and development | 25,348 | 26,688 |
General and administrative | 36,255 | 5,724 |
Total operating expenses | 61,603 | 32,412 |
Operating loss | (61,455) | (32,288) |
Other income (expense) | ||
Interest income, net | 2,009 | 597 |
Net foreign currency gain (loss) | 202 | (846) |
Revaluation of warrant liability | (5,517) | |
Total other income (expense), net | 2,211 | (5,766) |
Net loss before income taxes | (59,244) | (38,054) |
Income tax expense | 102 | 28 |
Net loss | (59,346) | (38,082) |
Other comprehensive income | ||
Foreign currency translation adjustments | 414 | |
Total other comprehensive income | 414 | |
Comprehensive loss | $ (59,346) | $ (37,668) |
Net loss per share, basic and diluted | $ (0.70) | $ (1.15) |
Weighted average number of common shares used in computing net loss per share, basic and diluted | 84,601,276 | 25,264,447 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Series I preferred sharesPreferred shares | Series II preferred sharesPreferred shares | Series II preferred shares | Adoption of ASU 2016-02Deficit | Adoption of ASU 2016-02 | Common shares | Warrants | Additional paid-in capital | Accumulated other comprehensive loss | Deficit | Total |
Balance, beginning of year at Dec. 31, 2018 | $ 2,348 | $ 35,235 | $ 129,513 | $ 20,555 | $ (8,016) | $ (152,053) | $ 27,582 | ||||
Balance, beginning of year (in shares) at Dec. 31, 2018 | 17,171,541 | 4,368,403 | 14,688,831 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares or units issued, net of issue costs | $ 3,999 | $ 2,131 | 6,130 | ||||||||
Shares issued | 12,200,000 | 6,550,000 | |||||||||
Conversion of preferred shares into common shares | $ (17,749) | $ 17,749 | |||||||||
Conversion of preferred shares into common shares (in shares) | (7,700,000) | 7,700,000 | |||||||||
Share-based compensation | 2,517 | 2,517 | |||||||||
Foreign currency translation adjustments | 414 | 414 | |||||||||
Net loss | (38,082) | (38,082) | |||||||||
Balance, end of period at Dec. 31, 2019 | $ 2,348 | $ 21,485 | $ 106 | $ 106 | $ 149,393 | 23,072 | (7,602) | (190,029) | (1,333) | ||
Balance, end of period (in shares) at Dec. 31, 2019 | 17,171,541 | 8,868,403 | 28,938,831 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares or units issued, net of issue costs | $ 3,225 | $ 271,826 | 275,051 | ||||||||
Shares issued | 1,250,000 | 55,076,884 | |||||||||
Change from cash to equity settlement of deferred share units ("DSUs") | 24,948 | 24,948 | |||||||||
Reclassification of warrants from liability to equity | $ 13,370 | 13,370 | |||||||||
Reclassification of warrants from liability to equity (in shares) | 18,750,000 | ||||||||||
Reclassification of stock options from equity to liability | 225 | 225 | |||||||||
Shares issued upon redemption of DSUs | $ 7,045 | (7,045) | |||||||||
Shares issued upon redemption of DSUs (in shares) | 867,888 | ||||||||||
Exercise of options | $ 18,419 | (3,840) | $ 14,579 | ||||||||
Exercise of options | 2,267,084 | 2,267,084 | |||||||||
Amounts receivable from exercise of options | $ 1,282 | $ 1,282 | |||||||||
Exercise of warrants | $ 2,928 | $ 16,872 | $ (8,439) | 11,361 | |||||||
Exercise of warrants (in shares) | 1,750,000 | 1,750,000 | 10,084,325 | (11,834,325) | |||||||
Conversion of preferred shares into common shares | $ (2,348) | $ (11,940) | $ 14,288 | ||||||||
Conversion of preferred shares into common shares (in shares) | (17,171,541) | (5,118,403) | 5,690,787 | ||||||||
Share-based compensation | 1,724 | 1,724 | |||||||||
Net loss | (59,346) | (59,346) | |||||||||
Balance, end of period at Dec. 31, 2020 | $ 15,698 | $ 476,561 | $ 4,931 | $ 38,634 | $ (7,602) | $ (249,375) | $ 278,847 | ||||
Balance, end of period (in shares) at Dec. 31, 2020 | 6,750,000 | 102,925,799 | 6,915,675 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (59,346) | $ (38,082) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Stock-based compensation | 36,451 | 4,598 |
Remeasurement of warrant liability | 5,154 | |
Depreciation of property and equipment | 591 | 609 |
Unrealized foreign exchange loss (gain) | (325) | 979 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | (22,629) | (26,742) |
Changes in operating assets and liabilities | ||
Amounts receivable | (620) | 511 |
Prepaid expenses | (6,118) | 484 |
Operating lease right of use asset | 217 | 148 |
Accounts payable | 6,299 | 1,402 |
Accrued expenses | 322 | (383) |
Operating lease liability | (204) | (171) |
Net cash used in operating activities | (22,733) | (24,751) |
Cash flows from investing activities | ||
Maturities of marketable securities | 30,797 | 87,475 |
Purchases of marketable securities | (66,280) | (77,486) |
Purchases of property and equipment | (324) | |
Net cash provided by (used in) investing activities | (35,483) | 9,665 |
Cash flows from financing activities | ||
Repayment of loan payable | (73) | |
Exercise of stock options | 4,495 | |
Exercise of warrants | 11,361 | |
Issuance of warrants, net of issuance costs | 7,717 | |
Issuance of preferred and common stock, net of issuance costs | 275,051 | 6,166 |
Net cash provided by financing activities | 290,907 | 13,810 |
Impact of foreign exchange rate on cash and cash equivalents | 325 | 542 |
Net increase (decrease) in cash and cash equivalents | 233,016 | (734) |
Cash and cash equivalents, beginning of year | 14,584 | 15,318 |
Cash and cash equivalents, end of year | 247,600 | 14,584 |
Supplemental disclosures of cash flow information: | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 1,097 | |
Cash paid for operating lease payments | 343 | 341 |
Cash paid for income taxes | 23 | $ 13 |
Reclassification of warrants from liability to equity | 13,370 | |
Reclassification of stock options from equity to liability | 225 | |
Fair value transfer of stock option liability to equity upon stock option exercise | $ 8,802 |
Description of the business
Description of the business | 12 Months Ended |
Dec. 31, 2020 | |
Description of the business | |
Description of the business | 1. Description of the business Trillium Therapeutics Inc. (the “Company” or “Trillium”) is a clinical-stage immuno-oncology company developing innovative therapies for the treatment of cancer. The Company’s two clinical programs, TTI‑621 and TTI‑622, target CD47, a “don’t eat me” signal that cancer cells frequently use to evade the immune system. The Company is a corporation existing under the laws of the Province of British Columbia. Since inception, the Company has been primarily involved in research and development activities and has incurred significant net losses, which were $59.3 million and $38.1 million for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company had an accumulated deficit of $249.4 million. The Company anticipates that it will continue to incur significant expenses and operating losses for the foreseeable future as it continues to develop its product candidates. As a result, the Company will require substantial additional capital to fund its continued operations and pursue its growth strategy. The Company has not generated any product revenues and has financed its operations primarily through public offerings of its equity securities. There can be no assurance that the Company will be able to raise additional funds or enter into such other agreements on favorable terms, or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition. As of December 31, 2020, the Company had cash and cash equivalents and marketable securities of $291.2 million. The Company believes that its existing cash and cash equivalents and marketable securities will enable it to fund its expected operating requirements for at least 12 months following the issuance of these consolidated financial statements. The Company is subject to a number of risks similar to other biopharmaceutical companies in the early stage, including, but not limited to, the need to obtain adequate additional funding, possible failure of preclinical testing or clinical trials, the need to obtain marketing approval for its product candidates, competitors developing new technological innovations, the need to successfully commercialize and gain market acceptance of the Company’s products, and protection of proprietary technology. If the Company does not successfully obtain regulatory approval, commercialize or partner any of its product candidates, it will be unable to generate revenue from product sales or achieve profitability. |
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 (a) Basis of presentation and consolidation These accompanying consolidated financial statements, including comparatives, have been prepared in accordance with US generally accepted accounting principles (“US GAAP”). These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Trillium Therapeutics USA Inc. The financial statements of the subsidiaries are prepared for the same reporting period as the Company using consistent accounting policies. Intercompany transactions, balances and gains and losses on transactions between the Company and the subsidiaries are eliminated. (b) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the consolidated financial statements, reported amounts of revenue and expenses during the reporting periods, and related disclosures in the accompany notes. Significant estimates and assumptions reflected in 2. Summary of significant accounting policies (continued) these consolidated financial statements include, but are not limited to, accrued clinical and contract research organization costs, stock-based compensation expense and valuation of warrant liability. The Company reviews its estimates and underlying assumptions on an ongoing basis. Revisions are recognized in the period in which the estimates are revised and may impact future periods. Actual results could differ materially from these estimates and assumptions. COVID-19 Given the ongoing and dynamic nature of the circumstances surrounding the COVID-19 pandemic, it is difficult to predict how significant the impact of COVID-19, including any responses to it, will be on the global economy and the business of the Company or for how long any disruptions are likely to continue. The extent of such impact will depend on future developments, which are highly uncertain, rapidly evolving and difficult to predict, including new information which may emerge about COVID-19 and additional actions which may be taken to contain it. Such developments could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flow, and exposure to credit risk. The Company is constantly evaluating the situation and monitoring any impacts or potential impacts to its business. (c) Foreign currency translation Transactions in foreign currencies are translated to the functional currency at the rate on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot rate of exchange at each reporting date, with all differences taken to profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. Functional currency Management has used its judgment to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions and considered various factors including the currency of historical and future expenditures and the currency in which funds from financing activities are generated. The Company’s functional currency is only changed when there is a material change in the underlying transactions, events and conditions. On January 1, 2020, the Company’s functional currency was changed to US dollars from Canadian dollars. The change was made to reflect that US dollars has become the currency of the primary economic environment in which the Company operates, counting for a significant part of the Company’s labour, operations and financing. The change has been implemented prospectively. 2. Summary of significant accounting policies (continued) (d) Fair value measurements In accordance with ASC 820 Fair Value Measurement , the Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: · Level 1: Inputs which include quoted prices in active markets for identical assets and liabilities. · Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The hierarchy requires the use of observable market data when available. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value of the stock option liability is determined using a Level 3 input that is unobservable and is significant to the fair value of the liability (i.e. expected volatility). For the year ended December 31, 2019, the warrant liability was classified as Level 3. Cash and cash equivalents, marketable securities, amounts receivable, accounts payable and accrued liabilities, and other current liabilities due within one year, are all short-term in nature and, as such, their carrying values approximate fair values. Marketable securities, which primarily include guaranteed investment certificates and corporate bonds held by the Company, are valued at amortized cost. (e) Concentrations of credit risk and off-balance sheet risk Financial instruments that potentially expose the Company to concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities, and amounts receivable. The Company follows an investment policy to mitigate against the deterioration of principal and to enhance the Company’s ability to meet its liquidity needs. The Company maintains its cash and cash equivalent balances with high-quality financial institutions and invests in high-grade short-term instruments. Consequently, the Company believes that such funds are subject to minimal credit risk. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. (f) Cash and cash equivalents, and marketable securities Cash and cash equivalents Cash equivalents include guaranteed investment certificates ($nil as of December 31, 2020 and $7.0 million as of December 31, 2019) with an original maturity of 90 days or less. 2. Summary of significant accounting policies (continued) Marketable securities Marketable securities consist of guaranteed investment certificates and bonds with an original maturity of greater than 90 days when purchased. Marketable securities with a remaining maturity date greater than one year from the balance sheet date are classified as non-current. The Company has classified its marketable securities as held-to-maturity and they are measured at amortized cost. The Company does not intend to sell its marketable securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Accrued interest receivable on marketable securities is included within amounts receivable on the consolidated balance sheets. (g) Property and equipment Recognition and measurement Items of property and equipment are measured at cost net of accumulated depreciation and accumulated impairment losses. Cost includes the expenditure that is directly attributable to the acquisition of the asset. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized in profit or loss. Depreciation The estimated useful lives and the methods of depreciation are as follows: Asset Basis Lab equipment 20% declining balance Computer equipment 30% declining balance Office equipment 20% declining balance Leasehold improvements Straight-line over expected lease term Estimates for depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Maintenance and repairs that do not extend the life or improve the asset are expensed when incurred. (h) Intangible assets Intangible assets that consist of intellectual property acquired in a business combination and that are used in research and development activities are recognized and measured at fair value on the acquisition date. These are considered indefinite lived intangible assets until the research is complete (in which case they become finite-lived) or they are abandoned (at which time they are written off). Intangible assets with indefinite lives are not amortized, but tested for impairment annually, or whenever there is an impairment indicator. Intangible assets that are not deemed to have an indefinite life are amortized and recognized in profit or loss on a straight-line basis over the estimated useful lives of the intangible assets from the date they are available for use in the manner intended by management. 2. Summary of significant accounting policies (continued) The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. (i) Impairment of long-lived assets The Company's long-lived assets are reviewed at each reporting date to determine whether events or changes in circumstances indicate there is any impairment. If such an indication exists, the recoverable amount is estimated. The recoverability of an asset or asset group is measured by the sum of the estimated undiscounted future cash flows expected to result from the use and eventual disposal of the relevant asset or asset group. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of cash inflows of other assets. If such assets are considered impaired, an impairment loss is recognized and measured by the amount by which the carrying amount of an asset or asset group exceeds its estimated fair value. Indefinite-lived intangible assets are tested for impairment annually, or more frequently if indicators of impairment are present. To date, no such impairment losses have been recorded. (j) Leases The Company determines if an arrangement is or contains a lease at inception. If a lease is identified in an arrangement, then the Company determines whether it is an operating lease or a finance lease. A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: · There is a transfer of ownership of the leased asset to the Company by the end of the lease term. · The Company holds an option to purchase the leased asset that it is reasonably certain to exercise. · The lease term is for a major part of the remaining economic life of the leased asset. · The present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset. · The nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are classified as operating leases. The Company does not have any finance leases. Operating leases are recorded as operating lease right-of-use assets and operating lease liabilities in the Company’s consolidated balance sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses an implicit rate when readily available, or its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The operating lease right-of-use assets also include any lease prepayments made and reduced by lease incentives. The Company’s lease terms may include options to extend the lease when it is reasonably certain that such options will be exercised. 2. Summary of significant accounting policies (continued) Lease expenses are recognized on a straight-line basis over the lease term. The Company elected the short-term lease recognition exemption. Additionally, tenant improvement allowances are recognized as a reduction to lease expense on a straight-line basis over the respective lease term. (k) Revenue recognition The Company enters into licensing agreements which are within the scope of ASC 606, Revenue from Contracts with Customers (“ASC 606”), under which the Company licenses rights to certain of the Company’s product candidates. The terms of these arrangements typically include payment of one or more of the following: non-refundable, upfront fees; reimbursement of patent costs; development, regulatory, and commercial milestone payments; and royalties on net sales of licensed products. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company’s contracts often include development and regulatory milestone payments which are assessed under the most likely amount method and constrained if it is probable that a significant revenue reversal would occur. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues in the period of adjustment. To date, the Company has not recognized any consideration related to the achievement of development, regulatory, or commercial milestone revenue resulting from any of the Company’s licensing agreements. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any consideration related to sales-based royalty revenue resulting from any of the Company’s licensing agreements. 2. Summary of significant accounting policies (continued) (l) Research and development costs Expenditures relating to research and development are expensed as incurred. Research and development expenses include external expenses incurred under arrangements with third parties; salaries and personnel-related costs, including non-cash stock-based compensation expense; license fees to acquire in-process technology and other expenses, which include direct and allocated expenses for laboratory, facilities and other costs, partially offset by fully refundable research and development tax credits. The Company recognizes the benefit of refundable research and development tax credits as a reduction of research and development costs when there is reasonable assurance that the amount claimed will be recovered. Intellectual property acquired separately for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise) are expensed in research and development costs at the time the costs are incurred. In certain circumstances, the Company is required to make non-refundable advance payments to vendors for goods or services that will be received in the future for use in research and development activities. In such circumstances, the non-refundable advance payments are deferred and capitalized, even when there is no alternative future use for the research and development, until related goods or services are provided. In circumstances where amounts have been paid in excess of costs incurred, the Company records a prepaid expense. As of December 31, 2020, the Company had prepaid expenses of $6.4 million, a significant amount of which relates to advance payments to contract manufacturing organizations. The Company’s manufacturing, non-clinical studies, and clinical trials are performed by third-party contract research organizations (“CROs”). Some of these expenses are billed monthly for services performed, while others are billed based upon milestones achieved. The Company records accrued liabilities for estimated ongoing research costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies, including the phase or completion of events, invoices received and contracted costs. The Company’s estimates are highly dependent upon the timeliness and accuracy of the data provided by the respective CROs regarding the status of the contracted activity, with adjustments made when deemed necessary. Significant estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. (m) Patent Costs The Company expenses costs associated with intellectual property-related matters, such as patent application expenses and related legal costs, as incurred and classifies such costs as general and administrative expenses in the accompanying statements of operations and comprehensive loss. 2. Summary of significant accounting policies (continued) (n) Stock-based compensation The Company early-adopted Accounting Standards Update (“ASU”) No. 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) in 2018. Under this new standard, stock-based payment awards granted to non-employees as consideration for services received are measured on the grant date at the fair value of the equity instruments that the Company is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The grant-date fair value of stock-based payment awards granted to employees is recognized as personnel costs, with a corresponding increase in additional paid-in capital, over the period that the employees unconditionally become entitled to the awards. The grant-date fair value is determined using the Black-Scholes option-pricing model. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that met the related service and non-market vesting conditions at the vesting date. The unvested stock-based compensation related to stock option forfeitures are recognized as they occur. As of January 1, 2020, the Company’s functional currency changed to US dollars. As a result of the change in functional currency, stock options issued to Canadian employees are continued to be classified as equity, and stock options issued to US employees under the 2018 Stock Option Plan and the 2019 Inducement Plan are to be classified as a stock option liability as they have exercise prices denominated in Canadian dollars. The change in functional currency was treated as a stock option modification and accordingly $0.2 million was reclassified from additional paid-in capital to stock option liability on January 1, 2020. For each reporting period after the modification date, the stock option liability is adjusted so that it equals the portion of the requisite service provided multiplied by the modified award’s fair value at the end of the reporting period. All stock options granted under the Company’s 2020 Omnibus Equity Incentive Plan (“Omnibus Plan”) have exercise prices denominated in US dollars. (o) Income taxes The Company accounts for income taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax reporting basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when these differences are expected to reverse. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and they relate to income taxes levied by the same tax authority on the same taxable entity. The Company records a valuation allowance to reduce its deferred tax assets to reflect the net amount that it believes as more likely than not to be realized. Realization of the deferred tax assets is dependent on the generation of future taxable income, the amount and timing of which are uncertain. The valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Based upon the weight of available evidence at December 31, 2020, the Company continues to maintain a full valuation allowance against all of its deferred tax assets. 2. Summary of significant accounting policies (continued) (p) Comprehensive loss Comprehensive loss represents all changes in equity except those resulting from transactions with stockholders. The Company’s foreign currency translation adjustments during the periods represents the components of other comprehensive income that is excluded from the reported net loss. (q) Net loss per share Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similar to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares for the assumed exercise of stock options and warrants, redemption of deferred share units and conversion of preferred shares, if dilutive. The number of additional shares is calculated by assuming that outstanding preferred shares would convert to common shares and that outstanding stock options and warrants would be exercised and the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. The inclusion of the Company's stock options, warrants, deferred share units and preferred shares in the computation of diluted loss per share has an antidilutive effect on the loss per share and has therefore been excluded from the calculation of diluted loss per share. (r) Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company and the Company’s chief operating decision maker, the Company’s Chief Executive Officer, views the Company’s operations and manages its business as a single operating segment, which is the research and development therapies for the treatment of cancer. The Company operates in the US and Canada. (s) Adopted and recent accounting pronouncements Adopted accounting pronouncements as of January 1, 2019 Leases The Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) on January 1, 2019 using the modified retrospective approach. This new standard amends the guidance for the accounting and disclosure of leases and requires that lessees recognize on the balance sheet both the assets and liabilities that arise from leases, including leases classified as operating leases under previous guidance (ASC 840, Leases ), and disclose qualitative and quantitative information about leasing arrangements. The Company elected the package of practical expedients permitted under the new standard (ASC 842 Leases (“ASC 842”)), and applied it to all its leases at the transition date without reassessing (a) whether the contracts contain a lease under ASC 842, (b) whether classification of the operating leases would be different in accordance with ASC 842 or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC 842 at lease commencement. In addition, the Company also elected the short-term lease practical expedients allowed under the standard. 2. Summary of significant accounting policies (continued) As a result of the adoption of ASC 842, the Company recorded a right-of-use asset of $0.5 million and a lease liability $0.6 million on January 1, 2019 related to its Mississauga facility operating lease. The impact on the Company’s accumulated deficit as of the adoption date was $0.1 million. This standard does not have material impact on the Company’s consolidated results of operations or cash flows. Adopted accounting pronouncements as of January 1, 2020 The Company adopted the following standards as of January 1, 2020. The adoption of these standards did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820). The amendments in this ASU modify the disclosure requirements on fair value measurements in ASC 820 Fair Value Measurement . Various disclosure requirements have been removed, including the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements held at the end of the reporting period. The ASU also modified various disclosure requirements and added some disclosure requirements for Level 3 fair value measurements. Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income are to present them at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The Company has determined that the adoption of this standard will not have a material impact on the consolidated financial statements. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair value measurements | |
