Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Entity [Abstract] | ||
Entity Registrant Name | Axcella Health Inc. | |
Entity Central Index Key | 0001633070 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Common Stock, Shares Outstanding | 23,082,179 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 117,910 | $ 79,466 |
Prepaid expenses and other current assets | 3,523 | 835 |
Total current assets | 121,433 | 80,301 |
Property and equipment, net | 758 | 1,076 |
Security deposits and other assets | 216 | 216 |
Deferred offering costs | 0 | 251 |
Total assets | 122,407 | 81,844 |
Current liabilities: | ||
Accounts payable | 2,086 | 1,612 |
Accrued expenses | 4,886 | 5,299 |
Total current liabilities | 6,972 | 6,911 |
Long term debt, net of discount | 24,718 | 24,521 |
Other liabilities | 773 | 1,898 |
Preferred stock warrant liability | 0 | 425 |
Total liabilities | 32,463 | 33,755 |
Commitments and contingencies (Note 8) | ||
Redeemable convertible preferred stock (Note 7) | 0 | 197,842 |
Stockholders' equity (deficit): | ||
Common stock, $0.001 par value; 150,000,000 and 47,000,000 shares authorized, 23,498,786 and 5,193,915 shares issued and 23,079,805 and 4,774,934 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 24 | 6 |
Additional paid-in capital | 272,989 | 7,290 |
Treasury stock, 418,981 shares at cost | 0 | 0 |
Accumulated deficit | (183,069) | (157,049) |
Total stockholders' equity (deficit) | 89,944 | (149,753) |
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ 122,407 | $ 81,844 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 150,000,000 | 47,000,000 |
Common stock issued (in shares) | 23,498,786 | 5,193,915 |
Common stock outstanding (in shares) | 23,079,805 | 4,774,934 |
Treasury stock at cost (in shares) | 418,981 | 418,981 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating expenses: | ||||
Research and development | $ 9,343 | $ 6,007 | $ 16,906 | $ 11,462 |
General and administrative | 4,728 | 2,901 | 8,196 | 5,037 |
Total operating expenses | 14,071 | 8,908 | 25,102 | 16,499 |
Loss from operations | (14,071) | (8,908) | (25,102) | (16,499) |
Other income (expense): | ||||
Change in fair value of preferred stock warrant liability | 0 | 4 | (51) | 41 |
Interest income (expense), net | (376) | (519) | (867) | (1,065) |
Total other income (expense), net | (376) | (515) | (918) | (1,024) |
Net loss | $ (14,447) | $ (9,423) | $ (26,020) | $ (17,523) |
Net loss per share, basic and diluted (USD per share) | $ (0.95) | $ (2.15) | $ (2.60) | $ (4.08) |
Weighted average common shares outstanding, basic and diluted (in shares) | 15,230,815 | 4,405,597 | 10,032,202 | 4,317,845 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (26,020) | $ (17,523) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 364 | 627 |
Stock-based compensation expense | 2,644 | 1,078 |
Change in fair value of preferred stock warrant liability | 51 | (41) |
Non-cash interest expense | 292 | 207 |
Gain on sale of property and equipment | 0 | (36) |
Changes in current assets and liabilities: | ||
Prepaid expenses and other current assets | (2,674) | 69 |
Accounts payable | 111 | 243 |
Accrued expenses | (215) | (290) |
Net cash used in operating activities | (25,447) | (15,666) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (47) | (486) |
Proceeds from the sale of property and equipment | 0 | 73 |
Net cash used in investing activities | (47) | (413) |
Cash flows from financing activities: | ||
Proceeds from initial public offering, net of issuance costs | 64,935 | 0 |
Proceeds from issuance of long term debt | 0 | 1,000 |
Payment of debt issuance costs | 0 | (844) |
Payment of success fee obligation | (1,220) | 0 |
Proceeds from exercise of common stock options | 223 | 0 |
Net cash provided by financing activities | 63,938 | 156 |
Net increase (decrease) in cash and cash equivalents | 38,444 | (15,923) |
Cash and cash equivalents, beginning of period | 79,466 | 46,817 |
Cash and cash equivalents, end of period | 117,910 | 30,894 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,436 | 1,088 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Reclassification of warrants to additional paid-in capital | 476 | 0 |
Conversion of preferred stock to common stock upon closing of the initial public offering | 197,888 | 0 |
Initial public offering costs incurred but unpaid at period end | $ 402 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Accumulated deficit |
Redeemable convertible preferred stock, beginning (in shares) at Dec. 31, 2017 | 21,549,244 | ||||
Redeemable convertible preferred stock, beginning at Dec. 31, 2017 | $ 138,828 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of preferred stock to redemption value | $ 38 | ||||
Redeemable convertible preferred stock, ending (in shares) at Mar. 31, 2018 | 21,549,244 | ||||
Redeemable convertible preferred stock, ending at Mar. 31, 2018 | $ 138,866 | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 4,648,078 | 418,981 | |||
Beginning balance at Dec. 31, 2017 | (116,354) | $ 5 | $ 4,621 | $ 0 | $ (120,980) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of preferred stock to redemption value | (38) | (38) | |||
Stock-based compensation | 368 | 368 | |||
Net loss | (8,100) | (8,100) | |||
Ending balance (in shares) at Mar. 31, 2018 | 4,648,078 | 418,981 | |||
Ending balance at Mar. 31, 2018 | $ (124,124) | $ 5 | 4,951 | $ 0 | (129,080) |
Redeemable convertible preferred stock, beginning (in shares) at Dec. 31, 2017 | 21,549,244 | ||||
Redeemable convertible preferred stock, beginning at Dec. 31, 2017 | $ 138,828 | ||||
Redeemable convertible preferred stock, ending (in shares) at Jun. 30, 2018 | 21,549,244 | ||||
Redeemable convertible preferred stock, ending at Jun. 30, 2018 | $ 138,907 | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 4,648,078 | 418,981 | |||
Beginning balance at Dec. 31, 2017 | (116,354) | $ 5 | 4,621 | $ 0 | (120,980) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Reclassification of warrants to additional paid-in capital | 0 | ||||
Net loss | (17,523) | ||||
Ending balance (in shares) at Jun. 30, 2018 | 5,183,398 | 418,981 | |||
Ending balance at Jun. 30, 2018 | $ (132,877) | $ 6 | 5,620 | $ 0 | (138,503) |
