Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AGLE | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | AEGLEA BIOTHERAPEUTICS, INC. | |
Entity Central Index Key | 0001636282 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity File Number | 001-37722 | |
Entity Tax Identification Number | 46-4312787 | |
Entity Address, Address Line One | 805 Las Cimas Parkway | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Austin | |
Title of 12(b) Security | Common Stock, $0.0001 Par Value Per Share | |
Entity Address, Postal Zip Code | 78746 | |
City Area Code | 512 | |
Local Phone Number | 942-2935 | |
Entity Address, State or Province | TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Ex Transition Period | true | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Common Stock, Shares Outstanding | 44,593,764 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 12,594 | $ 19,253 |
Marketable securities | 36,398 | 52,696 |
Prepaid expenses and other current assets | 5,273 | 2,556 |
Total current assets | 54,265 | 74,505 |
Restricted cash | 1,500 | 1,500 |
Property and equipment, net | 4,244 | 2,385 |
Operating lease right-of-use assets | 4,712 | 4,726 |
Other non-current assets | 60 | 67 |
TOTAL ASSETS | 64,781 | 83,183 |
CURRENT LIABILITIES | ||
Accounts payable | 3,618 | 3,154 |
Operating lease liabilities | 293 | 351 |
Accrued and other current liabilities | 13,227 | 14,854 |
Total current liabilities | 17,138 | 18,359 |
Non-current operating lease liabilities | 4,815 | 4,712 |
Other non-current liabilities | 23 | 31 |
TOTAL LIABILITIES | 21,976 | 23,102 |
Commitments and Contingencies (Note 8) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of March 31, 2020 and December 31, 2019; no shares issued and outstanding as of March 31, 2020 and December 31, 2019 | ||
Common stock, $0.0001 par value; 500,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 29,147,461 shares and 29,084,437 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 3 | 3 |
Additional paid-in capital | 256,779 | 255,142 |
Accumulated other comprehensive (loss) income | (134) | 51 |
Accumulated deficit | (213,843) | (195,115) |
TOTAL STOCKHOLDERS’ EQUITY | 42,805 | 60,081 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 64,781 | $ 83,183 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 29,147,461 | 29,084,437 |
Common stock, shares outstanding | 29,147,461 | 29,084,437 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Type of revenue [extensible list] | us-gaap:GrantMember | us-gaap:GrantMember |
Operating expenses: | ||
Research and development | $ 14,562 | $ 14,389 |
General and administrative | 4,460 | 3,268 |
Total operating expenses | 19,022 | 17,657 |
Loss from operations | (19,022) | (17,657) |
Other income (expense): | ||
Interest income | 300 | 507 |
Other expense, net | (6) | (17) |
Total other income | 294 | 490 |
Net loss | $ (18,728) | $ (17,167) |
Net loss per share, basic and diluted | $ (0.57) | $ (0.59) |
Weighted-average common shares outstanding, basic and diluted | 33,097,736 | 29,011,737 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (18,728) | $ (17,167) |
Other comprehensive (loss) income: | ||
Unrealized (loss) gain on marketable securities | (185) | 40 |
Total comprehensive loss | $ (18,913) | $ (17,127) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Balances at Dec. 31, 2018 | $ 67,428 | $ 2 | $ 184,314 | $ (27) | $ (116,861) |
Balances (in shares) at Dec. 31, 2018 | 24,140 | ||||
Issuance of common stock in connection with employee stock purchase plan | 143 | 143 | |||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 20 | ||||
Issuance of common stock in connection with exercise of stock options | 261 | 261 | |||
Issuance of common stock in connection with exercise of stock options (in shares) | 52 | ||||
Issuance of common stock and pre-funded warrants in connection with public offering, net of offering costs | 64,503 | $ 1 | 64,502 | ||
Issuance of common stock and pre-funded warrants in connection with public offering, net of offering costs (in shares) | 4,625 | ||||
Stock-based compensation expense | 1,081 | 1,081 | |||
Unrealized (loss) gain on marketable securities | 40 | 40 | |||
Net loss | (17,167) | (17,167) | |||
Balances at Mar. 31, 2019 | 116,289 | $ 3 | 250,301 | 13 | (134,028) |
Balances (in shares) at Mar. 31, 2019 | 28,837 | ||||
Balances at Dec. 31, 2019 | 60,081 | $ 3 | 255,142 | 51 | (195,115) |
Balances (in shares) at Dec. 31, 2019 | 29,084 | ||||
Issuance of common stock in connection with employee stock purchase plan | 174 | 174 | |||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 26 | ||||
Issuance of common stock in connection with exercise of stock options | 115 | 115 | |||
Issuance of common stock in connection with exercise of stock options (in shares) | 37 | ||||
Stock-based compensation expense | 1,348 | 1,348 | |||
Unrealized (loss) gain on marketable securities | (185) | (185) | |||
Net loss | (18,728) | (18,728) | |||
Balances at Mar. 31, 2020 | $ 42,805 | $ 3 | $ 256,779 | $ (134) | $ (213,843) |
Balances (in shares) at Mar. 31, 2020 | 29,147 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (18,728) | $ (17,167) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 154 | 100 |
Purchase net discount on marketable securities | 19 | 243 |
Net accretion of discount on marketable securities | (48) | (275) |
Stock-based compensation | 1,348 | 1,081 |
Non-cash operating lease expense | 152 | 69 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (2,696) | (928) |
Accounts payable | 262 | 2,289 |
Operating lease liabilities | (92) | (114) |
Accrued and other liabilities | (2,065) | (1,105) |
Net cash used in operating activities | (21,694) | (15,807) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,389) | (118) |
Purchases of marketable securities | (4,000) | (19,750) |
Proceeds from maturities of marketable securities | 20,142 | 33,804 |
Net cash provided by investing activities | 14,753 | 13,936 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock and pre-funded warrants in public offering, net of offering costs | 64,662 | |
Proceeds from employee stock plan purchases and stock option exercises | 289 | 399 |
Principal payments on finance lease obligation | (7) | (6) |
Net cash provided by financing activities | 282 | 65,055 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (6,659) | 63,184 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ||
Beginning of period | 20,753 | 22,461 |
End of period | 14,094 | 85,645 |
Supplemental Disclosure of Non-Cash Investing and Financing Information: | ||
Leased assets obtained in exchange for lease obligations | 137 | $ 776 |
