Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | P.O. Box 1270 | |
Entity Address, City or Town | Littleton | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01460 | |
City Area Code | 857 | |
Local Phone Number | 320-2200 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | AXLA | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 73,686,948 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Central Index Key | 0001633070 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 12,540 | $ 17,147 |
Prepaid expenses and other current assets | 200 | 876 |
Total current assets | 12,740 | 18,023 |
Property and equipment, net | 25 | 693 |
Other assets | 0 | 211 |
Total assets | 12,765 | 18,927 |
Current liabilities: | ||
Accounts payable | 8,150 | 4,707 |
Accrued expenses and other current liabilities | 2,103 | 7,849 |
Current portion of operating lease liability | 1,641 | 1,592 |
Total current liabilities | 11,894 | 14,148 |
Operating lease liability | 144 | 569 |
Other non-current liabilities | 0 | 46 |
Total liabilities | 12,038 | 14,763 |
Commitments and contingencies (Note 8) | 0 | 0 |
Stockholders' equity: | ||
Common stock, $0.001 par value; 150,000,000 shares authorized, 74,102,008 and 74,074,201 shares issued and 73,683,027 and 73,655,220 shares outstanding at March 31, 2023 and December 31, 2022, respectively | 74 | 74 |
Additional paid-in capital | 423,056 | 422,517 |
Treasury stock, 418,981 shares at cost | 0 | 0 |
Accumulated deficit | (422,403) | (418,427) |
Total stockholders' equity | 727 | 4,164 |
Total liabilities and stockholders' equity | $ 12,765 | $ 18,927 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock issued (in shares) | 74,102,008 | 74,074,201 |
Common stock outstanding (in shares) | 73,683,027 | 73,655,220 |
Treasury stock at cost (in shares) | 418,981 | 418,981 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating expenses: | ||
Research and development | $ 1,433 | $ 13,544 |
General and administrative | 2,750 | 4,786 |
Total operating expenses | 4,183 | 18,330 |
Loss from operations | (4,183) | (18,330) |
Other (expense) income: | ||
Interest income | 140 | 22 |
Interest expense | 0 | (704) |
Other income (expense), net | 67 | (27) |
Total other income (expense), net | 207 | (709) |
Net loss | $ (3,976) | $ (19,039) |
Net loss per share, basic (USD per share) | $ (0.05) | $ (0.46) |
Net loss per share, diluted (USD per share) | $ (0.05) | $ (0.46) |
Weighted average common shares outstanding, basic (in shares) | 73,669,096 | 41,426,107 |
Weighted average common shares outstanding, diluted (in shares) | 73,669,096 | 41,426,107 |
Comprehensive loss: | ||
Net loss | $ (3,976) | $ (19,039) |
Other comprehensive income (loss): | ||
Unrealized losses on marketable securities | 0 | (18) |
Comprehensive loss | $ (3,976) | $ (19,057) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (3,976) | $ (19,039) |
Adjustment to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 11 | 77 |
Share-based compensation | 539 | 1,509 |
Non-cash interest expense | 0 | 130 |
Gain on the sale of property and equipment | (68) | 0 |
Non-cash lease expense | (376) | (9) |
Other non-cash items | 0 | 103 |
Changes in current assets and liabilities: | ||
Prepaid expenses and other current assets | 887 | 635 |
Accounts payable | 3,443 | 596 |
Accrued expenses and other current liabilities | (5,565) | (864) |
Net cash used in operating activities | (5,105) | (16,862) |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0 | (164) |
Proceeds from the sale of property and equipment | 525 | 0 |
Proceeds from sales and maturities of marketable securities | 0 | 13,324 |
Net cash provided by investing activities | 525 | 13,160 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 0 | 25,426 |
Offering costs paid | 0 | (71) |
Proceeds from exercise of common stock options and ESPP | 0 | 6 |
Repayments of the principal portion of finance lease | (27) | (43) |
Net cash (used in) provided by financing activities | (27) | 25,318 |
Net (decrease) increase in cash and cash equivalents | (4,607) | 21,616 |
Cash and cash equivalents, beginning of period | 17,147 | 23,574 |
Cash and cash equivalents, end of period | 12,540 | 45,190 |
Supplemental cash flow information: | ||
Cash paid for interest | 0 | 573 |
Supplemental disclosure of non-cash activities: | ||
Obtaining a right-of-use asset in exchange for an operating lease liability | 0 | 3,340 |
Purchases of property and equipment included in accounts payable | 0 | 15 |
Issuance costs incurred but unpaid at period end | $ 0 | $ 30 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 39,605,701 | ||||
Balance at beginning of period at Dec. 31, 2021 | $ 22,008 | $ 40 | $ 359,261 | $ (52) | $ (337,241) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock, net of issuance costs (in shares) | 13,321,602 | ||||
Issuance of common stock, net of issuance costs | 25,426 | $ 13 | 25,413 | ||
Exercise of common stock options (in shares) | 8,499 | ||||
Exercise of common stock options | 6 | 6 | |||
Vesting of restricted stock units (in shares) | 59,019 | ||||
Share-based compensation | 1,509 | 1,509 | |||
Unrealized loss on marketable securities | (18) | (18) | |||
Net loss | (19,039) | (19,039) | |||
Balance at end of period (in shares) at Mar. 31, 2022 | 52,994,821 | ||||
Balance at end of period at Mar. 31, 2022 | $ 29,892 | $ 53 | 386,189 | $ (70) | (356,280) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 73,655,220 | 74,074,201 | |||