Redeemable convertible preferred stock, beginning (in shares) at Mar. 31, 2018 | 21,549,244 | ||||
Redeemable convertible preferred stock, beginning at Mar. 31, 2018 | $ 138,866 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of preferred stock to redemption value | $ 41 | ||||
Redeemable convertible preferred stock, ending (in shares) at Jun. 30, 2018 | 21,549,244 | ||||
Redeemable convertible preferred stock, ending at Jun. 30, 2018 | $ 138,907 | ||||
Beginning balance (in shares) at Mar. 31, 2018 | 4,648,078 | 418,981 | |||
Beginning balance at Mar. 31, 2018 | (124,124) | $ 5 | 4,951 | $ 0 | (129,080) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of preferred stock to redemption value | (41) | (41) | |||
Exercise of common stock options (in shares) | 535,320 | ||||
Exercise of common stock options | 1 | $ 1 | |||
Stock-based compensation | 710 | 710 | |||
Net loss | (9,423) | (9,423) | |||
Ending balance (in shares) at Jun. 30, 2018 | 5,183,398 | 418,981 | |||
Ending balance at Jun. 30, 2018 | $ (132,877) | $ 6 | 5,620 | $ 0 | (138,503) |
Redeemable convertible preferred stock, beginning (in shares) at Dec. 31, 2018 | 26,831,246 | ||||
Redeemable convertible preferred stock, beginning at Dec. 31, 2018 | $ 197,842 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Accretion of preferred stock to redemption value | $ 46 | ||||
Redeemable convertible preferred stock, ending (in shares) at Mar. 31, 2019 | 26,831,246 | ||||
Redeemable convertible preferred stock, ending at Mar. 31, 2019 | $ 197,888 | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 5,193,915 | 418,981 | |||
Beginning balance at Dec. 31, 2018 | (149,753) | $ 6 | 7,290 | $ 0 | (157,049) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of preferred stock to redemption value | (46) | (46) | |||
Exercise of common stock options (in shares) | 1,335 | ||||
Exercise of common stock options | 12 | 12 | |||
Stock-based compensation | 1,137 | 1,137 | |||
Net loss | (11,573) | (11,573) | |||
Ending balance (in shares) at Mar. 31, 2019 | 5,195,250 | 418,981 | |||
Ending balance at Mar. 31, 2019 | $ (160,223) | $ 6 | 8,393 | $ 0 | (168,622) |
Redeemable convertible preferred stock, beginning (in shares) at Dec. 31, 2018 | 26,831,246 | ||||
Redeemable convertible preferred stock, beginning at Dec. 31, 2018 | $ 197,842 | ||||
Redeemable convertible preferred stock, ending (in shares) at Jun. 30, 2019 | 0 | ||||
Redeemable convertible preferred stock, ending at Jun. 30, 2019 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 5,193,915 | 418,981 | |||
Beginning balance at Dec. 31, 2018 | $ (149,753) | $ 6 | 7,290 | $ 0 | (157,049) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options (in shares) | 46,038 | ||||
Reclassification of warrants to additional paid-in capital | $ 476 | ||||
Net loss | (26,020) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 23,498,786 | 418,981 | |||
Ending balance at Jun. 30, 2019 | $ 89,944 | $ 24 | 272,989 | $ 0 | (183,069) |
Redeemable convertible preferred stock, beginning (in shares) at Mar. 31, 2019 | 26,831,246 | ||||
Redeemable convertible preferred stock, beginning at Mar. 31, 2019 | $ 197,888 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of preferred stock to common stock upon closing of the IPO (in shares) | (26,831,246) | ||||
Conversion of preferred stock to common stock upon closing of the initial public offering | $ (197,888) | ||||
Redeemable convertible preferred stock, ending (in shares) at Jun. 30, 2019 | 0 | ||||
Redeemable convertible preferred stock, ending at Jun. 30, 2019 | $ 0 | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 5,195,250 | 418,981 | |||
Beginning balance at Mar. 31, 2019 | (160,223) | $ 6 | 8,393 | $ 0 | (168,622) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options (in shares) | 44,697 | ||||
Exercise of common stock options | 211 | 211 | |||
Conversion of preferred stock to common stock upon closing of the initial public offering (in shares) | 14,641,997 | ||||
Conversion of preferred stock to common stock upon closing of the initial public offering | 197,888 | $ 15 | 197,873 | ||
Issuance of common stock, net (in shares) | 3,571,428 | ||||
Issuance of common stock, net of issuance costs of $6,896 | 64,532 | $ 3 | 64,529 | ||
Reclassification of warrants to additional paid-in capital | 476 | 476 | |||
Exercise of common stock warrant (in shares) | 45,414 | ||||
Stock-based compensation | 1,507 | 1,507 | |||
Net loss | (14,447) | (14,447) | |||
Ending balance (in shares) at Jun. 30, 2019 | 23,498,786 | 418,981 | |||
Ending balance at Jun. 30, 2019 | $ 89,944 | $ 24 | $ 272,989 | $ 0 | $ (183,069) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance costs | $ 6,896 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Axcella Health Inc. and subsidiaries ("Axcella," the "Company" or "we") is a biotechnology company that was incorporated in Delaware on August 27, 2008 and has a principal place of business in Cambridge, Massachusetts. The Company is pioneering the research and development of novel multifactorial interventions to support health and address dysregulated metabolism across a broad spectrum of consumers and patients who have limited options. The Company is subject to risks common to early-stage companies in the biotechnology industry, including, but not limited to, successful development of technology, obtaining additional funding, protection of proprietary technology, compliance with government regulations, risks of failure of preclinical studies, clinical studies and Clinical Trials, the need to obtain marketing approval for its product candidates, if required, and successfully market consumer products, fluctuations in operating results, economic pressure impacting therapeutic pricing, dependence on key personnel, risks associated with changes in technologies, development by competitors of technological innovations and the ability to scale manufacturing to large scale production. Product candidates currently under development will require significant additional research and development efforts, including preclinical and clinical testing and any necessary regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. On April 29, 2019, the Company filed an amended and restated certificate of incorporation to effect a one -for- 1.842 reverse stock split of the Company’s common stock. All share and per share data shown in the accompanying condensed consolidated financial statements and related notes have been retroactively revised to reflect the reverse stock split. On May 13, 2019, the Company completed an initial public offering (the “IPO”) of 3,571,428 shares of its common stock for aggregate gross proceeds of $71.4 million and its shares started trading on The Nasdaq Global Market under the ticker symbol “AXLA.” The Company received $64.5 million in net proceeds after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. Upon closing of the IPO, all of the Company's outstanding shares of redeemable convertible preferred stock automatically converted into 14,641,997 shares of common stock. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. The Company has historically funded its operations with proceeds from sales of preferred stock and borrowings under a loan and security agreement. As of June 30, 2019 , the Company had an accumulated deficit of $183.1 million . The Company expects to continue to generate operating losses in the foreseeable future. The Company expects that its cash and cash equivalents at June 30, 2019 will be sufficient to fund its operations for at least the next twelve months from the date of the issuance of the interim condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The Company's condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Prospectus that forms a part of the Company’s Registration Statement on Form S-1 (File No. 333-230822), which was filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended ("Securities Act"), on May 9, 2019 (the “Prospectus”). The results for any interim period are not necessarily indicative of results for any future period. Use of Estimates The preparation of the condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Actual results may differ from those estimates or assumptions. Deferred Offering Costs The Company capitalized certain legal, professional accounting and other third-party fees that were directly associated with the IPO as deferred offering costs. As of December 31, 2018 , the Company capitalized $0.3 million of deferred offering costs related to the IPO. After consummation of the IPO, which closed on May 13, 2019, these costs were recorded in stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses. Accounting Pronouncements Issued and Not Adopted In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, No. 2016-02, Leases , which alters the accounting model and financial statement presentation and disclosure of leases. The new standard requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for the Company beginning January 1, 2020. The Company is assessing the impact the adoption of ASU 2016-02 will have on its condensed consolidated financial statements and will recognize a lease obligation and right of use asset for its existing operating leases upon adoption. See additional information regarding the Company's lease obligations in Note 8. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): June 30, December 31, Laboratory equipment $ 3,511 $ 3,489 Leasehold improvements 564 564 Office and computer equipment 294 294 Furniture and fixtures 122 122 Property and equipment 4,491 4,469 Less: accumulated depreciation and amortization (3,733 ) (3,393 ) Property and equipment, net $ 758 $ 1,076 Depreciation and amortization expense for the six months ended June 30, 2019 and 2018 was $0.4 million and $0.6 million , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table sets forth by level, within the fair value hierarchy, the assets and liabilities carried at fair value on a recurring basis (in thousands): Fair value measurements at June 30, 2019 using: Level 1 Level 2 Level 3 Total Assets: Cash Equivalents $ 117,660 $ — $ — $ 117,660 Total $ 117,660 $ — $ — $ 117,660 Fair value measurements at December 31, 2018 using: Level 1 Level 2 Level 3 Total Assets: Cash Equivalents $ 79,216 $ — $ — $ 79,216 Total $ 79,216 $ — $ — $ 79,216 Liabilities: Success Fee Liability $ — $ — $ 1,220 $ 1,220 Preferred Stock Warrant Liability — — 425 425 Total $ — $ — $ 1,645 $ 1,645 Cash equivalents are comprised of funds held in an exchange traded money market fund and the fair value of the cash equivalents is determined based upon quoted market price for that fund. The fair value of the preferred stock warrant was determined using the Black-Scholes option-pricing model with the assumptions as disclosed in Note 7. The fair value of the success fee liability was determined using a probability weighted present value of cash flows. The Company has projected that 100% of the liability will be paid and that the time value of discounting those cash flows did not have a material impact on the fair value measurement due to the expected term. As a result of the IPO, the preferred stock warrants were converted to warrants to purchase common stock and the fair value of the warrant liability was reclassified to stockholders’ equity and subsequently settled. The success fee liability was also settled. A roll forward of the fair value of the success fee liability and preferred stock warrant liability categorized with Level 3 inputs for the period ended June 30, 2019 is as follows (in thousands): Success fee Preferred stock warrant liability Balance — January 1, 2019 $ 1,220 $ 425 Increase in warrant fair value included in other expense — 51 Reclassification to additional paid-in capital in connection with IPO — (476 ) Settlement of success fee (1,220 ) — Balance — June 30, 2019 $ — $ — There were no transfers among Level 1, Level 2, or Level 3 categories in the periods presented. The carrying value of accounts payable and accrued expenses that are reported on the consolidated balance sheets approximate their fair value due to the short-term nature of these assets and liabilities. The carrying value of the long term debt approximates fair value as evidenced by the recent amendment. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other liabilities consisted of the following (in thousands): June 30, December 31, Accrued employee compensation and benefits $ 1,329 $ 1,957 Accrued external research and development expenses 1,829 1,679 Accrued professional fees 990 678 Other 738 985 Total accrued expenses and other current liabilities $ 4,886 $ 5,299 |