Unpaid amounts related to purchase of property and equipment | $ 1,057 |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company and Basis of Presentation | 1. The Company and Basis of Presentation Aeglea BioTherapeutics, Inc. (“Aeglea” or the “Company”) is a clinical-stage biotechnology company developing a new generation of human enzyme therapeutics as innovative solutions for rare and other high-burden diseases. The Company was formed as a Limited Liability Company (LLC) in Delaware on December 16, 2013 under the name Aeglea BioTherapeutics Holdings, LLC and was converted from a Delaware LLC to a Delaware corporation on March 10, 2015. The Company operates in one segment and has its principal offices in Austin, Texas. Liquidity As of March 31, 2020, the Company had working capital of $37.1 million, an accumulated deficit of $213.8 million, and cash, cash equivalents, marketable securities, and restricted cash of $50.5 million. The Company has not generated any product revenues and has not achieved profitable operations. There is no assurance that profitable operations will ever be achieved, and, if achieved, could be sustained on a continuing basis. In addition, development activities, clinical and nonclinical testing, and commercialization of the Company’s products will require significant additional financing. The Company is subject to a number of risks similar to other life science companies, including, but not limited to, risks related to the successful discovery, development, and commercialization of product candidates, raising additional capital, development of competing drugs and therapies, protection of proprietary technology and market acceptance of the Company’s products. As a result of these and other factors and the related uncertainties, there can be no assurance of the Company’s future success. Based upon the Company’s current operating plans, the Company believes that it has sufficient resources to fund operations through 2022 with its existing cash, cash equivalents, and marketable securities, together with the net proceeds received from a public offering in April 2020 (see Note 9). The Company will need to secure additional funding in the future, in order to carry out all of its planned research and development activities. If the Company is unable to obtain additional financing or generate license or product revenue, the lack of liquidity could have a material adverse effect on the Company’s future prospects. Unaudited Interim Financial Information The interim condensed consolidated financial statements included in this document are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for a fair statement of the Company’s financial position as of March 31, 2020, and its results of operations for the three months ended March 31, 2020 and 2019, changes in stockholders’ equity for the three months ended March 31, 2020 and 2019, and cash flows for the three months ended March 31, 2020 and 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim period. The December 31, 2019 balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). These financial statements should be read in conjunction with the audited financial statements included in the Company’s Form 10-K for the year ended December 31, 2019 as filed with the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include those related to accruals of research and development related costs, stock-based compensation, and certain company income tax related items. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash equivalents consist of money market funds and debt securities and are stated at fair value. Marketable Securities All investments have been classified as available-for-sale and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments in debt securities at the time of purchase. The Company may or may not hold securities with stated maturities greater than one year until maturity. All available-for-sale securities are considered available to support current operations and are classified as current assets. The Company presents credit losses as an allowance rather than as a reduction in the amortized cost of the available-for-sale securities. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value and recognized in other income (expense) in the results of operations. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, an allowance is recorded for the difference between the present value of cash flows expected to be collected and the amortized cost basis of the security. Impairment l Any unrealized losses from declines in fair value below the amortized cost basis as a result of non-credit loss factors is recognized as a component of accumulated other comprehensive (loss) income, along with unrealized gains. Realized gains and losses and declines in fair value, if any, on available-for-sale securities are included in other income (expense) in the results of operations. The cost of securities sold is based on the specific-identification method. Restricted Cash Restricted cash consists of a money market account held by a financial institution as collateral for the Company’s obligations under its facility lease for the Company’s corporate headquarters in Austin, TX. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, marketable securities, and restricted cash. The Company’s investment policy limits investments to high credit quality securities issued by the U.S. government, U.S. government-sponsored agencies, highly rated banks, and corporate issuers, subject to certain concentration limits and restrictions on maturities. The Company’s cash, cash equivalents, marketable securities, and restricted cash are held by financial institutions in the United States that management believes are of high credit quality. Amounts on deposit may at times exceed federally insured limits. The Company has not experienced any losses on its deposits of cash, cash equivalents, and restricted cash and its accounts are monitored by management to mitigate risk. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents, restricted cash, and bond issuers. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Repairs and maintenance that do not extend the life or improve an asset are expensed as incurred. Upon retirement or sale, the cost of disposed assets and their related accumulated depreciation and amortization are removed from the balance sheet. Any gain or loss is credited or charged to operations. The useful lives of the property and equipment are as follows: Laboratory equipment 5 years Furniture and office equipment 5 years Computer equipment 3 years Software 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life Impairment of Long-Lived Assets Long-lived assets are reviewed for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amounts to the future undiscounted cash flows attributable to these assets. An impairment loss is recognized to the extent an asset group is not recoverable, and the carrying amount exceeds the projected discounted future cash flows arising from these assets. There were no impairments of long-lived assets for the three months ended March 31, 2020 and 2019. Accrued Research and Development Costs The Company records the costs associated with research nonclinical studies, clinical trials, and manufacturing development as incurred. These costs are a significant component of the Company’s research and development expenses, with a substantial portion of the Company’s on-going research and development activities conducted by third-party service providers, including contract research and manufacturing organizations. The Company accrues for expenses resulting from obligations under agreements with contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”), and other outside service providers for which payment flows do not match the periods over which materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CROs, CMOs, and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes significant judgments and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CRO, CMO, or outside service provider, the payments will be recorded as a prepaid asset which will be amortized as the contracted services are performed. As actual costs become known, the Company adjusts its accruals. Inputs, such as the services performed, the number of patients enrolled, or the study duration, may vary from the Company’s estimates, resulting in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. Historically, the Company has not experienced any material deviations between accrued and actual research and development expenses. Leases The Company determines if an arrangement is a lease at inception. Right-of-use ("ROU") assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The classification of the Company's leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The ROU asset is based on the measurement of the lease liability and also includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs incurred, as applicable. The lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise any such options. Rent expense for the Company's operating leases is recognized on a straight-line basis over the lease term. Amortization expense for the ROU asset associated with its finance leases is recognized on a straight-line basis over the term of the lease and interest expense associated with its finance leases is recognized on the balance of the lease liability using the effective interest method based on the estimated incremental borrowing rate. The Company has lease agreements with lease and non-lease components. As allowed under Topic 842, the Company has elected to not separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has also elected to not apply the recognition requirement of Topic 842 to leases with a term of 12 months or less for all classes of assets. Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain financial and non-financial assets and liabilities and to determine fair value disclosures. The accounting standards define fair value, establish a framework for measuring fair value, and require disclosures about fair value measurements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the principal or most advantageous market in which the Company would transact are considered along with assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The accounting standard for fair value establishes a fair value hierarchy based on three levels of inputs, the first two of which are considered observable and the last unobservable, that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology and including data about assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Financial instruments carried at fair value include cash, cash equivalents, marketable securities, and restricted cash. The carrying amount of accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs include, but are not limited to, salaries, benefits, travel, stock-based compensation, consulting costs, contract research service costs, laboratory supplies and facilities, contract manufacturing costs, and costs paid to other third parties that conduct research and development activities on the Company’s behalf. Amounts incurred in connection with license agreements are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are recorded as a prepaid asset and expensed as the related goods are delivered or the services are performed. Stock-Based Compensation The Company recognizes the cost of stock-based awards granted to employees and non-employees based on the estimated grant-date fair values of the awards. The value of the award is recognized as compensation expense on a straight-line basis over the requisite service period. Forfeitures are recognized when they occur, which may result in the reversal of compensation costs in subsequent periods as the forfeitures arise. Compensation expense for employee and non-employee share-based payment awards with performance conditions is recognized when the performance condition is deemed probable. Income Taxes The Company and its eight wholly-owned subsidiary corporations use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statements and the tax bases of assets and liabilities. Additionally, any changes in income tax laws are immediately recognized in the quarter of enactment. A valuation allowance is established against the deferred tax assets to reduce their carrying value to an amount that is more likely than not to be realized. The deferred tax assets and liabilities are classified as noncurrent along with the related valuation allowance. Due to a lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance. The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on the technical merits, as the largest amount of benefits that is more likely than not to be realized upon the ultimate settlement. The Company’s policy is to recognize interest and penalties related to the unrecognized tax benefits as a component of income tax expense, if applicable. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law in response to COVID-19. The CARES Act includes changes to the tax provisions that benefit business entities and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses include a five-year Comprehensive Loss Comprehensive loss is the change in stockholders’ equity from transactions and other events and circumstances other than those resulting from investments by stockholders and distributions to stockholders. The Company’s other comprehensive (loss) income is currently comprised of changes in unrealized losses and gains on available-for-sale securities. Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. These reclassifications did not have an impact on the Company’s results of operations or financial position as of March 31, 2020 and December 31, 2019. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. For available-for-sale debt securities with unrealized credit losses, the credit losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. On January 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach and no cumulative effect adjustment to accumulated deficit was needed as of the adoption date. Additionally, no prior period amounts were adjusted and continue to be reported in accordance with the legacy other-than-temporary impairment model. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40), to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in the update require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Capitalized implementation costs are recorded in prepaid expenses and other current assets or other non-current assets on the statement of financial position and the related amortization expense is recorded in operating expenses in the results of operations. On January 1, 2020, the Company adopted ASU 2018-15 on a prospective basis and no prior period amounts were adjusted. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables sets forth the fair value of the Company’s financial assets and liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 9,026 $ — $ — $ 9,026 Commercial paper — 10,225 — 10,225 Corporate bonds — 28,668 — 28,668 Total financial assets $ 9,026 $ 38,893 $ — $ 47,919 December 31, 2019 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 7,023 $ — $ — $ 7,023 Reverse repurchase agreements — 6,250 — 6,250 Commercial paper — 15,193 — 15,193 Corporate bonds — 39,750 — 39,750 Total financial assets $ 7,023 $ 61,193 $ — $ 68,216 The Company measures the fair value of money market funds on quoted prices in active markets for identical asset or liabilities. The Level 2 assets include reverse repurchase agreements, commercial paper, and corporate bonds and are valued based on quoted prices for similar assets in active markets and inputs other than quoted prices that are derived from observable market data. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Level 1 and Level 2 during the periods presented. |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Cash Equivalents and Marketable Securities | 4. Cash Equivalents and Marketable Securities The following tables summarize the estimated fair value of the Company’s cash equivalents and marketable securities and the gross unrealized gains and losses (in thousands): March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash equivalents Money market funds $ 9,026 $ — $ — $ 9,026 Commercial paper 2,495 — — 2,495 Total cash equivalents 11,521 — — 11,521 Marketable securities Commercial paper 7,725 5 — 7,730 Corporate bonds 28,807 8 (147 ) 28,668 Total marketable securities $ 36,532 $ 13 $ (147 ) $ 36,398 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash equivalents Money market funds $ 7,023 $ — $ — $ 7,023 Reverse repurchase agreements 6,250 — — 6,250 Commercial paper 2,247 — — 2,247 Total cash equivalents 15,520 — — 15,520 Marketable securities Commercial paper 12,931 15 — 12,946 Corporate bonds 39,714 45 (9 ) 39,750 Total marketable securities $ 52,645 $ 60 $ (9 ) $ 52,696 The reverse repurchase agreements are settled in cash nightly, and as such are classified as cash equivalents. The following table summarizes available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position: March 31, 2020 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ — $ — $ — $ — $ — $ — Corporate bonds 22,810 (147 ) — — 22,810 (147 ) Total marketable securities $ 22,810 $ (147 ) $ — $ — $ 22,810 $ (147 ) December 31, 2019 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ — $ — $ — $ — $ — $ — Corporate bonds 13,022 (9 ) — — 13,022 (9 ) Total marketable securities $ 13,022 $ (9 ) $ — $ — $ 13,022 $ (9 ) As of March 31, 2020 and December 31, 2019, the Company held 25 and 13 debt securities, respectively, that were in an unrealized loss position. The Company evaluated its securities for credit losses and considered the decline in market value to be primarily attributable to current economic and market conditions and not attributable to a credit loss or other factors. Additionally, the Company does not intend to sell the securities in an unrealized loss position and does not expect they will be required to sell the securities before recovery of the unamortized cost basis. As of March 31, 2020 and December 31, 2019 , an allowance for credit losses had no t been recognized and no marketable securities were considered impaired. There were no realized gains or losses on marketable securities for the three months ended March 31, 2020 and 2019 . Interest on marketable securities is included in interest The following table summarizes the contractual maturities of the Company’s marketable securities at estimated fair value (in thousands): March 31, December 31, 2020 2019 Due in one year or less $ 36,398 $ 49,687 Due in 1 - 2 years — 3,009 Total marketable securities $ 36,398 $ 52,696 The Company may sell investments at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies marketable securities, including securities with maturities beyond twelve months as current assets |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Accrued and Other Current Liabilities | 5. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Accrued compensation $ 625 $ 3,273 Accrued contracted research and development costs 11,311 10,485 Accrued professional and consulting fees 577 627 Other 714 469 Total accrued and other current liabilities $ 13,227 $ 14,854 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity Stock-Based Compensation The 2016 Equity Incentive Plan (“2016 Plan”) provides for an automatic increase in the number of shares reserved for issuance thereunder on January 1 of each year for the remaining term of the plan (through 2028) equal to (a) 4.0% of the number of issued and outstanding shares of common stock on December 31 of the immediately preceding year, or (b) a lesser amount as approved by the Company’s board of directors each year. As a result of this provision, on January 1, 2020 and January 1, 2019, an additional 1,163,377 and 965,603 shares, respectively, became available for issuance under the 2016 Plan. As of March 31, 2020, the 2016 Plan had 1,511,409 shares available for future issuance. During the three months ended March 31, 2020 and 2019, the Company issued an aggregate of 1,205,000 and 1,042,300 options to purchase common stock, respectively, under the Company’s equity incentive plans for an aggregate fair value of $6.4 million and $6.2 million, respectively. Under the Company’s 2016 Employee Stock Purchase Plan (“2016 ESPP”), the Company issued and sold 25,928 shares for aggregate cash proceeds of $0.2 million during the three months ended March 31, 2020 and 20,132 shares for aggregate cash proceeds of $0.1 million during the three months ended March 31, 2019. Total stock-based compensation expense related to the Company’s equity incentive plans and 2016 ESPP was as follows (in thousands): Three Months Ended March 31, 2020 2019 Research and development $ 532 $ 402 General and administrative 816 679 Total stock-based compensation expense $ 1,348 $ 1,081 The following table summarizes the weighted-average Black-Scholes option pricing model assumptions used to estimate the fair value of stock options granted under the Company’s equity incentive plans, and the shares purchasable under the 2016 ESPP during the periods presented: Three Months Ended March 31, 2020 2019 Equity Incentive Plans Expected term (in years) 6.02 6.03 Expected volatility 74 % 82 % Risk-free interest 1.45 % 2.57 % Dividend yield 0 % 0 % 2016 ESPP Expected term (in years) 0.50 0.49 Expected volatility 53 % 66 % Risk-free interest 1.49 % 2.55 % Dividend yield 0 % 0 % |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 7. Net Loss Per Share Basic and diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock and pre-funded warrants outstanding during the period. The pre-funded warrants are included in the computation of basic net loss per share as the exercise price is negligible and they are fully vested and exercisable. For periods in which the Company generated a net loss, the Company does not include the potential impact of dilutive securities in diluted net loss per share, as the impact of these items is anti-dilutive. The following weighted-average equity instruments were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2020 2019 Options to purchase common stock 4,470,941 3,478,688 |
