Axcella Health (AXLA) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2019	Nov. 08, 2019
Cover page.
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-38501
Entity Registrant Name	AXCELLA HEALTH INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-3321056
Entity Address, Address Line One	840 Memorial Drive
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02139
City Area Code	857
Local Phone Number	320-2200
Title of 12(b) Security	Common Stock
Trading Symbol	AXLA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,113,715
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Central Index Key	0001633070
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 105,355	$ 79,466
Prepaid expenses and other current assets	2,957	835
Total current assets	108,312	80,301
Property and equipment, net	659	1,076
Security deposits and other assets	216	216
Deferred offering costs	0	251
Total assets	109,187	81,844
Current liabilities:
Accounts payable	3,586	1,612
Accrued expenses	5,633	5,299
Total current liabilities	9,219	6,911
Long term debt, net of discount	24,808	24,521
Other liabilities	816	1,898
Preferred stock warrant liability	0	425
Total liabilities	34,843	33,755
Commitments and contingencies (Note 8)	0	0
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, 23,517,446 and 5,193,915 shares issued and 23,098,465 and 4,774,934 shares outstanding at September 30, 2019 and December 31, 2018, respectively	24	6
Additional paid-in capital	274,693	7,290
Treasury stock, 418,981 shares at cost	0	0
Accumulated deficit	(200,373)	(157,049)
Total stockholders' equity (deficit)	74,344	(149,753)
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)	$ 109,187	$ 81,844
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)	23,517,446	5,193,915
Common stock outstanding (in shares)	23,098,465	4,774,934
Treasury stock at cost (in shares)	418,981	418,981

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	May 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value (USD per share)	$ 0.001	$ 0.001	$ 0.001
Common stock authorized (in shares)	150,000,000	150,000,000	47,000,000
Common stock issued (in shares)	23,517,446		5,193,915
Common stock outstanding (in shares)	23,098,465		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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Operating expenses:
Research and development	$ 12,157	$ 6,147	$ 29,063	$ 17,609
General and administrative	4,840	2,087	13,036	7,124
Total operating expenses	16,997	8,234	42,099	24,733
Loss from operations	(16,997)	(8,234)	(42,099)	(24,733)
Other income (expense):
Change in fair value of preferred stock warrant liability	0	5	(51)	46
Interest income (expense), net	(307)	(555)	(1,174)	(1,620)
Total other income (expense), net	(307)	(550)	(1,225)	(1,574)
Net loss	$ (17,304)	$ (8,784)	$ (43,324)	$ (26,307)
Net loss per share, basic and diluted (USD per share)	$ (0.75)	$ (1.85)	$ (3.01)	$ (5.92)
Weighted average common shares outstanding, basic and diluted (in shares)	23,083,367	4,769,387	14,430,397	4,470,013

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (43,324)	$ (26,307)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	518	854
Stock-based compensation expense	4,322	1,897
Change in fair value of preferred stock warrant liability	51	(46)
Non-cash interest expense	429	335
Gain on sale of property and equipment	(18)	(36)
Changes in current assets and liabilities:
Prepaid expenses and other current assets	(2,108)	(87)
Accounts payable	2,013	176
Accrued expenses	536	72
Net cash used in operating activities	(37,581)	(23,142)
Cash flows from investing activities:
Purchases of property and equipment	(102)	(486)
Proceeds from the sale of property and equipment	19	73
Net cash used in investing activities	(83)	(413)
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance costs	64,532	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	241	27
Net cash provided by financing activities	63,553	183
Net increase (decrease) in cash and cash equivalents	25,889	(23,372)
Cash and cash equivalents, beginning of period	79,466	46,817
Cash and cash equivalents, end of period	105,355	23,445
Supplemental cash flow information:
Cash paid for interest	2,151	1,656
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