DEBT FINANCING
DEBT FINANCING | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT FINANCING | DEBT FINANCING Long term debt consisted of the following (in thousands): June 30, December 31, Principal amount of long term debt $ 26,000 $ 26,000 Debt discount (530 ) (612 ) Deferred financing fees (752 ) (867 ) Long term debt, net of discount $ 24,718 $ 24,521 In January 2018, the Company entered into a new secured debt facility (the "2018 Facility") with the existing lender that replaced the February 2017 amended facility. The 2018 Facility increased the funding up to $21.0 million . The Company paid a transaction fee of $0.9 million to the lender in connection with the 2018 Facility, and that fee was recognized as debt discount. The 2018 Facility required interest only payments through January 2019 with the ability to extend the interest only payment period through January 2020 if certain conditions were met. Monthly principal payments of $0.6 million were to commence in February 2019 for 36 months . The 2018 Facility has an interest rate equal to the LIBOR plus 8.50% per annum ( 10.94% as of June 30, 2019 ) payable monthly and a $1.1 million success fee which was payable upon the occurrence of certain events, including the IPO. The success fee was comprised of $0.7 million associated with the February 2017 amended facility and an additional $0.4 million arising from the January 2018 amendment. The fair value of the additional success fee was recorded as an obligation to the lenders and created an additional debt discount. The Company granted the lender a first priority security interest in all assets of the Company, excluding intellectual property and granted a negative pledge on such intellectual property. In October 2018, the Company amended the 2018 Facility (the "Amended 2018 Facility") to extend the interest only period through July 2020 or January 2021 and the Maturity Date to July 2022 or January 2023 if certain conditions are met. The Amended 2018 Facility provides additional funding in the amounts of $5.0 million ("Term B Loan") and $4.0 million ("Term C Loan") if certain conditions are met. The Term B Loan of $5.0 million was drawn in December 2018. The success fee, increased to $1.2 million , which increased the debt discount by $0.1 million . Financing costs of $0.1 million were incurred related to the amendment. The interest rate was not changed through the amendment. Upon completion of the IPO in May 2019, the interest only period was extended through January 2021 and the Maturity Date was extended to January 2023. Monthly principal payments of $1.1 million are to commence February 2021 for 24 months . The $1.2 million success fee was also paid. For the six months ended June 30, 2019 and 2018 , interest expense arising from the amortization of the debt discount and deferred financing fees was $0.3 million and $0.2 million , respectively. Terminal Interest Fee The Company's August 2015 debt facility, as amended, and the 2018 Facility, included a terminal interest fee obligation, which is due with the final principal payment of the loan and has been modified from time to time as the facilities were amended. The Company is accruing the terminal fee obligation over the term of the facility. At December 31, 2017 , the terminal fee obligation was $1.1 million . The October 2018 amendment increased the terminal interest fee to $1.4 million . There was no change in the terminal interest fee during the six months ended June 30, 2019 . The carrying value of the terminal interest fee was $0.8 million and $0.7 million at June 30, 2019 and December 31, 2018 , respectively. The scheduled principal maturity of the long term debt, reflecting the 2018 Amended Facility and the Term B Loan draw offers, as of June 30, 2019 is as follows (in thousands): Year Ending December 31, 2020 $ — 2021 11,917 2022 13,000 2023 1,083 $ 26,000 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends, unless declared by the board of directors. Upon closing of the IPO in May 2019, all of the Preferred Stock converted into an aggregate of 14,641,997 shares of common stock. In May 2019, the Company restated its certificate of incorporation, which, among other things, restated the number of shares of all classes of stock that the Company has authority to issue to 160,000,000 shares, consisting of (i) 150,000,000 shares of common stock, $0.001 par value per share, and (ii) 10,000,000 shares of preferred stock, $0.001 par value per share. The shares of preferred stock are currently undesignated. Preferred Stock Warrants — In connection with the issuance of debt in 2012, the Company issued warrants to purchase 112,795 shares of Series A Preferred Stock with an exercise price of $1.95 per share and an expiration date of April 13, 2020. The fair value of the warrants was estimated using a Black-Scholes option-pricing model (see Note 4), and the resulting change in fair value was recorded in other income (expense) in the Company’s consolidated statement of operations. Upon closing of the IPO on May 13, 2019, the outstanding warrants to purchase Series A Preferred Stock became outstanding warrants to purchase an aggregate of 61,235 shares of common stock at a weighted average exercise price of $3.59 per share. In June 2019, the holders of such warrants completed a cashless exercise of the warrants, resulting in the Company's issuance of 45,414 shares of common stock. Stock-Based Compensation — The fair value of stock option grants is estimated using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires several key assumptions. The key assumptions used to apply this pricing model were as follows: Three Months Ended June 30, Six Months Ended 2019 2018 2019 2018 Risk-free interest rate 1.84% - 2.34% 1.93% - 2.90% 1.84% - 2.50% 1.93% - 2.90% Expected term (in years) 6.25 0.25 - 6.25 6.25 0.25 - 6.25 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility of underlying common stock 73.4 % 65.0 % 73.4 % 65 % The risk-free interest rate was based on rates associated with U.S. Treasury issues approximating the expected life of the stock options. The expected term of options granted to employees was determined using the simplified method, which represents the midpoint of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate the expected term. The expected dividend-yield assumption was based on the Company's expectation of no future dividend payments. The expected volatility of the underlying stock was based on the average historical volatility of comparable publicly traded companies based on weekly price returns as reported by a pricing service, as the Company has historically been a private company and lacks company-specific historical and implied volatility information. The weighted-average grant date fair value of the options granted during the six months ended June 30, 2019 and 2018 , were $7.03 and $2.09 per share, respectively. As of June 30, 2019 , there was $16.6 million of unrecognized compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 3.0 years. Stock-based compensation related to stock options and unvested stock awards are classified as follows (in thousands): Three Months Ended June 30, Six Months Ended 2019 2018 2019 2018 Research and development $ 586 $ 230 $ 1,068 $ 444 General and administrative 918 477 1,576 634 $ 1,504 $ 707 $ 2,644 $ 1,078 The following table summarizes the option activity under the 2010 Stock Incentive Plan: Options Weighted Average Exercise Price Weighted Average Remaining Life (in Years) Intrinsic Value (in thousands) Outstanding January 1, 2019 4,039,487 $ 5.67 8.6 $ 5,331 Granted 941,353 15.64 Exercised (46,038 ) 4.76 Canceled (110,500 ) 6.69 Outstanding June 30, 2019 4,824,302 $ 7.62 7.8 Options vested or expected to vest as of June 30, 2019 4,765,453 $ 7.62 7.8 $ 8,054 Options exercisable as of June 30, 2019 1,738,943 $ 4.90 6.4 $ 7,669 The intrinsic value of options exercised during the three months ended June 30, 2019 was nominal. 2010 Stock Option and Incentive Plan — The Company’s 2010 Stock Incentive Plan (the “2010 Plan”) provided for the Company to issue incentive stock options or nonqualified stock options, restricted stock, and other equity awards to employees, directors and consultants of the Company. Upon effectiveness of the 2019 Plan, no future issuances will be made under the 2010 Plan. 2019 Stock Option and Incentive Plan — The 2019 Stock Option and Incentive Plan (the "2019 Plan") was approved by our board of directors on April 29, 2019 and became effective upon the IPO. The 2019 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company's officers, employees, directors and consultants. The number of shares initially reserved for issuance under the 2019 Plan is 905,000 , which shall be cumulatively increased on January 1, 2020 and each January 1 thereafter by 4% of the number of shares of the Company's common stock outstanding on the immediately preceding December 31, or such lesser number of shares determined by the Company's board of directors or compensation committee of the board of directors. 2019 Employee Stock Purchase Plan — The 2019 Employee Stock Purchase Plan (the "2019 ESPP") was approved by our board of directors on April 29, 2019 and became effective upon the IPO. A total of 237,181 shares of common stock were initially reserved for issuance under this plan, which shall be cumulatively increased on January 1, 2020 and each January 1 thereafter by 1% of the number of shares of the Company's common stock outstanding on the immediately preceding December 31, or such lesser number of shares determined by the Company's board of directors or compensation committee of the board of directors. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company entered into a facility lease agreement for laboratory and office space with an expiration date of April 1, 2021. The lease agreement and most recent amendment contained escalating rent payments. Rent expense is recorded on a straight-line basis. The Company had deferred rent of $0.1 million as of both June 30, 2019 and December 31, 2018 . The Company is obligated to make minimum lease payments under the facility lease as follows (in thousands): Years Ending December 31, 2019 $ 599 2020 1,226 2021 415 Total $ 2,240 Rent expense for the six months ended June 30, 2019 and 2018 was $0.3 million and $0.3 million , respectively. We enter into contracts in the normal course of business with contract research organizations ("CROs"), contract manufacturing organizations ("CMOs") and other third parties for preclinical research studies, Non-IND, IRB-Approved Clinical Studies, Clinical Trials and testing and manufacturing services. These contracts do not contain minimum purchase commitments and are cancelable by upon prior written notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including noncancelable obligations of service providers, up to the date of cancellation. |
RETIREMENT PLAN
RETIREMENT PLAN | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | RETIREMENT PLAN The Company has a 401(k) retirement and savings plan (the "Plan") covering all qualified employees. The Plan allows each participant to contribute a portion of his or her base wages up to an amount not to exceed an annual statutory maximum. The Company is permitted to make discretionary matching contributions to the Plan. The Company has not made any discretionary contributions. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE Net Loss Per Share Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Net loss $ (14,447 ) $ (9,423 ) $ (26,020 ) $ (17,523 ) Accretion of redeemable convertible preferred stock — (41 ) (46 ) (79 ) Net loss attributable to common stockholders $ (14,447 ) $ (9,464 ) $ (26,066 ) $ (17,602 ) Denominator: Weighted average common shares outstanding, basic and diluted 15,230,815 4,405,597 10,032,202 4,317,845 Net loss per share, basic and diluted $ (0.95 ) $ (2.15 ) $ (2.60 ) $ (4.08 ) The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Six Months Ended 2019 2018 Redeemable convertible preferred stock (as converted to common stock) — 11,735,178 Warrants to purchase redeemable convertible preferred stock (as converted to common stock) — 61,235 Options to purchase common stock 4,824,302 3,084,510 4,824,302 14,880,923 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has evaluated subsequent events for financial statement purposes occurring through August 12, 2019, the date that these condensed consolidated financial statements were issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The Company's condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). |