License Agreements
License Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Licensing Agreements [Abstract] | |
License Agreements | 8. License Agreements In December 2013, two of the Company’s wholly owned subsidiaries, AECase, Inc. (“AECase”) and AEMase, Inc. (“AEMase”), entered into license agreements with the University of Texas at Austin (the “University”) under which the University granted to AECase and AEMase exclusive, worldwide, sublicenseable licenses. The University granted the AECase license under a patent application relating to the right to use technology related to the Company’s AEB3103 product candidate. The University granted the AEMase license under a patent relating to the right to use technology related to the Company’s AEB2109 product candidate. In January 2017, the Company entered into an Amended and Restated Patent License Agreement (the “Restated License”) with the University which consolidated the two license agreements, revised certain obligations, and licensed additional patent applications and invention disclosures to the Company. Pursuant to the terms of the Restated License, the Company may be required to pay the University up to $6.4 million in milestone payments based on the achievement of certain development milestones, including clinical trials and regulatory approvals, the majority of which are due upon the achievement of later development milestones, including a $ 5.0 million payment due on regulatory approval of a product and a $ 0.5 million payment payable on final regulatory approval of a product for a second indication. In addition, the Company is required to pay the University a low single-digit royalty on worldwide-net sales of products covered under the Restated License, together with a revenue share on non-royalty consideration received from sublicensees. The rate of the revenue share ranges from 6.5 % to 25 % depending on the date the sublicense agreement is signed. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events In April 2020, the Company issued and sold 15,442,303 shares of common stock at a public offering price of $4.75 per share and prefunded warrants to purchase 13,610,328 shares of common stock at a public offering price of $4.7499 per warrant in an underwritten public offering pursuant to a shelf registration statement on Form S-3. This includes the full exercise by the underwriters of their option to purchase up to 3,789,473 additional shares of common stock. The net proceeds to the Company from this public offering were approximately $129.6 million, after deducting underwriting discounts and commissions of $8.2 million and estimated offering costs of $0.2 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include those related to accruals of research and development related costs, stock-based compensation, and certain company income tax related items. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash equivalents consist of money market funds and debt securities and are stated at fair value. |
Marketable Securities | Marketable Securities All investments have been classified as available-for-sale and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments in debt securities at the time of purchase. The Company may or may not hold securities with stated maturities greater than one year until maturity. All available-for-sale securities are considered available to support current operations and are classified as current assets. The Company presents credit losses as an allowance rather than as a reduction in the amortized cost of the available-for-sale securities. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value and recognized in other income (expense) in the results of operations. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, an allowance is recorded for the difference between the present value of cash flows expected to be collected and the amortized cost basis of the security. Impairment l Any unrealized losses from declines in fair value below the amortized cost basis as a result of non-credit loss factors is recognized as a component of accumulated other comprehensive (loss) income, along with unrealized gains. Realized gains and losses and declines in fair value, if any, on available-for-sale securities are included in other income (expense) in the results of operations. The cost of securities sold is based on the specific-identification method. |
Restricted Cash | Restricted Cash Restricted cash consists of a money market account held by a financial institution as collateral for the Company’s obligations under its facility lease for the Company’s corporate headquarters in Austin, TX. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, marketable securities, and restricted cash. The Company’s investment policy limits investments to high credit quality securities issued by the U.S. government, U.S. government-sponsored agencies, highly rated banks, and corporate issuers, subject to certain concentration limits and restrictions on maturities. The Company’s cash, cash equivalents, marketable securities, and restricted cash are held by financial institutions in the United States that management believes are of high credit quality. Amounts on deposit may at times exceed federally insured limits. The Company has not experienced any losses on its deposits of cash, cash equivalents, and restricted cash and its accounts are monitored by management to mitigate risk. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash, cash equivalents, restricted cash, and bond issuers. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. Repairs and maintenance that do not extend the life or improve an asset are expensed as incurred. Upon retirement or sale, the cost of disposed assets and their related accumulated depreciation and amortization are removed from the balance sheet. Any gain or loss is credited or charged to operations. The useful lives of the property and equipment are as follows: Laboratory equipment 5 years Furniture and office equipment 5 years Computer equipment 3 years Software 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amounts to the future undiscounted cash flows attributable to these assets. An impairment loss is recognized to the extent an asset group is not recoverable, and the carrying amount exceeds the projected discounted future cash flows arising from these assets. There were no impairments of long-lived assets for the three months ended March 31, 2020 and 2019. |
