Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CUE | |
Entity Registrant Name | Cue Biopharma, Inc. | |
Entity Central Index Key | 0001645460 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 31,412,841 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38327 | |
Entity Tax Identification Number | 47-3324577 | |
Entity Address, Address Line One | 21 Erie Street | |
Entity Address, City or Town | Cambridge | |
Entity Address State or Province | MA | |
Entity Address, Postal Zip Code | 02139 | |
City Area Code | 617 | |
Local Phone Number | 949-2680 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 73,257,000 | $ 74,866,000 |
Marketable securities | 10,003,000 | |
Accounts receivable | 1,413,000 | 1,417,000 |
Prepaid expenses and other current assets | 2,735,000 | 1,241,000 |
Total current assets | 77,405,000 | 87,527,000 |
Property and equipment, net | 2,786,000 | 2,108,000 |
Operating lease right-of-use | 5,656,000 | 6,774,000 |
Deposits | 2,575,000 | 2,572,000 |
Restricted cash | 150,000 | 150,000 |
Other long-term assets | 149,000 | 402,000 |
Total assets | 88,721,000 | 99,533,000 |
Current liabilities: | ||
Accounts payable | 2,523,000 | 2,070,000 |
Accrued expenses | 1,976,000 | 2,787,000 |
Research and development contract liability, current portion | 7,145,000 | 6,681,000 |
Operating lease liability, current portion | 4,989,000 | 4,777,000 |
Total current liabilities | 16,633,000 | 16,315,000 |
Research and development contract liability, net of current portion | 1,334,000 | 1,938,000 |
Operating lease liability, net of current portion | 1,085,000 | 2,369,000 |
Total liabilities | 19,052,000 | 20,622,000 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.001 par value; 10,000,000 shares authorized and 0 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 30,499,803 and 30,351,366 shares issued and outstanding, at March 31, 2021 and December 31, 2020, respectively | 31,000 | 30,000 |
Additional paid in capital | 235,428,000 | 232,159,000 |
Accumulated other comprehensive income | 7,000 | |
Accumulated deficit | (165,790,000) | (153,285,000) |
Total stockholders’ equity | 69,669,000 | 78,911,000 |
Total liabilities and stockholders’ equity | $ 88,721,000 | $ 99,533,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 30,499,803 | 30,351,366 |
Common stock, shares outstanding | 30,499,803 | 30,351,366 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Collaboration revenue | $ 1,553 | $ 900 |
Operating expenses: | ||
General and administrative | 4,255 | 3,989 |
Research and development | 9,816 | 9,906 |
Total operating expenses | 14,071 | 13,895 |
Loss from operations | (12,518) | (12,995) |
Other income: | ||
Interest income, net | 13 | 177 |
Total other income | 13 | 177 |
Net loss | (12,505) | (12,818) |
Unrealized (loss) gain from available-for-sale securities | (7) | 259 |
Comprehensive loss | $ (12,512) | $ (12,559) |
Net loss per common share – basic and diluted | $ (0.41) | $ (0.48) |
Weighted average common shares outstanding – basic and diluted | 30,434,525 | 26,569,681 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | AOCI Attributable to Parent | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ 54,584 | $ 26 | $ 163,068 | $ (10) | $ (108,500) |
Balance, Shares at Dec. 31, 2019 | 26,562,178 | ||||
Stock-based compensation | 3,175 | 3,175 | |||
Exercise of stock options | 36 | $ 1 | 35 | ||
Exercise of stock options, Shares | 13,781 | ||||
Unrealized gains from available-for-sale securities | 259 | 259 | |||
Net loss | (12,818) | (12,818) | |||
Balance at Mar. 31, 2020 | 45,236 | $ 27 | 166,278 | 249 | (121,318) |
Balance, Shares at Mar. 31, 2020 | 26,575,959 | ||||
Balance at Dec. 31, 2020 | 78,911 | $ 30 | 232,159 | 7 | (153,285) |
Balance, Shares at Dec. 31, 2020 | 30,351,366 | ||||
Stock-based compensation | 2,436 | 2,436 | |||
Exercise of stock options | $ 919 | $ 1 | 918 | ||
Exercise of stock options, Shares | 130,642 | 130,642 | |||
Issuance of common stock upon exercise of warrants, net | 8,048 | ||||
Restricted stock awards released | 16,666 | ||||
Repurchase of restricted stock awards | $ (85) | (85) | |||
Repurchase of restricted stock awards, Shares | (6,919) | ||||
Unrealized gains from available-for-sale securities | (7) | $ (7) | |||
Net loss | (12,505) | (12,505) | |||
Balance at Mar. 31, 2021 | $ 69,669 | $ 31 | $ 235,428 | $ (165,790) | |
Balance, Shares at Mar. 31, 2021 | 30,499,803 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (12,505) | $ (12,818) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 318 | 263 |
Stock-based compensation | 2,436 | 3,175 |
Change in operating lease right-of-use asset | 1,118 | 998 |
Other non-cash expense | 30 | |
Amortization of premium/discount on purchased securities | (5) | |
Changes in operating assets and liabilities: | ||
Account receivable | 4 | 150 |
Prepaid expenses and other current assets | (1,590) | (994) |
Other assets | 250 | |
Deposits | (2) | |
Accounts payable | 203 | 717 |
Accrued expenses | (811) | (1,083) |
Research and development contract liability | (139) | (295) |
Operating lease liability | (1,072) | (1,087) |
Net cash used in operating activities | (11,795) | (10,944) |
Cash flows from investing activities | ||
Purchases of property and equipment | (648) | |
Redemption of short-term investments | 10,000 | |
Purchases of marketable securities | (9,950) | |
Net cash (used in) provided by investing activities | 9,352 | (9,950) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 919 | 36 |
Restricted stock repurchase at vesting to cover taxes | (85) | |
Net cash provided by financing activities | 834 | 36 |
Net decrease in cash, cash equivalents, and restricted cash | (1,609) | (20,858) |
Cash, cash equivalents, and restricted cash at beginning of period | 75,016 | 44,440 |
Cash, cash equivalents, and restricted cash at end of period | 73,407 | 23,582 |
Supplemental disclosures of non-cash investing activities: | ||
Income taxes | 206 | |
Purchases of property and equipment in accounts payable or accrued expenses | $ 250 | $ 141 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Cue Biopharma, Inc. (the “Company”) was incorporated in the State of Delaware on December 31, 2014 under the name Imagen Biopharma, Inc., and completed its organization, formation, and initial capitalization activities effective as of January 1, 2015. In October 2016, the Company changed its name to Cue Biopharma, Inc. The Company’s corporate office and research facilities are located in Cambridge, Massachusetts. The Company is a clinical-stage biopharmaceutical company engineering a novel class of injectable biologics designed to selectively engage and modulate targeted T cells within the body to treat a broad range of cancers, chronic infectious diseases, and autoimmune disorders. The Company is in the development stage and has incurred recurring losses and negative cash flows from operations since inception. As of March 31, 2021, the Company had unrestricted cash, cash equivalents, and marketable securities of approximately $73,257,000. Management believes that current cash and cash equivalents on hand at March 31, 2021 are sufficient to fund operations for at least the next twelve months from the date of issuance of these financial statements; however, the future viability of the Company is dependent on its ability to raise additional capital to finance its operations and to fund increased research and development costs in order to seek approval for commercialization of its product candidates. The Company’s failure to raise capital as and when needed would have a negative impact on its financial condition and its ability to pursue its business strategies as this capital is necessary for the Company to perform the research and development activities required to commercialize the Company’s product candidates in order to generate future revenue streams. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Basis of Presentation The accompanying unaudited consolidated financial statements as of March 31, 2021, and for the three months ended March 31, 2021 and 2020, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and generally accepted accounting principles in the United States (“U.S. GAAP”) for financial information, which prescribes elimination of all significant intercompany accounts and transactions in the accounts of the Company and its wholly owned subsidiary, Cue Biopharma Securities Corporation, Inc., which was incorporated in the Commonwealth of Massachusetts in December 2018. In the opinion of management, these financial statements reflect all adjustments which are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented Interim results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021, or any future periods. Public Offerings In March 2020, the Company entered into an “at-the-market” (“ATM”) equity offering sales agreement (the “March 2020 ATM Agreement”) with Stifel Nicolaus & Company, Inc. (“Stifel”) to sell shares of the Company’s common stock for aggregate gross proceeds of up to $35 million, from time to time, through an ATM equity offering program under which Stifel would act as sales agent. As of March 31, 2021, the Company sold 1,824,901 shares of common stock under the March 2020 ATM Agreement for proceeds of approximately $34.3 million, net of commissions paid, but excluding estimated transaction expenses. Due to the issuance and sale of all the shares of common stock available for sale, the March 2020 ATM Agreement terminated in accordance with its terms. In June 2020, the Company entered into an ATM equity offering sales agreement with Stifel (the “June 2020 ATM Agreement”) to sell shares of the Company’s common stock for aggregate gross proceeds of up to $40 million, from time to time, through an ATM equity offering program under which Stifel acts as sales agent. The June 2020 ATM Agreement will terminate upon the earliest of (a) the sale of $40 million of shares of the Company’s common stock pursuant to the June 2020 ATM Agreement or (b) the termination of the June 2020 ATM Agreement by the Company or Stifel. As of March 31, 2021, the Company sold 1,192,000 shares of common stock under the June 2020 ATM Agreement for proceeds of approximately $22.4 million, net of commissions paid, but excluding transaction expenses. Consolidation The accompanying consolidated financial statements include Cue Biopharma Inc. and its wholly owned subsidiary, Cue Biopharma Securities Corporation, Inc (collectively “the Company”). The Company has eliminated all intercompany transactions. Reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates include estimates related to collaboration revenue, the accounting for potential liabilities and accrued expenses, the assumptions utilized in valuing stock-based compensation issued for services, the realization of deferred tax assets, and the useful life with respect to long-lived assets and intangibles. Actual results could differ from those estimates. The COVID-19 outbreak, which the World Health Organization has classified as a pandemic, has prompted governments and regulatory bodies throughout the world to issue “stay-at-home” or other similar orders, and enact restrictions on the performance of “non-essential” services, public gatherings and travel. The extent to which the COVID-19 pandemic impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of the COVID-19 pandemic, the extent of its impact on worldwide macroeconomic conditions, the speed of the anticipated recovery, access to capital markets, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic as of March 31, 2021 and through the date of the filing of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, estimates related to collaboration revenue, the accounting for potential liabilities and accrued expenses, the assumptions utilized in valuing stock-based compensation issued for services, the realization of deferred tax assets, and assessments of impairment related to long-lived assets and intangibles. The Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Despite the Company’s efforts, the ultimate impact of the COVID-19 pandemic depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which the COVID-19 pandemic will negatively impact its financial results or liquidity. Cash Concentrations The Company maintains its cash balances with a financial institution in federally insured accounts and may periodically have cash balances in excess of insurance limits. The Company maintains its accounts with a financial institution with a high credit rating. The Company has not experienced any losses to date and believes that it is not exposed to any significant credit risk on cash. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company currently invests available cash in money market funds. Marketable Securities Marketable securities consist of investments with original maturities greater than ninety days and less than one year from the balance sheet date. The Company classifies all of its investments as available-for-sale securities. Accordingly, these investments are recorded at fair value, which is based on quoted market prices. Unrealized gains and losses are recognized and determined on a specific identification basis and are included in other comprehensive loss. Realized gains and losses are determined on a specific identification basis and are included in other income on the consolidated income statement of operations and other comprehensive loss. Amortization and accretion of discounts and premiums is recorded in interest income. The Company has invested available cash in United States Treasury obligations. Restricted Cash The Company had $150,000 in restricted cash deposited with a commercial bank to collateralize a credit card as of March 31, 2021 and December 31, 2020. Property and Equipment Property and equipment is recorded at cost. Major improvements are capitalized, while maintenance and repairs are charged to expense as incurred. Gains and losses from dispositions of property and equipment are included in income and expense when realized. Amortization of leasehold improvements is provided using the straight-line method over the shorter of the lease term or the useful life of the underlying assets. Depreciation of property and equipment is provided using the straight-line method over the following estimated useful lives: Laboratory equipment 5 years Computer and office equipment 3 years Furniture and fixtures 3-8 years The Company recognizes depreciation and amortization expense in general and administrative expenses and in research and development expenses in the Company’s consolidated statements of operations and comprehensive loss, depending on how each category of property and equipment is utilized in the Company’s business activities. Trademark Trademark consists of the Company’s right, title and interest to the CUE BIOLOGICS Mark, and any derivative mark incorporating CUE, throughout the world, together with all associated goodwill and common law rights appurtenant thereto, including, but not limited to, any right, title and interest in any corporate name, company name, business, name, trade name, dba, domain name, or other source identifier incorporating CUE. The Company has classified the trademark as a component of other long-term assets, having a useful life of 15 years. The Company evaluates the status of this intangible asset for amortization and impairment at each quarter end and year end reporting date. For each of the three months ended March 31, 2021 and 2020, the Company recorded approximately $3,000 in amortization expense on a straight-line basis. Revenue Recognition The Company recognizes collaboration revenue under certain of the Company’s license and collaboration agreements that are within the scope of Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company’s contracts with customers typically include promises related to licenses to intellectual property and research and development services. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. Accordingly, the transaction price is generally comprised of a fixed fee due at contract inception and variable consideration in the form of milestone payments due upon the achievement of specified events and tiered royalties earned when customers recognize net sales of licensed products. The Company measures the transaction price based on the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods and/or services to the customer. The Company utilizes the “most likely amount” method to estimate the amount of variable consideration, to predict the amount of consideration to which it will be entitled for its one open contract. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. At the inception of each arrangement that includes development and regulatory milestone payments, the Company evaluates whether the associated event is considered probable of achievement and estimates the amount to be included in the transaction price using the most likely amount method. Currently, the Company has one contract with an option to acquire additional goods and/or services in the form of additional research and development services for additional product candidates which it evaluated and determined that the option to acquire additional goods and/or services was not a material right related to the LG Chem Collaboration Agreement. Research and Development Expenses Research and development expenses consist primarily of compensation costs, fees paid to consultants, outside service providers and organizations (including research institutes at universities), facility costs, and development and clinical trial costs with respect to the Company’s product candidates. Research and development expenses incurred under contracts are expensed ratably over the life of the underlying contracts, unless the achievement of milestones, the completion of contracted work, or other information indicates that a different pattern of performance is more appropriate. Other research and development expenses are charged to operations as incurred. Nonrefundable advance payments are recognized as an expense as the related services are performed. The Company evaluates whether it expects the services to be rendered at each quarter end and year end reporting date. If the Company does not expect the services to be rendered, the advance payment is charged to expense. Nonrefundable advance payments for research and development services are included in prepaid and other current assets on the balance sheet. To the extent that a nonrefundable advance payment is for contracted services to be performed within 12 months from the reporting date, such advance is included in current assets; otherwise, such advance is included in non-current assets. The Company evaluates the status of its research and development agreements and contracts, and the carrying amount of the related assets and liabilities, at each quarter end and year end reporting date, and adjusts the carrying amounts and their classification on the balance sheet as appropriate. Patent Expenses The Company is the exclusive worldwide licensee of, and has patent applications pending for, numerous domestic and foreign patents. Due to the significant uncertainty associated with the successful development of one or more commercially viable product candidates based on the Company’s research efforts and any related patent applications, all patent costs, including patent-related legal fees, filing fees and other costs are charged to expense as incurred. For the three months ended March 31, 2021 and 2020, patent expenses were $520,000 and $655,000, respectively. Patent expenses are included in general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss. Licensing Fees and Costs Licensing fees and costs consist primarily of costs relating to the acquisition of the Company’s license agreement (the “Einstein License Agreement”) with the Albert Einstein College of Medicine (“Einstein”), including related royalties, maintenance fees, milestone payments and product development costs. Licensing fees and costs are charged to research and development expense as incurred. Long-Lived Assets The Company reviews long-lived assets, consisting of property and equipment, for impairment at each fiscal year end or when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The Company has not historically recorded any impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. Leases The Company adopted Accounting Standards Update 2016-02, Leases Leases Stock-Based Compensation The Company periodically issues stock-based awards to officers, directors, employees, Scientific and Clinical Advisory Board members, non-employees and consultants for services rendered. Such issuances vest and expire according to terms established at the issuance date. Stock-based payments to officers, directors, employees, Scientific and Clinical Advisory Board members and outside consultants, including grants of employee stock options, are recognized in the financial statements based on their grant date fair values. Stock option grants, which are generally time-vested, are measured at the grant date fair value and charged to operations on a straight-line basis over the service period, which generally approximates the vesting term. The Company also grants performance-based awards periodically to officers of the Company. The Company recognizes compensation costs related to performance awards over the requisite service period if and when the Company concludes that it is probable that the performance condition will be achieved. The fair value of stock options and restricted stock units is determined utilizing the Black-Scholes option-pricing model, which is affected by several variables, including the risk-free interest rate, the expected dividend yield, the life of the equity award, the exercise price of the stock option as compared to the fair value of the common stock on the grant date, and the estimated volatility of the common stock over the term of the equity award. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Until the Company has established a trading market for its common stock, estimated volatility is based on the average historical volatilities of comparable public companies in a similar industry. The expected dividend yield is based on the current yield at the grant date; the Company has never declared or paid dividends and has no plans to do so for the foreseeable future. As permitted by Staff Accounting Bulletin No. 107, due to the Company’s lack of trading history and option activity, management utilizes the simplified method to estimate the expected term of options at the date of grant. The exercise price is determined based on the fair value of the Company’s common stock at the date of grant. The Company accounts for forfeitures as they occur. The Company recognizes the fair value of stock-based compensation in general and administrative expenses and in research and development expenses in the Company’s consolidated statements of operations and comprehensive loss, depending on the type of services provided by the recipient of the equity award. Comprehensive Income (Loss) Components of comprehensive income or loss, including net income or loss, are reported in the financial statements in the period in which they are recognized. Other comprehensive income or loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net income (loss) and other comprehensive income (loss) are reported net of any related tax effect to arrive at comprehensive income (loss). Comprehensive income (loss) includes net income (loss) as well as changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. The Company’s only element of other comprehensive income (loss) in all periods presented was unrealized gain or loss on available-for-sale securities. Earnings (Loss) Per Share The Company’s computation of earnings (loss) per share (“EPS”) for the respective periods includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares that would result from the exercise of outstanding stock options and warrants as if they had been exercised at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Basic and diluted loss per common share is the same for all periods presented because all outstanding stock options and warrants are anti-dilutive. At March 31, 2021 and 2020, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, 2021 2020 Common stock warrants 851,969 1,189,827 Common stock options 5,738,757 5,507,572 Nonvested restricted stock units 213,336 250,001 Total 6,804,062 6,947,400 Fair Value of Financial Instruments The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active exchange-traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently traded non-exchange-based derivatives and commingled investment funds and are measured using present value pricing models. The Company determines the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company performs an analysis of the assets and liabilities at each reporting period end. The Company had approximately $67,997,000 in cash equivalents that was measured and recorded at fair value on the Company’s balance sheet as of March 31, 2021. The Company had approximately $72,943,000 in cash equivalents and $10,003,000 in short-term marketable securities that were measured and recorded at fair value on the Company’s balance sheet as of December 31, 2020. The carrying value of financial instruments (consisting of cash, a certificate of deposit, accounts payable, accrued compensation and accrued expenses) is considered to be representative of their respective fair values due to the short-term nature of those instruments. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments The new standard requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. annual reporting period for smaller reporting companies. T he Company is still evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes have a material impact on the Company’s financial position, results of operations or disclosures Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 3. The Company accounts for its financial assets and liabilities using fair value measurements. The authoritative accounting guidance defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. 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. The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicate the level of the fair value hierarchy utilized to determine such fair value: Fair Value Measurements as of March 31, 2021 (in thousands) Level 1 Level 2 Level 3 Fair Value Cash equivalents $ 67,997 $ — $ — $ 67,997 Total $ 67,997 $ — $ — $ 67,997 Fair Value Measurements as of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Cash equivalents $ 72,943 $ — $ — $ 72,943 Marketable securities — 10,003 — 10,003 Total $ 72,943 $ 10,003 $ — $ 82,946 As of March 31, 2021, the Company reported approximately $67,997,000 of cash equivalents. The Company’s cash equivalents that are invested in money market funds are valued using Level 1 inputs for identical securities. As of December 31, 2020, the Company reported approximately $82,946,000 of cash equivalents and marketable securities. During the year ended December 31, 2020, there were no transfers between Level 2 and Level 3. The carrying values of accounts receivable, prepaid expenses, other current assets, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these balances. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities As of December 31, 2020, the fair value of available-for-sale marketable securities by type of security was as follows: December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 9,995 $ 7 $ — $ 10,003 $ 9,995 $ 7 $ — $ 10,003 At March 31, 2021, the Company had redeemed its entire investment in marketable securities. At December 31, 2020, marketable securities consisted of approximately $10,003,000 of investments that mature within twelve months. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5 . Property and equipment as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 (in thousands) Laboratory equipment $ 5,022 $ 4,148 Furniture and fixtures 93 93 Computer equipment 268 268 Leasehold improvements 7 - Construction in progress 421 405 5,811 4,915 Less accumulated depreciation (3,025 ) (2,807 ) Net property and equipment $ 2,786 $ 2,108 Depreciation expense for the three months ended March 31, 2021 and 2020 was approximately $218,000 and $194,000, respectively. Depreciation expense for the three months ended March 31, 2021 excludes trademark amortization expense of approximately $3,000, and amortization of capitalized license expenses of approximately $97,000. Depreciation for the three months ended March 31, 2020 excludes trademark amortization expense of approximately $3,000, and amortization of capitalized license expenses of approximately $66,000 for the three months ended March 31, 2020. There were no |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 6 . Stock Option Valuation For stock options requiring an assessment of value during the three months ended March 31, 2021, the fair value of each stock option award was estimated using the Black-Scholes option-pricing model utilizing the following assumptions: March 31, 2021 Risk-free interest rate 0.61 to 1.18% Expected dividend yield 0% Expected volatility 92.2-94.7% Expected life 5.50 to 6.25 years March 31, 2020 Risk-free interest rate 1.00-1.56% Expected dividend yield 0% Expected volatility 98.0-99.6% Expected life 4.0 to 6.25 years A summary of stock option activity for the three months ended March 31, 2021 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Stock options outstanding at December 31, 2020 5,030,899 $ 9.10 5.51 Granted 868,500 14.73 Exercised (130,642 ) 7.02 Cancelled (30,000 ) 12.51 Stock options outstanding at March 31, 2021 5,738,757 9.79 6.01 Stock options exercisable at March 31, 2021 3,131,938 $ 7.53 4.15 The Company recognized approximately $2,069,000 in stock-based compensation expense during the three months ended March 31, 2021, related to stock options activity. As of March 31, 2021, total unrecognized stock-based compensation expense was approximately $23,048,000, which is expected to be recognized as an operating expense in the Company’s consolidated statement of operations and other comprehensive loss over the weighted average remaining period of 2.6 years. During the three months ended March 31, 2021, the Company granted stock options to purchase 868,500 shares of common stock with an average grant date fair value of $11.26. During the three months ended March 31, 2020, the Company granted stock options to purchase 728,100 shares of common stock with an average grant date fair value of $13.02. The intrinsic value of exercisable but unexercised in-the-money stock options at March 31, 2021 was approximately $16,435,000, based on a fair value of $12.20 per share on March 31, 2021. Restricted Stock Units On October 3, 2019, the Company granted 100,000 restricted stock units (“RSUs”) with time-based vesting conditions to an executive officer having an average grant date fair value of $7.53 per share. The RSUs vest in three substantially equal installments beginning on the grant date, and annually thereafter, subject to the recipient’s continued service on each applicable vesting date. Compensation expense is recognized on a straight-line basis. On February 5, 2020, the Company granted 150,000 RSUs with time-based vesting conditions to an executive officer. One-half of the RSUs vest on September 30, 2021, and the balance vest on March 31, 2022, subject to the recipient’s continued service on each applicable vesting date. On March 31, 2020, the Company granted 50,000 RSUs with time-based vesting conditions to an executive officer. The RSUs vest in three substantially equal installments beginning on the grant date, and annually thereafter, subject to the recipient’s continued service on each applicable vesting date. Compensation expense is recognized on a straight-line basis. On August 21, 2020, the Company granted 20,000 RSUs with time-based vesting conditions to an executive officer. The RSUs vest in three substantially equal installments beginning on the grant date, and annually thereafter, subject to the recipient’s continued service on each applicable vesting date. Compensation expense is recognized on a straight-line basis. The following table summarizes the RSU activity under the Company’s 2016 Omnibus Incentive Plan for the three months ended March 31, 2021: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2020 230,002 $ 16.66 Vested/Released (16,666 ) $ 14.19 Nonvested balance at March 31, 2021 213,336 $ 16.86 The Company recognized approximately $367,000 in stock-based compensation during the three months ended March 31, 2021 related to RSU activity. As of March 31, 2021, total unrecognized stock-based compensation was approximately $2,406,000, which is expected to be recognized as an operating expense in the Company’s consolidated statement of operations and other comprehensive loss with a weighted average remaining period of 1 year. Stock-based Compensation Stock-based compensation expense for the three months ended March 31, 2021 and 2020 was included in the consolidated statement of operations and other comprehensive loss as follows: Three Months Ended March 31, (in thousands) 2021 2020 General and administrative $ 1,114 $ 1,017 Research and development 1,322 2,158 Total $ 2,436 $ 3,175 |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2021 | |
Warrants And Rights Note Disclosure [Abstract] | |
Warrants | 7 . Warrants The Company had two tranches of common stock warrants outstanding at March 31, 2021. The first tranche was exercisable for an aggregate of 370,370 shares of common stock and was issued on June 15, 2015 with an exercise price of $2.70 per share. These warrants were issued with a 7-year term and expire on June 15, 2022. The second tranche was exercisable for an aggregate of 882,071 shares of common stock and was issued on December 27, 2017 with an exercise price of $9.38 per share. These warrants were issued with a 5-year term and expire on December 26, 2022. The intrinsic value of exercisable but unexercised in-the-money common stock warrants at March 31, 2021 was approximately $2,825,000 based on a fair value of $12.20 per share on March 31, 2021. Each tranche of warrants was evaluated under ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging , and the Company determined that equity classification was appropriate. The following table shows common stock warrants outstanding as of March 31, 2021: Warrant Issued June 15, 2015- Tranche 1 Warrant Issued December 27, 2017- Tranche 2 Total Shares remaining to be issued as of December 31, 2020 72,611 789,358 861,969 Issued via cashless exercises (8,048 ) — (8,048 ) Withheld as payment to cover issued shares (1,952 ) — (1,952 ) Shares remaining to be issued 62,611 789,358 851,969 |
Collaboration Revenue
Collaboration Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Collaboration Revenue | 8 . Collaboration Revenue The Company recognizes collaboration revenue under certain of the Company’s license or collaboration agreements that are within the scope of ASC 606. The Company’s contracts with customers typically include promises related to licenses to intellectual property and research and development services. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and if, over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company’s contracts may include options to acquire additional goods and/or services. The terms of the Company’s arrangements with customers typically include the payment of one or more of the following: (i) non-refundable, up-front payment, (ii) development, regulatory and commercial milestone payments, (iii) future options and (iv) royalties on net sales of licensed products. Accordingly, the transaction price is generally comprised of a fixed fee due at contract inception and variable consideration in the form of milestone payments due upon the achievement of specified events and tiered royalties earned when customers recognize net sales of licensed products. The Company measures the transaction price based on the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods and/or services to the customer. The Company utilizes the “most likely amount” method to estimate the amount of variable consideration, to predict the amount of consideration to which it will be entitled for its one open contract. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Milestone payments that are not within the control of the Company or the licensee, such as those dependent upon receipt of regulatory approval, are not considered to be probable of achievement until the triggering event occurs. At the end of each reporting period, the Company reevaluates the probability of achievement of each milestone and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and net loss in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based upon the achievement of a certain level of product sales, the Company recognizes revenue upon the later of: (i) when the related sales occur or (ii) when the performance obligation to which some or all of the payment has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any development, regulatory or commercial milestones or royalty revenue resulting from any of its collaboration arrangements. Consideration that would be received for optional goods and/or services is excluded from the transaction price at contract inception. The Company allocates the transaction price to each performance obligation identified in the contract on a relative standalone selling price basis, when applicable. However, certain components of variable consideration are allocated specifically to one or more particular performance obligations in a contact to the extent both of the following criteria are met: (i) the terms of the payment relate specifically to the efforts to satisfy the performance obligation or transfer the distinct good or service and (ii) allocating the variable amount of consideration entirely to the performance obligation or the distinct good or service is consistent with the allocation objective of the standard whereby the amount allocated depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services. The Company develops assumptions that require judgement to determine the standalone selling price for each performance obligation identified in each contract. The key assumptions utilized in determining the standalone selling price for each performance obligation may include forecasted revenues, development timelines, estimated research and development costs, discount rates, likelihood of exercise and probabilities of technical and regulatory success. Revenue is recognized based on the amount of the transaction price that is allocated to each respective performance obligation when or as the performance obligation is satisfied by transferring a promised good and/or service to the customer. For performance obligations that are satisfied over time, the Company recognizes revenue by measuring the progress toward complete satisfaction of the performance obligation using a single method of measuring progress which depicts the performance in transferring control of the associated goods and/or services to the customer. The Company uses input methods to measure the progress toward the complete satisfaction of performance obligations satisfied over time. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and net loss in the period of adjustment. The Company measures progress toward satisfaction of the performance obligation over time as effort is expended. On November 14, 2017, the Company entered into a collaboration agreement (the “Merck Collaboration Agreement”) with Merck Sharp & Dohme Corp. (“Merck”) for a partnership to research and develop certain of the Company’s proprietary biologics that target certain autoimmune disease indications (the “Initial Indications”). The Company views the Merck Collaboration Agreement as a component of its development strategy since it will allow the Company to advance its autoimmune programs in partnership with a world class pharmaceutical company, while also continuing its focus on its more advanced cancer programs. The research program outlined in the Merck Collaboration Agreement entails (1) the Company’s research, discovery and development of certain Immuno-STAT TM In exchange for the licenses and other rights granted to Merck under the Merck Collaboration Agreement, Merck paid to the Company a $2.5 million nonrefundable up-front payment. Additionally, the Company may be eligible to receive funding in developmental milestone payments, as well as tiered royalties, if all research, development, regulatory and commercial milestones agreed upon by both parties are successfully achieved. Excluding the up-front payment described above, the Company is eligible to earn up to $101.0 million for the achievement of certain research and development milestones, $120.0 million for the achievement of certain regulatory milestones and $150.0 million for the achievement of certain commercial milestones, in addition to tiered royalties on sales, if all pre-specified milestones associated with multiple products across the primary disease indication areas are achieved. The Merck Collaboration Agreement requires the Company to use the first $2.5 million of milestone payments it receives under the agreement to fund contract research. The amount of the royalty payments is a percentage of product sales ranging in the single digits based on the amount of such sales. As it relates to the Merck Collaboration Agreement, the Company recognized the up-front payment associated with its one open contract as a contract liability upon receipt of payment as it requires deferral of revenue recognition to a future period until the Company performs its obligations under the arrangement. Amounts expected to be recognized as revenue within the twelve months following the balance sheet date are classified in current liabilities. Amounts not expected to be recognized as revenue within the twelve months following the balance sheet date are classified as contract liabilities, net of current portion. The Company determined that there was one performance obligation, consisting of the license and research development services. Thus, the transaction price of $2.5 million was allocated to the single performance obligation. Aside from the $2.8 million in milestone payments earned to date, t he Company does not believe that any variable consideration should be included in the transaction price at March 31, 2021. The Company’s assessment ensured that estimates of variable consideration would be included in the transaction price only to the extent the Company had a high degree of confidence that revenue would not be reversed in a subsequent reporting period. The Company will re-evaluate the transaction price, including the estimated variable consideration included in the transaction price and all constrained amounts, in each reporting period and as other changes in circumstances occur. For the three months ended March 31, 2021 and 2020, the Company recorded approximately $765,000 and $55,000, respectively, in collaboration revenue related to the Merck Collaboration Agreement. As of March 31, 2021, the Company recorded short- and long-term research and development liabilities on its balance sheet of approximately $570,000 and $0, respectively. As of December 31, 2020, the Company recorded short and long-term research and development liabilities on its balance sheet of approximately $607,000 and $0, respectively. On November 6, 2018, the Company entered into a collaboration agreement (the “LG Chem Collaboration Agreement”) with LG Chem Life Sciences (“LG Chem”) related to the development of the Company’s Immuno-STATs focused in the field of oncology. Pursuant to the LG Chem Collaboration Agreement, the Company granted LG Chem an exclusive license to develop, manufacture and commercialize the Company’s lead product, CUE-101, as well as Immuno-STATs that target T cells against two additional cancer antigens, in certain Asian countries (collectively, the “LG Chem Territory”). On April 30, 2021, LG Chem’s option pursuant to the Global License and Collaboration Agreement, as amended on November 5, 2020, expired. The Company retains rights to develop and commercialize all assets included in the agreement in the United States and in global markets outside of Asia. In exchange for the licenses and other rights granted to LG Chem under the LG Chem Collaboration Agreement, LG Chem made a $5.0 million equity investment in common stock of the Company and a $5.0 million nonrefundable up-front cash payment. The Company is also eligible to receive up to an additional $400.0 million in research, development, regulatory and sales milestones. In addition, the LG Chem Collaboration Agreement also provides that LG Chem will pay the Company tiered single-digit percentage royalties on net sales of commercialized product candidates in the LG Chem Territory. On May 16, 2019, LG Chem paid the Company a $2.5 million milestone payment for the U.S. Food and Drug Administration (“FDA”) acceptance of the investigational new drug application (“IND”) for the Company’s lead drug candidate, CUE-101, pursuant to the LG Chem Collaboration Agreement. The $2.5 million milestone payment was recorded as a contract liability upon receipt of payment as it requires deferral of revenue recognition to a future period until the Company performs its obligations under the arrangement. Of the $2.5 million milestone payment, approximately $412,500 was recognized as tax withholding, shown as income tax expense on the consolidated statement of operations and other comprehensive loss. On December 7, 2020, the Company earned a $1.25 million milestone payment on the selection of a pre-clinical candidate pursuant to the LG Chem Collaboration Agreement. The $1.25 million milestone payment was recorded as a contract liability upon receipt. Revenue related to this milestone payment will be recognized by the Company pursuant to the Company’s revenue recognition policy in relation to the performance of its obligations related to the development of this pre-clinical candidate. Of the $1.25 million milestone payment, approximately $206,250 was withheld as payment of foreign tax withholding and shown as income tax expense on the consolidated statement of operations and other comprehensive loss. Aside from the $3.75 million in milestone payments under the LG Chem Collaboration Agreement, the Company does not believe that any variable consideration should be included in the transaction price as of March 31, 2021. The Company’s assessment ensured that estimates of variable consideration would be included in the transaction price only to the extent the Company had a high degree of confidence that revenue would not be reversed in a subsequent reporting period. The Company will re-evaluate the transaction price, including the estimated variable consideration included in the transaction price and all constrained amounts, in each reporting period and as other changes in circumstances occur. For the three months ended March 31, 2021 and 2020, the Company recognized revenue of approximately $788,000 and approximately $844,000, respectively, related to the LG Chem Collaboration agreement. As of March 31, 2021, the Company recorded short- and long-term research and development liabilities on its balance sheet of approximately $ 6,575,000 and $ 1,334,000 , respectively. As of December 31, 2020 , the Company recorded short- and long-term research and development liabilities on its balance sheet of approximately $ 6,074,000 and $ 1,938,000 , respectively. The Company considered the capitalization of contract costs under the guidance in ASC 340-40, Other Assets and Deferred Costs: Contracts with Customers in capitalized license expenses related to the milestone payment received in June 2019, and approximately $157,000 in capitalized license expenses related to the milestone payment received in December 2020 elated to the LG Chem Collaboration Agreement. As of December 31, 2020, $416,900 was included in prepaid expenses and other short-term assets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9 . Einstein License Agreement In 2015, the Company entered into the Einstein License Agreement with Einstein for certain patent rights relating to the Company’s core technology platform for the engineering of biologics to control T cell activity, precision, immune-modulatory drug candidates, and two supporting technologies that enable the discovery of costimulatory signaling molecules (ligands) and T cell targeting peptides. On July 31, 2017, the Company entered into an amended and restated license agreement which modified certain obligations of the parties under the Einstein License Agreement. For each of the three months ended March 31, 2021 and 2020, the Company incurred approximately The Company’s remaining commitments with respect to the Einstein License Agreement are based on the attainment of future milestones. The aggregate amount of milestone payments to be made under the Einstein License Agreement equals up to $1.85 million for each product, process or service that use the patents covered by the Einstein License Agreement, including certain technology received from Einstein relating thereto (“Licensed Products”), and up to $1.85 million for each new indication of a Licensed Product. Additionally, the aggregate amount of one-time milestone payments based on cumulative sales of all Licensed Products equals up to $5.75 million. Collaboration Agreement with Merck See discussion of the Merck Collaboration Agreement in Note 8. Collaboration Agreement with LG Chem Life Sciences See discussion of the LG Chem Collaboration Agreement in Note 8. Contingencies The Company accrues for contingent liabilities to the extent that the liability is probable and estimable. There are no accruals for contingent liabilities in these consolidated financial statements. The Company may be subject to various legal proceedings from time to time as part of its business. As of March 31, 2021, the Company was not a party to any legal proceedings or threatened legal proceedings, the adverse outcome of which, individually or in the aggregate, would have a material adverse effect on its business, financial condition or results of operations. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 1 0 . Leases The Company leases approximately 19,900 square feet of office space in Cambridge, Massachusetts under a lease that began in May 2018 The Company adopted ASC 842 as of January 1, 2019 using the effective date method, in which the Company did not restate prior periods. Upon adoption, the Company elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed it to carry forward the historical lease classification. The Company does not allocate consideration in its leases to lease and non-lease components and does not record leases on its balance sheets with terms of 12 months or less. The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company’s incremental borrowing rate represents the rate of interest that it would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of approximately $9,692,000 of right-of-use asset and $9,347,000 of lease liabilities on the Company’s balance sheet. The adoption did not have a material net impact on the Company’s consolidated statements of operations and comprehensive loss or accumulated deficit. The Company will review the classification of newly entered leases as either an operating or a finance lease and recognize a related right-of-use asset and lease liability on its balance sheet upon commencement. On January 18, 2018, the Company entered into an operating lease agreement for its laboratory and office space in Cambridge, Massachusetts for the period from May 1, 2018 through April 30, 2021 (the “Laboratory and Office Lease”). The lease contains escalating payments during the lease period. Upon execution of this lease agreement, the Company prepaid three months of rent, two of which will be held in escrow and credited against future rent payments and the other of which was applied to the first month’s rent. The Company also prepaid seven and one-half months’ rent pursuant to an amendment to the lease agreement executed on June 18, 2018. These amounts were recorded to deposits and prepaid expenses, respectively, at December 31, 2018. On June 18, 2018, the Company entered into an amendment to the Laboratory and Office Lease that provided the Company with a reduction in rental fees for its office and laboratory space in exchange for prepayment of a portion of the fees. This amendment was effective beginning on May 15, 2018. The monthly rent payment due under the Laboratory and Office Lease was $330,550 until April 2021 and increased to $375,174 for the remainder of the term. On September 20, 2018, the Company entered into an operating lease for additional laboratory space at 21 Erie Street, Cambridge, Massachusetts for the period from October 15, 2018 through April 14, 2021 (the “Additional Laboratory Lease”). The lease contains escalating payments during the lease period. The monthly rental rate under the s $72,600 for the first 12 months and $78,600 for the remainder of the term. Upon execution of this lease agreement, the Company prepaid 12 months’ rent pursuant to the lease agreement executed on September 20, 2018. On September 19, 2019, the Company entered into a second amendment to the Additional Laboratory Lease Additional Laboratory Lease On June 24, 2020, the Company entered into a second amendment to the Laboratory and Office Lease. Pursuant to the amendment (1) the term of the lease was extended to June 14, 2022 and (2) the monthly rental rate for the last 14 months of the lease term was increased to $375,174. Company recorded an adjustment to the right-of-use asset and lease liability in the amount of approximately $4,826,000. On July 20, 2020, the Company entered into a third amendment to the Additional Laboratory Lease The Company determined that the amendment should be accounted for as a lease modification applicable under ASC 842, not as a separate contract, with an effective date of lease modification of August 4, 2020, when the agreement was fully executed. Company recorded an adjustment to the right-of-use asset and lease liability in the amount of approximately $813,000. At March 31, 2021, the Company recorded approximately $5,656,000 to operating right-of-use asset, and approximately $4,989,000 and $1,085,000 to short- and long-term operating lease liability, respectively. At March 31, 2021 the remaining lease term was 1.21 years for both leases. At December 31, 2020, the Company recorded approximately $6,774,000 to operating right-of-use asset, and approximately $4,777,000 and $2,369,000 to short- and long-term operating lease liability, respectively. At December 31, 2020 the remaining lease term was 1.46 years for both leases. As of March 31, 2021 and December 31, 2020, a security deposit of approximately $177,000 is included in deposits on the Company’s balance sheet. Future minimum lease payments under these leases at March 31, 2021 are as follows: Year (in thousands) 2021 3,905 2022 2,408 Total lease payment $ 6,313 Less: present value discount (239 ) Total $ 6,074 Total rent expense of approximately $1,220,000 and $1,080,000 was included in the consolidated statement of operations and other comprehensive loss for the three months ended March 31, 2021 and 2020, respectively. Other information (in thousands) Three Months Ended March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,174 Operating lease cost $ 1,220 Weighted average discount rate 6.0% Weighted average remaining lease term 1.21 years |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 1 . Subsequent Events In June 2020, the Company entered into the June 2020 ATM Agreement with Stifel to sell shares of the Company’s common stock for aggregate gross proceeds of up to $40.0 million, from time to time, through an ATM equity offering program. Subsequent to March 31, 2021, the Company sold 907,700 shares of common stock under the June 2020 ATM Agreement for proceeds of approximately $10.4 million, net of commissions paid, but excluding estimated transaction expenses. As of May 3, 2021, aggregate sales under the June 2020 ATM Agreement totaled 2,099,700 shares of common stock sold for approximately $32.7 million, net of commissions paid, but excluding estimated transaction expenses. On April 30, 2021, LG Chem’s option pursuant to the global license and collaboration agreement, as amended on November 5, 2020, whereby LG Chem had the option to elect one additional Immuno-STAT for an oncology target for a worldwide development and commercialization license, expired |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements as of March 31, 2021, and for the three months ended March 31, 2021 and 2020, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and generally accepted accounting principles in the United States (“U.S. GAAP”) for financial information, which prescribes elimination of all significant intercompany accounts and transactions in the accounts of the Company and its wholly owned subsidiary, Cue Biopharma Securities Corporation, Inc., which was incorporated in the Commonwealth of Massachusetts in December 2018. In the opinion of management, these financial statements reflect all adjustments which are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented Interim results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021, or any future periods. |
Public Offerings | Public Offerings In March 2020, the Company entered into an “at-the-market” (“ATM”) equity offering sales agreement (the “March 2020 ATM Agreement”) with Stifel Nicolaus & Company, Inc. (“Stifel”) to sell shares of the Company’s common stock for aggregate gross proceeds of up to $35 million, from time to time, through an ATM equity offering program under which Stifel would act as sales agent. As of March 31, 2021, the Company sold 1,824,901 shares of common stock under the March 2020 ATM Agreement for proceeds of approximately $34.3 million, net of commissions paid, but excluding estimated transaction expenses. Due to the issuance and sale of all the shares of common stock available for sale, the March 2020 ATM Agreement terminated in accordance with its terms. In June 2020, the Company entered into an ATM equity offering sales agreement with Stifel (the “June 2020 ATM Agreement”) to sell shares of the Company’s common stock for aggregate gross proceeds of up to $40 million, from time to time, through an ATM equity offering program under which Stifel acts as sales agent. The June 2020 ATM Agreement will terminate upon the earliest of (a) the sale of $40 million of shares of the Company’s common stock pursuant to the June 2020 ATM Agreement or (b) the termination of the June 2020 ATM Agreement by the Company or Stifel. As of March 31, 2021, the Company sold 1,192,000 shares of common stock under the June 2020 ATM Agreement for proceeds of approximately $22.4 million, net of commissions paid, but excluding transaction expenses. |
Consolidation | Consolidation The accompanying consolidated financial statements include Cue Biopharma Inc. and its wholly owned subsidiary, Cue Biopharma Securities Corporation, Inc (collectively “the Company”). The Company has eliminated all intercompany transactions. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
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 reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates include estimates related to collaboration revenue, the accounting for potential liabilities and accrued expenses, the assumptions utilized in valuing stock-based compensation issued for services, the realization of deferred tax assets, and the useful life with respect to long-lived assets and intangibles. Actual results could differ from those estimates. The COVID-19 outbreak, which the World Health Organization has classified as a pandemic, has prompted governments and regulatory bodies throughout the world to issue “stay-at-home” or other similar orders, and enact restrictions on the performance of “non-essential” services, public gatherings and travel. The extent to which the COVID-19 pandemic impacts the Company’s business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of the COVID-19 pandemic, the extent of its impact on worldwide macroeconomic conditions, the speed of the anticipated recovery, access to capital markets, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic as of March 31, 2021 and through the date of the filing of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, estimates related to collaboration revenue, the accounting for potential liabilities and accrued expenses, the assumptions utilized in valuing stock-based compensation issued for services, the realization of deferred tax assets, and assessments of impairment related to long-lived assets and intangibles. The Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Despite the Company’s efforts, the ultimate impact of the COVID-19 pandemic depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which the COVID-19 pandemic will negatively impact its financial results or liquidity. |
Cash Concentrations | Cash Concentrations The Company maintains its cash balances with a financial institution in federally insured accounts and may periodically have cash balances in excess of insurance limits. The Company maintains its accounts with a financial institution with a high credit rating. The Company has not experienced any losses to date and believes that it is not exposed to any significant credit risk on cash. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of purchase to be cash equivalents. The Company currently invests available cash in money market funds. |
Marketable Securities | Marketable Securities Marketable securities consist of investments with original maturities greater than ninety days and less than one year from the balance sheet date. The Company classifies all of its investments as available-for-sale securities. Accordingly, these investments are recorded at fair value, which is based on quoted market prices. Unrealized gains and losses are recognized and determined on a specific identification basis and are included in other comprehensive loss. Realized gains and losses are determined on a specific identification basis and are included in other income on the consolidated income statement of operations and other comprehensive loss. Amortization and accretion of discounts and premiums is recorded in interest income. The Company has invested available cash in United States Treasury obligations. |
Restricted Cash | Restricted Cash The Company had $150,000 in restricted cash deposited with a commercial bank to collateralize a credit card as of March 31, 2021 and December 31, 2020. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost. Major improvements are capitalized, while maintenance and repairs are charged to expense as incurred. Gains and losses from dispositions of property and equipment are included in income and expense when realized. Amortization of leasehold improvements is provided using the straight-line method over the shorter of the lease term or the useful life of the underlying assets. Depreciation of property and equipment is provided using the straight-line method over the following estimated useful lives: Laboratory equipment 5 years Computer and office equipment 3 years Furniture and fixtures 3-8 years The Company recognizes depreciation and amortization expense in general and administrative expenses and in research and development expenses in the Company’s consolidated statements of operations and comprehensive loss, depending on how each category of property and equipment is utilized in the Company’s business activities. |