Fair value measurements | 3. Fair value measurements Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019 are as follows (in thousands): Quoted prices in Significant other Significant active markets observable inputs unobservable inputs Total (Level 1) (Level 2) (Level 3) $ $ $ $ December 31, 2020 Stock option liability 3,930 — — 3,930 Total liabilities 3,930 — — 3,930 December 31, 2019 Assets Cash and cash equivalents Guaranteed investment certificates 7,000 7,000 — — Total assets 7,000 7,000 — — Liabilities Warrant liability 13,370 — — 13,370 Total liabilities 13,370 — — 13,370 There were no changes in valuation techniques or transfers between Levels 1, 2 or 3 during the years ended December 31, 2020 and 2019. The Company’s stock option liability is measured at fair value on a recurring basis using unobservable inputs that are classified as Level 3 inputs. As of December 31, 2020 and 2019, the balances of the stock option liability were $3.9 million and $nil, respectively. Refer to Note 11 for the valuation techniques and assumptions used in estimating the fair value of the stock option liability. The change in fair value of the stock option liability for the year ended December 31, 2020 was as follows (in thousands): $ Beginning balance — Reclassification to stock option liability due to change in functional currency 225 Change in fair value of stock option liability 12,507 Exercises of stock options (8,802) Ending balance 3,930 The change in fair value of stock option liability is recorded as compensation expense in the statements of operations and comprehensive loss. For the year ended December 31, 2020, $4.8 million of change in fair value of stock option liability was included in research and development expenses, and $7.7 million was included in general and administrative expenses. |
Amounts receivable
Amounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
Amounts receivable | |
Amounts receivable | 4. Amounts receivable The Company’s amounts receivable consisted of the following as of December 31 (in thousands): $ $ Research and development tax credits receivable 469 289 Interest receivable on marketable securities 478 38 Total 947 327 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property and equipment | |
Property and equipment | 5. Property and equipment Property and equipment, net consisted of the following as of December 31 (in thousands): $ $ Laboratory equipment 1,477 1,477 Office equipment and leasehold improvements 2,127 2,127 Computer equipment 263 263 Total property and equipment, gross 3,867 3,867 Less: accumulated depreciation (3,089) (2,498) Property and equipment, net 778 1,369 Depreciation expense for the years ended December 31, 2020 and 2019 were $0.6 million and $0.8 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 6. Leases On January 1, 2019, the date of adoption of ASC 842, the Company had an existing operating lease (the “2015 Lease”), to lease 22,003 square feet of a Mississauga, Ontario facility. The term of the 2015 Lease commenced on November 1, 2015. The 2015 Lease has an initial term of 10 years from the commencement date, and the Company has an option to extend the initial term for two further terms of five years each. The Company had the option to terminate the lease agreement any time after 5 years (i.e. after October 31, 2020) with a minimum of 9 months prior written notice. If the Company terminates the lease agreement between the 61st to the 84th month, the Company is obligated to pay the unamortized balance of tenant improvement allowance based on a rate of 8%, plus 4 months minimum rent and additional rent. Upon early termination after the 84th month, the Company is obligated to pay the unamortized balance of tenant improvement allowance based on a rate of 8%, plus 2 months minimum rent and additional rent. As part of the determination of its right-of-use assets, the Company assumed that it would terminate this lease at the end of the 84th month. The landlord agreed to pay the Company a lease inducement for the 2015 Lease of $0.2 million to reimburse the Company for leasehold improvements being made to the leased premises and the acquisition of certain equipment. On April 1, 2019, the Company entered into an operating lease (the “2019 Lease”) to lease approximately 3,200 square feet of office space located in Cambridge, Massachusetts. The 2019 Lease has an initial term of 5 years from the commencement date with no option to extend the initial term. The annual base rent increases on an annual basis from the 13th month to approximately $0.2 million for the fifth year of the lease. The landlord agreed to pay the Company a lease inducement of $0.1 million to reimburse the Company for leasehold improvements being made to the leased premises. 6. Leases (continued) Future minimum lease payments under non-cancellable lease agreements as of December 31, 2020 were as follows (in thousands): December 31, 2020 $ 2021 343 2022 452 2023 184 2024 46 2025 — 2026 and beyond — Total minimum lease payments 1,025 Less: Imputed interest (194) Present value of lease liabilities 831 Lease expense is recognized on a straight-line basis over the term of the leases and accordingly the Company records the difference between cash rent payments and the recognition of lease expense against the operating lease right-of-use asset. For the years ended December 31, 2020 and 2019, variable lease payments relating to the Company’s operating leases were $0.1 million and $0.1 million, respectively. Lease expenses during the years ended December 31, 2020 and 2019 were $0.4 million and $0.3 million, respectively. As of December 31, 2020, the weighted average remaining lease term was 2.5 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 15%. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets | |
Intangible assets | 7. Intangible assets Intangible assets consist of in-process research and development (“R&D”) for the SIRPαFc programs which resulted from a transaction in 2013 that was accounted for as a business combination. The in-process R&D continues to be accounted for as an indefinite-lived intangible asset as the underlying R&D projects have not been completed or abandoned. |
Accrued expenses
Accrued expenses | 12 Months Ended |
Dec. 31, 2020 | |
Accrued expenses | |
Accrued expenses | 8. Accrued expenses The Company’s accrued expenses consisted of the following as of December 31 (in thousands): $ $ Accrued employee compensation 1,507 1,474 Accrued clinical and contract research organization costs 5,978 6,765 Other accrued expenses 1,802 715 Amounts due to related parties 36 2,775 Total 9,323 11,729 Amounts due to related parties include accrued vacation. In the prior year amounts due to related parties also included cash-settled DSUs. |
Stockholder's equity
Stockholder's equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholder's equity | |
Stockholder's equity | 9. Stockholder’s equity (a) Authorized The authorized share capital of the Company consists of an unlimited number of common shares, Class B shares and First Preferred Shares, in each case without nominal or par value. Common shares are voting and may receive dividends as declared at the discretion of the Board of Directors. Class B shares are non-voting and convertible to common shares at the holder’s discretion, on a one-for-one basis. Upon dissolution or wind-up of the Company, Class B shares participate rateably with the common shares in the distribution of the Company’s assets. First Preferred Shares have voting rights as decided upon by the Board of Directors at the time of grant. Upon dissolution or wind-up of the Company, First Preferred Shares are entitled to priority over common shares and Class B shares. The Company has Series I First Preferred Shares that are non-voting, may receive dividends as declared at the discretion of the Board of Directors, and are convertible to common shares at the holder’s discretion, on the basis of 30 Series I First Preferred Shares for one common share. The Company has Series II First Preferred Shares that are non-voting, may receive dividends as declared at the discretion of the Board of Directors, and are convertible to common shares at the holder’s discretion, on the basis of one Series II First Preferred Share for one common share. Holders may not convert Series I or Series II First Preferred Shares into common shares if, after giving effect to the exercise of conversion, the holder would have beneficial ownership or direction or control over common shares in excess of 4.99% of the then outstanding common shares. This limit may be raised at the option of the holder on 61 days’ prior written notice: (i) up to 9.99%, (ii) up to 19.99%, subject to clearance of a personal information form submitted by the holder to the Toronto Stock Exchange and (iii) above 19.99%, subject to approval by the Toronto Stock Exchange and stockholder approval. (b) Shares issued – year ended December 31, 2020 In January 2020, the Company completed an underwritten public offering of 41,279,090 common shares and 1,250,000 Series II Non-Voting Convertible First Preferred Shares, each issued at $2.75 per share. The number of shares sold include 5,547,272 common shares pursuant to the full exercise by the underwriters of their option to purchase additional common shares. The gross proceeds from this offering were $117.0 million before deducting offering expenses of $7.2 million. In September 2020, the Company issued 2,297,794 common shares at a price of $10.88 per share to Pfizer Inc. in a registered direct offering. The gross proceeds from this offering were $25.0 million, before deducting offering expenses of $0.1 million. In September 2020, the Company also completed an underwritten public offering of 11,500,000 common shares, issued at $13.00 per share. The number of shares sold include 1,500,000 common shares pursuant to the full exercise by the underwriters of their option to purchase additional common shares. The gross proceeds from this offering were $149.5 million, before deducting offering expenses of $9.1 million. During the year ended December 31, 2020, 10,084,325 common shares were issued on the exercise of 10,084,325 common share purchase warrants for proceeds of $9.7 million, and 1,750,000 Series II First Preferred Shares were issued on the exercise of 1,750,000 Series II First Preferred Share purchase warrants for proceeds of $1.7 million. During the year ended December 31, 2020, 17,171,541 Series I First Preferred Shares were converted into 572,384 common shares, and 5,118,403 Series II First Preferred Shares were converted into 5,118,403 common shares. 9. Stockholder’s equity (continued) (c) Shares issued – year ended December 31, 2019 In February 2019, the Company completed an underwritten public offering of 6,550,000 common share units and 12,200,000 Series II Non-Voting Convertible First Preferred Share units, each issued at $0.80 per unit. The gross proceeds from this offering were $15.0 million, before deducting offering expenses of $1.1 million. Each common share unit comprises one common share of the Company and one common share purchase warrant. Each common share purchase warrant will be exercisable for one common share at a price of $0.96 per common share purchase warrant for 60 months. Each preferred share unit comprises one Series II First Preferred Share and one Series II First Preferred Share purchase warrant. Each Series II First Preferred Share purchase warrant will be exercisable for one Series II First Preferred Share at a price of $0.96 per Series II First Preferred Share purchase warrant for 60 months. Each purchase warrant has a price protection feature that resets the exercise price of the warrant under certain conditions, including the issuance of common shares, or securities convertible into common shares, at prices below the exercise price. In addition, in the event of a “Fundamental Transaction” (as defined in the related warrant agreement, which generally includes any merger with another entity, the sale, transfer or other disposition of all or substantially all of the Company’s assets to another entity, or the acquisition by a person of more than 50% of the Company’s common shares), each warrant holder will have the right up to 90 days after the consummation of the Fundamental Transaction to require the Company to repurchase the warrant for a purchase price in cash equal to the Black-Scholes value (as calculated under the warrant agreement) of the then remaining unexercised portion of such warrant on the date of such Fundamental Transaction. The purchase warrants were recognized as liabilities, as the warrants were issued in US dollars, which differed from the Company’s functional currency. Proceeds were allocated amongst common shares, preferred shares and warrants by applying the residual method, with fair value of the warrants determined using the Black-Scholes model, resulting in an initial warrant liability of $8.4 million and $0.6 million of issuance costs allocated to warrants. Accordingly, $2.3 million and $4.3 million of residual gross proceeds were allocated to common shares and preferred shares, respectively; and $0.2 million and $0.3 million of issuance costs were allocated to common shares and preferred shares, respectively. For the year ended December 31, 2019, warrants were revalued each period end at fair value through profit and loss. The warrant liability was determined based on the fair value of warrants at the issue date and the reporting dates using the Black-Scholes model with the following assumptions: Issue Reporting date date February 28, 2019 December 31, 2019 Expected warrant life 5.0 years 4.2 years Risk-free interest rate 1.8 % 1.5 % Dividend yield 0.0 % 0 % Expected volatility 86.9 % 96.8 % The risk-free interest rate at the issue date and on the reporting date of December 31, 2019 was based on the implied yield on a Government of Canada zero-coupon issue with a remaining term equal to the expected term of the warrants. The expected volatility was based on the historical volatility for the Company. For the year ended December 31, 2019, $5.0 million was recognized as an expense relating to the fair valuation of the warrant liability. As of January 1, 2020, as a result of the Company’s change in functional currency to US dollars, the warrant liability was reclassified to equity. Accordingly $13.4 million was transferred from warrant liability to equity. 9. Stockholder’s equity (continued) (d) Reserved The Company has reserved for issuance the following common shares: December 31, 2020 December 31, 2019 Warrants for the purchase of common shares 1,515,675 11,600,000 Shares reserved for conversion of outstanding preferred shares 6,750,000 9,440,788 Shares reserved for exercise of outstanding stock options 5,326,710 5,366,645 Shares reserved for issuances under the 2020 Omnibus Equity Incentive Plan 8,005,953 — Shares reserved for issuances under the 2019 Inducement Stock Option Plan — 1,200,000 Shares reserved for issuances under the 2018 Stock Option Plan — 327,856 Shares reserved for redemption of outstanding deferred share units 2,219,226 — 23,817,564 27,935,289 |