Principles of Consolidation | The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. The Company bases its estimates on historical experience, known trends and other market-specific or relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts and experience. Actual results may differ from those estimates or assumptions. |
Deferred Offering Costs | Deferred Offering Costs The Company capitalized certain legal, professional accounting and other third-party fees that were directly associated with the IPO as deferred offering costs. |
Patent Costs | Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses. |
Accounting Pronouncements Issued and Not Adopted | Accounting Pronouncements Issued and Not Adopted In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, No. 2016-02, Leases , which alters the accounting model and financial statement presentation and disclosure of leases. The new standard requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for the Company beginning January 1, 2020. The Company is assessing the impact the adoption of ASU 2016-02 will have on its condensed consolidated financial statements and will recognize a lease obligation and right of use asset for its existing operating leases upon adoption. See additional information regarding the Company's lease obligations in Note 8. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): June 30, December 31, Laboratory equipment $ 3,511 $ 3,489 Leasehold improvements 564 564 Office and computer equipment 294 294 Furniture and fixtures 122 122 Property and equipment 4,491 4,469 Less: accumulated depreciation and amortization (3,733 ) (3,393 ) Property and equipment, net $ 758 $ 1,076 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy of Assets and Liabilities | The following table sets forth by level, within the fair value hierarchy, the assets and liabilities carried at fair value on a recurring basis (in thousands): Fair value measurements at June 30, 2019 using: Level 1 Level 2 Level 3 Total Assets: Cash Equivalents $ 117,660 $ — $ — $ 117,660 Total $ 117,660 $ — $ — $ 117,660 Fair value measurements at December 31, 2018 using: Level 1 Level 2 Level 3 Total Assets: Cash Equivalents $ 79,216 $ — $ — $ 79,216 Total $ 79,216 $ — $ — $ 79,216 Liabilities: Success Fee Liability $ — $ — $ 1,220 $ 1,220 Preferred Stock Warrant Liability — — 425 425 Total $ — $ — $ 1,645 $ 1,645 |
Rollforward of the Fair Value of the Success Fee Liability and Preferred Stock Warrant Liability | A roll forward of the fair value of the success fee liability and preferred stock warrant liability categorized with Level 3 inputs for the period ended June 30, 2019 is as follows (in thousands): Success fee Preferred stock warrant liability Balance — January 1, 2019 $ 1,220 $ 425 Increase in warrant fair value included in other expense — 51 Reclassification to additional paid-in capital in connection with IPO — (476 ) Settlement of success fee (1,220 ) — Balance — June 30, 2019 $ — $ — |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Payables and Accruals (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): June 30, December 31, Accrued employee compensation and benefits $ 1,329 $ 1,957 Accrued external research and development expenses 1,829 1,679 Accrued professional fees 990 678 Other 738 985 Total accrued expenses and other current liabilities $ 4,886 $ 5,299 |
DEBT FINANCING (Tables)
DEBT FINANCING (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | Long term debt consisted of the following (in thousands): June 30, December 31, Principal amount of long term debt $ 26,000 $ 26,000 Debt discount (530 ) (612 ) Deferred financing fees (752 ) (867 ) Long term debt, net of discount $ 24,718 $ 24,521 |
Schedule of Maturities of Long-term Debt | The scheduled principal maturity of the long term debt, reflecting the 2018 Amended Facility and the Term B Loan draw offers, as of June 30, 2019 is as follows (in thousands): Year Ending December 31, 2020 $ — 2021 11,917 2022 13,000 2023 1,083 $ 26,000 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of Fair Value Assumptions for Stock Options | The key assumptions used to apply this pricing model were as follows: Three Months Ended June 30, Six Months Ended 2019 2018 2019 2018 Risk-free interest rate 1.84% - 2.34% 1.93% - 2.90% 1.84% - 2.50% 1.93% - 2.90% Expected term (in years) 6.25 0.25 - 6.25 6.25 0.25 - 6.25 Expected dividend yield 0 % 0 % 0 % 0 % Expected volatility of underlying common stock 73.4 % 65.0 % 73.4 % 65 % |
Summary of Stock Based Compensation Expense | Stock-based compensation related to stock options and unvested stock awards are classified as follows (in thousands): Three Months Ended June 30, Six Months Ended 2019 2018 2019 2018 Research and development $ 586 $ 230 $ 1,068 $ 444 General and administrative 918 477 1,576 634 $ 1,504 $ 707 $ 2,644 $ 1,078 |