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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,828
Shares, Issued		4,648,078		418,981
Stockholders' Equity Attributable to Parent	$ (116,354)	$ 5	$ 4,621	$ 0	$ (120,980)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of preferred stock to redemption value	38
Accretion of preferred stock to redemption value	(38)		(38)
Stock-based compensation	368		368
Net loss	$ (8,100)				(8,100)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,828
Shares, Issued		4,648,078		418,981
Stockholders' Equity Attributable to Parent	$ (116,354)	$ 5	4,621	$ 0	(120,980)
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 Sep. 30, 2018	21,549,244
Redeemable convertible preferred stock, ending at Sep. 30, 2018	$ 138,948
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	(26,307)
Ending balance (in shares) at Sep. 30, 2018		5,190,862		418,981
Ending balance at Sep. 30, 2018	(140,857)	$ 6	6,424	$ 0	(147,287)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (26,307)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,828
Shares, Issued		4,648,078		418,981
Stockholders' Equity Attributable to Parent	$ (116,354)	$ 5	4,621	$ 0	(120,980)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,866
Shares, Issued		4,648,078		418,981
Stockholders' Equity Attributable to Parent	$ (124,124)	$ 5	4,951	$ 0	(129,080)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)		535,320
Exercise of common stock options	1	$ 1
Accretion of preferred stock to redemption value	41
Accretion of preferred stock to redemption value	(41)		(41)
Stock-based compensation	710		710
Net loss	$ (9,423)				(9,423)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,866
Shares, Issued		4,648,078		418,981
Stockholders' Equity Attributable to Parent	$ (124,124)	$ 5	4,951	$ 0	(129,080)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,907
Shares, Issued		5,183,398		418,981
Stockholders' Equity Attributable to Parent	(132,877)	$ 6	5,620	$ 0	(138,503)
Accretion of preferred stock to redemption value	$ 41
Redeemable convertible preferred stock, ending (in shares) at Sep. 30, 2018	21,549,244
Redeemable convertible preferred stock, ending at Sep. 30, 2018	$ 138,948
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of preferred stock to redemption value	(41)		(41)
Exercise of common stock options (in shares)		7,464
Exercise of common stock options	26		26
Stock-based compensation	819		819
Net loss	(8,784)				(8,784)
Ending balance (in shares) at Sep. 30, 2018		5,190,862		418,981
Ending balance at Sep. 30, 2018	(140,857)	$ 6	6,424	$ 0	(147,287)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)		7,464
Exercise of common stock options	26		26
Accretion of preferred stock to redemption value	41
Accretion of preferred stock to redemption value	(41)		(41)
Stock-based compensation	819		819
Net loss	$ (8,784)				(8,784)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,907
Shares, Issued		5,183,398		418,981
Stockholders' Equity Attributable to Parent	$ (132,877)	$ 6	5,620	$ 0	(138,503)
Preferred Stock Outstanding (in shares)	21,549,244
Redeemable convertible preferred stock (Note 7)	$ 138,948
Shares, Issued		5,190,862		418,981
Stockholders' Equity Attributable to Parent	$ (140,857)	$ 6	6,424	$ 0	(147,287)
Preferred Stock Outstanding (in shares)	26,831,246
Redeemable convertible preferred stock (Note 7)	$ 197,842
Shares, Issued		5,193,915		418,981
Stockholders' Equity Attributable to Parent	$ (149,753)	$ 6	7,290	$ 0	(157,049)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)		1,335
Exercise of common stock options	12		12
Accretion of preferred stock to redemption value	46
Accretion of preferred stock to redemption value	(46)		(46)
Stock-based compensation	1,137		1,137
Net loss	$ (11,573)				(11,573)
Preferred Stock Outstanding (in shares)	26,831,246
Redeemable convertible preferred stock (Note 7)	$ 197,842
Shares, Issued		5,193,915		418,981
Stockholders' Equity Attributable to Parent	(149,753)	$ 6	7,290	$ 0	(157,049)
Stock issuance costs	$ 6,896
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 Sep. 30, 2019	0
Redeemable convertible preferred stock, ending at Sep. 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)	64,700
Reclassification of warrants to additional paid-in capital	$ 476
Net loss	(43,324)
Ending balance (in shares) at Sep. 30, 2019		23,517,446		418,981
Ending balance at Sep. 30, 2019	$ 74,344	$ 24	274,693	$ 0	(200,373)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)	64,700
Net loss	$ (43,324)
Preferred Stock Outstanding (in shares)	26,831,246
Redeemable convertible preferred stock (Note 7)	$ 0
Shares, Issued		5,193,915		418,981
Stockholders' Equity Attributable to Parent	$ (149,753)	$ 6	7,290	$ 0	(157,049)
Preferred Stock Outstanding (in shares)	26,831,246
Redeemable convertible preferred stock (Note 7)	$ 197,888
Shares, Issued		5,195,250		418,981
Stockholders' Equity Attributable to Parent	$ (160,223)	$ 6	8,393	$ 0	(168,622)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)		44,697
Exercise of common stock options	211		211
Stock-based compensation	1,507		1,507
Net loss	$ (14,447)				(14,447)
Preferred Stock Outstanding (in shares)	26,831,246
Redeemable convertible preferred stock (Note 7)	$ 197,888
Shares, Issued		5,195,250		418,981
Stockholders' Equity Attributable to Parent	$ (160,223)	$ 6	8,393	$ 0	(168,622)
Preferred Stock Outstanding (in shares)	0
Redeemable convertible preferred stock (Note 7)	$ 0
Shares, Issued		23,498,786		418,981
Stockholders' Equity Attributable to Parent	$ 89,944	$ 24	272,989	$ 0	(183,069)
Redeemable convertible preferred stock, ending (in shares) at Sep. 30, 2019	0
Redeemable convertible preferred stock, ending at Sep. 30, 2019	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)		18,660
Exercise of common stock options	26		26
Stock-based compensation	1,678		1,678
Net loss	(17,304)				(17,304)
Ending balance (in shares) at Sep. 30, 2019		23,517,446		418,981
Ending balance at Sep. 30, 2019	74,344	$ 24	274,693	$ 0	(200,373)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of common stock options (in shares)		18,660
Exercise of common stock options	26		26
Stock-based compensation	1,678		1,678
Net loss	$ (17,304)				(17,304)
Preferred Stock Outstanding (in shares)	0
Redeemable convertible preferred stock (Note 7)	$ 0
Shares, Issued		23,498,786		418,981
Stockholders' Equity Attributable to Parent	$ 89,944	$ 24	272,989	$ 0	(183,069)
Preferred Stock Outstanding (in shares)	0
Redeemable convertible preferred stock (Note 7)	$ 0
Shares, Issued		23,517,446		418,981
Stockholders' Equity Attributable to Parent	$ 74,344	$ 24	$ 274,693	$ 0	$ (200,373)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Statement of Stockholders' Equity [Abstract]
Stock issuance costs	$ 6,896