Accrued Research And Development Costs | Accrued Research and Development Costs The Company records the costs associated with research nonclinical studies, clinical trials, and manufacturing development as incurred. These costs are a significant component of the Company’s research and development expenses, with a substantial portion of the Company’s on-going research and development activities conducted by third-party service providers, including contract research and manufacturing organizations. The Company accrues for expenses resulting from obligations under agreements with contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”), and other outside service providers for which payment flows do not match the periods over which materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CROs, CMOs, and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes significant judgments and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CRO, CMO, or outside service provider, the payments will be recorded as a prepaid asset which will be amortized as the contracted services are performed. As actual costs become known, the Company adjusts its accruals. Inputs, such as the services performed, the number of patients enrolled, or the study duration, may vary from the Company’s estimates, resulting in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. Historically, the Company has not experienced any material deviations between accrued and actual research and development expenses. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Right-of-use ("ROU") assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The classification of the Company's leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future lease payments. The ROU asset is based on the measurement of the lease liability and also includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs incurred, as applicable. The lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise any such options. Rent expense for the Company's operating leases is recognized on a straight-line basis over the lease term. Amortization expense for the ROU asset associated with its finance leases is recognized on a straight-line basis over the term of the lease and interest expense associated with its finance leases is recognized on the balance of the lease liability using the effective interest method based on the estimated incremental borrowing rate. The Company has lease agreements with lease and non-lease components. As allowed under Topic 842, the Company has elected to not separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has also elected to not apply the recognition requirement of Topic 842 to leases with a term of 12 months or less for all classes of assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company uses fair value measurements to record fair value adjustments to certain financial and non-financial assets and liabilities and to determine fair value disclosures. The accounting standards define fair value, establish a framework for measuring fair value, and require disclosures about fair value measurements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the principal or most advantageous market in which the Company would transact are considered along with assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The accounting standard for fair value establishes a fair value hierarchy based on three levels of inputs, the first two of which are considered observable and the last unobservable, that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology and including data about assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. Financial instruments carried at fair value include cash, cash equivalents, marketable securities, and restricted cash. The carrying amount of accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development costs include, but are not limited to, salaries, benefits, travel, stock-based compensation, consulting costs, contract research service costs, laboratory supplies and facilities, contract manufacturing costs, and costs paid to other third parties that conduct research and development activities on the Company’s behalf. Amounts incurred in connection with license agreements are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are recorded as a prepaid asset and expensed as the related goods are delivered or the services are performed. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the cost of stock-based awards granted to employees and non-employees based on the estimated grant-date fair values of the awards. The value of the award is recognized as compensation expense on a straight-line basis over the requisite service period. Forfeitures are recognized when they occur, which may result in the reversal of compensation costs in subsequent periods as the forfeitures arise. Compensation expense for employee and non-employee share-based payment awards with performance conditions is recognized when the performance condition is deemed probable. |
Income Taxes | Income Taxes The Company and its eight wholly-owned subsidiary corporations use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statements and the tax bases of assets and liabilities. Additionally, any changes in income tax laws are immediately recognized in the quarter of enactment. A valuation allowance is established against the deferred tax assets to reduce their carrying value to an amount that is more likely than not to be realized. The deferred tax assets and liabilities are classified as noncurrent along with the related valuation allowance. Due to a lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance. The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on the technical merits, as the largest amount of benefits that is more likely than not to be realized upon the ultimate settlement. The Company’s policy is to recognize interest and penalties related to the unrecognized tax benefits as a component of income tax expense, if applicable. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law in response to COVID-19. The CARES Act includes changes to the tax provisions that benefit business entities and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. The tax relief measures for businesses include a five-year |
Comprehensive Income | Comprehensive Loss Comprehensive loss is the change in stockholders’ equity from transactions and other events and circumstances other than those resulting from investments by stockholders and distributions to stockholders. The Company’s other comprehensive (loss) income is currently comprised of changes in unrealized losses and gains on available-for-sale securities. |