Summary of Options Under the 2010 Plan | The following table summarizes the option activity under the 2010 Stock Incentive Plan: Options Weighted Average Exercise Price Weighted Average Remaining Life (in Years) Intrinsic Value (in thousands) Outstanding January 1, 2019 4,039,487 $ 5.67 8.6 $ 5,331 Granted 941,353 15.64 Exercised (46,038 ) 4.76 Canceled (110,500 ) 6.69 Outstanding June 30, 2019 4,824,302 $ 7.62 7.8 Options vested or expected to vest as of June 30, 2019 4,765,453 $ 7.62 7.8 $ 8,054 Options exercisable as of June 30, 2019 1,738,943 $ 4.90 6.4 $ 7,669 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | he Company is obligated to make minimum lease payments under the facility lease as follows (in thousands): Years Ending December 31, 2019 $ 599 2020 1,226 2021 415 Total $ 2,240 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Net loss $ (14,447 ) $ (9,423 ) $ (26,020 ) $ (17,523 ) Accretion of redeemable convertible preferred stock — (41 ) (46 ) (79 ) Net loss attributable to common stockholders $ (14,447 ) $ (9,464 ) $ (26,066 ) $ (17,602 ) Denominator: Weighted average common shares outstanding, basic and diluted 15,230,815 4,405,597 10,032,202 4,317,845 Net loss per share, basic and diluted $ (0.95 ) $ (2.15 ) $ (2.60 ) $ (4.08 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Six Months Ended 2019 2018 Redeemable convertible preferred stock (as converted to common stock) — 11,735,178 Warrants to purchase redeemable convertible preferred stock (as converted to common stock) — 61,235 Options to purchase common stock 4,824,302 3,084,510 4,824,302 14,880,923 |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) $ in Thousands | May 13, 2019USD ($)shares | Apr. 29, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Class of Stock [Line Items] | |||||
Reverse stock split conversion ratio | 0.5429 | ||||
Proceeds from initial public offering, net of issuance costs | $ 64,935 | $ 0 | |||
Accumulated deficit | $ 183,069 | $ 157,049 | |||
IPO | |||||
Class of Stock [Line Items] | |||||
Shares sold | shares | 3,571,428 | ||||
Proceeds from initial public offering, net of issuance costs | $ 71,400 | ||||
Net proceeds on offering | $ 64,500 | ||||
Shares converted | shares | 14,641,997 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Deferred offering costs | $ 0 | $ 251 |
PROPERTY AND EQUIPMENT - Summar
PROPERTY AND EQUIPMENT - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 4,491 | $ 4,469 |
Less: accumulated depreciation and amortization | (3,733) | (3,393) |
Property and equipment, net | 758 | 1,076 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 3,511 | 3,489 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 564 | 564 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 294 | 294 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 122 | $ 122 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 364 | $ 627 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Liabilities: | ||
Success fee liability expected to be paid (percent) | 100.00% | |
Fair Value, Recurring | ||
Assets: | ||
Cash Equivalents | $ 117,660 | $ 79,216 |
Total | 117,660 | 79,216 |
Liabilities: | ||
Success Fee Liability | 1,220 | |
Preferred Stock Warrant Liability | 425 | |
Total | 1,645 | |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Cash Equivalents | 117,660 | 79,216 |
Total | 117,660 | 79,216 |
Liabilities: | ||
Success Fee Liability | 0 | |
Preferred Stock Warrant Liability | 0 | |
Total | 0 | |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Cash Equivalents | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Success Fee Liability | 0 | |
Preferred Stock Warrant Liability | 0 | |
Total | 0 | |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Cash Equivalents | 0 | 0 |
Total | $ 0 | 0 |
Liabilities: | ||
Success Fee Liability | 1,220 | |
Preferred Stock Warrant Liability | 425 | |
Total | $ 1,645 |
FAIR VALUE MEASUREMENTS - Rollf
FAIR VALUE MEASUREMENTS - Rollforward of Fair Value of Success Fee Liability and Preferred Stock Warrant Liability (Details) - Fair Value, Recurring $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Success fee | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning | $ 1,220 |
Settlement of success fee | (1,220) |
Balance, ending | 0 |
Preferred stock warrant liability | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance, beginning | 425 |
Increase in warrant fair value included in other expense | 51 |
Reclassification to additional paid-in capital in connection with IPO | (476) |
Balance, ending | $ 0 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 1,329 | $ 1,957 |
Accrued external research and development expenses | 1,829 | 1,679 |
Accrued professional fees | 990 | 678 |
Other | 738 | 985 |
Total accrued expenses and other current liabilities | $ 4,886 | $ 5,299 |
DEBT FINANCING - Summary of Lon
DEBT FINANCING - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Principal amount of long term debt | $ 26,000 | $ 26,000 |
Debt discount | (530) | (612) |
Deferred financing fees | (752) | (867) |
Long term debt, net of discount | $ 24,718 | $ 24,521 |
DEBT FINANCING - Narrative (Det
DEBT FINANCING - Narrative (Details) - USD ($) | May 17, 2019 | Feb. 28, 2021 | Dec. 31, 2018 | Oct. 31, 2018 | Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||||||
Transaction fee | $ 0 | $ 844,000 | ||||||
Debt discount | $ 612,000 | 530,000 | ||||||
Deferred financing fees | 867,000 | 752,000 | ||||||
Interest expense | $ 300,000 | $ 200,000 | ||||||
Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Success fee | $ 1,100,000 | |||||||
2018 Facility | Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Funding amount | 21,000,000 | |||||||
Transaction fee | 900,000 | |||||||
Monthly principal payments | $ 600,000 | |||||||
Term | 36 months | |||||||
Interest rate at period end | 10.94% | |||||||
Success fee | $ 400,000 | |||||||
2018 Facility | LIBOR | Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on interest rate | 8.50% | |||||||
February 2017 Amended Facility | Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Success fee | $ 700,000 | |||||||
Term Loan B | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Amounts drawn | 5,000,000 | |||||||
Amended 2018 Facility | Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Terminal fee | $ 1,100,000 | |||||||
Amended 2018 Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Success fee | $ 1,200,000 | $ 1,200,000 | ||||||
Debt discount | 100,000 | |||||||
Deferred financing fees | 100,000 | |||||||
Terminal fee | 1,400,000 | |||||||
Terminal fee, change in period | $ 0 | |||||||
Terminal fee, at carrying value | $ 700,000 | $ 800,000 | ||||||
Pro Forma | Term Loan B | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Funding amount | 5,000,000 | |||||||
Pro Forma | Term Loan C | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Funding amount | $ 4,000,000 | |||||||
Forecast | Amended 2018 Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Monthly principal payments | $ 1,100,000 | |||||||
Term | 24 months |
DEBT FINANCING - Maturities of