Balance at beginning of period at Dec. 31, 2022 | $ 4,164 | $ 74 | 422,517 | (418,427) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of common stock options (in shares) | 0 | ||||
Vesting of restricted stock units (in shares) | 27,807 | ||||
Share-based compensation | $ 539 | 539 | |||
Net loss | $ (3,976) | (3,976) | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 73,683,027 | 74,102,008 | |||
Balance at end of period at Mar. 31, 2023 | $ 727 | $ 74 | $ 423,056 | $ (422,403) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance cost | $ 223 |
NATURE OF BUSINESS
NATURE OF BUSINESS | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS Company Overview Axcella Health Inc., doing business as “Axcella Therapeutics,” and subsidiaries ("Axcella," the "Company," "we" or "us") is a clinical-stage biotechnology company that was incorporated in Delaware on August 27, 2008 and has a principal place of business in Cambridge, Massachusetts. The Company is focused on pioneering a new approach to treat complex diseases using compositions of endogenous metabolic modulators, or EMMs. The Company's product candidates are comprised of multiple EMMs that are engineered in distinct combinations and ratios with the goal of simultaneously impacting multiple biological pathways. The Company's pipeline includes lead therapeutic candidates for the treatment of Long COVID (also known as Post COVID-19 Condition and Post-Acute Sequelae of COVID-19, or “PASC”) associated fatigue, and for the treatment of non-alcoholic steatohepatitis, or NASH. The Company is subject to risks and uncertainties 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 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. In December 2022, the Board of Directors approved a reprioritization of the Company's programs and a restructuring of operations to support its streamlined set of priorities. As part of this restructuring, the Board approved a reduction in force of approximately 85% of the Company’s workforce. Since the reorganization, the Company terminated its EMMPACT Phase 2b clinical trial of AXA1125 for the treatment of NASH to focus on AXA1125 for the treatment of Long COVID associated fatigue, vacating its facility and sold its non-leased laboratory equipment. Under Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. As of March 31, 2023, the Company had an accumulated deficit of $422.4 million, and cash and cash equivalents of $12.5 million. During the three months ended March 31, 2023, the Company incurred a loss of $4.0 million and used $5.1 million of cash in operations. The Company expects its reorganization will reduce its operating expenses, however the Company will need to raise additional funding to operate. Management has assessed the Company’s ability to continue as a going concern in accordance with the requirements of ASC 205-40 based on the need to raise additional capital to finance its future operations, its recurring losses from operations incurred since inception, expectation of continuing operating losses for the foreseeable future, and uncertainty around the changes to the business plan. As of May 4, 2023, the issuance date of the condensed consolidated financial statements for the quarter ended March 31, 2023, the Company has concluded that there is substantial doubt about its ability to continue as a going concern for a period of one year from the date that these condensed consolidated financial statements are issued. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. The Company's plans to alleviate its financing requirements include, among other things, pursuing the sale of its common stock, a transaction of the Company or its AXA1125 product candidate for Long COVID or other product candidates, and funding through the establishment of a collaboration(s) with a potential partner(s) to further advance its product pipeline, none of which can be guaranteed or are entirely within the Company's control. As of December 15, 2022, the Company was forced to discontinue some of its operations and develop and implement a plan to further extend payables, reduce overhead and scale back its current operating plan until sufficient additional capital is raised to support further operations. These factors individually and collectively raise substantial doubt about the Company's ability to continue as a going concern, and; therefore, it may be more difficult for the Company to attract investors. Unless the Company is able to raise additional capital to finance its operations, its long-term business plan may not be accomplished, and the Company may be forced to cease, further reduce, or further delay operations. However, the Company does not believe it is probable that those plans can be effectively implemented to mitigate the conditions or events that raise substantial doubt. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Furthermore, the accompanying condensed consolidated financial statements are unaudited and 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. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements as of and for the year ended December 31, 2022. The accompanying interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of March 31, 2023, the results of its operations for the three months ended March 31, 2023 and 2022, its cash flows for the three months ended March 31, 2023 and 2022, and its statements of stockholders’ equity for the three months ended March 31, 2023 and 2022. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2022, and the notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There were no material changes to the Company's significant accounting policies and estimates as reported in its Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 30, 2023. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. 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, liabilities, equity, expenses and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the Company’s ability to continue as a going concern. 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. Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. The Company considers all highly liquid investments with a remaining maturity when purchased of three months or less to be cash equivalents. Concentrations of Credit Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents. The Company’s cash equivalents as of March 31, 2023 consisted of bank deposits and money market funds that invest in U.S. treasury securities. The Company's investment policy includes guidelines on the quality of the institutions and financial instruments and defines the allowable investments that the Company believes minimizes the exposure to concentrations of credit risk. The Company has not experienced any credit losses and does not believe that it is subject to significant credit risk. Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents are carried at fair value, determined according to the fair value hierarchy described above. The carrying values of the Company’s accounts payable and accrued expenses approximate their fair values due to the short-term nature of these liabilities. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets. Upon disposal, retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Expenditures for repairs and maintenance that do not improve or extend the lives of the respective assets are charged to expense as incurred. Long-Lived Assets Impairment Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use and eventual disposition of an asset group are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted cash flows. Leases The Company determines whether a contract is, or contains, a lease at inception and classifies leases as operating or financing considering factors such as the length of the lease term, the present value of the lease payments, the nature of the asset being leased, and the potential for ownership of the asset to transfer during the lease term. Leases with terms greater than one-year are recognized on the consolidated balance sheets as right-of-use assets and lease liabilities and are measured at the present value of the fixed payments due over the expected lease term less the present value of any incentives, rebates or abatements received from the lessor. Options to extend a lease are included in the expected lease term if exercise of the option is deemed reasonably certain. Costs determined to be variable and not based on an index or rate are not included in the measurement of the lease liability and are expensed as incurred. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis an amount equal to the lease payments in the same currency, for a similar term, and in a similar economic environment. The Company records expense to recognize fixed lease payments on a straight-line basis over the expected lease term. The Company has elected the practical expedient not to separate lease and non-lease components for real estate leases. Segment Information Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Chief Executive Officer, who is the chief operating decision maker, in making decisions on how to allocate resources and assess performance. The Company operates in one reportable business segment. Comprehensive Loss Comprehensive loss includes net loss as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. For the three months ended March 31, 2022, the Company’s only element of other comprehensive loss was unrealized gains (losses) on marketable securities. For the three months ended March 31, 2023, there were no elements of other comprehensive loss. Net Loss Per Share Basic net loss per share attributable to common stockholders is calculated by dividing net loss by the weighted average shares outstanding during the period. Diluted net income (loss) per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. All common stock equivalents have been excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive for all periods presented. Newly Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . The new standard adjusts the accounting for assets held at amortized cost basis, including marketable securities accounted for as available-for-sale. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. The adoption of this standard on January 1, 2023 did not have a material impact on its condensed consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables present the Company’s assets that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy (in thousands): Fair Value Measurements at March 31, 2023 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 12,290 $ — $ — $ 12,290 Total $ 12,290 $ — $ — $ 12,290 Fair Value Measurements at December 31, 2022 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 14,649 $ — $ — $ 14,649 Total $ 14,649 $ — $ — $ 14,649 As of March 31, 2023 and December 31, 2022, the Company’s cash equivalents were invested in money market funds and were valued based on Level 1 inputs. During the three months ended March 31, 2023 and 2022, there were no transfers between Level 1, Level 2 and Level 3. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): March 31, December 31, Laboratory equipment $ — $ 3,506 Leasehold improvements — 564 Office and computer equipment 86 303 Furniture and fixtures — 122 Property and equipment 86 4,495 Less: accumulated depreciation and amortization (61) (3,802) Property and equipment, net $ 25 $ 693 Depreciation and amortization expense was nominal for the three months ended March 31, 2023, and $0.1 million for the three months ended March 31, 2022. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, Accrued employee compensation and benefits $ 612 $ 808 Accrued external research and development expenses 913 4,791 Accrued professional fees 578 824 Accrued employee termination benefits — 1,221 Other — 205 Total accrued expenses and other current liabilities $ 2,103 $ 7,849 During the three months ended March 31, 2023, the Company paid $1.2 million in employee termination benefits related to the December 2022 reduction-in-force. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY 2019 Stock Option and Incentive Plan The 2019 Stock Option and Incentive Plan (the "2019 Plan") was approved by the Company's board of directors on April 29, 2019. 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 and cash-based awards to the Company's officers, employees, directors and consultants. Awards under the 2019 plan generally vest ratably over the vesting period (3-4 years) and have a maximum term of 10 years. The number of shares initially reserved for issuance under the 2019 Plan is 905,000, which was increased on January 1, 2020 and will be increased 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. The number of options available for future grant under the 2019 Plan was 5,700,933 as of March 31, 2023. 2019 Employee Stock Purchase Plan The 2019 Employee Stock Purchase Plan (the "2019 ESPP") was approved by the Company's board of directors on April 29, 2019. A total of 237,181 shares of common stock were initially reserved for issuance under this plan, which was cumulatively increased on January 1, 2020 and will be increased 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. The number of shares available for future issuance under the 2019 ESPP was 935,186 shares as of March 31, 2023. Stock-Based Compensation Expense In connection with all share-based payment awards, total stock-based compensation expense recognized was as follows (in thousands): Three Months Ended 2023 2022 Research and development $ 169 $ 566 General and administrative 370 943 Total stock-based compensation expense $ 539 $ 1,509 Fair Value of Stock Options The fair value of stock option awards was estimated using the Black-Scholes option-pricing model. The expected term of these awards was determined using the simplified method, which uses the midpoint between the vesting date and the contractual term. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the stock awards. The expected dividend was zero as the Company had not paid any dividends on its common stock. Finally, as the Company does not have long-term trading history of its common stock, the expected volatility was derived from the average historical stock volatilities of several public companies within the industry that the Company considers to be comparable to the Company's business over a period equivalent to the expected term of the stock-based awards. The Black-Scholes option pricing model assumptions are included in the table below. Three Months Ended 2023 2022 Risk-free interest rate 3.95 % 1.87 % Expected option life (in years) 6.11 6.13 Expected dividend yield — % — % Expected volatility 90.1 % 91.4 % Stock Option Activity The following table summarizes the Company’s stock option activity for the three months ended March 31, 2023: Number of Shares Weighted Weighted Intrinsic Outstanding as of January 1, 2023 6,536,977 $ 5.05 Granted 611,500 0.68 Exercised — — Canceled (1,048,753) 5.11 Outstanding as of March 31, 2023 6,099,724 $ 4.60 6.64 $ — Exercisable as of March 31, 2023 4,081,667 $ 5.66 5.48 $ — Vested or expected to vest as of March 31, 2023 6,099,724 $ 4.60 6.64 $ — The intrinsic value of options exercised during the three months ended March 31, 2023 and 2022 was nominal. The weighted-average grant date fair value of the options granted during the three months ended March 31, 2023 and 2022 was $0.52 and $1.03 per share, respectively. As of March 31, 2023, there was $3.1 million of unrecognized compensation expense that is expected to be recognized over a weighted-average period of approximately 2.0 years. Restricted Stock Units The fair values of restricted stock units are based on the market value of the Company's common stock on the date of grant. The following table summarizes the Company's restricted stock unit activity for the three months ended March 31, 2023: Number of Shares Weighted Average Outstanding as of January 1, 2023 75,233 $ 5.04 Granted — — Vested (27,807) 4.41 Forfeited — — Outstanding as of March 31, 2023 47,426 $ 5.40 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHAREBasic 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 2023 2022 Numerator: Net loss $ (3,976) $ (19,039) Denominator: Weighted average common shares outstanding, basic and diluted 73,669,096 41,426,107 Net loss per share, basic and diluted $ (0.05) $ (0.46) 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: Three Months Ended 2023 2022 Options to purchase common stock 6,099,724 8,026,924 Unvested restricted stock units 47,426 216,331 Shares issuable under employee stock purchase plan — 37,820 6,147,150 8,281,075 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company leases a facility containing 19,200 square feet of laboratory and office space, which is located at 840 Memorial Drive, Cambridge, Massachusetts. The lease expires in April 2024, subject to an option to extend the lease for an additional three years. The lease agreement and most recent amendment contained escalating rent payments. In December 2022, the Company initiated activities to vacate its corporate offices in Cambridge, Massachusetts, and the activities were completed in January 2023. As a result, the Company performed a recoverability test by comparing the future cash flows attributable to the asset group to the carrying value of the corresponding long-lived, right-of-use asset for its facility lease. Based on this evaluation, the Company determined that the long-lived asset with a carrying value of $2.1 million was no longer recoverable and recorded a right-of-use asset impairment of $2.1 million in December 2022. The impairment was determined by comparing the fair value of the impacted asset group to their carrying value as of the impairment measurement date, as required under ASC 360, Property, Plant, and Equipment. The Company continues to amortize the lease liability over the lease term while its lease agreement remains in place. The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the three months ended March 31, 2023 and 2022 (in thousands, except weighted average figures): Three Months Ended Operating leases 2023 2022 Lease cost Operating lease cost $ 46 $ 401 Variable lease cost 196 193 Total lease cost $ 242 $ 594 Other information Operating cash flows used for operating leases $ 192 $ 603 Weighted average remaining lease term (years) 1.10 2.10 Weighted average discount rate (percentage) 9.0 % 9.0 % For the three months ended March 31, 2023 and 2022, the Company recorded $0.2 million and $0.6 million in operating lease expense, respectively, and made lease payments of $0.2 million and $0.6 million, respectively, with such amounts reflected in the condensed consolidated statements of cash flows in operating activities. Future minimum lease payments and lease liabilities as of March 31, 2023 and December 31, 2022 were as follows (in thousands): As of Maturity of lease liabilities March 31, December 31, 2023 $ 1,300 $ 1,722 2024 580 580 Total future minimum lease payments $ 1,880 $ 2,302 Less: imputed interest (95) (141) Total lease liability $ 1,785 $ 2,161 Reported as: Current portion of operating lease liability $ 1,641 $ 1,592 Operating lease liability 144 569 Total lease liability $ 1,785 $ 2,161 Other Commitments From time to time, the Company enters 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, Clinical Studies, Clinical Trials and testing and manufacturing services. These contracts do not contain minimum purchase commitments and are cancelable upon prior written notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancelable obligations of service providers, up to the date of cancellation. Legal Proceedings |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONSThere were no material related-party transactions in the periods reported. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSThe Company has evaluated subsequent events for financial statement purposes occurring through the date these condensed consolidated financial statements were issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Furthermore, the accompanying condensed consolidated financial statements are unaudited and 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. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements as of and for the year ended December 31, 2022. The accompanying interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of March 31, 2023, the results of its operations for the three months ended March 31, 2023 and 2022, its cash flows for the three months ended March 31, 2023 and 2022, and its statements of stockholders’ equity for the three months ended March 31, 2023 and 2022. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, any other interim periods, or any future year or period. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2022, and the notes thereto, together with Management’s Discussion and Analysis of Financial |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. 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, liabilities, equity, expenses and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the Company’s ability to continue as a going concern. 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. The Company considers all highly liquid investments with a remaining maturity when purchased of three months or less to be cash equivalents. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company has no off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents. The Company’s cash equivalents as of March 31, 2023 consisted of bank deposits and money market funds that invest in U.S. treasury securities. The Company's investment policy includes guidelines on the quality of the institutions and financial instruments and defines the allowable investments that the Company believes minimizes the exposure to concentrations of credit risk. The Company has not experienced any credit losses and does not believe that it is subject to significant credit risk. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