Reclassification | Reclassification Certain reclassifications have been made to prior period amounts to conform to current period presentation. These reclassifications did not have an impact on the Company’s results of operations or financial position as of March 31, 2020 and December 31, 2019. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. For available-for-sale debt securities with unrealized credit losses, the credit losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. On January 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach and no cumulative effect adjustment to accumulated deficit was needed as of the adoption date. Additionally, no prior period amounts were adjusted and continue to be reported in accordance with the legacy other-than-temporary impairment model. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40), to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in the update require an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Capitalized implementation costs are recorded in prepaid expenses and other current assets or other non-current assets on the statement of financial position and the related amortization expense is recorded in operating expenses in the results of operations. On January 1, 2020, the Company adopted ASU 2018-15 on a prospective basis and no prior period amounts were adjusted. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule Of Estimated Useful Lives Of Property Plant And Equipment | The useful lives of the property and equipment are as follows: Laboratory equipment 5 years Furniture and office equipment 5 years Computer equipment 3 years Software 3 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables sets forth the fair value of the Company’s financial assets and liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 9,026 $ — $ — $ 9,026 Commercial paper — 10,225 — 10,225 Corporate bonds — 28,668 — 28,668 Total financial assets $ 9,026 $ 38,893 $ — $ 47,919 December 31, 2019 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 7,023 $ — $ — $ 7,023 Reverse repurchase agreements — 6,250 — 6,250 Commercial paper — 15,193 — 15,193 Corporate bonds — 39,750 — 39,750 Total financial assets $ 7,023 $ 61,193 $ — $ 68,216 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Estimated Fair Value of Cash Equivalents and Marketable Securities | The following tables summarize the estimated fair value of the Company’s cash equivalents and marketable securities and the gross unrealized gains and losses (in thousands): March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash equivalents Money market funds $ 9,026 $ — $ — $ 9,026 Commercial paper 2,495 — — 2,495 Total cash equivalents 11,521 — — 11,521 Marketable securities Commercial paper 7,725 5 — 7,730 Corporate bonds 28,807 8 (147 ) 28,668 Total marketable securities $ 36,532 $ 13 $ (147 ) $ 36,398 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash equivalents Money market funds $ 7,023 $ — $ — $ 7,023 Reverse repurchase agreements 6,250 — — 6,250 Commercial paper 2,247 — — 2,247 Total cash equivalents 15,520 — — 15,520 Marketable securities Commercial paper 12,931 15 — 12,946 Corporate bonds 39,714 45 (9 ) 39,750 Total marketable securities $ 52,645 $ 60 $ (9 ) $ 52,696 |
Schedule of Gross Unrealized Losses and Fair Value by Investment Category and Age | The following table summarizes available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position: March 31, 2020 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ — $ — $ — $ — $ — $ — Corporate bonds 22,810 (147 ) — — 22,810 (147 ) Total marketable securities $ 22,810 $ (147 ) $ — $ — $ 22,810 $ (147 ) December 31, 2019 Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Commercial paper $ — $ — $ — $ — $ — $ — Corporate bonds 13,022 (9 ) — — 13,022 (9 ) Total marketable securities $ 13,022 $ (9 ) $ — $ — $ 13,022 $ (9 ) |
Summary of Contractual Maturities of Marketable Securities at Estimated Fair Value | The following table summarizes the contractual maturities of the Company’s marketable securities at estimated fair value (in thousands): March 31, December 31, 2020 2019 Due in one year or less $ 36,398 $ 49,687 Due in 1 - 2 years — 3,009 Total marketable securities $ 36,398 $ 52,696 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Accrued compensation $ 625 $ 3,273 Accrued contracted research and development costs 11,311 10,485 Accrued professional and consulting fees 577 627 Other 714 469 Total accrued and other current liabilities $ 13,227 $ 14,854 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | Total stock-based compensation expense related to the Company’s equity incentive plans and 2016 ESPP was as follows (in thousands): Three Months Ended March 31, 2020 2019 Research and development $ 532 $ 402 General and administrative 816 679 Total stock-based compensation expense $ 1,348 $ 1,081 |
Schedule of Estimated Fair Value of Stock Options Granted | The following table summarizes the weighted-average Black-Scholes option pricing model assumptions used to estimate the fair value of stock options granted under the Company’s equity incentive plans, and the shares purchasable under the 2016 ESPP during the periods presented: Three Months Ended March 31, 2020 2019 Equity Incentive Plans Expected term (in years) 6.02 6.03 Expected volatility 74 % 82 % Risk-free interest 1.45 % 2.57 % Dividend yield 0 % 0 % 2016 ESPP Expected term (in years) 0.50 0.49 Expected volatility 53 % 66 % Risk-free interest 1.49 % 2.55 % Dividend yield 0 % 0 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Weighted-Average Equity Instruments Excluded from Calculation of Diluted Net Loss Per Share | The following weighted-average equity instruments were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2020 2019 Options to purchase common stock 4,470,941 3,478,688 |
The Company and Basis of Pres_2
The Company and Basis of Presentation - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of operating segments | Segment | 1 | |
Working capital | $ 37,100 | |
Accumulated deficit | (213,843) | $ (195,115) |
Cash, cash equivalents, marketable securities, and restricted cash | $ 50,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Mar. 27, 2020 | Mar. 31, 2020USD ($)Subsidary | Mar. 31, 2019USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||
Impairments of long-lived assets | $ | $ 0 | $ 0 | |
Number of subsidiary corporations owned | Subsidary | 8 | ||
Net operating loss carryback period | 5 years | ||
Net operating loss carryforwards taxable income suspension of annual deduction limitation Percentage | 80.00% | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Marketable securities stated maturity period | 1 year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Useful Lives of Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Laboratory Equipment | |
Property Plant And Equipment [Line Items] | |
Useful lives of the property and equipment | 5 years |
Furniture and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Useful lives of the property and equipment | 5 years |
Computer Equipment | |
Property Plant And Equipment [Line Items] | |
Useful lives of the property and equipment | 3 years |
Software | |
Property Plant And Equipment [Line Items] | |
Useful lives of the property and equipment | 3 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Useful lives of the property and equipment | Shorter of remaining lease term or estimated useful life |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Financial assets, fair value | $ 47,919 | $ 68,216 |
Money market funds | ||
Financial Assets | ||
Financial assets, fair value | 9,026 | 7,023 |
Reverse repurchase agreements | ||
Financial Assets | ||
Financial assets, fair value | 6,250 | |
Commercial paper | ||
Financial Assets | ||
Financial assets, fair value | 10,225 | 15,193 |
Corporate bonds | ||
Financial Assets | ||
Financial assets, fair value | 28,668 | 39,750 |
Level 1 | ||
Financial Assets | ||
Financial assets, fair value | 9,026 | 7,023 |
Level 1 | Money market funds | ||
Financial Assets | ||