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Sep. 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, Non-IND, IRB-Approved 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 a certificate of amendment to its 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.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 ("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 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 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 had capitalized $0.3 million of deferred offering costs related to the IPO. After consummation of the IPO, which closed on May 13, 2019, deferred offering costs totaling $1.9 million 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	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): September 30, December 31, Laboratory equipment $ 3,475 $ 3,489 Leasehold improvements 564 564 Office and computer equipment 294 294 Furniture and fixtures 122 122 Property and equipment 4,455 4,469 Less: accumulated depreciation and amortization (3,796) (3,393) Property and equipment, net $ 659 $ 1,076 Depreciation and amortization expense for the nine months ended September 30, 2019 and 2018 was $0.5 million and $0.9 million, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 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 September 30, 2019 using: Level 1 Level 2 Level 3 Total Assets: Cash Equivalents $ 105,105 $ — $ — $ 105,105 Total $ 105,105 $ — $ — $ 105,105 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 September 30, 2019 is as follows (in thousands): Success fee Preferred stock warrant 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 — September 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 to the Company's debt facility.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 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): ​ September 30, December 31, Accrued employee compensation and benefits $ 1,987 $ 1,957 Accrued external research and development expenses 2,422 1,679 Accrued professional fees 315 678 Other 909 985 Total accrued expenses and other current liabilities $ 5,633 $ 5,299