Net loss per share
Net loss per share | 12 Months Ended |
Dec. 31, 2020 | |
Net loss per share | |
Net loss per share | 10. Net loss per share Basic net loss per share is calculated by dividing net loss by the weighted average shares outstanding during the period, without consideration for common share equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common share equivalents outstanding for the period. For purposes of the dilutive net loss per share calculation, preferred shares, warrants, stock options, and deferred share units are considered to be common share equivalents but are excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive; therefore, basic and diluted net loss per share were the same for all periods presented as a result of the Company’s net loss. The following common share equivalents were excluded from the computation of diluted net loss per share for the years ended December 31, because including them would have had an anti-dilutive effect. Year ended Year ended December 31, 2020 December 31, 2019 Series I First Preferred Shares — 572,385 Series II First Preferred Shares 6,750,000 8,868,403 Common warrants 1,515,675 11,600,000 Preferred warrants 5,400,000 7,150,000 Stock options 5,326,710 5,366,645 Deferred share units (equity-settled) 2,219,226 — 21,211,611 33,557,433 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-based compensation | |
Stock-based compensation | 11. Stock-based compensation (a) Stock option plans 2020 Omnibus Plan The 2020 Omnibus Equity Incentive Plan (“Omnibus Plan”) was adopted by the Board of Directors on May 6, 2020 and approved by the stockholders at the annual general and special meeting of stockholders held on June 30, 2020. Under the Omnibus Plan, the Company may grant non-statutory and incentive stock options, share appreciation rights, restricted share units, restricted share awards, unrestricted share awards, deferred share units and dividend equivalent rights. The maximum number of common shares issuable under the Omnibus Plan is 13,400,000 common shares. The Omnibus Plan replaces the 2018 Stock Option Plan, the 2016 Cash-Settled DSU Plan and the 2019 Inducement Stock Option Plan (the “Predecessor Plans”) as of July 1, 2020. As of December 31, 2020, the Company was entitled to issue an additional 8,005,953 common shares under the Omnibus Plan. From July 1, 2020 to December 31, 2020, the Company granted 2,637,950 stock options with a weighted average exercise price of $12.63 per share. The total fair value of stock options from July 1, 2020 to December 31, 2020, was $27.5 million and the weighted average grant date fair value was $10.43 per share. 2019 Inducement Stock Option Plan Stock options of the Corporation that were granted and are outstanding under the 2019 Inducement Stock Option Plan (“2019 Inducement Plan”) will remain subject to the terms and conditions of the 2019 Inducement Plan; however, no new stock options of the Corporation will be granted under the 2019 Inducement Plan. For the year ended December 31, 2020 no options were granted under the 2019 Inducement Plan. As of December 31, 2020 there were 1,275,000 stock options outstanding under the 2019 Inducement Plan. 2018 Stock Option Plan Stock options that were granted and are outstanding under the 2018 Stock Option Plan (“2018 Plan”) will remain subject to the terms and conditions of the 2018 Plan; however, no new stock options of the Corporation will be granted under the 2018 Plan after June 30, 2020. As of December 31, 2020, there were 1,429,760 stock options outstanding under the 2018 Plan. 11. Stock-based compensation (continued) For the six months ended June 30, 2020, the Company issued 7,000 stock options with a weighted average exercise price of $4.87 per share. The total fair value of stock options issued for the six months ended June 30, 2020 was $28 thousand and the weighted average grant date fair value was $3.95 per share. For the year ended December 31, 2020, 2,267,084 stock options with a weighted average exercise price of $2.64 per share were exercised and 31,499 stock options with a weighted average exercise price of $14.50 per share were cancelled or expired. Valuation and stock-based compensation expense Total stock-based compensation expense recorded related to stock options granted to employees and non-employees for the years ended December 31 were as follows (in thousands): $ $ Research and development 5,812 2,165 General and administrative 8,252 351 Total stock-based compensation expense 14,064 2,516 Stock-based compensation expense for employees were $13.6 million and $2.5 million for the years ended December 31, 2020 and 2019, respectively. Of the total stock-based compensation expense for employees for the year ended December 31, 2020, $12.5 million related to stock options accounted for as liability awards ($nil for the year ended December 31, 2019). Stock-based compensation expense for non-employees were $0.5 million and $nil for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, there was $56.1 million of unrecognized compensation expense related to unvested stock options that is expected to be recognized over a weighted average period of 2.9 years. 11. Stock-based compensation (continued) Changes in the number of stock options outstanding during the years ended December 31 were as follows: Weighted average Aggregate Weighted remaining intrinsic Number of average contractual life value (in options exercise price (in years) thousands) Outstanding at December 31, 2018 2,699,205 $ 7.75 7.0 — Granted 3,575,600 $ 0.40 Forfeited (200,215) $ 8.50 Cancelled/expired (707,945) $ 10.66 Outstanding at December 31, 2019 5,366,645 $ 2.44 9.0 2,246 Granted 2,644,950 $ 12.60 Exercised (2,267,084) $ 2.64 Forfeited (386,304) $ 2.81 Cancelled/expired (31,499) $ 14.50 Outstanding at December 31, 2020 5,326,708 $ 7.30 9.1 39,670 Exercisable at December 31, 2020 1,308,749 $ 4.67 7.8 13,294 The following table reflects the stock options outstanding as of December 31, 2020: Stock options outstanding Stock options exercisable Weighted average Weighted Weighted remaining average average Number contractual life (in exercise Number exercise Exercise prices outstanding years) price exercisable price $0.29 - $0.57 2,095,184 8.8 $ 0.37 709,688 $ 0.38 $2.98 - $3.88 210,776 7.9 $ 3.22 109,248 $ 3.22 $5.04 - $7.75 121,892 7.2 $ 6.26 106,750 $ 6.27 $8.87 - $9.62 86,112 5.3 $ 9.51 75,353 $ 9.49 $10.75 - $12.98 1,962,694 9.8 $ 11.98 173,660 $ 11.53 $13.66 - $17.18 833,050 9.1 $ 14.37 118,050 $ 14.79 $20.13 - $22.44 17,000 4.7 $ 22.30 16,000 $ 22.44 5,326,708 9.1 $ 7.30 1,308,749 $ 4.67 Stock-based compensation expense was determined based on the fair value of the options at the date of measurement using the Black-Scholes option pricing model with the weighted average assumptions for the years ended December 31 as follows: Expected option life years years Risk-free interest rate 0.5 % 1.4 % Dividend yield 0 % 0 % Expected volatility 110 % 89 % 11. Stock-based compensation (continued) The Black-Scholes option pricing model was developed to estimate the fair value of freely tradable, fully transferable options without vesting restrictions, which significantly differs from the Company's stock option awards. This model also requires highly subjective assumptions, including future stock price volatility and average option life, which significantly affect the calculated values. The risk-free interest rate at December 31, 2020 is based on the implied yield on a US Government bond with a remaining term equal to the expected term of the option. The risk-free interest rate at December 31, 2019 is based on the implied yield on a Government of Canada zero-coupon issue with a remaining term equal to the expected term of the option. The expected volatility is based on the historical volatility for the Company. The life of the options is estimated considering the vesting period at the grant date, the life of the option and the average length of time similar grants have remained outstanding in the past. The dividend yield was excluded from the calculation since it is the present policy of the Company to retain all earnings to finance operations and future growth. (b) Deferred share units 2016 Cash-Settled DSU Plan As noted above, the Board of Directors approved the Omnibus Plan, which was approved by the stockholders on June 30, 2020. The Omnibus Plan will govern the terms of the Company’s stock option and DSU grants, and provides for equity settlement of DSUs issued for director compensation. In conjunction with the approval of the Omnibus Plan, each director holding DSUs under the Cash-Settled DSU Plan entered into an agreement with the Company to have their existing DSUs be governed by the Omnibus Plan. No new DSUs will be granted under the 2016 Cash-Settled DSU Plan. The Omnibus Plan provides for equity or cash settlement of DSUs issued for director compensation, at the option of the Company. It is the Company’s intention to settle all DSUs by equity. The ratification of the Omnibus Plan on June 30, 2020, which now provides for equity settlement of DSUs issued for director compensation, was treated as a modification under ASC 718 Compensation – Stock Compensation and the Company’s DSUs were classified as equity instead of as a liability. Accordingly, as of June 30, 2020, $24.9 million was transferred from a liability to equity. For the years ended December 31, 2020 and 2019, there were 41,294 and 2,739,587 DSUs issued, respectively. For the years ended December 31, 2020 and 2019, stock-based compensation expense of $0.3 million and $0.9 million, respectively, was recognized relating to the issuance of DSUs, and an expense of $22.1 million and $1.1 million, respectively, was recorded relating to the revaluation of the DSU liability up to June 30, 2020 prior to the transfer to equity. The number of DSUs outstanding as at December 31, 2020 and 2019 were 2,219,226 and 3,045,821, respectively. During the years ended 2020 and 2019, 867,888 and 28,748 DSUs were redeemed, respectively. |
License agreements
License agreements | 12 Months Ended |
Dec. 31, 2020 | |
License agreements | |
License agreements | 12. License agreements In June 2020, the Company entered into a right-to-use license agreement for one of its small molecule compounds, with initial license fees of $0.1 million. Sales-based royalties, anniversary payments and milestone payments will be recognized when earned in future periods. For the years ended December 31, 2020 and 2019, the Company recognized licensing revenues consisting of initial license fees and license extension fees of $0.1 million and $0.1 million, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Income taxes | 13. Income taxes Income taxes recoverable have not been recognized in the consolidated statements of operations and comprehensive loss, as the Company has been incurring losses since inception, and it is not probable that future taxable profits will be available against which the accumulated tax losses can be utilized. (a) Unrecognized deferred tax assets The types of temporary differences that give rise to significant portions of the Company’s deferred income tax assets and liabilities as of December 31 are as follows (in thousands): $ $ Deferred tax assets: Non‑capital losses carried forward 40,986 33,175 Tax credits carried forward 6,453 5,905 Tax basis of property and equipment and intangible assets in excess of accounting basis 2,827 2,732 Scientific research and experimental development expenditures 10,062 9,255 Share issue costs and other 4,098 675 Total gross deferred tax assets 64,426 51,742 Less: Valuation allowance (64,426) (51,742) Net deferred taxes — — The Company has established a valuation allowance against all of its net deferred tax assets. Management considered all available evidence, both positive and negative, including but not limited to historical operating results, income or loss in recent periods, cumulative losses in recent years, forecasted earnings, future taxable income, and significant risk and uncertainty related to forecasts, and concluded that the deferred tax assets are not more likely than not to be realized. The Company applies ASC 740 related to accounting for uncertainty in income taxes. The Company’s reserves related to income taxes are based on a determination of whether, and how much of, a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. At December 31, 2020 and 2019, the Company had no unrecognized tax benefits. Interest and penalty charges, if any, related to unrecognized tax benefits would be classified as income tax expense in the accompanying consolidated statements of operations and comprehensive loss. 13. Income taxes (continued) (b) Research and development tax credits and expenditure carry-forwards As at December 31, 2020 and 2019, the Company had available Canadian research and development expenditures of approximately $38.0 million and $34.9 million, respectively, for income tax purposes, which may be carried forward indefinitely to reduce future years’ taxable income. As at December 31, 2020 and 2019, the Company also had unclaimed Canadian scientific research and development tax credits of $8.2 million and $7.5 million, respectively, which are available to reduce future taxes payable, which expire from 2020 through 2040. (c) Net operating loss carry-forwards The Company had net operating loss carry-forwards for income tax purposes of approximately $154.7 million as of December 31, 2020 available to reduce future taxable income which will expire from 2025 to 2040, if not utilized. (d) Income tax rate reconciliation A reconciliation of income tax expense computed using the Canadian Federal and Provincial statutory income tax rate to the Company’s effective income tax rate for the years ended December 31 are as follows (in thousands): $ $ Canadian statutory income tax rate 26.5 % 26.5 % Income tax recovery based on statutory income tax rate (17,554) (11,239) Investment tax credits (373) (677) Stock-based compensation and other 6,743 1,736 Change in unrecognized tax assets 11,286 10,208 Income tax expense 102 28 The Company files income tax returns in Canada, including the Ontario province jurisdiction and the United States. The tax years 2017 to 2020 remain open to Canadian federal and province examination to the extent of the utilization of net operating loss and credit carryovers. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 14. Commitments and contingencies The Company enters into vendor agreements for the provision of goods and services, which includes manufacturing services with contract manufacturing organizations and development services with contract research organizations. These agreements may include certain provisions for purchase obligations and termination obligations that could require payments for the cancellation of committed purchase obligations or for early termination of the agreements. The amount of the cancellation or termination payments vary and are based on the timing of the cancellation or termination and the specific terms of the agreement and therefore are cancelable contracts. 14. Commitments and contingencies (continued) The Company enters into research, development and license agreements in the ordinary course of business where the Company receives research services and rights to proprietary technologies. Milestone and royalty payments that may become due under various agreements are dependent on, among other factors, clinical trials, regulatory approvals and ultimately the successful development of a new drug, the outcome and timing of which are uncertain. Under the license agreement for SIRPαFc, the Company has future contingent milestones payable of $0.2 million and $0.2 million on the first patient dosed in phase 2 and 3 trials, respectively, regulatory milestones on their first achievement totalling $3.8 million, and royalties on commercial sales. The Company has two agreements with Catalent Pharma Solutions pursuant to which Trillium acquired the right to use a proprietary expression system for the manufacture of two SIRPαFc constructs. Consideration for each license includes potential pre-marketing approval milestones of up to $0.9 million and aggregate sales milestone payments of up to $28.8 million. The Company periodically enters into research and license agreements with third parties that include indemnification provisions customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of claims arising from research and development activities undertaken by or on behalf of the Company. In some cases, the maximum potential amount of future payments that could be required under these indemnification provisions could be unlimited. These indemnification provisions generally survive termination of the underlying agreement. The nature of the indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay. Historically, the Company has not made any indemnification payments under such agreements and no amount has been accrued in the consolidated financial statements with respect to these indemnification obligations. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation These accompanying consolidated financial statements, including comparatives, have been prepared in accordance with US generally accepted accounting principles (“US GAAP”). These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Trillium Therapeutics USA Inc. The financial statements of the subsidiaries are prepared for the same reporting period as the Company using consistent accounting policies. Intercompany transactions, balances and gains and losses on transactions between the Company and the subsidiaries are eliminated. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities at the date of the consolidated financial statements, reported amounts of revenue and expenses during the reporting periods, and related disclosures in the accompany notes. Significant estimates and assumptions reflected in 2. Summary of significant accounting policies (continued) these consolidated financial statements include, but are not limited to, accrued clinical and contract research organization costs, stock-based compensation expense and valuation of warrant liability. The Company reviews its estimates and underlying assumptions on an ongoing basis. Revisions are recognized in the period in which the estimates are revised and may impact future periods. Actual results could differ materially from these estimates and assumptions. COVID-19 Given the ongoing and dynamic nature of the circumstances surrounding the COVID-19 pandemic, it is difficult to predict how significant the impact of COVID-19, including any responses to it, will be on the global economy and the business of the Company or for how long any disruptions are likely to continue. The extent of such impact will depend on future developments, which are highly uncertain, rapidly evolving and difficult to predict, including new information which may emerge about COVID-19 and additional actions which may be taken to contain it. Such developments could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flow, and exposure to credit risk. The Company is constantly evaluating the situation and monitoring any impacts or potential impacts to its business. |
Foreign currency translation | (c) Foreign currency translation Transactions in foreign currencies are translated to the functional currency at the rate on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot rate of exchange at each reporting date, with all differences taken to profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. Functional currency Management has used its judgment to determine the functional currency that most faithfully represents the economic effects of the underlying transactions, events and conditions and considered various factors including the currency of historical and future expenditures and the currency in which funds from financing activities are generated. The Company’s functional currency is only changed when there is a material change in the underlying transactions, events and conditions. On January 1, 2020, the Company’s functional currency was changed to US dollars from Canadian dollars. The change was made to reflect that US dollars has become the currency of the primary economic environment in which the Company operates, counting for a significant part of the Company’s labour, operations and financing. The change has been implemented prospectively. |
Fair value measurements | (d) Fair value measurements In accordance with ASC 820 Fair Value Measurement , the Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: · Level 1: Inputs which include quoted prices in active markets for identical assets and liabilities. · Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The hierarchy requires the use of observable market data when available. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value of the stock option liability is determined using a Level 3 input that is unobservable and is significant to the fair value of the liability (i.e. expected volatility). For the year ended December 31, 2019, the warrant liability was classified as Level 3. Cash and cash equivalents, marketable securities, amounts receivable, accounts payable and accrued liabilities, and other current liabilities due within one year, are all short-term in nature and, as such, their carrying values approximate fair values. Marketable securities, which primarily include guaranteed investment certificates and corporate bonds held by the Company, are valued at amortized cost. |
Concentrations of credit risk and off-balance sheet risk | (e) Concentrations of credit risk and off-balance sheet risk Financial instruments that potentially expose the Company to concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities, and amounts receivable. The Company follows an investment policy to mitigate against the deterioration of principal and to enhance the Company’s ability to meet its liquidity needs. The Company maintains its cash and cash equivalent balances with high-quality financial institutions and invests in high-grade short-term instruments. Consequently, the Company believes that such funds are subject to minimal credit risk. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. |
Cash and cash equivalents, and marketable securities | (f) Cash and cash equivalents, and marketable securities Cash and cash equivalents Cash equivalents include guaranteed investment certificates ($nil as of December 31, 2020 and $7.0 million as of December 31, 2019) with an original maturity of 90 days or less. 2. Summary of significant accounting policies (continued) Marketable securities Marketable securities consist of guaranteed investment certificates and bonds with an original maturity of greater than 90 days when purchased. Marketable securities with a remaining maturity date greater than one year from the balance sheet date are classified as non-current. The Company has classified its marketable securities as held-to-maturity and they are measured at amortized cost. The Company does not intend to sell its marketable securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Accrued interest receivable on marketable securities is included within amounts receivable on the consolidated balance sheets. |
Property and equipment | (g) Property and equipment Recognition and measurement Items of property and equipment are measured at cost net of accumulated depreciation and accumulated impairment losses. Cost includes the expenditure that is directly attributable to the acquisition of the asset. When parts of an item of property and equipment have different useful lives, they are accounted for as separate items of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with the carrying amount of property and equipment, and are recognized in profit or loss. Depreciation The estimated useful lives and the methods of depreciation are as follows: Asset Basis Lab equipment 20% declining balance Computer equipment 30% declining balance Office equipment 20% declining balance Leasehold improvements Straight-line over expected lease term Estimates for depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Maintenance and repairs that do not extend the life or improve the asset are expensed when incurred. |
Intangible assets | (h) Intangible assets Intangible assets that consist of intellectual property acquired in a business combination and that are used in research and development activities are recognized and measured at fair value on the acquisition date. These are considered indefinite lived intangible assets until the research is complete (in which case they become finite-lived) or they are abandoned (at which time they are written off). Intangible assets with indefinite lives are not amortized, but tested for impairment annually, or whenever there is an impairment indicator. Intangible assets that are not deemed to have an indefinite life are amortized and recognized in profit or loss on a straight-line basis over the estimated useful lives of the intangible assets from the date they are available for use in the manner intended by management. 2. Summary of significant accounting policies (continued) The amortization method and amortization period of an intangible asset with a finite life is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. |
Impairment of long-lived assets | (i) Impairment of long-lived assets The Company's long-lived assets are reviewed at each reporting date to determine whether events or changes in circumstances indicate there is any impairment. If such an indication exists, the recoverable amount is estimated. The recoverability of an asset or asset group is measured by the sum of the estimated undiscounted future cash flows expected to result from the use and eventual disposal of the relevant asset or asset group. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generate cash inflows from continuing use that are largely independent of cash inflows of other assets. If such assets are considered impaired, an impairment loss is recognized and measured by the amount by which the carrying amount of an asset or asset group exceeds its estimated fair value. Indefinite-lived intangible assets are tested for impairment annually, or more frequently if indicators of impairment are present. To date, no such impairment losses have been recorded. |
Leases | (j) Leases The Company determines if an arrangement is or contains a lease at inception. If a lease is identified in an arrangement, then the Company determines whether it is an operating lease or a finance lease. A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: · There is a transfer of ownership of the leased asset to the Company by the end of the lease term. · The Company holds an option to purchase the leased asset that it is reasonably certain to exercise. · The lease term is for a major part of the remaining economic life of the leased asset. · The present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset. · The nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are classified as operating leases. The Company does not have any finance leases. Operating leases are recorded as operating lease right-of-use assets and operating lease liabilities in the Company’s consolidated balance sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses an implicit rate when readily available, or its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The operating lease right-of-use assets also include any lease prepayments made and reduced by lease incentives. The Company’s lease terms may include options to extend the lease when it is reasonably certain that such options will be exercised. 2. Summary of significant accounting policies (continued) Lease expenses are recognized on a straight-line basis over the lease term. The Company elected the short-term lease recognition exemption. Additionally, tenant improvement allowances are recognized as a reduction to lease expense on a straight-line basis over the respective lease term. |
Revenue recognition | (k) Revenue recognition The Company enters into licensing agreements which are within the scope of ASC 606, Revenue from Contracts with Customers (“ASC 606”), under which the Company licenses rights to certain of the Company’s product candidates. The terms of these arrangements typically include payment of one or more of the following: non-refundable, upfront fees; reimbursement of patent costs; development, regulatory, and commercial milestone payments; and royalties on net sales of licensed products. Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The Company’s contracts often include development and regulatory milestone payments which are assessed under the most likely amount method and constrained if it is probable that a significant revenue reversal would occur. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues in the period of adjustment. To date, the Company has not recognized any consideration related to the achievement of development, regulatory, or commercial milestone revenue resulting from any of the Company’s licensing agreements. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any consideration related to sales-based royalty revenue resulting from any of the Company’s licensing agreements. |