Trademark | Trademark Trademark consists of the Company’s right, title and interest to the CUE BIOLOGICS Mark, and any derivative mark incorporating CUE, throughout the world, together with all associated goodwill and common law rights appurtenant thereto, including, but not limited to, any right, title and interest in any corporate name, company name, business, name, trade name, dba, domain name, or other source identifier incorporating CUE. The Company has classified the trademark as a component of other long-term assets, having a useful life of 15 years. The Company evaluates the status of this intangible asset for amortization and impairment at each quarter end and year end reporting date. For each of the three months ended March 31, 2021 and 2020, the Company recorded approximately $3,000 in amortization expense on a straight-line basis. |
Revenue Recognition | Revenue Recognition The Company recognizes collaboration revenue under certain of the Company’s license and collaboration agreements that are within the scope of Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers (“ASC 606”). The Company’s contracts with customers typically include promises related to licenses to intellectual property and research and development services. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. Accordingly, the transaction price is generally comprised of a fixed fee due at contract inception and variable consideration in the form of milestone payments due upon the achievement of specified events and tiered royalties earned when customers recognize net sales of licensed products. The Company measures the transaction price based on the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods and/or services to the customer. The Company utilizes the “most likely amount” method to estimate the amount of variable consideration, to predict the amount of consideration to which it will be entitled for its one open contract. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. At the inception of each arrangement that includes development and regulatory milestone payments, the Company evaluates whether the associated event is considered probable of achievement and estimates the amount to be included in the transaction price using the most likely amount method. Currently, the Company has one contract with an option to acquire additional goods and/or services in the form of additional research and development services for additional product candidates which it evaluated and determined that the option to acquire additional goods and/or services was not a material right related to the LG Chem Collaboration Agreement. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of compensation costs, fees paid to consultants, outside service providers and organizations (including research institutes at universities), facility costs, and development and clinical trial costs with respect to the Company’s product candidates. Research and development expenses incurred under contracts are expensed ratably over the life of the underlying contracts, unless the achievement of milestones, the completion of contracted work, or other information indicates that a different pattern of performance is more appropriate. Other research and development expenses are charged to operations as incurred. Nonrefundable advance payments are recognized as an expense as the related services are performed. The Company evaluates whether it expects the services to be rendered at each quarter end and year end reporting date. If the Company does not expect the services to be rendered, the advance payment is charged to expense. Nonrefundable advance payments for research and development services are included in prepaid and other current assets on the balance sheet. To the extent that a nonrefundable advance payment is for contracted services to be performed within 12 months from the reporting date, such advance is included in current assets; otherwise, such advance is included in non-current assets. The Company evaluates the status of its research and development agreements and contracts, and the carrying amount of the related assets and liabilities, at each quarter end and year end reporting date, and adjusts the carrying amounts and their classification on the balance sheet as appropriate. |
Patent Expenses | Patent Expenses The Company is the exclusive worldwide licensee of, and has patent applications pending for, numerous domestic and foreign patents. Due to the significant uncertainty associated with the successful development of one or more commercially viable product candidates based on the Company’s research efforts and any related patent applications, all patent costs, including patent-related legal fees, filing fees and other costs are charged to expense as incurred. For the three months ended March 31, 2021 and 2020, patent expenses were $520,000 and $655,000, respectively. Patent expenses are included in general and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss. |
Licensing Fees and Costs | Licensing Fees and Costs Licensing fees and costs consist primarily of costs relating to the acquisition of the Company’s license agreement (the “Einstein License Agreement”) with the Albert Einstein College of Medicine (“Einstein”), including related royalties, maintenance fees, milestone payments and product development costs. Licensing fees and costs are charged to research and development expense as incurred. |
Long-Lived Assets | Long-Lived Assets The Company reviews long-lived assets, consisting of property and equipment, for impairment at each fiscal year end or when events or changes in circumstances indicate the carrying value of these assets may exceed their current fair values. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated. The Company has not historically recorded any impairment to its long-lived assets. In the future, if events or market conditions affect the estimated fair value to the extent that a long-lived asset is impaired, the Company will adjust the carrying value of these long-lived assets in the period in which the impairment occurs. |
Leases | Leases The Company adopted Accounting Standards Update 2016-02, Leases Leases |
Stock-Based Compensation | Stock-Based Compensation The Company periodically issues stock-based awards to officers, directors, employees, Scientific and Clinical Advisory Board members, non-employees and consultants for services rendered. Such issuances vest and expire according to terms established at the issuance date. Stock-based payments to officers, directors, employees, Scientific and Clinical Advisory Board members and outside consultants, including grants of employee stock options, are recognized in the financial statements based on their grant date fair values. Stock option grants, which are generally time-vested, are measured at the grant date fair value and charged to operations on a straight-line basis over the service period, which generally approximates the vesting term. The Company also grants performance-based awards periodically to officers of the Company. The Company recognizes compensation costs related to performance awards over the requisite service period if and when the Company concludes that it is probable that the performance condition will be achieved. The fair value of stock options and restricted stock units is determined utilizing the Black-Scholes option-pricing model, which is affected by several variables, including the risk-free interest rate, the expected dividend yield, the life of the equity award, the exercise price of the stock option as compared to the fair value of the common stock on the grant date, and the estimated volatility of the common stock over the term of the equity award. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Until the Company has established a trading market for its common stock, estimated volatility is based on the average historical volatilities of comparable public companies in a similar industry. The expected dividend yield is based on the current yield at the grant date; the Company has never declared or paid dividends and has no plans to do so for the foreseeable future. As permitted by Staff Accounting Bulletin No. 107, due to the Company’s lack of trading history and option activity, management utilizes the simplified method to estimate the expected term of options at the date of grant. The exercise price is determined based on the fair value of the Company’s common stock at the date of grant. The Company accounts for forfeitures as they occur. The Company recognizes the fair value of stock-based compensation in general and administrative expenses and in research and development expenses in the Company’s consolidated statements of operations and comprehensive loss, depending on the type of services provided by the recipient of the equity award. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Components of comprehensive income or loss, including net income or loss, are reported in the financial statements in the period in which they are recognized. Other comprehensive income or loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net income (loss) and other comprehensive income (loss) are reported net of any related tax effect to arrive at comprehensive income (loss). Comprehensive income (loss) includes net income (loss) as well as changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. The Company’s only element of other comprehensive income (loss) in all periods presented was unrealized gain or loss on available-for-sale securities. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company’s computation of earnings (loss) per share (“EPS”) for the respective periods includes basic and diluted EPS. Basic EPS is measured as the income (loss) attributable to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares that would result from the exercise of outstanding stock options and warrants as if they had been exercised at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Basic and diluted loss per common share is the same for all periods presented because all outstanding stock options and warrants are anti-dilutive. At March 31, 2021 and 2020, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, 2021 2020 Common stock warrants 851,969 1,189,827 Common stock options 5,738,757 5,507,572 Nonvested restricted stock units 213,336 250,001 Total 6,804,062 6,947,400 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The authoritative guidance with respect to fair value established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels and requires that assets and liabilities carried at fair value be classified and disclosed in one of three categories, as presented below. Level 1. Observable inputs such as quoted prices in active markets for an identical asset or liability that the Company has the ability to access as of the measurement date. Financial assets and liabilities utilizing Level 1 inputs include active exchange-traded securities and exchange-based derivatives. Level 2. Inputs, other than quoted prices included within Level 1, which are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. Financial assets and liabilities utilizing Level 2 inputs include fixed income securities, non-exchange-based derivatives, mutual funds, and fair-value hedges. Level 3. Unobservable inputs in which there is little or no market data for the asset or liability which requires the reporting entity to develop its own assumptions. Financial assets and liabilities utilizing Level 3 inputs include infrequently traded non-exchange-based derivatives and commingled investment funds and are measured using present value pricing models. The Company determines the level in the fair value hierarchy within which each fair value measurement falls in its entirety, based on the lowest level input that is significant to the fair value measurement in its entirety. In determining the appropriate levels, the Company performs an analysis of the assets and liabilities at each reporting period end. The Company had approximately $67,997,000 in cash equivalents that was measured and recorded at fair value on the Company’s balance sheet as of March 31, 2021. The Company had approximately $72,943,000 in cash equivalents and $10,003,000 in short-term marketable securities that were measured and recorded at fair value on the Company’s balance