DEBT FINANCING

DEBT FINANCING	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
DEBT FINANCING	DEBT FINANCING Long term debt consisted of the following (in thousands): ​ September 30, December 31, Principal amount of long term debt $ 26,000 $ 26,000 Debt discount (493) (612) Deferred financing fees (699) (867) Long term debt, net of discount $ 24,808 $ 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 (10.61% as of September 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 nine months ended September 30, 2019 and 2018, interest expense arising from the amortization of the debt discount and deferred financing fees was $0.4 million and $0.3 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. The Company was accruing the terminal fee obligation over the term of the facility. The October 2018 amendment increased the terminal interest fee to $1.4 million. The carrying value of the terminal interest fee was $0.8 million and $0.7 million at September 30, 2019 and December 31, 2018, respectively. The scheduled principal maturity of the long term debt, as of September 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	9 Months Ended
	Sep. 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 September 30, Nine Months Ended 2019 2018 2019 2018 Risk-free interest rate 1.43% - 1.95% 2.82% 1.43% - 2.50% 1.93% - 2.90% Expected term (in years) 0.34 - 6.25 6.25 0.25 - 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 nine months ended September 30, 2019 and 2018, were $6.73 and $3.38 per share, respectively. As of September 30, 2019, there was $15.4 million of unrecognized compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 2.8 years. Stock-based compensation related to stock options and unvested stock awards are classified as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2019 2018 2019 2018 Research and development $ 659 $ 254 $ 1,727 $ 695 General and administrative 1,019 568 2,595 1,202 $ 1,678 $ 822 $ 4,322 $ 1,897 The following table summarizes the option activity under the 2010 Stock Incentive Plan: Options Weighted Average Weighted Average Intrinsic Outstanding January 1, 2019 4,039,487 $ 5.67 8.6 $ 5,331 Granted 1,152,381 14.20 Exercised (64,700) 3.79 Canceled (231,296) 6.53 Outstanding September 30, 2019 4,895,872 $ 7.68 8.0 Options vested or expected to vest as of September 30, 2019 4,837,022 $ 7.68 8.0 $ (9,771) Options exercisable as of September 30, 2019 2,003,863 $ 5.19 6.8 $ 942 The intrinsic value of options exercised during the period ended September 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	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Leases The Company maintains a lease agreement for laboratory and office space with an expiration date of April 1, 2021. The lease agreement contains escalating rent payments. Rent expense is recorded on a straight-line basis. The Company had deferred rent of $0.1 million as of both September 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 $ 301 2020 1,226 2021 415 Total $ 1,942 Rent expense for the nine months ended September 30, 2019 and 2018 was $0.9 million and $0.9 million, respectively.

RETIREMENT PLAN

RETIREMENT PLAN	9 Months Ended
	Sep. 30, 2019
Retirement Benefits [Abstract]
RETIREMENT PLAN	RETIREMENT PLANThe 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	9 Months Ended
	Sep. 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 Nine Months Ended 2019 2018 2019 2018 Numerator: Net loss $ (17,304) $ (8,784) $ (43,324) $ (26,307) Accretion of redeemable convertible preferred stock — (41) (46) (79) Net loss attributable to common stockholders $ (17,304) $ (8,825) $ (43,370) $ (26,386) Denominator: Weighted average common shares outstanding, basic and diluted 23,083,367 4,769,387 14,430,397 4,470,013 Net loss per share, basic and diluted $ (0.75) $ (1.85) $ (3.01) $ (5.92) 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: Nine 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 4,895,872 3,202,728 4,895,872 14,999,141

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS	RELATED-PARTY TRANSACTIONSIn August 2019, the Company entered into a consulting agreement (the "Consulting Agreement") with the Chairman of the Company's Board of Directors, to provide various consulting services to the Company. The total annual compensation under the Consulting Agreement per year is $0.3 million. The expense for the nine months ended September 30, 2019 was $0.2 million, which included compensation for services provided prior to August 2019. As of September 30, 2019, there were no amounts payable to the Chairman for costs related to the Consulting Agreement.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSThe Company has evaluated subsequent events for financial statement purposes occurring through November 12, 2019, the date that these condensed consolidated financial statements were issued.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 ("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 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 CostsThe 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)	9 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consist of the following (in thousands): September 30, December 31, Laboratory equipment $ 3,475 $ 3,489 Leasehold improvements 564 564 Office and computer equipment 294 294 Furniture and fixtures 122 122 Property and equipment 4,455 4,469 Less: accumulated depreciation and amortization (3,796) (3,393) Property and equipment, net $ 659 $ 1,076