Research and development costs | (l) Research and development costs Expenditures relating to research and development are expensed as incurred. Research and development expenses include external expenses incurred under arrangements with third parties; salaries and personnel-related costs, including non-cash stock-based compensation expense; license fees to acquire in-process technology and other expenses, which include direct and allocated expenses for laboratory, facilities and other costs, partially offset by fully refundable research and development tax credits. The Company recognizes the benefit of refundable research and development tax credits as a reduction of research and development costs when there is reasonable assurance that the amount claimed will be recovered. Intellectual property acquired separately for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise) are expensed in research and development costs at the time the costs are incurred. In certain circumstances, the Company is required to make non-refundable advance payments to vendors for goods or services that will be received in the future for use in research and development activities. In such circumstances, the non-refundable advance payments are deferred and capitalized, even when there is no alternative future use for the research and development, until related goods or services are provided. In circumstances where amounts have been paid in excess of costs incurred, the Company records a prepaid expense. As of December 31, 2020, the Company had prepaid expenses of $6.4 million, a significant amount of which relates to advance payments to contract manufacturing organizations. The Company’s manufacturing, non-clinical studies, and clinical trials are performed by third-party contract research organizations (“CROs”). Some of these expenses are billed monthly for services performed, while others are billed based upon milestones achieved. The Company records accrued liabilities for estimated ongoing research costs. When evaluating the adequacy of the accrued liabilities, the Company analyzes progress of the studies, including the phase or completion of events, invoices received and contracted costs. The Company’s estimates are highly dependent upon the timeliness and accuracy of the data provided by the respective CROs regarding the status of the contracted activity, with adjustments made when deemed necessary. Significant estimates are made in determining the accrued balances at the end of any reporting period. Actual results could differ from the Company’s estimates. |
Patent Costs | (m) Patent Costs The Company expenses costs associated with intellectual property-related matters, such as patent application expenses and related legal costs, as incurred and classifies such costs as general and administrative expenses in the accompanying statements of operations and comprehensive loss. |
Stock-based compensation | (n) Stock-based compensation The Company early-adopted Accounting Standards Update (“ASU”) No. 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”) in 2018. Under this new standard, stock-based payment awards granted to non-employees as consideration for services received are measured on the grant date at the fair value of the equity instruments that the Company is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The grant-date fair value of stock-based payment awards granted to employees is recognized as personnel costs, with a corresponding increase in additional paid-in capital, over the period that the employees unconditionally become entitled to the awards. The grant-date fair value is determined using the Black-Scholes option-pricing model. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that met the related service and non-market vesting conditions at the vesting date. The unvested stock-based compensation related to stock option forfeitures are recognized as they occur. As of January 1, 2020, the Company’s functional currency changed to US dollars. As a result of the change in functional currency, stock options issued to Canadian employees are continued to be classified as equity, and stock options issued to US employees under the 2018 Stock Option Plan and the 2019 Inducement Plan are to be classified as a stock option liability as they have exercise prices denominated in Canadian dollars. The change in functional currency was treated as a stock option modification and accordingly $0.2 million was reclassified from additional paid-in capital to stock option liability on January 1, 2020. For each reporting period after the modification date, the stock option liability is adjusted so that it equals the portion of the requisite service provided multiplied by the modified award’s fair value at the end of the reporting period. All stock options granted under the Company’s 2020 Omnibus Equity Incentive Plan (“Omnibus Plan”) have exercise prices denominated in US dollars. |
Income taxes | (o) Income taxes The Company accounts for income taxes using an asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the temporary differences between the financial reporting and tax reporting basis of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when these differences are expected to reverse. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and they relate to income taxes levied by the same tax authority on the same taxable entity. The Company records a valuation allowance to reduce its deferred tax assets to reflect the net amount that it believes as more likely than not to be realized. Realization of the deferred tax assets is dependent on the generation of future taxable income, the amount and timing of which are uncertain. The valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Based upon the weight of available evidence at December 31, 2020, the Company continues to maintain a full valuation allowance against all of its deferred tax assets. |
Comprehensive loss | (p) Comprehensive loss Comprehensive loss represents all changes in equity except those resulting from transactions with stockholders. The Company’s foreign currency translation adjustments during the periods represents the components of other comprehensive income that is excluded from the reported net loss. |
Net loss per share | (q) Net loss per share Basic loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similar to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares for the assumed exercise of stock options and warrants, redemption of deferred share units and conversion of preferred shares, if dilutive. The number of additional shares is calculated by assuming that outstanding preferred shares would convert to common shares and that outstanding stock options and warrants would be exercised and the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. The inclusion of the Company's stock options, warrants, deferred share units and preferred shares in the computation of diluted loss per share has an antidilutive effect on the loss per share and has therefore been excluded from the calculation of diluted loss per share. |
Segment Information | (r) Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company and the Company’s chief operating decision maker, the Company’s Chief Executive Officer, views the Company’s operations and manages its business as a single operating segment, which is the research and development therapies for the treatment of cancer. The Company operates in the US and Canada. |
Adopted and recent accounting pronouncements | (s) Adopted and recent accounting pronouncements Adopted accounting pronouncements as of January 1, 2019 Leases The Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) on January 1, 2019 using the modified retrospective approach. This new standard amends the guidance for the accounting and disclosure of leases and requires that lessees recognize on the balance sheet both the assets and liabilities that arise from leases, including leases classified as operating leases under previous guidance (ASC 840, Leases ), and disclose qualitative and quantitative information about leasing arrangements. The Company elected the package of practical expedients permitted under the new standard (ASC 842 Leases (“ASC 842”)), and applied it to all its leases at the transition date without reassessing (a) whether the contracts contain a lease under ASC 842, (b) whether classification of the operating leases would be different in accordance with ASC 842 or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in ASC 842 at lease commencement. In addition, the Company also elected the short-term lease practical expedients allowed under the standard. 2. Summary of significant accounting policies (continued) As a result of the adoption of ASC 842, the Company recorded a right-of-use asset of $0.5 million and a lease liability $0.6 million on January 1, 2019 related to its Mississauga facility operating lease. The impact on the Company’s accumulated deficit as of the adoption date was $0.1 million. This standard does not have material impact on the Company’s consolidated results of operations or cash flows. Adopted accounting pronouncements as of January 1, 2020 The Company adopted the following standards as of January 1, 2020. The adoption of these standards did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820). The amendments in this ASU modify the disclosure requirements on fair value measurements in ASC 820 Fair Value Measurement . Various disclosure requirements have been removed, including the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements held at the end of the reporting period. The ASU also modified various disclosure requirements and added some disclosure requirements for Level 3 fair value measurements. Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income are to present them at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The Company has determined that the adoption of this standard will not have a material impact on the 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 | |
Schedule of estimated useful lives and the methods of depreciation of property and equipment | Asset Basis Lab equipment 20% declining balance Computer equipment 30% declining balance Office equipment 20% declining balance Leasehold improvements Straight-line over expected lease term |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Schedule of assets and liabilities measured at fair value on recurring basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019 are as follows (in thousands): Quoted prices in Significant other Significant active markets observable inputs unobservable inputs Total (Level 1) (Level 2) (Level 3) $ $ $ $ December 31, 2020 Stock option liability 3,930 — — 3,930 Total liabilities 3,930 — — 3,930 December 31, 2019 Assets Cash and cash equivalents Guaranteed investment certificates 7,000 7,000 — — Total assets 7,000 7,000 — — Liabilities Warrant liability 13,370 — — 13,370 Total liabilities 13,370 — — 13,370 |
Stock option | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Schedule of change in fair value of the stock option liability | The change in fair value of the stock option liability for the year ended December 31, 2020 was as follows (in thousands): $ Beginning balance — Reclassification to stock option liability due to change in functional currency 225 Change in fair value of stock option liability 12,507 Exercises of stock options (8,802) Ending balance 3,930 |
Amounts receivable (Tables)
Amounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Amounts receivable | |
Schedule of amounts receivable | The Company’s amounts receivable consisted of the following as of December 31 (in thousands): $ $ Research and development tax credits receivable 469 289 Interest receivable on marketable securities 478 38 Total 947 327 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and equipment | |
Schedule of property and equipment | Property and equipment, net consisted of the following as of December 31 (in thousands): $ $ Laboratory equipment 1,477 1,477 Office equipment and leasehold improvements 2,127 2,127 Computer equipment 263 263 Total property and equipment, gross 3,867 3,867 Less: accumulated depreciation (3,089) (2,498) Property and equipment, net 778 1,369 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of future minimum lease payments | Future minimum lease payments under non-cancellable lease agreements as of December 31, 2020 were as follows (in thousands): December 31, 2020 $ 2021 343 2022 452 2023 184 2024 46 2025 — 2026 and beyond — Total minimum lease payments 1,025 Less: Imputed interest (194) Present value of lease liabilities 831 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued expenses | |
Schedule of components of accrued expenses | The Company’s accrued expenses consisted of the following as of December 31 (in thousands): $ $ Accrued employee compensation 1,507 1,474 Accrued clinical and contract research organization costs 5,978 6,765 Other accrued expenses 1,802 715 Amounts due to related parties 36 2,775 Total 9,323 11,729 |
Stockholder's equity (Tables)
Stockholder's equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholder's equity | |
Assumption used to value warrants | Issue Reporting date date February 28, 2019 December 31, 2019 Expected warrant life 5.0 years 4.2 years Risk-free interest rate 1.8 % 1.5 % Dividend yield 0.0 % 0 % Expected volatility 86.9 % 96.8 % |
Schedule of shares reserved for future issuance | December 31, 2020 December 31, 2019 Warrants for the purchase of common shares 1,515,675 11,600,000 Shares reserved for conversion of outstanding preferred shares 6,750,000 9,440,788 Shares reserved for exercise of outstanding stock options 5,326,710 5,366,645 Shares reserved for issuances under the 2020 Omnibus Equity Incentive Plan 8,005,953 — Shares reserved for issuances under the 2019 Inducement Stock Option Plan — 1,200,000 Shares reserved for issuances under the 2018 Stock Option Plan — 327,856 Shares reserved for redemption of outstanding deferred share units 2,219,226 — 23,817,564 27,935,289 |
Net loss per share (Tables)
Net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net loss per share | |