Property and Equipment - Long-Lived Assets Impairment | Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets. Upon disposal, retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Expenditures for repairs and maintenance that do not improve or extend the lives of the respective assets are charged to expense as incurred. Long-Lived Assets Impairment Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use and eventual disposition of an asset group are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value, determined based on discounted cash flows. |
Leases | Leases The Company determines whether a contract is, or contains, a lease at inception and classifies leases as operating or financing considering factors such as the length of the lease term, the present value of the lease payments, the nature of the asset being leased, and the potential for ownership of the asset to transfer during the lease term. Leases with terms greater than one-year are recognized on the consolidated balance sheets as right-of-use assets and lease liabilities and are measured at the present value of the fixed payments due over the expected lease term less the present value of any incentives, rebates or abatements received from the lessor. Options to extend a lease are included in the expected lease term if exercise of the option is deemed reasonably certain. Costs determined to be variable and not based on an index or rate are not included in the measurement of the lease liability and are expensed as incurred. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis an amount equal to the lease payments in the same currency, for a similar term, and in a similar economic environment. The Company records expense to recognize fixed lease payments on a straight-line basis over the expected lease term. The Company has elected the practical expedient not to separate lease and non-lease components for real estate leases. |
Segment Information | Segment InformationOperating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the Chief Executive Officer, who is the chief operating decision maker, in making decisions on how to allocate resources and assess performance. The Company operates in one reportable business segment. |
Comprehensive Loss | Comprehensive LossComprehensive loss includes net loss as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. For the three months ended March 31, 2022, the Company’s only element of other comprehensive loss was unrealized gains (losses) on marketable securities. For the three months ended March 31, 2023, there were no elements of other comprehensive loss. |
Net Loss Per Share | Net Loss Per ShareBasic net loss per share attributable to common stockholders is calculated by dividing net loss by the weighted average shares outstanding during the period. Diluted net income (loss) per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. All common stock equivalents have been excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive for all periods presented. |
Newly Adopted Accounting Pronouncements and Accounting Pronouncements Issued and Not Adopted | Newly Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . The new standard adjusts the accounting for assets held at amortized cost basis, including marketable securities accounted for as available-for-sale. The standard eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. The adoption of this standard on January 1, 2023 did not have a material impact on its condensed consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | The following tables present the Company’s assets that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy (in thousands): Fair Value Measurements at March 31, 2023 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 12,290 $ — $ — $ 12,290 Total $ 12,290 $ — $ — $ 12,290 Fair Value Measurements at December 31, 2022 using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 14,649 $ — $ — $ 14,649 Total $ 14,649 $ — $ — $ 14,649 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): March 31, December 31, Laboratory equipment $ — $ 3,506 Leasehold improvements — 564 Office and computer equipment 86 303 Furniture and fixtures — 122 Property and equipment 86 4,495 Less: accumulated depreciation and amortization (61) (3,802) Property and equipment, net $ 25 $ 693 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): March 31, December 31, Accrued employee compensation and benefits $ 612 $ 808 Accrued external research and development expenses 913 4,791 Accrued professional fees 578 824 Accrued employee termination benefits — 1,221 Other — 205 Total accrued expenses and other current liabilities $ 2,103 $ 7,849 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stock-based Compensation Expense Recognized | In connection with all share-based payment awards, total stock-based compensation expense recognized was as follows (in thousands): Three Months Ended 2023 2022 Research and development $ 169 $ 566 General and administrative 370 943 Total stock-based compensation expense $ 539 $ 1,509 |