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 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 September 30, 2019 using: Level 1 Level 2 Level 3 Total Assets: Cash Equivalents $ 105,105 $ — $ — $ 105,105 Total $ 105,105 $ — $ — $ 105,105 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 September 30, 2019 is as follows (in thousands): Success fee Preferred stock warrant 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 — September 30, 2019 $ — $ —

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Payables and Accruals (Tables)	9 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consisted of the following (in thousands): ​ September 30, December 31, Accrued employee compensation and benefits $ 1,987 $ 1,957 Accrued external research and development expenses 2,422 1,679 Accrued professional fees 315 678 Other 909 985 Total accrued expenses and other current liabilities $ 5,633 $ 5,299

DEBT FINANCING (Tables)

DEBT FINANCING (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Summary of Long-term Debt	Long term debt consisted of the following (in thousands): ​ September 30, December 31, Principal amount of long term debt $ 26,000 $ 26,000 Debt discount (493) (612) Deferred financing fees (699) (867) Long term debt, net of discount $ 24,808 $ 24,521
Schedule of Maturities of Long-term Debt	The scheduled principal maturity of the long term debt, as of September 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)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended 2019 2018 2019 2018 Risk-free interest rate 1.43% - 1.95% 2.82% 1.43% - 2.50% 1.93% - 2.90% Expected term (in years) 0.34 - 6.25 6.25 0.25 - 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 September 30, Nine Months Ended 2019 2018 2019 2018 Research and development $ 659 $ 254 $ 1,727 $ 695 General and administrative 1,019 568 2,595 1,202 $ 1,678 $ 822 $ 4,322 $ 1,897
Summary of Options Under the 2010 Plan	The following table summarizes the option activity under the 2010 Stock Incentive Plan: Options Weighted Average Weighted Average Intrinsic Outstanding January 1, 2019 4,039,487 $ 5.67 8.6 $ 5,331 Granted 1,152,381 14.20 Exercised (64,700) 3.79 Canceled (231,296) 6.53 Outstanding September 30, 2019 4,895,872 $ 7.68 8.0 Options vested or expected to vest as of September 30, 2019 4,837,022 $ 7.68 8.0 $ (9,771) Options exercisable as of September 30, 2019 2,003,863 $ 5.19 6.8 $ 942

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 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 $ 301 2020 1,226 2021 415 Total $ 1,942

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended 2019 2018 2019 2018 Numerator: Net loss $ (17,304) $ (8,784) $ (43,324) $ (26,307) Accretion of redeemable convertible preferred stock — (41) (46) (79) Net loss attributable to common stockholders $ (17,304) $ (8,825) $ (43,370) $ (26,386) Denominator: Weighted average common shares outstanding, basic and diluted 23,083,367 4,769,387 14,430,397 4,470,013 Net loss per share, basic and diluted $ (0.75) $ (1.85) $ (3.01) $ (5.92)
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: Nine 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 4,895,872 3,202,728 4,895,872 14,999,141

NATURE OF BUSINESS (Details)

NATURE OF BUSINESS (Details) $ in Thousands	May 13, 2019USD ($)shares	Apr. 29, 2019	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Class of Stock [Line Items]
Reverse stock split conversion ratio		0.5428816503
Proceeds from initial public offering, net of issuance costs			$ 64,532	$ 0
Accumulated deficit			$ 200,373		$ 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	Sep. 30, 2019	May 13, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Deferred offering costs	$ 0	$ 1,900	$ 251

PROPERTY AND EQUIPMENT - Summar

PROPERTY AND EQUIPMENT - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment	$ 4,455	$ 4,469
Less: accumulated depreciation and amortization	(3,796)	(3,393)
Property and equipment, net	659	1,076
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment	3,475	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	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 518	$ 854

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Liabilities:
Success fee liability expected to be paid (percent)	100.00%
Fair Value, Recurring
Assets:
Cash Equivalents	$ 105,105	$ 79,216
Total	105,105	79,216
Liabilities:
Success Fee Liability		1,220
Preferred Stock Warrant Liability		425
Total		1,645
Fair Value, Recurring | Level 1
Assets:
Cash Equivalents	105,105	79,216
Total	105,105	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	9 Months Ended
	Sep. 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	Sep. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accrued employee compensation and benefits	$ 1,987	$ 1,957
Accrued external research and development expenses	2,422	1,679
Accrued professional fees	315	678
Other	909	985
Total accrued expenses and other current liabilities	$ 5,633	$ 5,299