Potentially dilutive securities excluded from computation of earnings per share | Year ended Year ended December 31, 2020 December 31, 2019 Series I First Preferred Shares — 572,385 Series II First Preferred Shares 6,750,000 8,868,403 Common warrants 1,515,675 11,600,000 Preferred warrants 5,400,000 7,150,000 Stock options 5,326,710 5,366,645 Deferred share units (equity-settled) 2,219,226 — 21,211,611 33,557,433 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-based compensation | |
Share-based compensation related to options | Total stock-based compensation expense recorded related to stock options granted to employees and non-employees for the years ended December 31 were as follows (in thousands): $ $ Research and development 5,812 2,165 General and administrative 8,252 351 Total stock-based compensation expense 14,064 2,516 |
Changes in the number of options outstanding | Weighted average Aggregate Weighted remaining intrinsic Number of average contractual life value (in options exercise price (in years) thousands) Outstanding at December 31, 2018 2,699,205 $ 7.75 7.0 — Granted 3,575,600 $ 0.40 Forfeited (200,215) $ 8.50 Cancelled/expired (707,945) $ 10.66 Outstanding at December 31, 2019 5,366,645 $ 2.44 9.0 2,246 Granted 2,644,950 $ 12.60 Exercised (2,267,084) $ 2.64 Forfeited (386,304) $ 2.81 Cancelled/expired (31,499) $ 14.50 Outstanding at December 31, 2020 5,326,708 $ 7.30 9.1 39,670 Exercisable at December 31, 2020 1,308,749 $ 4.67 7.8 13,294 |
Options outstanding by exercise price range | Stock options outstanding Stock options exercisable Weighted average Weighted Weighted remaining average average Number contractual life (in exercise Number exercise Exercise prices outstanding years) price exercisable price $0.29 - $0.57 2,095,184 8.8 $ 0.37 709,688 $ 0.38 $2.98 - $3.88 210,776 7.9 $ 3.22 109,248 $ 3.22 $5.04 - $7.75 121,892 7.2 $ 6.26 106,750 $ 6.27 $8.87 - $9.62 86,112 5.3 $ 9.51 75,353 $ 9.49 $10.75 - $12.98 1,962,694 9.8 $ 11.98 173,660 $ 11.53 $13.66 - $17.18 833,050 9.1 $ 14.37 118,050 $ 14.79 $20.13 - $22.44 17,000 4.7 $ 22.30 16,000 $ 22.44 5,326,708 9.1 $ 7.30 1,308,749 $ 4.67 |
Option pricing model assumptions | Expected option life years years Risk-free interest rate 0.5 % 1.4 % Dividend yield 0 % 0 % Expected volatility 110 % 89 % |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Schedule of deferred income tax assets and liabilities | The types of temporary differences that give rise to significant portions of the Company’s deferred income tax assets and liabilities as of December 31 are as follows (in thousands): $ $ Deferred tax assets: Non‑capital losses carried forward 40,986 33,175 Tax credits carried forward 6,453 5,905 Tax basis of property and equipment and intangible assets in excess of accounting basis 2,827 2,732 Scientific research and experimental development expenditures 10,062 9,255 Share issue costs and other 4,098 675 Total gross deferred tax assets 64,426 51,742 Less: Valuation allowance (64,426) (51,742) Net deferred taxes — — |
Income tax rate reconciliation | A reconciliation of income tax expense computed using the Canadian Federal and Provincial statutory income tax rate to the Company’s effective income tax rate for the years ended December 31 are as follows (in thousands): $ $ Canadian statutory income tax rate 26.5 % 26.5 % Income tax recovery based on statutory income tax rate (17,554) (11,239) Investment tax credits (373) (677) Stock-based compensation and other 6,743 1,736 Change in unrecognized tax assets 11,286 10,208 Income tax expense 102 28 |
Description of the business (De
Description of the business (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Program | Dec. 31, 2019USD ($) | |
Description of the business | ||
Number of clinical programs | Program | 2 | |
Net losses | $ 59,346 | $ 38,082 |
Accumulated deficit | 249,375 | $ 190,029 |
Available cash and cash equivalents and marketable securities | $ 291,200 |
Summary of significant accoun_4
Summary of significant accounting policies - Cash and cash equivalents, and marketable securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of significant accounting policies | ||
Guaranteed investment certificates | $ 0 | $ 7 |
Summary of significant accoun_5
Summary of significant accounting policies - Property and equipment (Details) | Dec. 31, 2020 |
Lab equipment | |
Property, Plant and Equipment [Line Items] | |
Percentage basis of declining balance depreciation method | 20.00% |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Percentage basis of declining balance depreciation method | 30.00% |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Percentage basis of declining balance depreciation method | 20.00% |
Summary of significant accoun_6
Summary of significant accounting policies - Impairment of long-lived assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Summary of significant accounting policies | |
Impairment losses | $ 0 |
Summary of significant accoun_7
Summary of significant accounting policies - Research and development costs (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of significant accounting policies | ||
Prepaid expenses | $ 6,417 | $ 299 |
Summary of significant accoun_8
Summary of significant accounting policies - Stock-based compensation (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2020 |
Summary of significant accounting policies | ||
Reclassification of stock options from equity to liability | $ 200 | $ 225 |
Summary of significant accoun_9
Summary of significant accounting policies - Adopted accounting pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 732 | $ 949 | |
Operating Lease, Liability | 831 | ||
Accumulated deficit | $ (249,375) | $ (190,029) | |
ASC 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease, Practical Expedients, Package [true false] | true | ||
ASC 842 | Adoption of ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 500 | ||
Operating Lease, Liability | 600 | ||
Accumulated deficit | $ 100 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, transfer from level 1 to level 2 | $ 0 | $ 0 |
Assets, transfer from level 2 to level 1 | 0 | 0 |
Liabilities, transfer from level 1 to level 2 | 0 | 0 |
Liabilities, transfer from level 2 to level 1 | 0 | 0 |
Assets, transfers in / out of level 3 | 0 | 0 |
Liabilities, transfers in / out of level 3 | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,000 | |
Liabilities | 3,930 | 13,370 |
Recurring | Stock option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 3,930 | 0 |
Recurring | Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 13,370 | |
Recurring | Guaranteed investment certificates | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,000 | |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,000 | |
Level 1 | Recurring | Guaranteed investment certificates | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 7,000 | |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 3,930 | 13,370 |
Level 3 | Recurring | Stock option | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 3,930 | |
Level 3 | Recurring | Warrants | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 13,370 |
Fair value measurements - Chang
Fair value measurements - Change in fair value of stock option (Details) - Stock option $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Reclassification to stock option liability due to change in functional currency | $ 225 |
Change in fair value of stock option liability | 12,507 |
Exercises of stock options | (8,802) |
Ending balance | 3,930 |
Research and development | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Change in fair value of stock option liability | 4,800 |
General and administrative | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Change in fair value of stock option liability | $ 7,700 |
Amounts receivable (Details)
Amounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amounts receivable | ||
Research and development tax credits receivable | $ 469 | $ 289 |
Interest receivable on marketable securities | 478 | 38 |
Amounts receivable | $ 947 | $ 327 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 3,867 | $ 3,867 |
Less: accumulated depreciation | (3,089) | (2,498) |
Property and equipment, net | 778 | 1,369 |
Depreciation expense | 600 | 800 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,477 | 1,477 |
Office equipment and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 2,127 | 2,127 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 263 | $ 263 |
Leases - Paragraphs (Details)
Leases - Paragraphs (Details) $ in Millions | Apr. 01, 2019USD ($)item | Jan. 01, 2019USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | ||||
Rent Expense | $ | $ 0.4 | $ 0.3 | ||
Variable lease payments | $ | $ 0.1 | $ 0.1 | ||
Weighted average incremental borrowing rate | 15.00% | |||
Weighted average remaining lease term | 2 years 6 months | |||
2015 Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Square feet | item | 22,003 | |||
Initial term | 10 years | |||
Number of further extension terms | item | 2 | |||
Terms of each extension | 5 years | |||
Option to terminate lease | true | |||
Period before option to terminate lease | 5 years | |||
Period for which written notice is required for termination of lease | 9 months | |||
Low end of the threshed period for calculating termination terms | 61 months | |||
High end of the threshed period for calculating termination terms | 84 months | |||
Rate to be applied for calculating termination payment | 8.00% | |||
Number of months minimum rent and additional rent to be applied when termination occurs between the low and high end of threshold period | item | 4 | |||
Number of months minimum rent and additional rent to be applied when termination occurs after high end of threshold period | item | 2 | |||
Amount of lease inducement | $ | $ 0.2 | |||
2019 Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Square feet | item | 3,200 | |||
Initial term | 5 years | |||
Option to extend lease | false | |||
Period for each base rent increases | 13 months | |||
Amount of first annual base rent increases | $ | $ 0.2 | |||
Amount of lease inducement | $ | $ 0.1 |
Leases - Future minimum lease (
Leases - Future minimum lease (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 343 |
2022 | 452 |
2023 | 184 |
2024 | 46 |
Total minimum lease payments | 1,025 |
Less: Imputed interest | (194) |
Present value of lease liabilities | $ 831 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses | ||
Accrued employee compensation | $ 1,507 | $ 1,474 |
Accrued clinical and contract research organization costs | 5,978 | 6,765 |
Other accrued expenses | 1,802 | 715 |
Amounts due to related parties | 36 | 2,775 |
Total | $ 9,323 | $ 11,729 |
Stockholder's equity - Authoriz
Stockholder's equity - Authorized (Details) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Common Shares | |
Common Stock, shares authorized | Unlimited |
Common Stock, no par value | |
Class B Shares | |
Common Stock, shares authorized | Unlimited |
Common Stock, no par value | |
Stock conversion ratio | 1 |
First Preferred Shares | |
Preferred Stock, shares authorized | Unlimited |
Preferred shares, no par value | |
Series I preferred shares | |
Stock conversion ratio | 30 |
Limitation on conversion, beneficial ownership percentage | 4.99% |
Limitation on conversion, period of notice | 61 days |
Conversion limitation, holder ownership percentage | 9.99% |
Conversion limitation, holder ownership percentage, personal information form | 19.99% |
Conversion limitation, holder ownership percentage, Toronto Stock Exchange and shareholder approval | 19.99% |
Series II preferred shares | |
Stock conversion ratio | 1 |
Limitation on conversion, beneficial ownership percentage | 4.99% |
Limitation on conversion, period of notice | 61 days |
Conversion limitation, holder ownership percentage | 9.99% |
Conversion limitation, holder ownership percentage, personal information form | 19.99% |
Conversion limitation, holder ownership percentage, Toronto Stock Exchange and shareholder approval | 19.99% |
Stockholder's equity - Shares I
Stockholder's equity - Shares Issued (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Jan. 31, 2020 | Feb. 28, 2019 | Dec. 31, 2020 | |
Proceeds from exercise of warrants | $ 11,361 | |||
Public Offering | ||||
Proceeds form offering | $ 149,500 | $ 117,000 | $ 15,000 | |
Offering expenses | $ 9,100 | $ 7,200 | $ 1,100 | |
Common warrants | ||||
Number of warrants exercised | 10,084,325 | |||
Proceeds from exercise of warrants | $ 9,700 | |||
Preferred warrants | ||||
Number of warrants exercised | 1,750,000 | |||
Proceeds from exercise of warrants | $ 1,700 | |||
Common Shares | ||||
Shares issued on exercise of warrants | 10,084,325 | |||
Common Shares | Public Offering | ||||
Shares sold in public offering | 11,500,000 | 41,279,090 | ||
Issue price per share (in dollars per share) | $ 13 | $ 2.75 | ||
Common Shares | Underwriter option to purchase additional shares | ||||
Shares sold in public offering | 1,500,000 | 5,547,272 | ||
Common Shares | Registered direct offering to Pfizer Inc | ||||
Shares sold in public offering | 2,297,794 | |||
Issue price per share (in dollars per share) | $ 10.88 | |||
Proceeds form offering | $ 25,000 | |||
Offering expenses | $ 100 | |||
Common Shares | Conversion of Series I Preferred into common shares | ||||
Shares issued on conversion | 572,384 | |||
Common Shares | Conversion of Series II Preferred into common shares | ||||
Shares issued on conversion | 5,118,403 | |||
Common Shares | Common warrants | ||||
Percent acquisition over which warrant holder will have right for redemption | 50.00% | |||
Series I preferred shares | Conversion of Series I Preferred into common shares | ||||
Shares converted | 17,171,541 | |||
Series II preferred shares | ||||
Shares issued on exercise of warrants | 1,750,000 | |||
Series II preferred shares | Public Offering | ||||
Shares sold in public offering | 1,250,000 | 12,200,000 | ||
Issue price per share (in dollars per share) | $ 2.75 | $ 0.80 | ||
Series II preferred shares | Conversion of Series II Preferred into common shares | ||||
Shares converted | 5,118,403 | |||
Common Stock Unit | Public Offering | ||||
Shares sold in public offering | 6,550,000 | |||
Issue price per share (in dollars per share) | $ 0.80 | |||
Number of common shares per unit | 1 | |||
Number of common share warrants per unit | 1 | |||
Common Stock Unit | Common warrants | ||||
Number of shares per warrant | 1 | |||
Warrant Exercise price (in dollars per share) | $ 0.96 | |||
Warrant exercise period | 60 months | |||
Repurchase period of after consummation of Fundamental Transaction | 90 days | |||
Preferred Share Unit | Public Offering | ||||