Schedule of Fair Value Assumptions for Stock Options | The Black-Scholes option pricing model assumptions are included in the table below. Three Months Ended 2023 2022 Risk-free interest rate 3.95 % 1.87 % Expected option life (in years) 6.11 6.13 Expected dividend yield — % — % Expected volatility 90.1 % 91.4 % |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock option activity for the three months ended March 31, 2023: Number of Shares Weighted Weighted Intrinsic Outstanding as of January 1, 2023 6,536,977 $ 5.05 Granted 611,500 0.68 Exercised — — Canceled (1,048,753) 5.11 Outstanding as of March 31, 2023 6,099,724 $ 4.60 6.64 $ — Exercisable as of March 31, 2023 4,081,667 $ 5.66 5.48 $ — Vested or expected to vest as of March 31, 2023 6,099,724 $ 4.60 6.64 $ — |
Schedule of Restricted Stock Unit Activity | The following table summarizes the Company's restricted stock unit activity for the three months ended March 31, 2023: Number of Shares Weighted Average Outstanding as of January 1, 2023 75,233 $ 5.04 Granted — — Vested (27,807) 4.41 Forfeited — — Outstanding as of March 31, 2023 47,426 $ 5.40 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 2022 Numerator: Net loss $ (3,976) $ (19,039) Denominator: Weighted average common shares outstanding, basic and diluted 73,669,096 41,426,107 Net loss per share, basic and diluted $ (0.05) $ (0.46) |
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: Three Months Ended 2023 2022 Options to purchase common stock 6,099,724 8,026,924 Unvested restricted stock units 47,426 216,331 Shares issuable under employee stock purchase plan — 37,820 6,147,150 8,281,075 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Costs | The following table contains a summary of the lease costs recognized under ASC 842 and other information pertaining to the Company’s operating leases for the three months ended March 31, 2023 and 2022 (in thousands, except weighted average figures): Three Months Ended Operating leases 2023 2022 Lease cost Operating lease cost $ 46 $ 401 Variable lease cost 196 193 Total lease cost $ 242 $ 594 Other information Operating cash flows used for operating leases $ 192 $ 603 Weighted average remaining lease term (years) 1.10 2.10 Weighted average discount rate (percentage) 9.0 % 9.0 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments and lease liabilities as of March 31, 2023 and December 31, 2022 were as follows (in thousands): As of Maturity of lease liabilities March 31, December 31, 2023 $ 1,300 $ 1,722 2024 580 580 Total future minimum lease payments $ 1,880 $ 2,302 Less: imputed interest (95) (141) Total lease liability $ 1,785 $ 2,161 Reported as: Current portion of operating lease liability $ 1,641 $ 1,592 Operating lease liability 144 569 Total lease liability $ 1,785 $ 2,161 |
NATURE OF BUSINESS (Details)
NATURE OF BUSINESS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Reduction in workforce, percentage | 85% | ||
Accumulated deficit | $ (418,427) | $ (422,403) | |
Cash and cash equivalents | $ 17,147 | 12,540 | |
Net loss | (3,976) | $ (19,039) | |
Net cash used in operations | $ (5,105) | $ (16,862) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | $ 12,290 | $ 14,649 |
Total | 12,290 | 14,649 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 12,290 | 14,649 |
Total | 12,290 | 14,649 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Money market funds | 0 | 0 |
Total | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT - Summar
PROPERTY AND EQUIPMENT - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 86 | $ 4,495 |
Less: accumulated depreciation and amortization | (61) | (3,802) |
Property and equipment, net | 25 | 693 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 0 | 3,506 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 0 | 564 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 86 | 303 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 0 | $ 122 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 11 | $ 77 |
Property and equipment disposed of | 500 | |
Gain on the sale of property and equipment | $ 68 | $ 0 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 612 | $ 808 |
Accrued external research and development expenses | 913 | 4,791 |
Accrued professional fees | 578 | 824 |
Accrued employee termination benefits | 0 | 1,221 |
Other | 0 | 205 |
Total accrued expenses and other current liabilities | 2,103 | $ 7,849 |
Payments for employee termination | $ 1,200 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 29, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | |
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% | ||
Weighted-average grand date fair value of options granted in the period (USD per share) | $ 0.52 | $ 1.03 | |
Unrecognized compensation expense related to unvested stock options | $ 3.1 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance (in shares) | 935,186 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, recognition period | 2 years | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, recognition period | 1 year | ||
Unrecognized compensation expense related to unvested stock RSUs | $ 0.1 | ||
Stock Option And Incentive Plan 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum award term | 10 years | ||