Financial assets, fair value | 9,026 | 7,023 |
Level 2 | ||
Financial Assets | ||
Financial assets, fair value | 38,893 | 61,193 |
Level 2 | Reverse repurchase agreements | ||
Financial Assets | ||
Financial assets, fair value | 6,250 | |
Level 2 | Commercial paper | ||
Financial Assets | ||
Financial assets, fair value | 10,225 | 15,193 |
Level 2 | Corporate bonds | ||
Financial Assets | ||
Financial assets, fair value | $ 28,668 | $ 39,750 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Mar. 31, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value assets transferred from level 1 to level 2 | $ 0 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Schedule of Estimated Fair Value of Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cash equivalents, amortized cost | $ 11,521 | $ 15,520 |
Cash equivalents, estimated fair value | 11,521 | 15,520 |
Marketable securities, amortized cost | 36,532 | 52,645 |
Marketable securities, gross unrealized gains | 13 | 60 |
Marketable securities, gross unrealized losses | (147) | (9) |
Marketable securities, estimated fair value | 36,398 | 52,696 |
Money market funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cash equivalents, amortized cost | 9,026 | 7,023 |
Cash equivalents, estimated fair value | 9,026 | 7,023 |
Reverse repurchase agreements | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cash equivalents, amortized cost | 6,250 | |
Cash equivalents, estimated fair value | 6,250 | |
Commercial paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cash equivalents, amortized cost | 2,495 | 2,247 |
Cash equivalents, estimated fair value | 2,495 | 2,247 |
Marketable securities, amortized cost | 7,725 | 12,931 |
Marketable securities, gross unrealized gains | 5 | 15 |
Marketable securities, estimated fair value | 7,730 | 12,946 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Marketable securities, amortized cost | 28,807 | 39,714 |
Marketable securities, gross unrealized gains | 8 | 45 |
Marketable securities, gross unrealized losses | (147) | (9) |
Marketable securities, estimated fair value | $ 28,668 | $ 39,750 |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Schedule of Gross Unrealized Losses and Fair Value by Investment Category and Age (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 22,810 | $ 13,022 |
Less than 12 Months, Unrealized Loss | (147) | (9) |
Total, Fair Value | 22,810 | 13,022 |
Total, Unrealized Loss | (147) | (9) |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 22,810 | 13,022 |
Less than 12 Months, Unrealized Loss | (147) | (9) |
Total, Fair Value | 22,810 | 13,022 |
Total, Unrealized Loss | $ (147) | $ (9) |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Additional Information (Details) - US Government Agencies Debt Securities $ in Thousands | Mar. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security | Mar. 31, 2020USD ($)Security | Mar. 31, 2019USD ($) |
Cash Equivalents And Marketable Securities [Line Items] | ||||
Number of debt securities held | Security | 25 | 13 | 25 | |
Allowance for Credit Loss | $ 0 | $ 0 | $ 0 | |
Impairment of marketable securities | 0 | 0 | ||
Realized gains or losses on marketable securities | 0 | $ 0 | ||
Accrued interest receivable on available-for-sale debt securities | $ 200 | $ 300 | $ 200 |
Cash Equivalents and Marketab_6
Cash Equivalents and Marketable Securities - Summary of Contractual Maturities of Marketable Securities at Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less | $ 36,398 | $ 49,687 |
Due in 1 - 2 years | 3,009 | |
Total marketable securities | $ 36,398 | $ 52,696 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued compensation | $ 625 | $ 3,273 |
Accrued contracted research and development costs | 11,311 | 10,485 |
Accrued professional and consulting fees | 577 | 627 |
Other | 714 | 469 |
Total accrued and other current liabilities | $ 13,227 | $ 14,854 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
2016 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of outstanding share of common stock | 4.00% | |||
Additional number of shares available for issuance | 1,163,377 | 965,603 | ||
Common stock available for future issuance | 1,511,409 | |||
2016 Equity Incentive Plan | Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option to purchase an aggregate of common stock shares | 1,205,000 | 1,042,300 | ||
Stock options to purchase common stock aggregate fair value | $ 6.4 | $ 6.2 | ||
2016 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option to purchase an aggregate of common stock shares | 25,928 | 20,132 | ||
Aggregate cash proceeds from sale of shares | $ 0.2 | $ 0.1 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - 2016 Equity Incentive Plans and Employee Stock Purchase Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 1,348 | $ 1,081 |
Research and Development | ||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 532 | 402 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 816 | $ 679 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Estimate Fair Value of Stock Options Granted (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity Incentive Plans | ||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||
Expected term (in years) | 6 years 7 days | 6 years 10 days |
Expected volatility | 74.00% | 82.00% |
Risk-free interest | 1.45% | 2.57% |
Dividend yield | 0.00% | 0.00% |
2016 Employee Stock Purchase Plan | ||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||
Expected term (in years) | 6 months | 5 months 26 days |
Expected volatility | 53.00% | 66.00% |
Risk-free interest | 1.49% | 2.55% |
Dividend yield | 0.00% | 0.00% |
Net Loss Per Share - Weighted-A
Net Loss Per Share - Weighted-Average Equity Instruments Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 4,470,941 | 3,478,688 |
License Agreements - Additional
License Agreements - Additional Information (Details) - License Agreements $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2017USD ($)LicenseAgreement | Mar. 31, 2020 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Research agreement date | 2013-12 | |
Number of license agreements | LicenseAgreement | 2 | |
Maximum future contingent license payment | $ 6.4 | |
Aggregate potential milestone payments for receipt of regulatory approval | 5 | |
Aggregate potential milestone payments for final regulatory approval of second indication | $ 0.5 | |
Minimum | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Rate of revenue share | 6.50% | |
Maximum | ||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||
Rate of revenue share | 25.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | |||
Common stock, shares issued | 29,147,461 | 29,084,437 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock, shares issued | 15,442,303 | ||
Public offering price of common stock | $ 4.75 | ||
Additional commons stock shares issued | 3,789,473 | ||
Proceeds from issue of common stock | $ 129.6 | ||
Underwriter's discount and commission | 8.2 | ||
Offering cost | $ 0.2 | ||
Subsequent Event | Pre Funded Warrants | |||
Subsequent Event [Line Items] | |||
Common stock, shares issued | 13,610,328 | ||
Public offering price of common stock | $ 4.7499 |