Number of preferred shares per unit | 1 | |||
Number of preferred share warrants per unit | 1 | |||
Preferred Share Unit | Preferred warrants | ||||
Warrant Exercise price (in dollars per share) | $ 0.96 | |||
Warrant exercise period | 60 months | |||
Repurchase period of after consummation of Fundamental Transaction | 90 days |
Stockholder's equity - Warrants
Stockholder's equity - Warrants allocated value (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Warrant liability | $ 8.4 |
Warrants | |
Issuance costs | 0.6 |
Common shares | |
Issuance costs | 0.2 |
Residual gross proceeds allocated | 2.3 |
Preferred shares | |
Issuance costs | 0.3 |
Residual gross proceeds allocated | $ 4.3 |
Stockholder's equity - Warrant
Stockholder's equity - Warrant valuation assumption (Details) $ in Thousands | Jan. 01, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Y | Feb. 28, 2019Y |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Expense on fair value of warrant liability | $ 5,000 | |||
Reclassification Of Warrants To Equity | $ 13,400 | $ 13,370 | ||
Expected life | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants and Rights Outstanding, Measurement Input | Y | 4.2 | 5 | ||
Risk-free interest rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants and Rights Outstanding, Measurement Input | 1.5 | 1.8 | ||
Dividend yield | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants and Rights Outstanding, Measurement Input | 0 | 0 | ||
Expected volatility | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants and Rights Outstanding, Measurement Input | 96.8 | 86.9 |
Stockholder's equity - Reserved
Stockholder's equity - Reserved for future issuance (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Warrants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 1,515,675 | 11,600,000 |
Preferred shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 6,750,000 | 9,440,788 |
Common shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 23,817,564 | 27,935,289 |
2020 Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 8,005,953 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 5,326,710 | 5,366,645 |
Stock options | 2019 Inducement Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 1,200,000 | |
Stock options | 2018 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 327,856 | |
Deferred share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance | 2,219,226 |
Net loss per share - Anti-dilut
Net loss per share - Anti-dilutive securities excluded from computation of diluted net loss per share (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 21,211,611 | 33,557,433 |
Series I preferred shares | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 572,385 | |
Series II preferred shares | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 6,750,000 | 8,868,403 |
Common warrants | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 1,515,675 | 11,600,000 |
Preferred warrants | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 5,400,000 | 7,150,000 |
Stock options | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 5,326,710 | 5,366,645 |
Deferred share units | ||
Anti-dilutive securities excluded from computation of diluted net loss per share | ||
Anti-dilutive securities | 2,219,226 |
Stock-based compensation - 2020
Stock-based compensation - 2020 Omnibus Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued during period | 2,644,950 | 3,575,600 | |
Weighted average exercise price of options issued during period (in dollars per share) | $ 12.60 | $ 0.40 | |
2020 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of common shares issuable | 13,400,000 | 13,400,000 | |
Shares entitled to issue | 8,005,953 | 8,005,953 | |
Options issued during period | 2,637,950 | ||
Weighted average exercise price of options issued during period (in dollars per share) | $ 12.63 | ||
Fair value of options issued | $ 27.5 | ||
Weighted average grant date fair value per share of options issued (in dollars per share) | $ 10.43 |
Stock-based compensation - 2019
Stock-based compensation - 2019 Inducment Stock Option Plan (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued during period | 2,644,950 | 3,575,600 | |
Options outstanding | 5,326,708 | 5,366,645 | 2,699,205 |
2019 Inducement Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued during period | 0 | ||
Options outstanding | 1,275,000 |
Stock-based compensation - 2018
Stock-based compensation - 2018 Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 5,326,708 | 5,366,645 | 2,699,205 | |
Options issued during period | 2,644,950 | 3,575,600 | ||
Weighted average exercise price of options issued during period (in dollars per share) | $ 12.60 | $ 0.40 | ||
Exercise of options | 2,267,084 | |||
Weighted average exercise price of options exercised during period (in dollars per share) | $ 2.64 | |||
2018 Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number awards that will be granted | 0 | |||
Options outstanding | 1,429,760 | |||
Options issued during period | 7,000 | |||
Weighted average exercise price of options issued during period (in dollars per share) | $ 4.87 | |||
Fair value of options issued | $ 28 | |||
Weighted average grant date fair value per share of options issued (in dollars per share) | $ 3.95 | |||
Exercise of options | 2,267,084 | |||
Weighted average exercise price of options exercised during period (in dollars per share) | $ 2.64 | |||
Stock options cancelled or expired | 31,499 | |||
Stock options cancelled or expired (in dollars per share) | $ 14.50 |
Stock-based compensation - Shar
Stock-based compensation - Share based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation | $ 14,064 | $ 2,516 |
Unrecognized compensation expense related to unvested stock options | $ 56,100 | |
Unrecognized compensation expense, period for recognition | 2 years 10 months 24 days | |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation | $ 5,812 | 2,165 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation | 8,252 | 351 |
Employees | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation | 13,600 | 2,500 |
Non-employees | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation | 500 | 0 |
Stock options accounted for as liability awards | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation | $ 12,500 | $ 0 |
Stock-based compensation - Chan
Stock-based compensation - Changes in options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of options | |||
Outstanding at beginning of period | 5,366,645 | 2,699,205 | |
Granted | 2,644,950 | 3,575,600 | |
Exercised | (2,267,084) | ||
Forfeited | (386,304) | (200,215) | |
Cancelled/expired | (31,499) | (707,945) | |
Outstanding at end of period | 5,326,708 | 5,366,645 | 2,699,205 |
Exercisable at end of period | 1,308,749 | ||
Weighted average exercise price | |||
Outstanding at beginning of period (in dollars per share) | $ 2.44 | $ 7.75 | |
Granted (in dollars per share) | 12.60 | 0.40 | |
Exercised (in dollars per share) | 2.64 | ||
Forfeited (in dollars per share) | 2.81 | 8.50 | |
Cancelled/expired (in dollars per share) | 14.50 | 10.66 | |
Outstanding at end of period (in dollars per share) | 7.30 | $ 2.44 | $ 7.75 |
Exercisable at end of period (in dollars per share) | $ 4.67 | ||
Weighted average remaining contractual life | |||
Outstanding at end of period | 9 years 1 month 6 days | 9 years | 7 years |
Exercisable at end of period | 7 years 9 months 18 days | ||
Aggregate intrinsic value | |||
Outstanding at end of period | $ 39,670 | $ 2,246 | |
Exercisable at end of period | $ 13,294 |
Stock-based compensation - Opti
Stock-based compensation - Options by exercise price range (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | shares | 5,326,708 |
Outstanding, weighted average remaining contractual life | 9 years 1 month 6 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 7.30 |
Number exercisable | shares | 1,308,749 |
Exercisable, weighted average exercise price (in dollars per share) | $ 4.67 |
$0.29 - $0.57 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 0.29 |
Exercise price, high end of range (in dollars per share) | $ 0.57 |
Number outstanding | shares | 2,095,184 |
Outstanding, weighted average remaining contractual life | 8 years 9 months 18 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 0.37 |
Number exercisable | shares | 709,688 |
Exercisable, weighted average exercise price (in dollars per share) | $ 0.38 |
$2.98 - $3.88 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 2.98 |
Exercise price, high end of range (in dollars per share) | $ 3.88 |
Number outstanding | shares | 210,776 |
Outstanding, weighted average remaining contractual life | 7 years 10 months 24 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.22 |
Number exercisable | shares | 109,248 |
Exercisable, weighted average exercise price (in dollars per share) | $ 3.22 |
$5.04 - $7.75 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 5.04 |
Exercise price, high end of range (in dollars per share) | $ 7.75 |
Number outstanding | shares | 121,892 |
Outstanding, weighted average remaining contractual life | 7 years 2 months 12 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 6.26 |
Number exercisable | shares | 106,750 |
Exercisable, weighted average exercise price (in dollars per share) | $ 6.27 |
$8.87 - $9.62 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 8.87 |
Exercise price, high end of range (in dollars per share) | $ 9.62 |
Number outstanding | shares | 86,112 |
Outstanding, weighted average remaining contractual life | 5 years 3 months 18 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 9.51 |
Number exercisable | shares | 75,353 |
Exercisable, weighted average exercise price (in dollars per share) | $ 9.49 |
$10.75 - $12.98 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 10.75 |
Exercise price, high end of range (in dollars per share) | $ 12.98 |
Number outstanding | shares | 1,962,694 |
Outstanding, weighted average remaining contractual life | 9 years 9 months 18 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 11.98 |
Number exercisable | shares | 173,660 |
Exercisable, weighted average exercise price (in dollars per share) | $ 11.53 |
$13.66 - $17.18 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 13.66 |
Exercise price, high end of range (in dollars per share) | $ 17.18 |
Number outstanding | shares | 833,050 |
Outstanding, weighted average remaining contractual life | 9 years 1 month 6 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 14.37 |
Number exercisable | shares | 118,050 |
Exercisable, weighted average exercise price (in dollars per share) | $ 14.79 |
$20.13 - $22.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price, low end of range (in dollars per share) | 20.13 |
Exercise price, high end of range (in dollars per share) | $ 22.44 |
Number outstanding | shares | 17,000 |
Outstanding, weighted average remaining contractual life | 4 years 8 months 12 days |
Outstanding, weighted average exercise price (in dollars per share) | $ 22.30 |
Number exercisable | shares | 16,000 |
Exercisable, weighted average exercise price (in dollars per share) | $ 22.44 |
Stock-based compensation - Blac
Stock-based compensation - Black - Scholes option pricing model (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected option life | 6 years | 6 years |
Risk-free interest rate | 0.50% | 1.40% |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 110.00% | 89.00% |
Stock-based compensation - Cash
Stock-based compensation - Cash-Settled DSU Plan (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-based compensation | ||||
Amount transferred from a liability to equity | $ 24,948 | |||
Share-based compensation | $ 14,064 | $ 2,516 | ||
2018 Stock Option Plan | ||||
Stock-based compensation | ||||
Number awards that will be granted | 0 | |||
Deferred share units | ||||
Stock-based compensation | ||||
Number awards that will be granted | 0 | 0 | ||
Amount transferred from a liability to equity | $ 24,900 | |||
DSUs issued | 41,294 | 2,739,587 | ||
Share-based compensation | $ 300 | $ 900 | ||
DSUs outstanding | 2,219,226 | 3,045,821 | ||
DSUs redeemed | 867,888 | 28,748 | ||
Deferred share units | 2020 | ||||
Stock-based compensation | ||||
Revaluation of the DSU liability | $ 22,100 | |||
Deferred share units | 2019 | ||||
Stock-based compensation | ||||
Revaluation of the DSU liability | $ 1,100 |
License agreements (Details)
License agreements (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
License agreements | |||
Licensing revenues | $ 148 | $ 124 | |
Licensing revenues | us-gaap:LicenseMember | ||
Right-to-use license agreement entered in 2020 | |||
License agreements | |||
Initial license fees | $ 100 |
Income taxes - Unrecognized def
Income taxes - Unrecognized deferred tax assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Unrecognized deferred tax assets: | ||
Non-capital losses carried forward | $ 40,986 | $ 33,175 |
Tax credits carried forward | 6,453 | 5,905 |
Tax basis of property and equipment and intangible assets in excess of accounting basis | 2,827 | 2,732 |
Scientific research and experimental development expenditures | 10,062 | 9,255 |
Share issue costs and other | 4,098 | 675 |
Total gross unrecognized deferred tax assets | 64,426 | 51,742 |
Less: Valuation allowance | (64,426) | (51,742) |
Unrecognized tax benefits | $ 0 | $ 0 |
Income taxes - Research and dev
Income taxes - Research and development tax credits and operating loss carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income taxes | ||
Research and development expenditures for income tax purposes | $ 38 | $ 34.9 |
Unclaimed Canadian specific research and development tax credits | 8.2 | $ 7.5 |
Net operating loss carryforwards | $ 154.7 |
Income taxes - Income tax rate
Income taxes - Income tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Income tax recovery based on statutory income tax rate | $ (17,554) | $ (11,239) |
Investment tax credits | (373) | (677) |
Stock-based compensation and other | 6,743 | 1,736 |
Change in unrecognized tax assets | 11,286 | 10,208 |
Income tax expense | $ 102 | $ 28 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Millions | Dec. 31, 2020USD ($)itemagreement |
License agreement for SIRPFc | |
Other Commitments [Line Items] | |
Amount payable on the first patient dosed in phase 2 trial | $ 0.2 |
Amount payable on the first patient dosed in phase 3 trial | 0.2 |
Regulatory milestones on first achievement | $ 3.8 |
Agreements with Catalent Pharma Solutions | |
Other Commitments [Line Items] | |
Number of agreements | agreement | 2 |
Number of SIRPFc constructs | item | 2 |
Pre-marketing approval milestone payable | $ 0.9 |
Aggregate sales milestone payments of up to | $ 28.8 |