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% | ||
Common stock reserved for future issuance (in shares) | 5,700,933 | ||
Stock Option And Incentive Plan 2019 | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Stock Option And Incentive Plan 2019 | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 539 | $ 1,509 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 169 | 566 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 370 | $ 943 |
STOCKHOLDERS' EQUITY - Stock Op
STOCKHOLDERS' EQUITY - Stock Option Valuation Fair Value Measurement Inputs (Details) - Stock options | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 3.95% | 1.87% |
Expected option life (in years) | 6 years 1 month 9 days | 6 years 1 month 17 days |
Expected dividend yield | 0% | 0% |
Expected volatility | 90.10% | 91.40% |
STOCKHOLDERS' EQUITY - Summar_2
STOCKHOLDERS' EQUITY - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 6,536,977 |
Granted (in shares) | shares | 611,500 |
Exercised (in shares) | shares | 0 |
Canceled (in shares) | shares | (1,048,753) |
Outstanding at end of period (in shares) | shares | 6,099,724 |
Shares exercisable (in shares) | shares | 4,081,667 |
Shares vested or expected to vest (in shares) | shares | 6,099,724 |
Weighted Average Exercise Price | |
Weighted average exercise price of shares outstanding at beginning of period (USD per share) | $ / shares | $ 5.05 |
Weighted-average exercise price of shares granted (USD per share) | $ / shares | 0.68 |
Weighted-average exercise price of shares exercised (USD per share) | $ / shares | 0 |
Weighted-average exercise price of shares canceled (USD per share) | $ / shares | 5.11 |
Weighted average exercise price of shares outstanding at end of period (USD per share) | $ / shares | 4.60 |
Weighted-average exercise price of shares exercisable (USD per share) | $ / shares | 5.66 |
Weighted-average exercise price of shares vested or expected to vest (USD per share) | $ / shares | $ 4.60 |
Weighted Average Remaining Life (in Years) | |
Weighted average remaining life of shares outstanding (in years) | 6 years 7 months 20 days |
Weighted average remaining life of shares exercisable (in years) | 5 years 5 months 23 days |
Weighted average remaining life of shares vested or expected to vest (in years) | 6 years 7 months 20 days |
Intrinsic value of shares outstanding | $ | $ 0 |
Intrinsic value of shares exercisable | $ | 0 |
Intrinsic value of shares vested or expected to vest | $ | $ 0 |
STOCKHOLDERS' EQUITY - Summar_3
STOCKHOLDERS' EQUITY - Summary of Restricted Stock Units (Details) - RSUs | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 75,233 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (27,807) |
Forfeited (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 47,426 |
Weighted Average Grant Date Fair Value per Share | |
Weighted average exercise price of RSUs outstanding at beginning of period (USD per share) | $ / shares | $ 5.04 |
Weighted-average exercise price of RSUs granted (USD per share) | $ / shares | 0 |
Weighted-average exercise price of RSUs vested (USD per share) | $ / shares | 4.41 |
Weighted-average exercise price of RSUs forfeited (USD per share) | $ / shares | 0 |
Weighted average exercise price of RSUs outstanding at end of period (USD per share) | $ / shares | $ 5.40 |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net loss | $ (3,976) | $ (19,039) |
Denominator: | ||
Weighted average common shares outstanding, basic (in shares) | 73,669,096 | 41,426,107 |
Weighted average common shares outstanding, diluted (in shares) | 73,669,096 | 41,426,107 |
Net loss per share, basic (USD per share) | $ (0.05) | $ (0.46) |
Net loss per share, diluted (USD per share) | $ (0.05) | $ (0.46) |
NET LOSS PER SHARE - Schedule_2
NET LOSS PER SHARE - Schedule of Anti-dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 6,147,150 | 8,281,075 |
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) | 6,099,724 | 8,026,924 |
Unvested restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 47,426 | 216,331 |
Shares issuable under employee stock purchase plan | ||
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 | 37,820 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) ft² | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Other Commitments [Line Items] | |||
Leased facility area (in square feet) | ft² | 19,200 | ||
Lease extension term | 3 years | ||
Operating Lease, Impairment Loss | $ 2,100 | ||
Lease cost | 242 | $ 594 | |
Operating cash flows used for operating leases | $ 192 | $ 603 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-02 | |||
Other Commitments [Line Items] | |||
Operating lease right-of-use asset | $ 2,100 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 46 | $ 401 |
Variable lease cost | 196 | 193 |
Total lease cost | 242 | 594 |
Operating cash flows used for operating leases | $ 192 | $ 603 |
Weighted average remaining lease term (years) | 1 year 1 month 6 days | 2 years 1 month 6 days |
Weighted average discount rate (percentage) | 9% | 9% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 1,300 | |
2024 | 580 | $ 1,722 |
2024 | 580 | |
Total future minimum lease payments | 1,880 | 2,302 |
Less: imputed interest | (95) | (141) |
Total lease liability | 1,785 | 2,161 |
Current portion of operating lease liability | 1,641 | 1,592 |
Operating lease liability | $ 144 | $ 569 |