sheet as of December 31, 2020. The carrying value of financial instruments (consisting of cash, a certificate of deposit, accounts payable, accrued compensation and accrued expenses) is considered to be representative of their respective fair values due to the short-term nature of those instruments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments The new standard requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. annual reporting period for smaller reporting companies. T he Company is still evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes have a material impact on the Company’s financial position, results of operations or disclosures Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Assets | Depreciation of property and equipment is provided using the straight-line method over the following estimated useful lives: Laboratory equipment 5 years Computer and office equipment 3 years Furniture and fixtures 3-8 years |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | At March 31, 2021 and 2020, the Company excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, 2021 2020 Common stock warrants 851,969 1,189,827 Common stock options 5,738,757 5,507,572 Nonvested restricted stock units 213,336 250,001 Total 6,804,062 6,947,400 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicate the level of the fair value hierarchy utilized to determine such fair value: Fair Value Measurements as of March 31, 2021 (in thousands) Level 1 Level 2 Level 3 Fair Value Cash equivalents $ 67,997 $ — $ — $ 67,997 Total $ 67,997 $ — $ — $ 67,997 Fair Value Measurements as of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Fair Value Cash equivalents $ 72,943 $ — $ — $ 72,943 Marketable securities — 10,003 — 10,003 Total $ 72,943 $ 10,003 $ — $ 82,946 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Fair Value of Available-for-Sale Marketable Securities | As of December 31, 2020, the fair value of available-for-sale marketable securities by type of security was as follows: December 31, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 9,995 $ 7 $ — $ 10,003 $ 9,995 $ 7 $ — $ 10,003 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 (in thousands) Laboratory equipment $ 5,022 $ 4,148 Furniture and fixtures 93 93 Computer equipment 268 268 Leasehold improvements 7 - Construction in progress 421 405 5,811 4,915 Less accumulated depreciation (3,025 ) (2,807 ) Net property and equipment $ 2,786 $ 2,108 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of Estimated Fair Value of Each Stock Option Award | For stock options requiring an assessment of value during the three months ended March 31, 2021, the fair value of each stock option award was estimated using the Black-Scholes option-pricing model utilizing the following assumptions: March 31, 2021 Risk-free interest rate 0.61 to 1.18% Expected dividend yield 0% Expected volatility 92.2-94.7% Expected life 5.50 to 6.25 years March 31, 2020 Risk-free interest rate 1.00-1.56% Expected dividend yield 0% Expected volatility 98.0-99.6% Expected life 4.0 to 6.25 years |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2021 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Stock options outstanding at December 31, 2020 5,030,899 $ 9.10 5.51 Granted 868,500 14.73 Exercised (130,642 ) 7.02 Cancelled (30,000 ) 12.51 Stock options outstanding at March 31, 2021 5,738,757 9.79 6.01 Stock options exercisable at March 31, 2021 3,131,938 $ 7.53 4.15 |
Schedule of Stock-Based Compensation Included in Statement of Operations | Stock-based compensation expense for the three months ended March 31, 2021 and 2020 was included in the consolidated statement of operations and other comprehensive loss as follows: Three Months Ended March 31, (in thousands) 2021 2020 General and administrative $ 1,114 $ 1,017 Research and development 1,322 2,158 Total $ 2,436 $ 3,175 |
2016 Omnibus Incentive Plan | |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the RSU activity under the Company’s 2016 Omnibus Incentive Plan for the three months ended March 31, 2021: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2020 230,002 $ 16.66 Vested/Released (16,666 ) $ 14.19 Nonvested balance at March 31, 2021 213,336 $ 16.86 |
Warrants (Table)
Warrants (Table) | 3 Months Ended |
Mar. 31, 2021 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of Common Stock Warrant Activity | The following table shows common stock warrants outstanding as of March 31, 2021: Warrant Issued June 15, 2015- Tranche 1 Warrant Issued December 27, 2017- Tranche 2 Total Shares remaining to be issued as of December 31, 2020 72,611 789,358 861,969 Issued via cashless exercises (8,048 ) — (8,048 ) Withheld as payment to cover issued shares (1,952 ) — (1,952 ) Shares remaining to be issued 62,611 789,358 851,969 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Lease | Future minimum lease payments under these leases at March 31, 2021 are as follows: Year (in thousands) 2021 3,905 2022 2,408 Total lease payment $ 6,313 Less: present value discount (239 ) Total $ 6,074 |
Schedule of Other Information of Operating Leases | Other information (in thousands) Three Months Ended March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,174 Operating lease cost $ 1,220 Weighted average discount rate 6.0% Weighted average remaining lease term 1.21 years |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Date of incorporation | Dec. 31, 2014 |
Cash, cash equivalents and marketable securities | $ 73,257,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash equivalents | $ 67,997,000 | $ 72,943,000 | |
Short term marketable securities | 10,003,000 | ||
General and Administrative Expense | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Patent expenses | $ 520,000 | $ 655,000 | |
Type of Cost, Good or Service [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember | |
Trademarks | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of trademark | 15 years | ||
Amortization of intangible assets | $ 3,000,000 | $ 3,000,000 | |
Certificate of Deposit | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash used to collateralize a credit card | 150,000 | $ 150,000 | |
Stifel Nicolaus and Company Inc. | Sales Agreement March 2020 | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Proceeds from Issuance Initial Public Offering | $ 35,000,000 | ||
Stifel Nicolaus and Company Inc. | Sales Agreement March 2020 | Transaction Expense | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 1,824,901 | ||
Proceeds from sale of common stock | $ 34,300,000 | ||
Stifel Nicolaus and Company Inc. | Sales Agreement June 2020 | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Proceeds from Issuance Initial Public Offering | $ 40,000,000 | ||
Stifel Nicolaus and Company Inc. | Sales Agreement June 2020 | Transaction Expense | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 1,192,000 | ||
Proceeds from sale of common stock | $ 22,400,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Laboratory Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Fixtures | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Fixtures | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 8 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 6,804,062 | 6,947,400 |
Common Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 851,969 | 1,189,827 |
Common Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 5,738,757 | 5,507,572 |
Nonvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 213,336 | 250,001 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Assets Measured on Recurring Basis (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 67,997,000 | $ 72,943,000 |
Marketable securities | 10,003,000 | |
Total | 67,997,000 | 82,946,000 |
Fair Value Measurements, Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 67,997,000 | 72,943,000 |
Marketable securities | 10,003,000 | |
Total | 67,997,000 | 82,946,000 |
Fair Value Measurements, Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 67,997,000 | 72,943,000 |
Total | $ 67,997,000 | 72,943,000 |
Fair Value Measurements, Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,003,000 | |
Total | $ 10,003,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Cash equivalents and marketable securities | $ 67,997,000 | $ 82,946,000 |
Fair value assets transfers between Level 2 and Level 3 | $ 0 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Fair Value of Available-for-Sale Marketable Securities (Details) | Dec. 31, 2020USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | $ 9,995,000 |
Gross Unrealized Gains | 7,000 |
Fair Value | 10,003,000 |
U.S. Treasury Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | 9,995,000 |
Gross Unrealized Gains | 7,000 |
Fair Value | $ 10,003,000 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | Dec. 31, 2020USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Marketable securities | $ 10,003,000 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,811 | $ 4,915 |
Less accumulated depreciation | (3,025) | (2,807) |
Net property and equipment | 2,786 | 2,108 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,022 | 4,148 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 93 | 93 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 268 | 268 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 7 | |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 421 | $ 405 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 218,000 | $ 194,000 |
Loss on disposal of property and equipment | 0 | 0 |
Depreciation | 3,000 | 3,000 |
Amortization of capitalized license expense | $ 97,000 | $ 66,000 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Estimated Fair Value of Each Stock Option Award (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 0.61% | 1.00% |
Risk-free interest rate, maximum | 1.18% | 1.56% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility, minimum | 92.20% | 98.00% |
Expected volatility, maximum | 94.70% | 99.60% |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life | 6 years 3 months | 6 years 3 months |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life | 5 years 6 months | 4 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Number of Shares, Outstanding Beginning Balance | 5,030,899 | |
Number of Shares, Granted | 868,500 | |
Number of Shares, Exercised | (130,642) | |
Number of Shares, Cancelled | (30,000) | |
Number of Shares, Outstanding Ending Balance | 5,738,757 | 5,030,899 |
Number of Shares, Exercisable | 3,131,938 | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 9.10 | |
Weighted Average Exercise Price, Granted | 14.73 | |
Weighted Average Exercise Price, Exercised | 7.02 | |
Weighted Average Exercise Price, Cancelled | 12.51 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 9.79 | $ 9.10 |
Weighed Average Exercise Price, Exercisable | $ 7.53 | |
Weighted Average Remaining Contractual Life (in Years) | 6 years 3 days | 5 years 6 months 3 days |
Weighted Average Remaining Contractual Life (in Years), Exercisable | 4 years 1 month 24 days |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | Oct. 03, 2019 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Aug. 21, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 2,436,000 | $ 3,175,000 | ||||
Stock based payment options outstanding weighted average remaining term | 6 years 3 days | 5 years 6 months 3 days | ||||
Number of Shares, Granted | 868,500 | |||||
Weighted Average Exercise Price, Granted | $ 14.73 | |||||
Unrecognized stock-based compensation | $ 23,048,000 | |||||
Intrinsic value of exercisable stock options | $ 16,435,000 | |||||
Intrinsic value of exercisable fair value per share | $ 12.20 | |||||
Number of shares, granted | 868,500 | |||||
Stock-based compensation | $ 2,436,000 | $ 3,175,000 | ||||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock based payment options outstanding weighted average remaining term | 1 year | |||||
Unrecognized stock-based compensation | $ 2,406,000 | |||||
Number of shares, granted | 100,000 | 20,000 | ||||
Weighted average grant date fair value per share | $ 7.53 | |||||
Stock-based compensation | $ 367,000,000 | |||||
Restricted Stock Units | February 2020 Awarded And Granted | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of Shares, Granted | 150,000 | |||||
Number of shares, granted | 150,000 | |||||
Restricted Stock Units | March 2020 Awarded And Granted | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of Shares, Granted | 50,000 | |||||
Number of shares, granted | 50,000 | |||||
Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 2,069,000 | |||||
Stock based payment options outstanding weighted average remaining term | 2 years 7 months 6 days | |||||
Number of Shares, Granted | 868,500 | 728,100 | ||||