DEBT FINANCING - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 11,917 | |
2022 | 13,000 | |
2023 | 1,083 | |
Principal amount of long-term debt | $ 26,000 | $ 26,000 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock Narrative (Details) - $ / shares | May 13, 2019 | Jun. 30, 2019 | May 31, 2019 | Dec. 31, 2018 |
Subsidiary, Sale of Stock [Line Items] | ||||
Common and preferred stock, shares authorized (in shares) | 160,000,000 | |||
Common stock authorized (in shares) | 150,000,000 | 150,000,000 | 47,000,000 | |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | |||
Preferred stock, par value (USD per share) | $ 0.001 | |||
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares converted | 14,641,997 |
STOCKHOLDERS' EQUITY - Prefer_2
STOCKHOLDERS' EQUITY - Preferred Stock Warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2012 | May 13, 2019 | |
Series A Preferred Stock | ||
Class of Warrant or Right [Line Items] | ||
Warrants issued in the period (in shares) | 112,795 | |
Warrant exercise price per share (USD per share) | $ 1.95 | |
Common stock | ||
Class of Warrant or Right [Line Items] | ||
Warrant exercise price per share (USD per share) | $ 3.59 | |
Warrants outstanding (in shares) | 61,235 | |
Warrants exercised(in shares) | 45,414 |
STOCKHOLDERS' EQUITY - Stock Op
STOCKHOLDERS' EQUITY - Stock Option Fair Value Measurement Inputs (Details) - 2010 Plan - Stock options | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate, minimum | 1.84% | 1.93% | 1.84% | 1.93% |
Risk-free interest rate, maximum | 2.34% | 2.90% | 2.50% | 2.90% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility of underlying common stock | 73.40% | 65.00% | 73.40% | 65.00% |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 3 months | 3 months | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years 3 months | 6 years 3 months |
STOCKHOLDERS' EQUITY - Stock _2
STOCKHOLDERS' EQUITY - Stock Option Plan (Details) - Stock options - 2010 Plan - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grand date fair value of options granted in the period (USD per share) | $ 7.03 | $ 2.09 |
Unrecognized compensation expense related to unvested stock options | $ 16.6 | |
Unrecognized compensation expense, recognition period | 3 years 7 days |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 1,504 | $ 707 | $ 2,644 | $ 1,078 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 586 | 230 | 1,068 | 444 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 918 | $ 477 | $ 1,576 | $ 634 |
STOCKHOLDERS' EQUITY - Summar_2
STOCKHOLDERS' EQUITY - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning balance (in shares) | shares | 4,039,487 | |
Granted (in shares) | shares | 941,353 | |
Exercised (in shares) | shares | (46,038) | |
Canceled (in shares) | shares | (110,500) | |
Outstanding, ending balance (in shares) | shares | 4,824,302 | 4,039,487 |
Options vested or expected to vest (in shares) | shares | 4,765,453 | |
Options exercisable (in shares) | shares | 1,738,943 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price, outstanding, beginning balance (USD per share) | $ / shares | $ 5.67 | |
Weighted-average exercise price, granted (USD per share) | $ / shares | 15.64 | |
Weighted-average exercise price, exercised (USD per share) | $ / shares | 4.76 | |
Weighted-average exercise price, canceled (USD per share) | $ / shares | 6.69 | |
Weighted average exercise price, outstanding, ending balance (USD per share) | $ / shares | 7.62 | $ 5.67 |
Weighted-average exercise price, options vested or expected to vest (USD per share) | $ / shares | 7.62 | |
Weighted-average exercise price, options exercisable (USD per share) | $ / shares | $ 4.90 | |
Weighted Average Remaining Life, Outstanding (in Years) | 7 years 9 months | 8 years 7 months 6 days |
Weighted Average Remaining Life, Options vested or expected to vest (in Years) | 7 years 9 months | |
Weighted Average Remaining Life, Options exercisable (in Years) | 6 years 5 months | |
Intrinsic Value, Outstanding | $ | $ 5,331 | |
Intrinsic Value, Options vested or expected to vest | $ | $ 8,054 | |
Intrinsic Value, Options exercisable | $ | $ 7,669 |
STOCKHOLDERS' EQUITY - 2019 Sto
STOCKHOLDERS' EQUITY - 2019 Stock Option, Incentive Plan and Employee Stock Purchase Plan (Details) | Apr. 29, 2019shares |
Stock Option And Incentive Plan 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares initially reserved for future issuance (in shares) | 905,000 |
Annual percent increase in authorized shares available for issuance under share based payment arrangements | 4.00% |
Employee Stock Purchase Plan 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares initially reserved for future issuance (in shares) | 237,181 |
Annual percent increase in authorized shares available for issuance under share based payment arrangements | 1.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Deferred rent | $ 0.1 | $ 0.1 | |
Rent expense | $ 0.3 | $ 0.3 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 599 |
2020 | 1,226 |
2021 | 415 |
Total | $ 2,240 |
NET LOSS PER SHARE - Calculatio
NET LOSS PER SHARE - Calculation of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||||
Net loss | $ (14,447) | $ (11,573) | $ (9,423) | $ (8,100) | $ (26,020) | $ (17,523) |
Accretion of redeemable convertible preferred stock | 0 | (41) | (46) | (79) | ||
Net loss attributable to common stockholders | $ (14,447) | $ (9,464) | $ (26,066) | $ (17,602) | ||
Denominator: | ||||||
Weighted average common shares outstanding, basic and diluted (in shares) | 15,230,815 | 4,405,597 | 10,032,202 | 4,317,845 | ||
Net loss per share, basic and diluted (USD per share) | $ (0.95) | $ (2.15) | $ (2.60) | $ (4.08) |
NET LOSS PER SHARE - Summary of
NET LOSS PER SHARE - Summary of Anti-dilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 4,824,302 | 14,880,923 |
Redeemable convertible preferred stock (as converted to common stock) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 0 | 11,735,178 |
Warrants to purchase redeemable convertible preferred stock (as converted to common stock) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 0 | 61,235 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 4,824,302 | 3,084,510 |