DEBT FINANCING - Summary of Lon

DEBT FINANCING - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Principal amount of long term debt	$ 26,000	$ 26,000
Debt discount	(493)	(612)
Deferred financing fees	(699)	(867)
Long term debt, net of discount	$ 24,808	$ 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	Sep. 30, 2019	Sep. 30, 2018
Line of Credit Facility [Line Items]
Transaction fee						$ 0	$ 844,000
Debt discount			$ 612,000			493,000
Deferred financing fees			867,000			699,000
Interest expense						$ 400,000	$ 300,000
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						10.61%
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 | 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, 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	Sep. 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	Sep. 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		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	1.43%	2.82%	1.43%	1.93%
Risk-free interest rate, maximum	1.95%		2.50%	2.90%
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		4 months 2 days
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	9 Months Ended
	Sep. 30, 2019	Sep. 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)	$ 6.73	$ 3.38
Unrecognized compensation expense related to unvested stock options	$ 15.4
Unrecognized compensation expense, recognition period	2 years 9 months 18 days

STOCKHOLDERS' EQUITY - Summary

STOCKHOLDERS' EQUITY - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 1,678	$ 822	$ 4,322	$ 1,897
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	659	254	1,727	695
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 1,019	$ 568	$ 2,595	$ 1,202

STOCKHOLDERS' EQUITY - Summar_2

STOCKHOLDERS' EQUITY - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 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	1,152,381
Exercised (in shares) | shares	(64,700)
Canceled (in shares) | shares	(231,296)
Outstanding, ending balance (in shares) | shares	4,895,872	4,039,487
Options vested or expected to vest (in shares) | shares	4,837,022
Options exercisable (in shares) | shares	2,003,863
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	14.20
Weighted-average exercise price, exercised (USD per share) | $ / shares	3.79
Weighted-average exercise price, canceled (USD per share) | $ / shares	6.53
Weighted average exercise price, outstanding, ending balance (USD per share) | $ / shares	7.68	$ 5.67
Weighted-average exercise price, options vested or expected to vest (USD per share) | $ / shares	7.68
Weighted-average exercise price, options exercisable (USD per share) | $ / shares	$ 5.19
Weighted Average Remaining Life, Outstanding (in Years)	8 years	8 years 7 months 6 days
Weighted Average Remaining Life, Options vested or expected to vest (in Years)	8 years
Weighted Average Remaining Life, Options exercisable (in Years)	6 years 9 months 18 days
Intrinsic Value, Outstanding | $		$ 5,331
Intrinsic Value, Options vested or expected to vest | $	$ (9,771)
Intrinsic Value, Options exercisable | $	$ 942

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	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Deferred rent	$ 0.1		$ 0.1
Rent expense	$ 0.9	$ 0.9

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 301
2020	1,226
2021	415
Total	$ 1,942

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						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net loss	$ (17,304)	$ (14,447)	$ (11,573)	$ (8,784)	$ (9,423)	$ (8,100)	$ (43,324)	$ (26,307)
Accretion of redeemable convertible preferred stock	0			(41)			(46)	(79)
Net loss attributable to common stockholders	$ (17,304)			$ (8,825)			$ (43,370)	$ (26,386)
Denominator:
Weighted average common shares outstanding, basic and diluted (in shares)	23,083,367			4,769,387			14,430,397	4,470,013
Net loss per share, basic and diluted (USD per share)	$ (0.75)			$ (1.85)			$ (3.01)	$ (5.92)

NET LOSS PER SHARE - Summary of

NET LOSS PER SHARE - Summary of Anti-dilutive Securities (Details) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 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)	4,895,872	14,999,141
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
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share (in shares)	4,895,872	3,202,728

RELATED-PARTY TRANSACTIONS - Na

RELATED-PARTY TRANSACTIONS - Narrative (Details) - Board of Directors Chairman	9 Months Ended
	Sep. 30, 2019USD ($)
Related Party Services Agreement
Related Party Transaction [Line Items]
Annual compensation due to related party	$ 300,000
Related Party Costs	200,000
Related Party Consulting Agreement
Related Party Transaction [Line Items]
Due to related parties	$ 0