Weighted average fair value, granted | $ 11.26 | $ 13.02 | ||||
Number of shares, granted | 868,500 | 728,100 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule of Nonvested Restricted Stock Units Activity (Details) - 2016 Omnibus Incentive Plan - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Nonvested balance as of December 31, 2020 | shares | 230,002 |
Number of Shares, Vested/Released | shares | (16,666) |
Number of Shares, Nonvested balance at March 31,2021 | shares | 213,336 |
Weighted Average Grant Date Fair Value Per Share, Nonvested balance as of December 31, 2020 | $ / shares | $ 16.66 |
Weighted Average Grant Date Fair Value Per Share, Vested/Released | $ / shares | 14.19 |
Weighted Average Grant Date Fair Value Per Share, Nonvested balance at March 31,2021 | $ / shares | $ 16.86 |
Stock Based Compensation - Sc_3
Stock Based Compensation - Schedule of Stock-Based Compensation Included in Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 2,436 | $ 3,175 |
General and Administrative Expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,114 | 1,017 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 1,322 | $ 2,158 |
Warrants - Additional Informati
Warrants - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)Tranche$ / sharesshares | Dec. 31, 2020shares | Jun. 15, 2015$ / shares | |
Class Of Warrant Or Right [Line Items] | |||
Number of tranches | Tranche | 2 | ||
Common stock warrants outstanding | shares | 851,969 | 861,969 | |
First tranche | |||
Class Of Warrant Or Right [Line Items] | |||
Common stock warrants outstanding | shares | 370,370 | ||
Exercise price of common stock warrants | $ / shares | $ 2.70 | ||
Common stock warrants term | 7 years | ||
Common stock warrants expiration date | Jun. 15, 2022 | ||
Warrant | |||
Class Of Warrant Or Right [Line Items] | |||
Intrinsic value of common stock warrants | $ | $ 2,825,000 | ||
Fair value of common stock | $ / shares | $ 12.20 | ||
Second tranche | |||
Class Of Warrant Or Right [Line Items] | |||
Common stock warrants term | 5 years | ||
Common stock warrants expiration date | Dec. 26, 2022 |
Warrants - Summary of Common St
Warrants - Summary of Common Stock Warrant Activity (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Class Of Warrant Or Right [Line Items] | |
Shares remaining to be issued as of December 31, 2020 | 861,969 |
Issued via cashless exercises | (8,048) |
Withheld as payment to cover issued shares | (1,952) |
Shares remaining to be issued as of March 31, 2021 | 851,969 |
First tranche | |
Class Of Warrant Or Right [Line Items] | |
Shares remaining to be issued as of December 31, 2020 | 72,611 |
Issued via cashless exercises | (8,048) |
Withheld as payment to cover issued shares | (1,952) |
Shares remaining to be issued as of March 31, 2021 | 62,611 |
Warrant Tranche 2 | |
Class Of Warrant Or Right [Line Items] | |
Shares remaining to be issued as of December 31, 2020 | 789,358 |
Shares remaining to be issued as of March 31, 2021 | 789,358 |
Collaboration Revenue - Additio
Collaboration Revenue - Additional Information (Details) - USD ($) | Dec. 07, 2020 | May 16, 2019 | Nov. 14, 2017 | Dec. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | Nov. 06, 2018 |
Disaggregation Of Revenue [Line Items] | |||||||||
Transaction price recorded in liabilities | $ 2,500,000 | ||||||||
Collaboration revenue | 1,553,000 | $ 900,000 | |||||||
Short-term research and development contract liability | $ 6,681,000 | 7,145,000 | |||||||
Long-term research and development contract liability | 1,938,000 | 1,334,000 | |||||||
Prepaid expenses and other short-term assets | 1,241,000 | 2,735,000 | |||||||
Other long-term assets | 402,000 | 149,000 | |||||||
Collaboration Agreement with Merck | Merck | |||||||||
Disaggregation Of Revenue [Line Items] | |||||||||
Up front non refundable payment | $ 2,500,000 | ||||||||
Achievement of certain research and development milestones | 120,000,000 | ||||||||
Achievement of certain commercial milestones | 150,000,000 | ||||||||
Milestone payments received | 2,500,000 | ||||||||
Collaboration revenue | 765,000 | 55,000 | |||||||
Short-term research and development contract liability | 607,000 | 570,000 | |||||||
Long-term research and development contract liability | 0 | 0 | |||||||
Collaboration Agreement with Merck | Merck | Maximum | |||||||||
Disaggregation Of Revenue [Line Items] | |||||||||
Eligible to earn achievement of certain research and development milestones | $ 101,000,000 | ||||||||
Collaboration Agreement with LG Chem Life Sciences | LG Chem Life Sciences | |||||||||
Disaggregation Of Revenue [Line Items] | |||||||||
Milestone payments received | $ 1,250,000 | $ 2,500,000 | |||||||
Collaboration revenue | 788,000 | $ 844,000 | |||||||
Short-term research and development contract liability | 6,074,000 | 6,575,000 | |||||||
Long-term research and development contract liability | 1,938,000 | 1,334,000 | |||||||
Equity investment nonrefundable upfront cash payment | $ 5,000,000 | ||||||||
Equity investment for research collaboration agreement | 5,000,000 | ||||||||
Milestone payment associated with contract liability | 1,250,000 | 2,500,000 | |||||||
Income tax expense | $ 206,250 | $ 412,500 | |||||||
Collaboration Agreement with LG Chem Life Sciences | LG Chem Life Sciences | Maximum | |||||||||
Disaggregation Of Revenue [Line Items] | |||||||||
Additional amount receivable research development regulatory and sales milestones | $ 400,000,000 | ||||||||
Einstein License And Service Agreement | Einstein | |||||||||
Disaggregation Of Revenue [Line Items] | |||||||||
License expenses | 157,000 | $ 313,000 | 908,000 | $ 438,000 | |||||
Amortization of intangible assets | 588,000 | ||||||||
Prepaid expenses and other short-term assets | $ 416,900 | $ 320,000 |
Collaboration Revenue - Addit_2
Collaboration Revenue - Additional Information (Details1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | Mar. 31, 2021 |
Current Liabilities | Maximum | |
Disaggregation Of Revenue [Line Items] | |
Revenue expected to be recognized | 12 months |
Contract Liabilities | Minimum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue expected to be recognized | 12 months |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($) | Dec. 31, 2015SupportingTechnology | |
Albert Einstein College Of Medicine | Einstein License And Service Agreement | ||
Commitments And Contingencies [Line Items] | ||
Milestone payments for each product, process or service | $ 1,850,000 | |
Milestone payments for each new indication of licensed product | 1,850,000 | |
Aggregate amount of additional milestone payments | 5,750,000 | |
Einstein License | ||
Commitments And Contingencies [Line Items] | ||
Number of supporting technologies | SupportingTechnology | 2 | |
Patent expenses | $ 18,750 | |
Type of Cost, Good or Service [Extensible List] | us-gaap:LicenseMember |
Leases - Additional Information
Leases - Additional Information (Details) | Jul. 20, 2020USD ($) | Jun. 24, 2020USD ($) | Oct. 01, 2019USD ($) | Sep. 19, 2019USD ($) | Sep. 20, 2018USD ($) | May 15, 2018 | May 01, 2018USD ($) | Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2019USD ($) |
Lessee Lease Description [Line Items] | |||||||||||
Operating lease right-of-use | $ 5,656,000 | $ 6,774,000 | |||||||||
Operating lease, liability | $ 6,074,000 | ||||||||||
Lease agreement description | Upon execution of this lease agreement, the Company prepaid three months of rent, two of which will be held in escrow and credited against future rent payments and the other of which was applied to the first month’s rent. The Company also prepaid seven and one-half months’ rent pursuant to an amendment to the lease agreement executed on June 18, 2018. These amounts were recorded to deposits and prepaid expenses, respectively, at December 31, 2018 | ||||||||||
Operating lease, weighted average discount rate | 6.00% | ||||||||||
Operating lease liability, current portion | $ 4,989,000 | 4,777,000 | |||||||||
Operating lease liability, net of current portion | 1,085,000 | $ 2,369,000 | |||||||||
Rent expense | $ 1,220,000 | $ 1,080,000 | |||||||||
Operating Lease Agreement | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease expiration date | Apr. 30, 2021 | ||||||||||
Lease agreement effective date | May 1, 2018 | ||||||||||
Lessee operating lease monthly rental rate | $ 330,550 | ||||||||||
Lessee operating lease monthly rental payments for remaining term | $ 375,174 | ||||||||||
Amended Lease Agreement | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease agreement effective date | May 15, 2018 | ||||||||||
Operating Lease Agreement For Additional Laboratory Space | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease expiration date | Apr. 14, 2021 | ||||||||||
Lease agreement effective date | Oct. 15, 2018 | ||||||||||
Lessee operating lease monthly rental payments for remaining term | $ 78,600 | ||||||||||
Lessee operating lease monthly rental payments for first twelve months | $ 72,600 | ||||||||||
Amended Additional Laboratory Lease | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease agreement effective date | Oct. 1, 2019 | ||||||||||
Lessee operating lease monthly rental payments for remaining term | $ 58,995 | ||||||||||
Lessee operating lease monthly rental payments | $ 78,600 | ||||||||||
Operating lease, weighted average discount rate | 6.00% | ||||||||||
ASU 2016-02 | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease term | 1 year 2 months 15 days | 1 year 5 months 15 days | |||||||||
Operating lease right-of-use | $ 5,656,000 | $ 6,774,000 | $ 9,692,000 | ||||||||
Operating lease, liability | $ 9,347,000 | ||||||||||
Reduction to right-of-use asset | $ 335,465 | ||||||||||
Decrease in Lease Liability | $ 327,079 | ||||||||||
Loss on right-of-use asset | 8,386 | ||||||||||
Operating lease liability, current portion | 4,989,000 | 4,777,000 | |||||||||
Operating lease liability, net of current portion | 1,085,000 | 2,369,000 | |||||||||
Security deposit | $ 177,000 | $ 177,000 | |||||||||
ASU 2016-02 | Laboratory And Office Lease | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease agreement description | Pursuant to the amendment (1) the term of the lease was extended to June 14, 2022 and (2) the monthly rental rate for the last 14 months of the lease term was increased to $375,174. | ||||||||||
Lease monthly rental payments | $ 375,174 | ||||||||||
Lease extended date | Jun. 14, 2022 | ||||||||||
Lease modification date | May 14, 2020 | ||||||||||
Adjustment related to right of use asset lease liability | $ 4,826,000 | ||||||||||
ASU 2016-02 | Additional Laboratory Lease Third Amendment | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Lease agreement description | Pursuant to the amendment, the term of the lease was extended to June 14, 2022. The Company determined that the amendment should be accounted for as a lease modification applicable under ASC 842, not as a separate contract, with an effective date of lease modification of August 4, 2020, when the agreement was fully executed. | ||||||||||
Lease extended date | Jun. 14, 2022 | ||||||||||
Lease modification date | Aug. 4, 2020 | ||||||||||
Adjustment related to right of use asset lease liability | $ 813,000 | ||||||||||
Cambridge, Massachusetts | |||||||||||
Lessee Lease Description [Line Items] | |||||||||||
Office space for lease | ft² | 19,900 | ||||||||||
Leases beginning date | May 31, 2018 | ||||||||||
Lease expiration date | Jun. 14, 2022 | ||||||||||
Present value of lease payments, discounting rate | 6.00% | ||||||||||
Lease term | 2 years 3 months 18 days |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments on Operating Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 3,905 |
2022 | 2,408 |
Total lease payment | 6,313 |
Less: present value discount | (239) |
Operating lease, liability | $ 6,074 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information of Operating Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,174 |
Operating lease cost | $ 1,220 |
Weighted average discount rate | 6.00% |
Weighted average remaining lease term | 1 year 2 months 15 days |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Stifel Nicolaus and Company Inc. - Sales Agreement June 2020 - USD ($) $ in Millions | May 03, 2021 | Apr. 02, 2021 | Mar. 31, 2021 |
Maximum | |||
Subsequent Event [Line Items] | |||
Proceeds from Issuance Initial Public Offering | $ 40 | ||
Transaction Expense | |||
Subsequent Event [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 1,192,000 | ||
Proceeds from sale of common stock | $ 22.4 | ||
Transaction Expense | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 2,099,700 | 907,700 | |
Proceeds from sale of common stock | $ 32.7 | $ 10.4 |